Lycos Energy (LCX) Q4 2024 earnings summary

Executive summary

• Achieved 11% year-over-year production growth in Q4 2024, averaging 4,570 boe/d (97% crude oil), despite 310 boe/d shut-in due to gas egress issues.

• Adjusted funds flow from operations rose 27% to $14.4 million in Q4 2024 and 85% to $59.0 million for the year.

• Maintained a strong balance sheet with a net debt to adjusted funds flow ratio of 0.3x at year-end.

• 100% drilling success rate in the Mannville Stack, with significant reserves growth and a new pool discovery at Moose Lake.

Financial highlights

• Total petroleum and natural gas sales (net of blending) increased 62% year-over-year to $123.7 million.

• Net income for 2024 was a loss of $0.9 million, impacted by a non-cash loss on disposals of $22.2 million.

• Operating netback per boe rose 23% year-over-year to $40.04.

• Realized crude oil prices increased 11% to $76.76/bbl, while natural gas prices declined 65% to $0.81/mcf.

• Capital expenditures for exploration and development totaled $67.8 million, with net acquisitions/dispositions at $56.8 million.

Outlook and guidance

• Capital expenditures program temporarily suspended over spring break-up due to commodity price volatility; 2025 budget remains unchanged.

• Q1 2025 drilling program deemed successful, with 9 gross (8.91 net) multi-lateral wells drilled and 7 on production.

• Estimated addition of over 70 wells to inventory from Q1 2025 program.