Crew Energy Inc. (TSX: CR; OTCQB: CWEGF) ("Crew"), a growth-oriented natural gas weighted producer operating in the world-class Montney play in northeast British Columbia (“NE BC”), is pleased to announce our operating and financial results for the three and six month periods ended June 30, 2024. Crew’s Financial Statements and Notes, as well as Management’s Discussion and Analysis (“MD&A”) are available on Crew’s website and filed on SEDAR+ at sedarplus.ca.
HIGHLIGHTS
- 29,253 boe per day1 (176 mmcfe per day) average production in Q2/24 was near the midpoint of quarterly guidance of 28,500 to 30,500 boe per day, reflecting new production from five ultra-condensate rich (“UCR”) wells brought on at the end of Q1/24, and partially offset by the impact of dry gas production being shut-in due to low natural gas pricing.
- 6,131 bbls per day of condensate production in Q2/24 marked a 67% volume increase over Q2/23 and a 12% increase from Q1/24, with condensate representing 21% of total production and 71% of sales7.
- 123,800 mcf per day of natural gas production in Q2/24 represented 71% of total production and 19% of sales, and is net of approximately 1,700 boe per day of predominantly dry gas that was shut-in to preserve value given low natural gas pricing.
- 2,425 bbls per day of natural gas liquids5,6 (“ngl”) production in Q2/24 represented 8% of total production and 9% of sales.
- $41.4 million of Adjusted Funds Flow (“AFF”)2 ($0.26 per fully diluted share3) was generated in Q2/24, exceeding market expectations and enhanced by higher condensate production.
- AFF2 as a percentage of petroleum and natural gas sales (“AFF Margin”)3 totaled 55% in Q2/24.
- Operating netbacks4 averaged $17.70 per boe, while AFF per boe (“AFF Netback”)3 averaged $15.55 per boe in Q2/24.
- $15.9 million of net capital expenditures4 were invested in Q2/24, lower than guidance for the quarter of $20 to $25 million, reflecting an efficient capital program which included $5.3 million allocated to drilling and completion activities, $7.9 million to facilities, equipment and pipelines and $2.7 million to land, seismic and other miscellaneous items.
- During the quarter, five (5.0 net) UCR wells at the 7-18 pad were tied-in through permanent production facilities, preparation for six (6.0 net) Tower completions began, and Crew continued to advance both the West Septimus Gas Plant electrification project and the future Groundbirch plant project.
- $25.6 million of free AFF4 was generated in Q2/24, largely directed to debt reduction in order to enhance long-term sustainability, with only 39% drawn on Crew’s $250 million credit facility at period end.
- $124.5 million in net debt2 at quarter-end, representing a 16% reduction from the prior quarter, with net debt to trailing last twelve-month (“LTM”) EBITDA3 of 0.6x. This balance sheet strength positions the Company to further advance our plan to enhance reserves and production, supported by strategic infrastructure investments.
- $13.5 million in positive after-tax net income ($0.08 per fully diluted share) was recorded during the quarter.
- $10.68 cash costs per boe4 in Q2/24 increased 10% over Q2/23, primarily reflecting similar costs spread over lower production volumes, but remaining amongst the lowest in Crew’s peer group.