CALGARY, ALBERTA — (Marketwired) — 05/08/13 — Angle Energy Inc. (“Angle” or the “Company”) (TSX: NGL) today announced the financial and operating results for the three months ended March 31, 2013.
The Company has filed its interim consolidated financial statements and related management–s discussion and analysis (“MD&A”) for the period ended March 31, 2013 on and . Operational and financial highlights for the first quarter of 2013 are noted below and should be read in conjunction with Angle–s interim consolidated financial statements and related MD&A for the period ended March 31, 2013.
COMPANY HIGHLIGHTS
Financial
In the first quarter of 2013, oil and natural gas revenues were $43.3 million compared to $46.1 million in the fourth quarter of 2012, primarily due to lower boe production per day resulting from the non-core Edson natural gas asset disposition. However, funds from operations grew 2.4 percent over the fourth quarter of 2012 due to the shift in production to more profitable barrel equivalents. Funds from operations were $23.5 million or $0.29 per diluted share with recorded net earnings of $1.4 million or $0.02 per diluted share.
The commodity mixture Angle produces has changed materially, with light crude oil and condensate now representing 29 percent of corporate production compared to 22 percent in the fourth quarter of 2012. Light crude oil, condensate and other natural gas liquids make up 54 percent of the Company–s first quarter production compared to 46 percent in the fourth quarter of 2012.
Operations
Highlights of Angle–s first quarter operations were previously released on March 11, 2013. The first quarter of 2013 was focused on drilling Cardium light oil projects in Harmattan and Ferrier with 11 gross (10.1 net) wells of the 17 gross (14.6 net) wells rig released in the quarter. The average production from Cardium projects in the first quarter of 2013 was approximately 4,000 boe/d, with an operating netback of $42.00/boe.
Current field activity is subdued due to spring break-up conditions. To date in the second quarter, Angle has drilled and rig released 3 gross (2.6 net) wells, and a further 5 gross (4.2 net) wells are in various states of completion. Angle continues to utilize pad drilling whenever possible, which provides the best cost structure per well.
Operating costs in the first quarter were $5.28/boe, compared to $6.09/boe in the fourth quarter of 2012. Including transportation expenses, Angle–s cost to operate in the first quarter was $5.98/boe, compared to $6.64/boe in the fourth quarter of 2012. The Company continues to focus development in its core properties where both capital and operating cost controls are most effective.
Outlook
The development of Angle–s light oil projects is being conducted with strong cost controls or reductions in both capital and operating costs per well as the Company pursues growth in cash flow per share and overall shareholder value. Angle is committed to achieving a net debt to funds from operations ratio for the overall 2013 capital program to under 2.0 times on a fourth quarter annualized basis, and has a number of tools to meet this objective. As Angle focuses operationally on more profitable production and improving its balance sheet, the Board and Management continue to explore opportunities to address the gap between the Company–s trading price and its intrinsic net asset value.
Subsequent to the first quarter, on April 29, 2013, Angle announced the addition of Ken D. Hillier to its executive team as Chief Financial Officer. The preparation and filing of the financial information for the First Quarter Interim Report was overseen by Heather Post, Controller, in her role as the acting chief financial officer at the time.
ABOUT ANGLE
Angle Energy Inc. is a public, Calgary-based oil and gas exploration and development company incorporated in 2004. Angle–s objective is to build shareholder value through the profitable growth of its high quality asset base through a combination of drilling and strategic acquisitions. Angle–s proven and dedicated team of industry specialists are focused on identifying and developing high quality assets in the Western Canadian Sedimentary Basin, with an emphasis in west central Alberta. Common shares of Angle are listed for trading on the Toronto Stock Exchange under the symbol “NGL.”
Basis of Presentation
Production information is commonly reported in units of barrel of oil equivalent (“boe”). For purposes of computing such units, natural gas is converted to equivalent barrels of crude oil using a conversion factor of six thousand cubic feet of gas to one barrel of oil. This conversion ratio of 6:1 is based on an energy equivalent conversion for the individual products, primarily applicable at the burner tip, and does not represent a value equivalency at the wellhead. Such disclosure of boe may be misleading, particularly if used in isolation.
Future Outlook and Forward-Looking Information
Information set forth in this press release contains estimates and forward-looking statements and are made as of May 8, 2013, including production levels and product mix, impact of operating expenses and estimated cash flows on forecast net debt levels, and drilling results. These forward-looking statements are subject to the corporate directives mentioned herein and based on assumptions as of that date and the reader should refer to the forward looking statements section disclosed in March 31, 2013 Management Discussion and Analysis and the most recent Annual Information Form as filed on SEDAR. By their nature, estimates and forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Angle–s control, including the impact of reservoir quality, decline rates, volatility of commodity prices, drilling techniques, costs of third party services, general economic conditions, industry conditions, environmental risks, competition and interest from other industry participants, the lack of availability of qualified personnel or management, ability to access sufficient capital from internal and the ability to identify and consummate business opportunities.
Readers are cautioned that the assumptions and factors discussed in this press release are not exhaustive and that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise, and as such, undue reliance should not be placed on forward-looking statements. Angle–s actual results, performance or achievement could differ materially from those expressed in, or implied by, these estimates and forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the estimates and forward-looking statements will transpire or occur, or if any of them do so, what benefits that Angle or its shareholders will derive there from. Unless required by law, Angle disclaims any intention or obligation to update or revise any estimates and forward-looking statements, whether as a result of new information, future events or otherwise. The estimates and forward looking statements are expressly qualified by these cautionary statements.
Contacts:
Angle Energy Inc.
Heather Christie-Burns
President and Chief Operating Officer
(403) 263-4534
(403) 263-4179 (FAX)
Angle Energy Inc.
Gregg Fischbuch
Chief Executive Officer
(403) 263-4534
(403) 263-4179 (FAX)
Angle Energy Inc.
Suite 700, 324 Eighth Avenue SW
Calgary, Alberta T2P 2Z2