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    Pieridae cuts net loss in Q3 on higher prices

Summary

AECO hub volatility prompted gas shut-ins during August.

by: Dale Lunan

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Financials, News By Country, Canada

Pieridae cuts net loss in Q3 on higher prices

Canadian natural gas producer Pieridae Energy said November 10 it cut its net loss in Q3 2022 to C$1.6mn (US$1.2mn) from C$14.8mn in Q3 2021.

Net operating income rose to C$30mn from C$17.92mn.

Although production was down 5%, as price volatility in western Canada prompted temporary shut-ins during the quarter, Pieridae’s average realised natural gas price rose 34%, to C$3.62/’000 ft3 from C$2.70/’000 ft3.

Natural gas production averaged 181mn ft3/day in Q3 2022, down from 191.4mn ft3/day in Q3 2021 as ethane re-injection to its sales gas stream reduced volumes but increased the heat content and value of the gas stream, with no material impact on revenues. Ethane re-injections are expected to continue for the rest of this year and into 2023.

Pieridae hedged about 54% of its natural gas production in August, but price volatility at the AECO hub – including negative pricing on a few days – prompted the company to shut in about 750 barrels of oil equivalent (boe)/day of unhedged volumes for several days.