Montney producer Advantage Energy sees Q2 loss
Canadian Montney producer Advantage Energy said July 25 it had a net loss in Q2 2024 of C$12.1mn (US$8.75mn) compared with net earnings of C$2.5mn in the same period a year ago.
It attributed the loss to lower natural gas prices, partially offset by increased production and lower royalties.
Total production in the quarter averaged 66,401 barrels of oil equivalent (boe)/day, up from 51,842 boe/day a year ago, while natural gas production increased to 355.6mn ft3/day from 272.9mn ft3/day.
But the company’s average realised natural gas price – including realised derivatives – fell to C$1.82/’000 ft3 from C$2.81/’000 ft3.
Net capital expenditures in the quarter increased to C$490.9mn from C$64.9mn in Q2 2023, largely reflecting the C$445.5mn acquisition of certain Montney and Charlie Lake assets, which closed in late June.
As a result of the acquisition and continued outperformance of recent wells, Advantage has increased its production guidance for 2024 to 70,000-73,000 boe/day from earlier guidance of 65,000-68,000 boe/day, with liquids production expected to account for 13% of total production, up from 10% in the earlier guidance.