Enerplus Announces Fourth Quarter and Full Year 2023 Financial and Operating Results
All financial information contained within this news release has been prepared in accordance with
On
HIGHLIGHTS – FULL YEAR 2023
- Exceeded 2023 total and liquids production guidance:
- Total production averaged 100,015 BOE per day (guidance of 98,000 to 99,000 BOE per day).
- Liquids production averaged 62,208 barrels per day (guidance of 60,500 to 61,500 barrels per day).
- Generated adjusted funds flow(1) of
$961.2 million in 2023, which exceeded capital spending of$532.5 million , generating free cash flow(1) of$428.7 million . - Returned
$306.9 million to shareholders through dividends and share repurchases, representing 72% of 2023 free cash flow(1). - Reduced shares outstanding by 7% since year-end 2022 and 17% since year-end 2021.
- Reduced net debt(1) by 46% from year-end 2022, ending 2023 with net debt(1) of
$119.3 million . - Reduced 2023 methane emissions intensity by 45% and Scope 1 and Scope 2 greenhouse gas ("GHG") emissions intensity by 40%, compared to 2021, based on preliminary estimates.
"2023 marked another year of solid operational and financial performance, further demonstrating the quality of our team and North
(1) |
This is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" section for more information. |
FOURTH QUARTER 2023 SUMMARY
Total production for the fourth quarter of 2023 was 103,543 BOE per day, a decrease of 3% compared to the same period in 2022. Liquids production in the fourth quarter was 67,097 barrels per day, an increase of 3% compared to the same period in 2022. Strong well performance in
In
Operating expenses in the fourth quarter of 2023 were
Capital spending totaled
Current tax expense was
(1) |
This is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" section for more information. |
FULL YEAR 2023 SUMMARY
Total production for 2023 was 100,015 BOE per day, broadly flat compared to 2022. Liquids production in 2023 was 62,208, an increase of 1% compared to 2022. Liquids production increased by 9% year-over-year when adjusted for the Canadian asset divestments completed in 2022. The Company's 2023 production exceeded the top end of the total and liquids production guidance ranges of 98,000 to 99,000 BOE per day and 60,500 to 61,500 barrels per day, respectively.
Operating expenses in 2023 were
Current tax expense was
Capital spending totaled
(1) |
This is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" section for more information. |
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) UPDATE
The Company continues to work towards its longer-term emissions reduction targets, including a methane emissions intensity of 0.02 kg CH4/BOE by 2030, and a Scope 1 and Scope 2 GHG emissions intensity of 13 kg CO2e/BOE by 2030, which equates to an approximate intensity reduction of 45% and 30%, respectively, from
As previously disclosed, as part of its emissions reduction strategy
2024 OUTLOOK
As previously announced,
On
(1) |
See "Notice Regarding Information Contained in This News Release - Forward-Looking Information and Statements" in this news release. |
PRICE RISK MANAGEMENT UPDATE
The following is a summary of
|
|
WTI Crude Oil ($/bbl)(1) |
|
Leidy Basis ($/Mcf) |
|
|
Jan 1, 2024 – |
|
|
Swaps |
|
|
|
|
Volume (Mcf/day) |
|
– |
|
40,000 |
Swap Strike |
|
– |
|
( |
|
|
|
|
|
3 Way Collars |
|
|
|
|
Volume (bbls/day) |
|
5,000 |
|
– |
Sold Puts |
|
|
|
– |
Purchased Puts |
|
|
|
– |
Sold Calls |
|
|
|
– |
(1) |
The total average deferred premium spent on our outstanding crude oil contracts is |
FOURTH QUARTER AND FULL YEAR 2023 PRODUCTION AND OPERATIONAL SUMMARY TABLES
Summary of Average Daily Production(1)
|
Three months ended |
|
Twelve months ended |
|||||||
|
|
Marcellus |
Other(2) |
Total |
|
|
Marcellus |
Other(2) |
Total |
|
Light & medium oil (bbl/d) |
- |
- |
- |
- |
|
- |
- |
- |
- |
|
Heavy oil (bbl/d) |
- |
- |
- |
- |
|
- |
- |
- |
- |
|
Tight oil (bbl/d) |
52,831 |
- |
1,181 |
54,011 |
|
49,827 |
- |
951 |
50,779 |
|
Total crude oil (bbl/d) |
52,831 |
- |
1,181 |
54,011 |
|
49,827 |
- |
951 |
50,779 |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas liquids (bbl/d) |
12,952 |
- |
134 |
13,086 |
|
11,323 |
- |
106 |
11,429 |
|
|
|
|
|
|
|
|
|
|
|
|
Conventional natural gas (Mcf/d) |
- |
- |
- |
- |
|
- |
- |
- |
- |
|
Shale gas (Mcf/d) |
74,637 |
142,926 |
1,112 |
218,675 |
|
70,645 |
155,329 |
866 |
226,840 |
|
Total natural gas (Mcf/d) |
74,637 |
142,926 |
1,112 |
218,675 |
|
70,645 |
155,329 |
866 |
226,840 |
|
|
|
|
|
|
|
|
|
|
|
|
Total production (BOE/d) |
78,222 |
23,821 |
1,500 |
103,543 |
|
72,925 |
25,888 |
1,202 |
100,015 |
|
(1) |
Table may not add due to rounding. |
(2) |
Largely comprises the |
Summary of Wells Drilled(1)
|
Three months ended |
|
Twelve months ended |
||||||||
|
Operated |
|
Non-Operated |
|
Operated |
|
Non-Operated |
||||
|
Gross |
Net |
|
Gross |
Net |
|
Gross |
Net |
|
Gross |
Net |
|
19 |
15.1 |
|
7 |
0.3 |
|
65 |
54.7 |
|
73 |
7.1 |
Marcellus |
- |
- |
|
16 |
0.4 |
|
- |
- |
|
56 |
1.2 |
|
- |
- |
|
- |
- |
|
3 |
2.9 |
|
- |
- |
Total |
19 |
15.1 |
|
23 |
0.7 |
|
68 |
57.6 |
|
129 |
8.3 |
(1) |
Table may not add due to rounding. |
Summary of Wells Brought On-Stream(1)
|
Three months ended |
|
Twelve months ended |
||||||||
|
Operated |
|
Non-Operated |
|
Operated |
|
Non-Operated |
||||
|
Gross |
Net |
|
Gross |
Net |
|
Gross |
Net |
|
Gross |
Net |
|
- |
- |
|
36 |
3.0 |
|
46 |
40.0 |
|
77 |
9.4 |
Marcellus |
- |
- |
|
30 |
0.6 |
|
- |
- |
|
52 |
0.9 |
|
- |
- |
|
- |
- |
|
3 |
2.9 |
|
10 |
0.2 |
Total |
- |
- |
|
66 |
3.6 |
|
49 |
43.0 |
|
139 |
10.5 |
(1) |
Table may not add due to rounding. |
SUMMARY FINANCIAL AND OPERATING RESULTS
|
|
Three months ended |
|
Twelve months ended |
||||||||
SELECTED FINANCIAL RESULTS |
|
|
|
|
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Financial (US$, thousands, except ratios) |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss) |
|
$ |
116,702 |
|
$ |
330,708 |
|
$ |
456,076 |
|
$ |
914,302 |
Adjusted Net Income(1) |
|
|
115,253 |
|
|
181,069 |
|
|
477,570 |
|
|
707,061 |
Cash Flow from Operating Activities |
|
|
297,946 |
|
|
316,584 |
|
|
938,190 |
|
|
1,173,382 |
Adjusted Funds Flow(1) |
|
|
240,526 |
|
|
315,379 |
|
|
961,243 |
|
|
1,230,289 |
Dividends to Shareholders - Declared |
|
|
12,242 |
|
|
12,223 |
|
|
48,603 |
|
|
41,597 |
Net Debt(1) |
|
|
119,298 |
|
|
221,516 |
|
|
119,298 |
|
|
221,516 |
Capital Spending |
|
|
91,507 |
|
|
85,647 |
|
|
532,450 |
|
|
432,004 |
Property and Land Acquisitions |
|
|
1,681 |
|
|
2,853 |
|
|
7,342 |
|
|
22,515 |
Property and Land Divestments |
|
|
1,267 |
|
|
211,987 |
|
|
2,969 |
|
|
231,373 |
Net Debt to Adjusted Funds Flow Ratio(1) |
|
|
0.1x |
|
|
0.2x |
|
|
0.1x |
|
|
0.2x |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial per Weighted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss) - Basic |
|
$ |
0.57 |
|
$ |
1.49 |
|
$ |
2.16 |
|
$ |
3.91 |
Net Income/(Loss) - Diluted |
|
|
0.55 |
|
|
1.43 |
|
|
2.09 |
|
|
3.77 |
Weighted Average Number of Shares Outstanding (000's) - Basic |
|
|
204,624 |
|
|
222,404 |
|
|
211,353 |
|
|
233,946 |
Weighted Average Number of Shares Outstanding (000's) - Diluted |
|
|
211,176 |
|
|
231,149 |
|
|
217,896 |
|
|
242,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Financial Results per BOE (2)(3) |
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil & Natural Gas Sales(4) |
|
$ |
45.88 |
|
$ |
55.78 |
|
$ |
45.56 |
|
$ |
64.27 |
Commodity Derivative Instruments |
|
|
0.33 |
|
|
(4.83) |
|
|
1.56 |
|
|
(9.48) |
Operating Expenses |
|
|
(11.67) |
|
|
(9.68) |
|
|
(10.67) |
|
|
(9.99) |
Transportation Costs |
|
|
(3.84) |
|
|
(4.04) |
|
|
(3.99) |
|
|
(4.22) |
Production Taxes |
|
|
(3.81) |
|
|
(4.03) |
|
|
(3.70) |
|
|
(4.56) |
General and Administrative Expenses |
|
|
(1.41) |
|
|
(1.15) |
|
|
(1.33) |
|
|
(1.17) |
Cash Share-Based Compensation Recovery/(Expense) |
|
|
0.15 |
|
|
(0.21) |
|
|
0.01 |
|
|
(0.16) |
Interest, Foreign Exchange and Other Expenses |
|
|
(0.36) |
|
|
0.56 |
|
|
(0.36) |
|
|
(0.32) |
Current Income Tax Recovery/(Expense) |
|
|
(0.02) |
|
|
(0.34) |
|
|
(0.75) |
|
|
(0.77) |
Adjusted Funds Flow(1) |
|
$ |
25.25 |
|
$ |
32.06 |
|
$ |
26.33 |
|
$ |
33.60 |
|
|
Three months ended |
|
Twelve months ended |
||||||||
SELECTED OPERATING RESULTS |
|
|
|
|
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Average Daily Production (3) |
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil (bbls/day) |
|
|
54,011 |
|
|
54,601 |
|
|
50,779 |
|
|
52,017 |
Natural Gas Liquids (bbls/day) |
|
|
13,086 |
|
|
10,755 |
|
|
11,429 |
|
|
9,681 |
Natural Gas (Mcf/day) |
|
|
218,675 |
|
|
249,351 |
|
|
226,840 |
|
|
231,770 |
Total (BOE/day) |
|
|
103,543 |
|
|
106,915 |
|
|
100,015 |
|
|
100,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
% Crude Oil and Natural Gas Liquids |
|
|
65 % |
|
|
61 % |
|
|
62 % |
|
|
61 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Selling Price (3)(4) |
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil (per bbl) |
|
$ |
77.21 |
|
$ |
83.06 |
|
$ |
77.42 |
|
$ |
93.63 |
Natural Gas Liquids (per bbl) |
|
|
16.86 |
|
|
21.88 |
|
|
17.93 |
|
|
30.70 |
Natural Gas (per Mcf) |
|
|
1.65 |
|
|
4.76 |
|
|
1.85 |
|
|
5.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Wells Drilled |
|
|
15.8 |
|
|
9.9 |
|
|
65.8 |
|
|
51.7 |
(1) |
This financial measure is a non-GAAP financial measure. See "Non-GAAP and Other Financial Measures" section in this news release. |
(2) |
Non‑cash amounts have been excluded. |
(3) |
Represents net production volumes. See "Presentation of Production and Reserves Information" section in this news release. |
(4) |
Before transportation costs and commodity derivative instruments. |
Condensed Consolidated Balance Sheets
(US$ thousands) |
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ |
66,731 |
|
$ |
38,000 |
Accounts receivable, net of allowance for doubtful accounts |
|
|
|
268,433 |
|
|
276,590 |
Other current assets |
|
|
|
44,959 |
|
|
56,552 |
Derivative financial assets |
|
|
|
3,161 |
|
|
36,542 |
|
|
|
|
383,284 |
|
|
407,684 |
Property, plant and equipment: |
|
|
|
|
|
|
|
Crude oil and natural gas properties (full cost method) |
|
|
|
1,511,682 |
|
|
1,322,904 |
Other capital assets |
|
|
|
9,546 |
|
|
10,685 |
Property, plant and equipment |
|
|
|
1,521,228 |
|
|
1,333,589 |
Other long-term assets |
|
|
|
5,945 |
|
|
21,154 |
Right-of-use assets |
|
|
|
24,996 |
|
|
20,556 |
Deferred income tax asset |
|
|
|
133,023 |
|
|
154,998 |
Total Assets |
|
|
$ |
2,068,476 |
|
$ |
1,937,981 |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
Accounts payable |
|
|
$ |
385,670 |
|
$ |
398,482 |
Current portion of long-term debt |
|
|
|
80,600 |
|
|
80,600 |
Derivative financial liabilities |
|
|
|
— |
|
|
10,421 |
Current portion of lease liabilities |
|
|
|
12,087 |
|
|
13,664 |
|
|
|
|
478,357 |
|
|
503,167 |
Long-term debt |
|
|
|
105,429 |
|
|
178,916 |
Asset retirement obligation |
|
|
|
125,452 |
|
|
114,662 |
Lease liabilities |
|
|
|
14,333 |
|
|
9,262 |
Deferred income tax liability |
|
|
|
117,556 |
|
|
55,361 |
Total Liabilities |
|
|
|
841,127 |
|
|
861,368 |
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital – authorized unlimited common shares, no par value |
|
|
|
|
|
|
|
Issued and outstanding: |
|
|
|
|
|
|
|
|
|
|
|
2,692,053 |
|
|
2,837,329 |
Paid-in capital |
|
|
|
44,499 |
|
|
50,457 |
Accumulated deficit |
|
|
|
(1,207,862) |
|
|
(1,509,832) |
Accumulated other comprehensive loss |
|
|
|
(301,341) |
|
|
(301,341) |
|
|
|
|
1,227,349 |
|
|
1,076,613 |
Total Liabilities & Shareholders' Equity |
|
|
$ |
2,068,476 |
|
$ |
1,937,981 |
Condensed Consolidated Statements of Income/(Loss) and Comprehensive Income/(Loss)
For the year ended |
|
|
2023 |
|
2022 |
|
2021 |
|||
Revenues |
|
|
|
|
|
|
|
|
|
|
Crude oil and natural gas sales |
|
|
$ |
1,663,016 |
|
$ |
2,353,374 |
|
$ |
1,482,575 |
Commodity derivative instruments gain/(loss) |
|
|
|
31,317 |
|
|
(197,686) |
|
|
(274,432) |
|
|
|
|
1,694,333 |
|
|
2,155,688 |
|
|
1,208,143 |
Expenses |
|
|
|
|
|
|
|
|
|
|
Operating |
|
|
|
389,677 |
|
|
365,701 |
|
|
292,433 |
Transportation |
|
|
|
145,576 |
|
|
154,658 |
|
|
128,309 |
Production taxes |
|
|
|
135,131 |
|
|
166,995 |
|
|
101,953 |
General and administrative |
|
|
|
65,664 |
|
|
69,954 |
|
|
56,807 |
Depletion, depreciation, accretion and impairment |
|
|
|
377,495 |
|
|
309,367 |
|
|
274,756 |
Interest |
|
|
|
17,597 |
|
|
24,553 |
|
|
27,395 |
Foreign exchange (gain)/loss |
|
|
|
60 |
|
|
10,159 |
|
|
(6,908) |
Gain on divestment of assets |
|
|
|
— |
|
|
(151,937) |
|
|
— |
Transaction costs and other expense/(income) |
|
|
|
(4,297) |
|
|
(1,360) |
|
|
(2,487) |
|
|
|
|
1,126,903 |
|
|
948,090 |
|
|
872,258 |
Income/(Loss) Before Taxes |
|
|
|
567,430 |
|
|
1,207,598 |
|
|
335,885 |
Current income tax expense/(recovery) |
|
|
|
27,183 |
|
|
28,063 |
|
|
2,689 |
Deferred income tax expense/(recovery) |
|
|
|
84,171 |
|
|
265,233 |
|
|
98,755 |
Net Income/(Loss) |
|
|
$ |
456,076 |
|
$ |
914,302 |
|
$ |
234,441 |
|
|
|
|
|
|
|
|
|
|
|
Other Comprehensive Income/(Loss) |
|
|
|
|
|
|
|
|
|
|
Unrealized gain/(loss) on foreign currency translation |
|
|
|
— |
|
|
22,507 |
|
|
(6,893) |
Foreign exchange gain/(loss) on net investment hedge, net of tax |
|
|
|
— |
|
|
(26,541) |
|
|
4,097 |
Total Comprehensive Income/(Loss) |
|
|
$ |
456,076 |
|
$ |
910,268 |
|
$ |
231,645 |
|
|
|
|
|
|
|
|
|
|
|
Net Income/(Loss) per Share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
2.16 |
|
$ |
3.91 |
|
$ |
0.93 |
Diluted |
|
|
$ |
2.09 |
|
$ |
3.77 |
|
$ |
0.90 |
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
For the year ended |
|
|
2023 |
|
2022 |
|
2021 |
|||
Operating Activities |
|
|
|
|
|
|
|
|
|
|
Net income/(loss) |
|
|
$ |
456,076 |
|
$ |
914,302 |
|
$ |
234,441 |
Non-cash items add/(deduct): |
|
|
|
|
|
|
|
|
|
|
Depletion, depreciation, accretion and impairment |
|
|
|
377,495 |
|
|
309,367 |
|
|
274,756 |
Unrealized (gain)/loss on derivative instruments |
|
|
|
25,621 |
|
|
(150,526) |
|
|
109,536 |
Deferred income tax expense/(recovery) |
|
|
|
84,171 |
|
|
265,233 |
|
|
98,755 |
Unrealized foreign exchange (gain)/loss on working capital |
|
|
|
363 |
|
|
11,217 |
|
|
(8,055) |
Share-based compensation and general and administrative |
|
|
|
17,320 |
|
|
22,529 |
|
|
13,424 |
Other expense/(income) |
|
|
|
2,125 |
|
|
(4,137) |
|
|
(4,594) |
Amortization of debt issuance costs |
|
|
|
1,556 |
|
|
1,476 |
|
|
1,093 |
Translation of |
|
|
|
— |
|
|
(937) |
|
|
(2,330) |
Gain on divestment of assets |
|
|
|
— |
|
|
(151,937) |
|
|
— |
Investing activities in Other income |
|
|
|
(3,484) |
|
|
13,702 |
|
|
(4,593) |
Asset retirement obligation settlements |
|
|
|
(14,999) |
|
|
(17,401) |
|
|
(12,951) |
Changes in non-cash operating working capital |
|
|
|
(8,054) |
|
|
(39,506) |
|
|
(94,643) |
Cash flow from/(used in) operating activities |
|
|
|
938,190 |
|
|
1,173,382 |
|
|
604,839 |
|
|
|
|
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
Drawings from/(repayment of) bank credit facilities |
|
|
|
5,900 |
|
|
(341,655) |
|
|
395,379 |
Repayment of senior notes |
|
|
|
(80,600) |
|
|
(100,600) |
|
|
(81,600) |
Purchase of common shares under Normal Course Issuer Bid |
|
|
|
(258,276) |
|
|
(410,906) |
|
|
(123,182) |
Proceeds from the issuance of shares |
|
|
|
— |
|
|
— |
|
|
98,339 |
Share-based compensation – tax withholdings settled in cash |
|
|
|
(16,720) |
|
|
(13,386) |
|
|
(3,551) |
Dividends |
|
|
|
(48,603) |
|
|
(41,597) |
|
|
(32,284) |
Cash flow from/(used in) financing activities |
|
|
|
(398,299) |
|
|
(908,144) |
|
|
253,101 |
|
|
|
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
Capital and office expenditures |
|
|
|
(544,771) |
|
|
(429,873) |
|
|
(271,131) |
Bruin acquisition |
|
|
|
— |
|
|
— |
|
|
(420,249) |
|
|
|
|
— |
|
|
— |
|
|
(305,076) |
Canadian divestments |
|
|
|
35,847 |
|
|
158,033 |
|
|
— |
Property and land acquisitions |
|
|
|
(7,342) |
|
|
(22,515) |
|
|
(9,846) |
Property and land divestments |
|
|
|
5,469 |
|
|
18,385 |
|
|
108,193 |
Other (expense)/income |
|
|
|
— |
|
|
(13,702) |
|
|
4,593 |
Cash flow from/(used in) investing activities |
|
|
|
(510,797) |
|
|
(289,672) |
|
|
(893,516) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
|
(363) |
|
|
1,086 |
|
|
6,979 |
Change in cash and cash equivalents |
|
|
|
28,731 |
|
|
(23,348) |
|
|
(28,597) |
Cash and cash equivalents, beginning of year |
|
|
|
38,000 |
|
|
61,348 |
|
|
89,945 |
Cash and cash equivalents, end of year |
|
|
$ |
66,731 |
|
$ |
38,000 |
|
$ |
61,348 |
About
NOTICE REGARDING INFORMATION CONTAINED IN THIS NEWS RELEASE
Currency and Accounting Principles
All amounts in this news release are stated in
Barrels of Oil Equivalent
This news release contains references to "BOE" (barrels of oil equivalent), "MBOE" (one thousand barrels of oil equivalent), and "MMBOE" (one million barrels of oil equivalent).
Presentation of Production and Reserves Information
All production volumes presented in this news release are reported on a "net" basis (the Company's working interest share after deduction of royalty obligations, plus the Company's royalty interests), unless expressly indicated that it is being presented on a "gross" basis.
All reserves information presented herein are reported in accordance with Canadian reserve evaluation standards under National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("Canadian NI 51-101 Standards"), except certain reserves information effective
All references to "liquids" in this news release include light and medium crude oil, heavy oil and tight oil (all together referred to as "crude oil") and NGLs on a combined basis. All references to "natural gas" in this news release include conventional natural gas and shale gas on a combined basis.
FORWARD-LOOKING INFORMATION AND STATEMENTS
This news release contains certain forward-looking information and statements ("forward-looking information") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "guidance", "ongoing", "may", "will", "project", "intend", "plans", "budget", "strategy" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to the following: expected transaction with Chord, including timing for completion thereof and its effect on
The forward-looking information contained in this news release reflects several material factors and expectations and assumptions of
The forward-looking information included in this news release is not a guarantee of future performance and should not be unduly relied upon. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation: failure to complete the proposed transaction with Chord; continued instability, or further deterioration, in global economic and market conditions, including from inflation and/or
The forward-looking information contained in this news release speaks only as of the date of this news release, and we do not assume any obligation to publicly update or revise such forward-looking information to reflect new events or circumstances, except as may be required pursuant to applicable laws.
NON-GAAP AND OTHER FINANCIAL MEASURES
Non-GAAP Financial Measures
This news release includes references to certain non-GAAP financial measures and non-GAAP ratios used by the Company to evaluate its financial performance, financial position or cash flow. Non-GAAP financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-GAAP ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-GAAP financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.
These non-GAAP financial measures and non-GAAP ratios do not have standardized meanings or definitions as prescribed by U.S. GAAP and may not be comparable with the calculation of similar financial measures by other entities. For each measure, we have: (a) indicated the composition of the measure; (b) identified the most directly comparable GAAP financial measure and provided comparative detail where appropriate; (c) indicated the reconciliation of the measure to the most directly comparable GAAP financial measure to the extent one exists; and (d) provided details on the usefulness of the measure for the reader. These non-GAAP financial measures and non-GAAP ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
"Adjusted funds flow" is used by
|
Year ended |
||||||||
($ millions) |
|
|
2023 |
|
|
2022 |
|
|
2021 |
Cash flow from/(used in) operating activities |
|
$ |
938.2 |
|
$ |
1,173.4 |
|
$ |
604.8 |
Asset retirement obligation settlements |
|
|
15.0 |
|
|
17.4 |
|
|
13.0 |
Changes in non-cash operating working capital |
|
|
8.0 |
|
|
39.5 |
|
|
94.6 |
Adjusted funds flow |
|
$ |
961.2 |
|
$ |
1,230.3 |
|
$ |
712.4 |
"Adjusted funds flow before tax" is used by
|
Year ended |
||||||||
($ millions) |
|
2023 |
|
2022 |
|
2021 |
|||
Adjusted funds flow(1) |
|
$ |
961.2 |
|
$ |
1,230.3 |
|
$ |
712.4 |
Current income tax expense |
|
|
27.2 |
|
|
28.1 |
|
|
2.7 |
Adjusted funds flow before tax |
|
$ |
988.4 |
|
$ |
1,258.4 |
|
$ |
715.1 |
(1) |
See adjusted funds flow reconciliation above for a breakdown of the adjustments made to cash flow from/(used in) operating activities. |
"Adjusted net income/(loss)" is used by
|
Year ended |
||||||||
($ millions) |
|
2023 |
|
2022 |
|
2021 |
|||
Net income/(loss) |
|
$ |
456.1 |
|
$ |
914.3 |
|
$ |
234.4 |
Unrealized derivative instrument, foreign exchange and marketable securities (gain)/loss |
|
|
29.7 |
|
|
(141.7) |
|
|
101.4 |
Gain on divestment of assets |
|
|
— |
|
|
(151.9) |
|
|
— |
Other expense/(income) related to investing activities |
|
|
(2.2) |
|
|
13.6 |
|
|
(4.6) |
Income tax rate adjustment on deferred taxes |
|
|
— |
|
|
8.8 |
|
|
6.0 |
Asset impairment |
|
|
— |
|
|
— |
|
|
3.4 |
Tax effect on above items |
|
|
(6.0) |
|
|
64.0 |
|
|
(24.9) |
Adjusted net income/(loss) |
|
$ |
477.6 |
|
$ |
707.1 |
|
$ |
315.7 |
"Free cash flow" is used by
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Year ended |
|||||||||||||||||||||
($ millions) |
|
2023 |
|
2022 |
|
2021 |
||||||||||||||||
Adjusted funds flow(1) |
|
$ |
961.2 |
|
$ |
1,230.3 |
|
$ |
712.4 |
|||||||||||||
Capital spending |
|
|
(532.5) |
|
|
(432.0) |
|
|
(302.3) |
|||||||||||||
Free cash flow |
|
$ |
428.7 |
|
$ |
798.3 |
|
$ |
410.1 |
(1) |
See adjusted funds flow reconciliation above for a breakdown of the adjustments made to cash flow from/(used in) operating activities. |
"Net debt" is used by
|
Year ended |
|||||
($ millions) |
|
2023 |
|
2022 |
||
Current portion of long-term debt |
|
$ |
80.6 |
|
$ |
80.6 |
Long-term debt |
|
|
105.4 |
|
|
178.9 |
Less: Cash and cash equivalents |
|
|
(66.7) |
|
|
(38.0) |
Net debt |
|
$ |
119.3 |
|
$ |
221.5 |
"Net debt to adjusted funds flow ratio" is used by
|
Year ended |
|||||
($ millions) |
|
2023 |
|
2022 |
||
Net debt(1) |
|
$ |
119.3 |
|
$ |
221.5 |
Trailing adjusted funds flow |
|
|
961.2 |
|
|
1,230.3 |
Net debt to adjusted funds flow ratio |
|
|
0.1x |
|
|
0.2x |
(1) |
See net debt reconciliation above. |
Other Financial Measures
SUPPLEMENTARY FINANCIAL MEASURES
Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-GAAP financial measures, and (d) are not non-GAAP ratios. The following section provides an explanation of the composition of those supplementary financial measures if not previously provided:
"Capital spending" Capital and office expenditures, excluding other capital assets/office capital and property and land acquisitions and divestments and non-cash investing working capital.
"Cash general and administrative expenses" or "Cash G&A expenses" General and administrative expenses that are settled through cash payout, as opposed to expenses that relate to accretion or other non-cash allocations that are recorded as part of general and administrative expenses.
"Cash share-based compensation" or "Cash SBC expenses" Share-based compensation that is settled by way of cash payout, as opposed to equity settled.
Electronic copies of
SOURCE