Pieridae rises in Q1 on strong hedging gain
Canada’s Pieridae Energy reported improved earnings and cash flow for Q1 2023 on May 10, reflecting strong gains from its hedging programme.
Net income for the period increased to C$13.6mn (US$10.1mn) from C$10.5mn, while cash flow provided by operating activities jumped to C$41.3mn from C$3.2mn.
“Pieridae had strong financial results this quarter, despite weaker commodity prices, thanks to gains from our hedging program,” CEO Alfred Sorensen said. “Our focus as we move into summer is to prudently manage expenditures and working capital during a period of expected lower commodity prices.”
Total production fell to 36,467 barrels of oil equivalent (boe)/day from 40,491 boe/day, while natural gas production slipped to 186.2mn ft3/day from 187.7mn ft3/day in Q1 2022, but was sequentially higher from Q4 2022 production of 179.1mn ft3/day.
While Pieridae’s average realised gas price, before factoring in hedging gains, fell to C$3.24/’000 ft3 from C$4.66/’000 ft3, its price after accounting for hedging gains rose to C$5.08/’000 ft3 from C$4.08/’000 ft3.
During the quarter, Pieridae drilled its first Foothills well, resulting in a new pool discovery. Subsequent to Q1, the well was placed on production at a restricted rate and is producing about 6mn ft3/day of sales gas.