CALGARY,
AB, May 12, 2022 /CNW/ - Kiwetinohk Energy
Corp. (TSX: KEC) today announced its first quarter 2022 results,
including record quarterly adjusted funds flow from operations
1 of $37.0 million and
average quarterly production of 13,253 boe/d, ahead of previously
communicated guidance and above the Company's Q1 2022 budget and
plan. Given strong Fox Creek
production during the first quarter, Kiwetinohk has increased its
2022 annual production guidance by 500 boe/d to 13,500-15,500
boe/d.
Kiwetinohk also significantly advanced its Green Energy division
projects, applying to Alberta
regulators for approval of the 400MW Solar 1 (Homestead) and 101MW
Firm Renewable 1 (Opal) projects.
"Kiwetinohk delivered in this first quarter, successfully
reversing the production declines inherited with the 2021 Simonette
and Placid asset acquisitions and kicking off a new growth phase in
Fox Creek," said CEO Pat Carlson.
"We're on track to deliver strong upstream growth while hitting
key milestones in our build out of low-carbon and zero-carbon power
projects -- a portfolio approach that's the foundation of our
energy transition strategy."
YTD 2022 Highlights
Upstream
- Sales volumes averaged 13,253 boe/d in Q1, exceeding production
guidance of 12,000-13,000 boe/d, due to strong performance from
base operations and bringing new wells onstream ahead of
schedule.
- Recent weekly production averaging 16,500 boe/d as new wells
came on-line.
- Record quarterly adjusted funds flow from
operations1 of $37.0
million.
- Operating netbacks1 up $4.91/boe from Q4/21 to $46.11/boe in Q1/22.
- Two Simonette wells drilled in Q4/21 completed and brought
on-stream.
- Two additional Simonette wells drilled on time and on budget in
Q1 are in the final stages of completion and expected to be
onstream ahead of plan in the coming weeks.
- Started drilling a new Simonette four-well pad with targeted
completion mid-year.
- Two Placid wells completed on time and on budget; initial flow
back underway.
- Capital spending totaled $54.2
million, predominately on development at Fox Creek.
- Net commodity sales from purchases 2 of natural gas
in Q1 of $0.6 million.
- Completed non-core land sales for aggregate proceeds of
$4.1 million in March and April.
|
_____________________
|
1
|
Non-GAAP measure that
does not have any standardized meaning under IFRS and therefore may
not be comparable to similar measures presented by other entities.
Please refer to the Company's MD&A as at and for the three
months ended March 31, 2022 under the section "Non-GAAP Measures"
available on Kiwetinohk's SEDAR profile at www.sedar.com
|
Green Energy
- Received Alberta Environment and Parks (AEP) referral letter
for the 400 MW Homestead Solar Energy Project (Solar 1) concluding
the project is low risk to wildlife and wildlife habitat.
- Submitted an AEP industrial application and Alberta Utilities
Commission (AUC) power plant and substation application on
March 31 and April 5 respectively, for the 101 MW Opal Power
Plant Project (Firm Renewable 1).
- Submitted an AUC power plant and substation application for
Project Homestead on April 27.
Financial Capacity
- Available credit facility capacity2 at March 31, 2022 was $237.7
million.
- Filed a short-form base shelf prospectus to provide financing
flexibility and additional options for quicker access to public
equity and/or debt markets up to $500
million.
- Net debt to annualized adjusted funds flow from
operations2 remained well within the Company's target
range of 1.0x at 0.66x during the quarter.
- Secured an additional $15 million
of letter of credit facility capacity that is supported by a
performance security guarantee from Export Development Canada.
|
___________________
|
2
|
Non-GAAP measure that
does not have any standardized meaning under IFRS and therefore may
not be comparable to similar measures presented by other entities.
Please refer to the Company's MD&A as at and for the three
months ended March 31, 2022 under the section "Non-GAAP Measures"
available on Kiwetinohk's SEDAR profile at www.sedar.com
|
Financial and operating
results
|
|
|
Q1
2022
|
Q4
2021
|
Q1
2021
|
Production
|
|
|
|
|
|
Condensate (bbl/d)
|
|
|
3,475
|
3,092
|
77
|
Light oil (bbl/d)
|
|
|
876
|
844
|
344
|
Heavy oil (bbl/d)
|
|
|
13
|
13
|
33
|
NGLs (bbl/d)
|
|
|
1,561
|
1,572
|
92
|
Natural gas (Mcf/d)
|
|
|
43,970
|
41,410
|
1,169
|
Total (boe/d)
|
|
|
13,253
|
12,442
|
741
|
Oil
and condensate % of production
|
|
|
33%
|
32%
|
61%
|
NGL
% of production
|
|
|
12%
|
13%
|
13%
|
Natural gas % of production
|
|
|
55%
|
55%
|
26%
|
Realized
prices
|
|
|
|
|
|
Condensate ($/bbl)
|
|
|
115.77
|
99.21
|
77.96
|
Light oil ($/bbl))
|
|
|
115.85
|
92.29
|
65.23
|
Heavy oil ($/bbl)
|
|
|
85.83
|
81.60
|
48.28
|
NGLs ($/bbl)
|
|
|
66.03
|
65.61
|
24.41
|
Natural gas ($/Mcf)
|
|
|
6.35
|
6.64
|
3.19
|
Total ($/boe)
|
|
|
66.96
|
61.48
|
48.62
|
Royalty recovery (expense)
($/boe)
|
|
|
(6.74)
|
(6.80)
|
(3.19)
|
Operating expenses ($/boe)
|
|
|
(9.56)
|
(8.28)
|
(8.80)
|
Transportation expenses ($/boe)
|
|
|
(4.55)
|
(5.20)
|
(0.71)
|
Operating netback 1 ($/boe)
|
|
|
46.11
|
41.20
|
35.92
|
Net
commodity sales from purchases ($/boe) 1
|
|
|
0.50
|
2.50
|
-
|
Realized loss on risk management contracts ($/boe)
3
|
|
|
(11.09)
|
(11.86)
|
-
|
Adjusted operating netback 1
|
|
|
35.52
|
31.84
|
35.92
|
Financial
results ($000s, except per share amounts)
|
|
|
|
|
|
Commodity sales from production
|
|
|
79,866
|
70,267
|
3,242
|
Net
commodity sales from purchases (loss) 1
|
|
|
596
|
2,854
|
-
|
Cash flow from (used in) operating activities
|
|
|
25,332
|
25,518
|
(3,579)
|
Adjusted funds flow from (used in) operations
1
|
|
|
37,002
|
30,763
|
(3,313)
|
Per share basic
2
|
|
|
0.84
|
0.71
|
(0.17)
|
Per share diluted
2
|
|
|
0.84
|
0.71
|
(0.17)
|
Net
debt to annualized adjusted funds flow from operations
1
|
|
|
0.66
|
0.74
|
2.28
|
Free funds flow (deficiency) from operations
1
|
|
|
(17,210)
|
(1,195)
|
(3,631)
|
Net
income (loss)
|
|
|
(24,552)
|
44,306
|
(46,267)
|
Per share basic
2
|
|
|
(0.56)
|
1.02
|
(2.43)
|
Per share diluted
2
|
|
|
(0.56)
|
1.02
|
(2.43)
|
Capital expenditures prior to
acquisitions/(dispositions)
|
|
|
54,212
|
31,958
|
318
|
Acquisitions (dispositions)
|
|
|
(238)
|
-
|
7,500
|
Total capital expenditures
|
|
|
53,974
|
31,958
|
7,818
|
Balance sheet
($000s, except share amounts)
|
|
|
|
|
|
Total assets
|
|
|
662,245
|
614,337
|
140,216
|
Long-term liabilities
|
|
|
145,549
|
124,587
|
3,173
|
Net
debt (surplus) 1
|
|
|
73,521
|
51,512
|
(9,698)
|
Adjusted working capital deficit (surplus)
1
|
|
|
21,466
|
18,644
|
(54,400)
|
Weighted average shares outstanding 2
|
|
|
|
|
|
Basic and diluted
|
|
|
43,815,340
|
43,622,942
|
19,006,112
|
Shares outstanding end
of period
|
|
|
44,042,515
|
43,674,583
|
19,696,633
|
1
|
– Non-GAAP measure that
does not have any standardized meaning under IFRS and therefore may
not be comparable to similar measures presented by other entities.
Please refer to the Company's MD&A as at and for the three
months ended March 31, 2022 under the section "Non-GAAP Measures"
available on Kiwetinohk's SEDAR profile at www.sedar.com
|
2
|
– Per share amounts are
based on weighted average basic and diluted shares,
respectively.
|
3
|
– Realized loss on risk
management contracts includes settlement of hedges on physical
production and natural gas purchases.
|
Guidance &
sensitivities
As a result of strong year-to-date results, Kiwetinohk is
increasing 2022 annual production guidance by 500 boe/d at the high
end of previous guidance. Kiwetinohk's Green Energy business
also updated its 2022 capital plan to $15
million to $20 million (from a
prior range of $10 million to
$20 million), as the Company
continues to advance efforts on acquiring early-stage development
projects to expand its Green Energy portfolio. The spending will
help advance Kiwetinohk's suite of low-carbon and zero-carbon power
projects through planning, regulatory approvals, engineering and
design, and financing.
The following table sets forth Kiwetinohk's revised and previous
adjusted funds flow from operations, net debt to adjusted funds
flow from operations, capital expenditures and production guidance
for 2022:
Operational &
financial guidance
|
|
|
Revised
|
|
Original
|
|
|
|
May
2022
|
|
March
2022
|
Production (2022
average) 1
|
Mboe/d
|
|
13.5 -
15.5
|
|
13.0 - 15.0
|
Oil &
liquids
|
Mbbl/d
|
|
6.75 -
7.75
|
|
6.50 - 7.50
|
Natural
gas
|
MMcf/d
|
|
40.5 -
46.5
|
|
39.0 - 45.0
|
Production by market
2
|
%
|
|
100%
|
Chicago
|
%
|
|
80% -
85%
|
|
87% - 97%
|
AECO
|
%
|
|
15% -
20%
|
|
3% - 13%
|
Financial
|
|
|
|
|
|
Royalty rate
(Crown)
|
%
|
|
12% - 15%
|
Operating costs
1
|
$/boe
|
|
$7.50 -
$8.50
|
Transportation
|
$/boe
|
|
$5.00 -
$6.00
|
Corporate G&A
expense 3
|
$MM
|
|
$15 - $18
|
Cash Taxes
|
$MM
|
|
$0
|
Capital
guidance
|
$MM
|
|
215 -
240
|
|
210 -
240
|
Upstream
|
$MM
|
|
200 - 220
|
Green
Energy
|
$MM
|
|
15
-20
|
|
10 - 20
|
Drilling - Fox
Creek
|
wells
|
|
11
|
Duvernay
|
wells
|
|
|
Montney
|
wells
|
|
1
|
Sensitivities
|
|
|
|
|
|
Adjusted Funds Flow
from Operations 4, 5, 6
|
|
|
|
|
US$70/bbl
WTI & US$3.75/MMBtu HH
|
$MM
|
|
$165 -
$175
|
|
$145 - $155
|
US$80/bbl
WTI & US$4.25/MMBtu HH
|
$MM
|
|
$180 -
$190
|
|
$165 - $175
|
Net debt to Adjusted
Funds Flow from Operations 4, 5, 6
|
|
|
US$70/bbl
WTI & US$3.75/MMBtu HH
|
X
|
|
0.7x
|
|
1.0x
|
US$80/bbl
WTI & US$4.25/MMBtu HH
|
X
|
|
0.6x
|
|
0.7x
|
1
|
– Production and cash
operating costs include a provision for scheduled Fox Creek plant
turnarounds.
|
2
|
– AECO sales
year-to-date were higher than forecast due to timing of the
Bigstone Alliance meter reactivation. AECO/Chicago split of
~8-13% expected for rest of year.
|
3
|
– Includes all cash
G&A expenses for all divisions of the Company – Corporate,
Upstream, Green Energy (power & hydrogen) and Business
Development.
|
4
|
– Non-GAAP measure that
does not have any standardized meaning under IFRS and therefore may
not be comparable to similar measures presented by other entities.
Please refer to the Company's MD&A as at and for the three
months ended March 31, 2022 under the section "Non-GAAP Measures"
available on Kiwetinohk's SEDAR profile at www.sedar.com
|
5
|
– Q1/22 actual prices
with US$70/Bbl WTI flat; US$3.75/MMBtu HH flat; US$0.79/CAD flat
thereafter for remainder of 2022 and full year 2023.
|
6
|
– Q1/22 actual prices
with US$80/Bbl WTI flat; US$4.25/MMBtu HH flat; US$0.81/CAD flat
thereafter for remainder of 2022 and full year 2023.
|
Upstream operational
update
Strong performance from existing assets and the acceleration of
two wells at Placid delivered Q1 production averaging 13,253 boe/d,
above the 12,000-13,000 boe/d target. Recent weekly production
averaged 16,500 boe/d as new wells came on-line, prior to two
upcoming completions.
Significant activity is underway at Simonette (Duvernay) where the majority of the 2022
development program is focused. Two wells drilled in late 2021 to
total depths of more than 8,000 meters are both on production. Next
week, two additional wells that were recently completed will also
contribute at Simonette. This is helping to fill spare capacity at
the Simonette plants, contributing to go-forward improvement in
operating costs. Four additional wells on a single pad are
currently being drilled and are progressing on schedule.
Drilling should be completed before the end of June, with
completions to follow shortly thereafter.
At Placid (Montney), the two
wells drilled in late 2021 were completed in the first quarter of
this year on budget. These wells were brought on-stream at the
end of the quarter, ahead of schedule.
Overall, strong base production, coupled with the early
on-stream dates for some of the wells has supported the decision to
increase our annual production guidance. In the current commodity
price environment, encouraged by strong performance on the program
to date, management continues to look for further opportunities to
accelerate production growth.
Since the beginning of the program, learnings have been
incorporated and rig and crew performance continue to improve,
resulting in acceleration of well spud to onstream production and
improved cost performance. This has offset some of the
inflationary pressure that we are seeing in the oil field service
industry as we continue to actively plan and manage our drilling
and completion program.
Green Energy development
update
Kiwetinohk continues to make significant progress in the
development and permitting of its 1,800 MW solar and gas-fired
power portfolio. The Company submitted an AUC power plant and
substation application for the 400 MW Homestead Solar Energy
Project on April 27 following
stakeholder consultation and an AEP referral letter concluding the
project is low risk to wildlife and wildlife habitat.
Kiwetinohk submitted an AEP industrial application and AUC power
plant and substation application on March
31 and April 5 respectively,
for the 101 MW Opal Firm Renewable Project.
Kiwetinohk continues to progress development of its NGCC 1 and
NGCC 2 projects with pre-FEED analysis, Carbon Capture, Utilization
and Storage (CCUS) evaluation and preliminary environmental scoping
underway.
As part of the Company's evaluation of financing alternatives
for its power portfolio, Kiwetinohk has advanced discussions with
several potential partners interested in acquiring project-level
equity interests.
Existing project schedules remain unchanged with the 400 MW
Homestead Solar Energy Project and the 101 MW Opal Firm Renewable
Project both expected to reach FIDs by year end.
Early-stage Green Energy
development, design factors and the status
|
Homestead
(Solar 1)
|
Solar
2
|
Opal
(Firm
Renewable 1)
|
NGCC
1
|
NGCC
2
|
Nameplate/Net
to Grid Capacity
|
400 MW
|
300 MW
|
101 MW
97 MW
|
500 MW
460 MW
|
500MW
460 MW
|
AESO
Stage
|
2
|
1
|
2
|
2
|
2
|
Site
Control
|
Options
secured
|
Options
secured
|
Land acquisition in
progress
|
Options
secured
|
Land acquisition in
progress
|
Public
Consultation
|
Completed
|
Planning
underway
|
Completed
|
Planning
underway
|
Planning
underway
|
Regulatory /
Environmental
|
AEP referral letter
received; AUC power plant
application submitted in April 2022
|
AEP referral letter
received
|
AEP industrial application and AUC power plant
application submitted in March/April 2022
|
Environmental work
underway
|
Environmental work
underway
|
Engineering
|
Pre-FEED complete;
FEED near completion
|
BD complete
|
FEED
complete
|
BD complete;
Pre-FEED underway
|
BD complete; Pre-FEED
underway
|
Targeted
FID
|
Q3 2022
|
Q2 2023
|
Q4 2022
|
Q3 2024
|
Q4 2023
|
Targeted COD
4
|
Q4 2024
|
Q2 2025
|
Q4 2024
|
Q3 2027
|
Q4 2026
|
Total installed
capital cost ($
million) 1, 2, 3
|
$655
(Class 3)
|
$492
(Class 3)
|
$156
(Class 3)
|
$875
(Class 4)
|
$875
(Class 4)
|
1
|
– Total installed cost
estimates are classified in a manner consistent with American
Association of Cost Engineering (AACE) standards.
|
2
|
– Total installed cost
numbers exclude carbon capture and sequestration. CCUS costs are
estimated to be an incremental 60 to 80% of the total installed
cost based on an engineering study by Gas Liquids Engineering
(GLE).
|
3
|
– None of the Company's
planned power generation projects have a final design, performance
projection or cost estimate, or full regulatory approval or
internal or external funding. There is no assurance that the power
generation projects will proceed as described or at all.
|
4
|
– If a Final Investment
Decision (FID) decision is reached the Company will advance the
project towards an estimated Commercial Operations Date
(COD).
|
5
|
– The term "Firm
Renewable" is a Kiwetinohk-originated term that describes
efficient, flexible-output, fast-responding, gas-fired, internal
reciprocating engine-drive power generation that address the need
for stability that has been revealed as wind and solar renewable
power grows to become a more significant proportion of a grid's
power supply.
|
Sustainability update
Kiwetinohk continues to make significant progress advancing its
energy transition strategy, achieving key growth project milestones
in the low carbon natural gas and Green Energy business units, with
focus on optimizing emissions performance via targeted upstream
methane emission reductions, renewable energy and carbon management
strategies such as CCUS.
The Company also continues stakeholder engagement and filed
regulatory documents for the 400 MW Homestead Solar Energy Project,
a key future source of internally generated carbon offset
credits.
In Q1, Kiwetinohk advanced its ESG strategy, including
assessment of its asset retirement obligations with focus on the
inactive assets acquired in 2021 and planning for implementation of
an active asset retirement financial planning methodology.
Kiwetinohk's active asset retirement financial planning
methodology is designed to ensure proactive funding for assets
across their lifecycle through active phase funding for future
retirement, like a pension. This approach anticipates Alberta
Energy Regulator requirements for increased asset retirement
spending and demonstrates the Company's commitment to environmental
performance and maintaining financial resiliency through leadership
in end-of-life asset management.
Conference call
Management of Kiwetinohk will host a conference call on
May 13 at 7 AM
MT (9 AM ET) to discuss
results and to field questions.
Participants will be able to listen to the conference call by
dialing 1-866-575-6539 (North America toll free) or
1-647-794-4605 (Toronto and area). A recording will be
available for replay until May 19,
2022 by dialing 1-888-203-1112 and using the replay code
1990361.
About Kiwetinohk
We, at Kiwetinohk, are passionate about climate change and the
future of energy. Kiwetinohk's mission is to build a
profitable energy transition business providing clean, reliable,
dispatchable, low-cost energy. Kiwetinohk develops and
produces natural gas and related products and is in the process of
developing renewable power, natural gas-fired power, carbon capture
and hydrogen clean energy projects. We view climate change with a
sense of urgency, and we want to make a difference.
Kiwetinohk's common shares trade on the Toronto Stock Exchange
under the symbol KEC.
Additional details are available within the year-end documents
available on Kiwetinohk's website at www.kiwetinohk.com and SEDAR
at www.sedar.com.
Advisories
This press release is for informational purposes only and is not
intended to and does not constitute, or form any part of, an offer
to sell or the solicitation of an offer to subscribe for or buy or
an invitation to purchase or subscribe for any securities in any
jurisdiction, nor shall there be any sale or issuance of securities
in any jurisdiction in contravention of applicable law or
regulation. In particular, this press release is not an offer of
securities for sale in Canada or
the United States.
Oil and Gas Disclosure
The term "boe" may be misleading, particularly if used in
isolation. A boe conversion rate of six thousand cubic feet of
natural gas per barrel of oil (6 mcf:1 bbl) is based on an energy
equivalency conversion method primarily applicable at the burner
tip and do 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 an energy
equivalency of 6:1, utilizing a conversion ratio of 6:1 may be
misleading as an indication of value.
In this press release, "light oil" refers to light and medium
crude oil, "heavy oil" refers to heavy crude oil and "natural gas"
refers to conventional natural gas, in each case as defined in NI
51-101.
Forward looking information
Certain information set forth in this news release contains
forward-looking information and statements including, without
limitation, management's business strategy, management's assessment
of future plans and operations. Such forward-looking statements or
information are provided for the purpose of providing information
about management's current expectations and plans relating to the
future. Forward-looking statements or information typically contain
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "project", "potential" or similar
words suggesting future outcomes or statements regarding future
performance and outlook. Readers are cautioned that assumptions
used in the preparation of such information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted as a result of numerous
known and unknown risks, uncertainties and other factors, many of
which are beyond the control of the Company.
In particular, this news release contains forward-looking
statements pertaining to the following:
- the timing for completion and bringing certain wells
on-stream;
- the Company's operational, financial and capital guidance,
including production, funds flow from operations, net debt to
adjusted funds flow from operations, capital, royalty rates,
operating costs, transportation, taxes, general and administrative
expenses;
- the estimated single event fishing cost at Simonette;
- the timing for certain wells to commence flow back;
- the anticipated end date of certain drilling;
- the timing for the Company's solar and Firm Renewable projects
to reach FID;
- estimates of CCUS costs; and
- the final design, performance projection, cost estimate, full
regulatory approval, internal and external funding of the Company's
planned power generation projects.
In addition to other factors and assumptions that may be
identified in this news release, assumptions have been made
regarding, among other things:
- the timing and costs of the Company's capital projects,
including drilling and completion of certain wells;
- the impact of increasing competition;
- the general stability of the economic and political environment
in which the Company operates;
- general business, economic and market conditions;
- the ability of the Company to obtain qualified staff, equipment
and services in a timely and cost efficient manner;
- future commodity and power prices;
- currency, exchange and interest rates;
- the regulatory framework regarding royalties, taxes, power,
renewable and environmental matters in the jurisdictions in which
the Company operates;
- the ability of the Company to obtain the required capital to
finance its exploration, development and other operations and meet
its commitments and financial obligations;
- the ability of the Company to secure adequate product
processing, transportation, fractionation and storage capacity on
acceptable terms and the capacity and reliability of
facilities;
- the impact of the Covid-19 pandemic on the Company; and
- the ability of the Company to successfully market its
products.
Readers are cautioned that the foregoing list is not exhaustive
of all factors and assumptions that have been used. Although the
Company believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements as the
Company can give no assurance that such expectations will prove to
be correct.
Forward-looking statements or information involve a number of
risks and uncertainties that could cause actual results to differ
materially from those anticipated by the Company and described in
the forward-looking statements or information. These risks and
uncertainties include, among other things:
- those risks set out in the AIF under "Risk Factors";
- the ability of management to execute its business plan;
- general economic and business conditions;
- the risk of instability affecting the jurisdictions in which
the Company operates;
- the risks of the power and renewable industries;
- operational and construction risks associated with certain
projects;
- the possibility that government policies or laws may change or
governmental approvals may be delayed or withheld;
- risks relating to regulatory approvals and financing;
- uncertainty involving the forces that power certain renewable
projects;
- the Company's ability to enter into or renew leases;
- potential delays or changes in plans with respect to power and
solar projects or capital expenditures;
- risks associated with rising capital costs and timing of
project completion;
- fluctuations in commodity and power prices, foreign currency
exchange rates and interest rates;
- risks inherent in the Company's marketing operations, including
credit risk;
- health, safety, environmental and construction risks;
- risks associated with existing and potential future lawsuits
and regulatory actions against the Company;
- uncertainties as to the availability and cost of
financing;
- the ability to secure adequate processing, transportation,
fractionation and storage capacity on acceptable terms;
- processing, pipeline and fractionation infrastructure outages,
disruptions and constraints;
- financial risks affecting the value of the Company's
investments; and
- other risks and uncertainties described elsewhere in this
document and in Kiwetinohk's other filings with Canadian securities
authorities.
Readers are cautioned that the foregoing list is not exhaustive
of all possible risks and uncertainties.
The forward-looking statements and information contained in this
news release speak only as of the date of this news release and the
Company undertakes no obligation to publicly update or revise any
forward-looking statements or information, except as expressly
required by applicable securities laws.
Non-GAAP Measures
This news release contains measures that do not have a
standardized meaning under generally accepted accounting principles
("GAAP") and therefore may not be comparable to similar measures
presented by other entities. These performance measures
presented in this document should not be considered in isolation or
as a substitute for performance measures prepared in accordance
with GAAP and should be read in conjunction with the consolidated
financial statements of the Company. Readers are cautioned that
these non-GAAP measures do not have any standardized meanings and
should not be used to make comparisons between Kiwetinohk and other
companies without also taking into account any differences in the
method by which the calculations are prepared.
Please refer to the Company's MD&A as at and for the three
months ended March 31, 2022 under the
section "Non-GAAP Measures" for a description of these measures,
the reason for their use and a reconciliation to their closest GAAP
measure where applicable. The Corporation's MD&A is
available on Kiwetinohk's SEDAR profile at www.sedar.com
Future-Oriented Financial
Information
Financial outlook and future-oriented financial information
contained in this press release about prospective financial
performance, financial position or cash flows is based on
assumptions about future events, including economic conditions and
proposed courses of action, based on management's assessment of the
relevant information currently available. In particular, this press
release contains expected adjusted funds flow, return on capital
employed, capital costs of the Company's proposed power generation
capital projects, forecast economics of the Company's oil and gas
assets and 2022 financial outlook information for the Company,
including expected royalty rates, operating costs, transportation
expenses, corporate G&A expenses, cash taxes, adjusted funds
flow from (used in) operations, and net debt per adjusted funds
flow from (used in) operations. These projections contain
forward-looking statements and are based on a number of material
assumptions and factors set out above and are provided to give the
reader a better understanding of the potential future performance
of the Company in certain areas. Actual results may differ
significantly from the projections presented herein. These
projections may also be considered to contain future oriented
financial information or a financial outlook. The actual results of
the Company's operations for any period will likely vary from the
amounts set forth in these projections, and such variations may be
material. See "Risk Factors" in the Company's AIF published on the
Company's profile on SEDAR at www.sedar.com for a further
discussion of the risks that could cause actual results to vary.
The future oriented financial information and financial outlooks
contained in this press release have been approved by management as
of the date of this press release. Readers are cautioned that any
such financial outlook and future-oriented financial information
contained herein should not be used for purposes other than those
for which it is disclosed herein.
Abbreviations
$/bbl
|
dollars per
barrel
|
$/boe
|
dollars per barrel
equivalent
|
$MM
|
millions of
dollars
|
bbl/d
|
barrels per
day
|
boe
|
barrel of oil
equivalent, including crude oil, condensate, natural gas liquids,
and natural gas (converted on the basis of one boe per six mcf of
natural gas)
|
COD
|
Commercial operation
date
|
FEED
|
Front end engineering
and design
|
FID
|
Final investment
decision
|
HH
|
Henry Hub
|
Mbbl/d
|
millions of barrels per
day
|
Mboe/d
|
millions of barrels of
oil equivalent per day
|
Mcf/d
|
thousand cubic standard
feet per day
|
MMboe
|
million barrels of oil
equivalent
|
MMBtu
|
million British thermal
units
|
MMcf/d
|
million cubic feet per
day
|
MW
|
Mega watt
|
NGCC
|
Natural gas combined
cycle
|
WTI
|
West Texas
Intermediate
|
FOR MORE INFORMATION ON KIWETINOHK, PLEASE
CONTACT:
Mark
Friesen, Director, Investor Relations
IR phone: (587) 392-4395
IR email: IR@kiwetinohk.com
Address: Suite 1900, 250 - 2 Street S.W.
Calgary, Alberta T2P 0C1
Pat
Carlson, CEO
Jakub Brogowski, CFO
SOURCE Kiwetinohk Energy