|
Yuma Energy, Inc. Announces First Quarter 2017 Financial Results
HOUSTON, May 11, 2017 /PRNewswire/ -- Yuma Energy, Inc. (NYSE MKT: YUMA) (the "Company" or "Yuma") today announced its financial results for the quarter ended March 31, 2017.
First Quarter 2017 Highlights
- Net average production was 2,886 Boe/d for the first quarter of 2017, a 99.4 percent increase over the first quarter of 2016, and a 15.5 percent increase over the fourth quarter of 2016.
- Net income was $2,602,125 for the first quarter of 2017, compared to a net loss of $12,450,558 in the first quarter of 2016.
- Cash provided by operating activities was $951,526 for the first quarter of 2017, compared to cash used in operations of $892,311 in the first quarter of 2016.
- Lac Blanc Field, Vermillion Parish, Louisiana – During March 2017, the Company performed workover operations on the SL 18090 #2 well re-establishing production from the Miocene Siphonina D-1 sand (18,700 feet sand). Before the workover the well had been shut-in. Currently, the well is producing approximately 2.1 MMcf/d of natural gas and 40 Bbl/d of oil (1.3 MMcf/d and 28 Bbl/d net).
- The Company recently entered into a joint development agreement covering 33,280 acres in an area of mutual interest ("AMI") with two private companies and it acquired an 87.5% working interest in approximately 2,269 acres (1,985 net acres) in Yoakum County to horizontally develop the San Andres Play in the Permian Basin of west Texas. Yuma is the operator of the joint venture and intends to spud its first joint venture well in 2017, as well as acquire additional acreage within the AMI.
Management Comments
Sam L. Banks, CEO of Yuma Energy, Inc., commented, "We are excited about our Permian Basin acquisition and look forward to expanding our position in the San Andres horizontal play. We are well positioned to execute our business strategy of investing in relatively low-risk and low capital opportunities within our existing inventory and grow shareholder value by organically increasing our inventory in the San Andres play. As can be seen in the first quarter results, the merger with Davis has improved our liquidity and financial position, and nearly doubled our production."
Financial Results
Production
The following table presents the net quantities of oil, natural gas and natural gas liquids produced and sold by the Company for the three month periods ended March 31, 2017 and 2016, and the average sales price per unit sold.
|
Three Months Ended March 31,
|
|
2017
|
|
2016
|
|
Production volumes:
|
|
|
|
|
Crude oil and condensate (Bbls)
|
76,397
|
|
34,718
|
|
Natural gas (Mcf)
|
899,427
|
|
400,365
|
|
Natural gas liquids (Bbls)
|
33,474
|
|
30,262
|
|
Total (Boe) (1)
|
259,776
|
|
131,708
|
|
Average prices realized:
|
|
|
|
|
Crude oil and condensate (per Bbl)
|
$49.95
|
|
$29.95
|
|
Natural gas (per Mcf)
|
$2.84
|
|
$1.96
|
|
Natural gas liquids (per Bbl)
|
$23.15
|
|
$11.69
|
|
|
|
|
|
(1)
|
Barrels of oil equivalent have been calculated on the basis of six thousand cubic feet (Mcf) of natural gas equal to one barrel of oil equivalent (Boe).
|
Revenues
The following table presents the Company's revenues for the three month periods ended March 31, 2017 and 2016.
|
Three Months Ended March 31,
|
|
2017
|
|
2016
|
|
Sales of natural gas and crude oil:
|
|
|
|
|
Crude oil and condensate
|
$ 3,815,932
|
|
$ 1,039,687
|
|
Natural gas
|
2,553,443
|
|
785,610
|
|
Natural gas liquids
|
775,049
|
|
353,635
|
|
Total revenues
|
$ 7,144,424
|
|
$ 2,178,932
|
Expenses
The Company's lease operating expenses ("LOE") and LOE per Boe for the three month periods ended March 31, 2017 and 2016, are set forth below:
|
Three Months Ended March 31,
|
|
2017
|
|
2016
|
|
Lease operating expenses
|
$ 1,697,908
|
|
$ 629,988
|
|
Severance, ad valorem taxes and marketing
|
963,356
|
|
356,709
|
|
Total LOE
|
$ 2,661,264
|
|
$ 986,697
|
|
|
|
|
|
LOE per Boe
|
$10.24
|
|
$7.49
|
|
LOE per Boe without severance, ad valorem taxes and marketing
|
$6.54
|
|
$4.78
|
Commodity Derivative Instruments
Commodity derivative instruments open as of March 31, 2017 are provided below. Natural gas prices are NYMEX Henry Hub prices, and crude oil prices are NYMEX West Texas Intermediate.
|
2017
|
|
2018
|
|
2019
|
|
Settlement
|
|
Settlement
|
|
Settlement
|
|
NATURAL GAS (MMBtu):
|
|
|
|
|
|
|
Swaps
|
|
|
|
|
|
|
Volume
|
1,748,574
|
|
1,451,734
|
|
-
|
|
Price
|
$3.13
|
|
$3.00
|
|
-
|
|
|
|
|
|
|
|
3-way collars
|
|
|
|
|
|
|
Volume
|
132,587
|
|
-
|
|
-
|
|
Ceiling sold price (call)
|
$3.38
|
|
-
|
|
-
|
|
Floor purchased price (put)
|
$3.02
|
|
-
|
|
-
|
|
Floor sold price (short put)
|
$2.47
|
|
-
|
|
-
|
|
|
|
|
|
|
|
CRUDE OIL (Bbls):
|
|
|
|
|
|
|
Swaps
|
|
|
|
|
|
|
Volume
|
105,214
|
|
195,152
|
|
156,320
|
|
Price
|
$52.24
|
|
$53.17
|
|
$53.77
|
|
|
|
|
|
|
|
3-way collars
|
|
|
|
|
|
|
Volume
|
83,023
|
|
-
|
|
-
|
|
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 delivering competitive returns to stockholders by acquiring, developing and exploring for conventional and unconventional oil and natural gas resources. We are committed to conducting our business in a manner that protects the environment and public health while upholding our values of integrity, trust, and open communications in all business activities. Our operations are currently focused on onshore properties located in southern Louisiana, southeastern Texas, the Permian Basin of west Texas, and Kern and Santa Barbara Counties in California. In addition, we have non-operated positions in the East Texas Eagle Ford and Woodbine and the Bakken Shale in North Dakota. Our common stock is traded on the NYSE MKT under the trading symbol "YUMA."
Reincorporation Merger and Davis Merger
On October 26, 2016, Yuma Energy, Inc., a California corporation ("Yuma California"), merged with and into the Company resulting in the reincorporation from California to Delaware (the "Reincorporation Merger"). In connection with the Reincorporation Merger, Yuma California converted each outstanding share of its 9.25% Series A Cumulative Redeemable Preferred Stock (the "Yuma California Series A Preferred Stock"), into 35 shares of its common stock (the "Yuma California Common Stock"), and then each share of Yuma California Common Stock was exchanged for one-twentieth of one share of common stock of the Company (the "common stock"). Immediately after the Reincorporation Merger on October 26, 2016, a wholly owned subsidiary of the Company merged (the "Davis Merger") with and into Davis, in exchange for approximately 7,455,000 shares of common stock and 1,754,179 shares of Series D Convertible preferred stock (the "Series D preferred stock"). The Series D preferred stock had an aggregate liquidation preference of approximately $19.4 million and a conversion rate of $11.0741176 per share at the closing of the Davis Merger, and will be paid dividends in the form of additional shares of Series D preferred stock at a rate of 7% per annum. As a result of the Davis Merger, the former holders of Davis common stock received approximately 61.1% of the then outstanding common stock of the Company and thus acquired voting control. Although the Company was the legal acquirer, for financial reporting purposes the Davis Merger was accounted for as a reverse acquisition of the Company by Davis.
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 SEC 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)
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
2017
|
|
2016
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
Cash and cash equivalents
|
$ 2,927,494
|
|
$ 3,625,686
|
|
Accounts receivable, net of allowance for doubtful accounts:
|
|
|
|
|
Trade
|
5,485,155
|
|
4,827,798
|
|
Officers and employees
|
60,461
|
|
68,014
|
|
Other
|
1,903,274
|
|
1,757,337
|
|
Commodity derivative instruments
|
478,242
|
|
-
|
|
Prepayments
|
757,111
|
|
1,063,418
|
|
Other deferred charges
|
309,789
|
|
284,305
|
|
|
|
|
|
Total current assets
|
11,921,526
|
|
11,626,558
|
|
|
|
|
|
OIL AND GAS PROPERTIES (full cost method):
|
|
|
|
|
Proved properties
|
490,389,144
|
|
488,723,905
|
|
Unproved properties - not subject to amortization
|
5,473,755
|
|
3,656,989
|
|
|
|
|
|
495,862,899
|
|
492,380,894
|
|
Less: accumulated depreciation, depletion and amortization
|
(413,471,472)
|
|
(410,440,433)
|
|
|
|
|
|
Net oil and gas properties
|
82,391,427
|
|
81,940,461
|
|
|
|
|
|
OTHER PROPERTY AND EQUIPMENT:
|
|
|
|
|
Land, buildings and improvements
|
1,600,000
|
|
1,600,000
|
|
Other property and equipment
|
7,034,591
|
|
7,136,530
|
|
8,634,591
|
|
8,736,530
|
|
Less: accumulated depreciation and amortization
|
(5,436,568)
|
|
(5,349,145)
|
|
|
|
|
|
Net other property and equipment
|
3,198,023
|
|
3,387,385
|
|
|
|
|
|
OTHER ASSETS AND DEFERRED CHARGES:
|
|
|
|
|
Commodity derivative instruments
|
674,431
|
|
-
|
|
Deposits
|
467,592
|
|
467,306
|
|
Other noncurrent assets
|
486,326
|
|
517,201
|
|
|
|
|
|
Total other assets and deferred charges
|
1,628,349
|
|
984,507
|
|
|
|
|
|
TOTAL ASSETS
|
$ 99,139,325
|
|
$ 97,938,911
|
|
|
|
|
|
Yuma Energy, Inc.
|
|
|
CONSOLIDATED BALANCE SHEETS – CONTINUED
|
|
(Unaudited)
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
2017
|
|
2016
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
Current maturities of debt
|
$ 344,315
|
|
$ 599,341
|
|
Accounts payable, principally trade
|
11,375,720
|
|
11,009,631
|
|
Commodity derivative instruments
|
250,592
|
|
1,340,451
|
|
Asset retirement obligations
|
383,830
|
|
376,735
|
|
Other accrued liabilities
|
3,179,182
|
|
2,572,680
|
|
|
|
|
|
Total current liabilities
|
15,533,639
|
|
15,898,838
|
|
|
|
|
|
LONG-TERM DEBT
|
39,500,000
|
|
39,500,000
|
|
|
|
|
|
OTHER NONCURRENT LIABILITIES:
|
|
|
|
|
Asset retirement obligations
|
9,951,122
|
|
9,819,648
|
|
Commodity derivative instruments
|
-
|
|
1,215,551
|
|
|
|
|
|
Total other noncurrent liabilities
|
9,951,122
|
|
11,035,199
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES (Note 13)
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Preferred stock
|
|
|
|
|
Series D Convertible ($.001 par value, 7,000,000 authorized, 1,807,385 issued as of March 31, 2017 and 1,776,718 issued as of December 31, 2016)
|
1,808
|
|
1,777
|
|
Common stock
|
|
|
|
|
($.001 par value, 100 million shares authorized, 12,211,256 issued as of March 31, 2017 and 12,201,884 issued as of December 31, 2016)
|
12,211
|
|
12,202
|
|
Paid-in capital
|
44,268,868
|
|
43,877,563
|
|
Treasury stock at cost (1,109 shares as of March 31, 2017 and -0- shares as of December 31, 2016)
|
(4,170)
|
|
-
|
|
Accumulated earnings (deficit)
|
(10,124,153)
|
|
(12,386,668)
|
|
|
|
|
|
Total equity
|
34,154,564
|
|
31,504,874
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY
|
$ 99,139,325
|
|
$ 97,938,911
|
|
|
|
|
|
Yuma Energy, Inc.
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
|
|
Three Months Ended March 31,
|
|
2017
|
|
2016
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
Sales of natural gas and crude oil
|
$ 7,144,424
|
|
$ 2,178,932
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
Lease operating and production costs
|
2,661,264
|
|
986,697
|
|
General and administrative – stock-based compensation
|
51,735
|
|
196,924
|
|
General and administrative – other
|
2,176,002
|
|
2,165,514
|
|
Depreciation, depletion and amortization
|
3,140,940
|
|
1,788,225
|
|
Asset retirement obligation accretion expense
|
138,569
|
|
52,059
|
|
Impairment of oil and gas properties
|
-
|
|
9,847,887
|
|
Gain on asset sales
|
(555,642)
|
|
-
|
|
Other
|
-
|
|
3,188
|
|
Total expenses
|
7,612,868
|
|
15,040,494
|
|
|
|
|
|
LOSS FROM OPERATIONS
|
(468,444)
|
|
(12,861,562)
|
|
|
|
|
|
OTHER INCOME (EXPENSE):
|
|
|
|
|
Net gains from commodity derivatives
|
3,556,783
|
|
456,314
|
|
Interest expense
|
(496,091)
|
|
(42,708)
|
|
Other, net
|
36,408
|
|
-
|
|
Total other income (expense)
|
3,097,100
|
|
413,606
|
|
|
|
|
|
INCOME (LOSS) BEFORE INCOME TAXES
|
2,628,656
|
|
(12,447,956)
|
|
|
|
|
|
Income tax expense
|
26,531
|
|
2,602
|
|
|
|
|
|
NET INCOME (LOSS)
|
2,602,125
|
|
(12,450,558)
|
|
|
|
|
|
PREFERRED STOCK:
|
|
|
|
|
Dividends paid in kind
|
339,610
|
|
320,279
|
|
|
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$ 2,262,515
|
|
$ (12,770,837)
|
|
|
|
|
|
INCOME (LOSS) PER COMMON SHARE:
|
|
|
|
|
Basic
|
$0.19
|
|
($1.71)
|
|
Diluted
|
$0.16
|
|
($1.71)
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
Basic
|
12,211,256
|
|
7,454,062
|
|
Diluted
|
14,056,170
|
|
7,454,062
|
|
|
|
|
|
Yuma Energy, Inc.
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
Three Months Ended March 31,
|
|
2017
|
|
2016
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
Reconciliation of net loss to net cash provided by (used in) operating activities:
|
|
|
|
|
Net loss
|
$ 2,602,125
|
|
$ (12,450,558)
|
|
Depreciation, depletion and amortization of property and equipment
|
3,140,940
|
|
1,788,225
|
|
Impairment of oil and gas properties
|
-
|
|
9,847,887
|
|
Amortization of debt issuance costs
|
81,843
|
|
-
|
|
Net deferred income tax benefit
|
-
|
|
2,602
|
|
Stock-based compensation expense
|
51,735
|
|
196,924
|
|
Settlement of asset retirement obligations
|
-
|
|
(12,324)
|
|
Accretion of asset retirement obligation
|
138,569
|
|
52,059
|
|
Bad debt expense
|
-
|
|
3,188
|
|
Net gains from commodity derivatives
|
(3,556,783)
|
|
(456,314)
|
|
Gain on sales of fixed assets
|
(555,642)
|
|
-
|
|
Changes in assets and liabilities:
|
|
|
|
|
(Increase) decrease in accounts receivable
|
(795,740)
|
|
1,445,512
|
|
Decrease in prepaids, deposits and other assets
|
306,021
|
|
232,729
|
|
Decrease in accounts payable and other current and non-current liabilities
|
(461,542)
|
|
(1,542,241)
|
|
|
|
|
|
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
951,526
|
|
(892,311)
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
Capital expenditures for oil and gas properties
|
(2,053,826)
|
|
(4,663,114)
|
|
Proceeds from sale of oil and gas properties and other fixed assets
|
641,056
|
|
-
|
|
Derivative settlements
|
98,700
|
|
535,488
|
|
|
|
|
|
NET CASH USED IN INVESTING ACTIVITIES
|
(1,314,070)
|
|
(4,127,626)
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds from borrowings
|
-
|
|
4,000,000
|
|
Repayments of borrowings
|
(255,026)
|
|
-
|
|
Debt issuance costs
|
(76,452)
|
|
-
|
|
Treasury stock repurchases
|
(4,170)
|
|
-
|
|
|
|
|
|
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
(335,648)
|
|
4,000,000
|
|
|
|
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
(698,192)
|
|
(1,019,937)
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
3,625,686
|
|
4,064,094
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
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$ 2,927,494
|
|
$ 3,044,157
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
Interest payments (net of interest capitalized)
|
$ 264,542
|
|
$ 42,709
|
|
Income tax payments
|
$ -
|
|
$ -
|
|
|
|
|
|
Supplemental disclosure of significant non-cash activity:
|
|
|
|
|
(Increase) decrease in capital expenditures financed by accounts payable
|
$ (1,434,132)
|
|
$ (1,613,607)
|
|
|
|
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/yuma-energy-inc-announces-first-quarter-2017-financial-results-300456466.html
SOURCE Yuma Energy, Inc.
Source: PR Newswire
(May 11, 2017 - 4:11 PM EDT)
News by QuoteMedia
www.quotemedia.com
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