HIGHWOOD ASSET MANAGEMENT LTD. ANNOUNCES FOURTH QUARTER AND FULL-YEAR 2024 RESULTS, 2024 YEAR-END RESERVES AND OPERATIONAL UPDATE
/NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES/
CALGARY, AB, March 21, 2025 /CNW/ - Highwood Asset Management Ltd. ("Highwood" or the "Company") (TSXV:HAM) is pleased to announce financial and operating results for the three and twelve months ended December 31, 2024 and to provide the results of its independent oil and gas reserves evaluation as of December 31, 2024, prepared by GLJ Petroleum Consultants Ltd. ("GLJ"). The Company also announces that its audited financial statements and associated Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2024, are available on Highwood's website at www.highwoodmgmt.com and on SEDAR+ at www.sedarplus.ca.
Highlights
Achieved average corporate production of 5,966 boe/d in Q4 2024, representing an increase of approximately 48% from the comparative period last year (average of 4,035 boe/d) as a result of successful 2024 drilling program.
For the fourth quarter of 2024, Highwood delivered Adjusted EBITDA of $19.0 million ($1.25 per share) and adjusted funds flow of $7.2 million ($0.47 per share), representing increases of $8.7 million (85%) and $9.3 million (105%), respectively, over the comparative three-month period in 2023. (1)
Highwood's top priority remains shareholder value where strong execution in 2024 was clearly demonstrated by NAV per share growth of approximately 35% on a PDP BTNPV10 NAV/share basis and approximately 13% on a 1P BTNPV10/share basis. Realized before-tax net present value, after debt, of booked reserves(1):
PDP BTNPV10 of $262 million representing NAV $10.86/share and $10.07/share fully diluted.
Associated RLI of 9.1 years and delivered a recycle ratio of 2.2
1P BTNPV10 of $515 million representing NAV $27.51/share and $23.42/share fully diluted.
Associated RLI of 14.1 years and recycle ratio of 2.2
2P BTNPV10 of $819 million representing NAV $47.61/share and $39.54/share fully diluted.
Associated RLI of 21.0 years and recycle ratio of 2.9
The Company incurred capital expenditures of approximately $11 million in the fourth quarter of 2024, with the majority of costs related to two gross (1.5 net) wells drilled, one well in Brazeau (booked) and one well in Wilson Creek (booked), along with seismic purchased in Wilson Creek and Bonnyville to assist the Company with its 2025 drilling program. The 2025 drilling program included 6 gross (4.3 net) wells drilled in the first quarter, which are expected to come onstream within 60 days.
Highwood reiterates its guidance of a 2025 capital plan of $60–65 million, 2025 average production guidance of 6,200–6,400 boe/d (+10% increase at midpoint), Adjusted EBITDA of $88-92 million and a target 2025 Net Debt / 2025 Exit EBITDA ratio of approximately 0.8x. (1)(2)
As a result of a successful drilling program that delivered significant PDP reserves growth, the Company's borrowing base has been increased from $110 million to $120 million during the fourth quarter of 2024. With the increase to the Company's borrowing base, the Company was able to extinguish the Promissory Note on November 26, 2024 which will result in a positive impact on interest expense with the credit facility bearing interest currently at approximately 7% per annum, compared to the 13% per annum borne by the Promissory Note. Furthermore, the early repayment will create additional financial flexibility for Highwood.
Notes to Highlights:
(1)
See "Caution Respecting Reserves Information" and "Non-GAAP and other Specified Financial Measures".
(2)
Based on Management's projections (not Independent Qualified Reserves Evaluators' forecasts) and applying the following pricing assumptions: WTI: US$70.00/bbl; WCS Diff: US$14.00/bbl; MSW Diff: US$3.75/bbl; AECO: C$2.00/GJ; 0.73 CAD/USD. Management projections are used in place of Independent Qualified Reserves Evaluators' forecasts as Management believes it provides investors with valuable information concerning the liquidity of the Company.
Summary of Financial & Operating Results
Three months ended December 31,
Year ended December 31,
2024
2023
%
2024
2023
%
Financial (in thousands)
Petroleum and natural gas sales
$ 33,775
$
$ 23,633
43
$ 135,794
$ 41,212
230
Transportation pipeline revenues
$ 621
$ 664
(7)
$ 2,670
$ 2,867
(7)
Total revenues, net of royalties(1)
$ 21,167
$ 29,918
(29)
$ 109,498
$ 41,038
167
Income
$ 1,914
$ 47,785
(96)
$ 27,950
$ 46,144
(39)
Funds flow from operations(5)
$ 16,791
$ 7,813
115
$ 69,134
$ 13,873
398
Adjusted EBITDA(5)
$ 18,995
$ 10,261
85
$ 79,144
$ 18,171
336
Capital expenditures
$ 10,999
$ 14,737
(25)
$ 66,451
$ 18,767
254
Net debt (2)
$ 97,832
$ 97,051
-
Shareholder's equity (end of year) (6)
$ 132,087
$ 104,199
27
Shares outstanding (end of year)
15,154
15,114
-
Weighted-average basic shares
14,837
9,723
53
outstanding
Operations (3)
Production
Crude oil (bbls/d)
3,638
2,306
58
3,580
978
266
NGLs (boe/d)
775
526
47
752
210
259
Natural gas (mcf/d)
9,319
7,215
29
8,965
2,969
193
Total (boe/d)
5,966
4,035
48
5,781
1,682
1,682
Average realized prices (4)
Crude oil (Cdn$/bbl)
91.63
95.07
(4)
93.82
99.44
(6)
NGL (Cdn$/boe)
29.51
36.22
(19)
31.76
37.52
(15)
