Pieridae generated Net Operating Income ('NOI') of
In addition, the Company filed its Annual Information Form ('AIF') for the year ended
containing Pieridae's 2023 independent oil and natural reserves evaluation as required under National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities ('NI 51-101'). Pieridae's 2023 NI 51-101 Proved Developed Producing ('PDP') PV10 value is
The Company's AIF, management's discussion and analysis ('MD&A') and audited consolidated financial statements and notes for the year ended
'During 2023 we successfully refinanced and reduced our long-term debt, safely completed crucial facility maintenance, drilled two Foothills development wells, reduced our G&A costs and generated strong NOI,' said Pieridae's President and Chief Executive Officer,
ANNUAL HIGHLIGHTS
Generated NOI [1] of
Selected 2023 Reserve Highlights
Reserve Life Index ('RLI') increased from 19.8 years in 2022 to 20.4 years; 2024 forecasted PDP base decline has improved to 5.4%, from 8.5% in 2022 and Sales volumes and operating cost improvements reflected in 2024 and beyond recognize demonstrated fuel gas consumption reductions.
Refer to the Company's AIF for the year ended
Q4 2023 HIGHLIGHTS
Generated NOI [1] of
Forward natural gas prices have continued to weaken, particularly over the recent months, as global demand stagnates through a warmer-than-normal winter season resulting in record storage levels and oversupply. Pieridae's robust hedge position will continue to partially mitigate the lower expected natural gas prices through 2024.
Production in the
Pieridae has hedged approximately 65% of its expected 2024 natural gas production at approximately
Sulphur prices have also fallen year-to-date reflecting weakening global sulphur demand. Pieridae's exposure to the sulphur market is limited for the next 21 months as we sell approximately 80% of our produced sulphur at a fixed price to a third party through the end of 2025.
Pieridae's 2024 capital budget is highlighted by low-cost well and facility optimization projects and the second and final phase of the maintenance turnaround at the Waterton deep-cut, sour gas processing facility, which is currently scheduled for the third quarter. The production outage in the Waterton field associated with the turnaround is planned for approximately 4 weeks and is accounted for in our 2024 production guidance estimates. Pieridae owns and operates three major gas processing facilities which each require periodic maintenance turnarounds on a five-to-six-year cycle.
The scope and timing of all capital projects continues to be scrutinized in the context of lower year-to-date natural gas prices. Pieridae does not intend to resume its foothills development drilling program until the natural gas price outlook improves.
While debt reduction remains a top priority for 2024, the ability to repay revolving debt in 2024 may be impacted by low commodity prices and non-discretionary maintenance capital projects. Pieridae expects to draw down the final
Pieridae's previously announced
HEDGE POSITION
Pieridae hedges to mitigate commodity price, interest rate and foreign exchange volatility to protect the cash flow required to fund the Company's operations, capital requirements and debt service obligations, while allowing the Company to participate in future commodity price upside. Pieridae continues to execute its risk management program governed by its hedge policy and in compliance with the thresholds required by the senior loan facilities. As of
CONFERENCE CALL DETAILS
A conference call and webcast to discuss the results will be held on
ABOUT PIERIDAE
Pieridae is a Canadian energy company headquartered in
Contact:
Tel: (403) 261-5900
Tel: (403) 261-5900
Investor Relations
Email: investors@pieridaeenergy.com
Forward-Looking Statements
Certain of the statements contained herein including, without limitation, management plans and assessments of future plans and operations, Pieridae's outlook, strategy and vision, intentions with respect to future acquisitions, dispositions and other opportunities, including exploration and development activities, Pieridae's ability to market its assets, plans and timing for development of undeveloped and probable resources, Pieridae's goals with respect to the environment, relations with Indigenous people and promoting equity, diversity and inclusion, estimated abandonment and reclamation costs, plans regarding hedging, plans regarding the payment of dividends, wells to be drilled, the weighting of commodity expenses, expected production and performance of oil and natural gas properties, results and timing of projects, access to adequate pipeline capacity and third-party infrastructure, growth expectations, supply and demand for oil, natural gas liquids and natural gas, industry conditions, government regulations and regimes, capital expenditures and the nature of capital expenditures and the timing and method of financing thereof, may constitute 'forward-looking statements' or 'forward-looking information' within the meaning of applicable securities laws (collectively 'forward-looking statements'). Words such as 'may', 'will', 'should', 'could', 'anticipate', 'believe', 'expect', 'intend', 'plan', 'continue', 'focus', 'endeavor', 'commit', 'shall', 'propose', 'might', 'project', 'predict', 'vision', 'opportunity', 'strategy', 'objective', 'potential', 'forecast', 'estimate', 'goal', 'target', 'growth', 'future', and similar expressions may be used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management.
Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, the risks associated with oil and gas exploration, development, exploitation, production, processing, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of resources estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals, ability to access sufficient capital from internal and external sources and the risk factors outlined under 'Risk Factors' and elsewhere herein. The recovery and resources estimate of Pieridae's reserves provided herein are estimates only and there is no guarantee that the estimated resources will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.
Forward-looking statements are based on a number of factors and assumptions which have been used to develop such forward-looking statements, but which may prove to be incorrect. Although Pieridae believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because Pieridae can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Pieridae operates; the timely receipt of any required regulatory approvals; the ability of Pieridae to obtain and retain qualified staff, equipment and services in a timely and cost efficient manner; the ability of the operator of the projects which Pieridae has an interest in to operate the field in a safe, efficient and effective manner; the ability of Pieridae to obtain financing on acceptable terms; the ability to replace and expand oil and natural gas resources through acquisition, development and exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of Pieridae to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Pieridae operates; timing and amount of capital expenditures; future sources of funding; production levels; weather conditions; success of exploration and development activities; access to gathering, processing and pipeline systems; advancing technologies and the ability of Pieridae to successfully market its oil and natural gas products.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Pieridae's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca), and at Pieridae's website (www.pieridaeenergy.com).
Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and Pieridae assumes no obligation to update or review them to reflect new events or circumstances except as required by applicable securities laws.
Forward-looking statements contained herein concerning the oil and gas industry and Pieridae's general expectations concerning this industry are based on estimates prepared by management using data from publicly available industry sources as well as from reserve reports, market research and industry analysis and on assumptions based on data and knowledge of this industry which Pieridae believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While Pieridae is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors.
Additional Reader Advisories
Barrels of oil equivalent ('boes') may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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