As announced on
Any speculation that the Corporation may not be paying its next coupon is completely false and Canacol reaffirms its commitment to meet all its future financial obligations.
Our recently completed corporate restructuring will result in a significant reduction of current tax expense in 2024 and forward, providing enhanced liquidity which could be used for debt reduction, including potential repurchasing of senior notes should the pricing remain supressed.
The Corporation is prioritizing cash liquidity and balance sheet preservation, and, as announced in a press release on
As previously announced in our Corporate Guidance press release, given strong natural gas market dynamics in
Gas scarcity in
The Corporation will be prepaying its 2024 tax installments as required by Colombian regulation in the first half of the year, however cash requirements are expected to decline in the second half of 2024 and into 2025.
As per the Corporation’s audited reserves report as of
The Corporation is preparing a press release concerning its most recent gas discovery, Pomelo 1, which shall be issued shortly.
About Canacol
Canacol is a natural gas exploration and production company with operations focused in
Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Corporation’s plans and other aspects of our anticipated future operations, management focus, strategies, financial, operating and production results and business opportunities. Forward-looking information typically uses words such as "anticipate", "believe", "continue", "trend", "sustain", "project", "expect", "forecast", "budget", "goal", "guidance", "plan", "objective", "strategy", "target", "intend", "estimate", "potential", or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, including statements about our strategy, plans, focus, objectives, priorities and position.
In particular, and without limiting the generality of the foregoing, this press release contains forward-looking information with respect to: the Corporation’s future compliance with all of its debt covenants; the Corporation’s ability to pay its next coupon; the Corporation’s ability to meet all of its future financial obligations; the reduction of the Corporation’s tax expense in 2024 following its corporate restructuring; the reduced tax expense providing enhanced liquidity for the Corporation; the potential debt reduction and repurchase of senior notes; additional sources of liquidity; expected EBITDA during 2024; the availability and price of gas in
The forward-looking information is based on certain key expectations and assumptions made by our management, including: current commodity prices and royalty regimes; timing and amount of capital expenditures; our ability to execute our plans in the short-term and long-term as described herein and in the Corporation’s other disclosure documents and the impact that the successful execution of such plans will have on the Corporation; the price of oil, natural gas liquids and natural gas; conditions in general economic and financial markets; the impact of rising and/or sustained high inflation rates and interest rates; future exchange rates; availability of drilling and related equipment; effects of regulation by governmental agencies; recoverability of reserves; royalty rates; future operating costs; performance of existing and future wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; that the Corporation will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that the Corporation’s conduct and results of operations will be consistent with its expectations; that the Corporation will have the ability to develop its oil and gas properties in the manner currently contemplated; that the estimates of the Corporation’s reserves volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects; and other matters.
Although we believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Canacol can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. These include, but are not limited to: the impact of general economic and political conditions in
Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect our operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca). These forward-looking statements are made as of the date of this press release and we disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about our forecast of
Use of Non-IFRS Financial Measures
This press release refers to certain financial measures that are not determined in accordance with IFRS. Measures such as earnings before interest, tax, depreciation and amortization (“EBITDA”) are not standard measures under IFRS and, therefore, may not be comparable to similar measures reported by other entities. Management believes that these supplemental measures facilitate the understanding of the Corporation’s results of operations and financial position. These financial measures are considered additional IFRS or non- IFRS financial measures. Readers are cautioned that these measures should not be construed as an alternative to measures determined in accordance with IFRS as an indication of the Corporation’s performance. Readers should refer to the Corporation’s 2023 annual financial statements and associated management discussion and analysis filed on the SEDAR+ website (www.sedarplus.ca) for a full discussion of the Corporation’s financial performance and a reconciliation of these measures to their most closely related IFR measures.
For more information please contact: Investor RelationsSouth America : +571.621.1747 IR-SA@canacolenergy.com Global: +1.403.561.1648 IR-GLOBAL@canacolenergy.com
Source:
2024 GlobeNewswire, Inc., source