CALGARY, Alberta, Nov. 08, 2019 (GLOBE NEWSWIRE) — Toscana Energy Income Corporation (“Toscana” or the “Corporation”) (TSX: TEI) announces financial and operating results for the third quarter ended September 30, 2019.
Financial and operating results:
This news release summarizes information contained in the Condensed Consolidated Interim Financial Statements (unaudited) and Managementâs Discussion and Analysis (âMD&Aâ) for the three and nine months ended September 30, 2019. This news release should not be considered a substitute for reading the full disclosure documents, which are available under the Corporationâs profile on SEDAR at www.sedar.com and on the Corporationâs website at www.toscanaenergy.ca.
|Three months ended||Nine months ended|
|September 30||September 30|
|Average daily production (boe/d)||1,060||1,462||(27%)||1,088||1,618||(33%)|
|Average prices received ($/boe)||39.97||34.28||17%||42.35||30.40||39%|
|Petroleum and natural gas revenue, net of royalty expense ($)||3,478,122||3,802,446||(9%)||11,444,843||11,883,849||(4%)|
|Netback ($) (1)||1,075,479||594,483||81%||4,106,026||2,338,853||76%|
|Netback per boe ($/boe) (1)||11.03||4.42||13.72||5.29|
|Adjusted Funds flow from (used-in) operations ($) (1)(2)||(70,718)||(766,563)||(91%)||624,312||(1,396,819)||>100%|
(1) Non-IFRS measures.
(2) Includes one time fees of $165,000
Management uses ânetbackâ, âAdjusted funds flow from operationsâ, to analyze operating performance and to determine the Corporationâs ability to fund future capital investment. These terms, as presented, do not have any standardized meaning prescribed by International Financial Reporting Standards (âIFRSâ) and therefore may not be comparable with the calculation of similar measures for other entities. Readers are cautioned regarding the reliability of such measures.
Netback typically equals (a) petroleum and natural gas revenue (including royalty revenues), net of royalty expense (b) realized gains and losses on risk management contracts and (c) less operating costs, net of processing income and is generally calculated on a per boe basis. As a non-IFRS measure, operating netback is an indicator of the financial performance of the Corporation. The Corporation uses such term as an indicator of financial performance because such term is commonly utilized by investors to evaluate companies in the energy sector. The Management of the Corporation believes that operating netback is a useful supplemental measure as it provides investors with information on operating margins per barrel of oil equivalent for such periods.
Management calculates Adjusted funds flow from operations as net earnings (loss) plus the addition of non-cash items (depletion, depreciation, accretion, share-based compensation, gains or losses on the sale of property and equipment and unrealized gains or losses on risk management contracts, gain on dentures amendments, etc.) and settlement of decommissioning liabilities.
As a non-IFRS measure, these measures are an indicator of the financial performance as it demonstrates the Corporationâs ability to generate the cash necessary to fund future capital investments and to repay debt. The Corporation uses such term as an indicator of financial performance because such term is commonly utilized by investors to evaluate companies in the energy sector. The Corporation believes that these measures are a useful supplemental measure as it provides investors with information of what cash is available in such periods.
This news release contains forwardâlooking statements and forwardâlooking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forwardâlooking statements or information. Forwardâlooking statements and information are often, but not always, identified by the use of words such as “appear”, “seek”, “anticipate”, “plan”, “continue”, “estimate”, “approximate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “would” and similar expressions.
More particularly and without limitation, this news release contains forwardâlooking statements and information such as growing oil production should provide for better operating netbacks; the forecasted weak natural gas prices and whether or not resolving natural gas pipeline constraints will generate a significant change in natural gas prices. Although management of the Corporation believes that the expectations and assumptions on which such forward looking statements and information are based are reasonable, undue reliance should not be placed on the forwardâlooking statements and information since no assurance can be given that they will prove to be correct.
The forwardâlooking statements and information contained in this news release are made as of the date hereof and no undertaking is given to update publicly or revise any forwardâlooking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Toronto Stock Exchange. The forward-looking statements or information contained in this news release are expressly qualified by this cautionary statement.
About Toscana Energy Income Corporation
Toscana Energy Income Corporation is a conventional oil and gas producer with the mandate to acquire high quality, long life oil and gas assets.
For further information, please contact:
Ryan Heath, Chief Executive Officer
Tel: (403) 355-0455
Fax: (403) 444-0090
SOURCE: Toscana Energy Income Corporation