Cube Energy announces first quarter 2022 results
HOUSTON, TX & Calgary, AB / AccessWire / May 30, 2022 / Cube Energy Inc. ,cub” either “company,TSXV: KUB), a Ukraine-focused energy company, today announced its unaudited financial and operating results for the three months ended March 31, 2022. All dollar amounts are expressed in United States dollars unless otherwise noted.
Cube CEO Patrick McGraw said: “Cub ended the quarter ended March 31, 2022 with $8,916,000 in cash and $7,593,000 in working capital. This was the result of a corporate strategy to sell off many of its Ukraine oil and gas assets, including the divestiture of its eastern Ukraine assets, the transaction of which closed on February 2, 2022. Cube is exploring, but not limited to, alternatives to its existing cash. To invest in cash dividends or new opportunities.”
operational highlights
- On February 2, 2022, the company closed the sale of its 35% interest in KUB Holdings Limited (“KUB Holdings”) and received a cash payment of $2,600,000. In conjunction with the winding up, the Company received a final cash dividend of $2,046,000 and repaid the final debt balance to a subsidiary of KUB Holdings in the amount of $2,481,000 as part of the final debt settlement between the parties.
- The average price of natural gas during the three months ended March 31, 2022 was $20.61/mcf as compared to $5.90/mcf and $67.86/bbl for the comparable 2021 quarter. Regional pricing has improved materially over the Ukraine period.
- The average production for the three months ended March 31, 2022 was 35 boe/d, as against 555 boe/d for the comparable 2021 period. Production decreased due to the sale of the company’s 35% equity investment in KUB Holdings.
Financial Highlights
- The company reported a net loss of $533,000 or $0.00 per share during the three months ended March 31, 2022, compared to net income of $263,000 or $0.00 per share during the comparable 2021 quarter. The Company’s revenue and earnings were materially impacted by the sale of KUB Holdings in 2022 which has historically been a primary contributor to the Company’s financial performance.
- Achieving a netback of $71.85/boe or $11.98/Mcfe for the three months ended March 31, 2022, compared to a netback of $17.31/Boe or $2.89/Mcfe for the comparable 2021 period.
| (in thousands of US dollars) |
three |
three |
| Petroleum and Natural Gas Revenue |
386 |
94 |
| revenue from gas business |
, |
1,653 |
| net (loss) income |
(533) |
263 |
| (Loss) Earnings Per Share – Basic and Diluted |
(0.00) |
0.00 |
| money generated from operations |
1,440 |
16 |
| Pro-rata Netback ($/boe)(1) |
71.85 |
17.31 |
| Pro-rata Netback ($Mcfe)(1) |
11.98 |
2.89 |
|
March 31, |
31st December, |
|
| working capital |
7,593 |
8,128 |
| Cash and cash equivalents |
8,916 |
7,368 |
notes:
1 For the purposes of pro-rata netback calculations for 2021, the company’s profit from gas trading is added to Kub-Gas’ revenue to better reflect the real natural gas price and field netback received.
supporting documents
Cub’s complete interim reporting package, including unaudited condensed consolidated financial statements and related management discussions and analysis, is filed on SEDAR (www.sedar.com) and posted on the Company’s website at www.cubenergyinc.com .
About Cube Energy Inc.
Cube Energy Inc. (TSX-V: KUB) is a power and upstream oil and gas company with a proven track record of exploration and production cost efficiency. The company’s strategy is to apply Western technology and capital, combined with local expertise and ownership, to add value to its underdeveloped land base, to build and grow a portfolio of assets within a high commodity value environment. For more information please contact us or visit our website: www.cubenergyinc.com
Patrick McGrath
chief executive officer
oil and gas equivalents
A barrel of oil equivalent (“boe”) or units of natural gas equivalent (“mcf”) is calculated using the conversion factor of 6 mcf (thousand cubic feet) of natural gas being the equivalent of one barrel of oil. 6 Mcf: Boe conversion ratio of 1 bbl (barrel) or 1bbl: Mcfe conversion of 6 Mcf is based primarily on the energy equivalence conversion method applied at the burner tip and does not and does not represent a price equivalence at the wellhead is based on energy content or current prices. While the Bow ratio is useful for comparative measures, it does not accurately reflect individual product values and can be misleading, especially if used in isolation. Also, given that the price ratio based on the current crude oil price for natural gas is significantly different from the 6:1 energy equivalence ratio, using the 6:1 conversion ratio as an indication of price can be misleading. Is. Disclosures in this press release have been prepared in accordance with NI 51-101 standards.
Except as statements of historical fact, this news release contains certain “further information” within the meaning of applicable securities law. Forward-looking information is often characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “estimate”, “estimate” and other similar terms, or certain events or conditions. “could be” or “will be”. Cub believes that the expectations reflected in the forward-looking information are reasonable; However, there can be no assurance that those expectations will turn out to be true. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results obtained will be identical in whole or in part as set forth in the forward-looking information.
Forward-looking information is based on management’s opinion and estimates at the date of the statements, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated going forward. – Viewing information. Certain risks and other factors that could cause results to differ materially from those expressed in forward-looking information include, but are not limited to: the general economic situation in Ukraine, the Black Sea region and globally; Political unrest and security concerns in Ukraine; The state of the industry, including fluctuations in natural gas, electricity and foreign exchange prices; Government regulation of the natural gas industry, including environmental regulation; Unforeseen operating events or performance that could reduce production or cause production to be shut down or delayed; failure to obtain the consent and approval of the industry partner and other fourth parties, if and when required; Competition and/or inability to provide drilling rigs and other services; availability of capital on acceptable terms; the need to obtain necessary approvals from regulatory authorities; stock market volatility; volatility in the market prices of natural gas; liabilities inherent in natural gas operations; Competition for, among other things, the acquisition of capital, reserves, undeveloped land, skilled personnel and supplies; Incorrect assessment of the value of the acquisition; geological, technical, drilling, processing and transportation problems; changes to tax laws and incentive programs relating to the natural gas industry; failure to realize the anticipated benefits of acquisition and disposition; and other factors. Readers are cautioned that this list of risk factors should not be considered exhaustive.
This cautionary statement expressly qualifies as the forward-looking information contained in this news release. We undertake no duty to update any forward-looking information in line with actual results or changes to our expectations, except as otherwise required by applicable securities law. Readers are cautioned not to rely unnecessarily on forward-looking information.
Neither TSX Venture Exchange nor its regulation service provider (as defined in TSX Venture Exchange’s policies) accepts responsibility for the adequacy or accuracy of this release.
Source: Cube Energy Inc.
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