Pieridae Energy Ltd. has released its 1Q20 results, highlighted by the fact the company recorded a second straight quarter with strong metrics in revenue, NOI, AFFO and daily production.
- Revenue of CAN$74.0 million in 1Q20, an increase of CAN$51.0 million or 222% compared to 1Q19.
- Petroleum and natural gas revenue increased by CAN$41.4 million or 178% compared to 1Q19.
- Net operating income (NOI) increased by CAN$14.1 million or 273% compared to 1Q19.
- Adjusted funds flow from operations (AFFO) increased by CAN$12.0 million, or 1845% compared to 1Q19, and cashflow from operations improved from a deficit of CAN$17.1 million to CAN$6.4 million.
- 1Q20 average production was 41 211 boe/d, an increase of 23 975 boe/d, or 139% compared to 1Q19.
- Natural gas physical hedging resulted in a realised natural gas price of CAN$2.23/1000 ft3, 15% higher than benchmark prices of CAN$1.94/1000 ft3 for the quarter.
“We continue to see the benefits of last fall’s Foothills Asset acquisition, with Pieridae recording strong financial results in spite of very challenging market conditions,” said Pieridae’s CEO Alfred Sorensen. “Once again, our strong operational performance and positive hedging strategy helped insulate us from the current harsh realities, as realised natural gas prices were 15% higher than the benchmark price for the quarter.”
With a severe drop in oil prices and the overall impacts of COVID-19, some companies have had to deal with impairment charges as well as sizeable reductions in capital spending. Pieridae has not been required to take similar impairments in the quarter, and capital spending as well as the development budget for its Goldboro LNG Project remain intact.
“With a number of global LNG projects either being cancelled or delayed, now is the time for Canada to seize the opportunity to enter into this industry at a time when others are exiting. Our Goldboro LNG Project is sound and supports the fundamental principles of First Nations reconciliation; interlocks with the goals of the Paris Climate Accord; would create good paying, middle-class jobs across the country; and opens up new energy trade routes to get sustainably-produced Canadian natural gas to global markets,” concluded Sorensen.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/29052020/pieridae-energy-announces-1q20-results/