Journey Energy (JOY) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 sales volumes of 11,152 boe/d (47% crude oil, 9% NGLs, 44% natural gas), with 56% oil and liquids overall.

• Adjusted Funds Flow was $13.6 million ($0.22 per basic share), down 28% year-over-year but up sequentially from Q2 2024.

• Net income for Q3 was $0.6 million ($0.01 per share), a 92% decrease year-over-year.

• Net debt reduced to $52.7 million, a 15% decrease from year-end 2023.

• Continued progress on Gilby and Mazeppa power projects, with substantial completion expected in Q1 2025.

Financial highlights

• Q3 2024 sales revenue was $47.0 million, down 18% year-over-year.

• Adjusted Funds Flow for Q3 was $13.6 million, down 28% year-over-year but up from $9.5 million in Q2 2024.

• Cash flow from operations was $6.2 million, down 46% year-over-year.

• Capital expenditures in Q3 were $8.1 million, with total capital spending expected to rise in Q4.

• Realized prices: natural gas $0.51/mcf (down 79%), crude oil $85.45/bbl (down 10%), NGLs $46.10/bbl (up 2%).

Outlook and guidance

• 2024 production guidance maintained at 11,200–11,400 boe/d (56% crude oil & NGLs).

• Adjusted Funds Flow guidance lowered to $53–55 million due to weaker commodity prices.

• Capital spending for 2024 expected at $48 million; year-end net debt forecasted at $52–54 million.

• Net debt to Adjusted Funds Flow ratio projected at 1.0x for year-end 2024.