Lycos Energy (LCX) Q3 2024 earnings summary

Executive summary

• Q3 2024 production averaged 4,836 boe/d (98% crude oil), up 59% year-over-year; exit September production was 5,306 boe/d.

• Adjusted funds flow from operations reached $17.0 million, a 57% increase from Q3 2023.

• Operating netback including financial derivatives was $42.11/boe, stable despite lower pricing due to reduced net operating expenses.

• Capital expenditures totaled $17.3 million, with 7 multi-lateral wells brought on stream and investments in gas handling infrastructure.

Financial highlights

• Total petroleum and natural gas sales were $34.0 million, up 41% year-over-year for Q3 2024.

• Net income for Q3 2024 was $7.0 million, a 65% increase from Q3 2023.

• Net operating expenses decreased 18% to $22.08/boe; G&A expense dropped 33% to $2.89/boe.

• Exit net debt was $31.7 million, with a net debt to adjusted funds flow ratio of 0.5x.

Outlook and guidance

• 2024 annual average production guidance revised to 4,500 boe/d (99% oil) due to temporary shut-in and commodity price volatility.

• Updated 2024 capital expenditures forecast at $67.6 million; adjusted funds flow from operations at $59.0 million.

• Year-end net debt expected at $27.3 million, with a net debt to adjusted funds flow ratio of 0.5x.

• Shut-in production of 810 boe/d expected to return in Q1 2025.

• Guidance based on WTI US$75.74/bbl, WCS differential US$14.76, CAD/USD 1.36.