FORT WORTH, Texas, Nov. 13, 2017 /PRNewswire/ -- Lonestar Resources US, Inc. (NASDAQ: LONE) (including its subsidiaries, "Lonestar," "we," "us," "our" or the "Company") reported today its financial and operating results for the three months ended September 30, 2017.
THIRD QUARTER HIGHLIGHTS
Lonestar's Chief Executive Officer, Frank D. Bracken, III, stated, "The third quarter results represent a significant step forward for Lonestar. Our 3Q17 results are the first results that fully reflect the positive impact of our Acquisitions, which have brought significant scale to our business, as reflected in our dramatically improved cash margins. Moreover, I applaud our operations team, who have quickly and proactively assumed control of operations, and associated lease operating expenses. Our ability to reduce costs has added significant value to the Acquisitions."
Bracken further commented, "On an annualized basis, our Adjusted EBITDAX increased sequentially from $50.8 million in 2Q17 to $81.2 million in 3Q17, driven by significant growth in production, most particularly oil production while keeping our cash expenses in check. The growth in our third quarter results will serve as a platform for continued in 2018. We forecast that 2018 production will range between 10,000 to 10,700 Boe/d and we currently anticipate that Adjusted EBITDAX will total between $100 and $110 million. Importantly, we expect to achieve this significant growth in production and EBITDAX while also significantly enhancing our credit metrics. We currently anticipate that Debt / EBITDAX will improve to between 2.7x and 2.9x by year-end 2018."
FINANCIAL UPDATE
OPERATIONS UPDATE
EAGLE FORD SHALE TREND- WESTERN REGION
EAGLE FORD SHALE TREND- CENTRAL REGION
EAGLE FORD SHALE TREND- EASTERN REGION
RECENT ACQUISITIONS
Lonestar Resources US Inc. | |||||||||||||||
Fourth Quarter and Full Year 2018 Guidance | |||||||||||||||
4Q171 |
2018 | ||||||||||||||
Low |
High |
Low |
High | ||||||||||||
Well Activity 1 |
|||||||||||||||
Drilled (Net) |
1.8 |
1.8 |
14.5 |
15.6 | |||||||||||
Onstream (Net) |
4.0 |
4.0 |
16.3 |
17.4 | |||||||||||
Daily Production Volumes |
|||||||||||||||
Crude oil (Bbls/d) |
5,325 |
5,400 |
6,500 |
6,850 | |||||||||||
NGLs (Bbls/d) |
150 |
1,200 |
1,500 |
1,675 | |||||||||||
Natural gas (Mcf/d) |
7,050 |
7,500 |
12,000 |
13,000 | |||||||||||
Total (Boe/d) |
7,650 |
7,850 |
10,000 |
10,700 | |||||||||||
Wellhead Differentials |
|||||||||||||||
Crude Oil |
+$1.50 |
+$2.00 |
+$0.00 |
+$0.50 | |||||||||||
NGLs |
30% |
33% |
31% |
35% | |||||||||||
Natural gas |
$ |
(0.30) |
$ |
(0.27) |
$ |
(0.20) |
$ |
(0.20) | |||||||
Expenses |
|||||||||||||||
LOE per Boe |
$ |
(6.75) |
$ |
(7.00) |
$ |
(5.50) |
$ |
(6.50) | |||||||
Taxes per Boe |
$ |
(2.40) |
$ |
(2.55) |
$ |
(2.40) |
$ |
(2.55) | |||||||
G&A per Boe |
$ |
(3.60) |
$ |
(3.75) |
$ |
(2.80) |
$ |
(3.00) | |||||||
Drilling & Completion Budget |
|||||||||||||||
Capital Expenditures |
$ |
17.0 |
$ |
18.0 |
$ |
95.0 |
$ |
100.0 | |||||||
Adjusted EBITDAX |
|||||||||||||||
EBITDAX 2 |
$ |
21.2 |
$ |
22.0 |
$ |
100.0 |
$ |
110.0 |
1 Cyclone #26H & #27H producing October 1st / Burns Ranch B#1H & B#2H producing December 1st |
2 Assumes WTI crude oil price of $55.00/bbl and NYMEX Henry Hub price of $3.00/MMBtu for 2018 |
CONFERENCE CALL DETAILS
Lonestar will host a live conference call on Tuesday, November 14, 2017 at 8:00 AM CST to discuss the third quarter 2017 results and operational highlights.
To access the conference call, participants should dial:
USA: 800-915-4731
International: +1 212-231-2900
A playback of the conference call will be available on the Investor Relations section of Company's website beginning approximately November 15, 2017. The playback will be available for approximately 2 weeks.
ABOUT LONESTAR RESOURCES US, INC.
Lonestar is an independent oil and natural gas company, focused on the development, production and acquisition of unconventional oil, natural gas liquids ("NGLs") and natural gas properties in the Eagle Ford Shale in Texas, where we have accumulated approximately 72,244 gross (57,172 net) acres in what we believe to be the formation's crude oil and condensate windows, as of September 30, 2017. For more information, please visit www.lonestarresources.com.
CAUTIONARY & FORWARD LOOKING STATEMENTS
Lonestar Resources US Inc. cautions that this press release contains forward-looking statements, including, but not limited to; Lonestar's execution of its growth strategies; growth in Lonestar's leasehold, reserves and asset value; and Lonestar's ability to create shareholder value. These statements involve substantial known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: volatility of oil, natural gas and NGL prices, and potential write-down of the carrying values of crude oil and natural gas properties; inability to successfully replace proved producing reserves; substantial capital expenditures required for exploration, development and exploitation projects; potential liabilities resulting from operating hazards, natural disasters or other interruptions; risks related using the latest available horizontal drilling and completion techniques; uncertainties tied to lengthy period of development of identified drilling locations; unexpected delays and cost overrun related to the development of estimated proved undeveloped reserves; concentration risk related to properties, which are located primarily in the Eagle Ford Shale of South Texas; loss of lease on undeveloped leasehold acreage that may result from lack of development or commercialization; inaccuracies in assumptions made in estimating proved reserves; our limited control over activities in properties Lonestar does not operate; potential inconsistency between the present value of future net revenues from our proved reserves and the current market value of our estimated oil and natural gas reserves; risks related to derivative activities; losses resulting from title deficiencies; risks related to health, safety and environmental laws and regulations; additional regulation of hydraulic fracturing; reduced demand for crude oil, natural gas and NGLs resulting from conservation measures and technological advances; inability to acquire adequate supplies of water for our drilling operations or to dispose of or recycle the used water economically and in an environmentally safe manner; climate change laws and regulations restricting emissions of "greenhouse gases" that may increase operating costs and reduce demand for the crude oil and natural gas; fluctuations in the differential between benchmark prices of crude oil and natural gas and the reference or regional index price used to price actual crude oil and natural gas sales; and the other important factors discussed under the caption "Risk Factors" in our on our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or the SEC, on March 23, 2017 our Quarterly Reports on Form 10-Q filed with the SEC, as well as other documents that we may file from time to time with the SEC. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Estimates of reserves in this press release are based on economic assumptions with regard to commodity prices that differ from the prices required by the SEC (historical 12 month average) to be used in calculating reserves estimates prepared in accordance with SEC definitions and guidelines. In addition, reserve engineering is a complex and subjective process of estimating underground accumulations of oil and natural gas that cannot be measured in an exact way and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. The estimates of reserves in this press release were prepared by the Company's internal reserve engineers and are based on various assumptions, including assumptions related to oil and natural gas prices as discussed above, drilling and operating expenses, capital expenditures, taxes and availability of funds and are subject to confirmation and revision from the Company's independent reserve engineering firm. The Company's internal estimates of reserves may not be indicative of or may differ materially from the year-end estimates of the Company's reserves prepared by a third party as a result of the SEC pricing and other assumptions employed by an independent reserve engineering firm. Investors are urged to consider closely the disclosure in the Company's filings with the SEC, which you can obtain from the SEC's website at www.sec.gov.
(Financial Statements to Follow)
Lonestar Resources US Inc. | ||||||
Consolidated Balance Sheets | ||||||
(In thousands, except share and per share data) | ||||||
September 30, |
December 31, | |||||
Assets |
(Unaudited) |
|||||
Current assets |
||||||
Cash and cash equivalents |
$ |
4,812 |
$ |
6,068 | ||
Accounts receivable: |
||||||
Oil, natural gas liquid and natural gas sales |
10,398 |
4,680 | ||||
Joint interest owners and other, net |
965 |
867 | ||||
Related parties |
245 |
847 | ||||
Derivative financial instruments |
3,121 |
1,730 | ||||
Prepaid expenses and other |
5,709 |
2,631 | ||||
Total current assets |
25,250 |
16,823 | ||||
Oil and gas properties, net, using the successful efforts method of accounting |
552,919 |
439,228 | ||||
Other property and equipment, net |
12,432 |
1,421 | ||||
Derivative financial instruments |
773 |
? | ||||
Other noncurrent assets |
3,796 |
1,561 | ||||
Restricted certificates of deposit |
76 |
76 | ||||
Total assets |
$ |
595,246 |
$ |
459,109 |
Lonestar Resources US Inc. | ||||||
Consolidated Balance Sheets (continued) | ||||||
(In thousands, except share and per share data) | ||||||
September 30, |
December 31, | |||||
Liabilities and Stockholders' Equity |
(Unaudited) |
|||||
Current liabilities |
||||||
Accounts payable |
$ |
12,386 |
$ |
14,894 | ||
Accounts payable ? related parties |
108 |
1,135 | ||||
Oil, natural gas liquid and natural gas sales payable |
7,521 |
3,568 | ||||
Accrued liabilities |
22,365 |
9,947 | ||||
Accrued liabilities ? related parties |
78 |
224 | ||||
Derivative financial instruments |
1,991 |
2,985 | ||||
Total current liabilities |
44,449 |
32,753 | ||||
Long-term debt |
286,398 |
204,122 | ||||
Long-term debt - related parties |
? |
3,400 | ||||
Deferred tax liability |
21,977 |
38,020 | ||||
Other non-current liabilities |
6,241 |
6,052 | ||||
Equity warrant liability |
439 |
1,565 | ||||
Equity warrant liability - related parties |
834 |
2,994 | ||||
Asset retirement obligations |
5,097 |
2,683 | ||||
Derivative financial instruments |
2,672 |
1,125 | ||||
Total liabilities |
368,107 |
292,714 | ||||
Commitments and contingencies |
||||||
Mezzanine equity |
||||||
Series A-2 convertible participating preferred stock, $0.001 par value, 76,577 issued and outstanding at September 30, 2017 and 0 issued and outstanding at December 31, 2016 |
74,712 |
? | ||||
Stockholders' equity |
||||||
Class A voting common stock, $0.001 par value, 100,000,000 shares authorized, 21,822,015 issued and outstanding at September 30, 2017 and December 31, 2016, respectively |
142,652 |
142,652 | ||||
Class B non-voting common stock, $0.001 par value, 5,000 shares authorized, 2,500 issued and outstanding at September 30, 2017 and December 31, 2016, respectively |
? |
? | ||||
Series A-1 convertible participating preferred stock, $0.001 par value and Series B convertible participating preferred stock, $0.001 par value, 5,543 shares and 2,684,632 shares issued and outstanding at September 30, 2017, respectively, 0 and 0 issued and outstanding at December 31, 2016, respectively |
3 |
? | ||||
Additional paid-in capital |
100,146 |
87,260 | ||||
Accumulated deficit |
(90,374) |
(63,517) | ||||
Total stockholders' equity |
152,427 |
166,395 | ||||
Total liabilities and stockholders' equity |
$ |
595,246 |
$ |
459,109 |
Lonestar Resources US Inc. | |||||||||||
Consolidated Statements of Operations & Comprehensive Loss | |||||||||||
(In thousands, except share and per share data) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||
September 30, |
September 30, | ||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||
Revenues |
|||||||||||
Oil sales |
$ |
23,162 |
$ |
12,285 |
$ |
52,742 |
$ |
36,404 | |||
Natural gas sales |
1,890 |
2,190 |
5,072 |
5,448 | |||||||
Natural gas liquid sales |
1,831 |
1,063 |
4,820 |
2,685 | |||||||
Total revenues |
26,883 |
15,538 |
62,634 |
44,537 | |||||||
Costs and expenses |
|||||||||||
Lease operating and gas gathering |
4,515 |
4,006 |
10,992 |
12,764 | |||||||
Production, ad valorem, and severance taxes |
1,541 |
907 |
3,656 |
3,046 | |||||||
Rig standby expense |
61 |
364 |
61 |
2,261 | |||||||
Depletion, depreciation, and amortization |
15,891 |
10,665 |
40,527 |
38,301 | |||||||
Accretion of asset retirement obligations |
38 |
53 |
96 |
160 | |||||||
Loss (gain) on sale of oil and gas properties |
119 |
53 |
466 |
(1,478) | |||||||
Impairment of oil and gas properties |
? |
29,144 |
27,081 |
31,082 | |||||||
Stock-based compensation |
346 |
122 |
985 |
313 | |||||||
General and administrative |
2,298 |
2,870 |
7,940 |
8,501 | |||||||
Acquisition costs |
337 |
? |
3,063 |
? | |||||||
Other (income) expense |
(4) |
1 |
(62) |
1,045 | |||||||
Total costs and expenses |
25,142 |
48,185 |
94,805 |
95,995 | |||||||
Income (loss) from operations |
1,741 |
(32,647) |
(32,171) |
(51,458) | |||||||
Other income (expense) |
|||||||||||
Interest expense |
(5,031) |
(5,751) |
(15,448) |
(16,961) | |||||||
Gain on disposal of bonds |
? |
29,363 |
? |
29,363 | |||||||
Amortization of finance costs |
(934) |
(1,594) |
(4,368) |
(2,683) | |||||||
Unrealized gain (loss) on warrants |
402 |
(611) |
3,286 |
(611) | |||||||
Gain (loss) on derivative financial instruments |
(7,657) |
1,664 |
6,505 |
(3,405) | |||||||
Total other income (expense), net |
(13,220) |
23,071 |
(10,025) |
5,703 | |||||||
Loss before income taxes |
(11,479) |
(9,576) |
(42,196) |
(45,755) | |||||||
Income tax benefit (expense) |
4,718 |
(1,684) |
15,339 |
10,354 | |||||||
Net loss |
(6,761) |
(11,260) |
(26,857) |
(35,401) | |||||||
Preferred stock dividends |
(1,824) |
? |
(2,120) |
? | |||||||
Net loss attributable to common stockholders |
(8,585) |
(11,260) |
(28,977) |
(35,401) | |||||||
Earnings per share: |
|||||||||||
Basic |
$ |
(0.39) |
$ |
(1.44) |
$ |
(1.33) |
$ |
(4.64) | |||
Diluted |
$ |
(0.39) |
$ |
(1.44) |
$ |
(1.33) |
$ |
(4.64) | |||
Weighted Average Shares Outstanding - basic |
21,822,015 |
7,842,586 |
21,822,015 |
7,629,896 | |||||||
Weighted Average Shares Outstanding - diluted |
21,822,015 |
7,842,586 |
21,822,015 |
7,629,896 | |||||||
Comprehensive loss: |
|||||||||||
Net loss |
$ |
(6,761) |
$ |
(11,260) |
$ |
(26,857) |
$ |
(35,401) | |||
Foreign currency translation adjustments |
? |
(13) |
? |
(29) | |||||||
Comprehensive loss |
$ |
(6,761) |
$ |
(11,273) |
$ |
(26,857) |
$ |
(35,430) |
Lonestar Resources US Inc. | ||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||
(In thousands) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||
September 30, |
September 30, | |||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||
Operating activities |
||||||||||||
Net loss |
$ |
(6,761) |
$ |
(11,260) |
$ |
(26,857) |
$ |
(35,401) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||||||
Loss (gain) on disposal of oil and gas properties |
? |
53 |
? |
(866) | ||||||||
Accretion of asset retirement obligations |
38 |
52 |
96 |
160 | ||||||||
Depreciation, depletion, and amortization |
15,891 |
10,665 |
40,527 |
38,301 | ||||||||
Stock-based compensation |
346 |
122 |
985 |
313 | ||||||||
Deferred taxes |
(5,058) |
1,696 |
(16,043) |
(10,432) | ||||||||
Loss (gain) on disposal of bonds |
? |
(29,363) |
? |
(29,363) | ||||||||
(Gain) losses on derivative financial instruments |
7,657 |
(1,664) |
(6,505) |
3,405 | ||||||||
Settlements of derivative financial instruments |
2,212 |
6,022 |
4,894 |
24,322 | ||||||||
Impairment of oil and gas properties |
? |
29,144 |
27,081 |
31,082 | ||||||||
Non-cash interest expense |
940 |
1,127 |
4,375 |
1,677 | ||||||||
Unrealized (gain) loss on warrants |
(402) |
611 |
(3,286) |
611 | ||||||||
Changes in operating assets and liabilities: |
||||||||||||
Accounts receivable |
(3,906) |
1,683 |
(5,214) |
865 | ||||||||
Prepaid expenses and other assets |
(576) |
(2,190) |
(3,559) |
(1,961) | ||||||||
Accounts payable and accrued expenses |
(2,113) |
4,003 |
11,973 |
(4,479) | ||||||||
Net cash provided by operating activities |
8,268 |
10,701 |
28,467 |
18,234 | ||||||||
Investing activities |
||||||||||||
Acquisition of oil and gas properties |
(853) |
(399) |
(109,031) |
(3,115) | ||||||||
Development of oil and gas properties |
(19,167) |
(5,877) |
(56,918) |
(24,856) | ||||||||
Proceeds from sales of oil and gas properties |
? |
? |
? |
2,720 | ||||||||
Purchases of other property and equipment |
(10,058) |
? |
(11,580) |
(202) | ||||||||
Net cash used in investing activities |
(30,078) |
(6,276) |
(177,529) |
(25,453) | ||||||||
Financing activities |
||||||||||||
Proceeds from borrowings and related party borrowings |
26,909 |
40,214 |
102,988 |
63,714 | ||||||||
Payments on borrowings and related party borrowings |
(8,004) |
(43,789) |
(27,504) |
(54,789) | ||||||||
Proceeds from sale of preferred stock |
? |
? |
77,800 |
? | ||||||||
Cost to issue equity |
1,297 |
? |
(2,790) |
? | ||||||||
Payments of debt issuance costs |
(148) |
? |
(2,685) |
? | ||||||||
Changes in other notes payable |
? |
6 |
(3) |
(9) | ||||||||
Net cash provided by financing activities |
20,054 |
(3,569) |
147,806 |
8,916 | ||||||||
Effect of exchange rate changes on cash and cash equivalents |
? |
(13) |
? |
(29) | ||||||||
Increase in cash and cash equivalents |
(1,756) |
843 |
(1,256) |
1,668 | ||||||||
Cash and cash equivalents, beginning of the period |
6,568 |
5,147 |
6,068 |
4,322 | ||||||||
Cash and cash equivalents, end of the period |
$ |
4,812 |
$ |
5,990 |
$ |
4,812 |
$ |
5,990 | ||||
Supplemental information: |
||||||||||||
Net cash used by operating activities: |
||||||||||||
Cash paid for taxes |
$ |
225 |
$ |
? |
$ |
2,465 |
$ |
? | ||||
Cash paid for interest expense |
1,298 |
3,718 |
11,060 |
14,095 | ||||||||
Non-cash investing and financing activities: |
||||||||||||
Preferred stock issued for asset acquisition |
$ |
? |
$ |
? |
$ |
10,795 |
$ |
? | ||||
Cost to issue equity included in accounts payable |
? |
? |
? |
5,500 |
NON-GAAP FINANCIAL MEASURES (Unaudited)
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is not a measure of net income as determined by GAAP. Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of the Company's consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDAX as net (loss) income before depreciation, depletion, amortization and accretion, exploration costs, non-recurring costs, (gain) loss on sales of oil and natural gas properties, impairment of oil and gas properties, stock-based compensation, interest expense, income tax (benefit) expense, rig standby expense, other income (expense) and unrealized (gain) loss on derivative financial instruments and unrealized (gain) loss on warrants.
Management believes Adjusted EBITDAX provides useful information to investors because it assists investors in the evaluation of the Company's operating performance and comparison of the results of the Company's operations from period to period without regard to its financing methods or capital structure. The Company excludes the items listed above from net income in arriving at Adjusted EBITDAX to eliminate the impact of certain non-cash items or because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDAX. The Company's computations of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
The following table presents a reconciliation of Adjusted EBITDAX to the GAAP financial measure of net income (loss) for each of the periods indicated.
Three Months Ended |
Nine Months Ended | |||||||||||
($ in thousands) |
2017 |
2016 |
2017 |
2016 | ||||||||
Net Loss |
$ |
(8,585) |
$ |
(11,260) |
$ |
(28,977) |
$ |
(35,401) | ||||
Income tax benefit |
(4,718) |
1,684 |
(15,339) |
(10,354) | ||||||||
Interest expense (1) |
7,789 |
7,345 |
21,936 |
19,644 | ||||||||
Exploration expense |
? |
10 |
205 |
11 | ||||||||
Depletion, depreciation, amortization and accretion |
15,929 |
10,718 |
40,623 |
38,461 | ||||||||
EBITDAX |
10,415 |
8,497 |
18,448 |
12,361 | ||||||||
Rig standby expense (2) |
61 |
364 |
61 |
2,261 | ||||||||
Non-recurring costs (3) |
337 |
607 |
3,464 |
1,252 | ||||||||
Stock-based compensation |
346 |
122 |
985 |
313 | ||||||||
Loss (gain) on sale of oil and gas properties |
119 |
53 |
466 |
(1,478) | ||||||||
Impairment of oil and gas properties |
? |
29,144 |
27,081 |
31,082 | ||||||||
Unrealized (gain) loss on derivative financial instruments |
9,437 |
4,600 |
(2,672) |
26,205 | ||||||||
Unrealized gain on warrants |
(402) |
611 |
(3,286) |
611 | ||||||||
Other (income) expense |
(4) |
(29,362) |
(54) |
(28,315) | ||||||||
Adjusted EBITDAX |
$ |
20,309 |
$ |
14,636 |
$ |
44,493 |
$ |
44,292 |
1 Interest expense also includes Amortization of finance costs and Dividends paid on Series A Preferred Stock |
2 Represents a non-recurring cost associated with a rig contract that expired in July 2016 |
3 Non-recurring costs consists of Acquisitions Costs and General and Administrative Expenses related to the re-domiciliation to the United States, and listing on NASDAQ |
Lonestar Resources US Inc. | ||||||||||||
Reconciliation of Income Before Income Taxes As Reported To Income | ||||||||||||
Before Income Taxes Excluding Certain Items, a non-GAAP measure (Adjusted Income) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||
(In thousands) |
(In thousands) | |||||||||||
Loss before income taxes, as reported |
$ |
(11,479) |
$ |
(9,576) |
$ |
(42,196) |
$ |
(45,755) | ||||
Adjustments for special items: |
||||||||||||
Impairment of oil and gas properties |
? |
29,144 |
27,081 |
31,082 | ||||||||
Early payment premium on Second Lien Notes |
? |
? |
1,050 |
? | ||||||||
Warrant discount recognition due to early payment on Second Lien Notes |
? |
? |
1,991 |
? | ||||||||
Legal expenses for corporate governance and public reporting setup |
? |
553 |
399 |
1,190 | ||||||||
General & administrative non-recurring costs |
337 |
63 |
549 |
72 | ||||||||
Rig standby expense |
61 |
364 |
61 |
2,261 | ||||||||
Unrealized hedging (gain) loss |
9,437 |
4,600 |
(2,672) |
26,205 | ||||||||
Stock based compensation |
346 |
122 |
985 |
313 | ||||||||
Advisory fees for completion of acquisition |
? |
? |
2,726 |
? | ||||||||
Income (loss) before income taxes, as adjusted |
(1,298) |
25,270 |
(10,026) |
15,368 | ||||||||
Income tax benefit (expense), as adjusted |
||||||||||||
Current |
? |
? |
? |
? | ||||||||
Deferred (a) |
451 |
(8,777) |
3,482 |
(5,334) | ||||||||
Net income (loss) excluding certain items, a non-GAAP measure |
$ |
(847) |
$ |
16,493 |
$ |
(6,544) |
$ |
10,034 | ||||
Preferred stock dividends |
(1,824) |
? |
(2120) |
? | ||||||||
Net income (loss) after preferred dividends excluding certain items, a non-GAAP measure |
$ |
(2,671) |
$ |
16,493 |
$ |
(8,664) |
$ |
10,034 | ||||
Non-GAAP income per common share |
||||||||||||
Basic |
$ |
(0.12) |
$ |
2.10 |
$ |
(0.40) |
$ |
1.32 | ||||
Diluted |
$ |
(0.12) |
$ |
2.02 |
$ |
(0.40) |
$ |
1.30 | ||||
Non-GAAP diluted shares outstanding, if dilutive |
21,822,015 |
8,174,760 |
21,822,015 |
7,741,837 |
(a) Deferred taxes for 2017 and 2016 are estimated to be approximately 35% |
Lonestar Resources US Inc. | ||||||||||||
Operating Results | ||||||||||||
(Unaudited) | ||||||||||||
For the three |
For the nine | |||||||||||
2017 |
2016 |
2017 |
2016 | |||||||||
Total production volumes - |
||||||||||||
Crude oil (MBbls) |
483 |
292 |
1,099 |
603 | ||||||||
NGLs (MBbls) |
113 |
114 |
288 |
242 | ||||||||
Natural gas (MMcf) |
654 |
832 |
1,824 |
1,779 | ||||||||
Total barrels of oil equivalent (Mboe) |
705 |
545 |
1,691 |
1,141 | ||||||||
Daily production volumes by product - |
||||||||||||
Crude oil (MBbls) |
5,250 |
3,175 |
4,026 |
3,522 | ||||||||
NGLs (MBbls) |
1,228 |
1,238 |
1,055 |
1,227 | ||||||||
Natural gas (MMcf) |
7,105 |
9,041 |
6,682 |
9,595 | ||||||||
Total barrels of oil equivalent (Boe/d) |
7,662 |
5,921 |
6,194 |
6,348 | ||||||||
Daily production volumes by region (Boe/d) - |
||||||||||||
Eagle Ford Shale |
7,662 |
5,485 |
6,194 |
5,810 | ||||||||
Conventional |
? |
436 |
? |
538 | ||||||||
Total barrels of oil equivalent (Boe/d) |
7,662 |
5,921 |
6,194 |
6,348 | ||||||||
Average realized prices - |
||||||||||||
Crude oil ($ per Bbl) |
$ |
47.96 |
$ |
42.05 |
$ |
47.99 |
$ |
37.73 | ||||
NGLs ($ per Bbl) |
16.19 |
9.33 |
16.74 |
7.99 | ||||||||
Natural gas ($ per Mcf) |
2.90 |
2.63 |
2.78 |
2.07 | ||||||||
Total Oil Equivalent, excluding the effect from hedging |
$ |
38.14 |
$ |
28.53 |
$ |
37.04 |
$ |
25.61 | ||||
Total Oil Equivalent, including the effect from hedging |
$ |
40.66 |
$ |
40.03 |
$ |
39.31 |
$ |
38.72 | ||||
Operating Expenses per BOE: |
||||||||||||
Lease operating and gas gathering |
$ |
6.40 |
$ |
7.36 |
$ |
6.50 |
$ |
7.34 | ||||
Production, ad valorem, and severance taxes |
2.19 |
1.67 |
2.16 |
1.75 | ||||||||
Depreciation, depletion and amortization |
22.60 |
19.68 |
24.02 |
22.11 | ||||||||
General and administrative |
3.26 |
5.27 |
4.70 |
4.89 |
SOURCE Lonestar Resources US, Inc.
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