Logan Energy (LGN) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly average production of 9,942 BOE/d (35% liquids), up 84% year-over-year, driven by new wells at Pouce Coupe and South Simonette.

• Adjusted Funds Flow reached $17.6 million ($0.04/share, diluted), a 242% increase from Q3 2023.

• Net income for Q3 2024 was $6.3 million, reversing a net loss of $10.7 million in Q3 2023.

• Expanded Duvernay land position with acquisition of 35.5 net sections at Two Creeks, adding 34 net drilling locations.

Financial highlights

• Oil and gas sales for Q3 2024 were $30.5 million, up 75% year-over-year.

• Operating Netback after hedging averaged $21.35/BOE, up 95% from Q3 2023.

• Operating expenses decreased 39% to $9.58/BOE compared to Q3 2023.

• Capital expenditures before A&D were $31.4 million for Q3 2024.

• Net Debt stood at $35.1 million as of September 30, 2024.

Outlook and guidance

• 2024 annual production guidance of ~8,700 BOE/d is under pressure due to shut-ins and project deferrals, but annual Adjusted Funds Flow guidance remains intact.

• Monitoring commodity prices and may reallocate 2025 capital to more liquids-rich opportunities.