Production at high end of guidance - Oil
production above high end of guidance Peer-leading cost
structure supported by $0.73/Mcfe of production expenses (LOE,
T&P and Production Taxes) Significantly expands oil
inventory - Announces new 16,000 net acre position in Dimmit
County Provides preliminary 2020 budget - Remain focused on
capital discipline and free cash flow generation
SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or the
“Company”) today announced operating and financial results for the
third quarter of 2019. Highlights include:
- Net production averaged approximately 239 million cubic feet of
natural gas equivalent per day (“MMcfe/d”), at the high end of
guidance
- Net liquids production averaged approximately 11,000 barrels
per day ("Bbls/d"), 50% of which was oil, exceeding guidance. Net
liquids production increased 21% quarter-over-quarter and 107%
year-over-year
- Drilled and completed five net wells, primarily in the La Salle
Condensate and McMullen Oil areas
- Wells from La Salle Condensate and McMullen Oil areas showing
significant production increases compared to historical averages
with an estimated 25%-30% increase in EUR
- Average realized prices for crude oil and natural gas were 101%
and 104% of West Texas Intermediate ("WTI") and Henry Hub,
respectively, excluding hedging, as a result of favorable basis
pricing in the Eagle Ford Shale
- Oil and gas revenue of $72.0 million (excluding hedge impact),
net income of $27.7 million, and Adjusted EBITDA(1) (as defined
herein) (a non-GAAP measure) of $62.9 million, an 8% increase over
the second quarter of 2019
- Adjusted EBITDA margin(1) (as defined herein) (a non-GAAP
measure) of 75% for the quarter driven by the Company's growth in
oil production and low-cost structure
- Lease operating expenses ("LOE") of $0.25 per thousand cubic
feet of natural gas equivalent ("Mcfe") for the quarter, at the
midpoint of guidance
- Cash general and administrative expenses of $4.5 million (a
non-GAAP measure calculated as $6.2 million in net general and
administrative costs less $1.8 million of share-based
compensation), or $0.20/Mcfe, below the low end of guidance
- Anticipate full-year 2019 capital expenditures of $255-$260
million and production between 228-232 MMcfe/d, both in line with
previous guidance
- Preliminary 2020 capital budget of $175-$195 million, a 30%
decrease year-over-year at the midpoint while delivering 25% oil
production growth
1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP
measures that are defined and reconciled at the end of this press
release. "GAAP" refers to the accounting principles generally
accepted in the United States
MANAGEMENT COMMENTS
Sean Woolverton, SilverBow’s Chief Executive Officer, commented,
"Our third quarter results demonstrate the resilience of our
low-cost Eagle Ford asset base and our ability to generate returns
in a challenging commodity price cycle. We continue to execute on
our organic leasing campaign, and this quarter announced our newest
acreage position in Dimmit County which significantly increases our
oil location inventory. Our acreage additions this year in Webb and
Dimmit counties highlight our returns-focused approach towards
growth and our ability to sustain free cash flow, ultimately
creating long-term shareholder value."
"Our preliminary 2020 capital budget represents a 30% reduction
in projected spend year-over-year, and targets over 25% oil
production growth and positive free cash flow. At the forefront of
our strategy is the proactive management and protection of our
balance sheet, borrowing base, and liquidity. At a one-rig pace, we
will focus on returns while assessing opportunities to grow where
valuations are attractive. As we work to finalize our formal 2020
budget, we have unique optionality as we focus on diversifying our
commodity mix as well as maintaining our ability to respond quickly
to the commodity price environment and pursue strategic
expansions."
Mr. Woolverton commented further, "SilverBow is a premiere
small-cap company in the E&P space, with an exclusive focus in
the Eagle Ford. We are a returns-focused operator uniquely
positioned to adjust capital allocation based on prevailing product
prices. We have a low-cost structure and proximity to premium Gulf
Coast markets. As such, we have consistently delivered industry
leading margins and top-decile returns on capital employed.”
OPERATIONS HIGHLIGHTS
During the third quarter, the Company drilled six gross (five
net) wells while completing five gross (five net) wells and
bringing seven gross (seven net) wells online. Activity primarily
focused on the McMullen Oil area where three net wells were
completed. The Company continues to focus on capital efficiency and
optimizing well designs. Year-to-date, the Company has realized a
24% improvement in lateral feet drilled per day over the full-year
2018 average, resulting in a decrease in average cost per lateral
foot of 22% over the same time frame. On the completions side, the
Company averaged over seven stages per day year to date, a 64%
increase over the full-year 2018 average, and lowered completion
costs per well by 26% over the same time frame. Additionally, total
proppant volumes pumped per day have averaged over 3.5 million lbs
per day, a 54% increase compared to the full-year 2018 average.
The Company continues to see strong results in its McMullen Oil
and La Salle Condensate assets. A two-well pad in the McMullen Oil
area was brought online early in the third quarter, and produced a
30-day per well average of 1,200 barrels of oil equivalent per day
("Boe/d") (90% liquids). Both wells were completed utilizing over
3,000 pounds of proppant and 50 barrels of fluid per lateral foot.
In the La Salle Condensate area, the Company completed one well,
which was brought online in mid-August and produced a 30-day
average of 1,209 Boe/d (73% liquids).
Through year-end, the Company is focused on its six-well pad in
Webb County. The super-pad site will utilize dual frac crews,
de-bundled sand logistics and other innovative techniques to
maximize the efficiency of this large, complex operation. From
acquisition of this position in June to expected first production
by late fourth quarter, the Company expects to have assessed,
prepared and delivered first production in just five months. The
Company is targeting initial gross production from the pad between
75-100 MMcfe/d toward the latter part of the fourth quarter.
PRODUCTION VOLUMES, OPERATING COSTS AND REALIZED
PRICES
The Company's total net production for the third quarter
averaged approximately 239 MMcfe/d, which was at the high end of
guidance. Production mix for the third quarter consisted of
approximately 72% natural gas, 14% natural gas liquids ("NGLs"),
and 14% oil. Liquids comprised 49% of total revenue for the third
quarter, compared to 33% in the third quarter of 2018.
Lease operating expenses of $0.25/Mcfe for the third quarter
were in-line with the Company’s guidance range. After deducting
$1.8 million of non-cash compensation expense, cash general and
administrative costs of $4.5 million for the third quarter compared
favorably to guidance, with a per unit cash cost of $0.20/Mcfe.
Transportation and processing expenses ("T&P") came in at
$0.31/Mcfe and production and ad valorem taxes were 5.2% of oil and
gas revenue for the third quarter. Both metrics were at or below
the low end of the Company's guidance range. Total production
expenses, which include LOE, T&P and production taxes, were
$0.73/Mcfe for the quarter. The Company's all-in cash operating
expenses for the quarter, which includes cash general and
administrative costs, were $0.94/Mcfe.
Average realized prices for crude oil and natural gas were 101%
and 104% of WTI and Henry Hub, respectively, excluding hedging. The
Company’s average realized natural gas price, excluding the effect
of hedging, was $2.32 per thousand cubic feet of natural gas
("Mcf") compared to $2.97/Mcf in the third quarter of 2018. The
average realized crude oil selling price, excluding the effect of
hedging, was $57.14 per barrel of oil ("Bbl") compared to
$71.68/Bbl in the third quarter of 2018. The average realized NGL
selling price in the quarter was $11.99/Bbl, compared to $30.59/Bbl
in the third quarter of 2018. Despite lower commodity prices, the
Company realized strong growth in Adjusted EBITDA year-over-year,
driven by an increase in production, effective cost control and
greater percentage of revenue contribution from liquids.
FINANCIAL RESULTS
The Company reported total oil and gas revenue of $72.0 million
for the second quarter, up 11% over the third quarter of 2018. On a
GAAP basis, the Company reported net income of $27.7 million for
the third quarter of 2019, which includes an unrealized gain on the
value of the Company's hedge portfolio of $13.4 million and a $1.0
million net tax provision.
The Company reported Adjusted EBITDA of $62.9 million for the
second quarter, up 41% over the third quarter of 2018. On a per
unit basis, the Company's reported Adjusted EBITDA of $2.85/Mcfe
for the third quarter came in 13% higher than the third quarter of
2018.
Capital expenditures incurred during the third quarter totaled
approximately $49.5 million, which includes $4.9 million for
leasing expenditures.
2019 GUIDANCE AND PRELIMINARY 2020 OUTLOOK
The Company tightened its full-year capital budget range to
$255-$260 million and full-year production guidance range to
228-232 MMcfe/d. For the fourth quarter, the Company is guiding for
average estimated production of 225-234 MMcfe/d, with the largest
variable being the timing of initial production from the Company's
six-well pad in Webb County.
While still finalizing the 2020 budget, the Company expects to
increase oil production by over 25% year-over-year and generate
free cash flow while reducing capital expenditures by approximately
30% to a preliminary range of $175-$195 million. Additional detail
concerning the Company's fourth quarter and full-year 2019
financial and operational guidance can be found in the table
included at the end of today’s news release and the Corporate
Presentation uploaded to the Investor Relations section of the
Company’s website.
HEDGING UPDATE
Hedging continues to be an important element of the Company's
strategy to protect cash flow. The Company maintains an active
hedging program to provide predictable cash flows while still
allowing for flexibility in capturing price increases. As of
September 30, 2019, the Company had 67% of total estimated
production volumes hedged for the remainder of 2019, using the
midpoint of production guidance. For 2020, the Company has 86
million cubic feet of natural gas per day ("MMcf/d") hedged at an
average price of $2.66/Mcf and 3,191 Bbls/d of oil hedged at an
average price of $56.30/Bbl. Please see the Company's Form 10-Q
filing for the third quarter of 2019, which the Company expects to
file on Thursday, November 7, 2019, for a detailed summary of its
derivative contracts.
CAPITAL STRUCTURE AND LIQUIDITY
The Company's liquidity as of September 30, 2019, was $130.9
million, primarily consisting of approximately $2.9 million of cash
and $128.0 million of availability under the Company’s credit
facility. Subsequent to quarter end, the borrowing base of the
Company's credit facility was redetermined to be $400 million. As
of November 1, 2019, the Company had 11.8 million total common
shares outstanding.
CONFERENCE CALL AND UPDATED INVESTOR PRESENTATION
The Company will host a conference call for investors on
Thursday, November 7, 2019, at 9:00 a.m. Central Time (10:00 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 Third Quarter 2019 Earnings Conference Call
or by visiting the Company's website.
A simultaneous webcast of the call may be accessed over the
internet by visiting the Company's website at www.sbow.com,
clicking on “Investor Relations” and “Events and Presentations” and
then clicking on the “Third Quarter 2019 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, Inc. (NYSE: SBOW) is a Houston-based energy
company actively engaged in the exploration, development, and
production of oil and gas in the Eagle Ford Shale in South Texas.
With over 30 years of history operating in South Texas, the Company
possesses a significant understanding of regional reservoirs which
it leverages to assemble high quality drilling inventory while
continuously enhancing its 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.
These forward-looking statements represent management's
expectations or beliefs concerning future events, and it is
possible that the results described in this release will not be
achieved. These forward-looking statements are subject to a number
of risks and uncertainties, many of which are beyond our control,
which could cause actual results to differ materially from the
results discussed in the forward-looking statements, including
among other things: oil and natural gas price levels and
volatility; our ability to satisfy our short- or long-term
liquidity needs; our ability to execute our business strategy,
including the success of our drilling and development efforts;
timing, cost and amount of future production of oil and natural
gas; expectations regarding future free cash flow; and other
factors discussed in the Company’s reports filed with the
Securities and Exchange Commission ("SEC"), including its Annual
Report on Form 10-K for the year ended December 31, 2018 and Forms
10-Q filed thereafter. All statements, other than statements of
historical fact included in this press release, regarding our
strategy, future operations, financial position, future cash flows,
estimated production levels, expected oil and natural gas pricing,
estimated oil and natural gas reserves or the present value
thereof, reserve increases, capital expenditures, budget, projected
costs, prospects, plans and objectives of management are
forward-looking statements.
All forward-looking statements speak only as of the date of this
news release. You should not place undue reliance on these
forward-looking statements. Although we believe that our plans,
intentions and expectations reflected in or suggested by the
forward-looking statements we make in this release are reasonable,
we can give no assurance that these plans, intentions or
expectations will be achieved. The risk factors and other factors
noted herein and in the Company's SEC filings could cause its
actual results to differ materially from those contained in any
forward-looking statement. These cautionary statements qualify all
forward-looking statements attributable to us or persons acting on
our behalf.
All subsequent written and oral forward-looking statements
attributable to us or to persons acting on our behalf are expressly
qualified in their entirety by the foregoing. We undertake no
obligation to publicly release the results of any revisions to any
such forward-looking statements that may be made to reflect events
or circumstances after the date of this release or to reflect the
occurrence of unanticipated events. New factors emerge from time to
time, and it is not possible for us to predict all such
factors.
(Financial Highlights to Follow)
Condensed Consolidated Balance Sheets
(Unaudited)
SilverBow Resources, Inc. and Subsidiaries
(in thousands, except share amounts)
September 30, 2019
December 31, 2018
ASSETS
Current Assets:
Cash and cash equivalents
$
2,850
$
2,465
Accounts receivable, net
34,633
46,472
Fair value of commodity derivatives
20,604
15,261
Other current assets
2,683
2,126
Total Current Assets
60,770
66,324
Property and Equipment:
Property and equipment, full cost method,
including $43,066 and $56,715, respectively, of unproved property
costs not being amortized at the end of each period
1,193,671
986,100
Less – Accumulated depreciation,
depletion, amortization & impairment
(355,574
)
(284,804
)
Property and Equipment, Net
838,097
701,296
Right of Use Assets
10,443
—
Fair Value of Long-Term Commodity
Derivatives
7,051
4,333
Deferred Tax Asset
20,427
—
Other Long-Term Assets
4,558
5,567
Total Assets
$
941,346
$
777,520
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities:
Accounts payable and accrued
liabilities
$
38,951
$
48,921
Fair value of commodity derivatives
898
2,824
Accrued capital costs
10,655
38,073
Accrued interest
1,157
1,513
Current lease liability
6,386
—
Undistributed oil and gas revenues
8,983
14,681
Total Current Liabilities
67,030
106,012
Long-Term Debt, Net
475,663
387,988
Non-Current Lease Liability
4,154
—
Deferred Tax Liabilities
1,706
1,014
Asset Retirement Obligations
4,265
3,956
Fair Value of Long-Term Commodity
Derivatives
142
3,723
Stockholders' Equity:
Preferred stock, $0.01 par value,
10,000,000 shares authorized, none issued
—
—
Common stock, $0.01 par value, 40,000,000
shares authorized, 11,865,081 and 11,757,972 shares issued,
respectively, and 11,783,846 and 11,692,101 shares outstanding,
respectively
119
118
Additional paid-in capital
291,754
286,281
Treasury stock, held at cost, 81,235 and
65,871 shares, respectively
(2,193
)
(1,870
)
Retained earnings (accumulated
deficit)
98,706
(9,702
)
Total Stockholders’ Equity
388,386
274,827
Total Liabilities and Stockholders’
Equity
$
941,346
$
777,520
Condensed Consolidated Statements of
Operations (Unaudited)
SilverBow Resources, Inc. and Subsidiaries
(in thousands, except per-share amounts)
Three Months Ended September
30, 2019
Three Months Ended September
30, 2018
Revenues:
Oil and gas sales
$
72,014
$
65,034
Operating Expenses:
General and administrative, net
6,247
5,486
Depreciation, depletion, and
amortization
24,937
18,766
Accretion of asset retirement
obligations
88
87
Lease operating costs
5,507
4,207
Workovers
93
—
Transportation and gas processing
6,782
6,138
Severance and other taxes
3,778
2,464
Total Operating Expenses
47,432
37,148
Operating Income (Loss)
24,582
27,886
Non-Operating Income (Expense)
Gain (loss) on commodity derivatives,
net
13,409
(13,600
)
Interest expense, net
(9,435
)
(7,212
)
Other income (expense), net
134
226
Income (Loss) Before Income Taxes
28,690
7,300
Provision (Benefit) for Income Taxes
1,039
220
Net Income (Loss)
$
27,651
$
7,080
Per Share Amounts
Basic: Net Income (Loss)
$
2.35
$
0.61
Diluted: Net Income (Loss)
$
2.35
$
0.60
Weighted-Average Shares Outstanding -
Basic
11,762
11,671
Weighted-Average Shares Outstanding -
Diluted
11,780
11,792
Nine Months Ended September
30, 2019
Nine Months Ended September
30, 2018
Revenues:
Oil and gas sales
$
218,781
$
169,134
Operating Expenses:
General and administrative, net
19,146
16,856
Depreciation, depletion, and
amortization
70,771
44,994
Accretion of asset retirement
obligations
257
330
Lease operating costs
15,074
12,927
Workovers
613
—
Transportation and gas processing
19,917
16,585
Severance and other taxes
11,044
8,156
Total Operating Expenses
136,822
99,848
Operating Income (Loss)
81,959
69,286
Non-Operating Income (Expense)
Gain (loss) on commodity derivatives,
net
34,312
(30,707
)
Interest expense, net
(27,500
)
(19,686
)
Other income (expense), net
173
(477
)
Income (Loss) Before Income Taxes
88,944
18,416
Provision (Benefit) for Income Taxes
(19,464
)
549
Net Income (Loss)
$
108,408
$
17,867
Per Share Amounts
Basic: Net Income (Loss)
$
9.24
$
1.53
Diluted: Net Income (Loss)
$
9.21
$
1.52
Weighted-Average Shares Outstanding -
Basic
11,739
11,643
Weighted-Average Shares Outstanding -
Diluted
11,776
11,759
Condensed Consolidated Statements of
Cash Flows (Unaudited)
SilverBow Resources, Inc. and Subsidiaries
(in thousands)
Nine Months Ended September
30, 2019
Nine Months Ended September
30, 2018
Cash Flows from Operating Activities:
Net income (loss)
$
108,408
$
17,867
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities
Depreciation, depletion, and
amortization
70,771
44,994
Accretion of asset retirement
obligations
257
330
Deferred income taxes
(19,735
)
549
Share-based compensation expense
5,091
4,240
(Gain) Loss on derivatives, net
(34,312
)
30,707
Cash settlement (paid) received on
derivatives
16,087
(5,671
)
Settlements of asset retirement
obligations
(67
)
(159
)
Other
1,782
4,114
Change in operating assets and
liabilities
(Increase) decrease in accounts receivable
and other current assets
13,746
(6,533
)
Increase (decrease) in accounts payable
and accrued liabilities
(8,824
)
(2,612
)
Increase (decrease) in income taxes
payable
217
—
Increase (decrease) in accrued
interest
(356
)
198
Net Cash Provided by (Used in) Operating
Activities
153,065
88,024
Cash Flows from Investing Activities:
Additions to property and equipment
(234,859
)
(163,151
)
Proceeds from the sale of property and
equipment
(96
)
27,940
Payments on property sale obligations
(4,402
)
(7,036
)
Transfer of company funds from restricted
cash
—
(222
)
Net Cash Provided by (Used in) Investing
Activities
(239,357
)
(142,469
)
Cash Flows from Financing Activities:
Proceeds from bank borrowings
315,000
192,300
Payments of bank borrowings
(228,000
)
(141,300
)
Net proceeds from issuances of common
stock
—
709
Purchase of treasury shares
(323
)
(418
)
Payments of debt issuance costs
—
(330
)
Net Cash Provided by (Used in) Financing
Activities
86,677
50,961
Net Increase (Decrease) in Cash, Cash
Equivalents and Restricted Cash
385
(3,484
)
Cash, Cash Equivalents and Restricted
Cash, at Beginning of Period
2,465
8,026
Cash, Cash Equivalents and Restricted Cash
at End of Period
$
2,850
$
4,542
Supplemental Disclosures of Cash Flow
Information:
Cash paid during period for interest, net
of amounts capitalized
$
26,172
$
17,620
Changes in capital accounts payable and
capital accruals
$
(27,905
)
$
54,060
Changes in other long-term liabilities for
capital expenditures
$
—
$
(3,750
)
SilverBow Resources, Inc. Non-GAAP
Financial Measures Reconciliation of Net Income (GAAP) to
Adjusted EBITDA (Non-GAAP) (In thousands)
(Unaudited)
We present Adjusted EBITDA attributable to common stockholders
(“Adjusted EBITDA”) and Adjusted EBITDA Margin in addition to our
reported net income (loss) in accordance with U.S. GAAP. Adjusted
EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures
that are used as supplemental financial measures 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. We define
Adjusted EBITDA as net income (loss):
Plus (Less):
- Depreciation, depletion and amortization;
- Accretion of asset retirement obligations;
- Interest expense;
- Impairment of oil and natural gas properties;
- Net losses (gains) on commodity derivative contracts;
- Amounts collected (paid) for commodity derivative contracts
held to settlement;
- Income tax expense (benefit); and
- Share-based compensation expense
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by
the sum of oil and gas sales and derivative cash settlements
collected or paid. Our Adjusted EBITDA and Adjusted EBITDA Margin
should not be considered alternatives 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 and Adjusted EBITDA Margin may not be comparable to
similarly titled measures of another company because all companies
may not calculate Adjusted EBITDA and Adjusted EBITDA Margin in the
same manner.
Three Months Ended September
30, 2019
Three Months Ended September
30, 2018
Net Income (Loss)
$
27,651
$
7,080
Plus:
Depreciation, depletion and
amortization
24,937
18,766
Accretion of asset retirement
obligations
88
87
Interest expense
9,435
7,212
Derivative (gain)/loss
(13,409
)
13,600
Derivative cash settlements
collected/(paid) (1)
11,407
(4,060
)
Income tax expense/(benefit)
1,039
220
Share-based compensation expense
1,752
1,566
Adjusted EBITDA
$
62,900
$
44,471
Total production volumes (MMcfe)
22,034
17,666
Adjusted EBITDA per Mcfe
$
2.85
$
2.52
Adjusted EBITDA Margin (2)
75
%
73
%
(1) This includes accruals for settled
contracts covering commodity deliveries during the period where the
actual cash settlements occur outside of the period.
(2) Adjusted EBITDA Margin equals Adjusted
EBITDA divided by the sum of Oil and Gas Sales and Derivative Cash
Settlements Collected or Paid.
Nine Months Ended September
30, 2019
Nine Months Ended September
30, 2018
Net Income (Loss)
$
108,408
$
17,867
Plus:
Depreciation, depletion and
amortization
70,771
44,994
Accretion of asset retirement
obligations
257
330
Interest expense
27,500
19,686
Derivative (gain)/loss
(34,312
)
30,707
Derivative cash settlements
collected/(paid) (1)
16,773
(6,536
)
Income tax expense/(benefit)
(19,464
)
549
Share-based compensation expense
5,091
4,241
Adjusted EBITDA
$
175,024
$
111,838
Total production volumes (MMcfe)
62,778
46,675
Adjusted EBITDA per Mcfe
$
2.79
$
2.40
Adjusted EBITDA Margin (2)
74
%
69
%
(1) This includes accruals for settled
contracts covering commodity deliveries during the period where the
actual cash settlements occur outside of the period.
(2) Adjusted EBITDA Margin equals Adjusted
EBITDA divided by the sum of Oil and Gas Sales and Derivative Cash
Settlements Collected or Paid.
Production Volumes & Pricing
(Unaudited)
SilverBow Resources, Inc. and
Subsidiaries
Three Months Ended September
30, 2019
Three Months Ended September
30, 2018
Production volumes:
Oil (MBbl) (1)
506
155
Natural gas (MMcf)
15,958
14,732
Natural gas liquids (MBbl) (1)
507
334
Total (MMcfe)
22,034
17,666
Oil, natural gas and natural gas liquids
sales:
Oil
$
28,894
$
11,124
Natural gas
37,040
43,697
Natural gas liquids
6,080
10,213
Total
$
72,014
$
65,034
Average realized price:
Oil (per Bbl)
$
57.14
$
71.68
Natural gas (per Mcf)
2.32
2.97
Natural gas liquids (per Bbl)
11.99
30.59
Average per Mcfe
$
3.27
$
3.68
(1) Oil and NGLs are converted at the rate
of one barrel to six Mcfe
Nine Months Ended September
30, 2019
Nine Months Ended September
30, 2018
Production volumes:
Oil (MBbl) (1)
1,167
473
Natural gas (MMcf)
48,274
39,081
Natural gas liquids (MBbl) (1)
1,250
793
Total (MMcfe)
62,778
46,675
Oil, natural gas and natural gas liquids
sales:
Oil
$
68,441
$
32,202
Natural gas
131,941
115,833
Natural gas liquids
18,400
21,113
Total
$
218,781
$
169,148
Average realized price:
Oil (per Bbl)
$
58.65
$
68.09
Natural gas (per Mcf)
2.73
2.96
Natural gas liquids (per Bbl)
14.72
26.63
Average per Mcfe
$
3.49
$
3.62
(1) Oil and NGLs are converted at the rate
of one barrel to six Mcfe
Fourth Quarter 2019 & Full
Year 2019 Guidance
Guidance
4Q 2019
FY 2019
Production Volumes:
Oil (Bbls/d)
4,600 - 4,700
4,300 - 4,400
Natural Gas (MMcf/d)
168 - 176
175 - 177
NGLs (Bbls/d)
4,850 - 4,950
4,600 - 4,700
Total Reported Production (MMcfe/d)
225 - 234
228 - 232
Product Pricing:
Crude Oil NYMEX Differential ($/Bbl)
($2.00) - ($1.00)
N/A
Natural Gas NYMEX Differential ($/Mcf)
($0.10) - ($0.04)
N/A
Natural Gas Liquids (% of WTI)
23% - 27%
N/A
Operating Costs & Expenses:
Lease Operating Expenses ($/Mcfe)
$0.23 - $0.27
$0.24 - $0.26
Transportation & Processing
($/Mcfe)
$0.31 - $0.35
$0.31 - $0.33
Production Taxes (% of Revenue)
5.0% - 6.0%
5.0% - 5.5%
Cash G&A, net ($MM)
$4.8 - $5.2
$18.5 - $19.5
DD&A Expense ($/Mcfe)
$1.12 - $1.17
$1.12 - $1.16
Cash Interest Expense ($MM)
$8.5 - $9.5
N/A
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191106005891/en/
Jeff Magids Senior Manager, Finance & Investor Relations
(281) 874-2700, (888) 991-SBOW
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