Hemisphere Energy Announces 2024 Fourth Quarter and Year-End Financial and Operating Results
Hemisphere Energy (TSXV: HME) (OTCQX: HMENF) has reported strong financial and operating results for Q4 and full-year 2024. The company achieved record production of 3,436 boe/d (99% heavy oil), representing a 10% increase year-over-year. Annual revenue grew 18% to $99.9 million, while adjusted funds flow from operations increased 16% to $45.8 million.
Key 2024 achievements include: $22 million investment in drilling and facilities, $23.9 million in free funds flow (6% increase), and robust shareholder returns totaling over $21 million through dividends and share buybacks. The company maintained efficient operations with operating and transportation costs of $15.60/boe and exited 2024 with a positive working capital of $6.4 million.
First quarter 2025 production has grown to 3,800 boe/d, driven by polymer flood success. The company recently announced a special dividend of $0.03 per share, payable April 28, 2025.
Hemisphere Energy (TSXV: HME) (OTCQX: HMENF) ha riportato risultati finanziari e operativi solidi per il quarto trimestre e l'intero anno 2024. La società ha raggiunto una produzione record di 3.436 boe/giorno (99% petrolio pesante), con un incremento del 10% rispetto all'anno precedente. I ricavi annuali sono cresciuti del 18%, raggiungendo 99,9 milioni di dollari, mentre il flusso di cassa operativo rettificato è aumentato del 16%, arrivando a 45,8 milioni di dollari.
Tra i principali risultati del 2024 si segnalano: un investimento di 22 milioni di dollari in perforazioni e infrastrutture, un flusso di cassa libero di 23,9 milioni di dollari (in crescita del 6%) e solidi ritorni per gli azionisti per oltre 21 milioni di dollari tramite dividendi e riacquisto di azioni. L'azienda ha mantenuto operazioni efficienti con costi operativi e di trasporto di 15,60 dollari per boe e ha chiuso il 2024 con un capitale circolante positivo di 6,4 milioni di dollari.
La produzione del primo trimestre 2025 è cresciuta fino a 3.800 boe/giorno, grazie al successo della tecnica di iniezione polimerica. Recentemente la società ha annunciato un dividendo speciale di 0,03 dollari per azione, pagabile il 28 aprile 2025.
Hemisphere Energy (TSXV: HME) (OTCQX: HMENF) ha reportado sólidos resultados financieros y operativos para el cuarto trimestre y el año completo 2024. La compañía alcanzó una producción récord de 3,436 boe/día (99% petróleo pesado), lo que representa un aumento del 10% interanual. Los ingresos anuales crecieron un 18%, llegando a 99,9 millones de dólares, mientras que el flujo de fondos ajustado de las operaciones aumentó un 16%, alcanzando los 45,8 millones de dólares.
Los logros clave de 2024 incluyen: una inversión de 22 millones de dólares en perforación e instalaciones, un flujo de fondos libre de 23,9 millones de dólares (incremento del 6%) y sólidos retornos para los accionistas por más de 21 millones de dólares a través de dividendos y recompra de acciones. La empresa mantuvo operaciones eficientes con costos operativos y de transporte de 15,60 dólares por boe y cerró 2024 con un capital de trabajo positivo de 6,4 millones de dólares.
La producción del primer trimestre de 2025 creció hasta 3,800 boe/día, impulsada por el éxito de la inundación con polímeros. Recientemente, la compañía anunció un dividendo especial de 0,03 dólares por acción, pagadero el 28 de abril de 2025.
Hemisphere Energy (TSXV: HME) (OTCQX: HMENF)는 2024년 4분기 및 연간 재무 및 운영 실적에서 강력한 성과를 보고했습니다. 회사는 일일 3,436 boe (99% 중질유)라는 기록적인 생산량을 달성했으며, 이는 전년 대비 10% 증가한 수치입니다. 연간 매출은 18% 증가한 9,990만 달러를 기록했으며, 조정된 운영 현금 흐름은 16% 증가한 4,580만 달러에 달했습니다.
2024년 주요 성과로는 시추 및 시설에 2,200만 달러 투자, 2,390만 달러의 자유 현금 흐름(6% 증가), 배당금과 자사주 매입을 통해 2,100만 달러 이상의 주주 수익을 제공한 점이 포함됩니다. 회사는 배럴당 15.60달러의 운영 및 운송 비용으로 효율적인 운영을 유지했으며, 2024년 말에는 640만 달러의 긍정적인 운전자본을 확보했습니다.
2025년 1분기 생산량은 3,800 boe/일로 증가했으며, 이는 폴리머 주입 성공에 힘입은 결과입니다. 회사는 최근 주당 0.03달러의 특별 배당금을 발표했으며, 2025년 4월 28일에 지급될 예정입니다.
Hemisphere Energy (TSXV : HME) (OTCQX : HMENF) a publié de solides résultats financiers et opérationnels pour le quatrième trimestre et l'année complète 2024. La société a atteint une production record de 3 436 boe/jour (99 % pétrole lourd), soit une augmentation de 10 % par rapport à l'année précédente. Le chiffre d'affaires annuel a progressé de 18 % pour atteindre 99,9 millions de dollars, tandis que le flux de trésorerie ajusté provenant des opérations a augmenté de 16 % pour s'établir à 45,8 millions de dollars.
Les principales réalisations de 2024 comprennent : un investissement de 22 millions de dollars dans le forage et les infrastructures, un flux de trésorerie disponible de 23,9 millions de dollars (augmentation de 6 %) et des rendements solides pour les actionnaires totalisant plus de 21 millions de dollars via des dividendes et des rachats d'actions. La société a maintenu des opérations efficaces avec des coûts d'exploitation et de transport de 15,60 dollars par boe et a terminé 2024 avec un fonds de roulement positif de 6,4 millions de dollars.
La production du premier trimestre 2025 a augmenté pour atteindre 3 800 boe/jour, grâce au succès de l'injection de polymères. L'entreprise a récemment annoncé un dividende spécial de 0,03 dollar par action, payable le 28 avril 2025.
Hemisphere Energy (TSXV: HME) (OTCQX: HMENF) hat starke finanzielle und operative Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 gemeldet. Das Unternehmen erzielte eine Rekordproduktion von 3.436 boe/Tag (99% Schweröl), was einer Steigerung von 10 % gegenüber dem Vorjahr entspricht. Der Jahresumsatz wuchs um 18 % auf 99,9 Millionen US-Dollar, während der bereinigte operative Cashflow um 16 % auf 45,8 Millionen US-Dollar zunahm.
Zu den wichtigsten Erfolgen im Jahr 2024 zählen: eine Investition von 22 Millionen US-Dollar in Bohrungen und Anlagen, ein freier Cashflow von 23,9 Millionen US-Dollar (6 % Steigerung) sowie robuste Aktionärsrenditen von über 21 Millionen US-Dollar durch Dividenden und Aktienrückkäufe. Das Unternehmen hielt effiziente Betriebsabläufe mit Betriebs- und Transportkosten von 15,60 US-Dollar pro boe aufrecht und schloss 2024 mit einem positiven Nettoumlaufvermögen von 6,4 Millionen US-Dollar ab.
Die Produktion im ersten Quartal 2025 stieg auf 3.800 boe/Tag an, angetrieben durch den Erfolg der Polymer-Flutung. Kürzlich kündigte das Unternehmen eine Sonderdividende von 0,03 US-Dollar pro Aktie an, die am 28. April 2025 ausgezahlt wird.
- Record production of 3,436 boe/d, up 10% year-over-year
- Revenue increased 18% to $99.9 million
- Adjusted funds flow grew 16% to $45.8 million
- Strong shareholder returns of $21 million via dividends and buybacks
- Q1 2025 production growth to 3,800 boe/d
- Positive working capital position of $6.4 million, up from $3.6 million
- Operating costs increased to $13.89/boe in Q4 from $11.49/boe year-over-year
- Transportation costs rose to $3.78/boe in Q4 from $3.03/boe year-over-year
Vancouver, British Columbia--(Newsfile Corp. - April 17, 2025) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) ("Hemisphere" or the "Company") is pleased to provide its financial and operating results for the fourth quarter and year ended December 31, 2024.
2024 Highlights
- Increased annual production by
10% to a record of 3,436 boe/d (99% heavy oil). - Generated annual revenue of
$99.9 million , an18% increase over the previous year. - Achieved a
16% increase in annual adjusted funds flow from operations ("AFF")(1) to$45.8 million . - Invested
$22 million to drill nine wells, upgrade facilities, and purchase land at Atlee Buffalo in Alberta, as well as drill five wells (three production wells and two injection wells) and build the facilities required to test a pilot polymer flood at Marsden, Saskatchewan. - Generated
$23.9 million of annual free funds flow ("FFF")(1), a6% increase over annual FFF reported for 2023. - Achieved robust operating and transportation costs of
$15.60 /boe. - Distributed
$9.8 million in quarterly base dividends to shareholders during the year. - Distributed
$5.9 million in special dividends to shareholders during the year. - Purchased and cancelled 3.4 million shares at an average price of
$1.62 per share under the Company's normal course issuer bid ("NCIB"), returning$5.5 million to shareholders during the year. - Exited 2024 with a positive working capital(1) position of
$6.4 million compared to$3.6 million at December 31, 2023.
Note:
(1) Non-IFRS financial measure that is not a standardized financial measure under International Financial Reporting Standards ("IFRS") and may not be comparable to similar financial measures disclosed by other issuers. Refer to "Non-IFRS and Other Financial Measures" section below.
Financial and Operating Summary
Selected financial and operational highlights should be read in conjunction with Hemisphere's audited consolidated financial statements and related Management's Discussion and Analysis for the year ended December 31, 2024. These reports, including the Company's Annual Information Form for the year ended December 31, 2024, are available on SEDAR+ at www.sedarplus.ca and on Hemisphere's website at www.hemisphereenergy.ca. All amounts are expressed in Canadian dollars unless otherwise noted.
| Three Months Ended December 31 | Years Ended December 31 | |||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | ||||||||
| FINANCIAL | ||||||||||||
| Petroleum and natural gas revenue | $ | 23,361 | $ | 22,423 | $ | 99,935 | $ | 84,472 | ||||
| Operating field netback(1) | 13,714 | 13,517 | 60,106 | 51,843 | ||||||||
| Operating netback(1) | 13,627 | 14,428 | 59,844 | 52,118 | ||||||||
| Cash provided by operating activities | 12,284 | 13,496 | 46,548 | 44,241 | ||||||||
| Adjusted funds flow from operations ("AFF")(1) | 10,415 | 11,295 | 45,796 | 39,411 | ||||||||
| Per share, basic(1) | 0.11 | 0.11 | 0.47 | 0.39 | ||||||||
| Per share, diluted(1) | 0.10 | 0.11 | 0.46 | 0.39 | ||||||||
| Free funds flow(1) | 7,092 | 9,144 | 23,944 | 22,539 | ||||||||
| Net income | 7,342 | 3,981 | 33,103 | 24,195 | ||||||||
| Per share, basic | 0.08 | 0.04 | 0.34 | 0.24 | ||||||||
| Per share, diluted | 0.07 | 0.04 | 0.33 | 0.24 | ||||||||
| Dividends | 5,366 | 5,489 | 15,703 | 13,083 | ||||||||
| Per share, basic | 0.055 | 0.055 | 0.160 | 0.130 | ||||||||
| NCIB share repurchases | 1,375 | 2,085 | 5,461 | 4,095 | ||||||||
| Capital expenditures(1) | 3,323 | 2,151 | 21,852 | 16,872 | ||||||||
| Working capital(1) | 6,418 | 3,589 | 6,418 | 3,589 | ||||||||
| Average daily production | ||||||||||||
| Heavy oil (bbl/d) | 3,341 | 3,364 | 3,416 | 3,100 | ||||||||
| Natural gas (Mcf/d) | 110 | 132 | 120 | 147 | ||||||||
| Combined (boe/d) | 3,359 | 3,386 | 3,436 | 3,125 | ||||||||
| Oil weighting | ||||||||||||
| Average sales prices | ||||||||||||
| Heavy oil ($/bbl) | $ | 75.96 | $ | 72.36 | $ | 79.89 | $ | 74.53 | ||||
| Natural gas ($/Mcf) | 1.42 | 2.19 | 1.39 | 2.56 | ||||||||
| Combined ($/boe) | $ | 75.59 | $ | 71.97 | $ | 79.48 | $ | 74.07 | ||||
| Operating netback ($/boe) | ||||||||||||
| Petroleum and natural gas revenue | $ | 75.59 | $ | 71.97 | $ | 79.48 | $ | 74.07 | ||||
| Royalties | (13.54 | ) | (14.07 | ) | (16.08 | ) | (14.71 | ) | ||||
| Operating costs | (13.89 | ) | (11.49 | ) | (11.36 | ) | (10.87 | ) | ||||
| Transportation costs | (3.78 | ) | (3.03 | ) | (4.24 | ) | (3.03 | ) | ||||
| Operating field netback(1) | 44.38 | 43.38 | 47.80 | 45.46 | ||||||||
| Realized commodity hedging gain (loss) | (0.28 | ) | 2.92 | (0.21 | ) | 0.24 | ||||||
| Operating netback(1) | $ | 44.10 | $ | 46.30 | $ | 47.59 | $ | 45.70 | ||||
| General and administrative expense | (4.74 | ) | (5.63 | ) | (3.91 | ) | (4.05 | ) | ||||
| Interest expense and foreign exchange (loss) | (0.41 | ) | (0.44 | ) | (0.40 | ) | (0.58 | ) | ||||
| Current tax expense | (5.25 | ) | (3.98 | ) | (6.86 | ) | (6.51 | ) | ||||
| Adjusted funds flow from operations(1) ($/boe) | $ | 33.70 | $ | 36.25 | $ | 36.42 | $ | 34.56 | ||||
Note:
(1) Non-IFRS financial measure that is not a standardized financial measure under IFRS Accounting Standards ("IFRS") and may not be comparable to similar financial measures disclosed by other issuers. Refer to "Non-IFRS and Other Financial Measures" section of the MD&A.
| COMMON SHARES | April 16, 2025 | December 31, 2024 | December 31, 2023 | ||||||
| Common shares issued and outstanding | 96,786,752 | 97,389,735 | 99,340,339 | ||||||
| Stock options | 5,341,600 | 6,021,600 | 7,563,000 | ||||||
| Total fully diluted shares outstanding | 102,128,352 | 103,411,335 | 106,903,339 |
Operations Update and Outlook
2024 marked another strong year for Hemisphere, with record production levels of over 3,400 boe/d (
Given the strong financial position and performance outlook of the Company, Hemisphere recently announced a special dividend of C
As seen over the first two weeks of April, pricing outlook for the oil market is experiencing significant volatility influenced by geopolitical developments, supply-demand dynamics, and trade tensions. Hemisphere's 2025 budget is extremely flexible with minimal capital spending planned until summer. The Company's robust balance sheet, ultra-low decline assets, and limited sustaining capital requirements for 2025 position Hemisphere well to withstand these economic headwinds.
About Hemisphere Energy Corporation
Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high netback, low decline conventional heavy oil assets through polymer flood enhanced oil recovery methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol "HME" and on the OTCQX Venture Marketplace under the symbol "HMENF".
For further information, please visit the Company's website at www.hemisphereenergy.ca to view its corporate presentation or contact:
Don Simmons, President & Chief Executive Officer
Telephone: (604) 685-9255
Email: info@hemisphereenergy.ca
Website: www.hemisphereenergy.ca
Forward-Looking Statements
Certain statements included in this news release constitute forward-looking statements or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation. Forward-Looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target" and similar words suggesting future events or future performance. In particular, but without limiting the generality of the foregoing, this news release includes forward-looking statements that a special dividend will be paid to shareholders on April 28, 2025 to shareholders of record on April 17, 2025; Hemisphere's intention to have minimal capital spending until summer; and the Company's view that its robust balance sheet, ultra-low decline assets, and limited sustaining capital requirements for 2025 position Hemisphere well to withstand economic headwinds.
Forward‐Looking statements are based on a number of material factors, expectations or assumptions of Hemisphere which have been used to develop such statements and information, but which may prove to be incorrect. Although Hemisphere believes that the expectations reflected in such forward‐looking statements or information are reasonable, undue reliance should not be placed on forward‐looking statements because Hemisphere can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the current and go-forward oil price environment; that Hemisphere will continue to conduct its operations in a manner consistent with past operations; that results from drilling and development activities are consistent with past operations; current budgets; the quality of the reservoirs in which Hemisphere operates and continued performance from existing wells; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Hemisphere's reserve volumes; certain commodity price and other cost assumptions; continued availability of debt and equity financing and cash flow to fund Hemisphere's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Hemisphere operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Hemisphere to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Hemisphere has an interest in to operate the field in a safe, efficient and effective manner; the ability of Hemisphere to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Hemisphere to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Hemisphere operates; trade and tariff matters, including the impacts on costs and supply chains; and the ability of Hemisphere to successfully market its oil and natural gas products.
The forward‐looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward‐looking statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Hemisphere's products, changes in Hemisphere's budget, the early stage of development of some of the evaluated areas and zones; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Hemisphere or by third party operators of Hemisphere's properties, increased debt levels or debt service requirements; inaccurate estimation of Hemisphere's oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time‐to‐time in Hemisphere's public disclosure documents, (including, without limitation, those risks identified in this news release and in Hemisphere's Annual Information Form).
The forward‐looking statements contained in this news release speak only as of the date of this news release, and Hemisphere does not assume any obligation to publicly update or revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
This MD&A contains the terms adjusted funds flow from operations, free funds flow, operating field netback and operating netback, capital expenditures and working capital/net debt, which are considered "non-IFRS financial measures" and any of these measures calculated on a per boe basis, which are considered "non-IFRS financial ratios". These terms do not have a standardized meaning prescribed by IFRS. Accordingly, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. Investors are cautioned that these measures should not be construed as an alternative to net income (loss) or cashflow from operations determined in accordance with IFRS and these measures should not be considered more meaningful than IFRS measures in evaluating the Company's performance.
a) Adjusted funds flow from operations "AFF" (Non-IFRS Financial Measure and Ratio if calculated on a per boe basis): The Company considers AFF to be a key measure that indicates the Company's ability to generate the funds necessary to support future growth through capital investment and to repay any debt. AFF is a measure that represents cash flow generated by operating activities, before changes in non-cash working capital and adjusted for tax provision and decommissioning expenditures, and may not be comparable to measures used by other companies. The most directly comparable IFRS measure for AFF is cash provided by operating activities. AFF per share is calculated using the same weighted-average number of shares outstanding as in the case of the earnings per share calculation for the period.
A reconciliation of AFF to cash provided by operating activities is presented as follows:
| Three Months Ended December 31 | Years Ended December 31 | |||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | ||||||||
| Cash provided by operating activities | $ | 12,284 | $ | 13,496 | $ | 46,548 | $ | 44,240 | ||||
| Change in non-cash working capital | (509 | ) | (2,259 | ) | 7,578 | (5,266 | ) | |||||
| Adjust: Tax provision(1) | (1,597 | ) | - | (8,603 | ) | - | ||||||
| Adjust: Decommissioning obligation expenditures | 237 | 58 | 273 | 437 | ||||||||
| Adjusted funds flow from operations | $ | 10,415 | $ | 11,295 | $ | 45,796 | $ | 39,411 | ||||
| Per share, basic | $ | 0.11 | $ | 0.11 | $ | 0.47 | $ | 0.39 | ||||
| Per share, diluted | $ | 0.10 | $ | 0.11 | $ | 0.46 | $ | 0.39 | ||||
(1) Provision for income taxes deferred under new corporate partnership structure effective as of January 2, 2024.
b) Free funds flow ("FFF") (Non-IFRS Financial Measures): Calculated by taking adjusted funds flow and subtracting capital expenditures, excluding acquisitions and dispositions. Management believes that free funds flow provides a useful measure to determine Hemisphere's ability to improve returns and to manage the long-term value of the business.
| Three Months Ended December 31 | Years Ended December 31 | |||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | ||||||||
| Adjusted funds flow from operations | $ | 10,415 | $ | 11,295 | $ | 45,796 | $ | 39,411 | ||||
| Capital expenditures | (3,323 | ) | (2,151 | ) | (21,852 | ) | (16,872 | ) | ||||
| Free funds flow | $ | 7,092 | $ | 9,144 | $ | 23,944 | $ | 22,539 | ||||
| Per share, basic and diluted | $ | 0.07 | $ | 0.09 | $ | 0.24 | $ | 0.22 | ||||
c) Capital Expenditures (Non-IFRS Financial Measure): Management uses the term "capital expenditures" as a measure of capital investment in exploration and production assets, and such spending is compared to the Company's annual budgeted capital expenditures. The most directly comparable IFRS measure for capital expenditures is cash flow used in investing activities. A summary of the reconciliation of cash flow used in investing activities to capital expenditures is set forth below:
| Three Months Ended December 31 | Years Ended December 31 | |||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | ||||||||
| Cash used in investing activities | $ | 6,497 | $ | 3,745 | $ | 20,269 | $ | 19,456 | ||||
| Proceeds of disposition | 75 | - | 75 | - | ||||||||
| Change in non-cash working capital | (3,249 | ) | (1,594 | ) | 1,508 | (2,584 | ) | |||||
| Capital expenditures | $ | 3,323 | $ | 2,151 | $ | 21,852 | $ | 16,872 | ||||
d) Operating field netback (Non-IFRS Financial Measure and Ratio if calculated on a per boe basis): A benchmark used in the oil and natural gas industry and a key indicator of profitability relative to current commodity prices. Operating field netback is calculated as oil and gas sales, less royalties, operating expenses, and transportation costs on an absolute and per barrel of oil equivalent basis. These terms should not be considered an alternative to, or more meaningful than, cash flow from operating activities or net income or loss as determined in accordance with IFRS as an indicator of the Company's performance.
e) Operating netback (Non-IFRS Financial Measure and Ratio if calculated on a per boe basis): Calculated as the operating field netback plus the Company's realized gain (loss) on derivative financial instruments on an absolute and per barrel of oil equivalent basis.
f) Working capital/Net debt (Non-IFRS Financial Measure): Closely monitored by the Company to ensure that its capital structure is maintained by a strong balance sheet to fund the future growth of the Company. Working capital/net debt is used in this document in the context of liquidity and is calculated as the total of the Company's current assets, less current liabilities, excluding derivative financial instruments, decommissioning obligations, and lease liabilities, adjusted for tax provision and including any bank debt. There is no IFRS measure that is reasonably comparable to working capital/net debt.
The following table outlines the Company calculation of net debt:
| ( | As at December 31, 2024 | As at December 31, 2023 | ||||
| Current assets(1) | $ | 22,677 | $ | 14,110 | ||
| Current liabilities(1) | (7,656 | ) | (10,521 | ) | ||
| Adjust: Tax provision(2) | (8,603 | ) | - | |||
| Working capital | $ | 6,418 | $ | 3,589 | ||
Notes:
(1) Excluding fair value of financial instruments, decommissioning obligations, and lease liabilities.
(2) Provision for income taxes deferred under new corporate partnership structure effective as of January 2, 2024.
g) Supplementary Financial Measures and Ratios
"Adjusted Funds Flow from operations per basic share" is comprised of funds from operations divided by basic weighted average common shares.
"Adjusted Funds Flow from operations per diluted share" is comprised of funds from operations divided by diluted weighted average common shares.
"Annual Free Funds Flow" is comprised of free funds flow from the current three-month period multiplied by four.
"Operating expense per boe" is comprised of operating expense, as determined in accordance with IFRS, divided by the Company's total production.
"Realized heavy oil price" is comprised of heavy crude oil commodity sales from production, as determined in accordance with IFRS, divided by the Company's crude oil production.
"Realized natural gas price" is comprised of natural gas commodity sales from production, as determined in accordance with IFRS, divided by the Company's natural gas production.
"Realized combined price" is comprised of total commodity sales from production, as determined in accordance with IFRS, divided by the Company's total production.
"Royalties per boe" is comprised of royalties, as determined in accordance with IFRS, divided by the Company's total production.
"Transportation costs per boe" is comprised of transportation expenses, as determined in accordance with IFRS, divided by the Company's total production.
The Company has provided additional information on how these measures are calculated in the Management's Discussion and Analysis for the year ended December 31, 2024, which is available under the Company's SEDAR+ profile at www.sedarplus.ca.
Oil and Gas Advisories
Any references in this news release to initial production rates (including as a result of recent water or polymer flood activities) are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Such rates are based on field estimates and may be based on limited data available at this time.
A barrel of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Definitions and Abbreviations
| bbl | barrel | Mcf | thousand cubic feet |
| bbl/d | barrels per day | Mcf/d | thousand cubic feet per day |
| $/bbl | dollar per barrel | $/Mcf | dollar per thousand cubic feet |
| boe | barrel of oil equivalent | IFRS | International Financial Reporting Standards |
| boe/d | barrel of oil equivalent per day | WCS | Western Canadian Select |
| $/boe | dollar per barrel of oil equivalent | US$ | United States Dollar |
| Mboe | thousand barrels of oil equivalent | C$ | Canadian Dollar |
| MMboe | million barrels of oil equivalent |
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