Jan. 20 at 3:51 PM
$VLERF Snip from very in-depth Report: Additionally, Valeura provided guidance for 2025 that, although slightly conservative, still indicates strong fundamentals for the equity story. We expect total crude oil production to reach approximately 9.3 mmbbls for 2025, representing a 12% year-over-year (YoY) increase. We anticipate EBITDA and Free Cash Flow to Firm (FCFF) will grow to
$347MM and
$172MM, respectively.
Recent sanctions against Russia’s “shadow fleet” and a harsh winter in Europe and the United States have put pressure on crude oil prices, driving Brent oil up by 8% compared to our initial projections for 2025.
Despite a 20% appreciation in the stock since our initial publication, it remains extremely undervalued, trading at 0.9x EV/EBITDA, 1.8x EV/FCF, and 3.3x P/FCFF for 2025. In contrast, industry peers trade at ~3x higher multiples, implying ~181% upside for Valeura.
https://www.alpha-ark.com/p/valeura-energy-vleto-thesis-update