Lonestar Resources US Inc. (NASDAQ: LONE) (including its subsidiaries, “Lonestar,” “we,” “us,” “our” or the “Company”) today reported financial and operating results for the three months ended June 30, 2019.
HIGHLIGHTS
Lonestar's Chief Executive Officer, Frank D. Bracken, III, commented, "Our technologically focused smart completions continue to deliver differential results that exceed our third-party type curves and our budget. In the second quarter, those well results are beginning to show up in our financial results. The third quarter is set to deliver even more impressive results, with July’s production having exceeded 16,000 BOE/d, as our new Horned Frog and Sooner wells are delivering impressive daily rates and were placed onstream ahead of schedule. Looking ahead, we see record production results in the third and fourth quarters of 2019, and strong growth in EBITDAX. Given the progress we made in 2019 we have the potential to achieve our previously issued production targets while drilling 20-25% fewer wells. With production anticipated to rise 19% and generate a substantial increase in EBITDAX, free cash flow generation of $5-$20 million is on the horizon. We have positioned Lonestar to thrive in the current environment and continue to build shareholder value.”
OPERATIONAL UPDATE
GUIDANCE
EAGLE FORD SHALE TREND - WESTERN REGION
In our Western Region, production for 2Q19 averaged approximately 7,717 BOE per day, a 24% sequential increase in production. This region accounted for 57% of the Company’s production during the quarter. During the second quarter, Lonestar placed 2 wells onstream at both its Horned Frog and Horned Frog NW properties, respectively, where it has some of the highest internal rates of return (“IRR”) in the Company’s asset base.
In April, Lonestar began flowback operations on 2 gross / 2.0 net wells, the Horned Frog NW #4H and #5H. These wells recorded Max-30 production rates of 1,453 BOE/d, within 1% of their direct offsets on a per foot basis. Now, through the first 90 days, these wells have produced an average of 114,000 BOE, which is 2% better than the parent wells drilled in 2018 and 5% better than the third-party type curve. The Company holds a 100% working interest (“WI”) / 75% net revenue interest (“NRI”) in these wells.
In June, the Company began flowback operations on a second pair of wells in its Western Region. At Horned Frog South, Lonestar previously announced initial test results averaging 2,497 BOE/d. These new wells have since cleaned up after flowback and registered the following maximum rates over a 30-day period (“Max-30” rates) which average 2,493 BOE/d:
Lonestar’s newest wells on its 4,975-acre Horned Frog South property represent continued progress in the advancement of its Geo-Engineered completion practices. On a per-foot basis through the first 30-days, our 2019 wells have recorded production rates that are 20% higher than our initial pad at Horned Frog, the Horned Frog #A1H and #B1H (completed in 2015) and 7% higher than our most recent Horned Frog wells, the Horned Frog #G1H and Horned Frog #H1H (completed in 2018). Our 2019 Horned Frog wells recorded Max-30 day rates that eclipsed 200 BOE/d per-foot, and importantly, are registering oil production rates that are 17% better than our 2018 completions, on a per-foot basis. Lastly, to date, our 2019 Horned Frog completions are outperforming the projections of our third-party engineers by 25% thus far. Lonestar holds a 100% WI / 78% NRI in these wells.
EAGLE FORD SHALE TREND - CENTRAL REGION
In our Central Region, 2Q19 production averaged approximately 5,652 BOE/d, a 69% increase over 1Q19 rates. The Company’s second quarter results were positively impacted by 4 gross / 3.2 net wells placed onstream in Karnes County. The Company’s third quarter results will be positively impacted by 3 gross / 3.0 net wells it has recently placed onstream on its Sooner property in DeWitt County.
In May 2019, the Company began flowback operations on the Georg #3H, Georg #4H, Georg #5H, and Georg #6H. These wells have some of the highest oil profiles (87%) in the Company’s portfolio and have registered the following Max-30 rates:
Our 2019 wells in Karnes County follow 6 wells we placed onstream in 2018, and the Company has been able to continue to improve on prior results. By acquiring offsetting acreage contiguous to our existing leasehold, Lonestar was able to increase lateral lengths by 18% compared to 2018 wells but continues to exhibit modestly better productivity on a per-foot basis through 60 days of production, yielding superior well economics. Our 2019 wells have outperformed the type curve by 19% thus far. Lonestar has an 80% WI / 61% NRI in these wells.
In late July, Lonestar began flowback operations on 3.0 gross / 3.0 net wells on its Sooner property, which was acquired in November 2018, known as the Buchhorn #4H, Buchhorn #5H, and Buchhorn #6H. These wells are the first wells Lonestar has drilled on its Sooner property and were drilled to total measured depths of 20,327’, 20,238’, and 20,260’, respectively. Lonestar fracture-stimulated these wells with an average proppant concentration of approximately 2,000 pounds per foot over 21 stages, using diverters. Test rates have averaged 3,460 BOE/d. Perforations and test rates for the wells are:
Lonestar has 100% WI / 78% NRI in these wells.
EAGLE FORD SHALE TREND - EASTERN REGION
In our Eastern Region, production for the second quarter of 2019 averaged approximately 261 BOE/d, a 24% decrease compared to 1Q19 rates. The Company did not complete any wells in this region in the second quarter. However, Lonestar recently completed drilling operations on the Smith Family Ranch #1H, reaching a total measured depth of 22,025 feet. Lonestar expects to complete the well with a perforated interval of approximately 10,300 feet, stimulate the well in August, and place this well into flowback operations in September 2019. Lonestar has a 50% WI / 38% NRI in the well. Lonestar has engaged Intrepid Financial Partners, LLC to represent the Company in marketing its Eagle Ford Shale assets in Brazos and Robertson Counties for sale, with a target of concluding a transaction before year-end.
CONFERENCE CALL DETAILS
Lonestar will host a live conference call on Tuesday, August 6, 2019 at 9:00 AM CDT to discuss the second quarter 2019 results and operational highlights.
To access the conference call, participants should dial:
USA: 1-888-221-1875
International: +1-303-223-4396
A playback of the conference call will be available on the Investor Relations section of Company’s website beginning approximately August 7, 2019.
ABOUT LONESTAR RESOURCES US INC.
Lonestar is an independent oil and natural gas company, focused on the development, production, and acquisition of unconventional oil, NGLs, and natural gas properties in the Eagle Ford Shale in Texas, where we have accumulated approximately 72,178 gross (52,419 net) acres in what we believe to be the formation’s crude oil and condensate windows, as of June 30, 2019. For more information, please visit www.lonestarresources.com.
CAUTIONARY & FORWARD-LOOKING STATEMENTS
Lonestar Resources US Inc. cautions that this press release contains forward-looking statements, including, but not limited to; Lonestar’s execution of its growth strategies; growth in Lonestar’s leasehold, reserves and asset value; and Lonestar’s ability to create shareholder value. These statements involve substantial known and unknown risks, uncertainties and other important factors that may cause our actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, the following: volatility of oil, natural gas and NGL prices, and potential write-down of the carrying values of crude oil and natural gas properties; inability to successfully replace proved producing reserves; substantial capital expenditures required for exploration, development and exploitation projects; potential liabilities resulting from operating hazards, natural disasters or other interruptions; risks related using the latest available horizontal drilling and completion techniques; uncertainties tied to lengthy period of development of identified drilling locations; unexpected delays and cost overrun related to the development of estimated proved undeveloped reserves; concentration risk related to properties, which are located primarily in the Eagle Ford Shale of South Texas; loss of lease on undeveloped leasehold acreage that may result from lack of development or commercialization; inaccuracies in assumptions made in estimating proved reserves; our limited control over activities in properties Lonestar does not operate; potential inconsistency between the present value of future net revenues from our proved reserves and the current market value of our estimated oil and natural gas reserves; risks related to derivative activities; losses resulting from title deficiencies; risks related to health, safety and environmental laws and regulations; additional regulation of hydraulic fracturing; reduced demand for crude oil, natural gas and NGLs resulting from conservation measures and technological advances; inability to acquire adequate supplies of water for our drilling operations or to dispose of or recycle the used water economically and in an environmentally safe manner; climate change laws and regulations restricting emissions of “greenhouse gases” that may increase operating costs and reduce demand for the crude oil and natural gas; fluctuations in the differential between benchmark prices of crude oil and natural gas and the reference or regional index price used to price actual crude oil and natural gas sales; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission, or the SEC, on March 13, 2019, as well as other documents that we may file from time to time with the SEC. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.
Lonestar Resources US Inc. |
|||||||
Unaudited Condensed Consolidated Balance Sheets |
|||||||
(In thousands, except par value and share data) |
|||||||
|
June 30,
|
|
December 31,
|
||||
Assets |
|||||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
3,340 |
|
|
$ |
5,355 |
|
Accounts receivable |
|
|
|
||||
Oil, natural gas liquid and natural gas sales |
18,074 |
|
|
15,103 |
|
||
Joint interest owners and others, net |
3,774 |
|
|
4,541 |
|
||
Related parties |
24 |
|
|
301 |
|
||
Derivative financial instruments |
7,143 |
|
|
15,841 |
|
||
Prepaid expenses and other |
2,751 |
|
|
1,966 |
|
||
Total current assets |
35,106 |
|
|
43,107 |
|
||
Property and equipment |
|
|
|
||||
Oil and gas properties, using the successful efforts method of accounting |
|
|
|
||||
Proved properties |
976,638 |
|
|
960,711 |
|
||
Unproved properties |
78,872 |
|
|
81,850 |
|
||
Other property and equipment |
21,150 |
|
|
17,727 |
|
||
Less accumulated depreciation, depletion and amortization |
(368,117 |
) |
|
(369,529 |
) |
||
Property and equipment, net |
708,543 |
|
|
690,759 |
|
||
Derivative financial instruments |
5,457 |
|
|
7,302 |
|
||
Other non-current assets |
2,421 |
|
|
2,944 |
|
||
Total assets |
$ |
751,527 |
|
|
$ |
744,112 |
|
Liabilities and Stockholders' Equity |
|||||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
30,021 |
|
|
$ |
18,260 |
|
Accounts payable – related parties |
195 |
|
|
181 |
|
||
Oil, natural gas liquid and natural gas sales payable |
13,339 |
|
|
13,022 |
|
||
Accrued liabilities |
47,019 |
|
|
28,128 |
|
||
Derivative financial instruments |
10,176 |
|
|
430 |
|
||
Total current liabilities |
100,750 |
|
|
60,021 |
|
||
Long-term liabilities |
|
|
|
||||
Long-term debt |
459,466 |
|
|
436,882 |
|
||
Asset retirement obligations |
6,897 |
|
|
7,195 |
|
||
Deferred tax liabilities, net |
682 |
|
|
12,370 |
|
||
Warrant liability |
127 |
|
|
366 |
|
||
Warrant liability – related parties |
234 |
|
|
689 |
|
||
Derivative financial instruments |
1,726 |
|
|
21 |
|
||
Other non-current liabilities |
3,043 |
|
|
4,021 |
|
||
Total long-term liabilities |
472,175 |
|
|
461,544 |
|
||
Commitments and contingencies |
|
|
|
||||
Stockholders' Equity |
|
|
|
||||
Class A voting common stock, $0.001 par value, 100,000,000 shares authorized, 24,933,853 and 24,645,825 issued and outstanding, respectively |
142,655 |
|
|
142,655 |
|
||
Series A-1 convertible participating preferred stock, $0.001 par value, 95,961 and 91,784 shares issued and outstanding, respectively |
— |
|
|
— |
|
||
Additional paid-in capital |
175,709 |
|
|
174,379 |
|
||
Accumulated deficit |
(139,762 |
) |
|
(94,487 |
) |
||
Total stockholders' equity |
178,602 |
|
|
222,547 |
|
||
Total liabilities and stockholders' equity |
$ |
751,527 |
|
|
$ |
744,112 |
|
Lonestar Resources US Inc. |
|||||||||||||||
Unaudited Condensed Consolidated Statements of Operations |
|||||||||||||||
(In thousands, except per share data) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Oil sales |
$ |
44,726 |
|
|
$ |
39,707 |
|
|
$ |
78,310 |
|
|
$ |
72,859 |
|
Natural gas liquid sales |
3,549 |
|
|
4,410 |
|
|
6,942 |
|
|
6,143 |
|
||||
Natural gas sales |
3,940 |
|
|
3,735 |
|
|
7,704 |
|
|
5,542 |
|
||||
Total revenues |
52,215 |
|
|
47,852 |
|
|
92,956 |
|
|
84,544 |
|
||||
Expenses |
|
|
|
|
|
|
|
||||||||
Lease operating and gas gathering |
8,929 |
|
|
6,490 |
|
|
16,638 |
|
|
11,074 |
|
||||
Production and ad valorem taxes |
2,818 |
|
|
2,761 |
|
|
5,109 |
|
|
4,927 |
|
||||
Depreciation, depletion and amortization |
21,515 |
|
|
20,737 |
|
|
39,486 |
|
|
36,162 |
|
||||
Loss on sale of oil and gas properties |
155 |
|
|
— |
|
|
33,046 |
|
|
1,568 |
|
||||
General and administrative |
3,841 |
|
|
5,305 |
|
|
8,221 |
|
|
8,724 |
|
||||
Acquisition costs and other |
— |
|
|
(3 |
) |
|
(2 |
) |
|
(13 |
) |
||||
Total expenses |
37,258 |
|
|
35,290 |
|
|
102,498 |
|
|
62,442 |
|
||||
Income (loss) from operations |
14,957 |
|
|
12,562 |
|
|
(9,542 |
) |
|
22,102 |
|
||||
Other expense |
|
|
|
|
|
|
|
||||||||
Interest expense |
(10,778 |
) |
|
(9,298 |
) |
|
(21,434 |
) |
|
(18,555 |
) |
||||
Change in fair value of warrants |
796 |
|
|
(2,462 |
) |
|
694 |
|
|
(2,615 |
) |
||||
Gain (loss) on derivative financial instruments |
9,514 |
|
|
(25,498 |
) |
|
(26,724 |
) |
|
(36,654 |
) |
||||
Loss on extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
(8,619 |
) |
||||
Total other expense |
(468 |
) |
|
(37,258 |
) |
|
(47,464 |
) |
|
(66,443 |
) |
||||
Income (loss) before income taxes |
14,489 |
|
|
(24,696 |
) |
|
(57,006 |
) |
|
(44,341 |
) |
||||
Income tax (expense) benefit |
(1,200 |
) |
|
3,103 |
|
|
11,732 |
|
|
6,211 |
|
||||
Net income (loss) |
13,289 |
|
|
(21,593 |
) |
|
(45,274 |
) |
|
(38,130 |
) |
||||
Preferred stock dividends |
(2,112 |
) |
|
(1,932 |
) |
|
(4,177 |
) |
|
(3,821 |
) |
||||
Net income (loss) attributable to common stockholders |
$ |
11,177 |
|
|
$ |
(23,525 |
) |
|
$ |
(49,451 |
) |
|
$ |
(41,951 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share |
|
|
|
|
|
|
|
||||||||
Basic |
0.28 |
|
|
(0.96 |
) |
|
(1.99 |
) |
|
$ |
(1.71 |
) |
|||
Diluted |
0.28 |
|
|
(0.96 |
) |
|
(1.99 |
) |
|
$ |
(1.71 |
) |
|||
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
24,924,169 |
|
|
24,599,744 |
|
|
24,811,895 |
|
|
24,598,345 |
|
||||
Diluted |
24,924,169 |
|
|
24,599,744 |
|
|
24,811,895 |
|
|
24,598,345 |
|
Lonestar Resources US Inc. |
|||||||||||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Cash flows from operating activities |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
13,289 |
|
|
$ |
(21,593 |
) |
|
$ |
(45,274 |
) |
|
$ |
(38,130 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation, depletion and amortization |
21,515 |
|
|
20,737 |
|
|
39,486 |
|
|
36,162 |
|
||||
Stock-based compensation |
(181 |
) |
|
2,263 |
|
|
352 |
|
|
2,713 |
|
||||
Share-based payments |
— |
|
|
9 |
|
|
— |
|
|
(601 |
) |
||||
Deferred taxes |
1,234 |
|
|
(3,241 |
) |
|
(11,688 |
) |
|
(6,432 |
) |
||||
(Gain) loss on derivative financial instruments |
(9,514 |
) |
|
25,464 |
|
|
26,724 |
|
|
36,620 |
|
||||
Settlements of derivative financial instruments |
(4,888 |
) |
|
(5,560 |
) |
|
(3,579 |
) |
|
(8,676 |
) |
||||
Gain on disposal of property and equipment |
— |
|
|
— |
|
|
(17 |
) |
|
— |
|
||||
Loss on abandoned property and equipment |
— |
|
|
— |
|
|
— |
|
|
170 |
|
||||
Loss on sale of oil and gas properties |
155 |
|
|
— |
|
|
33,046 |
|
|
— |
|
||||
Non-cash interest expense |
483 |
|
|
1,067 |
|
|
1,182 |
|
|
3,544 |
|
||||
Change in fair value of warrants |
(796 |
) |
|
2,463 |
|
|
(694 |
) |
|
2,615 |
|
||||
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
(1,363 |
) |
|
(122 |
) |
|
(3,379 |
) |
|
(254 |
) |
||||
Prepaid expenses and other assets |
(996 |
) |
|
(450 |
) |
|
(692 |
) |
|
(1,159 |
) |
||||
Accounts payable and accrued expenses |
9,424 |
|
|
7,869 |
|
|
2,720 |
|
|
12,179 |
|
||||
Net cash provided by operating activities |
28,362 |
|
|
28,906 |
|
|
38,187 |
|
|
38,751 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
||||||||
Acquisition of oil and gas properties |
(673 |
) |
|
(1,257 |
) |
|
(3,025 |
) |
|
(2,862 |
) |
||||
Development of oil and gas properties |
(38,559 |
) |
|
(35,238 |
) |
|
(67,696 |
) |
|
(66,761 |
) |
||||
Proceeds from sale of oil and gas properties |
(154 |
) |
|
— |
|
|
11,953 |
|
|
— |
|
||||
Purchases of other property and equipment |
(351 |
) |
|
(150 |
) |
|
(3,267 |
) |
|
(1,498 |
) |
||||
Net cash used in investing activities |
(39,737 |
) |
|
(36,645 |
) |
|
(62,035 |
) |
|
(71,121 |
) |
||||
|
|
|
|
|
|
|
|
||||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
||||||||
Proceeds from borrowings |
24,000 |
|
|
26,178 |
|
|
54,000 |
|
|
290,744 |
|
||||
Payments on borrowings |
(13,052 |
) |
|
(15,017 |
) |
|
(32,167 |
) |
|
(255,452 |
) |
||||
Net cash provided by financing activities |
10,948 |
|
|
11,161 |
|
|
21,833 |
|
|
35,292 |
|
||||
Net (decrease) increase in cash and cash equivalents |
(427 |
) |
|
3,422 |
|
|
(2,015 |
) |
|
2,922 |
|
||||
Cash and cash equivalents, beginning of the period |
3,767 |
|
|
2,038 |
|
|
5,355 |
|
|
2,538 |
|
||||
Cash and cash equivalents, end of the period |
$ |
3,340 |
|
|
$ |
5,460 |
|
|
$ |
3,340 |
|
|
$ |
5,460 |
|
|
|
|
|
|
|
|
|
||||||||
Supplemental information: |
|
|
|
|
|
|
|
||||||||
Cash paid for taxes |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,147 |
|
Cash paid for interest |
3,027 |
|
|
2,173 |
|
|
19,770 |
|
|
6,143 |
|
||||
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
||||||||
Change in asset retirement obligation |
$ 67 |
|
|
$ 151 |
|
|
$ (455 |
) |
|
$ 183 |
|
||||
Change in liabilities for capital expenditures |
27,654 |
|
|
12,019 |
|
|
28,384 |
|
|
12,425 |
|
NON-GAAP FINANCIAL MEASURES (Unaudited)
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is not a measure of net income as determined by GAAP. Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDAX as net income (loss) before depreciation, depletion, amortization and accretion, exploration costs, non-recurring costs, loss (gain) on sales of oil and natural gas properties, impairment of oil and gas properties, stock-based compensation, interest expense, income tax (benefit) expense, rig standby expense, other income (expense), unrealized (gain) loss on derivative financial instruments and unrealized (gain) loss on warrants.
Management believes Adjusted EBITDAX provides useful information to investors because it assists investors in the evaluation of the Company’s operating performance and comparison of the results of the Company’s operations from period to period without regard to its financing methods or capital structure. The Company excludes the items listed above from net income in arriving at Adjusted EBITDAX to eliminate the impact of certain non-cash items or because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income (loss) as determined in accordance with GAAP. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDAX. The Company’s computations of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
The following table presents a reconciliation of Adjusted EBITDAX to the GAAP financial measure of net income (loss) for each of the periods indicated.
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
($ in thousands) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Net Income (Loss) |
|
$ |
11,177 |
|
|
$ |
(23,525 |
) |
|
$ |
(49,451 |
) |
|
$ |
(41,951 |
) |
Income tax expense (benefit) |
|
1,200 |
|
|
(3,103 |
) |
|
(11,732 |
) |
|
(6,211 |
) |
||||
Interest expense (1) |
|
12,890 |
|
|
11,230 |
|
|
25,611 |
|
|
22,376 |
|
||||
Exploration expense |
|
— |
|
|
— |
|
|
190 |
|
|
— |
|
||||
Depreciation, depletion and amortization |
|
21,515 |
|
|
20,737 |
|
|
39,486 |
|
|
36,162 |
|
||||
EBITDAX |
|
46,782 |
|
|
5,339 |
|
|
4,104 |
|
|
10,376 |
|
||||
Rig standby expense |
|
310 |
|
|
— |
|
|
416 |
|
|
— |
|
||||
Stock-based compensation |
|
98 |
|
|
2,281 |
|
|
1,027 |
|
|
2,731 |
|
||||
Loss on sale of oil and gas properties |
|
155 |
|
|
— |
|
|
33,046 |
|
|
— |
|
||||
Office lease write-off |
|
— |
|
|
— |
|
|
— |
|
|
1,568 |
|
||||
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
8,619 |
|
||||
Unrealized (gain) loss on derivative financial instruments |
|
(13,760 |
) |
|
18,896 |
|
|
21,749 |
|
|
26,489 |
|
||||
Change in fair value of warrants |
|
(796 |
) |
|
2,463 |
|
|
(694 |
) |
|
2,615 |
|
||||
Other expense |
|
678 |
|
|
231 |
|
|
861 |
|
|
226 |
|
||||
Adjusted EBITDAX |
|
$ |
33,467 |
|
|
$ |
29,210 |
|
|
$ |
60,509 |
|
|
$ |
52,624 |
|
1 Interest expense also includes dividends paid on Series A Preferred Stock |
Adjusted Net Income (Loss)
Adjusted net income (loss) comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income (loss) is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income (loss) comparable to analysts’ estimates on a diluted per share basis.
The following table presents a reconciliation of Adjusted Net Income (Loss) to the GAAP financial measure of net income (loss) before taxes for each of the periods indicated.
Lonestar Resources US Inc. |
||||||||||||||||
Unaudited Reconciliation of Income (Loss) Before Taxes As Reported To Income (Loss) Before Taxes Excluding Certain Items, a non-GAAP measure (Adjusted Net Income (Loss)) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
($ in thousands) |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
|
|
(In thousands) |
|
(In thousands) |
||||||||||||
Income (loss) before income taxes, as reported |
|
$ |
14,489 |
|
|
$ |
(24,696 |
) |
|
$ |
(57,006 |
) |
|
$ |
(44,341 |
) |
Adjustments for special items: |
|
|
|
|
|
|
|
|
||||||||
General & administrative non-recurring costs |
|
7 |
|
|
1 |
|
|
382 |
|
|
8 |
|
||||
Rig standby expense |
|
310 |
|
|
— |
|
|
416 |
|
|
— |
|
||||
Non-recurring legal expense |
|
670 |
|
|
233 |
|
|
670 |
|
|
233 |
|
||||
Loss on extinguishment of debt |
|
— |
|
|
— |
|
|
— |
|
|
8,619 |
|
||||
Unrealized hedging (gain) loss |
|
(13,760 |
) |
|
18,896 |
|
|
21,749 |
|
|
26,489 |
|
||||
Lease write-off |
|
— |
|
|
— |
|
|
— |
|
|
1,568 |
|
||||
Loss on sale of oil and gas properties |
|
155 |
|
|
— |
|
|
33,046 |
|
|
— |
|
||||
Stock based compensation |
|
98 |
|
|
2,281 |
|
|
1,027 |
|
|
2,731 |
|
||||
Income (loss) before income taxes, as adjusted |
|
1,969 |
|
|
(3,285 |
) |
|
284 |
|
|
(4,693 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
Income tax benefit (expense), as adjusted |
|
|
|
|
|
|
|
|
||||||||
Deferred (a) |
|
(425 |
) |
|
633 |
|
|
(61 |
) |
|
904 |
|
||||
Net income (loss) excluding certain items, a non-GAAP measure |
|
1,543 |
|
|
(2,652 |
) |
|
223 |
|
|
(3,789 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
Preferred stock dividends |
|
(2,112 |
) |
|
(1,932 |
) |
|
(4,177 |
) |
|
(3,821 |
) |
||||
Net loss excluding certain items, a non-GAAP measure |
|
$ (569 |
) |
|
$ (4,584 |
) |
|
$ (3,954 |
) |
|
$ (7,610 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP loss per common share |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
(0.02 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.31 |
) |
Diluted |
|
$ |
(0.02 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.16 |
) |
|
$ |
(0.31 |
) |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP basic shares outstanding |
|
24,924,169 |
|
|
24,559,744 |
|
|
24,811,895 |
|
|
24,598,345 |
|
||||
Non-GAAP diluted shares outstanding, if dilutive |
|
24,924,169 |
|
|
24,559,744 |
|
|
24,811,895 |
|
|
24,598,345 |
|
(a) |
Effective tax rate for 2019 and 2018 is estimated to be approximately 22% and 19%, respectively. |
Lonestar Resources US Inc. |
||||||||||||||||
Unaudited Operating Results |
||||||||||||||||
In thousands, except per share and unit data |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
Operating Results |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to common stockholders |
|
$ |
11,177 |
|
|
$ |
(23,525 |
) |
|
$ |
(49,451 |
) |
|
$ |
(41,951 |
) |
Net income (loss) per common share – basic |
|
0.28 |
|
|
(0.96 |
) |
|
(1.99 |
) |
|
(1.71 |
) |
||||
Net income (loss) per common share – diluted |
|
0.28 |
|
|
(0.96 |
) |
|
(1.99 |
) |
|
(1.71 |
) |
||||
Net cash provided by operating activities |
|
28,362 |
|
|
28,906 |
|
|
38,187 |
|
|
38,751 |
|
||||
Revenues |
|
|
|
|
|
|
|
|
||||||||
Oil |
|
$ |
44,726 |
|
|
$ |
39,707 |
|
|
$ |
78,310 |
|
|
$ |
72,859 |
|
NGLs |
|
3,549 |
|
|
4,410 |
|
|
6,942 |
|
|
6,143 |
|
||||
Natural gas |
|
3,940 |
|
|
3,735 |
|
|
7,704 |
|
|
5,542 |
|
||||
Total revenues |
|
$ |
52,215 |
|
|
$ |
47,852 |
|
|
$ |
92,956 |
|
|
$ |
84,544 |
|
Total production volumes by product |
|
|
|
|
|
|
|
|
||||||||
Oil (Bbls) |
|
709,361 |
|
|
580,398 |
|
|
1,299,457 |
|
|
1,097,041 |
|
||||
NGLs (Bbls) |
|
263,994 |
|
|
221,858 |
|
|
481,555 |
|
|
308,786 |
|
||||
Natural gas (Mcf) |
|
1,601,656 |
|
|
1,268,813 |
|
|
2,896,860 |
|
|
1,848,010 |
|
||||
Total barrels of oil equivalent (6:1) |
|
1,240,298 |
|
|
1,013,740 |
|
|
2,263,822 |
|
|
1,713,708 |
|
||||
Daily production volumes by product |
|
|
|
|
|
|
|
|
||||||||
Oil (Bbls/d) |
|
7,795 |
|
|
6,378 |
|
|
7,179 |
|
|
6,061 |
|
||||
NGLs (Bbls/d) |
|
2,901 |
|
|
2,438 |
|
|
2,661 |
|
|
1,706 |
|
||||
Natural gas (Mcf/d) |
|
17,601 |
|
|
13,943 |
|
|
16,005 |
|
|
10,210 |
|
||||
Total barrels of oil equivalent (BOE/d) |
|
13,630 |
|
|
11,140 |
|
|
12,507 |
|
|
9,468 |
|
||||
Average realized prices |
|
|
|
|
|
|
|
|
||||||||
Oil ($ per Bbl) |
|
$ |
63.05 |
|
|
$ |
68.41 |
|
|
$ |
60.26 |
|
|
$ |
66.41 |
|
NGLs ($ per Bbl) |
|
13.44 |
|
|
19.88 |
|
|
14.42 |
|
|
19.89 |
|
||||
Natural gas ($ per Mcf) |
|
2.46 |
|
|
2.94 |
|
|
2.66 |
|
|
3.00 |
|
||||
Total oil equivalent, excluding the effect from commodity derivatives ($ per BOE) |
|
42.10 |
|
|
47.20 |
|
|
41.06 |
|
|
49.33 |
|
||||
Total oil equivalent, including the effect from commodity derivatives ($ per BOE) |
|
38.63 |
|
|
40.69 |
|
|
38.86 |
|
|
43.40 |
|
||||
Operating and other expenses |
|
|
|
|
|
|
|
|
||||||||
Lease operating and gas gathering |
|
$ |
8,929 |
|
|
$ |
6,490 |
|
|
$ |
16,638 |
|
|
$ |
11,074 |
|
Production and ad valorem taxes |
|
2,818 |
|
|
2,761 |
|
|
5,109 |
|
|
4,927 |
|
||||
Depreciation, depletion and amortization |
|
21,515 |
|
|
20,737 |
|
|
39,486 |
|
|
36,162 |
|
||||
General and administrative (1) |
|
3,841 |
|
|
5,305 |
|
|
8,221 |
|
|
8,724 |
|
||||
Interest expense (2) |
|
10,778 |
|
|
9,298 |
|
|
21,434 |
|
|
18,555 |
|
||||
Operating and other expenses per BOE |
|
|
|
|
|
|
|
|
||||||||
Lease operating and gas gathering |
|
$ |
7.20 |
|
|
$ |
6.40 |
|
|
$ |
7.35 |
|
|
$ |
6.46 |
|
Production and ad valorem taxes |
|
2.27 |
|
|
2.72 |
|
|
2.26 |
|
|
2.88 |
|
||||
Depreciation, depletion and amortization |
|
17.35 |
|
|
20.46 |
|
|
17.44 |
|
|
21.10 |
|
||||
General and administrative |
|
3.10 |
|
|
5.23 |
|
|
3.63 |
|
|
5.09 |
|
||||
Interest expense |
|
8.69 |
|
|
9.17 |
|
|
9.47 |
|
|
10.83 |
|
(1) |
General and administrative expenses include stock-based compensation |
|
(2) |
Interest expense includes amortization of debt issuance cost, premiums, and discounts |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190805005606/en/
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