Q3 2024 Saturn Oil & Gas Inc Earnings Call Transcript
Key Points
- Saturn Oil & Gas Inc (OILSF) achieved record production levels, surpassing 39,000 barrels per day, which exceeded market expectations.
- The company successfully integrated the Saskatchewan acquisition of Battrum and Flat Lake assets, reducing operating costs and deploying capital effectively.
- Saturn reported a record adjusted EBITDA of $136 million and adjusted funds flow of $94 million, both surpassing consensus estimates.
- The company implemented a share buyback program, returning over $4.7 million to shareholders through the purchase and cancellation of 1.9 million shares.
- Saturn's strategic acquisitions, such as the $20 million tuck-in acquisition in Brazeau Dam Cardium, significantly increased drilling inventory and production.
- The company is still managing legacy hedge positions, which have impacted cash flows, although efforts are being made to improve the hedge book.
- Operating costs for the newly acquired Battrum and Flat Lake assets are higher than the corporate average, although efforts are underway to reduce these costs.
- Saturn's net debt remains high at $779 million, representing roughly 1.4 times net debt to annualized quarterly adjusted EBITDA.
- The company is exposed to fluctuations in oil prices, with strategic plans dependent on maintaining WTI levels at or above $70 per barrel.
- There is uncertainty regarding future guidance and the impact of hedging activities, with full guidance expected to be released in the coming months.
Thank you for standing by.
This is the conference operator.
Welcome to the Saturn Oil and Gas Q3 2024 conference call and webcast.
(Operator Instruction)
I would now like to turn the conference over to Cindy Gray, Vice President, investor Relations with Saturn Oil and Gas. Please go ahead.
Thank you, Dorvin. Good morning, everyone and thank you for joining us for Saturn's Q324 earnings conference call. Please note that the company's financial statements MDNA and press release are available on our website and have been filed on CDAR plus. Our corporate presentation will be updated shortly and will be available on our website as well.
Some of the statements on today's call may contain forward-looking information, references to non IFRS and other financial measures and as such listeners are encouraged to review the associated risks outlined in our most recent MDNA listeners are cautioned not to place undue reliance on these forward-looking
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