Canada’s Advantage Energy sees record 2023 production
Canadian Montney producer Advantage Energy said March 4 it had record production of 60,678 barrels of oil equivalent (boe)/day in 2023, up from 55,769 boe/day in 2022.
Natural gas production rose to 322.7mn ft3/day from 298.05mn ft3/day in 2022, reflecting strong well performance in Advantage’s core Glacier region. Through all of 2023, Advantage drilled 13 of the top 16 Alberta Montney gas wells, based on IP90 rates.
Net income in 2023 fell to C$101.6mn (US$74.8mn) from C$338.7mn in 2022, reflecting weaker realised commodity prices. Advantage saw its averaged realised gas price fall to C$3.24/’000 ft3 from C$5.55/’000 ft3 in 2022, while its average realised liquids price declined to C$78.35/barrel from C$92.48/barrel.
Cash provided by operating activities fell to C$323.3mn from C$502.4mn in 2022, while free cash flow dropped to C$30.8mn from C$275mn in 2022. Advantage reported free cash flow in 2023 of C$53.98mn, but this was offset by negative free cash flow of C$23.2mn from Entropy, its start-up subsidiary developing modular carbon capture and storage (CCS) technology at Advantage’s Glacier natural gas plant northwest of Grande Prairie.
In 2023, Entropy achieved a global first in carbon markets with a C$1bn, 15-year fixed price carbon credit offtake agreement with Canada Growth Fund which has the potential to accelerate the deployment of CCS in Canada, Advantage said.
Capital expenditures in 2023 increased to C$282.8mn from C$241.8mn, Advantage said, while noting its 2024 spending guidance has been reduced to C$220mn-C$250mn from C$260mn-C$290mn.
Under the revised budge, Advantage will drill at least two fewer wells in 2024, defer debottlenecking and reliability projects and a previously unbudgeted capital recovery. Production guidance in 2024, however, remains unchanged.