Valeura Energy Inc (TSX:VLE, OTCQX:VLERF) has reported its financial and operating results for the three month period and year ended December 31, 2024.
The complete reporting package for the Company, including the audited financial statements and associated management’s discussion and analysis and the 2024 annual information form (“AIF”), are being filed on SEDAR+ at www.sedarplus.ca and posted to the Company’s website at www.valeuraenergy.com.
2024 Operational Highlights
- Production increased by 12% year-over-year to 22,825 bbls/d(1) on the back of a full year of drilling operations and development of the Nong Yao C Field;
- 100% success rate in exploration and appraisal activities with discoveries at Niramai, Wassana North, and Nong Yao D;
- Company’s first full year of operations completed with no significant health, safety, or environment incidents; and
- Reduced greenhouse emissions intensity by approximately 20% compared to 2023 baseline.
2024 Financial Highlights
- Generated revenue of US$679 million, with average price realisation of US$81/bbl;
- Delivered Adjusted EBITDAX of US$378 million(2) and adjusted cashflow from operations of US$273 million(2);
- Strengthened the balance sheet with record high year-end cash position of US$259 million(3) and zero debt;
- Reduced asset retirement obligation (“ARO”) by 54% since assuming operatorship in Q1, 2023;
- Completed internal restructuring to optimise operational and financial aspects of the Thai III petroleum concessions; and
- Implemented share buyback programme through a Normal Course Issuer Bid for up to 10% of the public float.
2024 Reserves Highlights
- Record high year-end reserves: 32 MMbbl proved (1P), 50 MMbbl proved plus probable (2P) and 60 MMbbl proved plus probable plus possible (3P) reserves;
- Delivered 2P reserves replacement ratio of 245%, even after production increase of 12%;
- Increased 2P reserves and extended the end of field life (“EOFL”) at every field;
- Grew 2P net present value (NPV10) before tax to US$934 million and US$753 million after tax(4);
- Considering year-end 2024 cash position, increased 2P net asset value after tax to US$1,012 million, equating to C$13.6 per share(5); and
- Doubled contingent resources to 48 MMbbls compared to year-end 2023(6).
(1) Working interest share production before royalties.
(2) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section in the Company’s MD&A.
(3) Includes restricted cash of $22.8 million.
(4) Discount rate 10%.
(5) Proved plus probable (2P) NPV10 plus net cash at December 31, 2024, assuming $/C$ exchange rate of 1.435, and 106.65 million shares outstanding as of December 31, 2024.
(6) Unrisked best estimate (2C) contingent resources.
Dr. Sean Guest, President and CEO commented:
“Our first full year of operations in Thailand were a success across all areas of our business and a trophy for value creation. We have attained record production, record cash flow, and replaced nearly 2.5x the reserves we produced, all while continuing to strengthen our financial position. Our business is stronger and has a longer line of sight than ever before.
Continued drilling throughout 2024 added 20 new production wells, including those we drilled to develop the new Nong Yao C field, making Nong Yao the largest and most profitable asset in our portfolio. We’ve also had success with the drill bit on both appraisal and exploration which has significantly increased the number of future development well locations. This successful drilling, combined with detailed reservoir studies has resulted in a 32% increase in 2P reserves to 50 million bbls. Moreover, the economic life of each of our fields has moved further into the future, such that all fields are now expected to remain economic beyond 2030.
We are focussed relentlessly on value, and with the combination of an increase in the net present value of our 2P reserves, and the record cash position of US$259 million at year-end, the net asset value of our business is now more than one billion US dollars. On a per share basis, that equates to over C$13/share, meaning an investment in Valeura’s shares continues to represent an excellent value proposition.
In addition to growing both the value and longevity of our existing portfolio, we continue to pursue several other avenues for growth, including exciting exploration opportunities, and potential merger and acquisition targets.”
Financial and Operating Results Summary
| Three months ended | Year ended | ||||||
| December 31, 2024 | December 31, 2023 | Delta | December 31, 2024 | December 31, 2023 | Delta | ||
| Oil Production(1) | (‘000 bbls) | 2,403 | 1,763 | +36% | 8,354 | 5,825 | 43% |
| Average Daily Oil Production(1) | (bbls/d) | 26,109 | 19,165 | +36% | 22,825 | 20,440(2) | +12% |
| Average Realised Price | (US$/bbl) | 76.7 | 85.5 | (10%) | 81.3 | 84.3 | (4%) |
| Oil Volumes Sold | (‘000 bbls) | 2,948 | 1,987 | +48% | 8,349 | 5,854 | +43% |
| Oil Revenue | (US$’000) | 226,148 | 169,909 | +33% | 678,794 | 493,457 | +38% |
| Net Income | (US$’000) | 213,983 | 23,480 | +811% | 240,797 | 244,313 | (1%) |
| Adjusted EBITDAX(3) | (US$’000) | 132,402 | 96,679 | +37% | 377,985 | 230,672 | +64% |
| Adjusted Pre-Tax Cashflow from Operations(3) | (US$’000) | 133,612 | 88,326 | +51% | 356,627 | 238,661 | +49% |
| Adjusted Cashflow from Operations(3) | (US$’000) | 107,134 | 56,023 | +107% | 272,641 | 152,375 | +79% |
| Operating Expenses | (US$’000) | 55,607 | 49,622 | +12% | 186,407 | 180,192 | +3% |
| Adjusted Opex(3) | (US$’000) | 54,668 | 51,818 | +6% | 214,891 | 165,077 | +30% |
| Operating Expenses per bbl | (US$/bbl) | 18.9 | 25.0 | (25%) | 22.3 | 30.9 | (28%) |
| Adjusted Opex per bbl(3) | (US$/bbl) | 22.8 | 29.4 | (22%) | 25.7 | 28.3 | (9%) |
| Adjusted Capex(3) | (US$’000) | 38,870 | 30,374 | +28% | 134,258 | 103,733 | +29% |
| Weighted average shares outstanding – basic | (‘000 shares) | 106,955 | 102,652 | +4% | 105,778 | 99,227 | +7% |
| As at | Comparison | |||
| December 31, 2024 | December 31, 2023 | % | ||
| Cash & Cash equivalents(4) | (US$’000) | 259,354 | 151,165 | +72% |
| Adjusted Net Working Capital(3) | (US$’000) | 205,735 | 118,143 | +74% |
| Shareholder’s Equity | (US$’000) | 528,283 | 284,178 | +86% |
(1) Working interest share production before royalties.
(2) Average daily oil production of 20,440 bbls/d represents the average production from closing of the Mubadala Acquisition on March 22, 2023 to December 31, 2023 (285 days).
(3) Non-IFRS financial measure or non-IFRS ratio – see “Non-IFRS Financial Measures and Ratios” section in the Company’s MD&A.
(4) Includes restricted cash of US$22.8 million at December 31, 2024 and restricted cash of US$17.3 million at December 31, 2023.
Financial Update
Valeura Energy’s Q4 2024 oil production averaged 26,109 bbls/d (working interest share before royalties), representing a 36% increase from Q4 2023. Full year 2024 oil production averaged 22,825 bbls/d, 12% higher than 2023. This growth was primarily driven by production from the Wassana field, which was not in production for most of 2023 and the Nong Yao C development, which came online in August 2024. Oil sales for Q4 2024 were 2.9 million bbls, compared to 2.0 million bbls in Q4 2023. For the full year 2024, oil sales totalled 8.4 million bbls, up 43% from 5.8 million bbls in 2023. The increase is due to higher production rates in 2024, coupled with the fact that in 2023 the Company had only 285 days of production operations (following closing of the Mubadala acquisition on March 22, 2023).
The Company generated Q4 2024 revenue of US$226.1 million, a 33% increase from Q4 2023. Full year 2024 revenue was US$678.8 million, representing a 38% increase from 2023. Q4 2024 price realisations averaged US$76.7/bbl, achieving a US$2.0/bbl premium to the Brent benchmark. Full year 2024 price realisations averaged US$81.3/bbl, reflecting a US$0.5/bbl premium to Brent. Valeura reported Q4 2024 Adjusted EBITDAX (a non-IFRS measure which is more fully described in the “Non-IFRS Financial Measures and Ratios” section of the MD&A) of US$132.4 million, up 37% from Q4 2023, while full year 2024 Adjusted EBITDAX increased 64% to US$378.0 million.
The Company demonstrated improved operational efficiency with Q4 2024 Adjusted Opex (a non-IFRS measure which is more fully described in the “Non-IFRS Financial Measures and Ratios” section of the MD&A) of US$22.8/bbl, down from US$29.4/bbl in Q4 2023. Full year 2024 Adjusted Opex decreased to US$25.7/bbl from US$28.3/bbl in 2023. Operating expenses for Q4 were US$18.9/bbl compared to US$25.0/bbl in Q4 2023, and US$22.3/bbl for the full 2024 versus US$30.9/bbl in 2023. These improved unit costs were driven primarily by increased production from the low-cost Nong Yao field, which has become the Company’s largest production source.
Valeura incurred total petroleum tax income and special remuneratory benefit tax of US$68.3 million and US$29.2 million respectively during the full year 2024, compared to US$71.2 million and US$15.1 million in the previous year. The Company stands to benefit from a more efficient tax structure in 2025 as a result of the corporate restructuring which was completed in November 2024. This will result in Petroleum income tax loss carry-forwards that were previously associated with only the Wassana asset now being applied to all of the Company’s Thai III petroleum concessions, being Wassana, Nong Yao, and Manora.
The Company recorded Net income for the year of US$240.8 million following the recognition of deferred tax assets from the tax consolidation.
As of December 31, 2024, Valeura had a strong cash position of US$259.4 million, including US$22.8 million in restricted cash. The Company continues to operate with no current or non-current debt. Valeura remains well-positioned for both organic reinvestment opportunities and potential strategic acquisitions.
Operations Update and Outlook
During Q4 2024, the Company had ongoing production operations on all of its Gulf of Thailand fields, comprised of the Jasmine, Nong Yao, Manora, and Wassana fields. The Company has had one drill rig working continuously on contract since Q1 2023 full-time.
Oil production averaged 26.1 mbbls/d during Q4 2024 (Valeura’s working interest share, before royalties).
Jasmine/Ban Yen
Oil production before royalties from the Jasmine/Ban Yen field, in Licence B5/27 (100% operated interest) averaged 8.5 mbbls/d during Q4 2024, an increase of 12% from Q3 2024. Increased production rates reflect the start-up of five new wells drilled as part of an infill drilling programme, with the last three wells coming onstream in late November 2024. In addition to adding new production, the Jasmine programme also evaluated several secondary appraisal targets which will be the subject of further infill development drilling in due course.
Although the Jasmine field is the most mature asset in the Company’s portfolio, ongoing drilling success underscores the field’s ability to continue serving as a key source of cash generation for the business. The Q4 Jasmine drilling results have been included in the Company’s reserves evaluation for the year-ended December 31, 2024, and contributed to a further extension in the field’s economic life, which on a 2P reserves basis, now lasts into mid 2031.
In February 2025 the drill rig returned to the Jasmine field where it has begun executing a seven-well infill campaign. In total 10 development and appraisal wells are currently planned for the Jasmine field in 2025 and one exploration well at the Ratree prospect. In addition, a workover rig is currently operating on the field completing two workovers.
The low-BTU gas generator was delivered to the Jasmine B platform in Q1 2025 and is expected to be commissioned and operational in Q2 2025. This creates an opportunity to significantly reduce greenhouse gas emissions from this platform as well as to reduce operating costs by using a waste gas stream for power generation.
Nong Yao
At the Nong Yao field, in Licence G11/48 (90% operated working interest), Valeura’s working interest share production before royalties averaged 11.1 mbbls/d, an increase of 18% from Q3 2024. Q4 production rates benefitted from a full quarter of operations at the Nong Yao C field extension, which came online in August 2024.
Performance from Nong Yao C is continuing in line with the Company’s expectations. The Nong Yao field is now the Company’s largest source of production. In addition, it also has the Company’s lowest per unit Adjusted Opex and its oil fetches a premium to the Brent benchmark. As a result, Nong Yao is the Company’s most cash generative asset.
In 2025, nine development wells are planned across the three Nong Yao platforms. This programme is expected to commence in late Q2 2025.
Wassana
Oil production at the Wassana field, in Licence G10/48 (100% operated interest), averaged 4.3 mbbls/d (before royalties), an increase of 55% over Q3 2024. The increase reflects the effect of a full quarter of normal operations at the field, as compared to Q3 2024, during which the Company conducted a one-month precautionary suspension of production while performing underwater inspection work. There was no drilling on the Wassana field in Q4 and no further drilling is planned at this location for 2025.
Valeura has completed the front end engineering and design work for the potential redevelopment of the Wassana field. Detailed contracting and procurement work commenced in late Q4 2024 to validate cost assumptions for the project. Valeura expects to consider a final investment decision in early Q2 2025.
Manora
At the Manora field, in Licence G1/48 (70% operated working interest), Valeura’s working interest share of oil production before royalties averaged 2.2 mbbls/d, a decrease of 11% from Q3 2024. During Q4, the Company began a five-well infill drilling campaign on the Manora field, including both production-oriented infill development wells and appraisal targets. The programme was completed in Q1 2025 and for the month of March to date, working interest share production before royalties has averaged 2.9 mbbls/d. In addition, several appraisal targets were evaluated, giving rise to between three and five potential future drilling targets, which will be further evaluated for inclusion in a future drilling programme.
Türkiye
The Company had no active operations in Türkiye during Q4 2024, however it continues to hold an interest in a potentially large deep gas play in the Thrace basin in the northwest part of the country. In 2024 the Company received official confirmation that it’s leases and licences covering the play had been extended into 2025, and more recently the Company was granted an additional one-year extension, bringing the expiry date to June 27, 2026. Following the current period, Valeura may apply for a further two-year extension for appraisal purposes, and has engaged the government in discussions to that effect.
The Company believes the Thrace basin deep gas play could be a source of significant value in the longer term. Valeura intends to farm out a portion of its interest to a new partner in order to jointly pursue the next phase of appraisal work.
Reserves and Resources Summary
The results of Valeura’s third-party independent reserves and resources assessment for its Thailand assets as of December 31, 2024 were announced on February 13, 2025. Below are summary tables associated with the reserves.
Summary of Reserves Replacement, Value and Field Life
| Gross (Before Royalties) 2P Reserves, Working Interest Share | End of Field Life | 2P NPV10 After Tax (US$ million) | |||||||
| Fields | December 31, 2023 (MMbbl) | 2024 Production (MMbbl) | Additions (MMbbl) | December 31, 2024 (MMbbl) | Reserves Replacement Ratio (%) | NSAI 2023 Report | NSAI 2024 Report | December 31, 2023 | December 31, 2024 |
| Jasmine | 10.4 | (2.9) | 9.2 | 16.8 | 324% | Dec 2028 | Aug 2031 | 81.8 | 163.9 |
| Manora | 2.2 | (0.9) | 2.1 | 3.4 | 223% | Jul 2027 | Apr 2030 | 21.2 | 45.7 |
| Nong Yao | 12.4 | (3.1) | 7.7 | 16.9 | 245% | Dec 2028 | Dec 2033 | 185.6 | 416.1 |
| Wassana | 12.9 | (1.4) | 1.5 | 12.9 | 102% | Jun 2032 | Dec 2035 | 139.9 | 126.6 |
| Total | 37.9 | (8.4) | 20.5 | 50.0 | 245% | 428.5 | 752.2 | ||
Summary of NPV and NAV
| 1P NPV10 | 2P NPV10 | 3P NPV10 | ||||
| Before Tax | After Tax | Before Tax | After Tax | Before Tax | After Tax | |
| NPV10 (US$ million) | 360.7 | 358.6 | 933.9 | 752.2 | 1,339.1 | 990.2 |
| Cash at December 31, 2024 (US$ million)(1) | 259.4 | 259.4 | 259.4 | 259.4 | 259.4 | 259.4 |
| Net Asset Value (US$ million) | 620.1 | 618.0 | 1,193.3 | 1,011.6 | 1,598.5 | 1,249.6 |
| Common shares (million)(2) | 106.65 | 106.65 | 106.65 | 106.65 | 106.65 | 106.65 |
| Estimated NAV per basic share (C$ per share)(3) | 8.3 | 8.3 | 16.1 | 13.6 | 21.5 | 16.8 |
(1) Cash at December 31, 2024 of US$259.4 million, debt nil.
(2) Issued and outstanding common shares as of December 31, 2024
(3) US$/C$ exchange rate of 1.435 as at December 31, 2024
Webcast
Valeura Energy’s management team will host an investor and analyst webcast at 08:00 Calgary / 14:00 London / 21:00 Bangkok / 22:00 Singapore on Wednesday, March 26, 2025 to discuss today’s announcement. Please register in advance via the link below.
Registration link: https://events.teams.microsoft.com/event/aa5e4d6a-cb5f-46da-ab85-0976e3600c84@a196a1a0-4579-4a0c-b3a3-855f4db8f64b
As an alternative, an audio only feed of the event is available by phone using the Conference ID and dial-in numbers below.
Thailand: +66 2 026 9035,,922648874#
Singapore: +65 6450 6302,,922648874#
Canada: (833) 845-9589,,922648874#
Türkiye: 0800 142 034779,,922648874#
United States: (833) 846-5630,,922648874#
United Kingdom: 0800 640 3933,,922648874#
Phone conference ID: 922 648 874#
