Hemisphere Energy (HME) Q4 2024 earnings summary

Executive summary

• Achieved record annual production of 3,436 boe/d (99% heavy oil), up 10% year-over-year.

• Annual revenue rose 18% to $99.9 million, with adjusted funds flow from operations (AFF) up 16% to $45.8 million.

• Distributed over $21 million to shareholders via dividends and share buybacks, including $9.8 million in base dividends and $5.9 million in special dividends.

• Ended 2024 with positive working capital of $6.4 million, up from $3.6 million at prior year-end.

Financial highlights

• Net income for 2024 was $33.1 million, up from $24.2 million in 2023.

• Free funds flow increased 6% to $23.9 million; capital expenditures totaled $21.9 million.

• Operating and transportation costs were $15.60/boe; operating netback was $47.59/boe for the year.

• Average sales price for heavy oil was $79.89/bbl in 2024, up from $74.53/bbl in 2023.

• Cash provided by operating activities reached $46.5 million for the year.

Outlook and guidance

• Q1 2025 field estimated production increased to 3,800 boe/d (99% heavy oil) despite no new wells since Q3 2024.

• Announced a special dividend of C$0.03 per share to be paid April 28, 2025.

• 2025 budget is highly flexible with minimal capital spending planned until summer.

• Strong balance sheet and low decline assets position the company to withstand oil market volatility.