The following is a summary of the Canacol Energy Ltd (CNNEF) Q3 2024 Earnings Call Transcript:
Financial Performance:
Canacol Energy reported record EBITDAX of $86 million for Q3 2024, driven by strong pricing and netbacks in their natural gas operations.
Revenue net of royalties and transportation was $87.9 million, up 15% compared to Q3 2023.
Adjusted EBITDAX increased by 38% to $85.8 million compared to the same period last year.Net income stood at $10.3 million, significantly improved from a net loss of $0.5 million in Q3 2023.
Business Progress:
The company drilled the Chontaduro 3 appraisal well and the Cardomomo 1 exploration well in Q3, advancing their strategic drilling initiatives.
They revised their 2024 capital program, adding four additional wells, with a plan to drill three exploration wells and one appraisal well through the remainder of the year.
Canacol secured approval for its fourth E&P contract in Bolivia, aiming to reactivate an existing gas field with planned investments.
Opportunities:
Canacol plans to capitalize on high gas demand and interruptible market pricing in Colombia, while expanding drilling and exploration activities.
With the securing of a new operation contract in Bolivia, they aim to increase production and reserves, adding to their regional growth strategy.
Risks:
The Cardomomo 1 exploration well discovered non-commercial amounts of natural gas, indicating risks associated with exploration failures.
Economic fluctuations could affect their pricing strategy, as seen with the collections from the arbitration settlement.
More details: CANACOL ENERGY LTD IR
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