HOUSTON, May 11, 2017 /PRNewswire/ -- Yuma Energy,
Inc. (NYSE MKT: YUMA) (the "Company" or "Yuma") today
announced its financial results for the quarter ended March 31, 2017.
First Quarter 2017 Highlights
- Net average production was 2,886 Boe/d for the first quarter of
2017, a 99.4 percent increase over the first quarter of 2016, and a
15.5 percent increase over the fourth quarter of 2016.
- Net income was $2,602,125 for the
first quarter of 2017, compared to a net loss of $12,450,558 in the first quarter of 2016.
- Cash provided by operating activities was $951,526 for the first quarter of 2017, compared
to cash used in operations of $892,311 in the first quarter of 2016.
- Lac Blanc Field, Vermillion Parish, Louisiana – During March 2017, the Company performed workover
operations on the SL 18090 #2 well re-establishing production from
the Miocene Siphonina D-1 sand (18,700 feet sand). Before the
workover the well had been shut-in. Currently, the well is
producing approximately 2.1 MMcf/d of natural gas and 40 Bbl/d of
oil (1.3 MMcf/d and 28 Bbl/d net).
- The Company recently entered into a joint development agreement
covering 33,280 acres in an area of mutual interest ("AMI") with
two private companies and it acquired an 87.5% working interest in
approximately 2,269 acres (1,985 net acres) in Yoakum County to horizontally develop the San
Andres Play in the Permian Basin of west Texas. Yuma is the
operator of the joint venture and intends to spud its first joint
venture well in 2017, as well as acquire additional acreage within
the AMI.
Management Comments
Sam L. Banks, CEO of Yuma Energy,
Inc., commented, "We are excited about our Permian Basin
acquisition and look forward to expanding our position in the San
Andres horizontal play. We are well positioned to execute our
business strategy of investing in relatively low-risk and low
capital opportunities within our existing inventory and grow
shareholder value by organically increasing our inventory in the
San Andres play. As can be seen in the first quarter results,
the merger with Davis has improved
our liquidity and financial position, and nearly doubled our
production."
Financial Results
Production
The following table presents the net quantities of oil, natural
gas and natural gas liquids produced and sold by the Company for
the three month periods ended March 31,
2017 and 2016, and the average sales price per unit
sold.
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
Production
volumes:
|
|
|
|
Crude
oil and condensate (Bbls)
|
76,397
|
|
34,718
|
Natural
gas (Mcf)
|
899,427
|
|
400,365
|
Natural
gas liquids (Bbls)
|
33,474
|
|
30,262
|
Total (Boe) (1)
|
259,776
|
|
131,708
|
Average prices
realized:
|
|
|
|
Crude
oil and condensate (per Bbl)
|
$49.95
|
|
$29.95
|
Natural
gas (per Mcf)
|
$2.84
|
|
$1.96
|
Natural
gas liquids (per Bbl)
|
$23.15
|
|
$11.69
|
|
|
|
|
(1)
|
Barrels of oil
equivalent have been calculated on the basis of six thousand cubic
feet (Mcf) of natural gas equal to one barrel of oil equivalent
(Boe).
|
Revenues
The following table presents the Company's revenues for the
three month periods ended March 31,
2017 and 2016.
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
Sales of natural gas
and crude oil:
|
|
|
|
Crude oil and
condensate
|
$
3,815,932
|
|
$
1,039,687
|
Natural
gas
|
2,553,443
|
|
785,610
|
Natural gas
liquids
|
775,049
|
|
353,635
|
Total
revenues
|
$
7,144,424
|
|
$
2,178,932
|
Expenses
The Company's lease operating expenses ("LOE") and LOE per Boe
for the three month periods ended March 31,
2017 and 2016, are set forth below:
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
Lease operating
expenses
|
$
1,697,908
|
|
$
629,988
|
Severance, ad valorem
taxes and marketing
|
963,356
|
|
356,709
|
Total LOE
|
$
2,661,264
|
|
$
986,697
|
|
|
|
|
LOE per
Boe
|
$10.24
|
|
$7.49
|
LOE per Boe without
severance, ad valorem taxes and marketing
|
$6.54
|
|
$4.78
|
Commodity Derivative Instruments
Commodity derivative instruments open as of March 31, 2017 are provided below. Natural
gas prices are NYMEX Henry Hub prices, and crude oil prices are
NYMEX West Texas Intermediate.
|
2017
|
|
2018
|
|
2019
|
|
Settlement
|
|
Settlement
|
|
Settlement
|
NATURAL GAS
(MMBtu):
|
|
|
|
|
|
Swaps
|
|
|
|
|
|
Volume
|
1,748,574
|
|
1,451,734
|
|
-
|
Price
|
$3.13
|
|
$3.00
|
|
-
|
|
|
|
|
|
|
3-way
collars
|
|
|
|
|
|
Volume
|
132,587
|
|
-
|
|
-
|
Ceiling
sold price (call)
|
$3.38
|
|
-
|
|
-
|
Floor
purchased price (put)
|
$3.02
|
|
-
|
|
-
|
Floor
sold price (short put)
|
$2.47
|
|
-
|
|
-
|
|
|
|
|
|
|
CRUDE OIL
(Bbls):
|
|
|
|
|
|
Swaps
|
|
|
|
|
|
Volume
|
105,214
|
|
195,152
|
|
156,320
|
Price
|
$52.24
|
|
$53.17
|
|
$53.77
|
|
|
|
|
|
|
3-way
collars
|
|
|
|
|
|
Volume
|
83,023
|
|
-
|
|
-
|
Ceiling
sold price (call)
|
$77.00
|
|
-
|
|
-
|
Floor
purchased price (put)
|
$60.00
|
|
-
|
|
-
|
Floor
sold price (short put)
|
$45.00
|
|
-
|
|
-
|
About Yuma Energy, Inc.
Yuma Energy, Inc., a Delaware
corporation, is an independent Houston-based exploration and production
company focused on delivering competitive returns to stockholders
by acquiring, developing and exploring for conventional and
unconventional oil and natural gas resources. We are committed to
conducting our business in a manner that protects the environment
and public health while upholding our values of integrity, trust,
and open communications in all business activities. Our
operations are currently focused on onshore properties located in
southern Louisiana, southeastern
Texas, the Permian Basin of west
Texas, and Kern and Santa
Barbara Counties in California. In addition, we have non-operated
positions in the East Texas Eagle Ford and Woodbine and the Bakken
Shale in North Dakota. Our common
stock is traded on the NYSE MKT under the trading symbol
"YUMA."
Reincorporation Merger and Davis Merger
On October 26, 2016, Yuma Energy,
Inc., a California corporation
("Yuma California"), merged with and into the Company resulting in
the reincorporation from California to Delaware (the "Reincorporation Merger"). In
connection with the Reincorporation Merger, Yuma California
converted each outstanding share of its 9.25% Series A Cumulative
Redeemable Preferred Stock (the "Yuma California Series A Preferred
Stock"), into 35 shares of its common stock (the "Yuma California
Common Stock"), and then each share of Yuma California Common Stock
was exchanged for one-twentieth of one share of common stock of the
Company (the "common stock"). Immediately after the
Reincorporation Merger on October 26,
2016, a wholly owned subsidiary of the Company merged (the
"Davis Merger") with and into Davis, in exchange for approximately 7,455,000
shares of common stock and 1,754,179 shares of Series D Convertible
preferred stock (the "Series D preferred stock"). The Series D
preferred stock had an aggregate liquidation preference of
approximately $19.4 million and a
conversion rate of $11.0741176 per
share at the closing of the Davis Merger, and will be paid
dividends in the form of additional shares of Series D preferred
stock at a rate of 7% per annum. As a result of the Davis Merger,
the former holders of Davis common
stock received approximately 61.1% of the then outstanding common
stock of the Company and thus acquired voting control. Although the
Company was the legal acquirer, for financial reporting purposes
the Davis Merger was accounted for as a reverse acquisition of the
Company by Davis.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the "Securities Act"), and Section 21E of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"). Statements that are
not strictly historical statements constitute forward-looking
statements and may often, but not always, be identified by the use
of such words such as "expects," "believes," "intends,"
"anticipates," "plans," "estimates," "potential," "possible," or
"probable" or statements that certain actions, events or results
"may," "will," "should," or "could" be taken, occur or be achieved.
The forward-looking statements include statements about future
operations, and estimates of reserve and production volumes.
Forward-looking statements are based on current expectations and
assumptions and analyses made by the Company in light of experience
and perception of historical trends, current conditions and
expected future developments, as well as other factors appropriate
under the circumstances. However, whether actual results and
developments will conform with expectations is subject to a number
of risks and uncertainties, including but not limited to: the
risks of the oil and gas industry (for example, operational risks
in exploring for, developing and producing crude oil and natural
gas); risks and uncertainties involving geology of oil and natural
gas deposits; the uncertainty of reserve estimates; revisions to
reserve estimates as a result of changes in commodity prices; the
uncertainty of estimates and projections relating to future
production, costs and expenses; potential delays or changes in
plans with respect to exploration or development projects or
capital expenditures; health, safety and environmental risks and
risks related to weather; further declines in oil and natural gas
prices; inability of management to execute its plans to meet its
goals, shortages of drilling equipment, oil field personnel and
services, unavailability of gathering systems, pipelines and
processing facilities and the possibility that government policies
may change. The Company's annual report on Form 10-K for
the year ended December 31, 2016,
recent quarterly reports on Form 10-Q, recent current reports on
Form 8-K, and other SEC filings discuss some of the important risk
factors identified that may affect its business, results of
operations, and financial condition. The Company undertakes no
obligation to revise or update publicly any forward-looking
statements, except as required by law.
Yuma Energy,
Inc.
|
|
CONSOLIDATED BALANCE
SHEETS
|
(Unaudited)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
2,927,494
|
|
$
3,625,686
|
Accounts receivable,
net of allowance for doubtful accounts:
|
|
|
|
Trade
|
5,485,155
|
|
4,827,798
|
Officers
and employees
|
60,461
|
|
68,014
|
Other
|
1,903,274
|
|
1,757,337
|
Commodity derivative
instruments
|
478,242
|
|
-
|
Prepayments
|
757,111
|
|
1,063,418
|
Other deferred
charges
|
309,789
|
|
284,305
|
|
|
|
|
Total current
assets
|
11,921,526
|
|
11,626,558
|
|
|
|
|
OIL AND GAS
PROPERTIES (full cost method):
|
|
|
|
Proved
properties
|
490,389,144
|
|
488,723,905
|
Unproved properties -
not subject to amortization
|
5,473,755
|
|
3,656,989
|
|
|
|
|
|
495,862,899
|
|
492,380,894
|
Less:
accumulated depreciation, depletion and amortization
|
(413,471,472)
|
|
(410,440,433)
|
|
|
|
|
Net oil and gas
properties
|
82,391,427
|
|
81,940,461
|
|
|
|
|
OTHER PROPERTY AND
EQUIPMENT:
|
|
|
|
Land, buildings and
improvements
|
1,600,000
|
|
1,600,000
|
Other property and
equipment
|
7,034,591
|
|
7,136,530
|
|
8,634,591
|
|
8,736,530
|
Less: accumulated
depreciation and amortization
|
(5,436,568)
|
|
(5,349,145)
|
|
|
|
|
Net other property
and equipment
|
3,198,023
|
|
3,387,385
|
|
|
|
|
OTHER ASSETS AND
DEFERRED CHARGES:
|
|
|
|
Commodity derivative
instruments
|
674,431
|
|
-
|
Deposits
|
467,592
|
|
467,306
|
Other noncurrent
assets
|
486,326
|
|
517,201
|
|
|
|
|
Total other assets
and deferred charges
|
1,628,349
|
|
984,507
|
|
|
|
|
TOTAL
ASSETS
|
$
99,139,325
|
|
$
97,938,911
|
|
|
|
|
Yuma Energy,
Inc.
|
|
CONSOLIDATED BALANCE
SHEETS – CONTINUED
|
(Unaudited)
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Current maturities of
debt
|
$
344,315
|
|
$
599,341
|
Accounts payable,
principally trade
|
11,375,720
|
|
11,009,631
|
Commodity derivative
instruments
|
250,592
|
|
1,340,451
|
Asset retirement
obligations
|
383,830
|
|
376,735
|
Other accrued
liabilities
|
3,179,182
|
|
2,572,680
|
|
|
|
|
Total current
liabilities
|
15,533,639
|
|
15,898,838
|
|
|
|
|
LONG-TERM
DEBT
|
39,500,000
|
|
39,500,000
|
|
|
|
|
OTHER NONCURRENT
LIABILITIES:
|
|
|
|
Asset retirement
obligations
|
9,951,122
|
|
9,819,648
|
Commodity derivative
instruments
|
-
|
|
1,215,551
|
|
|
|
|
Total other
noncurrent liabilities
|
9,951,122
|
|
11,035,199
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES (Note 13)
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
Preferred
stock
|
|
|
|
Series D Convertible
($.001 par value, 7,000,000 authorized, 1,807,385 issued as of
March 31, 2017 and 1,776,718 issued as of December 31,
2016)
|
1,808
|
|
1,777
|
Common
stock
|
|
|
|
($.001 par value, 100 million shares authorized,
12,211,256 issued as of March 31, 2017 and 12,201,884 issued
as of December 31, 2016)
|
12,211
|
|
12,202
|
Paid-in
capital
|
44,268,868
|
|
43,877,563
|
Treasury stock at cost
(1,109 shares as of March 31, 2017 and -0- shares
as of December 31, 2016)
|
(4,170)
|
|
-
|
Accumulated earnings
(deficit)
|
(10,124,153)
|
|
(12,386,668)
|
|
|
|
|
Total
equity
|
34,154,564
|
|
31,504,874
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
99,139,325
|
|
$
97,938,911
|
|
|
|
|
Yuma Energy,
Inc.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
|
|
|
REVENUES:
|
|
|
|
Sales of natural gas
and crude oil
|
$
7,144,424
|
|
$
2,178,932
|
|
|
|
|
EXPENSES:
|
|
|
|
Lease operating and
production costs
|
2,661,264
|
|
986,697
|
General and
administrative – stock-based compensation
|
51,735
|
|
196,924
|
General and
administrative – other
|
2,176,002
|
|
2,165,514
|
Depreciation,
depletion and amortization
|
3,140,940
|
|
1,788,225
|
Asset retirement
obligation accretion expense
|
138,569
|
|
52,059
|
Impairment of oil and
gas properties
|
-
|
|
9,847,887
|
Gain on asset
sales
|
(555,642)
|
|
-
|
Other
|
-
|
|
3,188
|
Total
expenses
|
7,612,868
|
|
15,040,494
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(468,444)
|
|
(12,861,562)
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
Net gains from
commodity derivatives
|
3,556,783
|
|
456,314
|
Interest
expense
|
(496,091)
|
|
(42,708)
|
Other, net
|
36,408
|
|
-
|
Total
other income (expense)
|
3,097,100
|
|
413,606
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
2,628,656
|
|
(12,447,956)
|
|
|
|
|
Income tax
expense
|
26,531
|
|
2,602
|
|
|
|
|
NET INCOME
(LOSS)
|
2,602,125
|
|
(12,450,558)
|
|
|
|
|
PREFERRED
STOCK:
|
|
|
|
Dividends paid in
kind
|
339,610
|
|
320,279
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON
STOCKHOLDERS
|
$
2,262,515
|
|
$
(12,770,837)
|
|
|
|
|
INCOME (LOSS) PER
COMMON SHARE:
|
|
|
|
Basic
|
$0.19
|
|
($1.71)
|
Diluted
|
$0.16
|
|
($1.71)
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
Basic
|
12,211,256
|
|
7,454,062
|
Diluted
|
14,056,170
|
|
7,454,062
|
|
|
|
|
Yuma Energy,
Inc.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Reconciliation of net
loss to net cash provided by (used in) operating
activities:
|
|
|
|
Net
loss
|
$
2,602,125
|
|
$
(12,450,558)
|
Depreciation, depletion and amortization of property and
equipment
|
3,140,940
|
|
1,788,225
|
Impairment of oil and gas properties
|
-
|
|
9,847,887
|
Amortization of debt issuance costs
|
81,843
|
|
-
|
Net
deferred income tax benefit
|
-
|
|
2,602
|
Stock-based compensation expense
|
51,735
|
|
196,924
|
Settlement of asset retirement obligations
|
-
|
|
(12,324)
|
Accretion of asset retirement obligation
|
138,569
|
|
52,059
|
Bad debt
expense
|
-
|
|
3,188
|
Net
gains from commodity derivatives
|
(3,556,783)
|
|
(456,314)
|
Gain on
sales of fixed assets
|
(555,642)
|
|
-
|
Changes in assets and
liabilities:
|
|
|
|
(Increase) decrease in accounts receivable
|
(795,740)
|
|
1,445,512
|
Decrease
in prepaids, deposits and other assets
|
306,021
|
|
232,729
|
Decrease
in accounts payable and other current and non-current liabilities
|
(461,542)
|
|
(1,542,241)
|
|
|
|
|
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES
|
951,526
|
|
(892,311)
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Capital expenditures
for oil and gas properties
|
(2,053,826)
|
|
(4,663,114)
|
Proceeds from sale of
oil and gas properties and other fixed assets
|
641,056
|
|
-
|
Derivative
settlements
|
98,700
|
|
535,488
|
|
|
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
(1,314,070)
|
|
(4,127,626)
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Proceeds from
borrowings
|
-
|
|
4,000,000
|
Repayments of
borrowings
|
(255,026)
|
|
-
|
Debt issuance
costs
|
(76,452)
|
|
-
|
Treasury stock
repurchases
|
(4,170)
|
|
-
|
|
|
|
|
NET CASH PROVIDED BY
(USED IN) FINANCING ACTIVITIES
|
(335,648)
|
|
4,000,000
|
|
|
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(698,192)
|
|
(1,019,937)
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
3,625,686
|
|
4,064,094
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
$
2,927,494
|
|
$
3,044,157
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Interest payments
(net of interest capitalized)
|
$
264,542
|
|
$
42,709
|
Income tax
payments
|
$
-
|
|
$
-
|
|
|
|
|
Supplemental
disclosure of significant non-cash activity:
|
|
|
|
(Increase) decrease
in capital expenditures financed by accounts payable
|
$
(1,434,132)
|
|
$
(1,613,607)
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/yuma-energy-inc-announces-first-quarter-2017-financial-results-300456466.html
SOURCE Yuma Energy, Inc.