Category: Canada

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CALGARY, Alberta, Nov. 05, 2024 (GLOBE NEWSWIRE) — Parex Resources Inc. (“Parex” or the “Company”) (TSX: PXT) is pleased to announce its financial and operating results for the three-month period ended September 30, 2024, the declaration of its Q4 2024 regular dividend of C$0.385 per share, as well as an operational update. All amounts herein are in United States Dollars (“USD”) unless otherwise stated.

“Following lower than expected results, Management is focused on driving production efficiency and optimizing performance from our key assets,” commented Imad Mohsen, President & Chief Executive Officer.

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“As we transition from 2024 to our 2025 planning phase, we are committed to improving results, delivering safe and reliable production, and positioning Parex to outperform.”

Key Highlights

• Generated Q3 2024 funds flow provided by operations (“FFO”)⁽¹⁾ of $152 million and FFO per share⁽²⁾⁽³⁾ of $1.50.
• FY 2024 average production guidance increased from 48,000-50,000 boe/d to 49,000-50,000 boe/d, based on stable operations at key assets as well as successful well results at Capachos and LLA-32.
• FY 2024 capital expenditure⁽⁶⁾ guidance updated from $370-390 million to $350-370 million, based on a conservative capital program focused on improving capital returns.
• Declared Q4 2024 regular dividend of C$0.385 per share⁽⁴⁾ or C$1.54 per share annualized.
• Repurchased approximately 4.5 million shares YTD 2024 under the Company’s current normal course issuer bid (“NCIB”).
• October 2024 average production was 47,000 boe/d⁽⁵⁾.

Q3 2024 Results

• Quarterly average oil & natural gas production was 47,569 boe/d⁽⁷⁾.
• Realized net income of $66 million or $0.65 per share basic⁽³⁾.
• Generated quarterly FFO⁽¹⁾ of $152 million and FFO per share⁽²⁾⁽³⁾ of $1.50, a 4% decrease and a 1% increase from Q3 2023, respectively.
• Current taxes decreased from Q2 2024 by $39 million due to reduced corporate production as well as lower global oil prices; the Company also moved from an estimated 15% surtax to a projected 10% surtax with the depreciation of Brent oil price in the quarter.
• Produced an operating netback⁽²⁾ of $39.64/boe and an FFO netback⁽²⁾ of $34.58/boe from an average Brent price of $78.71/bbl.
• Incurred $82 million of capital expenditures⁽⁶⁾, primarily from activities at LLA-34, Capachos, LLA-32 and LLA-122.
• Generated $69 million of free funds flow⁽⁶⁾ that was used for return of capital initiatives and $20 million of bank debt repayment; working capital surplus⁽¹⁾ was $38 million and cash $147 million at quarter end.
• Paid a C$0.385 per share⁽⁴⁾ regular quarterly dividend and repurchased 1,584,650 shares.

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(1) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory.”
(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory.”
(3) Per share amounts (with the exception of dividends) are based on weighted-average common shares; dividends paid per share are based on the number of common shares outstanding at each dividend date.
(4) Supplementary financial measure. See “Non-GAAP and Other Financial Measures Advisory.”
(5) Light & medium crude oil: ~8,956 bbl/d, heavy crude oil: ~37,325 bbl/d, conventional natural gas: ~4,316 mcf/d; rounded for presentation purposes.
(6) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory.”
(7) See “Operational and Financial Highlights” for a breakdown of production by product type.

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(1) Reference to crude oil or natural gas in the above table and elsewhere in this press release refer to the light and medium crude oil and heavy crude oil and conventional natural gas, respectively, product types as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.
(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory”.
(3) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory”.
(4) Supplementary financial measure. See “Non-GAAP and Other Financial Measures Advisory”.
(5) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory”.
(6) Per share amounts (with the exception of dividends) are based on weighted average common shares. Dividends paid per share are based on the number of common shares outstanding at each dividend record date.
(7) Syndicated bank credit facility borrowing base of $200.0 million as at September 30, 2024.
(8) Diluted shares as stated include common shares and stock options outstanding at period end; September 30, 2024 closing price was C$12.00 per share.

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Operational Update

2024 Corporate Guidance Update

FY 2024 average production guidance has been updated to 49,000 to 50,000 boe/d (49,500 boe/d midpoint) and concurrently, capital expenditure⁽⁵⁾ guidance for the year has been updated to $350 to $370 million ($360 million midpoint).

At $80/bbl Brent crude oil price, funds flow provided by operations⁽⁴⁾ is expected to be $575 to $585 million and generate roughly $220 million of free funds flow⁽⁵⁾ at the midpoint of guidance. A key driver of the funds flow provided by operations increase from the prior updated guidance is a lower projected effective tax rate for FY 2024.

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(1) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory”.
(2) 2024 updated assumptions: Vasconia differential: ~$4/bbl; production expense: $13-14/bbl; transportation expense: ~$3.50/bbl; G&A expense: ~$4.00/bbl; effective tax rate: 14-17%.
(3) Supplementary financial measure. See “Non-GAAP and Other Financial Measures Advisory”.
(4) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory”.
(5) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory”.

Cabrestero and LLA-34⁽¹⁾⁽²⁾

The Cabrestero and LLA-34 blocks had average production of approximately 37,000 bbl/d of heavy crude oil (net) combined in Q3 2024. During the quarter, both blocks experienced higher-than-expected downtime that adversely affected quarterly production.

Additionally, at both blocks, annual decline rates are broadly in line with Management budgeting where there is a continued focus on ramping up injection rates. At Cabrestero specifically, the Company continues to progress its polymer injection pilot and is moving towards approving a full field expansion based on success to date.

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(1) Cabrestero: 100% W.I.
(2) LLA-34: 55% W.I.

LLA-32 – Exploitation Update⁽¹⁾

Following the mid-year reallocation of 2024 capital to LLA-32, the Company has now drilled three successful wells on the block. The most recent well, the second follow-up appraisal well, is producing roughly 2,000 bbl/d of light crude oil (gross)⁽²⁾. Based on success to date, Parex is continuing to invest capital and has spud a horizontal well.

(1) 87.5% W.I.
(2) Short-term production rate. See “Oil & Gas Matters Advisory.”

Northern Llanos – Capachos Update⁽¹⁾

The first well of a three-well campaign came online in late Q3 2024. The well is currently producing roughly 4,000 bbl/d of light crude oil with approximately 6,000 mcf/d of natural gas (gross)⁽²⁾.

Parex plans to fulfill an exploration commitment and spud the second well of the campaign in the coming weeks.

(1) 50% W.I.
(2) Short-term production rate. See “Oil & Gas Matters Advisory.”

Northern Llanos – Arauca⁽¹⁾

The Arauca-81 well is expected to be onstream in Q4 2024, following a successful operational sidetrack.

(1) Business Collaboration Agreement with Ecopetrol S.A. (Parex 50% Participating Share); Ecopetrol S.A. currently holds 100% of the working interest in the Convenio Arauca while the assignment procedure is pending.

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Big ‘E’ Exploration – Llanos Foothills – LLA-122⁽¹⁾

The drilling of the Arantes well in the high-potential Colombian Foothills continues to progress on an extended timeline. In Q3 2024, an operational sidetrack was executed following a stuck pipe event; the sidetrack was successful, and the well is now at roughly 17,750 feet. Parex is progressing toward the setting of the final liner immediately above the zones of interest, prior to drilling and evaluating the prospective zones. Based on the current pace of operations, the Company expects preliminary results by YE 2024.

(1) 50% W.I.

Return of Capital Update

Q4 2024 Dividend

Parex’s Board of Directors have approved a Q4 2024 regular dividend of C$0.385 per share to shareholders of record on December 9, 2024, to be paid on December 16, 2024. This regular dividend payment to shareholders is designated as an “eligible dividend” for purposes of the Income Tax Act (Canada).

Current Normal Course Issuer Bid

As at October 31, 2024, Parex has repurchased approximately 4.5 million shares under its current NCIB, for total consideration of roughly C$85 million.

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2025 Budget & Guidance

The Company continues to assess its short- and long-term development and exploration opportunities as it progresses through its 2025 budgeting and planning process, with next year’s corporate guidance expected to be released in January 2025.

Q3 2024 Results – Conference Call & Webcast

Parex will host a conference call and webcast to discuss its Q3 2024 results on Wednesday, November 6, 2024, beginning at 9:30 am MT (11:30 am ET). To participate in the conference call or webcast, please see the access information below:

About Parex Resources Inc.

Parex is one of the largest independent oil and gas companies in Colombia, focusing on sustainable conventional production. The Company’s corporate headquarters are in Calgary, Canada, with an operating office in Bogotá, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

For more information, please contact:

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Mike Kruchten
Senior Vice President, Capital Markets & Corporate Planning
Parex Resources Inc.
403-517-1733
investor.relations@parexresources.com

Steven Eirich
Investor Relations & Communications Advisor
Parex Resources Inc.
587-293-3286
investor.relations@parexresources.com

NOT FOR DISTRIBUTION OR FOR DISSEMINATION IN THE UNITED STATES

Non-GAAP and Other Financial Measures Advisory

This press release uses various “non-GAAP financial measures”, “non-GAAP ratios”, “supplementary financial measures” and “capital management measures” (as such terms are defined in NI 52-112), which are described in further detail below. Such measures are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Investors are cautioned that non-GAAP financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP measures as indicators of Parex’s performance.

These measures facilitate management’s comparisons to the Company’s historical operating results in assessing its results and strategic and operational decision-making and may be used by financial analysts and others in the oil and natural gas industry to evaluate the Company’s performance. Further, management believes that such financial measures are useful supplemental information to analyze operating performance and provide an indication of the results generated by the Company’s principal business activities.

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Set forth below is a description of the non-GAAP financial measures, non-GAAP ratios, supplementary financial measures and capital management measures used in this press release.

Non-GAAP Financial Measures

Capital expenditures, is a non-GAAP financial measure which the Company uses to describe its capital costs associated with oil and gas expenditures. The measure considers both property, plant and equipment expenditures and exploration and evaluation asset expenditures which are items in the Company’s statement of cash flows for the period and is calculated as follows:

Free funds flow, is a non-GAAP financial measure that is determined by funds flow provided by operations less capital expenditures. The Company considers free funds flow to be a key measure as it demonstrates Parex’s ability to fund return of capital, such as the NCIB and dividends, without accessing outside funds and is calculated as follows:

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EBITDA, is a non-GAAP financial measure that is defined as net income adjusted for finance income and expenses, income tax expense (recovery) and depletion, depreciation and amortization.

Adjusted EBITDA, is a non-GAAP financial measure defined as EBITDA adjusted for non-cash impairment charges, unrealized foreign exchange gains (losses), unrealized gains (losses) on risk management contracts and share-based compensation expense (recovery).

The Company considers EBITDA and Adjusted EBITDA to be key measures as they demonstrates Parex’s profitability before finance income and expenses, taxes, depletion, depreciation and amortization and other non-cash items. A reconciliation from net income to EBITDA and Adjusted EBITDA is as follows:

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Non-GAAP Ratios

Operating netback per boe, is a non-GAAP ratio that the Company considers to be a key measure as it demonstrates Parex’ profitability relative to current commodity prices. Parex calculates operating netback per boe as operating netback (calculated as oil and natural gas sales from production, less royalties, operating, and transportation expense) divided by the total equivalent sales volume including purchased oil volumes for oil and natural gas sales price and transportation expense per boe and by the total equivalent sales volume excluding purchased oil volumes for royalties and operating expense per boe.

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Funds flow provided by operations netback per boe or FFO netback per boe, is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by produced oil and natural gas sales volumes. The Company considers funds flow provided by operations netback per boe to be a key measure as it demonstrates Parex’s profitability after all cash costs relative to current commodity prices.

Basic funds flow provided by operations per share or FFO per share,
is a non-GAAP ratio that is calculated by dividing funds flow provided by operations by the weighted average number of basic shares outstanding. Parex presents basic funds flow provided by operations per share whereby per share amounts are calculated using weighted-average shares outstanding, consistent with the calculation of earnings per share. The Company considers basic funds flow provided by operations per share or FFO per share to be a key measure as it demonstrates Parex’s profitability after all cash costs relative to the weighted average number of basic shares outstanding.

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Capital Management Measures

Funds flow provided by operations, is a capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The Company considers funds flow provided by operations to be a key measure as it demonstrates Parex’s profitability after all cash costs. A reconciliation from cash provided by operating activities to funds flow provided by operations is as follows:

Working capital surplus (deficit), is a capital management measure which the Company uses to describe its liquidity position and ability to meet its short-term liabilities. Working capital surplus (deficit) defined as current assets less current liabilities.

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Supplementary Financial Measures

“Oil and natural gas sales per boe” is determined by sales revenue excluding risk management contracts, as determined in accordance with IFRS, divided by total equivalent sales volume including purchased oil volumes.

“Royalties per boe” is comprised of royalties, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.

“Net revenue per boe” is comprised of net revenue, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.

“Production expense per boe” is comprised of production expense, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.

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“Transportation expense per boe” is comprised of transportation expense, as determined in accordance with IFRS, divided by the total equivalent sales volumes including purchased oil volumes.

“Dividends paid per share”
is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.

Oil & Gas Matters Advisory

The term “Boe” means a barrel of oil equivalent on the basis of 6 Mcf of natural gas to 1 barrel of oil (“bbl”). Boe’s may be misleading, particularly if used in isolation. A boe conversation 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. Given 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 Mcf: 1Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.

This press release contains a number of oil and gas metrics, including, operating netbacks and FFO netbacks. These oil and gas metrics have been prepared by management and 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 herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon. Management uses these oil and gas metrics for its own performance measurements and to provide security holders with measures to compare the Company’s operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this news release, should not be relied upon for investment or other purposes.

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Any reference in this press release to short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determination of the rates at which such wells will continue production and decline thereafter and readers are cautioned not to place reliance on such rates in calculating the aggregate production of Parex.

Distribution Advisory

The Company’s future shareholder distributions, including but not limited to the payment of dividends and the acquisition by the Company of its shares pursuant to an NCIB, if any, and the level thereof is uncertain. Any decision to pay further dividends on the common shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith and any special dividends) or acquire shares of the Company will be subject to the discretion of the Board of Directors of Parex and may depend on a variety of factors, including, without limitation the Company’s business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and satisfaction of the solvency tests imposed on the Company under applicable corporate law. Further, the actual amount, the declaration date, the record date and the payment date of any dividend are subject to the discretion of the Board. There can be no assurance that the Company will pay dividends or repurchase any shares of the Company in the future.

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Advisory on Forward Looking Statements

Certain information regarding Parex set forth in this document contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words “plan”, “expect”, “prospective”, “project”, “intend”, “believe”, “should”, “anticipate”, “estimate”, “forecast”, “guidance”, “budget” or other similar words, or statements that certain events or conditions “may” or “will” occur are intended to identify forward-looking statements. Such statements represent Parex’s internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. These statements are only predictions and actual events or results may differ materially. Although the Company’s management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Parex’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex.

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In particular, forward-looking statements contained in this document include, but are not limited to, statements with respect to: the Company’s focus, plans, priorities and strategies; average production guidance and capital expenditure guidance; expectations and plans regarding the Cabrestero and LLA-34 blocks, the LLA-32 block, Northern Llanos – Capachos, the Arauca-81 well, and Llanos Foothills – LLA-122; the anticipated terms of the Company’s Q4 2024 regular quarterly dividend, including its expectation that it will be designated as an “eligible dividend”; and the anticipated date and time of Parex’s conference call to discuss Q3 2024 results.

These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada and Colombia; prolonged volatility in commodity prices; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced in Canada and Colombia; determinations by OPEC and other countries as to production levels; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities in Canada and Colombia; the risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil industry; changes to pipeline capacity; ability to access sufficient capital from internal and external sources; failure of counterparties to perform under contracts; the risk that Brent oil prices may be lower than anticipated; the risk that Parex’s evaluation of its existing portfolio of development and exploration opportunities may not be consistent with its expectations; the risk that Parex may not have sufficient financial resources in the future to provide distributions to its shareholders; the risk that the Board may not declare dividends in the future or that Parex’s dividend policy changes; the risk that Parex may not be responsive to changes in commodity prices; the risk that Parex may not meet its production guidance for the year ended December 31, 2024; the risk that Parex’s 2024 capital expenditures may be greater than anticipated; the risk that plans and expectations related to Parex’s drilling program as disclosed herein do not materialize as expected and/or at all; the risk that Parex may not be able to increase production into year end; and other factors, many of which are beyond the control of the Company.

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Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Parex’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).

Although the forward-looking statements contained in this document are based upon assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding, among other things: current and anticipated commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil, including the anticipated Brent oil price; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; receipt of partner, regulatory and community approvals; royalty rates; future operating costs; uninterrupted access to areas of Parex’s operations and infrastructure; recoverability of reserves and future production rates; the status of litigation; timing of drilling and completion of wells; on-stream timing of production from successful exploration wells; operational performance of non-operated producing fields; pipeline capacity; that Parex will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that Parex’s conduct and results of operations will be consistent with its expectations; that Parex will have the ability to develop its oil and gas properties in the manner currently contemplated; that Parex’s evaluation of its existing portfolio of development and exploration opportunities is consistent with its expectations; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; that the estimates of Parex’s production and reserves volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects; that Parex will be able to obtain contract extensions or fulfill the contractual obligations required to retain its rights to explore, develop and exploit any of its undeveloped properties; that Parex will have sufficient financial resources to pay dividends and acquire shares pursuant to its NCIB in the future; that Parex is able to execute its plans with respect to the Company’s drilling program as disclosed herein; and other matters.

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Management has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide shareholders with a more complete perspective on Parex’s current and future operations and such information may not be appropriate for other purposes. Parex’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Parex will derive. These forward-looking statements are made as of the date of this document and Parex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

This press release contains information that may be considered a financial outlook under applicable securities laws about the Company’s potential financial position, including, but not limited to; Parex’s FY 2024 capital expenditure guidance and midpoint capital expenditure guidance; Parex 2024 guidance, including anticipated Brent crude oil average prices, funds flow provided by operations netback; funds flow provided by operations, capital expenditures, free funds flow; and the anticipated terms of the Company’s Q4 2024 regular quarterly dividend including its expectation that it will be designated as an “eligible dividend”, all of which are subject to numerous assumptions, risk factors, limitations and qualifications, including those set forth in the above paragraphs. The actual results of operations of the Company and the resulting financial results will vary from the amounts set forth in this press release and such variations may be material. This information has been provided for illustration only and with respect to future periods are based on budgets and forecasts that are speculative and are subject to a variety of contingencies and may not be appropriate for other purposes. Accordingly, these estimates are not to be relied upon as indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such financial outlook. The financial outlook contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about the Company’s potential future business operations. Readers are cautioned that the financial outlook contained in this press release is not conclusive and is subject to change.

The following abbreviations used in this press release have the meanings set forth below:

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Broadcast and Commercial Music Revenues Achieve Fourth Consecutive Quarter of Double-Digit Organic Growth

• Organic growth of 15.6% year-over-year in Broadcast and Recurring Commercial Music Revenues largely driven by FAST channel sales;
• Revenues increased 13.4% to $93.6 million in the second quarter of fiscal 2025 from $82.5 million in the second quarter of 2024;
• Adjusted EBITDA⁽¹⁾ grew 15.2% to $34.0 million in the second quarter of 2025 from $29.5 million in the second quarter of 2024. Adjusted EBITDA by segment was $25.0 million or 41.0% of revenues for Broadcasting and Commercial Music, $11.0 million or 33.7% of revenues for Radio, and $(2.0) million for Corporate;
• Net income decreased to $5.8 million, or $0.08 per share, in the second quarter of 2025 from $9.4 million, or $0.14 per share, in the second quarter of 2024;
• Adjusted Net income⁽¹⁾ improved to $16.7 million, or $0.24 per share, in the second quarter of 2025 from $14.6 million, or $0.21 per share, in the same period of 2024;
• Cash flow from operating activities totaled $19.2 million, or $0.28 per share, in the second quarter of 2025 compared to $19.1 million, or $0.28 per share, in the second quarter of 2024;
• Adjusted free cash flow⁽¹⁾ reached $21.1 million, or $0.31 per share, in the second quarter of 2025 compared to $14.6 million, or $0.21 per share, in the same period of 2024;
• Net debt to Pro Forma Adjusted EBITDA⁽¹⁾ ratio attained 2.72x in the second quarter of 2025 compared to 3.19x in the second quarter of 2024; and
• Repurchased and cancelled 333,400 shares for a total of $2.5 million in the second quarter of 2025 compared to 119,800 shares for a total of $0.6 million in the second quarter of 2024.

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MONTREAL, Nov. 05, 2024 (GLOBE NEWSWIRE) — Stingray Group Inc. (TSX: RAY.A; RAY.B) (the “Corporation”; “Stingray”), an industry leader in music and video content distribution, business services, and advertising solutions, announced today its financial results for the second quarter of fiscal 2025 ended September 30, 2024.

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Reporting on second quarter results for fiscal 2025, Stingray’s President, co-founder and CEO Eric Boyko stated:

“Stingray’s FAST channel and retail media segments continued to drive growth in the second quarter of fiscal 2025, raising advertising revenues by 66% year-over-year. A pilot project with Vizio on the FAST channel side, combined with increased penetration with other TV manufacturers, largely contributed to the significant revenue growth. We also benefited from digital equipment installations at new accounts across our North American advertising platform to bolster revenues. On the retail media front, key customer wins at Sobeys, Shoppers Drug Mart and Mondou within our Canadian network should deliver meaningful revenue contributions in the second half of the fiscal year and beyond.”

“Moving on to our in-car entertainment business, we recently launched Stingray Karaoke in Ford Motor Company vehicles, beginning with the all-electric F-150 Lightning and Mustang Mach-E, while further deployments are expected across the Ford and Lincoln fleet. We also secured a similar agreement with NIO for its smart electric vehicles across European countries and expanded our footprint at BYD with an updated version of our Karaoke app. In addition, we created a whole new revenue stream within the in-car entertainment space through a partnership with Xperi/TiVo by introducing eight new channels on video screens for backseat passengers of BMW Group vehicles. This premium video offering will be extended to other luxury car manufacturers in upcoming quarters as we position Stingray as a supplier of choice in this market.”

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“Altogether, revenues for our Broadcasting and Commercial Music business increased 22.2% to $60.9 million in the second quarter of 2025, while Radio revenues remained stable year-over-year at $32.7 million as we kept outpacing industry peers.”

“Notwithstanding these positive data points, we achieved organic growth (excluding Radio) of 15.6% in the second quarter, marking four consecutive reporting periods in which Stingray has generated robust revenue increases year-over-year. This string of strong organic results, in turn, has provided an enhanced degree of predictability to our profitability, including maintaining a consolidated Adjusted EBITDA margin of approximately 35%.” Mr. Boyko concluded.

Second Quarter Results
Revenues increased $11.1 million, or 13.4%, to $93.6 million in Q2 2025 from $82.5 million in Q2 2024. The year-over-year growth was mainly due to an increase in FAST channel sales as well as higher equipment and installation sales related to digital signage.

For the quarter, revenues in Canada rose $0.5 million, or 1.1%, to $48.9 million from $48.4 million in Q2 2024. The growth reflects enhanced equipment and installation sales related to digital signage, partially offset by a decrease in audio channel revenues.

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Revenues in the United States grew $11.3 million, or 52.5%, to $32.9 million in Q2 2025 from $21.6 million in Q2 2024. The increase can largely be attributed to higher FAST channel revenues, along with enhanced equipment and installation sales related to digital signage.

Revenues in Other countries decreased $0.7 million, or 5.9%, to $11.8 million in Q2 2025 from $12.5 million in Q2 2024. The decline was mainly due to reduced business-to-consumer (B2C) subscriptions and less audio channel revenues.  

Broadcasting and Commercial Music revenues increased $11.1 million, or 22.2%, to $60.9 million in Q2 2025 from $49.8 million in Q2 2024. The growth was primarily driven by higher FAST channel revenues and greater equipment and installation sales related to digital signage. Radio revenues remained stable year-over-year at $32.7 million in Q2 2025 as higher digital advertising sales were offset by slightly lower national airtime revenues.

Consolidated Adjusted EBITDA⁽¹⁾ improved $4.5 million, or 15.2%, to $34.0 million in Q2 2025 from $29.5 million in Q2 2024. Adjusted EBITDA margin⁽¹⁾ reached 36.3% in Q2 2025 compared to 35.8% in the same period in 2024. The growth in Adjusted EBITDA⁽¹⁾ and Adjusted EBITDA margin⁽¹⁾   was mainly due to higher revenues.

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Net income totaled $5.8 million, or $0.08 per share, in Q2 2025 compared to $9.4 million, or $0.14 per share, in Q2 2024. The decrease was mainly caused by a loss in the fair value of derivative financial instruments and to a negative foreign exchange impact, partially offset by higher operating results.

Adjusted net income⁽¹⁾ reached $16.7 million, or $0.24 per share, in Q2 2025 compared to $14.6 million, or $0.21 per share, in the same period of 2024. The increase can primarily be attributed to better operating results, partially offset by a foreign exchange loss.

Cash flow generated from operating activities totaled $19.2 million in Q2 2025 compared to $19.1 million in Q2 2024. The year-over-year improvement was mainly due to better operating results, largely offset by a foreign exchange loss and a higher negative change in non-cash operating items. Adjusted free cash flow^(1),(2) amounted to $21.1 million in Q2 2025 compared to $14.6 million in the same period of 2024. The increase was mainly due to higher operating results.

As at September 30, 2024, the Corporation had cash and cash equivalents of $8.6 million, subordinated debt of $25.6 million and credit facilities of $350.5 million, of which approximately $68.0 million was available. The Net Debt to Pro Forma Adjusted EBITDA ratio⁽¹⁾ stood at 2.72x as at September 30, 2024 compared to 3.19x as at September 30, 2023.

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Declaration of Dividend
On November 5, 2024, the Corporation declared a dividend of $0.075 per subordinate voting share, variable subordinate voting share and multiple voting share. The dividend will be payable on or around December 13, 2024 to shareholders on record as of November 29, 2024.

The Corporation’s dividend policy is at the discretion of the Board of Directors and may vary depending upon, among other things, our available cash flow, results of operations, financial condition, business growth opportunities and other factors that the Board of Directors may deem relevant.

The dividends paid are designated as “eligible” dividends for the purposes of the Income Tax Act (Canada) and any corresponding provisions of provincial and territorial tax legislation.

Business Highlights and Subsequent Events

• On October 21, 2024, the Corporation announced the launch of eight new video channels — Stingray Naturescape, Stingray Holidayscapes, ZenLIFE by Stingray, Qello Concerts by Stingray, Stingray Classica, Stingray CMusic, Stingray DJAZZ, and Ultimate Trivia by Stingray — on the DTS AutoStage Video Service Powered by TiVo. This strategic expansion is set to transform in-car entertainment by offering a diverse array of premium content to a wide range of vehicles in the current product portfolio of the BMW Group, providing a cohesive and comprehensive solution that caters to the evolving needs of modern car owners, drivers, and passengers.
• On October 1, 2024, the Corporation announced the launch of the Stingray Karaoke app on VIZIO. Starting today, karaoke fans can access an extensive library of over 100,000 licensed songs directly through the Stingray Karaoke app available on millions of VIZIO Smart TVs.
• On September 25, 2024, the Corporation announced that the Toronto Stock Exchange (“TSX”) has approved the renewal of its normal course issuer bid (“NCIB”), authorizing Stingray to repurchase up to an aggregate 3,542,716 subordinate voting shares and variable subordinate voting shares (collectively, “Subordinate Shares”), representing approximately 10% of the “public float” (as defined in the TSX Company Manual) of Subordinate Shares as at September 13, 2024.
• On September 19, 2024, the Corporation announced the launch of two new free ad-supported TV channels, Stingray Naturescape and ZenLIFE, on Amazon Fire TV Channels. These channels are designed to bring tranquility and wellness into the homes of viewers worldwide, with additional videos also available on ad-supported video on demand (AVOD) on the platform.
• On September 17, 2024, the Corporation announced the launch of Stingray Karaoke in Ford Motor Company’s vehicles. Starting with the all-electric F-150® Lightning® and Mustang Mach-E and coming soon to vehicles with the Ford and Lincoln Digital Experience. This will be the first time karaoke is available for Ford owners to use and enjoy inside the vehicle while parked and on the go.
• On September 16, 2024, the Corporation announced the launch of Stingray Karaoke in NIO’s smart electric vehicles across European territories. This exciting new feature will be available in all NIO cars sold in Europe over the next two years, with each vehicle enjoying three years of complimentary karaoke service.
• On July 17, 2024, the Corporation announced the launch of two free ad-supported TV channels, Qello Concerts by Stingray and ZenLIFE by Stingray, on Amazon Freevee.
• On July 9, 2024, the Corporation announced the acquisition of The Coda Collection, a premier music-focused streaming platform. This strategic move solidifies Stingray’s position as the leading provider of concert streaming on the world’s most popular platforms.

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Conference Call
The Corporation will hold a conference call tomorrow, November 6, 2024, at 10:00 AM (ET), to review its financial results. Interested parties can join the call by dialing 289-514-5100 (Toronto) or 1-800-717-1738 (toll free). A rebroadcast of the conference call will be available until midnight, December 6, 2024, by dialing 289-819-1325 or 1-888-660-6264 and entering passcode 77780.

About Stingray
Stingray (TSX: RAY.A; RAY.B), a global music, media, and technology company, is an industry leader in TV broadcasting, streaming, radio, business services, and advertising. Stingray provides an array of global music, digital, and advertising services to enterprise brands worldwide, including audio and video channels, over 100 radio stations, subscription video-on-demand content, FAST channels, karaoke products and music apps, and in-car and on-board infotainment content. Stingray Business, a division of Stingray, provides commercial solutions in music, in-store advertising solutions, digital signage, and AI-driven consumer insights and feedback. Stingray Advertising is North America’s largest retail audio advertising network, delivering digital audio messaging to more than 30,000 major retail locations. Stingray has close to 1,000 employees worldwide and reaches 540 million consumers in 160 countries. For more information, visit www.stingray.com

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Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian securities law. Such forward-looking information includes, but is not limited to, information with respect to Stingray’s goals, beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, and “continue”, or the negative of these terms and similar terminology, including references to assumptions. Please note, however, that not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Stingray’s control. These risks and uncertainties could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in Stingray’s Annual Information Form for the year ended March 31, 2024, which is available on SEDAR at www.sedar.com. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that Stingray anticipates will be realized or, even if substantially realized, that they will have the expected consequences or effects on Stingray’s business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and Stingray does not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.

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Non-IFRS Measures
The Corporation believes that Adjusted EBITDA and Adjusted EBITDA margin are important measures when analyzing its operating profitability without being influenced by financing decisions, non-cash items and income taxes strategies. Comparison with peers is also easier as companies rarely have the same capital and financing structure. The Corporation believes that Adjusted Net income and Adjusted Net income per share are important measures as it shows stable results from its operation which allows users of the financial statements to better assess the trend in the profitability of the business. The Corporation believes that Adjusted free cash flow and Adjusted free cash flow per share are important measures when assessing the amount of cash generated after accounting for capital expenditures and non-core charges. It demonstrates cash available to make business acquisitions, pay dividend and reduce debt. The Corporation believes that Net debt and Net debt to Pro Forma Adjusted EBITDA are important to analyse the company’s debt repayment capacity on an annualized basis, taking into consideration the annualized adjusted EBITDA of acquisitions made during the last twelve months.

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Each of these non-IFRS financial measures is not an earnings or cash flow measure recognized by International Financial Reporting Standards (IFRS) and does not have a standardized meaning prescribed by IFRS. This method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, our definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers.
Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of our performance or to cash flows from operating activities as measures of liquidity and cash flows.

Reconciliation of Net income to Adjusted EBITDA, Adjusted Net income, LTM Adjusted EBITDA and Pro Forma Adjusted EBITDA

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Reconciliation of Cash Flow from Operating Activities to Adjusted Free Cash Flow

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Calculation of Net Debt and Net Debt to Pro Forma Adjusted EBITDA Ratio

Note to readers: Consolidated financial statements and Management’s Discussion & Analysis of Operating Results and Financial Position are available on the Corporation’s website at www.corporate.stingray.com and on SEDAR at www.sedar.com.

Contact Information
Mathieu Péloquin
Senior Vice-President, Marketing and Communications
Stingray
(514) 664-1244, ext. 2362
mpeloquin@stingray.com

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Not for distribution to United States news wire services or for dissemination in the United States

TORONTO, Nov. 05, 2024 (GLOBE NEWSWIRE) — Doré Copper Mining Corp. (“Doré Copper”) (TSXV: DCMC; OTCQB: DRCMF; FRA: DCM) is pleased to announce, further to its news release dated October 15, 2024, an update on the definitive arrangement agreement (the “Agreement”) with Cygnus Metals Limited (ASX: CY5) (“Cygnus”) pursuant to which Cygnus has agreed to acquire 100% of the issued and outstanding common shares of Doré Copper (the “Doré Copper
Shares”) by way of a court approved plan of arrangement under the Canada Business Corporation Act (the “Transaction”).

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A key obligation in the Agreement has been met with Cygnus having successfully raised a minimum of A$5.0 million as part of a first tranche (see ASX Announcement dated October 17, 2024).

Cygnus Metals Limited (ASX:CY5) announced that it has received commitments from institutional and sophisticated investors to raise A$11.0 million (before costs) through the issue of 152,777,778 fully paid ordinary shares in the Company at an issue price of A$0.072 per Share (“Placement”). The Placement was extremely well supported and oversubscribed.

Agreement with Epstein Research

Doré Copper has entered into a paid advertisement services agreement with Peter Epstein (“Epstein Research”) on October 22, 2024 to increase investor engagement and create more awareness for the company. Epstein Research’s engagement is for an initial term of six (6) months and is subject to renewal or cancellation in accordance with its terms. Epstein Research operates from New York, New York, and provides promotional services, including social media and online advertising of Doré Copper posted on Epstein Research homepage, CEO.ca, Substack, and Linked-In; monthly written articles on Doré Copper and/or company interviews written exclusively by Peter Epstein; and frequent online commentary on Doré Copper on websites including CEO.ca, Stockhouse, TalkMarkets, Linked-In, and Twitter/X.

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Doré Copper has agreed to pay Epstein Research US$2,000 per month for these services. There are no common shares or options to be received as compensation in the service agreement. In addition, Epstein Research is an unrelated and unaffiliated entity in respect of the Corporation and, at the time of the agreement, Mr. Epstein owns securities of the Corporation.

About Doré Copper Mining Corp.

Doré Copper Mining Corp. aims to be the next copper producer in Québec with an initial production target of +50 million pounds of copper equivalent annually by implementing a hub-and-spoke operation model with multiple high-grade copper-gold assets feeding its centralized Copper Rand mill¹. Doré Copper has delivered its PEA in May 2022 and is proceeding with a feasibility study. Doré Copper has consolidated a large land package in the prolific Lac Doré/Chibougamau and Joe Mann mining camps that has historically produced 1.6 billion pounds of copper and 4.4 million ounces of gold.² The land package includes 13 former producing mines, deposits and resource target areas within a 60-kilometer radius of Doré Copper’s Copper Rand Mill.

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About Cygnus Metals

Cygnus Metals Limited (ASX: CY5) is an emerging exploration company focused on advancing the Pontax Lithium Project (earning up to 70%), the Auclair Lithium Project and the Sakami Lithium Project in the world class James Bay lithium district in Québec, Canada. In addition, Cygnus has REE and base metal projects at Bencubbin and Snake Rock in Western Australia. The Cygnus Board of Directors and Technical Management team have a proven track record of substantial exploration success and creating wealth for shareholders and all stakeholders in recent years. Cygnus’ tenements range from early-stage exploration areas through to advanced drill-ready targets.

For further information about Doré Copper, please contact:

Visit: www.dorecopper.com

Facebook: Doré Copper Mining
LinkedIn: Doré Copper Mining Corp.
Twitter: @DoreCopper
Instagram: @DoreCopperMining

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Cautionary Note Regarding Forward-Looking Statements
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “forecast”, “expect”, “potential”, “project”, “target”, “schedule”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this news release, including, without limitation, statements with respect to the proposed Transaction and the terms thereof, the completion of the Transaction, including receipt of all necessary court, shareholder and regulatory approvals and timing thereof, any listing of the Cygnus Shares on the TSX-V or on another recognized North American stock exchange and the intent of the parties to pursue any such listing, the Cygnus equity raise and the terms thereof, and the plans, operations and prospects of Doré Copper and its properties are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the ability to obtain approvals in respect of the Transaction and to consummate the Transaction, the ability to obtain approvals for the listing of the Cygnus Shares on the TSXV or on another recognized North American stock exchange, integration risks, actual results of current and future exploration activities, benefit of certain technology usage, the ability of prior successes and track record to determine future results, changes in project parameters and/or economic assessments, availability of capital and financing on acceptable terms, general economic, market or business conditions, future prices of metals, uninsured risks, risks relating to estimated costs, regulatory changes, delays or inability to receive required regulatory approvals, health emergencies, pandemics and other exploration or other risks detailed herein and from time to time in the filings made by Doré Copper with securities regulators. Although Doré Copper has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Doré Copper disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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Neither 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.

^{______________________
1} Technical report titled “Preliminary Economic Assessment for the Chibougamau Hub-and-Spoke Complex, Québec, Canada” dated June 15, 2022, in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The Technical Report was prepared by BBA Inc. with several consulting firms contributing to sections of the study, including SLR Consulting (Canada) Ltd., SRK Consulting (Canada) Inc. and WSP Inc.
² Sources for historic production figures: Economic Geology, v. 107, pp. 963–989 – Structural and Stratigraphic Controls on Magmatic, Volcanogenic, and Shear Zone-Hosted Mineralization in the Chapais-Chibougamau Mining Camp, Northeastern Abitibi, Canada by François Leclerc et al. (Lac Dore/Chibougamau mining camp) and NI 43-101 Technical Report on the Joe Mann Property dated January 11, 2016 by Geologica Groupe-Conseil Inc. for Jessie Ressources Inc. (Joe Mann mine).

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