General Announcement::Canacol Energy Ltd Reports a 22% Increase in Netback in Q1 2024

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
10-May-2024 06:13:14
Status
New
Announcement Sub Title
Canacol Energy Ltd Reports a 22% Increase in Netback in Q1 2024
Announcement Reference
SG240510OTHREI9E
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 22% Increase in Netback and an Adjusted EBITDAX of $61 Million in Q1 2024
CALGARY, ALBERTA - (May 9, 2024) - Canacol Energy Ltd. ( Canacol or the Corporation ) (TSX:CNE; OTCQX:CNNEF; BVC:CNEC) is pleased to report its financial and operating results for the three months ended March 31, 2024. Dollar amounts are expressed in United States dollars, with the exception of Canadian dollar unit prices ( C$ ) where indicated and otherwise noted.

Highlights for the three months ended March 31, 2024
Adjusted funds from operations increased 29% to $42.2 million for the three months ended March 31, 2024, compared to $32.7 million for the same period in 2023, mainly due to an increase in EBITDAX combined with a decrease in current income tax expense.
Adjusted EBITDAX increased slightly to $61.0 million for the three months ended March 31, 2024, compared to
$60.9 million for the same period in 2023. The increase is mainly due to an increase of natural gas operating netback, offset by a decrease in realized contractual natural gas and LNG sales volume.
The Corporation s natural gas and LNG operating netback increased 22% to $4.90 per Mcf for the three months ended March 31, 2024, compared to $4.01 per Mcf for the same period in 2023. The increase is largely due to a 19% increase in average sales prices of firm long-term fixed-priced contracts to $6.04 per Mcf for the three months ended March 31, 2024, compared to $5.09 per Mcf for the same period in 2023.
Total revenues, net of royalties and transportation expenses for the three months ended March 31, 2024 increased 5% to $77.7 million, compared to $73.9 million for the same period in 2023, mainly due to higher average sales price, net of transportation expenses, offset by a decrease in realized natural gas and LNG sales volume.
Realized contractual natural gas sales volume decreased 19% to 150.4 MMcfpd for the three months ended March 31, 2024, compared to 185.6 MMcfpd for the same period in 2023. However, as reported in the Corporation s April 29, 2024 news release, natural gas sales volume averaged 164 MMcfpd for the latter half of April 2024.
The Corporation realized a net income of $3.7 million for the three months ended March 31, 2024, compared to a net income of $16.9 million for the same period in 2023. The decrease in net income for the three months ended March 31, 2024 is driven by a non-cash deferred income tax expense of $0.5 million as compared to a deferred income tax recovery of $17.4 million in 2023.
Net cash capital expenditures for the three months ended March 31, 2024 was $35.9 million compared to $47.1 million for the same period in 2023.
As at March 31, 2024, the Corporation had $25.1 million in cash and cash equivalents and $11.2 million in working capital deficit.

Attachments

TRR NG CNEPR Mar 31 2024 Final.pdf
Total size =211K