Lycos Energy (LCX) Q2 2024 earnings summary

Executive summary

• Q2 2024 production averaged 4,648 boe/d (99% crude oil), up 60% year-over-year and 21% sequentially from Q1 2024.

• Adjusted funds flow from operations reached a record $18.0 million, up 157% year-over-year and 88% from Q1 2024.

• Operating netback including financial derivatives was $46.79/boe, up 51% year-over-year and 49% sequentially.

• Net operating expenses decreased 7% year-over-year and 11% sequentially to $22.66/boe.

• Capital expenditures totaled $21.3 million in Q2, with 10.0 multi-lateral wells drilled and 11.0 wells brought on stream.

Financial highlights

• Total petroleum and natural gas sales (net of blending) were $35.6 million in Q2 2024, up 104% year-over-year.

• Net income was $10.2 million in Q2 2024, a significant increase from $36,000 in Q2 2023.

• Adjusted working capital (net debt) at quarter-end was $(30.6) million, up 196% year-over-year.

• Net debt to annualized adjusted funds flow from operations ratio was 0.4x at Q2 2024 exit.

• Realized crude oil price was $84.85/bbl, up 29% year-over-year; natural gas price was $0.21/mcf, down 90%.

Outlook and guidance

• Plans to drill 10 gross (10 net) wells in H2 2024 on proven lands and test four new horizons across two strike areas.

• Success in new horizons could add 20 additional drilling locations to inventory.

• Continues to expand land position through Crown purchases and leasing, replacing 77% of inventory drilled in 2024.