ShaMaran Petroleum (SNM) Q3 2024 earnings summary

Executive summary

• Closed Atrush Acquisition on August 6, 2024, increasing working interest in Atrush Block from 27.6% to 50% and securing a bargain purchase gain of $70.3 million.

• Q3 2024 revenue rose 133% year-over-year to $29.4 million, driven by higher local oil sales and increased Atrush interest.

• Net income for Q3 2024 was $75.1 million, primarily due to the Atrush Acquisition gain.

• Combined gross daily oil production in Q3 2024 was 59,300 bopd, up 114% from Q3 2023.

• Cash at September 30, 2024, was $46.8 million, with net debt at $170.9 million.

Financial highlights

• Q3 2024 gross margin on oil sales was $10 million, a 525% increase year-over-year.

• EBITDAX for Q3 2024 reached $21.5 million, up from $5.8 million in Q3 2023.

• Free cash flow before debt service in Q3 2024 was $21.6 million, more than double Q3 2023.

• Average net oil price in Q3 2024 was $35.65/bbl, 10% lower year-over-year due to local market sales.

• Lifting costs in Q3 2024 were $6.3 million, up 31% due to higher production and increased Atrush interest.

Outlook and guidance

• Sarsang expected to deliver higher production in Q4 2024 due to ongoing drilling and improved facility uptime.

• Local sales from both blocks are expected to continue until Iraq-Türkiye pipeline (ITP) exports resume.