Lycos Energy Inc V.LCX

2023 Results - Looks great but ...

[Angles]

Everything seems great, except the share price???

• Achieved record production in the fourth quarter of 2023 of 4,121 boe/d (99% crude oil) and exit December average production of 4,357 boe/d (99% crude oil). This represents a 267% increase from the fourth quarter of 2022 of 1,123 boe/d (99% crude oil) and a 35% increase from the third quarter of 2023 of 3,043 boe/d (99% crude oil).

• Reduced net operating expenses(2) to $21.87 per boe in the fourth quarter of 2023 compared to $40.16 per boe in the fourth quarter of 2022, a 46% reduction year over year and a 19% decrease from $26.98 per boe in the third quarter of 2023.

• Generated adjusted funds flow from operations(2) of $11.4 million representing a 5763% increase from ($0.2 million) in the fourth quarter of 2022 and a 5% increase from $10.8 million in the third quarter of 2023.

• Reduced general and administrative expenses to $2.65/boe in the fourth quarter of 2023, a 72% decline from $9.32/boe in the fourth quarter of 2022.

• Increased total proved reserves by 153% to 9.9 mmboe from 3.9 mmboe and total proved plus probable reserves by 130% to 17.4 mmboe from 7.5 mmboe as a result of a successful drilling program from its multi-lateral and fishbone wells and the completion of three corporate acquisitions.

• Production replacement(1) was 236% on a total proved basis and 363% on a total proved plus probable basis.

• Achieved finding and development (F&D) costs(1), including changes in future development costs of $16.71 per boe on a proven producing basis and finding, development and acquisition (FD&A) costs(1) of $20.62 per boe on a total proved plus probable basis.

• Based on a 2023 adjusted funds flow netback(2) of 28.99/boe, achieved a recycle ratio, excluding acquisitions(1) of 1.7 on a proven producing basis and recycle ratio, including acquisitions(1) on a total proved plus probable basis of 1.4.

[Flush11]

We can't control the stock price obviously but truly I did not see anything negative in the update. If anything production was a little higher than expected. Likely positive news was already priced in a little. With oil prices down a few dollars maybe that is impacting.   Very impressed with the falling costs on pretty much every metric. Bring on the active drill program.