Calgary, Alberta–(Newsfile Corp. – May 9, 2024) – Journey Energy Inc. (TSX: JOY) (OTCQX: JRNGF) (“Journey” or the “Company“) announces its financial results for the first quarter of 2024. The complete set of financial statements and management discussion and analysis for the periods ended March 31, 2024 and 2023 are posted on and on the Company’s website

Highlights for the first quarter and year to date are as follows:

  • Generated sales volumes of 11,906 boe/d in the first quarter (46% crude oil; 10% NGL’s; 44% natural gas).
  • Realized Adjusted Funds Flow of $17.7 million or $0.29 per basic share and $0.27 per diluted share.
  • Closed a $38 million convertible debenture financing on March 20, 2024. The proceeds of the financing were partially utilized to retire the remaining $11 million of vendor-take-back financing and to accelerate a $12.1 million payment to AIMCo. The remainder will be used to expand Journey’s 2024 capital program from $41 million to $51 million, as discussed in the March 28, 2024 press release. Guidance for 2024 remains unchanged since incremental volumes are phased in a way that will impact the exit rate but not annual averages.
  • Produced 6,968 megawatt hours of electricity at Journey’s power generation facility in Countess, Alberta at an average price of $117.69/MWH.
  • Continued with the construction of the Gilby power generation asset. The generators have been moved into the newly constructed building.
  • On May 7, 2024 Journey announced its participation in a 128 section Joint Venture land block with Spartan Delta Corp. to mutually pursue the development of the west shale basin Duvernay. The initial working interest within the block is 37.5% Journey and 62.5% Spartan Delta Corp. The partners currently control 94 sections within the block. Two wells are planned for later in 2024. Journey’s share of these expenditures will be funded through a combination of internally generated cash flows and proceeds from the recent closing of convertible debentures.
  Three months ended
March 31,
Financial ($000’s except per share amounts) 2024 2023 %
Production revenue 52,098 58,443 (11 )
Net income 3,248 6,440 (50 )
Per basic share 0.05 0.11 (55 )
Per diluted share 0.05 0.10 (50 )
Adjusted Funds Flow 17,720 17,959 (1 )
Per basic share 0.29 0.31 (6 )
Per diluted share 0.27 0.28 (4 )
Cash flow from operations 7,994 11,461 (30 )
Per basic share 0.13 0.20 (35 )
Per diluted share 0.12 0.18 (33 )
Net capital expenditures 14,287 6,818 110
Net Debt 60,131 71,071 (16 )
Share Capital (000’s)        
Basic, weighted average 61,350 58,153 5  
Diluted, weighted average 66,689 64,036 4
Basic, end of period 61,350 60,923 1
Fully diluted 68,378 67,863 1
Daily Sales Volumes        
Natural gas (Mcf/d)      
Conventional 27,281 30,608 (11 )
Coal bed methane 3,966 4,279 (7 )
Total natural gas volumes 31,277 34,887 (10 )
Crude oil (Bbl/d)      
Light/medium 3,227 3,564 (9 )
Heavy 2,258 2,175 4  
Total crude oil volumes 5,485 5,739 (4 )
Natural gas liquids (Bbl/d) 1,208 1,367 (12 )
Barrels of oil equivalent (boe/d) 11,906 12,920 (8 )
Average Realized Prices1        
Natural gas ($/mcf) 2.37 3.66 (42 )
Crude Oil ($/bbl) 80.53 79.16 2
Natural gas liquids ($/bbl) 46.83 49.32 (5 )
Barrels of oil equivalent ($/boe) 48.08 50.26 (4 )
Operating Netback ($/boe)        
Realized prices1 48.08 50.26 (4 )
Royalties (9.38 ) (10.38 ) (10 )
Operating expenses (18.50 ) (19.78 ) (6 )
Transportation expenses (0.99 ) (1.06 ) (7 )
Operating netback 19.21 19.04 1  



  1. Realized prices include physical hedging gains.


Journey began its 2023 exploration and development program late in 2023, starting with a drilling program in the Medicine Hat pool. This pool was a cornerstone of the assets acquired from Enerplus Corporation in 2022. Journey drilled 4.0 gross (2.9 net) wells in Medicine Hat in late 2023. These wells have markedly exceeded expectations with respect to both costs and results. Based upon these results Journey has completed a second 4.0 (2.9 net) well program in this pool during the first quarter of 2024. Well costs and geological indicators are similar to, or better than, the first program. All of these wells were on stream by mid-March. In the second half of 2024 Journey is planning to convert four existing water injectors to polymer injection. With over thirty future locations, along with future waterflood and polymer flood expansion potential, Journey expects this field to continue to provide increasing shareholder value for years to come.

In addition to the 2023 Medicine Hat drilling program, Journey also drilled 3.0 gross (3.0 net) wells in Matziwin in the fourth quarter. Similar to Medicine Hat, the total program costs were significantly below forecast. On November 7, 2023 Journey moved a drilling rig to the Cherhill field where the Company drilled 3.0 gross (2.7 net) wells. The Cherhill program was followed up with 2.0 gross (1.7 net) wells drilled in Poplar Creek.

The 2023/2024 drilling program was funded with the proceeds of a flow through share issuance completed in the spring of 2023. Journey has now completed the required expenditures under this program.

In the first quarter of 2024, Journey had sales volumes of 11,906 boe/d (56% oil and liquids). First quarter volumes were negatively impacted (approximately 250 boe/d) by extended cold weather in January. A portion of the proceeds of the Convertible Debenture financing in March are being devoted to increased capital spending for facilities, waterfloods and polymer floods to $9 million. This increase in spending includes facility debottlenecking in Cherhill; expanding the polymer flood in Medicine Hat to new, unflooded areas; and will also include a waterflood expansion in Matziwin. These projects are designed to increase recovery from well defined oil pools and also help flatten Journey’s already low decline rates.

For the medium term, the primary purpose of the debenture was to extend the near-term debt repayment obligations to 2029, thereby allowing for an expansion in E&D capital in 2024 and 2025 for projects including preliminary development of the Duvernay resource.

Spartan Delta Corp. Joint Venture

On May 7, 2024 Journey announced its participation in a 128 section Joint Venture land block with Spartan Delta Corp. (“Spartan“) to mutually pursue the development of the Duvernay west shale basin. The initial working interest within the block is 37.5% Journey and 62.5% Spartan Delta Corporation. The partners currently control 94 sections within the block. Two wells are planned for later in 2024. Journey’s share of these expenditures will be primarily funded through the convertible debenture financing, which closed in March.

The announcement of the Spartan – JOY Joint Venture (the “Joint Venture“) on May 7, 2024 marks the beginning of the next chapter in Journey’s effort to capitalize on this vast resource. As an early mover in the play Journey assembled a significant land position and entered into a Joint Venture with Kiwetinohk to develop the Duvernay resource in 2018. Even though this effort stalled due to lack of investment and the subsequent disposition by Kiwetinohk of their interest to Spartan in 2023, those early efforts produced three basin leading Duvernay wells that now have an extensive production history and confirm the value of this resource.

In 2023, Journey’s continued belief in this play lead the Company to complete a farm-in agreement with a freehold mineral owner in the Gilby area of Alberta to re-acquire some of the expired lands. This farm-in, combined with Journey’s existing acreage gave the Company access to approximately fifty contiguous, gross sections (34 net). These lands are adjacent to Journey’s Gilby gas processing facility, are overlain by liquid-rich Glauconite natural gas production, and contain the three Duvernay discovery wells. The primary term of the option agreement is for four years with an option to extend the term to seven years. Previous to the Company entering into the Joint Venture, Journey planned on drilling a minimum of four Duvernay wells on this block during the four year primary term.

At the time of the Kiwetinohk joint venture in 2018, Journey was smaller and had little option but to sell down its working interest through the farm out to Kiwetinohk. In 2024, after the term out of the majority of its debt until 2029, Journey is larger and better capitalized. Further, 2025 will mark the first year that Journey realizes more revenue from power generation than it requires in capital for the power projects, creating significant free cash flow. Therefore, Journey set out to find a quality partner where it could take advantage of the economies of scale working with a larger operator while minimizing the risk of single events on the Company’s business plan. The Company’s desire was to accomplish this without diluting the existing land position while maximizing the net number on azimuth locations in the liquids window.

The new Joint Venture block with Spartan consists of 94 controlled sections within a 128 section block in the heart of the oil window. At a 37.5% initial working interest, Journey has preserved its initial acreage position and aligned its interests with a well-capitalized operator with a proven track record of creating exceptional value for stakeholders. Under certain circumstances over the next few months, Spartan has the potential to increase their working interest within the block from 62.5% to 70% through a contribution of additional lands to the Joint Venture at their cost.

Initial capital expenditures for the Joint Venture are capped at gross amounts of $30 million and $100 million for 2024 and 2025 respectively. The cap on expenditures can be increased upon mutual agreement of both parties. The 2024 capital program is sufficient to drill, complete, equip and tie-in two wells on azimuth from a single pad late in 2024.

The Duvernay resource is located within the sweet spot of the west shale basin and is contiguous, 30-40 meters thick, and covers an extensive area. In the Joint Venture block, production is forecast to be approximately 75% liquids, the vast majority of which is light oil. Approximately fifty wells have been drilled over the past five years in the liquids window southwest and northeast of the Joint Venture lands and three top quartile wells define the resource in the middle of the Joint Venture block. Given the extensive efforts and results to date, Journey feels that there is little geologic, reservoir, drilling, or completion risk associated with the play. Journey feels that the primary drivers for this play center around water resources, logistics and infrastructure and this is why working with a low cost operator to conduct operations on a larger scale is highly beneficial to both parties.


Journey budgeted $11 million to complete the Gilby power project in 2024. Journey forecasts spending the majority of its budgeted capital for this project between March 15 and October 1 of 2024. The building for the Gilby project was completed in early April and the generators have now been placed in the building. In the next few weeks Journey will begin work to update the electronic components within the generators. Journey currently forecasts completion of the Gilby project by October of 2024, however the time-line for start-up remains outside of its control due to final regulatory and transmissions approvals. For this reason, Journey’s current guidance contains no power revenue from Gilby in 2024.

Journey has budgeted $6.3 million for re-energizing the Mazeppa power project in 2024. In the second quarter of 2023, Journey purchased the 16.5 MW power generation facility at Mazeppa through an open auction process that started in November 2022. This facility was originally commissioned by another operator in 2015, and ran for less than one year before being shut-in. The Mazeppa facility is located near the community of High River, Alberta and consists of five, 3.3 MW generators and includes switch gear, coolers, and an export transformer. The generators, ancillary equipment, and buildings are in excellent condition as they previously had minimal run time. Journey estimates that the replacement value of this facility is in excess of five times the purchase price. Journey has now purchased the land the facility currently resides on and has also purchased the pipeline, which transports sales gas from an ATCO pipeline. Although Journey continues to await regulatory approvals, all of the efforts to date have resulted in Journey being optimistic that Mazeppa will be re-energized in its current location and looks forward to providing updates in due course.

Journey is planning to increase its power sales to the Alberta electricity grid by over 350% when the Gilby and Mazeppa projects come on-line. As previously disclosed in Journey’s February 22, 2024 press release the combined value of Journey’s Gilby and Mazeppa projects is forecast to be $70.9 million as evaluated by GLJ Petroleum Consultants Ltd. and effective January 1, 2024. This value includes the full capital estimate to bring these projects on stream. The nature of Journey’s asset base is such that it is a large power consumer with power costs representing approximately 25% of overall corporate operating costs. When the Gilby and Mazeppa power projects are on-stream, Journey will be in a position to more than offset its corporate power usage with power sales to the power grid. This will help diversify the corporate revenue stream and effectively provide a hedge against a volatile commodity pricing environment. The extreme volatility in recent in power prices continues to re-enforce the validity of this long-term strategy.


Sales volumes for the quarter were 11,906 boe/d of which 56% were liquids (crude oil and NGL’s). Due to depressed natural gas prices resulting from a relatively warm winter liquids revenues accounted for 87% of commodity revenues. Average commodity prices decreased by 4% from the first quarter of 2023 to the current quarter with natural gas making up most of this decline while oil prices were slightly higher by 2% and liquids prices were 5% lower. Lower power costs within the quarter resulted in operating expenses that were lower by 6% at $18.50/boe/d in the first quarter of 2024 compared to $19.78/boe/d in the same quarter of 2023. Despite the lower volumes and lower natural gas prices, Journey posted solid Adjusted Funds Flow for the first quarter of 2023 at $17.7 million, which was only 1% lower than the same quarter of 2023. Adjusted Funds Flow per share was $0.29 on a basic weighted average basis and $0.27 on a diluted basis.

Journey realized net income of $3.2 million in the first quarter of 2024 compared to $6.4 million in the same quarter of 2023. Net income per basic and diluted share was $0.05 for the first quarter. Cash flow from operations was $8.0 million in the first quarter of 2024 ($0.13 per basic share and $0.12 per diluted share).

Journey closed a bought deal convertible debenture financing on March 20, 2024 for gross proceeds of $38.0 million. The financing was subscribed for by three long-term institutional investors. The net proceeds of the financing were used to repay the remaining $11.0 million of vendor take back debt, which was originally issued in 2022 and $12.1 million was used to repay AIMCo. The remainder will be used to help fund an expansion of Journey’s drilling program later in the year and for working capital purposes. Journey ended the quarter with a strong cash position of $20.9 million.

Journey continued to be prudent with its capital spending during the first quarter as it underspent its Adjusted Funds Flows. Total capital expenditures in the first quarter were $14.3 million. As a result, Journey exited the first quarter of 2024 with net debt of $60.1 million as compared to $71.1 million at March 31, 2023 and $61.7 million at December 31, 2023. Journey’s net debt to annualized Adjusted Funds Flow ratio for the first quarter is a very respectable 0.8 times.


The new Duvernay Joint Venture has the potential to alter where Journey allocates its capital in the second half of 2024. The actual amount and timing of the capital spending for 2024 will be determined over the coming months as plans for the Joint Venture spending are finalized. Therefore, guidance for 2024 remains unchanged from the guidance issued on March 28, 2024. Journey intends to update its guidance at regular intervals throughout the year and as circumstances materially change.

This guidance incorporates many material underlying assumptions including but not limited to:

  • Forecasted commodity prices by month;
  • Forecasted operating costs, including forecasted prices for power;
  • Forecasted costs for the capital program and the timing of the spending; and
  • Forecasted results and phasing of production additions from the capital program;
2024 Guidance
Annual average daily sales volumes 11,500-12,000 boe/d (55% crude oil & NGL’s)
Adjusted Funds Flow $70 – 73 million
Adjusted Funds Flow per weighted average share $1.14 – $1.19
Capital spending $51 million
Year-end Net Debt
Net Debt to Adjusted Funds Flow ratio
$40 – $44 million
Reference commodity prices:
WTI (USD $/bbl)
MSW oil differentials (USD $/bbl)
WCS oil differentials (USD $/bbl)
AECO natural gas (CAD $/mcf)
CAD/USD foreign exchange



  1. The weighting of the corporate sales volumes guidance is as follows:
    1. Heavy crude oil: 19%
    2. Light/medium crude oil: 27%
    3. NGL’s: 10%
    4. Coal-bed methane natural gas: 6%
    5. Conventional natural gas: 38%

Journey’s low corporate decline, high working interest project inventory, operated infrastructure, and favourable mineral lease expiry profile allow the Company to weather periods of lower than forecast commodity prices by proactively deferring portions of the capital program on a temporary basis. Journey is focused on adjusting its capital program to meet its near term obligations without sacrificing the longer term priorities of sustainability and enhancing shareholder value.

Annual General Meeting

Journey’s annual general meeting (“AGM” or the “Meeting”) is scheduled for 3:00 pm (Calgary time) on May 23, 2024. Shareholders not attending in person must vote on the matters not less than forty-eight (48) hours (excluding Saturdays, Sundays and statutory holidays in the Province of Alberta) before the time of the Meeting. Journey is offering shareholders an opportunity to listen to the business to be conducted at the Meeting by teleconference. Further instructions on how to listen to the Meeting and how to vote in advance of the Meeting can be found in Journey’s management information circular that is posted on the Company’s website and on SEDARPLUS. Journey expects to only have a minimum number of in-person attendees present to conduct the formal business of the Meeting and does not intend to provide a corporate presentation after the Meeting.

About the Company

Journey is a Canadian exploration and production company focused on conventional, oil-weighted operations in western Canada. Journey’s strategy is to grow its production base by drilling on its existing core lands, implementing water flood projects, and executing on accretive acquisitions. Journey seeks to optimize its legacy oil pools on existing lands through the application of best practices in horizontal drilling and, where feasible, with water floods. In addition, Journey is seeking to grow its power generation business. Journey currently produces approximately 4 MW of electricity and with the recently announced facility acquisitions is anticipating to expand its productive capacity to approximately 36 MW within the next year.

For further information contact:

Alex G. Verge
President and Chief Executive Officer 


Gerry Gilewicz
Chief Financial Officer

Journey Energy Inc.
700, 517 – 10th Avenue SW
Calgary, AB T2R 0A8


This press release contains forward-looking statements and forward-looking information (collectively “forward looking information”) within the meaning of applicable securities laws relating to the Company’s plans and other aspects of the anticipated future operations, management focus, strategies, financial, operating and production results, industry conditions, commodity prices and business opportunities. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding decline rates, anticipated netbacks, drilling inventory, estimated average drill, complete and equip and tie-in costs, anticipated potential of the Assets including, but not limited to, EOR performance and opportunities, capacity of infrastructure, potential reduction in operating costs, production guidance, total payout ratio, capital program and allocation thereof, future production, decline rates, funds flow, net debt, net debt to funds flow, exchange rates, reserve life, development and drilling plans, well economics, future cost reductions, potential growth, and the source of funding Journey’s capital spending. Forward-looking information typically uses words such as “anticipate”, “believe”, “project”, “expect”, “goal”, “plan”, “intend” or similar words suggesting future outcomes, statements that actions, events or conditions “may”, “would”, “could” or “will” be taken or occur in the future.

The forward-looking information is based on certain key expectations and assumptions made by management, including expectations and assumptions concerning prevailing commodity prices and differentials, exchange rates, interest rates, applicable royalty rates and tax laws; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; the ability to efficiently integrate assets and employees acquired through acquisitions, including the Acquisition, the ability to market oil and natural gas successfully and the ability to access capital. Although we believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Journey can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that we will derive therefrom. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on future operations and such information may not be appropriate for other purposes.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect the operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website ( These forward looking statements are made as of the date of this press release and we disclaim any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

This press release contains future-oriented financial information and financial outlook information (collectively, “FOFI”) about Journeys prospective results of operations, funds flow, netbacks, debt, payout ratio well economics and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this press release was made as of the date of this press release and was provided for providing further information about Journey’s anticipated future business operations. Journey disclaims any intention or obligation to update or revise any FOFI contained in this press release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this press release should not be used for purposes other than for which it is disclosed herein. Information in this press release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws, which involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Journey, including, without limitation, those listed under “Risk Factors” and “Forward Looking Statements” in the Annual Information Form filed on on March 31, 2023. Forward-looking information may relate to the future outlook and anticipated events or results and may include statements regarding the business strategy and plans and objectives. Particularly, forward-looking information in this press release includes, but is not limited to, information concerning Journey’s drilling and other operational plans, production rates, and long-term objectives. Journey cautions investors in Journey’s securities about important factors that could cause Journey’s actual results to differ materially from those projected in any forward-looking statements included in this press release. Information in this press release about Journey’s prospective funds flows and financial position is based on assumptions about future events, including economic conditions and courses of action, based on management’s assessment of the relevant information currently available. Readers are cautioned that information regarding Journey’s financial outlook should not be used for purposes other than those disclosed herein. Forward-looking information contained in this press release is based on current estimates, expectations and projections, which we believe are reasonable as of the current date. No assurance can be given that the expectations set out in the Prospectus or herein will prove to be correct and accordingly, you should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time except as required by applicable securities law.

Non-IFRS Measures

The Company uses the following non-IFRS measures in evaluating corporate performance. These terms do not have a standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculation of similar measures by other companies.

(1) “Adjusted Funds Flow” is calculated by taking “cash flow provided by operating activities” from the financial statements and adding or deducting: changes in non-cash working capital; non-recurring “other” income; transaction costs; and decommissioning costs. Adjusted Funds Flow per share is calculated as Adjusted Funds Flow divided by the weighted-average number of shares outstanding in the period. Because Adjusted Funds Flow and Adjusted Funds Flow per share are not impacted by fluctuations in non-cash working capital balances, Management believes these measures are more indicative of performance than the GAAP measured “cash flow generated from operating activities”. In addition, Journey excludes transaction costs from the definition of Adjusted Funds Flow, as these expenses are generally in respect of capital acquisition transactions. The Company considers Adjusted Funds Flow a key performance measure as it demonstrates the Company’s ability to generate funds necessary to repay debt and to fund future growth through capital investment. Journey’s determination of Adjusted Funds Flow may not be comparable to that reported by other companies. Journey also presents “Adjusted Funds Flow per basic share” where per share amounts are calculated using the weighted average shares outstanding consistent with the calculation of net income (loss) per share, which per share amount is calculated under IFRS and is more fully described in the notes to the audited, year-end consolidated financial statements.

March 31,
March 31,
Cash flow provided by operating activities 7,994 11,461  
Add (deduct):    
Changes in non-cash working capital 9,365 4,280
Transaction costs 189 2
Decommissioning costs incurred 172 2,216  
Adjusted Funds Flow 17,720 17,959  
Adjusted Funds Flow per basic (diluted) weighted average share $ 0.29   $ 0.31  
$ 0.27 $ 0.28  


(2) Netback(s)“. The Company uses netbacks to help evaluate its performance, leverage, and liquidity; comparisons with peers; as well as to assess potential acquisitions. Management considers netbacks as a key performance measure as it demonstrates the Company’s profitability relative to current commodity prices. Management also uses them in operational and capital allocation decisions. Journey uses netbacks to assess its own performance and performance in relation to its peers. These netbacks are operating, Funds Flow and net income (loss). “Operating netback” is calculated as the average sales price of the commodities sold (excluding financial hedging gains and losses), less royalties, transportation costs and operating expenses. There is no GAAP measure that is reasonably comparable to netbacks.

(3) Net debt” is calculated by taking current assets and then subtracting accounts payable and accrued liabilities; the principal amount of term debt; and the carrying value of the other liability. Net debt is used to assess the capital efficiency, liquidity and general financial strength of the Company. In addition, it is used as a comparison tool to assess financial strength in relation to Journey’s peers. The reconciliation of Journey’s net debt is as follows:

($000’s) March 31,
March 31,
Principal amount of term debt 31,063 43,763  
Principal amount of vendor-take-back debt 37,000
Principal amount of convertible debentures 38,000
Accounts payable and accrued liabilities 43,537 44,065
Principal amount of contingent bank debt 5,000
Other loans 429 419
Cash in bank (20,907 ) (19,440 )
Accounts receivable (26,809 ) (31,483 )
Prepaid expenses (5,182 ) (3,253 )
Net debt 60,131 71,071  


(4) Journey uses “Capital Expenditures” to measure its capital investment level compared to the Company’s annual budgeted capital expenditures for its organic capital program, excluding acquisitions or dispositions. The directly comparable GAAP measure to capital expenditures is cash used in investing activities. Journey then adjusts its capital expenditures for A&D activity to give a more complete analysis for its capital spending used for FD&A purposes. The following table details the composition of capital expenditures and its reconciliation to cash flow used in investing activities:

3 Months ended
March 31,
2024 2023  
Land and lease rentals 354 227
Geological & geophysical 33 225
Drilling and completions 7,023 2,156
Well equipment and facilities 3,634 3,716
Power generation assets 3,243 1,529  
Total capital expenditures 14,287 7,854  
PP&E acquisitions  
PP&E dispositions (1,036 )
Net capital expenditures 14,287 6,818  
Decommissioning expenditure 172 2,383  
Total capital expenditures 14,459 9,201  



All dollar figures included herein are presented in Canadian dollars, unless otherwise noted.

Where amounts are expressed in a barrel of oil equivalent (“boe”), or barrel of oil equivalent per day (“boe/d”), natural gas volumes have been converted to barrels of oil equivalent at nine (6) thousand cubic feet (“Mcf”) to one (1) barrel. Use of the term boe may be misleading particularly if used in isolation. The boe conversion ratio of 6 Mcf to 1 barrel (“Bbl”) of oil or natural gas liquids is based on an energy equivalency conversion methodology primarily applicable at the burner tip, and does not represent a value equivalency at the wellhead. This conversion conforms to the Canadian Securities Regulators’ National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.


The following abbreviations are used throughout these MD&A and have the ascribed meanings:

A&D acquisition and divestiture of petroleum and natural gas assets
bbl barrel
bbls barrels
boe barrels of oil equivalent (see conversion statement below)
boe/d barrels of oil equivalent per day
E&D exploration and development activities as defined in the COGE Handbook
gj gigajoules
GAAP Generally Accepted Accounting Principles
IFRS International Financial Reporting Standards
Mbbls thousand barrels
MMBtu million British thermal units
Mboe thousand boe
Mcf thousand cubic feet
Mmcf million cubic feet
Mmcf/d million cubic feet per day
MSW Mixed sweet Alberta benchmark oil price
MWh Mega-watt hours of electricity
NGL’s natural gas liquids (ethane, propane, butane and condensate)
WCS Western Canada Select benchmark oil price
WTI West Texas Intermediate benchmark Oil price


All volumes in this press release refer to the sales volumes of crude oil, natural gas and associated by-products measured at the point of sale to third-party purchasers. For natural gas, this occurs after the removal of natural gas liquids.

No securities regulatory authority has either approved or disapproved of the contents of this press release.