HOUSTON, Aug. 14, 2017 /PRNewswire/ -- Yuma Energy,
Inc. (NYSE American: YUMA) (the "Company" or "Yuma") today
announced its financial results for the quarter ended June 30, 2017.
Second Quarter 2017 Highlights
- Net average production was 2,553 Boe/d for the second quarter
of 2017, a 39.1 percent increase over the second quarter of
2016.
- Cash provided by operations was $2,889,407 for the six months ended June 30, 2017, compared to cash used in
operations of $2,442,876 in the same
period in 2016.
- The Company sold non-core properties in Brazos County, Texas for $5.5 million (prior to purchase price
adjustments) and reduced its debt by $7.5
million from $39.5 million at
the end of the first quarter of 2017 to $32.0 million at the end of the second quarter of
2017.
- The Company increased its Permian Basin acreage position to
2,491 acres (2,180 net acres) in Yoakum
County, Texas to horizontally develop the San Andres Oil
Play. This acreage is within the Area of Mutual Interest ("AMI")
covering approximately 33,280 acres that was established as part of
a joint development agreement entered into earlier this year with
two privately held energy firms. Yuma is the operator of the
acreage with an 87.5 percent working interest and intends to spud
its first joint venture well in 2017, as well as continue to
acquire additional acreage within the AMI.
Recent Developments
- Yuma spud the Weyerhaeuser 14-1 well in Livingston Parish,
which is referred to as the Glacier Prospect, on July 29, 2017. Drilling is currently at 13,058
feet, with total depth projected to be 15,098 feet, which the
Company intends to reach before the end of August.
Management Comments
Sam L. Banks, CEO of Yuma Energy,
Inc., commented, "During the second quarter we were able to
increase our acreage position in the Permian Basin at very
attractive prices and look forward to continuing to expand our
position in the San Andres horizontal play and spudding our first
well there in 2017. In addition, we are excited about our
recently spudded well in our Glacier Prospect. We believe our
business strategy of generating organic opportunities through the
drill bit and increasing our exposure to the Permian Basin will
lead to significant shareholder value over time. As can be
seen in our first and second quarter results, the merger with Davis
has improved our cash flows and financial position and
significantly increased 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 and six month periods ended June
30, 2017 and 2016, and the average sales price per unit
sold.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Production
volumes:
|
|
|
|
|
|
|
|
|
Crude oil and
condensate (Bbls)
|
66,242
|
|
39,297
|
|
142,640
|
|
74,015
|
|
Natural gas
(Mcf)
|
786,111
|
|
646,020
|
|
1,685,538
|
|
1,046,385
|
|
Natural gas
liquids (Bbls)
|
35,092
|
|
20,117
|
|
68,566
|
|
50,379
|
|
Total (Boe) (1)
|
232,353
|
|
167,084
|
|
492,129
|
|
298,792
|
|
Average prices
realized:
|
|
|
|
|
|
|
|
|
Crude
oil and condensate (per Bbl)
|
$47.14
|
|
$44.07
|
|
$48.65
|
|
$37.45
|
|
Natural
gas (per Mcf)
|
$3.29
|
|
$1.95
|
|
$3.05
|
|
$1.96
|
|
Natural
gas liquids (per Bbl)
|
$24.05
|
|
$17.87
|
|
$23.61
|
|
$14.16
|
|
|
(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 and six month periods ended June 30,
2017 and 2016.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Sales of natural gas
and crude oil:
|
|
|
|
|
|
|
|
|
Crude oil and
condensate
|
$
3,122,848
|
|
$
1,731,952
|
|
$
6,938,780
|
|
$2,771,640
|
|
Natural
gas
|
2,587,968
|
|
1,260,500
|
|
5,141,410
|
|
2,046,110
|
|
Natural gas
liquids
|
843,888
|
|
359,504
|
|
1,618,938
|
|
713,138
|
|
Total revenues
|
$
6,554,704
|
|
$
3,351,956
|
|
$
13,699,128
|
|
$5,530,888
|
Expenses
The Company's lease operating expenses ("LOE") and LOE per Boe
for the three and six month periods ended June 30, 2017 and 2016, are set forth below:
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Lease operating
expenses
|
$
1,844,896
|
|
$
597,966
|
|
$
3,542,804
|
|
$
1,227,954
|
|
Severance, ad valorem
taxes and
|
|
|
|
|
|
|
|
|
marketing
|
1,214,228
|
|
493,113
|
|
2,177,584
|
|
849,822
|
|
Total LOE
|
$
3,059,124
|
|
$
1,091,079
|
|
$
5,720,388
|
|
$
2,077,776
|
|
|
|
|
|
|
|
|
|
LOE per
Boe
|
$13.17
|
|
$6.53
|
|
$11.62
|
|
$6.95
|
|
LOE per Boe without
severance,
|
|
|
|
|
|
|
|
|
ad valorem taxes and
marketing
|
$7.94
|
|
$3.58
|
|
$7.20
|
|
$4.11
|
Commodity Derivative Instruments
Commodity derivative instruments open as of June 30, 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
|
1,098,912
|
|
1,725,133
|
|
373,906
|
|
Price
|
$3.13
|
|
$3.00
|
|
$3.00
|
|
|
|
|
|
|
|
3-way
collars
|
|
|
|
|
|
|
Volume
|
85,806
|
|
-
|
|
-
|
|
Ceiling sold
price (call)
|
$3.39
|
|
-
|
|
-
|
|
Floor
purchased price (put)
|
$3.03
|
|
-
|
|
-
|
|
Floor sold
price (short put)
|
$2.47
|
|
-
|
|
-
|
|
|
|
|
|
|
|
CRUDE OIL
(Bbls):
|
|
|
|
|
|
|
Swaps
|
|
|
|
|
|
|
Volume
|
67,191
|
|
195,152
|
|
156,320
|
|
Price
|
$52.24
|
|
$53.17
|
|
$53.77
|
|
|
|
|
|
|
|
3-way
collars
|
|
|
|
|
|
|
Volume
|
54,289
|
|
-
|
|
-
|
|
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 acquiring, developing and exploring for
conventional and unconventional oil and natural gas
resources. Historically, the Company's operations have
focused on onshore properties located in central and southern
Louisiana and southeastern
Texas where it has a long history
of exploration and development activity, and more recently, the
Company has entered the Permian Basin. In addition, the
Company has non-operated positions in the East Texas Woodbine and
the Bakken Shale in North Dakota,
and operated positions in Kern County, California. Its common
stock is listed on the NYSE American under the trading symbol
"YUMA."
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 Securities and Exchange Commission 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)
|
|
|
June
30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
Cash and cash
equivalents
|
$
543,095
|
|
$
3,625,686
|
|
Accounts receivable,
net of allowance for doubtful accounts:
|
|
|
|
|
Trade
|
4,330,227
|
|
4,827,798
|
|
Officers
and employees
|
42,955
|
|
68,014
|
|
Other
|
1,851,776
|
|
1,757,337
|
|
Commodity derivative
instruments
|
1,506,706
|
|
-
|
|
Prepayments
|
541,965
|
|
1,063,418
|
|
Other deferred
charges
|
330,022
|
|
284,305
|
|
|
|
|
|
Total current
assets
|
9,146,746
|
|
11,626,558
|
|
|
|
|
|
OIL AND GAS
PROPERTIES (full cost method):
|
|
|
|
|
Proved
properties
|
486,055,239
|
|
488,723,905
|
|
Unproved properties -
not subject to amortization
|
5,585,387
|
|
3,656,989
|
|
|
|
|
|
491,640,626
|
|
492,380,894
|
|
Less:
accumulated depreciation, depletion and amortization
|
(416,195,279)
|
|
(410,440,433)
|
|
|
|
|
|
Net oil and gas
properties
|
75,445,347
|
|
81,940,461
|
|
|
|
|
|
OTHER PROPERTY AND
EQUIPMENT:
|
|
|
|
|
Land, buildings and
improvements
|
1,600,000
|
|
1,600,000
|
|
Other property and
equipment
|
2,842,140
|
|
7,136,530
|
|
4,442,140
|
|
8,736,530
|
|
Less: accumulated
depreciation and amortization
|
(1,329,082)
|
|
(5,349,145)
|
|
|
|
|
|
Net other property
and equipment
|
3,113,058
|
|
3,387,385
|
|
|
|
|
|
OTHER ASSETS AND
DEFERRED CHARGES:
|
|
|
|
|
Commodity derivative
instruments
|
1,081,480
|
|
-
|
|
Deposits
|
467,592
|
|
467,306
|
|
Other noncurrent
assets
|
435,810
|
|
517,201
|
|
|
|
|
|
Total other assets
and deferred charges
|
1,984,882
|
|
984,507
|
|
|
|
|
|
TOTAL
ASSETS
|
$
89,690,033
|
|
$
97,938,911
|
|
Yuma Energy,
Inc.
CONSOLIDATED BALANCE
SHEETS – CONTINUED
(Unaudited)
|
|
|
June
30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
Current maturities of
debt
|
$
86,558
|
|
$
599,341
|
|
Accounts payable,
principally trade
|
10,782,653
|
|
11,009,631
|
|
Commodity derivative
instruments
|
-
|
|
1,340,451
|
|
Asset retirement
obligations
|
388,643
|
|
376,735
|
|
Other accrued
liabilities
|
2,449,304
|
|
2,572,680
|
|
|
|
|
|
Total current
liabilities
|
13,707,158
|
|
15,898,838
|
|
|
|
|
|
LONG-TERM
DEBT
|
32,000,000
|
|
39,500,000
|
|
|
|
|
|
OTHER NONCURRENT
LIABILITIES:
|
|
|
|
|
Asset retirement
obligations
|
9,639,787
|
|
9,819,648
|
|
Commodity derivative
instruments
|
-
|
|
1,215,551
|
|
Employee stock
awards
|
30,430
|
|
-
|
|
|
|
|
|
Total other
noncurrent liabilities
|
9,670,217
|
|
11,035,199
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES (Note 14)
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Series D convertible
preferred stock
|
|
|
|
|
($0.001 par value,
7,000,000 authorized, 1,838,927 issued as of June 30,
2017
|
|
|
|
|
and 1,776,718 issued
as of December 31, 2016, $11.07 per share liquidation
|
|
|
|
|
preference)
|
1,839
|
|
1,777
|
|
Common
stock
|
|
|
|
|
($0.001 par value,
100 million shares authorized, 12,558,891 issued as of
|
|
|
|
|
June 30, 2017 and
12,201,884 issued as of December 31, 2016)
|
12,559
|
|
12,202
|
|
Additional paid-in
capital
|
44,958,379
|
|
43,877,563
|
|
Treasury stock at
cost (11,900 shares as of June 30, 2017 and -0- shares
as
|
|
|
|
|
of December 31,
2016)
|
(23,270)
|
|
-
|
|
Accumulated earnings
(deficit)
|
(10,636,849)
|
|
(12,386,668)
|
|
|
|
|
|
Total
equity
|
34,312,658
|
|
31,504,874
|
|
|
|
|
|
TOTAL LIABILITIES AND
EQUITY
|
$
89,690,033
|
|
$
97,938,911
|
|
|
|
|
|
Yuma Energy,
Inc.
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
Sales of natural gas
and crude oil
|
$
6,554,704
|
|
$
3,351,956
|
|
$
13,699,128
|
|
$
5,530,888
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
Lease operating and
production costs
|
3,059,124
|
|
1,091,079
|
|
5,720,388
|
|
2,077,776
|
|
General and
administrative – stock-based
|
|
|
|
|
|
|
|
|
compensation
|
385,097
|
|
1,087,471
|
|
436,832
|
|
1,284,395
|
|
General and
administrative – other
|
1,906,629
|
|
4,270,733
|
|
4,082,631
|
|
6,436,247
|
|
Depreciation,
depletion and amortization
|
2,763,444
|
|
2,044,105
|
|
5,904,384
|
|
3,832,330
|
|
Asset retirement
obligation accretion expense
|
141,454
|
|
55,016
|
|
280,023
|
|
107,075
|
|
Impairment of oil and
gas properties
|
-
|
|
7,700,296
|
|
-
|
|
17,548,183
|
|
Bad debt
expense
|
73,513
|
|
12,562
|
|
73,513
|
|
15,750
|
|
Total
expenses
|
8,329,261
|
|
16,261,262
|
|
16,497,771
|
|
31,301,756
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
(1,774,557)
|
|
(12,909,306)
|
|
(2,798,643)
|
|
(25,770,868)
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE):
|
|
|
|
|
|
|
|
|
Net gains (losses)
from commodity derivatives
|
2,138,080
|
|
(745,652)
|
|
5,694,863
|
|
(289,338)
|
|
Interest
expense
|
(482,285)
|
|
(71,130)
|
|
(978,376)
|
|
(113,838)
|
|
Gain (loss) on other
property and equipment
|
(70,874)
|
|
-
|
|
484,768
|
|
-
|
|
Other, net
|
5,659
|
|
13,465
|
|
42,067
|
|
13,465
|
|
Total other
income (expense)
|
1,590,580
|
|
(803,317)
|
|
5,243,322
|
|
(389,711)
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
(183,977)
|
|
(13,712,623)
|
|
2,444,679
|
|
(26,160,579)
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(20,581)
|
|
(29,371)
|
|
5,950
|
|
(26,769)
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
(163,396)
|
|
(13,683,252)
|
|
2,438,729
|
|
(26,133,810)
|
|
|
|
|
|
|
|
|
|
PREFERRED
STOCK:
|
|
|
|
|
|
|
|
|
Dividends paid in
kind
|
349,300
|
|
325,869
|
|
688,910
|
|
646,148
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO
|
|
|
|
|
|
|
|
|
COMMON
STOCKHOLDERS
|
$
(512,696)
|
|
$
(14,009,121)
|
|
$
1,749,819
|
|
$
(26,779,958)
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
($0.04)
|
|
($1.88)
|
|
$0.14
|
|
($3.60)
|
|
Diluted
|
($0.04)
|
|
($1.88)
|
|
$0.14
|
|
($3.60)
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF
|
|
|
|
|
|
|
|
|
COMMON SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
12,235,286
|
|
7,442,381
|
|
12,223,337
|
|
7,448,222
|
|
Diluted
|
12,235,286
|
|
7,442,381
|
|
12,407,996
|
|
7,448,222
|
|
Yuma Energy,
Inc.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Reconciliation of net
income (loss) to net cash provided by (used in)
|
|
|
|
|
operating
activities:
|
|
|
|
|
Net income
(loss)
|
$
2,438,729
|
|
$
(26,133,810)
|
|
Depreciation,
depletion and amortization of property and equipment
|
5,904,384
|
|
3,832,330
|
|
Impairment of
oil and gas properties
|
-
|
|
17,548,183
|
|
Amortization
of debt issuance costs
|
172,826
|
|
-
|
|
Net deferred
income tax benefit
|
-
|
|
(26,769)
|
|
Stock-based
compensation expense
|
436,832
|
|
1,284,395
|
|
Settlement of
asset retirement obligations
|
(227,346)
|
|
(17,890)
|
|
Accretion of
asset retirement obligation
|
280,023
|
|
107,075
|
|
Bad debt
expense
|
73,513
|
|
15,750
|
|
Net (gains)
losses from commodity derivatives
|
(5,694,863)
|
|
289,338
|
|
Gain on sales
of fixed assets
|
(556,141)
|
|
-
|
|
Loss on
write-off of abandoned facilities
|
71,373
|
|
-
|
|
Gain on
write-off of liabilities net of assets
|
(34,835)
|
|
-
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Decrease in
accounts receivable
|
426,945
|
|
1,273,576
|
|
(Increase)
decrease in prepaids, deposits and other assets
|
521,167
|
|
269,522
|
|
(Decrease)
increase in accounts payable and other current and
|
|
|
|
|
non-current liabilities
|
(923,200)
|
|
(884,576)
|
|
|
|
|
|
NET CASH PROVIDED BY
(USED IN) OPERATING ACTIVITIES
|
2,889,407
|
|
(2,442,876)
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital expenditures
for oil and gas properties
|
(4,526,587)
|
|
(8,858,743)
|
|
Proceeds from sale of
oil and gas properties
|
5,400,563
|
|
-
|
|
Proceeds from sale of
other fixed assets
|
641,556
|
|
-
|
|
Derivative
settlements
|
550,675
|
|
1,059,900
|
|
|
|
|
|
NET CASH PROVIDED BY
(USED IN) INVESTING ACTIVITIES
|
2,066,207
|
|
(7,798,843)
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Proceeds from
borrowings
|
-
|
|
9,000,000
|
|
Net repayments on the
senior credit facility
|
(7,500,000)
|
|
-
|
|
Repayments of
borrowings - insurance financing
|
(512,783)
|
|
-
|
|
Debt issuance
costs
|
(2,152)
|
|
-
|
|
Treasury stock
repurchases
|
(23,270)
|
|
(389,740)
|
|
|
|
|
|
NET CASH PROVIDED BY
(USED IN) FINANCING ACTIVITIES
|
(8,038,205)
|
|
8,610,260
|
|
|
|
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(3,082,591)
|
|
(1,631,459)
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
3,625,686
|
|
4,064,094
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
$
543,095
|
|
$
2,432,635
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
Interest payments
(net of interest capitalized)
|
$
811,042
|
|
$
113,838
|
|
Income tax
payments
|
$
-
|
|
$
-
|
|
Supplemental
disclosure of significant non-cash activity:
|
|
|
|
|
(Increase) decrease
in capital expenditures financed by accounts payable
|
$
(386,337)
|
|
$
441,393
|
View original
content:http://www.prnewswire.com/news-releases/yuma-energy-inc-announces-second-quarter-2017-financial-results-300504053.html
SOURCE Yuma Energy, Inc.