Saturn Oil & Gas Inc T.SOIL

Alternate Symbol(s): OILSF | T.SOIL.WT.A

Energy Oil & Gas E&P

Saturn Oil & Gas Inc. is a Canada-based resource company. The Company is engaged in the business of acquisition, exploration and development of petroleum and natural gas resource deposits in Western Canada. It focuses on advancing the exploration and development of its oil and gas properties in Alberta and Saskatchewan. It also focuses on the development of light oil weighted assets in Saskatchewan. Its portfolio includes Southeast Saskatchewan, West Central Saskatchewan, Central Alberta, and North Albert. The core producing properties in Southeast Saskatchewan include its Oxbow assets, which are concentrated within the Mississippian-aged, Midale and Frobisher oil formations and the Bakken assets concentrated in the Bakken formation of Southeast Saskatchewan. The core producing properties in West Central Saskatchewan consist of its Viking assets. The core producing properties in Central Alberta consist of its Cardium assets.

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Saturn Oil & Gas Inc > Highlights from 4/29 news release

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Post by ROIcrusaderon May 03, 2022 12:31pm

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Post# 34651453

Highlights from 4/29 news release

I know 2020-2021 (specifically the Oct 21 consolidation) was tough on shareholders. Silver lining: things are looking great, plan to exit 2022 at 8100-8500 boe/d and a shareholder returns plan is beginning to appear.

Outlook
Saturn is pursuing a balanced approach to sustainable production growth and rapid repayment of debt. The Company is forecasting 2022 to be another record year for oil and gas production, as outlined in the March 15, 2022 announcement of the fully funded $50 million capital program. The budgeted 2022 capital program is expected to result in:

Average 2022 annual production in the range of 7,800 to 8,200 boe/d;

Generating hedged EBITDA(2) in the range of $73 to $77 million, based on USD $75 WTI oil price assumption;

Corporate hedged EBITDA(2) to reach between $93 to $97 million, based on USD $100 WTI oil price assumption; and

Q4 2022 average production in the range of 8,100 to 8,500 boe/d, representing year-over-year production growth between 12% - 17%.

As a guiding principle, Saturn intends to direct approximately 50% of future corporate cash flow towards growth capital expenditures and approximately 50% to the repayment of debt. Saturn is committed to reducing debt levels in the near term and expects to make principal payments of approximately $38 million in 2022 and $40 million in 2023 which is expected to result in approximately zero net debt by year end 2023, assuming USD $75 WTI oil prices, under its current senior term loan.

Saturn anticipates that when future debt levels reach a sustainable level and debt repayments are terminated, the Company will have the capability to direct a portion of corporate cash flow to shareholders in the form of a dividend or share buyback program, subject to board of directors’ approval. Saturn has outstanding 13.4 million warrants, on a post consolidated basis, that expire on June 4, 2023 (trading symbol SOIL.WT, post-consolidated strike price of $3.20/share) that if exercised, would result in up to $42.9 million of proceeds that could accelerate the reduction of net debt.
(1) See non-GAAP measures and ratios, booked drilling locations
(2) See non-GAAP measures and ratios, EBITDA