CALGARY, AB, Aug. 21, 2024 /CNW/ - Logan Energy Corp. (TSXV: LGN) ("Logan" or the "Company") announces its financial and operating results for the three and six months ended June 30, 2024, an increase to the borrowing base available under the Company's credit facility to $75.0 million, and enhancements to the executive management team.
Selected financial and operational information set out below should be read in conjunction with the Company's unaudited interim financial statements and related management's discussion and analysis ("MD&A") as at and for the three and six months ended June 30, 2024 and 2023. These documents are filed on SEDAR+ at www.sedarplus.ca and are available on the Company's website at www.loganenergycorp.com. The highlights reported throughout this press release include certain non-GAAP measures and ratios which have been identified using capital letters and are defined herein. The reader is cautioned that these measures may not be directly comparable to other issuers; refer to additional information under the heading "Reader Advisories – Non-GAAP Measures and Ratios".
SECOND QUARTER 2024 HIGHLIGHTS
Logan spent $46.1 million in the second quarter to advance development in its core operating areas.
At Pouce Coupe, Logan completed and brought on production a three well pad in mid-May.
At Simonette, Logan completed its first well at Lator and commenced completion operations on a three well pad located on its southern acreage.
Production averaged 7,277 BOE per day (36% liquids), an increase of 45% from 5,015 BOE per day (22% liquids) in the same quarter of the previous year.
A major turnaround was completed at the Simonette 13-11 Gas Plant as planned in June. Budgeted downtime reduced average production for the second quarter by approximately 360 BOE per day. Certain debottlenecking projects were also completed during the outage.
Logan is on track to deliver H2 2024 average production in excess of 10,000 BOE per day and to meet or exceed its annual production guidance of approximately 8,700 BOE per day1.
The Company's Operating Netback averaged $15.75 per BOE before hedging ($15.38 per BOE after hedging) for the second quarter of 2024 and was impacted by weak natural gas prices and higher per unit operating expenses due to plant turnaround costs and other maintenance operations.
Logan expects to realize a material reduction in its per unit operating costs as it scales production and is forecasting H2 2024 operating costs to average between $10.00 to $10.50 per BOE, and for calendar year average operating costs to be in-line with guidance1.
Driven by oil production growth and strong crude oil prices, Logan's Adjusted Funds Flow increased by 178% to $8.7 million for the three months ended June 30, 2024, compared to $3.1 million in the same period of 2023.
As of June 30, 2024, Logan had Net Debt of $21.4 million or 0.6 times its annualized Adjusted Funds Flow for the second quarter. Subsequent to the quarter, the Company's lender increased the authorized borrowing amount available under its credit facility from $50.0 million to $75.0 million (refer to "Subsequent Events").
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1 Refer to guidance published in the Company's press release dated May 22, 2024.
The following table summarizes selected highlights for the three and six month periods ended June 30, 2024 and June 30, 2023:
Three months ended June 30
Six months ended June 30
(CA$ thousands, except as otherwise noted)
2024
2023
%
2024
2023
%
FINANCIAL HIGHLIGHTS
Oil and gas sales
26,544
13,701
94
50,974
32,717
56
Net income (loss) and comprehensive income (loss)
416
(3,856)
(111)
(1,575)
(34,482)
(95)
$ per common share, basic and diluted
0.00
(0.02)
(100)
(0.00)
(0.20)
(100)
Cash provided by operating activities
3,394
2,897
17
20,194
11,604
74
Adjusted Funds Flow (1)
8,744
3,142
178
18,589
8,797
111
$ per common share, basic and diluted (1)
0.02
0.02
-
0.04
0.05
(20)
Capital Expenditures before A&D (1)
46,104
5,378
757
81,286
6,302
nm
Acquisitions
-
100
(100)
300
100
200
Total assets
248,390
94,913
162
248,390
94,913
162
Net Debt (1)
21,364
5,227
309
21,364
5,227
309
Shareholders' equity
175,122
56,791
208
175,122
56,791
208
Common shares outstanding (000s), end of period (2)
465,537
173,201
169
465,537
173,201
169
OPERATING HIGHLIGHTS AND NETBACKS (5)
Average daily production
Crude oil (bbls/d)
2,148
660
225
1,965
706
178
Condensate (bbls/d) (3)
223
271
(18)
244
277
(12)
Natural gas liquids (bbls/d) (3)
250
185
35
270
191
41
Natural gas (mcf/d)
27,934
23,396
19
28,006
23,871
17
BOE/d
7,277
5,015
45
7,147
5,153
39
% Liquids (4)
36 %
22 %
64
