10 Stocks Under $10 With High Potential

5. Veren Inc. (NYSE:VRN)

Share Price: $6.15

Analyst Upside Potential: 76.23% 

Veren Inc. (NYSE:VRN) is a leading oil and natural gas exploration company that operates in the United States and Canada. It focuses on exploring and producing Crude Oil, Tight Oil, Natural gas, and other related products. The three main sites namely  Alberta Monteny, Kaybob Duvernay, and Saskatchewan contributed around 50%, 25%, and 25% respectively to the overall production of the company.

Veren Inc. (NYSE:VRN) has significantly improved its production during the current fiscal year and is on the road to meeting its targets. The second quarter 2024 earnings release revealed that the company is producing 192,500 barrels of oil per day. This production rate is in line with its production guidance for the year which stands at 191,000 to 199,000 barrels of oil per day.

As a result of a strong production rate, the company was able to generate significant income from its operations. Adjusted funds flow from operations was recorded at $611.7 million. One of the more significant milestones for Veren Inc. (NYSE:VRN) came in the form of debt reduction. It was able to reduce $620.2 million during the quarter and ended the quarter with $2.96 billion in debt.

Recently, management announced entering into a long-term strategic partnership with Pembina Gas Infrastructure (“PGI”) for certain infrastructure assets in the Alberta Montney location. It is said to make $400 million from the proceedings which will be used to reduce the debt further. Moreover, the partnership will also grant operational access to additional battery sites, thereby further enhancing its production efficiency and would help reduce operating costs.

Veren Inc. (NYSE:VRN) has grown its top line by 23% during the past 3 years and its current growth trajectory points towards continued growth momentum.