Mr. James Evaskevich reports

YANGARRA ANNOUNCES 2022 YEAR END FINANCIAL AND OPERATING RESULTS

Yangarra Resources Ltd. has released its financial and operating results for the year ended Dec. 31, 2022.

2022 highlights:

• Average production of 11,022 boe/d (barrels of oil equivalent per day) (45 per cent liquids), an increase of 23 per cent from 2021;
• Oil and gas sales of $243-million, an increase of 73 per cent from 2021;
• Funds flow from operations of $177-million ($1.92 per share -- fully diluted), an increase of 95 per cent from 2021;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $187-million ($2.03 per share -- fully diluted);
• Net income of $106-million ($1.16 per share -- fully diluted), resulting in an income margin of 44 per cent;
• Return on capital employed of 20.4 per cent;
• Operating costs of $7.29/boe (including $1.21/boe of transportation costs);
• Operating netback of $47.64/boe;
• Operating margin of 79 per cent and funds flow from operations margin of 73 per cent;
• General and administrative costs of $1.01/boe;
• Royalties at 8 per cent of oil and gas revenue;
• Capital expenditures of $109-million for 32 wells versus a budget of $110-million for 30 wells;
• Adjusted net debt of $134-million, a decrease of $62.4-million from 2021;
• Retained earnings of $265-million;
• Decommissioning liabilities of $14-million (discounted);
  • Less than $1-million is required to abandon all non-producing wells;
  • Expenditures on abandonments and reclamations of $300,000 for calendar 2022.

Fourth quarter highlights:

• Funds flow from operations of $42-million (45 cents per share -- fully diluted), an increase of 29 per cent from the same period in 2021;
• $13-million of adjusted net debt repayments;
• Oil and gas sales of $60-million, an increase of 27 per cent from the same period in 2021;
• Adjusted EBITDA of $45-million (48 cents per share -- fully diluted), an increase of 28 per cent from the same period in 2021;
• Net income of $25-million (27 cents per share -- fully diluted), an increase of 28 per cent from the same period in 2021;
• Average production of 11,712 boe/d (45 per cent liquids), a 16-per-cent increase from the same period in 2021;
• Operating costs of $7.99/boe (including $1.22/boe of transportation costs);
• Operating netback of $42.84/boe;
• Operating margin of 77 per cent and funds flow from operations margin of 69 per cent;
• G&A costs of $1.21/boe;
• Royalties at 9 per cent of oil and gas revenue;
• All-in cash costs of $17.19/boe;
• Capital expenditures of $28-million;
• Adjusted net debt to fourth quarter annualized funds flow from operations of 0.80:1.

Annual general meeting of shareholders

The company's annual general meeting of shareholders is scheduled for 10 a.m. on Thursday, April 27, 2023, in the Tillyard Management Conference Centre, main floor, 715 5th Ave. SW, Calgary, Alta.

Year-end disclosure

The company's Dec. 31, 2022, audited consolidated financial statements, management's discussion and analysis, and annual information form have been filed on SEDAR and are available on the company's website.

We seek Safe Harbor.