Valeura Energy (VLE) Q2 2024 earnings summary

Executive summary

• Q2 2024 production averaged 21.1 mbbls/d, with strong cash generation, no debt, and a robust balance sheet; company is the second largest oil producer in Thailand.

• Q2 adjusted cash flow from operations was $66 million, up 37% from Q1, despite significant one-off outflows; EBITDAX reached $100 million.

• Ended Q2 with $147 million in cash and no debt, after tax and acquisition outflows.

• Production guidance for 2024 reaffirmed at a midpoint of 23,000 bbls/d, with a narrowed range and capex guidance reduced to $135–145 million.

• Ongoing drilling and development success at Nong Yao C and Wassana, with imminent production increases and reserves growth.

Financial highlights

• Q2 2024 oil revenue was $164 million, up 10% from Q1, with realized price at $87.7/bbl, up 4% from Q1.

• Adjusted EBITDAX was $100 million, up 12% from Q1; adjusted pre-tax CFO was $87 million, up 20% from Q1.

• Adjusted opex per barrel was $28.3, up from $26 in Q1; capex was $31 million plus $19 million for FSO acquisition.

• Book value at June 30, 2024 was $317 million, up 4% from Q1.

• Net cash decreased from $194 million in Q1 to $147 million in Q2, reflecting tax and acquisition outflows.

Outlook and guidance

• 2024 production guidance narrowed to 22,000–24,000 bbls/d, with 25,000 bbls/d expected from September to December.

• Capex guidance reduced to $135–145 million; opex and price realization guidance reaffirmed.

• Exploration expense guidance remains at $8 million, with three discoveries in H1 and further drilling planned.

• FEED study for Wassana redevelopment underway, with FID readiness expected in early 2025.

• Additional Manora drilling campaign accelerated to Q4 2024.