Yuma Energy, Inc. Announces Second Quarter 2017 Financial Results
HOUSTON, Aug. 14, 2017 /PRNewswire/ -- Yuma Energy, Inc. (NYSE American: YUMA) (the "Company" or "Yuma") today announced its financial results for the quarter ended June 30, 2017.
Second Quarter 2017 Highlights
-- Net average production was 2,553 Boe/d for the second quarter of 2017, a
39.1 percent increase over the second quarter of 2016.
-- Cash provided by operations was $2,889,407 for the six months ended June
30, 2017, compared to cash used in operations of $2,442,876 in the same
period in 2016.
-- The Company sold non-core properties in Brazos County, Texas for $5.5
million (prior to purchase price adjustments) and reduced its debt by
$7.5 million from $39.5 million at the end of the first quarter of 2017
to $32.0 million at the end of the second quarter of 2017.
-- The Company increased its Permian Basin acreage position to 2,491 acres
(2,180 net acres) in Yoakum County, Texas to horizontally develop the
San Andres Oil Play. This acreage is within the Area of Mutual Interest
("AMI") covering approximately 33,280 acres that was established as part
of a joint development agreement entered into earlier this year with two
privately held energy firms. Yuma is the operator of the acreage with an
87.5 percent working interest and intends to spud its first joint
venture well in 2017, as well as continue to acquire additional acreage
within the AMI.
Recent Developments
-- Yuma spud the Weyerhaeuser 14-1 well in Livingston Parish, which is
referred to as the Glacier Prospect, on July 29, 2017. Drilling is
currently at 13,058 feet, with total depth projected to be 15,098 feet,
which the Company intends to reach before the end of August.
Management Comments
Sam L. Banks, CEO of Yuma Energy, Inc., commented, "During the second quarter we were able to increase our acreage position in the Permian Basin at very attractive prices and look forward to continuing to expand our position in the San Andres horizontal play and spudding our first well there in 2017. In addition, we are excited about our recently spudded well in our Glacier Prospect. We believe our business strategy of generating organic opportunities through the drill bit and increasing our exposure to the Permian Basin will lead to significant shareholder value over time. As can be seen in our first and second quarter results, the merger with Davis has improved our cash flows and financial position and significantly increased our production."
Financial Results
Production
The following table presents the net quantities of oil, natural gas and natural gas liquids produced and sold by the Company for the three and six month periods ended June 30, 2017 and 2016, and the average sales price per unit sold.
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2017 2016 2017 2016
---- ---- ---- ----
Production volumes:
Crude oil and condensate (Bbls) 66,242 39,297 142,640 74,015
Natural gas (Mcf) 786,111 646,020 1,685,538 1,046,385
Natural gas liquids (Bbls) 35,092 20,117 68,566 50,379
------ ------ ------ ------
Total (Boe) (1) 232,353 167,084 492,129 298,792
======= ======= ======= =======
Average prices realized:
Crude oil and condensate (per Bbl) $47.14 $44.07 $48.65 $37.45
Natural gas (per Mcf) $3.29 $1.95 $3.05 $1.96
Natural gas liquids (per Bbl) $24.05 $17.87 $23.61 $14.16
(1) Barrels of oil equivalent have been calculated on the basis of six thousand cubic feet (Mcf) of natural gas equal to one barrel of oil equivalent (Boe).
Revenues
The following table presents the Company's revenues for the three and six month periods ended June 30, 2017 and 2016.
Three Months Ended June
30, Six Months Ended June 30,
------------------------ -------------------------
2017 2016 2017 2016
---- ---- ---- ----
Sales
of
natural
gas
and
crude
oil:
Crude
oil
and
condensate $3,122,848 $1,731,952 $6,938,780 $2,771,640
Natural
gas 2,587,968 1,260,500 5,141,410 2,046,110
Natural
gas
liquids 843,888 359,504 1,618,938 713,138
------- ------- --------- -------
Total
revenues $6,554,704 $3,351,956 $13,699,128 $5,530,888
========== ========== =========== ==========
Expenses
The Company's lease operating expenses ("LOE") and LOE per Boe for the three and six month periods ended June 30, 2017 and 2016, are set forth below:
Three Months Ended June Six Months Ended June
30, 30,
------------------------ ----------------------
2017 2016 2017 2016
---- ---- ---- ----
Lease
operating
expenses $1,844,896 $597,966 $3,542,804 $1,227,954
Severance,
ad
valorem
taxes
and
marketing 1,214,228 493,113 2,177,584 849,822
--------- ------- --------- -------
Total
LOE $3,059,124 $1,091,079 $5,720,388 $2,077,776
========== ========== ========== ==========
LOE
per
Boe $13.17 $6.53 $11.62 $6.95
LOE
per
Boe
without
severance,
ad
valorem
taxes
and
marketing $7.94 $3.58 $7.20 $4.11
Commodity Derivative Instruments
Commodity derivative instruments open as of June 30, 2017 are provided below. Natural gas prices are NYMEX Henry Hub prices, and crude oil prices are NYMEX West Texas Intermediate.
2017 2018 2019
Settlement Settlement Settlement
---------- ---------- ----------
NATURAL GAS (MMBtu):
Swaps
Volume 1,098,912 1,725,133 373,906
Price $3.13 $3.00 $3.00
3-way collars
Volume 85,806 - -
Ceiling sold price (call) $3.39 - -
Floor purchased price (put) $3.03 - -
Floor sold price (short
put) $2.47 - -
CRUDE OIL (Bbls):
Swaps
Volume 67,191 195,152 156,320
Price $52.24 $53.17 $53.77
3-way collars
Volume 54,289 - -
Ceiling sold price (call) $77.00 - -
Floor purchased price (put) $60.00 - -
Floor sold price (short
put) $45.00 - -
About Yuma Energy, Inc.
Yuma Energy, Inc., a Delaware corporation, is an independent Houston-based exploration and production company focused on acquiring, developing and exploring for conventional and unconventional oil and natural gas resources. Historically, the Company's operations have focused on onshore properties located in central and southern Louisiana and southeastern Texas where it has a long history of exploration and development activity, and more recently, the Company has entered the Permian Basin. In addition, the Company has non-operated positions in the East Texas Woodbine and the Bakken Shale in North Dakota, and operated positions in Kern County, California. Its common stock is listed on the NYSE American under the trading symbol "YUMA."
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects," "believes," "intends," "anticipates," "plans," "estimates," "potential," "possible," or "probable" or statements that certain actions, events or results "may," "will," "should," or "could" be taken, occur or be achieved. The forward-looking statements include statements about future operations, and estimates of reserve and production volumes. Forward-looking statements are based on current expectations and assumptions and analyses made by the Company in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform with expectations is subject to a number of risks and uncertainties, including but not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas); risks and uncertainties involving geology of oil and natural gas deposits; the uncertainty of reserve estimates; revisions to reserve estimates as a result of changes in commodity prices; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather; further declines in oil and natural gas prices; inability of management to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change. The Company's annual report on Form 10-K for the year ended December 31, 2016, recent quarterly reports on Form 10-Q, recent current reports on Form 8-K, and other Securities and Exchange Commission filings discuss some of the important risk factors identified that may affect its business, results of operations, and financial condition. The Company undertakes no obligation to revise or update publicly any forward-looking statements, except as required by law.
Yuma Energy, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2017 2016
---- ----
ASSETS
CURRENT ASSETS:
Cash
and
cash
equivalents $543,095 $3,625,686
Accounts receivable, net of allowance for
doubtful accounts:
Trade 4,330,227 4,827,798
Officers
and
employees 42,955 68,014
Other 1,851,776 1,757,337
Commodity
derivative
instruments 1,506,706 -
Prepayments 541,965 1,063,418
Other
deferred
charges 330,022 284,305
------- -------
Total
current
assets 9,146,746 11,626,558
--------- ----------
OIL AND GAS PROPERTIES (full cost
method):
Proved
properties 486,055,239 488,723,905
Unproved
properties
-not
subject
to
amortization 5,585,387 3,656,989
--------- ---------
491,640,626 492,380,894
Less:
accumulated
depreciation,
depletion
and
amortization (416,195,279) (410,440,433)
------------ ------------
Net oil
and
gas
properties 75,445,347 81,940,461
---------- ----------
OTHER PROPERTY AND EQUIPMENT:
Land,
buildings
and
improvements 1,600,000 1,600,000
Other
property
and
equipment 2,842,140 7,136,530
--------- ---------
4,442,140 8,736,530
Less:
accumulated
depreciation
and
amortization (1,329,082) (5,349,145)
---------- ----------
Net
other
property
and
equipment 3,113,058 3,387,385
--------- ---------
OTHER ASSETS AND DEFERRED CHARGES:
Commodity
derivative
instruments 1,081,480 -
Deposits 467,592 467,306
Other
noncurrent
assets 435,810 517,201
------- -------
Total
other
assets
and
deferred
charges 1,984,882 984,507
--------- -------
TOTAL
ASSETS $89,690,033 $97,938,911
=========== ===========
Yuma Energy, Inc.
CONSOLIDATED BALANCE SHEETS - CONTINUED
(Unaudited)
June 30, December 31,
2017 2016
---- ----
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of debt $86,558 $599,341
Accounts payable, principally trade 10,782,653 11,009,631
Commodity derivative instruments - 1,340,451
Asset retirement obligations 388,643 376,735
Other accrued liabilities 2,449,304 2,572,680
--------- ---------
Total current liabilities 13,707,158 15,898,838
---------- ----------
LONG-TERM DEBT 32,000,000 39,500,000
---------- ----------
OTHER NONCURRENT LIABILITIES:
Asset retirement obligations 9,639,787 9,819,648
Commodity derivative instruments - 1,215,551
Employee stock awards 30,430 -
------ ---
Total other noncurrent liabilities 9,670,217 11,035,199
--------- ----------
COMMITMENTS AND CONTINGENCIES (Note 14)
EQUITY
Series D convertible preferred stock
($0.001 par value, 7,000,000 authorized, 1,838,927 issued as of June 30, 2017
and 1,776,718 issued as of December 31, 2016, $11.07 per share liquidation
preference) 1,839 1,777
Common stock
($0.001 par value, 100 million shares authorized, 12,558,891 issued as of
June 30, 2017 and 12,201,884 issued as of December 31, 2016) 12,559 12,202
Additional paid-in capital 44,958,379 43,877,563
Treasury stock at cost (11,900 shares as of June 30, 2017 and -0- shares as
of December 31, 2016) (23,270) -
Accumulated earnings (deficit) (10,636,849) (12,386,668)
----------- -----------
Total equity 34,312,658 31,504,874
---------- ----------
TOTAL LIABILITIES AND EQUITY $89,690,033 $97,938,911
=========== ===========
Yuma Energy, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
--------------------------- -------------------------
2017 2016 2017 2016
---- ---- ---- ----
REVENUES:
Sales of natural gas and crude oil $6,554,704 $3,351,956 $13,699,128 $5,530,888
---------- ---------- ----------- ----------
EXPENSES:
Lease operating and production costs 3,059,124 1,091,079 5,720,388 2,077,776
General and administrative - stock-based
compensation 385,097 1,087,471 436,832 1,284,395
General and administrative - other 1,906,629 4,270,733 4,082,631 6,436,247
Depreciation, depletion and amortization 2,763,444 2,044,105 5,904,384 3,832,330
Asset retirement obligation accretion expense 141,454 55,016 280,023 107,075
Impairment of oil and gas properties - 7,700,296 - 17,548,183
Bad debt expense 73,513 12,562 73,513 15,750
------ ------ ------ ------
Total expenses 8,329,261 16,261,262 16,497,771 31,301,756
--------- ---------- ---------- ----------
LOSS FROM OPERATIONS (1,774,557) (12,909,306) (2,798,643) (25,770,868)
---------- ----------- ---------- -----------
OTHER INCOME (EXPENSE):
Net gains (losses) from commodity derivatives 2,138,080 (745,652) 5,694,863 (289,338)
Interest expense (482,285) (71,130) (978,376) (113,838)
Gain (loss) on other property and equipment (70,874) - 484,768 -
Other, net 5,659 13,465 42,067 13,465
----- ------ ------ ------
Total other income (expense) 1,590,580 (803,317) 5,243,322 (389,711)
--------- -------- --------- --------
INCOME (LOSS) BEFORE INCOME TAXES (183,977) (13,712,623) 2,444,679 (26,160,579)
Income tax expense (benefit) (20,581) (29,371) 5,950 (26,769)
------- ------- ----- -------
NET INCOME (LOSS) (163,396) (13,683,252) 2,438,729 (26,133,810)
PREFERRED STOCK:
Dividends paid in kind 349,300 325,869 688,910 646,148
------- ------- ------- -------
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $(512,696) $(14,009,121) $1,749,819 $(26,779,958)
========= ============ ========== ============
INCOME (LOSS) PER COMMON SHARE:
Basic ($0.04) ($1.88) $0.14 ($3.60)
Diluted ($0.04) ($1.88) $0.14 ($3.60)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING:
Basic 12,235,286 7,442,381 12,223,337 7,448,222
Diluted 12,235,286 7,442,381 12,407,996 7,448,222
Yuma Energy, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
-------------------------
2017 2016
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Reconciliation of net income (loss) to net cash provided by (used in)
operating activities:
Net income (loss) $2,438,729 $(26,133,810)
Depreciation, depletion and amortization of property and equipment 5,904,384 3,832,330
Impairment of oil and gas properties - 17,548,183
Amortization of debt issuance costs 172,826 -
Net deferred income tax benefit - (26,769)
Stock-based compensation expense 436,832 1,284,395
Settlement of asset retirement obligations (227,346) (17,890)
Accretion of asset retirement obligation 280,023 107,075
Bad debt expense 73,513 15,750
Net (gains) losses from commodity derivatives (5,694,863) 289,338
Gain on sales of fixed assets (556,141) -
Loss on write-off of abandoned facilities 71,373 -
Gain on write-off of liabilities net of assets (34,835) -
Changes in assets and liabilities:
Decrease in accounts receivable 426,945 1,273,576
(Increase) decrease in prepaids, deposits and other assets 521,167 269,522
(Decrease) increase in accounts payable and other current and
non-current liabilities (923,200) (884,576)
-------- --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,889,407 (2,442,876)
--------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures for oil and gas properties (4,526,587) (8,858,743)
Proceeds from sale of oil and gas properties 5,400,563 -
Proceeds from sale of other fixed assets 641,556 -
Derivative settlements 550,675 1,059,900
------- ---------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 2,066,207 (7,798,843)
--------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings - 9,000,000
Net repayments on the senior credit facility (7,500,000) -
Repayments of borrowings - insurance financing (512,783) -
Debt issuance costs (2,152) -
Treasury stock repurchases (23,270) (389,740)
------- --------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (8,038,205) 8,610,260
---------- ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS (3,082,591) (1,631,459)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3,625,686 4,064,094
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $543,095 $2,432,635
======== ==========
Supplemental disclosure of cash flow information:
Interest payments (net of interest capitalized) $811,042 $113,838
Income tax payments $ - $ -
Supplemental disclosure of significant non-cash activity:
(Increase) decrease in capital expenditures financed by accounts payable $(386,337) $441,393
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