- Pipestone Energy (PIPE) has posted a substantial net loss of C$19.869 million in its lasts quarterly report
- Despite managing quarterly production to meet its commitments, a historically difficult few months for the oil industry resulted in the company’s substantial losses
- However, the company recorded a big jump in sales for the quarter, going from $5.457 million in 2019’s June quarter to $26.380 million
- $19.893 million in capital also significantly hindered the company’s profitability
- Pipestone Energy Corp (PIPE) is trading grey is in the grey and is trading at $0.56 per share
Pipestone Energy (PIPE) has posted a substantial net loss of C$19.869 million in its lasts quarterly report.
Despite managing quarterly production to meet its commitments, a historically difficult few months for the oil industry resulted in the company’s substantial losses. For reference, the company made $4.869 million in profit during 2019’s same quarter.
The company attempted to hedge against the hit by primarily flowing leaner, higher rate gas wells while limiting higher condensate wells. This led to a an average of 16,772 barrels produced per day, made up of 29 per cent condensate and 43 per cent total liquids.
The company made sales in the June quarter that totalled $26.380 million, which was well up from the $5.457 million it produced the previous year’s June quarter.
However, capital expenditures of $19.893 million, alongside the production costs for the quarter significantly ate into the company’s profitability. The average crude oil sale price was $38.34 per barrel, well down from the $79.98 per barrel in 2019.
President and CEO of Pipestone Energy Paul Wanklyn said the company had nimbly navigated its production during the second quarter to respond to historic commodity price volatility.
“Our ability to generate positive cash flow before hedging gains during the quarter, despite record low condensate pricing, is a testament to our asset quality.
“With the recently announced financing and the capital cost improvements demonstrated during this quarter, our company is on track to continue delivering efficient production and cash flow growth with top decline returns on capital over the next two years,” he said.
Pipestone Energy (PIPE) is in the grey and is trading at $0.56 per share at 1:45 pm EDT.