CALGARY, ALBERTA–(Marketwired – Aug. 9, 2017) – Gear Energy Ltd. (“Gear” or the “Company”) (TSX:GXE) is pleased to provide the following second quarter operating update to shareholders. Gear’s Interim Financial Statements and related Management’s Discussion and Analysis (“MD&A”) for the period ended June 30, 2017 are available for review on Gear’s website at www.gearenergy.com and on www.sedar.com.
Financial Summary | ||||||
Three months ended | Six months ended | |||||
(Cdn$ thousands, per boe amounts) | Jun 30, 2017 | Jun 30, 2016 | Mar 31, 2017 | Jun 30, 2017 | Jun 30, 2016 | |
FINANCIAL | ||||||
Cash flow from operations (1) | 10,248 | 8,333 | 8,729 | 18,977 | 12,317 | |
Per weighted average basic share | 0.05 | 0.10 | 0.05 | 0.10 | 0.14 | |
Per weighted average diluted share | 0.05 | 0.10 | 0.04 | 0.09 | 0.14 | |
Cash flow from operating activities | 5,362 | 5,066 | 12,245 | 17,607 | 8,622 | |
Net income (loss) | 3,001 | (7,312) | 2,986 | 5,987 | (9,028) | |
Per weighted average basic share | 0.02 | (0.08) | 0.02 | 0.03 | (0.11) | |
Per weighted average diluted share | 0.01 | (0.08) | 0.01 | 0.03 | (0.11) | |
Capital expenditures | 6,161 | 1,165 | 18,784 | 24,945 | 1,267 | |
Net acquisitions (2) | 127 | 26 | (68) | 59 | (454) | |
Net debt outstanding (1) | 43,409 | 34,200 | 46,745 | 43,409 | 34,200 | |
Weighted average shares, basic (thousands) | 192,922 | 86,117 | 192,840 | 192,881 | 85,800 | |
Weighted average shares, diluted (thousands) | 208,971 | 86,117 | 209,652 | 209,074 | 85,800 | |
Shares outstanding, end of period (thousands) | 192,935 | 114,234 | 192,915 | 192,935 | 114,234 | |
OPERATING | ||||||
Production | ||||||
Heavy Oil (bbl/d) | 3,887 | 4,358 | 3,739 | 3,813 | 4,275 | |
Light and Medium Oil (bbl/d) | 1,412 | – | 1,085 | 1,249 | – | |
Natural gas liquids (bbl/d) | 322 | – | 217 | 270 | – | |
Natural gas (mcf/d) | 5,334 | 1,070 | 5,197 | 5,266 | 1,265 | |
Total (boe/d) | 6,510 | 4,536 | 5,907 | 6,210 | 4,485 | |
Average prices | ||||||
Heavy oil ($/bbl) | 44.72 | 39.00 | 43.13 | 43.94 | 29.95 | |
Light oil ($/bbl) | 59.64 | – | 60.91 | 60.19 | – | |
Natural gas liquids ($/bbl) | 28.11 | – | 23.08 | 26.10 | – | |
Natural gas ($/mcf) | 2.91 | 1.20 | 3.00 | 2.96 | 1.39 | |
Netback ($/boe) | ||||||
Commodity and other sales | 43.77 | 37.75 | 41.98 | 42.92 | 29.10 | |
Royalties | (4.96) | (2.96) | (3.97) | (4.49) | (2.30) | |
Operating costs | (17.78) | (13.44) | (16.28) | (17.07) | (14.38) | |
Operating netback (1) | 21.03 | 21.34 | 21.73 | 21.36 | 12.41 | |
Realized risk management gains (losses) | (0.77) | 4.91 | (1.24) | (0.99) | 8.76 | |
General and administrative | (2.13) | (3.28) | (3.00) | (2.54) | (3.47) | |
Transaction costs | – | (1.22) | – | – | (0.62) | |
Interest | (0.83) | (1.56) | (0.88) | (0.85) | (1.54) | |
Other | – | – | (0.19) | (0.09) | (0.59) | |
Corporate netback (1) | 17.30 | 20.19 | 16.42 | 16.89 | 14.95 | |
TRADING STATISTICS ($ based on intra-day trading) | ||||||
High | 0.94 | 0.82 | 1.26 | 1.26 | 0.82 | |
Low | 0.60 | 0.46 | 0.76 | 0.60 | 0.25 | |
Close | 0.74 | 0.61 | 0.90 | 0.74 | 0.61 | |
Average daily volume (thousands) | 253 | 272 | 553 | 403 | 206 | |
(1) | Cash flow from operations, net debt, operating netback and corporate netback are non-GAAP measures and additional information with respect to these measures can be found under the heading “Non-GAAP Measures” in Gear’s MD&A. |
(2) | Net acquisitions exclude non-cash items for decommissioning liability and deferred taxes and is net of post-closing adjustments. |
QUARTERLY HIGHLIGHTS
OUTLOOK
Revised 2017 Guidance | Previous 2017 Guidance | H1 2017 YTD Actuals | |
Production (boe/d) | 6,600 | 6,400 | 6,210 |
Per cent heavy oil (%) | 63 | 62 | 61 |
Per cent light/medium oil & NGLs (%) | 23 | 24 | 24 |
Royalty rate (%) | 10 | 10 | 10.5 |
Operating costs ($/boe) | 16.50 | 15.50 | 17.07 |
General and administrative expense ($/boe) | 2.20 | 2.15 | 2.54 |
Interest expense ($/boe) | 0.80 | 0.70 | 0.85 |
Capital and abandonment expenditures ($ millions) | 45 | 45 | 25.7 |
[/expand]