Alvopetro Announces Q3 2024 Results and an Operational Update
CALGARY, AB, Nov. 6, 2024 /CNW/ - Alvopetro Energy Ltd. (TSXV:ALV) (OTCQX:ALVOF) ("Alvopetro" or the "Company") announces October 2024 sales volumes, an operational update and financial results for the three and nine months ended September 30, 2024. We will host a live webcast to discuss Q3 2024 results on Thursday, November 7, 2024 at 8:00 am Mountain time.
All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
October Sales Volumes
October sales volumes averaged 1,912 boepd, including natural gas sales of 10.7 MMcfpd, associated natural gas liquids sales from condensate of 108 bopd and oil sales of 14 bopd, based on field estimates.
Natural gas, NGLs and crude oil sales:
October
2024
September
2024
Q3 2024
Natural gas (Mcfpd), by field:
Caburé
8,977
10,025
11,378
Murucututu
1,767
1,176
616
Total natural gas (Mcfpd)
10,744
11,201
11,994
NGLs (bopd)
108
87
95
Oil (bopd)
14
9
12
Total (boepd)
1,912
1,963
2,106
Operational Update
On our Murucututu field, we finished the recompletion of our 183-A3 well in the third quarter. The well came on production during September and with this well on production through much of October, our natural gas sales from the Murucututu field increased 187% compared to Q3 2024. We are continuing to monitor production results from the well and we expect to drill a follow-up location up-dip from the 183-A3 well from a prebuilt well pad starting later this year.
In the fourth quarter we are planning an optimization project on our 183-B1 well which was originally drilled and tested in 2022.
Financial and Operating Highlights, Third Quarter of 2024
Our average daily sales increased to 2,106 boepd in Q3 2024 (+24% from Q3 2023 and +29% from Q2 2024) with increased natural gas demand.
Our average realized natural gas price decreased to $10.92/Mcf (-16% from Q3 2023) in Q3 2024, due mainly to the devaluation of the BRL relative to the USD, which depreciated 14% compared to Q3 2023. Our overall averaged realized sales was $66.46 per boe.
With higher overall sales volumes, our natural gas, condensate and oil revenue increased to $12.9 million, an increase of $0.6 million from Q3 2023 and $2.2 million from Q2 2024.
Our operating netback(2) in the quarter was $59.19 per boe (-$11.15 per boe from Q3 2023) due mainly to the reduction in our realized sales price per boe.
We generated funds flows from operations(2) of $9.9 million ($0.27 per basic share and $0.26 per diluted share), an increase of $0.3 million compared to Q3 2023 and $2.0 million compared to Q2 2024 due mainly to higher sales volumes, partially offset by lower realized prices.
We reported net income of $7.2 million in Q3 2024, an increase of $1.3 million compared to Q3 2023 and $4.8 million compared to Q2 2024 due mainly to higher sales volumes and foreign exchange gains in Brazil on U.S. dollar denominated intercompany balances and lease liabilities.
Capital expenditures totaled $4.7 million, including costs to recomplete both the 183-A3 and the 183(1) wells on our Murucututu field and costs associated with the facilities upgrade at our Caburé field.
Our working capital surplus was $15.8 million as of September 30, 2024, increasing $2.7 million from December 31, 2023 and $1.2 million from June 30, 2024.
The following table provides a summary of Alvopetro's financial and operating results for the periods noted. The consolidated financial statements with the Management's Discussion and Analysis ("MD&A") are available on our website at www.alvopetro.com and will be available on the SEDAR+ website at www.sedarplus.ca.
As at and Three Months Ended
September 30
As at and Nine Months Ended
September 30,
2024
2023
Change (%)
2024
2023
Change (%)
Financial
($000s, except where noted)
Natural gas, oil and condensate sales
12,879
12,313
5
35,303
44,387
(20)
Net income
7,152
5,819
23
14,052
27,873
(50)
Per share, basic ($)(1)
0.19
0.16
19
0.38
0.75
(49)
Per share, diluted ($)(1)
0.19
0.15
27
0.37
0.74
(50)
Cash flows from operating activities
10,714
12,469
(14)
27,787
39,798
(30)
Per share, basic ($)(1)
0.29
0.34
(15)
0.75
1.07
(30)
Per share, diluted ($)(1)
0.28
0.33
(15)
0.74
1.05
(30)
Funds flow from operations(2)
9,886
9,618
3
26,309
35,637
(26)
Per share, basic ($)(1)
0.27
0.26
4
0.71
0.96
(26)
Per share, diluted ($)(1)
0.26
0.25
4
0.70
0.94
(26)
Dividends declared
3,295
5,122
(36)
9,887
15,335
(36)
Per share(1) (2)
0.09
0.14
(36)
0.27
0.42
(36)
Capital expenditures
4,747
10,703
(56)
10,623
22,515
(53)
Cash and cash equivalents
24,515
22,779
8
24,515
22,779
8
Net working capital(2)
15,848
11,392
39
15,848
11,392
39
Weighted average shares outstanding
Basic (000s)(1)
