/NOT FOR DISSEMINATION IN THE U.S. OR THROUGH U.S. NEWSWIRES/ CALGARY, AB, Aug. 14, 2024 /CNW/ - Highwood Asset Management Ltd. ("Highwood" or the "Company") (TSXV:HAM) is pleased to announce financial and operating results for the three and six months ended June 30, 2024. The Company also announces that its unaudited financial statements and associated Management's Discussion and Analysis ("MD&A") for the period ended June 30, 2024, are available on Highwood's website at www.highwoodmgmt.com and on SEDAR+ at www.sedarplus.ca. Highlights Achieved record corporate production of 6,459 boe/d in Q2 2024, representing an increase of approximately 29% from Q1 2024 as a result of a successful first quarter drilling program with wells that were brought late in the first quarter. Highwood delivered record Adjusted EBITDA of $22.5 million ($1.51 per basic share) and funds flow from operations of $19.8 million ($1.33 per basic share) in Q2 2024 representing increases of $5.1 million (29%) and $5.1 million (35%) respectively over Q1 2024. Furthermore, Highwood achieved Adjusted EBITDA and funds flow from operations increases of $12.2 million (119%) and $10.9 million (123%) respectively compared to Q4 2024, while holding net debt relatively flat. Highwood is pleased to have current Run Rate Net Debt / annualized Adjusted EBITDA of approximately 1.0x. As a result, Highwood reduced Net Debt in the second quarter by approximately $10.1 million, a decrease of approximately 9%. (1) As a result of a successful drilling program that delivered significant PDP reserves growth, the Company's borrowing base has been increased from $100 million to $110 million. Furthermore, Highwood was pleased to add Canadian Imperial Bank of Commerce and Macquarie Bank Limited as new lenders, joining Royal Bank of Canada and ATB Financial. The Company incurred expenditures of approximately $5.8 million in the Q2 2024 on undeveloped lands, primarily though Crown land sales. The majority of lands acquired were situated within the Company's Wilson Creek core area and in close proximity to recent drilling successes. In addition, Highwood also purchased approximately 15 net Crown sections of land in a new area with multi-lateral open hole ("MLOH") drilling potential. Highwood is excited with the prospect of these additional lands and believes it could represent a new core area for future development. On June 26, Highwood commenced its 2H 2024 drilling program, spudding the 100/03-11-048-14W5 well (the "3-11 Well"). The 3-11 well has the potential to add significant drilling inventory to the Brazeau asset and is expected to come online in late August. Since June 30th, the Company has spud 3 additional wells, two fracture stimulated wells in Wilson Creek and one MLOH in Brazeau. The MLOH well in Brazeau, located at 100/02-33-047-14W5 is a direct offset to the successful 02/08-33-047-14W5 (the "8-33 Well"). The 8-33 well was drilled late in the first quarter, reached payout in less than four months and continues to produce greater than 400bbls/d of oil after approximately five months of production in which it has cumulatively produced approximately 65,000 bbl of oil. As a result of operational outperformance from the most recently completed drilling campaign and supported by higher oil pricing, Highwood increased its 2024 capital plan to $60–65 million (from $40–45 million). As a result, Highwood also increased its 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 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 June 30, Six Months Ended June 30, 2024 2023 % 2024 2023 %  Financial (expressed in thousands)  Petroleum and natural gas sales $      38,729 $       728 5,220 $     67,818 $       1,686 3,922  Transportation pipeline revenues 698 681 2 1,387 1,429 (3)  Total revenues, net of royalties (1) 34,308 1,460 2,250 50,277 3,251 1,447  Income (loss) 10,475 (600) (1,846) 9,931 (627) 1,684  Funds flow from operating activities (5) 19,821 (128) (15,585) 34,548 144 23,892  Adjusted EBITDA (5) 22,462 (115) (19,632) 39,897 169 23,508  Capital expenditures 9,047 428 2,014 34,704 1,113 3,018  Net debt (2) 98,438 (1,653) -  Shareholder's equity (end of period) 114,004 10,190 1,019  Shares outstanding (end of period) (6) 14,838 6,037 146  Weighted-average basic shares outstanding 14,907 6,037 147  Operations (3)  Production    Crude oil (bbls/d)