Arrow Exploration (AXL) Q2 2024 earnings summary

Executive summary

• Achieved material growth in production, revenue, and earnings in Q2 2024 compared to Q2 2023, driven by successful horizontal well program at Carrizales Norte.

• Current net corporate production is approximately 5,000 BOE/D, with strong performance from new horizontal wells.

• Maintained a healthy balance sheet with $10.8 million in cash at quarter-end and no debt.

Financial highlights

• Q2 2024 total oil and natural gas revenue, net of royalties, was $15.1 million, up 47% year-over-year (Q2 2023: $10.3 million).

• Net income of $1.2 million in Q2 2024, compared to a loss of $0.8 million in Q2 2023.

• Adjusted EBITDA of $8.9 million, a 53% increase from Q2 2023 ($5.8 million).

• Generated H1 2024 operating cashflows of $15.7 million, more than double H1 2023 ($7.4 million).

• Recognized a $1.5 million impairment in Canadian oil & gas properties due to low natural gas prices.

Outlook and guidance

• 2024 capital program remains focused on Carrizales Norte, with plans for two more horizontal wells and a low-risk exploration well at Chorreron.

• The remainder of the 2024 capital program will be self-funded by cash flow and reserves.

• Additional horizontal wells planned for 2025, with further exploration and development drilling across multiple prospects.