CALGARY, March 7, 2019 /CNW/ – Yangarra Resources Ltd. (“Yangarra” or the “Company“) (TSX:YGR) announces its financial and operating results for the year ended December 31, 2018.
2018 Highlights
- Average Production of 9,425 boe/d an increase of 64% from 2017.
- Oil and gas sales were $134 million with funds flow from operations of $82 million ($0.97 per share – basic).
- Adjusted EBITDA (which excludes changes in derivative financial instruments) was $82 million ($0.97 per share – basic).
- Net income of $34 million ($0.40 per share – basic) or $48 million before tax.
- Operating costs were $7.13/boe (including $1.31/boe of transportation costs).
- Operating netbacks, which include the impact of commodity contracts, were $26.04 per boe.
- Operating margins were 65% and cash flow margins were 61%.
- G&A costs of $0.72/boe.
- Royalties were 10% of oil and gas revenue.
- Total capital expenditures were $151 million.
- Net debt (which excludes the current derivative financial instruments) was $155 million.
- Net Debt to funds flow from operations was 1.9 : 1
- Wells drilled in 2018 resulted in a corporate half cycle IRR of 157% and a full cycle IRR of 107%
- Proved Developed Producing reserves increased by 96%, F&D costs were $10.15/boe, the recycle ratio was 2.7 and additions replaced 434% of 2018 production.
- Total Proved reserves increased by 35%, F&D costs were $6.63/boe, the recycle ratio was 4.1 and additions replaced 672% of 2017 production.
- Proved plus Probable reserves increased by 44%, F&D costs were $4.90/boe, the recycle ratio was 5.6 and additions replaced 1,220% of 2018 production.
- Return on capital employed (“ROCE“) of 12%
- Corporate LMR is 12.2 with decommissioning liabilities of $12 million (discounted).
- The decommissioning liabilities includes 26 inactive wells, all of which are scheduled to be abandoned before the end of 2019.
Fourth Quarter Highlights
- Average production of 12,238 boe/d (58% liquids) during the quarter an increase of 19% from the third quarter of 2018 and 82% increase from the same period in 2017.
- Oil and gas sales were $30 million, an increase of 20% from the same period in 2017.
- Funds flow from operations of $17 million ($0.20 per share – basic), a decrease of 2% from the same period in 2017.
- Adjusted EBITDA (which excludes changes in derivative financial instruments) was $17 million ($0.20 per share – basic).
- Net income of $13 million ($0.16 per share – basic) or $19 million net income before tax.
- Operating costs were $6.88/boe (including $1.31/boe of transportation costs).
- Field netbacks were $16.58 per boe.
- Operating netbacks, which include the impact of commodity contracts, were $17.56 per boe.
- Operating margins were 65% and cash flow margins were 55%.
- G&A costs of $1.01/boe, which included year-end bonuses.
- Royalties were 12% of oil and gas revenue.
- Total capital expenditures were $37 million.
- Net Debt to annualized fourth quarter funds flow from operations was 2.3 : 1.
Syndicated Facility
Subsequent to December 31, 2018, the borrowing base review was completed and the maximum amount available under the syndicated credit facility was increased to $225 million.
Financial Summary
|
2018 |
2017 |
Year Ended |
|||||||||
|
Q4 |
Q3 |
Q4 |
2018 |
2017 |
|||||||
|
Statements of Comprehensive Income |
|||||||||||
|
Petroleum & natural gas sales |
$ |
30,174 |
$ |
45,132 |
$ |
25,172 |
$ |
134,978 |
$ |
77,913 |
|
|
Net income (before tax) |
$ |
18,842 |
$ |
18,302 |
$ |
6,598 |
$ |
47,795 |
$ |
27,346 |
|
|
Net income |
$ |
13,315 |
$ |
12,947 |
$ |
4,682 |
$ |
33,566 |
$ |
19,485 |
|
|
Net income per share – basic |
$ |
0.16 |
$ |
0.15 |
$ |
0.06 |
$ |
0.40 |
$ |
0.24 |
|
|
Net income per share – diluted |
$ |
0.15 |
$ |
0.15 |
$ |
0.05 |
$ |
0.39 |
$ |
0.23 |
|
|
Statements of Cash Flow |
|||||||||||
|
Funds flow from operations |
$ |
17,167 |
$ |
29,524 |
$ |
17,564 |
$ |
82,335 |
$ |
52,903 |
|
|
Funds flow from operations per share – basic |
$ |
0.20 |
$ |
0.35 |
$ |
0.22 |
$ |
0.97 |
$ |
0.66 |
|
|
Funds flow from operations per share – diluted |
$ |
0.20 |
$ |
0.34 |
$ |
0.20 |
$ |
0.95 |
$ |
0.63 |
|
|
Cash from operating activities |
$ |
25,952 |
$ |
26,539 |
$ |
20,542 |
$ |
83,768 |
$ |
51,775 |
|
|
Statements of Financial Position |
|||||||||||
|
Property and equipment |
$ |
454,772 |
$ |
426,745 |
$ |
342,100 |
$ |
454,772 |
$ |
342,100 |
|
|
Total assets |
$ |
501,974 |
$ |
479,397 |
$ |
378,231 |
$ |
501,974 |
$ |
378,231 |
|
|
Working capital deficit |
$ |
20,775 |
$ |
23,528 |
$ |
11,210 |
$ |
20,775 |
$ |
11,210 |
|
|
Net Debt (which excludes current derivative financial instruments) |
$ |
155,882 |
$ |
135,712 |
$ |
93,533 |
$ |
155,882 |
$ |
93,533 |
|
|
Non-Current Liabilities, excluding bank debt |
$ |
60,204 |
$ |
58,467 |
$ |
44,367 |
$ |
60,204 |
$ |
44,367 |
|
|
Shareholders equity |
$ |
255,336 |
$ |
239,946 |
$ |
207,957 |
$ |
255,336 |
$ |
207,957 |
|
|
Weighted average number of shares – basic |
85,340 |
85,331 |
81,302 |
84,653 |
80,720 |
||||||
|
Weighted average number of shares – diluted |
86,981 |
87,614 |
85,749 |
86,860 |
84,157 |
||||||
Company Netbacks ($/boe)
|
2018 |
2017 |
Year Ended |
|||||||||
|
Q4 |
Q3 |
Q4 |
2018 |
2017 |
|||||||
|
Sales price |
$26.80 |
$ |
47.52 |
$ |
40.71 |
$ |
39.24 |
$ |
37.19 |
||
|
Royalty expense |
(3.34) |
(4.38) |
(3.80) |
(3.90) |
(3.06) |
||||||
|
Production costs |
(5.57) |
(5.28) |
(6.49) |
(5.82) |
(6.74) |
||||||
|
Transportation costs |
(1.31) |
(1.07) |
(0.97) |
(1.31) |
(1.03) |
||||||
|
Field operating netback |
16.58 |
36.79 |
29.45 |
28.21 |
26.36 |
||||||
|
Realized gain (loss) on commodity contract settlement |
0.98 |
(3.65) |
0.93 |
(2.17) |
1.32 |
||||||
|
Operating netback |
17.56 |
33.15 |
30.39 |
26.04 |
27.68 |
||||||
|
G&A |
(1.01) |
(0.61) |
(1.44) |
(0.72) |
(0.95) |
||||||
|
Finance expenses |
(1.72) |
(1.30) |
(0.32) |
(1.45) |
(1.07) |
||||||
|
Funds flow netback |
14.83 |
31.24 |
28.63 |
23.87 |
25.66 |
||||||
|
Depletion and depreciation |
(7.61) |
(10.09) |
(9.63) |
(9.26) |
(10.47) |
||||||
|
Asset Impairment |
(0.00) |
(0.85) |
– |
(0.23) |
– |
||||||
|
Accretion |
(0.06) |
(0.06) |
(0.74) |
(0.07) |
(0.29) |
||||||
|
Stock-based compensation |
(1.37) |
(1.59) |
(0.66) |
(1.52) |
(0.72) |
||||||
|
Unrealized gain (loss) on financial instruments |
10.94 |
0.62 |
(6.92) |
1.10 |
(1.13) |
||||||
|
Deferred income tax |
(4.91) |
(5.64) |
(3.10) |
(4.14) |
(3.75) |
||||||
|
Net Income netback |
$ |
11.83 |
$ |
13.63 |
$ |
7.57 |
$ |
9.76 |
$ |
9.30 |
|
Commodity Prices
|
2018 |
2017 |
Year Ended |
|||||||||
|
Q4 |
Q3 |
Q4 |
2018 |
2017 |
|||||||
|
Realized Pricing (Including realized commodity contracts) |
|||||||||||
|
Oil ($/bbl) |
$ |
44.46 |
$ |
74.84 |
$ |
72.70 |
$ |
63.42 |
$ |
65.61 |
|
|
NGL ($/bbl) |
$ |
30.91 |
$ |
40.05 |
$ |
40.63 |
$ |
35.03 |
$ |
35.15 |
|
|
Gas ($/mcf) |
$ |
1.64 |
$ |
1.38 |
$ |
2.06 |
$ |
1.59 |
$ |
2.46 |
|
|
Realized Pricing (Excluding commodity contracts) |
|||||||||||
|
Oil ($/bbl) |
$ |
42.58 |
$ |
82.54 |
$ |
72.33 |
$ |
67.48 |
$ |
64.23 |
|
|
NGL ($/bbl) |
$ |
29.73 |
$ |
41.76 |
$ |
40.29 |
$ |
37.87 |
$ |
33.74 |
|
|
Gas ($/mcf) |
$ |
1.64 |
$ |
1.30 |
$ |
1.77 |
$ |
1.57 |
$ |
2.25 |
|
|
Oil Price Benchmarks |
|||||||||||
|
West Texas Intermediate (“WTI”) (US$/bbl) |
$ |
61.05 |
$ |
69.50 |
$ |
55.40 |
$ |
64.98 |
$ |
50.84 |
|
|
Edmonton Par (C$/bbl) |
$ |
42.71 |
$ |
81.92 |
$ |
69.30 |
$ |
69.35 |
$ |
63.20 |
|
|
Edmonton Par to WTI differential (US$/bbl) |
$ |
(28.77) |
$ |
(6.83) |
$ |
(0.04) |
$ |
(11.48) |
$ |
(2.18) |
|
|
Natural Gas Price Benchmarks |
|||||||||||
|
AECO gas (Cdn$/mcf) |
$ |
1.59 |
$ |
1.19 |
$ |
1.70 |
$ |
1.51 |
$ |
2.15 |
|
|
Foreign Exchange |
|||||||||||
|
U.S./Canadian Dollar Exchange |
0.76 |
0.77 |
0.80 |
0.77 |
0.77 |
||||||
Operations Summary
Net petroleum and natural gas production, pricing and revenue are summarized below:
|
2018 |
2017 |
Year Ended |
|||||||||
|
Q4 |
Q3 |
Q4 |
2018 |
2017 |
|||||||
|
Daily production volumes |
|||||||||||
|
Natural gas (mcf/d) |
30,573 |
24,378 |
16,782 |
22,993 |
14,901 |
||||||
|
Oil (bbl/d) |
5,111 |
4,853 |
2,687 |
4,120 |
2,295 |
||||||
|
NGL’s (bbl/d) |
2,032 |
1,406 |
1,237 |
1,473 |
962 |
||||||
|
Combined (boe/d 6:1) |
12,238 |
10,323 |
6,721 |
9,425 |
5,740 |
||||||
|
Revenue |
|||||||||||
|
Petroleum & natural gas sales – Gross |
$ |
30,174 |
$ |
45,132 |
$ |
25,172 |
$ |
134,978 |
$ |
77,913 |
|
|
Realized gain (loss) on commodity contract settlement |
1,104 |
(3,462) |
578 |
(7,449) |
2,774 |
||||||
|
Total sales |
31,278 |
41,670 |
25,750 |
127,529 |
80,687 |
||||||
|
Royalty expense |
(3,763) |
(4,157) |
(2,349) |
(13,405) |
(6,412) |
||||||
|
Total Revenue – Net of royalties |
$ |
27,516 |
$ |
37,513 |
$ |
23,401 |
$ |
114,124 |
$ |
74,275 |
|
Working Capital Summary
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