TransAtlantic Petroleum Ltd. (TSX: TNP) (NYSE
American: TAT) (the “Company” or “TransAtlantic”) today announced
its financial results for the quarter and year ended December 31,
2019 and provided an operations update. Additional information can
be found on the Company’s website at
http://www.transatlanticpetroleum.com.
Summary
- Estimated proved reserves as of
December 31, 2019 were 10,670 thousand barrels of oil equivalent
(“MBOE”), up 3% from 10,383 MBOE as of December 31, 2018. Estimated
proved developed reserves as of December 31, 2019 were 6,004 MBOE,
up 11% from 5,423 MBOE as of December 31, 2018. Estimated proved
undeveloped reserves as of December 31, 2018 were 4,666 MBOE, down
6% from 4,960 MBOE as of December 31, 2018.
- Net loss in the fourth quarter of
2019 was $2.5 million, down 253% from a loss of $0.7 million in the
fourth quarter of 2018 and down 336% from net income of $1.1
million in the third quarter of 2019. Net loss in 2019 was $5.4
million, down 3% from a loss of $5.2 million in 2018.
- Adjusted EBITDAX in the fourth
quarter of 2019 was $8.5 million, up 36% from $6.2 million in the
fourth quarter of 2018 and up 8% from $7.8 million in the third
quarter of 2019.¹ Adjusted EBITDAX in 2019 was $39.2 million,
up 6% from $37.1 million in 2018.
- Total debt as of December 31, 2019
was $20.0 million, down 23.4% from $26.1 million as of September
30, 2019. Net debt as of December 31, 2019 was $10.3 million, down
11% from $11.6 million as of September 30, 2019.²
- Revenues in the fourth quarter of
2019 were $16.5 million, up 6% from $15.5 million in the fourth
quarter of 2018 and up 12% from $14.7 million in the third quarter
of 2019. Revenues in 2019 were $67.4 million, down 5% from $70.8
million in 2018.
- Average daily net sales volumes in
the fourth quarter of 2019 were 2,763 barrels of oil equivalent per
day (“BOEPD”), up 4% from 2,662 BOEPD in the third quarter of 2019
and down 8% from 3,016 BOEPD in the fourth quarter of 2018. Average
daily net sales volumes for 2019 were 2,844 BOEPD, down 2% from
2,892 BOEPD in 2018.
- Operating income in the fourth
quarter of 2019 was $5.1 million, up 82% from $2.8 million in the
fourth quarter of 2018 and up 24% from $4.1 million in the third
quarter of 2019. Operating income for 2019 was $18.9 million, down
26% from $25.5 million in 2018.
__________________________________¹ Adjusted EBITDAX is a
non-GAAP financial measure. See the reconciliation at the end of
the press release.² Net debt is a non-GAAP financial measure
consisting of total debt as reflected on the Company’s balance
sheet minus cash and cash equivalents as reflected on the Company’s
balance sheet. For December 31, 2019, total debt was $20.0 million,
and cash and cash equivalents was $9.7 million. For September 30,
2019, total debt was $26.1 million, and cash and cash equivalents
was $14.5 million.
Fourth Quarter 2019 Results of
Operations
|
For the Three Months Ended |
|
|
December 31, 2019 |
|
|
September 30, 2019 |
|
|
December 31, 2018 |
|
Net Sales: |
|
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
245 |
|
|
|
237 |
|
|
|
271 |
|
Natural gas (MMCF) |
|
53 |
|
|
|
47 |
|
|
|
44 |
|
Total net sales (MBOE) |
|
254 |
|
|
|
245 |
|
|
|
278 |
|
Average net sales (BOEPD) |
|
2,763 |
|
|
|
2,662 |
|
|
|
3,016 |
|
Realized Commodity
Prices: |
|
|
|
|
|
|
|
|
|
|
|
Oil ($/BBL unhedged) |
$ |
65.10 |
|
|
$ |
60.12 |
|
|
$ |
56.04 |
|
Oil ($/BBL hedged) |
$ |
65.10 |
|
|
$ |
60.12 |
|
|
$ |
54.92 |
|
Natural gas ($/MCF) |
$ |
5.98 |
|
|
$ |
6.18 |
|
|
$ |
6.06 |
|
Total revenues were $16.5 million for the three
months ended December 31, 2019, as compared to $14.7 million for
the three months ended September 30, 2019 and $15.5 million for the
three months ended December 31, 2018. The Company had a net loss of
$2.5 million, or $0.04 per share (basic and diluted), for the three
months ended December 31, 2019, as compared to net income of $1.1
million, or $0.02 per share (basic and diluted), for the three
months ended September 30, 2019, and a net loss of $0.7 million, or
$0.01 per share (basic and diluted), for the three months ended
December 31, 2018. Capital expenditures and seismic and corporate
expenditures totaled $4.7 million for the three months ended
December 31, 2019, as compared to $10.2 million for the three
months ended September 30, 2019 and $6.6 million for the three
months ended December 31, 2018.
Adjusted EBITDAX for the three months ended
December 31, 2019 was $8.5 million, as compared to $7.8 million for
the three months ended September 30, 2019 and $6.2 million for the
three months ended December 31, 2018.
2019 Annual Results of
Operations
Total revenues were $67.4 million for the year
ended December 31, 2019, as compared to $70.8 million for the year
December 31, 2018. The Company had a net loss of $5.4 million, or
$0.10 per share (basic and diluted), for the year ended December
31, 2019, as compared to a net loss of $5.2 million, or $0.10 per
share (basic and diluted), for the year ended December 31, 2018.
Capital expenditures and seismic and corporate expenditures totaled
$31.0 million for the year ended December 31, 2019, as compared to
$23.7 million for the year ended December 31, 2018.
Adjusted EBITDAX for the year ended December 31,
2019 was $39.2 million, as compared to $37.1 million for the year
ended December 31, 2018.
Decline in Oil Prices, Effect on
Liquidity and Going Concern
During 2019, the Company repaid its $20.4
million term loan (the “2017 Term Loan”) under the Company’s
general credit agreement (the “Credit Agreement”) with DenizBank,
A.S. (“DenizBank”) in full in accordance with its terms.
Additionally, the Company repaid its $10.0 million term loan (the
“2018 Term Loan”) with DenizBank in full accordance with its terms.
The Company also entered into a $20.0 million term loan (the “2019
Term Loan”) with DenizBank under the Credit Agreement. Each term
loan is described in the Company’s periodic reports filed from time
to time with the Securities and Exchange Commission (the
“SEC”).
The Company’s primary sources of liquidity for
2019 were its cash and cash equivalents, cash flow from operations,
and borrowings under the 2019 Term Loan. At December 31, 2019, the
Company had cash and cash equivalents of $9.7 million, $2.9 million
in long-term debt, $17.1 million in short-term debt and a working
capital surplus of $2.0 million, compared to cash and cash
equivalents of $9.9 million, no long-term debt, $22.0 million in
short-term debt and a working capital surplus of $2.5 million at
December 31, 2018.
As of December 31, 2019, the Company had $20.0
million of debt and $46.1 million of 12% Series A Convertible
Redeemable Preferred Shares (the “Series A Preferred Shares”)
outstanding.
On March 9, 2020, the Company unwound its
commodity derivative contracts with respect to its future crude oil
production. In connection therewith, the Company received
approximately $6.5 million of proceeds, which the Company used to
pay down the 2019 Term Loan. After the pay down, the Company had
approximately $10.6 million outstanding under the 2019 Term
Loan.
In March 2020, crude oil prices declined to
approximately $25 per barrel for Brent crude as a result of market
concerns about the economic impact from the coronavirus (COVID-19)
as well as the ability of OPEC and Russia to agree on a perceived
need to implement further production cuts in response to weaker
worldwide demand. The current futures forward curve for Brent crude
indicates that prices may continue at or near current prices for an
extended time. As a result, the Company has reduced its planned
capital expenditures to those necessary for production lease
maintenance and those projecting a return on invested capital at
current prices. In order to mitigate the impact of reduced prices
on its 2020 cash flows and liquidity, the Company plans to
implement cost reduction measures to reduce its operating costs and
general and administrative expenses. In connection therewith, the
Company intends to prioritize funding operating expenditures over
general and administrative expenditures, whenever possible.
Notwithstanding these measures, there remain
risks and uncertainties regarding the Company’s ability to generate
sufficient revenues at current oil prices to pay its debt
obligations and accounts payable when due. As a result, there is
substantial doubt about the Company’s ability to continue as a
going concern.
Reserves Update and
Comparison
The following table summarizes net proved,
probable, and possible reserves at December 31, 2019 and 2018:
|
2019 Reserves |
|
2018 Reserves |
|
Oil andCondensate(Mbbl) |
NaturalGas(Mmcf) |
Total(Mboe) |
|
Oil andCondensate(Mbbl) |
NaturalGas(Mmcf) |
Total(Mboe) |
Reserves Category |
|
|
|
|
|
|
|
Proved reserves |
|
|
|
|
|
|
|
Proved developed |
5,624 |
2,281 |
6,004 |
|
5,047 |
2,256 |
5,423 |
Proved undeveloped |
4,635 |
185 |
4,666 |
|
4,929 |
184 |
4,960 |
Total proved |
10,259 |
2,466 |
10,670 |
|
9,976 |
2,440 |
10,383 |
Probable reserves |
|
|
|
|
|
|
|
Probable developed |
920 |
815 |
1,056 |
|
901 |
787 |
1,032 |
Probable undeveloped |
6,292 |
30 |
6,297 |
|
4,847 |
30 |
4,852 |
Total probable |
7,212 |
845 |
7,353 |
|
5,748 |
817 |
5,884 |
Possible reserves |
|
|
|
|
|
|
|
Possible developed |
1,062 |
951 |
1,221 |
|
1,132 |
906 |
1,283 |
Possible undeveloped |
5,680 |
33 |
5,686 |
|
5,072 |
32 |
5,077 |
Total possible |
6,742 |
984 |
6,907 |
|
6,204 |
938 |
6,360 |
Estimates of reserves are inherently imprecise
and are continually subject to revision based on production
history, results of additional exploration and development, price
changes, and other factors. For more information regarding
estimates of reserves, please refer to the Company’s Annual Report
on Form 10-K for the year ended December 31, 2019 filed with the
SEC.
Proved Reserves
At December 31, 2019, estimated proved reserves
were 10,670 MBOE, an increase of 287 MBOE, or 3%, compared to
10,383 MBOE at December 31, 2018. This increase was primarily
attributable to the discovery of 1,059 MBOE of productive pay in
the Beloka formation in the Yeniev Field. This increase was
partially offset by 1,038 MBOE for volumes sold during 2019.
Operational Update
Southeastern Turkey
Molla
During 2020, the Company plans to continue its
recompletion, workover, and production optimization plans in its
producing fields, including Bahar, Yeniev, Goksu, Pinar, Southeast
Bahar, Catak, and Karagoz. Drilling additional wells will be
dependent on oil prices.
Bahar Field
In the first quarter of 2020, the Company
started construction of phase II electrification of the Bahar field
to replace diesel generated power with gas generated power, which
will be distributed to each well in the field. The phase II
electrification is expected to be completed and operational in the
second quarter of 2020.
Goksu Field
The Company whipstocked the Goksu-4H well in
January 2020. The well was re-drilled to a total depth of 5,720
feet. Although the Company encountered high permeability in the
Mardin formation, tests did not indicate commercial quantities of
oil.
Arpatepe Field
In the first quarter of 2020, the Company
started implementation of a full field waterflood of the Arpatepe
field. The Company plans to recomplete four wells in the field as
water injection wells and one well as a water source well.
Additionally, the Company plans to build a central facility and
gathering system to handle increased volumes.
Selmo
During 2020, the Company plans to continue its
recompletion, workover, and production optimization operations in
the Selmo field.
Bulgaria
The Company is currently evaluating future
activity in Bulgaria.
Sale of Petrogas
On February 24, 2020, the Company sold the
shares in its wholly-owned subsidiary Petrogas Petrol Gaz ve
Petrokemya Urunleri Insaat Sanayive Ticaret A.S. (“Petrogas”),
which held the Edirne, Dogu Adatepe, Adatepe, and Gocerler
production leases (the “Petrogas Leases”) and 14 employees, to
Reform Ham Petrol Dogal Gaz Arama Uretim Sanayi ve Ticaret A.S. in
exchange for $1.5 million and a release of all plugging and
abandonment obligations for 65 wells on the Petrogas Leases and
certain former leases. During 2019, average production for the
Petrogas Leases was approximately 500 MCF per day or 83 BOEPD.
Conference Call
The Company will host a live webcast and
conference call on Thursday, March 26, 2020 at 7:30 a.m. Central
time (8:30 a.m. Eastern time) to discuss the Company’s 2019 annual
and fourth quarter financial results and provide an operations
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 1354568.
A live webcast of the conference call and replay
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 list. The webcast requires
IOS, Microsoft Windows Media Player, or RealOne Player.
A telephonic replay of the call will be
available through March 28, 2020 and may be accessed by dialing
(855) 859 -2056 or (404) 537-3406. The conference ID is
1354568.
TransAtlantic Petroleum
Ltd.Consolidated Statements of Comprehensive
Income (Loss) (U.S. Dollars and shares in
thousands, except per share amounts)
|
|
For the Three Months Ended |
|
|
For the Twelve Months Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas sales |
|
$ |
16,292 |
|
|
$ |
15,409 |
|
|
$ |
66,829 |
|
|
$ |
70,268 |
|
Other |
|
|
179 |
|
|
|
116 |
|
|
|
551 |
|
|
|
521 |
|
Total revenues |
|
|
16,471 |
|
|
|
15,525 |
|
|
|
67,380 |
|
|
|
70,789 |
|
Costs and
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production |
|
|
3,298 |
|
|
|
2,789 |
|
|
|
11,674 |
|
|
|
10,769 |
|
Transportation costs |
|
|
1,299 |
|
|
|
1,280 |
|
|
|
5,101 |
|
|
|
4,665 |
|
Exploration, abandonment and impairment |
|
|
– |
|
|
|
8 |
|
|
|
6,267 |
|
|
|
401 |
|
Seismic and other exploration |
|
|
97 |
|
|
|
149 |
|
|
|
330 |
|
|
|
489 |
|
General and administrative |
|
|
3,538 |
|
|
|
5,057 |
|
|
|
11,785 |
|
|
|
14,719 |
|
Depreciation, depletion and amortization |
|
|
3,048 |
|
|
|
3,386 |
|
|
|
13,227 |
|
|
|
14,059 |
|
Accretion of asset retirement obligations |
|
|
56 |
|
|
|
50 |
|
|
|
213 |
|
|
|
174 |
|
Total costs and expenses |
|
|
11,336 |
|
|
|
12,719 |
|
|
|
48,597 |
|
|
|
45,276 |
|
Operating income |
|
|
5,135 |
|
|
|
2,806 |
|
|
|
18,783 |
|
|
|
25,513 |
|
Other (expense)
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other expense |
|
|
(2,656 |
) |
|
|
(2,399 |
) |
|
|
(10,667 |
) |
|
|
(10,048 |
) |
Interest and other income |
|
|
171 |
|
|
|
240 |
|
|
|
947 |
|
|
|
1,082 |
|
(Loss) gain on commodity derivative contracts |
|
|
(936 |
) |
|
|
3,359 |
|
|
|
(966 |
) |
|
|
(1,797 |
) |
Foreign exchange loss |
|
|
(2,384 |
) |
|
|
(3,305 |
) |
|
|
(4,569 |
) |
|
|
(10,292 |
) |
Total other expense |
|
|
(5,805 |
) |
|
|
(2,105 |
) |
|
|
(15,255 |
) |
|
|
(21,055 |
) |
Income (loss) before
income taxes |
|
|
(670 |
) |
|
|
701 |
|
|
|
3,528 |
|
|
|
4,458 |
|
Current income tax expense |
|
|
(476 |
) |
|
|
(139 |
) |
|
|
(3,119 |
) |
|
|
(2,820 |
) |
Deferred income tax expense |
|
|
(1,379 |
) |
|
|
(1,277 |
) |
|
|
(5,775 |
) |
|
|
(6,854 |
) |
Net loss |
|
|
(2,525 |
) |
|
|
(715 |
) |
|
|
(5,366 |
) |
|
|
(5,216 |
) |
Other comprehensive
income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
(1,492 |
) |
|
|
5,962 |
|
|
|
(5,326 |
) |
|
|
(17,255 |
) |
Comprehensive (loss)
income |
|
$ |
(4,017 |
) |
|
$ |
5,247 |
|
|
$ |
(10,692 |
) |
|
$ |
(22,471 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per common share |
|
$ |
(0.04 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.10 |
) |
Weighted average common shares outstanding |
|
|
57,758 |
|
|
|
50,625 |
|
|
|
55,134 |
|
|
|
50,505 |
|
Diluted net loss per common share |
|
$ |
(0.04 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.10 |
) |
Weighted average common and common equivalent shares
outstanding |
|
|
57,758 |
|
|
|
50,625 |
|
|
|
55,134 |
|
|
|
50,505 |
|
TransAtlantic Petroleum
Ltd.Summary of Consolidated Statements of Cash
Flows(in thousands of U.S. Dollars)
|
|
For the Twelve Months Ended December 31, |
|
|
|
2019 |
|
|
2018 |
|
Net cash provided by operating activities |
|
$ |
33,203 |
|
|
$ |
28,695 |
|
Net cash used in investing
activities |
|
|
(30,830 |
) |
|
|
(26,532 |
) |
Net cash used in financing
activities |
|
|
(1,092 |
) |
|
|
(6,636 |
) |
Effect of exchange rate
changes on cash |
|
|
(1,504 |
) |
|
|
(5,931 |
) |
Net decrease in cash, cash
equivalents, and restricted cash |
|
$ |
(223 |
) |
|
$ |
(10,404 |
) |
TransAtlantic Petroleum
Ltd.Summary Consolidated Balance
Sheets(in thousands of U.S. Dollars, except share
data)
|
|
December 31, 2019 |
|
|
December 31, 2018 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
9,664 |
|
|
$ |
9,892 |
|
Accounts receivable, net |
|
|
|
|
|
|
|
|
Oil and natural gas sales |
|
|
13,299 |
|
|
|
12,912 |
|
Joint interest and other |
|
|
1,218 |
|
|
|
982 |
|
Related party |
|
|
561 |
|
|
|
878 |
|
Prepaid and other current assets |
|
|
12,375 |
|
|
|
8,696 |
|
Note receivable - related party |
|
|
– |
|
|
|
5,828 |
|
Inventory |
|
|
7,091 |
|
|
|
5,167 |
|
Total current assets |
|
|
44,208 |
|
|
|
44,355 |
|
Property and
equipment: |
|
|
|
|
|
|
|
|
Oil and natural gas properties (successful efforts method) |
|
|
|
|
|
|
|
|
Proved |
|
|
167,948 |
|
|
|
163,006 |
|
Unproved |
|
|
12,978 |
|
|
|
15,695 |
|
Equipment and other property |
|
|
10,202 |
|
|
|
14,408 |
|
|
|
|
191,128 |
|
|
|
193,109 |
|
Less accumulated depreciation, depletion and amortization |
|
|
(106,610 |
) |
|
|
(105,850 |
) |
Property and equipment, net |
|
|
84,518 |
|
|
|
87,259 |
|
Other long-term
assets: |
|
|
|
|
|
|
|
|
Other assets |
|
|
3,827 |
|
|
|
986 |
|
Note receivable - related party |
|
|
3,951 |
|
|
|
– |
|
Total other assets |
|
|
7,778 |
|
|
|
986 |
|
Total
assets |
|
$ |
136,504 |
|
|
$ |
132,600 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES, SERIES A
PREFERRED SHARES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
4,555 |
|
|
$ |
3,896 |
|
Accounts payable - related party |
|
|
4,262 |
|
|
|
2,922 |
|
Accrued liabilities |
|
|
15,244 |
|
|
|
13,073 |
|
Derivative liability |
|
|
966 |
|
|
|
– |
|
Loans payable |
|
|
17,143 |
|
|
|
22,000 |
|
Total current liabilities |
|
|
42,170 |
|
|
|
41,891 |
|
Long-term
liabilities: |
|
|
|
|
|
|
|
|
Asset retirement obligations |
|
|
4,749 |
|
|
|
4,667 |
|
Accrued liabilities |
|
|
10,370 |
|
|
|
7,259 |
|
Deferred income taxes |
|
|
22,728 |
|
|
|
20,314 |
|
Loans payable |
|
|
2,857 |
|
|
|
– |
|
Total long-term liabilities |
|
|
40,704 |
|
|
|
32,240 |
|
Total
liabilities |
|
|
82,874 |
|
|
|
74,131 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Series A preferred shares, $0.01 par value, 100,000 shares
authorized; 100,000 shares issued and outstanding with a
liquidation preference of $50 per share as of December 31, 2019 and
426,000 shares authorized; 426,000 shares issued and outstanding
with a liquidation preference of $50 per share as of December 31,
2018 |
|
|
5,000 |
|
|
|
21,300 |
|
Series A preferred shares-related party, $0.01 par value, 821,000
shares authorized; 821,000 shares issued and outstanding with a
liquidation preference of $50 per share as of December 31, 2019 and
495,000 shares authorized; 495,000 shares issued and outstanding
with a liquidation preference of $50 per share as of December 31,
2018 |
|
|
41,050 |
|
|
|
24,750 |
|
Shareholders'
equity: |
|
|
|
|
|
|
|
|
Common shares, $0.10 par value, 200,000,000 shares authorized;
52,413,588 shares and 50,319,156 shares issued and outstanding as
of December 31, 2018 and 2017, respectively |
|
|
6,223 |
|
|
|
5,241 |
|
Treasury shares |
|
|
(970 |
) |
|
|
(970 |
) |
Additional paid-in-capital |
|
|
582,359 |
|
|
|
577,488 |
|
Accumulated other comprehensive loss |
|
|
(147,347 |
) |
|
|
(142,021 |
) |
Accumulated deficit |
|
|
(432,685 |
) |
|
|
(427,319 |
) |
Total shareholders' equity |
|
|
7,580 |
|
|
|
12,419 |
|
Total liabilities,
Series A preferred shares and shareholders' equity |
|
$ |
136,504 |
|
|
$ |
132,600 |
|
Reconciliation of Net Loss to Adjusted
EBITDAX (Unaudited)(in thousands of U.S.
Dollars)
|
|
For the Three Months Ended |
|
|
For the Twelve Months Ended |
|
|
|
December 31,2019 |
|
|
September 30,2019 |
|
|
December 31,2018 |
|
|
December 31,2019 |
|
|
December 31,2018 |
|
Net (loss) income |
|
$ |
(2,525 |
) |
|
$ |
1,070 |
|
|
$ |
(715 |
) |
|
$ |
(5,366 |
) |
|
$ |
(5,216 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income, net |
|
|
2,485 |
|
|
|
2,399 |
|
|
|
2,159 |
|
|
|
9,720 |
|
|
|
8,966 |
|
Income tax expense |
|
|
1,855 |
|
|
|
250 |
|
|
|
1,416 |
|
|
|
8,894 |
|
|
|
9,674 |
|
Exploration, abandonment, and impairment |
|
|
- |
|
|
|
488 |
|
|
|
8 |
|
|
|
6,267 |
|
|
|
401 |
|
Seismic and other exploration expense |
|
|
97 |
|
|
|
48 |
|
|
|
149 |
|
|
|
330 |
|
|
|
489 |
|
Foreign exchange loss |
|
|
2,384 |
|
|
|
797 |
|
|
|
3,305 |
|
|
|
4,569 |
|
|
|
10,292 |
|
Share-based compensation expense |
|
|
121 |
|
|
|
119 |
|
|
|
115 |
|
|
|
419 |
|
|
|
455 |
|
Loss (gain) on derivative contracts |
|
|
936 |
|
|
|
(403 |
) |
|
|
(3,359 |
) |
|
|
966 |
|
|
|
1,797 |
|
Cash settlements on commodity derivative contracts |
|
|
- |
|
|
|
- |
|
|
|
(302 |
) |
|
|
- |
|
|
|
(4,012 |
) |
Accretion of asset retirement obligation |
|
|
56 |
|
|
|
56 |
|
|
|
50 |
|
|
|
213 |
|
|
|
174 |
|
Depreciation, depletion, and amortization |
|
|
3,048 |
|
|
|
3,021 |
|
|
|
3,386 |
|
|
|
13,227 |
|
|
|
14,059 |
|
Adjusted EBITDAX |
|
$ |
8,457 |
|
|
$ |
7,845 |
|
|
$ |
6,212 |
|
|
$ |
39,239 |
|
|
$ |
37,079 |
|
Adjusted EBITDAX (“Adjusted EBITDAX”) is a
non-GAAP financial measure that represents net (loss) income plus
interest and other income, net, income tax expense, exploration,
abandonment, and impairment, seismic and other exploration expense,
foreign exchange loss, share-based compensation expense, loss
(gain) on 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, impairment of oil and natural gas properties,
exploration expenses, and foreign exchange gains and losses 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 prepared in accordance with
GAAP. Net income or income 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 Company’s ability to continue as a going concern, its drilling
program, the evaluation of its prospects in Turkey and Bulgaria,
the drilling, completion, and cost of wells, the production and
sale of oil and natural gas, and the holding of an earnings
conference call, as well as other expectations, plans, goals,
objectives, assumptions, and information about future events,
conditions, exploration, production, 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, the Company’s
ability to continue as a going concern; well development results;
access to sufficient capital; market prices for natural gas,
natural gas liquids, and oil products, including price changes
resulting from coronavirus fears as well as oil oversupply
concerns; estimates of reserves and economic assumptions; the
ability to produce and transport natural gas, natural gas liquids,
and oil products, including price changes resulting from
coronavirus fears as well as oil oversupply concerns; the results
of exploration and development drilling and related activities; the
effects of the coronavirus on our operations, demand for oil and
natural gas as well as governmental actions in response to the
coronavirus; economic conditions in the countries and provinces in
which the Company carries on business, especially economic
slowdowns; actions by governmental authorities; the unwinding of
the Company’s hedges against a decline in the price of oil; 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 sanctions, armed
conflicts, and actions by insurgent groups; 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:
Tabitha T. BaileyVice President, General Counsel
and Corporate Secretary(214) 265-4708
TransAtlantic Petroleum Ltd.16803 Dallas
ParkwayAddison, Texas
75001http://www.transatlanticpetroleum.com
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