Pieridae Energy reports reduced earnings in Q2
Alberta Foothills gas producer Pieridae Energy said August 9 it had net income in Q2 2023 of C$4.2mn (US$3.1mn), down sharply from C$23mn in the same period a year ago and from C$13.6mn in Q1 2023.
“Pieridae had strong financial results this quarter, despite operational challenges and weaker AECO natural gas prices, thanks to a favorable royalty credit and realised gains from our hedging program,” CEO Darcy Reding said. “In the second quarter, we continued to execute our strategic plan with the successful refinancing of our long-term debt, which is a significant milestone for the Company and provides Pieridae with a lower cost of capital and greater financial flexibility.”
Funds flow from operations fell to C$35.4mn from C$43.5mn, while net operating income decline to C$43.8mn from C$55.9mn a year ago.
Natural gas production averaged 159.4mn ft3/day in the second quarter this year, down from 186.1mn ft3/day in Q1 2023 and 178.9mn ft3/day in Q2 2023, reflecting unscheduled downtime and ongoing wildfire-related shut-ins in northeast BC. Additional volumes of about 750 barrels of oil equivalent (boe)/day remain shut-in in west central Alberta until AECO natural gas prices are sustained above C$3.00/’000 ft3.
After accounting for physical commodity contracts, Pieridae realised a Q2 2023 average natural gas price of C$3.00/’000 ft3, down from C$5.08/’000 ft3 in Q1 2023 and from C$4.67/’000 ft3 in Q2 2022.