Q2 2024 Pieridae Energy Ltd Earnings Call Transcript
Key Points
- Pieridae Energy Ltd (PTOAF) posted a net operating income of just under $8 million for Q2 2024, bolstered by a $20 million commodity hedging gain.
- Approximately three-quarters of the company's forecasted natural gas production for the remainder of 2024 and 2025 is hedged at $3.32 per gigajoule, providing a buffer against low AECO natural gas prices.
- Third-party processing volumes at the Caroline Gas Plant increased by 40% in the quarter, driven by new multi-well pads drilled by an area operator.
- The company successfully closed the sale of its Goldboro Nova Scotia property and assets, simplifying its corporate structure and focusing on its core upstream and midstream business.
- Pieridae Energy Ltd (PTOAF) repaid a high-interest bridge loan in full, reducing net debt by approximately $17 million and significantly lowering debt servicing costs.
- Historically low AECO natural gas prices negatively impacted the company's revenue, with the benchmark languishing below $1.50 per gigajoule for most of the quarter.
- Production was negatively impacted by an unscheduled Jumping Pound gas plant outage and the shut-in of production in Northern British Columbia and Northern Alberta.
- The company has approximately 9,400 BOE per day of production shut-in, representing more than 25% of its corporate production capability, due to uneconomic dry gas production.
- Operating costs experienced upward pressure on a per BOE basis due to lower production volumes, given that the majority of costs are not significantly rate-dependent.
- Pieridae Energy Ltd (PTOAF) withdrew its production guidance for 2024 due to the uncertain duration of low AECO gas prices and the shut-in of significant production volumes.
Good day, ladies and gentlemen, and welcome to the Pieridae Annual General Meeting and Q2 2024 financial results conference call. Please be advised that today's conference is being recorded. (Operator Instructions)
I would now like to turn the meeting over to Mr. Dallas McConnell, Vice President, Corporate Finance. Please go ahead, Mr. McConnell.
Thanks very much, Daniel, and good morning everyone. I would like to welcome you to Pieridae's second-quarter 2024 conference call. Apologies for the error in the operator script. This is not, in fact, an Annual General Meeting.
With me today are President and Chief Executive Officer, Darcy Reding; Chief Financial Officer, Adam Gray; Chief Commercial Officer, Paul Kunkel; and Chief Operating Officer, John Emery. Darcy and Adam will begin today with a review of our operating and financial results and certain other company developments. Following their prepared remarks, we will turn the call over to the conference coordinator
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