CALGARY, Alberta, Nov. 03, 2022 (GLOBE NEWSWIRE) — Crew Energy Inc. (TSX: CR; OTCQB: CWEGF) (“Crew” or the “Company”), a growth-oriented natural gas weighted producer operating in the world-class Montney play in northeast British Columbia (“NE BC”), is pleased to announce our operating and financial results for the three and nine month periods ended September 30, 2022. Crew’s Financial Statements and Notes, as well as Management’s Discussion and Analysis (“MD&A”) are available on Crew’s website and filed on SEDAR at www.sedar.com.
“Crew’s Q3 performance reflects continued success driving our two-year asset development plan (the “Two-Year Plan”) forward, exceeding the plan’s original leverage, margin improvement and production targets. As of the end of Q3/22, we have significantly deleveraged resulting in zero bank debt and a net debt2 to last twelve month (“LTM”) EBITDA1 ratio of just 0.5 times, while generating quarterly production volumes of 31,792 boe per day and Adjusted Funds Flow2 (“AFF”) of $69.4 million,” said Dale Shwed, President and CEO of Crew. “Due to our outperformance to date in 2022, paired with strong results from our recent development initiatives, we believe Crew is in an excellent position to continue our momentum in responsibly developing our world-class Montney assets.”
HIGHLIGHTS
- 31,792 boe per day3 (191 mmcfe) average production in Q3/22 was near the high end of Crew’s production guidance range of 30,000 to 32,000 boe per day3 and represents a 34% increase over Q3/21 volumes, despite production shut-in for offsetting completion operations at Groundbirch and in part for intermittently low regional spot gas prices. For the first nine months of 2022, volumes averaged 33,405 boe per day3 (200 mmcfe), 31% above the same period in 2021.
- Natural gas production in the quarter increased 36% over Q3/21 to 146 mmcf per day.
- Condensate production increased 101% over Q3/21 to 4,731 bbls per day.
- Natural gas liquids4,5 (“NGLs”) increased 20% over Q3/21 to 2,692 bbls per day.
- $69.4 million of AFF2 ($0.46 per basic share and $0.43 per fully diluted share) was generated in Q3/22, a 162% increase from Q3/21, driven by year-over-year production growth and strong operating netbacks6 of $26.43 per boe. For the first nine months of 2022, AFF2 of $262.4 million was 205% higher than the comparable period in 2021.
- $15.9 million of Free AFF6 was generated in Q3/22, supporting Crew’s accelerated deleveraging and further strengthening financial flexibility.
- 62% reduction in net debt2 relative to year end 2021, totaling $152.6 million at quarter-end with nil drawings on our recently increased $200 million credit facility.
- Proceeds of $130 million from the previously announced non-core Attachie and Portage property disposition (the “Disposition”) facilitated a 43% reduction in Crew’s outstanding Senior Unsecured Notes compared to year-end 2021, with $172 million now due in 2024.
- 0.5 times net debt2 to LTM EBITDA1 ratio at quarter-end.
- 25% reduction in cash costs per boe6 to $10.23 per boe in Q3/22 from $13.61 in Q3/21, with net operating costs6 declining 19% over Q3/21 to $4.12 per boe.
- $53.6 million invested in exploration and development expenditures during Q3/22, below the midpoint of previously provided guidance of $60 million, with $39.7 million directed to drilling and completion activities in the Greater Septimus area, $11.6 million on facilities, equipment and pipelines and $2.3 million on land, seismic, and other miscellaneous amounts.
- Net capital expenditures6 in Q3/22 were negative $76.4 million as disposition proceeds of $130.0 million offset Crew’s exploration and development expenditures during the quarter.
FINANCIAL & OPERATING HIGHLIGHTS