Attached files
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| 8-K - CURRENT REPORT - Yuma Energy, Inc. | yuma_8k.htm |
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Yuma Energy, Inc.
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NEWS
RELEASE
Yuma Energy, Inc. Announces Second Quarter 2017
Financial Results
HOUSTON, TX – (PR Newswire – August 14, 2017) –
Yuma Energy, Inc. (NYSE American: YUMA) (the
“Company” or “Yuma”) today announced its financial results for the
quarter ended June 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 $2,889,407 for the six months ended June 30, 2017,
compared to cash used in operations of $2,442,876 in the same
period in 2016.
●
The Company sold
non-core properties in Brazos County, Texas for $5.5 million (prior
to purchase price adjustments) and reduced its debt by $7.5 million
from $39.5 million at the end of the first quarter of 2017 to $32.0
million at the end of the second quarter of 2017.
●
The Company
increased its Permian Basin acreage position to 2,491 acres (2,180
net acres) in Yoakum County, Texas to 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, on July 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 ended June 30, 2017 and 2016, and the average
sales price per unit sold.
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Three Months Ended June 30,
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Six Months Ended June 30,
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||
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2017
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2016
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2017
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2016
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Production
volumes:
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Crude
oil and condensate (Bbls)
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66,242
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39,297
|
142,640
|
74,015
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Natural
gas (Mcf)
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786,111
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646,020
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1,685,538
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1,046,385
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Natural
gas liquids (Bbls)
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35,092
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20,117
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68,566
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50,379
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Total (Boe) (1)
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232,353
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167,084
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492,129
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298,792
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Average
prices realized:
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Crude oil and condensate (per Bbl)
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$47.14
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$44.07
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$48.65
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$37.45
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Natural gas (per Mcf)
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$3.29
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$1.95
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$3.05
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$1.96
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Natural gas liquids (per Bbl)
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$24.05
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$17.87
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$23.61
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$14.16
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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 three
and six month periods ended June 30, 2017 and 2016.
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Three Months Ended June 30,
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Six Months Ended June 30,
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2017
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2016
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2017
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2016
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Sales
of natural gas and crude oil:
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Crude
oil and condensate
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$3,122,848
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$1,731,952
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$6,938,780
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$2,771,640
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Natural
gas
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2,587,968
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1,260,500
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5,141,410
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2,046,110
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Natural
gas liquids
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843,888
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359,504
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1,618,938
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713,138
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Total
revenues
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$6,554,704
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$3,351,956
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$13,699,128
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$5,530,888
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Expenses
The
Company’s lease operating expenses (“LOE”) and
LOE per Boe for the three and six month periods ended June 30, 2017
and 2016, are set forth below:
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Three Months Ended June 30,
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Six Months Ended June 30,
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2017
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2016
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2017
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2016
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Lease
operating expenses
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$1,844,896
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$597,966
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$3,542,804
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$1,227,954
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Severance,
ad valorem taxes and
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marketing
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1,214,228
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493,113
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2,177,584
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849,822
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Total LOE
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$3,059,124
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$1,091,079
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$5,720,388
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$2,077,776
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LOE
per Boe
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$13.17
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$6.53
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$11.62
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$6.95
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LOE
per Boe without severance,
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ad
valorem taxes and marketing
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$7.94
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$3.58
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$7.20
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$4.11
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Commodity
Derivative
Instruments
Commodity
derivative instruments open as of June 30, 2017 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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1,098,912
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1,725,133
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373,906
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Price
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$3.13
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$3.00
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$3.00
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3-way
collars
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Volume
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85,806
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-
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-
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Ceiling
sold price (call)
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$3.39
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-
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-
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Floor
purchased price (put)
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$3.03
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-
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-
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Floor
sold price (short put)
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$2.47
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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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67,191
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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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54,289
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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
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 southern Louisiana and southeastern Texas
where 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 in North 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 ended December 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.
For more information, please contact:
James
J. Jacobs
Executive
Vice President, Treasurer and Chief Financial Officer
Yuma
Energy, Inc.
1177
West Loop South, Suite 1825
Houston,
TX 77027
Telephone:
(713) 968-7000
Yuma Energy, Inc.
CONSOLIDATED
BALANCE SHEETS
(Unaudited)
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June 30,
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December 31,
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2017
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2016
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ASSETS
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CURRENT
ASSETS:
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Cash
and cash equivalents
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$543,095
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$3,625,686
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Accounts
receivable, net of allowance for doubtful accounts:
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Trade
|
4,330,227
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4,827,798
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Officers
and employees
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42,955
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68,014
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Other
|
1,851,776
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1,757,337
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Commodity
derivative instruments
|
1,506,706
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-
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Prepayments
|
541,965
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1,063,418
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Other
deferred charges
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330,022
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284,305
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Total
current assets
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9,146,746
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11,626,558
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OIL
AND GAS PROPERTIES (full cost method):
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Proved
properties
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486,055,239
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488,723,905
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Unproved
properties - not subject to amortization
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5,585,387
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3,656,989
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491,640,626
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492,380,894
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Less:
accumulated depreciation, depletion and amortization
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(416,195,279)
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(410,440,433)
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Net
oil and gas properties
|
75,445,347
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81,940,461
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OTHER
PROPERTY AND EQUIPMENT:
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Land,
buildings and improvements
|
1,600,000
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1,600,000
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Other
property and equipment
|
2,842,140
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7,136,530
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4,442,140
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8,736,530
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Less:
accumulated depreciation and amortization
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(1,329,082)
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(5,349,145)
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Net
other property and equipment
|
3,113,058
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3,387,385
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OTHER
ASSETS AND DEFERRED CHARGES:
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Commodity
derivative instruments
|
1,081,480
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-
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Deposits
|
467,592
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467,306
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Other
noncurrent assets
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435,810
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517,201
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Total
other assets and deferred charges
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1,984,882
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984,507
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TOTAL
ASSETS
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$89,690,033
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$97,938,911
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Yuma Energy, Inc.
CONSOLIDATED
BALANCE SHEETS – CONTINUED
(Unaudited)
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June 30,
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December 31,
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2017
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2016
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LIABILITIES
AND EQUITY
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CURRENT
LIABILITIES:
|
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Current
maturities of debt
|
$86,558
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$599,341
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Accounts
payable, principally trade
|
10,782,653
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11,009,631
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Commodity
derivative instruments
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-
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1,340,451
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Asset
retirement obligations
|
388,643
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376,735
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Other
accrued liabilities
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2,449,304
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2,572,680
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Total
current liabilities
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13,707,158
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15,898,838
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LONG-TERM
DEBT
|
32,000,000
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39,500,000
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OTHER
NONCURRENT LIABILITIES:
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Asset
retirement obligations
|
9,639,787
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9,819,648
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Commodity
derivative instruments
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-
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1,215,551
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Employee
stock awards
|
30,430
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-
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Total
other noncurrent liabilities
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9,670,217
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11,035,199
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COMMITMENTS
AND CONTINGENCIES (Note 14)
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EQUITY
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Series
D convertible preferred stock
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($0.001
par value, 7,000,000 authorized, 1,838,927 issued as of June 30,
2017
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and
1,776,718 issued as of December 31, 2016, $11.07 per share
liquidation
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preference)
|
1,839
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1,777
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Common
stock
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($0.001
par value, 100 million shares authorized, 12,558,891 issued as
of
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June
30, 2017 and 12,201,884 issued as of December 31,
2016)
|
12,559
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12,202
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Additional
paid-in capital
|
44,958,379
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43,877,563
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Treasury
stock at cost (11,900 shares as of June 30, 2017 and -0- shares
as
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of
December 31, 2016)
|
(23,270)
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-
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Accumulated
earnings (deficit)
|
(10,636,849)
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(12,386,668)
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|
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Total
equity
|
34,312,658
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31,504,874
|
|
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TOTAL
LIABILITIES AND EQUITY
|
$89,690,033
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$97,938,911
|
Yuma Energy, Inc.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
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|
Three Months Ended June 30,
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Six Months Ended June 30,
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||
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2017
|
2016
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2017
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2016
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REVENUES:
|
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Sales
of natural gas and crude oil
|
$6,554,704
|
$3,351,956
|
$13,699,128
|
$5,530,888
|
|
|
|
|
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|
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EXPENSES:
|
|
|
|
|
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Lease
operating and production costs
|
3,059,124
|
1,091,079
|
5,720,388
|
2,077,776
|
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General
and administrative – stock-based
|
|
|
|
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compensation
|
385,097
|
1,087,471
|
436,832
|
1,284,395
|
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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
|
|
|
|
|
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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
|
|
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
|