Chaparral Energy, Inc. (NYSE: CHAP) announced today its third
quarter 2019 financial and operational results. The company will
hold its quarterly earnings call Tuesday, November 12, at 9 a.m.
Central.
Recent Highlights
- Achieved third quarter 2019 total
production of 26.2 thousand barrels of oil equivalent per day
(MBoe/d) and STACK production of 21.5 MBoe/d, despite ethane
rejection elections which lowered production by 0.5 MBoe/d, both
within the guidance range and a 23% and 37% increase from the third
quarter of 2018, respectively
- Reported net loss of $130.9 million
for the third quarter of 2019, or $2.86 per share, primarily driven
by a $147.7 million non-cash ceiling test impairment; adjusted net
income, as defined below, of $1.2 million, or $0.03 per share
- Generated third quarter 2019
adjusted EBITDA, as defined below, of $35.8 million, an increase of
4% compared to the previous year despite oil (WTI) prices and
natural gas liquids (NGLs) realizations decreasing approximately
19% and 52% over the same time period
- Proactively reduced operated rig
count from three to two rigs in October
- Optimizing a one to two rig program
in 2020 that will significantly reduce capital spend year over
year, while growing production and allowing the company to become
cash flow neutral
- Decreased full year 2019 capex
guidance to $260 to $280 million from $275 to $300 million, while
maintaining full year production guidance at 25.0 to 27.0
MBoe/d
- Reduced $18.1 million of debt
through the sale of the corporate headquarters facilities and
elimination of CO2 compressor leases
“We continue to demonstrate the considerable value of our
differentiated operational execution and strong year-to-date
performance and are proud to deliver operational results within or
above our guidances ranges yet again,” said Chief Executive Officer
Earl Reynolds. “As we have discussed in the past, the overall
timing of our production growth will be uneven from quarter to
quarter due to spacing tests, the drilling of larger pads and
timing of completions within a quarter. As such, as expected our
third quarter total production declined compared to the second
quarter, to 26.2 MBoe/d. While we had 13 wells come online in the
third quarter, nearly half were in September and three occurred in
the last two days of the quarter. This timing of completions will
positively impact our fourth quarter production, and through early
November, our total production has averaged above 28.0 MBoe/d. We
have taken proactive steps to reduce our absolute and per Boe lease
operating costs (LOE) and we have reduced our general and
administrative (G&A) spend by about 25%. In addition, we have
been able to reduce our average well cost by approximately 15% to
20% compared to 2018 for our Merge Miss and Osage drilling program.
Increased operational efficiencies allow us to drill and complete
wells faster, drive down costs and reduce cycle times, which all
positively impact well economics. We continue to learn from our
drilling, completion and production spacing test results and apply
those learnings to our future development program.”
“As we concentrate our efforts on accelerating our timeline to
cash flow neutrality, we proactively reduced our rig count from
three to two rigs in October which allowed us to further reduce our
2019 capital guidance to $260 to $280 million and will result in a
significant reduction to our 2020 capital program. We are
reaffirming our original full-year 2019 production estimates and
continue to take measures to reduce costs across our entire
business,” said Reynolds. “We expect to enter 2020 with two rigs
running and continue to refine and optimize our development plans
for next year, assuming one to two rigs, as we are dedicated to
achieving cash flow neutrality in 2020. We are proud of the
differentiated STACK/Merge operational execution and remain
focused, as ever, on cost management and capital discipline.”
Operational Update Chaparral’s STACK production
for the third quarter of 2019 was 21.5 MBoe/d, while total company
production was 26.2 MBoe/d, both of which were within the company’s
third quarter 2019 guidance range. As expected, due to timing
associated with production from the company’s multi-well spacing
tests, total company and STACK production decreased on a
quarter-over-quarter basis by 7% and 10%, respectively. On a
year-over-year basis, STACK production increased 37%, while total
company production increased 27%, excluding 2018 divestitures.
Overall, total company production consisted of 31% oil, 29% natural
gas liquids (NGLs) and 40% natural gas in the third quarter of
2019.
Production continues to be variable from quarter to quarter
primarily due to pad drilling and timing of completions. In the
third quarter, the company had 13 new gross operated STACK wells
with first sales, nine of which were brought online in September
with three of these wells with first sales in the last two days of
the quarter. This is a significant reduction from the 28 wells with
first sales in the second quarter of 2019. Also impacting third
quarter production was ethane rejection elections accounting for
approximately 500 Boe/d. Of the 13 wells with first sales in the
third quarter, nine were in Kingfisher County and four in Canadian
County. Chaparral plans to operate two rigs for the remainder of
2019 and one to two rigs in 2020, with all operated activity
currently projected to be allocated to Canadian and Kingfisher
counties.
The company continues to see overall strong results from its
spacing test program. These tests are geologically driven, with
some tests performing better than others. Given the performance of
Merge spacing results, the company is planning another Meramec full
section development in Canadian County, with the drilling of the
six-well Greenback project in the fourth quarter as it continues
testing the number of wells per section to optimize long-term, full
section development. The growth trajectory of Chaparral’s
STACK/Merge production will continue to be impacted by the number
of operated rigs running and spacing tests moving forward, with
production dependent on how many wells are completed and brought
online in any given quarter.
Chaparral’s total oil and natural gas CAPEX during the third
quarter was $66.3 million, of which $60.2 million was associated
with the STACK. Of its STACK CAPEX, $55.9 million was related to
D&C activities, which included $1.6 million of non-operated
CAPEX. Additionally, $1.9 million was invested in acquisition
activities and $2.4 million in workovers and other enhancement
capital.
CAPEX (in millions) |
Q3 2019 |
STACK Acquisitions |
$1.9 |
STACK D&C1 |
$55.9 |
STACK Enhancements |
$2.4 |
Total STACK |
$60.2 |
Other Enhancements |
$1.2 |
Corporate Allocations2 |
$4.9 |
Total CAPEX |
$66.3 |
1Includes non-operated costs of $1.6 million and
$0.5 million of drilling joint venture 2Includes
capitalized G&A, capitalized interest and asset retirement
obligations
Updated 2019 Guidance Chaparral expects CAPEX
in the fourth quarter of 2019 to be significantly lower than the
first nine months of 2019, due to the reduction to two operated
rigs, increased drilling and completion efficiencies per well,
lower-than-anticipated non-operated activity, and lower acquisition
capital. The company is reducing full year 2019 CAPEX guidance to
$260 to $280 million, which is a reduction from the midpoint of the
original 2019 guidance of approximately 6%.
The company is also re-affirming its original production
guidance range of 25.0 to 27.0 MBoe/d for the full year 2019,
despite the reduction in total CAPEX. Chaparral expects fourth
quarter 2019 total company production to be between 27.5 and 29.0
MBoe/d and total STACK production to between 23.0 and 24.5
MBoe/d.
Full Year 2019 Guidance |
Updated 2019E |
Original 2019E |
Total CAPEX (in millions) |
$260 - $280 |
$275 - $300 |
LOE/Boe |
$4.90 - $5.40 |
$5.00 - $5.50 |
STACK LOE/Boe |
$3.60 - $4.10 |
$3.75 - $4.25 |
Cash G&A/Boe |
$2.50 - $3.00 |
$2.85 - $3.35 |
Total Company Production
(MBoe/d) |
25.0 - 27.0 |
25.0 - 27.0 |
STACK Production (MBoe/d) |
21.0 - 23.0 |
21.0 - 23.0 |
Financial Summary Chaparral reported a net loss
of $130.9 million, or $2.86 per share, during the third quarter of
2019. The company’s adjusted net income for the quarter was $1.2
million or $0.03 per share. The quarterly net loss included a
$147.7 million non-cash ceiling test impairment charge primarily
due to a decrease in the prices used to estimate its reserves,
partially offset by an $18.7 million non-cash gain in the fair
value of hedge derivative instruments. Chaparral’s adjusted EBITDA
for the third quarter was up 4%, or 8% when excluding 2018
divestitures, on a year-over-year basis to $35.8 million, driven by
increased production and lower operating costs, partially offset by
lower pricing. The price change on a year-over-year basis has
had a significant impact with WTI prices and NGL realizations
decreasing 19% and 52%, respectively.
Total gross commodity sales for the third quarter of 2019 were
$58.0 million, which included $40.5 million from oil, $8.8 million
from NGLs and $8.7 million from natural gas. This represents a 20%
quarter-over-quarter decrease compared to $72.5 million in the
second quarter of 2019 and a decrease of 17% year-over-year
compared to $70.1 million in the third quarter of 2018.
Chaparral’s average realized price for crude oil, excluding
derivative settlements, decreased to $54.82 per barrel in the third
quarter of 2019, down 6% from the second quarter of 2019 and down
22% from the third quarter of 2018. Chaparral’s realized NGL price
during the third quarter of 2019 was $12.57 per barrel, which
represents a 15% quarter-over-quarter decrease and a 52%
year-over-year decrease. The company’s realized natural gas price
during the third quarter of 2019 was $1.50 per thousand cubic feet
(Mcf), which represents a decrease of 18% compared to the second
quarter of 2019 and a decrease of 28% compared to the third quarter
of 2018.
Total company LOE for the third quarter of 2019 was $12.4
million, which was down by $1 million compared to the second
quarter. Total company LOE per Boe was $5.14, which was down
1% compared to $5.19 per Boe in the second quarter of 2019 and down
19% compared to $6.36 per Boe in the third quarter of 2018.
Chaparral’s STACK LOE for the third quarter of 2019 was $7.9
million which was down as compared to $8.4 million in the second
quarter. STACK LOE per Boe for the third quarter was $3.99,
which was up slightly from $3.90 in the previous quarter and down
8% from $4.34 in the third quarter of 2018. The decrease in LOE as
compared to the previous year was driven primarily by the increase
in production and reduced saltwater disposal costs, along with
efficiency improvements in the field operations. The increase
in STACK LOE per Boe as compared to the second quarter of 2019 was
driven primarily by the 10% decrease in STACK production over that
same time period.
To better align Chaparral’s G&A and overhead expenses with
current industry conditions, the company implemented a workforce
reduction in August. Since the beginning of 2019, the company
has reduced its corporate workforce by 23% and implemented cost
reduction initiatives that will result in estimated annualized
G&A savings of 20% to 25%. The full impact of these reductions
will be realized in 2020, with initial savings flowing through in
the second half of 2019. During the third quarter of 2019
Chaparral’s net G&A expense was $7.8 million, or $3.24 per Boe,
which was an increase of 7% compared to the $7.3 million in second
quarter of 2019. The increase was primarily driven by
severance charges and increases in professional fees and insurance.
Adjusted for severance charges and non-cash compensation,
Chaparral’s cash G&A expense for the quarter was $6.1 million
or $2.52 per Boe as compared to $6.5 million or $2.52 per Boe in
the second quarter of 2019.
Liquidity and Balance Sheet The company’s $325
million borrowing base was reaffirmed during its semi-annual fall
redetermination, which closed on September 27, 2019. As of
September 30, 2019, Chaparral had approximately $21.5 million in
cash and cash equivalents and $110 million drawn under its $325
million borrowing base, and no significant debt maturities due
until 2022.
During the third quarter the company took meaningful steps in
reducing a portion of its secured debt. On August 29, Chaparral
closed on the sale of the building housing its headquarters for
$11.5 million. Proceeds from the sale were used to pay off the
outstanding balance of the real-estate note of $8.2 million and
Chaparral estimates annualized savings of approximately $1 million
will be achieved. In addition, the company was successful in
eliminating $9.8 million of financing lease obligations for
compressors associated with the sale of its EOR properties in late
2017. These compressors were being subleased to the buyer of
the EOR properties and therefore Chaparral did not utilize any cash
to eliminate this debt obligation.
Earnings Call InformationChaparral will hold
its financial and operating results call on Tuesday, November 12,
at 9 a.m. Central. Interested parties may access the call toll-free
at 877-790-7727 and ask for the Chaparral Energy conference call 10
minutes prior to the start time. The conference ID number is
6995687. A live webcast of the call will also be available through
the Investor section of the company’s website. For those
who cannot listen to the live call, a recording will be available
shortly after the call’s conclusion
at chaparralenergy.com/investors.
The company has also provided an updated investor presentation
for the quarter, which along with its form 10-Q, will be available
at chaparralenergy.com/investors, as well as the Securities and
Exchange Commission’s website at sec.gov.
Statements made in this release contain “forward-looking
statements.” These statements are based on certain assumptions and
expectations made by Chaparral, which reflect management’s
experience, estimates and perception of historical trends, current
conditions, anticipated future developments, potential for reserves
and drilling, completion of current and future acquisitions and
growth, benefits of acquisitions, future competitive position and
other factors believed to be appropriate. These forward-looking
statements are subject to certain risks, trends and uncertainties
that could cause actual results to differ materially from those
projected. Among those risks, trends and uncertainties are our
ability to find oil and natural gas reserves that are economically
recoverable, the variability in targeted geological formations,
reservoir depletion, the volatility of oil and natural gas prices,
the uncertain economic conditions in the United States and
globally, the decline in the reserve values of our properties that
may result in ceiling test write-downs, our ability to replace
reserves and sustain production, our estimate of the sufficiency of
our existing capital sources, our ability to raise additional
capital to fund cash requirements for future operations, the
uncertainties involved in prospect development and property
acquisitions or dispositions and in projecting future rates of
production or future reserves, the timing of development
expenditures and drilling of wells, the impact of natural disasters
on our present and future operations, the impact of government
regulation and the operating hazards attendant to the oil and
natural gas business. Initial production (IP) rates are discreet
data points in each well’s productive history. These rates are
sometimes actual rates and sometimes extrapolated or normalized
rates. As such, the rates for a particular well may decline over
time and change as additional data becomes available. Peak
production rates are not necessarily indicative or predictive of
future production rates or economic rates of return from such wells
and should not be relied upon for such purpose. The ability of the
company or the relevant operator to maintain expected levels of
production from a well is subject to numerous risks and
uncertainties, including those referenced and discussed above. In
addition, methodology the company and other industry participants
utilize to calculate peak IP rates may not be consistent and, as a
result, the values reported may not be directly and meaningfully
comparable. Please read “Risk Factors” in our annual reports, form
10-K, form 10-Q or other public filings. We undertake no duty to
update or revise these forward-looking statements.
About Chaparral Chaparral Energy, Inc.
(NYSE: CHAP) is an independent oil and natural gas exploration and
production company headquartered in Oklahoma City. Founded in 1988,
Chaparral is a pure-play operator focused in Oklahoma’s STACK/Merge
Play, where it has approximately 129,000 net acres primarily in
Kingfisher, Canadian and Garfield counties. The company has
approximately 218,000 net surface acres in the Mid-Continent
region. For more information, visit chaparralenergy.com.
Investor Contact Scott Pittman Chief Financial
Officer405-426-6700investor.relations@chaparralenergy.com
Chaparral Energy, Inc. and
SubsidiariesConsolidated Statements of
Operations(Unaudited)
(in thousands, except
share and per share data) |
|
Three months ended |
|
Nine months ended |
Revenues: |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30, 2018 |
|
September 30, 2019 |
|
September 30, 2018 |
Net commodity sales |
|
$ |
51,838 |
|
|
$ |
66,707 |
|
|
$ |
65,519 |
|
|
$ |
167,164 |
|
|
$ |
181,835 |
|
Sublease revenue |
|
799 |
|
|
1,198 |
|
|
1,199 |
|
|
3,195 |
|
|
3,595 |
|
Total revenues |
|
52,637 |
|
|
67,905 |
|
|
66,718 |
|
|
170,359 |
|
|
185,430 |
|
Lease operating |
|
12,372 |
|
|
13,371 |
|
|
12,493 |
|
|
38,037 |
|
|
42,045 |
|
Production taxes |
|
2,925 |
|
|
3,802 |
|
|
4,028 |
|
|
9,607 |
|
|
9,473 |
|
Depreciation, depletion and amortization |
|
28,021 |
|
|
30,282 |
|
|
22,252 |
|
|
82,018 |
|
|
63,765 |
|
Impairment of oil and gas assets |
|
147,686 |
|
|
63,593 |
|
|
— |
|
|
261,001 |
|
|
— |
|
Impairment of other assets |
|
— |
|
|
6,407 |
|
|
— |
|
|
6,407 |
|
|
— |
|
General and administrative |
|
7,809 |
|
|
7,315 |
|
|
9,021 |
|
|
23,437 |
|
|
28,718 |
|
Cost reduction initiatives |
|
— |
|
|
— |
|
|
210 |
|
|
— |
|
|
1,034 |
|
Other |
|
269 |
|
|
403 |
|
|
402 |
|
|
1,075 |
|
|
1,633 |
|
Total costs and expenses |
|
$ |
199,082 |
|
|
$ |
125,173 |
|
|
$ |
48,406 |
|
|
$ |
421,582 |
|
|
$ |
146,668 |
|
Operating (loss) income |
|
(146,445 |
) |
|
(57,268 |
) |
|
18,312 |
|
|
(251,223 |
) |
|
38,762 |
|
Non-operating income
(expense): |
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
$ |
(5,994 |
) |
|
$ |
(5,571 |
) |
|
$ |
(4,205 |
) |
|
$ |
(16,129 |
) |
|
$ |
(7,315 |
) |
Loss on extinguishment of debt |
|
(1,624 |
) |
|
— |
|
|
— |
|
|
(1,624 |
) |
|
— |
|
Derivative gains (losses) |
|
23,601 |
|
|
17,734 |
|
|
(23,677 |
) |
|
(9,681 |
) |
|
(72,464 |
) |
Gain (loss) on sale of assets |
|
141 |
|
|
491 |
|
|
(2,024 |
) |
|
631 |
|
|
(2,599 |
) |
Other (expense) income, net |
|
(84 |
) |
|
(302 |
) |
|
19 |
|
|
(372 |
) |
|
123 |
|
Net non-operating income
(expense) |
|
16,040 |
|
|
12,352 |
|
|
(29,887 |
) |
|
(27,175 |
) |
|
(82,255 |
) |
Reorganization items, net |
|
(530 |
) |
|
(313 |
) |
|
(493 |
) |
|
(1,306 |
) |
|
(2,010 |
) |
Loss before income taxes |
|
(130,935 |
) |
|
(45,229 |
) |
|
(12,068 |
) |
|
(279,704 |
) |
|
(45,503 |
) |
Income tax expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Net loss |
|
$ |
(130,935 |
) |
|
$ |
(45,229 |
) |
|
$ |
(12,068 |
) |
|
$ |
(279,704 |
) |
|
$ |
(45,503 |
) |
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
Basic for Class A and Class B |
|
$ |
(2.86 |
) |
|
$ |
(0.99 |
) |
|
$ |
(0.27 |
) |
|
$ |
(6.13 |
) |
|
$ |
(1.01 |
) |
Diluted for Class A and Class B |
|
$ |
(2.86 |
) |
|
$ |
(0.99 |
) |
|
$ |
(0.27 |
) |
|
$ |
(6.13 |
) |
|
$ |
(1.01 |
) |
Weighted average shares used to
compute earnings per share: |
|
|
|
|
|
|
|
|
|
|
Basic for Class A and Class B |
|
45,716,522 |
|
|
45,641,797 |
|
|
45,333,745 |
|
|
45,605,798 |
|
|
45,272,595 |
|
Diluted for Class A and Class B |
|
45,716,522 |
|
|
45,641,797 |
|
|
45,333,745 |
|
|
45,605,798 |
|
|
45,272,595 |
|
Chaparral Energy, Inc. and
SubsidiariesConsolidated Balance
Sheets(Unaudited)
(dollars in thousands) |
|
September 30, 2019 |
|
June 30, 2019 |
|
December 31, 2018 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
21,534 |
|
|
$ |
32,648 |
|
|
$ |
37,446 |
|
Accounts receivable, net |
|
45,145 |
|
|
52,686 |
|
|
66,087 |
|
Inventories, net |
|
3,915 |
|
|
4,142 |
|
|
4,059 |
|
Prepaid expenses |
|
2,200 |
|
|
1,774 |
|
|
2,814 |
|
Derivative instruments |
|
11,446 |
|
|
4,524 |
|
|
24,025 |
|
Total current assets |
|
84,240 |
|
|
95,774 |
|
|
134,431 |
|
Property and equipment, net |
|
14,265 |
|
|
36,265 |
|
|
43,096 |
|
Right of use assets from
operating leases |
|
5,853 |
|
|
9,005 |
|
|
— |
|
Oil and natural gas properties,
using the full cost method: |
|
|
|
|
|
|
Proved |
|
1,224,620 |
|
|
1,107,203 |
|
|
915,333 |
|
Unevaluated (excluded from the amortization base) |
|
373,761 |
|
|
426,738 |
|
|
466,616 |
|
Accumulated depreciation, depletion, amortization and
impairment |
|
(558,339 |
) |
|
(384,401 |
) |
|
(221,431 |
) |
Total oil and natural gas properties |
|
1,040,042 |
|
|
1,149,540 |
|
|
1,160,518 |
|
Derivative instruments |
|
1,111 |
|
|
221 |
|
|
2,199 |
|
Other assets |
|
393 |
|
|
411 |
|
|
425 |
|
Total assets |
|
$ |
1,145,904 |
|
|
$ |
1,291,216 |
|
|
$ |
1,340,669 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
81,269 |
|
|
$ |
73,770 |
|
|
$ |
73,779 |
|
Accrued payroll and benefits payable |
|
6,970 |
|
|
7,807 |
|
|
10,976 |
|
Accrued interest payable |
|
5,673 |
|
|
12,207 |
|
|
13,359 |
|
Revenue distribution payable |
|
16,275 |
|
|
26,825 |
|
|
26,225 |
|
Long-term debt and financing leases, classified as current |
|
586 |
|
|
11,502 |
|
|
12,371 |
|
Derivative instruments |
|
70 |
|
|
4,802 |
|
|
— |
|
Total current liabilities |
|
110,843 |
|
|
136,913 |
|
|
136,710 |
|
Long-term debt and financing
leases, less current maturities |
|
400,518 |
|
|
382,295 |
|
|
295,100 |
|
Derivative instruments |
|
3,022 |
|
|
9,196 |
|
|
1,542 |
|
Noncurrent operating lease
obligations |
|
1,239 |
|
|
2,075 |
|
|
— |
|
Deferred compensation |
|
175 |
|
|
693 |
|
|
540 |
|
Asset retirement obligations |
|
22,384 |
|
|
22,300 |
|
|
22,090 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock |
|
— |
|
|
— |
|
|
— |
|
Common stock |
|
469 |
|
|
469 |
|
|
467 |
|
Additional paid in capital |
|
978,525 |
|
|
977,611 |
|
|
974,616 |
|
Treasury stock |
|
(6,107 |
) |
|
(6,107 |
) |
|
(4,936 |
) |
Accumulated deficit |
|
(365,164 |
) |
|
(234,229 |
) |
|
(85,460 |
) |
Total stockholders' equity |
|
607,723 |
|
|
737,744 |
|
|
884,687 |
|
Total liabilities and
stockholders' equity |
|
$ |
1,145,904 |
|
|
$ |
1,291,216 |
|
|
$ |
1,340,669 |
|
Chaparral Energy, Inc. and
subsidiariesConsolidated Statements of Cash
Flows(Unaudited)
|
|
Three months ended |
|
Nine months ended |
(in thousands) |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30, 2018 |
|
September 30, 2019 |
|
September 30, 2018 |
Cash flows from operating
activities |
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(130,935 |
) |
|
$ |
(45,229 |
) |
|
$ |
(12,068 |
) |
|
$ |
(279,704 |
) |
|
$ |
(45,503 |
) |
Adjustments to reconcile net loss to net cash provided by operating
activities |
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
$ |
28,021 |
|
|
$ |
30,282 |
|
|
$ |
22,252 |
|
|
$ |
82,018 |
|
|
$ |
63,765 |
|
Derivative losses |
|
(23,601 |
) |
|
(17,734 |
) |
|
23,677 |
|
|
9,681 |
|
|
72,464 |
|
Impairment of oil and gas assets |
|
147,686 |
|
|
63,593 |
|
|
— |
|
|
261,001 |
|
|
— |
|
Impairment of other assets |
|
— |
|
|
6,407 |
|
|
— |
|
|
6,407 |
|
|
— |
|
(Gain) loss on sale of assets |
|
(141 |
) |
|
(491 |
) |
|
2,024 |
|
|
(631 |
) |
|
2,599 |
|
Other |
|
2,009 |
|
|
1,079 |
|
|
798 |
|
|
3,630 |
|
|
4,376 |
|
Change in assets and liabilities |
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
6,862 |
|
|
5,674 |
|
|
917 |
|
|
20,446 |
|
|
(6,743 |
) |
Inventories |
|
104 |
|
|
(167 |
) |
|
1,747 |
|
|
144 |
|
|
(1,415 |
) |
Prepaid expenses and other assets |
|
(410 |
) |
|
799 |
|
|
36 |
|
|
645 |
|
|
322 |
|
Accounts payable and accrued liabilities |
|
(6,296 |
) |
|
(1,700 |
) |
|
(8,162 |
) |
|
(24,685 |
) |
|
(12,383 |
) |
Revenue distribution payable |
|
(10,550 |
) |
|
6,111 |
|
|
3,652 |
|
|
(9,950 |
) |
|
10,895 |
|
Deferred compensation |
|
(318 |
) |
|
927 |
|
|
1,324 |
|
|
1,534 |
|
|
7,890 |
|
Net cash provided by operating activities |
|
$ |
12,431 |
|
|
$ |
49,551 |
|
|
$ |
36,197 |
|
|
$ |
70,536 |
|
|
$ |
96,267 |
|
Cash flows from investing
activities |
|
|
|
|
|
|
|
|
|
|
Expenditures for property, plant, and equipment and oil and natural
gas properties |
|
$ |
(56,396 |
) |
|
$ |
(82,390 |
) |
|
$ |
(76,456 |
) |
|
$ |
(202,830 |
) |
|
$ |
(252,731 |
) |
Proceeds from asset dispositions |
|
13,476 |
|
|
857 |
|
|
29,744 |
|
|
14,333 |
|
|
36,335 |
|
Proceeds (payments) from derivative instruments, net |
|
4,883 |
|
|
138 |
|
|
(6,873 |
) |
|
5,536 |
|
|
(16,642 |
) |
Net cash used in investing activities |
|
$ |
(38,037 |
) |
|
$ |
(81,395 |
) |
|
$ |
(53,585 |
) |
|
$ |
(182,961 |
) |
|
$ |
(233,038 |
) |
Cash flows from financing
activities |
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt |
|
$ |
25,000 |
|
|
$ |
55,000 |
|
|
$ |
— |
|
|
$ |
110,000 |
|
|
$ |
116,000 |
|
Repayment of long-term debt |
|
(8,339 |
) |
|
(172 |
) |
|
(163 |
) |
|
(8,682 |
) |
|
(243,554 |
) |
Proceeds from Senior Notes |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
300,000 |
|
Principal payments under financing lease obligations |
|
(557 |
) |
|
(746 |
) |
|
(674 |
) |
|
(2,002 |
) |
|
(2,003 |
) |
Payment of debt issuance costs and other financing fees |
|
— |
|
|
— |
|
|
(1,256 |
) |
|
(20 |
) |
|
(7,572 |
) |
Debt extinguishment costs |
|
(1,602 |
) |
|
— |
|
|
— |
|
|
(1,602 |
) |
|
— |
|
Cash settlements of stock based awards |
|
(10 |
) |
|
— |
|
|
— |
|
|
(10 |
) |
|
— |
|
Treasury stock purchased |
|
— |
|
|
(708 |
) |
|
— |
|
|
(1,171 |
) |
|
(4,872 |
) |
Net cash provided by financing activities |
|
$ |
14,492 |
|
|
$ |
53,374 |
|
|
$ |
(2,093 |
) |
|
$ |
96,513 |
|
|
$ |
157,999 |
|
Net (decrease) increase in cash, cash equivalents, and restricted
cash |
|
$ |
(11,114 |
) |
|
$ |
21,530 |
|
|
$ |
(19,481 |
) |
|
$ |
(15,912 |
) |
|
$ |
21,228 |
|
Cash, cash equivalents, and
restricted cash at beginning of period |
|
32,648 |
|
|
11,118 |
|
|
68,441 |
|
|
37,446 |
|
|
27,732 |
|
Cash, cash equivalents, and
restricted cash at end of period |
|
$ |
21,534 |
|
|
$ |
32,648 |
|
|
$ |
48,960 |
|
|
$ |
21,534 |
|
|
$ |
48,960 |
|
Non-GAAP Financial Measures and
Reconciliations
Adjusted EBITDA is a Non-GAAP financial measure and is described
and reconciled to net income in the table “Adjusted EBITDA
Reconciliation, NON-GAAP.”
Cash G&A is a Non-GAAP financial measure and is described
and reconciled to general and administrative expense in the table
“Cash G&A Reconciliation, NON-GAAP.”
Adjusted Net Income is a Non-GAAP financial measure and is
described and reconciled to net income in the table “Adjusted Net
Income Reconciliation, NON-GAAP.”
Adjusted EBITDA Reconciliation, Non-GAAP
|
|
Three months ended |
|
Nine months ended |
(in thousands) |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30, 2018 |
|
September 30, 2019 |
|
September 30,2018 |
Net loss |
|
$ |
(130,935 |
) |
|
$ |
(45,229 |
) |
|
$ |
(12,068 |
) |
|
$ |
(279,704 |
) |
|
$ |
(45,503 |
) |
Interest expense |
|
5,994 |
|
|
5,571 |
|
|
4,205 |
|
|
16,129 |
|
|
7,315 |
|
Depreciation, depletion, and amortization |
|
28,021 |
|
|
30,282 |
|
|
22,252 |
|
|
82,018 |
|
|
63,765 |
|
Loss on impairment of oil and gas assets |
|
147,686 |
|
|
63,593 |
|
|
— |
|
|
261,001 |
|
|
— |
|
Loss on impairment of other assets |
|
— |
|
|
6,407 |
|
|
— |
|
|
6,407 |
|
|
— |
|
Non-cash change in fair value of derivative instruments |
|
(18,718 |
) |
|
(17,596 |
) |
|
16,804 |
|
|
15,217 |
|
|
55,822 |
|
Impact of derivative repricing |
|
— |
|
|
— |
|
|
(1,698 |
) |
|
— |
|
|
(3,950 |
) |
Loss on settlement of liabilities subject to compromise |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
48 |
|
Loss on extinguishment of debt |
|
1,624 |
|
|
— |
|
|
— |
|
|
1,624 |
|
|
— |
|
Interest income |
|
(2 |
) |
|
(2 |
) |
|
(7 |
) |
|
(4 |
) |
|
(9 |
) |
Stock-based compensation expense |
|
705 |
|
|
852 |
|
|
2,304 |
|
|
2,359 |
|
|
8,598 |
|
(Gain) loss on sale of assets |
|
(141 |
) |
|
(491 |
) |
|
2,024 |
|
|
(631 |
) |
|
2,599 |
|
Restructuring, reorganization and other |
|
1,587 |
|
|
313 |
|
|
493 |
|
|
3,420 |
|
|
1,962 |
|
Adjusted EBITDA |
|
$ |
35,821 |
|
|
$ |
43,700 |
|
|
$ |
34,309 |
|
|
$ |
107,836 |
|
|
$ |
90,647 |
|
Cash G&A Reconciliation, Non-GAAP
|
|
Three months ended |
|
Nine months ended |
(in thousands) |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30,2018 |
|
September 30,2019 |
|
September 30,2018 |
General and administrative |
|
$ |
7,809 |
|
|
$ |
7,315 |
|
|
$ |
9,021 |
|
|
$ |
23,437 |
|
|
$ |
28,718 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
Stock compensation, gross |
|
873 |
|
|
1,228 |
|
|
3,112 |
|
|
3,520 |
|
|
11,027 |
|
Capitalized stock compensation |
|
(222 |
) |
|
(399 |
) |
|
(807 |
) |
|
(1,247 |
) |
|
(2,428 |
) |
Severance costs |
|
1,057 |
|
|
— |
|
|
135 |
|
|
2,115 |
|
|
135 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
Cash-settled RSUs, net |
|
(29 |
) |
|
5 |
|
|
— |
|
|
(2 |
) |
|
— |
|
Cash G&A |
|
$ |
6,072 |
|
|
$ |
6,491 |
|
|
$ |
6,581 |
|
|
$ |
19,047 |
|
|
$ |
19,984 |
|
|
|
|
|
|
|
|
|
|
|
|
Production volumes (MBoe) |
|
|
2,409 |
|
|
|
2,574 |
|
|
|
1,964 |
|
|
|
6,857 |
|
|
|
5,496 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash G&A per Boe |
|
$ |
2.52 |
|
|
$ |
2.52 |
|
|
$ |
3.35 |
|
|
$ |
2.78 |
|
|
$ |
3.64 |
|
Adjusted Net Income Reconciliation,
Non-GAAP
|
|
Three months ended |
|
Nine months ended |
(in thousands) |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30, 2018 |
|
September 30, 2019 |
|
September 30,2018 |
Net loss |
|
$ |
(130,935 |
) |
|
$ |
(45,229 |
) |
|
$ |
(12,068 |
) |
|
$ |
(279,704 |
) |
|
$ |
(45,503 |
) |
Loss on impairment of oil and gas assets |
|
147,686 |
|
|
63,593 |
|
|
— |
|
|
261,001 |
|
|
— |
|
Loss on impairment of other assets |
|
— |
|
|
6,407 |
|
|
— |
|
|
6,407 |
|
|
— |
|
Non-cash change in fair value of derivative instruments |
|
(18,718 |
) |
|
(17,596 |
) |
|
16,804 |
|
|
15,217 |
|
|
55,822 |
|
Impact of derivative repricing |
|
— |
|
|
— |
|
|
(1,698 |
) |
|
— |
|
|
(3,950 |
) |
Loss on extinguishment of debt |
|
1,624 |
|
|
— |
|
|
— |
|
|
1,624 |
|
|
— |
|
Restructuring, reorganization and other |
|
1,587 |
|
|
313 |
|
|
493 |
|
|
3,420 |
|
|
1,962 |
|
Adjusted Net Income (a) |
|
$ |
1,244 |
|
|
$ |
7,488 |
|
|
$ |
3,531 |
|
|
$ |
7,965 |
|
|
$ |
8,331 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(2.86 |
) |
|
$ |
(0.99 |
) |
|
$ |
(0.27 |
) |
|
$ |
(6.13 |
) |
|
$ |
(1.01 |
) |
Basic and diluted weighted average shares (b) |
|
45,716,522 |
|
|
45,641,797 |
|
|
45,333,745 |
|
|
45,605,798 |
|
|
45,272,595 |
|
|
|
|
|
|
|
|
|
|
|
|
Incremental dilutive shares added
to denominator for Adjusted Net Income per share (c) |
|
80,839 |
|
|
78,413 |
|
|
376,444 |
|
|
144,504 |
|
|
452,320 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income per
share: |
|
|
|
|
|
|
|
|
|
|
Basic (a/b) |
|
$ |
0.03 |
|
|
$ |
0.16 |
|
|
$ |
0.08 |
|
|
$ |
0.17 |
|
|
$ |
0.18 |
|
Diluted (a/(b+c)) |
|
$ |
0.03 |
|
|
$ |
0.16 |
|
|
$ |
0.08 |
|
|
$ |
0.17 |
|
|
$ |
0.18 |
|
Chaparral Energy (NYSE:CHAP)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Chaparral Energy (NYSE:CHAP)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024