General Announcement::Canacol Energy Ltd. Reports a 12% Increase in Netback

Issuer & Securities

Issuer/ Manager
CANACOL ENERGY LTD.
Securities
CANACOLENE US$500M5.75%281124A - US134808AD63 - PNTB
CANACOLENE US$500M5.75%281124R - USU13518AC64 - YW0B
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
12-May-2023 06:06:23
Status
New
Announcement Sub Title
Canacol Energy Ltd. Reports a 12% Increase in Netback
Announcement Reference
SG230512OTHRX2ZR
Submitted By (Co./ Ind. Name)
Canacol Energy
Designation
Canacol Energy
Description (Please provide a detailed description of the event in the box below)
Canacol Energy Ltd. Reports a 12% Increase in Netback and an Adjusted EBITDAX of $61 million in Q1 2023

CALGARY, ALBERTA - (May 11, 2023) - Canacol Energy Ltd. ( Canacol or the Corporation ) (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to report its financial and operating results for the three months ended March 31, 2023. Dollar amounts are expressed in United States dollars, with the exception of Canadian dollar unit prices ( C$ ) where indicated and otherwise noted.

Highlights for the three months ended March 31, 2023

Adjusted EBITDAX increased 23% to $60.9 million for the three months ended March 31, 2023, compared to $49.6 million for the same period in 2022.

The Corporation s natural gas and LNG operating netback increased 12% to $4.01 per Mcf for the three months ended March 31, 2023, compared to $3.58 per Mcf for the same period in 2022. The increase is mainly due to an increase in average sales prices, net of transportation expenses and a decrease in operating expenses, partially offset by an increase in royalties.

Realized contractual natural gas sales volume increased 2% to 185.6 MMcfpd for the three months ended March 31, 2023, compared to 181.8 MMcfpd for the same period in 2022. The increase is mainly due to gas sales to Tesorito, partially offset by a decrease in interruptible sales.

Total revenues, net of royalties and transportation expenses for the three months ended March 31, 2023 increased 12% to $73.9 million, compared to $65.9 million for same period in 2022, mainly due to higher natural gas and LNG sales volume as well as higher average sales price, net of transportation expenses.

Adjusted funds from operations decreased 3% to $32.7 million for the three months ended March 31, 2023, compared to $33.8 million for the same period in 2022, mainly due to an increase in current income tax expense, offset by an increase in total revenue, net of royalties and transportation expenses, and a decrease in operating expenses.

The Corporation realized a net income of $16.9 for the three months ended March 31, 2023, compared to a net income of $24.4 million for the same period in 2022.

Net cash capital expenditures for the three months ended March 31, 2023 were $47.1 million.

As at March 31, 2023, the Corporation had $72.1 million in cash and cash equivalents and $22.7 million in working capital deficit.

Attachments

Canacol Energy Ltd Reports a 12 percent Increase in Netback.pdf
Canacol Energy Financial Statements March 2023.pdf
Canacol Energy MDA Mar 2023.pdf
Total size =941K