Market Overview

Crew Energy Inc. Announces Third Quarter 2018 Financial and Operating Results

Share:

CALGARY, Nov. 5, 2018 /CNW/ - Crew Energy Inc. (TSX:CR) ("Crew" or the "Company") is pleased to announce our operating and financial results for the three and nine month periods ended September 30, 2018.  Our Financial Statements and Notes, as well as Management's Discussion and Analysis ("MD&A") for the three and nine month periods ended September 30, 2018 are available on Crew's website and filed on SEDAR. 

HIGHLIGHTS

  • Production of 23,680 boe per day: Volumes exceeded the midpoint of guidance with capital expenditures that were below budget. Greater Septimus production of 19,240 boe per day was 6% higher than the 18,154 boe per day produced in Q3 2017.
  • Montney Condensate Remains in Focus: With Q3 condensate volumes of 2,077 bbls per day, Crew continued to benefit from strong realized condensate pricing in the quarter, which averaged $81.45 per bbl, a 55% increase over the $52.71 per bbl in Q3 2017.
  • Adjusted Funds Flow ("AFF") Boosted by Strong Liquids Pricing: Q3 AFF totaled $20.1 million or $0.13 per fully diluted share, compared with Q2 2018 AFF of $21.8 million or $0.14 per fully diluted share, reflecting our focus on higher-value liquids production and improved liquids pricing.
  • Continued Natural Gas Price Outperformance vs. AECO: Q3 average realized natural gas price of $2.40 per mcf outperformed the AECO 5A benchmark of $1.19 per mcf by 102%, driven by Crew's high heat content natural gas and exposure to diversified, higher-priced sales hubs and gas markets.
  • Exceptional Operational Performance with Lower Capital Spending: Net exploration and development expenditures in Q3 2018 were $23.7 million, below the lower end of our $25 to $30 million guidance range.
  • Ultra Condensate Rich ("UCR") Drilling in Greater Septimus: Completed drilling four out of five wells on Crew's first extended length lateral pad with the last well drilled early in Q4. Three of the five wells are currently being completed for production in Q4 2018, with the balance in Q1 2019.
  • Fully Connected to Major Export Pipelines: Crew's pipeline from West Septimus through Groundbirch connecting to the existing TCPL Saturn meter station was completed during the quarter, further enhancing our marketing and transportation flexibility and access to markets outside of western Canada.
  • Strong Balance Sheet Maintained: Quarter end net debt of $332.9 million is $12 million lower than year-end 2017, which includes $300 million of term debt due in 2024 with no financial maintenance covenants.   

Financial & Operating Highlights:






FINANCIAL

($ thousands, except per share amounts)

Three months

ended

Sept. 30, 2018

Three months

ended

Sept. 30, 2017

Nine months

ended

Sept. 30, 2018

Nine months

ended

Sept. 30, 2017

Petroleum and natural gas sales

54,080

47,824

167,547

154,008

Adjusted Funds Flow(1)

20,107

24,970

68,284

74,042

     Per share  - basic

0.13

0.17

0.45

0.50

                       - diluted

0.13

0.17

0.45

0.49

Net (loss)/income

(939)

2,127

(5,972)

32,063

     Per share  - basic

(0.01)

0.01

(0.04)

0.22

                       - diluted

(0.01)

0.01

(0.04)

0.21






Exploration and Development expenditures

23,656

90,069

70,045

201,889

Property acquisitions (net of dispositions)

9

(144)

(9,981)

(46,197)

Net capital expenditures

23,665

89,925

60,064

155,692






Capital Structure

($ thousands)



As at

Sept. 30, 2018

As at

Dec. 31, 2017

Working capital (surplus) / deficiency(2)



(11,025)

29,143

Bank loan



49,317

21,977




38,292

51,120

Senior Unsecured Notes



294,639

293,862

Total Net Debt



332,931

344,982

Current Debt Capacity(3)



535,000

535,000

Common Shares Outstanding (thousands)



151,730

149,328

Notes:

(1)

Adjusted funds flow is calculated as cash provided by operating activities, adding the change in non-cash working capital, decommissioning obligation expenditures and accretion of deferred financing costs.  Adjusted funds flow does not have a standardized measure prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculations of similar measures for other companies.  See "Non-IFRS Measures" contained within Crew's MD&A.

(2)

Working capital (surplus)/deficiency includes cash and cash equivalents plus accounts receivable less accounts payable and accrued liabilities.

(3)

Current Debt Capacity reflects the bank facility of $235 million plus $300 million in senior unsecured notes outstanding. 

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com