Lucero Energy (LOU) Q3 2024 earnings summary

Executive summary

• Generated $11.2 million of free funds flow in Q3 2024, reversing negative free funds flow from Q2 2024.

• Maintained strong liquidity with $55.6 million working capital at September 30, 2024.

• Returned $7.3 million to shareholders year-to-date by repurchasing and cancelling 11.6 million shares.

• Q3 production averaged 9,311 Boe/d, with four new wells contributing to output.

Financial highlights

• Q3 2024 funds flow was $20.7 million ($0.03/share basic), down from $32.9 million ($0.05/share) in Q3 2023.

• Adjusted EBITDA for Q3 2024 was $19.98 million, compared to $32.29 million in Q3 2023.

• Net income for Q3 2024 was $4.66 million ($0.01/share basic), down from $13.32 million ($0.02/share) in Q3 2023.

• Cash provided by operating activities in Q3 2024 was $22.43 million, compared to $26.40 million in Q3 2023.

• Exploration and development expenditures were $9.47 million in Q3 2024, down from $16.07 million in Q3 2023.

Outlook and guidance

• 2024 annual average production guidance maintained at 9,700 Boe/d, with Q4 exit rate of 10,300 Boe/d.

• 2024 exploration and development expenditures expected at US$65 million (~C$90 million).

• Anticipates robust free funds flow in Q4 2024 due to minimal capital expenditures.

• Production mix for 2024 guided at 50% tight oil, 25% NGL, 25% shale gas.

• Corporate production decline rate estimated at 33%.