"Kiwetinohk significantly increased its production and reserves in 2021 through counter-cyclic acquisitions and is also seeing the early results of a successful winter drilling program," said CEO
The high-quality upstream resources we have now accumulated underpin the further advancement of our energy transition strategy. Integration of natural gas with gas-fired power and carbon capture, utilization and storage (CCUS) coupled with renewable power will allow us to deliver clean, reliable and dispatchable energy that is low cost for consumers and profitable for Kiwetinohk and our shareholders. Kiwetinohk is developing future markets for natural gas production where we will be able to track and capture emissions, eliminating Scope 3 emissions in the process."
Q4 2021 and 2021 Year-End Highlights
- Successfully completed the Simonette Acquisition and amalgamation of
Distinction Energy Corp. (Distinction) during the year resulting in significantly increased production compared to the prior year. - Production volumes averaged 12,422 boe/d and 9,801 boe/d during the quarter and year ended
December 31, 2021 , respectively. - During the year, the Company acquired 34.4 million boe of Proved Developed Producing1 (PDP) reserves based on updated independent year-end reserves estimates, representing a significant increase over 2020 year-end PDP reserves of 0.9 million boe.
- The additional PDP reserves were acquired for
$11.72 /boe delivering a strong recycle ratio2 of 3.5x based on fourth quarter 2021 operating netbacks. - The Company also increased Proved and Proved plus Probable reserve volumes by 248% and 274% to 106.2 MMboe and 180.2 MMboe, respectively, or reserve volumes per share by 50% and 62% to 2.4 and 4.2 boe per share, respectively.
- Kiwetinohk generated record adjusted funds flow from operations3 for the quarter and year ended
December 31, 2021 of$30.8 million and$69.8 million , respectively, due to successful acquisitions and improved commodity prices. - Capital investment activity provided an attractive return on average capital employed for the year of 25% demonstrating the value of the transactions.
- Kiwetinohk filled 100% of its Alliance pipeline capacity of 103.0 MMcf/d (after temporary assignments) during the fourth quarter of 2021 with production and purchased gas volumes.
- Natural gas marketing activities resulted in realized net marketing income of
$2.9 million during the fourth quarter of 2021 and$6.8 million for the year endedDecember 31, 2021 before settlements of risk management contracts. - The Company invested
$32.0 million and$50.9 million in capital expenditures (excluding acquisitions) for the quarter and year endedDecember 31, 2021 as it initiated its drilling program in itsFox Creek core area. - The expenditures included the drilling and completion expenditures related to two
Duvernay wells in the Simonette area and twoMontney wells in the Placid area and a vertical test to evaluate the Middle Montney during the fourth quarter of 2021. - During the year the Company made significant development progress across its 1,800 MW power development portfolio.
- Kiwetinohk advanced work in the AESO staging process to secure grid access with 4 of 5 projects progressing in Stage 2.
- With stakeholder consultation near completion and a favorable Alberta Environment and Parks (AEP) referral letter received on
March 21 , the Company is targeting anAlberta Utilities Commission (AUC) submission for the 400 MW Solar 1 project in the second quarter 2022. - The Company is also targeting to submit AUC and AEP industrial applications for the 101 MW Firm Renewable 1 project in the second quarter 2022.
- On
December 13, 2021 , the Company's$225.0 million Senior Secured Extendible Revolving Facility (Credit Facility) was increased to$315.0 million . - Available borrowing capacity on the Credit Facility at
December 31, 2021 was$228.0 million .
_________________________________________
1 | Oil and natural gas reserves are as determined by the Company's independent qualified reserve evaluator with an effective date of |
2 | Recycle ratio is calculated as operating netback on a per boe basis divided by the costs of acquisitions over estimated PDP reserves. Recycle ratio is used by the Company as a key measure of profitability and the Company's ability to generate cash flows over the cost of produced barrels. |
3 | Non-GAAP measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. Please refer to the Corporation's MD&A as at and for the three and twelve months ended |
Financial and operating results | |||||
Q4 2021 | Q4 2020 | 2021 | 2020 | ||
Production | |||||
Condensate (bbl/d) | 3,092 | 13 | 2,644 | 35 | |
Light oil (bbl/d) | 844 | 374 | 457 | 429 | |
Heavy oil (bbl/d) | 13 | 43 | 29 | 15 | |
NGLs (bbl/d) | 1,572 | 41 | 1,180 | 64 | |
Natural gas (Mcf/d) | 41,410 | 1,045 | 32,942 | 1,367 | |
Total (boe/d) | 12,442 | 645 | 9,801 | 771 | |
Oil and condensate % of production | 32% | 67% | 32% | 62% | |
NGL % of production | 13% | 6% | 12% | 8% | |
Natural gas % of production | 55% | 27% | 56% | 30% | |
Realized prices | |||||
Condensate ($/bbl) | 99.21 | 55.56 | 84.94 | 55.47 | |
Light oil ($/bbl)) | 92.29 | 48.57 | 82.46 | 48.13 | |
Heavy oil ($/bbl) | 81.60 | 35.58 | 59.22 | 34.40 | |
NGLs ($/bbl) | 65.61 | 14.04 | 52.60 | 7.09 | |
Natural gas ($/Mcf) | 6.64 | 2.66 | 5.29 | 2.28 | |
Total ($/boe) | 61.48 | 36.83 | 51.06 | 34.60 | |
Royalty recovery (expense) ($/boe) | (6.80) | 1.57 | (5.46) | (2.14) | |
Operating expenses ($/boe) | (8.28) | (9.94) | (8.18) | (9.66) | |
Transportation expenses ($/boe) | (5.20) | (1.06) | (5.09) | (0.80) | |
Operating netback 1 ($/boe) | 41.20 | 27.40 | 32.33 | 22.00 | |
Marketing income ($/boe) | 2.50 | - | 1.91 | - | |
Realized loss on risk management contracts ($/boe) 5 | (11.86) | - | (10.15) | - | |
Adjusted operating netback 1 | 31.84 | 27.40 | 24.09 | 22.00 | |
Financial results ($000s, except per share amounts) | |||||
Commodity sales from production | 70,267 | 2,186 | 182,668 | 9,758 | |
Net marketing income (loss) 1 | 2,854 | - | 6,831 | - | |
Cash flow from (used in) operating activities | 25,518 | (777) | 35,820 | (1,661) | |
Adjusted funds flow from (used in) operations 1 | 30,763 | (290) | 69,829 | (1,279) | |
Per share basic 2,3 | 0.71 | (0.02) | 2.20 | (0.09) | |
Per share diluted 2,3 | 0.71 | (0.02) | 2.20 | (0.09) | |
Net debt to adjusted funds flow from operations 1 | 0.74 | N/A | |||
Free funds flow (deficiency) from operations 1 | (1,195) | (1,125) | 18,929 | (7,571) | |
Net income (loss) | 44,306 | 9,732 | (22,315) | (4,869) | |
Per share basic 2,3 | 1.02 | 0.64 | (0.70) | (0.36) | |
Per share diluted 2,3 | 1.02 | 0.64 | (0.70) | (0.36) | |
Capital expenditures prior to acquisitions | 31,958 | 835 | 50,900 | 6,292 | |
Acquisitions | - | - | 282,414 | - | |
Total capital expenditures | 31,958 | 835 | 333,314 | 6,292 | |
Balance sheet ($000s, except share amounts) | |||||
Total assets | 614,337 | 172,993 | 614,337 | 172,993 | |
Long-term liabilities | 124,587 | 3,448 | 124,587 | 3,448 | |
Net debt (surplus) 1 | 51,512 | (54,401) | 51,512 | (54,401) | |
Adjusted working capital deficit (surplus) 1 | 18,644 | (54,401) | 18,644 | (54,401) | |
Weighted average shares outstanding 2,3 | |||||
Basic and diluted | 43,622,942 | 15,202,845 | 31,689,093 | 13,540,477 | |
Shares outstanding end of period 2,3 | 43,674,583 | 18,723,718 | 43,674,583 | 18,723,718 | |
Return on average capital employed (ROACE) 1 | 25% | (1%) | |||
Reserves | |||||
Proved reserves (MMboe) 4 | 106.1 | 30.5 | |||
Proved reserves per share (boe) 4 | 2.4 | 1.6 | |||
Proved plus probable reserves (MMboe) 4 | 180.2 | 48.1 | |||
Proved plus probable reserves per share (boe) 4 | 4.2 | 2.6 |
1 – Non-GAAP measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. Please refer to the Corporation's MD&A as at and for the three and twelve months ended |
2 – As part of the Arrangement, Kiwetinohk consolidated the outstanding Kiwetinohk common shares, stock options and performance warrants on a 10 to 1 basis. All information related to common shares, stock options, performance warrants and per share amounts, have been restated to reflect the share consolidation for all periods presented. |
3 – Per share amounts are based on weighted average basic and diluted shares, respectively. |
4 – Oil and natural gas reserves are as determined by the Company's independent qualified reserve evaluator with an effective date of |
5 – Realized loss on risk management contracts includes settlement of hedges of physical production and on marketing activity. |
6 - See "Oil and Gas Disclosure" for NI 51-101 product type information. |
Upstream operational update
The Company initiated its drilling program in the
During the fourth quarter of 2021, the Company rig released two
The Company also drilled two Placid-area wells in the
In early 2022, the Company drilled two
Equip and tie-in costs across the development program are expected to average approximately
Health & Safety
As part of integration of the Simonette assets and Distinction Energy and the approach of construction of power projects, Kiwetinohk is implementing a new health and safety program that applies best practices across all operations. The Company continues to exercise caution with respect to COVID-19 risks by following local government and public health direction and other safeguards.
Reserves
Reserve highlights through the year include:
- Significant growth in reserves as a result of the Distinction and Simonette acquisitions which added 156 million boe of Proved plus Probable Reserves.
- Proved reserves increased 248% from 30.5 million boe in 2020 to 106.2 million boe in 2021 and Proved plus Probable reserves increased 274% from 48.1 million boe in 2020 to 180.2 million boe in 2021.
- Proved plus Probable net present value (NPV) at 15% increased to
$1.5 billion representing a 26% increase over the 2021 mid-year reserve report and 638% over the 2020 year-end reserve report. - The Company re-prioritized its development plans following acquisitions during the year to higher-return undeveloped land locations resulting in a
$46 million impairment in Q1 2021. - Based on a fourth quarter average production rate of 12,422 boe/d, the reserve life index is 23.4 years based on Proved reserves and 39.7 years based on Proved plus Probable reserves.
Acquisition cost:
With the benefit of having investment capital available from its 2018 initial financing, the Company was able to acquire oil and gas reserves in 2020 and 2021 during low periods in the commodity price cycle. The following table summarizes reserves acquired and acquisition costs.
Reserve category | Acquisition | Acquisition ($MM) | Acquisition ($ / boe) | Recycle Ratio3 * |
Proved developed producing | 34.4 | 403.2 | 11.72 | 3.5x |
Total proved | 100.8 | 403.2 | 4.00 | 10.3x |
Total proved plus probable | 156.1 | 403.2 | 2.58 | 15.9x |
Notes: | |
(1) | Acquisition reserves include reserves acquired as part of the Simonette Acquisition and Distinction business combination. |
(2) | Acquisition cost is |
(3) | Recycle ratio is calculated as the Q4 2021 operating netback of |
Reserve summary:
Gross reserves1, 3 at | Heavy oil Mbbl | Tight oil Mbbl | Shale gas MMcf | NGLs2 Mbbl | Total Mboe |
Proved developed producing | 15.1 | 1,370.1 | 100,288.3 | 13,733.4 | 31,833.3 |
Proved developed non-producing | - | - | 8,653.9 | 1,105.7 | 2,548.0 |
Proved undeveloped | 113.1 | - | 205,830.5 | 37,367.4 | 71,785.5 |
Total proved | 128.2 | 1370.1 | 314,772.8 | 52,206.5 | 106,166.9 |
Probable | 204.1 | 269.0 | 244,603.9 | 32,799.0 | 74,039.4 |
Total proved plus probable | 332.3 | 1,639.1 | 559,376.7 | 85,005.5 | 180,206.3 |
Percent | 0.2% | 0.9% | 51.7% | 47.2% | 100% |
Notes: | |
(1) | Gross reserves are working interest reserves before royalty deductions. |
(2) | Figures include natural gas liquids (NGL) for both conventional and unconventional reservoirs, including condensate, pentane plus, propane, butane and ethane. Condensate is expected to be extracted in the field and sold separately from other NGL or sold with other NGL delivered to fractionation facilities. Other NGL (propane, butane and ethane) are expected to be extracted in the field by Kiwetinohk. |
(3) | These figures are derived from volumes that are arithmetic sums of multiple estimates of reserves categories or sub-categories, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should review the estimates of individual classes of reserves and appreciate the differing probabilities of recovery associated with each class as explained under the heading "Glossary, Selected Abbreviations and Selected Conversions" in Appendix "A" of the Company's AIF. |
Net present values of future net revenue:
($ million before tax)1, 2, 3 | NPV 0% | NPV 10% | NPV 15% | NPV 20% |
Proved developed producing | 644.9 | 469.0 | 405.1 | 358.1 |
Proved developed non-producing | 85.9 | 67.2 | 61.8 | 57.6 |
Proved undeveloped | 1,567.0 | 736.5 | 541.7 | 409.5 |
Total proved | 2,297.8 | 1,272.8 | 1,008.6 | 825.2 |
Total probable | 1,781.7 | 672.1 | 475.9 | 356.8 |
Total proved plus probable | 4,079.5 | 1,944.8 | 1,484.1 | 1,182.0 |
Notes: | |
(1) | Estimates of future net revenue do not represent fair market value. |
(2) | These figures are derived from volumes that are arithmetic sums of multiple estimates of reserves categories or sub-categories, which statistical principles indicate may be misleading as to volumes that may actually be recovered. Readers should review the estimates of individual classes of reserves and appreciate the differing probabilities of recovery associated with each class as explained under the heading "Glossary, Selected Abbreviations and Selected Conversions" in Appendix "A" of the Company's AIF. |
(3) | The unit values are based on net reserve volumes from the Company's NI 51-101 reserve report using forecast pricing and foreign exchange rates at |
Green energy development update
The Company's longer-term goal is to profitably provide consumers with clean, reliable, dispatchable, low-cost energy. In that pursuit Kiwetinohk is advancing five solar and gas-fired power projects. These five projects are in the initial development phase in which the Company is advancing site control, grid access, consultation, regulatory approvals and front-end engineering and design (FEED). The Company has made significant development progress across its 1,800 MW (nameplate capacity) solar and gas-fired power portfolio. Kiwetinohk advanced work in the AESO staging process to secure grid access with 4 of 5 projects progressing in Stage 2. With stakeholder consultation near completion and an AEP referral letter concluding the project is low risk to wildlife and wildlife habitat, the Company is targeting to submit an AUC application for the 400 MW Solar 1 project in the second quarter. The Company is also targeting to submit AUC and AEP industrial applications for the 101 MW Firm Renewable 1 project in the second quarter.
The Company continues to evaluate CCUS technologies and potential investments as part of its plan to deliver clean energy from its gas-fired power plants. Kiwetinohk has also progressed its evaluation of a blue hydrogen production project in partnership with a midstream infrastructure company and an industrial partner.
Kiwetinohk estimates the 400 MW Solar 1 and 101 MW Firm Renewable 1 projects can attain FID by year-end 2022, subject to regulatory review timelines. The Company has revised its target FID for the Firm Renewable 1 project from Q3 to Q4 2022 to account for potential regulatory delays, and increased its installed capital cost estimate by
As at
Solar 1 | Solar 2 | Firm Renewable 1 | NGCC 1 | NGCC 2 | |
Nameplate/Net to Grid Capacity | 400 MW | 300 MW | 101 MW 97 MW | 500 MW 460 MW | 500MW 460 MW |
AESO Stage | 2 | 1 | 2 | 2 | 2 |
Site Control | Options secured | Options secured | Land acquisition in progress | Options secured | Land acquisition in progress |
Public Consultation | Underway | Planning underway | Completed | Planning underway | Planning underway |
Regulatory / Environmental | AEP referral letter received; AUC Q2 2022 | AEP application submitted | AUC and AEP Q2 2022 | Planning underway | Planning underway |
Engineering | Pre-FEED complete; FEED near completion | BD complete | FEED complete | BD complete; Pre-FEED underway | BD complete; Pre-FEED underway |
Targeted FID | Q3 2022 | Q2 2023 | Q4 2022 | Q3 2024 | Q4 2023 |
Targeted COD 4 | Q4 2024 | Q2 2025 | Q4 2024 | Q3 2027 | Q4 2026 |
Total installed capital cost | (Class 3) | (Class 3) | (Class 3) | (Class 4) | (Class 4) |
1 – Total installed cost estimates are classified in a manner consistent with |
2 – Total installed cost numbers exclude carbon capture and sequestration. CCUS costs are estimated to be an incremental 60 to 80% of the total installed cost based on an engineering study by |
3 – None of the Company's planned power generation projects have a final design, performance projection or cost estimate, or full regulatory approval or internal or external funding. There is no assurance that the power generation projects will proceed as described or at all. |
4 – If a FID decision is reached the Company will advance the project towards an estimated Commercial Operations Date (COD). |
Environment, Social and Governance (ESG)
Kiwetinohk is completing a thorough review of its environmental, social and governance (ESG) risks and management strategies and plans to publish its first ESG report in mid-2022 in alignment with the
Guidance
Kiwetinohk's priority is to deliver attractive returns on capital employed during the year through profitable investment in high quality assets to position the Company to deliver strong free cash flow generation and growth in future years. The Company's annual capital expenditures and production guidance for 2022 remains unchanged and is provided below.
2022 Guidance | |||
Operational & financial guidance | Low | High | |
Production (2022 average) 1 | (Mboe/d) | 13.0 | 15.0 |
Oil & liquids | (Mbbl/d) | 6.5 | 7.5 |
Natural gas | (MMcf/d) | 39.0 | 45.0 |
Production by market | (%) | 100 | 100 |
| (%) | 87 | 97 |
AECO | (%) | 3 | 13 |
Royalty rate (Crown) | (%) | 12 | 15 |
Operating costs1 | ($/boe) | 7.50 | 8.50 |
Transportation (excluding marketing activities) | ($/boe) | 5.00 | 6.00 |
G&A expense before share-based compensation 2 |
($MM) | 15.0 | 18.0 |
Cash taxes | ($MM) | - | - |
Capital guidance | Low | High | ||||
Capital | ($MM) | 210 | 240 | |||
Green Energy | ($MM) | 10 | 20 | |||
Upstream | ($MM) | 200 | 220 | |||
(wells) | 11 | |||||
| (wells) | 10 | ||||
| (wells) | 1 | ||||
Sensitivities | Low | High | ||||
Adjusted funds flow from operations 3, 5 | ||||||
| ($MM) | |||||
| ($MM) | |||||
| ($MM) | |||||
Net debt to adjusted funds flow from operations 4, 5 | ||||||
| * | 1.3x | ||||
| * | 1.0x | ||||
| * | 0.7x | ||||
1 – Production and cash operating costs include a provision for scheduled plant turnarounds at |
2 – Includes all cash G&A expenses for all divisions of the Company – Corporate, Upstream, Green Energy (power & hydrogen) and Business Development. |
3 – Adjusted funds flow from (used in) operations is cash flow from (used in) operating activities before changes in net change in non-cash working capital from operating activities, asset retirement obligations, restructuring costs, acquisition costs and settlement agreement costs. |
4 – Net Debt to adjusted funds flow from (used in) operations is net debt (surplus) divided by adjusted funds flow from (used in) operations. Net debt is comprised of loans and borrowings plus adjusted working capital deficit (surplus) and represents the Company's net financing obligations. |
5 – This Non-GAAP measure does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. Please refer to the Corporation's MD&A as at and for the three and twelve months ended |
The Company continues to make significant progress in advancing its
The 2022 upstream capital budget is currently established in a range between
Operating costs are anticipated to be higher in the first half of 2022 impacted by inflationary cost pressure in the field, production declines, cold weather impacts and scheduled plant turnarounds in
Base shelf prospectus
The Company intends to file a preliminary short-form base shelf prospectus (Prospectus) to provide financing flexibility and additional options for quicker access to equity and/or debt markets as it continues to pursue potential acquisition opportunities. The Prospectus is expected to provide Kiwetinohk, the right but not the obligation to issue securities of up to
Subsequent events
Mr.
Conference call
Management of Kiwetinohk will host a conference call at
Participants will be able to listen to the conference call by dialing 1-888-220-8451 (North America toll free) or 1-647-484-0475 (Toronto and area). A recording will be available for replay until
About Kiwetinohk
We, at Kiwetinohk, are passionate about climate change and the future of energy. Kiwetinohk's mission is to build a profitable energy transition business providing clean, reliable, dispatchable, low-cost energy. Kiwetinohk develops and produces natural gas and related products and is in the process of developing renewable power, natural gas-fired power, carbon capture and hydrogen clean energy projects. We view climate change with a sense of urgency, and we want to make a difference.
Kiwetinohk's common shares trade on the
Additional details are available within the year-end documents available on Kiwetinohk's website at www.kiwetinohk.com and SEDAR at www.sedar.com.
Advisories
This press release is for informational purposes only and is not intended to and does not constitute, or form any part of, an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities in any jurisdiction, nor shall there be any sale or issuance of securities in any jurisdiction in contravention of applicable law or regulation. In particular, this press release is not an offer of securities for sale in
Oil and Gas Disclosure
The term "boe" may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas per barrel of oil (6 mcf:1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and do not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from an energy equivalency of 6:1, utilizing a conversion ratio of 6:1 may be misleading as an indication of value.
Readers should review the estimates of individual classes of reserves and appreciate the differing probabilities of recovery associated with each class as explained under the heading "Glossary, Selected Abbreviations and Selected Conversions" in Appendix "A" of the Company's AIF.
In this press release, "light oil" refers to light and medium crude oil, "heavy oil" refers to heavy crude oil and "natural gas" refers to conventional natural gas, in each case as defined in NI 51-101.
Forward looking information
Certain information set forth in this news release contains forward-looking information and statements including, without limitation, management's business strategy, management's assessment of future plans and operations. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "project", "potential" or similar words suggesting future outcomes or statements regarding future performance and outlook. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company.
In particular, this news release contains forward-looking statements pertaining to the following:
- the timing for bringing the Company's second
Duvernay horizontal well from the existing 9-07 pad online; - the timing for having initial test results from recently released Placid wells;
- the timing for bringing the Company's four
Duvernay horizontal wells on pad 4-34 online; - the timing for publishing the Company's upstream emissions intensity and GH reduction strategy;
- the Company's 2022 capital expenditures budget and allocations thereof, related drilling and project development plans and the effects thereof;
- 2022 and 2023 production guidance;
- the Company's 2022 operational and financial guidance;
- the timing for the Company's first solar and Firm Renewable projects reaching FID; and
- the estimates of reserves and future net revenue related thereto.
In addition to other factors and assumptions that may be identified in this news release, assumptions have been made regarding, among other things:
- the timing and costs of the Company's capital projects;
- the impact of increasing competition;
- the general stability of the economic and political environment in which the Company operates;
- the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner;
- future commodity and power prices;
- currency, exchange and interest rates;
- the regulatory framework regarding royalties, taxes, power, renewable and environmental matters in the jurisdictions in which the Company operates; and
- the ability of the Company to successfully market its products.
Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements as the Company can give no assurance that such expectations will prove to be correct.
Forward-looking statements or information involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include, among other things:
- the ability of management to execute its business plan;
- general economic and business conditions;
- the risk of instability affecting the jurisdictions in which the Company operates;
- the risks of the power and renewable industries;
- operational and construction risks associated with certain projects;
- the possibility that government policies or laws may change or governmental approvals may be delayed or withheld;
- uncertainty involving the forces that power certain renewable projects;
- the Company's ability to enter into or renew leases;
- potential delays or changes in plans with respect to power and solar projects or capital expenditures;
- fluctuations in commodity and power prices, foreign currency exchange rates and interest rates;
- risks inherent in the Company's marketing operations, including credit risk;
- health, safety, environmental and construction risks;
- risks associated with existing and potential future lawsuits and regulatory actions against the Company;
- uncertainties as to the availability and cost of financing; and
- financial risks affecting the value of the Company's investments.
Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.
The forward-looking statements and information contained in this news release speak only as of the date of this news release and the Company undertakes no obligation to publicly update or revise any forward-looking statements or information, except as expressly required by applicable securities laws.
Non-GAAP Measures
This news release contains measures that do not have a standardized meaning under generally accepted accounting principles ("GAAP") and therefore may not be comparable to similar measures presented by other entities. These performance measures presented in this document should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP and should be read in conjunction with the consolidated financial statements of the Company. Readers are cautioned that these non-GAAP measures do not have any standardized meanings and should not be used to make comparisons between Kiwetinohk and other companies without also taking into account any differences in the method by which the calculations are prepared.
Please refer to the Corporation's MD&A as at and for the three and twelve months ended
Future-Oriented Financial Information
Financial outlook and future-oriented financial information contained in this press release about prospective financial performance, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. In particular, this press release contains expected adjusted funds flow, return on capital employed, capital costs of the Company's proposed power generation capital projects, forecast economics of the Company's oil and gas assets and 2022 financial outlook information for the Company, including expected royalty rates, operating costs, transportation expenses, corporate G&A expenses, cash taxes, adjusted funds flow from (used in) operations, and net debt per adjusted funds flow from (used in) operations. These projections contain forward-looking statements and are based on a number of material assumptions and factors set out above and are provided to give the reader a better understanding of the potential future performance of the Company in certain areas. Actual results may differ significantly from the projections presented herein. These projections may also be considered to contain future oriented financial information or a financial outlook. The actual results of the Company's operations for any period will likely vary from the amounts set forth in these projections, and such variations may be material. See above and "Risk Factors" in the Company's AIF published on the Company's profile on SEDAR at www.sedar.com for a further discussion of the risks that could cause actual results to vary. The future oriented financial information and financial outlooks contained in this press release have been approved by management as of the date of this press release. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein.
Abbreviations | |
$/bbl | dollars per barrel |
$/boe | dollars per barrel equivalent |
$MM | millions of dollars |
bbl/d | barrels per day |
boe | barrel of oil equivalent, including crude oil, condensate, natural gas liquids, and natural gas (converted on the basis of one boe per six mcf of natural gas) |
HH | |
Mbbl/d | millions of barrels per day |
Mboe/d | millions of barrels of oil equivalent per day |
Mcf/d | thousand cubic standard feet per day |
MMboe | million barrels of oil equivalent |
MMBtu | million British thermal units |
MMcf/d | million cubic feet per day |
WTI | West Texas Intermediate |
FOR MORE INFORMATION ON KIWETINOHK, PLEASE CONTACT:
IR phone: (587) 392-4395
IR email: IR@kiwetinohk.com
Address: Suite 1900, 250 - 2 Street S.W.
SOURCE
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