Trilogy Energy Corp. Announces Financial and Operating Results for the Three and Six Months-Ended June 30, 2015

Press Releases

Trilogy Energy Corp. (TSX: TET) (“Trilogy”) is pleased to announce its financial and operating results for the three and six months-end June 30, 2015.

Financial and Operating Highlights

• Reported sales volumes for the second quarter of 2015 were lower at 28,926 Boe/d as compared to 33,041 Boe/d for the previous quarter.

• Average realized liquids prices increased approximately 30 percent from the prior quarter.

• Net capital expenditures, including a $4 million asset sale, totaled $6.6 million as compared to $47.7 million for the previous quarter.

• No wells were drilled in the quarter as compared to 13 (7.2 net) wells in the prior quarter.

• Operating expenditures decreased to $25.9 million or $9.86 per Boe in the quarter compared to $27.7 million or $9.32 per Boe for the previous quarter.

• Funds flow from operations ⁽¹⁾ was consistent at $33.8 million from the prior quarter.

• Capacity under Trilogy’s Revolving Credit Facility as at June 30, 2015 was $222.4 million, consisting of $125 million under Trilogy’s development facility and $97.4 million under its revolving and working capital tranches.

• Net debt ⁽¹⁾ decreased by approximately $28 million to $737 million at the end of the quarter, from $765 million at the end of the previous quarter.

• Subsequent to the quarter, the Company completed the disposition of certain oil and gas properties in the Kaybob area for net cash consideration of $45 million.

Current capital and operating expenditure levels reflect Trilogy’s commitment to preserve shareholder value and promote financial sustainability during the low liquids and gas commodity price environment. Significant effort has been placed on reducing Trilogy’s cost structure and on negotiating cost reductions with suppliers. Capital spent during the second quarter was to participate in strategic operated and non-operated joint interest projects.

• Refer to Non-GAAP measures in the MD&A

Financial and Operating Highlights Table

(In thousand Canadian dollars except per share amounts and where stated otherwise)

	Three Months Ended			Six Months Ended June 30
	June 30,	March 31,	Change %	2015	2014	Change %
	2015	2015
FINANCIAL	81,852			163,698
Petroleum and natural gas sales		81,846	–		335,533	(51)
Funds flow
From operations(1)	33,803	33,898	–	67,702	183,412	(63)
Per share – diluted	0.27	0.27	–	0.54	1.44	(63)
Earnings	(35,146)			(63,592)
Loss before tax		(28,447)	24		62,007	(203)
Per share – diluted	(0.28)	(0.23)	23	(0.50)	0.49	(203)
Loss after tax	(26,881)	(20,662)	30	(47,543)	45,619	(204)
Per share – diluted	(0.21)	(0.16)	30	(0.38)	0.36	(205)
Dividends declared	–	–	–	–	26,377	(100)
Per share	–	–	–	–	0.210	(100)
Capital expenditures
Exploration, development, land,	10,933	47,263	(77)	58,226	281,531	(79)
and facility
Acquisitions (dispositions) and	(4,289)	466	(1,020)	(3,853)	4,724	(182)
other – net
Net capital expenditures	6,644	47,729	(86)	54,373	286,255	(81)
Total assets	1,542,040	1,592,668	(3)	1,542,040	1,726,495	(11)
Net debt(1)	737,018	765,041	(4)	737,018	750,109	(2)
Shareholders’ equity	532,915	554,719	(4)	532,915	692,726	(23)
Total shares outstanding (thousands)
– As at end of period (2)	126,123	125,854	–	126,123	125,755	–
OPERATING
Production	113			119
Natural gas (MMcf/d)		125	(10)		124	(4)
Oil (Bbl/d)	5,559	6,874	(19)	6,213	8,504	(27)
Natural gas liquids (Boe/d)	4,533	5,396	(16)	4,962	5,483	(10)
Total production (Boe/d @ 6:1)	28,926	33,041	(12)	30,972	34,670	(11)
Average prices before financial
instruments
Natural gas ($/Mcf)	3.12	3.20	(3)	3.16	5.71	(45)
Crude Oil ($/Bbl)	63.51	48.58	31	55.29	96.24	(43)
Natural gas liquids ($/Boe)	42.83	32.77	31	37.39	59.62	(37)
Average realized price	31.10	27.52	13	29.20	53.47	(45)
Drilling activity (gross)	–			8
Gas		8	(100)		23	(65)
Oil	–	5	(100)	5	24	(79)
Total wells	–	13	(100)	13	47	(72)

Read More: http://trilogyenergy.mwnewsroom.com/Files/8e/8ec99cd9-b83b-4e3c-b231-d0328acf0943.pdf

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