Journey Energy Stock Price, News & Analysis

Journey Energy (JRNGF) reported its Q1 2025 financial results with $19.6 million in Adjusted Funds Flow ($0.29 per share) and net income of $7.7 million ($0.12 per share). The company achieved sales volumes of 10,997 boe/d, with liquids accounting for 59% of total volumes. Journey reduced its net debt to $53.2 million from $60.3 million at year-end 2024.

The company secured a new $55 million credit facility with a Canadian Chartered bank on March 19. Journey's 2025 drilling program is progressing well, with 7 of 8 planned wells drilled and 3 completed. The company has increased its 2025 capital expenditure guidance to $55 million from the original $50 million, primarily due to increased power expenditures and end-of-life costs.

Journey Energy (TSX: JOY, OTCQX: JRNGF) has secured new credit facilities worth up to $55 million with a Canadian Chartered bank. The facilities include: a $12.4 million two-year amortizing term-loan to repay AIMCo debt, a $15 million operating facility for working capital, and a $27.6 million delayed-draw term facility for Duvernay development.

The company has approximately $42.6 million of combined undrawn capacity on the New Credit Facilities. In December 2024, Journey commenced production from two initial Duvernay joint venture wells with Spartan Delta Corp., exceeding management's expectations. In 2025, 3 (0.9 net) wells have been drilled with two rigs currently active. The Joint Venture controls about 105 sections of land within the Duvernay oil window, with Journey holding a 30% working interest.

Additionally, Journey's board has approved advance notice provisions for director nominations, requiring shareholders to provide notice 30-65 days before annual meetings and within 15 days of special meeting announcements. These provisions will be submitted for shareholder approval at the May 22, 2025 Annual Meeting.

Journey Energy Inc. (JRNGF) reported its financial results for 2024, achieving $5.1 million in net income ($0.08 per share) and $51.7 million in Adjusted Funds Flow ($0.83 per basic share). The company maintained strong production with 10,815 boe/d in Q4 2024, with liquids accounting for 59% of volumes.

Key developments include: closing a $38 million convertible debenture financing in March 2024; entering a strategic Joint Venture with Spartan Delta for Duvernay development with a 30% working interest; and advancing construction of a 15.1 MW power generation facility in Gilby Alberta. The company completed a divestment of Central Alberta assets, reducing end-of-life-costs by over $20 million.

Two Duvernay wells were drilled and began production in December, exceeding management expectations. Capital spending for Q4 2024 totaled $16.3 million, with $8.2 million allocated to Duvernay wells and $5.5 million to power projects.

Journey Energy has reported its year-end 2024 oil and gas reserves evaluation, highlighting a strategic shift toward higher netback liquids. While proved developed producing reserves decreased 4% to 35.5 MMboe (NPV@10%: $350.3 million), total proved reserves increased 1% to 50.4 MMboe (NPV@10%: $538.4 million) and total proved plus probable reserves grew 6% to 85.4 MMboe (NPV@10%: $882.7 million).

The company achieved positive technical reserve revisions, though these were offset by negative economic revisions primarily affecting natural gas properties due to reduced forecasted pricing. Reserve life indices improved, with PDP increasing to 8.9 years from 8.4 years.

Notably, 73% of 2024 TPP reserve additions were attributed to higher netback oil and liquids. The company also reduced total undiscounted end-of-life liability costs by over $21 million through asset sales and capital investments.

Journey's Duvernay Joint Venture saw significant reserve bookings, with year-end TPP reserves including 5 gross producing wells and 44 gross locations, valued at $151 million. The company plans to allocate most of its growth capital to this venture over the next two years, with GLJ forecasting a 2025 operating netback of approximately $50/boe.

Journey Energy has announced its preliminary guidance for 2025, focusing on Duvernay Joint Venture development. The company plans total capital expenditures of $50 million, including $30 million for drilling 7 (2.1 net) Duvernay wells, $10 million for power projects, and the remainder for various other expenditures.

Journey has reached an agreement with AIMCo to amend the repayment terms of approximately $12.4 million in term debt. Payments will be paused from March to August 2025, resuming in September with monthly payments of $2.1 million plus interest until February 2026.

The company's 2025 guidance projects average daily sales volumes of 10,800-11,200 boe/d (58% crude oil & NGL's), Adjusted Funds Flow of $68-70 million ($1.01-1.05 per share), and year-end Net Debt of $41-43 million with a Net Debt to Adjusted Funds Flow ratio of 0.6x.

Journey Energy has reported encouraging results from its Duvernay Joint Venture operations, where it holds a 31.38% working interest across 104 sections. Two wells drilled from the 05-18-042-03W5 surface location have shown excellent initial test rates. The 03-26-042-04W5 well and 09-05-042-03W5 well, completed with 71 and 74 stages respectively, began flowing on November 25, 2024.

The wells have demonstrated strong 30-day production rates, with the 09-05 well producing 865 bbls/d of oil and the 03-26 well producing 1,019 bbls/d, both significantly exceeding internal type curve expectations. Production rates are materially better than previous wells drilled in 2018 and 2019, leading to increased type curve expectations for Duvernay wells.

The Joint Venture's initial gross capital expenditures are capped at $30 million for 2024 and $100 million for 2025. Journey plans to participate in 6-8 wells in 2025, with majority being drilled from three well pads to maximize efficiency.

Journey Energy (TSX: JOY, OTCQX: JRNGF) has announced the publication of a new corporate presentation, which is now available on their company website and on sedarplus.ca. The company also indicated its intention to provide 2025 guidance before the end of January 2025.

Journey Energy reported Q3 2024 financial results with sales volumes of 11,152 boe/d (47% crude oil, 9% NGL's, 44% natural gas). The company achieved Adjusted Funds Flow of $13.6 million ($0.22 per basic share) and reduced Net Debt to $52.7 million, a 15% decrease from year-end 2023. Two Duvernay wells were drilled in partnership with Spartan Delta, with completion operations underway. The company faced challenges from low natural gas prices, realizing only $0.51/mcf, and experienced production impacts from third-party shut-ins at Stolberg property. Journey divested Central Alberta assets producing 130 boe/d, which is expected to reduce end-of-life-costs by over $20 million.