4Q17 Production Increases 13.6% Compared to
3Q17
Reports 2017 Year-End Reserves growth of 38%
to 1.0 Tcfe
Increasing Development Through Adding Second
Drilling Rig
SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or the
“Company”) today announced operating and financial results for the
fourth quarter 2017. Highlights include:
- Net production averaged 177 million
cubic feet of natural gas equivalent per day (“Mmcfe/d”), exceeding
the high end of guidance
- Oil and gas revenues of $58.7 million,
a 20% increase from third quarter 2017
- Lease operating expenses of $0.34/Mcfe
compared to $0.41/Mcfe in the third quarter 2017
- Net Income of $25.1 million, or $2.17
per diluted share compared to $1.12 in the third quarter 2017
- Adjusted EBITDA (a non-GAAP measure) of
$42.0 million, a 35% increase from third quarter 2017
- Year-end 2017 reserves of 1.0 Tcfe, up
38% from prior year with PV-10 growth of 82% to $805 million with a
Standardized Measure of $732 million. For a reconciliation of PV-10
(non-GAAP) to Standardized Measure (GAAP), please see table in the
back.
- Greater than 600% reserve replacement
at a finding, development, and acquisition (FD&A) cost of
$0.59/Mcfe
- Acquisition of an additional ~10,000
net acres during 4Q17 and ~36,500 net acres for the full year
bringing total net acreage to over 100,000 in the Eagle Ford
- Sale of AWP Olmos non-core assets for
$28.8 million in the first quarter of 2018
- Full year 2018 capital expenditure
guidance of $245 to $265 million with plan to have two drilling
rigs active by end of first quarter 2018
- Reaffirmed full year 2018 production
guidance of 175 to 195 Mmcfe/d, an increase of 22% to 37% pro forma
for divestitures
Management Comments
Sean Woolverton, SilverBow’s Chief Executive Officer, commented,
“We finished 2017 with another strong quarter operationally, with
both production and operating costs comparing favorably to our
guidance. Fourth quarter production levels were driven by strong
base production performance combined with bringing two additional
net wells online in our southern Eagle Ford gas position as well as
two net wells in Fasken. We continue to focus on driving
efficiencies with a best-in-class cost structure in the basin as
evidenced by lease operating expenses declining 17% on a per unit
basis compared to third quarter levels. This strong operational
performance generated adjusted EBITDA of $42.0 million, an increase
of 35% compared to the third quarter.”
Woolverton commented further, “I’m also pleased to announce we
reported reserve growth of 38% to just over 1.0 trillion cubic feet
of natural gas equivalent compared to year-end 2016 levels. We
believe we have significant potential to grow proved reserves
within our existing asset base as we strategically develop our
Eagle Ford acreage. Additionally, after adding over approximately
36,000 acres to our Eagle Ford position in 2017, our focus now
shifts to execution and demonstrating the consistency of our
results and our full resource potential. We have taken steps to
strengthen our operating team and now have a position of scale that
provides us with substantial drilling inventory. We enter 2018 in a
strong position to continue generating production and EBITDA
growth.”
OPERATIONS HIGHLIGHTS
During the fourth quarter 2017, the Company drilled five net
wells while completing four net wells. For the full year, the
Company drilled 18 net wells and completed 22 net wells. The
Company drilled in all areas of its portfolio in 2017 with a focus
on demonstrating the commercial viability of the Company’s
extensive drilling inventory. With solid results across all areas,
SilverBow has successfully transferred its learnings from Fasken to
other assets of the Eagle Ford, including a successful seven well
program in the condensate window in Artesia as well as experiencing
encouraging initial results in Oro Grande and Uno Mas.
SilverBow completed its first well in Uno Mas in the fourth
quarter. The well was drilled with a 7,500-foot lateral and
completed with approximately 2,500 pounds of proppant per foot of
lateral. Results to date are encouraging and the Company will have
more to report on this well on their first quarter 2018 earnings
conference call. The Company plans on drilling three net wells in
Uno Mas in 2018. Also during the quarter, SilverBow completed its
second well in Oro Grande, the NMC 2H. The Company drilled the NMC
2H with a 7,500-foot lateral and completed with 2,500 pounds of
proppant per foot of lateral, compared to 3,500 pounds of proppant
per foot of lateral for the NMC 1H. The Company moved a drilling
rig back to Oro Grande in the first quarter of 2018 to drill a two
well pad. The Company plans on drilling five net wells in Oro
Grande during 2018.
SilverBow’s most recent six well pad drilled in Fasken during
the fourth quarter included three wells targeting the Lower Eagle
Ford and three wells targeting the Upper Eagle Ford. This pad was
recently completed and utilized 300 foot frac stage spacing and
1,500 pounds of proppant per foot of lateral. The average lateral
length for this six well pad was 7,500 feet. Early results from
this six well pad are encouraging and further support multi-zone
development and added efficiencies for our Fasken acreage and other
assets. The Company plans to drill approximately 13 net wells in
Fasken in 2018.
PRODUCTION VOLUMES, OPERATING COSTS, AND REALIZED
PRICES
SilverBow’s total net production for the fourth quarter averaged
approximately 177 Mmcfe/d, which was above the high end of
guidance. Production mix during the fourth quarter consisted of
approximately 79% natural gas, 13% NGLs, and 8% oil.
Lease operating expenses during the fourth quarter of $0.34/Mcfe
came in better than the Company’s guidance range of $0.38/Mcfe to
$0.42/Mcfe primarily driven by continued cost initiatives enacted
throughout the year.
Transportation and processing expenses came in at $0.32/Mcfe
while production and ad valorem taxes were 3.1% of oil and gas
revenues for the quarter. Production and ad valorem taxes were
positively impacted by certain, non-reoccurring tax refunds in the
quarter.
General and administrative costs of $0.45/Mcfe were higher than
the $0.42/Mcfe reported in the third quarter primarily due to
one-time severance costs related to several officer departures.
The Company’s average realized natural gas price, excluding the
effect of hedging, was $2.88/Mcf compared to $3.01/Mcf in the third
quarter of 2017. The average realized crude oil selling price,
excluding the effect of hedging, was $57.64/Bbl in the fourth
quarter of 2017, up from $46.93/Bbl in the third quarter of 2017.
The average realized NGL selling price in the fourth quarter of
2017 was $24.37/Bbl versus $21.67/Bbl in the third quarter of
2017.
YEAR-END 2017 RESERVES
SilverBow reported year-end proved reserves of 1.0 trillion
cubic feet equivalent (Tcfe), an increase of 38% over year-end
2016. Specific highlights from the Company’s year-end reserve
report include:
- Finding and development costs of
$0.59/Mcfe
- All-sources reserve replacement of
609%
- Standardized Measure of $732
million
- PV-10 value (non-GAAP measure) of $805
million, an increase of 82% over prior year
The table below reconciles 2016 reserves to 2017 reserves.
Total (Mmcfe) Proved reserves as of December 31, 2016
743,741 Extensions, discoveries, and other additions 317,024
Revisions of previous estimates (8,748 ) Purchases of minerals in
place 33,405 Sales of minerals in place (4,866 ) Production (56,135
) Proved reserves as of December 31, 2017 1,024,421
As of December 31, 2017, 82% of SilverBow’s year-end proved
reserves were natural gas and 97% were located in the Eagle Ford
Shale. Approximately 45% of the year-end proved reserves were
classified as proved developed and 55% were classified as proved
undeveloped.
Total costs incurred during 2017 were $203 million, which
included approximately $149 million for development costs, $45
million for leasehold acquisition and prospect costs, and $9
million for property acquisitions.
The SEC prices used for reporting SilverBow’s year-end 2017
proved reserves, which have been adjusted for basis and quality
differentials, were $2.95/Mcf for natural gas, $20.32/Bbl for
natural gas liquids and $50.38/Bbl for crude oil compared to
$2.43/Mcf, $16.13/Bbl, and $41.07/Bbl in 2016. Assuming SEC prices,
the pre-tax present value of future net cash flows discounted at
10% (“PV-10”) of the year-end 2017 proved reserves were $805
million with a Standardized Measure of $732 million.
FINANCIAL RESULTS
The Company reported total oil and gas revenues of $58.7 million
for the fourth quarter 2017 which increased 20% compared to third
quarter 2017 levels. On a GAAP basis, the Company reported net
income of $25.1 million for the fourth quarter, which
includes a gain on the value of the Company's hedge portfolio of
$3.4 million.
The Company reported Adjusted EBITDA of $42.0 million.
Adjusted EBITDA is a non-GAAP financial measure. Please see the
tables included with today's news release for a reconciliation of
net income to Adjusted EBITDA.
Capital expenditures incurred during the fourth quarter totaled
approximately $50 million inclusive of $22 million spent on
acquisitions, leasing, and prospect development. In addition, the
Company spent $16.3 million associated with the divestiture of the
Bay De Chene field located in South Louisiana.
Effective December 22, 2017, the Company closed a Purchase and
Sale contract for the Company's wellbores and facilities in Bay De
Chene for $16.3 million, which will be paid by the Company, as
seller. The buyer assumed approximately $20.9 million of plugging
and abandonment liability. Please see the Company’s Form 10-K
filing, which the Company expects to be filed on Thursday, March 1,
2018, for more information regarding this transaction.
AWP OLMOS SALE UPDATE
On January 24th, 2018, SilverBow Resources executed a definitive
purchase and sale agreement to divest certain wells in its AWP
Olmos area for approximately $28.8 million plus the assumption of
$6.2 million of asset retirement obligations, subject to customary
purchase price adjustments. This transaction is expected to close
on or about March 1, 2018 and has an effective date of January 1,
2018. These assets are located in McMullen County, Texas and
include 491 wells with total proved reserves of 28 Bcfe at 12/31/17
(100% proved developed). Full year 2017 production from these
properties was approximately 9.5 Mmcfe/d (57% natural gas). Cash
proceeds from the sale will be used to repay outstanding borrowings
under the Company’s revolving credit facility. SilverBow
anticipates that its borrowing base will remain unchanged at $330
million after closing this transaction and will be reviewed as
normal during its regularly scheduled Spring redetermination.
2018 GUIDANCE
The Company recently announced a 2018 capital expenditure budget
of $245 to $265 million, which provides for average full year
production of 175 to 195 Mmcfe/d. For the first quarter 2018, the
Company is guiding for 156 to 162 Mmcfe/d. Additional detail
concerning the Company's first quarter 2018 and full year financial
and operational guidance can be found in the table included with
today’s news release and the Corporate Presentation uploaded to the
Investor Relations section of the Company’s website before the
conference call.
The Company recently contracted a second high-spec drilling rig.
SilverBow is currently mobilizing this rig with plans to commence
drilling later in the first quarter with completions from this rig
turning to production early in the third quarter. The Company plans
on testing multiple initiatives in 2018 aimed at further
delineating its acreage position as well as testing stimulation
designs and choke management protocols. The Company is also
assessing the viability of stacked development in certain areas of
its portfolio. These multi-zone development initiatives have the
potential to significantly increase the Company’s drilling
inventory and allow for a more robust co-development pattern across
our portfolio.
HEDGING UPDATE
Hedging continues to be an important element of SilverBow’s
strategy. The Company maintains an active hedging program to
provide predictable cash flows while still allowing for flexibility
in capturing increases in prices. SilverBow has approximately 55%
of total production volumes hedged for full year 2018 using the
mid-point of production guidance. The Company continues to layer on
additional hedges. Please see the Company’s Form 10-K filing, which
the Company expects to be filed on Thursday, March 1, 2018, for a
detailed summary of derivative contracts.
CAPITAL STRUCTURE AND LIQUIDITY
The Company had liquidity of approximately $260
million as of December 31, 2017, primarily consisting of
availability on the Company’s $330 million bank credit facility.
The Company closed on $200 million of Senior Secured Second Lien
Notes on December 15, 2017. For more information regarding the
Second Lien Notes, please see the Company’s Corporate Presentation
posted on www.sbow.com.
As of February 28, 2018, the Company had 11.6 million total
common shares outstanding.
CONFERENCE CALL & UPDATED INVESTOR PRESENTATION
SilverBow will host a conference call for investors
on Thursday, March 1, 2018, at 10:00 a.m. Central
Time (11:00 a.m. Eastern Time). Interested investors can
listen to the call by dialing 1-877-420-2751 (U.S.) or
1-442-275-1680 (International) and requesting SilverBow’s Fourth
Quarter 2017 Earnings Conference Call or by visiting our
website.
A simultaneous webcast of the call may be accessed over the
internet by visiting our website at www.sbow.com, clicking on
“Investor Relations” and “Events and Presentations” and then
clicking on the “Fourth Quarter 2017 Earnings Conference Call”
link. The webcast will be archived for replay on the SilverBow
website for 14 days. Additionally, an updated Corporate
Presentation will be uploaded to the Investor Relations section of
the Company's website before the conference call.
ABOUT SILVERBOW RESOURCES, INC.
SilverBow Resources (NYSE: SBOW) is a Houston-based energy
company actively engaged in the exploration, development, and
production of oil and gas from the Eagle Ford Shale in South Texas.
With almost 30 years of history operating in South Texas, the
Company possesses a significant understanding of regional
reservoirs which we leverage to assemble high quality drilling
inventory while continuously enhancing our operations to maximize
returns on capital invested. For more information, please visit
www.sbow.com.
Forward-Looking Statements
This release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
The opinions, forecasts, projections, or other statements other
than statements of historical fact, are forward-looking statements.
Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, no assurances can
be given that such expectations will prove to have been correct.
Certain risks and uncertainties inherent in the Company’s business
are set forth in the filings of SilverBow Resources, Inc. with the
Securities and Exchange Commission.
(Financial Highlights to Follow)
Consolidated Balance Sheets
SilverBow Resources, Inc. and Subsidiaries
(in thousands, except share amounts)
Successor December 31,
2017 December 31, 2016
ASSETS Current Assets: Cash and cash equivalents $ 7,806 $
303 Accounts receivable, net 27,263 17,490 Fair value of commodity
derivatives 5,148 458 Other current assets 2,352 3,228
Total Current Assets 42,569 21,479
Property and Equipment:
Property and Equipment, Full Cost Method,
including $50,377 and $33,354
of unproved property costs not being
amortized
712,166 517,074 Less – Accumulated depreciation, depletion,
amortization and impairment (216,769 ) (169,879 ) Property and
Equipment, Net 495,397 347,195 Other Long-Term Assets
13,304 8,625 Total Assets $ 551,270 $ 377,299
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities: Accounts payable and accrued liabilities $
44,437 $ 40,434 Fair value of commodity derivatives 5,075 15,823
Accrued capital costs 10,883 11,954 Accrued interest 2,106 1,721
Undistributed oil and gas revenues 12,996 9,192 Total
Current Liabilities 75,497 79,124 Long-term
debt 265,325 198,000 Asset retirement obligations 8,678 22,291
Other long-term liabilities 8,312 1,829 Commitments and
Contingencies — — Stockholders' Equity: Preferred stock,
$.01 par value, 10,000,000 shares authorized, none issued — —
Common stock, $.01 par value, 40,000,000
shares authorized, 11,621,385
and 10,076,059 shares issued and
11,570,621 and 10,053,574 shares
outstanding
116 101 Additional paid-in capital 279,111 232,917 Treasury stock
held, at cost, 50,764 and 22,485 shares (1,452 ) (675 ) Retained
earnings (Accumulated deficit) (84,317 ) (156,288 ) Total
Stockholders’ Equity 193,458 76,055 Total Liabilities
and Stockholders’ Equity $ 551,270 $ 377,299
Consolidated Statements of
Operations
SilverBow Resources, Inc. and Subsidiaries
(in thousands, except per-share amounts)
Successor
Predecessor
Year Ended
December 31,
2017
Period from
April 23, 2016
through
December 31,
2016
Period from
January 1,
2016 through
April 22, 2016
Year Ended
December 31,
2015
Revenues: Oil and gas sales $ 195,910 $
121,386 $ 43,027 $ 246,270 Operating Expenses: General and
administrative, net 30,000 22,538 9,245 42,611 Depreciation,
depletion, and amortization 46,933 36,436 20,439 177,512 Accretion
of asset retirement obligation 2,322 2,878 1,610 5,572 Lease
operating expense 21,908 25,777 14,933 70,188 Transportation and
gas processing 19,360 13,038 6,090 21,741 Severance and other taxes
8,205 6,713 3,917 17,090 Write-down of oil and gas properties —
133,496 77,732
1,562,086 Total Operating Expenses 128,728
240,876 133,966 1,896,800
Operating Income (Loss) 67,182 (119,490 ) (90,939 )
(1,650,530 ) Non-Operating Income (Expense) Net gain (loss)
on commodity derivatives 17,913 (19,677 ) — 186 Interest expense,
net (15,070 ) (15,310 ) (13,347 ) (75,870 ) Reorganization items —
(1,639 ) 956,142 (6,565 ) Other income (expense), net (8 )
(172 ) (245 ) (1,735 ) Income (Loss)
Before Income Taxes 70,017 (156,288 ) 851,611 (1,734,514 )
Income Taxes (1,954 ) — —
(80,543 ) Net Income (Loss) $ 71,971 $
(156,288 ) $ 851,611 $ (1,653,971 ) Per
Share Amounts- Basic: Net Income (Loss) $ 6.28 $ (15.61 ) $
19.06 $ (37.20 ) Diluted: Net Income (Loss) $ 6.25 $ (15.61
) $ 18.64 $ (37.20 ) Weighted Average Shares Outstanding -
Basic 11,453 10,013 44,692 44,463 Weighted Average Shares
Outstanding - Diluted 11,514 10,013 45,697 44,463
Consolidated Statements of
Operations
SilverBow Resources, Inc. and Subsidiaries
(in thousands, except per-share amounts)
Successor
Three Months
Ended
December 31,
2017
Three Months
Ended
December 31,
2016
Revenues: Oil and gas sales $ 58,694 $ 42,846
Operating Expenses: General and administrative, net 7,324
6,619 Depreciation, depletion, and amortization 14,558 9,815
Accretion of asset retirement obligation 600 947 Lease operating
expense 5,528 8,515 Transportation and gas processing 5,293 3,969
Severance and other taxes 1,828 2,166 Write-down of oil and gas
properties — — Total Operating
Expenses 35,131 32,031
Operating Income (Loss) 23,563 10,815 Non-Operating Income
(Expense) Net gain (loss) on commodity derivatives 3,448 (12,553 )
Interest expense, net (3,953 ) (5,173 ) Reorganization items — (170
) Other income (expense), net 125 —
Income (Loss) Before Income Taxes 23,183 (7,081 )
Income Taxes (1,954 ) —
Net Income (Loss) $ 25,137 $ (7,081 )
Per Share Amounts- Basic: Net Income (Loss) $ 2.17 $
(0.71 ) Diluted: Net Income (Loss) $ 2.17 $ (0.71 )
Weighted Average Shares Outstanding - Basic 11,561 10,013
Weighted Average Shares Outstanding - Diluted 11,602 10,013
Consolidated Statements of Cash
Flows
Successor
Predecessor
Year Ended
December 31,
2017
Period from April
23, 2016 through
December 31,
2016
Period from
January 1,
2016 through
April 22, 2016
Year Ended
December 31,
2015
Cash Flows from Operating Activities:
Net income (loss) $ 71,971 $ (156,288 ) $ 851,611 $
(1,653,971 )
Adjustments to reconcile net income (loss)
to net cash
provided by (used in) operating
activities-
Write-down of oil and gas properties — 133,496 77,732 1,562,086
Depreciation, depletion, and amortization 46,933 36,436 20,439
177,512 Accretion of asset retirement obligation 2,322 2,878 1,610
5,572 Deferred income tax benefit — — — (80,133 ) Share-based
compensation expense 6,849 3,618 886 4,435 Loss (gain) on
derivatives (17,913 ) 19,676 — (186 ) Cash settlements (paid)
received on derivatives (1,411 ) (1,928 ) — 2,544 Settlements of
asset retirement obligations (2,335 ) (2,993 ) (848 ) — Write-down
of debt issuance cost 2,676 — — — Reorganization items (non-cash) —
— (977,696 ) 6,565 Other (559 ) 1,351 229 (3,189 ) Change in
operating assets and liabilities- (Increase) decrease in accounts
receivable and other assets (7,169 ) 16,812 (5,474 ) 26,747
Increase (decrease) in accounts payable and accrued liabilities
6,089 (6,689 ) (9,647 ) (15,003 ) Increase (decrease) in income
taxes payable — — — (435 ) Increase (decrease) in accrued interest
385 1,058 (308 )
9,730 Net Cash Provided by (Used in) Operating Activities
107,838 47,427 (41,466 ) 42,274 Cash Flows from Investing
Activities: Additions to property and equipment (192,982 ) (45,671
) (24,530 ) (139,688 ) Acquisition of producing properties (9,426 )
— — — Proceeds from the sale of property and equipment 702
45,985 48,661
1,164 Net Cash Provided by (Used in) Investing
Activities (201,706 ) 314 24,131 (138,524 ) Cash Flows from
Financing Activities: Proceeds from long-term debt issuances
198,000 — — — Proceeds from bank borrowings 404,700 84,000 328,000
281,100 Payments of bank borrowings (529,700 ) (139,000 ) (324,900
) (153,500 ) Net proceeds from issuances of common stock 39,179 — —
302 Purchase of treasury shares (777 ) (675 ) (4 ) (154 ) Payments
of debt issuance costs (10,031 ) (502 )
(6,482 ) (2,444 ) Net Cash Provided by (Used in) Financing
Activities 101,371 (56,177 ) (3,386 ) 125,304 Net Increase
(Decrease) in Cash and Cash Equivalents 7,503 (8,436 ) (20,721 )
29,054 Cash and Cash Equivalents at Beginning of Period 303
8,739 29,460 406
Cash and Cash Equivalents at End of Period $ 7,806
$ 303 $ 8,739 $
29,460 Supplemental Disclosures of Cash Flows
Information: Cash paid during period for interest, net of amounts
capitalized $ 10,428 $ 12,517 $ 10,367 $ 63,132 Cash paid during
period for income taxes $ — $ — $ — $ 450 Cash paid for
reorganization items $ — $ 12,929 $ 15,643 $ — Changes in capital
accounts payable and capital accruals $ 9,894 $ (6,265 ) $ 1,843 $
(27,611 ) Changes in other long-term liabilities for capital
expenditures $ 5,000 $ — $ — $ —
SilverBow Resources, Inc.
Non-GAAP Financial Measures
Reconciliation of Net Income (GAAP) to
Adjusted EBITDA (Non-GAAP)
and Standardized Measure (GAAP) to
PV-10 (Non-GAAP)
(In thousands)
(Unaudited)
We present adjusted EBITDA attributable to common stockholders
(“Adjusted EBITDA”) in addition to our reported net income (loss)
in accordance with U.S. GAAP. Adjusted EBITDA is a non-GAAP
financial measure that is used as a supplemental financial measure
by our management and by external users of our financial
statements, such as investors, commercial banks and others, to
assess our operating performance as compared to that of other
companies in our industry, without regard to financing methods,
capital structure or historical costs basis. It is also used to
assess our ability to incur and service debt and fund capital
expenditures.
Our Adjusted EBITDA should not be considered an alternative to
net income (loss), operating income (loss), cash flows provided by
(used in) operating activities or any other measure of financial
performance or liquidity presented in accordance with U.S. GAAP.
Our Adjusted EBITDA may not be comparable to similarly titled
measures of another company because all companies may not calculate
Adjusted EBITDA in the same manner.
Successor Predecessor
Year Ended
December 31, 2017
Period from April 23,
2016 through
December 31, 2016
Period from January
1, 2016 through April
22, 2016
Net Income (Loss) $ 71,971 $ (156,288 ) $ 851,611
Plus: Depreciation, depletion and amortization 46,933 36,436 20,439
Accretion of asset retirement obligations 2,322 2,878 1,610
Interest expense 15,070 15,310 13,347 Impairment of oil and gas
properties — 133,496 77,732 Reorganization items — 1,639 (956,142 )
Derivative (gain)/loss (17,913 ) 19,677 — Derivative cash
settlements collected/(paid) (1) (1,545 ) (2,130 ) — Income tax
expense/(benefit) (1,954 ) — — Share-based compensation expense
6,849 3,618 886
Adjusted EBITDA
$ 121,733 $ 54,636 $ 9,483
(1) This includes accruals for settled
contracts covering commodity deliveries during the period where the
actual cash settlements occur outside of the period.
Successor
Three Months Ended December 31,
2017
Three Months Ended December 31,
2016
Net Income (Loss) $ 25,137 $ (7,081 ) Plus:
Depreciation, depletion and amortization 14,558 9,815 Accretion of
asset retirement obligations 600 947 Interest expense 3,953 5,173
Impairment of oil and gas properties — — Reorganization items —
(170 ) Derivative (gain)/loss (3,448 ) 12,553 Derivative cash
settlements collected/(paid) (1) 807 (1,173 ) Income tax
expense/(benefit) (1,954 ) — Share-based compensation expense 2,311
486
Adjusted EBITDA $ 41,964
$ 20,550 (1) This includes accruals for
settled contracts covering commodity deliveries during the period
where the actual cash settlements occur outside of the period.
Standardized Measure of Discounted Future Net Cash Flows.
The following table provides a reconciliation between the
Standardized Measure (the most directly comparable financial
measure calculated in accordance with U.S. GAAP) and PV-10 Value of
the Company's proved reserves.
As of December 31, (in millions)
2017 2016
2015 PV-10 Value $ 805 $
442 $ 374 Less: Future income taxes
(discounted at 10%) 73 35 —
Standardized Measure
of Discounted Future Net Cash Flows $ 732
$ 407 $ 374
Production Volumes & Pricing
(Unaudited)
SilverBow Resources and Subsidiaries
Successor Predecessor
Year Ended December 31,
2017
Period from April 23, 2016
through December 31, 2016
Period from January 1, 2016
through April 22, 2016
Year Ended December 31,
2015
All Fields Net Sales
Volume: Oil (MBbls) 685 786 522 2,406 Natural Gas Liquids (MBbls)
1,046 727 380 1,433 Natural gas (MMcf) 45,751 29,109
11,431 43,839 Total (MMcfe) 56,135 38,190 16,842 66,877
Average Sales Price: Oil (Per Bbl) $ 50.98 $ 44.79 $ 31.43 $
47.11 Natural Gas Liquids (Per Bbl) $ 21.61 $ 16.39 $ 11.04 $ 14.54
Natural gas (Per Mcf) $ 3.03 $ 2.55 $ 1.96 $ 2.56 Total (Per Mcfe)
$ 3.49 $ 3.18 $ 2.55 $ 3.68 Average Production Cost (Per
Mcfe sold) (1) $ 0.74 $ 1.00 $ 1.26 $ 1.38
(1) Average production cost includes
transportation and gas processing costs but excludes severance and
ad valorem taxes.
Successor
Three Months Ended
December 31, 2017
Three Months Ended
December 31, 2016
All Fields Net Sales Volume: Oil
(MBbls) 229 240 Natural Gas Liquids (MBbls) 347 226 Natural gas
(MMcf) 12,847 9,551 Total (MMcfe) 16,303 12,347
Average Sales Price: Oil (Per Bbl) $ 57.64 $ 47.10 Natural Gas
Liquids (Per Bbl) $ 24.37 $ 18.84 Natural gas (Per Mcf) $ 2.88 $
2.86 Total (Per Mcfe) $ 3.60 $ 3.47 Average Production Cost
(Per Mcfe sold) (1) $ 0.66 $ 1.11 (1) Average production
cost includes transportation and gas processing costs but excludes
severance and ad valorem taxes.
First Quarter 2018 & Full Year 2018
Guidance
Guidance 1Q 2018
FY 2018 Production Volumes: Oil (Bbls/d) 1,900
- 2,000 1,600 - 1,800 NGLs (Bbls/d) 3,000 - 3,100 2,575 - 2,900
Natural Gas (Mmcf/d) 127 - 131 150 -
167 Million Cubic Feet of Gas Equivalent (Mmcfe/d)
156 - 162 175 - 195 Pro Forma Production (MMcfe/d)(1)
150 - 156 175 - 195
Operating Costs & Expenses :
Lease Operating Expense ($/Mcfe) $0.35 - $0.36 $0.25 - $0.28
Transportation & Processing Expense ($/Mcfe) $0.34 - $0.35
$0.34 - $0.38 Production & Ad Val Taxes (% of O&G Revenue)
4.5% - 5.0% 4.5% - 5.0% Cash G&A, net (in millions) $4.7 - $5.1
$18.1 - $19.1 DD&A Expense ($/Mcfe) $0.89 - $0.95 $0.89 - $1.00
Cash Interest Expense ($MM) $5.3 - $6.3 N/A
Product Pricing
: Natural Gas NYMEX Differential (per Mcf) ($0.06) – ($0.01)
N/A Crude Oil NYMEX Differential (per Bbl) $0.75 - $1.75 N/A
Natural Gas Liquids (% of WTI) 36% - 38% N/A
(1) Pro Forma for divested properties in
2017 and for AWP Olmos divestiture in 1Q18
Finding and Development (“F&D”)
Cost Calculation:
(Unaudited)
F&D costs are commonly used to assist in the evaluation of
how much it costs the Company, on a per Mcfe basis, to add proved
reserves. We present F&D costs in addition to and used in
conjunction with our financial statements prepared in accordance
with U.S. GAAP. Due to various factors, including but not limited
to timing differences, F&D costs do not necessarily reflect
precisely the costs associated with particular reserves. Further,
our F&D costs may not be comparable to similarly titled
measures of another company because all companies may not calculate
F&D costs in the same manner.
F&D All-In costs are calculated by dividing the total
acquisition, exploration, and development costs for the year by
extensions, discoveries, and other additions, purchases of minerals
in place, and total revisions for the year.
Reserve replacement ratio is calculated by dividing the sum of
extensions, discoveries, and other additions, purchases of minerals
in place, and total revisions for the year by production.
F&D Cost reconciliation
Year Ended December 31,
2017
in $000's Lease acquisitions and prospect costs $ 44,569
Exploration — Development 149,293 Acquisition of property $ 9,426
Total acquisition, exploration, and development $ 203,288
in Mmcfe Proved reserves as of December 31, 2016
743,741 Extensions, discoveries, and other additions(1) 317,024
Revisions of previous estimates (8,748 ) Purchases of minerals in
place 33,405 Sales of minerals in place (4,866 ) Production (56,135
) Proved reserves as of December 31, 2017 1,024,421
F&D Costs ($/Mcfe) 0.59 Reserve replacement ratio
609 % (1) The increase in 2017 was primarily
attributable to extensions added based on drilling results and
leasing of adjacent acreage.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180228006590/en/
SilverBow Resources, Inc.Doug Atkinson, CFA, (281) 874-2700,
(800) 777-2412Senior Manager - Finance & Investor Relations
SilverBow Resources (NYSE:SBOW)
Historical Stock Chart
From Jun 2024 to Jul 2024
SilverBow Resources (NYSE:SBOW)
Historical Stock Chart
From Jul 2023 to Jul 2024