CLEARVIEW REPORTS 2025 FIRST QUARTER RESULTS AND VOTING RESULTS FROM ANNUAL GENERAL AND SPECIAL MEETING

Cision Canada

6 days ago

CALGARY, AB, May 29, 2025 /CNW/ - Clearview Resources Ltd. (" Clearview" or the " Company") is pleased to announce its financial and operational results for the three months ended March 31, 2025.
FINANCIAL AND OPERATING HIGHLIGHTS
Financial
(1)
"Adjusted funds flow" and "net debt" are capital management measures that do not have any standardized meaning as prescribed by IFRS Accounting Standards and, therefore, may not be comparable with the calculations of similar measures of other entities. See "Non-IFRS Measures" contained within this press release.
(2)
Supplementary financial measure that does not have any standardized meaning as prescribed by IFRS Accounting Standards and, therefore, may not be comparable with the calculations of similar measures of other entities. See "Non-IFRS Measures" contained within this press release.
Production
Three months ended
Mar. 31
2025
Mar. 31
2024
% Change
Oil – bbl/d
354
361
(2)
Natural gas liquids – bbl/d
335
431
(22)
Total liquids – bbl/d
689
792
(13)
Natural gas – mcf/d
4,199
5,048
(17)
Total – boe/d
1,389
1,634
(15)
Realized sales prices (1)
(1)
Supplementary financial measure that does not have any standardized meaning as prescribed by IFRS Accounting Standards and, therefore, may not be comparable with the calculations of similar measures of other entities. See "Non-IFRS Measures" contained within this press release.
Netback analysis (1)
(1)
% Positive (Negative) is expressed as being positive (better performance in the category) or negative (reduced performance in the category) in relation to operating netback, corporate netback and net earnings.
(2)
Non-IFRS measure or ratio that does not have any standardized meaning as prescribed by IFRS Accounting Standards and, therefore, may not be comparable with the calculations of similar measures or ratios of other entities. See "Non-IFRS Measures" contained within this press release.
FINANCIAL AND OPERATIONAL RESULTS
Production for the three months ended March 31, 2025 was down 15% to an average of 1,389 boe/d versus the comparative first three months of 2024 at 1,634 boe/d. The decrease was primarily due to lower natural gas production as a result of normal declines, production back-out, third party infrastructure maintenance and miscellaneous well downtime due to very cold weather in February. Lower natural gas production led to reduced natural gas liquids volumes being produced as well due to the liquids-rich nature of the Company's natural gas production. These decreases were partially offset by the acquisition in the second quarter of 2024 of low decline oil production.
Adjusted funds flow (1) for the three months ended March 31, 2025 was $0.7 million ($0.06 per basic share (3)), a decrease of 42% compared to 2024. Capital expenditures (2) for the first quarter of 2025 were $1.2 million, primarily on the construction of a compressor project in the Northville area. The Company also paid a distribution of $1.8 million to its shareholders as a return of capital in the quarter.
Clearview had a net surplus outstanding of $3.0 million at March 31, 2025, which included cash on hand of $5.3 million, a working capital deficit of $1.1 million, no borrowings from its lender and the Company's convertible debentures of $1.2 million. Clearview's net surplus decreased from $5.2 million at December 31, 2024, as a result of the distribution paid to shareholders in March 2025 and capital expenditures in the first quarter of 2025 being greater than adjusted funds flow.
OPERATIONS
Production in the first quarter of 2025 averaged 1,389 boe/d and was negatively impacted by production freeze-offs during the bitter cold temperatures experienced in February, as well as production back-out at Northville. Production downtime experienced in the first quarter of 2025 was approximately 140 boe/d.
As a result of the disposition of certain underutilized infrastructure assets in the second quarter at its 100% owned Northville property in West Central Alberta for gross proceeds of $10.8 million, the Company commenced infrastructure modifications in the third quarter of 2024 for some of its natural gas production in the area. This was the first of three projects related to a low-pressure inlet to ensure Clearview's ability to produce its natural gas at Northville, partially mitigating the previously mentioned production back-out. The Company commenced construction activities on the 100% owned low-pressure inlet compression project in the first quarter of 2025 and commissioned the unit in late April 2025. The third and final field booster compression project was commissioned in mid-May. All projects were completed on time and on budget. Following the completion of infrastructure maintenance on the Nova Gas Transmission system in April and May of 2025, impacting available capacity for the Company's Northville and Pembina properties, corporate production over the past two weeks has averaged approximately 1,600 boe/d based on field estimates.
ANNUAL GENERAL AND SPECIAL MEETING
Clearview is also pleased to announce that all resolutions presented for approval at the annual general and special meeting of shareholders held on May 28, 2025 (the " Meeting") were duly passed. Each of the matters voted upon at the Meeting was set forth in the Company's management information circular dated April 28, 2025 (the " Circular").
Election of Directors
At the Meeting, the six nominees listed in the Circular were elected as directors of the Company to serve until the next annual meeting of the shareholders or until their successors are duly elected or appointed. The voting results were as follows:
Nominee
Votes For
Votes Withheld
Rod Hume
8,491,040
253,818
David Vankka
8,491,040
253,818
Bruce Francis
8,557,376
187,482
Edward (Ted) McFeely
8,660,603
84,255
Steven Glover
8,644,841
100,017
Craig Hauer
8,644,841
100,017
Appointment of Auditor
Deloitte LLP, Chartered Professional Accountants, were appointed to serve as auditor of the Company for the ensuing year, and the directors were authorized to fix their remuneration, with the voting results as follows:
Votes For
Votes Withheld
8,618,979
125,879
Advance Notice Bylaw
By way of ordinary resolution, the shareholders approved Clearview's advance notice bylaw at the Meeting, with the voting results as follows:
Votes For
Votes Against
8,312,117
432,741
STRATEGIC REPOSITIONING PROCESS
Clearview continues to work with its financial advisor, ATB Securities Inc., in connection with its strategic repositioning process (" Strategic Process") announced on March 25, 2025. The Company does not intend to comment further with respect to the Strategic Process unless and until it determines that additional disclosure is appropriate in the circumstances and in accordance with applicable securities laws. Clearview also cautions that there are no guarantees that the Strategic Process will result in any particular transaction, which may include, but are not limited to, a corporate sale, a corporate merger or takeover, public listing of shares, asset dispositions or an asset acquisition or reorganization. The Company will continue to operate its business as usual as it undertakes this Strategic Process.
Clearview would like to thank its shareholders for their continued support as we evaluate our internal development plans and external opportunities to grow production volumes and adjusted funds flow towards providing liquidity for shareholders.
Clearview's March 31, 2025 interim financial statements and management's discussion and analysis are available on the Company's website at www.clearviewres.com and SEDAR+ at www.sedarplus.ca.
FOR FURTHER INFORMATION PLEASE CONTACT:
Cautionary Note Regarding 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 Company's plans and other aspects of our anticipated future operations, management focus, strategies, financial, operating and production results, industry conditions, commodity prices and business opportunities. Specifically, forward-looking information in this press release may include, but is not limited to: expectations concerning Clearview's future plans, expectations regarding the strategic repositioning process, including the timing and results thereof, and expectations concerning anticipated pricing trends, growth opportunities, and market conditions. Forward-looking information typically uses words such as "anticipate", "believe", "project", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future, although not all forward-looking information contain these identifying words. Statements relating to "reserves" are deemed to be forward-looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitably produced in the future.
The forward-looking information is based on certain key expectations and assumptions made by our management, including expectations and assumptions concerning prevailing commodity prices and differentials, exchange rates, applicable royalty rates and tax laws; the impact government assistance programs will have on the Company; the impact on energy demands going forward and the inability of certain entities, including actions of OPEC and OPEC+ members, trade relations and tariffs; the impact on commodity prices, production and cash flow due to production shut-ins; future exchange rates; future debt levels; the availability and cost of financing, labour and services; the impact of increasing competition and the ability to market oil and natural gas successfully and our ability to access capital. Although Clearview believes 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 Clearview can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature, such information involves inherent risks and uncertainties which could include the possibility that Clearview will not be able to execute some or all of its ongoing programs; general economic and political conditions in Canada, the U.S. and globally, and in particular, the effect that those conditions have on commodity prices and our access to capital; further fluctuations in the price of crude oil, natural gas liquids and natural gas; fluctuations in foreign exchange or interest rates; adverse changes to differentials for crude oil and natural gas produced in Canada as compared to other markets and worsened transportation restrictions. These and other risks are set out in more detail in Clearview's Annual Information Form for the year ended December 31, 2024, available on SEDAR+ at sedarplus.ca.
Our actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that we will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide shareholders with a more complete perspective on our future operations, and such information may not be appropriate for other purposes. Readers are cautioned that the foregoing lists of factors are not exhaustive. 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.
Non-IFRS Measures
Throughout this press release and other materials disclosed by the Company, Clearview uses certain measures to analyze financial performance, financial position and cash flow. These non-IFRS and other financial measures do not have any standardized meaning prescribed under IFRS and, therefore, may not be comparable to similar measures presented by other entities. The non-IFRS and other financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with IFRS as indicators of Clearview's performance. Management believes that the presentation of these non-IFRS and other financial measures provides useful information to shareholders and investors in understanding and evaluating the Company's ongoing operating performance, and the measures provide increased transparency and the ability to better analyze Clearview's business performance.
Capital Management Measures
Adjusted Funds Flow
Adjusted funds flow represents cash provided by operating activities before changes in operating non-cash working capital and decommissioning expenditures. The Company considers this metric as a key measure that demonstrates the ability of the Company's continuing operations to generate the cash flow necessary to maintain production at current levels and fund future growth through capital investment, to repay debt and return capital to shareholders. Management believes that this measure provides an insightful assessment of the Company's operations on a continuing basis by eliminating the actual settlements of decommissioning obligations, the timing of which is discretionary. Adjusted funds flow should not be considered as an alternative to or more meaningful than cash provided by operating activities as determined in accordance with IFRS as an indicator of the Company's performance. Clearview's determination of adjusted funds flow may not be comparable to that reported by other companies. Clearview also presents adjusted funds flow per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of earnings per share. Please refer to Note 15(d) "Capital Management" in Clearview's March 31, 2025 interim financial statements for additional disclosure on Adjusted Funds Flow.
Net Debt
Clearview closely monitors its capital structure with a goal of maintaining a strong balance sheet to fund the future growth of the Company. The Company monitors net debt as part of its capital structure. The Company uses net debt (current assets, excluding financial derivatives, less current liabilities, excluding financial derivatives, less convertible debentures) to assess financial strength, capacity to finance future development and to assist in assessing the liquidity of the Company. Please refer to Note 15(d) "Capital Management" in Clearview's March 31, 2025 interim financial statements for additional disclosure on Net Debt.
Non-IFRS Measures and Ratios
Capital Expenditures
Capital expenditures equal additions to property, plant & equipment and additions to exploration & evaluation assets. Clearview considers capital expenditures to be a useful measure of adjusted funds flow used for capital reinvestment. The most directly comparable IFRS measure to capital expenditures is additions to property, plant & equipment and additions to exploration & evaluation assets.
Cash Finance Costs
Cash finance costs is calculated as finance costs less accretion of decommission obligations and accretion of convertible debenture discount. The most directly comparable IFRS measure to cash finance costs is finance costs. A reconciliation of cash finance costs to finance costs is set out below:
Cash Finance Costs per boe
Cash finance costs per boe is calculated by dividing cash finance costs by total production volumes sold in the period. Management considers cash finance costs per boe an important measure to evaluate the Company's cost of debt financing relative to the Company's corporate netback per boe.
Operating Netback per boe
Operating netback per boe is calculated by dividing operating netback by total production volumes sold in the period. Operating netback equals oil and natural gas sales plus processing income, less royalties, transportation expenses and operating expenses. Management considers operating netback per boe an important measure to evaluate its operational performance as it demonstrates its field level profitability relative to current commodity prices.
Corporate Netback per boe
Corporate netback per boe is calculated as operating netback less general and administrative expenses and finance costs, plus/(minus) realized gains (losses) on financial instruments, minus (plus) other costs (income), plus accretion of decommissioning obligations and convertible debentures divided by total production volumes sold in the period. Management considers corporate netback per boe an important measure to assist management and investors in assessing Clearview's overall cash profitability.
Supplementary Financial Measures
Adjusted funds flow per share is comprised of adjusted funds flow divided by the basic weighted average common shares.
Adjusted funds flow per diluted share is comprised of adjusted funds flow divided by the diluted weighted average common shares.
Realized sales price – oil is comprised of light crude oil commodity sales from production, as determined in accordance with IFRS, before deduction of transportation costs and excluding gains and losses on financial instruments, divided by the Company's oil production.
Realized sales price – ngl is comprised of natural gas liquids commodity sales from production, as determined in accordance with IFRS, before deduction of transportation costs and excluding gains and losses on financial instruments, divided by the Company's ngl production.
Realized sales price – natural gas is comprised of natural gas commodity sales from production, as determined in accordance with IFRS, before deduction of transportation costs and excluding gains and losses on financial instruments, divided by the Company's natural gas production.
Realized sales price – total is comprised of oil and natural gas sales from production, as determined in accordance with IFRS, before deduction of transportation costs and excluding gains and losses on financial instruments, divided by the Company's total production on a boe basis.
Oil and Gas Advisories
This press release contains certain oil and gas metrics which do not have standardized meanings or standard methods of calculation and, therefore, such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included in this document to provide readers with additional measures to evaluate our performance; however, such measures are not reliable indicators of our future performance, and future performance may not compare to our performance in previous periods and therefore, such metrics should not be unduly relied upon. Specifically, this press release contains the following metrics:
Boe means barrel of oil equivalent on the basis of 6 mcf of natural gas to 1 bbl of oil. The term "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6: 1, using a conversion on a 6: 1 basis may be misleading as an indication of value.
Abbreviations
SOURCE Clearview Resources Ltd.