Canada’s Advantage Energy gains in Q1, despite price weakness
Canadian Montney producer Advantage Energy said April 27 it had net income of C$29.1mn (US$21.4mn) in Q1 2023, up from C$19.5mn in Q1 2022 as higher production offset weaker commodity prices.
Natural gas production averaged 314.3mn ft3/day in the first quarter, up from 288.2mn ft3/day a year ago, while total production rose to 58,144 barrels of oil equivalent (boe)/day from 52,946 boe/day.
Higher gas production was achieved despite an unplanned outage on TC Energy’s NGTL system in Alberta that limited production by more than 20% for 10 days, Advantage said.
Its average realized natural gas price (excluding derivatives) in Q1 fell 31% from a year ago, to C$3.74/’000 ft3 from C$5.40/’000 ft3, which Advantage attributed to lower benchmark prices in all markets where it physically delivers gas.
The AECO daily price in Alberta, for example, averaged C$3.23/’000 ft3 in the first quarter this year, down from C$4.74/’000 ft3 in the comparable 2022 period, while the Henry Hub price averaged US$3.43/mn Btu, down from US$4.23/mn Btu in Q1 2022.