The following is a summary of the Saturn Oil & Gas Inc. (OILSF) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Saturn Oil & Gas reported Q1 average production of 26,000 BOE per day, resulting in Net Operating Income of $96 million.

• The company realized an operating netback of $40 per BOE compared to $47 per BOE in Q4 2023, driven by widening WTI MSW differential and cold weather impacts on production.

• Saturn reported a cash flow of $68 million or $0.46 per share and invested $40 million in capital expenditures.

• The company saw free cash flow of $34 million, which it used for debt repayment, reducing its net debt to $386 million by the end of Q1.

• Through the sale of its Swan Hills package and a significant acquisition in Saskatchewan, the company projects net debt to be $792 million post-transaction.

Business Progress:

• Saturn started the year with strong initial production rates from nine wells drilled in Southeast Saskatchewan and Central Alberta, despite temporary impacts from adverse weather conditions.

• Despite a temporary shutdown, causing a decrease of 300 barrels per day in quarterly average production, the company reported no permanent damage.

• The company's acquisition of assets in Saskatchewan, expected to close in June, positions it for a 60% increase in crude oil production to 86% liquids weighting.

• With the new oil production currently unhedged, Saturn expects to see an increase in their average sale price and netback per BOE.

• Saturn targets a production rate of 40,000 BOE per day for the next year, with a projected run-rate revenue exceeding $1 billion.

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