Saturn Oil and Gas

[ooy]

Saturn Oil & Gas Inc. Reports Q1 2024 Financial and Operating Results
NewsfileMay 15, 2024 6:07 PM EDT
Calgary, Alberta--(Newsfile Corp. - May 15, 2024) - Saturn Oil & Gas Inc. (TSX: SOIL) (FSE: SMKA) (OTCQX: OILSF) ("Saturn" or the "Company") is pleased to report its financial and operating results for the three months ended March 31, 2024.

"The first quarter development plan returned some of the best results in Saturn's history," commented Justin Kaufmann, Saturn's Chief Development Officer. "These results were from conventional development in Southeast Saskatchewan and the Cardium in Central Alberta, which exceeded our expectations yielding numerous wells with record breaking initial production rates. This bodes extremely well for Saturn's future capital programs, considering the depth of inventory the Company has around these locations."

First Quarter 2024 Highlights:

Achieved quarterly production averaging 26,394 boe/d, compared to 17,783 boe/d in the first quarter of 2023;

Generated quarterly adjusted EBITDA(1) of $88.2 million, compared to $69.9 million in the first quarter of 2023;

Achieved quarterly adjusted funds flow(1) of $68.2 million, up from $54.5 million in the first quarter of 2023;

Invested $34.0 million in capital expenditures(1) during the first quarter of 2024, drilling nine gross (8.3 net) wells; including six in Southeast Saskatchewan; and three in Central Alberta;

Generated free funds flow(1) of $34.2 million, up from $30.2 million in the first quarter of 2023;

Completed a bought deal equity financing for total gross proceeds of $50.0 million;

Directed $76.1 towards debt repayment on the on the Senior Term Loan; and

Exited the first quarter of 2024 with $386.4 million of net debt(1), realizing a net debt to annualized quarterly adjusted funds flow(1) of 1.4x.


Three months ended March 31,
($000s, except per share amounts)
2024

2023
FINANCIAL HIGHLIGHTS







Petroleum and natural gas sales
168,219

131,407
Cash flow from operating activities
70,222

46,794
Adjusted EBITDA(1)
88,153

69,860
Adjusted funds flow(1)
68,178

54,454
per share - Basic
0.46

0.63

- Diluted
0.45

0.62
Free funds flow(1)
34,212

30,171
per share
- Basic
0.23

0.35

- Diluted
0.23

0.35
Net income (loss)
(62,982 )
219,050
per share
- Basic
(0.42 )
2.52

- Diluted
(0.42 )
2.51
Acquisitions, net of cash acquired
-

465,233
Capital expenditures(1) 33,966 24,283
Net debt(1), end of period 386,417 556,605




Three months ended March 31,
(000s, except per boe amounts)
2024

2023
OPERATING HIGHLIGHTS












Average production volumes





Crude oil (bbls/d)
18,981

14,680
NGLs (bbls/d)
2,344

992
Natural gas (mcf/d)
30,416

12,666
Total boe/d
26,394

17,783
% Oil and NGLs
81%

88%
Average realized prices



Crude oil ($/bbl)
88.64

93.74
NGLs ($/bbl)
44.24

52.92
Natural gas ($/mcf)
2.44

3.60
Processing expenses ($/boe)
(0.45 )
(0.79 )
Petroleum and natural gas sales ($/boe)
70.03

82.11
Operating netback ($/boe)



Petroleum and natural gas sales
70.03

82.11
Royalties
(8.82 )
(9.34 )
Net operating expenses(1)
(19.80 )
(21.07 )
Transportation expenses
(1.31 )
(1.01 )
Operating netback(1)
40.10

50.69
Realized loss on derivatives
(1.92 )
(4.55 )
Operating netback, net of derivatives(1)
38.18

46.14
Common shares outstanding, end of period
161,206

138,634
Weighted average, basic
148,558

86,995
Weighted average, diluted
151,457

87,217


Message to Shareholders

The first quarter drilling was an excellent start to the 2024 capital development program with strong results in the Brazeau area of Central Alberta for Cardium development and in Southeast Saskatchewan with conventional multizone development. During the period nine gross (8.3 net) wells were completed with 100% success rate, and all were put into production in February and March of 2024.

Early in 2024 our production facilities were challenged with severe cold weather across our operating areas in Alberta and Saskatchewan. January 12, 2024 was the coldest day in the history of many parts of Alberta and Saskatchewan, in many cases breaking all-time cold records. As a notable example, at Saturn's field office in Kindersley Saskatchewan the all-time cold record of -38.8oC was eclipsed with the temperature reaching a low of -44.4oC. The cold weather hampered Saturn's production by approximately 3,000 boe/d for a ten day period, reducing the average production rate for the first quarter by approximately 350 boe/d.

Revenues were further hampered with relatively lower global oil prices, including the North American benchmark WTI oil price that averaged USD 76.97/bbl for the first quarter of 2024, the lowest level in the past three financial quarters. Compounding the impact of lower global oil prices were higher price differentials between the WTI oil price and the Western Canadian benchmark price Mixed Sweet Blend oil price at Edmonton ("MSW"), which averaged USD -8.63/bbl in the first quarter of 2024, compared to the 2023 average of USD -3.25/bbl. The April 2024 commissioning of the Trans Mountain Pipeline Expansion added 590,000 barrels per day of crude oil and refined product export capacity for Western Canada. The price differential between MSW and WTI has decreased to an April 2024 average of USD -4.17/bbl.

Updates on Debt Repayment

During the first quarter of 2024 Saturn directed $76.1 million towards debt repayment on the Senior Term Loan. Since the closing of the acquisition of Ridgeback Resources Inc. on February 28, 2023, the Company has repaid $228.3 million of principal of the Senior Term Loan, to the end of Q1 2024.

Southeast Saskatchewan Update

During the three months ended March 31, 2024, the Southeast Saskatchewan area produced 11,800(2) boe/d, an increase of 39% from 8,494 boe/d(2) in the comparative 2023 period. The increase is primarily due to the Ridgeback Acquisition and successful drilling programs.

Saturn completed five gross (5.0 net) conventional horizontal wells with three Mississippian aged Frobisher and Tilston zone targets and two Spearfish zone targets in the first quarter of 2024, exceeding the expected type curve initial 30 days production ("IP30") rate by 33%. The success of the Q1 2024 wells in Southeast Saskatchewan was supported by recently shot and processed proprietary seismic data, the use of multileg horizontal wells and following up on Saturn's past successes in the area.

During the first quarter of 2024, Saturn spud one gross (1.0 net) Open Hole Multi-Lateral ("OHML") well in the Viewfield area of Southeast Saskatchewan with eight horizontal legs of up to two miles each. This OHML well is expected to be put onto production in May 2024, and is the first two-mile lateral based OHML well drilled by Saturn.

West Central Saskatchewan Update

The Company's assets located in West Central Saskatchewan produced 3,342 boe/d(2) for the three months ended March 31, 2024 representing a decrease of 35% from 5,156 boe/d(2) in the comparative period in 2023. The production decrease is due to natural production declines and no development activity in this area in Q1 2024, compared to the drilling of eight (8.0 net) Viking development wells in the first three months of 2023.

Central Alberta Update

During the three months ended March 31, 2024, the Central Alberta assets produced 8,321(2) boe/d, an increase of 174% from 3,034 boe/d(2) in the comparative 2023 period. The increase is primarily due to the Saturn having operations Central Alberta for only one month of Q1 2023, and successful drilling programs.

Saturn successfully completed four Cardium horizontal wells in the first quarter of 2024, including one Cardium well that was drilled in December 2023 and three wells drilled in Q1 2024, with 100% working interest. The four Cardium wells came onto production on March 15, 2024:

The IP30 rate of the wells ranged from 676 boe/d to 723 boe/d, for an average IP30 of 710 boe/d (approximately 50% light oil and NGLs), which was 29% above the expected type curve rate; and

The average cost per Cardium well was $4.5 million, approximately 8% below the budgeted capital spend.

North Alberta Update

During the three months ended March 31, 2024, the North Alberta assets produced 2,931(2) boe/d, an increase of 167% from 1,099 boe/d(2) in the comparative 2023 period. The increase is primarily due to the Saturn having operations Central Alberta for only one month of Q1 2023 and the successful drilling of four gross (4.0 net) wells for Montney light oil in the Kaybob area.

Subsequent Event

On May 6, 2024, the Company entered into an agreement for the strategic acquisition of two oil-weighted asset packages in Southern Saskatchewan for net cash consideration of approximately $525.0 million (the "Acquisition") with an expected close date of June 14, 2024 (the "Acquisition Closing Date"). The Southern Saskatchewan assets will add approximately 13,000 boe/d of current production (96% oil and liquids) and 200 net booked locations to Saturn's drilling inventory. The Acquisition will bolster both of Saturn's core growth assets in Southeast and West Central Saskatchewan, building size and scale for the Company's growing operations in Western Canada. The Acquisition will be funded through a US$625.0 million debt commitment, which will replace the Company's existing senior secured loan, as well as a bought-deal subscription receipt financing for aggregate gross proceeds of $100.0 million, subject to an over-allotment option to up to an additional $15.0 million. Saturn has also entered into a banking agreement, pursuant to which a Canadian chartered bank has committed to arrange a $150.0 million reserve-based loan expected to be fully undrawn at the Acquisition Closing Date.

Outlook

Saturn will pick up development activity after the annual break up is over and road bans are lifted, with the deployment of up to four drilling rigs this summer: two rigs dedicated to Southeast Saskatchewan, one rig in West Central Alberta and one rig in Alberta. The concurrent use of four rigs, for the first time, will be a new milestone in Saturn's development growth, maintaining a light oil focus and targeting high rates of return on invested capital. With the anticipated increase in adjusted funds flow ("AFF") from the Acquisition, Saturn will fund its largest development capital program to date with approximately 60% of run rate AFF, with the remainder of funds available to rapidly reduce debt levels going forward.

[khk6100]

Heute nach Börsenschluss in Kanada gibt es die Zahlen des 1. Quartals.

[khk6100]

Der 1. Teil des neuesten Kaufs ist abgeschlossen:
https://www.finanznachrichten.de/nachrichten-2024-05/6224010…

[woja]

Antwort auf Beitrag Nr.: 75.746.934 von DreamNEON am 07.05.24 19:42:18

Zitat von DreamNEON:

Zitat von deepvalue: Also es macht keinen Sinn zu 15% umzuschulden, zumal da eine Strafzahlung fällig wird. Substanziell wie in der Meldung wäre eine Reduktion auf 10 %. Da könnte dann auch eine Strafzahlung Sinn ergeben.

So ist es und ich habe gehört, dass der Zinssatz um die 10% liegen soll und das würde Sinn und einen gewaltigen Unterschied machen. Warum man das nicht veröffentlicht verstehe ich nicht aber wir werden es früher oder später erfahren

[gold8000]

Antwort auf Beitrag Nr.: 75.749.871 von Minusbauer am 08.05.24 09:57:06

auch hier derzeit "Schnäppchen"..Jagd eröffnet

[Minusbauer]

SATURN OIL + GAS - Der nächste Wachstumssprung — Auf dem Weg zum Midsize-Produzenten

https://researchanalyst.com/de/updates/aktien-news-saturn-oi…

[newzealaender]

Kevin Smith, Vizepräsident für Unternehmensentwicklung bei Saturn Oil & Gas, spricht über das Wachstum und die Produktion des Unternehmens in Kanada: https://www.commodity-tv.com/play/saturn-oil-gas-oil-produce…

[DreamNEON]

Antwort auf Beitrag Nr.: 75.741.906 von deepvalue am 07.05.24 09:32:57

Zitat von deepvalue: Der Zinssatz dürfte so um die 16% liegen (Rechnung EBITDA-AFFO/durchschnittliche Net Debt), wenn etwas Cash berücksichtigt wird kommt man auf 15%. Immer noch sehr hoch. Aber Goldman ist halt auch kein Wohltäter.
Insgesamt ist die Transaktion ein Stückweit teurer als Ridgeback vor einem Jahr 40.000 CAD/BOEPD vs. 30.350 CAD/BOEPD, wobei ein Teil wohl auch am etwas höheren Ölanteil liegt. Ähnlich sieht es bei den anderen Kennzahlen aus.
ICPG hatte übrigens eine rückläufige Förderung für Sask geplant und zieht sich wohl langsam aus dem Gebiet heraus.
Interessant fand ich auch ein paar andere Punkte (deutlich erhöhter Capex für das Bestandsgeschäft und etwas angehobene Ergebnisprognose, die über den Effekt des etwas höheren Ölpreises hinaus geht.

Ich mag zwar grundsätzlich die Akquisition strategisch gesehen. Allerdings ist das Timing miserabel, da der AKtienkurs immer noch sehr niedrig liegt. Auch gefällt mir nicht die stark erhöhte Verschuldung. Inwieweit man der Ergebnisprognose trauen kann muß man auch sehen. Nach Ridgeback hat man die eigenen Ziele stark verfehlt.

Zitat von DreamNEON: ...

Leider bleiben einige Fragen offen....
1. Wie hoch ist der neue Zinssatz? Anstatt 18 wären 8 % gut.... wieso schreibt man das nicht rein?
2. Wieviel der Produktion ist gehedged? Anscheinend weniger als vorher. Aktuell gut, aber was wenn der Ölpreis fällt?
3. Hoffentlich kann man im worst case so gut mit Goldman reden wie vorherigen Kreditgeber.

Also es macht keinen Sinn zu 15% umzuschulden, zumal da eine Strafzahlung fällig wird. Substanziell wie in der Meldung wäre eine Reduktion auf 10 %. Da könnte dann auch eine Strafzahlung Sinn ergeben.

Aber genau wissen wir es natürlich nicht... bin gespannt.

[ralfho]

Diese Vorgehensweise ist schon wieder ein Schlag in die Magengrube für uns Aktionäre.
Warum wird der Kurs der Kapitalerhöhung so niedrig angesetzt ?

[kblackrider]

Saturn schein seinen Weg ganz schnell weiter gehen mit Produktion Richtung 100.000 boe. solange am Ende der Verschuldungsgrad weiter bei 0,9-1 bleibt ok.
Wie bereits geschrieben, sollte Saturn eher was für den Aktienkurs unternehmen um die Übernahmen günstiger gestalten zu können und den Weg wesentlich stärker vorantreiben zu können. mit dem doppelten Aktienkurs stünden jetzt 100 Mio. zusätzlich für Bohrprogramme zur Verfügung und die Verschuldung läge am Ende des Jahres dann bei 0,8-0,9 und die Produktion deutlich über 40.000 boe.! Was wiederum eine Ausgangslage wäre um 2025 schnell weiteres Kapital in die Bohrungen zu stecken und die Bilanz zu stärken, was wiederum den Kurs deutlich beeinflussen würde auch ohne Dividende.