General Announcement::Canacol Energy Ltd. Reports a 7% Increase in Netback of US$3.73 per Mcf

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
11-Nov-2022 05:57:06
Status
New
Announcement Sub Title
Canacol Energy Ltd. Reports a 7% Increase in Netback of US$3.73 per Mcf
Announcement Reference
SG221111OTHRH54W
Submitted By (Co./ Ind. Name)
Canacol Energy Ltd
Designation
SGX-SE
Description (Please provide a detailed description of the event in the box below)
Canacol Energy Ltd. Reports a 7% Increase in Netback of US$3.73 per Mcf and an Adjusted EBITDAX of $56 million in Q3 2022

CALGARY, ALBERTA - (November 10, 2022) - 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 and nine months ended September 30, 2022. 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 and nine months ended September 30, 2022
Realized contractual natural gas sales volumes decreased 3% to 184.2 MMscfpd for the three months ended September 30, 2022 and increased 3% to 184.7 MMscfpd for the nine months ended September 30, 2022, compared to 190.6 MMscfpd and 179.9 MMscfpd for the same periods in 2021, respectively. Average natural gas production volumes decreased 3% to 186.7 MMscfpd for the three months ended September 30, 2022 and increased 3% to 186.8 MMscfpd for the nine months ended September 30, 2022, compared to 192.4 MMscfpd and 181.7 MMscfpd for the same periods in 2021, respectively. The decease during the three months ended September 30, 2022 is mainly due to a decrease in the demand of spot sales volumes. The increase during the nine months ended September 30, 2022 is mainly due to an increase of natural gas sales volumes contracted under firm contracts in 2022.
Total natural gas revenues, net of royalties and transportation expenses increased 3% and 13% to $67.7 million and $199.9 million for the three and nine months ended September 30, 2022, compared to $65.5 million and $176.4 million for the same periods in 2021, respectively. The increase during the three months ended September 30, 2022 is mainly attributable to higher natural gas realized sales price, net of transportation expenses. The increase during the nine months ended September 30, 2022 is mainly attributable to higher sales volumes and higher natural gas realized sales prices, net of transportation expense.
Adjusted EBITDAX increased 4% and 11% to $56 million and $160.8 million for the three and nine months ended September 30, 2022, compared to $53.8 million and $145.2 million for the same periods in 2021, respectively.
Adjusted funds from operations increased 1% to $38.7 million and $111.6 million for the three and nine months ended September 30, 2022, compared to $38.2 million and $110.2 million for the same periods in 2021, respectively.
The Corporation realized a net loss of $4.5 million and a net income of $13.6 million for the three and nine months ended September 30, 2022, compared to a net income of $8.8 million and $8.2 million for the same periods in 2021, respectively. A non-cash deferred tax expense was recognized of $11.1 million and $10.9 million during the three and nine months ended September 30, 2022, compared to a deferred tax expense of $2.9 million and $12.6 million for the same periods in 2021, respectively. The deferred tax expense was primarily due to the impact of the devaluation of the Colombian Peso ( COP ) foreign exchange rate on the value of unused tax losses and cost pools.

Attachments

SGX - PR 3Q22.pdf
Total size =218K