- Pipestone Energy (TSXV:PIPE) has announced its first quarter results, after an unprecedented quarter for the oil and gas industry
- Revenue for the quarter was C$32 million, while net income was $15.5 million
- North American energy companies have been significantly impacted by macroeconomic factors this quarter, such as the coronavirus pandemic and an oil price war
- Consequently, Pipestone’s full-year capital expenditure has been revised down to roughly $60 million
- Pipestone Energy (PIPE) is trading down 3.5 per cent at $0.55 per share with a market cap of $104 million
Pipestone Energy (TSXV:PIPE) has announced its first quarter results, after an unprecedented quarter for the oil and gas industry.
The COVID-19 pandemic has decreased demand for oil, driving down oil price benchmarks around the world.
This, coupled with the recent oil price war between Russia and OPEC+ countries, has savaged energy companies around the world.
However, North American energy producers have been especially impacted, due to the high production costs in the region.
In the first quarter, this small-scale energy company shelled out just under C$30 million in capital expenditure to advance production at its self-titled Pipestone project.
The company brought online three new wells drilled at one section of the site, drilled a further six wells at another section of the site and invested heavily into site infrastructure to support a barrels per day production climb.
All in all, the company’s revised capital expenditure guidance now sits between $55 and $65 million, with the company on track to land at the mid-point of that guidance.
Revenue for the quarter was $32 million, with net income at $15.5 million.
Pipestone’s CEO, Paul Wanklyn said he was extremely proud of the company, as it navigates the turbulent economic waters caused by the coronavirus.
“We have realty swiftly to cut costs to survive this crisis with appropriate level of liquidity for the company.
“I am confident that a recovery in oil prices will take place as the world emerges from the current demand-driven crisis and that Pipestone will be positioned to react quickly to positive changes as they come,” he said.
Pipestone Energy (TSXV:PIPE) is trading down 3.5 per cent, with shares trading for $0.55 at 3:01pm EDT.
