Quarterly / Earnings Reports | First Quarter (1Q) Update | Financial Results | Capital Markets
Leucrotta Exploration First Quarter 2020 Results
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Leucrotta Exploration Inc. has reported its Q1 2020 results.
Highlights:
- Drilled, completed and tied-in a second Montney well at Two Rivers.
- Completed construction of the Two Rivers facility and commenced production of the two Montney wells.
- Subsequent to March 31, 2020, disposed of certain non-core facility assets for proceeds of $2.2 million.
| FINANCIAL RESULTS | |||||||||
| Three Months Ended March 31 | |||||||||
| ($000s, except per share amounts) | 2020 | 2019 | % Change | ||||||
| Oil and natural gas sales | 5,791 | 8,102 | (29 | ) | |||||
| Cash flow from operating activities | 1,405 | 3,729 | (62 | ) | |||||
| Per share – basic and diluted | 0.01 | 0.02 | (50 | ) | |||||
| Adjusted funds flow (1) | 760 | 4,108 | (81 | ) | |||||
| Per share – basic and diluted | – | 0.02 | (100 | ) | |||||
| Net (loss) earnings | (89,444 | ) | 2,674 | (3,445 | ) | ||||
| Per share – basic and diluted | (0.45 | ) | 0.01 | (4,600 | ) | ||||
| Capital expenditures | 12,012 | 4,954 | 142 | ||||||
| Proceeds on sale of equipment (2) | – | 3,142 | (100 | ) | |||||
| Working capital (deficiency) | (5,223 | ) | 2,675 | (295 | ) | ||||
| Common shares outstanding (000s) | |||||||||
| Weighted average – basic | 200,525 | 200,525 | – | ||||||
| Weighted average – diluted | 200,525 | 200,939 | – | ||||||
| End of period – basic | 200,525 | 200,525 | – | ||||||
| End of period – fully diluted | 226,392 | 227,082 | – | ||||||
(1) See “Non-GAAP Measures” section
(2) The sale of equipment for proceeds of $3.1 million in Q1 2019 is exclusive of $2.7 million deposit received in Q4 2018.
| OPERATING RESULTS (1) | Three Months Ended March 31 | ||||||||
| 2020 | 2019 | % Change | |||||||
| Daily production | |||||||||
| Oil and NGLs (bbls/d) | 862 | 824 | 5 | ||||||
| Natural gas (mcf/d) | 12,354 | 14,049 | (12 | ) | |||||
| Oil equivalent (boe/d) | 2,921 | 3,166 | (8 | ) | |||||
| Oil and natural gas sales | |||||||||
| Oil and NGLs ($/bbl) | 39.02 | 51.84 | (25 | ) | |||||
| Natural gas ($/mcf) | 2.43 | 3.37 | (28 | ) | |||||
| Oil equivalent ($/boe) | 21.78 | 28.44 | (23 | ) | |||||
| Royalties | |||||||||
| Oil and NGLs ($/bbl) | 0.87 | – | 100 | ||||||
| Natural gas ($/mcf) | 0.01 | – | 100 | ||||||
| Oil equivalent ($/boe) | 0.31 | – | 100 | ||||||
| Net operating expenses (2) | |||||||||
| Oil and NGLs ($/bbl) | 9.95 | 6.37 | 56 | ||||||
| Natural gas ($/mcf) | 0.87 | 0.75 | 16 | ||||||
| Oil equivalent ($/boe) | 6.60 | 5.00 | 32 | ||||||
| Net transportation and marketing expenses (2) | |||||||||
| Oil and NGLs ($/bbl) | 1.46 | 1.51 | (3 | ) | |||||
| Natural gas ($/mcf) (3) | 1.78 | 0.98 | 82 | ||||||
| Oil equivalent ($/boe) | 7.97 | 4.74 | 68 | ||||||
| Operating netback (2) | |||||||||
| Oil and NGLs ($/bbl) | 26.74 | 43.96 | (39 | ) | |||||
| Natural gas ($/mcf) | (0.23 | ) | 1.64 | (114 | ) | ||||
| Oil equivalent ($/boe) | 6.90 | 18.70 | (63 | ) | |||||
| Depletion and depreciation ($/boe) | (8.40 | ) | (9.58 | ) | (12 | ) | |||
| Asset impairment ($/boe) | (330.59 | ) | – | 100 | |||||
| General and administrative expenses ($/boe) | (3.97 | ) | (4.10 | ) | (3 | ) | |||
| Share based compensation ($/boe) | (0.14 | ) | (0.75 | ) | (81 | ) | |||
| Gain on sale of equipment ($/boe) | – | 5.46 | (100 | ) | |||||
| Finance expense ($/boe) | (0.26 | ) | (0.35 | ) | (26 | ) | |||
| Net (loss) earnings ($/boe) | (336.46 | ) | 9.38 | (3,687) | |||||
Leucrotta President Robert J. Zakresky said: "In Q1 2020, Leucrotta’s capital was spent primarily on the Two Rivers facility and drilling and completing a second Montney well. $6.0 million was reclassified as assets held for sale relating to funds received subsequent to the end of Q1 2020 as part of a prior agreement with our partner at Two Rivers.
"Production remained relatively stable at 2,921 boe/d for the quarter as wells continue to outperform expectations. Production increased in late March with the start-up of the Two Rivers facility and is estimated to average approximately 3,000 boe/d for 2020.
"Leucrotta had $5.2 million of debt at the end of Q1 2020 and will look to reduce this through 2020 by eliminating all discretionary capital and continuing to sell non-core assets and equipment. In Q2 2020, Leucrotta sold a non-core disposal well for $2.2 million as part of ongoing initiatives to maintain balance sheet strength.
"We look forward to reporting on further business developments in the near future."
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