Office Depot, Inc., together with its subsidiaries, supplies a range of office products and services. It offers merchandise, such as general office supplies, computer supplies, business machines and related supplies, and office furniture through its chain of office supply stores under the Office Depot, Foray, Ativa, Break Escapes, Worklife, and Christopher Lowell brand names. The company also provides graphic design, printing, reproduction, mailing, shipping, and other services through design, print, and ship centers. It has operations throughout North America, Europe, Asia, and Central America. The company also sells its products and services through direct mail catalogs, contract sales force, Internet sites, and retail stores, through a mix of company-owned operations, joint ventures, licensing and franchise agreements, alliances, and other arrangements. As of December 31, 2008, Office Depot operated 1,267 North American retail division office supply stores and 162 international division retail stores, as well as participated under licensing and merchandise arrangements in 98 stores. The company was founded in 1986 and is based in Boca Raton, Florida.
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3Q23 Results. Revenue came in at $2.009 billion, down from $2.172 billion in 3Q22, driven by store closures, lower comparable sales, and a challenging economic environment. Adjusted net income was flat at $73 million, while adjusted EPS rose to $1.88 from $1.48 as a result of the reduction in outstanding shares. Adjusted EBITDA was $125 million, compared to $131 million last year.
Strategy Is Working. ODP delivered solid operating results in spite of the challenging economic environment, with strong adjusted EPS and adjusted free cash flow. Adjusted FCF in the quarter was $89 million. The Company’s low cost operating model continues to deliver.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
PDS Biotech is a clinical-stage immunotherapy company developing a growing pipeline of molecularly targeted cancer and infectious disease immunotherapies based on the Company’s proprietary Versamune® and Infectimune™ T-cell activating technology platforms. Our Versamune®-based products have demonstrated the potential to overcome the limitations of current immunotherapy by inducing in vivo, large quantities of high-quality, highly potent polyfunctional tumor specific CD4+ helper and CD8+ killer T-cells. PDS Biotech has developed multiple therapies, based on combinations of Versamune® and disease-specific antigens, designed to train the immune system to better recognize diseased cells and effectively attack and destroy them. The Company’s pipeline products address various cancers including HPV16-associated cancers (anal, cervical, head and neck, penile, vaginal, vulvar) and breast, colon, lung, prostate and ovarian cancers.
Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Triple Therapy Trial Results Show Much Longer Survival In HPV-Positive Cancer. PDS announced data from the Triple Therapy Combination conducted by the NCI (National Cancer Institute of the National Institutes of Health). This trial tested the combination of PDS0101, the tumor-targeted IL-12 derivative PDS0301, and a checkpoint inhibitor to give three mechanisms of action against HPV-positive cancers. While the patient sample is small, these results far exceed survival seen in published studies.
Results Shows Significant Improvements Over Expectations. Final survival data from the patients that had no previous therapy with immune checkpoint inhibitors (ICI naïve patients) showed 6 out of 8 (75%) of the patients alive at 36 months, compared with published studies with about 30% to 50% alive at 12 months and less than 30% alive at 24 months. Median overall survival for the ICI naïve patients has not been reached.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Ocugen, Inc. is a biotechnology company focused on developing and commercializing novel gene therapies, biologicals, and vaccines. The lead product in its gene therapy program, OCU400, is in Phase 1/2 clinical trials for retinitis pigmentosa.
Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Pipeline Is Set For 2024. Ocugen reported 3Q23 loss of $14.2 million or $(0.06) per share, compared with our estimated loss of $18.2 million or $(0.07) per share. Cash balance at the end of the quarter was $53.5 million. During 3Q23, data was presented for OCU400, INDs were approved for OCU410 and OCU410ST, and OCU500 was selected by the NIAID-NIH (National Allergy and Infectious Disease Institute of the National Institutes of Health) to begin clinical testing. NeoCart is also expected to begin a Phase 3 trial in 2H24. We see these pipeline events as important milestones for the company.
OCU400 is on schedule to finalize the Phase 3 trial design. The Phase 1/2 trial has completed dosing of the RP patients and three LCA patients. The treatment protocols for the Phase 3 trial are expected to be finalized by year-end. Following FDA acceptance, the Phase 3 trial is expected to begin in early 2024 as expected. The final LCA patient data could allow FDA approval to include LCA patients in 2H24.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
InPlay Oil is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQX Exchange under the symbol IPOOF.
Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Production increased 6% quarter over quarter despite continued curtailments and unplanned downtime. Curtailments and well pressure issues have hampered production for InPlay and other Canadian producers in recent quarters. InPlay invested $27.5 million during the quarter to drill and make infrastructure improvements. This represents more than half of the year’s capital expenditure budget. During the quarter, the company completed six wells and upgraded a natural gas facility to process 66% more gas.
InPlay reported strong results in the 2023-3Q and 2023-4Q should be better. Management indicated that its investments should lead to the fourth quarter being the highest production quarter of the year. Management did not make any changes to its guidance for 2023, 2024, and 2025 production and fund flow generation. With a drop in capital expenditures in the upcoming quarter, management should have ample cash flow to pay dividends (7% yield), strategically repurchase shares, and explore small add-on acquisitions.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, nickel and cobalt-based high-performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Updating estimates. We have trimmed our fiscal year 2023 EBITDA and EPS estimates to $80.6 million and $3.22 from $81.2 million and $3.25 per share. Our estimates reflect lower gross margins during the September quarter due to the negative impact of raw material fluctuations. Our September EBITDA and EPS estimates were lowered to $23.2 million and $0.97 from $23.7 million and $1.00. We are making no changes to our 2024 estimates and expect Haynes to provide guidance for fiscal 2024 when it reports results for fiscal year 2023. We still expect the September quarter will be Haynes’ strongest of the fiscal year in terms of volumes shipped, net revenues, and earnings.
Strong order backlog. Orders during the June quarter resulted in a record backlog of $468.1 million and represented a 4.8% increase compared to the prior quarter and a 38.4% increase on a year-over-year basis. Backlog pounds increased 3.2% during the third quarter to approximately 14.6 million pounds and increased 20.7% compared to the prior year period driven by strong demand in the aerospace and industrial gas turbine markets. In our view, the strong order book is indicative of the company’s strong competitive position and favorable outlook.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Harte Hanks (NASDAQ: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract, and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony, and IBM among others. Headquartered in Chelmsford, Massachusetts , Harte Hanks has over 2,500 employees in offices across the Americas, Europe and Asia Pacific .
Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q3 results largely in line. Total company revenue weas $47.1 million, in line with our $47.5 million estimate. Total company revenues were essentially flat with Q2 revenue of $47.8 million, which the company views as its baseline quarter. Q3 adj. EBITDA was $4.2 million, a few hundred thousand shy of our $4.8 million adj. EBITDA estimate.
Investing to accelerate growth. We believe that management is putting the pieces together to enhance the company’s long term revenue and adj. EBITDA growth. It has embarked on a strategy to add sales staff and drive efficiencies company wide. We believe that this strategy will pay dividends beginning in the second half 2024, but notably in 2025 as revenues ramp and margins improve.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Euroseas Ltd. was formed on May 5, 2005 under the laws of the Republic of the Marshall Islands to consolidate the ship owning interests of the Pittas family of Athens, Greece, which has been in the shipping business over the past 140 years. Euroseas trades on the NASDAQ Capital Market under the ticker ESEA. Euroseas operates in the container shipping market. Euroseas’ operations are managed by Eurobulk Ltd., an ISO 9001:2008 and ISO 14001:2004 certified affiliated ship management company, which is responsible for the day-to-day commercial and technical management and operations of the vessels. Euroseas employs its vessels on spot and period charters and through pool arrangements.
Michael Heim, Senior Vice President, Equity Research Analyst, Energy & Transportation, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Euroseas reported strong 2023-3Q results due to fleet expansion and better-than-expected shipping rates. Euroseas’ average TCE rate of $30,074 was similar to last year and last quarter. Euroseas’ strategy of locking in rates for the next 12-24 months has allowed it to escape the decline in shipping rates that is hurting other shipping companies. Euroseas continues to command a premium shipping rate due to the modernization of its fleet and size of ships.
Costs inched higher due to fleet expansion. One exception is drydocking expense, which decreased with no ships in drydock during the quarter as compared to two ships in drydock at this time last year. Note that this quarter includes a $14 million impairment charge and a $16 million gain on the termination of a charter. Absent these two non-recurring items, operating costs would have been near expectations.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
Robert LeBoyer, Senior Vice President, Equity Research Analyst, Biotechnology, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3Q23 Loss Was Less Than Projected. Eledon reported 3Q23 loss of $10.3 million or ($0.35) per share, compared with our estimate of a loss of $14.5 million or $(0.57) per share. The difference was mostly due to R&D expense of $7.9 million compared with our estimate of $11.9 million. Cash and equivalents at the end of the quarter were $59.6 million.
Phase 1b Data Shows Protection and Strong Function. As discussed in our Research Note on November 3, data from the Phase 1b trial testing tegoprubart in prevention of renal transplant rejection was presented at the American Society of Nephrology Kidney Week. The data from 11 patients showed tegoprubart was safe, well-tolerated, and had no rejection. Importantly, all of the patients that were evaluated at least 90 days after transplantation had eGFR (estimated glomerular filtration rate) above 70 ml/min/1.72 m2. This is above 50th percentile of 50 ml/min/1.72 m2 average in published studies, and is a strong predicator of graft survival. One patient who completed the 1-year treatment period had a eGFR of 91 ml/min/1.72 m2 and went into the open-label extension study.
Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
BOCA RATON, Fla., Nov. 09, 2023 (GLOBE NEWSWIRE) — via InvestorWire — Noble Capital Markets, Inc. (“Noble”) today announces that Seeking Alpha (https://seekingalpha.com/), the world’s leading investing community, will be a prominent sponsor at NobleCon19 (NobleCon19.com), Noble’s 19th Annual Emerging Growth Equity Conference, to be held at Florida Atlantic University, College of Business, Executive Education, Dec. 3-5, 2023, in Boca Raton, Florida. NobleCon19 will feature 200 public company executives, corporate presentations, breakouts, 1×1 meetings with qualified attendees, provocative panels, and a keynote fireside chat featuring the 43rd President of the United States, George W. Bush, moderated by Noble’s Director of Research, Michael Kupinski.
As a sponsor, Seeking Alpha will play a significant role in enhancing the conference experience for attendees. Participants can look forward to engaging discussions, expert insights, and valuable networking opportunities facilitated by Seeking Alpha’s presence. The company’s participation underscores its dedication to empowering investors with high-quality, actionable research and analysis. As part of the sponsorship, Steven Cress, Seeking Alpha’s Head of Quantitative Strategies, will dive deeper into Seeking Alpha’s Quant System and its top picks for 2024, in a presentation preceding the George W. Bush keynote.
“We are thrilled to have Seeking Alpha on board as a sponsor for NobleCon19,” said Nico P. Pronk, CEO of Noble Capital Markets, the host of NobleCon19. “Their research and analysis tools and resources for the investment community align perfectly with the objectives of our conference. We believe their involvement will enhance the overall event, providing attendees with valuable perspectives and knowledge.”
During the conference, Seeking Alpha representatives will be available at their booth, which will also be the official NobleCon19 coffee station, to interact with attendees, demonstrate their platform’s capabilities, and discuss the latest trends in investment research. Attendees are encouraged to visit the Seeking Alpha booth to learn more about their innovative solutions and how they can benefit individual investors, financial professionals and institutions alike.
“We are excited to sponsor NobleCon19 and engage with industry experts, investors and thought leaders,” said Mayer Reich, Vice President of Marketing at Seeking Alpha. “This conference represents an excellent opportunity for us to connect with our community and share insights. We look forward to productive discussions and meaningful interactions throughout the event.”
To register to attend NobleCon19: NobleCon19.com. To receive NobleCon agenda updates and registration opportunities, join Channelchek.com, Noble’s online investment community, listing more than 6,000 public emerging growth companies. This is an open-access site with no cost (ever) to join. Companies with market capitalization of $3 billion or less wishing to learn more about presenting at NobleCon19 can Inquire Here.
About Seeking Alpha: Seeking Alpha is the world’s leading investing community, where investors connect daily to discover and share new investing ideas, discuss the latest news, debate the merits of stocks, and make informed investment decisions. Seeking Alpha’s content has unparalleled breadth and depth: from stocks, ETFs and mutual funds to commodities and cryptocurrency. Seeking Alpha gives investors access to professional-caliber research tools – including factor grades and quant ratings that summarize each stock’s characteristics. Seeking Alpha empowers investors to make the absolute best investing decisions by leveraging independent and balanced stock research, fundamental analysis tools, crowdsourced debate, news and actionable market data. Seeking Alpha is not a licensed securities dealer, broker or U.S. investment adviser or investment bank.
About Noble Capital Markets: Noble Capital Markets, Inc. was incorporated in 1984 as a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving underfollowed emerging growth companies through investment banking, wealth management, trading & execution, and equity research activities. Over the past 39 years, Noble has raised billions of dollars for companies and published more than 45,000 equity research reports. www.noblecapitalmarkets.com contact@noblecapitalmarkets.com.
Major stock indexes posted modest gains Friday, but new data reflects growing unease among consumers about the state of the U.S. economy.
The University of Michigan’s preliminary November reading on consumer sentiment fell to 60.4, below economist expectations and the lowest level since May. This marked the fourth straight monthly decline for the index, highlighting continued erosion in economic optimism.
“Consumers cited high interest rates and ongoing wars in Gaza and Ukraine as factors weighing on the economic outlook,” said Joanne Hsu, director of Surveys of Consumers.
Inflation expectations also edged up to 3.2% over the next five years, levels not seen since 2011. This suggests the Federal Reserve still has work to do in getting inflation under control after aggressive interest rate hikes this year.
Earlier this week, Fed Chair Jerome Powell reiterated that further rate increases may be necessary to keep inflation on a sustainable downward trajectory. Other Fed officials echoed Powell’s sentiments that policy may need to become even more restrictive to tame inflationary pressures.
For investors, the deteriorating consumer outlook and stubborn inflation signal more churn ahead for markets after October’s volatile swings. While stocks have rebounded from last month’s lows, lingering economic concerns could spur renewed volatility ahead.
This uncertain environment calls for careful navigation by investors. Maintaining discipline and focusing on quality will be key to weathering potential market swings.
With slower growth on the horizon, investors should emphasize companies with strong fundamentals, steady earnings and lower debt levels. Searching for value opportunities and dividend payers can also pay off as markets turn choppy.
Diversification remains critical to mitigate risk. Ensuring portfolios are balanced across asset classes, market caps, sectors and geographies can smooth out volatility when conditions invariably shift. Regular rebalancing to bring allocations back in line with targets is prudent as well.
Staying invested for the long haul is important too. Bailing out of the market can backfire if it recovers and gains are missed. A buy-and-hold approach with a multi-year time horizon allows compounding to work its magic.
Of course, maintaining some dry powder in cash provides flexibility to scoop up bargains if stocks retreat again. Dollar-cost averaging into new positions can limit downside risk.
Above all, patience and discipline will serve investors well in navigating uncertainty. Sticking to a plan and avoiding emotional reactions to market swings can help anchor portfolios for the long run.
While the path ahead may be bumpy, historic market performance shows long-term returns can overcome short-term volatility. Bear markets eventually give way to new bulls. Maintaining perspective and focusing on the horizon can guide investors through uncertain times.
Of course, there are no guarantees in investing. Stocks could see more declines before recovery takes hold. But diversification, quality tilt and balanced allocations can help smooth out the ride.
And investors with long time horizons can actually take advantage of market dips. Regular investing through 401(k)s means buying more shares when prices are depressed, which will pay off handsomely when markets rebound.
The key is tuning out the noise and sticking to smart principles: diversify, rebalance, emphasize quality, maintain perspective and stay the course. This disciplined approach can serve investors well in volatile times.
Though the path forward may remain bumpy, patient investors focused on the long view stand to be rewarded in time.
CALGARY AB, Nov. 8, 2023 /CNW/ – InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) (“InPlay” or the “Company”) announces its financial and operating results for the three and nine months ended September 30, 2023. InPlay’s condensed unaudited interim financial statements and notes, as well as Management’s Discussion and Analysis (“MD&A”) for the three and nine months ended September 30, 2023 will be available at “www.sedar.com” and our website at “www.inplayoil.com“.
Third Quarter 2023 Financial & Operating Highlights
Realized average quarterly production of 9,003 boe/d(1) (57% light crude oil and NGLs), a 6% increase compared to 8,474 boe/d (57% light crude oil and NGLs) in the second quarter of 2023 despite extended curtailments and unplanned downtime experienced in the quarter of approximately 550 boe/d.
Generated strong quarterly adjusted funds flow (“AFF”)(2) of $25.2 million ($0.28 per basic share(3)), an increase of 16% from the second quarter of 2023.
Returned $4.0 million ($12.0 million in the first nine months of 2023) directly to shareholders through our monthly base dividend.
Increased revenues by 17% to $46.7 million compared to $39.8 million in the second quarter of 2023.
Improved field operating netbacks(3) by 8% compared to the second quarter of 2023.
Achieved net income of $7.5 million ($0.08 per basic share; $0.08 per diluted share). InPlay has now returned to a retained earnings position on the balance sheet demonstrating that the Company has generated positive earnings since inception (net of dividends paid).
Invested $27.5 million to drill, complete and equip three (2.9 net) Extended Reach Horizontal (“ERH”) wells in Willesden Green, three (3.0 net) ERH wells in Pembina and one (0.35 net) non-operated ERH well in Willesden Green.
Fourth Quarter Operational Update:
Drilled and completed two (1.6 net) ERH wells in Willesden Green which were recently put on production.
The three (3.0 net) Pembina ERH wells brought on production shortly before start of the quarter are producing at strong rates of approximately 260 boe/d(1) (87% light crude oil and NGLs) per well.
Brought online our second natural gas facility upgrade at Leafland, which has increased operated facility capacity by 66% while improving our liquids yield by 40%. Production benefits are already being realized through reduced back pressure on wells, lower declines and providing more consistent runtimes.
Current production is 9,700 boe/d(1) (60% light crude oil and NGLs) based on field estimates., excluding the impact of the two (1.6 net) ERH wells in Willesden Green showing strong flowback rates in the early clean up stage.
Third Quarter 2023 Financial & Operations Overview:
The third quarter of 2023 was a capital intensive quarter for the Company. InPlay invested $27.5 million drilling, completing and equipping three (2.9 net) ERH wells in Willesden Green and three (3.0 net) ERH wells in Pembina. The Company also participated in one (0.35 net) non-operated ERH well in Willesden Green not previously budgeted.
In addition to the upgrade of a natural gas facility in the second quarter, the Company completed a second material upgrade of a gas facility during the third quarter which was brought back on-line in early October. This project modernized existing infrastructure in the Leafland area of Willesden Green and has resulted in an approximate 66% increase to the natural gas processing capability of this facility. The addition of a refrigeration plant to this facility has also improved NGL recoveries by approximately 40%. This additional capacity has lowered field pressures in the area which is expected to improve production and reduce declines on existing wells and future drilling locations. This upgrade is expected to accommodate future development in Leafland and provide more consistent and reliable processing capacity within the Company’s operational control.
The Company has been focused on a high oil weighted drilling program. Three (2.9 net) Willesden Green ERH wells came on production in August into high pressure pipeline systems with average initial production (“IP”) rates per well of 203 boe/d(1) (94% light crude oil and NGLs) over their first 30 days and 215 boe/d(1) (93% light crude oil and NGLs) over their first 60 days. The impact of our facility improvements has enabled these wells to have multiple weeks of flat to improving production rates and after two months they continue to produce at an average rate of approximately 280 boe/d(1) (87% light crude oil and NGLs) per well. The production witnessed from the most recent six wells drilled in Willesden Green have recently benefitted from reduced field pressures and consistent facility runtimes resulting from our operated natural gas facility expansions.
In addition, three (3.0 net) Pembina ERH wells came on production at the end of September with average initial production (“IP”) rates per well of 227 boe/d(1) (88% light crude oil and NGLs) over their first 30 days. These wells have also continued to clean up after completions and are currently producing approximately 260 boe/d(1) (87% light crude oil and NGLs) per well.
Production for the three months ended September 30, 2023 averaged 9,003 boe/d(1) (57% light crude oil and NGLs), 6% higher compared to the three months ended June 30, 2023. Third quarter production was impacted by approximately 550 boe/d (52% light crude oil and NGLs) primarily due to the continuation of multiple third-party natural gas takeaway constraints on our operations and the commissioning of our expanded gas facility that slightly exceeded the anticipated startup timeline. The continued third-party facility outages forced the redirection of associated natural gas to less favorable third-party facilities impacting production through increased back pressure on producing wells as well as higher operating costs.
InPlay generated AFF(2) of $25.2 million ($0.28 per basic share) an increase of 16% from the second quarter of 2023. The Company achieved net income of $7.5 million ($0.08 per basic share; $0.08 per diluted share) and has returned to a retained earnings position on the balance sheet. This is evidence of the long-term sustainability of the Company as positive earnings have been generated since inception (net of dividends paid).
Outlook and Operations Update(5)
The majority of InPlay’s capital program for the year has been completed. The Company’s drilling program for the fourth quarter is underway with two (1.6 net) ERH wells in Willesden Green having been drilled to date. These two wells have been completed and are in the early stages of production. In addition, a 1.0 net Belly River well is now planned to be drilled in the fourth quarter and anticipated to come online in December with its first full month of production expected to commence in January 2024. This well replaces a previously planned one (0.8 net) Willesden Green well.
The investments made in increasing natural gas takeaway capacity through the two facility upgrades in Willesden Green will be important in alleviating potential production issues from third party facility outages going forward. These upgrades have increased our natural gas processing and takeaway capacity in Leafland from approximately 8,400 mcf/d to 17,300 mcf/d. These projects have already shown their importance by reducing back pressure on wells, lowering declines and providing more consistent runtimes, and the reduction in field pressures has the added benefit of improving our liquids weighting. Current production is approximately 9,700 boe/d(1) (60% light crude oil and NGLs) based on field estimates, excluding the impact of two (1.6 net) ERH wells in Willesden Green which are in early stage cleanup and with only four days of production are showing strong flowback rates.
As a result, the fourth quarter is forecasted to be our highest production quarter of the year and given the strong crude oil pricing environment and weak Canadian dollar, the fourth quarter is also projected to be our highest AFF quarter for the year. As the majority of the 2023 capital program was completed by the end of the third quarter, significant free adjusted funds flow (“FAFF”)(3) is expected to be generated in the fourth quarter resulting in a sizeable reduction to net debt prior to year-end.
The Company’s updated 2023 drilling program will be more active than previously planned by approximately 0.6 net wells consisting of 21 (17.1 net) horizontal wells. The changes include an additional one (0.35 net) non-op ERH Willesden Green well and a 1.0 net Belly River well instead of a previously planned one (0.8 net) Willesden Green well. As a result, InPlay has revised its 2023 development capital expenditure guidance to approximately $83 million(5). The timing of the Belly River well will not materially add to 2023 production but will pave the way for potentially an increased Belly River program in 2024 given the high oil weighting and high netback nature of this play. This area is defined by high light-oil weightings that receive a premium to the Mixed Sweet Blend (“MSW”), our pricing benchmark. Our two recent horizontal wells drilled in the area came online in November 2022 and have had operating netbacks of approximately $71.25/boe since being brought on production, and light oil and liquids weightings of approximately 94% to date. These wells have had very low decline rates over this period with average IP rates per well of 98 boe/d (97% light crude oil and NGLs) and 115 boe/d (92% light crude oil and NGLs) over their first 90 and 335 days respectively.
The Company remains committed to providing strong returns to shareholders. Our monthly base dividend of $0.015/share represents approximately a 7% yield at the current share price. To date, the Company has returned $16 million to shareholders through dividends since our inaugural dividend was declared in November 2022, representing approximately 7% of our current market capitalization while maintaining a strong financial position. The generation of shareholder returns through significant FAFF, top-tier production per share growth while maintaining low leverage all remain top priorities of InPlay.
InPlay would like to thank our staff, contractors, and suppliers for their continued dedication and execution, and thank the Board of Directors and shareholders for their continued guidance and support. We look forward to releasing our 2024 capital budget and associated guidance in January.
For further information please contact:
Doug Bartole President and Chief Executive Officer InPlay Oil Corp. Telephone: (587) 955-0632
See “Production Breakdown by Product Type” at the end of this press release.
2.
Capital management measure. See “Non-GAAP and Other Financial Measures” contained within this press release.
3.
Non-GAAP financial measure or ratio that does not have a standardized meaning under International Financial Reporting Standards (IFRS) and GAAP and therefore may not be comparable with the calculations of similar measures for other companies. Please refer to “Non-GAAP and Other Financial Measures” contained within this press release.
4.
Supplementary financial measure. See “Non-GAAP and Other Financial Measures” contained within this press release.
5.
See “Reader Advisories – Forward Looking Information and Statements” for key budget and underlying assumptions related to our previous and updated 2023 capital program and associated guidance.
Reader Advisories
Non-GAAP and Other Financial Measures
Throughout this press release and other materials disclosed by the Company, InPlay uses certain measures to analyze financial performance, financial position and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under GAAP and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with GAAP as indicators of the Company performance. Management believes that the presentation of these non-GAAP and other financial measures provides useful information to shareholders and investors in understanding and evaluating the Company’s ongoing operating performance, and the measures provide increased transparency and the ability to better analyze InPlay’s business performance against prior periods on a comparable basis.
Non-GAAP Financial Measures and Ratios
Included in this document are references to the terms “free adjusted funds flow”, “operating income”, “operating netback per boe”, “operating income profit margin”, “Net Debt to EBITDA”, “Net Corporate Acquisitions”, “Debt adjusted production per share” and “EV / DAAFF”. Management believes these measures and ratios are helpful supplementary measures of financial and operating performance and provide users with similar, but potentially not comparable, information that is commonly used by other oil and natural gas companies. These terms do not have any standardized meaning prescribed by GAAP and should not be considered an alternative to, or more meaningful than “profit (loss) before taxes”, “profit (loss) and comprehensive income (loss)”, “adjusted funds flow”, “capital expenditures”, “corporate acquisitions, net of cash acquired”, “net debt”, “weighted average number of common shares (basic)” or assets and liabilities as determined in accordance with GAAP as a measure of the Company’s performance and financial position.
Free Adjusted Funds Flow
Management considers FAFF an important measure to identify the Company’s ability to improve its financial condition through debt repayment and its ability to provide returns to shareholders. FAFF should not be considered as an alternative to or more meaningful than AFF as determined in accordance with GAAP as an indicator of the Company’s performance. FAFF is calculated by the Company as AFF less exploration and development capital expenditures and property dispositions (acquisitions) and is a measure of the cashflows remaining after capital expenditures before corporate acquisitions that can be used for additional capital activity, corporate acquisitions, repayment of debt or decommissioning expenditures or potentially return of capital to shareholders. Refer to the “Forward Looking Information and Statements” section for a calculation of forecast FAFF.
Operating Income/Operating Netback per boe/Operating Income Profit Margin
InPlay uses “operating income”, “operating netback per boe” and “operating income profit margin” as key performance indicators. Operating income is calculated by the Company as oil and natural gas sales less royalties, operating expenses and transportation expenses and is a measure of the profitability of operations before administrative, share-based compensation, financing and other non-cash items. Management considers operating income an important measure to evaluate its operational performance as it demonstrates its field level profitability. Operating income should not be considered as an alternative to or more meaningful than net income as determined in accordance with GAAP as an indicator of the Company’s performance. Operating netback per boe is calculated by the Company as operating income divided by average production for the respective period. Management considers operating netback per boe an important measure to evaluate its operational performance as it demonstrates its field level profitability per unit of production. Operating income profit margin is calculated by the Company as operating income as a percentage of oil and natural gas sales. Management considers operating income profit margin an important measure to evaluate its operational performance as it demonstrates how efficiently the Company generates field level profits from its sales revenue. Refer below for a calculation of operating income, operating netback per boe and operating income profit margin.
(thousands of dollars)
Three Months Ended September 30
Nine Months Ended September 30
2023
2022
2023
2022
Revenue
46,672
56,985
131,735
180,429
Royalties
(5,387)
(10,607)
(16,178)
(28,017)
Operating expenses
(12,677)
(10,946)
(36,343)
(30,660)
Transportation expenses
(698)
(888)
(2,190)
(2,802)
Operating income
27,910
34,544
77,024
118,950
Sales volume (Mboe)
828.3
873.5
2,411.2
2,438.1
Per boe
Revenue
56.35
65.24
54.63
74.00
Royalties
(6.50)
(12.14)
(6.71)
(11.49)
Operating expenses
(15.31)
(12.53)
(15.07)
(12.58)
Transportation expenses
(0.85)
(1.02)
(0.90)
(1.15)
Operating netback per boe
33.69
39.55
31.95
48.78
Operating income profit margin
60 %
61 %
58 %
66 %
Net Debt to EBITDA
Management considers Net Debt to EBITDA an important measure as it is a key metric to identify the Company’s ability to fund financing expenses, net debt reductions and other obligations. EBITDA is calculated by the Company as adjusted funds flow before interest expense. When this measure is presented quarterly, EBITDA is annualized by multiplying by four. When this measure is presented on a trailing twelve month basis, EBITDA for the twelve months preceding the net debt date is used in the calculation. This measure is consistent with the EBITDA formula prescribed under the Company’s Senior Credit Facility. Net Debt to EBITDA is calculated as Net Debt divided by EBITDA. Refer to the “Forward Looking Information and Statements” section for a calculation of forecast Net Debt to EBITDA.
Net Corporate Acquisitions
Management considers Net corporate acquisitions an important measure as it is a key metric to evaluate the corporate acquisition in comparison to other transactions using the negotiated consideration value and ignoring changes to the fair value of the share consideration between the signing of the definitive agreement and the closing of the transaction. Net corporate acquisitions should not be considered as an alternative to or more meaningful than “Corporate acquisitions, net of cash acquired” as determined in accordance with GAAP as an indicator of the Company’s performance. Net corporate acquisitions is calculated as total consideration with share consideration adjusted to the value negotiated with the counterparty, less working capital balances assumed on the corporate acquisition. Refer below for a calculation of Net corporate acquisitions and reconciliation to the nearest GAAP measure, “Corporate acquisitions, net of cash acquired”.
(thousands of dollars)
Three Months Ended September 30
Nine Months Ended September 30
2023
2022
2023
2022
Corporate acquisitions, net of cash acquired
–
89
–
501
Share consideration
–
–
–
–
Non-cash working capital acquired
–
–
–
–
Derivative contracts
–
–
–
–
Net Corporate acquisitions
–
89
–
501(1)
(1) During the nine months ended September 30, 2022, the acquired amount of Property, plant and equipment was adjusted by $0.5 million as a result of adjustments relating to the acquisition of Prairie Storm, with a corresponding increase in the recognized amounts of Accounts payable and accrued liabilities.
Production per Debt Adjusted Share
InPlay uses “Production per debt adjusted share” as a key performance indicator. Debt adjusted shares should not be considered as an alternative to or more meaningful than common shares as determined in accordance with GAAP as an indicator of the Company’s performance. Debt adjusted shares is a non-GAAP measure used in the calculation of Production per debt adjusted share and is calculated by the Company as common shares outstanding plus the change in net debt divided by the Company’s current trading price on the TSX, converting net debt to equity. Debt adjusted shares should not be considered as an alternative to or more meaningful than weighted average number of common shares (basic) as determined in accordance with GAAP as an indicator of the Company’s performance. Management considers Debt adjusted share to be a key performance indicator as it adjusts for the effects of capital structure in relation to the Company’s peers. Production per debt adjusted share is calculated by the Company as production divided by debt adjusted shares. Management considers Production per debt adjusted share is a key performance indicator as it adjusts for the effects of changes in annual production in relation to the Company’s capital structure. Refer to the “Forward Looking Information and Statements” section for a calculation of forecast Production per debt adjusted share.
EV / DAAFF
InPlay uses “enterprise value to debt adjusted AFF” or “EV/DAAFF” as a key performance indicator. EV/DAAFF is calculated by the Company as enterprise value divided by debt adjusted AFF for the relevant period. Debt adjusted AFF (“DAAFF”) is calculated by the Company as adjusted funds flow plus financing costs. Enterprise value is a capital management measure that is used in the calculation of EV/DAAFF. Enterprise value is calculated as the Company’s market capitalization plus working capital (net debt). Management considers enterprise value a key performance indicator as it identifies the total capital structure of the Company. Management considers EV/DAAFF a key performance indicator as it is a key metric used to evaluate the sustainability of the Company relative to other companies while incorporating the impact of differing capital structures. Refer to the “Forward Looking Information and Statements” section for a calculation of forecast EV/DAAFF.
Capital Management Measures
Adjusted Funds Flow
Management considers adjusted funds flow to be an important measure of InPlay’s ability to generate the funds necessary to finance capital expenditures. Adjusted funds flow is a GAAP measure and is disclosed in the notes to the Company’s financial statements for the three months ended March 31, 2023. All references to adjusted funds flow throughout this MD&A are calculated as funds flow adjusting for decommissioning expenditures and transaction and integration costs. Decommissioning expenditures are adjusted from funds flow as they are incurred on a discretionary and irregular basis and are primarily incurred on previous operating assets. Transaction costs are non-recurring costs for the purposes of an acquisition, making the exclusion of these items relevant in Management’s view to the reader in the evaluation of InPlay’s operating performance. The Company also presents adjusted funds flow per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of profit per common share.
Net Debt / Working Capital
Net debt / working capital is a GAAP measure and is disclosed in the notes to the Company’s financial statements for three months ended March 31, 2023. The Company closely monitors its capital structure with the goal of maintaining a strong balance sheet to fund the future growth of the Company. The Company monitors net debt / working capital as part of its capital structure. The Company uses net debt / working capital (bank debt plus accounts payable and accrued liabilities less accounts receivables and accrued receivables, prepaid expenses and deposits and inventory) as an alternative measure of outstanding debt. Management considers net debt / working capital an important measure to assist in assessing the liquidity of the Company.
Supplementary Measures
“Average realized crude oil price” is comprised of crude oil commodity sales from production, as determined in accordance with IFRS, divided by the Company’s crude oil production. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments.
“Average realized NGL price” is comprised of NGL commodity sales from production, as determined in accordance with IFRS, divided by the Company’s NGL production. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments.
“Average realized natural gas price” is comprised of natural gas commodity sales from production, as determined in accordance with IFRS, divided by the Company’s natural gas production. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments.
“Average realized commodity price” is comprised of commodity sales from production, as determined in accordance with IFRS, divided by the Company’s production. Average prices are before deduction of transportation costs and do not include gains and losses on financial instruments.
“Adjusted funds flow per weighted average basic share” is comprised of adjusted funds flow divided by the basic weighted average common shares.
“Adjusted funds flow per weighted average diluted share” is comprised of adjusted funds flow divided by the diluted weighted average common shares.
“Adjusted funds flow per boe” is comprised of adjusted funds flow divided by total production.
Forward-Looking Information and Statements
This news release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “forecast” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: the Company’s business strategy, milestones and objectives; the Company’s planned 2023 capital program including wells to be drilled and completed and the timing of the same; the expectation that our Leafland gas facility upgrade will accommodate full development, provide consistent and reliable processing capacity, improve production on existing wells and future drilling locations and reduce production declines; accommodate full development in Leafland and provide consistent and reliable processing capacity within the Company’s operational control; 2023 guidance based on the planned capital program and all associated underlying assumptions set forth in this press release including, without limitation, forecasts of 2023 annual average production levels, debt adjusted production levels, adjusted funds flow, free adjusted funds flow, Net Debt/EBITDA ratio, operating income profit margin, and Management’s belief that the Company can grow some or all of these attributes and specified measures; light crude oil and NGLs weighting estimates; that the fourth quarter is forecasted to be our highest production and AFF quarter of the year with significant FAFF generated resulting in a sizeable reduction to net debt and a material reduction to our leverage metrics; expectations regarding future commodity prices; future oil and natural gas prices; future liquidity and financial capacity; future results from operations and operating metrics; future costs, expenses and royalty rates; future interest costs; the exchange rate between the $US and $Cdn; future development, exploration, acquisition, development and infrastructure activities and related capital expenditures, including our planned 2023 capital program; the amount and timing of capital projects; forecasted spending on decommissioning; expectations regarding third party processing constraints and maintenance shut ins and the timing and impact of the same; that the Company has the financial capability to deliver consistent return to shareholders and the dividend is supportable at a $55 WTI pricing environment until 2025; the potential for an increased Belly River program in 2024; the timing of the release of the Company’s 2024 capital budget and associated guidance; and methods of funding our capital program.
Without limitation of the foregoing, readers are cautioned that the Company’s future dividend payments to shareholders of the Company, if any, and the level thereof will be subject to the discretion of the Board of Directors of InPlay. The Company’s dividend policy and funds available for the payment of dividends, if any, from time to time, is dependent upon, among other things, levels of FAFF, leverage ratios, financial requirements for the Company’s operations and execution of its growth strategy, fluctuations in commodity prices and working capital, the timing and amount of capital expenditures, credit facility availability and limitations on distributions existing thereunder, and other factors beyond the Company’s control. Further, the ability of the Company to pay dividends will be subject to applicable laws, including satisfaction of solvency tests under the Business Corporations Act (Alberta), and satisfaction of certain applicable contractual restrictions contained in the agreements governing the Company’s outstanding indebtedness.
Forward-looking statements or information are based on a number of material factors, expectations or assumptions of InPlay which have been used to develop such statements and information but which may prove to be incorrect. Although InPlay believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because InPlay can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which InPlay operates; the timely receipt of any required regulatory approvals; the ability of InPlay to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which InPlay has an interest in to operate the field in a safe, efficient and effective manner; the ability of InPlay to obtain debt financing on acceptable terms; the anticipated tax treatment of the monthly base dividend; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and the ability of InPlay to secure adequate product transportation; future commodity prices; that various conditions to a shareholder return strategy can be satisfied; the ongoing impact of the Russia/Ukraine conflict and war in the Middle East; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which InPlay operates; and the ability of InPlay to successfully market its oil and natural gas products.
The forward-looking information and statements included herein are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: the continuing impact of the Russia/Ukraine conflict and war in the Middle East; inflation and the risk of a global recession; changes in our planned 2023 capital program; changes in our long range plan; changes in our approach to shareholder returns; changes in commodity prices and other assumptions outlined herein; the risk that dividend payments may be reduced, suspended or cancelled; the potential for variation in the quality of the reservoirs in which we operate; changes in the demand for or supply of our products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans or strategies of InPlay or by third party operators of our properties; changes in our credit structure, increased debt levels or debt service requirements; inaccurate estimation of our light crude oil and natural gas reserve and resource volumes; limited, unfavorable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in InPlay’s continuous disclosure documents filed on SEDAR including our Annual Information Form and our MD&A.
This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about InPlay’s financial and leverage targets and objectives, InPlay’s long-term forecast, and potential dividends, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. The actual results of operations of InPlay and the resulting financial results will likely vary from the amounts set forth in this press release and such variation may be material. InPlay and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s reasonable estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, InPlay undertakes no obligation to update such FOFI. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about InPlay’s anticipated future business operations and strategy. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein.
The internal projections, expectations, or beliefs underlying our Board approved 2023 capital budget and associated guidance, as well as management’s preliminary estimates and targets in respect of plans for 2024 and beyond (which are not based on Board approved budgets at this time), are subject to change in light of, among other factors, the impact of world events including the Russia/Ukraine conflict, ongoing results, prevailing economic circumstances, volatile commodity prices, and industry conditions and regulations. InPlay’s financial outlook and guidance provides shareholders with relevant information on management’s expectations for results of operations, excluding any potential acquisitions or dispositions, for such time periods based upon the key assumptions outlined herein. In this document reference is made to the Company’s longer range 2024 and beyond internal plan and associated economic model. Such information reflects internal estimates and targets used by management for the purposes of making capital investment decisions and for internal long-range planning and budget preparation. Readers are cautioned that events or circumstances could cause capital plans and associated results to differ materially from those predicted and InPlay’s guidance for 2023, and more particularly 2024 and beyond, may not be appropriate for other purposes. Accordingly, undue reliance should not be placed on same.
The forward-looking information and statements contained in this news release speak only as of the date hereof and InPlay does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Risk Factors to FLI
Risk factors that could materially impact successful execution and actual results of the Company’s 2023 capital program and associated guidance and long-term preliminary plans and estimates include:
volatility of petroleum and natural gas prices and inherent difficulty in the accuracy of predictions related thereto;
the extent of any unfavourable impacts of wildfires in the province of Alberta.
changes in Federal and Provincial regulations;
the Company’s ability to secure financing for the Board approved 2023 capital program and longer-term capital plans sourced from AFF, bank or other debt instruments, asset sales, equity issuance, infrastructure financing or some combination thereof; and
those additional risk factors set forth in the Company’s MD&A and most recent Annual Information Form filed on SEDAR
Key Budget and Underlying Material Assumptions to FLI
The Company’s 2023 guidance remains the same as previously released August 14, 2023, with updated capital expenditures to $83 million. The 2023 guidance calculations which are impacted by this change are outlined below.
Actuals FY 2022
Updated Guidance FY 2023
Previous Guidance FY 2023(1)
Adjusted Funds Flow
$ millions
$131
$103 – $108
$103 – $108
Capital Expenditures
$ millions
$77.6
$83
$75 – $80
Free Adjusted Funds Flow
$ millions
$53
$20 – $25
$23 – $33
Actuals FY 2022
Updated Guidance FY 2023
Previous Guidance FY 2023(1)
Adjusted Funds Flow
$ millions
$131
$103 – $108
$103 – $108
Interest
$/boe
1.49
1.00 – 1.50
1.00 – 1.50
EBITDA
$ millions
$136
$108 – $113
$108 – $113
Working Capital (Net Debt)
$ millions
($33)
($35) – ($30)
($31) – ($27)
Net Debt/EBITDA
0.2
0.2 – 0.3
0.2 – 0.3
Actuals FY 2022
Updated Guidance FY 2023
Previous Guidance FY 2023(1)
Production
Boe/d
9,105
9,100 – 9,500
9,100 – 9,500
Opening Working Cap. (Net Debt)
$ millions
($80.2)
($33)
($33)
Ending Working Cap. (Net Debt)
$ millions
($33)
($35) – ($30)
($31) – ($27)
Weighted avg. outstanding shares
# millions
86.9
88.7
88.7
Assumed Share price
$
3.39(4)
2.75
2.75
Prod. per debt adj. share growth(3)
51 %
(3%) – 3%
0% – 5%
Actuals FY 2022
Updated Guidance FY 2023
Previous Guidance FY 2023(1)
Share outstanding, end of year
# millions
87.0
89.4
89.4
Assumed Share price
$
3.03(5)
2.75
2.75
Market capitalization
$ millions
$263
$246
$246
Working Capital (Net Debt)
$ millions
($33)
($35) – ($30)
($31) – ($27)
Enterprise value
$millions
$296
$276 – $281
$273 – $277
Adjusted Funds Flow
$ millions
$131
$103 – $108
$103 – $108
Interest
$/boe
1.49
1.00 – 1.50
1.00 – 1.50
Debt Adjusted AFF
$ millions
$136
$108 – $113
$108 – $113
EV/DAAFF
2.2
2.7 – 2.5
2.6 – 2.4
The Company’s 2024 and 2025 preliminary plans remains the same as previously released January 18, 2023, with net debt (working capital) updated to reflect the updated forecast 2023 ending net debt. The 2024 and 2025 preliminary plan guidance calculations which are impacted by this change are outlined below.
Updated Preliminary Plan FY 2024(6)
Updated Preliminary Plan FY 2025(6)
Previous Preliminary Plan FY 2024(2)(6)
Previous Preliminary Plan FY 2025(2)(6)
Adjusted Funds Flow
$ millions
$138 – $150
$144 – $154
$138 – $150
$144 – $154
Interest
$/boe
0.00 – 0.10
0.00 – 0.10
0.00 – 0.10
0.00 – 0.10
EBITDA
$ millions
$138 – $150
$144 – $154
$138 – $150
$144 – $154
Working Capital (Net Debt)
$ millions
$2 – $14
$45 – $56
$5 – $17
$48 – $59
Net Debt/EBITDA
(0.0) – (0.1)
(0.3) – (0.4)
(0.0) – (0.2)
(0.3) – (0.5)
Updated Preliminary Plan FY 2024(6)
Updated Preliminary Plan FY 2025(6)
Previous Preliminary Plan FY 2024(2)(6)
Previous Preliminary Plan FY 2025(2)(6)
Production
Boe/d
10,250 – 11,250
10,950 – 11,950
10,250 – 11,250
10,950 – 11,950
Opening Working Cap. (Net Debt)
$ millions
($35) – ($30)
$2 – $14
($31) – ($27)
$5 – $17
Ending Working Cap. (Net Debt)
$ millions
$2 – $14
$45 – $56
$5 – $17
$48 – $59
Weighted avg. outstanding shares
# millions
89.1
89.1
89.1
89.1
Assumed Share price
$
2.75
2.75
2.75
2.75
Prod. per debt adj. share growth(3)
28% – 48%
21% – 39%
28% – 48%
21% – 39%
Updated Preliminary Plan FY 2024(6)
Updated Preliminary Plan FY 2025(6)
Previous Preliminary Plan FY 2024(2)(6)
Previous Preliminary Plan FY 2025(2)(6)
Share outstanding, end of year
# millions
89.4
89.4
89.4
89.4
Assumed Share price
$
2.75
2.75
2.75
2.75
Market capitalization
$ millions
$246
$246
$246
$246
Working Capital (Net Debt)
$ millions
$2 – $14
$45 – $56
$5 – $17
$48 – $59
Enterprise value
$millions
$232 – $244
$190 – $201
$229 – $241
$187 – $198
Adjusted Funds Flow
$ millions
$138 – $150
$144 – $154
$138 – $150
$144 – $154
Interest
$/boe
0.00 – 0.10
0.00 – 0.10
0.00 – 0.10
0.00 – 0.10
Debt Adjusted AFF
$ millions
$138 – $150
$144 – $154
$138 – $150
$144 – $154
EV/DAAFF
1.8 – 1.5
1.4 – 1.2
1.8 – 1.5
1.4 – 1.2
(1)
As previously released August 14, 2023.
(2)
As previously released January 18, 2023.
(3)
Production per debt adjusted share is calculated by the Company as production divided by debt adjusted shares. Debt adjusted shares is calculated by the Company as common shares outstanding plus the change in working capital (net debt) divided by the Company’s current trading price on the TSX, converting working capital (net debt) to equity. Future share prices are assumed to be consistent with the current share price.
(4)
Weighted average share price throughout 2022.
(5)
Ending share price at December 31, 2022.
(6)
InPlay’s estimates and plans for 2024 and beyond remain preliminary in nature and do not, at this time, reflect a Board approved capital expenditure budget.
See “Production Breakdown by Product Type” below
Quality and pipeline transmission adjustments may impact realized oil prices in addition to the MSW Differential provided above
Changes in working capital (net debt) are not assumed to have a material impact between the years presented above.
Test Results and Initial Production Rates
Test results and initial production (“IP”) rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery. A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed.
Production Breakdown by Product Type
Disclosure of production on a per boe basis in this press release consists of the constituent product types as defined in NI 51–101 and their respective quantities disclosed in the table below:
Light and Medium Crude oil(bbls/d)
NGLs(boe/d)
Conventional Natural gas(Mcf/d)
Total(boe/d)
Q1 2022 Average Production
3,571
1,307
20,054
8,221
Q2 2022 Average Production
3,865
1,333
23,191
9,063
Q3 2022 Average Production
3,717
1,432
26,075
9,495
2022 Average Production
3,766
1,402
23,623
9,105
Q1 2023 Average Production
3,788
1,458
22,648
9,020
Q2 2023 Average Production
3,658
1,187
21,772
8,474
Q3 2023 Average Production
3,697
1,420
23,316
9,003
2023 Annual Guidance
4,105
1,332
23,175
9,300(1)
2024 Annual Preliminary Plan
4,655
1,565
27,180
10,750(2)
2025 Annual Preliminary Plan
4,900
1,685
29,190
11,450(2)
Current Production
4,365
1,455
23,280
9,700
Q3 Pembina Wells (per well) – IP30
197
4
156
227
Q3 Pembina Wells (per well) – Current
220
5
210
260
Q3 WG Wells (per well) – IP30
188
3
72
203
Q3 WG Wells (per well) – IP60
196
3
96
215
Q3 WG Wells (per well) – Current
236
8
215
280
Notes:
1.
This reflects the mid-point of the Company’s 2023 production guidance range of 9,100 to 9,500 boe/d.
2.
This reflects the midpoint of the Company’s annual production preliminary estimate range.
3.
With respect to forward–looking production guidance, product type breakdown is based upon management’s expectations based on reasonable assumptions but are subject to variability based on actual well results.
References to crude oil, light oil, NGLs or natural gas production in this press release refer to the light and medium crude oil, natural gas liquids and conventional natural gas product types, respectively, as defined in National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities (“Nl 51-101”).
BOE equivalent Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of 6:1, utilizing a 6:1 conversion basis may be misleading as an indication of value.
BY THE COMTECH EDITORIAL TEAM – NOV 9, 2023 | 3 MIN READ
MELVILLE, N.Y. — November 9, 2023 — Comtech (NASDAQ: CMTL), a global technology leader, announced today, the receipt of a $20.0 million order from the company’s UK-based partners, Spectra Group. The order will allow Spectra Group, the appointed regional distributor of Comtech’s Compact Over-the-Horizon Transportable Terminal (COMET), to service multiple orders already received, and several expected follow-on orders from undisclosed customers in the NATO and European regions.
Comtech’s feature-rich, network agnostic COMET system is designed to be easily integrated with other Department of Defense (DoD) and coalition tactical, mobile, and fixed communications systems to provide resilient, secure beyond-line-of-sight (BLOS) capabilities in some of the world’s most challenging environments. Each Comtech COMET is an end-to-end, rapidly deployable BLOS system that utilizes a single fully integrated Troposcatter hub, which includes the company’s CS67PLUS Troposcatter radio. The CS67PLUS is also embedded across each of Comtech’s next generation Family of Systems (FoS).
“Through this order from Spectra Group, Comtech is helping expand network agnostic, secure, and interoperable BLOS communications capabilities for our NATO and EU regional partners,” said Ken Peterman, President and CEO, Comtech. “As the DoD looks to enhance interoperable communications capabilities for coalition operations, Comtech’s Troposcatter FoS are uniquely designed to bring forward blended BLOS capabilities needed to enhance mission effectiveness and deter near-peer threats in all-domain environments.”
“These multiple customers for whom we’ve placed this order for stock, prove the confidence in Comtech’s COMET Troposcatter system and underline Comtech as being a world leader in this technology,” said Simon Davies, CEO, Spectra Group. “The COMET Troposcatter system provides low latency, high throughput BLOS communications in austere environments in what is a challenging satellite denied environment against a sophisticated enemy with a high electronic warfare capability. I’m delighted to be working with Comtech as their appointed distributor helping them to reach new customers with COMET.”
Comtech’s next generation Troposcatter FoS, which includes the company’s market leading COMET systems, provide military operators and other end users with innovative BLOS capabilities by scattering microwave radio signals off the upper layers of the troposphere. Today, we believe Comtech has the most deployed next generation Troposcatter systems in the world, which will help the DoD and coalition nations move to blended networks that can support Combined Joint All-Domain Command and Control (CJADC2) operations.
In September 2023, Spectra Group announced the receipt of a $8.0 million order from UK MoD to equip 3 (UK) Division with Comtech’s COMET systems. Spectra Group is now close to receiving additional orders for large quantities of Comtech’s COMET systems from other key NATO and European regional customers.
About Comtech
Comtech Telecommunications Corp. is a leading global technology company providing terrestrial and wireless network solutions, next-generation 9-1-1 emergency services, satellite and space communications technologies, and cloud native capabilities to commercial and government customers around the world. Our unique culture of innovation and employee empowerment unleashes a relentless passion for customer success. With multiple facilities located in technology corridors throughout the United States and around the world, Comtech leverages our global presence, technology leadership, and decades of experience to create the world’s most innovative communications solutions.For more information, please visit www.comtech.com.
About Spectra Group (UK) Ltd
Spectra has a proven record of accomplishment – with over 15 years of experience in delivering solutions for governments around the globe; elite militaries; and private enterprises of all sizes. As a dynamic, agile, security accredited organisation, Spectra can leverage this experience to deliver Cyber Advisory and secure Hosted and Managed Solutions on time, to spec and on budget, ensuring compliance with industry standards and best practices. Spectra’s gold-level partnerships with third-party vendors ensure best value and leading edge technology is used. On 23 November 2017, Spectra Group (UK) Ltd announced that it had recently been listed as a Top 100 Government SME Supplier for 2015-2016 by the UK Crown Commercial Services. Spectra Group (US) Inc was established in 2018 to directly support the US market.
Spectra Group were awarded the 5-year contact to be the UK distributor of Troposcatter COMET for US company COMTECH Systems Inc in late 2019. Comtech is a leading global provider of next-generation 911 emergency systems and critical wireless and satellite communication technologies.
Spectra’s CEO, Simon Davies, was awarded 2017 Businessman of the Year by Battlespace magazine.
Spectra was awarded the prestigious Queen’s Award for Enterprise (Innovation) in 2019 for SlingShot. Founded in 2002, the Company is based in Hereford, UK and holds ISO 9001:2015, ISO 27001 and Cyber Essentials Plus accreditation.
Forward-Looking Statements
Certain information in this press release contains statements that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results and performance could differ materially from such forward-looking information. The Company’s Securities and Exchange Commission filings identify many such risks and uncertainties. Any forward-looking information in this press release is qualified in its entirety by the risks and uncertainties described in such Securities and Exchange Commission filings.
ATLANTA, Nov. 09, 2023 (GLOBE NEWSWIRE) — Bitcoin Depot Inc. (“Bitcoin Depot” or the “Company”) (NASDAQ: BTM), a U.S.-based Bitcoin ATM operator and leading fintech company, today announced its partnership with CORD Financial Services, LLC (CORD), a leading provider of innovative ATM solutions, to distribute Bitcoin Depot kiosks across the U.S.
CORD and Bitcoin Depot will secure Bitcoin ATM placements within CORD’s established base of customers and to customers new to CORD. In addition to now offering Bitcoin ATM services, CORD is a leader in the ATM Services Business, offering full-service ATM placements, cash management, transaction processing, merchant services, ATM equipment, sales, and 24/7 customer and technical support.
“This partnership will allow Bitcoin Depot to expand our retail locations while leveraging CORD’s expertise and customer relationships in the ATM industry,” said Bitcoin Depot CEO Brandon Mintz. “CORD has an impressive history of reliable ATM services and a demonstrated mastery of the conventional ATM space. We look forward to leveraging their relationship network and brand awareness to drive additional placement opportunities for our business.”
“Our mission is to deliver comprehensive ATM business solutions with the highest value and professional integrity,” said CORD Financial President Kenneth Gilbert. “Bitcoin Depot is the ideal partner to advance that objective, and we look forward to bringing a financial technology-driven Bitcoin ATM solution to our customer base.”
The combination of CORD’s robust infrastructure and network positions them as a fitting partner for distributing Bitcoin Depot’s state-of-the-art Bitcoin ATMs to the market, broadening Bitcoin Depot’s mission of bringing Bitcoin to the masses.
About Bitcoin Depot Bitcoin Depot (Nasdaq: BTM) was founded in 2016 with the mission to connect those who prefer to use cash to the broader, digital financial system. Bitcoin Depot provides its users with simple, efficient and intuitive means of converting cash into Bitcoin, which users can deploy in the payments, spending and investing space. Users can convert cash to Bitcoin at Bitcoin Depot’s kiosks and at thousands of name-brand retail locations in 48 U.S. states through its BDCheckout product. The Company has the largest market share in North America with approximately 6,400 kiosk locations as of June 30, 2023. Learn more at www.bitcoindepot.com.
About Cord Financial: CORD Financial Services is a leading provider of innovative ATM solutions, products, and services that support merchants with responsive, knowledgeable, and caring people. CORD offers full -service ATM placements, cash management, ATM transaction processing, ATM equipment sales, ATM parts, and outstanding 24/7 customer and technical support.
Contacts:
Investors Cody Slach, Alex Kovtun Gateway Group, Inc. 949-574-3860 BTM@gateway-grp.com
Media Zach Kadletz, Brenlyn Motlagh, Ryan Deloney Gateway Group, Inc. 949-574-3860 BTM@gateway-grp.com
