Delphi Energy Corp. (“Delphi” or the
“Company”) is pleased to announce three new
candidates to join Delphi’s Board of Directors (the
“
Board”). Glenn Hamilton, Peter T. Harrison and
Ian Wild will be proposed for election at Delphi’s Annual General
Meeting (“
AGM”) on May 18th, 2017. All current
Board members will be standing for re-election at the AGM. Adding
these individuals will increase the Board to nine and fills the
three vacancies on the Board.
“Glenn, Peter and Ian bring tremendous depth to
our Board with their extensive experience in oil and gas
accounting, finance, banking and investment,” said David J. Reid,
President and CEO. “As Delphi prepares to accelerate our production
in 2017 and beyond, we are excited to have the benefit of their
experience and to expand the Board to support our growth.”
- Glenn Hamilton After 19 years, Mr. Hamilton
recently retired from Bonavista Energy Corporation, where he had
been Senior Vice President and Chief Financial Officer. Glenn has
over 35 years of experience in accounting and finance in the oil
and gas industry. He is a Chartered Professional
Accountant and with his expertise and his experience, it is
anticipated that he will Chair the Audit Committee of the
Board.
- Peter T. Harrison Mr. Harrison is currently
the Manager of Oil and Gas Investments at CN’s Investment Division.
He has over 40 years’ experience in the investment industry, has
managed multi-billion dollar equity portfolios and is well known in
the oil and gas investment sector. Mr. Harrison is a Chartered
Financial Analyst and has an MBA from the University of Western
Ontario. It is anticipated that Mr. Harrison will serve on the
Audit Committee of the Board.
- Ian Wild Mr. Wild has recently retired from
his position as Executive Vice President with ATB Corporate
Financial Services. He currently chairs the Board of Directors
for the Canadian Global Affairs Institute, the Financial Sector
Advisory Committee for Calgary Economic Development and is a
Strategic Advisor to AltaCorp Capital. He has over 35 years’
experience in Corporate Finance, International and Investment
Banking. He holds an A.I.C.B. from The Chartered
Institute of Bankers (UK) and an I.C.D. designation from the
Institute of Directors. It is anticipated that he will serve on the
Reserves Committee of the Board.
In addition it is planned that Harry S.
Campbell, QC will be appointed as Board Chair following his
election at the AGM. Mr. Campbell has been a member of the Delphi
Board since 2000, serving on the Audit Committee and the Corporate
Governance and Compensation Committee. From 2011-2016, he served as
Chair of Burnet, Duckworth & Palmer LLP.
Delphi’s AGM will be held in the Devonian Room
at the Calgary Petroleum Club at 3:00pm MST on Thursday, May 18,
2017.
About Delphi Energy Corp.
Delphi Energy Corp. is an industry-leading
producer of liquids-rich natural gas. The Company has
achieved top decile results through the development of our high
quality Montney property, uniquely positioned in the Deep Basin of
Bigstone, in northwest Alberta. Delphi continues to outperform key
industry players by improving operational efficiencies and growing
our dominant Bigstone land position in this world-class play.
Delphi is headquartered in Calgary, Alberta and trades on the
Toronto Stock Exchange under the symbol DEE.
Forward-Looking
Statements. This news release contains
forward-looking statements and forward-looking information within
the meaning of applicable Canadian securities laws. These
statements relate to future events or the Company’s future
performance and are based upon the Company’s internal assumptions
and expectations. All statements other than statements of
present or historical fact are forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of any of the words “expect”, “anticipate”, “continue”,
“estimate”, “may”, “will”, “should”, “believe”, "intends”,
“forecast”, “plans”, “guidance”, “budget” and similar
expressions.
More particularly and without limitation, this
release contains forward-looking statements and information
relating to petroleum and natural gas production estimates and
weighting, projected crude oil and natural gas prices, future
exchange rates, expectations as to royalty rates, expectations as
to transportation and operating costs, expectations as to general
and administrative costs and interest expense, expectations as to
capital expenditures and net debt, planned capital spending, future
liquidity and Delphi’s ability to fund ongoing capital requirements
through operating cash flows and its credit facilities, supply and
demand fundamentals for oil and gas commodities, timing and success
of development and exploitation activities, cash availability for
the financing of capital expenditures, access to third-party
infrastructure, treatment under governmental regulatory regimes and
tax laws and future environmental regulations.
Furthermore, statements relating to “reserves”
are deemed to be forward-looking statements as they involve the
implied assessment, based on certain estimates and assumptions that
the reserves described can be profitable in the future.
The forward-looking statements and information
contained in this release are based on certain key expectations and
assumptions made by Delphi. The following are certain
material assumptions on which the forward-looking statements and
information contained in this release are based: the stability of
the global and national economic environment, the stability of and
commercial acceptability of tax, royalty and regulatory regimes
applicable to Delphi, exploitation and development activities being
consistent with management’s expectations, production levels of
Delphi being consistent with management’s expectations, the absence
of significant project delays, the stability of oil and gas prices,
the absence of significant fluctuations in foreign exchange rates
and interest rates, the stability of costs of oil and gas
development and production in Western Canada, including operating
costs, the timing and size of development plans and capital
expenditures, availability of third party infrastructure for
transportation, processing or marketing of oil and natural gas
volumes, prices and availability of oilfield services and equipment
being consistent with management’s expectations, the availability
of, and competition for, among other things, pipeline capacity,
skilled personnel and drilling and related services and equipment,
results of development and exploitation activities that are
consistent with management’s expectations, weather affecting
Delphi’s ability to develop and produce as expected, contracted
parties providing goods and services on the agreed timeframes,
Delphi’s ability to manage environmental risks and hazards and the
cost of complying with environmental regulations, the accuracy of
operating cost estimates, the accurate estimation of oil and gas
reserves, future exploitation, development and production results
and Delphi’s ability to market oil and natural gas successfully to
current and new customers. Additionally, estimates as to expected
average annual production rates assume that no unexpected outages
occur in the infrastructure that the Company relies on to produce
its wells, that existing wells continue to meet production
expectations and any future wells scheduled to come on in the
coming year meet timing and production expectations.
Commodity prices used in the determination of
forecast revenues are based upon general economic conditions,
commodity supply and demand forecasts and publicly available price
forecasts. The Company continually monitors its forecast
assumptions to ensure the stakeholders are informed of material
variances from previously communicated expectations.
Financial outlook information contained in this
release about prospective results of operations, financial position
or cash flows is based on assumptions about future events,
including economic conditions and proposed courses of action, based
on management’s assessment of the relevant information currently
available. Readers are cautioned that such financial outlook
information contained in this release should not be used for
purposes other than for which it is disclosed.
Although the Company believes that the
expectations reflected in such forward-looking statements and
information are reasonable, it can give no assurance that such
expectations will prove to be correct and such forward-looking
statements should not be unduly relied upon. Since forward-looking
statements and information address future events and conditions, by
their very nature they involve inherent known and unknown risks and
uncertainties. Delphi’s actual results, performance or
achievements could differ materially from those expressed in, or
implied by, these forward-looking statements and, accordingly, no
assurance can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what benefits Delphi will derive therefrom. Should one
or more of these risks or uncertainties materialize, or should
assumptions underlying forward-looking statements prove incorrect,
actual results may vary materially from those currently anticipated
due to a number of factors and risks. These include, but are
not limited to, the risks associated with the oil and gas industry
in general such as operational risks in development, exploration
and production, delays or changes in plans with respect to
exploration or development projects or capital expenditures, the
uncertainty of estimates and projections relating to production
rates, costs and expenses, commodity price and exchange rate
fluctuations, marketing and transportation, environmental risks,
competition from others for scarce resources, the ability to access
sufficient capital from internal and external sources, changes in
governmental regulation of the oil and gas industry and changes in
tax, royalty and environmental legislation. Additional
information on these and other factors that could affect the
Company’s operations or financial results are included in the
Company’s most recent Annual Information Form and other reports on
file with the applicable securities regulatory authorities and may
be accessed through the SEDAR website (www.sedar.com).
Readers are cautioned that the foregoing list of
factors is not exhaustive. Furthermore, the forward-looking
statements contained in this release are made as of the date of
this release for the purpose of providing the readers with the
Company’s expectations for the coming year. The
forward-looking statements and information may not be appropriate
for other purposes. Delphi undertakes no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws. The
forward-looking statements contained in this release are expressly
qualified in their entirety by this cautionary statement.
Basis of Presentation.
For the purpose of reporting production
information, reserves and calculating unit prices and costs,
natural gas volumes have been converted to a barrel of oil
equivalent (boe) using six thousand cubic feet equal to one
barrel. A boe conversion ratio of 6:1 is based upon an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the
wellhead. This conversion conforms to the Canadian Securities
Administrators’ National Instrument 51-101 when boes are
disclosed. Boes may be misleading, particularly if used in
isolation.
As per CSA Staff Notice 51-327 initial test results and initial
production performance should be considered preliminary data and
such data is not necessarily indicative of long-term performance or
of ultimate recovery.
Non-IFRS Measures. The
release contains the terms “funds from operations”, “funds from
operations per share”, “net debt”, “net debt to funds from
operations ratio”, “operating netbacks” “cash netbacks” and
“netbacks” which are not recognized measures under IFRS. The
Company uses these measures to help evaluate its performance.
Management considers netbacks an important measure as it
demonstrates its profitability relative to current commodity prices
and costs of production. Management uses funds from operations to
analyze performance and considers it a key measure as it
demonstrates the Company’s ability to generate the cash necessary
to fund future capital investments and to repay debt. Funds from
operations is a non-IFRS measure and has been defined by the
Company as cash flow from operating activities before accretion on
long term and subordinated debt, decommissioning expenditures and
changes in non-cash working capital from operating activities. The
Company also presents funds from operations per share whereby
amounts per share are calculated using weighted average shares
outstanding consistent with the calculation of earnings per share.
Delphi’s determination of funds from operations may not be
comparable to that reported by other companies nor should it be
viewed as an alternative to cash flow from operating activities,
net earnings or other measures of financial performance calculated
in accordance with IFRS. The Company has defined net debt as
the sum of long term debt and subordinated debt plus/minus working
capital excluding the current portion of the fair value of
financial instruments. Net debt is used by management to monitor
remaining availability under its credit facilities. Net debt to
funds from operations ratio is defined as net debt to annualized
quarterly funds from operations, based on the most recently
completed quarter. This ratio is used to calculate the
Company’s compliance with its net debt to funds from operations
ratio covenant. Operating netbacks have been defined as
revenue less royalties, transportation and operating costs.
Cash netbacks have been defined as operating netbacks less interest
and general and administrative costs. Netbacks are generally
discussed and presented on a per boe basis.
FOR FURTHER INFORMATION PLEASE CONTACT:
DELPHI ENERGY CORP.
300, 500 – 4 Avenue S.W.
Calgary, Alberta
T2P 2V6
Telephone: (403) 265-6171 Facsimile: (403) 265-6207
Email: info@delphienergy.ca Website: www.delphienergy.ca
DAVID J. REID
President & CEO