WHITECAP RESOURCES INC. EXCEEDS 2024 PRODUCTION GUIDANCE AND ANNOUNCES 2025 BUDGET
Selected financial and operating information is outlined below and should be read with Whitecap's unaudited interim consolidated financial statements and related management's discussion and analysis for the three and nine months ended
Financial ($ millions except for share amounts) |
Three Months ended |
Nine Months ended |
||
2024 |
2023 |
2024 |
2023 |
|
Petroleum and natural gas revenues |
890.9 |
955.9 |
2,739.6 |
2,637.5 |
Net income |
274.2 |
152.7 |
578.5 |
590.7 |
Basic ($/share) |
0.46 |
0.25 |
0.97 |
0.98 |
Diluted ($/share) |
0.46 |
0.25 |
0.96 |
0.97 |
Funds flow 1 |
409.0 |
466.0 |
1,219.4 |
1,329.1 |
Basic ($/share) 1 |
0.69 |
0.77 |
2.04 |
2.19 |
Diluted ($/share) 1 |
0.68 |
0.76 |
2.03 |
2.18 |
Dividends declared |
107.9 |
87.8 |
326.2 |
263.2 |
Per share |
0.18 |
0.15 |
0.55 |
0.43 |
Expenditures on property, plant and equipment 2 |
272.7 |
281.9 |
869.7 |
753.3 |
Free funds flow 1 |
136.3 |
184.1 |
349.7 |
575.8 |
Net Debt 1 |
1,361.8 |
1,260.2 |
1,361.8 |
1,260.2 |
Operating |
|
|
|
|
Average daily production |
|
|
|
|
Crude oil (bbls/d) |
92,335 |
85,238 |
91,604 |
84,717 |
NGLs (bbls/d) |
20,578 |
17,804 |
20,228 |
16,640 |
Natural gas (Mcf/d) |
362,332 |
323,903 |
369,551 |
310,531 |
Total (boe/d) 3 |
173,302 |
157,026 |
173,424 |
153,112 |
Average realized Price 1,4 |
|
|
|
|
Crude oil ($/bbl) |
94.29 |
103.72 |
95.23 |
95.43 |
NGLs ($/bbl) |
34.02 |
36.75 |
34.55 |
39.32 |
Natural gas ($/Mcf) |
0.76 |
2.76 |
1.56 |
2.97 |
Petroleum and natural gas revenues ($/boe) 1 |
55.88 |
66.17 |
57.65 |
63.10 |
Operating Netback ($/boe) 1 |
|
|
|
|
Petroleum and natural gas revenues1 |
55.88 |
66.17 |
57.65 |
63.10 |
Tariffs 1 |
(0.43) |
(0.50) |
(0.43) |
(0.51) |
Processing & other income 1 |
0.67 |
0.79 |
0.72 |
0.90 |
Marketing revenues 1 |
3.79 |
5.04 |
3.87 |
4.91 |
Petroleum and natural gas sales 1 |
59.91 |
71.50 |
61.81 |
68.40 |
Realized gain on commodity contracts 1 |
0.93 |
0.04 |
0.53 |
0.52 |
Royalties 1 |
(9.01) |
(11.53) |
(9.51) |
(10.90) |
Operating expenses 1 |
(13.38) |
(13.97) |
(13.71) |
(14.35) |
Transportation expenses 1 |
(2.10) |
(2.22) |
(2.09) |
(2.19) |
Marketing expenses 1 |
(3.76) |
(4.99) |
(3.84) |
(4.89) |
Operating netbacks |
32.59 |
38.83 |
33.19 |
36.59 |
Share information (millions) |
|
|
|
|
Common shares outstanding, end of period |
588.0 |
606.2 |
588.0 |
606.2 |
Weighted average basic shares outstanding |
595.2 |
606.0 |
597.3 |
605.8 |
Weighted average diluted shares outstanding |
599.2 |
610.0 |
600.7 |
609.5 |
MESSAGE TO SHAREHOLDERS
Whitecap continued its strong operational momentum in the third quarter with production exceeding expectations on both a total basis and on liquids production. Production in the quarter averaged 173,302 boe/d (112,913 bbl/d of total liquids and 362,332 mcf/d of natural gas) compared to our forecast of 167,500 boe/d (107,500 bbl/d of total liquids and 360,000 mcf/d of natural gas). As a result of the year to date outperformance, we now forecast our full year production to average 172,500 boe/d which is above the high end of our previously increased production guidance of 167,000 – 172,000 boe/d. This is our third production guidance increase for 2024.
Higher than forecast liquids production from our oil weighted and condensate rich assets contributed to funds flow of
We have a robust return of capital framework in place where for the nine months ended
Net debt at the end of the third quarter was
We also recently released our investment grade credit rating of BBB (low), with a stable trend, by
We provide the following third quarter and year to date 2024 financial and operating highlights:
-
Production Growth. Production momentum and continued operational execution resulted in 12% production per share growth6 compared to the third quarter of 2023. Crude oil and condensate production from our unconventional Montney and
Duvernay and Southeast Saskatchewan Frobisher assets contributed to our overall liquids production outperforming expectations. -
Funds Flow. Third quarter funds flow of
$409 million ($0.68 per share) benefitted from strength in crude oil and condensate prices along with continued focus on reducing operating costs. Natural gas revenue was less than 3% of petroleum and natural gas revenue in the third quarter as AECO natural gas prices averaged$0.65 /GJ. -
Capital Program. Third quarter capital expenditures of
$273 million included the drilling of a total of 67 (63.8 net) wells including 2 (2.0 net) Montney, 5 (5.0 net)Duvernay and 60 (56.8 net) conventional wells. We brought 4 (4.0 net) Montney wells at Musreau on production during the third quarter. -
Return of Capital. For the nine months ended
September 30, 2024 , we have returned$445 million to shareholders ($0.74 per share) through$326 million of base dividends and$119 million of share repurchases under our NCIB. -
Balance Sheet Strength. Quarter end net debt of
$1.4 billion equated to a Debt to EBITDA ratio of 0.6 times, an EBITDA to interest expense ratio5 of 25.3 times, and a debt to capitalization ratio5 of 0.17 times, all well within our debt covenants of not greater than 4.0 times, not less than 3.5 times and not greater than 0.6 times, respectively. During the third quarter, we entered into a new$2 billion unsecured covenant-based credit facility which replaced our previous secured credit and term loan facilities.
2025 BUDGET
Our Board of Directors has approved a 2025 capital budget of
Whitecap has an enviable portfolio of highly economic drilling inventory in both our conventional light oil plays as well as the unconventional liquids rich Montney and
Unconventional
Building off our operational success in 2024, we plan to allocate approximately 50% of our capital budget (
We drilled our first
We plan to drill 20 (20.0 net)
Montney
At Musreau, our 05-09 battery has been operating at condensate capacity with our most recent four well pad producing at restricted rates due to continued strong condensate production from our previous two pads. We have completed the drilling of our last four well pad (4.0 net) in 2024 and this is expected to be on production prior to year end. In 2025, we have one four well pad (4.0 net) planned for the second half of the year to maintain production at the battery.
In Kakwa, we are currently drilling our first triple bench pad, testing the potential of each of the D2, D3 and
At Lator, we are progressing our technical analysis as well as development planning for the area to coincide with the completion of our planned 04-13 battery in late 2026/early 2027. The two (2.0 net) wells drilled in 2024 will be on production prior to year end and we will follow up with two (2.0 net) additional wells in 2025. Results from this targeted development will inform development plans as we progress from phase one to phase two over the next several years. The focus for Lator in 2025 will be on technical due diligence, development planning, completion of the detailed engineering and design work for the 04-13 battery, and obtaining the required regulatory approvals for the commencement of the development program in 2026.
Conventional
We plan to invest
The very active capital programs across our conventional assets lead to stronger capital efficiencies and greater opportunities for inventory enhancement by using the same rigs, crews and service providers across our base programs. As a result, we are able to quickly implement new well designs and/or development plans to improve the already robust economics and further extend the inventory duration of this asset base.
In
In
At
OUTLOOK
Our operational execution to date has been exceptional and we expect this to continue for the rest of the year and into 2025. We believe that crude oil prices will remain volatile but on balance robust, especially considering the weak Canadian dollar, and are expected to average
We have taken a prudent approach to our 2025 capital budget to ensure it is defensible at lower commodity prices but also provides us optionality should commodity prices be higher than we anticipate. We expect to deliver organic production per share growth of approximately 5% and similar to 2024, we will look for opportunities to enhance our per share metrics in 2025.
Our balance sheet remains in excellent shape with low leverage and ample liquidity and will be further strengthened with our free funds flow in 2025.
We are excited about the opportunities within our vast portfolio of over 6,400 drilling locations8 including the enhanced oil recovery projects that underpin the sustainability of our dividend and growth model, and we look forward to updating our shareholders on our progress for the rest of the year, in 2025, and beyond.
On behalf of our employees, management team and Board of Directors, we would like to thank our shareholders for their continued support.
NOTES
1 |
Funds flow, funds flow basic ($/share), funds flow diluted ($/share) and net debt are capital management measures. Average realized price and per boe disclosure figures are supplementary financial measures. Operating netback and free funds flow are non-GAAP financial measures. Operating netbacks ($/boe) is a non-GAAP ratio. Refer to the Specified Financial Measures section in this press release for additional disclosure and assumptions. |
2 |
Also referred to herein as "capital expenditures" and "capital budget". |
3 |
Disclosure of production on a per boe basis in this press release consists of the constituent product types and their respective quantities disclosed herein. Refer to Barrel of Oil Equivalency and Production and Product Type Information in this press release for additional disclosure. |
4 |
Prior to the impact of risk management activities and tariffs. |
5 |
Debt to EBITDA ratio, EBITDA to interest expense ratio and debt to capitalization ratio are specified financial measures that are calculated in accordance with the financial covenants in our credit agreement. |
6 |
Production per share is the Company's total crude oil, NGL and natural gas production volumes for the applicable period divided by the weighted average number of diluted shares outstanding for the applicable period. Production per share growth is determined in comparison to the applicable comparative period. |
7 |
Also referred to herein as "capital payout". Refer to Oil and Gas Metrics in this press release for additional disclosure. |
8 |
Disclosure of drilling locations in this press release consists of proved, probable, and unbooked locations and their respective quantities on a gross and net basis as disclosed herein. Refer to Drilling Locations in this press release for additional disclosure. |
CONFERENCE CALL AND WEBCAST
Whitecap has scheduled a conference call and webcast to begin promptly at
The conference call dial-in number is: 1-888-510-2154 or (403) 910-0389 or (437) 900-0527
A live webcast of the conference call will be accessible on Whitecap's website at www.wcap.ca by selecting "Investors", then "Presentations & Events". Shortly after the live webcast, an archived version will be available for approximately 14 days.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company's plans and other aspects of our anticipated future operations, management focus, strategies, financial, operating and production results and business opportunities. Forward-looking information typically uses words such as "anticipate", "believe", "continue", "trend", "sustain", "project", "expect", "forecast", "budget", "goal", "guidance", "plan", "objective", "strategy", "target", "intend", "estimate", "potential", or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, including statements about our strategy, plans, focus, objectives, priorities and position.
In particular, and without limiting the generality of the foregoing, this press release contains forward-looking information with respect to: our forecasts for average daily production (including by product type and the proportional liquids production) and capital expenditures for 2024 and 2025; our expectation for net debt to be approximately
The forward-looking information is based on certain key expectations and assumptions made by our management, including: that the disposition to PGI will occur on the terms and timing anticipated by the Company; that we will continue to conduct our operations in a manner consistent with past operations except as specifically noted herein (and for greater certainty, except with respect to the proposed disposition to PGI, the forward-looking information contained herein excludes the potential impact of any acquisitions or dispositions that we may complete in the future); the general continuance or improvement in current industry conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes; expectations and assumptions concerning prevailing and forecast commodity prices, exchange rates, interest rates, inflation rates, applicable royalty rates and tax laws, including the assumptions specifically set forth herein; the ability of OPEC+ nations and other major producers of crude oil to adjust crude oil production levels and thereby manage world crude oil prices; the impact (and the duration thereof) of the ongoing military actions in the
Although we believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Whitecap can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. These include, but are not limited to: the risk that our disposition to PGI does not close on the terms and/or on the timetable currently anticipated or at all; the risk that the funds that we ultimately return to shareholders through dividends and/or share repurchases is less than currently anticipated and/or is delayed, whether due to the risks identified herein or otherwise; the risk that any of our material assumptions prove to be materially inaccurate, including our 2024 and 2025 forecasts (including for commodity prices and exchange rates); the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, including the risk that weather events such as wildfires, flooding, droughts or extreme hot or cold temperatures forces us to shut-in production or otherwise adversely affects our operations; pandemics and epidemics; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; risks associated with increasing costs, whether due to high inflation rates, high interest rates, supply chain disruptions or other factors; health, safety and environmental risks; commodity price and exchange rate fluctuations; interest rate fluctuations; inflation rate fluctuations; marketing and transportation risks; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to complete or realize the anticipated benefits of acquisitions or dispositions; the risk that going forward we may be unable to access sufficient capital from internal and external sources on acceptable terms or at all; failure to obtain required regulatory and other approvals; reliance on third parties and pipeline systems; changes in legislation, including but not limited to tax laws, production curtailment, royalties and environmental (including emissions and "greenwashing") regulations; the risk that we do not successfully defend against previously disclosed and ongoing reassessments received from the
Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).
These forward-looking statements are made as of the date of this press release and we disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about our forecast 2025 capital expenditures, including the allocation to our unconventional and conventional assets; the portion of our free cash flow that will be generated by our conventional wells in 2025; our forecast for net debt of approximately
OIL AND GAS ADVISORIES
Barrel of Oil Equivalency
"Boe" means barrel of oil equivalent. All boe conversions in this press release are derived by converting gas to oil at the ratio of six thousand cubic feet ("Mcf") of natural gas to one barrel ("Bbl") of oil. Boe may be misleading, particularly if used in isolation. A Boe conversion rate of 1 Bbl : 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio of oil compared to natural gas based on currently prevailing prices is significantly different than the energy equivalency ratio of 1 Bbl : 6 Mcf, utilizing a conversion ratio of 1 Bbl : 6 Mcf may be misleading as an indication of value.
Drilling Locations
This press release discloses drilling inventory in two categories: (i) booked locations (proved and probable); and (ii) unbooked locations. Booked locations represent the summation of proved and probable locations, which are derived from
- Of the 6,442 (5,619 net) drilling locations identified herein, 1,580 (1,374 net) are proved locations, 319 (271 net) are probable locations, and 4,543 (3,974 net) are unbooked locations.
Unbooked locations consist of drilling locations that have been identified by management as an estimation of our multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that we will drill all of these drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which we drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves, resources or production.
Production & Product Type Information
References to petroleum, crude oil, natural gas liquids ("NGLs"), natural gas and average daily production in this press release refer to the light and medium crude oil, tight crude oil, conventional natural gas, shale gas and NGLs product types, as applicable, as defined in National Instrument 51-101 ("NI 51-101"), except as noted below.
NI 51-101 includes condensate within the NGLs product type. The Company has disclosed condensate as combined with crude oil and separately from other NGLs since the price of condensate as compared to other NGLs is currently significantly higher and the Company believes that this crude oil and condensate presentation provides a more accurate description of its operations and results therefrom. Crude oil therefore refers to light oil, medium oil, tight oil and condensate. NGLs refers to ethane, propane, butane and pentane combined. Natural gas refers to conventional natural gas and shale gas combined.
The Company's average daily production for the three and nine months ended
Whitecap Corporate |
9M 2024 |
9M 2023 |
Q3 2024 |
Q3 2023 |
Light and medium oil (bbls/d) |
75,528 |
74,372 |
73,900 |
74,543 |
Tight oil (bbls/d) |
16,076 |
10,345 |
18,435 |
10,695 |
Crude oil (bbls/d) |
91,604 |
84,717 |
92,335 |
85,238 |
|
|
|
|
|
NGLs (bbls/d) |
20,228 |
16,640 |
20,578 |
17,804 |
|
|
|
|
|
Shale gas (Mcf/d) |
221,140 |
177,624 |
215,309 |
185,977 |
Conventional natural gas (Mcf/d) |
148,411 |
132,907 |
147,023 |
137,926 |
Natural gas (Mcf/d) |
369,551 |
310,531 |
362,332 |
323,903 |
|
|
|
|
|
Total (boe/d) |
173,424 |
153,112 |
173,302 |
157,026 |
Whitecap Corporate |
|
2024 Guidance |
Q3 2024 Forecast |
2025 Guidance
( |
Light and medium oil (bbls/d) |
|
75,000 |
72,000 |
73,000 |
Tight oil (bbls/d) |
|
16,000 |
16,000 |
19,000 |
Crude oil (bbls/d) |
|
91,000 |
88,000 |
92,000 |
|
|
|
|
|
NGLs (bbls/d) |
|
20,200 |
19,500 |
20,000 |
|
|
|
|
|
Shale gas (Mcf/d) |
|
220,800 |
215,000 |
241,000 |
Conventional natural gas (Mcf/d) |
|
147,000 |
145,000 |
155,000 |
Natural gas (Mcf/d) |
|
367,800 |
360,000 |
396,000 |
|
|
|
|
|
Total (boe/d) |
|
172,500 |
167,500 |
178,000 |
Oil and Gas Metrics
This press release contains metrics commonly used in the oil and natural gas industry which have been prepared by management, such as "capital payout" or "payout per well", which is the time period for the operating netback of a well to equate to the individual cost of drilling, completing and equipping the well. Management uses capital payout and payout per well as a measure of capital efficiency of a well to make capital allocation decisions. These terms do not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Management uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare our operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this press release, should not be relied upon for investment or other purposes.
SPECIFIED FINANCIAL MEASURES
This press release includes various specified financial measures, including non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as further described herein. These financial measures are not standardized financial measures under International Financial Reporting Standards ("IFRS Accounting Standards" or, alternatively, "GAAP") and, therefore, may not be comparable with the calculation of similar financial measures disclosed by other companies.
"Average realized prices" for crude oil, NGLs and natural gas are supplementary financial measures calculated by dividing each of these components of petroleum and natural gas revenues, disclosed in Note 16 "Revenue" to the Company's unaudited interim consolidated financial statements for the three and nine months ended
"Free funds flow" is a non-GAAP financial measure calculated as funds flow less expenditures on property, plant and equipment ("PP&E"). Management believes that free funds flow provides a useful measure of Whitecap's ability to increase returns to shareholders and to grow the Company's business. Free funds flow is not a standardized financial measure under IFRS Accounting Standards and, therefore, may not be comparable with the calculation of similar financial measures disclosed by other entities. The most directly comparable financial measure to free funds flow disclosed in the Company's primary financial statements is cash flow from operating activities. Refer to the "Cash Flow from Operating Activities, Funds Flow and Free Funds Flow" section of our management's discussion and analysis for the three and nine months ended
|
Three Months ended |
Nine Months ended |
||
($ millions, except per share amounts) |
2024 |
2023 |
2024 |
2023 |
Cash flow from operating activities |
556.2 |
382.8 |
1,413.7 |
1,266.3 |
Net change in non-cash working capital items |
(147.2) |
83.2 |
(194.3) |
62.8 |
Funds flow |
409.0 |
466.0 |
1,219.4 |
1,329.1 |
Expenditures on PP&E |
272.7 |
281.9 |
869.7 |
753.3 |
Free funds flow |
136.3 |
184.1 |
349.7 |
575.8 |
Funds flow per share, basic |
0.69 |
0.77 |
2.04 |
2.19 |
Funds flow per share, diluted |
0.68 |
0.76 |
2.03 |
2.18 |
"
Funds flow", "funds flow basic ($/share)" and "funds flow diluted ($/share)" are capital management measures and are key measures of operating performance as they demonstrate Whitecap's ability to generate the cash necessary to pay dividends, repay debt, make capital investments, and/or to repurchase common shares under the Company's normal course issuer bid. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds flow, funds flow basic ($/share) and funds flow diluted ($/share) provide useful measures of Whitecap's ability to generate cash that are not subject to short-term movements in non-cash operating working capital. Whitecap reports funds flow in total and on a per share basis (basic and diluted), which is calculated by dividing funds flow by the weighted average number of basic shares and weighted average number of diluted shares outstanding for the relevant period. See Note 5(e)(ii) "Capital Management – Funds Flow" in the Company's unaudited interim consolidated financial statements for the three and nine months ended September 30, 2024 for additional disclosures.
" Net Debt" is a capital management measure that management considers to be key to assessing the Company's liquidity. See Note 5(e)(i) "Capital Management – Net Debt and Total Capitalization" in the Company's unaudited interim consolidated financial statements for the three and nine months ended September 30, 2024 for additional disclosures. The following table reconciles the Company's long-term debt to net debt:
Net Debt ($ millions) |
|
|
|
|
Long-term debt |
|
1,095.6 |
1,177.1 |
1,356.1 |
Accounts receivable |
|
(355.4) |
(452.3) |
(400.2) |
Deposits and prepaid expenses |
|
(32.9) |
(44.9) |
(32.9) |
Non-current deposits |
|
(82.9) |
(65.3) |
(82.9) |
Accounts payable and accrued liabilities |
|
701.6 |
616.4 |
509.0 |
Dividends payable |
|
35.8 |
29.2 |
36.4 |
Net Debt |
|
1,361.8 |
1,260.2 |
1,385.5 |
"Operating netback" is a non-GAAP financial measure determined by adding marketing revenues and processing & other income, deducting realized losses on commodity risk management contracts or adding realized gains on commodity risk management contracts and deducting tariffs, royalties, operating expenses, transportation expenses and marketing expenses from petroleum and natural gas revenues. The most directly comparable financial measure to operating netback disclosed in the Company's primary financial statements is petroleum and natural gas sales. Operating netback is a measure used in operational and capital allocation decisions. Operating netback is not a standardized financial measure under IFRS Accounting Standards and, therefore, may not be comparable with the calculation of similar financial measures disclosed by other entities. For further information, refer to the "Operating Netbacks" section of our management's discussion and analysis for the three and nine months ended
|
Three Months ended |
Nine Months ended |
||
Operating Netbacks ($ millions) |
2024 |
2023 |
2024 |
2023 |
Petroleum and natural gas revenues |
890.9 |
955.9 |
2,739.6 |
2,637.5 |
Tariffs |
(6.8) |
(7.2) |
(20.4) |
(21.5) |
Processing & other income |
10.7 |
11.4 |
34.2 |
37.6 |
Marketing revenues |
60.4 |
72.8 |
184.0 |
205.3 |
Petroleum and natural gas sales |
955.2 |
1,032.9 |
2,937.4 |
2,858.9 |
Realized gain on commodity contracts |
14.9 |
0.6 |
25.0 |
21.6 |
Royalties |
(143.6) |
(166.6) |
(452.0) |
(455.5) |
Operating expenses |
(213.4) |
(201.8) |
(651.4) |
(599.9) |
Transportation expenses |
(33.5) |
(32.1) |
(99.5) |
(91.7) |
Marketing expenses |
(59.9) |
(72.1) |
(182.3) |
(204.3) |
Operating netbacks |
519.7 |
560.9 |
1,577.2 |
1,529.1 |
"Operating netback ($/boe)" is a non-GAAP ratio calculated by dividing operating netbacks by the total production for the period. Operating netback is a non-GAAP financial measure component of operating netback per boe. Operating netback per boe is not a standardized financial measure under IFRS Accounting Standards and, therefore may not be comparable with the calculation of similar financial measures disclosed by other entities. Presenting operating netback on a per boe basis allows management to better analyze performance against prior periods on a comparable basis.
"Per boe" or "($/boe)" disclosures for petroleum and natural gas sales, royalties, operating expenses, transportation expenses and marketing expenses are supplementary financial measures that are calculated by dividing each of these respective GAAP measures by the Company's total production volumes for the period.
"Petroleum and natural gas revenues ($/boe)", "Tariffs ($/boe)", "Processing and other income ($/boe)" and "Marketing revenues ($/boe)" are supplementary financial measures calculated by dividing each of these components of petroleum and natural gas sales, disclosed in Note 16 "Revenue" to the Company's unaudited interim consolidated financial statements for the three and nine months ended
"Realized gain on commodity contracts ($/boe)" is a supplementary financial measure calculated by dividing realized gain on commodity contracts, disclosed in Note 5(d) "Financial Instruments and Risk Management – Market Risk" to the Company's unaudited interim consolidated financial statements for the three and nine months ended
Per Share Amounts
Per share amounts noted in this press release are based on fully diluted shares outstanding unless noted otherwise.
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