Highlights

  • Saturn Oil & Gas reported 28.6% revenue growth in Q3 2024, driven by higher production
  • The company saw turnaround with CAD 101.6 million in net earnings for Q3 2024
  • Expanded Central Alberta footprint with asset acquisition worth CAD 20.5 million

Saturn Oil & Gas Inc. (TSX:SOIL) is a growing energy company. It works on developing high-quality, light oil-weighted assets. It has a market cap of CAD 434.33mn.

In Q3 2024, the company reported a revenue of CAD 231.0 million, up 28.6% from CAD 179.6 million in the prior corresponding period (pcp). This increase was chiefly due to higher production levels. Total expenses for the quarter were CAD 161.5 million, a 22.3% rise from the CAD 132.0 million reported in pcp.

The company also posted positive earnings before taxes of CAD 133.9 million, a notable turnaround from a loss of CAD 149.7 million in pcp. This improvement was partially supported by a foreign exchange gain. As a result, net earnings for Q3 2024 were CAD 101.6 million, compared to a net loss of CAD 111.1 million in the previous year.

Recent Business Update

On November 5, 2024, the company announced the successful closure of a CAD 20.5 million tuck-in asset acquisition. This acquisition significantly expands its footprint in Central Alberta, adding more land and approximately 700 barrels of oil equivalent per day (boe/d) of Brazeau Cardium production.

Additionally, the company reported healthy drilling activity in Q3 2024, with development capital expenditures totaling CAD 80.8 million. These funds were used to drill 48 wells (41.2 net) across the company’s core areas. Of these, 32 gross wells (29.9 net) were completed and successfully tied in.

Company Outlook

The company expects its fourth-quarter 2024 production to average between 39,000 and 40,000 boe/d. Looking ahead to the next twelve months, management projects a higher adjusted EBITDA, with estimates ranging from CAD 620 million to CAD 658 million.

Top 10 Shareholders:

The top 10 shareholders of SOIL hold about 47.13% of the total shares. GMT Capital Corp. has the largest stake, at around 29.25%. Libra Advisors, LLC owns approximately 11.52%.

Stock Information

The stock has declined by approximately 7.07% over the past month and around 18.60% over the past three months. Additionally, it is currently trading below the average of its 52-week high of CAD 2.92 and its 52-week low of CAD 1.94. As of November 19, 2024, the stock’s closing price is CAD 2.10.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 18, 2024. The reference data in this report has been partly sourced from EODHD/Others.