The following is a summary of the Strathcona Resources Ltd. (STHRF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Strathcona saw steady Q1 2024 production at 185,000 BOE per day.
Funds from operations reached $456 million or $2.13 per share.
Major expenses were capital expenditures, amounting to $286 million.
The company maintained a free cash flow of $158 million or $0.74 per share, consistent with the previous quarter.
Sales volumes saw a drop, particularly with the Lloydminster Heavy Oil assets due to inventory hold for a US Gulf Coast facility expansion.
Business Progress:
The Lloydminster's facility in the U.S. Gulf Coast is now fully operational and Strathcona is set to sell inventory at premium rates.
The company expects Q2 production volumes to remain consistent due to planned and unexpected third-party outages, but maintains its full-year guidance for 2024.
The company is on schedule to achieving its debt target of $2.5 billion by June 2024.
More information on the shareholder return strategy will be given along with Q2 results.
The company is planning for thermal asset expansion in Saskatchewan, starting with a six steam generator at Meota.
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