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, with exit production at 5,306 boe/d.

• Adjusted funds flow from operations rose 57% to $17.0 million in Q3 2024, and net income increased to $3.7 million from $1.7 million in Q3 2023.

• Net operating expenses per boe fell 18% to $22.08, and G&A expenses per boe dropped 33% to $2.89.

• Capital expenditures totaled $17.3 million in Q3, with 7.0 multi-lateral wells drilled and brought on stream.

Financial highlights

• Q3 2024 petroleum and natural gas sales, net of blending, were $33.9 million, up 41% year-over-year.

• Cash flow from operating activities increased 162% to $19.8 million in Q3 2024.

• Net income for Q3 2024 was $3.7 million ($0.07/share), up from $1.7 million ($0.04/share) in Q3 2023.

• Adjusted working capital (net debt) at quarter-end was $31.7 million, with a net debt to annualized adjusted funds flow ratio of 0.5x.

• Realized crude oil price was $77.96/bbl, down 10% year-over-year; operating netback per boe was $42.11.

Outlook and guidance

• 2024 annual average production guidance revised to 4,800 boe/d (99% oil), with capital expenditures of $66.0 million.

• Year-end 2024 net debt expected at $27.3 million, with a net debt to adjusted funds flow ratio of 0.5x.

• Capital expenditures to be funded through operating cash flow and a $50 million credit facility.