ROK Resources Files Financial Results for the Second Quarter of 2025
ROK Resources (OTCQB:ROKRF) has released its Q2 2025 financial results, reporting funds flow of $9.0 million and average production of 3,729 boepd (65% liquids). The company achieved a significant financial turnaround with an Adjusted Net Surplus of $3.8 million, compared to $10.6 million of Adjusted Net Debt at year-end 2024.
Net income for Q2 2025 reached $3,278,000 ($0.01 per share), a substantial improvement from $82,000 in Q2 2024. The company initiated a Normal Course Issuer Bid (NCIB), repurchasing and cancelling 1,171,000 common shares at an average price of $0.19 per share. ROK plans to commence a three-well capital program in Q3 2025, focusing on two low-cost re-entries and drilling an open hole Midale multi-lateral well.
ROK Resources (OTCQB:ROKRF) ha pubblicato i risultati finanziari del secondo trimestre 2025, registrando flusso di fondi di $9.0 milioni e una produzione media di 3,729 boepd (65% liquidi). L'azienda ha ottenuto una netta inversione di tendenza finanziaria con un surplus netto rettificato di $3.8 milioni, a fronte di una debito netto rettificato di $10.6 milioni a fine 2024.
Il reddito netto per il Q2 2025 è stato di $3,278,000 ($0.01 per azione), un miglioramento significativo rispetto a $82,000 nel Q2 2024. La società ha avviato un Normal Course Issuer Bid (NCIB), riacquistando e annullando 1,171,000 azioni ordinarie a un prezzo medio di $0.19 per azione. ROK prevede di avviare nel Q3 2025 un programma di capitale su tre pozzi, concentrandosi su due rientri a basso costo e sulla perforazione di un pozzo multilaterale a foro aperto nella formazione Midale.
ROK Resources (OTCQB:ROKRF) publicó sus resultados financieros del 2T 2025, reportando flujo de fondos de $9.0 millones y una producción promedio de 3,729 boepd (65% líquidos). La compañía consiguió un giro financiero importante con un superávit neto ajustado de $3.8 millones, frente a una deuda neta ajustada de $10.6 millones a fines de 2024.
La utilidad neta del 2T 2025 fue de $3,278,000 ($0.01 por acción), una mejora sustancial respecto a $82,000 en el 2T 2024. La empresa inició un Normal Course Issuer Bid (NCIB), recomprando y cancelando 1,171,000 acciones ordinarias a un precio medio de $0.19 por acción. ROK planea comenzar en el 3T 2025 un programa de capital de tres pozos, centrado en dos reingresos de bajo costo y en la perforación de un pozo multilateral en la formación Midale en pozo abierto.
ROK Resources (OTCQB:ROKRF)는 2025년 2분기 실적을 발표하며 펀즈 플로우(자금흐름) $9.0백만과 평균 생산량 3,729 boepd(액체 65%)를 보고했습니다. 회사는 2024년 말의 조정 순부채 $10.6백만조정 순잉여액 $3.8백만
2025년 2분기 당기순이익은 $3,278,000 ($0.01 주당)으로, 2024년 2분기의 $82,000에서 크게 개선되었습니다. 회사는 Normal Course Issuer Bid(NCIB)를 개시해 평균 주당 $0.19에 1,171,000주 보통주를 재매입·소각했습니다. ROK는 2025년 3분기에 두 건의 저비용 재진입과 Midale층의 오픈홀 멀티래터럴 시추를 포함한 3정의 자본 프로그램을 시작할 계획입니다.
ROK Resources (OTCQB:ROKRF) a publié ses résultats du deuxième trimestre 2025, annonçant un flux de fonds de $9.0 millions et une production moyenne de 3 729 boepd (65% liquides). La société a réalisé un net retournement financier avec un excédent net ajusté de $3.8 millions, comparé à une dette nette ajustée de $10.6 millions à la fin de 2024.
Le résultat net du T2 2025 s'est élevé à $3,278,000 ($0.01 par action), une amélioration significative par rapport à $82,000 au T2 2024. La société a lancé un Normal Course Issuer Bid (NCIB), rachetant et annulant 1,171,000 actions ordinaires à un prix moyen de $0.19 par action. ROK prévoit de lancer au T3 2025 un programme de financement de trois puits, axé sur deux reprises à faible coût et le forage d'un puits multilatéral en trou ouvert dans la formation Midale.
ROK Resources (OTCQB:ROKRF) hat die Finanzergebnisse für das 2. Quartal 2025 veröffentlicht und einen Mittelzufluss (funds flow) von $9.0 Millionen sowie eine durchschnittliche Produktion von 3,729 boepd (65% Flüssigkeiten) gemeldet. Das Unternehmen erzielte eine deutliche finanzielle Wende mit einem bereinigten Nettoüberschuss von $3.8 Millionen, gegenüber einer bereinigten Nettoverschuldung von $10.6 Millionen zum Jahresende 2024.
Der Nettogewinn für Q2 2025 belief sich auf $3,278,000 ($0.01 je Aktie), eine deutliche Verbesserung gegenüber $82,000 im Q2 2024. Das Unternehmen hat ein Normal Course Issuer Bid (NCIB) gestartet und 1,171,000 Stammaktien zum Durchschnittspreis von $0.19 je Aktie zurückgekauft und annulliert. ROK plant für Q3 2025 ein Drei-Bohrungs-Programm mit zwei kostengünstigen Re-Entries und der Bohrung eines offenen Midale-Multilateralbrunnens.
- Achieved $3.8 million Adjusted Net Surplus, improving from $10.6 million net debt in 2024
- Net income increased significantly to $3,278,000 in Q2 2025 from $82,000 in Q2 2024
- Funds flow improved to $8,977,000 in Q2 2025 from $5,001,000 in Q2 2024
- Funds from Operations margin increased to 65.1% from 32.1% year-over-year
- Successfully executed share buyback program through NCIB
- Production declined to 3,729 boepd from 3,937 boepd year-over-year
- Oil and Natural Gas Sales decreased to $16.6 million from $21.7 million in Q2 2024
- Operating Income decreased to $3.5 million from $6.4 million year-over-year
- Operating Netbacks declined to $10.42/boe from $17.87/boe in Q2 2024
NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES
REGINA, SK / ACCESS Newswire / August 14, 2025 / ROK Resources Inc. ("ROK" or the "Company") (TSXV:ROK)(OTCQB:ROKRF) has filed its interim Financial Results and Management Discussion & Analysis for the six months ended June 30, 2025.
Q2 2025 Financial and Operating Highlights
The Company remained on strategy and budget for Q2 2025 with Funds Flow of
Production in line with forecast: quarterly production averaged 3,729 boepd (
65% liquids).Working Capital Surplus: Adjusted Net Surplus of
$3.8 million as compared to$10.6 million of Adjusted Net Debt at year-end 2024.Initiated and Executed NCIB: Including July trading, the Company repurchased and cancelled a total of 1,171,000 common shares at an average price of
$0.19 per share leaving 218,598,315 common shares issued and outstanding.
Operations Update
The Company plans to initiate a three well capital program in Q3 2025 targeting two low-cost re-entries and the drilling of an open hole Midale multi lateral well. The balance of the 2025 development program is expected to commence in Q4 2025. The Company maintains flexibility to facilitate strategic growth when appropriate amid ongoing pricing volatility.
Q2 2025 Financials
The Company will continue to prioritize maintaining stable production with Funds Flow directed to increasing working capital surplus and/or be used to facilitate the purchase and cancelation of its outstanding common shares, as defined by the NCIB.
Financial (expressed in | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | ||||||||||||
Net income (loss) | 3,278 | 82 | 1,733 | (5,531 | ) | |||||||||||
Basic ($/share) | 0.01 | 0.00 | 0.01 | (0.03 | ) | |||||||||||
Diluted ($/share) | 0.01 | 0.00 | 0.01 | (0.03 | ) | |||||||||||
Funds flow | 8,977 | 5,001 | 16,126 | 11,343 | ||||||||||||
Basic ($/share) | 0.04 | 0.02 | 0.07 | 0.05 | ||||||||||||
Diluted ($/share) | 0.04 | 0.02 | 0.07 | 0.05 | ||||||||||||
Expenditures on property, plant and equipment | 1,034 | 5,276 | 1,703 | 7,095 | ||||||||||||
Operating | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | ||||||||||||
Oil and Natural Gas Sales | 16,641 | 21,742 | 37,621 | 42,674 | ||||||||||||
Royalties | (2,558 | ) | (3,782 | ) | (6,036 | ) | (7,737 | ) | ||||||||
Operating Expenses | (10,543 | ) | (11,555 | ) | (19,574 | ) | (22,279 | ) | ||||||||
Operating Income | 3,540 | 6,405 | 12,011 | 12,658 | ||||||||||||
Realized gain on commodity contracts | 6,869 | (65 | ) | 6,535 | 861 | |||||||||||
Processing and other income (1) | 553 | 647 | 1,190 | 1,509 | ||||||||||||
Funds from Operations | 10,962 | 6,987 | 19,736 | 15,028 | ||||||||||||
Average daily production | ||||||||||||||||
Crude oil (bbl/d) | 2,030 | 2,074 | 2,098 | 2,140 | ||||||||||||
NGLs (boe/d) | 376 | 411 | 396 | 435 | ||||||||||||
Natural gas (mcf/d) | 7,940 | 8,715 | 8,041 | 9,198 | ||||||||||||
Total (boe/d) | 3,729 | 3,937 | 3,834 | 4,107 | ||||||||||||
Operating Netback per boe | ||||||||||||||||
Oil and Natural Gas Sales | 49.03 | 60.68 | 54.21 | 57.08 | ||||||||||||
Royalties | (7.54 | ) | (10.56 | ) | (8.70 | ) | (10.35 | ) | ||||||||
Operating Expenses | (31.07 | ) | (32.25 | ) | (28.20 | ) | (29.80 | ) | ||||||||
Operating Netbacks ($/boe) | 10.42 | 17.87 | 17.31 | 16.93 | ||||||||||||
Funds from Operations ($/boe) | 31.90 | 19.50 | 28.04 | 20.10 | ||||||||||||
Operating Income Profit Margin | 21.3 | % | 29.4 | % | 31.9 | % | 29.7 | % | ||||||||
Funds from Operations Profit Margin | 65.1 | % | 32.1 | % | 51.7 | % | 35.2 | % | ||||||||
Share information | ||||||||||||||||
Common shares outstanding, end of period | 218,418,315 | 212,613,817 | ||||||||||||||
Weighted average basic shares outstanding | 218,418,348 | 211,916,317 | ||||||||||||||
Weighted average diluted shares outstanding | 218,418,348 | 265,105,802 | ||||||||||||||
Non-cash revenue derived from management fees that are recognized over time from deferred revenue is excluded from processing and other income for the calculation of Funds from Operations.
Complete reports and statements are available on SEDAR+ at www.sedarplus.ca and on the Company website www.rokresources.ca.
Normal Course Issuer Bid
The Company began an NCIB to purchase and cancel up to
About ROK
ROK is primarily engaged in exploring for petroleum and natural gas development activities in Alberta and Saskatchewan. It has offices located in both Regina, Saskatchewan, Canada and Calgary, Alberta, Canada. ROK's common shares are traded on the TSXV Venture Exchange under the trading symbol "ROK".
For further information, please contact:
Bryden Wright, President and Chief Executive Officer
Jared Lukomski, Senior Vice President, Land & Business Development
Phone: (306) 522-0011
Email: investor@rokresources.ca
Website: www.rokresources.ca
Non-IFRS Measures
The non-IFRS measures referred to above do not have any standardized meaning prescribed by IFRS Accounting Standards ("IFRS") and, therefore, may not be comparable to similar measures used by other companies. Management uses this non-IFRS measurement to provide its shareholders and investors with a measurement of the Company's financial performance and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, net income or other measures of financial performance calculated in accordance with IFRS. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used.
"Operating Income" is calculated by deducting royalties and operating expense from total sales revenue. Total sales revenue is comprised of oil and gas sales. The Company refers to Operating Income expressed per unit of production as an "Operating Netback". "Operating Income Profit Margin" is calculated by the Company as Operating Income as a percentage of oil and natural gas sales. "Funds from Operations" is calculated by adding other income and realized gains/losses on commodity contracts ("hedging") to Operating Income. "Funds from Operations Profit Margin" is calculated by the Company as Funds from Operations as a percentage of oil and natural gas sales.
The following table reconciles the aforementioned non-IFRS measures:
( | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | ||||||||||||
Oil and Natural Gas Sales | 16,641 | 21,742 | 37,621 | 42,674 | ||||||||||||
Royalties | (2,558 | ) | (3,782 | ) | (6,036 | ) | (7,737 | ) | ||||||||
Operating Expenses | (10,543 | ) | (11,555 | ) | (19,574 | ) | (22,279 | ) | ||||||||
Operating Income | 3,540 | 6,405 | 12,011 | 12,658 | ||||||||||||
Processing and other income (1) | 6,869 | (65 | ) | 6,535 | 861 | |||||||||||
Realized gain (loss) on commodity contracts | 553 | 647 | 1,190 | 1,509 | ||||||||||||
Funds from Operations | 10,962 | 6,987 | 19,736 | 15,028 | ||||||||||||
Sales volume (boe) | 339,366 | 358,303 | 694,023 | 747,563 | ||||||||||||
($ per boe) | ||||||||||||||||
Oil and Natural Gas Sales | 49.03 | 60.68 | 54.21 | 57.08 | ||||||||||||
Royalties | (7.54 | ) | (10.56 | ) | (8.70 | ) | (10.35 | ) | ||||||||
Operating Expenses | (31.07 | ) | (32.25 | ) | (28.20 | ) | (29.80 | ) | ||||||||
Operating Netback | 10.42 | 17.87 | 17.31 | 16.93 | ||||||||||||
Funds from Operations | 31.90 | 19.50 | 28.04 | 20.10 | ||||||||||||
Operating Income Profit Margin | 21.3 | % | 29.4 | % | 31.9 | % | 29.7 | % | ||||||||
Funds from Operations Profit Margin | 65.1 | % | 32.1 | % | 51.7 | % | 35.2 | % | ||||||||
Non-cash revenue derived from management fees that are recognized over time from deferred revenue is excluded from processing and other income for the calculation of Funds from Operations.
"Net Surplus (Debt)" includes the undiscounted face value of all indebtedness of the Company, such as the Credit Facility and Lease Obligations (each as defined within the Company's interim condensed financial statements for the six months ended June 30, 2025), net of Adjusted Working Capital. "Adjusted Working Capital" is calculated as current assets less current liabilities, excluding current portion of debt, lease liability, and RSU liability as defined on the Company's statement of financial position within the Company's interim condensed financial statements for the six months ended June 30, 2025. "Adjusted Net Surplus (Debt)" is calculated by removing the "mark-to-market fair value of the current portion of risk management contracts" and "lease obligations" (each as defined within the Company's interim condensed financial statements for the six months ended June 30, 2025) and non-cash deferred revenue liability derived from non-core business activities from Net Surplus (Debt).
The following table reconciles the aforementioned non-IFRS measures:
( | June 30, 2025 | December 31, 2024 | ||||||
Cash and cash equivalents | 3,316 | - | ||||||
Accounts receivable | 8,321 | 11,528 | ||||||
Prepaids and deposits | 828 | 284 | ||||||
Risk management contracts | 270 | (771 | ) | |||||
Accounts payable | (8,751 | ) | (15,346 | ) | ||||
Adjusted working capital | 3,984 | (4,305 | ) | |||||
Credit Facility (1) | - | (7,349 | ) | |||||
Lease obligations (1) | (398 | ) | (475 | ) | ||||
Adjusted working capital | 3,984 | (4,305 | ) | |||||
Net surplus (debt) | 3,586 | (12,129 | ) | |||||
Remove: Current portion of risk management contracts | (270 | ) | 771 | |||||
Remove: Lease obligations | 398 | 475 | ||||||
Remove: Deferred revenue liability (non-cash) | 46 | 322 | ||||||
Adjusted net surplus (debt) | 3,760 | (10,561 | ) | |||||
"Funds Flow" includes all cash from (used in) operating activities and is calculated before the change in non-cash working capital. "Funds Flow Basic ($/share)" and "Funds Flow Diluted ($/share)" are calculated by dividing Funds Flow by the weighted average number of basic shares and weighted average number of diluted shares outstanding, respectively, for the relevant period, as presented within the Company's interim condensed financial statements for the six months ended June 30, 2025. These are considered key measures of operating performance and capital management as they demonstrate the Company's ability to generate the cash necessary to repay debt and fund capital investments. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, each of these provide useful measures of ROK's ability to generate cash that are not subject to short-term movements in non-cash operating working capital.
The following table reconciles cash flow from operating activities to Funds Flow:
( | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | ||||||||||||
Cash flows provided by operating activities | 9,496 | 6,484 | 12,533 | 10,660 | ||||||||||||
Change in non-cash working capital | (519 | ) | (1,483 | ) | 3,593 | 683 | ||||||||||
Funds Flow | 8,977 | 5,001 | 16,126 | 11,343 | ||||||||||||
Conversion Measures
Production volumes and reserves are commonly expressed on a barrel of oil equivalent ("boe") basis whereby natural gas volumes are converted at the ratio of 6 thousand cubic feet ("Mcf") to 1 barrel of oil ("bbl"). Although the intention is to sum oil and natural gas measurement units into one basis for improved analysis of results and comparisons with other industry participants, boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In recent years, the value ratio based on the price of crude oil as compared to natural gas has been significantly higher than the energy equivalency of 6:1 and utilizing a conversion of natural gas volumes on a 6:1 basis may be misleading as an indication of value.
Abbreviations
bbls/d bopd | barrels per day barrels per day | |
boepd | barrels oil equivalent per day | |
IP | Initial Production | |
NGLs | Natural Gas Liquids | |
Mboe Mg/l | Thousands of barrels of oil equivalent Milligrams per Litre | |
MMboe | Millions of barrels of oil equivalent | |
PDP | Proved Developed Producing | |
TP | Total Proved Reserves | |
TPP | Total Proved and Probable Reserves | |
WTI CA$ US$ | West Texas Intermediate, the reference price paid in U.S. dollars at Cushing, Oklahoma for the crude oil standard grade Canadian dollars U.S. dollars |
Cautionary Statement Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the Company's objectives, goals, or future plans and the expected results thereof. Forward-looking statements are necessarily based on several estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include but are not limited to general business, economic and social uncertainties; litigation, legislative, environmental, and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in ROK's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. In regard to the NCIB discussed in this news release, although the Company presently intends to purchase Common Shares under the NCIB, there can be no assurance that acceptance by the TSXV of the NCIB will be achieved, or that subsequently any such purchases of Common Shares will be completed. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether because of new information, future events, or otherwise.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility of the adequacy or accuracy of this release.
SOURCE: ROK Resources Inc.
View the original press release on ACCESS Newswire
FAQ
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