October Gross sales Volumes
October gross sales volumes averaged 1,912 boepd, together with pure fuel gross sales of 10.7 MMcfpd, related pure fuel liquids gross sales from condensate of 108 bopd and oil gross sales of 14 bopd, based mostly on discipline estimates.
Pure fuel, NGLs and crude oil gross sales:
October
2024
September
2024
Q3 2024
Pure fuel (Mcfpd), by discipline:
Caburé
8,977
10,025
11,378
Murucututu
1,767
1,176
616
Whole pure fuel (Mcfpd)
10,744
11,201
11,994
NGLs (bopd)
108
87
95
Oil (bopd)
14
9
12
Whole (boepd)
1,912
1,963
2,106
Operational Replace
On our Murucututu discipline, we completed the recompletion of our 183-A3 effectively within the third quarter. The effectively got here on manufacturing throughout September and with this effectively on manufacturing by way of a lot of October, our pure fuel gross sales from the Murucututu discipline elevated 187% in comparison with Q3 2024. We’re persevering with to watch manufacturing outcomes from the effectively and we count on to drill a follow-up location up-dip from the 183-A3 effectively from a prebuilt effectively pad beginning later this yr.
Within the fourth quarter we’re planning an optimization undertaking on our 183-B1 effectively which was initially drilled and examined in 2022.
Monetary and Working Highlights – Third Quarter of 2024
Our common day by day gross sales elevated to 2,106 boepd in Q3 2024 (+24% from Q3 2023 and +29% from Q2 2024) with elevated pure fuel demand. Our common realized pure fuel value decreased to $10.92 /Mcf (-16% from Q3 2023) in Q3 2024, due primarily to the devaluation of the BRL relative to the USD, which depreciated 14% in comparison with Q3 2023. Our general averaged realized gross sales was $66.46 per boe. With larger general gross sales volumes, our pure fuel, condensate and oil income elevated to $12.9 million , a rise of $0.6 million from Q3 2023 and $2.2 million from Q2 2024. Our working netback (2) within the quarter was $59.19 per boe (- $11.15 per boe from Q3 2023) due primarily to the discount in our realized gross sales value per boe. We generated funds flows from operations (2) of $9.9 million ( $0.27 per primary share and $0.26 per diluted share), a rise of $0.3 million in comparison with Q3 2023 and $2.0 million in comparison with Q2 2024 due primarily to larger gross sales volumes, partially offset by decrease realized costs. We reported web earnings of $7.2 million in Q3 2024, a rise of $1.3 million in comparison with Q3 2023 and $4.8 million in comparison with Q2 2024 due primarily to larger gross sales volumes and overseas change positive aspects in Brazil on U.S. greenback denominated intercompany balances and lease liabilities. Capital expenditures totaled $4.7 million , together with prices to recomplete each the 183-A3 and the 183(1) wells on our Murucututu discipline and prices related to the amenities improve at our Caburé discipline. Our working capital surplus was $15.8 million as of September 30, 2024 , growing $2.7 million from December 31, 2023 and $1.2 million from June 30, 2024 .
The next desk offers a abstract of Alvopetro’s monetary and working outcomes for the durations famous. The consolidated monetary statements with the Administration’s Dialogue and Evaluation (“MD&A”) can be found on our web site at www.alvopetro.com and will probably be out there on the SEDAR+ web site at www.sedarplus.ca .
As at and Three Months Ended
September 30
As at and 9 Months Ended
September 30,
2024
2023
Change (%)
2024
2023
Change (%)
Monetary
($000s, besides the place famous)
Pure fuel, oil and condensate gross sales
12,879
12,313
5
35,303
44,387
(20)
Web earnings
7,152
5,819
23
14,052
27,873
(50)
Per share – primary ($) (1)
0.19
0.16
19
0.38
0.75
(49)
Per share – diluted ($) (1)
0.19
0.15
27
0.37
0.74
(50)
Money flows from working actions
10,714
12,469
(14)
27,787
39,798
(30)
Per share – primary ($) (1)
0.29
0.34
(15)
0.75
1.07
(30)
Per share – diluted ($) (1)
0.28
0.33
(15)
0.74
1.05
(30)
Funds stream from operations (2)
9,886
9,618
3
26,309
35,637
(26)
Per share – primary ($) (1)
0.27
0.26
4
0.71
0.96
(26)
Per share – diluted ($) (1)
0.26
0.25
4
0.70
0.94
(26)
Dividends declared
3,295
5,122
(36)
9,887
15,335
(36)
Per share (1) (2)
0.09
0.14
(36)
0.27
0.42
(36)
Capital expenditures
4,747
10,703
(56)
10,623
22,515
(53)
Money and money equivalents
24,515
22,779
8
24,515
22,779
8
Web working capital (2)
15,848
11,392
39
15,848
11,392
39
Weighted common shares excellent
Fundamental (000s) (1)
37,300
37,138
–
37,286
37,086
1
Diluted (000s) (1)
37,662
37,868
(1)
37,671
37,748
–
Operations
Pure fuel, NGLs and crude oil gross sales:
Pure fuel (Mcfpd), by discipline:
Caburé (Mcfpd)
11,378
8,949
27
9,817
11,757
(17)
Murucututu (Mcfpd)
616
726
(15)
490
467
5
Whole pure fuel (Mcfpd)
11,994
9,675
25
10,307
12,224
(16)
NGLs – condensate (bopd)
95
81
17
83
101
(18)
Oil (bopd)
12
3
300
12
4
200
Whole (boepd)
2,106
1,696
24
1,813
2,142
(15)
Common realized costs (2) :
Pure fuel ($/Mcf)
10.92
13.06
(16)
11.70
12.57
(7)
NGLs – condensate ($/bbl)
86.70
89.43
(3)
88.77
85.31
4
Oil ($/bbl)
68.36
73.08
(6)
68.48
69.18
(1)
Whole ($/boe)
66.46
78.90
(16)
71.06
75.90
(6)
Working netback ($/boe) (2)
Realized gross sales value
66.46
78.90
(16)
71.06
75.90
(6)
Royalties
(1.89)
(2.04)
(7)
(1.94)
(2.14)
(9)
Manufacturing bills
(5.38)
(6.52)
(17)
(6.23)
(5.22)
19
Working netback
59.19
70.34
(16)
62.89
68.54
(8)
Working netback margin (2)
89 %
89 %
–
89 %
90 %
(1)
Notes:
(1)
Per share quantities are based mostly on weighted common shares excellent apart from dividends per share, which relies on the variety of frequent shares excellent at every dividend document date. The weighted common variety of diluted frequent shares excellent within the computation of funds stream from operations and money flows from working actions per share is identical as for web earnings per share.
(2)
See ” Non-GAAP and Different Monetary Measures ” part inside this information launch.
Q3 2024 Outcomes Webcast
Alvopetro will host a stay webcast to debate our Q3 2024 monetary outcomes at 8:00 am Mountain time on Thursday November 7, 2024. Particulars for becoming a member of the occasion are as follows:
DATE: November 7, 2024 TIME : 8:00 AM Mountain/ 10:00 AM Japanese LINK: DIAL-IN NUMBERS: WEBINAR ID : 829 0782 7720
The webcast will embrace a question-and-answer interval. On-line contributors will be capable of ask questions by way of the Zoom portal. Dial-in contributors can electronic mail questions on to socialmedia@alvopetro.com .
Company Presentation
Alvopetro’s up to date company presentation is out there on our web site at: .
Social Media
Observe Alvopetro on our social media channels on the following hyperlinks:
X (Twitter) – Instagram – LinkedIn –
Alvopetro Vitality Ltd.’s imaginative and prescient is to grow to be a number one impartial upstream and midstream operator in Brazil . Our technique is to unlock the on-shore pure fuel potential within the state of Bahia in Brazil , constructing off the event of our Caburé and Murucututu pure fuel fields and our strategic midstream infrastructure.
Neither the TSX Enterprise Trade nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the TSX Enterprise Trade) accepts duty for the adequacy or accuracy of this information launch.
Abbreviations:
$000s
=
hundreds of U.S. {dollars}
boepd
=
barrels of oil equal (“boe”) per day
bopd
=
barrels of oil and/or pure fuel liquids (condensate) per day
BRL
=
Brazilian Actual
Mcf
=
thousand cubic toes
Mcfpd
=
thousand cubic toes per day
MMcf
=
million cubic toes
MMcfpd
=
million cubic toes per day
NGLs
=
pure fuel liquids (condensate)
Q3 2023
=
three months ended September 30, 2023
Q2 2024
=
three months ended June 30, 2024
Q3 2024
=
three months ended September 30, 2024
USD
=
United States {dollars}
GAAP
=
IFRS Accounting Requirements
Non-GAAP and Different Monetary Measures
This information launch accommodates references to numerous non-GAAP monetary measures, non-GAAP ratios, capital administration measures and supplementary monetary measures as such phrases are outlined in Nationwide Instrument 52-112 Non-GAAP and Different Monetary Measures Disclosure . Such measures aren’t acknowledged measures underneath GAAP and shouldn’t have a standardized that means prescribed by IFRS and won’t be akin to related monetary measures disclosed by different issuers. Whereas these measures could also be frequent within the oil and fuel business, the Firm’s use of those phrases will not be akin to equally outlined measures offered by different corporations. The non-GAAP and different monetary measures referred to on this report shouldn’t be thought of an alternative choice to, or extra significant than measures prescribed by IFRS and they aren’t meant to reinforce the Firm’s reported monetary efficiency or place. These are complementary measures which might be utilized by administration in assessing the Firm’s monetary efficiency, effectivity and liquidity and so they could also be utilized by traders or different customers of this doc for a similar objective. Beneath is an outline of the non-GAAP monetary measures, non-GAAP ratios, capital administration measures and supplementary monetary measures used on this information launch. For extra info with respect to monetary measures which haven’t been outlined by GAAP, together with reconciliations to the closest comparable GAAP measure, see the ” Non-GAAP Measures and Different Monetary Measures ” part of the Firm’s MD&A which can be accessed by way of the SEDAR+ web site at www.sedarplus.ca .
Non-GAAP Monetary Measures
Working netback
Working netback is calculated as pure fuel, oil and condensate revenues much less royalties and manufacturing bills. This calculation is offered within the ” Working Netback ” part of the Firm’s MD&A utilizing our IFRS measures. The Firm’s MD&A could also be accessed by way of the SEDAR+ web site at www.sedarplus.ca . Working netback is a standard metric used within the oil and fuel business used to display profitability from operations.
Non-GAAP Monetary Ratios
Working netback per boe
Working netback is calculated on a per unit foundation, which is per barrel of oil equal (“boe”). It’s a frequent non-GAAP measure used within the oil and fuel business and administration believes this measurement assists in evaluating the working efficiency of the Firm. It’s a measure of the financial high quality of the Firm’s producing property and is beneficial for evaluating variable prices because it offers a dependable measure no matter fluctuations in manufacturing. Alvopetro calculated working netback per boe as working netback divided by complete gross sales volumes (boe). This calculation is offered within the ” Working Netback ” part of the Firm’s MD&A utilizing our IFRS measures. The Firm’s MD&A could also be accessed by way of the SEDAR+ web site at www.sedarplus.ca . Working netback is a standard metric used within the oil and fuel business used to display profitability from operations on a per boe foundation.
Working netback margin
Working netback margin is calculated as working netback per boe divided by the realized gross sales value per boe. Working netback margin is a measure of the profitability per boe relative to pure fuel, oil and condensate gross sales revenues per boe. This calculation is offered within the and is calculated as follows:
Three Months Ended
September 30,
9 Months Ended
September 30,
2024
2023
2024
2023
Working netback – $ per boe
59.19
70.34
62.89
68.54
Common realized value – $ per boe
66.46
78.90
71.06
75.90
Working netback margin
89 %
89 %
89 %
90 %
Funds Circulation from Operations Per Share
Funds stream from operations per share is a non-GAAP ratio that features all money generated from working actions and is calculated earlier than adjustments in non-cash working capital, divided by the weighted the weighted common shares excellent for the respective interval. For the durations reported on this information launch the money flows from working actions per share and funds stream from operations per share is as follows:
Three Months Ended
September 30,
9 Months Ended
September 30,
$ per share
2024
2023
2024
2023
Per primary share:
Money flows from working actions
0.29
0.34
0.75
1.07
Funds stream from operations
0.27
0.26
0.71
0.96
Per diluted share:
Money flows from working actions
0.28
0.33
0.74
1.05
Funds stream from operations
0.26
0.25
0.70
0.94
Capital Administration Measures
Funds Circulation from Operations
Funds stream from operations is a non-GAAP capital administration measure that features all money generated from working actions and is calculated earlier than adjustments in non-cash working capital. Essentially the most comparable GAAP measure to funds stream from operations is money flows from working actions. Administration considers funds stream from operations vital because it helps consider monetary efficiency and demonstrates the Firm’s potential to generate enough money to fund future progress alternatives. Funds stream from operations shouldn’t be thought of an alternative choice to, or extra significant than, money flows from working actions nevertheless administration finds that the affect of working capital objects on the money flows reduces the comparability of the metric from interval to interval. A reconciliation of funds stream from operations to money flows from working actions is as follows:
Three Months Ended September 30,
9 Months Ended
September 30,
2024
2023
2024
2023
Money flows from working actions
10,714
12,469
27,787
39,798
Add again adjustments in non-cash working capital
(828)
(2,851)
(1,478)
(4,161)
Funds stream from operations
9,886
9,618
26,309
35,637
Web Working Capital
Web working capital is computed as present property much less present liabilities. Web working capital is a measure of liquidity, is used to judge monetary sources, and is calculated as follows:
As at September 30
2024
2023
Whole present property
30,197
27,354
Whole present liabilities
(14,349)
(15,962)
Web working capital
15,848
11,392
Supplementary Monetary Measures
” Common realized pure fuel value – $/Mcf ” is comprised of pure fuel gross sales as decided in accordance with IFRS, divided by the Firm’s pure fuel gross sales volumes.
” Common realized NGL – condensate value – $/bbl ” is comprised of condensate gross sales as decided in accordance with IFRS, divided by the Firm’s NGL gross sales volumes from condensate.
” Common realized oil value – $/bbl ” is comprised of oil gross sales as decided in accordance with IFRS, divided by the Firm’s oil gross sales volumes.
” Common realized value – $/boe ” is comprised of pure fuel, condensate and oil gross sales as decided in accordance with IFRS, divided by the Firm’s complete pure fuel, NGL and oil gross sales volumes (barrels of oil equal).
” Dividends per share ” is comprised of dividends declared, as decided in accordance with IFRS, divided by the variety of shares excellent on the dividend document date.
” Royalties per boe ” is comprised of royalties, as decided in accordance with IFRS, divided by the overall pure fuel, NGL and oil gross sales volumes (barrels of oil equal).
” Manufacturing bills per boe ” is comprised of manufacturing bills, as decided in accordance with IFRS, divided by the overall pure fuel, NGL and oil gross sales volumes (barrels of oil equal).
BOE Disclosure
The time period barrels of oil equal (“boe”) could also be deceptive, notably if utilized in isolation. A boe conversion ratio of six thousand cubic toes per barrel (6 Mcf/bbl) of pure fuel to barrels of oil equivalence relies on an power equivalency conversion methodology primarily relevant on the burner tip and doesn’t signify a price equivalency on the wellhead. All boe conversions on this information launch are derived from changing fuel to grease within the ratio mixture of six thousand cubic toes of fuel to at least one barrel of oil.
Ahead-Wanting Statements and Cautionary Language
This information launch accommodates forward-looking info throughout the that means of relevant securities legal guidelines. Using any of the phrases “will”, “count on”, “intend” and different related phrases or expressions are supposed to determine forward-looking info. Ahead‐trying statements contain vital dangers and uncertainties, shouldn’t be learn as ensures of future efficiency or outcomes, and won’t essentially be correct indications of whether or not or not such outcomes will probably be achieved. Plenty of elements might trigger precise outcomes to range considerably from the expectations mentioned within the forward-looking statements. These forward-looking statements mirror present assumptions and expectations relating to future occasions. Accordingly, when counting on forward-looking statements to make choices, Alvopetro cautions readers to not place undue reliance on these statements, as forward-looking statements contain vital dangers and uncertainties. Extra notably and with out limitation, this information launch accommodates forward-looking statements regarding the plans referring to the Firm’s operational actions, proposed exploration growth actions and the timing for such actions, the anticipated pure fuel value, fuel gross sales and fuel deliveries underneath Alvopetro’s long-term fuel gross sales settlement, exploration and growth prospects of Alvopetro, capital spending ranges, future capital and working prices, future manufacturing and gross sales volumes, manufacturing allocations from the Caburé pure fuel discipline, anticipated timing for upcoming drilling and testing of different wells, projected monetary outcomes, and sources and availability of capital. Ahead-looking statements are essentially based mostly upon assumptions and judgments with respect to the longer term together with, however not restricted to, expectations and assumptions regarding the timing of regulatory licenses and approvals, gear availability, the success of future drilling, completion, testing, recompletion and growth actions and the timing of such actions, the efficiency of manufacturing wells and reservoirs, effectively growth and working efficiency, expectations relating to Alvopetro’s working curiosity and the end result of any redeterminations, environmental regulation, together with regulation referring to hydraulic fracturing and stimulation, the power to monetize hydrocarbons found, the outlook for commodity markets and talent to entry capital markets, overseas change charges, basic financial and enterprise circumstances, forecasted demand for oil and pure fuel, the affect of worldwide pandemics, climate and entry to drilling places, the provision and price of labour and companies, the regulatory and authorized atmosphere and different dangers related to oil and fuel operations. The reader is cautioned that assumptions used within the preparation of such info, though thought of cheap on the time of preparation, could show to be incorrect. Precise outcomes achieved in the course of the forecast interval will range from the data offered herein on account of quite a few recognized and unknown dangers and uncertainties and different elements. As well as, the declaration, timing, quantity and cost of future dividends stay on the discretion of the Board of Administrators and will range relying on quite a few elements, together with, with out limitation, the Firm’s operational efficiency, out there monetary sources and monetary necessities, capital necessities and progress plans. There may be no assurance that dividends will probably be paid on the supposed fee or at any fee sooner or later. Equally, the choice by the Firm to repurchase shares pursuant to the NCIB and the quantity and timing of such repurchases is unsure and there may be no assurance that the Firm will repurchase any shares sooner or later. Though we consider that the expectations and assumptions on which the forward-looking statements are based mostly are cheap, undue reliance shouldn’t be positioned on the forward-looking statements as a result of we may give no assurance that they are going to show to be appropriate. Since forward-looking statements handle future occasions and circumstances, by their very nature they contain inherent dangers and uncertainties. Precise outcomes might differ materially from these presently anticipated as a result of a variety of elements and dangers. These embrace, however aren’t restricted to, dangers related to the oil and fuel business basically (e.g., operational dangers in growth, exploration and manufacturing; delays or adjustments in plans with respect to exploration or growth initiatives or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections referring to manufacturing, prices and bills, reliance on business companions, availability of kit and personnel, uncertainty surrounding timing for drilling and completion actions ensuing from climate and different elements, adjustments in relevant regulatory regimes and well being, security and environmental dangers), commodity value and overseas change fee fluctuations, market uncertainty related to monetary establishment instability, and basic financial circumstances. The reader is cautioned that assumptions used within the preparation of such info, though thought of cheap on the time of preparation, could show to be incorrect. Though Alvopetro believes that the expectations and assumptions on which such forward-looking info relies are cheap, undue reliance shouldn’t be positioned on the forward-looking info as a result of Alvopetro may give no assurance that it’ll show to be appropriate. Readers are cautioned that the foregoing record of things is just not exhaustive. Extra info on elements that might have an effect on the operations or monetary outcomes of Alvopetro are included in our AIF which can be accessed on Alvopetro’s SEDAR+ profile at www.sedarplus.ca . The forward-looking info contained on this information launch is made as of the date hereof and Alvopetro undertakes no obligation to replace publicly or revise any forward-looking info, whether or not on account of new info, future occasions or in any other case, until so required by relevant securities legal guidelines.
SOURCE Alvopetro Vitality Ltd.
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