NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES CALGARY, AB, May 16, 2024 /CNW/ - Highwood Asset Management Ltd. ("Highwood" or the "Company") (TSXV:HAM) is pleased to announce financial and operating results for the three months ended March 31, 2024. The Company also announces that its unaudited financial statements and associated Management's Discussion and Analysis ("MD&A") for the period ended March 31, 2024, are available on Highwood's website at www.highwoodmgmt.com and on SEDAR+ at www.sedarplus.ca. Highlights Achieved record corporate production of 5,023 boe/d in the first quarter of 2024 an increase of approximately 25% from the fourth quarter of 2023. As a result of an effective capital program executed in the first quarter of 2024, expected average production in May is 6,000 boe/d representing a 50% increase in production from Q4 2023 production.(1) Highwood delivered record Adjusted EBITDA of $17.4 million ($1.15 per basic share) and funds flow from operations of $14.7 million ($0.98 per basic share) in Q1 2024 representing increases of 70% and 88% respectively over Q4 2023. Highwood is pleased to have current Run Rate Net Debt / annualized Adjusted EBITDA of under 1.0x.(1) During the first quarter of 2024, the Company executed a successful development capital program of approximately $24 million, which included five additional wells, all of which were brought onstream in the first quarter. In aggregate, the five wells drilled in the first quarter of 2024 have performed over 25% above type curve expectations and are expected to pay out in less than ten months. Highwood's confidence in its inventory continues to increase with now greater than 100 locations that are projected to generate a before tax IRR in excess of 100% and payout within 12 months at US$75/bbl oil prices. Of the over 100 locations, 60 are booked in the Company's independent reserve report as 1P reserves to underpin a 1P before tax NPV10 NAV of $21.07/share fully diluted. (1)(2) As previously stated in the May 7, 2024 press release, as a result of operational outperformance from the most recently completed drilling campaign, and while supported by a now higher oil price strip, Highwood increased its 2024 capital plan to $60–65 million (from $40–45 million) resulting in upwardly revised forecasted 2024 average & exit production guidance of 5,500–5,700 boe/d (+8% increase at midpoint) and 6,400–6,500 boe/d (+19% increase at midpoint), respectively, while continuing to maintain the same target 2024 Net Debt / 2024 Exit EBITDA ratio of approximately 0.8x. Over the 12-month period ended December 2024, Highwood expects to grow production per share by over +50% (from prior forecasted +25%), while still reducing debt by approximately 25%.(1)(2) Notes to Highlights: (1)     See ‎"Caution Respecting Reserves Information"‎ and ‎‎"Non-GAAP and other Specified Financial Measures"‎. (2)     Based on Management's projections (not Independent Qualified Reserves Evaluators' forecasts) and applying the following pricing ‎assumptions: WTI: ‎‎US$75.00/bbl; ‎‎WCS Diff: ‎US$14.00/bbl; MSW Diff: ‎‎US$3.75/bbl; AECO: C$2.00/GJ; 0.73 CAD/USD‎. Management ‎projections are used in place of Independent Qualified Reserves Evaluators' ‎‎‎forecasts as Management believes it provides investors with valuable ‎‎information concerning the liquidity of the Company.‎ Summary of Financial & Operating Results Three Months Ended March 31, 2024 2023 %  Financial (in thousands)  Petroleum and natural gas sales $      29,089 $       958 2,936  Transportation pipeline revenues 689 748 (8)  Total revenues, net of royalties(1) 15,969 1,791 792  Loss (544) (27) 1,915  Funds flow from operations(5) 14,827 278 5,233  Adjusted EBITDA(5) 17,435 284 6,039  Capital expenditures 25,698 685 3,652  Net debt (2) 108,072 710 15,121  Shareholder's equity (end of period) 103,436 10,729 864  Shares outstanding (end of period)(6) 15,148 6,037 151  Weighted-average basic shares outstanding 14,937 6,037 147  Operations (3)  Production    Crude oil (bbls/d) 3,126 123 2,451    NGLs (boe/d) 586 - 100    Natural gas (mcf/d) 7,869 - 100  Total (boe/d) 5,023 123 4,000  Average realized prices (4)    Crude oil (Cdn$/bbl) 89,56 86.88 3    NGL (Cdn$/boe) 37.79 - 100    Natural gas (Cdn$/mcf)