Journey Energy (JOY) Q2 2024 earnings summary

Executive summary

• Adjusted Funds Flow for Q2 2024 was $9.5M, down 16% year-over-year, mainly due to a 9% drop in sales volumes; net loss was $2.3M or $0.04 per share.

• Capital spending in Q2 2024 was $4.1M, with $1.3M on power assets and $1.9M on facilities and polymer costs; $1.3M was spent on abandonment and reclamation.

• Net debt decreased 10% to $55.5M at June 30, 2024, aided by $3.0M in term debt repayments.

• Sales volumes averaged 11,235 boe/d (54% crude oil & NGLs), down 9% year-over-year and 6% sequentially, due to natural declines and turnarounds.

Financial highlights

• Q2 2024 petroleum and natural gas sales were $50.5M, down 6% year-over-year; crude oil revenue comprised 86% of total revenue.

• Adjusted Funds Flow per share was $0.15 basic and $0.14 diluted, down from $0.19 and $0.17 in Q2 2023.

• Cash flow from operating activities was $8.3M, down 33% year-over-year.

• Net operating expenses were $23.4M ($22.91/boe), down 11% year-over-year despite $5.2M in non-recurring turnaround/workover costs.

• Operating netback rose 10% to $14.99/boe; Adjusted Funds Flow netback fell 7% to $9.30/boe.

Outlook and guidance

• 2024 guidance revised: annual average sales volumes 11,200–11,500 boe/d (56% crude oil & NGLs), Adjusted Funds Flow $60–62M, capital spending $48M, year-end net debt $46–48M.

• Capital focus for remainder of 2024 is on power generation and the Duvernay JV with Spartan Delta.