CALGARY, May 14, 2015 /CNW/ - Yangarra
Resources Ltd. ("Yangarra" or the
"Company") (TSX:YGR) announces its financial and operating
results for the three months ended March 31,
2015.
First Quarter Highlights
- Earnings before interest, taxes, depletion & depreciation,
amortization and changes in commodity contracts ("EBITDA") was
$9.8 million ($0.17 per share - basic) or $5.6 million including changes in commodity
contracts ($0.10 per share -
basic).
- Oil and gas sales, after royalties, were $12.3 million with funds flow from operations of
$9.4 million ($0.16 per share - basic). This represents a
11% and a 10% decrease, respectively, from the same period in 2014
due to reductions in commodity pricing partially offset by realized
hedging.
- As previously disclosed, production was impacted by rolling
TCPL sales line shut downs with daily production averaging 2,642
boe/d for the quarter, a 6% decrease from the same period in 2014
and a 13% decrease from the fourth quarter of 2014.
- Net Income of $0.9 million
($0.02 per share - basic) or
$1.4 million before tax ($0.02 per share - basic).
- Operating costs were $7.62/boe
(including $1.28/boe of
transportation costs).
- Operating netbacks, which include the impact of commodity
contracts, were $44.00 per boe, a 3%
decrease from 2014. Field net backs, which do not include the
impact of commodity contracts were $21.05, a decrease of 66% from 2014.
- G&A costs of $2.16/boe.
- Royalties were 6% of oil and gas revenue excluding commodity
contracts and 3% of oil and gas revenue including commodity
contracts.
- Total capital expenditures were $9.2
million. The Company drilled 2 gross (2.0 net) wells
in 2015, made pre-purchases on the Duvernay south block well completion,
performed various well optimizations and equipped multiple wells
that were producing on flow-back at year-end 2014.
- Net debt, excluding the current portion of the fair value of
commodity contracts, was $59.6
million ($55.4 million
including the current portion of the fair value of commodity
contracts).
- Quarter-end net debt to annualized first quarter cash flow
ratio excluding the current portion of the fair value of commodity
contracts was 1.6 : 1 (1.5 : 1 including the current portion of the
fair value of commodity contracts).
Financial Summary
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2015
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2014
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Q1
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Q1
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Statements of
Comprehensive Income
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|
|
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Petroleum &
natural gas sales and royalty income
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$
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7,216,024
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$
|
16,008,396
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|
|
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Net income (before
tax)
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$
|
1,367,312
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$
|
1,202,068
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|
|
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Net income
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$
|
945,117
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$
|
719,450
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Net income per share
- basic
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$
|
0.02
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$
|
0.01
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Net income per share
- diluted
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$
|
0.02
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$
|
0.01
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|
|
|
|
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Statements of Cash
Flow
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|
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Funds flow from
operating activities
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$
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9,391,354
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$
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10,459,692
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Funds flow from
operating activities per share - basic
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$
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0.16
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$
|
0.21
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Funds flow from
operating activities per share - diluted
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$
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0.16
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$
|
0.21
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Cash from operating
activities
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$
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6,030,922
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$
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6,008,779
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Statements of
Financial Position
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Property and
equipment
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$
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224,745,569
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$
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171,336,343
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Total
assets
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$
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253,362,846
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$
|
195,777,835
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Working capital
deficit
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$
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55,509,271
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$
|
62,551,870
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Working capital
deficit, excluding MTM on commodity contracts
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$
|
59,625,467
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$
|
55,822,090
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Subordinated
Debt
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$
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-
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$
|
7,790,145
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Non-Current
Liabilities
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$
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27,736,084
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$
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18,246,628
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Shareholders
equity
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$
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148,966,679
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$
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97,025,179
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Weighted average
number of shares - basic
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57,755,804
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49,136,780
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Weighted average
number of shares - diluted
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58,015,914
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50,108,392
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Company Netbacks ($/boe)
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2015
|
2014
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Q1
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Q1
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Sales
price
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$
30.08
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$
62.37
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Royalty
income
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0.26
|
1.25
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Royalty
expense
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(1.68)
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(3.73)
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Production
costs
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(6.34)
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(6.49)
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Transportation
costs
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(1.28)
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(1.32)
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Field operating
netback
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21.05
|
52.07
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Commodity contract
settlement (1)
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22.95
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(6.85)
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Operating
netback
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44.00
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45.23
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G&A and other
(excludes non-cash items)
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(2.16)
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(1.30)
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Finance
expenses
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(3.92)
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(3.33)
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Cash flow
netback
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37.93
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40.60
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Depletion and
depreciation
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(13.90)
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(16.53)
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Accretion
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(0.18)
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(0.16)
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Stock-based
compensation
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(0.48)
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(1.63)
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Unrealized gain
(loss) on financial instruments
|
(17.61)
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(17.50)
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Deferred income
tax
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(1.78)
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(1.92)
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Net Income
netback
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$
3.97
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$
2.86
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(1)
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Includes $4 million
relating to the monetization of certain commodity contracts in the
three months ended March 31, 2015.
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Operations Summary
Net petroleum and natural gas production, pricing and revenue
are summarized below:
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2015
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2014
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Q1
|
Q1
|
|
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Daily production
volumes
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Natural gas
(mcf/d)
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8,717
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7,572
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Oil
(bbl/d)
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783
|
1,036
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NGL's
(bbl/d)
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363
|
413
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Royalty
income
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|
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Natural gas
(mcf/d)
|
196
|
359
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Oil
(bbl/d)
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0
|
0
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NGL's
(bbl/d)
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10
|
25
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Combined (boe/d
6:1)
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2,642
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2,796
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Revenue
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Petroleum &
natural gas sales - Gross
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$ 7,153,174
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$ 15,694,979
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Royalty
income
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62,850
|
313,417
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Commodity contract
settlement (1)
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5,457,741
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(1,723,339)
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Total
sales
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12,673,765
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14,285,057
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Royalty
expense
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(399,144)
|
(937,556)
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Petroleum &
natural gas sales - Net
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12,274,621
|
13,347,501
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Change in fair value
of contracts
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(4,188,208)
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(4,403,102)
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Total Revenue - Net
of royalties
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$ 8,086,413
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$ 8,944,399
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(1)
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Includes $4 million
relating to the monetization of certain commodity contracts in the
three months ended March 31, 2015.
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Working Capital Summary
The following table summarizes the change in working capital
during the three months ended March 31,
2015 and the year ended December
31, 2014:
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2015
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2014
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Working capital
(deficit) - beginning of period (1)
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$
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(59,766,933)
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$
|
(36,794,243)
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|
|
|
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Funds flow from
operating activities
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9,391,354
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38,325,988
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Additions to
property and equipment
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(9,240,302)
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(78,125,708)
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Additions to
E&E Assets
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-
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(1,680,941)
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Issuance of
shares
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-
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26,408,338
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Issuance
(repayment) of Subordinated Debt
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-
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(7,786,632)
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Decommissioning
costs incurred
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-
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(76,361)
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Other
Debt
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(9,586)
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(37,374)
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Working capital
(deficit) - end of period (1)
|
$
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(59,625,467)
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$
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(59,766,933)
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Subordinated Debt
Outstanding
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$
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-
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$
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-
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Total Debt
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$
|
(59,625,467)
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$
|
(59,766,933)
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|
|
|
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Current Credit
facility limit
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$
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80,000,000
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Current Subordinated
debt facility limit
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$
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10,000,000
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(1) Excludes fair value of
commodity contracts
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Capital Spending
Capital spending is summarized as follows:
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2015
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2014
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Cash
additions
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Q1
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Q1
|
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Land, acquisitions
and lease rentals
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$
|
60,502
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$
|
972,133
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Drilling and
completion
|
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6,547,532
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18,373,739
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Geological and
geophysical
|
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366,579
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|
320,227
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|
Equipment
|
|
2,261,369
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|
2,324,948
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Other asset
additions
|
|
4,320
|
|
(1,839)
|
|
$
|
9,240,302
|
$
|
21,989,208
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Exploration &
evaluation assets additions
|
$
|
-
|
$
|
-
|
Annual General Meeting of Shareholders
The Company's Annual General Meeting of Shareholders is
scheduled for 10:00 AM on
Wednesday May 27, 2015 in the
Tillyard Management Conference Centre, Main Floor, 715 5th Avenue
SW, Calgary, AB.
Disclosure Items
The Company's financial statements, notes to the financial
statements and management's discussion and analysis have been filed
on SEDAR (www.sedar.com) and are available on the Company's website
(www.yangarra.ca).
Natural gas has been converted to a barrel of oil equivalent
(Boe) using 6,000 cubic feet (6 Mcf) of natural gas equal to one
barrel of oil (6:1), unless otherwise stated. The Boe
conversion ratio of 6 Mcf to 1 Bbl is based on an energy
equivalency conversion method and does not represent a value
equivalency; therefore Boe's may be misleading if used in
isolation. References to natural gas liquids ("NGLs") in this news
release include condensate, propane, butane and ethane and one
barrel of NGLs is considered to be equivalent to one barrel of
crude oil equivalent (Boe). One ("BCF") equals one billion
cubic feet of natural gas. One ("Mmcf") equals one million
cubic feet of natural gas. Operating netbacks are calculated
as revenue from all products less operating costs.
Forward looking information
Certain information regarding Yangarra set forth in this news
release, including management's assessment of future plans,
operations and operational results may constitute forward-looking
statements under applicable securities law and necessarily involve
risks associated with oil and gas exploration, production,
marketing and transportation such as loss of market, volatility of
prices, currency fluctuations, imprecision of reserves estimates,
environmental risks, competition from other producers and ability
to access sufficient capital from internal and external
sources. As a consequence, actual results may differ
materially from those anticipated in the forward-looking
statements.
All reference to $ (funds) are in Canadian dollars.
SOURCE Yangarra Resources Ltd.