Razor Energy Corp. (ticker: RZE) is an oil and gas development and production company headquartered in Calgary, Alberta, with an emphasis on acquiring and enhancing producing oil and gas properties in Alberta.
The company recently released its Q3 2017 results. Q3 2017 was the first full quarter of operations for Razor with both the Swan Hills and Kaybob assets operating. Razor had record production levels as of Oct. 1, 2017 with over 4,500 BOEPD (88% light oil and NGLs) – a 33% increase over Q2 2017.
RZE Swan Hills and Kaybob Core Region Map, Nov. 2017
Q3 2017 capital expenditures totaled $4.2 million, focusing on well reactivations, in addition to pipelines and facilities upgrades. The company has not yet released its Dec. 2017 exit rate, but in Nov. Razor said that it estimated an exit rate of 4,600 BOEPD.
Capital program
In Q3 2017 Razor reactivated 12 gross (7.7 net) wells, adding 391 BOEPD (166 BOEPD average in Q3) of production at a cost of $2.0 million. The company also spent $725 thousand on non-operated facility and pipeline upgrades, primarily in the Kaybob area along with $1.1 million on pipeline upgrades in the Swan Hills area, which will enable the company to reactivate 4 wells. These activities are expected to result in approximately 150 BOEPD of additional production in Q4 2017.
RZE Corporate Profile, Nov. 2017
EnerCom Dallas conference details
Razor Energy will be presenting at the EnerCom Dallas investment conference, Feb. 21-22 at the Tower Club in downtown Dallas. Institutional investors, portfolio managers, financial analysts, CIOs and other investment community professionals who invest in the energy space should register now.
Financial and operating highlights
The following tables summarizes key financial and operating highlights associated with the company’s financial performance.
| Three Months Ended September 30, |
Nine Months Ended September 30, |
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| ($000’s unless otherwise stated) | 2017 | 2016 | 2017 | 2016 | ||||
| Production 1 | ||||||||
| Oil (bbl/d) | 2,702 | — | 2,324 | — | ||||
| Gas (Mcf/d) | 2,984 | — | 2,125 | — | ||||
| NGL (bbl/d) | 1,009 | — | 861 | — | ||||
| Total (BOEPD) | 4,207 | — | 3,538 | — | ||||
| Oil and natural gas revenue | ||||||||
| Oil and NGL sales | 16,051 | — | 37,709 | — | ||||
| Natural gas sales | 469 | — | 1,076 | — | ||||
| Other revenue | 1,273 | — | 2,966 | — | ||||
| Total revenue | 17,793 | — | 41,751 | — | ||||
| Weighted average number of shares outstanding (basic and diluted) | 15,920,374 | — | 13,042,372 | — | ||||
| Adjusted funds flow 2 | 1,584 | — | 3,684 | — | ||||
| Adjusted funds flow per share (basic and diluted) | 0.10 | — | 0.28 | — | ||||
| Funds flow 2 | 666 | — | 2,014 | — | ||||
| Funds flow per share (basic and diluted) | 0.04 | — | 0.15 | — | ||||
| Net loss | (2,519 | ) | (1 | ) | (5,906 | ) | (1 | ) |
| Net loss per share (basic and diluted) | (0.16 | ) | (5.44 | ) | (0.46 | ) | (5.44 | ) |
| Netback ($/boe) | ||||||||
| Oil and gas sales | 42.68 | — | 45.29 | — | ||||
| Other revenues | 3.29 | — | 3.46 | — | ||||
| Revenue | 45.97 | — | 48.75 | — | ||||
| Royalty | 8.24 | — | 9.3 | — | ||||
| Operating expenses | 30.86 | — | 30.31 | — | ||||
| Operating netback 2 | 6.87 | — | 9.14 | — | ||||
| General and administrative costs | 3.44 | — | 3.82 | — | ||||
| Acquisition and transaction costs | 0.02 | — | 1.33 | — | ||||
| Interest expense | 1.99 | — | 2.35 | — | ||||
| Corporate netback 2 | 1.42 | — | 1.64 | — | ||||
| Capital expenditures | 4,229 | 20 | 6,182 | 20 | ||||
| Net assets acquired | (1,082 | ) | — | 27,478 | — | |||
| 1) Production for the nine months ended September 30, 2017 represents the daily average production from February 1 to September 30, 2017. | ||||||||
| 2) Refer to “Non-IFRS measures”. | ||||||||
