RE:Q1 ER is out: Seriously Cheadle?
Cheadle12 wrote: Q1 2021 HIGHLIGHTS Production of 23,894 boe per day: Volumes were 6% higher than Q4/19 and 3% higher than Q1/19, due to well performance that exceeded expectations. Production volumes consisted of 69% natural gas, 14% condensate1 , 10% ngl and 7% oil. Strong Liquidity: Quarter end net debt2 of $337.7 million was 3% lower than Q4/19, which includes $300 million of senior unsecured term debt due in 2024 with no financial maintenance covenants and 13% drawn on a $235 million credit facility. $35 Million Cash Inflow: The first closing of a strategic debt and cost reduction transaction resulted in $35 million of proceeds that were applied to reduce credit facility borrowings and enables Crew to capture efficiencies and further strengthen the balance sheet. See our January 17 and February 27, 2021 press releases for complete transaction details. o After the second closing of this transaction, anticipated to occur in Q4/21, net debt will ultimately be reduced by $58.3 million with Crew realizing $2.1 million of annual cost savings going forward. o Commencing in 2021, Crew can exercise an option to dispose of an additional interest in our Greater Septimus facilities which would result in incremental cash consideration of up to $37.5 million. Cost Reduction and Efficiency Optimizations: Year-over-year, net operating and general and administrative (“G&A”) costs decreased 8% and 24% per boe, respectively, reflecting successful streamlining and optimization of field operations, as well as reduced compensation costs and lower head office lease costs. As a result of these streamlining efforts, Crew is forecasting a reduction in G&A expenses of approximately 25% in 2020 compared to 2019. Adjusted Funds Flow (“AFF”)2 Reflects Commodity Prices: AFF of $12.4 million ($0.08 per fully diluted share) was 27% and 53% lower than Q4/19 and Q1/19, respectively, reflecting the impact of weak commodity prices. Condensate Contribution: Condensate1 production averaged 3,340 bbls per day, 36% and 28% higher than Q4/19 and Q1/19, respectively, reflecting our focus on Crew’s ultra-condensate rich (“UCR”)3 area at Septimus and West Septimus (“Greater Septimus”). Capital Expenditures Focused on Reducing Costs and Driving Sustainability: Exploration and development expenditures totaled $18.0 million, with $5.7 million directed to cost reduction and sustainability initiatives that are expected to reduce operating costs and greenhouse gas (“GHG”) and CO2 emissions by 3,350 tonnes per year. Crew’s commitment to our environmental, social and governance (“ESG”) pillars has remained paramount, with social importance coming into sharper focus given the impact of COVID-19.