![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Kiwetinohk Energy Corp | TSX:KEC | Toronto | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.13 | 0.99% | 13.32 | 13.10 | 13.43 | 13.43 | 13.32 | 13.43 | 300 | 21:10:15 |
CALGARY, AB, Dec. 14, 2022 /CNW/ - Kiwetinohk Energy Corp. (TSX: KEC) today announced its 2023 budget and three-year outlook. The Company began preparing to launch a normal course issuer bid.
Kiwetinohk's 2023 budget is focused on delivering multiple strategic initiatives:
2023 budget highlights
2023 annual financial & operational guidance summary
Sales volumes1 | Mboe/d | 24.5 - 28.5 | 22-25 Mboe/d in Q1/23; growth expected in H2/23 following plant expansions |
Oil & liquids | Mbbl/d | 12.1 - 14.0 | ~50% liquids weighted |
Natural gas | MMcf/d | 74.4 - 87.0 | ~90% natural gas exposure to Chicago market |
Financial | |||
Royalty rate2 | % | 10% - 12% | C* coverage from new wells, offset by rapid payout |
Operating costs1 | $/boe | $8.25 - $9.25 | ~10% per boe improvement year/year |
Transportation | $/boe | $6.25 - $7.25 | Slightly higher than in 2022 due to more gas production sold via Alliance |
Corporate G&A expense3 | $MM | $24 - $27 | $2.30-$3.00/boe a ~10% per boe improvement year/year |
Cash taxes4 | $MM | $0 | Existing tax pools expected to shield cash taxes for 2023 |
Capital | $MM | $378 - $402 | |
Upstream | $MM | $360 - $380 | Investing for growth |
DCET | $MM | $270 - $285 | Further optimization of well designs; unlocking development locations |
Other | $MM | $90 - $95 | Simonette plant expansions & electrification; other field infrastructure |
Green Energy | $MM | $18 - $22 | Progressing power projects and targeted FID on Homestead and Opal |
2023 AFF5 | Capital budget is FFF neutral +/- 10%5 | ||
US$70 WTI; US$4.50 HH; US$0.73/CAD | $MM | $355 - $410 | |
US$80 WTI; US$5.00 HH; US$0.75/CAD | $MM | $390 - $450 | |
2023 Net debt to AFF5 | Remain below corporate debt ratio target of 1.0x @ US$50 WTI / US$2.75 HH flat deck | ||
US$70 WTI; US$4.50 HH; US$0.73/CAD | X | 0.3x - 0.5x | |
US$80 WTI; US$5.00 HH; US$0.75/CAD | X | 0.1x - 0.4x |
1 – No plant turnarounds scheduled for 2023; includes 7-10-day shutdown of facilities to accommodate plant expansion work in the third quarter. |
2 – Royalty rate in the table above calculated relative to corporate revenue, which for natural gas revenues is largely determined by US dollar denominated Chicago-based natural gas pricing. |
3 – Includes G&A expenses for all divisions of the Company – Corporate, Upstream, Green Energy and Business Development. |
4 – At US$80 WTI; US$5.00 HH; US$0.75/CAD flat prices for full year. See "Non-GAAP Measures". |
5 – Non-GAAP measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. Please refer to the Corporation's MD&A as at and for the three months ended September 30, 2022 under the section "Non-GAAP Measures" available on Kiwetinohk's SEDAR profile at www.sedar.com |
Natural gas sales volumes will continue to benefit from access to favourable US Dollar denominated pricing in the Chicago market via Kiwetinohk's 120 MMcf/d of contracted capacity on the Alliance Pipeline. At the conclusion of the 2023 capital program, Kiwetinohk estimates it will require approximately $160 million of drill, complete, equip, tie-in (DCET) capital to sustain targeted 2023 average annual production rates. Given the large scale of the capital program relative to the corporate enterprise value (~55% at the time of budget Board of Director approval), Kiwetinohk will continue to actively hedge production to protect cash flows and provide a pricing floor required to fund the program.
The three-year outlook is intended to provide investors with increased visibility regarding Kiwetinohk's strategy, the value of the Company's asset base and the Company's projected operational and financial capabilities and prospects. Kiwetinohk intends to grow cash flow from its upstream operations while pursuing its energy transition power projects, reducing debt and increasing free funds flow generation.
Three-year outlook highlights
Three year financial and operational outlook
2023E2, 3 | 2024E2, 3 | 2025E2, 3 | ||
Sales volumes | ||||
Sales volumes low | Mboe/d | 24.5 | 30 | 38 |
Sales volumes high | Mboe/d | 28.5 | 34 | 42 |
Capital expenditures4 | $MM | $390 | $408 | $318 |
Total Upstream | $MM | $370 | $390 | $300 |
Green Energy | $MM | $20 | $18 | $18 |
AFF US$70 WTI flat5 | $MM | $380 | $420 | $500 |
Net Debt / AFF | X | 0.4 | 0.4 | (0.1) |
AFF US$80 WTI flat5 | $MM | $420 | $460 | $570 |
Net Debt / AFF | X | 0.3 | 0.2 | (0.3) |
1 - Growth rate shown from mid-point to mid-point. |
2 - 2023-2025 capital expenditures and AFF as per mid-point of guidance and outlook range. |
3 - Three-year outlook is indicative and has not been approved by the Board of Directors, is based on preliminary planning and current market conditions, is subject to change and does not include any funds flow from Green Energy power projects. |
4 - Mid-point of expected capital expenditure range. |
5 - Flat price decks; US$70 WTI; US$4.50 HH; US$0.73/CAD and US$80 WTI; US$5.00 HH; US$0.75/CAD. |
Kiwetinohk is aware of, and concerned with, the lack of trading liquidity of the Company's stock and believes that this lack of trading liquidity negatively impacts Kiwetinohk's trading value as measured against the 2021 year-end reserve report NPV calculations and peer trading valuation metrics. To help address this issue, Kiwetinohk has made an application to the Toronto Stock Exchange (TSX) to implement a Normal Course Issuer Bid (NCIB) and Management has provided a three-year outlook to investors with additional information on the future prospects of the Company.
Kiwetinohk believes that the common shares have been trading in a price range which does not adequately reflect their value in relation to the Company's current operations, growth prospects, energy transition projects and financial position. Kiwetinohk's capital spending priority remains on growing the upstream production and advancing its power project development portfolio, and the measured application of an NCIB may be used to both repurchase common shares at times when management believes that the market price of the common shares does not reflect their underlying value and provide additional liquidity for shareholders. The NCIB is subject to review and acceptance by the TSX and Kiwetinohk anticipates implementing it in late 2022 or early 2023, subject to such TSX approval.
We, at Kiwetinohk, are passionate about addressing climate change and the future of energy. Kiwetinohk's mission is to build a profitable energy transition business providing clean, reliable, dispatchable, affordable energy. Kiwetinohk develops and produces natural gas and related products and is in the process of developing renewable power, natural gas-fired power, carbon capture and hydrogen clean energy projects. We view climate change with a sense of urgency, and we want to make a difference.
Kiwetinohk's common shares trade on the Toronto Stock Exchange under the symbol KEC.
Additional details are available within the year-end documents available on Kiwetinohk's website at www.kiwetinohk.com and SEDAR at www.sedar.com.
For the purpose of calculating unit costs, natural gas is converted to a barrel of oil equivalent using six thousand cubic feet of natural gas equal to one barrel of oil unless otherwise stated. The term barrel of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio for gas of 6 Mcf:1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Certain information set forth in this news release contains forward-looking information and statements including, without limitation, management's business strategy, management's assessment of future plans and operations. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "project", "potential", "may" or similar words suggesting future outcomes or statements regarding future performance and outlook. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company.
In particular, this news release contains forward-looking statements pertaining to the following:
In addition to other factors and assumptions that may be identified in this news release, assumptions have been made regarding, among other things:
Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements as the Company can give no assurance that such expectations will prove to be correct.
Forward-looking statements or information involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include, among other things:
Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.
The forward-looking statements and information contained in this news release speak only as of the date of this news release and the Company undertakes no obligation to publicly update or revise any forward-looking statements or information, except as expressly required by applicable securities laws.
This news release contains measures that do not have a standardized meaning under generally accepted accounting principles (GAAP) and therefore may not be comparable to similar measures presented by other entities. These performance measures presented in this document should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP and should be read in conjunction with the consolidated financial statements of the Company. Readers are cautioned that these non-GAAP measures do not have any standardized meanings and should not be used to make comparisons between Kiwetinohk and other companies without also taking into account any differences in the method by which the calculations are prepared.
Please refer to the Corporation's MD&A as at and for the nine months ended September 30, 2022, under the section "Non-GAAP Measures" for a description of these measures, the reason for their use and a reconciliation to their closest GAAP measure where applicable. The Corporation's MD&A is available on Kiwetinohk's SEDAR profile at www.sedar.com
Financial outlook and future-oriented financial information contained in this press release about prospective financial performance, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. In particular, this press release contains expected adjusted funds flow from operations, net debt to adjusted funds flow from operations and free funds flow. These projections contain forward-looking statements and are based on a number of material assumptions and factors set out above and are provided to give the reader a better understanding of the potential future performance of the Company in certain areas. Actual results may differ significantly from the projections presented herein. These projections may also be considered to contain future oriented financial information or a financial outlook. The actual results of the Company's operations for any period will likely vary from the amounts set forth in these projections, and such variations may be material. See "Risk Factors" in the Company's AIF published on the Company's profile on SEDAR at www.sedar.com for a further discussion of the risks that could cause actual results to vary. The future oriented financial information and financial outlooks contained in this press release have been approved by management as of the date of this press release. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein.
Abbreviations | |
$/boe | dollars per barrel equivalent |
$MM | millions of dollars |
AFF | adjusted funds flow |
AIF | Annual Information Form |
bbl/d | barrels per day |
boe | barrel of oil equivalent, including crude oil, condensate, natural gas liquids, and natural gas (converted on the basis of one boe per sixmcf of natural gas) |
CAGR | compound annual growth rate |
C* | drilling and completion cost allowance under the Alberta Modernized Royalty Framework |
DCET | drill, complete, equip and tie-in |
FFF | free funds flow |
HH | Henry Hub |
Mbbl/d | millions of barrels per day |
Mboe/d | millions of barrels of oil equivalent per day |
Mcf/d | thousand cubic standard feet per day |
MMcf/d | million cubic feet per day |
WTI | West Texas Intermediate |
FOR MORE INFORMATION ON KIWETINOHK, PLEASE CONTACT:
Mark Friesen, Director, Investor Relations
IR phone: (587) 392-4395
IR email: IR@kiwetinohk.com
Address: Suite 1500, 250 - 2 Street S.W. Calgary, Alberta T2P 0C1
Pat Carlson, CEO
Jakub Brogowski, CFO
___________________________________________________ |
1 Non-GAAP measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. Please refer to the Corporation's MD&A as at and for the three months ended September 30, 2022 under the section "Non-GAAP Measures" available on Kiwetinohk's SEDAR profile at www.sedar.com |
2 Low end of range calculated using $70/bbl WTI; US$4.50/MMbtu HH; US$0.73/CAD and high end of range calculated using US$80/bbl WTI; US$5.00/MMbtu HH; US$0.75/CAD. |
3 Non-GAAP measure that does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. ROACE is defined as EBIT (earnings before interest and tax) divided by average capital employed (net debt plus shareholders' equity). |
SOURCE Kiwetinohk Energy
Copyright 2022 Canada NewsWire
1 Year Kiwetinohk Energy Chart |
1 Month Kiwetinohk Energy Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions