Sundance Energy Australia Limited Reports Fourth Quarter 2015 Results
DENVER, Feb. 02, 2016 (GLOBE NEWSWIRE) -- Sundance Energy Australia Limited (ASX:SEA) (“Sundance” or the “Company”), a U.S. onshore oil and gas exploration and production company focused in the Eagle Ford and Greater Anadarko Basin, reported its unaudited fourth quarter 2015 results as filed with the Australian Securities Exchange (ASX).
Fourth Quarter and Full-Year 2015 Financial Results
Adjusted EBITDAX of $66.5 million year-to-date and $13.1 million for the fourth quarter with EBITDAX margin of 72% in both periods, despite an approximate 51% decrease in realized pricing year-over-year.
Cash operating costs were reduced from $15.15 / Boe for the year ended December 31, 2014 to $14.25/ Boe for the year ended December 31, 2015.
All of the Company’s year-to-date drilling, completion and well facility capital expenditures of $60.7 million were fully funded within Adjusted EBITDAX.
As of the date of this report, the Company’s oil hedges covered a total of 2.4 million bbls through 2019 with a weighted average floor of $50.42 and ceiling of $80.72.
The Company’s fourth quarter 2015 borrowing base redetermination was completed, which resulted in a decrease from $75 million to $67 million. None of the $8 million reduction had been drawn at the time of the redetermination. The Company’s Term Loan remains unchanged at $125 million.
Fourth Quarter and Full-Year 2015 Operational Highlights
The Company achieved its full year production guidance, with net production, including flared gas, totaling 2,883,719 Boe, or 7,901 Boe/d year-to-date (19% increase year-over-year), despite bringing 10.0 net wells into production compared to guidance of 16.5 wells. Fourth quarter production totaled 717,727 Boe, or 7,801 Boe/d.
Completed 3 gross (3.0 net) Eagle Ford wells in the fourth quarter that achieved peak 24-hour production rates of 1,965, 1,266 and 863 Boe (average peak 24-hour production of 1,365 Boe).
20 gross (10.5 net) horizontal wells were waiting on completion at December 31, 2015, of which 7 gross (6.7 net) were Sundance-operated.
2016 Company Guidance
Anticipated average production of 6,800-7,300 Boe/d during 2016.
As of the date of this report, the Company has hedges covering 1.0 million barrels in 2016 at an average floor of $50.63 and 2.0 bcf of gas at an average floor of $2.54.
Targeted cash operating costs (lease operating expenses, production taxes and general and administrative expenses) are expected to decline to $10.50-$12.50/Boe in 2016 primarily driven by:
Headcount reduction of ~30 percent that occurred in mid-January 2016, salary reductions, and a variety of other cost-saving initiatives that have been implemented.
Implementation of field-level operational changes in late 2015 and early 2016 as well as an on-going program designed to capture additional cost reductions.
Expect to drill and complete 5-8 net Eagle Ford wells, with expected development cost per well, inclusive of drilling, completion, facilities and gas tie-ins to be approximately $5.4 million (based on an average 6,300 foot lateral length well).
The following table reflects production volumes, revenues and pricing compared to the corresponding period in the prior year.
Three Months Ended December 31,
Year Ended December 31,
Unaudited
2015
2014
2015
2014
Production Summary
Oil (BBLS)
427,404
581,880
1,823,689
1,675,078
Natural gas (MCF)
984,896
934,094
4,000,028
2,872,051
NGL (BBLS)
126,173
84,209
393,359
267,952
Total BOE
717,727
821,771
2,883,719
2,421,705
Average daily production, including flared gas
7,801
8,932
7,901
6,635
Revenue (US$000s)
Oil
$
15,901
$
40,754
$
82,499
$
144,994
Natural gas
1,141
801
4,802
6,161
NGL
1,316
2,352
4,532
8,638
Total revenue
$
18,358
$
43,907
$
91,833
$
159,793
Realized Product Pricing
Oil priced received (per BBL)
$
37.20
$
70.04
$
45.24
$
86.56
Oil realized price, including oil hedging (per BBL)
$
46.54
$
66.82
$
51.73
$
85.77
Natural gas priced received (per MCF) *
$
1.67
$
1.51
$
1.86
$
3.42
Natural gas realized Price, including natural gas hedging (per MCF) *
$
2.05
$
1.67
$
2.08
$
3.43
NGL realized price (per BBL)
$
10.43
$
27.93
$
11.52
$
32.24
Total price received (per BOE)
$
27.51
$
58.19
$
34.69
$
71.22
Total realized price (per BOE)
$
33.88
$
55.82
$
39.38
$
70.64
* Excludes flared gas of 302,670 MCF and 403,010 MCF for the three months ended December 31, 2015 and 2014, respectively and 1,418,442 MCF and 1,069,051 MCF for the years ended December 31, 2015 and 2014, respectively.
The following table summarizes EBITDAX, and operating costs on an actual (in US thousands) and per unit basis.
Three Months Ended December 31,
Year Ended December 31,
Unaudited (US$000s, except BOE)
2015
2014
2015
2014
Adjusted EBITDAX
$
13,137
$
40,228
$
66,526
$
126,373
Adjusted EBITDAX margin
71.6
%
91.6
%
72.4
%
79.1
%
Costs:
Lease operating expenses (LOE)
$
4,481
$
3,704
$
18,496
$
13,523
Production taxes
1,792
742
6,139
6,966
Cash G&A, net of amounts capitalised
2,741
3,403
13,085
13,501
Total
$
9,014
$
7,849
$
37,720
$
33,990
Costs per BOE:
LOE
$
6.71
$
4.91
$
6.99
$
6.03
Production taxes
2.69
0.98
2.32
3.10
Cash G&A
4.11
4.51
4.94
6.02
Total
$
13.51
$
10.40
$
14.25
$
15.15
Additional Information
(1) We define “Adjusted EBITDAX” as earnings before interest expense, debt extinguishment costs, income taxes, depreciation, depletion and amortization, property impairments, gain/(loss) on sale of non-current assets, exploration expense, share based compensation and income and gains and losses on commodity hedging, net of settlements of commodity hedging.
The Company reports under International Financial Reporting Standards (IFRS). All amounts are reported in US dollars unless otherwise noted.
The Company’s full Unaudited Activities Report for the Quarter Ended December 31, 2015 can be found at www.sundanceenergy.net.
The Company’s 2014 Annual Report was filed with the ASX on March 31, 2015 and can be found at www.sundanceenergy.net.
About Sundance Energy Australia Limited
Sundance Energy Australia Limited (“Sundance” or the “Company”) is an Australian-based, independent energy exploration company, with a wholly owned US subsidiary, Sundance Energy Inc., located in Denver, Colorado, USA.
The Company is focused on the acquisition and development of large, repeatable oil and natural gas resource plays in North America. Current activities are focused in the Eagle Ford and Greater Anadarko Basins. A comprehensive overview of the Company can be found on Sundance’s website at www.sundanceenergy.net.
Summary Information
The following disclaimer applies to this document and any information contained in it. The information in this release is of general background and does not purport to be complete. It should be read in conjunction with Sundance’s periodic and continuous disclosure announcements lodged with ASX Limited that are available at www.asx.com.au and Sundance’s filings with the Securities and Exchange Commission available at www.sec.gov/edgar.
Forward Looking Statements
This release may contain forward-looking statements. These statements relate to the Company’s expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like “anticipate”, “believe”, “intend”, “estimate”, “expect”, “may”, “plan”, “project”, “will”, “should”, “seek” and similar words or expressions containing same.
These forward-looking statements reflect the Company’s views and assumptions with respect to future events as of the date of this release and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. These include, but are not limited to, risks or uncertainties associated with our the discovery and development of oil and natural gas reserves, cash flows and liquidity, business and financial strategy, budget, projections and operating results, oil and natural gas prices, amount, nature and timing of capital expenditures, including future development costs, availability and terms of capital and general economic and business conditions. Given these uncertainties, no one should place undue reliance on any forward looking statements attributable to Sundance, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this release sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
United States
Eric McCrady, Managing Director
Tel: +1 (303) 543 5703
Australia
Mike Hannell, Chairman
Tel: +61 8 8363 0388
