|Adjusted EBITDA is calculated as net income (loss) before interest and financing expenses, income taxes, depletion, depreciation and amortisation, and adjusted to exclude certain non-cash, extraordinary and non-recurring items primarily relating to bargain purchase gains, gains and losses on financial instruments, transaction and advisory costs and impairment losses. Calima utilises adjusted EBITDA as a measure of operational performance and cash flow generating capability. Adjusted EBITDA impacts the level and extent of funding for capital projects investments or returning capital to shareholders.
|Adjusted working capital:
|Adjusted working capital is comprised of current assets less current liabilities on the Company’s balance sheet and excludes the current portions of risk management contracts and credit facility draws. Adjusted working capital is utilised by Management and others as a measure of liquidity because a surplus of adjusted working capital will result in a future net cash inflow to the business which can be used for future funding, and a deficiency of adjusted working capital will result in a future net cash outflow which will require a future draw from Calima’s existing funding capacity.
|ARO / Asset Retirement Obligation:
|The process of permanently closing and relinquishing a well by using cement to create plugs at specific intervals within a well bore
|Available funding is comprised of adjusted working capital and the undrawn component of Blackspur’s credit facility. The available funding measure allows Management and other users to evaluate the Company’s liquidity.
|Credit Facility Interest:
|Borrowings under the Credit Facility incur interest at a market-based interest rate plus an applicable margin which varies depending on Blackspur’s net debt to cash flow ratio. Interest charges are between 150 bps to 350 bps on Canadian bank prime borrowings and between 275 bps and 475 bps on Canadian dollar bankers’ acceptances. Any undrawn portion of the demand facility is subject to a standby fee in the range of 20 bps to 45 bps. Security for the credit facility is provided by a C$150 million demand debenture
|Carbon dioxide equivalent
|A well that produces gas or oil from a conventional underground reservoir or formation, typically without the need for horizontal drilling or modern completion techniques
|A device or facility located along a natural gas pipeline that raises the pressure of the natural gas flowing in the pipeline, which in turn compresses the natural gas, thereby both increasing the effective capacity of the pipeline and allowing the natural gas to travel longer distances
|Consolidated, average rate decline for net production from the Company’s assets
|Exit production is defined as the average daily volume on the last week of the period
|Oil and gas sales net of royalties, transportation and operating expenses
|A financial arrangement which allows the Company to protect against adverse commodity price movements, the gains or losses of which flow through the Company’s derivative settlements on its financial statements
|Free Cash Flow (FCF):
|Represents Hedged Adjusted EBITDA less recurring capital expenditures, asset retirement costs and cash interest expense
|Free Cash Flow Yield:
|Represents free cash flow as a percentage of the Company’s total market capitalisation at a certain point in time
|Funds flow is comprised of cash provided by operating activities, excluding the impact of changes in non-cash working capital. Calima utilises funds flow as a measure of operational performance and cash flow generating capability. Funds flow also impacts the level and extent of funding for investment in capital projects, returning capital to shareholders and repaying debt. By excluding changes in non-cash working capital from cash provided by operating activities, the funds flow measure provides a meaningful metric for Management and others by establishing a clear link between the Company’s cash flows, income statement and operating netbacks from the business by isolating the impact of changes in the timing between accrual and cash settlement dates.
|Gathering & Compression (G&C):
|Owned midstream expenses; the costs incurred to transport hydrocarbons across owned midstream assets
|Gathering & Transportation (G&T):
|Third-party gathering and transportation expense; the cost incurred to transport hydrocarbons across third-party midstream assets
|General and administrative expenses; may be represented by recurring expenses or non-recurring expense
|Hedged Adjusted EBITDA:
|EBITDA including adjustments for non-recurring and non-cash items such as gain on the sale of assets, acquisition related expenses and integration costs, mark-to-market adjustments related to the Company’s hedge portfolio, non-cash equity compensation charges and items of a similar nature;
|Non-exponential with subtle multiple decline rates; hyperbolic curves decline faster early in the life of the well and slower as time increases
|The LMR (Liability Management Ratio) is determined by the Alberta Energy Regulator (“AER”) and is calculated by dividing Blackspur’s deemed assets by its deemed liabilities, both values of which are determined by the AER.
|Lease operating expense, including base LOE, production taxes and gathering & transportation expense
|A segment of the oil and gas industry that focuses on the processing, storing, transporting and marketing of oil, natural gas, and natural gas liquids
|Net debt is calculated as the current and long-term portions of Calima’s credit facility draws, lease liabilities and other borrowings net of adjusted working capital. The credit facility draws are calculated as the principal amount outstanding converted to Australian dollars at the closing exchange rate for the period. Net debt is an important measure used by Management and others to assess the Company’s liquidity by aggregating long-term debt, lease liabilities and working capital.
|NGL / Natural Gas Liquids:
|Hydrocarbon components of natural gas that can be separated from the gas state in the form of liquids
|Net Debt/Adjusted EBITDA (Leverage):
|A measure of financial liquidity and flexibility calculated as Net Debt divided by Hedged Adjusted EBITDA
|Net Revenue Interest:
|A share of production after all burdens, such as royalty and overriding royalty, have been deducted from the working interest. It is the percentage of production that each party actually receives
|Total lease operating expense (LOE) plus gathering & compression expense
|Operating netback is calculated on a per boe basis and is determined by deducting royalties, operating and transportation from oil and natural gas sales, after adjusting for realised hedging gains or losses. Operating netback is utilised by Calima and others to assess the profitability of the Company’s oil and natural gas assets on a standalone basis, before the inclusion of corporate overhead related costs. Operating netback is also utilised to compare current results to prior periods or to peers by isolating for the impact of changes in production volumes.
|A marketing contract between buyer and seller of a physical commodity which locks in commodity pricing for a specific index or location and that is reflected in the Company’s commodity revenues Production Taxes: state taxes imposed upon the value or quantity of oil and gas produced
|An additional economic ownership interest in the jointly-owned properties that is conveyed cost-free to the operator in consideration for operating the assets
|PDP/ Proved Developed Producing:
|A reserve classification for proved reserves that can be expected to be recovered through existing wells with existing equipment and operating methods
|A standard metric utilised in SEC filings for the valuation of the Company’s oil and gas reserves; the present value of the estimated future oil and gas revenues, reduced by direct expenses, and discounted at an annual rate of 10%
|RBL / Reserve Based Lending:
|A revolving credit facility available to a borrower based on (secured by) the value of the borrower’s oil and gas reserves
|Royalty Interest or Royalty:
|Interest in a leasehold area providing the holder with the right to receive a share of production associated with the leasehold area
|Represents the steady state decline rate after early (initial) flush production
|Tonnes of Carbon Dioxide
|A well that produces gas or oil from an unconventional underground reservoir formation, such as shale, which typically requires hydraulic fracturing to allow the gas or oil to flow out of the reservoir
|A segment of the oil and gas industry that focuses on the exploration and production of oil and natural gas
|Working Capital Ratio:
|The working capital ratio as the ratio of (i) current assets plus any undrawn availability under the facility to (ii) current liabilities less any amount drawn under the facilities. For the purposes of the covenant calculation, risk management contract assets and liabilities are excluded.
|WI/ Working Interest:
|A type of interest in an oil and gas property that obligates the holder thereof to bear and pay a portion of all the property’s maintenance, development, and operational costs and expenses, without giving effect to any burdens applicable to the property