Attached files
| file | filename |
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| 8-K - CURRENT REPORT - Yuma Energy, Inc. | yuma_8k.htm |
Exhibit 99.1
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Yuma Energy, Inc.
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NEWS
RELEASE
Yuma Energy, Inc. Announces Entry into the Permian Basin
and
Provides 2016 Financial Results
HOUSTON, TX – (PRNewswire – April 12, 2017) –
Yuma Energy, Inc. (NYSE MKT: YUMA) (the
“Company” or “Yuma”) today announced its entry into the Permian Basin
as well as its financial results for the year ended December 31,
2016 and provided an operational property
overview.
Recent Events
Yuma
recently entered into a joint development agreement covering 33,280
acres in an area of mutual interest (“AMI”) with two
private companies and 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.
Year End and Fourth Quarter 2016 Highlights
●
The merger of Yuma
and privately held Davis Petroleum Acquisition Corp.
(“Davis”) was completed on October 26, 2016 in an
all-stock transaction, with Davis becoming a wholly owned
subsidiary of Yuma.
●
The Company entered
into a credit agreement providing for a $75.0 million 3-year
revolving credit facility on October 26, 2016 in connection with
the merger. The initial borrowing base of the credit facility was
$44.0 million, which was extended by the redetermination on January
1, 2017. The Company has current borrowings under the credit
facility of $39.5 million.
●
Net average
production was 2,445 Boe/d for the fourth quarter of 2016
(including approximately two months of Davis and Yuma combined), a
59.5 percent increase over the fourth quarter of 2015.
●
Lease operating
expenses and workover costs were $2,252,228 for the fourth quarter
of 2016 (including approximately two months of Davis and Yuma
combined), a 7.3 percent reduction when compared to the fourth
quarter 2015.
●
Commodity
derivatives were entered into during the fourth quarter which
brought the Company’s total hedge position to 2,629,799 MMBtu
of natural gas at an average price of $3.11 per MMBtu and 258,804
barrels of oil at an average price of $55.63 per Bbl for calendar
year 2017; 1,451,734 MMBtu of natural gas at an average price of
$3.00 per MMBtu and 195,152 barrels of oil at an average price of
$53.17 per Bbl for calendar year 2018; and 156,320 barrels of oil
at an average price of $53.77 per Bbl for calendar year
2019.
-1-
Management Comments
Sam L.
Banks, President and CEO of Yuma Energy, Inc., commented, “We
are excited about our initial entry into the Permian Basin and look
forward to expanding our position in the San Andres horizontal
play. Together with our recent merger with Davis Petroleum
Acquisition Corp., we are poised to take advantage of the
opportunities 2017 will bring. The merger with Davis has
increased our liquidity and improved our financial position, while
at the same time nearly doubling our production and increasing our
reserves. The transaction allows us to take advantage of low-risk
and low-cost growth opportunities from our existing inventory,
continue the development and expansion of our San Andres play, and
actively pursue acquisitions and mergers.”
Operational Highlights for 2016
In 2016, we significantly reduced our capital spending and drilled
and completed one successful well, the EE Broussard
#1 in
our Cameron Canal Field in Cameron Parish, Louisiana. In addition,
we also focused on reducing our controllable costs to offset lower
commodity prices and increase our margins. Lease operating expenses
and workover costs during the fourth quarter of 2016 were
approximately $2.3 million (including approximately two months of
Davis and Yuma combined), a 7.3 percent ($0.2 million) reduction
compared to the fourth quarter of 2015. For the full year of
2016, lease operating expenses and workover costs were
approximately $5.6 million, or 27.2 percent ($2.1 million) lower
than in 2015. We have reduced total operating expenses quarter
after quarter in 2016 and will continue to seek ways to optimize
our operations to meet the current price
environment.
Net production averaged 2,445 Boe/d during the fourth quarter of
2016 (including approximately two months of Davis and Yuma
combined), which was 59.5 percent (912 Boe/d) higher than the same
quarter in the prior year. Net average production for the full
year of 2016 was 1,812 Boe/d, down 13.0 percent (277 Boe/d) when
compared to the full year of 2015, primarily due to the higher
production levels experienced at Lac Blanc, El Halcón, and
Chalktown during the first two quarters of 2015.
Recent Operational Updates
Bayou Hebert Field – Vermillion Parish,
Louisiana. During December
2016, the operator recompleted the Thibodeaux No. 1-ST1 from the
Lower Cris R-2 “C” sand to the Lower Cris R-2
“B” sand. The well was producing approximately 3.7
MMcf/d of natural gas and 65 Bbl/d of oil gross (0.3 MMcf/d and 6
Bbl/d net) prior to the recompletion. The Thibodeaux No. 1-ST1 is
currently producing approximately 19.3 MMcf/d of natural gas and
354 Bbl/d of oil gross (1.7 MMcf/d and 32 Bbl/d net). The total
field is currently producing approximately 48 MMcf/d of natural gas
and 900 Bbl/d of oil gross (4.3 MMcf/d and 81 Bbl/d
net).
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 was shut-in.
Currently, the well is producing approximately 1.9 MMcf/d of
natural gas and 40 Bbl/d of oil (1.3 MMcf/d and 28 Bbl/d
net).
-2-
Oil and Natural Gas Reserves – SEC Prices
The
table below summarizes the Company?s estimated proved reserves at
December 31, 2016, which were prepared in accordance with
Securities and Exchange Commission (?SEC?) guidelines by
Netherland, Sewell & Associates, Inc. (?NSAI?), an independent
petroleum engineering firm. In preparing its report, NSAI evaluated
100% of the Company?s properties at December 31, 2016.
Proved
reserves were calculated using prices equal to the twelve-month
unweighted arithmetic average of the first-day-of-the-month prices
for each of the preceding twelve months, which were $42.75 per Bbl
West Texas Intermediate and $2.48 per MMBtu Henry Hub, for the year
ended December 31, 2016. Adjustments were made for location
and grade. The information in the following table does not give any
effect to or reflect the Company’s commodity
derivatives.
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Oil (MBbls)
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Natural Gas Liquids (MBbls)
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Natural Gas (MMcf)
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Total
(MBoe)(1)
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Present Value Discounted at 10% ($ in
thousands) (2)
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Proved developed
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2,203
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1,061
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21,919
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6,917
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67,317
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Proved undeveloped
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773
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287
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2,060
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1,404
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6,283
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Total proved
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2,976
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1,348
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23,979
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8,321
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73,600
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(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).
(2)
PV-10 is a non-GAAP
financial measure. See “Reconciliation of GAAP to Non-GAAP
Financial Measures.”
Oil and Natural Gas Reserves – Strip Prices
NSAI also prepared estimates of the Company’s proved reserves
at year-end 2016 using strip prices as of December 31, 2016,
adjusted for differentials. Reference oil prices per barrel for the
years 2017, 2018, 2019, 2020, and 2021 were $56.19, $56.59, $56.10,
$56.05, $56.21, respectively, and were held flat at $56.51 per
barrel thereafter. Reference natural gas prices per MMBTU for the
years 2017, 2018, 2019, 2020, and 2021 were $3.61, $3.14, $2.87,
$2.88, $2.91, respectively, and were held flat at $2.93 per MMBtu
thereafter. Differentials vary by field but overall were
approximately $3.00 per barrel for oil and $0.30 per MMBtu for
natural gas.
Management believes the disclosure of estimated reserves using
strip prices is useful in that it offers stockholders additional
information about the quantity and value of our reserves under an
alternative price scenario to that of SEC prices. In addition,
management generally makes decisions based on estimated future
prices as is customary in the industry.
The Company’s estimated proved reserves by category as of
December 31, 2016, based on strip prices, are provided in the
following table. A decline in strip prices would likely result in a
reduction in the quantity and value of reserves shown. The
information in the following table does not give any effect to or
reflect the Company’s commodity derivatives.
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Oil (MBbls)
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Natural Gas Liquids (MBbls)
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Natural Gas (MMcf)
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Total
(MBoe)(1)
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Present Value Discounted at 10% ($ in
thousands) (2)
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Proved developed
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2,379
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1,082
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22,086
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7,142
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103,194
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Proved undeveloped
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953
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373
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2,582
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1,756
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14,759
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Total proved
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3,331
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1,455
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24,668
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8,898
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117,954
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-3-
(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).
(2)
PV-10 is a non-GAAP
financial measure. See “Reconciliation of GAAP to Non-GAAP
Financial Measures.”
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 years
ended December 31, 2016 and 2015, and the average sales price per
unit sold.
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Years Ended December 31,
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2016
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2015
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Production
volumes:
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Crude
oil and condensate (Bbls)
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172,003
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209,545
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Natural
gas (Mcf)
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2,326,400
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2,547,300
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Natural
gas liquids (Bbls)
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104,689
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129,670
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Total (Boe) (1)
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664,425
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763,765
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Average
prices realized:
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Crude oil and condensate (per Bbl)
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$42.21
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$46.92
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Natural gas (per Mcf)
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$2.45
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$2.63
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Natural gas liquids (per Bbl)
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$17.33
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$17.01
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(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 years
ended December 31, 2016 and 2015.
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Years Ended December 31,
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2016
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2015
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Sales
of natural gas and crude oil:
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Crude
oil and condensate
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$7,260,169
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$9,764,907
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Natural
gas
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5,697,879
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6,687,095
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Natural
gas liquids
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1,814,660
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2,175,998
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Total
revenues
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$14,772,708
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$18,628,000
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Expenses
The
Company’s lease operating expenses (“LOE”) and
LOE per Boe for the years ended December 31, 2016 and 2015, are set
forth below:
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Years Ended December 31,
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2016
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2015
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Lease
operating expenses
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$3,303,789
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$5,158,553
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Severance,
ad valorem taxes and marketing
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2,259,841
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2,484,484
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Total LOE
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$5,563,630
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$7,643,037
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LOE
per Boe
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$8.37
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$10.01
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LOE
per Boe without severance, ad valorem taxes and
marketing
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$4.97
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$6.75
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-4-
Commodity
Derivative
Instruments
Commodity
derivative instruments open as of December 31, 2016 are provided
below. Natural gas prices are NYMEX Henry Hub prices, and crude oil
prices are NYMEX West Texas Intermediate.
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2017
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2018
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2019
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Settlement
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Settlement
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Settlement
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NATURAL
GAS (MMBtu):
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Swaps
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Volume
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2,381,776
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1,451,734
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-
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Price
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$3.13
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$3.00
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-
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3-way
collars
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Volume
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248,023
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-
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-
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Ceiling
sold price (call)
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$3.28
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-
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-
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Floor
purchased price (put)
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$2.95
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-
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-
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Floor
sold price (short put)
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$2.38
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-
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-
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CRUDE
OIL (Bbls):
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Swaps
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Volume
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145,775
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195,152
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156,320
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Price
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$52.24
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$53.17
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$53.77
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3-way
collars
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Volume
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113,029
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-
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-
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Ceiling
sold price (call)
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$77.00
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-
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-
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Floor
purchased price (put)
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$60.00
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-
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-
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Floor
sold price (short put)
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$45.00
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-
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-
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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 central and
southern Louisiana, southeastern Texas, and Kern and Santa Barbara
Counties in California. In addition, we have non-operated positions
in the South Texas Eagle Ford, East Texas 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,
no par value per share (the “Yuma California Series A
Preferred Stock”), into 35 shares of its common stock, no par
value per share (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, $0.001 par value
per share, 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, $0.001 par value
per share (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.
-5-
As part
of the closing of the Davis Merger, we entered into a registration
rights agreement (the “Registration Rights Agreement”)
with Sam L. Banks, RMCP PIV DPC, LP, RMCP PIV DPC II, LP, Davis
Petroleum Investment, LLC, Sankaty Davis, LLC, Paul-ECP2 Holdings,
LP, HarbourVest Partners VIII – Buyout Fund L.P., Dover
Street VII L.P., Michael S. Reddin, Thomas E. Hardisty, Susan J.
Davis, Gregory P. Schneider, and Steven Enger (collectively, the
“Stockholders”), pursuant to which we agreed to
register, at our cost, with the SEC the resale of the common stock
issued to the Stockholders and the common stock issued upon
conversion of the Series D preferred stock. We agreed to file a
shelf registration statement (the “Shelf Registration
Statement”) with the SEC on or before April 24, 2017, subject
to certain exceptions. The Stockholders may request registration no
more than three times during any twelve consecutive months, of
shares having an estimated offering price of greater than $5.0
million. No request may be made after the fourth anniversary of the
effectiveness of the Shelf Registration Statement. In addition, if
we file a registration statement within four years of the
effectiveness of the Shelf Registration Statement, we must offer to
the Stockholders the opportunity to include the resale of their
shares in the registration statement, subject to customary
qualifications and limitations.
Subsequent
to the Davis Merger, Ben T. Morris resigned from our board of
directors and Stuart E. Davies, Neeraj Mital and J. Christopher
Teets were appointed to our board of directors and Richard K.
Stoneburner became the Non-Executive Chairman of the board of
directors. Sam L. Banks continues to serve as Director, President
and Chief Executive Officer, and James W. Christmas and Frank A.
Lodzinski also continue to serve as directors. Subsequent to the
Davis Merger, on December 20, 2016, Mr. Davies resigned from the
board of directors.
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 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.
For more information, please contact:
James
J. Jacobs
Treasurer
and Chief Financial Officer
Yuma
Energy, Inc.
1177
West Loop South, Suite 1825
Houston,
TX 77027
Telephone:
(713) 968-7000
-6-
Yuma Energy, Inc.
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
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2016
|
2015
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ASSETS
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CURRENT
ASSETS:
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Cash
and cash equivalents
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$3,625,686
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$4,064,094
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Accounts
receivable, net of allowance for doubtful accounts:
|
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|
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Trade
|
4,827,798
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2,989,590
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Officers
and employees
|
68,014
|
1,121
|
|
Other
|
1,757,337
|
3,793,257
|
|
Commodity
derivative instruments
|
-
|
1,711,072
|
|
Prepayments
|
1,063,418
|
328,218
|
|
Other
deferred charges
|
284,305
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-
|
|
|
|
|
|
Total
current assets
|
11,626,558
|
12,887,352
|
|
|
|
|
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OIL
AND GAS PROPERTIES (full cost method):
|
|
|
|
Proved
properties
|
488,723,905
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425,767,477
|
|
Unproved
properties - not subject to amortization
|
3,656,989
|
178,761
|
|
|
|
|
|
|
492,380,894
|
425,946,238
|
|
Less:
accumulated depreciation, depletion and amortization
|
(410,440,433)
|
(381,987,616)
|
|
|
|
|
|
Net
oil and gas properties
|
81,940,461
|
43,958,622
|
|
|
|
|
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OTHER
PROPERTY AND EQUIPMENT:
|
|
|
|
Land,
buildings and improvements
|
1,600,000
|
179,054
|
|
Other
property and equipment
|
7,136,530
|
8,855,503
|
|
|
8,736,530
|
9,034,557
|
|
Less:
accumulated depreciation and amortization
|
(5,349,145)
|
(7,357,964)
|
|
|
|
|
|
Net
other property and equipment
|
3,387,385
|
1,676,593
|
|
|
|
|
|
OTHER
ASSETS AND DEFERRED CHARGES:
|
|
|
|
Deferred
taxes
|
-
|
1,425,964
|
|
Deposits
|
467,306
|
404,242
|
|
Other
noncurrent assets
|
517,201
|
-
|
|
|
|
|
|
Total
other assets and deferred charges
|
984,507
|
1,830,206
|
|
|
|
|
|
TOTAL
ASSETS
|
$97,938,911
|
$60,352,773
|
-7-
Yuma Energy, Inc.
CONSOLIDATED
BALANCE SHEETS – CONTINUED
(Unaudited)
|
|
2016
|
2015
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current
maturities of debt
|
$599,341
|
$-
|
|
Accounts
payable, principally trade
|
11,009,631
|
5,065,334
|
|
Commodity
derivative instruments
|
1,340,451
|
-
|
|
Asset
retirement obligations
|
376,735
|
184,881
|
|
Other
accrued liabilities
|
2,572,680
|
733,070
|
|
|
|
|
|
Total
current liabilities
|
15,898,838
|
5,983,285
|
|
|
|
|
|
LONG-TERM
DEBT
|
39,500,000
|
-
|
|
|
|
|
|
OTHER
NONCURRENT LIABILITIES:
|
|
|
|
Asset
retirement obligations
|
9,819,648
|
5,147,169
|
|
Commodity
derivative instruments
|
1,215,551
|
-
|
|
Other
|
-
|
95,000
|
|
|
|
|
|
Total
other noncurrent liabilities
|
11,035,199
|
5,242,169
|
|
|
|
|
|
Commitments
and contingencies (Note 18)
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
Preferred
stock
|
|
|
|
Series
D Convertible, $.001 par value (7 million authorized,
1,776,718
|
|
|
|
issued
as of December 31, 2016)
|
1,777
|
-
|
|
Series
A Convertible, $.01 par value (50 million authorized,
33,367,187
|
|
|
|
issued
as of December 31, 2015, retired October 26, 2016)
|
-
|
333,672
|
|
Common
stock
|
|
|
|
($.001
par value, 100 million shares authorized, 12,201,884 issued as
of
|
|
|
|
December
31, 2016 and 7,440,152 issued as of December 31, 2015)
|
12,202
|
7,440
|
|
Paid-in
capital
|
43,877,563
|
209,512,985
|
|
Treasury
stock
|
-
|
(41,350,488)
|
|
Accumulated
earnings (deficit)
|
(12,386,668)
|
(119,376,290)
|
|
|
|
|
|
Total
equity
|
31,504,874
|
49,127,319
|
|
|
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
$97,938,911
|
$60,352,773
|
|
|
|
|
-8-
Yuma Energy, Inc.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
Years Ended December 31,
|
|
|
|
2016
|
2015
|
|
|
|
|
|
REVENUES:
|
|
|
|
Sales
of natural gas and crude oil
|
$14,772,708
|
$18,628,000
|
|
|
|
|
|
EXPENSES:
|
|
|
|
Lease
operating and production costs
|
5,563,630
|
7,643,037
|
|
General
and administrative – stock-based compensation
|
1,731,969
|
933,017
|
|
General
and administrative – other
|
12,727,328
|
6,865,763
|
|
Depreciation,
depletion and amortization
|
8,239,802
|
17,139,137
|
|
Asset
retirement obligation accretion expense
|
254,573
|
175,643
|
|
Impairment
of oil and gas properties
|
20,654,848
|
40,479,906
|
|
Loss
on write-off of other assets
|
833,157
|
-
|
|
Other
|
561,723
|
8,542
|
|
Total
expenses
|
50,567,030
|
73,245,045
|
|
|
|
|
|
LOSS
FROM OPERATIONS
|
(35,794,322)
|
(54,617,045)
|
|
|
|
|
|
OTHER
INCOME (EXPENSE):
|
|
|
|
Net
gains (losses) from commodity derivatives
|
(3,775,254)
|
3,319,004
|
|
Interest
expense
|
(659,572)
|
(577,936)
|
|
Other,
net
|
55,779
|
20,954
|
|
Total
other income (expense)
|
(4,379,047)
|
2,762,022
|
|
|
|
|
|
LOSS
BEFORE INCOME TAXES
|
(40,173,369)
|
(51,855,023)
|
|
|
|
|
|
Income
tax expense - current
|
-
|
6,000
|
|
Income
tax expense - deferred
|
1,425,964
|
10,454,802
|
|
|
|
|
|
NET
LOSS
|
(41,599,333)
|
(62,315,825)
|
|
|
|
|
|
PREFERRED
STOCK:
|
|
|
|
Dividends
paid in kind
|
1,323,641
|
1,230,343
|
|
Loss
on retirement of DPAC Series "A" Preferred Stock
|
(271,914)
|
-
|
|
|
|
|
|
NET
LOSS ATTRIBUTABLE TO
|
|
|
|
COMMON
STOCKHOLDERS
|
$(42,651,060)
|
$(63,546,168)
|
|
|
|
|
|
LOSS
PER COMMON SHARE:
|
|
|
|
Basic
|
$(5.13)
|
$(8.58)
|
|
Diluted
|
$(5.13)
|
$(8.58)
|
|
|
|
|
|
WEIGHTED
AVERAGE NUMBER OF
|
|
|
|
COMMON
SHARES OUTSTANDING:
|
|
|
|
Basic
|
8,317,777
|
7,409,201
|
|
Diluted
|
8,317,777
|
7,409,201
|
-9-
Yuma Energy, Inc.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Years Ended December 31,
|
|
|
|
2016
|
2015
|
|
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
Reconciliation
of net loss to net cash provided by (used in) operating
activities:
|
|
|
|
Net
loss
|
$(41,599,333)
|
$(62,315,825)
|
|
Depreciation,
depletion and amortization of property and equipment
|
8,239,802
|
17,139,137
|
|
Impairment
of oil and gas properties
|
20,654,848
|
40,479,906
|
|
Amortization
of debt issuance costs
|
148,970
|
210,067
|
|
Net
deferred income tax expense
|
1,425,964
|
10,454,802
|
|
Stock-based
compensation expense
|
1,731,969
|
933,017
|
|
Settlement
of asset retirement obligations
|
(287,902)
|
(1,032,661)
|
|
Accretion
of asset retirement obligation
|
254,573
|
175,643
|
|
Bad
debt expense
|
556,406
|
-
|
|
Net
gains (losses) from commodity derivatives
|
3,775,254
|
(3,319,004)
|
|
Losses
on sales and write-offs of fixed assets
|
838,473
|
-
|
|
Changes
in assets and liabilities:
|
|
|
|
Decrease
in accounts receivable
|
3,698,004
|
1,133,493
|
|
Decrease
in prepaids, deposits and other assets
|
353,889
|
10,924,780
|
|
Decrease
in accounts payable and other current and non-current
liabilities
|
(4,090,155)
|
(4,738,397)
|
|
|
|
|
|
NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
(4,299,238)
|
10,044,958
|
|
|
|
|
|
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
Capital
expenditures for oil and gas properties
|
(10,066,999)
|
(23,301,875)
|
|
Proceeds
from sale of oil and gas properties and other fixed
assets
|
1,152,958
|
1,710,140
|
|
Merger
with Yuma California
|
1,887,426
|
-
|
|
Derivative
settlements
|
1,607,365
|
10,344,207
|
|
|
|
|
|
NET
CASH USED IN INVESTING ACTIVITIES
|
(5,419,250)
|
(11,247,528)
|
|
|
|
|
|
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
Proceeds
from borrowings
|
247,013
|
-
|
|
Borrowings
on senior credit facility
|
18,700,000
|
10,000,000
|
|
Repayments
of borrowings
|
(9,049,625)
|
(15,000,000)
|
|
Debt
issuance costs
|
(208,985)
|
-
|
|
Treasury
stock repurchases
|
(408,323)
|
(210,341)
|
|
|
|
|
|
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
9,280,080
|
(5,210,341)
|
|
|
|
|
|
NET
DECREASE IN CASH AND CASH EQUIVALENTS
|
(438,408)
|
(6,412,911)
|
|
|
|
|
|
CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
4,064,094
|
10,477,005
|
|
|
|
|
|
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$3,625,686
|
$4,064,094
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Interest
payments (net of interest capitalized)
|
$590,160
|
$362,860
|
|
Interest
capitalized
|
$26,121
|
$-
|
|
Income
tax payments
|
$-
|
$-
|
|
|
|
|
|
Supplemental
disclosure of significant non-cash activity:
|
|
|
|
Change
in capital expenditures financed by accounts payable
|
$323,910
|
$13,729,612
|
-10-
Yuma Energy, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
Unaudited
Non-GAAP Financial Measures
The
non-GAAP financial measure of PV-10, as calculated by the Company
below, is intended to provide readers with meaningful information
that supplements our financial statements prepared in accordance
with accounting principles generally accepted in the United States
(“GAAP”). These disclosures may not be comparable to
similarly titled measures used by other companies. Further, this
non-GAAP measure should only be considered in conjunction with
financial statements and disclosures prepared in accordance with
GAAP and should not be considered in isolation or as a substitute
for GAAP measures, such as net income or loss, operating income or
loss, standardized measure of discounted future net cash flows or
any other GAAP measure of financial position or results of
operations.
PV10
Present
Value Discounted at 10% (“PV10”) is a Non-GAAP measure
that differs from the GAAP measure “standardized measure of
discounted future net cash flows” in that PV10 is calculated
without regard to future income taxes. Management believes that the
presentation of the PV10 value is relevant and useful to investors
because it presents the estimated discounted future net cash flows
attributable to the Company’s estimated proved reserves
independent of its income tax attributes, thereby isolating the
intrinsic value of the estimated future cash flows attributable to
the Company’s reserves. Because many factors that are unique
to each individual company impact the amount of future income taxes
to be paid, the Company believes the use of a pre-tax measure
provides greater comparability of assets when evaluating companies.
For these reasons, management uses, and believes the industry
generally uses, the PV10 measure in evaluating and comparing
acquisition candidates and assessing the potential return on
investment related to investments in oil and natural gas
properties. PV10 does not necessarily represent the fair market
value of oil and natural gas properties.
PV10 is
not a measure of financial or operational performance under GAAP,
nor should it be considered in isolation or as a substitute for the
standardized measure of discounted future net cash flows as defined
under GAAP. For a presentation of the standardized measure of
discounted future net cash flows, see Note 26 – Supplementary
Information on Oil and Natural Gas Exploration, Development and
Production Activities (Unaudited) in the Notes to the Consolidated
Financial Statements contained in the Company’s annual report
on Form 10-K for the year ended December 31, 2016. The table below
provides a reconciliation of the Company’s PV10 to the
standardized measure of discounted future net cash
flows.
|
Present
value of estimated future net revenues (PV10)
|
73,600
|
|
Future
income taxes discounted at 10%
|
-
|
|
Standardized
measure of discounted future net cash flows
|
73,600
|
-11-