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crew energy inc . CREW ENERGY INC . ANNOUNCES SECOND QUARTER 2021 RESULTS HIGHLIGHTED BY A 451 % INCREASE IN ADJUSTED FUNDS FLOW , UPDATED 2021 GUIDANCE AND RELEASE OF INAUGURAL ESG REPORT - Calgary , Alberta - August 4 , 2021 Crew Energy Inc. ( TSX : CR ) ( " Crew " or the " Company " ) is pleased to announce our operating and financial results for the three and six month periods ended June 30 , 2021 , and the release of our inaugural Environmental , Social and Governance ( " ESG " ) Report . Crew's Financial Statements and Notes , as well as Management's Discussion and Analysis ( " MD & A ” ) for the three and six month periods ended June 30 , 2021 are available on Crew's newly designed website at www.crewenergy.com and filed on SEDAR at www.sedar.com . Two - year sustainability plan on track¹ : Crew is now targeting adjusted funds flow ( “ AFF " ) ³ in 2021 and 2022 between $ 310 and $ 350 million on spending of $ 220 to $ 265 million , supporting the generation of $ 95 to $ 140 million of 2022 annual AFF³ in excess of capital expenditures . These updated targets are based on estimated future commodity prices , and are expected to result in last - twelve month ( " LTM " ) EBITDA³ to debt of 1.3 to 1.5x at the end of 2022 . " In the second quarter of 2021 , we continued steadfast in the advancement of our two - year plan , designed to increase the pace of development of our world - class Montney resource , with a goal to optimize throughput of our 40,000 boe per day infrastructure capacity and improve debt metrics , " said Dale Shwed , President and CEO of Crew . " We are excited to continue with our plan to increase production , reduce unit costs to expand margins and to create sustainable value for all stakeholders , while playing an important role in the production of responsible energy . Today we are proud to unveil Crew's inaugural ESG Report , presented in digital format as a reflection of our commitment to adopt new technologies while adapting to the evolving needs of our stakeholders . Join us on our ESG journey here . " Q2 2021 HIGHLIGHTS • 26,712 boe per day² ( 160.3 mmcfe per day ) average production in Q2 / 21 , a 21 % increase over Q2 / 20 . First half 2021 volumes averaged 26,486 boe per day² ( 158.9 mmcfe per day ) , a 15 % increase over the same period in 2020 . • $ 25.5 million of AFF³ ( $ 0.16 per fully diluted share ) was generated in the quarter , a 451 % increase over Q2 / 20 , with year - over - year growth being bolstered by higher production , lower cash costs and a significantly improved commodity price environment . First half 2021 AFF³ of $ 59.5 million ( $ 0.37 per share ) was nearly 3.5 times higher than the first half of 2020 . • 16 % reduction in net operating costs³ in Q2 / 21 , totaling $ 4.79 per boe in the quarter compared to $ 5.68 per boe in Q2 / 20 , reflecting new production added at West Septimus which yields lower net operating costs , combined with improved operational efficiencies . General and administrative ( " G & A ” ) costs of $ 0.93 per boe for the first half of 2021 were 3 % lower than the same period in the prior year . • $ 21.2 million of net capital expenditures³ in Q2 / 21 , above our previously forecast range of $ 15 to $ 18 million , due to favorable spring break - up conditions that allowed for an early start to our capital program in June . The majority of expenditures were directed towards the continued development at Septimus and West Septimus ( " Greater Septimus ” ) , with $ 10.4 million invested in drilling and completions , $ 8.5 million directed to facilities , equipment and pipelines , and $ 2.3 million on land , seismic and other miscellaneous items . 1 Crew's plans for 2022 and associated targets remain preliminary in nature and do not reflect a Board approved capital expenditures budget . See table in the Advisories for key budget and underlying material assumptions related to Crew's development plan and associated guidance . 2 See table in the Advisories for production breakdown by product type as defined in NI 51-101 . 3 Non - IFRS 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 Measures " contained within this press release .