NG Energy International (GASX) Q3 2024 earnings summary

Executive summary

• Achieved quarterly revenue of US $9.1 million, a 270% increase year-over-year compared to Q3 2023, and YTD revenue of US $29.5 million.

• Cash flow from operations reached US $6.3 million for the quarter and US $16.2 million YTD.

• Successfully completed key infrastructure at Sinu-9, enabling field production and regional diversification.

• Appointed new President and VP of Operations, and completed a C$30 million equity financing.

Financial highlights

• Quarterly funds flow from operations was US $3.7 million, up from negative US $1.8 million in Q3 2023; YTD FFO was US $13.7 million.

• Record realized average natural gas pricing of US $8.07/Mcf during the quarter.

• Operating netback improved to US $5.45/Mcf from US $1.92/Mcf in Q3 2023.

• Average gross production was 15.0 MMcf/d (12.0 MMcf/d net).

Outlook and guidance

• Anticipates ramp-up of Sinu-9 production in Q4, expected to drive further financial growth.

• Plans to increase total capacity to up to 25 MMcf/d at Maria Conchita with Aruchara-4 drilling in Q1 2025.

• Expects >150% production increase exiting 2024 and triple-digit production growth over the next 2-3 years.