HOUSTON, Nov. 13, 2017 /PRNewswire/ -- Yuma Energy,
Inc. (NYSE American: YUMA) (the "Company" or "Yuma") today
announced its financial results for the quarter ended September 30, 2017.
Third Quarter 2017 Highlights
- Net average production of 2,348 Boe/d for the third quarter of
2017, a 53.5 percent increase over the third quarter of 2016.
- Cash provided by operations of $4,472,028 for the nine months ended September 30, 2017, compared to cash used in
operations of $927,802 in the same
period in 2016.
- Yuma's Permian Basin acreage position has increased to 3,068
acres (2,685 net acres) in Yoakum County,
Texas to horizontally develop the San Andres Oil Play. Yuma
is the operator of the acreage with an 87.5 percent working
interest, and has spud its salt water disposal well and intends to
drill its first joint venture well in 2017, as well as continue to
acquire additional acreage within its 33,280 acre Area of Mutual
Interest ("AMI").
- Yuma's borrowing base on its credit facility was reaffirmed on
September 8, 2017 at $40.5 million, with the next scheduled
redetermination set for April 1,
2018.
Recent Developments
- Yuma closed its common stock offering of 9,600,000 shares of
common stock on October 3, and
subsequently on October 31, 2017, the
Underwriters exercised their overallotment option and purchased
500,000 additional shares of common stock to bring the total gross
proceeds of the offering to $10,100,000 before deducting underwriters' fees
and offering expenses.
Management Comments
Sam L. Banks, CEO of Yuma Energy,
Inc., commented, "We have continued to increase our acreage
position in the Permian Basin at very attractive prices and are
currently preparing to drill our first horizontal well and salt
water disposal well in the San Andres horizontal oil play. We
intend to finish drilling operations for both wells in 2017 and to
establish commercial production during the first quarter of
2018. We continue to believe that increasing our exposure to
the Permian Basin, and more specifically the San Andres horizontal
oil play, will lead to significant shareholder value over
time. As can be seen in the results of our first three
quarters, 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 us for the three
and nine months ended September 30,
2017 and 2016, and the average sales price per unit
sold.
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Production
volumes:
|
|
|
|
|
|
|
|
Crude oil and
condensate (Bbls)
|
57,134
|
|
32,242
|
|
199,774
|
|
106,257
|
Natural gas
(Mcf)
|
757,361
|
|
507,521
|
|
2,442,899
|
|
1,553,906
|
Natural gas liquids
(Bbls)
|
32,694
|
|
23,903
|
|
101,260
|
|
74,282
|
Total
(Boe) (1)
|
216,055
|
|
140,732
|
|
708,184
|
|
439,523
|
Average prices
realized:
|
|
|
|
|
|
|
|
Crude
oil and condensate (per Bbl)
|
$47.86
|
|
$43.45
|
|
$48.42
|
|
$39.27
|
Natural
gas (per Mcf)
|
$3.04
|
|
$2.46
|
|
$3.05
|
|
$2.12
|
Natural
gas liquids (per Bbl)
|
$23.81
|
|
$16.66
|
|
$23.68
|
|
$14.96
|
|
|
(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 our revenues for the three and nine
months ended September 30, 2017 and
2016.
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Sales of natural gas
and crude oil:
|
|
|
|
|
|
|
|
Crude oil and
condensate
|
$
2,734,269
|
|
$
1,400,837
|
|
$
9,673,049
|
|
$
4,172,477
|
Natural
gas
|
2,304,154
|
|
1,249,148
|
|
7,445,564
|
|
3,295,258
|
Natural gas
liquids
|
778,460
|
|
398,264
|
|
2,397,398
|
|
1,111,402
|
Total
revenues
|
$
5,816,883
|
|
$
3,048,249
|
|
$
19,516,011
|
|
$
8,579,137
|
Expenses
The Company's lease operating expenses ("LOE") and LOE per Boe
for the three and nine month periods ended September 30, 2017 and 2016, are set forth
below:
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Lease operating
expenses
|
$1,506,747
|
|
$
810,115
|
|
$5,049,551
|
|
$2,043,298
|
Severance, ad valorem
taxes and marketing
|
1,002,605
|
|
423,511
|
|
3,180,189
|
|
1,268,104
|
Total LOE
|
$2,509,352
|
|
$1,233,626
|
|
$8,229,740
|
|
$3,311,402
|
|
|
|
|
|
|
|
|
LOE per
Boe
|
$11.61
|
|
$8.77
|
|
$11.62
|
|
$7.53
|
LOE per Boe without
severance, ad valorem taxes and
marketing
|
$6.97
|
|
$5.76
|
|
$7.13
|
|
$4.65
|
Commodity Derivative Instruments
Commodity derivative instruments open as of September 30, 2017 are provided below.
Natural gas prices are NYMEX Henry Hub prices, and crude oil prices
are NYMEX West Texas Intermediate.
|
2017
|
|
2018
|
|
2019
|
|
Settlement
|
|
Settlement
|
|
Settlement
|
NATURAL GAS
(MMBtu):
|
|
|
|
|
|
Swaps
|
|
|
|
|
|
Volume
|
517,916
|
|
1,725,133
|
|
373,906
|
Price
|
$3.13
|
|
$3.00
|
|
$3.00
|
|
|
|
|
|
|
3-way
collars
|
|
|
|
|
|
Volume
|
41,712
|
|
-
|
|
-
|
Ceiling sold price
(call)
|
$3.39
|
|
-
|
|
-
|
Floor purchased price
(put)
|
$3.03
|
|
-
|
|
-
|
Floor sold price
(short put)
|
$2.47
|
|
-
|
|
-
|
|
|
|
|
|
|
CRUDE OIL
(Bbls):
|
|
|
|
|
|
Swaps
|
|
|
|
|
|
Volume
|
31,927
|
|
195,152
|
|
156,320
|
Price
|
$52.24
|
|
$53.17
|
|
$53.77
|
|
|
|
|
|
|
3-way
collars
|
|
|
|
|
|
Volume
|
26,637
|
|
-
|
|
-
|
Ceiling sold price
(call)
|
$77.00
|
|
-
|
|
-
|
Floor purchased price
(put)
|
$60.00
|
|
-
|
|
-
|
Floor sold price
(short put)
|
$45.00
|
|
-
|
|
-
|
About Yuma Energy, Inc.
Yuma Energy, Inc., 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 drilling, developing and producing both oil and natural gas
assets. More recently, the Company has begun acquiring
acreage in Yoakum County, Texas,
with plans to explore and develop oil and natural gas assets in the
Permian Basin. Finally, the Company has operated positions in
Kern County, California, and
non-operated positions in the East Texas Woodbine and the Bakken
Shale in North Dakota. 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.
Yuma Energy,
Inc.
|
|
CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
270,359
|
|
$
3,625,686
|
Accounts receivable,
net of allowance for doubtful accounts:
|
|
|
|
Trade
|
3,893,803
|
|
4,827,798
|
Officers and
employees
|
48,575
|
|
68,014
|
Common stock
subscription receivable
|
8,690,400
|
|
-
|
Other
|
1,186,320
|
|
1,757,337
|
Commodity derivative
instruments
|
359,965
|
|
-
|
Prepayments
|
347,529
|
|
1,063,418
|
Other deferred
charges
|
437,165
|
|
284,305
|
|
|
|
|
Total current
assets
|
15,234,116
|
|
11,626,558
|
|
|
|
|
OIL AND GAS
PROPERTIES (full cost method):
|
|
|
|
Proved
properties
|
490,280,184
|
|
488,723,905
|
Unproved properties -
not subject to amortization
|
5,584,644
|
|
3,656,989
|
|
|
|
|
|
495,864,828
|
|
492,380,894
|
Less:
accumulated depreciation, depletion and amortization
|
(418,916,482)
|
|
(410,440,433)
|
|
|
|
|
Net oil and gas
properties
|
76,948,346
|
|
81,940,461
|
|
|
|
|
OTHER PROPERTY AND
EQUIPMENT:
|
|
|
|
Land, buildings and
improvements
|
1,600,000
|
|
1,600,000
|
Other property and
equipment
|
2,845,459
|
|
7,136,530
|
|
4,445,459
|
|
8,736,530
|
Less: accumulated
depreciation and amortization
|
(1,369,302)
|
|
(5,349,145)
|
|
|
|
|
Net other property
and equipment
|
3,076,157
|
|
3,387,385
|
|
|
|
|
OTHER ASSETS AND
DEFERRED CHARGES:
|
|
|
|
Commodity derivative
instruments
|
415,091
|
|
-
|
Deposits
|
467,592
|
|
467,306
|
Other noncurrent
assets
|
333,587
|
|
517,201
|
|
|
|
|
Total other assets
and deferred charges
|
1,216,270
|
|
984,507
|
|
|
|
|
TOTAL
ASSETS
|
$
96,474,889
|
|
$
97,938,911
|
Yuma Energy,
Inc.
|
|
CONSOLIDATED BALANCE
SHEETS – CONTINUED
|
(Unaudited)
|
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
debt
|
$
-
|
|
$
599,341
|
Accounts payable,
principally trade
|
12,922,251
|
|
11,009,631
|
Commodity derivative
instruments
|
-
|
|
1,340,451
|
Asset retirement
obligations
|
359,659
|
|
376,735
|
Other accrued
liabilities
|
1,875,211
|
|
2,572,680
|
|
|
|
|
Total current
liabilities
|
15,157,121
|
|
15,898,838
|
|
|
|
|
LONG-TERM
DEBT
|
31,450,000
|
|
39,500,000
|
|
|
|
|
OTHER NONCURRENT
LIABILITIES:
|
|
|
|
Asset retirement
obligations
|
9,717,448
|
|
9,819,648
|
Commodity derivative
instruments
|
-
|
|
1,215,551
|
Deferred
rent
|
286,907
|
|
-
|
Employee stock
awards
|
93,669
|
|
-
|
|
|
|
|
Total other
noncurrent liabilities
|
10,098,024
|
|
11,035,199
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES (Note 14)
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
Series D convertible
preferred stock ($0.001 par value,
7,000,000 authorized, 1,871,373 issued as of September 30,
2017, and 1,776,718 issued as of December
31, 2016, $11.07 per share liquidation preference)
|
1,872
|
|
1,777
|
Common stock
($0.001 par value, 100 million shares
authorized, 12,559,608 outstanding as of September 30, 2017 and 12,201,884 outstanding as of
December 31, 2016)
|
12,560
|
|
12,202
|
Common stock
subscribed (9,600,000 shares, funds received October 3,
2017)
|
9,600
|
|
-
|
Additional paid-in
capital
|
54,035,879
|
|
43,877,563
|
Treasury stock at
cost (12,433 shares as of September 30, 2017 and -0- shares
as of December 31,
2016)
|
(24,432)
|
|
-
|
Accumulated earnings
(deficit)
|
(14,265,735)
|
|
(12,386,668)
|
|
|
|
|
Total
equity
|
39,769,744
|
|
31,504,874
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
96,474,889
|
|
$
97,938,911
|
Yuma Energy,
Inc.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
Sales of natural gas
and crude oil
|
$
5,816,883
|
|
$
3,048,249
|
|
$
19,516,011
|
|
$
8,579,137
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
Lease operating and
production costs
|
2,509,352
|
|
1,233,626
|
|
8,229,740
|
|
3,311,402
|
General and
administrative – stock-based compensation
|
414,660
|
|
380,460
|
|
851,492
|
|
1,664,855
|
General and
administrative – other
|
1,622,528
|
|
1,717,627
|
|
5,705,159
|
|
8,153,874
|
Depreciation,
depletion and amortization
|
2,761,668
|
|
1,524,877
|
|
8,666,052
|
|
5,357,207
|
Asset retirement
obligation accretion expense
|
138,867
|
|
51,885
|
|
418,890
|
|
158,960
|
Impairment of oil and
gas properties
|
-
|
|
12,735
|
|
-
|
|
17,560,918
|
Bad debt expense net
of recoveries
|
(38,706)
|
|
16,602
|
|
34,807
|
|
32,352
|
Total
expenses
|
7,408,369
|
|
4,937,812
|
|
23,906,140
|
|
36,239,568
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(1,591,486)
|
|
(1,889,563)
|
|
(4,390,129)
|
|
(27,660,431)
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
Net gains (losses)
from commodity derivatives
|
(1,260,280)
|
|
128,177
|
|
4,434,583
|
|
(161,161)
|
Interest
expense
|
(429,313)
|
|
(81,168)
|
|
(1,407,689)
|
|
(195,006)
|
Gain (loss) on other
property and equipment
|
-
|
|
-
|
|
484,768
|
|
-
|
Other, net
|
14,043
|
|
1,157
|
|
56,110
|
|
14,622
|
Total other income
(expense)
|
(1,675,550)
|
|
48,166
|
|
3,567,772
|
|
(341,545)
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(3,267,036)
|
|
(1,841,397)
|
|
(822,357)
|
|
(28,001,976)
|
|
|
|
|
|
|
|
|
Income tax
expense
|
2,539
|
|
33,635
|
|
8,489
|
|
6,866
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
(3,269,575)
|
|
(1,875,032)
|
|
(830,846)
|
|
(28,008,842)
|
|
|
|
|
|
|
|
|
PREFERRED
STOCK:
|
|
|
|
|
|
|
|
Dividends paid in
kind
|
359,311
|
|
335,199
|
|
1,048,221
|
|
981,347
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON
STOCKHOLDERS
|
$
(3,628,886)
|
|
$
(2,210,231)
|
|
$
(1,879,067)
|
|
$
(28,990,189)
|
|
|
|
|
|
|
|
|
INCOME (LOSS) PER
COMMON SHARE:
|
|
|
|
|
|
|
|
Basic
|
($0.29)
|
|
($0.30)
|
|
($0.15)
|
|
($3.89)
|
Diluted
|
($0.29)
|
|
($0.30)
|
|
($0.15)
|
|
($3.89)
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
Basic
|
12,483,724
|
|
7,444,542
|
|
12,311,087
|
|
7,446,986
|
Diluted
|
12,483,724
|
|
7,444,542
|
|
12,311,087
|
|
7,446,986
|
Yuma Energy,
Inc.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Nine Months Ended
September 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)
|
$
(830,846)
|
|
$
(28,008,842)
|
Depreciation,
depletion and amortization of property and equipment
|
8,666,052
|
|
5,357,207
|
Impairment of oil and
gas properties
|
-
|
|
17,560,918
|
Amortization of debt
issuance costs
|
277,293
|
|
-
|
Net deferred income
tax expense
|
-
|
|
6,866
|
Deferred rent
liability, net
|
163,962
|
|
-
|
Stock-based
compensation expense
|
851,492
|
|
1,664,855
|
Settlement of asset
retirement obligations
|
(430,415)
|
|
(17,890)
|
Accretion of asset
retirement obligation
|
418,890
|
|
158,960
|
Bad debt
expense
|
34,807
|
|
32,352
|
Net (gains) losses
from commodity derivatives
|
(4,434,583)
|
|
161,161
|
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
|
736,959
|
|
2,988,184
|
(Increase) decrease
in prepaids, deposits and other assets
|
715,603
|
|
656,948
|
(Decrease) increase
in accounts payable and other current and non-current liabilities
|
(1,177,583)
|
|
(1,488,521)
|
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES
|
4,472,028
|
|
(927,802)
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Capital expenditures
for oil and gas properties
|
(5,964,781)
|
|
(9,878,724)
|
Proceeds from sale of
oil and gas properties
|
5,400,563
|
|
-
|
Proceeds from sale of
other fixed assets
|
645,791
|
|
-
|
Derivative
settlements
|
1,103,525
|
|
1,319,517
|
NET CASH PROVIDED BY
(USED IN) INVESTING ACTIVITIES
|
1,185,098
|
|
(8,559,207)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from
borrowings
|
-
|
|
9,000,000
|
Net repayments on the
senior credit facility
|
(8,050,000)
|
|
-
|
Repayments of
borrowings - insurance financing
|
(599,341)
|
|
-
|
Debt issuance
costs
|
(323,593)
|
|
-
|
Costs for common
stock offering
|
(15,087)
|
|
-
|
Treasury stock
repurchases
|
(24,432)
|
|
(408,323)
|
NET CASH PROVIDED BY
(USED IN) FINANCING ACTIVITIES
|
(9,012,453)
|
|
8,591,677
|
|
|
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(3,355,327)
|
|
(895,332)
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
3,625,686
|
|
4,064,094
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
$
270,359
|
|
$
3,168,762
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Interest payments
(net of interest capitalized)
|
$
1,021,249
|
|
$
193,985
|
Income tax
refund
|
$
20,699
|
|
$
-
|
Supplemental
disclosure of significant non-cash activity:
|
|
|
|
(Increase) decrease
in capital expenditures financed by accounts payable
|
$
(3,291,386)
|
|
$
498,140
|
Common stock
subscription receivable (net of $909,600 offering costs at
closing)
|
$
8,690,400
|
|
$
-
|
Other accrued
offering expenses
|
$
271,227
|
|
$
-
|
View original
content:http://www.prnewswire.com/news-releases/yuma-energy-inc-announces-third-quarter-2017-financial-results-300554521.html
SOURCE Yuma Energy, Inc.