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Important Factors to Watch Ahead of Veren's Q4 Earnings Release

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Veren Inc. (VRN - Free Report) is set to report fourth-quarter 2024 earnings on Feb. 27, before the opening bell.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Let us delve into the factors that might have affected this energy major’s quarterly performance. However, before that, it would be worth reviewing VRN’s performance in the previous quarter.

Highlights of VRN’s Q3 Earnings

In the last reported quarter, the company’s adjusted earnings of 21 cents per share missed the Zacks Consensus Estimate of 25 cents and declined from the year-ago reported figure of 31 cents.

The decline in adjusted earnings was primarily due to lower commodity prices, increased transportation and operating expenses, and the impact of asset dispositions on production.

VRN’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters and met the same twice, delivering an average negative surprise of 11.24%. This is depicted in the graph below.

Veren Inc. Price and EPS Surprise

Veren Inc. Price and EPS Surprise

Veren Inc. price-eps-surprise | Veren Inc. Quote

Estimate Trend of VRN

The Zacks Consensus Estimate for VRN’s fourth-quarter earnings per share of 24 cents has not witnessed any movement in the past 30 days. The estimated figure implies an 11% decline from the year-ago quarter’s reported number.

The Zacks Consensus Estimate for the company’s fourth-quarter revenues of $694 million indicates a 6.7% decline from the year-ago reported figure.

Factors to Consider Ahead of VRN’s Q4 Results

According to data from the U.S. Energy Information Administration, the average monthly price of West Texas Intermediate crude was $71.99 per barrel in October 2024, $69.95 in November and $70.12 in December. While these prices were solid and stable, they remained lower than the same quarter of the previous year. Weaker oil prices might have reduced its fourth-quarter earnings from upstream operations.

In the third quarter, the underperformance of wells was due to the use of the plug-and-perforation completion design in the Gold Creek area of the Alberta Montney. The company has decided to revert to the more effective single-point entry design. The weaker production from these wells in the third quarter might have weighed on near-term output and revenues, potentially leading to lower-than-expected earnings in the fourth quarter.

Lower commodity prices are likely to have weighed on Veren’s bottom line in the quarter under review.

Earnings Whispers for VRN

Our proven model does not indicate an earnings beat for Veren this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

VRN’s Earnings ESP: Veren currently has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at earnings of 24 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

VRN’s Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are three firms that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

W&T Offshore, Inc. (WTI - Free Report) currently has an Earnings ESP of +22.22% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

W&T Offshore is scheduled to release fourth-quarter earnings on March 3. The Zacks Consensus Estimate for WTI’s loss is pegged at 18 cents per share, indicating a 200% decline from the prior-year reported figure.

BKV Corporation (BKV - Free Report) presently has an Earnings ESP of +89.47% and a Zacks Rank #3.

BKV Corporationis scheduled to release fourth-quarter earnings on Feb. 26. The Zacks Consensus Estimate for BKV’s loss is pegged at 10 cents per share.

Berry Corporation (BRY - Free Report) currently has an Earnings ESP of +8.33% and a Zacks Rank #2.

Berry Corporation is scheduled to release fourth-quarter earnings on March 12. The Zacks Consensus Estimate for BRY’s earnings is pegged at 12 cents per share, indicating a 7.7% decrease from the prior-year reported figure.


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W&T Offshore, Inc. (WTI) - free report >>

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