15 May 2024
i3 Energy plc
("i3", "i3 Energy",
or the "Company")
Q1 2024 Operational and Financial
Results
i3 Energy plc (AIM:I3E) (TSX:ITE), an
independent oil and gas company with assets and operations in the
UK and Canada, is pleased to announce its operating and financial
results for the three months ended 31 March 2024. As previously
stated, the Company's Canadian shareholding has increased beyond
10% and, as a result, i3 is no longer a designated foreign issuer
and therefore no longer eligible for certain continuous disclosure
exemptions previously granted through National Instrument 71-102.
As such, the Company has commenced issuing quarterly financial
reports and preparing continuous disclosure in accordance with
applicable Canadian securities laws. i3's unaudited condensed
interim financial statements for the three months ended 31 March
2024 and related Management's Discussion and Analysis ("MD&A")
are available on i3 Energy's website at https://i3.energy/ and filed on
SEDAR+.
Highlights:
·
Free cash flow (FCF)(1) for Q1 2024 was USD 15.0
million compared to USD 9.9 million for the same 2023
period.
· A
new CAD 75 million reserve-based senior secured credit facility
with the National Bank of Canada, comprised of a CAD 55 million
revolving facility and a CAD 20 million operating loan
facility.
·
Repayment of approximately CAD 57 million, representing the
outstanding balance of i3 Energy's existing CAD 75 million loan
facility (the "Debt Facility") with Trafigura Canada Ltd., a
subsidiary of Trafigura Pte Ltd ("Trafigura").
·
Average Q1 2024 production of 19,410 barrels of oil
equivalent per day ("boepd").
· The
Company published its 2022 ESG Report, continued its CO2e emissions
reduction initiatives with the electrification of 3 well sites, and
downhole abandoned 4 wells.
· As
part of i3's commitment to its total shareholder return model,
dividends of £3.084 million (USD 3.911 million) were declared and
paid in Q1 2024.
·
Post quarter-end, i3 entered into a definitive
agreement to sell most of the Company's royalty assets (the
"Royalty Disposition") for a total gross cash consideration of USD
24.81 million (CAD 33.50 million) before customary closing
adjustments, which translates to 6.9 times 2024 forecasted cash
flow and approximately USD 63,960 per flowing boepd.
· As
at 31 March 2024, i3 had Net Debt(1) of USD 21.0
million, which was eliminated at the Close of the aforementioned
Royalty Disposition.
·
Post quarter-end, the Company further Closed the accretive
disposition of a non-core, non-operated, shallow dry gas focussed
Northern Alberta asset (Hangingstone), for realized proceeds of USD
0.3 million.
Majid Shafiq,
CEO of i3 Energy plc, commented:
"Q1 2024 was a
period of intense corporate activity during which we refinanced our
existing debt with a non-amortising, traditional oil and gas
reserves-based loan and laid the groundwork for monetising the
majority of our non-core royalty production which significantly
strengthened our balance sheet and increased liquidity. This
financial restructuring supports the long-term sustainability of
our total shareholder return model and sets the Company up for a
busy operational period for the second half of the year, during
which we will drill a diversified inventory of drilling locations
across our Canadian portfolio, designed to grow production and
advance development of some key assets. We look forward to updating
the market as the year progresses."
Financial and Operating
Summary
OPERATIONAL:
|
Three-months Ended 31 March
2024
|
Three-months Ended 31 March 2023
|
Average daily production:
|
|
|
Oil and condensate
(bbl/d)
|
4,246
|
5,238
|
Natural gas liquids
(bbl/d)
|
4,814
|
5,569
|
Natural gas (mcf/d)
|
60,009
|
69,555
|
Royalty interest (boepd)
|
348
|
373
|
Average Sales Production
(boepd)
|
19,410
|
22,773
|
|
|
|
Average realised pricing:
|
|
|
Oil and condensate
(CAD$/bbl)
|
89.57
|
95.80
|
Natural gas liquids
(CAD$/bbl)
|
21.14
|
26.61
|
Natural gas (CAD$/mcf)
|
2.61
|
3.30
|
Royalty interest
(CAD$/boe)
|
29.73
|
41.02
|
Total (CAD$/boe)
|
33.42
|
39.31
|
|
|
|
FINANCIAL:
|
USD '000s
|
USD
'000s
|
Revenue (net of
royalties)
|
39,825
|
52,803
|
Net Operating Income
("NOI")(1)
|
15,962
|
30,204
|
Adjusted
EBITDA(1)
|
8,749
|
31,249
|
(Loss) / profit before
Tax
|
(4,943)
|
15,356
|
(Loss) / profit after Tax
|
(7,727)
|
12,414
|
Net cash from operating
activities
|
17,138
|
25,650
|
Acquisitions &
Capex(1)
|
2,177
|
15,787
|
FCF(1)
|
14,961
|
9,881
|
Dividends declared and
paid
|
3,911
|
7,437
|
|
|
|
NET
OPERATING INCOME (USD/boe):
|
|
|
Oil and gas sales
|
24.79
|
29.07
|
Royalties
|
(3.40)
|
(4.28)
|
Processing income
|
1.14
|
0.91
|
Production costs
|
(13.49)
|
(10.96)
|
Net Operating Income
(USD/boe)(1)
|
9.04
|
14.74
|
|
|
|
|
Pence /
share
|
Pence /
share
|
Basic EPS
|
(0.51)
|
0.86
|
Diluted EPS
|
(0.51)
|
0.84
|
|
|
|
|
As at
31 March
2024
|
As at
31 December
2023
|
|
USD '000s
|
USD '000s
|
Net Debt(1)
|
21,008
|
23,005
|
(1)
Non-IFRS measure. Refer to Note 1.
The Company experienced robust
FCF(1) for Q1 2024 of USD 15.0 million. i3 incurred an
earnings loss in the first quarter, primarily as a result of
non-cash charges including, but not limited to, risk management
contracts, depletion/depreciation/amortization, increased deferred
taxes and the acceleration of deferred finance charges associated
with the early expiration of the Debt Facility.
Debt Refinancing
During the first quarter, the Company announced
the successful establishment of a reserve-based lending facility
(the "Credit Facility"). The new Credit Facility marked a
significant step in transitioning i3's capital structure, enhancing
the Company's financial flexibility through improved liquidity and
enabling acceleration of its growth and income-based business
plan.
The establishment of a CAD 75 million senior
secured revolving credit facility with the National
Bank of Canada was utilized to settle the Company's
existing CAD 75 million Debt Facility with Trafigura, without
prepayment penalty, of which approximately CAD 57 million was
outstanding at the time of the repayment. Secured against
substantially all the assets and shares of i3 Energy Canada Ltd.,
the new Credit Facility, comprised of a CAD 55 million revolving
facility and a CAD 20 million operating loan facility, has been
established for i3 Energy's wholly owned subsidiary, i3 Energy
Canada Ltd.
The refinanced capital structure enhances the
Company's free cash flow profile through the elimination of the
previously managed three-year, CAD 25 million per annum,
straight-line amortization schedule, which can now be redeployed to
accelerate the development of its extensive drilling inventory to
enhance shareholder value.
Production Update
Production in Q1 2024 averaged 19,410 boepd,
comprised of 60.0 million standard cubic feet of natural gas per
day ("mmcf/d"), 4,814 barrels per day ("bbl/d") of natural gas
liquids ("NGLs"), 4,246 bbl/d of oil & condensate and 348 boepd
of royalty interest production. The quarterly production represents
a decrease of approximately 4% relative to Q4 2023, resulting from
conservative capital management during the period of softening gas
prices and further downtime primarily due to extreme cold in
January 2024, which led to a loss of ~300 boepd for the month (or
~100 boepd for the quarter).
Hedging Programme
i3 continues to employ a defensive risk
management strategy with current hedges in place protecting USD
44.8 million of net operating income in 2024, and
covering 31%, 26%, 26% and 24% of the Company's projected Q1,
Q2, Q3 and Q4 2024 production volumes, respectively.
i3's 2024 hedges are as follows:
|
|
|
|
|
|
|
|
|
|
Swaps
|
|
Basis Swaps
|
|
GAS
|
|
Volume (GJ)
|
Price
(CAD/GJ)
|
|
Volume
(mmbtu)
|
Price
(USD/mmbtu)
|
|
Q1
2024
|
|
2,275,000
|
3.04
|
|
nil
|
nil
|
|
Q2
2024
|
|
1,365,000
|
2.52
|
|
|
|
|
Q3
2024
|
|
1,380,000
|
2.52
|
|
|
|
|
Q4
2024
|
|
1,685,000
|
2.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costless
Collars
|
OIL
|
|
Volume
(bbl)
|
Price
(CAD/bbl)
|
|
Volume
(bbl)
|
Avg Floor Price
(CAD/bbl)
|
Avg Ceiling Price
(CAD/bbl)
|
Q1
2024
|
|
189,750
|
95.89
|
|
22,750
|
100.00
|
121.32
|
Q2
2024
|
|
182,000
|
98.45
|
|
38,000
|
95.99
|
108.46
|
Q3
2024
|
|
84,500
|
100.08
|
|
122,500
|
100.00
|
111.11
|
Q4
2024
|
|
145,550
|
97.41
|
|
41,450
|
100.37
|
111.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Environmental, Social and Governance
("ESG")
Continuing with the ESG initiatives executed in
2023, i3 Energy has maintained its commitment to reducing the
Company's Scope 1 and Scope 2 carbon emissions. i3 electrified
three well sites throughout key operating areas, converting
combustion engines to electric drive engines on existing pumpjacks.
The Company further executed Phase 1 of the previously announced
Alternative Fugitive Emissions Management Programme (ALT FEMP),
which images methane emissions from the air. The effect of this
program, along with corrective actions applied, resulted in an
annual emissions reduction of 3862 tCO2e. Phase 2 of the ALT FEMP
is currently underway.
During the period, i3 also downhole abandoned 4
gross wells (2.78 net) and, in January 2024, the Company published
its 2022 ESG Report. i3 remains dedicated to environmental
sustainability and strives towards continued positive advancements
in its ESG practices.
Return of Capital
The Company remains committed to delivering a
sustainable dividend as part of its total return model. The Q4 2023
dividend of £3.084 million (USD 3.911 million) or 0.2565 pence per
share was declared and paid in Q1 2024. The Q1 2024 dividend of
£3.084 million (USD 3.911 million) or 0.2565 pence per share was
declared in early April and subsequently paid in early May. Subject
to Board approval, the Company expects to pay the Q2 2024 dividend
of 0.2565 pence per share in early Q3 2024, which translates to a
forward yield of 9.4% based on the closing price of i3's ordinary
shares on 10 May 2024.
Post Quarter-end
Events
Partial Sale
of Royalty Assets
Subsequent to the first quarter, i3 announced
that its subsidiary, i3 Energy Canada Ltd. entered into a
definitive agreement with a newly formed private royalty company to
sell the majority of the Company's royalty assets for a total gross
cash consideration of USD 24.81 million (CAD 33.50 million) before
customary closing adjustments.
The Royalty Disposition, involving most of the
Company's royalty assets, but not its core Simonette Royalty,
translated to 6.9 times 2024 forecasted cash flow and approximately
USD 63,960 per flowing boe/d, which represents a significant
premium to the Company's current market valuations.
The proceeds of the Royalty Disposition fully
eliminated i3's outstanding bank indebtedness and established a
working capital surplus without materially impacting its working
interest production base; which, together with forecasted cash
flows and undrawn credit facility, provides the Company with
significant liquidity to execute its growth and income
strategies.
Partial Sale
of Hangingstone
Post quarter-end, i3 Energy Closed a
disposition encompassing most of its position in the Company's
non-core, non-operated, shallow dry gas focussed Northern Alberta
Hangingstone asset, for realized proceeds of USD 0.3 million. The
sub-economic asset produced net 115 boepd for the month of February
2024 and is forecast to return negative cash flows for the 12-month
period of March 2024 to February 2025, based on strip pricing. The
sale of these non-core assets is highly accretive to the Company's
Asset Retirement Obligations ("ARO") standing, further reducing the
Company's total ARO by USD 1.2 million.
Outlook
Following the Company's recent USD 24.8 million
partial sale of its royalty assets, the elimination of all bank
indebtedness and the establishment of a USD 55.6 million
reserve-based credit facility, i3 is well positioned to execute its
USD 50.9 million 2024 capital programme. The programme will be
fully funded from existing Company resources and is designed to
balance growth, financial discipline, and a sustainable long
term-dividend through a predictable development-focused programme,
all while positioning the Company to commence its Simonette Montney
pad development drilling in Q1 2025.
The Company has an ongoing campaign of scouting,
surveying and acquiring key surface locations to ensure a large
inventory of drillable oil and gas locations, allowing it to pivot
operationally to respond to commodity price movements and
operational risks, as they occur.
The capital programme will be focused on the
second half of the year, with 85% of the capital deployed over the
balance of 2024. As such, the 2024 programme anticipates drilling
operations will commence in late Q2, with continuous operations
through to year-end. Should it be the case that the forward strip
forecast for commodity prices deviates from the Company's budgeted
projections, the Company is well positioned to both reallocate its
drilling locations to optimize economic returns or capitalize on
strategic accretive acquisitions as they are identified.
The Company is extremely pleased with recent
objectives completed and is excited to have realized increased
liquidity on its balance sheet which, combined with stable cash
flows, can be used to support both its organic and inorganic
initiatives during the remainder of 2024.
The Company is pleased to present a snapshot of
our Q1 2024 financial results below. i3's unaudited condensed
interim financial statements for the three months ended 31 March
2024 and related Management's Discussion and Analysis ("MD&A")
are available on i3 Energy's website at https://i3.energy/ and filed on
SEDAR+.
Financial
Statements
Condensed Consolidated
Statement of Comprehensive Income
|
|
Three-months Ended 31 March
2024
|
Three-months Ended
31 March
2023
|
|
|
£'000
(unaudited)
|
£'000
(unaudited)
|
Revenue
|
|
31,408
|
43,452
|
Production
costs
|
|
(18,790)
|
(18,490)
|
(Loss) /
gain on risk management contracts
|
|
(3,083)
|
2,956
|
Depreciation and depletion
|
|
(8,633)
|
(10,708)
|
Gross
profit
|
|
902
|
17,210
|
Administrative expenses
|
|
(2,851)
|
(2,332)
|
Operating (loss) /
profit
|
|
(1,949)
|
14,878
|
Finance
income
|
|
216
|
129
|
Finance
costs
|
|
(2,165)
|
(2,370)
|
(Loss) / profit before
tax
|
|
(3,898)
|
12,637
|
Tax
charge
|
|
(2,196)
|
(2,421)
|
(Loss) / profit for the
period
|
|
(6,094)
|
10,216
|
|
|
|
|
Other comprehensive
loss:
|
|
|
|
|
|
|
|
Items that may be
reclassified subsequently to profit or loss:
|
|
|
|
Foreign
exchange differences on translation of foreign
operations
|
|
(2,470)
|
(3,828)
|
Other comprehensive loss for
the period, net of tax
|
|
(2,470)
|
(3,828)
|
|
|
|
|
Total comprehensive (loss) /
income for the period
|
|
(8,564)
|
6,388
|
|
|
|
|
Earnings per
share
|
|
Pence
|
Pence
|
(Loss) /
earnings per share - basic
|
|
(0.51)
|
0.86
|
(Loss) /
earnings per share - diluted
|
|
(0.51)
|
0.84
|
|
|
|
|
Condensed Consolidated
Statement of Financial Position
|
|
31 March
2024
|
31
December 2023
|
|
|
£'000
(unaudited)
|
£'000
(audited)
|
Non-current
assets
|
|
|
|
Property,
plant & equipment
|
|
190,577
|
205,667
|
Exploration
and evaluation assets
|
|
63,309
|
63,133
|
Total non-current
assets
|
|
253,886
|
268,800
|
Current
assets
|
|
|
|
Cash and
cash equivalents
|
|
1,022
|
23,507
|
Trade and
other receivables
|
|
20,834
|
20,534
|
Income
taxes receivable
|
|
343
|
205
|
Risk
management contracts
|
|
1,048
|
1,701
|
Inventory
|
|
1,857
|
1,847
|
Total current
assets
|
|
25,104
|
47,794
|
Current
liabilities
|
|
|
|
Trade and
other payables
|
|
(27,667)
|
(27,640)
|
Risk
management contracts
|
|
(2,637)
|
(136)
|
Borrowings
and leases
|
|
(113)
|
(14,001)
|
Decommissioning provision
|
|
(3,823)
|
(3,244)
|
Total current
liabilities
|
|
(34,240)
|
(45,021)
|
Net current (liabilities) /
assets
|
|
(9,137)
|
2,773
|
Non-current
liabilities
|
|
|
|
Borrowings
and leases
|
|
(10,843)
|
(20,568)
|
Decommissioning provision
|
|
(71,569)
|
(78,109)
|
Deferred
tax liability
|
|
(10,593)
|
(9,817)
|
Other
non-current liabilities
|
|
(207)
|
(84)
|
Total non-current
liabilities
|
|
(93,212)
|
(108,578)
|
|
|
|
|
Net assets
|
|
151,538
|
162,995
|
Capital and
reserves
|
|
|
|
Ordinary
shares
|
|
120
|
120
|
Deferred
shares
|
|
50
|
50
|
Share
premium
|
|
-
|
-
|
Share-based
payment reserve
|
|
7,083
|
6,892
|
Foreign
currency translation reserve
|
|
1,360
|
3,830
|
Retained
earnings
|
|
142,925
|
152,103
|
Shareholders'
funds
|
|
151,538
|
162,995
|
Condensed Consolidated
Statement of Cash Flow
|
|
Three-months
Ended
31 March
2024
|
Three-months Ended
31 March
2023
|
OPERATING
ACTIVITIES
|
|
£'000
(unaudited)
|
£'000
(unaudited)
|
(Loss) /
profit before tax
|
|
(3,898)
|
12,637
|
Adjustments
for:
|
|
|
|
Depreciation and depletion
|
|
8,633
|
10,708
|
Finance
costs
|
|
2,165
|
2,370
|
Unrealised
loss on risk management contracts
|
|
3,126
|
843
|
Unrealised
FX loss / (gain)
|
|
19
|
(14)
|
Share-based
payments expense - employees (including NEDs)
|
|
191
|
141
|
Expenditure
on decommissioning oil and gas assets
|
|
(543)
|
(968)
|
Current tax
expense
|
|
(1,255)
|
(4,609)
|
Changes in
non-cash working capital - operating activities
|
|
5,078
|
-
|
Net cash from operating
activities
|
|
13,516
|
21,108
|
INVESTING
ACTIVITIES
|
|
|
|
Acquisitions
|
|
-
|
(13)
|
Additions
to property, plant & equipment
|
|
(1,418)
|
(11,951)
|
Disposal of
property, plant & equipment
|
|
-
|
-
|
Additions
to exploration and evaluation assets
|
|
(299)
|
(1,027)
|
Tax credit
for R&D expenditure
|
|
-
|
184
|
Changes in
non-cash working capital - investing activities
|
|
(5,376)
|
(5,575)
|
Net cash used in investing
activities
|
|
(7,093)
|
(18,382)
|
FINANCING
ACTIVITIES
|
|
|
|
Exercise of
warrants and options
|
|
-
|
13
|
Repayment
of Debt Facility
|
|
(35,272)
|
-
|
Net draw on
Credit Facility
|
|
12,024
|
-
|
Payment of
deferred finance costs
|
|
(1,273)
|
-
|
Interest
and other finance charges paid
|
|
(856)
|
(649)
|
Lease
payments
|
|
(30)
|
-
|
Dividends
declared
|
|
(3,084)
|
(6,120)
|
Changes in
non-cash working capital - financing activities
|
|
-
|
67
|
Net cash used in financing
activities
|
|
(28,491)
|
(6,689)
|
Effect of
exchange rate changes on cash
|
|
(417)
|
-
|
Net Decrease in cash and cash
equivalents
|
|
(22,485)
|
(3,963)
|
Cash and
cash equivalents, beginning of period
|
|
23,507
|
16,560
|
CASH AND CASH EQUIVALENTS,
END OF PERIOD
|
|
1,022
|
12,597
|
NoTE 1: Alternate performance
measures
The Group uses Alternate Performance Measures
("APMs"), commonly referred to as non-IFRS measures, when assessing
and discussing the Group's financial performance and financial
position. APMs are not defined under IFRS and are not considered to
be a substitute for or superior to IFRS measures. Other companies
may not calculate similarly defined or described measures, and
therefore their comparability may be limited. The Group continually
monitors the selection and definitions of its APMs, which may
change in future reporting periods. All USD figures were derived
from the Group's GBP figures, which is the Group's IFRS
presentation currency, and may differ from IFRS figures prepared
using USD as their presentation currency.
EBITDA and Adjusted EBITDA
EBITDA is defined as earnings before
depreciation and depletion, financial costs, and tax. Adjusted
EBITDA is defined as EBITDA before gain on bargain purchase and
acquisition costs. Management believes that EBITDA provides useful
information into the operating performance of the Group, is
commonly used within the oil and gas sector, and assists our
management and investors by increasing comparability from period to
period. Adjusted EBITDA removes the gain or loss on bargain
purchase and asset dispositions and the related acquisition costs
which management does not consider to be representative of the
underlying operations of the Group.
A reconciliation of profit as reported under
IFRS to EBITDA and Adjusted EBITDA is provided below.
|
Three-months Ended 31 March
2024
£'000
|
Three-months Ended 31 March 2023
£'000
|
(Loss) / Profit for the
period
|
(6,094)
|
10,216
|
Depreciation and
depletion
|
8,633
|
10,708
|
Finance costs
|
2,165
|
2,370
|
Tax
|
2,196
|
2,421
|
EBITDA
|
6,900
|
25,715
|
Acquisition costs
|
-
|
-
|
Loss / (gain) on bargain purchase
and asset dispositions
|
-
|
-
|
Adjusted EBITDA
|
6,900
|
25,715
|
Adjusted EBITDA presented in USD
(i)
|
8,749
|
31,249
|
(i) Amounts
converted at the period-average GBP:USD exchange rates of 1.2680
and 1.2152 for the 2024 and 2023 periods, respectively.
Net operating income
Net operating income is defined as gross profit
before depreciation and depletion, gains or losses on risk
management contracts, and other operating income, which equals
revenue from the sale of oil and gas and processing income, less
production costs. Management believes that net operating income is
a useful supplementary measure as it provides investors with
information on operating margins before non-cash depreciation and
depletion charges and gains or losses on risk management
contracts.
A reconciliation of gross profit as reported
under IFRS to net operating income is provided below.
|
Three-months Ended 31 March
2024
£'000
|
Three-months Ended 31 March 2023
£'000
|
Gross profit
|
902
|
17,210
|
Depreciation and
depletion
|
8,633
|
10,708
|
Loss / (gain) on risk management
contracts
|
3,083
|
(2,956)
|
Other operating income
|
(30)
|
(107)
|
Net
operating income
|
12,588
|
24,855
|
Net
operating income presented in USD (i)
|
15,962
|
30,204
|
(i) Amounts
converted at the period-average GBP:USD exchange rates of 1.2680
and 1.2152 for the 2024 and 2023 periods, respectively.
Acquisitions & Capex
Acquisitions & Capex is defined as cash
expenditures on acquisitions, PP&E, and E&E. Management
believes that Acquisition & Capex is a useful supplementary
measure as it provides investors with information on cash capital
investment during the period.
A reconciliation of the various line items per
the statement of cash flow to Acquisitions & Capex is provided
below.
|
Three-months Ended 31 March
2024
£'000
|
Three-months Ended 31 March 2023
£'000
|
Acquisitions
|
-
|
13
|
Expenditures on property, plant
& equipment
|
1,418
|
11,951
|
Expenditures on exploration and
evaluation assets
|
299
|
1,027
|
Acquisitions & Capex
|
1,717
|
12,991
|
Acquisitions & Capex presented in USD
(i)
|
2,177
|
15,787
|
(i) Amounts
converted at the period-average GBP:USD exchange rates of 1.2680
and 1.2152 for the 2024 and 2023 periods, respectively.
Free cash flow (FCF)
FCF is defined as cash from / (used in)
operating activities less cash capital expenditures on PP&E and
E&E. Management believes that FCF provides useful information
to management and investors about the Group's ability to pay
dividends.
A reconciliation of cash from / (used in)
operating activities to FCF is provided below.
|
Three-months Ended 31 March
2024
£'000
|
Three-months Ended 31 March 2023
£'000
|
Net cash from operating
activities
|
13,516
|
21,109
|
Expenditures on property, plant
& equipment
|
(1,418)
|
(11,951)
|
Expenditures on exploration and
evaluation assets
|
(299)
|
(1,027)
|
FCF
|
11,799
|
8,131
|
FCF
presented in USD (i)
|
14,961
|
9,881
|
(i) Amounts
converted at the period-average GBP:USD exchange rates of 1.2680
and 1.2152 for the 2024 and 2023 periods, respectively.
Net debt
Net debt is defined as borrowings and leases and
trade and other payables, less cash and cash equivalents and trade
and other receivables. This definition was expanded in 2023 to
include other non-current liabilities which is a new account
balance that arose during the year. Management believes that net
debt is a meaningful measure to monitor the liquidity position of
the Group.
A reconciliation of the various line items per
the statement of financial position to net debt is provided
below.
|
31 March
2024
£'000
|
31
December 2023
£'000
|
Borrowings and leases
|
10,956
|
34,569
|
Trade and other payables
|
27,667
|
27,640
|
Other non-current
liabilities
|
207
|
84
|
Income taxes (receivable) /
payable
|
(343)
|
(205)
|
Cash and cash equivalents
|
(1,022)
|
(23,507)
|
Trade and other
receivables
|
(20,834)
|
(20,534)
|
Net
debt
|
16,631
|
18,047
|
Net
debt presented in USD (ii)
|
21,008
|
23,005
|
(ii) Amounts converted
at the period-end GBP:USD exchange rates of 1.2632 and 1.2747 for
the 2024 and 2023 periods, respectively.
END
Qualified Person's
Statement
In accordance with the AIM Note for Mining and
Oil and Gas Companies, i3 discloses that Majid Shafiq is the
qualified person who has reviewed the technical information
contained in this document. He has a Master's Degree in Petroleum
Engineering from Heriot-Watt University and is a member of the
Society of Petroleum Engineers. Majid Shafiq consents to the
inclusion of the information in the form and context in which it
appears.
Enquiries:
i3
Energy plc
Majid Shafiq (CEO)
|
c/o Camarco
Tel: +44 (0) 203 757 4980
|
|
|
WH
Ireland Limited (Nomad and Joint Broker)
James Joyce, Darshan Patel
|
Tel: +44 (0) 207 220 1666
|
|
|
Tennyson Securities (Joint Broker)
Peter Krens
|
Tel: +44 (0) 207 186 9030
|
|
|
Stifel Nicolaus Europe Limited (Joint
Broker)
Ashton Clanfield, Callum
Stewart
|
Tel: +44 (0) 20 7710 7600
|
|
|
Camarco
Andrew Turner, Violet Wilson, Sam
Morris
|
Tel: +44 (0) 203 757 4980
|
Notes to Editors:
i3 Energy is an oil and gas Company
with a low cost, diversified, growing production base in
Canada's most prolific
hydrocarbon region, the Western Canadian Sedimentary Basin and
appraisal assets in the North Sea with significant
upside.
The Company is well positioned to
deliver future growth through the optimisation of its existing
asset base and the acquisition of long life, low decline
conventional production assets.
i3 is dedicated to responsible
corporate practices and the environment, and places high value on
adhering to strong Environmental, Social and Governance
("ESG") practices. i3 is proud of its performance
to date as a responsible steward of the environment,
people, and capital
management. The Company is committed to maintaining an ESG strategy, which
has broader implications to long-term value creation, as these
benefits extend beyond regulatory requirements.
i3 Energy is listed on the AIM
market of the London Stock Exchange under the symbol I3E and on the
Toronto Stock Exchange under the symbol ITE. For further
information on i3 Energy please
visit https://i3.energy
This announcement contains inside
information for the purposes of Article 7 of the UK version of
Regulation (EU) No 596/2014 which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
Forward-Looking Statements
This press release offers our
assessment of i3's future plans and operations as at the time
of dissemination and contains certain forward-looking information
and statements within the meaning of applicable securities laws.
The use of any of the words "anticipate", "continue", "estimate",
"expect", "forecast", "may", "will", "project", "should", "plan",
"intend", "believe" and similar expressions (including the
negatives thereof) are intended to identify forward looking
information or statements.
The forward-looking information and
statements included in this news release are not guarantees of
future performance and should not be unduly relied upon. Such
information and statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking information or statements including, without
limitation: those relating to results of operations and financial
condition; general economic conditions; industry conditions;
changes in regulatory and taxation regimes; volatility of commodity
prices; escalation of operating and capital costs; currency
fluctuations; the availability of services; imprecision of reserve
estimates; geological, technical, drilling and processing problems;
environmental risks; weather; the lack of availability of qualified
personnel or management; stock market volatility; the ability to
access sufficient capital from internal and external sources; and
competition from other industry participants for, among other
things, capital, services, acquisitions of reserves, undeveloped
lands and skilled personnel. Risks are described in more detail in
our Financial Review, which is available on www.i3.energy and on www.sedarplus.ca. Forward-looking statements are provided to allow investors to
have a greater understanding of our business.
You are cautioned that the
assumptions used in the preparation of such information and
statements, including, among other things: future oil and natural
gas prices; future capital expenditure levels; future production
levels; future exchange rates; the cost of developing and expanding
our assets; our ability to obtain equipment in a timely manner to
carry out development activities; our ability to fund future
dividends; our ability to market our oil and natural gas
successfully to current and new customers; the impact of increasing
competition; the availability of adequate and acceptable debt and
equity financing and funds from operations to fund our planned
expenditures; and our ability to add production and reserves
through our development and acquisition activities, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
forward-looking statements. Our actual results, performance, or
achievement could differ materially from those expressed in, or
implied by, these forward-looking statements. We can give no
assurance that any of the events anticipated will transpire or
occur, or if any of them do, what benefits we will derive from
them. The forward-looking information and statements contained in
this document is expressly qualified by this cautionary statement.
Our policy for updating forward-looking statements is that i3
disclaims, except as required by law, any intention or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Non-IFRS Financial Measures
i3 uses the following terms for
measurement within this press release that do not have a
standardized prescribed meaning under International Financial
Reporting Standards ("IFRS") and these measurements may not be
comparable with the calculation of similar measurements of other
entities. The Company refers to these as Non-IFRS Measures or
Alternate Performance Measures ("APMs"). APMs are not defined under
IFRS and are not considered to be a substitute for or superior to
IFRS measures. Other companies may not calculate similarly defined
or described measures, and therefore their comparability may be
limited. The Company continually monitors the selection and
definitions of its APMs, which may change in future reporting
periods. Refer to Note 1 Alternative Performance Measures for
further discussion.
51-101 Advisory
In conformity with National
Instrument 51-101, Standards for Disclosure of Oil and Gas
Activities ("NI 51-101"), natural gas volumes have been converted
to barrels of oil equivalent ("boe") using a conversion rate of six
thousand cubic feet of natural gas to one barrel of oil. In certain
circumstances, natural gas liquid volumes have been converted to a
thousand cubic feet equivalent ("mcfe") on the basis of one barrel
of natural gas liquids to six thousand cubic feet of gas. Boes and
mcfes may be misleading, particularly if used in isolation. A
conversion ratio of one barrel to six thousand cubic feet of
natural gas 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 from the energy equivalency of 6:1,
utilizing a conversion ratio on a 6:1 basis may be misleading as an
indication of value.