WESTGATE ENERGY ANNOUNCES Q2 2024 FINANCIAL RESULTS
Q2 2024 ("Q2/24") Financial and Operational Highlights
- Quarterly Production Growth – Achieved average daily production of 193 boe/d during Q2/24, exceeding Q1/24 by more than 8%.
-
Increasing Operating Netback(1) – Improved the operating netback to
$22.14 /boe, driven by a lower operating expense of$18.18 /boe versus a Q1/24 operating expense of$23.60 /boe. -
Completed Go-Public Transaction – Closed the Company's go-public transaction on
May 23, 2024 , which is intended to provide broader access to capital and facilitate Westgate's ability to complete M&A transactions. -
Raised Over
$7.0 million of Equity Financing – Proceeds from additional equity financing fully fund the 2024 drilling budget and ensure a strong, debt free balance sheet. -
Significantly Higher Realized Oil Pricing – The Company improved its realized oil price at the wellhead during Q2/24 due to optimizing the marketing of
Killam's 29o API oil.
Q2/24 Financial & Operating Results Summary
|
($'s, unless otherwise stated) |
|
Q2-2024 |
Q1-2024 |
Q4-2024 |
Q3-2023 |
|
Production |
|
|
|
|
|
|
Oil |
bbl/d |
86 |
88 |
33 |
36 |
|
Natural gas |
mcf/d |
618 |
511 |
437 |
510 |
|
NGLs |
bbl/d |
4 |
5 |
4 |
5 |
|
Total |
boe/d(6:1) |
193 |
178 |
110 |
126 |
|
Revenue: |
|
|
|
|
|
|
Crude oil |
|
713,611 |
615,264 |
272,172 |
322,601 |
|
Natural gas |
|
43,904 |
85,644 |
81,264 |
106,044 |
|
NGLs |
|
33,642 |
29,880 |
25,844 |
31,636 |
|
Petroleum, natural gas and NGL sales |
|
791,157 |
730,788 |
379,280 |
460,281 |
|
Processing revenue |
|
3,789 |
364 |
13,404 |
- |
|
Total Revenue(1) |
|
794,946 |
731,152 |
392,686 |
460,281 |
|
Royalties |
|
(87,026) |
(71,888) |
(66,866) |
(60,554) |
|
Operating expenses |
|
(319,159) |
(382,668) |
(345,366) |
(281,235) |
|
Operating Income (loss)(1) |
|
388,761 |
276,596 |
(19,548) |
118,492 |
|
Expenditures on property and equipment |
(326,374) |
(593,204) |
(2,466,978) |
(93,800) |
|
|
Acquisition of property and equipment |
- |
- |
(11,683) |
- |
|
|
REALIZED PRICES(2) |
|
|
|
|
|
|
Crude oil |
$/bbl |
91.68 |
76.54 |
89.36 |
97.91 |
|
Natural gas |
$/mcf |
0.78 |
1.84 |
2.02 |
2.26 |
|
NGLs |
$/bbl |
83.17 |
68.81 |
66.31 |
70.29 |
|
Realized Prices |
$/boe |
45.06 |
45.06 |
37.43 |
39.82 |
|
Processing revenue |
$/boe |
0.22 |
0.02 |
1.32 |
- |
|
Royalties |
$/boe |
(4.96) |
(4.43) |
(6.60) |
(5.24) |
|
Royalties as a percentage of revenue(2) |
% |
11 % |
10 % |
18 % |
13 % |
|
Operating expenses |
$/boe |
(18.18) |
(23.60) |
(34.08) |
(24.33) |
|
Operating Netback (1) |
$/boe |
22.14 |
17.05 |
(1.93) |
10.25 |
|
(1) Non-GAAP financial measure. Refer to the "Non-GAAP Measures" section within this MD&A for additional information on non-GAAP financial measures. (2) Supplementary financial measure, Refer to the "Supplementary Measures" section within this MD&A for additional information. |
|||||
Operations Update
As previously communicated, the Company drilled two horizontal multi-lateral oil wells in July. These wells are now both on production and recovering load fluid. The Company expects to be in a position to provide a production update by the end of September.
Westgate's Differentiated Strategy
Westgate is focused on the emerging Mannville Stack fairway located in East-Central Alberta and West Central Saskatchewan. This fairway is characterized by known accumulations of medium and heavy oil which are being 'unlocked' via the application of innovative drilling techniques that utilize multi-lateral horizontal drilling. Applying these multi-lateral drilling techniques has yielded some of the strongest oil well economics across
For more information, please visit www.westgateenergy.ca.
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