07:57 AM EDT, 07/25/2024 (MT Newswires) -- Oil and gas company Veren ( VRN ) on Thursday reported adjusted net earnings in the second quarter that missed forecast, but the company said it "remains on track" to meet its 2024 annual average production guidance.

Veren's ( VRN ) adjusted earnings rose to $237.8 million, or $0.38 per share, from $205.4 million, or $0.38 per share. This compares to the S&P CapIQ adjusted EPS forecast of $0.39.

Among highlights, Veren ( VRN ) cited continued operational execution in Alberta Montney and Kaybob Duvernay with recent wells among the top in the WCSB; and said it generated $195 million of excess cash flow in second quarter, with 60% returned to shareholders; and reduced net debt by $620 million in second quarter with proceeds from non-core asset disposition and excess cash flow.

Also, Veren ( VRN ) issued $1.0 billion of investment-grade senior notes, optimizing the balance sheet, and said it expects "significant" excess cash flow of $825 million in 2024 based on US$80/bbl WTI and $1.70/Mcf AECO for the full year.

Subsequent to the the quarter, the company's Board declared a quarterly cash base dividend of $0.115 per share payable on October 1, 2024, to shareholders of record on September 15, 2024.

"Our second quarter results demonstrate our continued focus on operational execution and further strengthening and optimizing of our balance sheet," said Craig Bryksa, Veren's ( VRN ) president and CEO.

"Continuing to build on our year-to-date momentum, we delivered additional efficiencies along with strong and consistent results in our Alberta Montney and Kaybob Duvernay assets. We also received an investment-grade credit rating during the quarter, reflecting our enhanced scale, sustainability and financial position, allowing us to access public debt markets and diversify our capital structure."

On outlook, the company said it "remains on track" to meet its 2024 annual average production guidance of 191,000 to 199,000 boe/d with development capital expenditures of $1.4 to $1.5 billion. It added: "Given the timing of its development program and expected production growth through the remainder of the year, 60% of Veren's ( VRN ) full year excess cash flow is expected to be realized in the second half of 2024."

Veren ( VRN ) said it will continue to return 60% of its excess cash flow to shareholders through its base dividend and share repurchases, with the remainder to be used for debt reduction. The company expected to reduce its net debt to $2.8 billion by year-end 2024 at US$80/bbl WTI, or 1.1 times adjusted funds flow.

"Veren ( VRN ) is in the initial stages of its annual budgeting process and plans to provide its 2025 outlook along with an updated five-year plan later this year. Similar to prior years, the company's 2025 budget will remain disciplined and flexible with a focus on allocating capital to its highest return assets with attractive payback periods. The Kaybob Duvernay and Alberta Montney assets, which rank in the top quartile in Veren's ( VRN ) portfolio, are expected to garner the majority of its capital, alongside continued investment in decline mitigation programs throughout Saskatchewan to further enhance Veren's ( VRN ) excess cash flow profile.

"The company will continue to focus on its strategic priorities of operational execution, further strengthening its balance sheet and increasing its return of capital to shareholders."

Veren's ( VRN ) share price rose 1.3% at last look to US$7.70 on the NYSE.