Journey Energy Stock Price, News & Analysis

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.

Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) has announced updates on its term debt rescheduling and operations. Key points include:

1. Agreement with AIMCo to amend repayment terms of outstanding balance, extending debt maturity to August 29, 2025.

2. Divestment of assets in Berrymoor and Keystone, Alberta, with sales volumes of approximately 130 boe/d.

3. Gilby Power Project progressing towards March 2025 in-service-date.

4. Spartan Delta Corp. drilling two Duvernay wells with Journey's 31.38% working interest.

5. Third quarter production guidance between 10,900-11,100 boe/d (55% liquids).

6. Adjusted Funds Flow for Q3 forecast at $13-14 million.

7. Continued focus on prudent business expansion and debt repayment.

Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) has received approval from the Toronto Stock Exchange (TSX) to initiate a normal course issuer bid. The company plans to purchase up to 4,666,445 common shares, representing approximately 10% of its public float. The bid period runs from August 26, 2024, to August 25, 2025. Purchases will be made through TSX facilities and alternative trading platforms in Canada at market prices. The maximum daily purchase limit is set at 29,310 common shares, 25% of the average daily trading volume for the previous six months. Journey's Board believes this move will protect and enhance shareholder value when the share price doesn't adequately reflect the company's value.

Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) announced its Q2 2024 financial results:

• Sales volumes: 11,235 boe/d (45% crude oil, 9% NGL's, 46% natural gas)
• Adjusted Funds Flow: $9.5 million ($0.15 per basic share, $0.14 per diluted share)
• Net loss: $2.3 million ($0.04 per basic and diluted share)
• Capital expenditures: $4.7 million
• Net debt reduced to $55.5 million

The company revised its 2024 guidance:Annual average daily sales volumes: 11,200-11,500 boe/dAdjusted Funds Flow: $60-62 millionCapital spending: $48 million2024 ending Net Debt: $46-48 million

Journey announced participation in a Duvernay joint venture with Spartan Delta Corp. and plans to implement a Normal Course Issuer Bid (NCIB).