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Crew Energy Announces 2023 Capital Budget and 4-Year Plan to Significantly Increase Size and Scale Through 2026 by Building on Success of Previous Two-Year Plan

CALGARY, Alberta, Dec. 08, 2022 (GLOBE NEWSWIRE) -- Crew Energy Inc. (TSX: CR; OTCQB: CWEGF) ("Crew" or the "Company"), a growth-oriented natural gas weighted producer operating in the world-class Montney play in northeast British Columbia (“NE BC”), is pleased to announce that our Board of Directors (the “Board”) has approved a capital expenditure budget for the full year 2023 (the “2023 Budget”), along with unveiling a new, longer-range asset development plan that builds on the successful execution realized with our 2020 two-year plan. Having provided preliminary guidance for the first half of 2023 (“H1/23”) within our Q3 2022 results press release, Crew is pleased to share details of our 2023 Budget, along with our preliminary longer-range plan through 2026 (the “Four-Year Plan”)1.

Successful execution of this Four-Year Plan would position Crew to significantly increase production, targeting average annual volumes of approximately 61,000 boe per day2 upon completion. In addition, the Four-Year Plan sets the stage for the Company to realize further enhanced margins and increased adjusted funds flow (“AFF”)3, while maintaining conservative leverage metrics of approximately one times or less net debt3 to last twelve months (“LTM”) EBITDA4 .

An infographic accompanying this announcement is available at


At the end of 2022, Crew will have successfully concluded the execution of our 2020 two-year plan that was originally announced in December 2020, with financial results coming in well ahead of initial forecasts:

Crew’s Performance Metric
Original Two-Year
Forecast Target
Anticipated Two-Year
Forecast Result*
2022 estimates
Average Production50% Increase50% Increasefrom 21,955 to 32,800 boe per day
Adjusted Funds Flow (“AFF”)3235% Increase675% Increasefrom $41.2 MM to $320MM
Cash Costs Per Boe525% Reduction26% Reduction from $13.19 to $9.70 per boe
Net Debt3 to LTM EBITDA42.0 – 2.5x0.5xfrom 5.5x to 0.5x

* Based on estimated, unaudited year-end 2022 results, consistent with our updated 2022 guidance and material assumptions outlined in our November 3, 2022 press release.


As part of the Company’s regular strategic planning, Crew evaluated a number of value creating strategies for our shareholders, particularly in light of our vast high-quality strategic resource in NE BC. After careful consideration, Crew’s management and the Board believe that our shareholders’ best interests would be served by continuing to invest in our assets and grow production at a pace that also allows the Company to:

  • control the speed of development to ensure a conservative balance sheet is maintained;
  • maintain ownership and control of strategic infrastructure;
  • invest in our highly economic assets to increase AFF3 and free AFF5 per share which should enhance the equity value of Crew’s shares;  
  • position Crew to be an active participant in what is expected to be an improved natural gas pricing environment when LNG Canada is commissioned;
  • continue to drive down per unit costs and improve margins;
  • continue building on the momentum achieved in our ESG and sustainability initiatives; and
  • ensure there are contingency plans in place to maintain a position of operational control and strength for Crew during periods of adversity.

While Crew successfully increased production and expanded development of our asset base over the past two years, the Company has adapted and compromised on certain capital allocation decisions related to limited regulatory permits being issued in NE BC associated with the ongoing negotiation between the BC Government and the Blueberry River First Nation that has persisted for the past 17-months. Recent public statements by the BC Government indicate that a resolution is “very close”, and as such, Crew is cautiously optimistic that the issuance of regulatory permits may soon resume. In that case, Crew would be ideally positioned to regain flexibility around capital allocation decisions across our asset base. The Company currently has an inventory of 65 actionable well permits of which 47 are tier one locations and has submitted numerous permit applications for approval, representing 93 well locations, the future Groundbirch Plant, gathering lines, facilities, and ancillary activities. This is expected to support the Company’s active drilling and completions program as contemplated in the Four-Year Plan.

Crew’s Four-Year Plan is designed to build on the momentum gained over the last two years, underpinned by a planned active hedging program and continued focus on operational excellence and execution. The Company’s long runway of more than 2,500 identified potential drilling locations6, of which only 219 are currently booked, supports our goal to double Crew’s production to more than 60,000 boe per day2 between 2023 and 2026, while maintaining a net debt3 to LTM EBITDA4 ratio of approximately one times or less through that period. In the development of our dynamic and flexible Four-Year Plan, the Company has taken a measured approach and considered a variety of potential adverse events7. By doing so, Crew plans to implement cost-effective contingencies available for exercise at our option to maintain the position of financial strength that we successfully realized by executing our previous 2020 two-year plan.

With the unveiling of this new Four-Year Plan, we are extremely excited to continue demonstrating the strength of Crew’s strategy, the skills and abilities of our people, and the value of our world-class Montney assets.


Crew’s previously expanded 2022 capital budget allowed the Company to complete five (5.0 net) extended reach horizontal ultra-condensate rich wells in Q4/22 into a higher forecasted winter natural gas price environment, and to drill six (6.0 net) wells at Tower to realize efficiency gains through continuous drilling operations. Crew has also submitted permit applications to build an electrified 180 mmcf per day deep-cut gas plant at Groundbirch (the Groundbirch Plant”) allowing the Company to reduce operating costs associated with carbon taxes, while materially reducing emissions intensity. The planned Groundbirch development further supports the Company’s goal to reach average production of over 60,000 boe per day2 in 2026. Total capital investments through 2026 are modeled at $1.4 to $1.5 billion, while targeting a net debt3 to LTM EBITDA4 ratio of approximately one times or lower at commodity price assumptions of US$70 per bbl WTI and C$4.00 per mcf AECO through the Four-Year Plan. Crew has secured an additional 120 mmcf per day of natural gas transportation, expected to come on-line in two tranches in 2025. This transportation is additive to our existing natural gas transportation portfolio and sequenced to provide flexibility to manage exposure to long term commitments if required.

2023 Budget

The acceleration of capital from 2023 into 2022, as outlined in our Q3 results press release, results in lower forecast net capital expenditures5 for the first half of 2023, estimated at $45 to $50 million. Additionally, the 2023 Budget facilitates the redemption of the balance of Crew’s $172 million outstanding Senior Unsecured Notes (the “Notes”) during the first six months of 2023, utilizing a combination of free AFF5 and a draw on the Company’s recently increased $200 million credit facility. The planned redemption of the Notes and reduced capital expenditures are designed to support the achievement of specific goals in H1/23, including realizing net debt3 of less than $100 million and being positioned to obtain regulatory permits to prudently and strategically develop our assets under our new Four-Year Plan.

Crew’s full year 2023 net capital expenditures5 budget is forecasted to be $230 to $250 million, with H2/23 expected to be $185 to $200 million, of which $55 to $65 million is planned to be directed to infrastructure and deposits on long-lead items. Infrastructure investment plans include:

  • condensate stabilization and waste heat recovery at Septimus during H1/23 designed to increase Septimus Gas Plant condensate capacity to 5,000 bbls per day, facilitating expanded development of our ultra-condensate rich area, building on the success of our 4-14 wells;
  • construction of 20 kilometers of both 12-inch and 10-inch pipeline from Groundbirch to West Septimus, of which 50% is planned to be completed in H2/23;
  • expenditures for long lead equipment for the planned expansion of compression at West Septimus in 2024 designed to increase the facility’s inlet capacity to over 135 mmcf per day; and
  • payment to secure a line position for electrification of the planned Groundbirch Plant with final investment decision (“FID”) anticipated by year end 2023, which will be dependent on receiving regulatory approvals to complete the project, supportive commodity prices and securing financing for the project.

The focus on achieving specific goals in H1/23 is expected to result in Crew’s 2023 drilling and completions being predominantly focused in H2/23. The 2023 Budget includes the drilling of 18 (18.0 net) wells and completion of 19 (19.0 net) wells in the Greater Septimus and Groundbirch areas of NE BC during H2/23. With timing of the new drills beginning in Q3/23, coupled with anticipated shut-ins of existing wells to accommodate offsetting completions activity, volumes in 2023 are forecast to be in line with 2022, averaging 30,000 to 32,000 boe per day2 with a forecast exit rate of 35,000 to 37,000 boe per day2 (exit being defined as average production through the month of December 2023).

Active Hedging Program Through 2023

Crew has been actively hedging natural gas and condensate volumes for 2023 and plans to begin hedging for 2024 and 2025. Through 2023, Crew has approximately 72,000 GJ’s hedged at C$4.47 per GJ (or $5.45 per mcf using Crew’s higher heat content factor) and 1,500 bbls per day of condensate at an average price of C$106.00 per bbl for the first six months of 2023 and 250 bbls per day at an average price of C$102.50 per bbl for the second half of 2023.

2024 PLAN1

Crew’s Four-Year Plan assumes the investment of between $400 to $450 million in net capital expenditures5 in 2024, with $165 to $185 million allocated to infrastructure. The plan includes drilling approximately 30 (30.0 net) wells, completing approximately 24 (24.0 net) wells, as well as drilling and completing one (1.0 net) disposal well and initiating construction of the Groundbirch Plant, which will be integral to support the Company’s long-term growth and expanded scale.

Between H2/23 and H2/24, Crew would be required to identify and secure financing for the Groundbirch Plant, which could potentially be sourced from AFF, bank or other debt instruments, asset sales, equity issuances, an infrastructure financing partner or some combination thereof. Crew’s 2024 average annual production is targeted at 35,000 to 37,000 boe per day2 with a targeted exit rate between 38,000 to 40,000 boe per day2.

2025 PLAN1

Crew assumes 2025 net capital expenditures5 between $400 to $450 million, of which approximately $135 to $155 million is expected to be allocated to infrastructure. The 2025 plan targets drilling of approximately 37 (37.0 net) wells and completing approximately 28 (28.0 net) wells, along with construction, completion and tie-in of the Groundbirch Plant in Q4/25. Average annual production in 2025 is targeted at 41,000 to 43,000 boe per day2, resulting in a targeted exit rate of over 55,000 boe per day2, with the higher volumes designed to support improved per unit cash costs5 declining to between $8.00 to $9.00 per boe in Q4/25.

2026 PLAN1

In the final year of the Four-Year Plan, Crew has the potential to increase average production to between 60,000 to 62,000 boe per day2. Based on current strip prices it is expected that this level of production would generate significant free AFF5 based on a preliminary model comprising 2026 maintenance capital investment of approximately $325 million to $375 million, the majority of which would be directed to drill approximately 33 (33.0 net) wells and complete approximately 40 (40.0 net) wells, designed to enable Crew to fill the Groundbirch Plant.


At Greater Septimus, the three Upper Montney “B” wells drilled to the west on the 4-14 pad have continued to outperform with average IP270 wellhead production rates of 7,436 mcf per day and 391 bbls per day of condensate. The five Upper Montney “B” wells drilled to the east on the 4-14 pad have also continued to outperform with average IP210 wellhead production rates of 1,700 mcf per day and 568 bbls per day of condensate.

At Groundbirch, the five new wells drilled into three distinct zones in the Upper Montney have been produced intermittently and are currently producing an average wellhead rate of 7,680 mcf per day. Although pipeline restricted, current wellhead production from this eight well pad is approximately 52,000 mcf per day with three wells restricted with bottom hole chokes and one well shut-in.

Crew is currently drilling a six (6.0 net) well pad at Tower and is completing a five (5.0 net) well pad at Greater Septimus.


Crew’s environment, social and governance (“ESG”) initiatives continue to be a core focus, most recently evidenced by the Company achieving independent certification of the natural gas and natural gas liquids production from our NE BC development area under the Equitable Origin EO100 Standard for Responsible Energy Development. From our baseline in 2019 to the end of 2021, Crew’s focus on reducing emissions has resulted in a 23% reduction in emission intensity while production increased by 16%. Crew’s goal to increase production by 83%, in addition to implementing meaningful emissions reduction projects such as Waste Heat Recovery and Electrification, is expected to result in Crew’s emissions intensity declining by 64% from 2019 levels by 2026.


Net capital expenditures5 ($MM)230-250
Annual average production2 (boe/d)30,000-32,000
AFF3 ($MM)300-320
Free AFF5 ($MM)50-90
EBITDA5 ($MM)310-330
Oil price (WTI)($US per bbl)80.00
Natural gas price (NYMEX) ($US per mmbtu)5.00
Natural gas price (AECO 5A) ($C per mcf)4.25
Natural gas price (Crew est. wellhead) ($C per mcf)5.25
Foreign exchange ($US/$CAD)0.75
Royalties (%)9-11
Net operating costs5 ($ per boe)4.50-5.00
Transportation ($ per boe)3.50-4.00
G&A ($ per boe)1.00-1.20
Interest ($ per boe)0.75-1.00

2023 SensitivitiesAFF ($MM)AFF/Share
100 bbl per day Condensate3.20.02
C$1.00 per bbl WTI1.40.01
US $0.10 NYMEX (per mmbtu)3.80.02
1 mmcf per day natural gas 1.70.01
$0.10 AECO 5A (per GJ)2.10.01
$0.01 FX CAD/US4.00.03


Forward-Looking Information and Statements

This news release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" “forecast” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: the ability to execute on its Four-Year Plan and underlying strategy, plans, goals and targets, all as more particularly outlined and described in this press release; our 2023 annual capital budget range, associated drilling and completion plans, the anticipated timing thereof, and all associated near term initiatives, goals and targets, along with all guidance and underlying assumptions related to the 2023 Budget as outlined in this press release; our plans to redeem our outstanding Notes in the first six months of 2023 and assumed liquidity in connection therewith; production estimates and targets under the 2023 Budget and balance of the Four-Year Plan; infrastructure plans and anticipated benefits including those outlined in the 2023 Budget section of this press release and construction of the Groundbirch Plant, anticipated timing and assumed receipt of all regulatory approvals required in connection therewith; our ability to secure financing for the Groundbirch Plant and timing thereof; forecast improvement in debt and leverage metrics; commodity price expectations and assumptions; Crew's commodity risk management programs and future hedging plans; marketing and transportation and processing plans and requirements; estimates of processing capacity and requirements; anticipated reductions in GHG emissions and decommissioning obligations; future liquidity and financial capacity; future results from operations and operating and leverage metrics; targeted debt levels and leverage metrics over the course of the Four-Year Plan; world supply and demand projections and long-term impact on pricing; future development, exploration, acquisition and disposition activities (including our capital investment model through 2026 and associated drilling and completion plans, associated receipt of all required regulatory permits for our Four-Year Plan, development timing and cost estimates); the potential for another liquids-rich hydrocarbon window on Crew’s acreage at Greater Septimus; the potential of our Groundbirch area to be a core area of future development and the anticipated commerciality of up to four potential prospective zones to be drilled; the successful implementation of our ESG initiatives, and significant emissions intensity improvements going forward; the amount and timing of capital projects; and anticipated improvement in our long-term sustainability and the expected positive attributes discussed herein attributable to our Four-Year Plan.

The internal projections, expectations, or beliefs underlying our Board approved 2022 and 2023 capital budgets and associated guidance, as well as management's preliminary strategy, and associated plans, goals and targets in respect of the balance of its Four-Year Plan, are subject to change in light of, without limitation, the impact of the COVID-19 pandemic, the Russia/Ukraine conflict and any related actions taken by businesses and governments, ongoing results, prevailing economic circumstances, volatile commodity prices, resulting changes in our underlying assumptions, goals and targets provided herein and changes in industry conditions and regulations. Crew's financial outlook and guidance provides shareholders with relevant information on management's expectations for results of operations, excluding any potential acquisitions or dispositions, for such time periods based upon the key assumptions outlined herein. In this press release reference is made to the Company's longer range 2024 and beyond internal plan and associated economic model. Such information reflects internal goals and targets used by management for the purposes of making capital investment decisions and for internal long-range planning and future budget preparation. Readers are cautioned that events or circumstances and updates to underlying assumptions could cause capital plans and associated results to differ materially from those predicted and Crew's guidance for 2023, and more particularly its internal plan, goals and targets for 2024 and beyond which are not based upon Board approved budget(s) at this time, may not be appropriate for other purposes. Accordingly, undue reliance should not be placed on same.

In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Crew which have been used to develop such statements and information but which may prove to be incorrect. Although Crew believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Crew can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Crew will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities consistent with past operations; the quality of the reservoirs in which Crew operates and continued performance from existing wells; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Crew’s reserve volumes; certain commodity price and other cost assumptions; continued availability of debt and equity financing and cash flow to fund Crew’s current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Crew operates; that future business, regulatory and industry conditions will be within the parameters expected by Crew; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Crew to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Crew has an interest in to operate the field in a safe, efficient and effective manner; the ability of Crew to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Crew to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes, environmental and indigenous matters in the jurisdictions in which Crew operates; that regulatory authorities in British Columbia will resume granting approvals for oil and gas activities on time frames, and on terms and conditions, consistent with past practices; and the ability of Crew to successfully market its oil and natural gas products.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: the continuing and uncertain impact of COVID-19 and the Russia / Ukraine conflict; changes in commodity prices; changes in the demand for or supply of Crew's products, the early stage of development of some of the evaluated areas and zones and the potential for variation in the quality of the Montney formation; interruptions, unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates; climate change regulations, or other regulatory matters; changes in development plans of Crew or by third party operators of Crew's properties, increased debt levels or debt service requirements; inaccurate estimation of Crew's oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Crew's public disclosure documents (including, without limitation, those risks identified in this news release and Crew's MD&A and Annual Information Form).

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Crew's prospective capital expenditures, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. The actual results of operations of Crew and the resulting financial results will likely vary from the amounts set forth in this press release and such variation may be material. Crew and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, Crew undertakes no obligation to update such FOFI. FOFI contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about Crew's anticipated future business operations. 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.

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Crew does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Risk Factors to the Four-Year Plan

Risk factors that could materially impact successful execution and actual results of the Four-year Plan include:

  • volatility of petroleum and natural gas prices and inherent difficulty in the accuracy of predictions related thereto;
  • changes in Federal and Provincial regulations;
  • execution of construction timelines from BC Hydro to support the electrification of the Groundbirch Plant;
  • receipt of high-value regulatory permits required to launch development under the Four-year plan, including the ongoing negotiation between the BC Government and the Blueberry River First Nation;
  • the Company’s ability to secure financing for the Groundbirch Plant sourced from AFF, bank or other Debt instruments, asset sales, equity issuance, infrastructure financing or some combination thereof; and
  • Those additional risk factors set forth in the Company’s MD&A and most recent Annual Information Form filed on SEDAR.

Information Regarding Disclosure on Oil and Gas Reserves and Operational Information

All amounts in this news release are stated in Canadian dollars unless otherwise specified. This press release contains metrics commonly used in the oil and natural gas industry. Each of these metrics are determined by Crew as specifically set forth in this news release. These terms do not have standardized meanings or standardized methods of calculation and therefore may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons. Such metrics have been included to provide readers with additional information to evaluate the Company’s performance however, such metrics are not reliable indicators of future performance and therefore should not be unduly relied upon for investment or other purposes. See "Non-IFRS and Other Financial Measures" below for additional disclosures.

Drilling Locations

This press release discloses “identified potential drilling locations" in the Company's areas of operations which are comprised of: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the Company’s independent reserve evaluator’s report effective December 31, 2021 (the “Sproule Report”) and account for drilling inventory that have associated proved and/or probable reserves assigned by Sproule. Unbooked locations are internally identified potential drilling opportunities based on the Company's prospective acreage and an assumption as to the number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have reserves or resources attributed to them and are not estimates of drilling locations which have been evaluated by a qualified reserves evaluator performed in accordance with the COGE Handbook. There is no certainty that the Company will drill any of these potential drilling opportunities and if drilled there is no certainty that such locations will result in additional oil and gas reserves, resources or production. The drilling locations on which we actually drill wells will ultimately depend upon the availability of capital, regulatory approvals, seasonal restrictions, oil and natural gas prices, costs, actual drilling results, additional reservoir information that is obtained and other factors.

The following table provides a detailed breakdown of the identified gross potential drilling opportunities presented herein:

 Total Drilling LocationsProved
Unbooked Locations
Montney Total Drilling Locations2,5621231112,328
Groundbirch Locations1,91920331,866
West Septimus Locations3566265229
Septimus Locations13641590
Tower Locations151-8143

The above Proved and Probable Locations reflect locations booked in the December 31, 2021 Sproule Report of Crew’s year-end reserves. During 2022 the Company drilled five of the Proved and ten of the Probable Locations leaving a total of 219 total Proved and Probable Locations booked.

Test Results and Initial Production Rates

A pressure transient analysis or well-test interpretation has not been carried out and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed. Test results and initial production (“IP”) rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery.

BOE Conversions

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of 6:1, utilizing the 6:1 conversion ratio may be misleading as an indication of value.

Non-IFRS and Other Financial Measures

Throughout this press release and other materials disclosed by the Company, Crew uses certain measures to analyze financial performance, financial position and cash flow. These non-IFRS and other specified financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-IFRS and other specified financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with IFRS as indicators of Crew’s performance. Management believes that the presentation of these non-IFRS and other specified financial measures provides useful information to shareholders and investors in understanding and evaluating the Company’s ongoing operating performance, and the measures provide increased transparency and the ability to better analyze Crew’s business performance against prior periods on a comparable basis.

Capital Management Measures

a)    Funds from Operations and Adjusted Funds Flow (“AFF”)

Funds from operations represents cash provided by operating activities before changes in operating non-cash working capital, accretion of deferred financing costs and transaction costs on property dispositions. Adjusted funds flow represents funds from operations before decommissioning obligations settled (recovered). The Company considers these metrics as key measures that demonstrate the ability of the Company’s continuing operations to generate the cash flow necessary to maintain production at current levels and fund future growth through capital investment and to service and repay debt. Management believes that such measures provide an insightful assessment of the Company's operations on a continuing basis by eliminating certain non-cash charges, actual settlements of decommissioning obligations and transaction costs on property dispositions, the timing of which is discretionary. Funds from operations and adjusted funds flow should not be considered as an alternative to or more meaningful than cash provided by operating activities as determined in accordance with IFRS as an indicator of the Company’s performance. Crew’s determination of funds from operations and adjusted funds flow may not be comparable to that reported by other companies. Crew also presents adjusted funds flow per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of income per share. The applicable reconciliation to the most directly comparable measure, cash provided by operating activities, is contained under “free adjusted funds flow” below.

b)    Net Debt and Working Capital Surplus (Deficiency)

Crew closely monitors its capital structure with a goal of maintaining a strong balance sheet to fund the future growth of the Company. The Company monitors net debt as part of its capital structure. The Company uses net debt (bank debt plus working capital deficiency or surplus, excluding the current portion of the fair value of financial instruments) as an alternative measure of outstanding debt. Management considers net debt and working capital deficiency (surplus) an important measure to assist in assessing the liquidity of the Company.

Non-IFRS Financial Measures and Ratios

a)    Net Capital Expenditures

Net capital expenditures equals exploration and development expenditures less net property acquisitions (dispositions). Crew uses net capital expenditures to measure its total capital investment compared to the Company’s annual capital budgeted expenditures. The most directly comparable IFRS measure to net capital expenditures is property, plant and equipment expenditures.

b)    EBITDA

EBITDA is calculated as consolidated net income (loss) before interest and financing expenses, income taxes, depletion, depreciation and amortization, adjusted for certain non-cash, extraordinary and non-recurring items primarily relating to unrealized gains and losses on financial instruments and impairment losses. The Company considers this metric as key measures that demonstrate the ability of the Company’s continuing operations to generate the cash flow necessary to maintain production at current levels and fund future growth through capital investment and to service and repay debt. The most directly comparable IFRS measure to EBITDA is cash provided by operating activities.

c)    Free Adjusted Funds Flow

Free adjusted funds flow represents adjusted funds flow less capital expenditures, excluding acquisitions and dispositions. The Company considers this metric a key measure that demonstrates the ability of the Company’s continuing operations to fund future growth through capital investment and to service and repay debt. The most directly comparable IFRS measure to free adjusted funds flow is cash provided by operating activities.

d)    Net Operating Costs per boe

Net operating costs per boe equals net operating costs divided by production. Management views net operating costs per boe as an important measure to evaluate its operational performance. The calculation of Crew’s net operating costs per boe can be seen in the non-IFRS measure entitled “Net Operating Costs” above.

e)    Cash costs per boe

Cash costs per boe is comprised of net operating, transportation, general and administrative and financing costs on debt calculated on a boe basis. Management views cash costs per boe as an important measure to evaluate its operational performance.

Supplementary Financial Measures

"Net debt to last twelve months (“LTM”) EBITDA" is calculated as net debt at a point in time divided by EBITDA earned from that point back for the trailing twelve months.

Supplemental Information Regarding Product Types

References to gas or natural gas and NGLs in this press release refer to conventional natural gas and natural gas liquids product types, respectively, as defined in National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101"), except where specifically noted otherwise.

The following is intended to provide the product type composition for each of the production figures provided herein, where not already disclosed within tables above:

 Crude OilCondensateNatural Gas
Natural Gas
2022 Annual Average 0%14%9%77%32,500-33,000
2023 Annual Average 3%12%7%78%30,000-32,000
2024 Annual Average2%16%6%76%35,000-37,000
2025 Annual Average1%13%6%80%41,000-43,000
Exit 20251%9%7%83%55,000
2026 Annual Average1%7%7%85%60,000-62,000

   1) Excludes condensate volumes which have been reported separately.

Crew is a growth-oriented natural gas and liquids producer, committed to pursuing sustainable per share growth through a balanced mix of financially and socially responsible exploration and development. The Company’s operations are exclusively located in northeast British Columbia and feature a vast Montney resource with a large contiguous land base in the Greater Septimus and Groundbirch areas in British Columbia, offering significant development potential over the long-term. Crew has access to diversified markets with operated infrastructure and access to multiple pipeline egress options. The Company’s common shares are listed for trading on the Toronto Stock Exchange (“TSX”) under the symbol “CR” and on the OTCQB in the US under ticker “CWEGF”.


Dale Shwed, President and CEOPhone: (403) 266-2088

John Leach, Executive Vice President and CFO

1 Crew’s plans, goals and targets for 2024 and beyond remain preliminary in nature and do not reflect a Board approved capital expenditures budget. Accordingly, undue reliance should not be placed on the same.
2 See table in the Advisories for production breakdown by product type as detailed in NI 51-101, with 2025 and 2026 volumes dependent on modeled construction timelines from BC Hydro to support the electrification of the Groundbirch Plant.
3 Capital management measure that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with the calculations of similar measures for other entities. See “Advisories - Non-IFRS and Other Financial Measures” contained within this press release.
4 Supplementary financial measure that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with the calculations of similar measures for other entities. See “Advisories - Non-IFRS and Other Financial Measures” contained within this press release.
5 Non-IFRS financial measure or ratio that does not have any standardized meaning as prescribed by International Financial Reporting Standards, and therefore, may not be comparable with calculations of similar measures or ratios for other entities. See “Advisories - Non-IFRS and Other Financial Measures” contained within this press release and in our most recently filed MD&A, available on SEDAR at
6 See “Drilling Locations” in the Advisories.
7 See “Advisories – Risk Factors to the Four-Year Plan”.