Deutsche Rohstoff AG Announces Raised Guidance for 2024 Amid Strong Oil Market

On April 10, 2024, Deutsche Rohstoff AG revealed an upward revision of its financial forecast for 2024, propelled by the robust performance of the WTI oil prices, a significant extension of its drilling program, and an enhanced oil price hedge strategy. The company now projects its 2024 revenue to be between EUR 210 to 230 million and its EBITDA to range from EUR 160 to 180 million, reflecting an optimistic outlook on its financial health and operational efficiency.

This optimistic revision is further buoyed by an increased investment in its 2024 drilling program, now estimated between EUR 145 to 165 million, targeting a production output of 14,700 to 15,700 BOEPD. The revised forecast also accounts for anticipated higher oil prices, with a base scenario assuming a WTI oil price of USD 75 per barrel and a gas price of USD 2.0 per MMBtu and an increased price scenario with the oil price at USD 85 per barrel.

In response to the favorable market conditions, Deutsche Rohstoff AG has expanded its hedge book significantly, ensuring over 1.8 million barrels of oil for the remainder of 2024 and 2025 are hedged at around USD 75. Moreover, the company’s strong production in the first quarter and strategic operational shifts, especially in Wyoming, have solidified the ground for this heightened forecast.

Executives from Deutsche Rohstoff AG, CEO Jan-Philipp Weitz and CFO Henning Döring, expressed their enthusiasm about this development, citing the forecast as a milestone reflecting the company's sustained growth and operational successes.