(MENAFNEditorial) iCrowdNewswire - Aug 15, 2017
HOUSTON —Yuma Energy, Inc. (NYSE American:YUMA) (the "Company" or "Yuma") today announced its financial results for the quarter endedJune 30, 2017.
Second Quarter 2017 Highlights
Net average production was 2,553 Boe/d for the second quarter of 2017, a 39.1 percent increase over the second quarter of 2016. Cash provided by operations was$2,889,407for the six months endedJune 30, 2017, compared to cash used in operations of$2,442,876in the same period in 2016. The Company sold non-core properties inBrazos County, Texasfor$5.5 million(prior to purchase price adjustments) and reduced its debt by$7.5 millionfrom$39.5 millionat the end of the first quarter of 2017 to$32.0 millionat the end of the second quarter of 2017. The Company increased its Permian Basin acreage position to 2,491 acres (2,180 net acres) inYoakum County, Texasto horizontally develop the San Andres Oil Play. This acreage is within the Area of Mutual Interest ("AMI") covering approximately 33,280 acres that was established as part of a joint development agreement entered into earlier this year with two privately held energy firms. Yuma is the operator of the acreage with an 87.5 percent working interest and intends to spud its first joint venture well in 2017, as well as continue to acquire additional acreage within the AMI. Recent Developments
Yuma spud the Weyerhaeuser 14-1 well in Livingston Parish, which is referred to as the Glacier Prospect, onJuly 29, 2017. Drilling is currently at 13,058 feet, with total depth projected to be 15,098 feet, which the Company intends to reach before the end of August. Management Comments
Sam L. Banks, CEO of Yuma Energy, Inc., commented, "During the second quarter we were able to increase our acreage position in the Permian Basin at very attractive prices and look forward to continuing to expand our position in the San Andres horizontal play and spudding our first well there in 2017. In addition, we are excited about our recently spudded well in our Glacier Prospect. We believe our business strategy of generating organic opportunities through the drill bit and increasing our exposure to the Permian Basin will lead to significant shareholder value over time. As can be seen in our first and second quarter results, the merger with Davis has improved our cash flows and financial position and significantly increased our production."
Financial Results
Production
The following table presents the net quantities of oil, natural gas and natural gas liquids produced and sold by the Company for the three and six month periods endedJune 30, 2017and 2016, and the average sales price per unit sold.
Three Months Ended June 30, Six Months Ended June 30,
2017 2016
2017 2016
Production volumes:
Crude oil and condensate (Bbls) 66,242
39,297 142,640
74,015
Natural gas (Mcf) 786,111
646,020 1,685,538
1,046,385
Natural gas liquids (Bbls) 35,092
20,117 68,566
50,379
Total (Boe)(1) 232,353
167,084 492,129
298,792
Average prices realized:
Crude oil and condensate (per Bbl) $47.14
$44.07 $48.65
$37.45
Natural gas (per Mcf) $3.29
$1.95 $3.05
$1.96
Natural gas liquids (per Bbl) $24.05
$17.87 $23.61
$14.16
(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 and six month periods endedJune 30, 2017and 2016.
Three Months Ended June 30, Six Months Ended June 30,
2017 2016
2017 2016
Sales of natural gas and crude oil:
Crude oil and condensate $ 3,122,848
$ 1,731,952 $ 6,938,780
$2,771,640
Natural gas 2,587,968
1,260,500 5,141,410
2,046,110
Natural gas liquids 843,888
359,504 1,618,938
713,138
Total revenues $ 6,554,704
$ 3,351,956 $ 13,699,128
$5,530,888
Expenses
The Company's lease operating expenses ("LOE") and LOE per Boe for the three and six month periods endedJune 30, 2017and 2016, are set forth below:
Three Months Ended June 30, Six Months Ended June 30,
2017 2016
2017 2016
Lease operating expenses $ 1,844,896
$ 597,966 $ 3,542,804
$ 1,227,954
Severance, ad valorem taxes and
marketing 1,214,228
493,113 2,177,584
849,822
Total LOE $ 3,059,124
$ 1,091,079 $ 5,720,388
$ 2,077,776
LOE per Boe $13.17
$6.53 $11.62
$6.95
LOE per Boe without severance,
ad valorem taxes and marketing $7.94
$3.58 $7.20
$4.11
Commodity Derivative Instruments
Commodity derivative instruments open as ofJune 30, 2017are 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 1,098,912
1,725,133 373,906
Price $3.13
$3.00 $3.00
3-way collars
Volume 85,806
- -
Ceiling sold price (call) $3.39
- -
Floor purchased price (put) $3.03
- -
Floor sold price (short put) $2.47
- -
CRUDE OIL (Bbls):
Swaps
Volume 67,191
195,152 156,320
Price $52.24
$53.17 $53.77
3-way collars
Volume 54,289
- -
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., aDelawarecorporation, is an independentHouston-based exploration and production company focused on acquiring, developing and exploring for conventional and unconventional oil and natural gas resources. Historically, the Company's operations have focused on onshore properties located in central and southernLouisianaand southeasternTexaswhere it has a long history of exploration and development activity, and more recently, the Company has entered the Permian Basin. In addition, the Company has non-operated positions in the East Texas Woodbine and the Bakken Shale inNorth Dakota, and operated positions in Kern County, California. Its common stock is listed on the NYSE American under the trading symbol "YUMA."
Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects," "believes," "intends," "anticipates," "plans," "estimates," "potential," "possible," or "probable" or statements that certain actions, events or results "may," "will," "should," or "could" be taken, occur or be achieved. The forward-looking statements include statements about future operations, and estimates of reserve and production volumes. Forward-looking statements are based on current expectations and assumptions and analyses made by the Company in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform with expectations is subject to a number of risks and uncertainties, including but not limited to:the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas); risks and uncertainties involving geology of oil and natural gas deposits; the uncertainty of reserve estimates; revisions to reserve estimates as a result of changes in commodity prices; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather; further declines in oil and natural gas prices; inability of management to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change.The Company's annual report on Form 10-K for the year endedDecember 31, 2016, recent quarterly reports on Form 10-Q, recent current reports on Form 8-K, and other Securities and Exchange Commission filings discuss some of the important risk factors identified that may affect its business, results of operations, and financial condition. The Company undertakes no obligation to revise or update publicly any forward-looking statements, except as required by law.
Yuma Energy, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
2017 2016
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 543,095
$ 3,625,686
Accounts receivable, net of allowance for doubtful accounts:
Trade 4,330,227
4,827,798
Officers and employees 42,955
68,014
Other 1,851,776
1,757,337
Commodity derivative instruments 1,506,706
-
Prepayments 541,965
1,063,418
Other deferred charges 330,022
284,305
Total current assets 9,146,746
11,626,558
OIL AND GAS PROPERTIES (full cost method):
Proved properties 486,055,239
488,723,905
Unproved properties - not subject to amortization 5,585,387
3,656,989
491,640,626 492,380,894
Less: accumulated depreciation, depletion and amortization (416,195,279)
(410,440,433)
Net oil and gas properties 75,445,347
81,940,461
OTHER PROPERTY AND EQUIPMENT:
Land, buildings and improvements 1,600,000
1,600,000
Other property and equipment 2,842,140
7,136,530
4,442,140 8,736,530
Less: accumulated depreciation and amortization (1,329,082)
(5,349,145)
Net other property and equipment 3,113,058
3,387,385
OTHER ASSETS AND DEFERRED CHARGES:
Commodity derivative instruments 1,081,480
-
Deposits 467,592
467,306
Other noncurrent assets 435,810
517,201
Total other assets and deferred charges 1,984,882
984,507
TOTAL ASSETS $ 89,690,033
$ 97,938,911
Yuma Energy, Inc.
CONSOLIDATED BALANCE SHEETS CONTINUED
(Unaudited)
June 30, December 31,
2017 2016
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of debt $ 86,558
$ 599,341
Accounts payable, principally trade 10,782,653
11,009,631
Commodity derivative instruments -
1,340,451
Asset retirement obligations 388,643
376,735
Other accrued liabilities 2,449,304
2,572,680
Total current liabilities 13,707,158
15,898,838
LONG-TERM DEBT 32,000,000
39,500,000
OTHER NONCURRENT LIABILITIES:
Asset retirement obligations 9,639,787
9,819,648
Commodity derivative instruments -
1,215,551
Employee stock awards 30,430
-
Total other noncurrent liabilities 9,670,217
11,035,199
COMMITMENTS AND CONTINGENCIES (Note 14)
EQUITY
Series D convertible preferred stock
($0.001 par value, 7,000,000 authorized, 1,838,927 issued as of June 30, 2017
and 1,776,718 issued as of December 31, 2016, $11.07 per share liquidation
preference) 1,839
1,777
Common stock
($0.001 par value, 100 million shares authorized, 12,558,891 issued as of
June 30, 2017 and 12,201,884 issued as of December 31, 2016) 12,559
12,202
Additional paid-in capital 44,958,379
43,877,563
Treasury stock at cost (11,900 shares as of June 30, 2017 and -0- shares as
of December 31, 2016) (23,270)
-
Accumulated earnings (deficit) (10,636,849)
(12,386,668)
Total equity 34,312,658
31,504,874
TOTAL LIABILITIES AND EQUITY $ 89,690,033
$ 97,938,911
Yuma Energy, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2017 2016
2017 2016
REVENUES:
Sales of natural gas and crude oil $ 6,554,704
$ 3,351,956 $ 13,699,128
$ 5,530,888
EXPENSES:
Lease operating and production costs 3,059,124
1,091,079 5,720,388
2,077,776
General and administrative stock-based
compensation 385,097
1,087,471 436,832
1,284,395
General and administrative other 1,906,629
4,270,733 4,082,631
6,436,247
Depreciation, depletion and amortization 2,763,444
2,044,105 5,904,384
3,832,330
Asset retirement obligation accretion expense 141,454
55,016 280,023
107,075
Impairment of oil and gas properties -
7,700,296 -
17,548,183
Bad debt expense 73,513
12,562 73,513
15,750
Total expenses 8,329,261
16,261,262 16,497,771
31,301,756
LOSS FROM OPERATIONS (1,774,557)
(12,909,306) (2,798,643)
(25,770,868)
OTHER INCOME (EXPENSE):
Net gains (losses) from commodity derivatives 2,138,080
(745,652) 5,694,863
(289,338)
Interest expense (482,285)
(71,130) (978,376)
(113,838)
Gain (loss) on other property and equipment (70,874)
- 484,768
-
Other, net 5,659
13,465 42,067
13,465
Total other income (expense) 1,590,580
(803,317) 5,243,322
(389,711)
INCOME (LOSS) BEFORE INCOME TAXES (183,977)
(13,712,623) 2,444,679
(26,160,579)
Income tax expense (benefit) (20,581)
(29,371) 5,950
(26,769)
NET INCOME (LOSS) (163,396)
(13,683,252) 2,438,729
(26,133,810)
PREFERRED STOCK:
Dividends paid in kind 349,300
325,869 688,910
646,148
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON STOCKHOLDERS $ (512,696)
$ (14,009,121) $ 1,749,819
$ (26,779,958)
INCOME (LOSS) PER COMMON SHARE:
Basic ($0.04)
($1.88) $0.14
($3.60)
Diluted ($0.04)
($1.88) $0.14
($3.60)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING:
Basic 12,235,286
7,442,381 12,223,337
7,448,222
Diluted 12,235,286
7,442,381 12,407,996
7,448,222
Yuma Energy, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended June 30,
2017 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Reconciliation of net income (loss) to net cash provided by (used in)
operating activities:
Net income (loss) $ 2,438,729
$ (26,133,810)
Depreciation, depletion and amortization of property and equipment 5,904,384
3,832,330
Impairment of oil and gas properties -
17,548,183
Amortization of debt issuance costs 172,826
-
Net deferred income tax benefit -
(26,769)
Stock-based compensation expense 436,832
1,284,395
Settlement of asset retirement obligations (227,346)
(17,890)
Accretion of asset retirement obligation 280,023
107,075
Bad debt expense 73,513
15,750
Net (gains) losses from commodity derivatives (5,694,863)
289,338
Gain on sales of fixed assets (556,141)
-
Loss on write-off of abandoned facilities 71,373
-
Gain on write-off of liabilities net of assets (34,835)
-
Changes in assets and liabilities:
Decrease in accounts receivable 426,945
1,273,576
(Increase) decrease in prepaids, deposits and other assets 521,167
269,522
(Decrease) increase in accounts payable and other current and
non-current liabilities (923,200)
(884,576)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,889,407
(2,442,876)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures for oil and gas properties (4,526,587)
(8,858,743)
Proceeds from sale of oil and gas properties 5,400,563
-
Proceeds from sale of other fixed assets 641,556
-
Derivative settlements 550,675
1,059,900
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 2,066,207
(7,798,843)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings -
9,000,000
Net repayments on the senior credit facility (7,500,000)
-
Repayments of borrowings - insurance financing (512,783)
-
Debt issuance costs (2,152)
-
Treasury stock repurchases (23,270)
(389,740)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (8,038,205)
8,610,260
NET DECREASE IN CASH AND CASH EQUIVALENTS (3,082,591)
(1,631,459)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 3,625,686
4,064,094
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 543,095
$ 2,432,635
Supplemental disclosure of cash flow information:
Interest payments (net of interest capitalized) $ 811,042
$ 113,838
Income tax payments $ -
$ -
Supplemental disclosure of significant non-cash activity:
(Increase) decrease in capital expenditures financed by accounts payable $ (386,337)
$ 441,393
SOURCE Yuma Energy, Inc.
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