Yangarra Resources Ltd. (“Yangarra” or the “Company“) announces its financial and operating results for the three and nine months ended September 30, 2024.
Operations Update
Yangarra started up the drilling program in late July after a period of reduced activity in the second quarter and expects a very active fourth quarter for bringing on new wells. Despite the reduced annual activity levels, the Company will maintain relatively flat production for the year, excluding the third quarter, which was impacted by a longer than expected turnaround at a key third-party facility.
With the current planned program, Yangarra is on track for $55 – $60 million of capital spending for 2024, a reduction from the original capital budget of $70 million.
The major turnaround at a third-party facility was expected to curtail 80% of Yangarra’s production for up to two weeks but ended up being four weeks. Yangarra mitigated some of this down-time by flowing select wells through another third-party shallow-cut facility. This allowed the Company to maximize oil revenues while keeping higher natural gas weighted wells shut-in as AECO averaged only $0.45/GJ for September. All the shut-in production was brought back online in early October with the base production recovering to over 11,000 boe/d.
Currently, between the wells drilled in the third quarter and new wells planned, the Company expects to bring onstream up to eight wells during the fourth quarter. As a follow-up to the successful first half Belly River program, Yangarra elected to drill two additional Belly River wells. The Company also elected to drill and complete a liquids-rich Glauconite well on existing lands that will be tied into existing infrastructure.
Third Quarter Highlights
Funds flow from operations of $13.7 million ($0.13 per share – fully diluted), a decrease of 53% from the same period in 2023
Oil and gas sales were $26.3 million, a decrease of 42% from the same period in 2023
Adjusted EBITDA was $15.8 million ($0.15 per share – fully diluted)
Net income of $4.0 million ($0.04 per share – fully diluted, $5.1 million before tax), a decrease of 65% from the same period in 2023
Average production of 9,257 boe/d (37% liquids) during the quarter, a 24% decrease from the same period in 2023
Operating costs were $8.59/boe (including $1.61/boe of transportation costs)
Field operating netbacks were $20.27/boe
Operating netbacks, which include the impact of commodity contracts, were $20.62/boe
Operating margins were 67% and funds flow from operations margins were 52%
G&A costs of $1.03/boe
Royalties were 6% of oil and gas revenue
All in cash costs were $14.66/boe
Capital expenditures were $15.7million
Adjusted net debt was $99.0 million
Adjusted net debt to third quarter annualized funds flow from operations was 1.8 : 1
Retained earnings of $334.1 million
Decommissioning liabilities of $16.6 million (discounted)
