Arrow Exploration (AXL) Q4 2024 earnings summary

Executive summary

• Achieved 65% year-over-year growth in total oil and gas revenue to $73.7 million, with net income of $13.2 million versus a net loss in 2023.

• Adjusted EBITDA rose 78% to $48 million; Q4 2024 EBITDA was $13.3 million, up from $7.1 million in Q4 2023.

• Annual average production increased 63% to 3,542 boe/d; Q4 2024 production more than doubled year-over-year to 4,738 boe/d.

• Ended 2024 with $18 million in cash and a strong balance sheet supporting a $51 million fully funded 2025 work program.

Financial highlights

• Funds flow from operations reached $35.6 million for 2024, up from $19.9 million in 2023; Q4 2024 funds flow was $12.5 million versus $3.8 million in Q4 2023.

• Capital expenditures totaled $31.1 million in 2024, primarily for drilling 13 wells in the Tapir Block.

• Adjusted working capital at year-end was $11.6 million, up from $8.7 million in 2023.

Outlook and guidance

• 2025 work program targets up to 23 wells, mainly in the Tapir block, with a $51 million budget.

• Plans include first horizontal wells in Alberta Llanos and new prospects in Mateguafa Attic.

• Production ramp-up in early 2025 with new wells drilled and additional rigs mobilized.