Valeura Energy Inc.: Third Quarter 2024 Results

SINGAPORE, Nov. 13, 2024 (GLOBE NEWSWIRE) -- Valeura Energy Inc. (TSX:VLE, OTCQX:VLERF) ("Valeura" or the "Company") reports its unaudited financial and operating results for the three and nine month periods ended September 30, 2024.

Q3 2024 Highlights

• Nong Yao C field development online in August 2024, resulting in a 66% increase in greater Nong Yao production, exceeding management's expectations(1)(2);
• Strong drilling performance, with Nong Yao C drilling programme executed faster than planned and 25% below budget, giving rise to more 2024 drilling than originally expected;
• Wassana field mobile offshore production unit ("MOPU") inspection completed and the field resumed production in early August 2024;
• Excellent safety performance with no incidents or spills;
• Revenue of US$139 million, with an average price realisation of approximately US$79/bbl;
• Adjusted EBITDAX of US$71 million(3), and adjusted cashflow from operations of US$50 million(3); and
• Cash of US$156 million(3), after having paid US$30 million in petroleum taxes related to H1 2024.

Recent Achievements

• Record aggregate production in both September and October 2024, averaging 26.4 mbbls/d(1);
• Guidance assumptions re-affirmed, with expectation for Q4 production of approximately 26 mbbls/d, resulting in the mid-point full year production range estimate;
• Higher crude oil inventory at the end of Q3 and higher Q4 production expected to yield record sales in Q4 2024;
• Corporate restructuring fully completed on November 1, 2024, resulting in the pooling of US$397 million in cumulative tax losses(4) across the Manora, Nong Yao, and Wassana fields, effective November 1, 2024; and
• Approval of a share buyback programme to commence on November 14, 2024.

(1) Working interest share production, before royalties.
(2) 11.6 mbbls/d (last seven days of Q3), compared to 7.0 mbbls/d (the week just prior to starting Nong Yao C).
(3) Non-IFRS financial measure - see "Non-IFRS Financial Measures and Ratios" section in the Company's management discussion & analysis for the three and nine month period ended September 30, 2024 (the "MD&A").
(4) Unaudited internal management estimate as at September 30, 2024, based on Thai baht exchange rate as of November 1, 2024, subject to review by tax advisors and auditors.

Dr. Sean Guest, President and CEO commented:

"I am pleased with our recent operational and financial delivery.  We are delivering on all aspects of our business including production and cashflow, while also adding reserves and resources across our portfolio.  Our team demonstrated a top-notch performance at our Nong Yao C field development, executing the project safely, and delivering oil production rates at the top end of our expectations.  With ongoing smooth production at Nong Yao, and across all of our assets, we have achieved record production rates in both September and October, with our working interest share oil production before royalties averaging 26.4 mbbls/d.  We are poised to achieve all of our guidance estimates for the year while at the same time having reduced our capex and delivering more wells than originally planned.

The consolidation of all our Thai III assets into a single subsidiary is a milestone for our business.  All steps are now completed for us to pool our forward costs and apply our substantial tax loss carry-forwards to the combined income generated from the Nong Yao, Manora, and Wassana fields from November 1, 2024 on.  This will immediately increase the Company's cash flow generation and further enhance our ability to extend the producing life of our fields in Thailand. 

At the same time, the combined effects of higher production and more-than-usual oil in inventory at the end of Q3 create the potential for strong financial performance in Q4 2024.  Given the strength of our balance sheet and expected cash flows in the near term, we have substantial optionality in our approach to capital allocation.  We are well-positioned to continue pursuing value through growth, both organically in our current portfolio and with M&A, while also providing returns to shareholders.  As such we have recently announced the approval of a share buyback programme to commence on November 14, 2024.

To view full press release, please visit: https://www.globenewswire.com/en/news-release/2024/11/13/2979934/0/en/Valeura-Energy-Inc-Third-Quarter-2024-Results.html