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Pieridae Releases Q4 and 2020 Results25.03.2021 | 12:30 Uhr | GlobeNewswire
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR Key Highlights:
CALGARY, Alberta, March 25, 2021 -- Pieridae Energy Ltd. ("Pieridae" or the "Company") (PEA.TO) released its 2020 financial and operating results today, highlighted by the fact the Company maintained safe, reliable operations of its assets at a time of unparalleled upheaval in the energy industry due to the Coronavirus. A global oil price war, low commodity prices not seen in decades and unmatched uncertainty created a perfect storm, yet the Company weathered it and saw strong year over year production growth. In addition, Pieridae managed to replace almost half of its production while spending minimal capital. Layer in one of the lowest decline rates in the industry and the Company is well positioned to leverage a very reliable supply base that will grow to feed natural gas to our Goldboro LNG Facility. Numerous, strong advancements were made on the Project and Pieridae continued to adjust its business model in the wake of the ongoing and unprecedented impacts of COVID-19. "We demonstrated progress during unprecedented times when you compare 2020 to 2019," said Pieridae's Chief Executive Officer Alfred Sorensen. "The Company saw increased year over year income and production during a global pandemic and one of the harshest years on record in the energy sector. We responded by monetizing certain hedge positions, limiting non-essential capital and operating spending, and taking active steps to reduce our administrative costs. "Our Goldboro LNG Project saw plenty of wind in its sails through new experienced leadership, a strong working relationship with globally-respected engineering firm Bechtel who will design and build the LNG Facility, and our ongoing partnership with the Nova Scotia Mi'kmaw Nation where they would partner to develop a $720 million workforce lodge to house the 5,000 workers who will build the Facility. "This is a transnational project that would benefit all Canadians through our commitment to achieve net zero emissions, continued progress down a path toward true reconciliation, and employing thousands of Canadians during construction and plant operations for decades to come," concluded Sorensen. Financial and operational information is set out below and should be read in conjunction with Pieridae's 2020 Annual Report which includes the Corporation's audited annual consolidated financial statements and the related management's discussion and analysis ("MD&A"). In addition, the Corporation today announces the filing of its Annual Information Form ("AIF") for the year ended December 31, 2020 that contains the Corporation's reserves and other oil and natural gas information, as required under National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. The AIF, Annual Report, audited consolidated financial statements and MD&A are available for review at www.sedar.com and on the Company's website. Financial Performance Pieridae's results were lower than our initial forecasts but as stated earlier, the unprecedented and generational impacts of the pandemic along with extremely negative movements in liquids pricing were material in eroding our original budgeted amounts. Pieridae recorded an increase in cashflow from operating activities year over year and quarter over quarter. NOI decreased 48% to $12.8 million in Q4 2020 compared to $24.5 million in Q4 2019, while AFFO decreased 41% to $8.5 million in Q4 2020 compared to $14.4 million in Q4 2019. Our financial results demonstrate the impacts of COVID-19 during one of the harshest years on record in the energy industry plus the reality of the costs of developing a multi-billion-dollar LNG Project, costs that must be expensed until Pieridae reaches a successful financial investment decision ("FID") for the Project. Throughout the challenges COVID-19 posed during a year of operational and cultural integration stemming from the significant recent acquisitions, Pieridae remains committed to and impressed by the operational resilience of our assets and our team. The Company took definitive action during the year to defend its financial position, including ensuring operational flexibility in capital program execution and working to improve cost efficiencies across the business. Annual Highlights
(1) Refer to the "Non-GAAP measures" section of the Company's MD&A. Quarterly Highlights
(1) Refer to the "Non-GAAP measures" section of the Company's MD&A Operations Performance Pieridae's assets returned to strong production in the fourth quarter of 2020, averaging 44,800 boe/day, a 17% increase from the prior quarter, and a 6% or 2,663 boe/d increase from the comparative quarter in 2019. These increases are primarily due to production capabilities acquired from the South Foothills Asset acquisition, partially offset by planned and unplanned outages in 2020, most significantly during the first quarter of 2020 as a result of unseasonably cold weather, and in the third quarter of 2020 as a result of planned maintenance in a number of production fields. The significant growth in condensate and natural gas liquids ("NGLs") production in the three months and year ended December 31, 2020 reflects the deep cut capability of the processing facilities acquired as part of the acquisition mentioned above. The Company's hedging program that was put in place earlier in 2020 to protect revenues prevented Pieridae from fully participating in strengthening natural gas prices until below-market fixed price sales contracts rolled off late in the year. The realized natural gas price was $2.16/mcf in the fourth quarter versus an AECO benchmark of $2.67/mcf. While below the benchmark, realized prices in the fourth quarter were 27% higher than the third quarter, and 13% higher than the comparative quarter in 2019. Pieridae's senior secured lender has temporarily waived its requirement to have 60% of production hedged on an 18-month rolling average basis in order to allow the Company to take advantage of strengthening crude and natural gas markets. As of December 31, 2020, 119,000 GJ/d of fixed price contracts of natural gas were in place at a weighted-average price of $2.33/GJ, and 1,785 bbl/day of 2021 condensate production was hedged at a weighted average price of $55.90/bbl. Environmental, Social & Governance ("ESG") and Safety At Pieridae, we are aligned with this, including the value it brings to what we strive to accomplish each and every day. We have formally started our ESG journey, partnering with a global leader in ESG strategy development within the energy sector to facilitate and guide the Company towards formulating and implementing our ESG strategy. Their strong knowledge of key stakeholders including Indigenous Peoples, investors, government and others is important in developing our ESG program as we pursue FID and financing of our Goldboro LNG Project. The target is set to issue our inaugural ESG Report in Q2 2021. We are committed to achieving net zero emissions by 2050 for our Goldboro LNG Project and note that LNG reduces carbon globally by replacing higher-emissions coal. This is a net benefit for all during the global energy transition to a low carbon economy. From a health, safety and environment ("HS&E") perspective, Pieridae had a very successful year in 2020 with excellent ratings on all of our HS&E programs, and no major incidents. That's a major success for the Company. Pieridae's continued focus on safety was evidenced by no lost time incidents ("LTIs") recorded during the year, and total reportable injury frequency ("TRIF") of 0.34 during the year, on a target of less than 1.0. As a comparison, 10 peer companies had an average TRIF of 0.55 in 2019. Goldboro LNG
Bechtel remains on schedule to submit to Pieridae its key deliverables. Pieridae has retained sole responsibility to contract the site preparation, marine civil works and workforce lodge. These projects will be financed concurrently with a positive FID decision, with construction beginning in the summer of 2021. Under the FEED study, Air Products and Chemicals Inc. developed a plan to design and deliver a 2-Train (each 4.8 million tonnes per annum "MMTPA") Facility. Construction is expected to take 54 months and much of the work includes assembling modules built in offshore yards with Pieridae employing 4,500-5,000 workers during the peak construction phase. These employees will be housed at a $720 million temporary workforce lodge which will be built on or nearby the existing decommissioned Sable Island sour gas plant site. The Nova Scotia Mi'kmaq and Black Diamond Group will build and operate the lodge. Site preparation, site drainage, highway realignment and marine facilities are some of the major projects that must be built in tandem with, or prior to, the LNG Facility construction. COVID-19 Response We, along with the vast majority of companies and businesses, remain vigilant in preventing the spread of the virus by following government and health safety restrictions at all of our offices and facilities. While many at Pieridae returned to the office and our facilities in the summer of 2020, they went back to working from home when restrictions were re-imposed in November 2020. Since that time, office staff have successfully done their jobs remotely while activity in our field operations has restricted access to only essential personnel and prevent unnecessary travel. Due to the focused efforts of all of our employees to limit the risk of the outbreak, Pieridae has not suffered any measurable loss of productivity due to COVID-19during the fourth quarter and year ended December 31, 2020. 2020 Developments Uniper Deadline Extensions Alberta Energy Regulator Decision Pieridae Graduates to the TSX Guarantee Facility from Export Development Canada ("EDC") New SVP LNG Hired Pieridae Engages EPCC Contractor Bechtel Nova Scotia Mi'kmaq, Black Diamond Group Given Opportunity to Build Large-Scale Workforce Lodge "We are excited about what this Project means to the Mi'kmaw communities and the benefits it will bring to all of Atlantic Canada. A key component of reconciliation in Canada is the ability to have meaningful involvement in projects happening within our territories," said Chief PJ Prosper and Chief Terence Paul. Reserves Highlights PDP gas reserves are 613.2 Bcf (102.2 Mmboe), down 140 Bcf from 2019 YE PDP reserve numbers. This reduction is due to annual production depletion and early economic termination of some wells, due to lower forecast commodity prices, as compared to 2020. Total PDP reserves are 53% of the total reserves, which, amongst our peer companies, would be considered conservative. Our Proved Undeveloped ("PUD") category represents only 17% of the total proved ("TP") reserves' category (29.4 Mmboe out of 175.8 Mmboe), which could also be considered to be very conservative amongst our peers. Net Present Value (NPV10) decreased 15% in the PDP reserves category, 1% in TP and 8% in total proved plus probable ("TPP") categories from 2019 YE numbers. The corporation's PDP NPV10 is $505.2 million, down from 2019 YE PDP NPV10 of $593 million. TP NPV10 is $718.5 million, down slightly from 2019 YE TP NVP10 of $725 million and TPP NPV10 is $976.1 million, down from 2019 YE TPP of $1,062.5 million. 2020 Independent Reserves Evaluation Stated reserves are company gross basis (working interest before deduction of royalties without the inclusion of any royalty interest) unless otherwise noted. In addition to the information disclosed in this news release, more detailed information will be included in the corporation's AIF for the year ended December 31, 2020. Canadian Domestic Forecast (1)
(1) Forecast prices were estimated using the average of the escalated price forecasts of four independent reserve evaluators, namely Deloitte LLP, GLJ Petroleum Consultants Ltd., McDaniels & Associates Consultants Ltd. and Sproule Associates Limited. There is no assurance that the forecast prices and forecast factors used by Deloitte in the Deloitte Report will prove accurate and variances could be material. Reserve Life Index ("RLI") Net Present Value Summary Summary of Before-Tax Present Value of Future Net Revenue at December 31, 2020 (1)
(3) Future net revenue is estimated using forecast prices and costs - see "Pricing Assumptions - Forecast Prices and Costs - December 31, 2020" in the Company's AIF. Reserve Volume Summary of Oil and Gas Reserves as of December 31, 2020
(5) Natural gas volumes include associated, and non-associated gas. 2021 Guidance:
(1) Refer to Non-GAAP measures. In 2021 Pieridae is guiding to an increase in NOI primarily due to higher anticipated natural gas prices as well as continued optimization of our assets, higher third-party processing fees, increased overall volumes and cost saving initiatives. Pieridae anticipates NOI in the range of $100-$130 million, AFFO increasing to $80-$110 million, adjusted operating expenses of $9.50-10.50/boe, commodities hedging of 55-65% on an 18-month rolling basis, and corporate and upstream G&A expense of $1.10-$1.30/boe. An upstream capital budget of $45-55 million has been approved that includes funds to continue investing in our assets to ensure their safety and reliability, as well as funding to maintain our current level of production. Specifically, for Goldboro LNG, we have budgeted $15-$20 million for development expenses. And assuming FID is declared by the end of June 2021, a further $250-$350 million capital expenditure budget for Goldboro would be triggered. About Pieridae: For further information please contact:
Forward-Looking Statements Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of resources estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits or synergies from acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources and the risk factors outlined under "Risk Factors" and elsewhere herein. The recovery and resources estimate of Pieridae's reserves provided herein are estimates only and there is no guarantee that the estimated resources will be recovered. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Forward-looking statements are based on a number of factors and assumptions which have been used to develop such forward-looking statements, but which may prove to be incorrect. Although Pieridae believes that the expectations reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements because Pieridae can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Pieridae operates; the timely receipt of any required regulatory approvals; the ability of Pieridae to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability of the operator of the projects which Pieridae has an interest in, to operate the field in a safe, efficient and effective manner; the ability of Pieridae to obtain financing on acceptable terms; the ability to replace and expand oil and natural gas resources through acquisition, development and exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of Pieridae to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Pieridae operates; timing and amount of capital expenditures, future sources of funding, production levels, weather conditions, success of exploration and development activities, access to gathering, processing and pipeline systems, advancing technologies, and the ability of Pieridae to successfully market its oil and natural gas products. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Pieridae's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at Pieridae's website (www.pieridaeenergy.com). Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and Pieridae assumes no obligation to update or review them to reflect new events or circumstances except as required by Applicable Securities Laws. Forward-looking statements contained herein concerning the oil and gas industry and Pieridae's general expectations concerning this industry are based on estimates prepared by management using data from publicly available industry sources as well as from reserve reports, market research and industry analysis and on assumptions based on data and knowledge of this industry which Pieridae believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While Pieridae is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors. Barrels of oil equivalent ("boes") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 1 NOI and AFFO are non-GAAP measures. They do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. Refer to the "Non-GAAP measures" section of the Company's MD&A. Dieser Artikel stammt von Rohstoff-Welt.de
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