LOGAN ENERGY CORP. ANNOUNCES 2024 FINANCIAL RESULTS AND RESERVES, AND PROVIDES AN OPERATIONS UPDATE
CALGARY, AB, March 19, 2025 /CNW/ - Logan Energy Corp. (TSXV:LGN) ("Logan" or the "Company") announces its financial and operating results for the fourth quarter and year ended December 31, 2024, the results of the 2024 year end reserves evaluation, and provides an operations update.
Selected financial and operational information set out below should be read in conjunction with the Company's audited annual financial statements and related management's discussion and analysis ("MD&A") as at and for the years ended December 31, 2024 and 2023. In addition, readers are also directed to the Company's Annual Information Form ("AIF") for the year ended December 31, 2024, dated March 19, 2025. These documents are filed on SEDAR+ at www.sedarplus.ca and are available on the Company's website at www.loganenergycorp.com. The highlights reported throughout this press release include certain non-GAAP measures and ratios which have been identified using capital letters and are defined herein. The reader is cautioned that these measures may not be directly comparable to other issuers; refer to additional information under the heading "Reader Advisories, Non-GAAP Measures and Ratios".
2024 FINANCIAL AND OPERATING HIGHLIGHTS
The Company is pleased to report its financial and operating results for 2024 which represent Logan's first full year of operations following the spin-out from Spartan Delta Corp. ("Spartan") on June 20, 2023.
Logan successfully executed on its stated growth strategy and delivered 51% production growth from 6,455 BOE per day (31% liquids) in H2 2023 to average 9,734 BOE per day (33% liquids) in H2 2024. Calendar year average production of 8,447 BOE per day (34% liquids) was in-line with previously released guidance of 8,400 BOE per day for 2024.
Year-over-year the Company more than doubled its crude oil production and increased its liquids weighting by 26% to average 34% of production in 2024 compared to 27% in 2023.
The Company achieved a 21% increase in its Operating Netback which averaged $19.13 per BOE (after hedging) in 2024, despite AECO natural gas prices being approximately 50% lower on average compared to 2023. In addition to realizing a significant reduction of per unit operating, transportation and royalty expenses, the improvement in Operating Netback was achieved through focused growth of the Company's oil/liquids weighted assets, which, together with strong crude oil prices, mostly mitigated the impact of lower natural gas prices on Logan's average realized price for 2024 compared to 2023.
While crude oil prices weakened in the fourth quarter of 2024 compared to the first nine months of the year, Logan's Operating Netback increased to $20.79 per BOE (after hedging) as the Company realized further reductions in its per unit cash costs in the current quarter.
Adjusted Funds Flow was $16.7 million for the fourth quarter and $52.9 million for the year ended December 31, 2024, an increase of 80% from $29.3 million in the previous year.
Capital Expenditures before A&D were $151.2 million in 2024, of which Logan spent $6.9 million on land and seismic, $92.6 million on drilling and completions, $48.2 million on facilities, pipelines and well equipment, and $3.5 million on production optimization and other assets. Capital incurred in 2024 was $6.2 million less than Logan's budget/guidance of $157.4 million for the 2024 calendar year, however the shortfall is primarily due to timing and this capital has been reallocated to the 2025 budget year.
At Pouce Coupe, Logan drilled, completed, and brought a three well pad on production. The Company added compression and pipeline infrastructure in the area and importantly, commenced construction of a 40 mmcf/d gas plant, compressor station and oil battery (the "Pouce 4-19 Facility"). The Pouce 4-19 Facility, along with associated gathering and sales pipelines, are expected to be commissioned in the second quarter of 2025 and provides capacity to ~10,000 BOE per day.
In the greater Simonette area, Logan brought four wells on production including a three well pad at South Simonette and a single exploratory well on the western block of acreage at Lator. Three additional wells were drilled in the fourth quarter and will be completed and brought on production in the first quarter of 2025. The Company completed several facility debottlenecking projects in the Simonette area, including the addition of water disposal and liquids pipeline infrastructure which contributed to lower operating expenses and reduced trucking costs.
Logan expanded its position in the greater Kaybob Duvernay oil play through Crown land acquisitions at Two Creeks and North Simonette and drilled an initial land earning well at Ante Creek which will be completed in 2025.
On December 17, 2024, Logan closed the acquisition of certain crude oil and natural gas assets located in the Simonette area for total cash consideration of $60.2 million after estimated closing adjustments (the "Acquisition"). The acquired assets are contiguous with the Company's existing Simonette core area and add top tier Montney oil inventory, in addition to providing strong synergies and capital efficiencies with Logan's owned infrastructure.
Production from the acquired assets was approximately 795 BOE per day (48% liquids) at the time of closing the Acquisition and did not contribute meaningfully to Logan's 2024 average production and cash flows with only 15 days of operations in the current reporting period.
Logan is committed to maintaining a strong balance sheet:
During the fourth quarter of 2024, the Company raised $95.0 million of gross proceeds through upsized bought-deal private placements of an aggregate of 130.1 million common shares at $0.73 per common share.
Logan exited 2024 with Net Debt of $27.8 million or 0.4 times its annualized Adjusted Funds Flow for the fourth quarter. As at December 31, 2024, the Company had $2.2 million of bank debt drawn on its credit facilities with aggregate borrowing capacity of $125.0 million.
Subsequently in 2025, the Company announced strategic dispositions to generate $43.0 million of combined gross proceeds by monetizing a 2.5% gross overriding royalty on its Pouce Coupe property and agreeing to sell a 35% non-operated working interest in the Pouce 4-19 Facility upon commissioning.
The following table summarizes selected highlights for the three months and years ended December 31, 2024 and December 31, 2023:
Three months ended December 31
Year ended December 31
(CA$ thousands, except as otherwise noted)
2024
2023
%
2024
2023
%
FINANCIAL HIGHLIGHTS
Oil and gas sales
29,013
28,653
1
110,536
78,858
40
Net income (loss) and comprehensive income (loss)
(150)
11,391
nm
4,555
(33,799)
nm
$ per common share, basic and diluted
(0.00)
0.02
nm
0.01
(0.11)
nm
Cash provided by operating activities
12,004
11,176
7
50,431
23,954
111
Adjusted Funds Flow (1)
16,689
15,392
8
52,919
29,347
80
$ per common share, basic (1)
0.03
0.03
-
0.11
0.10
10
$ per common share, diluted (1)
0.03
0.03
-
0.10
0.09
11
Capital Expenditures before A&D (1)
38,588
40,568
(5)
151,243
80,406
88
Acquisitions
60,247
151
nm
60,597
5,395
nm
Total assets
365,450
234,638
56
365,450
234,638
56
Net Debt (Surplus) (1)
27,815
(43,468)
nm
27,815
(43,468)
nm
Shareholders' equity
275,357
174,116
58
275,357
174,116
58
Common shares outstanding (000s), end of period (2)
595,675
465,537
28
595,675
465,537
28
Three months ended December 31
Year ended December 31
(CA$ thousands, except as otherwise noted)
2024
2023
%
2024
2023
%
OPERATING HIGHLIGHTS AND NETBACKS (5)
Average daily production
Crude oil (bbls/d)
2,373
1,844
29
2,296
1,012
127
Condensate (bbls/d) (3)
146
456
(68)
189
313
(40)
Natural gas liquids (bbls/d) (3)
510
362
41
384
255
51
Natural gas (mcf/d)
38,982
29,116
34
33,470
25,370
32
BOE/d
9,526
7,515
27
8,447
5,808
45
% Liquids (4)
32 %
35 %
(9)
34 %
27 %
26
Average realized prices, before financial instruments
Crude oil ($/bbl)
89.19
90.40
(1)
92.86
96.33
(4)
Condensate ($/bbl) (3)
87.42
102.39
(15)
91.79
99.42
(8)
Natural gas liquids ($/bbl) (3)
54.67
51.61
6
53.37
49.82
7
Natural gas ($/mcf)
1.62
2.72
(40)
1.52
2.94
(48)
Combined average ($/BOE)
33.11
41.44
(20)
35.75
37.19
(4)
Netbacks ($/BOE) (5)
Oil and gas sales
33.11
41.44
(20)
35.75
37.19
(4)
Processing and other revenue
1.00
1.25
(20)
1.07
1.60
(33)
Royalties
(2.61)
(3.37)
(23)
(3.11)
(4.49)
(31)
Operating expenses
(9.41)
(11.82)
(20)
(12.26)
(14.65)
(16)
Transportation expenses
(2.15)
(3.87)
(44)
(2.87)
(3.81)
(25)
Operating Netback, before hedging (5)
19.94
23.63
(16)
18.58
15.84
17
Realized gain on derivative financial instruments
0.85
-
-
0.55
-
-
Operating Netback, after hedging (5)
20.79
23.63
(12)
19.13
15.84
21
General and administrative expenses
(1.31)
(2.58)
(49)
(1.81)
(2.73)
(34)
Financing income (expenses) (6)
(0.33)
