Logan Energy (LGN) Q2 2024 earnings summary

Executive summary

• Q2 production rose 45% YoY to 7,277 BOE/d, with liquids mix increasing to 36%; Adjusted Funds Flow grew 178% to $8.7 million.

• $46.1 million of Q2 capital spending advanced development; a $75.0 million borrowing base and executive promotions followed the quarter.

Financial highlights

• Q2 oil and gas sales were $26.5 million, up 94% YoY; net income was $0.4 million versus a $3.9 million loss in Q2 2023.

• H1 sales rose 56% YoY to $51.0 million; net loss narrowed to $1.6 million from $34.5 million.

• Q2 cash from operating activities was $3.4 million, up 17% YoY; Adjusted Funds Flow was $8.7 million versus $3.1 million.

• Capital expenditures before A&D were $46.1 million in Q2 and $81.3 million in H1, versus $5.4 million and $6.3 million, respectively, in 2023.

Outlook and guidance

• H2 2024 average production is expected to exceed 10,000 BOE/d; annual production guidance remains approximately 8,700 BOE/d or higher.

• H2 operating costs are forecast at $10.00–$10.50/BOE, with the calendar-year average expected to remain in line with guidance as production scales.

• Drilling is planned to resume in Q4 for the 2025 program.