i3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) highlighted several key achievements in the second quarter, including a strategic sale of most of its royalty assets and continued strong production levels.
The company entered a definitive agreement to sell a significant portion of its royalty assets, generating gross cash consideration of US$24.81 million.
This transaction contributed to free cash flow of $28.50 million for the quarter.
i3 reported a profit before tax of $24.40 million and achieved an average production of 18,271 barrels of oil equivalent per day, despite various production outages and asset sales.
Additionally, i3 Energy completed the sale of non-core assets in Northern Alberta, realising $2.75 million.
As of 30 June, the company reported a net cash surplus of $6.96 million and announced a successful borrowing base redetermination at CAD$75 million.
Majid Shafiq, chief executive of i3 Energy plc, said: "Q2 2024 was a very busy period for the Company as we completed the strengthening of our balance sheet through the highly accretive sale of the majority of our royalty interests and the refinancing of our outstanding debt with a revolving non-amortising reserves-based loan.
“This corporate activity essentially made i3 debt-free and created significant liquidity to finance our development program."
In line with its commitment to shareholder returns, i3 Energy declared and paid first-quarter dividends totalling £3.08 million ($3.89 million).