The following is a summary of the Strathcona Resources Ltd. (STHRF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Strathcona Resources reported Q2 2024 production averaging 182,000 BOE per day.

• The company announced funds from operations of $548 million or $2.56 per share.

• Capital expenditures amounted to $297 million, resulting in free cash flow of $247 million or $1.15 per share.

• Strathcona revised its natural gas production guidance down by approximately 15 million cubic feet per day.

• Achieved a targeted debt level of $2.5 billion and declared a quarterly base dividend of $0.25 per share.

Business Progress:

• Continued debottlenecking projects at Cold Lake, reducing steam-oil ratio by 8%.

• First pad incorporating 2.5-mile horizontal laterals sanctioned at Kakwa to optimize land use and reduce costs.

• Announced a partnership with Canada Growth Fund to develop up to $2 billion in carbon capture infrastructure, with a mid-2025 FID targeted for the first project.

Opportunities:

• Strathcona's revised corporate guidance with increased oil weighting emphasizes focus on optimized oil production.

• The partnership with Canada Growth Fund represents significant potential in carbon capture technology and infrastructure development.

Risks:

• Natural gas production outlook has been negatively impacted due to extended third-party outages and deferred dry gas from Groundbirch wells, raising concerns about maintaining optimal production levels.

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