Strong prices push Canada’s Pieridae higher in Q2
Strong commodity prices offset a 5% decline in production for Pieridae Energy in Q2 2022, the gas-weighted producer and LNG hopeful reported August 10.
Net operating income reached a quarterly record of C$56mn (US$43.6mn) in the period, up from C$14.4mn a year ago, while adjusted funds flow from operations jumped to C$48.7mn from C$8.5mn. Net income was C$23mn, reversing a year ago loss of C$10mn.
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“Strong commodity prices and steady operations coupled with rigorous operating cost management have resulted in a solid second quarter,” CEO Alfred Sorensen said. “If commodity prices remain strong, Pieridae expects to generate significant free cash flow in the second half of 2022.”
Q2 production averaged 36,378 barrels of oil equivalent (boe)/day, down from 38,404 boe/day in the same period last year, reflecting planned field shut-ins due to turnarounds at two non-operated gas processing facilities and planned and unplanned downtime in Pieridae’s Caroline and Waterton operating areas.
Natural gas production averaged 178.9mn ft3/day, down from 194.2mn ft3/day in Q2 2021, Pieridae said. But its average realized natural gas price nearly doubled year-on-year, to C$4.67/’000 ft3 from C$2.59/’000 ft3, and would have been higher if not for losses on physical forward sales contracts, which represented 52% of first half production.