Approach Resources Inc. Reports Second Quarter 2018 Results FORT WORTH, Texas
Approach Resources Inc. (NASDAQ: AREX) today reported second
quarter 2018 financial and operational results.
Financial and operational highlights for the second quarter of 2018
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Production at the high end of quarterly guidance, driven primarily by
liquids growth, increased production to 1,056 MBoe or 11.6 MBoe/day,
an increase of 2% over prior quarter
-
Reduced lease operating expense (“LOE”) per Boe by 8% from previous
quarter, peer leading LOE of $4.77 for the second quarter
-
Oil marketing contributed to an 8% increase in realized oil prices,
over prior quarter
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Revenues of $30.3 million, a 21% increase over the prior year quarter
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Net loss was $9.1 million or $0.10 per diluted share, adjusted net
loss (non-GAAP) was $6.8 million, or $0.07 per diluted share
-
Improved unhedged cash margin (non-GAAP) by 37% over the prior year
quarter
-
Generated $15.3 million of EBITDAX (non-GAAP)
Adjusted net loss, EBITDAX and unhedged cash margin are non-GAAP
measures. See “Supplemental Non-GAAP Financial and Other Measures” below
for our definitions and reconciliations of adjusted net loss, EBITDAX to
net loss and unhedged cash margin.
Management Comment
Ross Craft, Approach’s Chairman and CEO, commented, “We wrapped up
another solid quarter on multiple fronts delivering growth in oil
production, revenue, unhedged cash margin and EBITDAX while lowering
lease-operating expense. We delivered production of 11.6 MBoe/d, at the
high end of quarterly guidance, and increased daily oil production
quarter over quarter. Our oil marketing arrangement allows us to sell at
Cushing pricing and mitigate the impact of recent Midland - Cushing
differentials. We continue to experiment with our completion techniques
and gas lift optimization and are pleased with the solid results we are
realizing. In spite of the multiple challenges faced by our industry
over the last several years, our knowledge, experience and strong focus
on day-to-day operations has continuously improved the performance of
our asset and maintained our efficient cost structure.
“Our focus for the remainder of 2018 is strengthening our balance sheet
through acquisitions or other deleveraging opportunities so that we have
the appropriate capital structure to execute a growth strategy that is
accretive to our shareholders.”
Second Quarter 2018 Results
Production for second quarter 2018 totaled 1,056 Mboe, or 11.6 MBoe/d,
made up of 26% oil, 36% NGLs and 38% natural gas. Average realized
commodity prices for second quarter 2018, before the effect of commodity
derivatives, were $65.09 per Bbl of oil, $23.49 per Bbl of NGLs and
$1.40 per Mcf of natural gas. Our average realized price, including the
effect of commodity derivatives, was $26.85 per Boe for second quarter
2018.
Net loss for second quarter 2018 was $9.1 million, or $0.10 per diluted
share, on revenues of $30.3 million. Excluding the decrease in the fair
value of our commodity derivatives of $2.9 million, adjusted net loss
(non-GAAP) for second quarter 2018 was $6.8 million, or $0.07 per
diluted share. EBITDAX (non-GAAP) for second quarter 2018 was $15.3
million. See “Supplemental Non-GAAP Financial and Other Measures” below
for our reconciliation of adjusted net loss and EBITDAX to net loss.
Lease operating expense averaged $4.77 per Boe, an 8% decrease from the
prior quarter. Production and ad valorem taxes averaged $2.43 per Boe,
or 8.5% of oil, NGL and gas sales. Total general and administrative
(“G&A”) costs averaged $5.77 per Boe, including cash G&A costs of $5.14
per Boe. Depletion, depreciation and amortization expense averaged
$15.96 per Boe. Interest expense totaled $6.2 million.
Operations Update
During the second half of the second quarter 2018, we completed three
horizontal wells. One in Pangea West in the Wolfcamp A bench and two
wells in Baker, one well in the Wolfcamp B bench and one well in the
Wolfcamp C bench. At June 30, 2018, we had three horizontal wells
waiting on completion. We plan to have one rig running intermittently
during the second half of 2018.
Capital expenditures incurred during second quarter 2018 totaled $13.5
million, consisting of $11.2 million for drilling and completion
activities, $2 million for infrastructure projects and equipment and
$0.3 million for lease acquisitions. For the six months ended June 30,
2018, our capital expenditures totaled $27.2 million, consisting of
$23.6 million for completion activities, $3.3 million for infrastructure
projects and equipment and $0.3 million for lease acquisitions.
Liquidity Update
At June 30, 2018, we had a $1 billion revolving credit facility in
place, with a borrowing base and lender commitment amount of $325
million, and liquidity of $27.2 million. See “Supplemental Non-GAAP
Financial and Other Measures” below for our definition and calculation
of liquidity.
Commodity Derivatives Update
We enter into commodity derivatives positions to reduce the risk of
commodity price fluctuations. The table below is a summary of our
current derivatives positions.
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Commodity and Period
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Contract
Type
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Volume Transacted
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Contract Price
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Crude Oil
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July 2018 – December 2018
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Swap
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300 Bbls/day
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$50.00/Bbl
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July 2018 – September 2018
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Swap
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1,500 Bbls/day
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$60.50/Bbl
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CMA Roll
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July 2018 – December 2018
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Swap
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2,000 Bbls/day
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$0.66/Bbl
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Natural Gas
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July 2018 – December 2018
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Swap
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200,000 MMBtu/month
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$3.085/MMBtu
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July 2018 – December 2018
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Swap
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250,000 MMBtu/month
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$3.084/MMBtu
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NGLs (C2 - Ethane)
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July 2018 – December 2018
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Swap
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1,000 Bbls/day
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$11.424/Bbl
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NGLs (C3 - Propane)
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July 2018 – December 2018
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Swap
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600 Bbls/day
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$32.991/Bbl
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August 2018 – December 2018
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Swap
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400 Bbls/day
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$40.74/Bbl
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NGLs (IC4 - Isobutane)
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July 2018 – December 2018
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Swap
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50 Bbls/day
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$38.262/Bbl
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NGLs (NC4 - Butane)
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July 2018 – December 2018
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Swap
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200 Bbls/day
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$38.22/Bbl
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NGLs (C5 - Pentane)
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July 2018 – December 2018
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Swap
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200 Bbls/day
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$56.364/Bbl
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Conference Call Information and Summary Presentation
The Company will host a conference call on Thursday, August 2, 2018, at
10:00 AM CT (11:00 AM ET) to discuss second quarter 2018 financial and
operating results.
Those wishing to listen to the conference call, may do so by visiting
the Events and Presentations page under the Investor Relations section
of the Company’s website, www.approachresources.com,
or by phone:
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Conference ID:
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7988794
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Participant Toll-Free Dial-In Number:
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(844) 884-9950
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Participant International Dial-In Number:
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(661) 378-9660
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A replay of the call will be available onthe Company’s website or by
dialing:
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Replay Toll-Free:
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(855) 859-2056
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Replay International:
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(404) 537-3406
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Conference ID:
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7988794
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In addition, a second quarter 2018 summary presentation will be
available on the Company’s website.
About Approach Resources
Approach Resources Inc. is an independent energy company focused
on the exploration, development, production and acquisition of
unconventional oil and natural gas reserves in the Midland Basin of the
greater Permian Basin in West Texas. For more information about the
Company, please visit www.approachresources.com.
Please note that the Company routinely posts important information about
the Company under the Investor Relations section of its website.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that the Company expects,
believes or anticipates will or may occur in the future are
forward-looking statements. Without limiting the generality of the
foregoing, forward-looking statements contained in this press release
specifically include expectations of anticipated financial and operating
results. These statements are based on certain assumptions made
by the Company based on management’s experience, perception of
historical trends and technical analyses, current conditions,
anticipated future developments and other factors believed to be
appropriate and reasonable by management. When used in this press
release, the words “will,” “potential,” “believe,” “estimate,” “intend,”
“expect,” “may,” “should,” “anticipate,” “could,” “plan,” “predict,”
“project,” “profile,” “model” or their negatives, other similar
expressions or the statements that include those words, are intended to
identify forward-looking statements, although not all forward-looking
statements contain such identifying words. Such statements are subject
to a number of assumptions, risks and uncertainties, many of which are
beyond the control of the Company, which may cause actual results to
differ materially from those implied or expressed by the forward-looking
statements. Further information on such assumptions, risks and
uncertainties is available in the Company’s Securities and Exchange
Commission (“SEC”) filings. The Company’s SEC filings are
available on the Company’s website at www.approachresources.com.
Any forward-looking statement speaks only as of the date on which
such statement is made and the Company undertakes no obligation to
correct or update any forward-looking statement, whether as a result of
new information, future events or otherwise, except as required by
applicable law.
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UNAUDITED RESULTS OF OPERATIONS
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2018
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2017
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2018
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2017
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Revenues (in thousands):
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Oil
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$
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18,106
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$
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12,508
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$
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34,450
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$
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26,202
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NGLs
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8,852
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6,019
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16,184
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12,079
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Gas
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3,368
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6,442
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8,464
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13,043
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Total oil, NGLs and gas sales
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30,326
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24,969
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59,098
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51,324
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Net cash (payment) receipt on derivative settlements
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(1,982
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)
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3
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(3,513
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)
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(958
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Total oil, NGLs and gas sales including derivative impact
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$
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28,344
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$
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24,972
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$
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55,585
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$
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50,366
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Production:
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Oil (MBbls)
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278
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281
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550
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560
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NGLs (MBbls)
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377
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383
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729
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735
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Gas (MMcf)
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2,404
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2,499
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4,780
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4,875
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Total (MBoe)
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1,056
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1,080
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2,076
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2,107
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Total (MBoe/d)
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11.6
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11.9
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11.5
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11.6
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Average prices:
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Oil (per Bbl)
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$
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65.09
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$
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44.50
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$
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62.59
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$
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46.83
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NGLs (per Bbl)
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23.49
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15.72
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22.21
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16.43
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Gas (per Mcf)
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1.40
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2.58
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1.77
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|
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2.68
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Total (per Boe)
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28.73
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23.11
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28.47
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24.36
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Net cash (payment) receipt on derivative settlements (per Boe)
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(1.88
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)
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—
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(1.69
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)
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(0.46
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)
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Total including derivative impact (per Boe)
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$
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26.85
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$
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23.11
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$
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26.78
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$
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23.90
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Costs and expenses (per Boe):
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Lease operating
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$
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4.77
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$
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3.92
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$
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4.96
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$
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3.99
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Production and ad valorem taxes
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2.43
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2.09
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2.44
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2.19
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Exploration
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—
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1.95
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—
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1.50
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General and administrative (1)
|
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5.77
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6.06
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6.10
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5.92
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Depletion, depreciation and amortization
|
|
|
|
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15.96
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|
|
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18.09
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|
|
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15.67
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|
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17.80
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(1) Below is a summary of general and administrative expense:
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|
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|
|
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General and administrative - cash component
|
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$
|
5.14
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|
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$
|
5.11
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$
|
5.38
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|
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$
|
4.88
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General and administrative - noncash component (share-based
compensation)
|
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|
|
|
0.63
|
|
|
|
0.95
|
|
|
|
0.72
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$
|
1.04
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|
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APPROACH RESOURCES INC. AND SUBSIDIARIES
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UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except shares and per-share amounts)
|
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|
Three Months Ended
June 30,
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Six Months Ended
June 30,
|
|
|
|
|
2018
|
|
2017
|
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2018
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2017
|
REVENUES:
|
|
|
|
|
|
|
|
|
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Oil, NGLs and gas sales
|
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$
|
30,326
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|
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$
|
24,969
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|
|
|
$
|
59,098
|
|
|
$
|
51,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
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Lease operating
|
|
|
|
|
5,032
|
|
|
|
4,238
|
|
|
|
|
10,300
|
|
|
|
8,408
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|
Production and ad valorem taxes
|
|
|
|
|
2,569
|
|
|
|
2,252
|
|
|
|
|
5,069
|
|
|
|
4,609
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|
Exploration
|
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|
3
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|
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|
2,108
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|
|
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|
3
|
|
|
|
3,151
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|
General and administrative (1)
|
|
|
|
|
6,086
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|
|
|
6,548
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|
|
|
|
12,653
|
|
|
|
12,476
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|
Depletion, depreciation and amortization
|
|
|
|
|
16,849
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|
|
19,543
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|
|
|
|
32,529
|
|
|
|
37,505
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|
Total expenses
|
|
|
|
|
30,539
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|
|
|
34,689
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|
|
|
|
60,554
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|
|
|
66,149
|
|
|
|
|
|
|
|
|
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|
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|
OPERATING LOSS
|
|
|
|
|
(213
|
)
|
|
|
(9,720
|
)
|
|
|
|
(1,456
|
)
|
|
|
(14,825
|
)
|
|
|
|
|
|
|
|
|
|
|
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OTHER:
|
|
|
|
|
|
|
|
|
|
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|
Interest expense, net
|
|
|
|
|
(6,184
|
)
|
|
|
(4,916
|
)
|
|
|
|
(12,070
|
)
|
|
|
(10,379
|
)
|
Gain on debt extinguishment
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
5,053
|
|
Commodity derivative (loss) gain
|
|
|
|
|
(4,884
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)
|
|
|
1,231
|
|
|
|
|
(6,812
|
)
|
|
|
4,675
|
|
Other (expense) income
|
|
|
|
|
(13
|
)
|
|
|
—
|
|
|
|
|
(12
|
)
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAX (BENEFIT) PROVISION
|
|
|
|
|
(11,294
|
)
|
|
|
(13,405
|
)
|
|
|
|
(20,350
|
)
|
|
|
(15,473
|
)
|
INCOME TAX (BENEFIT) PROVISION
|
|
|
|
|
(2,222
|
)
|
|
|
(4,509
|
)
|
|
|
|
(3,832
|
)
|
|
|
134,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
|
|
$
|
(9,072
|
)
|
|
$
|
(8,896
|
)
|
|
|
$
|
(16,518
|
)
|
|
$
|
(149,664
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.10
|
)
|
|
|
$
|
(0.17
|
)
|
|
$
|
(1.91
|
)
|
Diluted
|
|
|
|
$
|
(0.10
|
)
|
|
$
|
(0.10
|
)
|
|
|
$
|
(0.17
|
)
|
|
$
|
(1.91
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
94,470,636
|
|
|
|
86,340,634
|
|
|
|
|
94,548,898
|
|
|
|
78,418,977
|
|
Diluted
|
|
|
|
|
94,470,636
|
|
|
|
86,340,634
|
|
|
|
|
94,548,898
|
|
|
|
78,418,977
|
|
(1) Includes non-cash share-based compensation expense as follows:
|
|
|
|
|
656
|
|
|
|
1,029
|
|
|
|
|
1,484
|
|
|
|
2,188
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Balance Sheet Data
(in thousands)
|
|
|
|
June 30, 2018
|
|
|
December 31, 2017
|
Cash and cash equivalents
|
|
|
|
$
|
22
|
|
|
$
|
21
|
Other current assets
|
|
|
|
|
13,754
|
|
|
|
16,679
|
Property and equipment, net, successful efforts method
|
|
|
|
|
1,077,873
|
|
|
|
1,082,876
|
Total assets
|
|
|
|
$
|
1,091,649
|
|
|
$
|
1,099,576
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
$
|
29,767
|
|
|
$
|
25,067
|
Long-term debt (1)
|
|
|
|
|
380,470
|
|
|
|
373,460
|
Deferred income taxes
|
|
|
|
|
78,228
|
|
|
|
82,102
|
Other long-term liabilities
|
|
|
|
|
11,970
|
|
|
|
11,531
|
Stockholders' equity
|
|
|
|
|
591,214
|
|
|
|
607,416
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
1,091,649
|
|
|
$
|
1,099,576
|
|
(1) Long-term debt at June 30, 2018, is comprised of $85.2 million in 7%
senior notes due 2021 and $297.5 million in outstanding borrowings under
our revolving credit facility, net of issuance costs of $0.9 million and
$1.4 million, respectively. Long-term debt at December 31, 2017, is
comprised of $85.2 million in 7% senior notes due 2021 and $291 million
in outstanding borrowings under our revolving credit facility, net of
issuance costs of $1.1 million and $1.7 million, respectively.
Supplemental Non-GAAP Financial and Other Measures
This release contains certain financial measures that are non-GAAP
measures. We have provided reconciliations below of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures and on the Non-GAAP Financial Information page in the Investor
Relations section of our website at www.approachresources.com.
Adjusted Net Loss
This release contains the non-GAAP financial measures adjusted net loss
and adjusted net loss per diluted share, which exclude (1) non-cash fair
value loss (gain) on derivatives, (2) gain on debt extinguishment, (3)
write-off of deferred tax assets, (4) tax effect and other discrete tax
items. The amounts included in the calculation of adjusted net loss and
adjusted net loss per diluted share below were computed in accordance
with GAAP. We believe adjusted net loss and adjusted net loss per
diluted share are useful to investors because they provide readers with
a meaningful measure of our profitability before recording certain items
whose timing or amount cannot be reasonably determined. However, these
measures are provided in addition to, and not as an alternative for, and
should be read in conjunction with, the information contained in our
financial statements prepared in accordance with GAAP (including the
notes), included in our SEC filings and posted on our website.
The table below provides a reconciliation of adjusted net loss to net
loss for the three and six months ended June 30, 2018 and 2017 (in
thousands, except per-share amounts).
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Net Loss
|
|
|
|
$
|
(9,072
|
)
|
|
$
|
(8,896
|
)
|
|
|
$
|
(16,518
|
)
|
|
$
|
(149,664
|
)
|
Adjustments for certain items:
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash fair value loss (gain) on derivatives
|
|
|
|
|
2,902
|
|
|
|
(1,228
|
)
|
|
|
|
3,299
|
|
|
|
(5,633
|
)
|
Gain on debt extinguishment
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
(5,053
|
)
|
Write-off of deferred tax assets
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
139,090
|
|
Tax effect and other discrete tax items (1)
|
|
|
|
|
(610
|
)
|
|
|
452
|
|
|
|
|
(623
|
)
|
|
|
4,052
|
|
Adjusted net loss
|
|
|
|
$
|
(6,780
|
)
|
|
$
|
(9,672
|
)
|
|
|
$
|
(13,842
|
)
|
|
$
|
(17,208
|
)
|
Adjusted net loss per diluted share
|
|
|
|
$
|
(0.07
|
)
|
|
$
|
(0.11
|
)
|
|
|
$
|
(0.15
|
)
|
|
$
|
(0.22
|
)
|
|
(1) The estimated income tax impacts on adjustments to net loss are
computed based upon a statutory rate of 21% and 35%, for the three and
six months ended June 30, 2018, and three and six months ended June 30,
2017, respectively. Additionally, this includes the tax impact of a tax
shortfall related to share-based compensation of $22,000, $70,000, $0.3
million, for the three months ended June 30, 2017, six months ended June
30, 2018, and six months ended June 30, 2018, respectively.
EBITDAX
We define EBITDAX as net loss, plus (1) exploration expense, (2)
depletion, depreciation and amortization expense, (3) share-based
compensation expense, (4) non-cash fair value loss (gain) on
derivatives, (5) gain on debt extinguishment, (6) interest expense, net,
and (7) income tax (benefit) provision. EBITDAX is not a measure of net
income or cash flow as determined by GAAP. The amounts included in the
calculation of EBITDAX were computed in accordance with GAAP. EBITDAX is
presented herein and reconciled to the GAAP measure of net loss because
of its wide acceptance by the investment community as a financial
indicator of a company's ability to internally fund development and
exploration activities. This measure is provided in addition to, and not
as an alternative for, and should be read in conjunction with, the
information contained in our financial statements prepared in accordance
with GAAP (including the notes), included in our SEC filings and posted
on our website.
The table below provides a reconciliation of EBITDAX to net loss for the
three and six months ended June 30, 2018 and 2017 (in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Net Loss
|
|
|
|
$
|
(9,072
|
)
|
|
$
|
(8,896
|
)
|
|
|
$
|
(16,518
|
)
|
|
$
|
(149,664
|
)
|
Exploration
|
|
|
|
|
3
|
|
|
|
2,108
|
|
|
|
|
3
|
|
|
|
3,151
|
|
Depletion, depreciation and amortization
|
|
|
|
|
16,849
|
|
|
|
19,543
|
|
|
|
|
32,529
|
|
|
|
37,505
|
|
Share-based compensation
|
|
|
|
|
656
|
|
|
|
1,029
|
|
|
|
|
1,484
|
|
|
|
2,188
|
|
Non-cash fair value loss (gain) on derivatives
|
|
|
|
|
2,902
|
|
|
|
(1,228
|
)
|
|
|
|
3,299
|
|
|
|
(5,633
|
)
|
Gain on debt extinguishment
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
(5,053
|
)
|
Interest expense, net
|
|
|
|
|
6,184
|
|
|
|
4,916
|
|
|
|
|
12,070
|
|
|
|
10,379
|
|
Income tax (benefit) provision
|
|
|
|
|
(2,222
|
)
|
|
|
(4,509
|
)
|
|
|
|
(3,832
|
)
|
|
|
134,191
|
|
EBITDAX
|
|
|
|
$
|
15,300
|
|
|
$
|
12,963
|
|
|
|
$
|
29,035
|
|
|
$
|
27,064
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unhedged Cash Margin and Cash Operating Expenses
We define unhedged cash margin as revenue, less cash operating expenses.
We define cash operating expenses as operating expenses, excluding (1)
exploration expense, (2) depletion, depreciation and amortization
expense, and (3) share-based compensation expense. Unhedged cash margin
and cash operating expenses are not measures of operating income or cash
flows as determined by GAAP. The amounts included in the calculations of
unhedged cash margin and cash operating expenses were computed in
accordance with GAAP. Unhedged cash margin and cash operating expenses
are presented herein and reconciled to the GAAP measures of revenue and
operating expenses. We use unhedged cash margin and cash operating
expenses as an indicator of the Company’s profitability and ability to
manage its operating income and cash flows. This measure is provided in
addition to, and not as an alternative for, and should be read in
conjunction with, the information contained in our financial statements
prepared in accordance with GAAP (including the notes), included in our
SEC filings and posted on our website.
The table below provides a reconciliation of unhedged cash margin and
cash operating expenses to revenues and operating expenses for the three
and six months ended June 30, 2018 and 2017 (in thousands, except
per-Boe amounts).
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Revenues
|
|
$
|
30,326
|
|
|
$
|
24,969
|
|
|
|
$
|
59,098
|
|
|
$
|
51,324
|
|
Production (Mboe)
|
|
|
1,056
|
|
|
|
1,080
|
|
|
|
|
2,076
|
|
|
|
2,107
|
|
Average realize price per Boe
|
|
$
|
28.73
|
|
|
$
|
23.11
|
|
|
|
$
|
28.47
|
|
|
$
|
24.36
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
$
|
30,539
|
|
|
$
|
34,689
|
|
|
|
$
|
60,554
|
|
|
$
|
66,149
|
|
Exploration
|
|
|
(3
|
)
|
|
|
(2,108
|
)
|
|
|
|
(3
|
)
|
|
|
(3,151
|
)
|
Depletion, depreciation and amortization
|
|
|
(16,849
|
)
|
|
|
(19,543
|
)
|
|
|
|
(32,529
|
)
|
|
|
(37,505
|
)
|
Share-based compensation
|
|
|
(656
|
)
|
|
|
(1,029
|
)
|
|
|
|
(1,484
|
)
|
|
|
(2,188
|
)
|
Cash operating expenses
|
|
$
|
13,031
|
|
|
$
|
12,009
|
|
|
|
$
|
26,538
|
|
|
$
|
23,305
|
|
Cash operating expenses per Boe
|
|
$
|
12.34
|
|
|
$
|
11.12
|
|
|
|
$
|
12.78
|
|
|
$
|
11.06
|
|
|
|
|
|
|
|
|
|
|
|
Unhedged cash margin
|
|
$
|
17,295
|
|
|
$
|
12,960
|
|
|
|
$
|
32,560
|
|
|
$
|
28,019
|
|
Unhedged cash margin per Boe
|
|
$
|
16.39
|
|
|
$
|
11.99
|
|
|
|
$
|
15.69
|
|
|
$
|
13.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity
Liquidity is calculated by adding the net funds available under our
revolving credit facility and cash and cash equivalents. We use
liquidity as an indicator of the Company’s ability to fund development
and exploration activities. However, this measurement has limitations.
This measurement can vary from year-to-year for the Company and can vary
among companies based on what is or is not included in the measurement
on a company’s financial statements and may further be subject to
covenants in a company’s loan agreements. This measurement is provided
in addition to, and not as an alternative for, and should be read in
conjunction with, the information contained in our financial statements
prepared in accordance with GAAP (including the notes), included in our
SEC filings and posted on our website.
The table below summarizes our liquidity at June 30, 2018 (in thousands).
|
|
|
|
|
|
|
|
|
Liquidity at
June 30,
|
|
|
|
|
2018
|
Borrowing base
|
|
|
|
$
|
325,000
|
|
Cash and cash equivalents
|
|
|
|
|
22
|
|
Long-term debt – Credit Facility
|
|
|
|
|
(297,500
|
)
|
Undrawn letters of credit
|
|
|
|
|
(325
|
)
|
Liquidity
|
|
|
|
$
|
27,197
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180801005887/en/ Copyright Business Wire 2018
Source: Business Wire
(August 1, 2018 - 4:30 PM EDT)
News by QuoteMedia
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