Arrow Exploration (AXL) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly results in Q3 2024 for production, revenue, EBITDA, and cash flow.

• Drilled and brought online multiple successful horizontal wells in the Carrizales Norte field, expanding development potential.

• Net corporate production reached approximately 5,500 BOE/D post-period, with ongoing optimization.

Financial highlights

• Q3 2024 revenue (net of royalties) was $21.3 million, up 53% year-over-year from $13.9 million.

• Net income for Q3 2024 was $6.7 million.

• Adjusted EBITDA for Q3 2024 was $15.96 million, a 62% increase year-over-year and 79% sequentially from Q2 2024.

• Operating cash flows for the nine months ended September 30, 2024, totaled $29.2 million, up from $13.9 million in 2023.

• Cash position at quarter-end was $16.5 million, increasing to $19 million by November 1, 2024.

Outlook and guidance

• Plans to drill up to 23 wells in 2025, focusing on both development and low-risk exploration.

• 2025 capital expenditures budgeted at approximately $50 million, expected to drive significant production growth.

• Upcoming drilling includes the Alberta Llanos prospect and further horizontal development at Carrizales Norte.