Strathcona Resources Ltd. (SCR) Q1 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning. My name is Joanna and I will be your conference operator today. I would like to welcome everyone to the Q1 2024 conference call of Strathcona Resources Limited. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. For attendees on the conference call that would like to ask a question, press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. I now introduce Rob Morgan, President and CEO of Strathcona, to begin the conference. Good morning, everyone, and thank you for joining us this morning. Welcome to the Q1 2024 Conference Call of Strathcona Resources. As the operator indicated, my name is Rob Morgan, President and CEO of Strathcona, and with me today is Connor Watrous, our Senior Vice President and Chief Financial Officer, and our Treasurer, Angie Lau. Yesterday, Strathcona released its first quarter 2024 results, with the news release, financial statements, and MD&A available on Strathcona's website, as well as on CDAR+. We encourage investors to read those documents in full. Results for the first quarter of 2024 were consistent with the fourth quarter of 2023, production of 185,000 BOE per day, funds from operations of $456 million, or $2.13 per share, capital expenditures of $286 million, and free cash flow of $158 million or $0.74 per share. Of note, over the previous two quarters, quarterly sales volumes of certain of Strathcona's Lloydminster heavy oil assets were, in aggregate, 4,400 barrels per day less than production, as heavy oil volumes from Strathcona's owned rail terminal were held in inventory for the expansion of a unit train offloading facility in the U.S. Gulf Coast. ...