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% sequentially.

• Net income for Q2 2024 was $10.2 million ($0.19/share), compared to $36 thousand in Q2 2023.

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

Financial highlights

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

• Adjusted funds flow from operations for Q2 2024 was $18.0 million ($0.34/share diluted).

• Net income for Q2 2024 was $10.2 million ($0.19/share basic and diluted).

• Capital expenditures for Q2 2024 were $21.3 million, up 79% year-over-year.

• Exit net debt was $30.6 million, representing 0.4x net debt to annualized adjusted funds flow.

Outlook and guidance

• 2024 guidance targets annual average production of 4,800 boe/d (99% oil) and Q4 2024 average of 5,700 boe/d.

• Capital expenditures for 2024 are forecast at $66.0 million, with adjusted funds flow from operations of $65.8 million.

• Year-end 2024 net debt to adjusted funds flow from operations ratio expected at 0.3x.