Cequence Energy Ltd. Reports Audited Consolidated Earnings and Operating Results for the Fourth Quarter and Full Year Ended December 31, 2014; Revises Earnings Guidance for the First Quarter and Provides Earnings Guidance for the Full Year 2015
Mar 5 15
Cequence Energy Ltd. reported audited consolidated earnings and operating results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported production revenues of $25,566,000 compared to $28,483,000 a year ago. Funds flow from operations was $13,745,000 compared to $14,855,000 a year ago. Diluted FFO per share was $0.06 compared to $0.07 a year ago. Comprehensive loss was $4,422,000 compared to $827,000 a year ago. Basic and diluted loss per share was $0.02. Total capital expenditures were $54,091,000 compared to $51,531,000 a year ago. Cash flow was $13.75 million or $0.06 per share compared to $14.86 million or $0.07 per share a year ago.
For the year, the company reported production revenues of $136,893,000 compared to $105,617,000 a year ago. Funds flow from operations was $70,650,000 compared to $51,312,000 a year ago. Basic and diluted FFO per share was $0.33 compared to $0.25 a year ago. Comprehensive income was $79,368,000 compared to comprehensive loss of $2,613,000 a year ago. Diluted income per share was $0.37 against diluted loss per share of $0.01 a year ago. Total capital expenditures were $29,433,000 compared to $115,234,000 a year ago. Cash flow was $70.65 million or $0.33 per share compared to $51.31 million or $0.25 per share a year ago.
For the quarter, the company reported natural gas production volumes of 49,265,000 Mcf/d compared to 53,433,000 Mcf/d a year ago. Crude oil production volumes was 97,000 bbls/d compared to 119,000 bbls/d a year ago. Natural gas liquids production volumes was 541,000 bbls/d compared to 569,000 bbls/d a year ago. Total production volumes was 9,720,000 boe/d compared to 10,394,000 boe/d a year ago.
For the year, the company reported natural gas production volumes of 55,826,000 Mcf/d compared to 52,705,000 Mcf/d a year ago. Crude oil production volumes was 118,000 bbls/d compared to 125,000 bbls/d a year ago. Natural gas liquids production volumes was 583,000 bbls/d compared to 524,000 bbls/d a year ago. Total production volumes was 10,932,000 boe/d compared to 10,183,000 boe/d a year ago.
The company revised earnings guidance for the first quarter and provided earnings guidance for the full year 2015. For the quarter, production is expected to average 11,500 boepd, compared to 12,500 boepd to 13,000 boepd as previously guided due to onstream delays and recent maintenance to the TransCanada system and the resulting spillover of production volumes filling existing Alliance capacity. Funds flow from operations is expected $10,000,000 compared to $12,000,000 expected previously. Funds flow from operations per share is expected $0.05 compared to $0.06 expected previously. Capital expenditures, prior to dispositions are expected $22,000,000.
For the year, production is expected to average 11,500 boepd. Funds flow from operations is expected $40,000,000. Funds flow from operations per share is expected $0.19. Capital expenditures, prior to dispositions are expected $60,000,000.
Cequence Energy Ltd. Provides Operational Update and Capital Budget for First Six Months of 2015
Jan 21 15
Cequence Energy Ltd. provided an operational update and a capital budget for the first six months of 2015. The company expects 2014 production to average approximately 11,000 boepd. Following the start-up of the expanded 13-11 facility at Simonette in January, production has reached a rate of 12,000 boepd. Since the sale of Ansell in July, 2014, Cequence has had an active drilling program in Simonette with two rigs running continuously on three separate Montney pad locations. Cequence is encouraged by the results of its recent drilling program which is utilizing enhanced fracture design characteristics on the Montney formation similar to the practices implemented by other area operators. To date, eight Montney wells have been completed and have initially performed at, or above expectations. Longer term production performance is expected to validate the enhanced completion techniques being utilized by Cequence. The first three wells from the 1-32 pad (completed in October) have a combined average 30 day IP rate of 3,300 boepd (83% natural gas). Three additional Montney wells have been successfully completed from the 1-32-61-26W5 pad in early January, bringing the total number of wells from this pad to six. The three most recent wells are currently being tied in to the 1-32 surface facility and are expected to be on production by early February. Cost performance has been improving with the three most recent wells drilled and completed for an average cost of $8.0 MM per well. Two Montney wells were successfully completed in early December from the 12-26-61-27W5 pad. The two wells have produced for 16 days on restricted cleanup at a combined rate of 1,750 boepd (92% natural gas). Two additional Montney wells (1.0 net) from the winter program have been drilled from the 15-15-61-26W5 pad and are scheduled to be completed in February. The company's Dunvegan well at 11-12 has been producing with an average 90 day IP rate of 1,300 boepd. One additional Dunvegan well (0.65 net) has been drilled from the 2-12-61-2W6 pad on budget and the completion is expected to commence in late January. The company has had excellent execution and has successfully completed 14 consecutive wells, including 350 frac stages, in the past twelve months. Simonette 13-11 Facility Expansion. The Company completed the expansion of its 100 mmcfd facility at Simonette (13-11) and chose to move the commissioning of the facility from December, 2014 to January, 2015 to avoid higher costs and potential service quality issues over the Christmas season. Commissioning of the plant involved a full one week shut down of the entire Simonette field beginning on January 6th with a systematic one week step-up restart which commenced on January 13th. As of January 20th, total corporate production based on field estimates has ramped to 12,000 boepd with approximately 2,500 boepd to be turned on or restarted by February.
With the recent weakness in commodity prices, the company has decided to eliminate three wells from its first quarter of 2015 budget. As a result, budgeted capital expenditures for the first quarter have been reduced to $22 million from the previous $45 million. The company is forecasting funds flow to be approximately $12 million in the first quarter of 2015 based on estimates of AECO pricing of $2.70 CAD/GJ and WTI USD 50/bbl. March 31, 2015 net debt is budgeted to be approximately $85 million (1.8 times first quarter annualized funds flow).