EQS-Adhoc: Deutsche Rohstoff AG: Increased guidance for 2023 and 2024

EQS-Ad-hoc: Deutsche Rohstoff AG / Key word(s): Forecast
Deutsche Rohstoff AG: Increased guidance for 2023 and 2024

27-Sep-2023 / 16:57 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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End of Inside Information

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Information and Explanation of the Issuer to this announcement:

Notes:
 

• Successful placement of EUR 100 million bond provides high level of planning certainty
• Strong rise in WTI oil price from USD 70 to USD 90 since July
• Strong Dollar: 1.06 EUR/USD compared to guidance of 1.12 EUR/USD
• Acceleration of completion of four wells in the Powder River Basin with significantly higher working interest then originally scheduled at 1876 Resources, leading to increased capex guidance 2023 & 2024 of EUR 230 million instead of EUR 200 million
• New wells in Wyoming with very strong production
• Record hedge book: expansion by 300,000 barrels to 1.6 million barrels of oil
• Total 2023 and 2024 production expected higher due to accelerated completion and strong performance of Wyoming wells

Jan-Philipp Weitz, CEO, commented: “With the completion of the successful bond placement, we have been able to achieve even higher planning certainty and a solid financial base. On this basis, we intend to actively exploit the currently very attractive price environment and bring the ongoing drilling projects into production even faster. At the same time, we are taking the opportunity to develop new wells at rates higher than planned. Our ability to react quickly to changing oil prices and the short investment cycles help us optimize our operational and financial performance.”

Oil prices recently rose significantly to USD 90, providing for increased revenues in September and Q4. The company now expects oil prices of USD 85/BBL WTI in Q4. The stronger US Dollar compared to the guidance of 1.12 EUR/USD also has a positive impact on revenues and earnings.

The high prices of recent weeks were also used to further expand hedging. The hedge book has thus reached by far the highest volume ever hedged by Deutsche Rohstoff. For the fourth quarter, around 330,000 BO have been hedged at USD 77. For 2024, around 1 million BO at USD 76 and for 2025 already 300,000 BO at USD 70. The company has thus hedged a total of 1.6 million BO. New and existing production is hedged at approximately 50% on an ongoing basis and the hedge is being rolled steadily further into the future.

Results from recent wells in Wyoming have been consistently very encouraging. In particular, the recent wells in the joint venture in Wyoming were well above original expectations in the first months of production.

Based on the high oil prices and the financing security provided by the placement of the 2023/2028 corporate bond, the Company has decided to bring the four wells drilled in July and August by 1876 Resources in Wyoming into production as early as November. This means that the investments will be accelerated into the current year.

In addition, the wells are now executed with a significantly higher working interest then originally budgeted. This is also the case for the other four wells planned by 1876. In total, this will increase capital expenditure by around EUR 30 million or to around EUR 230 million (previously around EUR 200 million) in 2023 and 2024. The increase in capex is exclusively due to accelerated commissioning of wells and higher working interest.

For the definition of EBITDA, please refer to the website of Deutsche Rohstoff AG at https://rohstoff.de/en/apm/.


Mannheim, 27 September 2023


Contact
Deutsche Rohstoff AG
Phone +49 621 490 817 0
info@rohstoff.de


 

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27-Sep-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

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Language:	English
Company:	Deutsche Rohstoff AG
	Q7, 24
	68161 Mannheim
	Germany
Phone:	0621 490 817 0
E-mail:	info@rohstoff.de
Internet:	www.rohstoff.de
ISIN:	DE000A0XYG76
WKN:	A0XYG7
Indices:	Scale
Listed:	Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	1736045

End of Announcement	EQS News Service

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