UPDATED 2023 GUIDANCE
Given recent improvements in WTI oil prices averaging higher than our prior guidance and considering recent new hedging (see ‘Hedging Update’ below), we have updated our 2023 guidance by increasing our WTI forecast to US$85/bbl for the balance of 2023, and our total 2023 FFO guidance by $45 million. Approximately $40 million will be used to increase our 2023 capital expenditures and accelerate our 2023 development plan, which will be primarily allocated to the drilling of an eight (8.0 net) well Viking program (production expected by the end of the year) and a four (4.0 net) well program in Pembina (production expected in the first quarter of 2024). To date, our second half development program in Peace River and our Cardium assets at Willesden Green and Pembina are proceeding with results at or ahead of our expectations. In addition, our Willesden Green debottlenecking project is on schedule for completion in early November.
In addition to the increased capital, our revised guidance also reflects a minor increase to the lower end of our production range (slightly increasing the midpoint) and an additional $3 million of share buybacks in August 2023. For the year, we repurchased and cancelled 2.5 million shares as at August 31, 2023, for proceeds of approximately $21.2 million.
| || ||August 2023E Guidance||Revised 2023E Guidance|
|Production1||boe/d||31,500 – 32,500||31,750 – 32,500|
|% oil and NGLs||%||66%||66%|
|Capital expenditures2||$ millions||255 – 265||300|
|Decommissioning expenditures||$ millions||26 – 28||26 – 28|
|Net operating costs||$/boe||14.25 – 14.75||14.25 – 14.75|
|General & administrative||$/boe||1.60 – 1.70||1.60 – 1.70|
|Based on midpoint of above guidance|
|FFO per basic share4||$/share||4.36||4.90|
|Net debt5||$ millions||~290||~290|
|Net debt to FFO5||Times||0.8||0.7|