Business
Southern Energy Corp. Announces First Quarter 2022 Financial and Operating Results
CALGARY, AB / ACCESSWIRE / May 26, 2022 / Southern Energy Corp. (" Southern " or the " Compa...
About this update from Southern Energy Corp.
[{"type":"text","content":"Southern Energy Corp. Announces First Quarter 2022 Financial and Operating ResultsCALGARY, AB / ACCESSWIRE / May 26, 2022 / Southern Energy Corp. (\"Southern\" or the \"Company\") (TSXV:SOU)(AIM:SOUC) today announces the release of its first quarter financial and operating results for the three months ended March 31, 2022.Southern is an established producer with natural gas and light oil assets in Mississippi characterized by a stable, low-decline production base, a significant low-risk drilling inventory and strategic access to the best commodity pricing in North America. Selected financial and operational information is outlined below and should be read in conjunction with the Company's unaudited consolidated financial statements (the \"Financial Statements\") and related management's discussion and analysis (the \"MD&A\") for the three months ended March 31, 2022, which are available on the Company's website at www.southernenergycorp.com and have been filed on SEDAR.All figures referred to in this news release are denominated in U.S. dollars, unless otherwise noted.FIRST QUARTER 2022 HIGHLIGHTS$2.2 million of adjusted funds flow from operations[1] in Q1 2022, an increase of 121% from the same period in 2021Petroleum and natural gas sales of $5.9 million in Q1 2022, an increase of 54% from the same period in 2021Q1 2022 average production of 11,515 Mcfe/d[2] (1,919 boe/d) (92% natural gas), an 11% decrease from the same period in 2021Rig released two (2.0 net) wells of the three well program at Gwinville in Q1 2022 with the third well rig released in April 2022Net loss of $1.9 million in Q1 2022 ($0.02 per share - basic and diluted), with an unrealized loss on derivatives of $2.9 million, compared to a net loss of $0.6 million in Q1 2021Exited Q1 2022 with Net Debt[1]of $10.7 million, and Net Debt to Q1 2022 annualized Adjusted Funds Flow from Operations[1] of 1.2xAverage realized oil and natural gas prices for Q1 2022 of $95.20/bbl and $4.87/Mcf, respectively, reflecting the benefit of strategic access to premium-priced US sales hubsOn February 1, 2022, Southern disposed of all of its assets from its non-core Smackover cash generating unit for net proceeds of $0.8 millionSUBSEQUENT EVENTSOn April 8, 2022, Southern entered into a second amendment (the \"Second Amendment\") to its senior secured term loan of up to $8.5 mill...