Journey Energy announced Q1 2025 results after the markets closed on May 8
Highlights for the first quarter:
Generated sales volumes of 10,997 boe/d in the first quarter (46% crude oil; 10% NGL’s; 44% natural gas). < Beat my forecast of 10,500 Boepd.
Liquids volumes (crude oil and natural gas liquids) accounted for 6,523 boe/d of total volumes sold or 59% of total volumes during the fourth quarter. < My Q1 forecast was 4,935 bpd of crude oil and 998 bpd of NGLs.
Generated net income of $7.7 million or $0.12 per basic weighted average share.
Realized Adjusted Funds Flow of $19.6 million or $0.29 per basic and diluted share. < Compares to my Adjusted Operating Cash Flow forecast of $11.7 million.
Reduced net debt to $53.2 million from $60.3 million at year-end 2024. < Very important that Journey keeps the debt holders happy.
Closed a new $55 million credit facility with a Canadian Chartered bank on March 19. This facility, along with corporate cash flows will provide the resources and liquidity to enable Journey to participate fully in the Duvernay joint venture as well as finish bringing on-stream the two power generation projects currently under development. < Journey is in our Small-Cap Growth Portfolio because of the joint venture that they have with Spartan Delta (SDE.TO) to develop their Duvernay Oil Play. SDE is the "Safe Bet" and JOY has a lot more upside if Spartan Delta keeps reporting strong well results within the joint venture area.
Journey Energy (JOY.TO and JRNGF) Q1 Results - May 9
Journey Energy (JOY.TO and JRNGF) Q1 Results - May 9
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Journey Energy (JOY.TO and JRNGF) Q1 Results - May 9
OPERATIONS UPDATE
In the first quarter of 2025, Journey had sales volumes of 10,997 boe/d (59% crude oil and NGL’s), which was consistent with the fourth quarter, 2024 volumes of 10,815 boe/d (59% crude oil and NGL’s). The two initial wells from the joint venture with Spartan Delta Corp. were drilled and placed on-production in the fourth quarter of 2024. For the first quarter of 2025 these two wells averaged approximately 600 boe/d (78% liquids) net to Journey, which helped offset existing production declines and the sale of Brooks assets in mid-February. The success of these initial Duvernay wells has led Journey to upwardly revise its Duvernay type curve. As shown in Journey’s March, 2025 corporate presentation, the wells continue to outperform the revised type curve.
In response to the initial success of Journey’s 2024 Duvernay joint venture program, an expanded program for 2025 has been planned. As of May 8th, the 2025 drilling program with Spartan Delta Corp. is well underway. Of the 8 well program, 7 wells have been drilled and 3 completed from three separate surface pad sites. The final well has now reached its total depth.
Completion activities on the three well pad at 6-4-43-3W5 have finished, generally as programmed. The next operations planned will be the completion of the 4 well pad at 2-22-42-4W5, and flowback and testing at 6-4.
In the first quarter of 2025, Journey had sales volumes of 10,997 boe/d (59% crude oil and NGL’s), which was consistent with the fourth quarter, 2024 volumes of 10,815 boe/d (59% crude oil and NGL’s). The two initial wells from the joint venture with Spartan Delta Corp. were drilled and placed on-production in the fourth quarter of 2024. For the first quarter of 2025 these two wells averaged approximately 600 boe/d (78% liquids) net to Journey, which helped offset existing production declines and the sale of Brooks assets in mid-February. The success of these initial Duvernay wells has led Journey to upwardly revise its Duvernay type curve. As shown in Journey’s March, 2025 corporate presentation, the wells continue to outperform the revised type curve.
In response to the initial success of Journey’s 2024 Duvernay joint venture program, an expanded program for 2025 has been planned. As of May 8th, the 2025 drilling program with Spartan Delta Corp. is well underway. Of the 8 well program, 7 wells have been drilled and 3 completed from three separate surface pad sites. The final well has now reached its total depth.
Completion activities on the three well pad at 6-4-43-3W5 have finished, generally as programmed. The next operations planned will be the completion of the 4 well pad at 2-22-42-4W5, and flowback and testing at 6-4.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group