Canacol Energy Ltd. · BVC:CNEC
Canacol Energy — Q3 2024 Earnings Presentation
12 slides from Canacol Energy's earnings presentation, November 2024
Slide 1: 3Q 2024 Results Conference Call Presentation
3Q 2024 Results Conference Call Presentation November 2024 Investor Presentation l 1
Slide 2: 3Q 2024 Financial Highlights
3Q 2024 Financial Highlights Natural Gas Pricing & Netbacks (US$/MCF) 1, 2 Strong 3Q Results compared with 3Q 2023: 6.84 6.60 6.69 6.04 • Record Ebitdax $86MM 38% 5.40 5.13 5.13 5.34 5.25 • Strong gas Pricing $6.69 24% 4.90 4.39 4.14 4.01 3.94 • Strong Netbacks $5.25 27% Q1/23 Q2/23 Q3/23 Q4/23 Q1/2
Slide 3: 3Q 2024 Operating Highlights
3Q 2024 Operating Highlights Q3 Realized Sales • Realized Oil & Gas Sales: 169 mmscfepd • Natural Gas Sales: 160 mmscfpd • Within 2024 guidance of 160 - 177 mmscfpd Operational/Drilling Activities • Q3 Drilling: Chontaduro-3 Appraisal Well: Low-risk, near-field drilling strategy Successfully connect
Slide 4: High Prices + Low Cost = High Netbacks
High Prices + Low Cost = High Netbacks2 Gas Operating Netbacks (US$/Mcf)1,2 6.84 6.69 6.60 6.04 1.09 1.03 1.25 5.40 0.41 1.04 0.41 5.13 5.13 0.45 4.76 4.81 0.90 4.66 4.73 4.61 4.43 0.87 0.84 0.61 0.76 0.75 0.78 0.67 0.72 0.36 0.69 0.25 0.35 0.31 0.28 0.30 0.35 0.36 0.25 5.34 5.25 4.90 4.39 4.01 4.14
Slide 5: Growing Revenues and EBITDAX
Growing Revenues and EBITDAX +15% $87.9 $85.8 3Q'23 3Q'24 +38% $76.6 +18% $62.1 $57.9 $49.0 $43.8 -46% $23.9 $10.3 -$0.5 Net Revenues FFO EBITDAX Net Income Capex Our financial results continue to be further strengthened by our ongoing commitment to operational efficiency, aimed at reducing costs an
Slide 6: Profitability and Efficiency of Capital Utilization
Profitability and Efficiency of Capital Utilization 21% 19% 17% 16% 14% 11% 3% Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 ROCE 12-month ROCE ROCE has shown a significant upward trend, reflecting our strategic investments and operational efficiencies Investor Presentation l 6
Slide 7: Strengthened Liquidity
Strengthened Liquidity Strong Liquidity Position • $67 MM in cash and equivalents Principal Maturities Senior Notes Fixed Rate Highest since Q1 2023 (US $MM, % interest rate) 5.75% $500 • Working capital surplus of $62 MM Best since Q3 2022 RCF SOFR + 4.5% Macquarie Loan Facility Secured Loan SOFR +
Slide 8: Covenant Compliance
Covenant Compliance Net Debt to EBITDAX Ratio3 Interest Coverage Ratio3 Current Ratio3 Covenant: 3.25x – 3.50x 2.85x 2.91x 5.05x 2.02x 4.71x 4.85x 2.69x 4.65x 2.55x 1.30x 1.10x 1.10x Covenant: 2.50x Covenant: 1.00x 4Q23 1Q24 2Q24 3Q24 4Q23 1Q24 2Q24 3Q24 4Q23 1Q24 2Q24 3Q24 Leverage Ratio Interest C
Slide 9: Revised 2024 Capital Program and Drilling Success
Revised 2024 Capital Program and Drilling Success Gas Sales CAPEX US$138 MM Revised 2024 Capital Program 4 additional wells, for a total of 11 wells $11 Admin, ESG, & Other $57 4 wells during the remainder of the year: • 3 exploration wells: Natilla-2, Kite-1 & Pibe-1 Exploration • 1 appraisal well
Slide 10: Key Exploration Wells in Q4 2024
Key Exploration Wells in Q4 2024 Gas Sales Drilling 3 exploration wells during the remainder of the year and 1 appraisal well: Natilla-2 Exploration Well • High-impact gas prospect in SSJN-7 • Targeting CDO & Porquero reservoirs • Spud: November 2, 2024 • Success may unlock substantial reserves & op
Slide 11: Building on Strengths: A Strong Foundation for Future Growth
Building on Strengths: A Strong Foundation for Future Growth Proven Success in Colombia: From discovering gas to leading independent gas producer Largest independent natural gas producer in Colombia (~16% market share) Remarkable successful operational track record: • Exploration success rate: 80% •
Slide 12: Q&A
Q&A Investor Presentation l 12