Painted Pony Petroleum Ltd. announced earnings results for the first quarter ended March 31, 2017. For the quarter, the company's petroleum and natural gas revenue was CAD 64.9 million compared with CAD 16.6 million a year ago. Funds flow from operations was CAD 24.8 million or CAD 0.25 per basic and diluted share compared with CAD 7.6 million or CAD 0.08 per basic and diluted share a year ago. Increased funds flow was the result of a 116% increase in production volumes and an 83% improvement in realized commodity prices compared to the first quarter of 2016. Net income was CAD 56.9 million or CAD 0.56 per diluted share compared with net loss of CAD 2.2 million or CAD 0.02 per diluted share a year ago. Capital expenditures was CAD 96.7 million compared with CAD 67.1 million a year ago. As on March 31, 2017, the company's net debt was CAD 299.8 million. Income before taxes of CAD 8.6 million, excluding the unrealized gain on commodity risk management contracts, compared to a CAD 1.3 million loss before taxes during the first quarter of 2016.

For the quarter, the company increased production by 116% to 215.3 MMcfe/d (35,878 boe/d), compared to 99.6 MMcfe/d (16,601 boe/d) during the first quarter of 2016. The company increased liquids production by 270% to 3,149 bbls/d or 9% of total production volumes, compared to 852 bbls/d or 5% of total production volumes in the first quarter of 2016. Average daily production volumes during the first quarter of 2017 were reduced by approximately 7.2 MMcfe/d (1,200 boe/d) due to temporary shut-ins of producing wells off-setting completion operations. The increase in first quarter 2017 production volumes was driven by production additions from successful new drills in the Blair Creek, Townsend and Daiber areas, and the commissioning of the AltaGas Townsend natural gas processing plant in July 2016.

The company expects pro forma production volumes during the second quarter of 2017 to average approximately 234 MMcfe/d (39,000 boe/d) to 246 MMcfe/d (41,000 boe/d), including the partial impact of UGR volumes. Average pro forma production volumes for 2017 are expected to be approximately 290.0 MMcfe/d (48,400 boe/d), representing a 108% increase over full-year 2016 production volumes. The pro forma forecasted production increase is driven by the expected commissioning of Phase 2 of the Townsend Facility in late 2017, and increased production resulting from the acquisition of UGR. Subsequent to the commissioning of Townsend Phase 2, pro forma exit volumes for 2017 are expected to be between 438 MMcfe/d (73,000 boe/d) to 450 MMcfe/d (75,000 boe/d).

The company's pro forma 2017 capital program is expected to be CAD 348 million.