Logan Energy (LGN) Q3 2024 earnings summary

Executive summary

• Q2 2024 saw significant operational progress, including the completion and production start of new wells at Pouce Coupe and Simonette, and a major turnaround at the Simonette gas plant.

• Production averaged 7,277 BOE/d (36% liquids), up 45% year-over-year, despite planned downtime.

• Adjusted Funds Flow rose 178% to $8.7 million, driven by oil production growth and strong crude prices.

• Net income was $416,000, reversing a loss of $3.9 million in Q2 2023.

• Credit facility borrowing base increased to $75 million post-quarter, supporting future growth.

Financial highlights

• Oil and gas sales nearly doubled to $26.5 million, a 94% increase year-over-year.

• Adjusted Funds Flow per share remained flat at $0.02, while capital expenditures surged to $46.1 million.

• Net Debt stood at $21.4 million, with total assets rising 162% to $248.4 million.

• Operating Netback before hedging improved 57% to $15.75/BOE.

Outlook and guidance

• H2 2024 average production is expected to exceed 10,000 BOE/d, with annual guidance of ~8,700 BOE/d reaffirmed.

• Operating costs are forecast to decline to $10.00–$10.50/BOE in H2 2024, aligning with annual guidance.

• New commodity hedges for 2025 fix WTI at CA$102.05/bbl for 500 bbl/d, with additional call options sold.