Parkland Corp. reports second-quarter earnings up ahead of Sunoco takeover
The Calgary-based company says net earnings for the period ending June 30 were $172 million, up from $70 million a year ago.
Parkland says net earnings amounted to 97 cents per diluted share compared with 39 cents per diluted share a year earlier.
On an adjusted basis, the company says it earned $508 million, an increase from $504 million in the second quarter of 2024.
Chief executive Bob Espey says the firm's Burnaby refinery helped deliver above mid-cycle refining margins, which reflect Parkland's potential to grow as it merges with Sunoco.
The takeover is expected to be completed during the second half of this year.
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The latest local business news and a lookahead to the coming week.
This report by The Canadian Press was first published Aug. 6, 2025.
Companies in this story: (TSX: PKI)
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ORVANA REPORTS CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF FISCAL 2025
This news release does not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration. There will be no public offering of any of the securities mentioned in this news release in the United States. Don Mario Expansion on Track for Early 2026 Restart TORONTO, Aug. 12, 2025 /CNW/ - Orvana Minerals Corp. (TSX: ORV) (the "Company" or "Orvana") reports consolidated financial and operational results for the three and nine months ended June 30, 2025 ("Q3 FY2025"). This news release contains only a summary of the Company's financial and operations results for the first nine months of fiscal 2025, and readers should refer to the full set of unaudited condensed interim consolidated financial statements for the nine months ended June 30, 2025 and 2024, and accompanying management's discussion and analysis (MD&A), available on and on the Company's website at All financial figures contained herein are expressed in U.S. dollars unless otherwise noted. " All our teams are fully committed to completing the work needed to resume production at Don Mario in early 2026 – a milestone we expect will be transformational by enhancing our production profile", said Juan Gavidia, CEO of Orvana."Alongside construction progress and business readiness activities, we are advancing the remaining project financing, including a second bond program in Bolivia. This initiative aligns with our long-term strategy and the project's development objectives. The approval process is currently underway, and we expect to provide an update in the near future", he added (*). Highlights Bolivia - The Company continues to execute on its key growth project, highlighted by the following: Oxides Stockpile Project Construction Update The expansion of the Don Mario Plant in Bolivia continues to progress according to the defined work plan. Earthworks and concrete structures have been completed, and fabrication of steel structures, steel tanks, FRP clarifiers, and pumps is currently underway. Several critical equipment components, including cathodes and anodes manufactured in China, have already been dispatched, with the first shipments currently in transit. In parallel with the expansion works, overhaul activities are being carried out on existing circuits, along with business readiness initiatives. As of the end of July, 49% of the forecasted CAPEX has been disbursed. Financing Update — Bond Program II Approval Process Underway in Bolivia As part of its ongoing financing efforts to fund the completion of the project, the Company's Bolivian subsidiary is preparing a second bond issuance program in Bolivia (the "Bond Program II"). The application has been submitted to the Bolivian financial regulator for review and approval. The Company will provide further details in due course. The Company's objective is to complete the approval process for the Bond Program II before the end of fiscal 2025, in parallel with continued progress on construction activities. The Company remains focused on completing construction by the end of the 2025 calendar year, resuming production immediately thereafter in 2026 (*). Spain: Production and Operating Cash Flow — Operational improvements have driven stronger quarterly output and continue to support robust operating cash flow generation: Orovalle, the Company's subsidiary in Spain, produced 10,008 gold equivalent ounces ("GEO) (1) in Q3 FY2025, reflecting a 19% increase compared to 8,416 GEO (1) in the previous quarter. The increase in production was driven by higher gold output: 8,536 ounces in Q3 FY2025, compared to 6,792 ounces in the previous quarter. This was due to a 5% increase in tonnage milled, an 18% higher gold grade, and a 2% improvement in gold recovery. Year-to-date net cash provided by operating activities before working capital changes (1) of $26.1 million, compared with $15.0 million in the corresponding period of the previous year. Revised Guidance Orovalle continues progressing with the operational reorganization of the mining area to align its activities with the planned Life of Mine strategy. The Boinás mine will focus on the extraction of oxidized ore, while the Carlés mine will supply the skarn material required for blending (*). The Carlés mine resumed operations during the third quarter. Initial activities focused on ventilation assessments, dewatering, and ramp enhancements. From this point through to the end of the fiscal year, efforts will concentrate on development and backfilling. These activities have been outsourced to a local service provider. The onboarding process has experienced delays beyond initial projections, primarily due to the time required to obtain necessary permits and fully integrate all personnel. Consequently, mineral production originally scheduled for fiscal 2025 will be deferred to the first quarter of fiscal 2026, impacting the overall production plan for fiscal year 2025. The Boinás mine remained the sole source of ore during the third quarter, extracting 54,629 tonnes (wmt) of oxidized ore and 51,664 tonnes (wmt) of skarn, compared to 33,563 and 86,031 respectively in the previous quarter. Activities during the remaining months of the fiscal year 2025 will prioritize development and backfilling over ore extraction, with the objective of accessing the targeted oxidized ore fronts for the fiscal year 2026 production plan (*). In light of the impacts to the production plan outlined above, the Company is revising its FY2025 metal production estimates for Orovalle to reflect, among other factors, lower gold production due to the deferral of ore production at the Carlés mine and a lower proportion of oxides in the blend than initially planned, as well as higher copper production driven by improved grades and a higher proportion of skarn in the blend. Guidance for FY2025 is updated from that disclosed in the Company's Management's Discussion and Analysis for the three and six months ended March 31, 2025: (1) Gold Equivalent Ounces (GEO), cash costs per ounce (COC), all-in sustaining costs (AISC) per ounce and net cash provided by operating activities before working capital changes per unit are Non-GAAP Financial Performance Measures. For further information and detailed reconciliations, please see the "Non-GAAP Financial Performance Measures" section of the Company's Q3 FY2025 MD&A. (2) Fiscal 2025 previous guidance assumptions for COC and AISC included by-product commodity prices of $4.30 per pound of copper, and an average Euro to US Dollar exchange of 1.10. Fiscal 2025 revised guidance assumptions for COC and AISC include by-product commodity prices of $4.30 per pound of copper, an average Euro to US Dollar exchange of 1.12. Argentina - In Argentina, exploration work is advancing to position the Taguas Project for future growth, highlighted by the following (*): Orvana is repositioning the strategy of its Taguas Project, located in the San Juan province, now potentially including current sulfides resources, plus deep copper-gold porphyry opportunities. The Company is updating the Taguas Project geological modeling, with key objectives focused on enhancing the understanding of the oxide-sulfide transition zone, analyzing alteration zoning using infrared spectroscopy, and interpreting current drilling data. Geological modeling update is expected to be ready by the end of fiscal year 2025, coinciding with the commencement of geophysical works, which is expected to begin early in the Southern Hemisphere summer. The combined interpretation of the outcomes of both the geological modeling and geophysical surveys will be the key to define next steps regarding deep exploration drilling at the property, which the Company expects to commence in 2026. The Company remains on track to complete construction at Don Mario by year-end 2025 and resume production in early 2026. Orovalle operations will continue advancing the mine reorganization strategy as well as exploration programs in alignment with the Life of Mine strategy, while Taguas exploration is set to advance with updated geological modeling and deep exploration works (*). Selected Operational and Financial Information 1 GEO, EBITDA, Free Cash Flow, COC and AISC per ounce are Non-GAAP Financial Performance Measures. For further information and detailed reconciliations, please refer to the "Non-GAAP Financial Performance Measures" section of the Company's Q3 FY2025 MD&A, available at under Orvana's profile, or on the Company's website at 2 Capital expenditures are presented on a cash basis. Orvana subsidiary in Bolivia reports Q3 FY2025 unaudited financial results As a registered bond issuer on the Bolivian stock market, EMIPA is required to file its quarterly financial statements with Autoridad de Supervisión del Sistema Financiero ("ASFI"). The unaudited financial statements for the nine months ended June 30, 2025 for EMIPA can be viewed at the following ASFI landing page (the "ASFI Page"): To search for EMIPA's financial statements, select the following at the ASFI Page: ENTIDADES REGULADAS – EMISORES: Empresa Minera Paitití, S.A. EMIPA Ver: Estados Financieros (*) Certain statements in this news release contains forward-looking information within the meaning of applicable securities laws and is subject to the cautionary statements and risk factors set out under "Cautionary Statements – Forward-Looking Information" in this news release. ABOUT ORVANA – Orvana is a multi-mine gold-copper-silver company. Orvana's assets consist of the producing El Valle and Carlés gold-copper-silver mines in northern Spain, the Don Mario gold-silver property in Bolivia, and the Taguas property located in Argentina. Additional information is available at Orvana's website ( Cautionary Statements – Forward-Looking Information Certain statements in this news release constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance (often, but not always, using words or phrases such as "believes", "expects", "plans", "estimates" or "intends" or stating that certain actions, events or results "may", "could", "would", "might", "will", "are projected to" or "confident of" be taken or achieved) are not statements of historical fact, but are forward-looking statements. The forward-looking statements herein relate to, among other things, Orvana's ability to achieve improvement in free cash flow; the ability to maintain expected mining rates and expected throughput rates at El Valle Plant; the potential to extend the mine life of El Valle and Don Mario beyond their current life-of-mine estimates including specifically, but not limited to, Orvana's ability to optimize its assets to deliver shareholder value; estimates of future production (including without limitation, production guidance), operating costs and capital expenditures; mineral resource and reserve estimates; statements and information regarding future feasibility studies and their results; future transactions; future metal prices; the ability to achieve additional growth and geographic diversification; and future financial performance, including the ability to increase cash flow and profits; future financing requirements; mine development plans; the possibility of the conversion of inferred mineral resources to mineral reserves. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies, which includes, without limitation, as particularly set out in the notes accompanying the Company's most recently filed financial statements. The estimates and assumptions of the Company contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to the various assumptions set forth herein and in Orvana's most recently filed Management's Discussion & Analysis and Annual Information Form in respect of the Company's most recently completed fiscal year (the "Company Disclosures") or as otherwise expressly incorporated herein by reference as well as: there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; permitting, development, operations, expansion and acquisitions at El Valle, Don Mario and Taguas being consistent with the Company's current expectations; political developments in any jurisdiction in which the Company operates being consistent with its current expectations; certain price assumptions for gold, copper and silver; prices for key supplies being approximately consistent with current levels; production and cost of sales forecasts meeting expectations; the accuracy of the Company's current mineral reserve and mineral resource estimates; labour and materials costs increasing on a basis consistent with Orvana's current expectations; and the availability of necessary funds to execute the Company's plan. Without limiting the generality of the foregoing, this news release also contains certain "forward-looking statements" within the meaning of applicable securities legislation, including, without limitation, references to the results of the Company's exploration activities, including but not limited to, drilling results and analyses, mineral resource estimation, conceptual mine plan and operations, internal rate of return, sensitivities, taxes, net present value, potential recoveries, design parameters, operating costs, capital costs, production data and economic potential; the timing and costs for production decisions; permitting timelines and requirements; exploration and planned exploration programs; and the Company's general objectives and strategies. A variety of inherent risks, uncertainties and factors, many of which are beyond the Company's control, affect the operations, performance and results of the Company and its business, and could cause actual events or results to differ materially from estimated or anticipated events or results expressed or implied by forward looking statements. Some of these risks, uncertainties and factors include: the potential impact of global health and global economic conditions on the Company's business and operations, including: our ability to continue operations; and our ability to manage challenges presented by such conditions; the general economic, political and social impacts of the continuing conflict between Russia and Ukraine, our ability to support the sustainability of our business including through the development of crisis management plans, increasing stock levels for key supplies, monitoring of guidance from the medical community, and engagement with local communities and authorities; fluctuations in the price of gold, silver and copper; the need to recalculate estimates of resources based on actual production experience; the failure to achieve production estimates; variations in the grade of ore mined; variations in the cost of operations; the availability of qualified personnel; the Company's ability to obtain and maintain all necessary regulatory approvals and licenses; Orovalle's ability to complete the permitting process of the El Valle Tailings Storage Facility increasing the storage capacity; Orovalle's ability to complete the stabilization project of the legacy open pit wall; the Company's ability to use cyanide in its mining operations; risks generally associated with mineral exploration and development, including the Company's ability to continue to operate the El Valle and/or ability to resume operations at the Carlés Mine; the Company's ability to successfully implement an acid leaching circuit and ancillary facilities to process the current oxides stockpiles at Don Mario; the Company's ability to successfully carry out development plans at Taguas; sufficient funding to carry out exploration and development plans at Taguas and to process the oxides stockpiles at Don Mario; EMIPA's ability to finalize the OSP financial model and subsequently complete the required funding for the OSP; the Company's ability to acquire and develop mineral properties and to successfully integrate such acquisitions; the Company's ability to execute on its strategy; the Company's ability to obtain financing when required on terms that are acceptable to the Company; challenges to the Company's interests in its property and mineral rights; current, pending and proposed legislative or regulatory developments or changes in political, social or economic conditions in the countries in which the Company operates; general economic conditions worldwide; the challenges presented by global health conditions; fluctuating operational costs such as, but not limited to, power supply costs; current and future environmental matters; and the risks identified in the Company's disclosures. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements and reference should also be made to the Company's Disclosures for a description of additional risk factors. Any forward-looking statements made herein with respect to the anticipated development and exploration of the Company's mineral projects are intended to provide an overview of management's expectations with respect to certain future activities of the Company and may not be appropriate for other purposes. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions and, except as required by law, the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Readers are cautioned not to put undue reliance on forward-looking statements. The forward-looking statements made in this information are intended to provide an overview of management's expectations with respect to certain future operating activities of the Company and may not be appropriate for other purposes.
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33 minutes ago
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Prairie Provident Announces Second Quarter 2025 Results
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Q2 2025 operating netback2 was $4.9 million ($19.45/boe), a 634% increase, relative to Q2 2024. The increase was a result of higher production in Q2 2025 and lower operating expenses on a per boe basis, offset by weakened crude oil commodity prices. Net loss was $6.5 million in Q2 2025, a $0.4 million reduction compared to Q2 2024. The decrease was due to higher operating netback, foreign exchange translation differences and lower general and administrative expenses, offset by higher impairment expenses, depletion and depreciation and finance costs. In early June 2025, the Company received additional funding of US$0.6 million through an issuance of additional Second Lien Notes to its current lender. __________ Comprised of approximately 1,616 bbl/d of medium crude oil, 6,260 Mcf/d of conventional natural gas and 102 bbl/d of NGLs. Operating netback is a Non-GAAP financial measure and is defined below under 'Advisories - Non-GAAP and Other Financial Measures'. MICHICHI BASAL QUARTZ UPDATE The following table summarizes the initial 90-day production ('IP90') rates and key operational details for the three BQ wells drilled during the first quarter of 2025, which were brought on production in April 2025: (1) Initial production rates are based on field estimates at wellhead. See 'Advisories – Initial Production Rates' below. ARTICLE CONTINUES BELOW OUTLOOK Prairie Provident continues to be excited with the emerging BQ/Ellerslie oil play on its Michichi lands. Direct offsetting operational activity remains strong. To date, Prairie Provident has drilled five 100% working interest Basal Quartz wells on its Michichi land base. The Michichi BQ play is a statistical play with variable reservoir and geological rock characteristics. The Company's Michichi core area consists of several defined geological channel systems that Prairie Provident is actively pursuing. This supports the need for additional delineation drilling on the Company's land base. Prairie Provident has identified approximately 50 potential drilling opportunities targeting medium crude oil on its Michichi lands. Legacy vertical well control, extensive 3D/2D seismic data, and offset drilling activity are important factors in de-risking the Michichi BQ play. The Company owns and controls key Michichi infrastructure, which provides a competitive advantage for the future development of this play, and has sizeable tax pools, including approximately $330 million of non-capital losses. FINANCIAL AND OPERATING SUMMARY (1) Restated. For further information, refer to the 'Restatements' section in the MD&A . (2) This is a Non-GAAP financial measure. For further information, refer to 'Advisories - Non-GAAP and Other Financial Measures' below. (3) The term barrels of oil equivalent ('boe') may be misleading, particularly if used in isolation. Per boe amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 Mcf) of natural gas to one barrel (1 bbl) of crude oil. Refer to 'Advisories - Barrels of Oil Equivalent' below. ABOUT PRAIRIE PROVIDENT Prairie Provident is a Calgary-based company engaged in the development of oil and natural gas properties in Alberta. The Company's strategy is to optimize cash flow from its existing assets to fund low-risk development and maintain stable cash flow while limiting its production decline. For further information, please contact: Dale Miller, Executive Chairman Phone: (403) 292-8150 Email: investor@ ADVISORIES Forward-Looking Statements This news release contains certain statements ('forward-looking statements') that constitute forward- looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future performance, events or circumstances, are based upon internal assumptions, plans, intentions, expectations and beliefs, and are subject to risks and uncertainties that may cause actual results or events to differ materially from those indicated or suggested therein. All statements other than statements of current or historical fact constitute forward-looking statements. Forward- looking statements are typically, but not always, identified by words such as 'anticipate', 'believe', 'expect', 'intend', 'plan', 'budget', 'forecast', 'target', 'estimate', 'propose', 'potential', 'project', 'continue', 'may', 'will', 'should' or similar words suggesting future outcomes or events or statements regarding an outlook. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Without limiting the foregoing, this news release contains forward-looking statements pertaining to Basal Quartz drilling opportunities. Forward-looking statements are based on a number of material factors, expectations or assumptions of Prairie Provident which have been used to develop such statements, but which may prove to be incorrect. Although the Company believes that the expectations and assumptions reflected in such forward-looking statements are reasonable, undue reliance should not be placed on forward-looking statements, which are inherently uncertain and depend upon the accuracy of such expectations and assumptions. Prairie Provident can give no assurance that the forward-looking statements contained herein will prove to be correct or that the expectations and assumptions upon which they are based will occur or be realized. Actual results or events will differ, and the differences may be material and adverse to the Company. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: results from drilling and development activities; consistency with past operations; the quality of the reservoirs in which Prairie Provident operates and continued performance from existing wells (including with respect to production profile, decline rate and product type mix); the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Prairie Provident's reserves volumes; future commodity prices; future operating and other costs; future USD/CAD exchange rates; future interest rates; continued availability of external financing and internally generated cash flow to fund Prairie Provident's current and future plans and expenditures, with external financing on acceptable terms; the impact of competition; the general stability of the economic and political environment in which Prairie Provident operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Prairie Provident to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Prairie Provident has an interest in to operate the field in a safe, efficient and effective manner; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Prairie Provident to secure adequate product transportation; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Prairie Provident operates; and the ability of Prairie Provident to successfully market its oil and natural gas production. The forward-looking statements included in this news release are not guarantees of future performance or promises of future outcomes and should not be relied upon. Such statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward- looking statements including, without limitation: reduced access to external debt financing; higher interest costs or other restrictive terms of debt financing; changes in realized commodity prices; changes in the demand for or supply of Prairie Provident's products; the early stage of development of some of the evaluated areas and zones; the potential for variation in the quality of the geologic formations targeted by Prairie Provident's operations; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; the imposition of new or additional tariffs or other restrictive trade measures or countermeasures affecting trade between Canada and the United States; changes in development plans of Prairie Provident or by third party operators; increased debt levels or debt service requirements; inaccurate estimation of Prairie Provident's oil and reserves volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and such other risks as may be detailed from time-to-time in Prairie Provident's public disclosure documents (including, without limitation, those risks identified in this news release and Prairie Provident's current Annual Information Form dated March 31, 2025 as filed with Canadian securities regulators and available from the SEDAR+ website ( under Prairie Provident's issuer profile). The forward-looking statements contained in this news release speak only as of the date of this news release, and Prairie Provident assumes no obligation to publicly update or revise them to reflect new events or circumstances, or otherwise, except as may be required pursuant to applicable laws. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Oil and Gas Reader Advisories Barrels of Oil Equivalent The oil and gas industry commonly expresses production volumes and reserves on a 'barrel of oil equivalent' ('boe') basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet to one barrel of oil. The intention is to sum oil and natural gas measurement units into one basis for improved analysis of results and comparisons with other industry participants. A boe conversion ratio of six thousand cubic feet to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead nor at the plant gate, which is where Prairie Provident sells its production volumes. Boes may therefore be a misleading measure, particularly if used in isolation. 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 ratio of 6:1, utilizing a 6:1 conversion ratio may be misleading as an indication of value. Potential Drilling Opportunities vs Booked Locations This news release refers to potential drilling opportunities and booked locations. Unless otherwise indicated, references to booked locations in this news release are references to proved drilling locations or probable drilling locations, being locations to which Trimble Engineering Associates Ltd. (Trimble), the Company's independent qualified reserves evaluator, attributed proved or probable reserves in its most recent year-end evaluation of Prairie Provident's reserves data, effective December 31, 2024. Trimble's year‑end evaluation was in accordance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities and, pursuant thereto, the Canadian Oil and Gas Evaluation (COGE) Handbook. References in this news release to potential drilling opportunities are references to locations for which there are no attributed reserves or resources, but which the Company internally estimates can be drilled based on current land holdings, industry practice regarding well density, and internal review of geologic, geophysical, seismic, engineering, production and resource information. There is no certainty that the Company will drill any particular locations, or that drilling activity on any locations will result in additional reserves, resources or production. Locations on which Prairie Provident in fact drills wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, commodity prices, costs, actual drilling results, additional reservoir information and other factors. There is a higher level of risk associated with locations that are potential drilling opportunities and not booked locations. Prairie Provident generally has less information about reservoir characteristics associated with locations that are potential drilling opportunities and, accordingly, there is greater uncertainty whether wells will ultimately be drilled in such locations and, if drilled, whether they will result in additional reserves, resources or production. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Initial Production Rates This news release discloses initial production (IP) rates for certain wells as indicated. Initial production rates are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. Actual results will differ from those realized during an initial short-term production period, and the difference may be material. Non-GAAP and Other Financial Measures This news release discloses certain financial measures that are 'non-GAAP financial measures', 'non-GAAP ratios' or 'supplementary financial measures' within the meaning of applicable Canadian securities laws. Such measures do not have a standardized or prescribed meaning under International Financial Reporting Standards (IFRS) and, accordingly, may not be comparable to similar financial measures disclosed by other issuers. Non-GAAP and other financial measures are provided as supplementary information by which readers may wish to consider the Company's performance but should not be relied upon for comparative or investment purposes. Readers must not consider Non-GAAP and other financial measures in isolation or as a substitute for analysis of the Company's financial results as reported under IFRS. For a reconciliation of each non-GAAP measure to its nearest IFRS measure, please refer to the 'Non-GAAP and Other Financial Measures' section of the MD&A. This news release also includes reference to certain metrics commonly used in the oil and gas industry but which do not have a standardized or prescribed meanings under the Canadian Oil and Gas Evaluation (COGE) Handbook or applicable law. Such metrics are similarly provided as supplementary information by which readers may wish to consider the Company's performance but should not be relied upon for comparative or investment purposes. Following is additional information on non-GAAP and other financial measures and oil and gas metrics used in this news release. Adjusted Funds Flow ('AFF') - AFF is a Non-GAAP financial measure calculated based on net cash from operating activities before changes in non-cash working capital, transaction costs, restructuring costs and other non-recurring items. The Company believes that AFF provides a useful measure of the Company's operational performance on a continuing basis by eliminating certain non-cash charges and charges that are non-recurring or discretionary. Management utilizes the measure to assess the Company's ability to finance capital expenditures and debt repayments. AFF as presented is not intended to represent cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with IFRS. AFF per share is calculated based on the weighted average number of common shares outstanding consistent with the calculation of earnings per share. AFF per share is a Non-GAAP ratio. Operating Netback - Operating netback is a Non-GAAP financial measure commonly used in the oil and gas industry, which the Company believes is a useful measure to assist management and investors to evaluate operating performance. Operating netback included in this report were determined by taking oil and gas revenues less royalties and operating expenses. Operating netback, after realized gains (losses) on derivatives, adjusts the operating netback for only the realized portion of gains and losses on derivatives. Operating netback may be expressed in absolute dollar terms or on a per boe basis. Per boe amounts are determined by dividing the absolute value by working interest production. Operating netback per boe and operating netback, after realized gains (losses) on derivatives per boe are Non-GAAP financial ratios. Capital Expenditures and Net Capital Expenditures - Capital expenditures and net capital expenditures are Non-GAAP financial measures commonly used in the petroleum and natural gas industry, which the Company believes are useful measures to assist management and investors to assess Prairie Provident's investment in its existing asset base. Capital expenditures is calculated as the sum of property and equipment expenditures and exploration and evaluation expenditures from the consolidated statements of cash flows that is most directly comparable to cash flows used in investing activities. Net capital expenditures is calculated as capital expenditures, plus acquisitions from business combinations, which is the outflow cash consideration paid to acquire oil and gas properties, less asset dispositions (net of acquisitions), which is the cash proceeds from the disposition of producing properties and undeveloped lands.
