CALGARY, Aug. 11, 2016 /CNW/ – Cequence Energy Ltd. (“Cequence” or the “Company”) (TSX: CQE) is pleased to announce its operating and financial results for the three and six month periods ended June 30, 2016. The Company’s Consolidated Financial Statements and Management’s Discussion and Analysis are available at cequence-energy.com and on SEDAR at www.sedar.com.
Second Quarter 2016 Highlights
Second quarter Company highlights include:
- Executed its cost reduction strategy and compared to the first quarter of 2015 the Company has reduced operating expense per boe by 18% and G&A expenses prior to restructuring charges by 21%.
- Continued strong performance from the recent 16-33 Montney well that utilized a new completion design. The IP 180 field production rate was 1,110 boe/d, including 260 bbls/d of condensate.
- Achieved average quarterly production of 7,857 boe/d while shutting in volumes due to low commodity prices. Second quarter productive capability was approximately 11,800 boe/d.
- Commenced the drilling of a water disposal well at Simonette with expected water management savings to be realized in the fourth quarter of 2016.
- Subsequent to June 30, 2016 the Company closed a disposition of facilities for proceeds of $5 million, prior to closing adjustments.
Three months ended |
Six months ended |
|||||||||
June 30, |
June 30, |
|||||||||
(000’s except per share and per unit amounts) |
||||||||||
2016 |
2015 |
% Change |
2016 |
2015 |
% Change |
|||||
FINANCIAL |
||||||||||
Production revenue |
8,637 |
18,489 |
(53) |
20,878 |
37,406 |
(44) |
||||
Total revenue(1) |
11,342 |
21,802 |
(48) |
27,115 |
45,396 |
(40) |
||||
Comprehensive income (loss) |
(12,212) |
246 |
(5,064) |
(18,100) |
(4,416) |
(310) |
||||
Per share – basic and diluted |
(0.06) |
0.00 |
n/a |
(0.09) |
(0.02) |
(350) |
||||
Funds flow from operations (2)(5) |
1,554 |
7,283 |
(79) |
1,240 |
15,566 |
(92) |
||||
Per share, basic and diluted |
0.01 |
0.03 |
(67) |
0.01 |
0.07 |
(86) |
||||
Capital expenditures, before acquisitions |
958 |
19,848 |
(95) |
8,320 |
42,430 |
(80) |
||||
Capital expenditures, including acquisitions |
1,096 |
(23,230) |
105 |
8,247 |
(3,583) |
330 |
||||
Net debt (3) (6) |
(73,507) |
(52,240) |
41 |
(73,507) |
(52,240) |
41 |
||||
Weighted average shares outstanding – basic |
211,028 |
211,028 |
– |
211,028 |
211,028 |
– |
||||
Weighted average shares outstanding – diluted |
211,028 |
212,317 |
(1) |
211,028 |
211,028 |
– |
||||
OPERATING |
||||||||||
Production volumes |
||||||||||
Natural gas (Mcf/d) |
40,127 |
48,665 |
(18) |
46,190 |
52,364 |
(12) |
||||
Crude oil (bbls/d) |
178 |
100 |
78 |
198 |
108 |
83 |
||||
Natural gas liquids (bbls/d) |
244 |
562 |
(57) |
240 |
558 |
(57) |
||||
Condensate (bbls/d) |
748 |
953 |
(22) |
904 |
1,074 |
(16) |
||||
Total (boe/d) |
7,857 |
9,726 |
(19) |
9,040 |
10,468 |
(14) |
||||
Sales prices |
||||||||||
Natural gas, including realized hedges ($/Mcf) |
1.73 |
3.35 |
(48) |
1.94 |
3.34 |
(42) |
||||
Crude oil and condensate, including realized hedges |
54.01 |
63.18 |
(15) |
49.76 |
55.98 |
(11) |
||||
Natural gas liquids ($/bbl) |
21.50 |
17.49 |
23 |
19.13 |
17.30 |
11 |
||||
Total ($/boe) |
15.86 |
24.63 |
(36) |
16.48 |
23.96 |
(31) |
||||
Netback ($/boe) |
||||||||||
Price, including realized hedges |
15.86 |
24.63 |
(36) |
16.48 |
23.96 |
(31) |
||||
Royalties |
0.17 |
(1.15) |
(115) |
(0.27) |
(1.60) |
(83) |
||||
Transportation |
(1.08) |
(1.99) |
(46) |
(1.13) |
(1.93) |
(41) |
||||
Operating costs |
(8.13) |
(8.99) |
(10) |
(9.13) |
(8.32) |
10 |
||||
Operating netback |
6.82 |
12.50 |
(45) |
5.95 |
12.11 |
(51) |
||||
General and administrative (5) |
(2.51) |
(2.17) |
16 |
(3.37) |
(2.06) |
64 |
||||
Interest(4) |
(2.24) |
(2.12) |
6 |
(1.93) |
(1.84) |
5 |
||||
Cash netback |
2.07 |
8.21 |
(75) |
0.65 |
8.21 |
(92) |
||||
(1) |
Total revenue is presented gross of royalties and includes realized gains (loss) on commodity contracts. |
(2) |
Funds flow from operations is calculated as cash flow from operating activities before adjustments for decommissioning liabilities expenditures and net changes in non-cash working capital. |
(3) |
Net debt is calculated as working capital (deficiency) less the aggregate principal amount of the senior notes. |
(4) |
Represents finance costs less amortization on transaction costs and accretion expense on senior notes and provisions. |
(5) |
For the three and six months ended June 30, 2016, general and administrative expenses and funds flow from operations includes $201 ($0.28) and $1,931 ($1.17/ boe) in restructuring charges, respectively. |
(6) |
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