CALGARY, AB, Aug. 8, 2024 /CNW/ - Tenaz Energy Corp. ("Tenaz", "We", "Our", "Us" or the "Company") (TSX:TNZ) is pleased to announce financial and operating results for the three and six  months ended June 30, 2024. The unaudited interim consolidated financial statements and related management's discussion and analysis ("MD&A") are available on SEDAR+ at www.sedarplus.ca and on Tenaz's website at www.tenazenergy.com. Select financial and operating information for the three and six  months ended June 30, 2024  appear below and should be read in conjunction with the related financial statements and MD&A. HIGHLIGHTS Operating and Financial Results Production volumes averaged 2,517 boe/d(1) in Q2 2024, down 13% from Q1 2024, due to natural decline in Leduc-Woodbend ("LWB") wells drilled in 2023 and annual maintenance in Netherlands. Production increased 32% over Q2 2023 due to LWB drilling and the acquisition of additional interest in the Netherlands assets in Q3 2023.  Funds flow from operations ("FFO")(2) for the second quarter was $5.8 million, down 21% from Q1 2024 and up 73% from Q2 2023. Lower FFO versus Q1 2024 resulted primarily from lower natural gas prices and production. In the year-over-year comparison, FFO increased due to impacts of both Canadian drilling and the Netherlands acquisition in Q3 2023. Net income for Q2 2024 was $1.3 million, as compared to net losses of $0.6 million in Q1 2024 and $0.8 million in Q4 2023. Higher income compared to Q1 2024 resulted primarily from income tax recoveries, partially offset by lower natural gas prices and the impacts of annual shutdown activities in our non-operated Netherlands assets.   Q2 2024 capital expenditures ("CAPEX") were $2.5 million, mostly for Netherlands facilities work.   During Q2, we closed our previously announced acquisition of a gas plant and leasehold assets in Alberta from a private company. Cash consideration was $2.8 million.  Subsequent to the end of Q2, we announced the signing of a definitive agreement to purchase NAM Offshore B.V. ("NOBV"). The acquisition, which is targeted to close in mid-2025, includes low base-decline production of nearly 11,000 boe/d (99% TTF natural gas) with numerous reinvestment opportunities to improve production over the medium-to-long term. On August 5, the Netherlands Authority for Consumers and Markets ("ACM") completed its review of the transaction and cleared it to proceed as planned. We entered into a new lending relationship with National Bank of Canada ("NBC") to replace and upsize our existing revolving credit facility. The new credit facility includes a $20 million revolving facility and an additional $90 million of debt capacity under a delayed draw term loan, which can be drawn to fund closing of the acquisition of NOBV. We ended Q2 2024 with positive adjusted working capital (2) of $44.3 million, down from $48.7 million at Q1 2024 and $49.4 million at Q4 2024, primarily due to closing of the acquisition of a gas plant and leasehold assets in Canada. Subsequent to the quarter, Tenaz paid a €22.8 million ($34.0 million) deposit to the Seller for the acquisition of NOBV.  Our Normal Course Issuer Bid ("NCIB") program has retired 0.3 million common shares at an average cost of $3.73 per share during the first half of 2024. As of the end of July 2024, we have retired 2.1 million shares at an average cost of $2.81 per share (7.3% of basic common shares) through the NCIB.   As of August 8, 2024, Tenaz shares have recorded a price increase of 79% during 2024, placing Tenaz with the highest total shareholder return of 57 TSX-listed oil and gas companies of all sizes. (1)    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 "Barrels of Oil Equivalent" section included in the "Advisories" section of this press release. (2)    This is a non-GAAP and other financial measure. Refer to "Non-GAAP and Other Financial Measures" included in the "Advisories" section of this press release. Budget and Outlook Annual guidance for capital expenditures remains unchanged at $26 to $28 million, with Canadian drilling activity slated for the end of Q3 2024. Annual production guidance of 2,700 to 2,900 boe/d remains unchanged. FINANCIAL AND OPERATIONAL SUMMARY Three months ended Six months ended Jun 30 Mar 31 Jun 30 Jun 30 Jun 30 ($000 CAD, except per share and per boe amounts) 2024 2024 2023 2024 2023 FINANCIAL Petroleum and natural gas sales 14,007 17,886 10,614 31,893 28,540 Cash flow (used in) from operating activities (11,920) 6,218 957 (5,702) 6,074 Funds flow from operations(1) 5,822 7,043 3,361 12,865 10,635 Per share – basic(1) 0.22 0.26 0.12 0.48 0.38 Per share – diluted(1) 0.19 0.24 0.12 0.43 0.37 Net income (loss) 1,335 (557) (757) 778 2,125 Per share – basic 0.05 (0.02) (0.03) 0.03 0.08 Per share – diluted 0.04 (0.02) (0.03) 0.03 0.07 Capital expenditures(1) 2,501 3,816 5,967 6,317 6,650 Adjusted working capital (net debt)(1) 44,343 48,740 17,094 44,343 17,094 Common shares outstanding (000) End of period – basic 27,345 26,703 27,378 27,345 27,378 Weighted average for the period – basic 26,734 26,779 27,555 26,756 27,735 Weighted average for the period – diluted 29,992 29,494 28,308 29,733 28,427 OPERATING Average daily production Heavy crude oil (bbls/d) 911