2022-08-24 | TSXV:ALPS.U | Press release

Nashville, Tennessee and Vancouver, British Columbia–(Newsfile Corp. – August 24, 2022) – Alpine Summit Energy Partners, Inc. (TSXV: ALPS.U) (OTCQX: ASEPF) (“Alpine summit“or the”Company“) is pleased to announce its financial and operating results for the three and six months ended June 30, 2022 (“Q2 2022“). All amounts are expressed in US dollars, unless otherwise indicated.

Craig Perry, Chief Executive Officer, said, “The strong second quarter results reflect increased production levels from the capital investments we have made over the past year. Based on planned drilling activities over the past quarter, we expect to achieve another significant increase in production by the end of 2022.”

Q2 2022 Highlights

  • Maintained average gross production of approximately 14,631 boe/day for the three months ended June 30, 2022 (net 13,195 boe/day), an increase of 48% quarter-over-quarter and 227% from one year to the next.

  • Reported net income before non-controlling interests of approximately $9.2 million for the three months ended June 30, 2022 (loss of $24.8 million as of June 30, 2021). Adjusted EBITDA[1]of approximately $40.9 million for the same period (June 30, 2021 – $3.9 million).

  • Successful repayment and reversion of the third development partnership (“DP3”) which was formed during the fourth quarter of 2021, as well as the simultaneous closing of its fifth development partnership (“DP5“) in April 2022.

  • Closing of a new asset-backed securitization of certain producing oil and gas wells (the “Ease ABS“) with an initial size of $80 million. The ABS facility charges interest at one-month LIBOR (with a floor of 1.00%) plus 6%. As of June 30, 2022, approximately $75.8 million were unpaid on the ABS facility.

  • Payment of a monthly dividend of $0.03 per Subordinate Voting Share ($3.00 per Multiple Voting Share and $0.03 per Proportionate Voting Share) during each month of the second quarter of 2022.

The following table presents a reconciliation of net income before non-controlling interest and adjusted EBITDA:

Quarter ended June 30, 2022 Quarter ended June 30, 2021 Half-year ended June 30, 2022 Half-year ended June 30, 2021
Net profit/(loss) before non-controlling interest: $ 9,221,988 $ (24,751,922 ) $ (3,050,990 ) $ (32,978,534 )
(+) Depletion and depreciation charges 9,782,846 2,861,427 14,381,822 6,706,427
(+) Financing and interest charges 15,487,958 4,224,249 26,036,921 5,760,290
(+) Stock-based compensation expense 4,229,527 9,073,228 5,519,670 9,073,228
(+) Unrealized and realized (gains)/losses on commodity contracts 2,224,256 12,518,507 24,375,377 25,409,478
Adjusted EBITDA $ 40,946,575 $ 3,925,489 $ 67,262,800 $ 13,970,889

2022 objectives

Based on the current development plan, the Company expects to bring an additional 14 to 18 wells online in the second half of 2022. With the significant level of investment activity, the Company is on track to achieve a significant increase of its production profile from the second quarter of 2022. levels throughout the year.

The second quarter of 2022 was the company’s first full quarter of production from wells developed at its Webb County asset base. Results from wells in the Webb County acreage have exceeded expectations and development of these assets is expected to become an increasing priority as the company moves forward into 2023.

As previously announced, the Company is in the process of applying for a dual listing on the NASDAQ stock exchange. Although not under its control, the Company continues to work towards completing this process by the end of the third quarter of 2022. In the meantime, the Company expects to resume purchases under the normal course issuer bid approved because the Company’s Board of Directors believes that the current share price does not reflect the underlying value of the business.

The unaudited condensed interim consolidated financial statements and notes of Alpine Summit, together with the management’s discussion and analysis for the three and six months ended June 30, 2022 will be available under the Company’s issuer profile on “www.sedar. com” and “www.sec .gov/edgar”, as well as on the Company’s website at “www.alpinesummitenergy.com”.

About Alpine Summit Energy Partners, Inc.

Alpine Summit is a United States-based company that operates and develops oil and gas assets. For more information about the company, please visit www.alpinesummitenergy.com.

Further information

For more information, please contact:

Alec Sheaff, Director, Business Development and Investor Relations

Telephone: 615.475.8320

Email: [email protected]

Darren Moules, Chief Financial Officer

Phone: 403.390.9260

Email: [email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking information and statements

This press release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws and may also contain statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act. . of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or of the current state, but represent only Alpine Summit’s beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and beyond the control of Alpine Summit. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects”, “is planned”, “budget”, “planned”, “estimates”. ”, “plans”, “intends”, “anticipates”, “believes”, or the negative form or variations of these words and phrases or may contain statements that certain actions, events or results “could” , “could”, “would”, “may” or “will”, “will continue”, “will occur” or “will be achieved”. The forward-looking information and forward-looking statements contained herein may include, but are not limited to, statements relating to increased production, including the number of wells expected to come online, increased production profile and priority of wells in Webb County acreage, listing on the NASDAQ and the resumption of purchases within the framework of the OPRA.

By identifying such information and statements in this manner, Alpine Summit cautions the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performances or achievements of Alpine Summit. be materially different from those expressed or implied by such information and statements. Additionally, in connection with the forward-looking information and forward-looking statements contained in this press release, Alpine Summit has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the impact of the potential NASDAQ listing on relationships, including with regulatory bodies , employees, suppliers, contractors and competitors, as well as the potential for Alpine Summit to fail to meet NASDAQ listing standards or ultimately be approved for listing by NASDAQ; changes in general economic, business and political conditions, including changes in financial markets; changes in applicable laws; and compliance with extensive government regulations. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying any forward-looking information or statements prove incorrect, actual results may differ materially from those described herein as anticipated, planned, anticipated, believed, estimated or expected. Although Alpine Summit believes that the assumptions and factors used in the preparation and expectations contained in the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurances or warranties can be provided that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and Alpine Summit does not undertake to update any forward-looking information and/or forward-looking statements contained or referred to herein. , except in accordance with applicable securities laws.

Non-GAAP Financial Measures

Certain financial measures referred to in this press release are not recognized measures under IFRS and are referred to as non-GAAP financial measures. These non-GAAP measures do not have standardized meanings and therefore may not be comparable to the calculation of similar measures by other companies. The non-GAAP financial measure included in this press release is “Adjusted EBITDA”. This measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Non-GAAP financial measures are considered important factors that help investors evaluate the Company’s performance.

Adjusted EBITDA

Management uses Adjusted EBITDA to measure and monitor the Company’s underlying operating performance. Presenting these measures from period to period helps management and investors more easily assess earnings trends against results of prior periods. This measure includes net income/(loss) before non-controlling interest with the removal of gains/losses on commodity contracts and excludes other items that the Company considers to be “one-time” in nature to to monitor the operational performance of the main activity. and non-cash income or expense items.

Oil and Gas Reviews

The term “boe” means barrel of oil equivalent based on 1 boe per 6,000 cubic feet of natural gas. Boe can be misleading, especially when used in isolation. A conversion rate of 1 boe per 6,000 cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalence at the wellhead. “Boe/d” and “boepd” mean one barrel of oil equivalent per day.


[1] This is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures” section of this press release for additional information and a detailed reconciliation to the most directly comparable IFRS measure shown above.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/134676

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