All amounts in this news release are presented in |
HIGHLIGHTS
- Third quarter total production was 103,192 BOE per day (up 8% from the prior quarter) including liquids production of 66,625 barrels per day (up 14% from the prior quarter)
- Adjusted funds flow was
$263.7 million in the third quarter, which exceeded capital spending of$121.4 million , generating free cash flow(1) of$142.3 million - Total return of capital to shareholders during the third quarter was
$67.7 million (inclusive of share repurchases and dividends), with$200.8 million returned through the first three quarters of 2023 - On track to return approximately 70% of full-year 2023 free cash flow to shareholders which is expected to result in fourth quarter return of capital of approximately
$100 million , based on the current commodity price environment.Enerplus has repurchased$41 million of stock in the fourth quarter throughNovember 1 , with additional repurchases planned - 2023 total production and liquids production guidance was increased by 2,000 BOE per day and 1,000 barrels per day at the midpoint, respectively, due to continued strong operational performance
- 2023 capital spending guidance was narrowed to
$520 to$540 million (from the previous range of$510 to$550 million ) Enerplus expects to exceed its 2030 scope 1 and 2 greenhouse gas ("GHG") emissions intensity reduction target this year, representing an approximate 40% reduction from the 2021 baseline (and 55% from 2019)
(1) | This is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" section for more information. |
"
THIRD QUARTER SUMMARY
Production in the third quarter of 2023 was 103,192 BOE per day, an increase of 8% compared to the prior quarter and 4% lower than the same period a year ago. Crude oil and natural gas liquids production in the third quarter of 2023 was 66,625 barrels per day, an increase of 14% compared to the prior quarter and 3% lower than the same period a year ago. Production increased from the prior quarter primarily due to strong well productivity and operational execution in
The Company's realized Marcellus natural gas price differential widened to
In the third quarter of 2023,
Capital spending totaled
Net debt was
OPERATIONS
Marcellus production averaged 145 MMcf per day during the third quarter of 2023, a decrease of 12% compared to the same period in 2022 and 6% lower than the prior quarter. The reduced Marcellus production reflects the limited capital activity directed to the asset in 2023 following the lower natural gas price environment compared to 2022.
RETURN OF CAPITAL TO SHAREHOLDERS
In the third quarter,
Subsequent to
The Board of Directors approved a fourth quarter dividend of
Based on current market conditions and the Company's low financial leverage,
UPDATED GHG EMISSIONS TARGETS
As a result of the outperformance noted above,
- Scope 1 GHG emissions intensity of 7 kg CO2e/BOE by 2030; an approximate 60% reduction from 2023
- Scope 1 & 2 GHG emissions intensity of 13 kg CO2e/MBOE by 2030; an approximate 30% reduction from 2023
- Methane emissions intensity of 0.02 kg CH4/MBOE by 2030; an approximate 45% reduction from 2023
In addition,
2023 GUIDANCE UPDATE
Capital spending guidance in 2023 has been narrowed to
Annual production guidance has been revised to 98,000 to 99,000 BOE per day from the prior range of 94,500 to 98,500 BOE per day, representing an increase of 2,000 BOE per day at the midpoint. Annual liquids production guidance has been revised to 60,500 to 61,500 barrels per day from the prior range of 58,500 to 61,500 barrels per day, representing an increase of 1,000 barrels per day at the midpoint.
A summary of the changes to
2023 Guidance Summary
Updated Guidance | Previous Guidance | |
Capital spending | ||
Average total production | 98,000 – 99,000 BOE/day | 94,500 – 98,500 BOE/day |
Average liquids production | 60,500 – 61,500 bbls/day | 58,500 – 61,500 bbls/day |
Fourth quarter total production | 95,000 – 99,000 BOE/day | n/a |
Fourth quarter liquids production | 60,500 – 64,500 bbls/day | n/a |
Average production tax rate (% of net sales, before transportation) | 8% (No change) | 8 % |
Operating expense | $10.75 - | |
Transportation expense | ||
Cash G&A expense | ||
Current tax expense | 3 - 4% of adjusted funds flow before tax (No change) | 3 - 4% of adjusted funds flow before tax |
2023 Differential/Basis Outlook(1)
Updated Guidance | Previous Guidance | |
(compared to WTI crude oil) | Par with WTI | |
Marcellus natural gas sales price differential (compared to last day NYMEX natural gas) |
(1) Excluding transportation costs. |
Q3 2023 Conference Call Details
A conference call hosted by
Date: | |
Time: | |
Dial-In: | 1-888-390-0546 (Toll Free) |
Conference ID: | 18470310 |
Audiocast: | https://app.webinar.net/Vl8X1bX2M37 |
To ensure timely participation in the conference call, callers are encouraged to join 15 minutes prior to the start time to register for the event. A telephone replay will be available for 30 days following the conference call and can be accessed at the following numbers:
Replay Dial-In: | 1-888-390-0541 (Toll Free) |
Replay Passcode: | 470310 # |
PRICE RISK MANAGEMENT
The following is a summary of
WTI Crude Oil ($/bbl)(1)(2) | ||||||
Oct 1, 2023 – | Jan 1, 2024 – | |||||
Swaps | ||||||
Volume (bbls/day) | 10,000 | – | – | |||
Brent - WTI Spread | – | – | ||||
3 Way Collars | ||||||
Volume (bbls/day) | 10,000 | 5,000 | – | |||
Sold Puts | – | |||||
Purchased Puts | – | |||||
Sold Calls | – | |||||
Collars | ||||||
Volume (Mcf/day) | – | – | 50,000 | |||
Volume (bbls/day)(3) | 2,000 | – | – | |||
Purchased Puts | – | |||||
Sold Calls | – |
(1) | The total average deferred premium spent on our outstanding crude oil contracts is |
(2) | Transactions with a common term have been aggregated and presented at weighted average prices and volumes. |
(3) | Outstanding commodity derivative instruments acquired as part of the Company's acquisition of Bruin E&P Holdco, LLC completed in 2021. |
THIRD QUARTER 2023 PRODUCTION AND OPERATIONAL SUMMARY TABLES
Summary of Average Daily Production(1)
Three Months Ended | Nine Months Ended | |||||||||||||||
Marcellus | Other(2) | Total | Marcellus | Other(2) | Total | |||||||||||
Tight oil (bbl/d) | 53,002 | - | 1,193 | 54,195 | 48,815 | - | 875 | 49,690 | ||||||||
Total crude oil (bbl/d) | 53,002 | - | 1,193 | 54,195 | 48,815 | - | 875 | 49,690 | ||||||||
Natural gas liquids (bbl/d) | 12,347 | - | 83 | 12,430 | 10,774 | - | 97 | 10,871 | ||||||||
Shale gas (Mcf/d) | 74,120 | 144,523 | 758 | 219,401 | 69,299 | 159,509 | 783 | 229,591 | ||||||||
Total natural gas (Mcf/d) | 74,120 | 144,523 | 758 | 219,401 | 69,299 | 159,509 | 783 | 229,591 | ||||||||
Total production (BOE/d) | 77,702 | 24,087 | 1,403 | 103,192 | 71,139 | 26,585 | 1,102 | 98,826 |
(1) | Table may not add due to rounding. |
(2) | Largely comprises the |
Summary of Wells Drilled(1)
Three months ended | Nine months ended | ||||||||||
Operated | Non-Operated | Operated | Non-Operated | ||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||||
15 | 12.0 | 11 | 0.5 | 46 | 39.6 | 66 | 7.0 | ||||
Marcellus | - | - | 14 | 0.4 | - | - | 40 | 0.8 | |||
- | - | - | - | 3 | 2.9 | - | - | ||||
Total | 15 | 12.0 | 25 | 0.9 | 49 | 42.5 | 106 | 7.7 |
(1) Table may not add due to rounding. |
Summary of Wells Brought On-Stream(1)
Three months ended | Nine months ended | ||||||||||
Operated | Non-Operated | Operated | Non-Operated | ||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||||
19 | 17.2 | 26 | 3.3 | 46 | 40.0 | 40 | 6.5 | ||||
Marcellus | - | - | 1 | 0.0 | - | - | 22 | 0.3 | |||
3 | 2.9 | - | - | 3 | 2.9 | 10 | 0.2 | ||||
Total | 22 | 20.2 | 27 | 3.3 | 49 | 43.0 | 72 | 7.0 |
(1) Table may not add due to rounding. |
Three months ended | Nine months ended | |||||||||||
SELECTED FINANCIAL RESULTS | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Financial (US$, thousands, except ratios) | ||||||||||||
Net Income/(Loss) | $ | 127,655 | $ | 305,945 | $ | 339,374 | $ | 583,594 | ||||
Adjusted Net Income(1) | 137,184 | 207,913 | 362,317 | 525,992 | ||||||||
Cash Flow from Operating Activities | 212,245 | 409,946 | 640,244 | 856,798 | ||||||||
Adjusted Funds Flow | 263,684 | 355,622 | 720,717 | 914,910 | ||||||||
Dividends to Shareholders - Declared | 12,612 | 11,516 | 36,361 | 29,374 | ||||||||
Net Debt | 212,072 | 391,059 | 212,072 | 391,059 | ||||||||
Capital Spending | 121,354 | 114,459 | 440,943 | 346,357 | ||||||||
Property and Land Acquisitions | 2,275 | 16,252 | 5,661 | 19,662 | ||||||||
Property and Land Divestments | 1,563 | 4,214 | 1,702 | 19,386 | ||||||||
Net Debt to Adjusted Funds Flow Ratio | 0.2x | 0.3x | 0.2x | 0.3x | ||||||||
Financial per Weighted Average Shares Outstanding | ||||||||||||
Net Income/(Loss) - Basic | $ | 0.61 | $ | 1.32 | $ | 1.59 | $ | 2.47 | ||||
Net Income/(Loss) - Diluted | 0.59 | 1.28 | 1.54 | 2.40 | ||||||||
Weighted Average Number of Shares Outstanding (000's) - Basic | 210,337 | 231,565 | 213,621 | 237,835 | ||||||||
Weighted Average Number of Shares Outstanding (000's) - Diluted | 216,857 | 239,136 | 220,093 | 245,403 | ||||||||
Selected Financial Results per BOE(2)(3) | ||||||||||||
Crude Oil & Natural Gas Sales(4) | $ | 48.65 | $ | 66.90 | $ | 45.44 | $ | 67.38 | ||||
Commodity Derivative Instruments | 0.56 | (8.92) | 1.99 | (11.19) | ||||||||
Operating Expenses | (10.17) | (10.47) | (10.32) | (10.10) | ||||||||
Transportation Costs | (3.87) | (4.16) | (4.04) | (4.29) | ||||||||
Production Taxes | (4.21) | (4.86) | (3.65) | (4.76) | ||||||||
General and Administrative Expenses | (1.27) | (1.10) | (1.31) | (1.18) | ||||||||
Cash Share-Based Compensation | (0.20) | (0.12) | (0.04) | (0.13) | ||||||||
Interest, Foreign Exchange and Other Expenses | (0.40) | (0.61) | (0.36) | (0.64) | ||||||||
Current Income Tax Expense | (1.32) | (0.80) | (1.00) | (0.93) | ||||||||
Adjusted Funds Flow | $ | 27.77 | $ | 35.86 | $ | 26.71 | $ | 34.16 |
Three months ended | Nine months ended | |||||||||||
SELECTED OPERATING RESULTS | ||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Average Daily Production(3) | ||||||||||||
Crude Oil (bbls/day) | 54,195 | 57,482 | 49,690 | 51,146 | ||||||||
Natural Gas Liquids (bbls/day) | 12,430 | 10,900 | 10,871 | 9,319 | ||||||||
Natural Gas (Mcf/day) | 219,401 | 236,558 | 229,591 | 225,845 | ||||||||
Total (BOE/day) | 103,192 | 107,808 | 98,826 | 98,106 | ||||||||
% Crude Oil and Natural Gas Liquids | 65 % | 63 % | 61 % | 62 % | ||||||||
Average Selling Price(3)(4) | ||||||||||||
Crude Oil (per bbl) | $ | 82.66 | $ | 92.48 | $ | 77.50 | $ | 97.44 | ||||
Natural Gas Liquids (per bbl) | 19.21 | 32.04 | 18.36 | 34.13 | ||||||||
Natural Gas (per Mcf) | 1.37 | 6.53 | 1.91 | 5.79 | ||||||||
Net Wells Drilled | 12.9 | 9.0 | 50.2 | 40.2 |
(1) | This non‑GAAP measure may not be directly comparable to similar measures presented by other entities See "Non-GAAP and Other Financial Measures" section in this news release. |
(2) | Non‑cash amounts have been excluded. |
(3) | Based on net production volumes. See "Basis of Presentation" section in this news release. |
(4) | Before transportation costs and commodity derivative instruments. |
Condensed Consolidated Balance Sheets
(US$ thousands) unaudited | ||||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 46,205 | $ | 38,000 | ||
Accounts receivable, net of allowance for doubtful accounts | 305,991 | 276,590 | ||||
Other current assets | 57,332 | 56,552 | ||||
Derivative financial assets | 2,047 | 36,542 | ||||
411,575 | 407,684 | |||||
Property, plant and equipment: | ||||||
Crude oil and natural gas properties (full cost method) | 1,520,074 | 1,322,904 | ||||
Other capital assets | 9,501 | 10,685 | ||||
Property, plant and equipment | 1,529,575 | 1,333,589 | ||||
Other long-term assets | 7,028 | 21,154 | ||||
Right-of-use assets | 21,117 | 20,556 | ||||
Deferred income tax asset | 143,123 | 154,998 | ||||
Total Assets | $ | 2,112,418 | $ | 1,937,981 | ||
Liabilities | ||||||
Current liabilities | ||||||
Accounts payable | $ | 375,806 | $ | 398,482 | ||
Current portion of long-term debt | 80,600 | 80,600 | ||||
Derivative financial liabilities | 7,324 | 10,421 | ||||
Current portion of lease liabilities | 11,655 | 13,664 | ||||
475,385 | 503,167 | |||||
Long-term debt | 177,677 | 178,916 | ||||
Asset retirement obligation | 117,903 | 114,662 | ||||
Lease liabilities | 11,502 | 9,262 | ||||
Deferred income tax liability | 114,069 | 55,361 | ||||
Total Liabilities | 896,536 | 861,368 | ||||
Shareholders' Equity | ||||||
Share capital – authorized unlimited common shares, no par value Issued and outstanding: | 2,745,597 | 2,837,329 | ||||
Paid-in capital | 43,887 | 50,457 | ||||
Accumulated deficit | (1,272,261) | (1,509,832) | ||||
Accumulated other comprehensive loss | (301,341) | (301,341) | ||||
1,215,882 | 1,076,613 | |||||
Total Liabilities & Shareholders' Equity | $ | 2,112,418 | $ | 1,937,981 |
Condensed Consolidated Statements of Income/(Loss) and Comprehensive Income/(Loss)
Three months ended |
Nine months ended | ||||||||||||||||||||||||||||||||
(US$ thousands, except per share amounts) unaudited | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||
Crude oil and natural gas sales | $ | 461,836 | $ | 663,532 | $ | 1,225,957 | $ | 1,804,701 | |||||||||||||||||||||||||
Commodity derivative instruments gain/(loss) | (14,602) | 56,995 | 20,324 | (197,368) | |||||||||||||||||||||||||||||
447,234 | 720,527 | 1,246,281 | 1,607,333 | ||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||
Operating | 96,573 | 103,841 | 278,493 | 270,451 | |||||||||||||||||||||||||||||
Transportation | 36,745 | 41,312 | 108,946 | 114,949 | |||||||||||||||||||||||||||||
Production taxes | 39,959 | 48,169 | 98,847 | 127,351 | |||||||||||||||||||||||||||||
General and administrative | 18,862 | 15,745 | 53,368 | 48,013 | |||||||||||||||||||||||||||||
Depletion, depreciation and accretion | 91,825 | 82,225 | 264,051 | 219,006 | |||||||||||||||||||||||||||||
Interest | 4,832 | 6,471 | 12,742 | 18,624 | |||||||||||||||||||||||||||||
Foreign exchange (gain)/loss | 641 | 16,109 | (250) | 13,764 | |||||||||||||||||||||||||||||
Other expense/(income) | (7,935) | (368) | (6,873) | 12,020 | |||||||||||||||||||||||||||||
281,502 | 313,504 | 809,324 | 824,178 | ||||||||||||||||||||||||||||||
Income/(Loss) Before Taxes | 165,732 | 407,023 | 436,957 | 783,155 | |||||||||||||||||||||||||||||
Current income tax expense/(recovery) | 12,500 | 7,929 | 27,000 | 24,929 | |||||||||||||||||||||||||||||
Deferred income tax expense/(recovery) | 25,577 | 93,149 | 70,583 | 174,632 | |||||||||||||||||||||||||||||
Net Income/(Loss) | $ | 127,655 | $ | 305,945 | $ | 339,374 | $ | 583,594 | |||||||||||||||||||||||||
Other Comprehensive Income/(Loss) | |||||||||||||||||||||||||||||||||
Unrealized gain/(loss) on foreign currency translation | — | 28,582 | — | 29,939 | |||||||||||||||||||||||||||||
Foreign exchange gain/(loss) on net investment hedge, net | — | (24,276) | — | (32,995) | |||||||||||||||||||||||||||||
Total Comprehensive Income/(Loss) | $ | 127,655 | $ | 310,251 | $ | 339,374 | $ | 580,538 | |||||||||||||||||||||||||
Net Income/(Loss) per Share | |||||||||||||||||||||||||||||||||
Basic | $ | 0.61 | $ | 1.32 | $ | 1.59 | $ | 2.47 | |||||||||||||||||||||||||
Diluted | $ | 0.59 | $ | 1.28 | $ | 1.54 | $ | 2.40 |
Condensed Consolidated Statements of Cash Flows
Three months ended | Nine months ended | |||||||||||
(US$ thousands) unaudited | 2023 | 2022 | 2023 | 2022 | ||||||||
Operating Activities | ||||||||||||
Net income/(loss) | $ | 127,655 | $ | 305,945 | $ | 339,374 | $ | 583,594 | ||||
Non-cash items add/(deduct): | ||||||||||||
Depletion, depreciation and accretion | 91,825 | 82,225 | 264,051 | 219,006 | ||||||||
Changes in fair value of derivative instruments | 19,924 | (145,480) | 33,515 | (103,423) | ||||||||
Deferred income tax expense/(recovery) | 25,577 | 93,149 | 70,583 | 174,632 | ||||||||
Unrealized foreign exchange (gain)/loss on working capital | 679 | 16,997 | (33) | 14,876 | ||||||||
Share-based compensation and general and administrative | 4,881 | 3,665 | 16,869 | 13,959 | ||||||||
Other expense/(income) | (5,411) | (289) | (2,322) | 12,267 | ||||||||
Amortization of debt issuance costs | 388 | 366 | 1,176 | 1,070 | ||||||||
Translation of | — | (956) | — | (1,071) | ||||||||
Investing activities in Other income | (1,834) | — | (2,496) | — | ||||||||
Asset retirement obligation settlements | (2,448) | (1,560) | (11,318) | (12,704) | ||||||||
Changes in non-cash operating working capital | (48,991) | 55,884 | (69,155) | (45,408) | ||||||||
Cash flow from/(used in) operating activities | 212,245 | 409,946 | 640,244 | 856,798 | ||||||||
Financing Activities | ||||||||||||
Drawings from/(repayment of) bank credit facilities | 42,172 | (130,315) | 79,361 | (186,015) | ||||||||
Repayment of senior notes | (21,000) | (21,000) | (80,600) | (100,600) | ||||||||
Purchase of common shares under Normal Course Issuer Bid | (55,127) | (111,800) | (164,465) | (241,935) | ||||||||
Share-based compensation – tax withholdings settled in cash | (50) | — | (16,470) | (11,567) | ||||||||
Dividends | (12,612) | (11,516) | (36,361) | (29,374) | ||||||||
Cash flow from/(used in) financing activities | (46,617) | (274,631) | (218,535) | (569,491) | ||||||||
Investing Activities | ||||||||||||
Capital and office expenditures | (170,635) | (121,382) | (439,440) | (311,449) | ||||||||
Canadian divestments | 15,128 | — | 27,362 | — | ||||||||
Property and land acquisitions | (2,275) | (16,252) | (5,661) | (19,662) | ||||||||
Property and land divestments | 1,563 | 4,214 | 4,202 | 6,333 | ||||||||
Cash flow from/(used in) investing activities | (156,219) | (133,420) | (413,537) | (324,778) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (679) | 14,884 | 33 | 18,308 | ||||||||
Change in cash and cash equivalents | 8,730 | 16,779 | 8,205 | (19,163) | ||||||||
Cash and cash equivalents, beginning of period | 37,475 | 25,406 | 38,000 | 61,348 | ||||||||
Cash and cash equivalents, end of period | $ | 46,205 | $ | 42,185 | $ | 46,205 | $ | 42,185 |
About
NOTICE REGARDING INFORMATION CONTAINED IN THIS NEWS RELEASE
Readers are encouraged to review the 2023 interim Management's Discussion & Analysis (MD&A) and financial statements, and 2022 MD&A and financial statements filed on SEDAR+ and as part of our Form 6-K and Form 40-F, respectively, on EDGAR concurrently with this news release for more complete disclosure on our operations.
Currency and Accounting Principles
All amounts in this news release are stated in
Barrels of Oil Equivalent
This news release contains references to "BOE" (barrels of oil equivalent), "MBOE" (one thousand barrels of oil equivalent), and "MMBOE" (one million barrels of oil equivalent).
Basis of Presentation
All production volumes presented in this news release are reported on a "net" basis (the Company's working interest share after deduction of royalty obligations, plus the Company's royalty interests), unless expressly indicated that it is being presented on a "gross" basis.
All references to "liquids" in this news release include light and medium crude oil, heavy oil and tight oil (all together referred to as "crude oil") and NGLs on a combined basis. All references to "natural gas" in this news release include conventional natural gas and shale gas on a combined basis.
FORWARD-LOOKING INFORMATION AND STATEMENTS
This news release contains certain forward-looking information and statements ("forward-looking information") within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "guidance", "ongoing", "may", "will", "project", "plans", "budget", "strategy" and similar expressions are intended to identify forward-looking information. In particular, but without limiting the foregoing, this news release contains forward-looking information pertaining to the following: 2023 production and capital spending guidance; fourth quarter 2023 production guidance;
The forward-looking information contained in this news release reflects several material factors and expectations and assumptions of
In addition, our 2023 guidance described in this news release is based on rest of year commodity prices of: a WTI price of
The forward-looking information included in this news release is not a guarantee of future performance and should not be unduly relied upon. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information including, without limitation: continued instability, or further deterioration, in global economic and market environment, including from inflation and/or the
The forward-looking information contained in this news release speaks only as of the date of this news release.
NON-GAAP AND OTHER FINANCIAL MEASURES
Readers are referred to "Non-GAAP Measures" in
Non-GAAP Financial Measures
This news release includes references to certain non-GAAP financial measures and non-GAAP ratios used by the Company to evaluate its financial performance, financial position or cash flow. Non-GAAP financial measures are financial measures disclosed by a company that (a) depict historical or expected future financial performance, financial position or cash flow of a company, (b) with respect to their composition, exclude amounts that are included in, or include amounts that are excluded from, the composition of the most directly comparable financial measure disclosed in the primary financial statements of the company, (c) are not disclosed in the financial statements of the company and (d) are not a ratio, fraction, percentage or similar representation. Non-GAAP ratios are financial measures disclosed by a company that are in the form of a ratio, fraction, percentage or similar representation that has a non-GAAP financial measure as one or more of its components, and that are not disclosed in the financial statements of the company.
These non-GAAP financial measures and non-GAAP ratios do not have standardized meanings or definitions as prescribed by U.S. GAAP and may not be comparable with the calculation of similar financial measures by other entities.
For each measure, we have: (a) indicated the composition of the measure; (b) identified the most directly comparable GAAP financial measure and provided comparative detail where appropriate; (c) indicated the reconciliation of the measure to the most directly comparable GAAP financial measure to the extent one exists; and (d) provided details on the usefulness of the measure for the reader. These non-GAAP financial measures and non-GAAP ratios should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
"Adjusted net income/(loss)" is used by
Three months ended | |||||||
($ millions) | 2023 | 2022 | |||||
Net income/(loss) | $ | 127.7 | $ | 305.9 | |||
Unrealized derivative instrument, foreign exchange and marketable securities (gain)/loss | 15.6 | (128.5) | |||||
Other expense/(income) related to investing activities | (1.4) | - | |||||
Tax effect on above items | (4.7) | 30.5 | |||||
Adjusted net income/(loss) | $ | 137.2 | $ | 207.9 | |||
Adjusted net income/(loss) per share (basic) | $ | 0.65 | $ | 0.90 |
"Free cash flow" is used by
Three months ended | |||||
($ millions) | 2023 | 2022 | |||
Cash flow from/(used in) operating activities | $ | 212.2 | $ | 409.9 | |
Asset retirement obligation settlements | 2.5 | 1.6 | |||
Changes in non-cash operating working capital | 49.0 | (55.9) | |||
Adjusted funds flow | $ | 263.7 | $ | 355.6 | |
Capital spending | (121.4) | (114.5) | |||
Free cash flow | $ | 142.3 | $ | 241.1 |
Other Financial Measures
CAPITAL MANAGEMENT MEASURES
Capital management measures are financial measures disclosed by a company that (a) are intended to enable an individual to evaluate a company's objectives, policies and processes for managing the company's capital, (b) are not a component of a line item disclosed in the primary financial statements of the company, (c) are disclosed in the notes to the financial statements of the company, and (d) are not disclosed in the primary financial statements of the company. The following section provides an explanation of the composition of those capital management measures if not previously provided:
"Adjusted funds flow" is used by
"Net debt" is calculated as current and long-term debt associated with senior notes plus any outstanding bank credit facilities balances, less cash and cash equivalents. "Net debt" is useful to investors and securities analysts in analyzing financial liquidity and
"Net debt to adjusted funds flow ratio" is used by
SUPPLEMENTARY FINANCIAL MEASURES
Supplementary financial measures are financial measures disclosed by a company that (a) are, or are intended to be, disclosed on a periodic basis to depict the historical or expected future financial performance, financial position or cash flow of a company, (b) are not disclosed in the financial statements of the company, (c) are not non-GAAP financial measures, and (d) are not non-GAAP ratios. The following section provides an explanation of the composition of those supplementary financial measures if not previously provided:
"Capital spending" Capital and office expenditures, excluding other capital assets/office capital and property and land acquisitions and divestments.
"Cash general and administrative expenses" or "Cash G&A expenses" General and administrative expenses that are settled through cash payout, as opposed to expenses that relate to accretion or other non-cash allocations that are recorded as part of general and administrative expenses.
Electronic copies of
SOURCE
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