Prairie Provident Resources Inc. ("Prairie Provident", "PPR" or the
"Company") (TSX:PPR) is pleased to announce its operating and
financial results for the three months and year ended December 31,
2017, and to provide an operational update. PPR’s audited
consolidated financial statements ("Annual Financial Statements")
and related Management's Discussion and Analysis ("MD&A") for
the three months and year ended December 31, 2017 and annual
information form dated March 28, 2018 (“AIF”) are available on its
website at www.ppr.ca and filed on SEDAR.
Prairie Provident’s Annual Financial Statements
present the results for the properties owned by Lone Pine Resources
Canada Ltd. (“Lone Pine”) for the period up to September 12, 2016
and for the combination of Lone Pine and Arsenal Energy Inc. after
September 12, 2016. This is a significant factor in understanding
the year-over-year and quarter-over-quarter financial results of
Prairie Provident. This news release contains forward-looking
information and statements and non-IFRS measures. Readers are
cautioned that the news release should be read in conjunction with
the Company’s disclosures under the headings "Forward-Looking
Statements" and "Non-IFRS Measures" included at the end of this
news release.
FOURTH QUARTER 2017
HIGHLIGHTS
- Average production in the fourth quarter was 4,872 boe/d,
compared to 4,845 during the same period in 2016. Excluding
the impact from divesting approximately 400 boe/d non-core
natural-gas weighted producing assets, average production increased
by approximately 9% over the same period in 2016. Continued
weak benchmark natural gas prices in Alberta drove the Company’s
conscious decision to allocate capital resources away from natural
gas opportunities in favour of oil and liquids targets. As a
result of this shift, the Company’s oil and liquids production
weighting increased to 69% for the quarter, compared to 58% for the
same period in 2016.
- Adjusted funds from operations totaled $5.5 million in the
fourth quarter of 2017, a $1.6 million decrease compared to the
same period of 2016, primarily due to higher interest expenses and
lower realized hedging gains.
- Operating netbacks after realized hedging gains were $22.04/boe
in the fourth quarter of 2017, which reflected higher realized
prices, an increased oil and liquids weighting but lower realized
gains on derivative instruments and higher operating costs compared
to $22.32/boe for the same period in 2016.
- Capital expenditures prior to acquisitions or dispositions in
the quarter were $7.2 million, with approximately $4.0 million
directed to drilling, completion and tie-in activities, primarily
in Wheatland, Princess and Evi; $2.1 million was directed to land
and seismic in the Princess area and the remaining to
capitalized G&A. The land and seismic purchase at
Princess is complementary to our existing landholdings and provides
additional step out locations to our core
play.
2017 ANNUAL HIGHLIGHTS
- Full-year 2017 production averaged 5,470 boe/d (62% liquids),
an increase of 49% over 2016 due to production additions from the
Arsenal (September 2016) and Red Earth (March 2017) Acquisitions
and the impact of volumes being brought on-stream from the 2016 and
2017 development programs. An uncertain oil pricing
environment during the first half of 2017 led PPR to postpone its
2017 capital program to preserve liquidity and protect project
economics. This deferral, coupled with the disposition of
certain non-core natural gas weighted properties, resulted in
annual average production that was below guidance.
- Capital expenditures and acquisitions during 2017 totaled $64.2
million (net of $1.4 million in proceeds for dispositions),
including $40.9 million for the Red Earth Acquisition.
Excluding acquisitions and dispositions, capital expenditures of
$23.7 million were focused on exploration efforts to delineate
PPR’s prospects at Wheatland and to meet its flow-through share
commitments. An unbudgeted strategic land and seismic
acquisition of $2.1 million in the fourth quarter and the
acceleration of some 2018 capital into 2017 in response to improved
oil prices increased spending by $3.8 million over PPR’s $25
million capital guidance (including ARO expenditures).
- Operating netbacks after realized hedging gains of $17.48/boe
decreased $0.47/boe from 2016. Higher realized prices were
offset by lower realized gains on derivative instruments, higher
royalty expenses and higher operating expenses per boe related to
lower production volumes.
- Adjusted funds from operations totaled $23.1 million, a $9.8
million increase compared to 2016, primarily due to higher
production volumes, partially offset by reduced gains on derivative
instruments.
- As a result of prolonged weakness in the current and forecast
price environment for natural gas and to a lesser extent, crude
oil, PPR recorded total impairment losses of $34.2 million in 2017,
primarily against the production and development assets in the
Wheatland and Princess cash generating units. The impairment
losses were the primary contributors to the net loss of $47.8
million recognized for 2017.
- As at December 31, 2017, PPR had US$31.3 million drawn against
its US$40 million revolving facility and had US$16.0 of Senior
Notes outstanding, plus a working capital deficit of $2.2
million.
- PPR has extended its lease acquisition commitment to March 31,
2019 and provided the Company spends $37.5 million towards the $45
million commitment by March 31, 2019, its remaining commitments
will be further extended until September 30, 2019. As of
December 31, 2017, the Company had incurred a total of $21.3
million towards the total capital commitment. In the first quarter
of 2018, PPR has further incurred approximately $6 million on its
Wheatland development. PPR expects to fulfill the remaining capital
commitment through its planned capital program.
FINANCIAL AND OPERATING
HIGHLIGHTS
|
Three Months
Ended |
|
Year Ended |
|
|
December
31, |
|
December 31, |
($000s except per unit amounts) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Financial |
|
|
|
|
|
|
|
|
Oil and natural gas
revenue |
20,510 |
|
17,060 |
|
79,011 |
|
42,748 |
|
Net
loss |
(44,145 |
) |
(8,782 |
) |
(47,802 |
) |
(60,396 |
) |
Per share
– basic & diluted1 |
(0.38 |
) |
(0.09 |
) |
(0.42 |
) |
(0.62 |
) |
Adjusted Funds from
operations2 |
5,545 |
|
7,107 |
|
23,075 |
|
13,259 |
|
Per share
– basic & diluted3 |
0.05 |
|
0.07 |
|
0.2 |
|
0.14 |
|
Net
capital expenditures |
6,251 |
|
11,918 |
|
64,198 |
|
34,875 |
|
Production Volumes |
|
|
|
|
|
|
|
|
Crude oil (bbls/d) |
3,233 |
|
2,653 |
|
3,178 |
|
2,012 |
|
Natural gas
(Mcf/d) |
9,200 |
|
12,300 |
|
12,537 |
|
9,253 |
|
Natural
gas liquids (bbls/d) |
106 |
|
142 |
|
202 |
|
126 |
|
Total
(boe/d) |
4,872 |
|
4,845 |
|
5,470 |
|
3,680 |
|
%
Liquids |
69 |
% |
58 |
% |
62 |
% |
58 |
% |
|
|
|
|
|
|
|
|
|
Average Realized Prices |
|
|
|
|
|
|
|
|
Crude oil ($/bbl) |
62.01 |
|
54.28 |
|
56.01 |
|
46.75 |
|
Natural gas
($/Mcf) |
1.81 |
|
3.09 |
|
2.47 |
|
2.21 |
|
Natural
gas liquids ($/bbl) |
54.86 |
|
24.49 |
|
37.08 |
|
17.91 |
|
Total
($/boe) |
45.76 |
|
38.27 |
|
39.57 |
|
31.74 |
|
Operating
Netback ($/boe)4 |
|
|
|
|
|
|
|
|
Realized price |
45.76 |
|
38.27 |
|
39.57 |
|
31.74 |
|
Royalties |
(4.84 |
) |
(5.09 |
) |
(5.20 |
) |
(3.63 |
) |
Operating
costs |
(20.78 |
) |
(13.92 |
) |
(19.36 |
) |
(17.39 |
) |
Operating netback |
20.14 |
|
19.26 |
|
15.01 |
|
10.72 |
|
Realized
gains on derivative instruments |
1.9 |
|
3.06 |
|
2.47 |
|
7.23 |
|
Operating netback,
after realized gains on |
|
|
|
|
|
|
|
|
derivative instruments |
22.04 |
|
22.32 |
|
17.48 |
|
17.95 |
|
|
|
|
|
|
|
|
|
|
Notes:(1)(3) As the historical financial
statements were prepared on a combined and consolidated basis, it
is not possible to measure per share amounts until after the
closing of the Arrangement on September 12, 2016 when Lone Pine and
Arsenal were brought under a common parent entity. The
Company calculated per share information for the current and
historical periods by assuming that the common shares issued upon
the closing of the Arrangement at September 12, 2016 were
outstanding since the beginning of the period (2)(4)
Adjusted funds from operations and Operating Netback are non-IFRS
measures and are defined below under “Other Advisories
Capital Structure($000s) |
|
|
As at December 31, 2017 |
|
As at December 31, 2016 |
|
Working capital
(deficit)(1) |
|
|
(2,201 |
) |
(4,380 |
) |
Long-term debt |
|
|
(55,760 |
) |
(15,047 |
) |
Total net debt(2) |
|
|
(57,961 |
) |
(19,427 |
) |
Current debt
capacity(3) |
|
|
11,291 |
|
34,117 |
|
Common
shares outstanding (in millions) (4) |
|
|
115.9 |
|
104.2 |
|
Notes:
(1)
Working capital (deficit) is a non-IFRS measure (see Other
Advisories below) calculated as current assets less current
liabilities excluding the current portion of derivative
instruments, the current portion of decommissioning liabilities and
flow-through share premium.(2)
Net debt is a non-IFRS measure (see Other Advisories below),
calculated by adding working capital (deficit) and long-term
debt. (3) Current debt
capacity reflects the undrawn capacity of the USD$40 million
Revolving Facility at December 31, 2017 and of $55 million
previously outstanding credit facility at December 31, 2016.
Revolving Facility debt capacity was translated using the year end
exchange rate of $1.0000 USD to $1.2545
CAD.(4) As historical financial
statements were prepared on a combined and consolidated basis (see
note 3(a) to the Annual Financial Statements), common shares
outstanding is not a relevant measure until subsequent to the
closing of the Arsenal Acquisition on September 12, 2016 when Lone
Pine and Arsenal were brought under a common parent entity.
|
|
|
|
Three months ended December 31 |
Year ended December 31 |
|
2017 |
2016 |
2017 |
2016 |
Drilling Activity |
|
|
|
|
Gross wells |
- |
3 |
6 |
14 |
Working interest
wells |
- |
2.95 |
5.7 |
12.65 |
Success rate, net wells (%) |
N/A |
100 |
82 |
100 |
|
|
|
|
|
OPERATIONS UPDATE
Wheatland, AB
For the year ended December 31, 2017, PPR’s
Wheatland properties averaged 2,083 boe/d (27% liquids) and
represented 38% of PPR’s total production. During the fourth
quarter, area production averaged 1,619 boe/d (27% liquids),
contributing 33% to the Company’s total volumes.
PPR’s 2017 capital program at Wheatland totaled
$13.6 million and included equipping and tying-in two wells that
were drilled in late 2016; and drilling five gross (4.7 net) wells
to further delineate the Company’s Ellerslie play in the Wayne
area, where wells average 60% oil compared to 23% across the
broader Wheatland area. While the delineation provided
valuable data in helping PPR to further map its land base, which
led to the acquisition in 2017 an additional 17 gross (11 net)
sections of land and 10 square miles of 3D seismic at Wayne, they
did not add significant production for the three months and year
ended December 31, 2017.
The Company has identified an additional 15
potential Ellerslie horizontal drilling locations in the Wayne play
and plans to drill and complete up to six wells in 2018.
Subsequent to year end, three wells were drilled and completed,
with results released on March 20, 2018.
Princess, AB
Production at Princess averaged 388 boe/d (85%
liquids) during 2017 and 408 boe/d (83% liquids) during the fourth
quarter. Area capital expenditures during 2017 of $6.2
million were directed to tying-in three wells, acquiring 14.5 net
sections prospective for Glauconite and Basal Mannville oil, and
roughly 30 sections of additional 3D seismic, which is expected to
facilitate the identification of attractive future potential oil
drilling locations.
The Company has identified 15 potential oil
drilling locations in the Detrital, Basal Mannville and Glauconite
formations and commenced drilling activities in the first quarter
of 2018. Prairie Provident plans to spend approximately $10 million
on the drilling and completion of up to six Glauconite horizontal
oil wells at Princess during 2018.
Evi, AB
The Evi properties produced average sales
volumes of approximately 2,108 boe/d (98% liquids) during 2017,
contributing 39% to PPR’s overall production, and 2,225 boe/d (97%
liquids) during the fourth quarter of 2017. On March 22,
2017, PPR closed the acquisition of oil and natural gas assets in
the Greater Red Earth area of Northern Alberta for cash
consideration of $40.9 million. The acquired assets include
high-quality and low-decline oil production complementary to its
existing operations in the Peace River Arch area. The
acquisition further enhances the Company’s size and competitive
position through an increased liquids ratio, lower corporate
decline and the potential to improve operating netbacks.
Excluding acquisitions, PPR’s 2017 capital
expenditures in Evi totaled $1.1 million, which were primarily
directed to expansion of the area waterflood by converting
low-productivity wells to water injection wells and the
recompletion of three wells designed to access additional uphole
zones in the wellbores.
The Company anticipates spending approximately
$7 million at Evi in 2018 to convert up to eight additional wells
to injectors and the drilling of 3 vertical directional Granite
Wash wells.
2018 OUTLOOK AND GUIDANCE
Prairie Provident’s business strategy has been
built on a balanced approach, utilizing predictable funds flows
from our low decline oil assets to fuel growth developments.
Our priorities continue to focus on maintaining a strong balance
sheet while delivering accretive asset value growth for our
shareholders. PPR’s capital allocation process takes into
account a number of factors including rate-of-return, project
payout period and reserves addition cost. In response to the
broader commodity price environment, the Company will continue to
focus on improving corporate netbacks by targeting higher value
production streams while striving to lower costs through various
operational initiatives such as pad drilling and evaluating
opportunities to acquire underutilized infrastructure in our
operating areas.
On January 29, 2018 PPR’s Board of Directors
approved a $26 million capital program for 2018 (excluding land
purchases and property acquisitions or dispositions) designed to
support long-term profitability and balance sheet strength through
the continued development of oil-weighted opportunities within its
low-risk asset base. The capital program anticipates continued
development of PPR’s Wayne property at Wheatland, ongoing drilling
and completions at Princess, and further expansion of the
attractive waterflood at Evi and oil development at Red
Earth.
Prairie Provident will continue to actively
manage expected commodity price volatility over the near-term,
while taking steps to mitigate price risk, including executing an
active risk management program. PPR intends to continue
adding positions to its hedge book which currently provides
protection to approximately 65% of its 2018 forecast base volumes
(net of royalties) and is expected to support adjusted funds from
operations through 2019 and beyond. Operationally, the
Company will remain focused on capturing capital and operating
efficiencies and protecting its financial position.
Prairie Provident's full-year 2018 guidance
estimates remain unchanged from those presented in the Company’s
release dated February 6, 2016 and are outlined in the following
table. Additional details on Prairie Provident's 2018 capital
program and guidance can be found on the Company’s website at
www.ppr.ca.
2018 BUDGET AND GUIDANCE SUMMARY
Production guidance |
5,200 - 5,600 boe/d |
Liquids weighting |
68 -
71% |
Capital expenditures
(excluding abandonment and reclamation expenditures and capitalized
G&A) |
$26
million |
Operating expense |
$17.00
- 18.50/boe |
Operating netback1 |
$20.50
– 22.00/boe |
2018 year-end long-term
debt (net of cash collateralized for letters of credit) |
$58
million |
|
|
Financial
Assumptions |
|
Oil (WTI) |
US$63.00/bbl |
Oil (WCS) |
C$51.50/bbl |
Natural gas (AECO) |
C$1.40/mcf |
Edmonton Light/WTI
differential |
C$6.00 |
USD/CAD exchange
rate |
0.81 |
- Operating netback is a non-IFRS measure (see "Other Advisories"
below).
Within a challenging market for Canadian energy
producers, PPR remains focused on increasing exposure of the
Company to the broader investment community and enhancing the
trading liquidity of its shares. Further, the Company firmly
believes that continued operational execution, growth on a per
share basis, and prudent management of the balance sheet will
ultimately be the key drivers towards increasing shareholder
value.
ABOUT PRAIRIE PROVIDENT:
Prairie Provident is a Calgary-based company
engaged in the exploration and development of oil and natural gas
properties in Alberta. The Company’s strategy is to grow
organically in combination with accretive acquisitions of
conventional oil prospects, which can be efficiently developed.
Prairie Provident’s operations are primarily focused at Wheatland
and Princess in Southern Alberta targeting the Ellerslie and the
Lithic Glauc formations, along with an early stage waterflood
project at Evi in the Peace River Arch. Prairie Provident protects
its balance sheet through an active hedging program and manages
risk by allocating capital to opportunities offering maximum
shareholder returns.
For further information, please contact:
Prairie Provident Resources Inc. Tim Granger President and Chief
Executive Officer Tel: (403) 292-8110 Email: tgranger@ppr.ca
website: www.ppr.ca
FORWARD-LOOKING STATEMENTS
This news release contains certain
forward-looking information and statements within the meaning of
applicable Canadian securities laws. Statements involving
forward-looking information relate to future performance, events or
circumstances, and are based upon internal assumptions, plans,
intentions, expectations and beliefs. All statements other
than statements of current or historical fact constitute
forward-looking information. Forward-looking information is
typically, but not always, identified by words such as
"anticipate", "believe", "expect", "intend", "plan", "budget",
"forecast", "target", "estimate", "propose", "potential",
"project", "continue", "may", "will", "should" or similar words
suggesting future outcomes or events or statements regarding an
outlook. In particular, but without limiting the foregoing,
this news release contains forward-looking information and
statements pertaining to the following: projected capital
expenditure plans, production and product mix, production growth
expectations, development and exploration plans at Wheatland,
Princess and Evi (including with respect to numbers of wells at
Wheatland and Princess and Evi waterflood activities and
expectations), opportunities for operating cost reductions in the
Greater Red Earth area, continued focus on corporate netbacks and
capital efficiency and anticipated activities in furtherance
thereof, future hedging arrangements, projected annual and exit
production, operating costs, operating netback, royalties, G&A
expenses, capital expenditures and adjusted funds from operations
of Prairie Provident for 2018 and beyond, assumptions as to future
commodity prices, its risk management plans for 2018 and beyond,
use of excess funds from operations for debt repayment, per share
production growth, drilling inventory numbers, expected benefits of
waterflood initiatives, view on potential benefits from the Red
Earth Acquisition and future merger and acquisition activities.
The forward-looking information and statements
contained in this news release reflect material factors and
expectations and assumptions of Prairie Provident including,
without limitation: commodity prices and foreign exchange rates for
2018 and beyond; the timing and success of future drilling,
development and completion activities (and the extent to which the
results thereof meet Management's expectations); the continued
availability of financing (including borrowings under the Company's
credit facility) and cash flow to fund current and future
expenditures, with external financing on acceptable terms; future
capital expenditure requirements and the sufficiency thereof to
achieve the Company's objectives; the performance of both new and
existing wells; production from the Red Earth Acquisition and
capital and operating costs in respect thereof; the timely
availability and performance of facilities, pipelines and other
infrastructure in areas of operation; the geological
characteristics and quality of Prairie Provident's properties and
the reservoirs in which the Company conducts oil and gas activities
(including field production and decline rates); successful
integration of the Red Earth Acquisition assets into the Company's
operations; the successful application of drilling, completion and
seismic technology; future exploration, development, operating,
transportation, royalties and other costs; the Company's ability to
economically produce oil and gas from its properties and the timing
and cost to do so; the predictability of future results based on
past and current experience; prevailing weather conditions;
prevailing legislation and regulatory requirements affecting the
oil and gas industry (including royalty regimes); the timely
receipt of required regulatory approvals; the availability of
capital, labour and services on timely and cost-effective basis;
the creditworthiness of industry partners and the ability to source
and complete acquisitions; and the general economic, regulatory and
political environment in which the Company operates. Prairie
Provident believes the material factors, expectations and
assumptions reflected in the forward-looking information and
statements are reasonable but no assurance can be given that these
factors, expectations and assumptions will prove to be correct.
All information and statements that are in the
nature of a financial outlook are forward-looking statements as
they relate to prospective financial performance, financial
position or cash flows based on assumptions about future economic
conditions and courses of action. Financial outlook information in
this news release includes statements regarding future funds flow
from operations and operating netback, which are subject to the
assumptions, risk factors, limitations and qualifications set forth
above. All financial outlook information is made as of the date of
this news release and is provided for the sole purpose of
describing the Company's internal expectations on cash flows for
2018, and should not be used, and may be inappropriate for, any
other purpose.
Although Prairie Provident believes that the
expectations and assumptions upon which the forward-looking
information in this news release is based are reasonable based on
currently available information, undue reliance should not be
placed on such information, which is inherently uncertain, relies
on assumptions and expectations, and is subject to known and
unknown risks, uncertainties and other factors, both general and
specific, many of which are beyond the Company's control, that may
cause actual results or events to differ materially from those
indicated or suggested in the forward-looking information.
Prairie Provident can give no assurance that the forward-looking
information contained herein will prove to be correct or that the
expectations and assumptions upon which they are based will occur
or be realized. These include, but are not limited to: risks
inherent to oil and gas exploration, development, exploitation and
production operations and the oil and gas industry in general,
including geological, technical, engineering, drilling, completion,
processing and other operational problems and potential delays,
cost overruns, production or reserves loss or reduction in
production, and environmental, health and safety implications
arising therefrom; uncertainties associated with the estimation of
reserves, production rates, product type and costs; adverse changes
in commodity prices, foreign exchange rates or interest rates; the
ability to access capital when required and on acceptable terms;
the ability to secure required services on a timely basis and on
acceptable terms; increases in operating costs; environmental
risks; changes in laws and governmental regulation (including with
respect to royalties, taxes and environmental matters); adverse
weather or break-up conditions; competition for labour, services,
equipment and materials necessary to further the Company's oil and
gas activities; and changes in plans with respect to exploration or
development projects or capital expenditures in respect thereof.
These and other risks are discussed in more detail in the Company's
current annual information form and other documents filed by it
from time to time with securities regulatory authorities in Canada,
copies of which are available electronically under Prairie
Provident's issuer profile on the SEDAR website at www.sedar.com
and on the Company's website at www.ppr.ca. This list is not
exhaustive.
The forward-looking information and statements
contained in this news release speak only as of the date of this
news release, and Prairie Provident assumes no obligation to
publicly update or revise them to reflect new events or
circumstances, or otherwise, except as may be required pursuant to
applicable laws. All forward-looking information and statements
contained in this news release are expressly qualified by this
cautionary statement.
OTHER ADVISORIES
The oil and gas industry commonly expresses
production volumes and reserves on a “barrel of oil equivalent”
basis (“boe”) whereby natural gas volumes are converted at the
ratio of six thousand cubic feet to one barrel of oil. The
intention is to sum oil and natural gas measurement units into one
basis for improved analysis of results and comparisons with other
industry participants. A boe conversion ratio of six thousand
cubic feet to one barrel of oil is based on an energy equivalency
conversion method primarily applicable at the burner tip. It does
not represent a value equivalency at the wellhead nor at the plant
gate, which is where Prairie Provident sells its production
volumes. Boes may therefore may be a misleading measure,
particularly if used in isolation. Given that the value ratio based
on the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency ratio of 6:1,
utilizing a 6:1 conversion ratio may be misleading as an indication
of value.
Non-IFRS Measures
The Company uses certain terms in this news
release and within the MD&A that do not have a standardized or
prescribed meaning under International Financial Reporting
Standards (IFRS), and, accordingly these measurements may not be
comparable with the calculation of similar measurements used by
other companies. For a reconciliation of each non-IFRS measure to
its nearest IFRS measure, please refer to the “Non-IFRS Measures”
section in the MD&A. Non-IFRS measures are provided as
supplementary information by which readers may wish to consider the
Company's performance, but should not be relied upon for
comparative or investment purposes. The non-IFRS measures
used in this news release are summarized as follows:
Working Capital – Working capital (deficit) is
calculated as current assets less current liabilities excluding the
current portion of derivative instruments, the current portion of
decommissioning liabilities, the warrant liability and flow-through
share premium. This measure is used to assist management and
investors in understanding liquidity at a specific point in
time. The current portion of derivatives instruments is
excluded as management intends to hold derivative contracts through
to maturity rather than realizing the value at a point in time
through liquidation. The current portion of decommissioning
expenditures is excluded as these costs are discretionary and the
current portion of flow-through share premium liabilities are
excluded as it is a non-monetary liability.
Net Debt – Net debt is defined as long-term debt
plus working capital surplus or deficit. Net debt is commonly
used in the oil and gas industry for assessing the liquidity of a
company.
Operating Netback – Operating netback is a
non-IFRS measure commonly used in the oil and gas industry. This
measurement assists management and investors to evaluate the
specific operating performance at the oil and gas lease level.
Operating netbacks included in this news release were determined by
taking (oil and gas revenues less royalties less operating costs)
divided by gross working interest production. Operating netback,
including realized commodity (loss) and gain, adjusts the operating
netback for only realized gains and losses on derivative
instruments.
Adjusted Funds from Operations – Adjusted funds
from operations is calculated based on cash flow from operating
activities before changes in non-cash working capital, transaction
costs, restructuring costs, decommissioning expenditures and other
non-recurring items. Management believes that such a measure
provides an insightful assessment of Prairie Provident’s operation
performance on a continuing basis by eliminating certain non-cash
charges and charges that are non-recurring and utilizes the measure
to assess its ability to finance operating activities, capital
expenditures and debt repayments. Adjusted funds from operations as
presented is not intended to represent cash flow from operating
activities, net earnings or other measures of financial performance
calculated in accordance with IFRS.
Prairie Provident Resour... (TSX:PPR)
Historical Stock Chart
From Dec 2024 to Jan 2025
Prairie Provident Resour... (TSX:PPR)
Historical Stock Chart
From Jan 2024 to Jan 2025