November 6, 2018 - 4:01 PM EST
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Extraction Oil & Gas, Inc. Announces Third-Quarter 2018 Results

DENVER, Nov. 06, 2018 (GLOBE NEWSWIRE) -- Extraction Oil & Gas, Inc. (NASDAQ: XOG) (“Extraction” or the “Company”) today reported financial and operational results for the third quarter of 2018.

Third-Quarter 2018 Highlights

  • Third quarter average net sales volumes of 75,680 barrels of oil equivalent per day (BOE/d) including 39,323 barrels per day (Bbl/d) of crude oil;
       
  • For the third quarter, Extraction reported net income of $65.2 million, or $0.33 per basic and diluted share, compared to net loss of $29.8 million, or $0.20 per basic and diluted share1, for the same period in 2017. Adjusted EBITDAX, Unhedged2 was $212.4 million for the third quarter, up 69% year-over-year and up 12% sequentially. Adjusted EBITDAX was $169.4 million for the third quarter, up 32% year-over-year and up 11% sequentially;
       
  • Drilling and completion (D&C) capital expenditures for the third quarter 2018 were $161 million; and
       
  • First operated pad in Extraction's Broomfield Development Area produced crude oil at a peak 60-day average daily rate of 1,179 BOE/d, 68% of which was crude oil, exceeding internal estimates.

"After DCP's Plant 10 became operational in August, we were achieving sustained production in excess of 90 MBOE/d, reaching almost 93 MBOE/d at one point," said Extraction Oil & Gas Chairman and CEO Mark Erickson. "After DCP imposed production allocations later in August, we were forced to choke our wells back considerably, and since that time, we have not realized the full, sustained production potential of our outstanding DJ Basin wells. Despite these midstream headwinds that are outside of our control, we continue to produce some of the best wells in our company's history."

"As stated previously on October 18, we initially expected that DCP's Plant 10 would provide much more relief than what we have seen to date. We estimate that DCP negatively impacted our production by approximately 18 MBOE/d during the third quarter. Once Plant 10 came online, we did not expect that DCP would be basing allocations on production data from August 2017, and as a result, our gas production on DCP's system is currently curtailed by over 35%."

_______________________
1
For further information on the earnings per share, refer to the Condensed Consolidated Statement of Operations, included herein.
2 Adjusted EBITDAX and Adjusted EBITDAX, Unhedged are non-GAAP financial measures. For a definition of Adjusted EBITDAX and Adjusted EBITDAX, Unhedged and a reconciliation to our most directly comparable financial measure calculated and presented in accordance with GAAP, read “-Reconciliation of Adjusted EBITDAX and Adjusted EBITDAX, Unhedged” included herein.
   

"Despite the midstream headwinds, we still expect to generate positive free cash flow for the fourth quarter of 2018 when you exclude the impact of our initial Elevation Midstream investment, which is non-recourse to and does not require capital outlays by the upstream Company."

Financial Results

For the third quarter, Extraction reported oil, natural gas and NGL sales revenue of $282.2 million, as compared to $180.9 million during the same period in 2017, representing an increase of 56%. Revenue increased 8% sequentially, primarily driven by higher production and an improvement in crude oil prices.

Extraction reported net income of $65.2 million, or $0.33 per basic and diluted share for the third quarter, compared to net loss of $29.8 million for the same period in 2017. This increase in net income was driven predominately by an $83.6 million gain from the previously announced sale of Extraction's ownership in Discovery Midstream that closed in August. Adjusted EBITDAX, Unhedged was $212.4 million for the third quarter, up 69% year-over-year and up 12% sequentially. Adjusted EBITDAX was $169.4 million for the third quarter, up 32% year-over-year and up 11% sequentially.  Please read “Reconciliation of Adjusted EBITDAX and Adjusted EBITDAX, Unhedged”, included herein.

The following table provides a summary of our sales volumes, average sales prices and certain operating expenses on a per BOE basis for the three and nine months ended September 30, 2018 and 2017, respectively:

 For the Three Months Ended For the Nine Months Ended
 September 30, September 30,
 2018 2017 2018 2017
Sales (MBoe)(1):6,963  5,785  19,855  12,809 
Oil sales (MBbl)3,618  3,184  10,394  6,496 
Natural gas sales (MMcf)11,838  8,953  33,612  21,713 
NGL sales (MBbl)1,372  1,109  3,860  2,695 
Sales (BOE/d)(1):75,680  62,884  72,731  46,921 
Oil sales (Bbl/d)39,323  34,607  38,072  23,794 
Natural gas sales (Mcf/d)128,679  97,311  123,122  79,536 
NGL sales (Bbl/d)14,910  12,059  14,138  9,871 
Average sales prices(2):       
Oil sales (per Bbl)$62.32  $41.48  $59.58  $41.50 
Oil sales with derivative settlements (per Bbl)50.02  42.14  48.23  40.61 
Differential ($/Bbl) to Average NYMEX WTI(7.11) (6.72) (7.21) (7.86)
Natural gas sales (per Mcf)1.95  2.76  1.99  2.91 
Natural gas sales with derivative settlements (per Mcf)2.08  2.84  2.37  2.90 
Differential ($/Mcf) to Average NYMEX Henry Hub(3)(1.20) (0.49) (1.15) (0.45)
NGL sales (per Bbl)(3)24.49  21.74  22.38  21.36 
Average price per BOE40.53  31.26  38.91  30.47 
Average price per BOE with derivative settlements34.35  31.76  33.62  30.00 
Expense per BOE:       
Lease operating expenses$2.91  $2.67  $3.11  $3.25 
Transportation and gathering(3)1.69  2.39  1.47  2.66 
General and administrative expenses5.08  4.97  5.06  6.08 
Cash general and administrative expenses2.58  1.84  2.50  2.43 
Stock-based compensation2.50  3.13  2.56  3.65 
        
Production taxes as a % of Revenue7.7% 9.0% 8.6% 8.5%
            
  1. One BOE is equal to six thousand cubic feet (“Mcf”) of natural gas or one barrel (“Bbl”) of oil or NGL based on an approximate energy equivalency. This is an energy content correlation and does not reflect a value or price relationship between the commodities.
  2. Average prices shown in the table reflect prices both before and after the effects of our settlements of our commodity derivative contracts. Our calculation of such effects includes both gains and losses on settlements for commodity derivatives and amortization of premiums paid or received on options that settled during the period.
  3. As a result of the adoption of ASC 606 - Revenue from Contracts with Customers ("ASC 606") on January 1, 2018, certain costs previously classified as transportation and gathering expenses are presented on a net basis for proceeds expected to be received. For further information, see Note 2 - Adoption of ASC 606 of our Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2018.

Operational Results

Extraction turned its first pad in its Broomfield Development Area to sales starting in early August 2018. This pad consists of ten two-mile laterals with seven of the wells producing from the Niobrara formation and three producing from the Codell formation. The Codell wells produced at a peak 60-day average daily rate of approximately 1,197 BOE/d, 68% of which was crude oil. The Niobrara wells produced at a peak 60-day average daily rate of approximately 1,173 BOE/d, 69% of which was crude oil.

"We had very high expectations for our Broomfield area, and these results exceed even our high expectations," Erickson said. "They came on very strong and are exhibiting a relatively shallow decline profile, which is very encouraging for the long-term deliverability of these wells. With over 12,000 developable acres in this area, all of which will be served by our own Elevation Midstream, this area provides us with a lot of running room along with greater control over the midstream situation. We plan to put one rig in Broomfield drilling full-time starting in early 2019. We've already begun construction on the midstream side and expect to begin construction for the well pads before the end of this year."

Third quarter crude oil volumes of 39,323 Bbl/d increased 14% year-over-year and increased 1% sequentially. Crude oil accounted for approximately 80% of the Company’s total revenues and over 52% of the Company’s total equivalent volumes recorded during the third quarter. Third quarter average net sales volumes were 75,680 BOE/d, an increase of 20% year-over-year and 3% sequentially.

Extraction estimates the limited allocation it received on DCP's midstream system negatively impacted its production by approximately 18 MBOE/d during the third quarter and expects DCP's constraints to impact its full-year 2018 production by over approximately 17 MBOE/d, which is incorporated into its guidance announced on October 18, 2018. The Company expects these constraints on DCP's system to persist with limited relief after DCP's Plant 11 is placed into service during the second quarter of 2019.

For the third-quarter 2018, Extraction’s aggregate drilling, completion, and leasehold capital expenditures totaled $186.7 million, of which $161.0 million was drilling and completion additions and $25.7 million was leasehold and surface acreage additions. This excludes the impact of the decrease in outstanding elections of $16.1 million. In addition, Elevation Midstream, LLC,  our wholly owned midstream subsidiary, incurred $37.5 million of capital expenditures. Elevation's capital budget results in no capital outlay from Extraction and the financing is non-recourse to Extraction's balance sheet.

During the third quarter, Extraction reached total depth on 41 gross (30 net) wells with an average lateral length of approximately 9,700 feet and completed 31 gross (26 net) wells with an average lateral length of approximately 6,500 feet. We turned to sales 71 gross (61 net) wells with an average lateral length of approximately 9,600 feet. Of these 71 wells, 57 are on DCP's midstream system. The Company completed 1,091 total stages during the quarter while pumping approximately 340 million pounds of proppant.

Updated Investor Presentation

Extraction has posted an updated investor presentation to its website. The investor presentation may be viewed on the Company’s website (www.extractionog.com) by selecting “Investors,” then “News and Events,” then “Presentations.”

Third-Quarter 2018 Earnings Conference Call Information

Those who would like to participate can dial into the number listed below approximately 15 minutes before the scheduled conference call time, and enter confirmation number 6475178 when prompted.

   
Date:Tuesday, November 6, 2018 
Time:4:30 PM EST / 2:30 PM MST 
Dial - In Numbers:1-844-229-9561 (Domestic toll-free) 
Conference ID:6475178 
   

To access the audio webcast and related presentation materials, please visit the Investor Relations section of the Company’s website at www.extractionog.com. A replay of the conference call will be available on the website for approximately 30 days following the call.

About Extraction Oil & Gas, Inc.

Denver-based Extraction Oil & Gas, Inc. is an independent energy exploration and development company focused on exploring, developing and producing crude oil, natural gas and NGLs primarily in the Wattenberg Field in the Denver-Julesburg Basin of Colorado. For further information, please visit www.extractionog.com. The Company's common shares are listed for trading on the NASDAQ under the symbol: “XOG.”

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included herein concerning, among other things, planned capital expenditures, increases in oil and gas production, the number of anticipated wells to be drilled or completed after the date hereof, future cash flows and borrowings, pursuit of potential acquisition opportunities, our financial position, business strategy and other plans and objectives for future operations, are forward-looking statements. These forward-looking statements are identified by their use of terms and phrases such as "may," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate," "will," "continue," "potential," "should," "could," and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for us to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the “Risk Factors” section of our most recent Form 10-K and Forms 10-Q filed with the Securities and Exchange Commission and in our other public filings and press releases. These and other factors could cause our actual results to differ materially from those contained in any forward-looking statement.

EXTRACTION OIL & GAS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

 September 30,
2018
 December 31,
2017
ASSETS   
Current Assets:   
Cash and cash equivalents$274,065  $6,768 
Accounts receivable151,731  139,348 
Inventory and prepaid expenses26,676  13,017 
Commodity derivative asset13,226  4,132 
Total Current Assets465,698  163,265 
Property and Equipment (successful efforts method), at cost:   
Oil and gas properties4,544,761  3,825,912 
Less: accumulated depletion, depreciation and amortization(1,029,539) (709,662)
Net oil and gas properties3,515,222  3,116,250 
Gathering systems and facilities63,998  4,889 
Other property and equipment, net of accumulated depreciation37,829  32,429 
Net Property and Equipment3,617,049  3,153,568 
Non-Current Assets:   
Goodwill and other intangible assets, net of accumulated amortization56,446  55,453 
Other non-current assets19,132  12,383 
Total Non-Current Assets75,578  67,836 
Total Assets$4,158,325  $3,384,669 
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current Liabilities:   
Accounts payable and accrued liabilities$200,137  $211,581 
Revenue and production taxes payable175,248  90,249 
Commodity derivative liability143,576  67,428 
Accrued interest payable18,792  23,807 
Asset retirement obligations12,928  6,873 
Total Current Liabilities550,681  399,938 
Non-Current Liabilities:   
Credit facility290,000  90,000 
Senior Notes, net of unamortized debt issuance costs1,132,115  933,361 
Deferred tax liability54,626  42,326 
Commodity derivative liability8,786  17,274 
Other non-current liabilities148,975  126,622 
Total Non-Current Liabilities1,634,502  1,209,583 
    
Total Liabilities2,185,183  1,609,521 
Commitments and Contingencies   
Series A Convertible Preferred Stock, $0.01 par value; 50,000,000 shares authorized; 185,280 issued and outstanding162,813  158,383 
Total Stockholders' Equity1,810,329  1,616,765 
Total Liabilities and Stockholders' Equity$4,158,325  $3,384,669 
 

EXTRACTION OIL & GAS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

 For the Three Months Ended
September 30,
 For the Nine Months Ended
September 30,
 2018 2017 2018 2017
Revenues:       
Oil sales$225,467  $132,075  $619,211  $269,597 
Natural gas sales23,103  24,672  66,991  63,095 
NGL sales33,590  24,114  86,369  57,574 
Total Revenues282,160  180,861  772,571  390,266 
Operating Expenses:       
Lease operating expenses20,283  15,465  61,760  41,626 
Transportation and gathering11,786  13,802  29,284  34,129 
Production taxes21,605  16,290  66,317  33,254 
Exploration expenses11,038  7,181  21,326  24,431 
Depletion, depreciation, amortization and accretion107,315  94,220  310,296  213,483 
Impairment of long lived assets16,166    16,294  675 
(Gain) loss on sale of property and equipment and assets of unconsolidated subsidiary(83,559)   (143,461) 451 
Acquisition transaction expenses      68 
General and administrative expenses35,365  28,741  100,565  77,916 
Total Operating Expenses139,999  175,699  462,381  426,033 
Operating Income (Loss)142,161  5,162  310,190  (35,767)
Other Income (Expense):       
Commodity derivatives gain (loss)(35,913) (37,875) (175,752) 46,423 
Interest expense(20,725) (15,080) (103,229) (33,761)
Other income1,827  891  3,094  1,709 
Total Other Income (Expense)(54,811) (52,064) (275,887) 14,371 
Income (Loss) Before Income Taxes87,350  (46,902) 34,303  (21,396)
Income tax (expense) benefit(22,200) 17,106  (12,300) 7,556 
Net Income (Loss)$65,150  $(29,796) $22,003  $(13,840)
Income (Loss) Per Common Share(1)       
Basic and diluted$0.33  $(0.20) $0.03  $(0.15)
Weighted Average Common Shares Outstanding       
Basic and diluted175,814  171,845  175,269  171,838 
 
  1. For further information, see the reconciliation of Net Income (Loss) to Net Income (Loss) available to common shareholders in Note 10 of our Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2018 and 2017.
        

EXTRACTION OIL & GAS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 For the Three Months Ended
September 30,
 For the Nine Months Ended
September 30,
 2018 2017 2018 2017
Cash flows from operating activities:       
Net income (loss)$65,150  $(29,796) $22,003  $(13,840)
Reconciliation of net income (loss) to net cash provided by operating activities:       
Depletion, depreciation, amortization and accretion107,315  94,220  310,296  213,483 
Abandonment and impairment of unproved properties9,541  1,124  15,463  5,684 
Impairment of long lived assets16,166    16,294  675 
(Gain) loss on sale of property and equipment53    (59,849) 451 
Gain on sale of assets of unconsolidated subsidiary(83,612)   (83,612)  
Amortization of debt issuance costs935  1,469  12,303  3,181 
Deferred rent162  (73) 442  (229)
(Gain) loss on commodity derivatives, including settlements and premiums paid(3,290) 42,222  64,999  (55,316)
Earnings in unconsolidated subsidiaries(843) (266) (1,886) (256)
Distributions from unconsolidated subsidiaries1,058  131  1,684  131 
Make-whole premium expense on 2021 Senior Notes    35,600   
Deferred income tax expense (benefit)22,200  (17,106) 12,300  (7,556)
Stock-based compensation17,419  18,110  50,883  46,707 
Changes in current assets and liabilities:       
Accounts receivable(14,327) (53,863) (9,292) (65,458)
Inventory and prepaid expenses175  (77) (637) (180)
Accounts payable and accrued liabilities(4,532) 4,839  (14,780) 1,653 
Revenue and production taxes payable55,724  21,340  110,603  19,567 
Accrued interest payable(3,619) (5,909) (5,015) (5,553)
Asset retirement expenditures(4,403) (456) (9,437) (1,408)
Net cash provided by operating activities181,272  75,909  468,362  141,736 
Cash flows from investing activities:       
Oil and gas property additions(255,633) (443,595) (774,787) (1,015,700)
Acquired oil and gas properties      (17,225)
Sale of property and equipment  3,155  72,345  5,155 
Gathering systems and facilities additions(25,304) (3,046) (41,359) (7,685)
Other property and equipment additions(9,232) (772) (11,944) (1,923)
Investment in unconsolidated subsidiaries(5,707)   (6,000)  
Distributions from unconsolidated subsidiaries, return of capital  116    116 
Sale of assets of unconsolidated subsidiary83,612    83,612   
Net cash used in investing activities(212,264) (444,142) (678,133) (1,037,262)
Cash flows from financing activities:       
Borrowings under credit facility160,000  250,000  590,000  250,000 
Repayments under credit facility(60,000) (250,000) (390,000) (250,000)
Proceeds from the issuance of 2026 Senior Notes  394,000  739,664  394,000 
Repayments of 2021 Senior Notes    (550,000)  
Make-whole premium paid on 2021 Senior Notes    (35,600)  
Proceeds from issuance of Preferred Units148,500    148,500   
Preferred Unit issuance costs(6,933)   (6,933)  
Repurchase of shares(2,125)   (4,434)  
Payment of employee payroll withholding taxes(331) (2,832) (2,862) (2,832)
Dividends on Series A Preferred Stock(2,721) (2,722) (8,164) (7,680)
Debt issuance costs(48) (3,163) (3,103) (3,273)
Equity issuance costs466      (1,486)
Net cash provided by financing activities236,808  385,283  477,068  378,729 
Increase (decrease) in cash, cash equivalents and restricted cash205,816  17,050  267,297  (516,797)
Cash, cash equivalents and restricted cash at beginning of period68,249  97,089  6,768  630,936 
Cash, cash equivalents and restricted cash at end of the period$274,065  $114,139  $274,065  $114,139 


Supplemental cash flow information:       
Property and equipment included in accounts payable and accrued liabilities$148,156  $130,022  $148,156  $130,022 
Cash paid for interest$25,066  $22,447  $66,673  $44,703 
Accretion of beneficial conversion feature of Series A Preferred Stock$1,515  $1,365  $4,429  $3,992 
Preferred Units commitment fees and dividends paid-in-kind$3,305  $  $3,305  $ 
                

EXTRACTION OIL & GAS, INC.
RECONCILIATION OF ADJUSTED EBITDAX AND ADJUSTED EBITDAX, UNHEDGED
(In thousands)
(Unaudited)

 For the Three Months Ended
September 30,
 For the Nine Months Ended
September 30,
 2018 2017 2018 2017
Reconciliation of Net Income (Loss) to Adjusted EBITDAX:       
Net income (loss)$65,150  $(29,796) $22,003  $(13,840)
Add back:       
Depletion, depreciation, amortization and accretion107,315  94,220  310,296  213,483 
Impairment of long lived assets16,166    16,294  675 
Exploration expenses11,038  7,181  21,326  24,431 
(Gain) loss on sale of property and equipment    (59,902) 451 
Gain on sale of assets of unconsolidated subsidiary(83,559)   (83,559)  
Acquisition transaction expenses      68 
(Gain) loss on commodity derivatives35,913  37,875  175,752  (46,423)
Settlements on commodity derivative instruments(41,009) 3,162  (99,914) (6,022)
Premiums paid for derivatives that settled during the period(1,956) (293) (5,191) 20 
Stock-based compensation expense17,420  18,110  50,883  46,707 
Amortization of debt issuance costs935  1,469  12,303  3,181 
Make-whole premium on 2021 Senior Notes    35,600   
Interest expense19,790  13,611  55,326  30,580 
Income tax expense (benefit)22,200  (17,106) 12,300  (7,556)
Adjusted EBITDAX$169,403  $128,433  $463,517  $245,755 
Deduct:       
Settlements on commodity derivative instruments(41,009) 3,162  (99,914) (6,022)
Premiums paid for derivatives that settled during the period(1,956) (293) (5,191) 20 
Adjusted EBITDAX, Unhedged$212,368  $125,564  $568,622  $251,757 
 

Adjusted EBITDAX and Adjusted EBITDAX, Unhedged are not measures of net income (loss) as determined by United States generally accepted accounting principles (“GAAP”). Adjusted EBITDAX and Adjusted EBITDAX, Unhedged are supplemental non-GAAP financial measures that are used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) adjusted for certain cash and non-cash items, including depletion, depreciation, amortization and accretion, impairment of long lived assets, exploration expenses, (gain) loss on sale of property and equipment and assets of unconsolidated subsidiaries, acquisition transaction expenses, (gain) loss on commodity derivatives, settlements on commodity derivative instruments, premiums paid for derivatives that settled during the period, stock-based compensation expense, amortization of debt issuance costs, make-whole premiums, interest expense, income taxes and non-recurring charges. We define Adjusted EBITDAX, Unhedged as Adjusted EBITDAX adjusted for settlements on commodity derivative instruments and premiums paid for derivative that settled during the period.

Management believes Adjusted EBITDAX and Adjusted EBITDAX, Unhedged are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods or capital structure. We exclude the items listed above from net income (loss) in arriving at Adjusted EBITDAX and Adjusted EBITDAX, Unhedged because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX and Adjusted EBITDAX, Unhedged should not be considered as alternatives to, or more meaningful than, net income (loss) as determined in accordance with GAAP or as an indicator of our operating performance. Certain items excluded from Adjusted EBITDAX and Adjusted EBITDAX, Unhedged are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital, hedging strategy and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDAX and Adjusted EBITDAX, Unhedged. Our computations of Adjusted EBITDAX and Adjusted EBITDAX, Unhedged may not be comparable to other similarly titled measure of other companies. We believe that Adjusted EBITDAX and Adjusted EBITDAX, Unhedged are widely followed measures of operating performance.  A reconciliation of Adjusted EBITDAX and Adjusted EBITDAX, Unhedged and net income (loss) for the three and nine months ended September 30, 2018 and 2017 is provided in the table above. Additionally, our management team believes Adjusted EBITDAX and Adjusted EBITDAX, Unhedged are useful to an investor in evaluating our financial performance because these measures (i) are widely used by investors in the oil and natural gas industry to measure a company’s operating performance without regard to items excluded from the calculation of such term, among other factors; (ii) help investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital structure from our operating structure; and (iii) are used by our management team for various purposes, including as a measure of operating performance, in presentations to our board of directors, as a basis for strategic planning and forecasting.

Investor Contact: Louis Baltimore, [email protected], 720-974-7773
Media Contact: Brian Cain, [email protected], 720-974-7782

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Source: GlobeNewswire (November 6, 2018 - 4:01 PM EST)

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