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Highlights

  • Saturn Oil’s 3Q2024 revenue reached CAD 231.0 million, a 28.6% increase from the previous year
  • Earnings before income taxes improved to CAD 133.9 million, reversing a loss from pcp
  • The company completed a CAD 20.5 million asset acquisition, expanding its footprint in Central Alberta

Saturn Oil & Gas Inc. (TSX:SOIL) is a resource company. It focuses on acquiring, exploring, and developing petroleum and natural gas deposits in Canada.

In the third quarter of 2024 (3Q2024), the company’s revenue reached CAD 231.0 million, compared to CAD 179.6 million in the prior corresponding period (pcp), marking a 28.6% YoY growth. This surge was mainly due to higher production levels. Total expenses also increased to CAD 161.5 million in the quarter, compared to CAD 132.0 million in pcp, reflecting a 22.3% rise, largely due to higher operational costs.

During the reported period, the company saw a remarkable turnaround in its earnings, with earnings before income taxes reaching CAD 133.9 million, a substantial improvement from a loss of CAD 149.7 million in pcp. This positive outcome was partially fuelled by a gain in foreign exchange. Net earnings for the quarter stood at CAD 101.6 million, compared to a net loss of CAD 111.1 million posted in 3Q2023. It was driven by improved financial performance and a reduction in unrealized losses.

Additionally, the company reported an increase in total production for 3Q2024 compared to the prior year, which is a notable positive development. Moreover, it achieved higher financials, with industry-leading margins and a boost in cash generated from operations.

Recent Business Update

On November 5, 2024, the group announced the completion of a CAD 20.5 million tuck-in asset acquisition, further expanding its presence in Central Alberta. This acquisition includes additional land and approximately 700 boe/d of Brazeau Cardium production, enhancing the company's regional footprint.

Company Outlook

The company anticipates its production in the fourth quarter of 2024 will average between 39,000 and 40,000 boe/d. Over the next twelve months, management expects to achieve higher adjusted EBITDA, ranging from CAD 620 million to CAD 658 million.

Top 10 Shareholders

The top 10 shareholders of SOIL collectively account for approximately 47.54% of the company’s total shares. GMT Capital Corp. holds the largest stakes, with around 29.25%, and Libra Advisors, LLC holds about 11.52%.

Stock Information

Over the past month, the stock has increased by approximately 18.46%, while in the last three months, it has declined by around 1.28%. Additionally, the stock is trading below the average of its 52-week high of CAD 2.92 and its 52-week low of CAD 1.92. As of January 20, 2025, the stock closed at CAD 2.31.

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 January 20, 2025. The reference data in this report has been partly sourced from EODHD/Others.