Saturn Oil & Gas Inc.: Q4 2024 Production and Financial Highlights
Saturn Oil & Gas Inc. (TSX: SOIL, OTCQX: OILSF), a leading light oil-focused producer in Saskatchewan and Alberta, recently reported its operating and financial results for the third quarter and year ended December 31, 2024. The company achieved record quarterly production and Adjusted Funds Flow, marking a significant milestone in its growth.
Record Production and Adjusted Funds Flow
In Q4 2024, Saturn recorded an average daily production of 41,051 barrels of oil equivalent (boe/d), representing an 82% oil and liquids composition. This was a 3% increase from the previous quarter and a 21% increase from the same period in 2023. The company’s full-year 2024 average production stood at 41,988 boe/d, a 23% increase from the previous year.
The strong production growth was accompanied by impressive financial results. Saturn reported Adjusted Funds Flow of $2.10/share or $380.1 million for the year, and $0.64/share or $129.2 million in Q4 2024. These figures represent a 43% increase from the previous year’s Adjusted Funds Flow.
Reserves and Free Funds Flow
The Company’s year-end independent reserves evaluation revealed proved developed producing (PDP) reserves of 95.2 million boe, representing a 21% increase from the previous year. The net present value of these reserves, using forecast prices and costs, was estimated at $1.9 billion, a 42% increase from the previous year.
Saturn generated $133.8 million ($0.74/share) in free funds flow in 2024, resulting in a free funds flow yield of 39%. This yield is a significant improvement from the industry average and highlights the Company’s strong financial position.
Share Buybacks and Returning Value to Shareholders
Throughout 2024, Saturn repurchased a total of 6.7 million shares under its Normal Course Issuer Bid (NCIB), reducing the current share count by over 3%. This share buyback program has returned approximately $14.9 million to shareholders.
Impact on Individuals
For individual investors, Saturn’s strong operational and financial performance translates to potential capital appreciation and increased dividends. As the company continues to grow, it may attract more attention from institutional investors, driving up the stock price. Additionally, the company’s solid financial position positions it well to weather industry volatility and maintain a stable dividend.
Impact on the World
On a larger scale, Saturn’s success contributes to the overall stability and growth of the oil and gas industry. The company’s focus on light oil production in stable jurisdictions like Saskatchewan and Alberta aligns with global energy trends, as the world continues to transition towards cleaner energy sources while still requiring a steady supply of oil and gas to meet energy demands. Saturn’s strong financial position also allows it to invest in research and development of new technologies and exploration opportunities, contributing to the industry’s innovation and long-term sustainability.
Conclusion
Saturn Oil & Gas Inc.’s record production, impressive financial results, and strong reserves position demonstrate its commitment to unlocking value for its shareholders and contributing to the global energy sector. With a focus on light oil production in stable jurisdictions and a solid financial foundation, Saturn is well-positioned for continued growth and success in the evolving energy landscape.
- Record quarterly production of 41,051 boe/d (82% oil and liquids)
- Full-year 2024 average production of 41,988 boe/d
- Adjusted Funds Flow of $2.10/share or $380.1 million in 2024
- Free funds flow yield of 39% based on $133.8 million ($0.74/share) of free funds flow in 2024
- Proved developed producing (PDP) reserves of 95.2 million boe, net present value of $1.9 billion
- Repurchased 6.7 million shares under NCIB, returning $14.9 million to shareholders
