Valeura Energy is making waves with record-breaking oil production and sales in the fourth quarter of 2024, reflecting the company’s strategic execution and operational success. Investors will be keen to explore how Valeura’s robust growth trajectory is creating value and laying a solid foundation for the future.
Valeura Energy announced that its oil production averaged an impressive 26,109 barrels per day in the final quarter of 2024, marking an 18% increase from the previous quarter and a striking 36% rise compared to the same period in 2023. The company’s oil sales outpaced production, with 2.95 million barrels sold during the quarter, representing a 67% quarter-over-quarter increase and a 48% gain from the prior year.
Driving these exceptional results were operational milestones, including a full quarter of contributions from the Nong Yao C field extension, which commenced production in August 2024, and a successful infill drilling campaign at the Jasmine field. The campaign culminated with three new wells coming online in late November, further boosting aggregate output.
Valeura’s financial performance was equally robust. Fourth-quarter oil revenues reached $226 million, up 62% from the previous quarter, despite slightly lower oil prices. The company achieved price realisations averaging $76.7 per barrel, a premium of $2 over the Brent crude benchmark. Enhanced sales volumes during the quarter stemmed from the strategic drawdown of higher inventory levels carried over from the third quarter, leaving Valeura with a year-end inventory of 0.64 million barrels.
President and CEO Sean Guest highlighted the company’s strengthened position: “With record oil production and sales volumes in Q4, we have strengthened our cash position to $259 million. This creates a solid platform for our company as we start 2025, which entails another ambitious work program focused on continued growth in value, funded entirely with our cash and cash flow.”
Valeura is optimistic about its 2025 outlook, forecasting average oil production between 23,000 and 25,500 barrels per day. Capital expenditures for the year are projected at $125-150 million, complemented by $11 million allocated for exploration drilling. With a recently completed corporate restructuring, Valeura is poised to maximise cash flow, add reserves to extend asset life, and pursue accretive growth opportunities. The company also plans to maintain direct shareholder returns through its ongoing share buyback programme.
As Valeura Energy looks to the future, its strategic execution and operational discipline signal continued potential for value creation.
Valeura Energy Inc (TSX:VLE) is an upstream oil & gas company, with a clear strategy to add value for shareholders. The Company has a strong balance sheet positioning it for potential inorganic growth opportunities in the near/medium-term, and substantial longer-term upside potential through an operated deep, tight gas play.
