Analysts Expect Strong Recovery for Logan Energy After Q1 Setback

Canadian oil & gas exploration and production company, Logan Energy (TSXV: LGN), faced a drop in production during the first quarter of 2024 due to an unexpected pipeline failure at their Pouce Coupe facility. This resulted in a sequential decrease in the company’s natural gas liquid (NGL) production of -21%, while crude oil and natural gas production fell by -12% and -5%, respectively. Consequently, the company’s total revenue for Q1 2024 dropped by -14%. Repairs to the pipeline were finished by early April.

According to Visible Alpha consensus, despite the setback, Logan Energy’s production is expected to rebound in the second quarter, with significant growth expected in subsequent quarters. NGL production is forecasted to sequentially increase by +9% in 2Q, natural gas production by +7%, and crude oil and condensate production by +4%. As a result, total revenue from oil, NGL, and natural gas is estimated to grow by +6%, reaching C$25.8 million, in the second quarter. Analysts anticipate double-digit growth in production volumes and revenue for the third and fourth quarters. Overall, in 2024, total revenue from oil, NGL, and natural gas is expected to rise by +62% year over year, reaching C$128 million.