Veren (VRN) Corporate Presentation summary

Financial and operational highlights

• Market capitalization stands at $4.6 billion with net debt of $2.5 billion and enterprise value of $7.1 billion as of February 2025.

• 2025 production guidance is 188,000–196,000 boe/d (65% liquids), with development capital expenditures of $1.48–$1.58 billion.

• Expected 2025 excess cash flow is $625–$825 million at US$70–$75 WTI, with a 0.8–0.9x year-end net debt to cash flow ratio.

• 60% of excess cash flow is targeted for return to shareholders via dividends and share repurchases, with a base dividend of $0.115/share (6.1% yield).

• 2024 saw $642 million in excess cash flow, a 35% net debt reduction, and $386 million returned to shareholders.

Asset base and production outlook

• Holds over 5,000 premium and additional drilling locations, supporting ~20 years of inventory.

• Alberta Montney and Kaybob Duvernay are core assets, contributing 50% and 30% of 2025 production, respectively; Saskatchewan contributes 20%.

• Alberta Montney: ~350,000 net acres, 2025E production of 92,000 boe/d (55% liquids), 10% CAGR through 2029, and >1,400 net premium locations.

• Kaybob Duvernay: ~410,000 net acres, 2025E production of 60,000 boe/d (60% liquids), >5% CAGR through 2029, and ~500 net premium locations.

• Saskatchewan assets feature low decline rates (~15%) and high netbacks, with enhanced recovery and new drilling technologies.

Reserves and capital allocation

• 2024 organic reserve additions totaled 121.4 MMboe (2P), replacing 173% of annual production; 2P reserve life index is ~16 years.

• Alberta Montney and Kaybob Duvernay booked 544 MMboe and 341 MMboe 2P reserves, with NPV10 values of $5.2B and $4.8B, respectively.

• Over 65% of premium drilling locations in these core areas remain unbooked.

• 2025 budget allocates 85% of capital to Alberta Montney and Kaybob Duvernay, with flexibility to adjust for commodity price changes.

• 5-year plan targets 7% production CAGR, $3.4–$4.2B cumulative excess cash flow, and $2.0–$2.5B cumulative capital returns.