Journey Energy (JOY) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales volumes averaged 11,235 boe/d, with 55% oil and liquids, impacted by turnarounds and a royalty divestment.

• Adjusted Funds Flow was $9.5 million ($0.15 per basic share), down 16% year-over-year, mainly due to lower natural gas prices and higher operating costs.

• Net loss for Q2 was $2.3 million ($0.04 per share), compared to a $1.8 million loss in Q2 2023.

• Major capital projects include the Gilby power generation asset and a Duvernay joint venture with Spartan Delta Corp.

Financial highlights

• Q2 2024 sales revenue was $50.5 million, down 6% year-over-year.

• Adjusted Funds Flow for Q2 was $9.5 million, down from $11.3 million in Q2 2023.

• Cash flow from operations was $8.3 million, a 33% decrease year-over-year.

• Net debt reduced to $55.5 million at June 30, 2024, from $60.1 million at March 31, 2024.

• Capital expenditures in Q2 were $4.7 million, down 76% year-over-year.

Outlook and guidance

• 2024 sales volume guidance reduced to 11,200–11,500 boe/d (56% crude oil & NGLs) from 11,500–12,000 boe/d.

• Adjusted Funds Flow guidance lowered to $60–62 million for 2024, with capital spending expected at $48 million.

• Net debt to Adjusted Funds Flow ratio forecasted at 0.8x for year-end 2024.

• 2025 outlook anticipates higher revenues from power assets, improved natural gas pricing, and Duvernay development.