Third Quarter 2021 Results CALGARY, Alberta, Nov. 04, 2021 (GLOBE NEWSWIRE) -- Crew Energy Inc. (TSX: CR, OTCQB: CWEGF) (“Crew” or the “Company”), a growth-oriented natural gas weighted producer operating exclusively in the world-class Montney play in northeast British Columbia, is pleased to announce our operating and financial results for the three and nine month periods ended September 30, 2021. 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 www.sedar.com.
“Crew benefitted from positive market developments in the third quarter as commodity prices reached levels unseen in recent history, enabling the Company to capture value from our world-class resource to generate meaningful adjusted funds flow1 (“AFF”),” said Dale Shwed, President and CEO of Crew. “Crew exceeded previously announced quarterly production guidance by 13% at the midpoint, due largely to the successful execution of our capital program. In addition, we are now a pure-play Montney producer with an improved environmental profile after the sale of our Lloydminster heavy crude oil operations. We are excited to advance our two-year plan to create sustainable value for shareholders by increasing production into a strengthening commodity price environment, while also reducing per unit costs to expand margins.”
Q3 2021 HIGHLIGHTS
- 23,659 boe per day1 (142.0 mmcfe per day) of average production in Q3/21, a 17% increase over Q3/20 and 13% above the midpoint of production guidance range of 20,000 to 22,000 boe per day1, a result of the successful execution of our capital program highlighted by production from the new 1-8 pad and the quick turnaround of the West Septimus gas plant in 7.5 days. For the first nine months of 2021, volumes averaged 25,532 boe per day1 (153.2 mmcfe per day), a 16% increase over the same period in 2020.
- $26.5 million of AFF2 ($0.17 per fully diluted share) was generated in the quarter, a 210% increase over Q3/20, with year-over-year growth being bolstered by higher production, lower cash costs and significantly improved commodity prices. AFF1 in the first nine months of 2021 totaled $86.0 million ($0.55 per share), 236% higher than the same period in 2020.
- $176.2 million of net income ($1.12 per fully diluted share) compared to a net loss of $21.1 million ($0.14 per fully diluted share) in the comparable period of 2020, with the increase due primarily to the reversal of a previous impairment charge of $228.5 million, net of depletion.
- 11% reduction in net operating costs2 per unit in Q3/21, totaling $5.11 per boe compared to $5.74 per boe in Q3/20, reflecting lower average net operating costs from new production at West Septimus and improved operational efficiencies, supporting an 86% year-over-year increase in operating netback2 to $16.07 per boe. The previously announced disposition of our Lloydminster heavy crude oil operations on September 24, 2021, is expected to reduce operating costs by approximately $0.70 per boe going forward.
- $56.5 million of net capital expenditures2 in Q3/21, below our previously forecast range of $60 to $70 million due to the recently announced disposition of the Company’s Lloydminster heavy crude oil operations offsetting total exploration and development spending of $64.3 million. The majority of expenditures were directed towards continued development at Septimus and West Septimus (“Greater Septimus”).
- Three new Groundbirch wells were completed in Q3/21, achieving a combined restricted rate of 32 mmcf per day at the end of an 18-day flowback period in October, establishing a promising new development area with over 70,000 acres of contiguous land.
- Achieved record throughput of 115 mmcf per day of sales gas at the West Septimus gas plant at its peak in October, leading to record high natural gas production levels of 149 mmcf per day.
- $404.1 million of net debt2 at September 30, 2021, with no near-term maturities and no financial covenants or repayment requirements on the $300 million of senior notes termed out until 2024. The Company’s bank syndicate completed its fall review, confirming the facility at $150 million until the next review in the second quarter of 2022.
- Completed the sale of Crew’s Lloydminster heavy crude oil operations (as previously announced in Crew’s press release dated October 28, 2021), successfully accomplishing our corporate evolution to become a pure play Montney producer. Divestment of these assets sets the stage for Crew to improve efficiencies, significantly reduce our Greenhouse Gas (“GHG”) emissions intensity going forward, and decrease overall decommissioning obligations by nearly 40%.
- Advanced our corporate sustainability initiatives through listing on OTCQB market under the ticker ‘CWEGF’, which expands our audience scope, pool of capital, and provides U.S. investors greater flexibility and ease to trade in the Company’s common shares.
https://www.globenewswire.com/news-release/2021/11/04/2328175/0/en/Crew-Energy-Inc-Announces-Third-Quarter-2021-Results-Highlighted-By-Strong-Financial-and-Operating-Performance.html