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This summary was created by AI, based on 22 opinions in the last 12 months.

Veren (VRN-T) has garnered mixed reviews among analysts, with many pointing to its transformation from Crescent Point Energy and its positioning in the Montney and Duvernay plays. While the recent merger with Whitecap has been seen as an opportunistic move that enhances asset quality and stability, concerns linger regarding oil price volatility and operational challenges. Experts noted the company's strong balance sheet and sound cost structure, but highlighted the need for crude oil prices to stabilize around $75 for Veren to capitalize effectively. The stock’s valuation is perceived as cheap relative to peers, and some analysts believe its potential upside is significant at higher oil prices. Overall, sentiment varies, but there remains cautious optimism about its future prospects as it navigates through challenges amidst a competitive sector.

Consensus
Mixed
Valuation
Undervalued
WEAK BUY
WCP & VRN

Merger could be really accretive, better together. Nice dividend. Scale could really help them both. He hasn't yet seen the terms of the deal.

BUY

He likes the WCP-Veren deal. Both were already decent companies, but together will enjoy synergy from cost savings. It will become the 4th-largest light oil producer in Canada. Management knows what it's doing, valuation good. Bigger companies here tend to enjoy a multiple increase. Veren shareholder will receive the WCP dividend, a big increase for them. The combined company will do pretty well.

PAST TOP PICK
(A Top Pick Apr 02/24, Down 25%)

A year ago they had finished many years of buying companies, built inventories, and drilling economic wells in the Montney. Last year, they tried and failed using a new frack technique. So, they spent on that, and got punished. He's their largest shareholder. The new Whitecap deal: WCP is almost stealing this asset, being opportunistic as they should. Veren identified high quality rock, but screwed up that opportunity. This merger is very complimentary: big asset overlap. WCP gets a very high quality asset at a cheap price (due to market volatility). Size matters; big institutions have left mid-caps for dead. The new company will be the 6th/7th-largest producer in Canada with a safe 9% dividend (down to $51 oil) will force big institutions to look. At $70 oil, this boasts 3.1x cash flow, 17% free cash flow yield, and over 20 years of stay-flat, high-quality inventory. WCP will recoup yesterday's 15% losses.

DON'T BUY

Laggard in the group. The names he prefers are really in a sideways trading range; chart for SU is an example.

WEAK BUY
WCP vs. TVE vs. VRN -- looking for best total return from capital appreciation plus dividends.

If you assume oil prices go up, and assume they all execute well, which is the buy right now? He likes the upfront dividend. VRN is cheapest on price and financial metrics. Production outlook posted a few days ago is quite positive.

Not sure if the easiest thesis is to buy energy right now with Trump trying to attack the price of oil. But within the group, this is a name that works pretty well.

BUY

It's gone through a huge transformation from Crescent Point Energy, which created bad memories. But Veren is very different and offers huge upside. Caveat: Veren is tied to the price of oil. Crude oil needs to stay around $75+ for Veren to really work. Their cost structure and balance sheet are sound.

DON'T BUY

It was rangebound in 2022-2023, but has recently broken to new lows. Not a great chart. Note that the energy chart (XEG) has been in a choppy trading range the past year with little real movement. But money managers seeking dividends have been moving out of telcos and into energy, which are now worth considering. Veren looks weak, though. 

WEAK BUY

Very cheap relative to peers. Oil patch, as a group, has a problem in that Trump is going to encourage drilling, which means a lot more competition. OK balance sheet, as is production and cashflow-per-share growth. 

We're in the midst of tax-loss selling, with so much pressure to pay less capital gains tax. People are just dumping stocks that are, otherwise, decent buys. All things being equal, will have a pop in January.

BUY

Hit pretty hard. Last quarter threw people off, with worries over growth. Otherwise, good drilling success. Great transition to Duvernay and Montney. Cheap valuation. Debt paid down to target, so more $$ (about 75% of cashflow) to shareholders.

Frustrating year, but that creates opportunity. Final opportunity will be M&A throughout the sector.

WATCH

Oil hasn't been the best place. Best time to own oil or its producers is from March to early summer. Most of the producers have been in a sideways trap. This one has broken down, that's bad. If you own it, give it a chance. But if it doesn't start showing consistent up-and-down range-trading behaviour, don't hold for too long. See his Top Picks.

PAST TOP PICK
(A Top Pick Nov 22/23, Down 15%)

Huge disappointment, and management owns its mistakes. He's met with management and is comfortable with the status, but other investors are just done. Given current prices of oil and gas, trades at 13% free cashflow yield. Quality not impaired, but it will take time. He bought more shares.

HOLD

There remains no appetite to own small/mid-cap Canadian-only oil producers. We haven't seen consolidation here, thought it did in the US. Don't sell at current levels. They are messing up on operations now, which hurt guidance. But long term the dividend and assets are fine.

COMMENT

Likes it. If you believe oil/gas prices will be higher in 1-5 years, Veren is interesting. But this is a commodity company, so it is volatile. New managers are smart with balance sheets and debt, so they don't need a much higher oil price to make money, but how excited will markets get if oil prices stay at current levels?

WATCH

Over the past year, lots of insider buying. Cheap valuation, however other energy producers to invest in. Would watch company. Could be better options within energy. 

TOP PICK

Trading under 3x operating cash flow and 15x free cash flow yield. They were always a big Bakkan player, but grew by acquisition then diluted too many, but recent years are focussing much more. This is nothing like the Crescent Point Energy of old. It's more focussed and productive and trading at a low valuation.

(Analysts’ price target is $13.85)
Showing 1 to 15 of 24 entries

Veren(VRN-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 15

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 20

Stockchase rating for Veren is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Veren(VRN-T) Frequently Asked Questions

What is Veren stock symbol?

Veren is a Canadian stock, trading under the symbol VRN-T on the Toronto Stock Exchange (VRN-CT). It is usually referred to as TSX:VRN or VRN-T

Is Veren a buy or a sell?

In the last year, 20 stock analysts published opinions about VRN-T. 15 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Veren.

Is Veren a good investment or a top pick?

Veren was recommended as a Top Pick by on . Read the latest stock experts ratings for Veren.

Why is Veren stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Veren worth watching?

20 stock analysts on Stockchase covered Veren In the last year. It is a trending stock that is worth watching.

What is Veren stock price?

On 2025-03-28, Veren (VRN-T) stock closed at a price of $9.52.