In This Article:
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Production Increase: 2024 production up 12% year-over-year; Q4 production averaged 21,000 barrels per day, an 18% increase from the previous period.
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Reserve Replacement Ratio: Achieved nearly 250% reserve replacement ratio on 2P numbers.
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Cash Position: Ended 2024 with $259 million in cash.
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Revenue: $680 million for the full year 2024; $222 million in Q4.
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EBITDAX: $380 million for the full year; $132 million in Q4.
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Cash Flow from Operations: $273 million after-tax for the full year; $107 million in Q4.
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OpEx: Reduced to $25.7 per barrel for the year; $22.8 per barrel in Q4.
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Net Asset Value: Over $1 billion, equating to over CAD 13 per share.
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Share Price Growth: Increased from under $3 to around $8 per share in 2024.
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Reserves Growth: 2P reserves increased to 50 million barrels by year-end 2024.
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Tax Losses: Accessed approximately $400 million in tax losses due to corporate restructuring.
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Environmental Performance: Reduced emissions intensity by approximately 20% in the first year of operation.
Release Date: March 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Valeura Energy Inc (VLERF) reported a 12% increase in production for 2024, driven by the successful development of the Wassana and Nong Yao fields.
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The company achieved a 250% reserve replacement ratio on 2P numbers, extending the life of all four fields into the 2030s.
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Operational efficiency improvements led to a reduction in OpEx to $25.7 per barrel, with CapEx coming in below guidance.
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Valeura Energy Inc (VLERF) reduced emissions intensity by approximately 20% in its first year of operation.
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The company ended the year with $259 million in cash and completed a corporate restructuring to access $400 million in tax losses, enhancing future cash flow.
Negative Points
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Despite the positive financial performance, the share price is perceived to be at a discount to the net asset value.
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The company faces challenges in aligning production and lifting schedules, which may lead to inventory build-up in Q1 2025.
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There is uncertainty regarding the continuation of reserve additions and field life extensions for mature fields.
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The company has not yet implemented a regular dividend, focusing instead on share buybacks and growth.
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Valeura Energy Inc (VLERF) is still in discussions to recoup a $13 million tax payment related to prior ownership of the Mubadala assets.
Q & A Highlights
Q: You lifted a lot of oil in Q4 more than your production. How does that affect your expectations for Q1 2025? A: Yacine Ben-Meriem, CFO: As an offshore producer, there's often a mismatch between production and lifting. In Q4, we lifted more than we produced, reducing inventory. For Q1, we expect to build some inventory, meaning we'll lift less than we produce, but this should normalize shortly after the quarter ends.