Business
PetroTal Announces Q2 2021 Financial and Operating Results
PetroTal completes 8th producing well, increases water disposal capacity, and outperforms Q2 2...
About this update from Petrotal Corp.
[{"type":"text","content":"PetroTal Announces Q2 2021 Financial and Operating ResultsPetroTal completes 8th producing well, increases water disposal capacity, and outperforms Q2 2021 production guidance under restricted flow conditionsCalgary, Alberta and Houston, Texas--(Newsfile Corp. - August 26, 2021) - PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (\"PetroTal\" or the \"Company\") is pleased to announce its financial and operating results for the six (\"H1\") and three months (\"Q2\") ended June 30, 2021.Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements (\"Financial Statements\"), and management's discussion and analysis (\"MD&A\") for Q2 2021, which are available on SEDAR at www.sedar.com and on the Company's website at www.PetroTal‐Corp.com. All amounts herein are in United States dollars (\"USD\") unless otherwise stated.Highlights:Outperformed Q2 2021 production guidance by 2% and Q1 2021 production by 21%, delivering 8,839 bopd under constrained production conditions, as previously described in the Company's July 20, 2021 RNS;Generated a significant increase in revenue of $42.8 million ($53.20/bbl) in Q2 2021 versus $32.4 million ($41.91/bbl) in Q1 2021;Achieved record netback and net operating income in Q2 2021 of $36.88/bbl and $29.7 million, respectively;Operating and direct transportation costs in Q2 2021 were $10.8 million ($13.45/bbl) as compared to $10.6 million ($13.78/bbl) in Q1 2021;Generated free cash flow(1), before leverage and working capital adjustments, in Q2 2021 of $2.4 million and in H1 2021 of $11.5 million, a record for the Company; Strong liquidity position, building total cash quarter over quarter to over $79.5 million as at June 30, 2021 up 5% from March 31, 2021. $25.4 million of total cash is restricted;Net income of $11.4 million for the quarter, demonstrating an efficient operating cost structure, attractive capital base, and supportive fiscal terms;All Q2 2021 bond covenants met with substantial headroom. The Company exited Q2 2021 with a 0.41x leverage ratio which included $40.6 million of net debt calculated per the bond indenture;Continued to de-risk commodity price exposure that brings the total corporate hedge percentage to 44% for the remaining four months of 2021 forecast production, protecting p...