Hemisphere Energy (HME) Q3 2024 earnings summary

Executive summary

• Q3 2024 production reached 3,621 boe/d (99% heavy oil), up 18% year-over-year.

• Quarterly revenue was $26.7 million, a 10% increase from Q3 2023.

• Eight new wells drilled in Atlee Buffalo and a new facility constructed in Marsden.

• Special and base dividends totaling $5.4 million paid in Q3, with another special dividend paid in October.

• Renewed NCIB and repurchased 756,400 shares.

Financial highlights

• Operating netback for Q3 was $15.4 million or $46.24/boe.

• Adjusted funds flow from operations (AFF) was $11.7 million or $35.17/boe.

• Free funds flow for Q3 was $1.8 million after $9.9 million in capital expenditures.

• Net income for Q3 was $2.9 million, with basic and diluted EPS of $0.09.

• Positive working capital position of $6.5 million at quarter-end.

Outlook and guidance

• Annual 2024 production expected to align with prior guidance despite anticipated lower Q4 production due to maintenance.

• At least two new wells to be converted to injectors to support reservoir pressure.

• 2025 guidance details to be released in January.