Yangarra Resources Exits 2021 With 10,060 BOE/D Average Production In Q4
Yangarra Resources Ltd. (TSX: YGR) reported on Tuesday selected unaudited preliminary operational results for Q4 2021. The report is toplined by a quarterly average production of 10,060 boe/d, up from Q3 2021’s 8,710 boe/d and Q4 2020’s 9,169 boe/d.
The average production throughput also exceeded by a hair the previously announced guidance of 10,000 boe/d for the quarter.
The quarter also generated $32 million in funds flow from operations, also up from last quarter’s $24.1 million and last year’s $12.5 million. This also exceeded the guidance set for the quarter of $29 million.
On capital spending, the company spent $27 million for the quarter, higher than its previously announced estimate of $23 million. The firm said this is primarily due to the drilling conducted through the Christmas break plus additional reclamation and abandonment activities. Capital expenditures during the last quarter and comparable period last year were $23.5 million and $15.2 million, respectively.
Operating netback for the quarter came in at $39.62/boe compared to previous quarter’s $34.58/boe and previous year’s $19.39/boe.
The energy company said that its focus for 2022 will be on reducing its debt while maintaining a 30-well capital program. It ended 2021 with net debt of $197 million coming from its Q3 2021 balance of $201.8 million.
Earlier in December 2021, the firm announced its 2022 guidance, toplined by an average production of 12,000 boe/d generating funds flow from operations at $130 million. Its board also approved a $105 million capital budget for the said well program throughout the year.
By the end of 2021, the company reported a total of 82.8 million boe proved reserves and 58.5 million boe probable reserves. All these are expected to yield NPV(10%) $1.51 billion in future net revenue.
Yangarra Resources last traded at $1.93 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.