AXP Energy's Strong Quarterly Performance Boosts Investor Confidence
AXP (AXP) Share Update July 2024 Tuesday 30th
AXP Energy Reports Significant Increase in Revenue and Production
AXP Energy Limited (ASX: AXP, OTC US: AUNXF) has reported a robust increase in revenue and oil production for the quarter ended 30 June 2024, driven by strategic operational improvements and asset divestments.
Instant Summary:
- Revenue from Colorado operations increased 73% to $207,604.
- Gross oil production in Colorado rose by 8% to 3,054 barrels.
- Successful installation of a gas-powered generator at Pathfinder Field.
- Customer receipts for the quarter were $225,484.
- Cash and cash equivalents at quarter end stood at $1,464,487.
Revenue and Production Growth
AXP Energy Limited reported a significant 73% increase in revenue from its Colorado operations, reaching $207,604 for the quarter ended 30 June 2024. This growth was driven by increased oil production, higher sales volumes, and better realized prices.
Gross oil production in Colorado also saw an 8% rise, totaling 3,054 barrels for the quarter. The installation of a gas-powered generator at the Pathfinder Field was a key factor in this increase, as it allowed the company to dispose of more gas from one oil well brought back on pump during the quarter.
Financial Overview
Customer receipts for the quarter were $225,484, compared to $464,299 in the previous quarter, which included contributions from assets that have since been sold. Cash and cash equivalents at the end of the quarter were $1,464,487, down slightly from $1,562,190 in the previous quarter.
AXP Energy also reported unsold oil inventory of 1,014 barrels at the end of the quarter, compared to 1,679 barrels in the previous quarter. Post quarter end, the company concluded a transaction with Mountain V Oil & Gas, Inc., allowing it to focus solely on developing its Colorado oil and gas leases.
Operational Highlights
The company's net oil sales volumes increased by 54%, and realized pricing saw a 19% rise quarter-on-quarter. The June quarter resulted in an operating cash outflow of $491,462, a significant improvement from the $1,595,830 outflow in the previous quarter.
Net cash inflow from investing activities was $214,939, driven by proceeds from the disposal of property, plant, and equipment, and receipt of bond refunds. These inflows were partially offset by ongoing legacy payment plan disbursements.
Future Plans
AXP Energy is actively seeking new avenues to monetize gas from the Pathfinder Field, which will further increase oil production and establish a natural gas liquids (NGL) revenue stream. The company plans to expand its power generation activities and increase the number of gas-fired generators on site.
Director Andrew Bald emphasized the company's focus on finding profitable sales channels for its gas, increasing oil production, and building a profitable NGL business. He noted that the installation of the first gas-fired generator marks a significant step towards establishing Pathfinder as a large, off-grid gas-fired power generation operator.
The increase in revenue and production is a positive indicator for AXP Energy's stock. The company's strategic focus on its Colorado assets and the successful installation of a gas-powered generator are likely to boost investor confidence. The reduction in operating cash outflows and the focus on monetizing gas from the Pathfinder Field could lead to further financial improvements.
Investor Reaction:
Analysts are likely to view AXP Energy's quarterly performance positively, given the significant increase in revenue and production. The company's strategic focus on its Colorado assets and efforts to monetize gas could be seen as strong growth drivers. However, the slight decrease in cash and cash equivalents may warrant close monitoring.
Conclusion:
Investors should keep an eye on AXP Energy's ongoing efforts to monetize gas from the Pathfinder Field and its plans to expand power generation activities. The company's strategic focus on its Colorado assets and the significant increase in revenue and production are promising indicators of future growth.