Seacrest Petroleo Bermuda (SEAPT) Q3 2024 (Q&A) earnings summary

Executive summary

• Q3 2024 production averaged 6,843 boepd, down 14% sequentially due to temporary ANP-mandated site modifications, with current production at 6,750 barrels per day and projections to maintain 6,800 barrels per day by year-end, pending new CapEx inflows.

• Drilling campaigns have added 10 new wells, with three already producing and the remainder awaiting completion pending CapEx availability; all drilled on time and on budget.

• Q3 2024 saw a net loss of USD 35.8 million, reversing a net profit of USD 5.5 million in Q2, driven by lower production, reduced realized prices, and higher costs.

• The company is finalizing a farm-down deal and minority investment, expected to close within the year, which will significantly improve net debt and liquidity.

• No serious incidents reported during the quarter, though a steam leak incident in October caused minor environmental impact and was remediated.

Financial highlights

• Q3 revenue was USD 41.7 million, down 11.7% from Q2 2024, impacted by a USD 1.1 million realized hedging loss.

• EBITDA was negative USD 8.9 million; cash flow from operations improved to USD 8.5 million.

• Net debt position is expected to improve substantially after the farm-down transaction, with ongoing discussions to adjust bank covenants.

• Liquidity is being managed through forbearance agreements with banks and the release of a USD 9.8 million debt service reserve account.

• Production cost per boe rose to USD 28.3 in Q3 2024, up from USD 26.2 in Q2.

Outlook and guidance

• 2024 average production guidance is 6,800–6,900 bopd; total production (including gas) is 7,500–7,600 boepd, with exit rate now ~7,400 boepd.

• Production is expected to increase to approximately 7,800–7,900 barrels per day once all drilled wells are completed, achievable within eight weeks after CapEx is received.

• Production cost guidance is USD 24–28 per boe for 2024; capex guidance reduced to USD 38 million due to funding pause.

• No formal production or CapEx guidance for 2025 or 2027 has been issued yet, but operational plans and licensing are in place to support future growth.

• Capex, wells drilled, and production guidance reduced pending completion of funding plan.