i3 Energy (I3E) , a UK and Canada focused oil producer, issued a Q3 operational and financial update. Average Q3 production increased by 14% year-on-year and 3% quarter-on-quarter to 21,156 boepd. Net operating income for the quarter jumped by 47% quarter-on-quarter to US$25.97m, reflecting restored production and higher commodity prices.
i3 Energy maintained focus on repayment of its new credit facility during the quarter, with the original drawn amount of CAD 75m reduced to CAD 66.67m (US$49.39m) and net debt on September 30 of approximately US$27.56m, down from US$38.98m on June 30 2023.
Post-quarter, i3's board approved a US$6m capital programme for the balance of 2023, centered on the company's Glauconite and Leduc oil fairways in Central Alberta. i3 issued £3.08m (US$3.91m) of dividends for Q3, paid in October 2023.
View from Vox
Overall, a strong quarter from i3 Energy with substantial increases in production and income. Following major scheduled maintenance and disruptions due to wildfires in Alberta in Q2, the company saw a strong recovery in production levels in Q3. Income jumped 47% quarter-on-quarter on resumption of operations and higher commodity prices.
Despite the disruptions in Q2, i3 Energy maintained its full-year guidance, and remains on track to meet its production and net operating income targets for FY23 of 20,000-21,000 boepd and US$90-95m respectively. The company will also commence a three well drilling programme imminently, focused on oil development in Central Alberta. The wells are expected to spud in early-to-mid Q4, with tie-in occurring before year-end, positioning i3 for a strong start to 2024.
i3 is aggressively paying down its debt while maintaining its dividend, with the Q4 payment expected to be 0.2565p in January 2024. The company also benefits from a robust hedging programme which currently protects US$50.65m and US$28.32m of net operating income for 2023 and 2024 respectively, with current hedges in place to cover 29%, 33%, 12%, 11% and 2% of its projected Q4 2023 and Q1, Q2, Q3 and Q4 of its 2024 production volumes respectively.
Follow News & Updates from i3 Energy: