Q2 2023 HIGHLIGHTS
Production up 8% YoY: Production was up 8% from 3,054 boepd in Q2 2022, to 3,297 boepd in Q2 2023.
Net Debt reduced by 90% YoY: Net debt was reduced from
Term loan fully repaid: The Company fully repaid its non-revolving Term Loan, 20 months prior to expiry without penalty. Since
Credit facility renewed: The Company renewed its
2024 - 2025 hedges unwound: The Company made the strategic decision to unwind certain 12 to 24-month commodity swap hedges with the elimination of this requirement with the termination of the Term Loan.
Lithium National Instrument 43-101 Technical Report Released: The Company announced the results of
Delineated Viewfield lithium asset: Drilled the second lithium test well at Viewfield and confirmed high Lithium concentrations.
2023 CORPORATE OUTLOOK
The first six months of 2023 were focused on corporate debt reduction, accretive asset purchases, non-core divestitures and the integration of new assets, as well as the restructuring of the Company's hedge book to provide greater exposure to an inclining commodity price environment. Total debt was reduced by over 90% year-over-year, which has provided the Company with the flexibility to allocate additional development capital across some of the most economic plays in
In summary, the Company is pleased to provide the following guidance for the remainder of 2023: Capital budget unchanged at
Exit 2023 production target of 4,500 boepd
Exit 2023 net debt of
About ROK
ROK is primarily engaged in exploring for petroleum and natural gas development activities in
Contact:
Tel: (306) 522-0011
Email: investor@rokresources.ca
Non-IFRS Measures
The non-IFRS measures referred to above do not have any standardized meaning prescribed by International Financial Reporting 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. 'Net Debt' includes all indebtedness of the Company, such as the Term Loan, Credit Facility, and Senior Loan Facility (as defined within the Company's interim condensed financial statements for the six months ended
'Funds Flow' includes all cash for (used in) operating activities and is calculated before the change in non-cash working capital. 'Funds flow', 'funds flow basic ($/share)' and 'funds flow diluted ($/share)' are capital management measures and are key measures of operating performance 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, funds flow, funds flow basic ($/share) and funds flow diluted ($/share) provide useful measures of ROK's ability to generate cash that are not subject to short-term movements in non-cash operating working capital. Funds flow on a per share basis (basic and diluted) is calculated by dividing funds flow by the weighted average number of basic shares and weighted average number of diluted shares outstanding for the relevant period.
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