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Highlights

  • SOIL’s Q2 2024 revenue rose to CAD 186 million, attributed to higher production and realised prices.
  • Total expenses decreased slightly to CAD 137.3 million compared to CAD 140.9 million in Q2 2023.
  • The company plans an average production of 38,000-40,000 BOE/d in the next year.

Saturn Oil & Gas Inc. (TSX:SOIL) is a resource company based in Canada with a primary focus on its oil and gas properties in Saskatchewan. It specializes in acquiring, exploring, and developing petroleum and natural gas deposits. Its market cap is CAD 460.84 million.

In the second quarter of 2024, the company reported a revenue of CAD 186.0 million, up from CAD 162.2 million in the previous corresponding period. This 14.7% increase in revenue was mainly due to higher production levels and realised prices. Total expenses decreased slightly to CAD 137.3 million, down from CAD 140.9 million in Q2 2023.

However, earnings before income taxes dropped to CAD 40.4 million, a decrease of 40.9% compared to CAD 68.4 million in pcp. This decline was partly due to a loss in derivatives. As a result, net earnings also fell to CAD 41.8 million, down 18.4% from CAD 51.2 million pcp.

Recent Business Update

In Q2 2024, the company did CAD 22.5 million of capital expenditures. It included drilling seven gross (6.0 net) wells. One in West Central Saskatchewan and six in Southeast Saskatchewan.

Additionally, the company completed the purchase of two oil-weighted asset packages in its core operating areas of Southern Saskatchewan, acquiring approximately 13,000 BOE/d for a total cash outlay of nearly CAD 534.8 million.

Company Outlook

The company aims for an average production of 38,000 to 40,000 BOE/d over the next twelve months. Additionally, management anticipates achieving a higher adjusted EBITDA, in the range of CAD 620- 658 million during the same period.

Top 10 Shareholders:

The top 10 shareholders of SOIL own about 47.14% of the total shares. GMT Capital Corp. has the largest stake at approximately 29.25%. Libra Advisors, LLC follows with around 11.52%.

Price Information

The stock price of SOIL has dropped approximately 7.99% over the past month and about 10.15% over the last three months. It is currently trading below the average of its 52-week high of CAD 2.92 and 52-week low of CAD 2.16. As of 24 Oct 2024, the stock’s closing price is CAD 2.30.

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 October 24, 2024. The reference data in this report has been partly sourced from EODHD/Others.