Orchestra BioMed Reports Full Year 2023 Financial Results and Provides Fourth Quarter Business Update

Initiated enrollment of the BACKBEAT global pivotal study evaluating AVIM therapy (also known as BackBeat Cardiac Neuromodulation Therapy) in hypertensive pacemaker patients in collaboration with Medtronic, plc (NYSE: MDT) in December 2023
Orchestra BioMed and Terumo remain actively engaged to update operational plans and financial arrangements for Virtue ^® Sirolimus AngioInfusion ^TM Balloon ("SAB") development and commercialization for treatment of coronary and peripheral artery disease
Expected runway of cash and cash equivalents and marketable securities, including certain potential future proceeds sufficient into 2H 2026, beyond anticipated BACKBEAT top-line results readout

Orchestra BioMed Holdings, Inc. (Nasdaq: OBIO, "Orchestra BioMed" or the "Company"), a biomedical company accelerating high-impact technologies to patients through risk-reward sharing partnerships, today reported its full year 2023 financial results and provided a fourth quarter business update.

"2023 was a year of strong momentum for Orchestra BioMed as we made significant progress on our cardiovascular pipeline with the achievement of key regulatory milestones and completion of our successful Nasdaq listing," commented David Hochman, chairman, chief executive officer and founder of Orchestra BioMed. "In December, we initiated the BACKBEAT global pivotal study evaluating our lead program, AVIM therapy, in hypertensive pacemaker patients working alongside our strategic partner Medtronic, the global market leader in cardiac pacing therapies. We see a substantial market opportunity for AVIM therapy in this patient population, as well as in other high-risk hypertension populations."

Mr. Hochman continued, "We remain actively engaged with our other strategic partner, Terumo, to update our operational and financial plans to advance Virtue SAB for the treatment of patients with coronary in-stent restenosis, a breakthrough indication for which we have conditional Investigational Device Exemption approval from the FDA, as well as other breakthrough coronary and peripheral indications. Globally, the treatment of coronary in-stent restenosis and other challenging artery disease indications is rapidly shifting toward drug-coated balloons. We continue to believe Virtue SAB, the only non-coated balloon angioplasty system that provides protected focal delivery of extended-release sirolimus, has the potential to offer a best-in-class solution with important advantages for patients and physicians in an established target global market we estimate at over $4 billion annually. Overall, we look forward to continuing 2023's momentum in the year ahead with a focus on strong execution, the best validation of our partnership-enabled business model."

Fourth Quarter 2023 and Recent Highlights
Advancing AVIM Therapy in High Unmet Need Hypertension Populations

Initiated enrollment of the BACKBEAT pivotal study evaluating the efficacy and safety of atrioventricular interval modulation ("AVIM") therapy in hypertensive pacemaker patients in December 2023, with a target for completion of enrollment in mid-2025.
Japanese Pharmaceuticals and Medical Devices Agency ("PMDA") indicated that the existing BACKBEAT global pivotal study, if sufficient to support FDA approval of BackBeat CNT would likely be sufficient to support a regulatory approval of AVIM therapy in Japan.
Continued to explore future opportunities to utilize AVIM therapy and other forms of Cardiac Neuromodulation Therapy ("CNT") for high-risk populations with hypertension and heart failure.

Maximizing the Opportunity for Highly Differentiated Virtue SAB

Initiation of Virtue ISR-US pivotal study of Virtue SAB for the treatment of coronary in-stent restenosis ("ISR"), as well as submissions to Japanese PMDA in coronary ISR and small vessel disease are pending ongoing operational and financial plan calibration with Terumo, strategic partner for development and commercialization of Virtue SAB for coronary and peripheral artery disease treatment.

Financial Results for the Year Ended December 31, 2023

Cash and cash equivalents and marketable securities totaled $87.6 million as of December 31, 2023. Expected runway extended into the second half of 2026 based on internally prepared forecast reflecting updated operating priorities and certain potential future proceeds.
Net cash used in operating activities and for the purchase of fixed assets was $46.2 million during 2023, compared with $29.9 million for 2022, with the primary drivers of increased spending being costs associated with preparation for the initiation of the BACKBEAT pivotal study as well as expenses associated with being a public company.
Revenue for 2023 was $2.8 million, compared with $3.5 million for 2022. The decrease was primarily due to decreased recognition of partnership revenues earned under the agreement with Terumo.
Research and development expenses for 2023 were $33.8 million, compared with $21.9 million for 2022. The increase was primarily due to additional costs associated with preparation for the initiation of the BACKBEAT pivotal study.
Selling, general and administrative expenses for 2023 were $20.3 million, compared with $14.0 million for 2022. The increase was primarily due to additional personnel costs, legal, insurance and finance costs, and additional costs related to being a public company.
Net loss for 2023 was $49.1 million, or ($1.48) per share, compared with a net loss of $33.6 million, or ($2.24) per share, for 2022. Net loss for the year-ended 2023 included non-cash stock-based compensation expense of $7.6 million, compared with $3.4 million for the same period in 2022.

About Orchestra BioMed

Orchestra BioMed (Nasdaq: OBIO) is a biomedical innovation company accelerating high-impact technologies to patients through risk-reward sharing partnerships with leading medical device companies. Orchestra BioMed's partnership-enabled business model focuses on forging strategic collaborations with leading medical device companies to drive successful global commercialization of products it develops. Orchestra BioMed's lead product candidate is atrioventricular interval modulation (AVIM) therapy (also known as BackBeat Cardiac Neuromodulation Therapy (CNT™)) for the treatment of hypertension, a significant risk factor for death worldwide. Orchestra BioMed is also developing the Virtue ^® Sirolimus AngioInfusion™ Balloon (SAB) for the treatment of atherosclerotic artery disease, the leading cause of mortality worldwide. Orchestra BioMed has a strategic collaboration with Medtronic, one of the largest medical device companies in the world, for development and commercialization of AVIM therapy for the treatment of hypertension in pacemaker-indicated patients, and a strategic partnership with Terumo, a global leader in medical technology, for development and commercialization of Virtue SAB for the treatment of artery disease. Orchestra BioMed has additional product candidates and plans to potentially expand its product pipeline through acquisitions, strategic collaborations, licensing and organic development. For further information about Orchestra BioMed, please visit www.orchestrabiomed.com , and follow us on LinkedIn .

References to Websites and Social Media Platforms

References to information included on, or accessible through, websites and social media platforms do not constitute incorporation by reference of the information contained at or available through such websites or social media platforms, and you should not consider such information to be part of this press release.

About AVIM Therapy (BackBeat CNT ^TM )

AVIM therapy, also known as BackBeat CNT™, is an investigational therapy compatible with standard dual-chamber pacemakers designed to substantially and persistently lower blood pressure. It has been evaluated in pilot studies in patients with hypertension who are also indicated for a pacemaker. MODERATO II, a double-blind, randomized, pilot study, showed that patients treated with AVIM therapy experienced net reductions of 8.1 mmHg in 24-hour ambulatory systolic blood pressure (aSBP) and 12.3 mmHg in office systolic blood pressure (oSBP) at six months when compared to control patients. The global IDE BACKBEAT (BradycArdia paCemaKer with atrioventricular interval modulation for Blood prEssure treAtmenT) pivotal study will further evaluate the safety and efficacy of AVIM therapy in lowering blood pressure in a similar target population of patients who have been indicated for, and recently implanted with, a dual-chamber cardiac pacemaker.

About Virtue SAB

Virtue SAB is a patented drug/device combination product candidate in development for the treatment of certain forms of artery disease that is designed to deliver a proprietary, investigational, extended-release formulation of sirolimus, SirolimusEFR™, to the vessel wall during balloon angioplasty without any coating on the balloon surface or the need to leave a stent or other permanent implant in the artery. Virtue SAB demonstrated positive three-year clinical data in coronary ISR in the SABRE study, a multi-center prospective, independent core lab-adjudicated clinical study of 50 patients conducted in Europe. Virtue SAB has been granted Breakthrough Device designation by the FDA for specific indications relating to coronary ISR, coronary small vessel disease and peripheral artery disease below-the-knee. The FDA granted IDE approval to initiate the Virtue ISR-US study to evaluate this novel treatment in coronary ISR patients. Orchestra BioMed has a strategic partnership with Terumo (Terumo, TSE: 4543), a global leader in medical technology headquartered in Tokyo, Japan, as well as Terumo Medical Corporation, its U.S. subsidiary, to collaborate on the global development and commercialization of Virtue SAB in coronary and peripheral vascular indications.

Forward-Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook" and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements relating to the initiation, enrollment, timing, implementation and design of the Company's planned and ongoing pivotal trials and reporting of top-line results, the sufficiency of regulatory approval of BackBeat CNT by the FDA to support regulatory approval in Japan, realizing the clinical and commercial value of BackBeat CNT and Virtue SAB, the expected runway of the Company's current cash, cash equivalents, marketable securities and expected proceeds from a revised Terumo agreement, the potential safety and efficacy of the Company's product candidates, the ability of the Company's partnerships to accelerate clinical development, the Company's late-stage development programs, strategic partnerships and plans to expand its product pipeline, and the Company's ability to negotiate mutually agreeable adjustments to its current agreement with Terumo. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; risks related to regulatory approval of the Company's commercial product candidates and ongoing regulation of the Company's product candidates, if approved; the timing of, and the Company's ability to achieve expected regulatory and business milestones; the impact of competitive products and product candidates; and the risk factors discussed under the heading "Item 1A. Risk Factors" in the Company's annual report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 27, 2024.

The Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time. Given these risks and uncertainties, the Company cautions against placing undue reliance on these forward-looking statements, which only speak as of the date of this press release. The Company does not plan and undertakes no obligation to update any of the forward-looking statements made herein, except as required by law.

ORCHESTRA BIOMED HOLDINGS, INC. Consolidated Balance Sheets (in thousands, except share and per share data)
	December 31,			December 31,
	2023			2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	30,559		$	19,784
Marketable securities		56,968			63,915
Strategic investments, current portion		68			86
Accounts receivable, net		99			96
Inventory		146			276
Prepaid expenses and other current assets		1,274			533
Total current assets		89,114			84,690
Property and equipment, net		1,279			1,489
Right-of-use assets		1,555			2,187
Strategic investments, less current portion		2,495			2,495
Deposits and other assets		769			4,711
TOTAL ASSETS	$	95,212		$	95,572

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	2,900		$	3,968
Accrued expenses and other liabilities		5,149			5,376
Operating lease liability, current portion		649			697
Warrant liability		—			2,089
Deferred revenue, current portion		2,510			6,436
Total current liabilities		11,208			18,566
Deferred revenue, less current portion		14,923			13,103
Loan payable		—			9,490
Operating lease liability, less current portion		1,038			1,683
Other long-term liabilities		—			196
TOTAL LIABILITIES		27,169			43,038

STOCKHOLDERS' EQUITY
Preferred stock, $0.0001 par value per share; 10,000,000 shares authorized; none issued or outstanding at December 31, 2023 and December 31, 2022.		—			—
Common stock, $0.0001 par value per share; 340,000,000 shares authorized; 35,777,412 and 20,187,850 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively.		4			2
Additional paid-in capital		316,903			252,274
Accumulated other comprehensive loss		(10	)		(8	)
Accumulated deficit		(248,854	)		(199,734	)
TOTAL STOCKHOLDERS' EQUITY		68,043			52,534
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	95,212		$	95,572

ORCHESTRA BIOMED HOLDINGS, INC. Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share data)
	Year Ended December 31,
	2023			2022
Revenue:
Partnership revenue	$	2,106		$	2,862
Product revenue		654			671
Total revenue		2,760			3,533
Expenses:
Cost of product revenues		186			211
Research and development		33,822			21,945
Selling, general and administrative		20,258			14,034
Total expenses		54,266			36,190
Loss from operations		(51,506	)		(32,657	)
Other income (expense):
Interest income, net		3,849			50
Loss on fair value adjustment of warrant liability		(294	)		(1,350	)
Loss on debt extinguishment		(1,151	)		(682	)
(Loss) gain on fair value of strategic investments		(18	)		1,031
Total other income (expense)		2,386			(951	)
Net loss	$	(49,120	)	$	(33,608	)
Net loss per share
Basic and diluted	$	(1.48	)	$	(2.24	)
Weighted-average shares used in computing net loss per share, basic and diluted		33,225,227			14,988,584
Comprehensive loss
Net loss	$	(49,120	)	$	(33,608	)
Unrealized loss on marketable securities		(2	)		(8	)
Comprehensive loss	$	(49,122	)	$	(33,616	)

Investor Contact:
Bob Yedid
LifeSci Advisors
(516) 428-8577
Bob@lifesciadvisors.com

Media Contact:
Kelsey Kirk-Ellis
Orchestra BioMed
(484) 682-4892
Kkirkellis@orchestrabiomed.com

News Provided by GlobeNewswire via QuoteMedia

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	Three Months Ended
(millions, except per share or as otherwise noted)	March 31 2024			December 31 2023			March 31 2023
FINANCIAL
Revenues	$	120.7		$	136.6		$	126.1

Funds from Operations		83.0			111.1			86.3
Per Share - basic and diluted ⁽¹⁾		0.35			0.46			0.36

Net Earnings		47.5			67.4			56.8
Per Share - basic and diluted ⁽¹⁾		0.20			0.28			0.24

Dividends declared ⁽²⁾		59.7			57.3			57.3
Per Share		0.25			0.24			0.24
Dividend payout ratio ⁽³⁾		72 %			52%			66%

Acquisitions - including non-cash consideration ⁽⁴⁾		8.8			22.2			5.4
Net debt at period end ⁽⁵⁾		208.3			222.1			292.4

Shares Outstanding
Shares outstanding at period end		239.0			239.0			238.9
Weighted average - basic		239.0			239.0			238.9
Weighted average - diluted		239.0			239.0			238.9

OPERATIONAL Royalty Production Volumes
Crude Oil (bbls/d)		13,142			12,844			12,212
NGL (bbls/d)		2,535			2,697			2,664
Natural Gas (MMcf/d)		62.1			60.4			59.6
Royalty Production (BOE/d) ⁽⁶⁾		26,027			25,608			24,809

Realized Pricing
Crude Oil ($/bbl)		77.18			83.27			76.25
NGL ($/bbl)		44.18			46.07			46.71
Natural Gas ($/Mcf)		1.89			2.19			4.05
Total ($/BOE) ⁽⁶⁾		47.79			51.78			52.31

Operating Netback per BOE ⁽⁷⁾		39.60			48.68			43.80

Funds from Operations per BOE		35.04			47.16			38.65

Oil Price Benchmarks
Western Texas Intermediate (WTI) (US$/bbl)		76.95			78.32			76.13
Edmonton Light Sweet ($/bbl)		92.18			99.72			99.04
Western Canadian Select (WCS) crude oil differential to WTI (US$/bbl)		(19.33	)		(21.89	)		(24.78	)

Natural Gas Price Benchmarks
AECO monthly index ($/Mcf)		2.05			2.66			4.34
AECO daily index ($/Mcf)		2.50			2.30			3.22

Foreign Exchange Rate (US$/CAD$)		0.7411			0.7343			0.7397

⁽¹⁾	^{Funds from operations and net earnings per share are calculated using the weighted average number of basic and diluted common shares outstanding.}
⁽²⁾	^{A dividend of $0.25 per share was declared on March 11, 2024. The dividend was paid on April 15, 2024 to shareholders of record as at March 28, 2024.}
⁽³⁾	^{Dividend payout ratio is defined under the "Non-GAAP Measures and Ratios" section of this press release.}
⁽⁴⁾	^{Excluding right-of-use asset additions.}
⁽⁵⁾	^{See Note 14 "Capital Management" in the interim condensed consolidated financial statements for the three months ended March 31, 2024 and 2023 and Note 15 "Capital Management" in the audited annual consolidated financial statements for the years ended December 31, 2023 and 2022.}
⁽⁶⁾	^{See "Conversions of Natural Gas to BOE".}
⁽⁷⁾	^{Operating netback per BOE is defined under the "Non-GAAP Measures and Ratios" section of this press release.}

	Three Months Ended
($ millions)	March 31 2024			December 31 2023			March 31 2023
Cash from Operating Activities	$	79.7		$	128.0		$	17.2
Other Revenue		(7.5	)		(14.6	)		(9.3	)
Amortization of Debt Issuance Costs		(0.1	)		(0.1	)		(0.2	)
Finance Expense		3.7			3.9			4.5
Current Tax Expense		14.7			14.4			16.5
Net Change in Non-cash Working Capital		3.3			(16.9	)		69.1
Operating Netback	$	93.8		$	114.7		$	97.8

	Three Months Ended
($ millions)	March 31 2024		December 31 2023		March 31 2023
Funds from Operations	$	83.0	$	111.1	$	86.3
Dividends Declared		59.7		57.3		57.3
Dividend Payout Ratio		72 %		52%		66%

			Three months ended December 31,		Year ended December 31,
(CAD $000s, except per share amounts)		2023		2022			2023		2022
FINANCIAL HIGHLIGHTS
Petroleum and natural gas sales		185,384		111,558			693,891		367,957
Cash flow from operating activities		75,380		58,100			283,988		102,314
Operating netback, net of derivatives(1)		104,328		64,661			382,890		153,450
Adjusted EBITDA(1)		100,092		62,191			363,143		146,740
Adjusted funds flow(1)		80,247		50,729			278,138		118,658
per share	- Basic		0.58		0.85			2.20		2.67
	- Diluted		0.56		0.84			2.15		2.64
Free funds flow(1)		23,072		15,053			147,565		29,553
per share	- Basic		0.17		0.25			1.17		0.67
	- Diluted		0.16		0.25			1.14		0.66
Net income (loss)		131,456		(16,728	)		290,623		74,815
per share	- Basic		0.94		(0.28	)		2.30		1.68
	- Diluted		0.92		(0.28	)		2.25		1.66
Net Debt(1), end of period		460,483		219,803			460,483		219,803

Gross Wells Drilled by Formation (number):	Avg. IP30 per Location (boe/d)	2023 Guidance Type Curve (boe/d)	Performance vs. Type Curve (%)	Total Gross Capital Invested ($MM)	Capital Efficiency ($ per boe/d)
SE Sask - Frob. & Midale (10)	80.4	69.0	+17	13.2	16,420
SE Sask - Spearfish (6)	89.2	77.0	+16	7.1	13,270
SE Sask - Stimulated Bakken (7)	109.7	101.0	+9	12.3	16,020
SE Sask - OHML Bakken (2)	168.5	147.0	+15	4.6	13,650
WC Sask - Viking (12)	97.9	68.0	+44	19.4	16,510
Central AB - Lochend Cardium (3)	279.0	260.0	+7	17.7	21,150
Central AB - Pembina (2)	239.5	248.0	-3	9.4	19,620
North AB - Montney (4)	314.4	330.0	-5	14.3	11,390
Weighted Average	134.6	121.0	+11	98.0	15,830

	Three months ended December 31,		Year ended December 31,
($000s)	2023		2022		2023		2022
Adjusted funds flow	80,247		50,729		278,138		118,658
Capital expenditures	(57,175	)	(35,676	)	(130,573	)	(89,105	)
Free funds flow	23,072		15,053		147,565		29,553

	Three months ended December 31, 2023	Three months ended December 31, 2022
	Crude oil (bbls/d)	NGLs (bbls/d)	Natural gas (mcf/d)	Total (boe/d)	Crude oil (bbls/d)	NGLs (bbls/d)	Natural gas (mcf/d)	Total (boe/d)
Southeast Saskatchewan	10,832	939	4,673	12,550	6,714	398	2,457	7,522
West Central Saskatchewan	3,389	29	514	3,504	4,876	30	514	4,992
Central Alberta	3,543	1,172	20,105	8,066	-	-	-	-
North Alberta	1,643	393	4,412	2,771	-	-	-	-
Total boe/d	19,407	2,533	29,704	26,891	11,590	428	2,971	12,514

	Year ended December 31, 2023	Year ended December 31, 2022
	Crude oil (bbls/d)	NGLs (bbls/d)	Natural gas (mcf/d)	Total (boe/d)	Crude oil (bbls/d)	NGLs (bbls/d)	Natural gas (mcf/d)	Total (boe/d)
Southeast Saskatchewan	9,596	770	3,968	11,027	6,401	340	2,118	7,094
West Central Saskatchewan	4,262	20	468	4,360	2,440	13	274	2,499
Central Alberta	3,005	915	16,602	6,687	-	-	-	-
North Alberta	1,314	287	3,521	2,188	-	-	-	-
Total boe/d	18,177	1,992	24,559	24,262	8,841	353	2,392	9,593

Rating Agency	PrairieSky Score/Ranking	Description of Score/Ranking
Sustainalytics ESG Risk (All Industries)	7.4 Negligible Risk	Ranked in the top 0.5% of all companies in Sustainalytics global coverage universe ⁽²⁾ and maintained "Negligible Risk" ESG Risk Rating. Received "2024 ESG Global 50 Top-Rated Badge" awarded to the top 50 ranked companies in Sustainalytics ESG Risk Ratings universe which covers more than 14,000 companies across 42 industries.
Sustainalytics ESG Risk (Oil and Gas Producers)	1 out of 315	Maintained top overall global ⁽²⁾ ranking and awarded Sustainalytics "Industry Top-Rated Badge".
MSCI ESG Risk Rating	AAA	Maintained AAA "Leader" status, denoting companies leading the industry in managing the most significant ESG risks and opportunities. Measurement of resilience to long-term, industry material ESG risks on a relative ranking from AAA to CCC.
CDP Climate Change 2023	B	Received a score of B, as compared to the North American and global average of C, indicating the Company has addressed the environmental impacts of their business and ensures good environmental management.
S&P's Global Corporate Sustainability Assessment (CSA)	62	Scored 62 out of 100, achieving a top 15% ranking and included as a member of S&P's Global Sustainability Yearbook 2024 for corporate sustainability excellence.
Globe and Mail Governance Overall Survey Score	84/100	Ranked 57 out of 219 companies in the S&P/TSX Composite Index with an overall score of 84 out of 100. Survey assesses quality of governance practices.

				Three months ended						Year ended
(millions, except per share or as otherwise noted)	December 31 2023			September 30 2023			December 31 2022			December 31 2023			December 31 2022
FINANCIAL
Revenues	$	136.6		$	133.1		$	150.6		$	513.2		$	643.3

Funds from Operations		111.1			93.8			119.5			382.5			507.6
Per Share - basic ⁽¹⁾		0.46			0.39			0.50			1.60			2.13
Per Share - diluted ⁽¹⁾		0.46			0.39			0.50			1.60			2.12
Net Earnings		67.4			55.4			67.3			227.6			317.5
Per Share - basic and diluted ⁽¹⁾		0.28			0.23			0.28			0.95			1.33
Dividends declared ⁽²⁾		57.3			57.3			57.3			229.2			143.3
Per Share		0.24			0.24			0.24			0.96			0.60
Dividend payout ratio ⁽³⁾		52	%		61	%		48	%		60	%		28	%

Acquisitions		22.2			15.6			6.2			58.4			30.6
Net debt at period end ⁽⁴⁾		222.1			253.7			315.1			222.1			315.1

Shares Outstanding
Shares outstanding at period end		239.0			239.0			238.9			239.0			238.9
Weighted average - basic		239.0			238.9			238.8			239.0			238.8
Weighted average - diluted		239.0			238.9			239.2			239.0			239.1

OPERATIONAL Royalty Production Volumes
Crude Oil (bbls/d)		12,844			12,084			12,166			12,438			11,739
NGL (bbls/d)		2,697			2,702			2,681			2,502			2,684
Natural Gas (MMcf/d)		60.4			64.1			66.4			59.5			64.7
Royalty Production (BOE/d) ⁽⁵⁾		25,608			25,469			25,914			24,857			25,206

Realized Pricing
Crude Oil ($/bbl)		83.27			92.53			88.36			82.52			102.88
NGL ($/bbl)		46.07			52.01			54.56			47.60			59.73
Natural Gas ($/Mcf)		2.19			1.97			5.30			2.60			4.93
Total ($/BOE) ⁽⁵⁾		51.78			54.37			60.74			52.31			66.92

Operating Netback per BOE ⁽⁶⁾		48.68			46.09			57.89			46.32			63.43
Funds from Operations per BOE		47.16			40.03			50.12			42.16			55.17

Oil Price Benchmarks
Western Texas Intermediate (WTI) (US$/bbl)		78.32			82.32			82.64			77.62			94.23
Edmonton Light Sweet ($/bbl)		99.72			107.87			110.04			100.46			120.07
Western Canadian Select (WCS) crude oil differential to WTI (US$/bbl)		(21.89	)		(12.89	)		(25.66	)		(18.65	)		(18.22	)

Natural Gas Price Benchmarks
AECO monthly index ($/Mcf)		2.66			2.39			5.58			2.93			5.56
AECO daily index ($/Mcf)		2.30			2.60			5.11			2.64			5.31

Foreign Exchange Rate (US$/CAD$)		0.7343			0.7466			0.7365			0.7410			0.7683

Andrew Phillips	Pamela Kazeil
President & Chief Executive Officer	Vice-President, Finance & Chief Financial Officer
PrairieSky Royalty Ltd.	PrairieSky Royalty Ltd.
(587) 293-4005	(587) 293-4089

Investor Relations
(587) 293-4000
www.prairiesky.com

	Three months ended									Nine months ended
(millions, except per share or as otherwise noted)	September 30 2023			June 30 2023			September 30 2022			September 30 2023			September 30 2022
FINANCIAL
Revenues	$	133.1		$	117.4		$	154.7		$	376.6		$	492.7

Funds from Operations		93.8			91.3			123.5			271.4			388.1
Per Share - basic and diluted ⁽¹⁾		0.39			0.38			0.52			1.14			1.63

Net Earnings		55.4			48.0			76.2			160.2			250.2
Per Share - basic and diluted ⁽¹⁾		0.23			0.20			0.32			0.67			1.05

Dividends declared ⁽²⁾		57.3			57.3			28.7			171.9			86. 0
Per Share		0.24			0.24			0.12			0.72			0.36

Acquisitions		15.6			15.2			2.5			36.2			24.4
Net debt at period end ⁽³⁾		253.7			275.9			364.2			253.7			364.2

Shares Outstanding
Shares outstanding at period end		239.0			238.9			238.8			239.0			238.8
Weighted average - basic		238.9			238.9			238.8			238.9			238.8
Weighted average - diluted		238.9			238.9			239.1			238.9			239.1

OPERATIONAL Royalty Production Volumes
Crude Oil (bbls/d)		12,084			12,607			11,376			12,300			11,595
NGL (bbls/d)		2,702			1,943			2,660			2,437			2,685
Natural Gas (MMcf/d)		64.1			53.8			65.7			59.2			64.1
Royalty Production (BOE/d) ⁽⁴⁾		25,469			23,517			24,986			24,604			24,963

Realized Pricing
Crude Oil ($/bbl)		92.53			78.05			102.80			82.25			108.02
NGL ($/bbl)		52.01			44.77			58.02			48.18			61.47
Natural Gas ($/Mcf)		1.97			2.23			4.00			2.74			4.80
Total ($/BOE) ⁽⁴⁾		54.37			50.65			63.51			52.49			69.10

Operating Netback per BOE ⁽⁵⁾		46.09			46.64			60.64			45.49			65.39

Funds from Operations per BOE		40.03			42.66			53.73			40.41			56.95

Oil Price Benchmarks
Western Texas Intermediate (WTI) (US$/bbl)		82.32			73.99			91.68			77.41			98.13
Edmonton Light Sweet ($/bbl)		107.87			95.32			116.88			100.68			123.44
Western Canadian Select (WCS) crude oil differential to WTI (US$/bbl)		(12.89	)		(15.07	)		(19.86	)		(17.57	)		(15.73	)

Natural Gas Price Benchmarks
AECO monthly index ($/Mcf)		2.39			2.35			5.81			3.03			5.56
AECO daily index ($/Mcf)		2.60			2.45			4.08			2.76			5.35

Foreign Exchange Rate (US$/CAD$)		0.7466			0.7454			0.7662			0.7436			0.7775
(1) Net Earnings and Funds from Operations per Share are calculated using the weighted average number of basic and diluted common shares outstanding.
(2) A dividend of $0.24 per common share was declared on September 11, 2023. The dividend was paid on October 16, 2023 to shareholders of record as at September 29, 2023.
(3) See Note 14 "Capital Management" in the interim condensed consolidated financial statements for the three and nine months ended September 30, 2023 and 2022 and the three and six months ended June 30, 2023.
(4) See "Conversions of Natural Gas to BOE".
(5) Operating Netback per BOE is defined under the Non-GAAP Measures and Ratios section of this press release.

Condensed Consolidated Statements of Income (unaudited)
	Three months ended
	March 30,			% of		April 1,			% of
(Dollars in millions except per share amounts)	2024			Revenues		2023			Revenues
Revenues	$	10,345				$	10,710
Costs and operating expenses:
Cost of revenues (a)		6,040		58.4	%		6,437		60.1	%
Selling, general and administrative expenses (b)		1,731		16.7	%		1,646		15.4	%
Amortization of acquisition-related intangible assets		551		5.3	%		606		5.7	%
Research and development expenses		331		3.2	%		346		3.2	%
Restructuring and other costs (c)		29		0.3	%		112		1.0	%
Total costs and operating expenses		8,682		83.9	%		9,147		85.4	%
Operating income		1,663		16.1	%		1,563		14.6	%
Interest income		279					146
Interest expense		(363	)				(300	)
Other income/(expense) (d)		10					(46	)
Income before income taxes		1,589					1,363
Provision for income taxes (e)		(281	)				(46	)
Equity in earnings/(losses) of unconsolidated entities		23					(25	)
Net income		1,331					1,292
Less: net income/(losses) attributable to noncontrolling interests and redeemable noncontrolling interest		4					3
Net income attributable to Thermo Fisher Scientific Inc.	$	1,328		12.8	%	$	1,289		12.0	%

Earnings per share attributable to Thermo Fisher Scientific Inc.:
Basic	$	3.47				$	3.34
Diluted	$	3.46				$	3.32
Weighted average shares:
Basic		382					386
Diluted		384					388

Reconciliation of adjusted operating income and adjusted operating margin
GAAP operating income	$	1,663		16.1	%	$	1,563		14.6	%
Cost of revenues adjustments (a)		15		0.1	%		41		0.4	%
Selling, general and administrative expenses adjustments (b)		19		0.2	%		8		0.1	%
Restructuring and other costs (c)		29		0.3	%		112		1.0	%
Amortization of acquisition-related intangible assets		551		5.3	%		606		5.7	%
Adjusted operating income (non-GAAP measure)	$	2,278		22.0	%	$	2,330		21.8	%

Reconciliation of adjusted net income
GAAP net income attributable to Thermo Fisher Scientific Inc.	$	1,328				$	1,289
Cost of revenues adjustments (a)		15					41
Selling, general and administrative expenses adjustments (b)		19					8
Restructuring and other costs (c)		29					112
Amortization of acquisition-related intangible assets		551					606
Other income/expense adjustments (d)		(11	)				46
Provision for income taxes adjustments (e)		50					(171	)
Equity in earnings/losses of unconsolidated entities		(23	)				25
Adjusted net income (non-GAAP measure)	$	1,959				$	1,956

Reconciliation of adjusted earnings per share
GAAP diluted EPS attributable to Thermo Fisher Scientific Inc.	$	3.46				$	3.32
Cost of revenues adjustments (a)		0.04					0.10
Selling, general and administrative expenses adjustments (b)		0.05					0.02
Restructuring and other costs (c)		0.08					0.29
Amortization of acquisition-related intangible assets		1.44					1.56
Other income/expense adjustments (d)		(0.03	)				0.12
Provision for income taxes adjustments (e)		0.13					(0.44	)
Equity in earnings/losses of unconsolidated entities		(0.06	)				0.06
Adjusted EPS (non-GAAP measure)	$	5.11				$	5.03

Reconciliation of free cash flow
GAAP net cash provided by operating activities	$	1,251				$	729
Purchases of property, plant and equipment		(347	)				(458	)
Proceeds from sale of property, plant and equipment		4					6
Free cash flow (non-GAAP measure)	$	908				$	277

Business Segment Information	Three months ended
	March 30,			% of		April 1,			% of
(Dollars in millions)	2024			Revenues		2023			Revenues

Revenues
Life Sciences Solutions	$	2,285		22.1	%	$	2,612		24.4	%
Analytical Instruments		1,687		16.3	%		1,723		16.1	%
Specialty Diagnostics		1,109		10.7	%		1,108		10.3	%
Laboratory Products and Biopharma Services		5,723		55.3	%		5,763		53.8	%
Eliminations		(460	)	-4.4	%		(496	)	-4.6	%
Consolidated revenues	$	10,345		100.0	%	$	10,710		100.0	%

Segment income and segment income margin
Life Sciences Solutions	$	840		36.8	%	$	836		32.0	%
Analytical Instruments		400		23.7	%		421		24.4	%
Specialty Diagnostics		294		26.5	%		280		25.3	%
Laboratory Products and Biopharma Services		744		13.0	%		793		13.8	%
Subtotal reportable segments		2,278		22.0	%		2,330		21.8	%
Cost of revenues adjustments (a)		(15	)	-0.1	%		(41	)	-0.4	%
Selling, general and administrative expenses adjustments (b)		(19	)	-0.2	%		(8	)	-0.1	%
Restructuring and other costs (c)		(29	)	-0.3	%		(112	)	-1.0	%
Amortization of acquisition-related intangible assets		(551	)	-5.3	%		(606	)	-5.7	%
Consolidated GAAP operating income	$	1,663		16.1	%	$	1,563		14.6	%


(a) Adjusted results in 2024 and 2023 exclude charges for inventory write-downs associated with large-scale abandonment of product lines. Adjusted results in 2023 exclude $10 of charges for the sale of inventory revalued at the date of acquisition.
(b) Adjusted results in 2024 and 2023 exclude certain third-party expenses, principally transaction/integration costs related to recent acquisitions, and charges/credits for changes in estimates of contingent acquisition consideration.
(c) Adjusted results in 2024 and 2023 exclude restructuring and other costs consisting principally of severance, impairments of long-lived assets, abandoned facility, and other expenses of headcount reductions and real estate consolidations. Adjusted results in 2023 also exclude $18 of net charges for pre-acquisition litigation and other matters.
(d) Adjusted results in 2024 and 2023 exclude net gains/losses on investments.
(e) Adjusted results in 2024 and 2023 exclude incremental tax impacts for the reconciling items between GAAP and adjusted net income, incremental tax impacts as a result of tax rate/law changes, and the tax impacts from audit settlements.
Note:
Consolidated depreciation expense is $285 and $253 in 2024 and 2023, respectively.

	Three months ended December 31,		Year ended December 31,
($000s)	2023		2022		2023		2022
Petroleum and natural gas sales	185,384		111,558		693,891		367,957
Royalties	(24,124	)	(11,022	)	(80,565	)	(47,640	)
Net operating expenses	(44,945	)	(25,817	)	(180,074	)	(86,379	)
Transportation expenses	(3,094	)	(518	)	(11,314	)	(2,139	)
Operating netback	113,221		74,201		421,938		231,799
Realized loss on financial derivatives	(8,893	)	(9,540	)	(39,048	)	(78,349	)
Operating netback, net of derivatives	104,328		64,661		382,890		153,450

($ per boe amounts)
Petroleum and natural gas sales	74.93		96.90		78.35		105.09
Royalties	(9.75	)	(9.57	)	(9.10	)	(13.61	)
Net operating expenses	(18.17	)	(22.42	)	(20.33	)	(24.67	)
Transportation expenses	(1.25	)	(0.45	)	(1.28	)	(0.61	)
Operating netback	45.76		64.46		47.64		66.20
Realized loss on financial derivatives	(3.59	)	(8.29	)	(4.41	)	(22.38	)
Operating netback, net of derivatives	42.17		56.17		43.23		43.82

	Three Months Ended									Year Ended
($ millions)	December 31 2023			September 30 2023			December 31 2022			December 31 2023			December 31 2022
Total Administrative Expenses	$	6.1		$	15.0		$	16.4		$	45.0		$	48.8
Share-Based Compensation Expense		(0.5	)		(8.6	)		(11.3	)		(20.9	)		(28.3	)
Cash Payments Made - Share Unit Plans		-			11.5			-			23.8			5.0
Cash Administrative Expenses	$	5.6		$	17.9		$	5.1		$	47.9		$	25.5

	Three Months Ended									Nine Months Ended
($ millions)	September 30 2023			June 30 2023			September 30 2022			September 30 2023			September 30 2022
Total Administrative Expenses	$	15.0		$	13.0		$	10.4		$	38.9		$	32.4
Share-Based Compensation Expense		(8.6	)		(7.2	)		(5.5	)		(20.4	)		(17.0	)
Cash Payments Made - Share Unit Plans		11.5			1.4			-			23.8			5.0
Cash Administrative Expenses	$	17.9		$	7.2		$	4.9		$	42.3		$	20.4

Organic and Core organic revenue growth		Three months ended
		March 30, 2024
Revenue growth		-3%
Acquisitions		0%
Currency translation		0%
Organic revenue growth (non-GAAP measure)		-4%
COVID-19 testing revenue		-1%
Core organic revenue growth (non-GAAP measure)		-3%

Note:
For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.

Condensed Consolidated Balance Sheets (unaudited)

	March 30,		December 31,
(In millions)	2024		2023

Assets
Current assets:
Cash and cash equivalents	$	5,499	$	8,077
Short-term investments		1,751		3
Accounts receivable, net		7,931		8,221
Inventories		5,133		5,088
Other current assets		3,326		3,200
Total current assets		23,640		24,589
Property, plant and equipment, net		9,324		9,448
Acquisition-related intangible assets, net		16,048		16,670
Other assets		4,241		3,999
Goodwill		43,843		44,020
Total assets	$	97,095	$	98,726

Liabilities, redeemable noncontrolling interest and equity
Current liabilities:
Short-term obligations and current maturities of long-term obligations	$	4,451	$	3,609
Other current liabilities		9,486		10,403
Total current liabilities		13,937		14,012
Other long-term liabilities		6,378		6,564
Long-term obligations		31,157		31,308
Redeemable noncontrolling interest		119		118
Total equity		45,504		46,724
Total liabilities, redeemable noncontrolling interest and equity	$	97,095	$	98,726

Condensed Consolidated Statements of Cash Flows (unaudited)

	Three months ended
	March 30,			April 1,
(In millions)	2024			2023

Operating activities
Net income	$	1,331		$	1,292
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		837			859
Change in deferred income taxes		(253	)		(146	)
Other non-cash expenses, net		123			257
Changes in assets and liabilities, excluding the effects of acquisitions		(787	)		(1,533	)
Net cash provided by operating activities		1,251			729

Investing activities
Purchases of property, plant and equipment		(347	)		(458	)
Proceeds from sale of property, plant and equipment		4			6
Proceeds from cross-currency interest rate swap interest settlements		64			2
Acquisitions, net of cash acquired		—			(2,704	)
Purchases of investments		(1,758	)		(2	)
Other investing activities, net		7			14
Net cash used in investing activities		(2,030	)		(3,142	)

Financing activities
Net proceeds from issuance of debt		1,205			—
Net proceeds from issuance of commercial paper		—			1,027
Repayment of commercial paper		—			(523	)
Purchases of company common stock		(3,000	)		(3,000	)
Dividends paid		(135	)		(117	)
Other financing activities, net		110			20
Net cash used in financing activities		(1,821	)		(2,593	)

Exchange rate effect on cash		22			(31	)
Decrease in cash, cash equivalents and restricted cash		(2,578	)		(5,037	)
Cash, cash equivalents and restricted cash at beginning of period		8,097			8,537
Cash, cash equivalents and restricted cash at end of period	$	5,519		$	3,500

Free cash flow (non-GAAP measure)	$	908		$	277



Note:
For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release.

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