HOUSTON, April 2, 2018 /PRNewswire/ -- Yuma Energy, Inc.
(NYSE American: YUMA) (the "Company" or "Yuma") today
announced its financial results for the year ended December 31, 2017.
Year End 2017 Highlights
- Yuma spud its first San Andres horizontal well in December 2017 and completed it during the first
quarter of 2018. All of the associated facilities have been
installed and the well is currently in the early stages of
production, recovering frac fluids and dewatering the near wellbore
area.
- Net average production for the year ended December 31, 2017 was 2,454 Boe/d, or 34.8%
higher than the net average production for the prior year of 1,820
Boe/d.
- Yuma reduced its debt by $11.8
million during 2017, bringing its bank debt down to
$27.7 million.
- Yuma closed its common stock offering of 10,100,000 shares of
common stock in October 2017
(including 500,000 shares purchased pursuant to the underwriters'
overallotment option) for gross proceeds of $10,100,000 before deducting underwriters' fees
and offering expenses.
Management Comments
Sam L. Banks, CEO of Yuma Energy,
Inc., commented, "We are looking forward to the results of our
first San Andres horizontal well, and continuing to expand our
position in the play. During 2018, we intend to take
advantage of the low-risk and low-cost growth opportunities within
our existing inventory, continue the development and expansion of
our San Andres play, and actively pursue acquisitions and
mergers."
Oil and Natural Gas Reserves – SEC Prices
The table below summarizes the Company's estimated proved
reserves at December 31, 2017, 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, 2017.
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 $51.34 per Bbl
West Texas Intermediate and $2.976
per MMBtu Henry Hub, for the year ended December 31, 2017.
Adjustments were made for location and grade. The information in
the following table does not give any effect to or reflect the
Company's commodity derivatives.
|
Oil
(MBbls)
|
|
Natural Gas
Liquids
(MBbls)
|
|
Natural Gas
(MMcf)
|
|
Total
(MBoe)(1)
|
|
Present Value
Discounted at 10%
($ in thousands) (2)
|
Proved
developed
|
1,763
|
|
1,009
|
|
21,131
|
|
6,295
|
|
$
64,028
|
Proved
undeveloped
|
599
|
|
285
|
|
2,465
|
|
1,295
|
|
8,875
|
Total
proved
|
2,362
|
|
1,294
|
|
23,596
|
|
7,590
|
|
$
72,903
|
|
|
|
|
|
|
|
|
|
|
(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) PV10 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, 2017 and
2016, and the average sales price per unit sold.
|
|
Years Ended
December 31,
|
|
|
2017
|
|
2016
|
Production
volumes:
|
|
|
|
|
Crude oil and
condensate (Bbls)
|
|
250,343
|
|
172,003
|
Natural gas
(Mcf)
|
|
3,085,613
|
|
2,326,400
|
Natural gas
liquids (Bbls)
|
|
131,155
|
|
104,689
|
Total (Boe)
(1)
|
|
895,767
|
|
664,425
|
Average prices
realized:
|
|
|
|
|
Crude oil
and condensate (per Bbl)
|
|
$50.32
|
|
$42.21
|
Natural
gas (per Mcf)
|
|
$3.05
|
|
$2.45
|
Natural
gas liquids (per Bbl)
|
|
$26.08
|
|
$17.33
|
|
(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, 2017 and
2016.
|
Years Ended
December 31,
|
|
2017
|
|
2016
|
Sales of natural gas
and crude oil:
|
|
|
|
Crude
oil and condensate
|
$
12,596,983
|
|
$
7,260,169
|
Natural
gas
|
9,425,676
|
|
5,697,879
|
Natural
gas liquids
|
3,420,942
|
|
1,814,660
|
Total
revenues
|
$
25,443,601
|
|
$
14,772,708
|
|
|
|
|
Expenses
The Company's lease operating expenses ("LOE") and LOE per Boe
for the years ended December 31, 2017
and 2016, are set forth below:
|
Years Ended
December 31,
|
|
2017
|
|
2016
|
Lease operating
expenses
|
$
6,715,337
|
|
$
3,303,789
|
Severance, ad valorem
taxes and marketing
|
4,321,976
|
|
2,259,841
|
Total LOE
|
$
11,037,313
|
|
$
5,563,630
|
|
|
|
|
LOE per
Boe
|
$12.32
|
|
$8.37
|
LOE per Boe without
severance, ad valorem taxes and marketing
|
$7.50
|
|
$4.97
|
Commodity Derivative Instruments
Commodity derivative instruments open as of December 31, 2017 are provided below.
Natural gas prices are NYMEX Henry Hub prices, and crude oil prices
are NYMEX West Texas Intermediate.
|
|
2018 Settlement
|
|
2019 Settlement
(1)
|
NATURAL GAS
(MMBtu):
|
|
|
|
|
Swaps
|
|
|
|
|
Volume
|
|
1,725,133
|
|
373,906
|
Price
|
|
$3.00
|
|
$3.00
|
|
|
|
|
|
CRUDE OIL
(Bbls):
|
|
|
|
|
Swaps
|
|
|
|
|
Volume
|
|
195,152
|
|
156,320
|
Price
|
|
$53.17
|
|
$53.77
|
|
|
|
|
|
|
(1)
Represents volumes through March
2019.
|
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 natural 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; 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, 2017, 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.
Yuma Energy,
Inc.
|
|
CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
137,363
|
|
$
3,625,686
|
Accounts receivable,
net of allowance for doubtful accounts:
|
|
|
|
Trade
|
4,496,316
|
|
4,827,798
|
Officer
and employees
|
53,979
|
|
68,014
|
Other
|
1,004,479
|
|
1,757,337
|
Prepayments
|
976,462
|
|
1,063,418
|
Other deferred
charges
|
347,490
|
|
284,305
|
|
|
|
|
Total current
assets
|
7,016,089
|
|
11,626,558
|
|
|
|
|
OIL AND GAS
PROPERTIES (full cost method):
|
|
|
|
Proved
properties
|
494,216,531
|
|
488,723,905
|
Unproved properties -
not subject to amortization
|
6,794,372
|
|
3,656,989
|
|
|
|
|
|
501,010,903
|
|
492,380,894
|
Less:
accumulated depreciation, depletion and amortization
|
(421,165,400)
|
|
(410,440,433)
|
|
|
|
|
Net oil and gas
properties
|
79,845,503
|
|
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
|
(1,409,535)
|
|
(5,349,145)
|
|
|
|
|
Net other property
and equipment
|
3,035,924
|
|
3,387,385
|
|
|
|
|
OTHER ASSETS AND
DEFERRED CHARGES:
|
|
|
|
Deposits
|
467,592
|
|
467,306
|
Other noncurrent
assets
|
270,842
|
|
517,201
|
|
|
|
|
Total other assets
and deferred charges
|
738,434
|
|
984,507
|
|
|
|
|
TOTAL
ASSETS
|
$
90,635,950
|
|
$
97,938,911
|
|
|
|
|
Yuma Energy,
Inc.
|
|
CONSOLIDATED BALANCE
SHEETS – CONTINUED
|
(Unaudited)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
debt
|
$
651,124
|
|
$
599,341
|
Accounts payable,
principally trade
|
11,931,218
|
|
11,009,631
|
Commodity derivative
instruments
|
903,003
|
|
1,340,451
|
Asset retirement
obligations
|
277,355
|
|
376,735
|
Other accrued
liabilities
|
2,295,438
|
|
2,572,680
|
|
|
|
|
Total current
liabilities
|
16,058,138
|
|
15,898,838
|
|
|
|
|
LONG-TERM
DEBT
|
27,700,000
|
|
39,500,000
|
|
|
|
|
OTHER NONCURRENT
LIABILITIES:
|
|
|
|
Asset retirement
obligations
|
10,189,058
|
|
9,819,648
|
Commodity derivative
instruments
|
336,406
|
|
1,215,551
|
Deferred
rent
|
290,566
|
|
-
|
Employee stock
awards
|
191,110
|
|
-
|
|
|
|
|
Total other
noncurrent liabilities
|
11,007,140
|
|
11,035,199
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES (Note 18)
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
Series D convertible
preferred stock
|
|
|
|
($0.001 par
value, 7,000,000 authorized, 1,904,391 issued and
outstanding
|
|
|
|
as of December
31, 2017, and 1,776,718 issued and outstanding as of
|
|
|
|
December 31,
2016)
|
1,904
|
|
1,777
|
Common
stock
|
|
|
|
($0.001 par
value, 100 million shares authorized, 22,661,758 outstanding as
of
|
|
|
|
December 31,
2017 and 12,201,884 outstanding as of December 31, 2016)
|
22,662
|
|
12,202
|
Additional paid-in
capital
|
55,064,685
|
|
43,877,563
|
Treasury stock at
cost (13,343 shares as of December 31, 2017 and -0- shares
as of December 31,
2016)
|
(25,278)
|
|
-
|
Accumulated earnings
(deficit)
|
(19,193,301)
|
|
(12,386,668)
|
|
|
|
|
Total
equity
|
35,870,672
|
|
31,504,874
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
90,635,950
|
|
$
97,938,911
|
|
|
|
|
Yuma Energy,
Inc.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
Years Ended
December 31,
|
|
2017
|
|
2016
|
|
|
|
|
REVENUES:
|
|
|
|
Sales of natural gas
and crude oil
|
$
25,443,601
|
|
$
14,772,708
|
|
|
|
|
EXPENSES:
|
|
|
|
Lease operating and
production costs
|
11,037,313
|
|
5,563,630
|
General and
administrative – stock-based compensation
|
2,381,365
|
|
1,731,969
|
General and
administrative – other
|
6,934,381
|
|
12,727,328
|
Depreciation,
depletion and amortization
|
10,955,203
|
|
8,239,802
|
Asset retirement
obligation accretion expense
|
557,683
|
|
254,573
|
Impairment of oil and
gas properties
|
-
|
|
20,654,848
|
Bad debt
expense
|
335,567
|
|
556,407
|
Total
expenses
|
32,201,512
|
|
49,728,557
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(6,757,911)
|
|
(34,955,849)
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
Net gains (losses)
from commodity derivatives
|
2,554,934
|
|
(3,775,254)
|
Interest
expense
|
(1,734,807)
|
|
(659,572)
|
Gain (loss) on other
property and equipment
|
484,768
|
|
(838,473)
|
Other, net
|
60,248
|
|
55,779
|
Total
other income (expense)
|
1,365,143
|
|
(5,217,520)
|
|
|
|
|
LOSS BEFORE INCOME
TAXES
|
(5,392,768)
|
|
(40,173,369)
|
|
|
|
|
Income tax expense -
deferred
|
-
|
|
1,425,964
|
|
|
|
|
NET LOSS
|
(5,392,768)
|
|
(41,599,333)
|
|
|
|
|
PREFERRED
STOCK:
|
|
|
|
Dividends paid in
kind
|
1,413,865
|
|
1,323,641
|
Loss on retirement of
DPAC Series "A" Preferred Stock
|
-
|
|
(271,914)
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO
|
|
|
|
COMMON
STOCKHOLDERS
|
$
(6,806,633)
|
|
$
(42,651,060)
|
|
|
|
|
LOSS PER COMMON
SHARE:
|
|
|
|
Basic
|
($0.46)
|
|
($5.13)
|
Diluted
|
($0.46)
|
|
($5.13)
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF
|
|
|
|
COMMON
SHARES OUTSTANDING:
|
|
|
|
Basic
|
14,815,991
|
|
8,317,777
|
Diluted
|
14,815,991
|
|
8,317,777
|
|
|
|
|
Yuma Energy,
Inc.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Year Ended
December 31,
|
|
2017
|
|
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Reconciliation of net
income (loss) to net cash provided by (used in)
|
|
|
|
operating activities:
|
|
|
|
Net income (loss)
|
$
(5,392,768)
|
|
$
(41,599,333)
|
Depreciation, depletion and
amortization of property and equipment
|
10,955,203
|
|
8,239,802
|
Impairment of oil and gas
properties
|
-
|
|
20,654,848
|
Amortization of debt
issuance costs
|
363,485
|
|
148,970
|
Net deferred income tax
expense
|
-
|
|
1,425,964
|
Deferred rent liability,
net
|
279,795
|
|
-
|
Stock-based compensation
expense
|
2,381,365
|
|
1,731,969
|
Settlement of asset
retirement obligations
|
(1,045,257)
|
|
(287,902)
|
Asset retirement obligation
accretion expense
|
557,683
|
|
254,573
|
Bad debt expense
|
335,567
|
|
556,406
|
Net (gains) losses from
commodity derivatives
|
(2,554,934)
|
|
3,775,254
|
(Gain) loss on sales of
fixed assets
|
(556,141)
|
|
5,316
|
Loss on write-off of
abandoned facilities
|
71,373
|
|
829,039
|
(Gain) loss on write-off of
liabilities net of assets
|
(58,994)
|
|
4,118
|
Changes in assets and
liabilities:
|
|
|
|
Decrease in accounts
receivable
|
285,051
|
|
3,698,004
|
Decrease in prepaids,
deposits and other assets
|
86,670
|
|
353,889
|
Decrease in accounts payable
and other current and
|
|
|
|
non-current liabilities
|
(2,462,040)
|
|
(4,090,155)
|
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES
|
3,246,058
|
|
(4,299,238)
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Capital expenditures
for oil and gas properties
|
(10,704,535)
|
|
(10,066,999)
|
Proceeds from sale of
oil and gas properties
|
5,400,563
|
|
1,152,958
|
Merger with Yuma
California
|
-
|
|
1,887,426
|
Proceeds from sale of
other fixed assets
|
645,791
|
|
-
|
Derivative
settlements
|
1,238,341
|
|
1,607,365
|
NET CASH PROVIDED BY
(USED IN) INVESTING ACTIVITIES
|
(3,419,840)
|
|
(5,419,250)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from
borrowings on senior credit facility
|
13,275,000
|
|
18,700,000
|
Repayment of
borrowings on senior credit facility
|
(25,075,000)
|
|
(9,000,000)
|
Proceeds from
borrowings - insurance financing
|
763,244
|
|
247,013
|
Repayments of
borrowings - insurance financing
|
(711,461)
|
|
(49,625)
|
Debt issuance
costs
|
(353,593)
|
|
(208,985)
|
Proceeds net of costs
from common stock offering
|
8,812,547
|
|
-
|
Treasury stock
repurchases
|
(25,278)
|
|
(408,323)
|
NET CASH PROVIDED BY
(USED IN) FINANCING ACTIVITIES
|
(3,314,541)
|
|
9,280,080
|
|
|
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(3,488,323)
|
|
(438,408)
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF YEAR
|
3,625,686
|
|
4,064,094
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT END OF YEAR
|
$
137,363
|
|
$
3,625,686
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Interest payments (net of
interest capitalized)
|
$
1,369,353
|
|
$
590,160
|
Interest
capitalized
|
$
317,691
|
|
$
26,121
|
Income tax refund
|
$
20,699
|
|
$
-
|
Supplemental
disclosure of significant non-cash activity:
|
|
|
|
(Increase) decrease in capital expenditures financed by accounts
payable
|
$
(2,608,232)
|
|
$
323,910
|
Yuma Energy, Inc.
Reconciliation of GAAP to Non-GAAP Financial
Measures
Unaudited
Non-GAAP Financial Measures
The non-GAAP financial measure of PV10, 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. The table below provides a
reconciliation of the Company's PV10 to the standardized measure of
discounted future net cash flows ($ in thousands).
Present value of
estimated future net revenues (PV10)
|
$
72,903
|
Future income taxes
discounted at 10%
|
-
|
Standardized measure
of discounted future net cash flows
|
$
72,903
|
View original
content:http://www.prnewswire.com/news-releases/yuma-energy-inc-announces-2017-financial-results-300622843.html
SOURCE Yuma Energy, Inc.