Journey Posts $15.8 Million of Net Income for 2023 and $66.1 Million of Adjusted Funds Flow

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Calgary, Alberta--(Newsfile Corp. - March 12, 2024) - Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) ("Journey" or the "Company") is pleased to announce its financial and operating results for the three and twelve month periods ending December 31, 2023. The complete set of financial statements and management discussion and analysis for the periods ended December 31, 2023 and 2022 are posted on www.sedarplus.ca and on the Company's website www.journeyenergy.ca.

Highlights for 2023 are as follows:

• Generated net income of $15.8 million for 2023. On a basic, weighted average per share basis, this amounted to $0.26 and $0.24 per diluted share.
• Realized Adjusted Funds Flow of $66.1 million for the year. On a basic, weighted average per share basis, this amounted to $1.10 and $1.00 per diluted share.
• Achieved sales volumes of 12,595 boe/d in the fourth quarter of 2023 and 12,415 boe/d for the entire year. Liquids volumes (crude oil and natural gas liquids) accounted for 6,912 boe/d or 55% of total volumes during the quarter and 6,765 boe/d or 54% for the entire year.
• On March 18, 2023 Journey closed a bought-deal flow-through share financing to issue 3.04 million flow-through shares at a price of $6.62/share resulting in gross proceeds of $20.1 million.
• Proved developed producing and proved plus probable developed producing reserve life index of 8.4 and 10.8 years respectively, are testaments to Journey's low decline asset base, and the YoY increase in reserve life index demonstrates Journey's ability to grow our base production base while simultaneously reducing our corporate decline rate.
• Achieved attractive F&D and FD&A recycle ratios of 2.4 and 2.5 respectively for proven reserves, and 8.9 and 8.5 respectively for proven plus probable reserves.
• The Company continued to advance the emerging power generation business:
  • Generated 24,723 MWH of electricity in 2023 at an average price of $155.69/MWH.
  • Started construction of the 15.1 MW power generation facility in Gilby Alberta, which is currently forecast to be on stream by the fourth quarter of 2024.
  • Purchased a 16.5 MW power generation facility, the land it sits upon and the gas supply pipeline.
• Continued work on decommissioning non-producing sites. Journey spent $1.2 million in the fourth quarter and $4.9 million for the entire year.

2024 Highlight:

On March 6, 2024, Journey announced a $38 million convertible debenture bought-deal financing. The debentures have a coupon rate of 10.25% interest and are convertible into Journey shares at the option of the holder at the exercise price of $5.00/share. The closing of this offering is anticipated to be on or about March 20, 2024. Journey has chosen to defer updating 2024 corporate guidance until that time. In addition to providing greater financial flexibility for the Company, proceeds from this debenture will be utilized to:

• Ramp up expenditures to complete our Gilby power facility in October 2024 (see power business update);
• Provide for a minor expansion to 2024 capital, including a second Medicine Hat drilling program;
• Provide funds to drill two Duvernay wells in 2025.

Financial & Operating Highlights

		Three months ended December 31,									Twelve months ended December 31,
Financial ($000's except per share amounts)		2023			2022			% change			2023			2022			% change
Sales revenue		55,914			67,531			(17	)		225,149			235,583			(4	)
Net income		3,440			97,753			(96	)		15,819			155,198			(90	)
Basic ($/share)		0.06			1.73			(97	)		0.26			2.95			(91	)
Diluted ($/share)		0.05			1.55			(97	)		0.24			2.64			(91	)
Adjusted Funds Flow		18,376			24,890			(26	)		66,140			101,387			(35	)
Basic ($/share)		0.30			0.44			(32	)		1.10			1.93			(43	)
Diluted ($/share)		0.27			0.40			(33	)		1.00			1.73			(42	)
Cash flow provided by operating activities		31,278			25,346			23			66,643			106,623			(37	)
Basic ($/share)		0.51			0.45			13			1.11			2.02			(45	)
Diluted ($/share)		0.47			0.40			18			1.01			1.81			(44	)
Capital expenditures, including A&D		17,029			121,376			(86	)		40,856			181,026			(77	)
Net debt		61,676			98,768			(38	)		61,676			98,768			(38	)
Share Capital (000's)
Basic, weighted average		61,197			56,638			8			60,310			52,658			15
Diluted, weighted average		66,955			62,912			6			66,170			58,773			13
Basic, end of period		61,350			62,912			6			61,350			57,882			6
Fully diluted		68,378			64,839			5			68,378			64,839			5
Daily Sales Volumes
Natural gas (Mcf/d)
Conventional		29,754			27,929			7			29,661			25,492			16
Coal bed methane		4,343			4,011			8			4,238			4,293			(1	)
Total natural gas volumes		34,097			31,940			7			33,899			29,785			14
Crude oil (Bbl/d)
Light/medium		3,317			3,378			(2	)		3,343			2,922			14
Heavy		2,313			1,616			43			2,148			904			138
Total crude oil volumes		5,630			4,994			13			5,491			3,826			44
Natural gas liquids (Bbl/d)		1,282			1,179			9			1,274			988			29
Barrels of oil equivalent (boe/d)		12,595			11,496			10			12,415			9,778			27
Average Realized Prices (including hedging)
Natural gas ($/mcf)		2.29			6.49			(65	)		2.70			5.97			(55	)
Crude Oil ($/bbl)		83.93			91.09			(8	)		85.21			105.50			(19	)
Natural gas liquids ($/bbl)		44.61			60.90			(27	)		45.16			64.69			(30	)
Barrels of oil equivalent ($/boe)		48.26			63.85			(24	)		49.68			66.01			(25	)
Operating Netback ($/boe)
Realized prices		48.26			63.85			(24	)		49.68			66.01			(25	)
Royalties		(10.45	)		(12.77	)		(18	)		(10.37	)		(13.16	)		(21	)
Operating expenses		(17.02	)		(23.64	)		(28	)		(20.20	)		(20.27	)		-
Transportation expenses		(1.87	)		(0.86	)		117			(1.13	)		(0.70	)		61
Operating netback		18.92			26.58