Chinook Energy Inc. Reports Consolidated Operating and Earnings Results for the Second Quarter and Six Months Ended June 30, 2017; Provides Earnings Guidance for the Full Year of 2017
For the six months, the company reported net income of $8,169,000 or $0.04 per basic and diluted share compared to net loss of $25,295,000 or $0.12 per basic and diluted share in 2016. Adjusted funds from operations was $3,231,000 or $0.01 per basic and diluted share compared to outflow of $4,611,000 or $0.02 per basic and diluted share in 2016. Capital expenditure was $17,058,000 compared to $4,373,000 a year ago. Petroleum and natural gas revenues, net of royalties were $13,421,000 compared to $14,794,000 a year ago.
For the quarter, the company reported natural gas liquids boe/d production of 441 boe/d compared to 604 boe/d a year ago. Natural gas production was 19,065 mcf/d compared to 22,776 mcf/d a year ago. Crude oil production was 19 bbl/d compared to 769 bbl/d a year ago. Average daily production was 3,638 boe/d compared to 5,169 boe/d a year ago. Production during the second quarter of 2017 averaged 3,638 boe/d, an increase of 3.5% from the previous quarter primarily due to additional production from three Birley/Umbach wells which were drilled in the fourth quarter of 2016.
For the six months, the company reported crude oil production of 24 bbl/d compared to 793 bbl/d a year ago. Natural gas production was 18,546 mcf/d compared to 23,995 mcf/d a year ago. Average daily production was 3,576 boe/d compared to 5,461 boe/d a year ago. Natural gas liquids boe/d production was 461 boe/d compared to 669 boe/d a year ago.
The company provides its 2017 guidance. For the period, the company expects its average production to 4,200 boe/d to 4,300 boe/d. Exit production expected to be 6,300 boe/d to 6,500 boe/d. Capital expenditures expected to be $40 million for the year.