HEADWATER EXPLORATION INC. ANNOUNCES THIRD QUARTER OPERATING AND FINANCIAL RESULTS, DECLARATION OF QUARTERLY DIVIDEND AND UPDATE TO 2024 GUIDANCE

CALGARY, AB, Nov. 7, 2024 /CNW/ - Headwater Exploration Inc. (the "Company" or "Headwater") (TSX:HWX) is pleased to announce its operating and financial results for the three and nine months ended September 30, 2024, declaration of quarterly dividend and update to 2024 guidance.  Selected financial and operational information is outlined below and should be read in conjunction with the unaudited condensed interim financial statements and the related management's discussion and analysis ("MD&A").  These filings will be available at www.sedarplus.ca and the Company's website at www.headwaterexp.com.

 Financial and Operating Highlights

Three months ended

September 30,

Percent Change

Nine months ended

September 30,

Percent Change

2024

2023

2024

2023

Financial (thousands of dollars except share data)

Sales, net of blending (1) (4)

151,740

144,003

5

436,163

351,133

24

Adjusted funds flow from operations (2)

84,185

80,887

4

248,654

206,279

21

     Per share - basic (3)

0.35

0.34

3

1.05

0.88

19

                     - diluted (3)

0.35

0.34

3

1.04

0.87

20

Cash flows provided by operating activities 

95,272

85,568

11

240,721

212,626

13

     Per share - basic

0.40

0.36

11

1.02

0.90

13

                     - diluted

0.40

0.36

11

1.01

0.90

12

Net income

47,634

49,677

(4)

139,121

110,603

26

     Per share - basic

0.20

0.21

(5)

0.59

0.47

26

                     - diluted

0.20

0.21

(5)

0.58

0.47

23

Capital expenditures (1)

58,196

70,208

(17)

174,180

203,796

(15)

Adjusted working capital (2)

64,411

35,921

79

Shareholders' equity

684,486

587,380

17

Dividends declared

23,767

23,638

1

71,261

70,763

1

     Per share

0.10

0.10

-

0.30

0.30

-

Weighted average shares (thousands) 

     Basic

237,484

236,191

1

236,285

235,305

-

     Diluted

239,735

239,167

-

238,427

237,683

-

Shares outstanding, end of period (thousands)

     Basic

237,665

236,384

1

     Diluted (5)

241,115

241,175

-

Operating (6:1 boe conversion)

Average daily production

  Heavy crude oil (bbls/d)

19,718

16,902

17

18,689

15,775

18

  Natural gas (mmcf/d)

3.4

6.1

(44)

6.8

9.1

(25)

  Natural gas liquids (bbl/d)

64

103

(38)

72

100

(28)

  Barrels of oil equivalent (9) (boe/d)

20,342

18,027

13

19,890

17,398

14

Average daily sales (6) (boe/d)

20,329

17,862

14

19,850

17,331

15

Netbacks ($/boe) (3) (7)

  Operating

     Sales, net of blending (4)

81.13

87.63

(7)

80.19

74.22

8

     Royalties

(15.74)

(16.26)

(3)

(14.88)

(13.06)

14

     Transportation

(5.90)

(5.32)

11

(5.60)

(5.43)

3

     Production expenses

(7.46)

(7.43)

-

(7.25)

(7.11)

2

Operating netback (3)

52.03

58.62

(11)

52.46

48.62

8

     Realized gains on financial derivatives 

0.18

0.18

-

1.04

1.66

(37)

Operating netback, including financial derivatives (3)