(Canacol Energy Ltd., 15.May.2018) – Canacol Energy Ltd. reported its financial and operating results for the three months ended March 31, 2018.
“The first quarter of 2018 was an important milestone for Canacol, as it represents the first full quarter where the Corporation had access to the newly completed Sabanas flowline, and hence yet another step change in our natural gas production levels,” said Canacol President and CEO Charle Gamba. “We continue to diligently work towards our next goal of 230 MMscfpd by December 1, 2018, for which the Corporation is fully funded to achieve.”
Highlights for the three months ended March 31, 2018. Dollar amounts are expressed in United States dollars, except as otherwise noted. (Production is stated as working‐interest before royalties)
Financial and operational highlights of the Corporation include:
— Average production volumes increased 23% to 20,955 boepd for the three months ended March 31, 2018 compared to 16,992 boepd for the same period in 2017. The increase is primarily due to increase in gas production as a result of the additional sales related to the completion of the Sabanas pipeline, offset by production declines at LLA‐23 and the sale of the Ecuador Incremental Production Contract (the “Ecuador IPC”) (see full discussion in MD&A) in February 2018.
— Realized contractual sales volumes increased 17% to 21,115 boepd for the three months ended March 31, 2018 compared to 18,043 boepd for the same period in 2017. The increase is primarily due to increase in gas production as a result of the additional sales related to the completion of the Sabanas pipeline, offset by production declines at LLA‐23 and the sale of the Ecuador IPC in February 2018.
— Total petroleum and natural gas revenues for the three months ended March 31, 2018 increased 24% to $51.8 million compared to $41.6 million for same period in 2017. Adjusted petroleum and natural gas revenues, inclusive of revenues related to the Ecuador IPC, for the three months ended March 31, 2018 increased 14% to $53.7 million compared to $47 million for the same period in 2017.
— Adjusted funds from operations increased 12% to $23.5 million for the three months ended March 31, 2018 compared to $20.9 million for the same period in 2017. Adjusted funds from operations are inclusive of results from the Ecuador IPC, which totalled $2 million during the three months ended March 31, 2018 and $5 million during the three months ended March 31, 2017.
— The Corporation recorded a net income of $8.3 million for the three months ended March 31, 2018 compared to a net loss of $7.9 million for the same period in 2017.
— Net capital expenditures including acquisitions for the three months ended March 31, 2018 was $40.2 million, while adjusted capital expenditures including acquisitions, inclusive of amounts related to the Ecuador IPC, was $42.6 million. Net capital expenditures and adjusted capital expenditures included non‐cash costs of $14.1 million.
— At March 31, 2018, the Corporation had $61 million in cash and $13.3 million in restricted cash.
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