TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE
American:TAT) (the “Company” or “TransAtlantic”) today announced
financial results for the quarter and year ended December 31, 2017
and provided an operations update. Additional information can be
found on the Company’s website at www.TransAtlanticPetroleum.com.
Highlights
- The Company has entered the presentation phase of the Company
marketing process with Tudor Pickering Holt & Co.
- Net loss from continuing operations in 2017 was $23.9 million,
as compared to $22.4 million in 2016. Net loss from continuing
operations for the three months ended December 31, 2017 was $4.0
million as compared to $4.4 million for the third quarter of 2017
and $5.7 million in the fourth quarter of 2016.
- Adjusted EBITDAX from continuing operations for the year ended
December 31, 2017 was $31.8 million, as compared to $40.9 million
for the year ended December 31, 2016, which included cash
settlements on commodity derivative contracts of $0.03 million and
$4.2 million for 2017 and 2016, respectively. For the three months
ended December 31, 2017, adjusted EBITDAX from continuing
operations increased to $8.4 million, as compared to $7.3 million
for the third quarter of 2017, and decreased from $9.4 million in
the fourth quarter of 2016.1
- Diluted net loss per common share from continuing operations
improved to $0.50 in 2017 from $0.51 in 2016.
- The Company’s 2017 general and administrative expenses and
production expenses decreased 21% and 1%, respectively, from
2016.
- The Company’s wellhead production from continuing operations
was 1.2 million barrels of oil equivalent (“MMBOE”) in 2017, as
compared to 1.8 million MMBOE in 2016.
- The Company’s average net sales volumes from continuing
operations were approximately 2,799 barrels of oil equivalent per
day (“BOEPD”) in the fourth quarter of 2017, as compared to 2,862
BOEPD in the third quarter of 2017 and 4,335 BOEPD in the fourth
quarter of 2016.
- The Company’s 2017 net wellhead production was approximately
3,188 BOEPD, comprised of 3,025 barrels of oil per day (“BOPD”) and
1.03 million cubic feet of natural gas per day (“MMCFPD”).
- The Company’s management will be presenting at the IPAA New
York oil and gas conference on Monday, April 9, 2018 at 4:05 p.m.
Eastern time.
1 Adjusted EBITDAX is a non-GAAP financial
measure. See the reconciliation at the end of this press
release.
Fourth Quarter 2017 Results from
Continuing Operations
|
For the Three Months Ended |
|
|
December 31, 2017 |
|
|
September 30, 2017 |
|
|
December 31, 2016 |
|
Net Sales: |
|
|
|
|
|
|
|
|
|
|
|
Oil
(MBbls) |
|
246 |
|
|
|
254 |
|
|
|
352 |
|
Natural
gas (MMCF) |
|
68 |
|
|
|
58 |
|
|
|
279 |
|
Total net
sales (MBOE) |
|
258 |
|
|
|
263 |
|
|
|
399 |
|
Average
net sales (BOEPD) |
|
2,799 |
|
|
|
2,862 |
|
|
|
4,335 |
|
Realized Commodity
Prices: |
|
|
|
|
|
|
|
|
|
|
|
Oil
($/Bbl unhedged) |
$ |
59.90 |
|
|
$ |
47.88 |
|
|
$ |
44.50 |
|
Oil
($/Bbl hedged) |
$ |
59.90 |
|
|
$ |
47.88 |
|
|
$ |
44.50 |
|
Natural
gas ($/MCF) |
$ |
4.41 |
|
|
$ |
4.82 |
|
|
$ |
5.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues were $15.2 million for the three
months ended December 31, 2017, as compared to $12.7 million for
the three months ended September 30, 2017 and $18.7 million for the
three months ended December 31, 2016. For the three months ended
December 31, 2017, the Company had a net loss from continuing
operations of $4.0 million, or $0.09 per share (basic and diluted),
as compared to a net loss from continuing operations of $4.4
million, or $0.09 per share (basic and diluted), for the three
months ended September 30, 2017, and a net loss from continuing
operations of $5.7 million, or $0.12 per share (basic and diluted),
for the three months ended December 31, 2016. The net loss for the
three months ended December 31, 2017, included $0.8 million of
foreign exchange loss and $0.7 million of exploration, abandonment,
and impairment charges, as compared to $.05 million of foreign
exchange loss and $0.1 million of exploration, abandonment, and
impairment charges for the three months ended September 30, 2017.
Additionally, this compares to $3.3 million of foreign exchange
loss and $3.0 million of exploration, abandonment, and impairment
charges for the three months ended December 31, 2016. Capital
expenditures (including seismic, license acquisition, and other
fixed assets) totaled $3.2 million for the three months ended
December 31, 2017, as compared to $6.0 million for the three months
ended September 30, 2017 and $4.6 million for the three months
ended December 31, 2016.
Adjusted EBITDAX from continuing operations for
the three months ended December 31, 2017 was $8.4 million, as
compared to $7.3 million for the three months ended September 30,
2017 and $9.4 million for the three months ended December 31, 2016.
The increase in fourth quarter of 2017 Adjusted EBITDAX compared to
the third quarter of 2017 was primarily due to an increase of $2.6
million in total revenues, which was partially offset by an
increase in general and administration expense and production
expense of $1.0 million and $0.5 million, respectively.
2017 Annual Results for Continuing
Operations
Revenues for the twelve months ended December
31, 2017 were $56.6 million, as compared to $68.6 million for the
twelve months ended December 31, 2016. The decrease in annual
revenues was primarily attributable to a decrease in sales volumes
of 467 MBOE and the sale of Thrace Basin Natural Gas (Turkiye)
Corporation (“TBNG”), which contributed 165 MBOE and $6.9 million
in 2016 and resulted in a $4.4 million decrease in the sale of
purchased natural gas. This was partially offset by an increase in
the average price per barrels of oil equivalent (“BOE”) received
for the Company’s sales volumes of $9.81 per BOE. For the twelve
months ended December 31, 2017, the Company had a net loss from
continuing operations of $23.9 million, or $0.50 per share (basic
and diluted), as compared to a net loss from continuing operations
of $22.4 million, or $0.51 per share (basic and diluted), for the
twelve months ended December 31, 2016. The 2017 net loss from
continuing operations included a $15.2 million loss on the sale of
TBNG and $4.7 million of seismic and other exploration expense, as
compared to $0.1 million of seismic and other exploration expense
for the twelve months ended December 31, 2016. This was partially
offset by a decrease in exploration, abandonment, and impairment
expense of $5.0 million, general and administrative expense of $3.6
million, and cost of purchased gas of $3.9 million.
Adjusted EBITDAX from continuing operations for
the twelve months ended December 31, 2017 was $31.8 million, as
compared to $40.9 million for the twelve months ended December 31,
2016. The difference was primarily a result of a decrease in
revenues of $12.0 million and a decrease in the Company’s realized
cash settlements on its commodity derivative contracts of $4.2
million. This was partially offset by a decrease in exploration,
abandonment, and impairment expense of $5.0 million, general and
administrative expense of $3.5 million, and cost of purchased gas
of $3.9 million.
Impact of Foreign Currency
Exchange
During the three months ended December 31, 2017,
accumulated other comprehensive loss increased $6.3 million to a
total of $124.8 million as of December 31, 2017, due primarily to
foreign exchange rate changes in Turkey compared to the U.S.
Dollar. The financial statement impact is 100% non-cash and is
reflected in other comprehensive (loss) income on the Consolidated
Statement of Comprehensive (Loss) Income and in shareholder’s
equity on the Summary Consolidated Balance Sheets. This adjustment
impacts the value of comprehensive income and shareholders’ equity
but does not impact net income or earnings per share.
The Company records its foreign operations’
assets, liabilities, and transactions in the functional currency,
which for Turkey is the New Turkish Lira and for Bulgaria is the
Bulgarian Lev. For more information regarding the effects of
foreign currency exchange on Company operations and reported
financial results, please refer to the Annual Report on Form 10-K
for the year ended December 31, 2017, filed with the Securities and
Exchange Commission on March 21, 2018.
Liquidity
During 2017, the Company paid off and retired
its 13.0% Senior Convertible Notes due 2017 (the “2017 Notes”) that
matured on July 1, 2017 and closed the sale of TBNG for gross
proceeds of $20.7 million and net cash proceeds of $16.1 million.
In addition, the Company entered into an additional $20.4 million
term loan (the “2017 Term Loan”) with DenizBank, A.S (“DenizBank”)
under the Company’s general credit agreement with DenizBank. The
2017 Term Loan is in addition to the Company’s term loan currently
outstanding with Denizbank (the “2016 Term Loan”), as described in
the Company’s previous periodic reports filed
from time to time with the Securities and Exchange
Commission.
The Company’s primary sources of liquidity for
2017 were its cash and cash equivalents, cash flow from operations,
borrowings under the 2016 Term Loan and the 2017 Term Loan, and the
net proceeds from the sale of TBNG. At December 31, 2017, the
Company had cash and cash equivalents of $18.9 million, $13.0
million in long-term debt, $15.6 million in short-term debt, and a
working capital surplus of $12.8 million, as compared to cash and
cash equivalents of $10.0 million, $3.8 million in long-term debt,
$38.2 million in short-term debt, and a working capital deficit of
$17.3 million (excluding assets and liabilities held for sale) at
December 31, 2016.
As of December 31, 2017, the Company had $28.6
million of debt and $46.1 million of 12.0% Series A Convertible
Redeemable Preferred Shares (the “Series A Preferred Shares”)
outstanding.
Operational Update
Southeastern Turkey
Selmo
In January 2018, the Company spud the Selmo-81H2
well, which is the first of a six-well Selmo development program.
Drilling is ongoing, and the Company expects to start completions
operations in the first half of 2018.
Bahar
The Company expects to drill one development
well in the Bahar field in 2018. The Company may drill an
additional Bahar well, contingent on financing.
Molla
The Company is currently preparing the location
for the Yeniev-1 exploration well, targeting the Bedinan, Hazro and
Mardin formations. The Company expects to spud the Yeniev-1 in the
second quarter of 2018.
Northwestern Turkey. The Company continues to
evaluate its prospects in the Thrace Basin in light of the recent
positive production test results at the Yamalik-1 exploration well
operated by Valeura with their partner Statoil. The Yamalik-1
exploration well is directly adjacent to the Company’s 120,000 net
acres in the Thrace Basin of which the Company believes
approximately 50,000 net acres (100% WI, 87.5% NRI) is analogous to
the Valeura and Statoil acreage. The Company expects to resume
production operations on its Yildurm-1 well on the Temrez license
in 2018. Contingent on financing, the Company may commence a
drilling program on its Temrez license in 2018.
Bulgaria. The Company continues to evaluate its
position in Bulgaria with updated geologic models. The Company has
prepared plans to side track and re-drill the Devinci R-1 well,
which the Company plans to commence in 2018, contingent on
financing.
Presentation at IPAA New
York
The Company’s management will be presenting at
the IPAA New York oil and gas conference on Monday, April 9, 2018
at 4:05 p.m. Eastern time. A live webcast of the event and slide
presentation will be available on the Company’s website
at www.transatlanticpetroleum.com. To access the webcast,
click on “Investors”, select “Events and Presentations”, and click
on “Listen to webcast” under the event listing.
Conference Call and Webcast
Details
Date and Time: 7:30 a.m. Central
time on Thursday, March 22, 2018
Call-In Information: The Company will host a
live webcast and conference call on Thursday, March 22, 2018
at 7:30 a.m. Central time to discuss fourth quarter and fiscal
year ended December 31, 2017 financial results and to provide
an operational update. Investors who would like to
participate in the conference call should call (877) 878-2762 or
(678) 809-1005 approximately ten minutes prior to the scheduled
start time and ask for the TransAtlantic conference call. The
conference ID is 3854639.
To Ask a Question: The conference call will be
moderated by Lytham Partners, an investor relations firm.
Investors interested in having a question asked of management may
submit the question for review in advance
to TAT@LythamPartners.com, who will submit appropriate
questions to management for the call, or alternatively they can ask
the questions live during the conference call.
Webcast and Presentation: A live webcast of the
conference call and replay, as well as a presentation to accompany
the call, will be available through the Company’s website
at www.transatlanticpetroleum.com. To access the webcast and
replay, click on “Investors,” select “Events and Presentations,”
and click on “Listen to webcast” under the event listing. To access
the presentation, please click on “View 2017 Earnings Call
Presentation” under the event listing. The webcast will be
available via replay as well. The webcast requires IOS,
Microsoft Windows Media Player, or RealOne Player.
Replay: A telephonic replay of the call will be
available through March 23, 2018 and may be accessed by
dialing (855) 859-2056 or (404) 537-3406. The conference ID is
3854639.
Annual Report on Form 10-K
The Company filed its Annual Report on Form 10-K
for the year ended December 31, 2017 on March 21, 2018.
TransAtlantic Petroleum
Ltd.Consolidated Statements of Comprehensive
(Loss) Income(U.S. Dollars and shares in
thousands, except per share amounts)
|
For the Three Months Ended |
|
|
For the Twelve Months Ended Dec
31, |
|
|
Dec 31, 2017 |
|
|
Sept 30, 2017 |
|
|
Dec 31, 2016 |
|
|
2017 |
|
|
2016 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues |
$ |
15,187 |
|
|
$ |
12,675 |
|
|
$ |
18,672 |
|
|
$ |
56,639 |
|
|
$ |
68,595 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
3,451 |
|
|
|
2,997 |
|
|
|
3,343 |
|
|
|
12,249 |
|
|
|
12,368 |
|
Exploration, abandonment and impairment |
|
685 |
|
|
|
141 |
|
|
|
2,999 |
|
|
|
934 |
|
|
|
5,963 |
|
Cost of
purchased natural gas |
|
– |
|
|
|
– |
|
|
|
1,154 |
|
|
|
568 |
|
|
|
4,418 |
|
Seismic
and other exploration |
|
1,677 |
|
|
|
2,966 |
|
|
|
20 |
|
|
|
4,723 |
|
|
|
104 |
|
General
and administrative |
|
3,514 |
|
|
|
2,532 |
|
|
|
4,919 |
|
|
|
12,817 |
|
|
|
16,320 |
|
Depreciation, depletion and amortization |
|
3,901 |
|
|
|
4,272 |
|
|
|
5,972 |
|
|
|
16,925 |
|
|
|
29,025 |
|
Accretion
of asset retirement obligations |
|
46 |
|
|
|
49 |
|
|
|
88 |
|
|
|
190 |
|
|
|
373 |
|
Total costs and expenses |
|
13,274 |
|
|
|
12,957 |
|
|
|
18,495 |
|
|
|
48,406 |
|
|
|
68,571 |
|
Operating (loss) income |
|
1,913 |
|
|
|
(282 |
) |
|
|
177 |
|
|
|
8,233 |
|
|
|
24 |
|
Other (expense)
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
sale of TBNG |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(15,226 |
) |
|
|
– |
|
Interest
and other expense |
|
(1,857 |
) |
|
|
(2,322 |
) |
|
|
(2,735 |
) |
|
|
(8,838 |
) |
|
|
(11,841 |
) |
Interest
and other income |
|
435 |
|
|
|
182 |
|
|
|
1,135 |
|
|
|
1,098 |
|
|
|
2,546 |
|
(Loss)
gain on commodity derivative contracts |
|
(2,151 |
) |
|
|
(1,365 |
) |
|
|
(838 |
) |
|
|
(1,852 |
) |
|
|
(3,257 |
) |
Foreign
exchange (loss) gain |
|
(806 |
) |
|
|
(48 |
) |
|
|
(3,212 |
) |
|
|
(1,861 |
) |
|
|
(3,871 |
) |
Total other (expense) income |
|
(4,379 |
) |
|
|
(3,553 |
) |
|
|
(5,650 |
) |
|
|
(26,679 |
) |
|
|
(16,423 |
) |
Loss from
continuing operations before income taxes |
|
(2,466 |
) |
|
|
(3,835 |
) |
|
|
(5,473 |
) |
|
|
(18,446 |
) |
|
|
(16,399 |
) |
Income
tax expense |
|
(1,573 |
) |
|
|
(518 |
) |
|
|
(226 |
) |
|
|
(5,429 |
) |
|
|
(6,046 |
) |
Net loss from
continuing operations |
|
(4,039 |
) |
|
|
(4,353 |
) |
|
|
(5,699 |
) |
|
|
(23,875 |
) |
|
|
(22,445 |
) |
Net income
(loss) from discontinued operations |
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
16,202 |
|
Net (loss)
income |
|
(4,039 |
) |
|
|
(4,353 |
) |
|
|
(5,699 |
) |
|
|
(23,875 |
) |
|
|
(6,243 |
) |
Other
comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment |
|
(6,278 |
) |
|
|
(1,223 |
) |
|
|
(15,449 |
) |
|
|
15,550 |
|
|
|
(18,726 |
) |
Comprehensive
(loss) income |
$ |
(10,317 |
) |
|
$ |
(5,576 |
) |
|
$ |
(21,148 |
) |
|
$ |
(8,325 |
) |
|
$ |
(24,969 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
(loss) income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.09 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.51 |
) |
Discontinued operations |
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
0.37 |
|
Weighted
average common shares outstanding |
|
46,880 |
|
|
|
47,725 |
|
|
|
46,880 |
|
|
|
48,196 |
|
|
|
43,885 |
|
Diluted
net (loss) income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
$ |
(0.09 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.51 |
) |
Discontinued operations |
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
– |
|
|
$ |
0.37 |
|
Weighted
average common and common equivalent shares outstanding |
|
46,880 |
|
|
|
47,725 |
|
|
|
46,880 |
|
|
|
48,196 |
|
|
|
43,885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TransAtlantic Petroleum
Ltd.Summary Consolidated Statements of Cash
Flows(in thousands of U.S. Dollars)
|
For the Year Ended December 31, |
|
U.S. Dollars in
thousands |
2017 |
|
|
2016 |
|
Net cash provided by
operating activities from continuing operations |
$ |
17,880 |
|
|
$ |
21,353 |
|
Net cash used in
investing activities from continuing operations |
|
3,660 |
|
|
|
(8,518 |
) |
Net cash used in
financing activities from continuing operations |
|
(13,411 |
) |
|
|
(7,351 |
) |
Net cash provided by
(used in) discontinued operations |
|
- |
|
|
|
220 |
|
Effect of exchange rate
changes on cash |
|
(787 |
) |
|
|
(1,599 |
) |
Net increase (decrease)
in cash and cash equivalents |
$ |
7,342 |
|
|
$ |
4,105 |
|
|
|
|
|
|
|
|
|
TransAtlantic Petroleum
Ltd.Summary Consolidated Balance
Sheets(in thousands of U.S. Dollars)
|
2017 |
|
|
2016 |
|
ASSETS |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
18,926 |
|
|
$ |
10,034 |
|
Restricted cash |
|
– |
|
|
|
2,555 |
|
Accounts
receivable, net |
|
|
|
|
|
|
|
Oil and
natural gas sales |
|
15,808 |
|
|
|
17,885 |
|
Joint
interest and other |
|
1,576 |
|
|
|
3,230 |
|
Related
party |
|
1,023 |
|
|
|
762 |
|
Prepaid
and other current assets |
|
3,866 |
|
|
|
4,756 |
|
Inventory |
|
7,494 |
|
|
|
3,647 |
|
Assets
held for sale |
|
– |
|
|
|
25,217 |
|
Total
current assets |
|
48,693 |
|
|
|
68,086 |
|
Property and
equipment: |
|
|
|
|
|
|
|
Oil and
natural gas properties (successful efforts method) |
|
|
|
|
|
|
|
Proved |
|
193,647 |
|
|
|
197,214 |
|
Unproved |
|
24,445 |
|
|
|
21,109 |
|
Equipment
and other property |
|
14,075 |
|
|
|
20,273 |
|
|
|
232,167 |
|
|
|
238,596 |
|
Less
accumulated depreciation, depletion and amortization |
|
(129,183 |
) |
|
|
(120,638 |
) |
Property
and equipment, net |
|
102,984 |
|
|
|
117,958 |
|
Other long-term
assets: |
|
|
|
|
|
|
|
Other
assets |
|
2,247 |
|
|
|
2,725 |
|
Note
receivable - related party |
|
6,726 |
|
|
|
7,624 |
|
Total
other assets |
|
8,973 |
|
|
|
10,349 |
|
Total
assets |
$ |
160,650 |
|
|
$ |
196,393 |
|
|
|
|
|
|
|
|
|
LIABILITIES,
SERIES A PREFERRED SHARES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
$ |
4,853 |
|
|
$ |
7,036 |
|
Accounts
payable - related party |
|
3,141 |
|
|
|
1,844 |
|
Accrued
liabilities (1) |
|
10,014 |
|
|
|
12,492 |
|
Derivative liability |
|
2,215 |
|
|
|
596 |
|
Loans
payable |
|
15,625 |
|
|
|
35,000 |
|
Loan
payable - related party |
|
– |
|
|
|
3,194 |
|
Liabilities held for sale |
|
– |
|
|
|
15,938 |
|
Total
current liabilities |
|
35,848 |
|
|
|
76,100 |
|
Long-term
liabilities: |
|
|
|
|
|
|
|
Asset
retirement obligations |
|
4,727 |
|
|
|
4,833 |
|
Accrued
liabilities |
|
8,810 |
|
|
|
8,126 |
|
Deferred
income taxes |
|
19,611 |
|
|
|
18,806 |
|
Loans
payable |
|
13,000 |
|
|
|
3,750 |
|
Derivative liability |
|
– |
|
|
|
242 |
|
Total
long-term liabilities |
|
46,148 |
|
|
|
35,757 |
|
Total
liabilities |
|
81,996 |
|
|
|
111,857 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
Series A
preferred shares, $0.01 par value, 426,000 shares authorized;
426,000 shares issued and outstanding with a liquidation preference
of $50 per share as of December 31, 2017 |
|
21,300 |
|
|
|
25,500 |
|
Series A
preferred shares-related party, $0.01 par value, 495,000 shares
authorized; 495,000 shares issued and outstanding with a
liquidation preference of $50 per share as of December 31,
2017 |
|
24,750 |
|
|
|
20,550 |
|
Shareholders'
equity: |
|
|
|
|
|
|
|
Common
shares, $0.10 par value, 100,000,000 shares authorized; 50,319,156
shares and 47,220,525 shares issued and outstanding as of December
31, 2017 and 2016, respectively |
|
5,032 |
|
|
|
4,722 |
|
Treasury
stock |
|
(970 |
) |
|
|
(970 |
) |
Additional paid-in-capital |
|
575,411 |
|
|
|
573,278 |
|
Accumulated other comprehensive loss |
|
(124,766 |
) |
|
|
(140,316 |
) |
Accumulated deficit |
|
(422,103 |
) |
|
|
(398,228 |
) |
Total
shareholders' equity |
|
32,604 |
|
|
|
38,486 |
|
Total
liabilities, Series A preferred shares and shareholders'
equity |
$ |
160,650 |
|
|
$ |
196,393 |
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss from
Continuing Operations to Adjusted EBITDAX
(Unaudited)(in thousands of U.S.
Dollars)
|
For the Three Months Ended |
|
|
For the Twelve Months Ended |
|
U.S. Dollars in
thousands |
Dec 31, 2017 |
|
|
Sept 30, 2017 |
|
|
Dec 31, 2016 |
|
|
2017 |
|
|
2016 |
|
Net loss from
continuing operations |
$ |
(4,039 |
) |
|
$ |
(4,353 |
) |
|
$ |
(5,699 |
) |
|
$ |
(23,875 |
) |
|
$ |
(22,445 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
and other, net |
|
1,422 |
|
|
|
2,140 |
|
|
|
1,600 |
|
|
|
7,740 |
|
|
|
9,295 |
|
Current
and deferred income tax expense |
|
1,573 |
|
|
|
518 |
|
|
|
226 |
|
|
|
5,429 |
|
|
|
6,046 |
|
Exploration, abandonment, and impairment |
|
685 |
|
|
|
141 |
|
|
|
2,999 |
|
|
|
934 |
|
|
|
5,963 |
|
Seismic
expense |
|
1,677 |
|
|
|
2,966 |
|
|
|
20 |
|
|
|
4,723 |
|
|
|
104 |
|
Foreign
exchange loss (gain) |
|
806 |
|
|
|
48 |
|
|
|
3,212 |
|
|
|
1,861 |
|
|
|
3,871 |
|
Share-based compensation |
|
136 |
|
|
|
142 |
|
|
|
133 |
|
|
|
692 |
|
|
|
629 |
|
Loss
(gain) on commodity derivative contracts |
|
2,151 |
|
|
|
1,365 |
|
|
|
838 |
|
|
|
1,852 |
|
|
|
3,257 |
|
Cash
settlements on commodity derivative contracts |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
32 |
|
|
|
4,188 |
|
Accretion
of asset retirement obligation |
|
46 |
|
|
|
49 |
|
|
|
88 |
|
|
|
190 |
|
|
|
373 |
|
Depreciation, depletion, and amortization |
|
3,901 |
|
|
|
4,272 |
|
|
|
5,972 |
|
|
|
16,925 |
|
|
|
29,025 |
|
Net other
items |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
15,256 |
|
|
|
582 |
|
Adjusted EBITDAX from
continuing operations |
$ |
8,358 |
|
|
$ |
7,288 |
|
|
$ |
9,389 |
|
|
$ |
31,759 |
|
|
$ |
40,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAX from continuing operations
(“Adjusted EBITDAX”) is a non-GAAP financial measure that
represents net loss from continuing operations plus interest and
other, net, current and deferred income tax expense, exploration,
abandonment, and impairment, seismic and other exploration expense,
foreign exchange loss (gain), share based compensation expense,
loss (gain) on commodity derivative contracts, cash settlements on
commodity derivative contracts, accretion of asset retirement
obligation, depreciation, depletion, and amortization, and net
other items.
The Company believes Adjusted EBITDAX assists
management and investors in comparing the Company’s performance on
a consistent basis without regard to depreciation, depletion, and
amortization and impairment of oil and natural gas properties and
exploration expenses, among other items, which can vary
significantly from period to period. In addition, management uses
Adjusted EBITDAX as a financial measure to evaluate the Company’s
operating performance.
Adjusted EBITDAX is not a measure of financial
performance under GAAP. Accordingly, it should not be considered as
a substitute for net income or income from continuing operations
prepared in accordance with GAAP. Net income or income from
continuing operations may vary materially from Adjusted EBITDAX.
Investors should carefully consider the specific items included in
the computation of Adjusted EBITDAX.
About TransAtlantic
The Company is an international oil and natural
gas company engaged in the acquisition, exploration, development,
and production of oil and natural gas. The Company holds interests
in developed and undeveloped properties in Turkey and Bulgaria.
(NO STOCK EXCHANGE, SECURITIES
COMMISSION, OR OTHER REGULATORY AUTHORITY HAS APPROVED OR
DISAPPROVED THE INFORMATION CONTAINED HEREIN.)
Forward-Looking Statements
This news release contains statements concerning
the marketing of the Company, the Company’s drilling program, the
evaluation of the Company’s prospects in the Thrace Basin in
Turkey, the Molla Area of Southeast Turkey, and Bulgaria, the
drilling, completion, and cost of wells, the production and sale of
oil and natural gas, the holding of an earnings conference call,
and the issuance of an operations update, as well as other
expectations, plans, goals, objectives, assumptions, and
information about future events, conditions, results of operations,
and performance that may constitute forward-looking statements or
information under applicable securities legislation. Such
forward-looking statements or information are based on a number of
assumptions, which may prove to be incorrect.
Although the Company believes that the
expectations reflected in such forward-looking statements or
information are reasonable, undue reliance should not be placed on
forward-looking statements because the Company can give no
assurance that such expectations will prove to be correct.
Forward-looking statements or information are based on current
expectations, estimates, and projections that involve a number of
risks and uncertainties which could cause actual results to differ
materially from those anticipated by the Company and described in
the forward-looking statements or information. These risks and
uncertainties include, but are not limited to, access to sufficient
capital; market prices for natural gas, natural gas liquids, and
oil products; estimates of reserves and economic assumptions; the
ability to produce and transport natural gas, natural gas liquids,
and oil products; the results of exploration and development
drilling and related activities; economic conditions in the
countries and provinces in which the Company carries on business,
especially economic slowdowns; actions by governmental authorities;
receipt of required approvals; increases in taxes; legislative and
regulatory initiatives relating to fracture stimulation activities;
changes in environmental and other regulations; renegotiations of
contracts; political uncertainty, including actions by insurgent
groups or other conflict; outcomes of litigation; the negotiation
and closing of material contracts; and other risks described in the
Company’s filings with the SEC.
The forward-looking statements or information
contained in this news release are made as of the date hereof and
the Company undertakes no obligation to update publicly or revise
any forward-looking statements or information, whether as a result
of new information, future events, or otherwise, unless so required
by applicable securities laws.
Note on BOE
Barrels of oil equivalent, or BOE, are derived
by the Company by converting natural gas to oil in the ratio of six
thousand cubic feet of natural gas (“MCF”) to one stock tank
barrel, or 42 U.S. gallons liquid volume (“BBL”), of oil. A BOE
conversion ratio of six MCF to one BBL is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead. BOE
may be misleading, particularly if used in isolation.
Contacts:
Chad D. BurkhardtVice President, General Counsel
and Corporate Secretary(214) 265-4705
TransAtlantic Petroleum Ltd.16803 Dallas
ParkwayAddison, Texas
75001http://www.transatlanticpetroleum.com
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