CALGARY, Aug. 22, 2019 /CNW/ - Clearview Resources Ltd. ("Clearview" or the "Company") is pleased to announce its financial and operational results for the three and six months ended June 30, 2019.
HIGHLIGHTS
FINANCIAL and OPERATIONAL RESULTS
For the three months ended June 30, 2019, Clearview's results included the assets, acquired earlier in the year, for the full quarter. The production from the assets averaged approximately 230 boe/d, including oil production averaging approximately 90 bbl/d. Production for the second quarter of 2019 was up 15% versus the comparative quarter despite several unscheduled turnarounds by operators of midstream facilities utilized by Clearview. Production of oil increased 56% in the second quarter to 709 bbl/d versus the comparative quarter of 2018.
With the growth in production, the realized sales price per boe increased by 2% in the second quarter of 2019 as greater oil production offset lower realized prices and production efficiencies reduced operating costs by 2% in the second quarter of 2019. Other components of Clearview's operating netback negatively offset these gains resulting in the Company's operating netback being relatively unchanged from the comparative quarter of 2018. A significant positive change in realized gains on commodity contracts resulted in the Company's corporate netback increasing by 89% to $5.98 per boe in the second quarter of 2019 from $3.17 per boe in the comparative period of 2018.
Adjusted funds flow for the second quarter of 2019 was $1.3 million. Capital expenditures were $0.8 million which enabled the Company to reduce its net debt by $0.5 million in the second quarter. At June 30, 2019, the Company had net debt of $16.3 million with a net debt to annualized six-month adjusted funds flow ratio of 2.4:1.
Subsequent to the end of the quarter, the Company's lender completed its annual credit facility review and established a limit of $18.5 million. Documentation of this revised facility is expected to be completed over the next several weeks.
Financial and Operating Highlights
Financial | Three months ended June 30 | Six months ended June 30 | |||||
($ 000's except per share amounts) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |
Oil and natural gas sales | 6,318 | 5,391 | 17 | 13,818 | 11,185 | 29 | |
Net earnings (loss) | (658) | (1,749) | (62) | (1,112) | (5,628) | (80) | |
Per share?basic and diluted | (0.06) | (0.18) | (67) | (0.10) | (0.62) | (84) | |
Adjusted funds flow (1) | 1,280 | 592 | 116 | 3,344 | 1,021 | 228 | |
Per share?basic and diluted | 0.11 | 0.06 | 83 | 0.30 | 0.11 | 173 | |
Cash flow from operations | 847 | 277 | 206 | 2,438 | 2,209 | 10 | |
Per share?basic and diluted | 0.07 | 0.03 | 133 | 0.22 | 0.24 | (8) | |
Capital expenditures ? net | 772 | (2,992) | - | 1,485 | 928 | 60 | |
Weighted average shares | |||||||
Basic and diluted (000's) | 11,667 | 9,724 | 20 | 11,269 | 9,084 | 24 | |
(1) | See non-GAAP measures | ||||||
Production | Three months ended June 30 | Six months ended June 30 | |||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||
Oil ? bbl/d | 709 | 455 | 56 | 738 | 476 | 55 | |
Natural gas liquids ? bbl/d | 452 | 462 | (2) | 462 | 456 | 1 | |
Total liquids ? bbl/d | 1,161 | 917 | 27 | 1,200 | 932 | 29 | |
Natural gas ? mcf/d | 7,153 | 6,764 | 6 | 7,398 | 6,969 | 6 | |
Total ? boe/d | 2,353 | 2,044 | 15 | 2,434 | 2,094 | 16 | |
Realized sales prices | Three months ended June 30 | Six months ended June 30 | |||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||
Oil ? $/bbl | 69.12 | 73.71 | (6) | 65.69 | 68.50 | (4) | |
NGLs ? $/bbl | 26.19 | 37.12 | (29) | 29.58 | 37.86 | (22) | |
Natural gas ? $/mcf | 1.20 | 1.27 | (6) | 1.92 | 1.71 | 12 | |
Total ? $/boe | 29.51 | 28.99 | 2 | 31.37 | 29.52 | 6 | |
Netback analysis | Three months ended June 30 | Six months ended June 30 | |||||
Barrel of oil equivalent ($/boe) | 2019 | 2018 | % Positive | 2019 | 2018 | % Positive | |
Realized sales price | 29.51 | 28.99 | 2 | 31.37 | 29.52 | 6 | |
Royalties | (3.76) | (3.47) | (8) | (3.63) | (3.79) | 4 | |
Processing income | 0.74 | 0.87 | (15) | 0.73 | 1.06 | (31) | |
Transportation | (1.83) | (1.43) | (28) | (1.74) | (1.52) | (14) | |
Operating | (14.46) | (14.80) | 2 | (14.52) | (15.06) | 4 | |
Operating netback | 10.20 | 10.16 | - | 12.21 | 10.21 | 20 | |
Realized gain (loss) on | 0.52 | (2.97) | 118 | (0.16) | (2.27) | 93 | |
General & administrative | (3.26) | (2.76) | (18) | (2.81) | (3.73) | 25 | |
Transaction costs | (0.12) | (0.09) | (33) | (0.25) | (0.30) | 17 | |
Cash finance costs | (1.36) | (1.17) | (16) | (1.40) | (1.22) | (15) | |
Corporate netback | 5.98 | 3.17 | 89 | 7.59 | 2.69 | 182 |
(1) | % Positive (Negative) is expressed as being positive (better performance in the category) or negative (reduced |
(2) | See non-GAAP measures. |
OPERATIONS UPDATE
Clearview's production operations were restricted for the three months ended June 30, 2019 by unusually wet weather in west central Alberta resulting in poor surface access conditions. Regular repairs and maintenance of some of the Company's wells and facilities were deferred to the third quarter when dryer surface conditions are anticipated.
Clearview did conduct a significant facility turnaround at its 100% working interest Windfall oil battery. The Company's production was also impacted by unscheduled and scheduled third party facility turnarounds at its Garrington, Wilson Creek and Niton properties.
Clearview fulfilled its annual Area Based Closure ("ABC") obligation with the Alberta Energy Regulator ("AER") for 2019 by fully abandoning certain suspended pipelines. The total cost of these abandonments was approximately $150 thousand.
OUTLOOK
The Company has a risk management program in place to mitigate volatility of commodity prices received for its production. The Company will continue to monitor further opportunities to hedge the prices received for its production.
The light oil differential, which negatively impacted the Company's realized price for oil and NGLs significantly in the fourth quarter of 2018, has narrowed to more historic levels since then and continues to be supportive of reasonable Canadian light oil prices. Realized propane and butane prices continue to be under significant pressure in 2019 due to an over supply in the Canadian market.
Clearview's June 30, 2019 unaudited condensed interim financial statements and management's discussion and analysis are available on the Company's website at www.clearviewres.com and SEDAR at www.SEDAR.com.
On behalf of the Board of Directors and all the employees of Clearview, we would like to thank our shareholders for their continued support.
FOR FURTHER INFORMATION PLEASE CONTACT:
CLEARVIEW RESOURCES LTD. | |
2400 - 635 ? 8th Avenue S.W. Calgary, Alberta T2P 3M3 | |
Telephone: (403) 265-3503 | Facsimile: (403) 265-3506 |
Email: [email protected] | Website: www.clearviewres.com |
TONY ANGELIDIS | BRIAN KOHLHAMMER |
President & CEO | V.P. Finance & CFO |
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, industry conditions, commodity prices and business opportunities. Specifically, this press release has forward looking information with respect to: future drilling plans; waterflood recovery and overall growth strategy. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. Statements relating to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.
The forward-looking information is based on certain key expectations and assumptions made by our management, including expectations and assumptions concerning prevailing commodity prices and differentials, exchange rates, interest rates as set out in the appendices to this press release, also applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition and the ability to market oil and natural gas successfully and our ability to access capital. Although Clearview believes 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 Clearview can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. Our actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that we will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide securityholders with a more complete perspective on our future operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive. 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.
Non-GAAP Measures and Oil and Gas Metrics
The Company's management uses and reports certain measures not prescribed by International Financial Reporting Standards ("IFRS") (referred to as "non-GAAP measures") in the evaluation of operating and financial performance.
SOURCE Clearview Resources Ltd.
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