Strathcona Resources (SCR) Q3 2024 earnings summary

Executive summary

• Q3 2024 production averaged 178,235 boe/d, with 72% oil and condensate and 79% liquids, reflecting a modest sequential decrease due to scheduled turnarounds and gas curtailments.

• Operating earnings reached $265.4 million ($1.24/share), and free cash flow was $200.6 million ($0.94/share) for the quarter.

• Quarterly dividend of $0.25/share declared, payable December 31, 2024.

Financial highlights

• Oil and natural gas sales, net of blending and other income, were $1,041.3 million in Q3 2024, down from $1,063.0 million in Q3 2023.

• Net income for Q3 2024 was $188.0 million, compared to a loss of $41.1 million in Q3 2023.

• Funds from operations totaled $528.7 million, with capital expenditures of $319.6 million and free cash flow of $200.6 million.

• Debt at quarter-end was $2,449.9 million.

Outlook and guidance

• Q4 2024 production expected to average 185–190 Mboe/d; full-year 2024 production guidance at ~183 Mboe/d.

• 2025 capital budget set at $1.35 billion, with production guidance of 185–195 Mboe/d (72% oil, 78% liquids), targeting ~4% year-over-year growth.

• 2025 free cash flow projected at ~$700 million at US$70 WTI, with 100% allocated to shareholder returns and M&A.