Seacrest Petroleo Bermuda (SEAPT) Q3 2024 earnings summary

Executive summary

• Drilled 10 new infill wells on schedule and on budget, with production averaging 6,843 boepd, down 14% sequentially due to regulatory-driven site modifications.

• Q3 2024 saw a net loss of USD 35.8 million, reversing a Q2 profit, with negative EBITDA of USD 8.9 million and improved cash flow from operations to USD 8.5 million.

• Strong drilling execution de-risked a 300-well program, with average drilling time of 4.2 days per well.

• No serious incidents reported, though a steam leak at a new well in October caused minor environmental impact and was remediated.

• Focus remains on strengthening capital structure through refinancing and new funding initiatives.

Financial highlights

• Q3 2024 revenues were USD 41.7 million, down 11.7% from Q2, with realized oil price at USD 60.7/bbl and a $1.1 million realized hedging loss.

• Production cost per boe rose 8% sequentially to USD 28.3, driven by lower volumes.

• Capex for Q3 was USD 17.1 million, reflecting increased drilling and workover activity.

• Free cash flow was negative USD 8.6 million, and cash at quarter-end was USD 18.5–19 million.

• Quarterly loss per share was negative USD 0.0999.

Outlook and guidance

• 2024 production guidance reduced to 7,500–7,600 boepd, with an exit rate of 7,400 boepd and production cost guidance of USD 24–28/boe.

• Capex guidance cut to USD 38 million due to funding delays; infill drilling paused for the rest of 2024, expected to resume in Q1 2025 if capital is available.

• Company aims to more than triple production over three years, contingent on successful execution of drilling and financing plans.