Yesterday, Veren (VRN:CA)—formerly Crescent Point Energy—reported second-quarter results that were in line with expectations.
During the quarter, production came in at 192,648 boe/d, in line with analyst consensus expectations. This is below the first quarter’s 198,551 boe/d due to asset dispositions made in June. The second-quarter production result puts Veren on track to achieve management’s full-year guidance of 195,000 boe/d, as management expects production to increase to the high-190,000s boe/d by the fourth quarter and to more than 200,000 boe/d in 2025.
Financial results were broadly in line with analyst expectations and didn’t present any surprises. The company generated $197 million of free cash flow and $543 of proceeds from asset sales during the quarter. Cash flow broken out by quarter can be seen below.
The company allocated the cash together with cash on hand to reduce net debt by $620 million, pay $72 million of dividends, and repurchase $42 million in shares. Capital allocation was in line with management’s previous guidance and our own expectations.