Hemisphere Energy (HMENF) Q4 Results - April 29
Posted: Thu Apr 29, 2021 11:49 am
Don Simmons told me that Q1 results will be released by May 14.
Hemisphere Energy Announces 2020 Fourth Quarter and Year-End Financial and Operating Results
HMENF
Newsfile Corp.
Wed, April 28, 2021, 6:41 PM
Vancouver, British Columbia--(Newsfile Corp. - April 28, 2021) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) ("Hemisphere" or the "Company") is pleased to provide its financial and operating results for the fourth quarter and year ended December 31, 2020.
For Hemisphere, 2020 was a year of strengthening the balance sheet by cutting capital, reducing costs, maintaining year over year production rates, and paying down nearly 25% of its previously outstanding year-end debt.
Despite spending only $1.7 million in capital during the year, the Company grew its Proved and Proved plus Probable reserves by 18% and 22%, respectively. While oil prices were down substantially through much of 2020 due to COVID-19, Hemisphere achieved adjusted funds flow from operations of $9.3 million, or $0.11 per basic share. < Inline with my forecast.
This allowed the Company to improve its leverage metrics, strategically execute its Normal Course Issuer Bid (NCIB) program, and prepare for an exciting year of development in 2021.
The first quarter of 2021 has been positive for Hemisphere. Oil prices have rebounded significantly from 2020 and initial production response from water injector conversions done in the fourth quarter has been encouraging. Since completing a facility turnaround in early April, corporate production is currently averaging over 1,900 boe/d (99% heavy crude oil, based on field estimates between April 10th to 26th, 2021). This correlates to an increase of 25% as compared to production from the fourth quarter.
2020 Highlights
Attained annual average production of 1,706 boe/d (99% heavy oil and 1% natural gas), a 2% increase over 2019.
Generated annual revenue of $18.7 million.
Recorded operating netback of $14.5 million.
Achieved $9.3 million of adjusted funds flow from operations, or $0.11/basic share.
Reduced operating and transportation costs to $9.94/boe, a 20% decrease over 2019.
Increased Proved (1P) reserve volumes by 18% to 11.7 MMboe (99% heavy oil and 1% natural gas), with NPV10 BT of future net revenue valued at $170 million.
Increased Proved plus Probable (2P) reserve volumes by 22% to 14.9 MMboe (98% heavy oil and 2% natural gas), with NPV10 BT of future net revenue valued at $211 million.
Purchased 2,120,000 shares at an average price of $0.125 under the Company's NCIB program.
Realized hedging gains of $3.7 million.
Selected financial and operational highlights should be read in conjunction with Hemisphere's audited annual financial statements and related Management's Discussion and Analysis for the year ended December 31, 2020. These reports, including the Company's Annual Information Form for the year ended December 31, 2020, are available on SEDAR at www.sedar.com and on Hemisphere's website at www.hemisphereenergy.ca. All amounts are expressed in Canadian dollars unless otherwise noted.
I will be updating my forecast/valuation model this afternoon, but it won't change much based on this press release. April production is just slightly higher than my Q2 forecast of 1,860 Boepd.
Hemisphere Energy Announces 2020 Fourth Quarter and Year-End Financial and Operating Results
HMENF
Newsfile Corp.
Wed, April 28, 2021, 6:41 PM
Vancouver, British Columbia--(Newsfile Corp. - April 28, 2021) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) ("Hemisphere" or the "Company") is pleased to provide its financial and operating results for the fourth quarter and year ended December 31, 2020.
For Hemisphere, 2020 was a year of strengthening the balance sheet by cutting capital, reducing costs, maintaining year over year production rates, and paying down nearly 25% of its previously outstanding year-end debt.
Despite spending only $1.7 million in capital during the year, the Company grew its Proved and Proved plus Probable reserves by 18% and 22%, respectively. While oil prices were down substantially through much of 2020 due to COVID-19, Hemisphere achieved adjusted funds flow from operations of $9.3 million, or $0.11 per basic share. < Inline with my forecast.
This allowed the Company to improve its leverage metrics, strategically execute its Normal Course Issuer Bid (NCIB) program, and prepare for an exciting year of development in 2021.
The first quarter of 2021 has been positive for Hemisphere. Oil prices have rebounded significantly from 2020 and initial production response from water injector conversions done in the fourth quarter has been encouraging. Since completing a facility turnaround in early April, corporate production is currently averaging over 1,900 boe/d (99% heavy crude oil, based on field estimates between April 10th to 26th, 2021). This correlates to an increase of 25% as compared to production from the fourth quarter.
2020 Highlights
Attained annual average production of 1,706 boe/d (99% heavy oil and 1% natural gas), a 2% increase over 2019.
Generated annual revenue of $18.7 million.
Recorded operating netback of $14.5 million.
Achieved $9.3 million of adjusted funds flow from operations, or $0.11/basic share.
Reduced operating and transportation costs to $9.94/boe, a 20% decrease over 2019.
Increased Proved (1P) reserve volumes by 18% to 11.7 MMboe (99% heavy oil and 1% natural gas), with NPV10 BT of future net revenue valued at $170 million.
Increased Proved plus Probable (2P) reserve volumes by 22% to 14.9 MMboe (98% heavy oil and 2% natural gas), with NPV10 BT of future net revenue valued at $211 million.
Purchased 2,120,000 shares at an average price of $0.125 under the Company's NCIB program.
Realized hedging gains of $3.7 million.
Selected financial and operational highlights should be read in conjunction with Hemisphere's audited annual financial statements and related Management's Discussion and Analysis for the year ended December 31, 2020. These reports, including the Company's Annual Information Form for the year ended December 31, 2020, are available on SEDAR at www.sedar.com and on Hemisphere's website at www.hemisphereenergy.ca. All amounts are expressed in Canadian dollars unless otherwise noted.
I will be updating my forecast/valuation model this afternoon, but it won't change much based on this press release. April production is just slightly higher than my Q2 forecast of 1,860 Boepd.