Canada's Touchstone Exploration swings to Q3 profit on higher commodity prices

Touchstone Exploration

Yesterday 07:12

Overview
Canada oil and gas producer's Q3 revenue rose 30% yr/yr on higher realized prices
Company posted net income after a loss in the same period last year
Net debt fell 17% from the prior quarter to $57.3 mln

Outlook
Touchstone remains focused on sustaining production and optimizing its cost structure

Result Drivers
HIGHER REALIZED PRICES - Co said a 49% increase in realized commodity price per boe drove revenue growth despite lower sales volumes
PRODUCTION DECLINE - Q3 production fell 13% yr/yr due to planned compressor maintenance, a well shut-in on the Central block, and lower crude oil volumes
LOWER COSTS - Lower general and administrative and income tax expenses contributed to higher funds flow from operations

Company press release: ID:nRSM0956Da

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Petroleum and Natural gas sales
 
$16.46 mln
 
Q3 Net Income
 
$80,000
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for Touchstone Exploration Inc is C$0.29, about 61.1% above its November 12 closing price of C$0.18

Reuters Recommended Reads
Nov 10 - Fake UK Touchstone Exploration bidder gets suspended sentence
Nov 12 - Canada's Headwater Q3 revenue rises 55% on record output
Nov 12 - Canadian natural gas producer Birchcliff posts Q3 net income

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)