Condensate growth boosts Seven Generation’s fourth quarter revenue, income

Must Read

Caremongering Fort St John holds food drive in support of Women’s Resource Society

FORT ST. JOHN, B.C. - As part of helping out the community during the COVID-19 pandemic, Caremongering Fort St....

Truck fire on Alaska Highway

FORT ST. JOHN, B.C. - The Alaska Highway is closed north bound just past Fort St John.

No new COVID-19 related deaths in BC, 11 new cases across Province as of Tuesday

VICTORIA, B.C. – The total number of confirmed COVID-19 cases in the Northern Health Region is still at 62...

CALGARY, A.B. — Seven Generations Energy Ltd. beat revenue expectations with fourth-quarter results boosted by higher production and prices for condensate, a premium-priced petroleum liquid produced with natural gas from its northwestern Alberta wells.

The Calgary-based company says it earned $83.6 million or 23 cents per share for the three months ended Dec. 31, compared with a loss of $105 million or 30 cents per share in the same period of 2016. Revenue jumped to $615 million from $262 million.

CEO Marty Proctor linked the results to Seven Generation’s status as Canada’s largest producer of condensate, a light oil that is in high demand as a diluting agent that is blended with oilsands bitumen to allow it to flow in a pipeline.

- Advertisement -

Community Interviews with Moose FM

The company reported production of 197,000 barrels of oil equivalent per day in the fourth quarter, up from 132,000 boe/d in the year-earlier period.

Condensate output averaged 63,700 barrels per day, an increase of 47 per cent compared with the same period in 2016. It sold for an average of C$68.10 per barrel, up from C$56.96 per barrel a year earlier.

“We have a significant market advantage when it comes to our condensate, our most valuable product,” Proctor said on a conference call. “Alberta condensate demand is about twice that of Canadian production. It is a high-demand market that is not subject to the discounts we have seen on some of the Canadian crude grades and even the local natural gas markets.”

The company says founder Pat Carlson has decided to step down as a director to pursue other business and philanthropic opportunities.

More Articles Like This