LONDON (ShareCast) - (Sharecast News) - i3 Energy reported a robust fourth-quarter performance in an update on Monday, with record annual corporate production for 2023 averaging 20,711 barrels of oil equivalent per day.
The AIM-traded firm said that figure fell within the high end of the 20,000 to 21,000 equivalent daily barrels guidance range set for the year.

During the quarter, production remained strong, averaging 20,413 barrels of oil equivalent per day.

The completion of the 2023 drilling programme was highlighted as a significant achievement, with 12 gross and eight net wells delivered.

Notably, the results met or exceeded management's expectations and were achieved within budgetary constraints despite a challenging inflationary environment.

A focus on oil-centric activities was reported in the quarter, with the drilling of four gross oil-focused wells and 2.54 net in i3's Central Alberta core area.

The firm said its financial performance remained robust, with net operating income for the full year coming in at $93m, aligning with guidance.

i3 Energy anticipated its year-end net debt to be around an unaudited $23m.

The company paid dividends throughout the year, with £13.298m declared and £15.338m paid in 2023.

In the fourth quarter alone, dividends amounting to £3.083m were declared and disbursed, with an additional dividend of £3.084m declared and paid in early 2024.

"The fourth quarter of 2023 rounded off a highly successful annual capital programme for the company, with a dozen wells drilled, and which like our 2022 programme, in aggregate exceeded pre-drill expectations and was executed safely and in line with budget," said chief executive officer Majid Shafiq.

"We are very pleased that this programme, combined with our robust, low decline, asset base and a razor-sharp focus on operational efficiency, delivered very strong financial performance, despite a challenging commodity price environment and ensured that the company met its production and net operating income guidance for the year.

"This is a testament to the quality of our portfolio and the skill, expertise and dedication of our staff."

Shafiq said the company's strong production and financial performance supported its capital programme, debt re-payments, and dividend payments to shareholders of over £15m through the year, adding that its extensive drilling inventory provided multiple options to maximise return on capital deployment.

"As we enter 2024 with continued weakness in commodity price forecasts, in particular for North American gas, our business strategy remains flexible between high rate of return organic drilling and inorganic growth opportunities.

"The company is progressing several initiatives which will be incorporated into an optimised 2024 drilling and capital programme, and we look forward to updating the market on this during the course of March."

At 1451 GMT, shares in i3 Energy were up 3.93% at 9.25p.

Reporting by Josh White for Sharecast.com.

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