2024 Year End and Q4 2024 Results
FY24 revenue up 65% to $73.7m, production up 63% to 3,542 boe/d, net income $13.2m, $18m cash.
- Total revenue, net of royalties $73.7 million (prior $44.7 million)
- Net income $13.2 million (prior net loss $1.1 million)
- Adjusted EBITDA $48 million (prior $27.1 million)
- Average production 3,542 boe/d (prior 2,167 boe/d)
- Proved Developed Producing Reserves 2,384 Mboe (prior 1,242 Mboe)
- Cash position $18 million (prior $12.1 million)
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ARROW ANNOUNCES 2024 AUDITED YEAR END AND Q4 2024 RESULTS, FILING OF AUDITED FINANCIAL STATEMENTS, MD&A AND RESERVES REPORT
Significant growth across key metrics including 65% increase in total revenue, increase in production of 63% and healthy cash position
CALGARY, April 29, 2025- Arrow Exploration Corp. (AIM: AXL; TSXV: AXL) ("Arrow" or the "Company"), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, announces the filing of its Annual Audited Financial Statements and Management's Discussion and Analysis ("MD&A") for the quarter and year ended December 31, 2024 and the filing of its 2024 year-end reserves report, which are available on SEDAR (www.sedar.com) and will also shortly be available on Arrow's website at www.arrowexploration.ca.
Full Year 2024 Highlights:
- Significant 65% growth in total oil and gas revenue to $73.7 million, net of royalties (FY 2023: $44.7 million).
- Net income of $13.2 million inclusive of an impairment reversal of $0.7 million (FY: 2023: net loss of $1.1 million).
- Adjusted EBITDA of $48 million, which is 78% greater than last year (FY 2023: $27.1 million), with Q4 2024 EBITDA of $13.3 million compared to $7.1 million in Q4 2023.
- Cash position of $18 million at the end of 2024.
- Annual average corporate production up 63% to 3,542 boe/d (FY 2023: 2,167 boe/d) with Q4 2024 average corporate production more than doubling to 4,738 boe/d compared with Q4 2023 2,335 boe/d.
- Funds flow from operations of $35.6 million (FY 2023: $19.9 million) with Q4 2024 funds flow from operations of $12.5 million (FY 2023: $3.8 million).
- Increase in Proved Developed Producing reserves at year-end 2024 of 92% to 2.4 MMboe.
- Successfully drilled seven horizontal wells and five vertical wells at Carrizales Norte (CN), which added significant production to the Company.
- Drilled a successful exploratory well on the Alberta Llanos (AB Llanos) field in the Tapir block.
- All operations delivered safely, with no accidents or environmental incidents.
Post Period End Highlights:
- So far in 2025, the Company has drilled three development wells on the CN field and two additional wells in the AB Llanos field in the Tapir Block, The AB-2 well is being recompleted as a water disposal well, the other new drills are all currently producing at restricted rates. Ramping production up slowly prevents early water breakthrough in each well.
- Currently mobilizing the drilling rig to the Alberta Llanos (AB) pad to start drilling horizontal development wells. A second rig will be mobilized shortly to begin development drilling at the Rio Cravo Este (RCE) pad.
- Completed seismic data acquisition of 90 km2 in the south east section of the Tapir block. Seismic is currently being processed and will later be analysed.
Outlook
- Arrow has a fully funded 2025 work program totaling $51 million targeting up to 23 wells mainly in the Tapir block.
- The work program includes the Company's first horizontal wells in Alberta Llanos and recently identified prospects in Mateguafa Attic.
Marshall Abbott, CEO of Arrow Exploration Corp., commented:
"2024 was the best year for the Company so far on all fronts. We saw substantial growth in production, revenue and EBITDA and our healthy balance sheet supports the aggressive capital program planned for 2025. Our strategy remains to maintain a disciplined approach to capital allocation which allows Arrow to grow production while maintaining positive cash flow and a growing cash position, which today's results show clear success in doing. With a significant portfolio of reserves at year end, Arrow is confident in being able to replicate its strategy and continue to grow its production and cash flow.
So far in 2025, Arrow has completed drilling of AB Llanos 2 and 3, and horizontal wells CN HZ 9, CN HZ 10 and a directional well CN 11. Arrow is now moving the drilling rig to the AB Llanos pad where two horizontal wells are expected to be drilled in Q2 2025. Arrow then plans to add an additional rig to drill at wells at the RCE pad and additional development wells in CN. Additional operational updates will be forthcoming.
The Arrow team continues to strive towards growth, operational excellence and increasing shareholder value."
FINANCIAL AND OPERATING HIGHLIGHTS
| (in United States dollars, except as otherwise noted) | Three months ended December 31, 2024 | Year ended December 31, 2024 | Three months ended December 31, 2023 | Year ended December 31, 2023 |
|---|---|---|---|---|
| Total natural gas and crude oil revenues, net of royalties | 22,873,626 | 73,725,028 | 13,406,513 | 44,670,006 |
| Funds flow from operations (1) | 12,519,464 | 35,619,816 | 3,781,033 | 19,990,584 |
| Funds flow from operations (1) per share - | ||||
| Basic($) | 0.04 | 0.12 | 0.01 | 0.08 |
| Diluted ($) | 0.04 | 0.12 | 0.01 | 0.07 |
| Net income (loss) | 2,081,956 | 13,175,001 | (10,492,053) | (1,106,613) |
| Net income (loss) per share - | ||||
| Basic ($) | 0.01 | 0.05 | (0.04) | (0.00) |
| Diluted ($) | 0.01 | 0.05 | (0.04) | (0.00) |
| Adjusted EBITDA (1) | 13,277,044 | 48,144,181 | 7,132,422 | 27,157,169 |
| Weighted average shares outstanding: | ||||
| Basic | 285,864,348 | 285,864,348 | 278,144,305 | 242,537,228 |
| Diluted | 290,029,866 | 291,226,740 | 291,404,032 | 289,903,094 |
| Common shares end of period | 285,864,348 | 285,864,348 | 285,864,348 | 285,864,348 |
| Capital expenditures | 8,928,725 | 31,121,240 | 10,471,447 | 27,084,959 |
| Cash and cash equivalents | 18,837,784 | 18,837,784 | 12,135,376 | 12,135,376 |
| Current assets | 25,973,196 | 25,973,196 | 21,629,198 | 21,629,198 |
| Current liabilities | 14,327,027 | 14,327,027 | 12,960,084 | 12,960,084 |
| Adjusted working capital (1) | 11,646,169 | 11,646,169 | 8,669,114 | 8,669,114 |
| Non-current restricted cash and deposits (2) | 167,545 | 167,545 | 854,834 | 854,834 |
| Total assets | 81,268,734 | 81,268,734 | 62,275,023 | 62,275,023 |
| Operating | ||||
| Natural gas and crude oil production, before royalties | ||||
| Natural gas (Mcf/d) | 1,332 | 1,119 | 1,819 | 2,150 |
| Natural gas liquids (bbl/d) | 5 | 5 | 4 | 4 |
| Crude oil (bbl/d) | 4,511 | 3,351 | 2,027 | 1,805 |
| Total (boe/d) | 4,738 | 3,542 | 2,335 | 2,167 |
| Operating netbacks ($/boe) (1) | ||||
| Natural gas ($/Mcf) | ($0.71) | ($0.68) | ($0.21) | ($0.13) |
| Crude oil ($/bbl) | $42.80 | $50.13 | $45.91 | $53.97 |
| Total ($/boe) | $40.63 | $47.33 | $40.49 | $45.17 |
(1)Non-IFRS measures - see "Non-IFRS Measures" section within this MD&A
(2)Long term restricted cash not included in working capital
2024 Year-End Reserves
Arrow has also filed on SEDAR, the Company's Statement of Reserves Data and Other Oil and Gas Information, Report on Reserves Data by Independent Qualified Reserves Evaluator, and Report of Management and Directors on Oil and Gas Disclosure for the year ended December 31, 2024, as required by section 2.1 of National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (together, the "Reserve Report").
To recap, the Company's Year-End 2024 Company Working Interest Gross Reserves Highlights include:
- 2,384 Mboe of Proved Developed Producing Reserves ("PDP Reserves")
- 5,805 Mboe of Proved Reserves ("1P Reserves");
- 13,618 Mboe of Proved plus Probable Reserves ("2P Reserves");
- 22,288 Mboe of Proved plus Probable plus Possible Reserves ("3P Reserves")1;
- 1P Reserves estimated net present value before income taxes of US$115 million calculated at a 10% discount rate;
- 2P Reserves estimated net present value before income taxes of US$285 million calculated at a 10% discount rate; and
- 3P Reserves estimated net present value before income taxes of US$524 million calculated at a 10% discount rate.
Arrow refers readers to the Company's press release of March 13, 2025 for additional details, as well as to the Reserve Report filed on SEDAR.
Discussion of Operating Results
The Company increased its production during 2024 mostly from new horizontal wells at the Carrizales Norte fields in the Tapir block. These have allowed the Company to continue to improve its operating results and EBITDA. There has also been a decrease in the Company's natural gas production in Canada due to natural declines.
Average Production by Property
| Average Production Boe/d | YTD 2024 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | YTD 2023 | Q4 2023 |
|---|---|---|---|---|---|---|---|
| Oso Pardo | 153 | 154 | 180 | 113 | 166 | 110 | 80 |
| Ombu (Capella) | - | - | - | - | - | 20 | - |
| Rio Cravo Este (Tapir) | 1,294 | 1,178 | 1,078 | 1,283 | 1,644 | 1,342 | 1,326 |
| Carrizales Norte (Tapir) | 1,897 | 3,153 | 2,784 | 991 | 622 | 332 | 621 |
| Alberta Llanos | 7 | 26 | - | - | - | - | - |
| Total Colombia | 3,351 | 4,511 | 4,042 | 2,387 | 2,432 | 1,805 | 2,027 |
| Fir, Alberta | 81 | 88 | 82 | 77 | 78 | 78 | 80 |
| Pepper, Alberta | 110 | 139 | - | 82 | 220 | 284 | 228 |
| TOTAL (Boe/d) | 3,542 | 4,738 | 4,124 | 2,546 | 2,730 | 2,167 | 2,335 |
The Company's average production for the three months and year ended December 31, 2024 was 4,738 and 3,542 boe/d, respectively, which consisted of crude oil production in Colombia of 4,511 and 3,351 bbl/d, respectively, natural gas production of 1,332 and 1,119 Mcf/d, respectively, and minor amounts of natural gas liquids. The Company's Q4 2024 production was 15% higher than its Q3 2024 production and 103% higher than Q4 2023.
Discussion of Financial Results
During Q4 2024 the Company continued to realize strong oil and gas prices, as summarized below.
Three months ended December 31
| 2024 | 2023 | Change | |
|---|---|---|---|
| Benchmark Prices | |||
| AECO (C$/Mcf) | $1.50 | $2.34 | (36%) |
| Brent ($/bbl) | $73.13 | $77.32 | (5%) |
| West Texas Intermediate ($/bbl) | $70.30 | $78.35 | (10%) |
| Realized Prices | |||
| Natural gas, net of transportation ($/Mcf) | $1.21 | $1.68 | (28%) |
| Natural gas liquids ($/bbl) | $65.73 | $68.30 | (4%) |
| Crude oil, net of transportation ($/bbl) | $57.04 | $69.61 | (18%) |
| Corporate average, net of transport ($/boe) (1) | $54.73 | $62.72 | (13%) |
(1)Non-IFRS measure
As at December 31, 2024, the Company reviewed its cash-generating units ("CGU") for property and equipment and determined that there were indicators of impairment reversal in its Canada CGU and recognized an income of $662,753.
Operating Netbacks
The Company also continued to realize positive operating netbacks, as summarized below.
| Three months ended December 31 | Year ended December 31 | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Natural Gas ($/Mcf) | ||||
| Revenue, net of transportation expense | $1.21 | $1.68 | $1.35 | $1.94 |
| Royalties | ($0.05) | (0.05) | ($0.02) | (0.02) |
| Operating expenses | ($1.87) | (1.84) | ($2.01) | (2.05) |
| Natural Gas operating netback (1) | ($0.71) | ($0.21) | ($0.68) | ($0.13) |
| Crude oil ($/bbl) | ||||
| Revenue, net of transportation expense | $57.04 | $69.61 | $65.40 | $72.05 |
| Royalties | ($2.61) | (7.97) | ($6.33) | (8.69) |
| Operating expenses | ($11.63) | (15.73) | ($8.94) | (9.39) |
| Crude Oil operating netback (1) | $42.80 | $45.91 | $50.13 | $53.97 |
| Corporate ($/boe) | ||||
| Revenue, net of transportation expense | $54.73 | $62.72 | $62.41 | $62.31 |
| Royalties | ($2.50) | (7.07) | ($5.99) | (7.30) |
| Operating expenses | ($11.60) | (15.16) | ($9.09) | (9.84) |
| Corporate Operating netback (1) | $40.63 | $40.49 | $47.33 | $45.17 |
(1)Non-IFRS measure
The operating netbacks of the Company maintained healthy levels during 2024 due to increased production from its Colombian assets, notwithstanding lower crude oil prices, which was offset by decreases in natural gas prices and higher operating expenses for natural gas.
During 2024, the Company invested $31 million of capital expenditures, primarily in connection with the drilling of 13 wells in the Tapir Block. This acceleration in operational tempo is expected to continue in 2025, funded by cash on hand and cashflow.
About Arrow Exploration Corp.
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