PXP Energy Corporation Reported P9.5 Million Core Net Loss in H1-2024; P9.2 Million Consolidated Net Loss Attributable to Equity Holders of the Parent Company

PXP Energy Corporation reported H1-2024 results. Core Net Loss was lower at P9.5 million (6M 2023: P13.4 million) due to a higher average crude oil price, higher volume lifted from Galoc operations, a slight reduction in overhead, and a lower interest expense net. Consolidated Net Loss Attributable to Equity Holders of the Parent Company was also lower at P9.2 million (6M 2023: P12.7 million).

Consolidated petroleum revenues improved by 9.1% at P42.9 million (6M 2023: P39.4 million), following a 3.2% improvement in average crude price at US$82.1/bbl (6M 2023: US$79.6/bbl) in addition to a 2.6% higher output sold at 309,198 bbls (6M 2023: 301,339 bbls) in SC 14C-1 Galoc.

Consolidated costs and expenses stood at P49.1 million (6M 2023: P48.7 million) as petroleum production costs increased to P26.2 million (6M 2023: P25.4 million), offset by the reduction in recurring overhead to P22.9 million (6M 2023: P23.3 million).

At the Board Meeting held on May 10, 2024, the Board approved the issuance of 430,243,903 common shares (PXP Shares) of the Company to Tidemark Holdings Limited (Tidemark) in exchange for 24,125,383 shares held by Tidemark in Forum Energy Limited (Tidemark FEL Shares). Subject to the confirmation by the Securities and Exchange Commission of the valuation, PXP intends to issue the PXP Shares to Tidemark at the aggregate value of P1,557,482,928.86 or at an issue price of P3.62 per share, in exchange for the Tidemark FEL Shares at the share swap ratio of approximately 17.8337 PXP Shares for every 1 Tidemark FEL Share. The Tidemark FEL Shares are valued at P1,557,482,928.86 or at the price of approximately P64.5579 per share.

The Share Swap Ratio is supported by a valuation report, and the fairness of the Share Swap ratio was confirmed by the fairness opinion, issued by PwC Philippines - Isla Lipana &; Co., an independent expert qualified to issue the report under applicable accrediting guidelines of the PSE. After the Share Swap, the Corporation’s effective interest in FEL will increase from 77.88% to 97.88%, and effective interest in SC72 from 54.5% to 68.5%, and Tidemark will own 18% of the resulting total issued and outstanding capital stock of the Corporation. The main objective of the Share Swap Transaction is to streamline both PXP’s and Tidemark’s interest in FEL and in SC72.

The Share Swap was approved by the majority of the Company’s shareholders on July 8, 2024.

Outlook

Each of PXP Energy Corporation (“PXP”) and Forum Energy Limited will continue to coordinate with the Government on any possible arrangement of activities in both SC 72 and SC 75. Exploration work in SC 40 will be pursued. Meanwhile, PXP will assess and study other oil and gas projects within the Philippines.

PXP Energy Corporation is an upstream oil and gas company incorporated in the Philippines whose shares are listed on the Philippine Stock Exchange.