Saturn Oil & Gas Inc. Reports Q3 2022 Financial and Operational Results Highlighted by Record Quarterly Cash Flow per Share

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Saturn Oil & Gas Inc.

Published on

Nov 09, 2022

Last updated

Nov 09, 2022

Calgary, Alberta--(Newsfile Corp. - November 8, 2022) - Saturn Oil & Gas Inc. (TSXV: SOIL) (FSE: SMKA) (OTCQX: OILSF) ("Saturn" or the "Company") is pleased to report its financial and operating results for the three and nine months ended September 30, 2022.

"The third quarter of 2022 is the first reporting period reflecting the highly positive impact of the Viking acquisition, closed on July 6, 2022, in terms of increased netbacks and additional production, resulting in record corporate cash flow," commented John Jeffrey, Chief Executive Officer of Saturn. "Saturn is now actively developing the newly acquired Viking asset with 21 of our recent 27 drilled Viking wells targeting light oil on the new acreage, with a 100% success rate."

Third Quarter 2022 Highlights:

  • Closed the Viking Acquisition for $240.1 million, after interim closing adjustments, funded by equity financings of $75.2 million and a $200 million expansion of our Senior Term Loan facility;

  • Realized record average production in the third quarter of 2022 of 10,965 boe/d, a 57% increase compared to 6,970 boe/d in the third quarter of 2021;

  • Achieved record quarterly petroleum and natural gas sales of $105.7 million, up 29% from $82.2 million in the second quarter of 2022 and an increase of 124% from $47.1 million in the third quarter of 2021;

  • Achieved record quarterly Adjusted EBITDA(1) of $50.3 million, a 179% increase over $18.0 million in Q2 2022;

  • Achieved operating netbacks(1) for the third quarter of 2022 of $67.78 per boe compared to $36.59 per boe in Q3 2021 and $76.22 per boe in Q2 2022;

  • Generated Adjusted funds flow(1) of $39.8 million in the three months ended September 30, 2022 ($0.69 per basic share), compared to $14.5 million in Q2 2022 ($0.45 per basic share), an increase of 174% (53% per share increase);

  • Invested $36.8 million of development capital in the third quarter, drilling 30, 100% working interest wells; 23 in the Viking area and 7 Frobisher wells in the Oxbow area (including 1 disposal well), and spudding an additional four 100% working interest Viking wells prior to the end of the quarter;

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