Yuma Energy, Inc. Announces Third Quarter 2017 Financial Results
HOUSTON, Nov. 13, 2017 /PRNewswire/ -- Yuma Energy, Inc. (NYSE American: YUMA) (the "Company" or "Yuma") today announced its financial results for the quarter ended September 30, 2017.
Third Quarter 2017 Highlights
-- Net average production of 2,348 Boe/d for the third quarter of 2017, a
53.5 percent increase over the third quarter of 2016.
-- Cash provided by operations of $4,472,028 for the nine months ended
September 30, 2017, compared to cash used in operations of $927,802 in
the same period in 2016.
-- Yuma's Permian Basin acreage position has increased to 3,068 acres
(2,685 net acres) in Yoakum County, Texas to horizontally develop the
San Andres Oil Play. Yuma is the operator of the acreage with an 87.5
percent working interest, and has spud its salt water disposal well and
intends to drill its first joint venture well in 2017, as well as
continue to acquire additional acreage within its 33,280 acre Area of
Mutual Interest ("AMI").
-- Yuma's borrowing base on its credit facility was reaffirmed on September
8, 2017 at $40.5 million, with the next scheduled redetermination set
for April 1, 2018.
Recent Developments
-- Yuma closed its common stock offering of 9,600,000 shares of common
stock on October 3, and subsequently on October 31, 2017, the
Underwriters exercised their overallotment option and purchased 500,000
additional shares of common stock to bring the total gross proceeds of
the offering to $10,100,000 before deducting underwriters' fees and
offering expenses.
Management Comments
Sam L. Banks, CEO of Yuma Energy, Inc., commented, "We have continued to increase our acreage position in the Permian Basin at very attractive prices and are currently preparing to drill our first horizontal well and salt water disposal well in the San Andres horizontal oil play. We intend to finish drilling operations for both wells in 2017 and to establish commercial production during the first quarter of 2018. We continue to believe that increasing our exposure to the Permian Basin, and more specifically the San Andres horizontal oil play, will lead to significant shareholder value over time. As can be seen in the results of our first three quarters, 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 us for the three and nine months ended September 30, 2017 and 2016, and the average sales price per unit sold.
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2017 2016 2017 2016
---- ---- ---- ----
Production volumes:
Crude oil and condensate (Bbls) 57,134 32,242 199,774 106,257
Natural gas (Mcf) 757,361 507,521 2,442,899 1,553,906
Natural gas liquids (Bbls) 32,694 23,903 101,260 74,282
------ ------ ------- ------
Total (Boe) (1) 216,055 140,732 708,184 439,523
======= ======= ======= =======
Average prices realized:
Crude oil and condensate (per Bbl) $47.86 $43.45 $48.42 $39.27
Natural gas (per Mcf) $3.04 $2.46 $3.05 $2.12
Natural gas liquids (per Bbl) $23.81 $16.66 $23.68 $14.96
(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 our revenues for the three and nine months ended September 30, 2017 and 2016.
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2017 2016 2017 2016
---- ---- ---- ----
Sales of natural gas and crude
oil:
Crude oil and condensate $2,734,269 $1,400,837 $9,673,049 $4,172,477
Natural gas 2,304,154 1,249,148 7,445,564 3,295,258
Natural gas liquids 778,460 398,264 2,397,398 1,111,402
------- ------- --------- ---------
Total revenues $5,816,883 $3,048,249 $19,516,011 $8,579,137
========== ========== =========== ==========
Expenses
The Company's lease operating expenses ("LOE") and LOE per Boe for the three and nine month periods ended September 30, 2017 and 2016, are set forth below:
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2017 2016 2017 2016
---- ---- ---- ----
Lease operating
expenses $1,506,747 $810,115 $5,049,551 $2,043,298
Severance, ad
valorem taxes and
marketing
1,002,605 423,511 3,180,189 1,268,104
--------- ------- --------- ---------
Total LOE $2,509,352 $1,233,626 $8,229,740 $3,311,402
========== ========== ========== ==========
LOE per Boe $11.61 $8.77 $11.62 $7.53
LOE per Boe
without
severance, ad
valorem taxes and
marketing $6.97 $5.76 $7.13 $4.65
Commodity Derivative Instruments
Commodity derivative instruments open as of September 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 517,916 1,725,133 373,906
Price $3.13 $3.00 $3.00
3-way collars
Volume 41,712 - -
Ceiling sold price (call) $3.39 - -
Floor purchased price (put) $3.03 - -
Floor sold price (short put) $2.47 - -
CRUDE OIL (Bbls):
Swaps
Volume 31,927 195,152 156,320
Price $52.24 $53.17 $53.77
3-way collars
Volume 26,637 - -
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 drilling, developing and producing both oil and natural gas assets. More recently, the Company has begun acquiring acreage in Yoakum County, Texas, with plans to explore and develop oil and natural gas assets in the Permian Basin. Finally, the Company has operated positions in Kern County, California, and non-operated positions in the East Texas Woodbine and the Bakken Shale in North Dakota. 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)
September 30, December 31,
2017 2016
---- ----
ASSETS
CURRENT ASSETS:
Cash
and
cash
equivalents $270,359 $3,625,686
Accounts receivable, net of allowance
for doubtful accounts:
Trade 3,893,803 4,827,798
Officers
and
employees 48,575 68,014
Common
stock
subscription
receivable 8,690,400 -
Other 1,186,320 1,757,337
Commodity
derivative
instruments 359,965 -
Prepayments 347,529 1,063,418
Other
deferred
charges 437,165 284,305
------- -------
Total
current
assets 15,234,116 11,626,558
---------- ----------
OIL AND GAS PROPERTIES (full cost
method):
Proved
properties 490,280,184 488,723,905
Unproved
properties
-
not
subject
to
amortization 5,584,644 3,656,989
--------- ---------
495,864,828 492,380,894
Less:
accumulated
depreciation,
depletion
and
amortization (418,916,482) (410,440,433)
------------ ------------
Net
oil
and
gas
properties 76,948,346 81,940,461
---------- ----------
OTHER PROPERTY AND EQUIPMENT:
Land,
buildings
and
improvements 1,600,000 1,600,000
Other
property
and
equipment 2,845,459 7,136,530
--------- ---------
4,445,459 8,736,530
Less:
accumulated
depreciation
and
amortization (1,369,302) (5,349,145)
---------- ----------
Net
other
property
and
equipment 3,076,157 3,387,385
--------- ---------
OTHER ASSETS AND DEFERRED CHARGES:
Commodity
derivative
instruments 415,091 -
Deposits 467,592 467,306
Other
noncurrent
assets 333,587 517,201
------- -------
Total
other
assets
and
deferred
charges 1,216,270 984,507
--------- -------
TOTAL
ASSETS $96,474,889 $97,938,911
=========== ===========
Yuma Energy, Inc.
CONSOLIDATED BALANCE SHEETS - CONTINUED
(Unaudited)
September 30, December 31,
2017 2016
---- ----
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of debt $ - $599,341
Accounts payable, principally
trade 12,922,251 11,009,631
Commodity derivative
instruments - 1,340,451
Asset retirement obligations 359,659 376,735
Other accrued liabilities 1,875,211 2,572,680
--------- ---------
Total current liabilities 15,157,121 15,898,838
---------- ----------
LONG-TERM DEBT 31,450,000 39,500,000
---------- ----------
OTHER NONCURRENT LIABILITIES:
Asset retirement obligations 9,717,448 9,819,648
Commodity derivative
instruments - 1,215,551
Deferred rent 286,907 -
Employee stock awards 93,669 -
------ ---
Total other noncurrent
liabilities 10,098,024 11,035,199
---------- ----------
COMMITMENTS AND CONTINGENCIES (Note 14)
EQUITY
Series D convertible preferred stock ($0.001
par value, 7,000,000 authorized, 1,871,373
issued as of September 30, 2017, and
1,776,718 issued as of December 31, 2016,
$11.07 per share liquidation preference)
1,872 1,777
Common stock ($0.001 par value, 100 million
shares authorized, 12,559,608 outstanding as
of September 30, 2017 and 12,201,884
outstanding as of December 31, 2016)
12,560 12,202
Common stock subscribed
(9,600,000 shares, funds
received October 3, 2017) 9,600 -
Additional paid-in capital 54,035,879 43,877,563
Treasury stock at cost (12,433 shares as of
September 30, 2017 and -0-shares as of
December 31, 2016)
(24,432) -
Accumulated earnings (deficit) (14,265,735) (12,386,668)
----------- -----------
Total equity 39,769,744 31,504,874
---------- ----------
TOTAL LIABILITIES AND EQUITY $96,474,889 $97,938,911
=========== ===========
Yuma Energy, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
2017 2016 2017 2016
---- ---- ---- ----
REVENUES:
Sales of natural gas and
crude oil $5,816,883 $3,048,249 $19,516,011 $8,579,137
---------- ---------- ----------- ----------
EXPENSES:
Lease operating and
production costs 2,509,352 1,233,626 8,229,740 3,311,402
General and administrative - stock-based
compensation
414,660 380,460 851,492 1,664,855
General and administrative -
other 1,622,528 1,717,627 5,705,159 8,153,874
Depreciation, depletion and
amortization 2,761,668 1,524,877 8,666,052 5,357,207
Asset retirement obligation
accretion expense 138,867 51,885 418,890 158,960
Impairment of oil and gas
properties - 12,735 - 17,560,918
Bad debt expense net of
recoveries (38,706) 16,602 34,807 32,352
------- ------ ------ ------
Total expenses 7,408,369 4,937,812 23,906,140 36,239,568
--------- --------- ---------- ----------
LOSS FROM OPERATIONS (1,591,486) (1,889,563) (4,390,129) (27,660,431)
---------- ---------- ---------- -----------
OTHER INCOME (EXPENSE):
Net gains (losses) from
commodity derivatives (1,260,280) 128,177 4,434,583 (161,161)
Interest expense (429,313) (81,168) (1,407,689) (195,006)
Gain (loss) on other property
and equipment - - 484,768 -
Other, net 14,043 1,157 56,110 14,622
------ ----- ------ ------
Total other income (expense) (1,675,550) 48,166 3,567,772 (341,545)
---------- ------ --------- --------
INCOME (LOSS) BEFORE INCOME
TAXES (3,267,036) (1,841,397) (822,357) (28,001,976)
Income tax expense 2,539 33,635 8,489 6,866
----- ------ ----- -----
NET INCOME (LOSS) (3,269,575) (1,875,032) (830,846) (28,008,842)
PREFERRED STOCK:
Dividends paid in kind 359,311 335,199 1,048,221 981,347
------- ------- --------- -------
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON
STOCKHOLDERS
$(3,628,886) $(2,210,231) $(1,879,067) $(28,990,189)
=========== =========== =========== ============
INCOME (LOSS) PER COMMON SHARE:
Basic ($0.29) ($0.30) ($0.15) ($3.89)
Diluted ($0.29) ($0.30) ($0.15) ($3.89)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic 12,483,724 7,444,542 12,311,087 7,446,986
Diluted 12,483,724 7,444,542 12,311,087 7,446,986
Yuma Energy, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 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) $(830,846) $(28,008,842)
Depreciation, depletion
and amortization of
property and equipment 8,666,052 5,357,207
Impairment of oil and
gas properties - 17,560,918
Amortization of debt
issuance costs 277,293 -
Net deferred income tax
expense - 6,866
Deferred rent
liability, net 163,962 -
Stock-based
compensation expense 851,492 1,664,855
Settlement of asset
retirement obligations (430,415) (17,890)
Accretion of asset
retirement obligation 418,890 158,960
Bad debt expense 34,807 32,352
Net (gains) losses from
commodity derivatives (4,434,583) 161,161
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 736,959 2,988,184
(Increase) decrease in
prepaids, deposits and
other assets 715,603 656,948
(Decrease) increase in accounts
payable and other current and non-
current liabilities
(1,177,583) (1,488,521)
---------- ----------
NET CASH PROVIDED BY
(USED IN) OPERATING
ACTIVITIES 4,472,028 (927,802)
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures
for oil and gas
properties (5,964,781) (9,878,724)
Proceeds from sale of
oil and gas properties 5,400,563 -
Proceeds from sale of
other fixed assets 645,791 -
Derivative settlements 1,103,525 1,319,517
--------- ---------
NET CASH PROVIDED BY
(USED IN) INVESTING
ACTIVITIES 1,185,098 (8,559,207)
--------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from
borrowings - 9,000,000
Net repayments on the
senior credit facility (8,050,000) -
Repayments of
borrowings -insurance
financing (599,341) -
Debt issuance costs (323,593) -
Costs for common stock
offering (15,087) -
Treasury stock
repurchases (24,432) (408,323)
------- --------
NET CASH PROVIDED BY
(USED IN) FINANCING
ACTIVITIES (9,012,453) 8,591,677
---------- ---------
NET DECREASE IN CASH
AND CASH EQUIVALENTS (3,355,327) (895,332)
CASH AND CASH
EQUIVALENTS AT
BEGINNING OF PERIOD 3,625,686 4,064,094
--------- ---------
CASH AND CASH
EQUIVALENTS AT END OF
PERIOD $270,359 $3,168,762
======== ==========
Supplemental disclosure of cash flow information:
Interest payments (net
of interest
capitalized) $1,021,249 $193,985
Income tax refund $20,699 $ -
Supplemental disclosure of significant non-cash activity:
(Increase) decrease in
capital expenditures
financed by accounts
payable $(3,291,386) $498,140
Common stock
subscription
receivable (net of
$909,600 offering
costs at closing) $8,690,400 $ -
Other accrued offering
expenses $271,227 $ -
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SOURCE Yuma Energy, Inc.
