Prairie Provident Resources Announces Second Quarter 2023 Financial and Operating Results

Article content material

CALGARY, Alberta, Aug. 25, 2023 (GLOBE NEWSWIRE) — Prairie Provident Sources Inc. (“Prairie Provident”, “PPR” or the “Firm”) broadcasts our working and monetary outcomes for the quarter ended June 30, 2023. PPR’s interim monetary statements and associated Administration’s Dialogue and Evaluation (MD&A) can be found on our web site at www.ppr.ca and filed on SEDAR at www.sedar.com.

MESSAGE
TO
SHAREHOLDERS

Article content material

Patrick McDonald, Interim President and CEO commented: “With the Could 2023 completion of the Firm’s recapitalization transactions, Prairie Provident is positioned to concentrate on the creation of and unlocking of worth which exists inside the firm’s asset base. The operations group has been in a position to preserve manufacturing ranges by consideration to manufacturing and upkeep actions and the discount of working bills. The Firm will proceed to pursue the divestiture of non-core belongings and different transactions to additional scale back debt and to create monetary flexibility to permit the Firm to pursue a low danger, low value capital property improvement program.”

Article content material

SECOND QUARTER 2023 FINANCIAL AND OPERATIONAL HIGHLIGHTS

FINANCIAL AND OPERATING SUMMARY

Article content material

ABOUT PRAIRIE PROVIDENT

Prairie Provident is a Calgary-based firm engaged within the exploration and improvement of oil and pure fuel properties in Alberta. The Firm’s technique is to optimize money circulate from our present belongings, offering low danger improvement and secure low decline money circulate.

For additional data, please contact:

Prairie Provident Sources Inc.
1100, 640 – fifth Avenue SW
Calgary, Alberta, Canada T2P 3G4
Fundamental: (403) 292-8000
Fax: (403) 292-8001
Electronic mail: info@ppr.ca

Ahead-Trying Statements

This information launch incorporates sure statements (“forward-looking statements”) that represent forward- trying data inside the which means of relevant Canadian securities legal guidelines. Ahead-looking statements relate to future efficiency, occasions or circumstances, are based mostly upon inner assumptions, plans, intentions, expectations and beliefs, and are topic to dangers and uncertainties which will trigger precise outcomes or occasions to vary materially from these indicated or urged therein. All statements aside from statements of present or historic truth represent forward-looking statements. Ahead- trying statements are sometimes, however not all the time, recognized by phrases corresponding to “anticipate”, “consider”, “count on”, “intend”, “plan”, “price range”, “forecast”, “goal”, “estimate”, “suggest”, “potential”, “challenge”, “proceed”, “could”, “will”, “ought to” or related phrases suggesting future outcomes or occasions or statements concerning an outlook.

Article content material

Article content material

With out limiting the foregoing, this information launch incorporates forward-looking statements pertaining to: completion of the Recapitalization; near-term capital plans for a low-risk effectively optimization program; supposed hedging actions; and post-Recapitalization liquidity and capital sources.

Ahead-looking statements are based mostly on various materials components, expectations or assumptions of Prairie Provident which have been used to develop such statements however which can show to be incorrect. Though the Firm believes that the expectations and assumptions mirrored in such forward-looking statements are cheap, undue reliance shouldn’t be positioned on forward-looking statements, that are inherently unsure and rely upon the accuracy of such expectations and assumptions. Prairie Provident may give no assurance that the forward-looking statements contained herein will show to be right or that the expectations and assumptions upon which they’re based mostly will happen or be realized. Specifically, the Firm may give no assurance that the Fairness Financing might be efficiently accomplished, whether or not on the phrases proposed or in any respect, and due to this fact whether or not the Recapitalization might be accomplished. Precise outcomes or occasions will differ, and the variations could also be materials and opposed to the Firm. Along with different components and assumptions which can be recognized herein, assumptions have been made concerning, amongst different issues: that the Firm will be capable to full the Fairness Financing and due to this fact the Recapitalization; that the Toronto Inventory Trade will approve the difficulty of widespread shares beneath the Recapitalization on phrases acceptable to Prairie Provident; the outcomes from reactivation tasks, that Prairie Provident will proceed to conduct its operations in a fashion in step with previous operations; outcomes from drilling and improvement actions, and their consistency with previous operations; the standard of the reservoirs by which Prairie Provident operates and continued efficiency from present wells (together with with respect to manufacturing profile, decline price and product kind combine); the continued and well timed improvement of infrastructure in areas of recent manufacturing; the accuracy of the estimates of Prairie Provident’s reserves volumes; future commodity costs; future working and different prices; future USD/ CAD trade charges; future rates of interest; continued availability of exterior financing and money circulate to fund Prairie Provident’s present and future plans and expenditures, with exterior financing on acceptable phrases; the affect of competitors; the final stability of the financial and political surroundings by which Prairie Provident operates; the final continuance of present trade situations; the well timed receipt of any required regulatory approvals; the power of Prairie Provident to acquire certified workers, tools and companies in a well timed and value environment friendly method; drilling outcomes; the power of the operator of the tasks by which Prairie Provident has an curiosity in to function the sphere in a protected, environment friendly and efficient method; discipline manufacturing charges and decline charges; the power to switch and broaden oil and pure fuel reserves by acquisition, improvement and exploration; the timing and value of pipeline, storage and facility building and growth and the power of Prairie Provident to safe enough product transportation; the regulatory framework concerning royalties, taxes and environmental issues within the jurisdictions by which Prairie Provident operates; and the power of Prairie Provident to efficiently market its oil and pure fuel merchandise.

Article content material

The forward-looking statements included on this information launch will not be ensures of future efficiency or guarantees of future outcomes, and shouldn’t be relied upon. Such statements, together with the assumptions made in respect thereof, contain identified and unknown dangers, uncertainties and different components which will trigger precise outcomes or occasions to vary materially from these anticipated in such forward- trying statements together with, with out limitation: diminished entry to exterior debt financing; increased curiosity prices or different restrictive phrases of debt financing; modifications in realized commodity costs; modifications within the demand for or provide of Prairie Provident’s merchandise; the early stage of improvement of among the evaluated areas and zones; the potential for variation within the high quality of the geologic formations focused by Prairie Provident’s operations; unanticipated working outcomes or manufacturing declines; modifications in tax or environmental legal guidelines, royalty charges or different regulatory issues; modifications in improvement plans of Prairie Provident or by third occasion operators; elevated debt ranges or debt service necessities; inaccurate estimation of Prairie Provident’s oil and fuel reserves volumes; restricted, unfavourable or a scarcity of entry to capital markets; elevated prices; a scarcity of enough insurance coverage protection; the affect of opponents; and such different dangers as could also be detailed from time-to-time in Prairie Provident’s public disclosure paperwork (together with, with out limitation, these dangers recognized on this information launch and Prairie Provident’s present Annual Info Type as filed with Canadian securities regulators and accessible from the SEDAR web site (www.sedar.com) beneath Prairie Provident’s issuer profile).

Article content material

The forward-looking statements contained on this information launch converse solely as of the date of this information launch, and Prairie Provident assumes no obligation to publicly replace or revise them to mirror new occasions or circumstances, or in any other case, besides as could also be required pursuant to relevant legal guidelines. All forward-looking statements contained on this information launch are expressly certified by this cautionary assertion.

Barrels of Oil Equal

The oil and fuel trade generally expresses manufacturing volumes and reserves on a “barrel of oil equal” foundation (“boe”) whereby pure fuel volumes are transformed on the ratio of six thousand cubic toes to at least one barrel of oil. The intention is to sum oil and pure fuel measurement models into one foundation for improved evaluation of outcomes and comparisons with different trade individuals. A boe conversion ratio of six thousand cubic toes to at least one barrel of oil is predicated on an vitality equivalency conversion technique primarily relevant on the burner tip. It doesn’t symbolize a worth equivalency on the wellhead nor on the plant gate, which is the place Prairie Provident sells its manufacturing volumes. Boes could due to this fact be a deceptive measure, significantly if utilized in isolation. On condition that the worth ratio based mostly on the present worth of crude oil as in comparison with pure fuel is considerably totally different from the vitality equivalency ratio of 6:1, using a 6:1 conversion ratio could also be deceptive as a sign of worth.

Article content material

Non-GAAP and Different Monetary Measures

This information launch discloses sure monetary measures which might be ‘non-GAAP monetary measures’ or ‘supplementary monetary measures’ inside the which means of relevant Canadian securities legal guidelines. Such measures don’t have a standardized or prescribed which means beneath Worldwide Monetary Reporting Requirements (IFRS) and, accordingly, will not be similar to related monetary measures disclosed by different issuers. Non-GAAP and different monetary measures are supplied as supplementary data by which readers could want to think about the Firm’s efficiency however shouldn’t be relied upon for comparative or funding functions. Readers should not think about non-GAAP and different monetary measures in isolation or as an alternative to evaluation of the Firm’s monetary outcomes as reported beneath IFRS.   For a reconciliation of every non-IFRS measure to its nearest IFRS measure, please discuss with the “Non-GAAP and Different Monetary Measures” part of the MD&A.

This information launch additionally consists of reference to sure metrics generally used within the oil and fuel trade however which don’t have a standardized or prescribed meanings beneath the Canadian Oil and Gasoline Analysis (COGE) Handbook or relevant regulation. Such metrics are equally supplied as supplementary data by which readers could want to think about the Firm’s efficiency however shouldn’t be relied upon for comparative or funding functions.

Article content material

Following is extra data on non-GAAP and different monetary measures and oil and fuel metrics used on this information launch.

Working Netback – Working netback is a non-GAAP monetary measure generally used within the oil and fuel trade, which the Firm believes is a helpful measure to help administration and traders to judge working efficiency on the oil and fuel lease stage. Working netbacks included on this information launch have been decided as oil and fuel revenues much less royalties much less working prices. Working netback could also be expressed in absolute greenback phrases or a per unit foundation. Per unit quantities are decided by dividing absolutely the worth by gross working curiosity manufacturing. Working netback after beneficial properties or losses on by-product devices, adjusts the working netback for under the realized portion of beneficial properties and losses on by-product devices. Working netback per boe and working netback, after realized beneficial properties (losses) on derivatives per boe are non-GAAP monetary ratios.

Web Debt – Web debt is outlined as borrowings beneath long-term debt (together with principal and deferred curiosity) plus working capital surplus or deficit. Web debt is a measure generally used within the oil and fuel trade for assessing the liquidity of an organization.

Article content material

Working Capital – Working capital is calculated as present belongings excluding the present portion of by-product devices, much less accounts payable and accrued liabilities. This measure is used to help administration and traders in understanding liquidity at a particular time limit. The present portion of derivatives devices is excluded as administration intends to carry by-product contracts by to maturity slightly than realizing the worth at a time limit by liquidation. The present portion of decommissioning expenditures is excluded as these prices are discretionary and warrant liabilities are excluded as it’s a non-monetary legal responsibility. The present portion of long-term debt is excluded as it’s mirrored in borrowings. Lease liabilities have traditionally been excluded as they weren’t recorded on the stability sheet till the adoption of IFRS 16 – Leases on January 1, 2019.

Web capital expenditures – Web capital expenditures is a non-GAAP monetary measure generally used within the oil and fuel trade, which the Firm believes is a helpful measure to help administration and traders to evaluate PPR’s funding in its present asset base. Web capital expenditures is calculated by taking whole capital expenditures, which is the sum of property and tools expenditures and exploration and analysis expenditures from the Consolidated Assertion of Money Flows, plus capitalized stock-based compensation, plus acquisitions from enterprise combos, which is the outflow money consideration paid to accumulate oil and fuel properties, much less asset tendencies (internet of acquisitions), which is the money proceeds from the disposition of manufacturing properties and undeveloped lands.

Reserve Life Index – Reserve life index (RLI) is an oil and fuel metric calculated by dividing whole firm share reserves by annualized manufacturing. RLI offers a abstract measure of the relative magnitude of the Firm’s reserves by a sign as to how lengthy they might final based mostly on a present, annualized manufacturing price and assuming no additions to reserves.

Article content material