Connacher Oil third-quarter EBITDA deficit decreases to C$4.1 million

By Caroline Salls

Pittsburgh, Nov. 23 – Connacher Oil and Gas Ltd.’s adjusted EBITDA deficit decreased to C$4.1 million in the quarter ended Sept. 30 from a deficit of C$14.1 million for the same period of 2015, according to a news release.

Connacher said the deficit grew as a result of lower input costs, partially offset by lower revenue, net of royalties.

Net revenue for the third quarter was C$31.7 million, decreasing 45% from C$58 million as of Sept. 30, 2015.The company said the decline in revenue resulted from lower crude oil benchmark pricing; an increase in plant-gate sales and lower sales volumes associated with its strategic decision to reduce production in the low commodity price environment.

Adjusted EBITDA for the nine months ended Sept. 30 reflected a deficit of C$45.5 million, compared with a deficit of C$30.3 million for the first three quarters of 2015. Revenue for the first nine months of this year was C$66.3 million, down from C$183.2 million for the nine months ended Sept. 30, 2015.

The company said it generated net losses of C$34.3 million and C$447.1 million for the third quarter and first nine months of this year, respectively, compared with a net loss of C$289.2 million and net income of C$13.7 million for the same periods of last year.

According to the release, Connacher entered into a waiver, approval and modification agreement with the interim lenders for its Companies’ Creditors Arrangement Act debtor-in-possession financing.

Under that agreement, the lenders waived defaults related to the CCAA sale process timelines and have committed to provide the company with access to an additional $5 million of the $20 million in financing initially approved to support its continuing operations.

In addition, the company said it received 89 claims in the CCAA case as of the Sept. 26 bar date.

Connacher is a Calgary, Alta.-based developer, producer and marketer of bitumen from oil sands.

© 2015 Prospect News.
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