Kiwetinohk Energy reverses Q1 loss in 2023
Canadian transition energy company Kiwetinohk Energy said May 2 it had Q1 2023 net income of C$53.9mn (US$39.5mn), reversing a C$24.6mn loss posted in the same period a year ago.
Total production nearly doubled, to 23,996 barrels of oil equivalent (boe)/day from 13,253 boe/day in Q1 2022, as natural gas production increased to 83.5mn ft3/day from 44mn ft3/day.
Realised commodity prices were weaker, with natural gas at C$4.84/’000 ft3compared to C$6.35/’000 ft3 and oil and condensate falling to C$100.25/barrel from C$115.70/b in Q2 2022.
“Kiwetinohk executed the capital program as planned during the first quarter of 2023 and delivered strong financial and operational results during a weaker than anticipated first quarter commodity price environment,” CEO Pat Carlson said. “Notwithstanding the strong quarter, given the ongoing weaker commodity price environment we have opted to use the flexibility through our asset ownership to scale back a portion of our capital investment program and reposition a portion of our drilling program to higher oil weighted drilling targets.”
Kiwetinohk continued to advance its Homestead Solar and gas-fired Opal Firm Renewable projects, from both a regulatory and financial partner standpoint, Carlson said, with an earliest final investment decision contemplated for Q4 2023.
“We were pleased to see new incentives for clean electricity, including abated natural gas-fired generation, in the government of Canada’s Budget 2023 and encourage both levels of government to act quickly to create a policy with carbon price certainty required to attract capital and generate immediate and substantial clean tech, CCUS and clean electricity investments needed to meet Canada’s climate goals,” he added.
Cash flow from operating activities increased to C$80.2mn from C$25.4mn, while adjusted funds flows from operations rose to C$76mn from C$37mn in Q1 2022.