CALGARY, Alberta, Dec. 14, 2022 (GLOBE NEWSWIRE) — Pieridae Energy Limited (“Pieridae” or the “Company”) (PEA.TO) is pleased to provide 2023 guidance including scope of the 2023 capital program along with production and net operating income projections.
|($ 000s unless otherwise noted)||Initial 2023 Guidance|
|Total production (boe/d)||37,000||39,000|
|Net operating income ($M)(1)(2)||$170,000||$200,000|
|Implied Operating Netback ($/boe) (2)||$12.00||$14.00|
|Sustaining capital expenditures ($M)(3)||$50,000||$55,000|
|Development capital expenditures ($M)(4)||$15,000||$20,000|
(1) Refer to the “non-GAAP measures” section of the Company’s latest MD&A
(2) Assumes average 2023 AECO price of $4.40/gj and average 2023 WTI price of USD$73/bbl, inclusive of fixed price forward sales contracts in place as at December 9, 2022
(3) Comprised primarily of facility and pipeline maintenance and turnaround capital expenditures
(4) Comprised of drilling, seismic and land expenditures
Pieridae’s priority for 2023 is the refinancing of our senior term debt and continued reduction of total debt outstanding to lower interest costs and improve financial flexibility. Management is targeting a year-end 2023 Debt to EBITDA ratio of less than 1.0x, subject to commodity prices.
Pieridae’s 2023 production guidance of 37,000 to 39,000 boe/d reflects the Company’s low 8% base decline rate mitigated by low-cost optimization initiatives and risked production additions from the drilling program.
Pieridae’s 2023 sustaining capital budget is focused on the planned five-week turnaround at the Company’s Waterton deep-cut, sour gas processing facility which is scheduled for late in the third quarter. Pieridae owns and operates three major gas processing facilities which each require periodic maintenance turnarounds on a five-to-six-year cycle.
The Company’s 2023 development program is focused on the completion and tie-in of the currently underway three-well Mannville drilling program at Brown Creek and Stolberg during the first half of 2023. Once complete, Pieridae plans to pause drilling operations and assess results prior to resuming development, subject to success of the initial program and capital availability.