HOUSTON, May 08, 2024 (GLOBE NEWSWIRE) — Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today its operating and financial results for the first quarter of 2024.
Key Highlights
During the first quarter of 2024, the Company: Achieved average total production of 20.2 MBoepd, while successfully implementing a limited turnaround at Bairoil and completing Phase 2 of the Beta infrastructure electrification and emissions reduction projectGenerated net cash provided by operating activities of $7.7 million and a net loss of $9.4 millionDelivered Adjusted EBITDA of $24.9 millionGenerated $2.3 million of free cash flow Based on better-than-expected first quarter results and higher forecasted crude oil prices for the remainder of 2024, the Company is increasing its 2024 guidanceThe Bairoil monetization process is progressing as expectedThe Beta development program commenced in March with the drilling of the A45 well We experienced equipment issues during drilling operations that caused complications and changes to our completion plans for this wellIn order to maintain the development schedule for our remaining wells and the compliance timelines associated with our electrification project, we intend to spud our next development well this month and defer completion of the A45 well until the fourth quarter of 2024 The Company replaced its prior surety bonds and successfully negotiated new sinking fund payments, saving approximately $7 million per yearAmplify successfully renegotiated its iodine royalty contracts in Oklahoma, which is expected to increase Other Revenue in 2024 by $2 – $3 millionAs of March 31, 2024, net debt was $112 million, consisting of $115 million outstanding under the revolving credit facility and $3 million of cash and cash equivalents Net Debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.3×1
(1) Net debt as of March 31, 2024, and LTM Adjusted EBITDA as of the first quarter of 2024
Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “Amplify is off to a good start in 2024. Continued strong crude oil prices and better-than-expected first quarter results have enabled us to increase 2024 guidance.”
Mr. Willsher continued, “At Bairoil, we successfully completed a limited turnaround, which we expect will reduce downtime later in the year and benefit the ongoing monetization process. At Beta, while we have deferred the completion of the A45 well until the fourth quarter, we are encouraged by the data in the drilling logs, which supports the hydrocarbon potential of the target formation. We expect to spud our second well at Beta this month, with plans to have it online in the second quarter. In East Texas and Oklahoma, we remain focused on lowering costs, reducing production declines, and improving operational efficiencies to maximize cash flow.”
Mr. Willsher concluded, “I remain confident that the initiatives Amplify is actively pursuing this year can be transformative for the Company. We believe the Company’s potential is still not fully realized and that these initiatives, when successfully achieved, will enhance shareholder value.”
Key Financial Results
During the first quarter of 2024, the Company reported a net loss of approximately $9.4 million compared to net income of $43.6 million in the prior quarter. The decrease was primarily attributable to non-cash unrealized losses on commodity derivatives during the period.
Due to stronger crude oil prices and reduced downtime at Beta, Amplify generated $24.9 million of Adjusted EBITDA for the first quarter.
As projected, capital investment in the first quarter increased significantly compared to the prior quarter. Despite this increase, Amplify generated net cash provided by operating activities of $7.7 million and $2.3 million of free cash flow in the first quarter of 2024, which exceeded internal projections. Amplify has now generated positive free cash flow in 15 of the last 16 fiscal quarters.
First QuarterFourth Quarter$ in millions 20242023Net income (loss) ($9.4)$43.6Net cash provided by operating activities $7.7 $28.4Average daily production (MBoe/d) 20.2 20.8Total revenues excluding hedges $76.3 $79.0Adjusted EBITDA (a non-GAAP financial measure)$24.9 $25.2Total capital $19.1 $7.1Free Cash Flow (a non-GAAP financial measure)$2.3 $14.4
Revolving Credit Facility
On May 2, 2024, Amplify completed its regularly scheduled semi-annual borrowing base redetermination. The borrowing base was reaffirmed at $150 million with elected commitments of $135 million. The next regularly scheduled borrowing base redetermination is expected to occur in the fourth quarter of 2024.
As of March 31, 2024, Amplify had net debt of $112 million, consisting of $115 million outstanding under its revolving credit facility and $3 million of cash and cash equivalents. Net debt to LTM Adjusted EBITDA was 1.3x (net debt as of March 31, 2024 and 1Q24 LTM Adjusted EBITDA). First quarter net debt increased from the prior quarter due to expected changes in working capital and increased investment activity.
Corporate Production and Pricing
During the first quarter of 2024, average daily production was approximately 20.2 MBoepd. The Company added incremental oil production in the first quarter of 2024 versus the fourth quarter of 2023, despite curtailments associated with the limited turnaround at Bairoil and scheduled shut-ins at Beta related to the electrification project. Although oil production increased versus the prior quarter, natural gas production was lower quarter over quarter primarily due to third-party interruptions and higher shrinks as a result of processing more ethane. The Company’s product mix for the quarter was 43% crude oil, 18% NGLs, and 39% natural gas.
Three Months Three Months Ended Ended March 31, 2024 December 31, 2023 Production volumes – MBOE: Bairoil 293 314 Beta 281 275 Oklahoma 488 506 East Texas / North Louisiana 676 731 Eagle Ford (Non-op) 104 84 Total – MBoe 1,842 1,910 Total – MBoe/d 20.2 20.8 % – Liquids 61% 59%
Total oil, natural gas and NGL revenues for the first quarter of 2024 were approximately $75.3 million, before the impact of derivatives. The Company realized a gain on commodity derivatives of $4.3 million during the first quarter. Oil, natural gas and NGL revenues, net of realized hedges, increased $4.6 million for the first quarter compared to the prior quarter.
The following table sets forth information regarding average realized sales prices for the periods indicated:
Crude Oil ($/Bbl)NGLs ($/Bbl)Natural Gas ($/Mcf) Three Months
Ended
March 31,
2024 Three Months
Ended
December 31,
2023 Three Months
Ended
March 31,
2024 Three Months
Ended
December 31,
2023 Three Months
Ended
March 31,
2024 Three Months
Ended
December 31,
2023 Average sales price exclusive of realized
derivatives and
certain deductions
from revenue……….. $72.98 $75.31 $24.07 $23.36 $2.39 $2.49 Realized derivatives…… (1.17) (6.84) – – 1.21 0.46 Average sales price with realized
derivatives exclusive
of certain deductions
from revenue……….. $71.81 $68.47 $24.07 $23.36 $3.59 $2.95 Certain deductions from revenue………… – – (1.46) (1.47) 0.01 0.01 Average sales price inclusive of realized
derivatives and
certain deductions
from revenue……….. $71.81 $68.47 $22.61 $21.89 $3.60 $2.96
Costs and Expenses
Lease operating expenses in the first quarter of 2024 were approximately $38.3 million, or $20.78 per Boe, a $3.7 million increase compared to the prior quarter’s operating expenses, which benefited from a $1.5 million accounting adjustment at Beta. Scheduled maintenance and other routine annual expenses increased overall operating expenses in the first quarter. Consequently, operating expenses in future quarters are expected to be lower. Lease operating expenses also do not reflect $0.6 million of income generated by Magnify Energy Services.
Severance and Ad Valorem taxes in the first quarter were approximately $4.9 million, a decrease of $1.0 million compared to $5.9 million in the prior quarter. Severance and Ad Valorem taxes as a percentage of revenue were approximately 6.5% this quarter compared to 7.6% in the prior quarter.
Amplify incurred $4.8 million, or $2.59 per Boe, of gathering, processing and transportation expenses in the first quarter, compared to $5.1 million, or $2.66 per Boe, in the prior quarter.
First quarter cash G&A expenses were $7.9 million, an increase of $1.7 million from $6.2 million in the prior quarter and in-line with expectations. This increase was primarily due to year-end processes that impact various cost drivers annually in the first quarter and a one-time cost associated with the early termination of our Tulsa office lease. The Company anticipates that quarterly cash G&A expenses will be significantly lower throughout the remainder of the year.
Depreciation, depletion and amortization expense for the first quarter totaled $8.2 million, or $4.47 per Boe, compared to $7.6 million, or $4.00 per Boe, in the prior quarter.
Net interest expense was $3.5 million for the first quarter, a decrease of $0.3 million from $3.8 million in the prior quarter.
Amplify recorded current income tax expense of $1.4 million for the first quarter.
Capital Investments
Cash capital investment during the first quarter of 2024 was approximately $19.1 million. During the first quarter, the Company’s capital allocation was approximately 80% for Beta facility projects, development drilling and workovers and 8% for Bairoil facilities projects, with the remainder distributed across the Company’s other assets.
The following table details Amplify’s capital invested during the first quarter 2024:
First Quarter 2024 Capital ($ MM) Bairoil $1.5 Beta $15.7 Oklahoma $0.8 East Texas / North Louisiana $0.1 Eagle Ford (Non-op) $0.4 Magnify Energy Services $0.7 Total Capital Invested $ 19.1
The Company’s capital investments for the remainder of 2024 will be allocated to development and continued facility enhancements at Beta, high-return workovers across our assets, and non-operated projects. In the Eagle Ford, the Company is expecting to participate in 13 gross (0.7 net) new development wells and 2 gross (0.4 net) recompletion projects, while in East Texas the Company is evaluating participation in 3 gross (0.8 net) wells, all of which are non-operated development projects and will provide additional volumes and cash flow in early 2025.
Beta Development and Facility Upgrade
In the first quarter, we completed the second phase of the electrification and emissions reduction infrastructure project, which involved successfully replacing our diesel-driven injection pumps with electric pumps on the Elly platform. We are now proceeding with the third and final phase of the project, which involves installing selective catalytic reducers on our rig engines on the Ellen platform. Amplify remains on target to meet the compliance deadline in the fourth quarter of 2024, as prescribed by district air quality regulations.
With respect to the development program, the Company spud the A45 well from the Ellen platform in March and successfully reached the objective formation. Amplify’s formation logs reinforce the Company’s views that the target interval has a high oil saturation and is expected to deliver positive results. During drilling operations, Amplify experienced equipment issues, which led to drilling complications. As a result, we have altered the completion design for the well. Due to equipment availability for the revised completion and because commencement of the third phase of the electrification project is critical to achieve the project deadline, we are deferring the completion of the A45 well until the fourth quarter of 2024. We expect to spud our second development well this month, with its completion anticipated in the second quarter, and we plan to spud two additional development wells in the third quarter.
Beta Sinking Fund
In the first quarter, Amplify successfully replaced its prior surety bonds with new surety bonds from a different group of providers. As a result, the Company was able to successfully restructure its sinking fund obligations which will lower annual payments by approximately $7 million per year.
Iodine Royalty Agreements
In Oklahoma, Amplify provides produced water to a third-party for iodine extraction from the brine stream. The third-party processor has historically paid royalties to Amplify on the iodine delivered which is reflected in Other Revenue. Recently, the Company renegotiated the terms of its iodine agreements to increase future royalty payments. Amplify expects to report the impact of the increased royalty payments starting in the second quarter of 2024 and effective as of January 1, 2024.
Updated Full-Year 2024 Guidance
Based on better-than-expected first quarter results and continued strength in crude oil prices, the Company is providing updated guidance for 2024. The following guidance is subject to the cautionary statements and limitations described under the “Forward-Looking Statements” caption at the end of this press release. Amplify’s updated 2024 guidance is based on its current expectations regarding capital investment and flat commodity prices for crude oil of $78/Bbl (WTI) and natural gas of $2.25/MMBtu (Henry Hub), and on the assumption that market demand and prices for oil and natural gas will continue at levels that allow for economic production of these products. Additionally, the Company expects to invest 85% to 95% of its capital in the first three quarters of the year primarily in connection with the Beta development program.
A summary of the guidance is presented below:
Previous Guidance Updated Guidance FY 2024E FY 2024E Low High Low High Net Average Daily Production Oil (MBbls/d) 8.0 – 8.9 8.0 – 8.9 NGL (MBbls/d) 3.0 – 3.3 3.1 – 3.5 Natural Gas (MMcf/d) 47.0 – 52.5 44.0 – 50.0 Total (MBoe/d) 19.0 – 21.0 19.0 – 21.0 Commodity Price Differential / Realizations (Unhedged) Oil Differential ($ / Bbl) ($2.75)- ($3.50) ($3.00)- ($4.00) NGL Realized Price (% of WTI NYMEX) 27% – 30% 27% – 30% Natural Gas Realized Price (% of Henry Hub) 85% – 92% 88% – 94% Other Revenue Magnify Energy Services ($ MM)$2 – $4 $2 – $4 Other ($ MM) – – – $2 – $3 Total ($ MM) $2 – $4 $4 – $7 Gathering, Processing and Transportation Costs Oil ($ / Bbl) $0.70 – $0.90 $0.70 – $0.90 NGL ($ / Bbl) $2.75 – $3.75 $2.75 – $3.75 Natural Gas ($ / Mcf) $0.55 – $0.75 $0.55 – $0.75 Total ($ / Boe) $2.30 – $2.90 $2.30 – $2.90 Average Costs Lease Operating ($ / Boe)$18.50 – $20.50 $18.50 – $20.50 Taxes (% of Revenue) (1) 6.5% – 7.5% 6.5% – 7.5% Cash General and Administrative ($ / Boe) (2)(3)$3.30 – $3.80 $3.30 – $3.80 Adjusted EBITDA ($ MM) (2)(3)$90 – $110 $95 – $115 Cash Interest Expense ($ MM)$10 – $15 $10 – $15 Capital Expenditures ($ MM)$50 – $60 $50 – $60 Free Cash Flow ($ MM) (2)(3)$20 – $40 $25 – $45 (1) Includes production, ad valorem and franchise taxes
(2) Refer to “Use of Non-GAAP Financial Measures” for Amplify’s definition and use of cash G&A, Adjusted EBITDA and free cash flow, non-GAAP measures (cash income taxes, which are not included in free cash flow, are expected to range between $4 – $8 million for the year)
(3) Amplify believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require Amplify to predict the timing and likelihood of future transactions and other items that are difficult to accurately predict. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.
Hedging
The following table reflects the hedged volumes under Amplify’s commodity derivative contracts and the average fixed, floor and ceiling prices at which production is hedged for April 2024 through December 2026, as of May 8, 2024:
2024 2025 2026 Natural Gas Swaps: Average Monthly Volume (MMBtu) 716,667 675,000 416,667 Weighted Average Fixed Price ($) $3.72 $3.74 $3.76 Natural Gas Collars: Two-way collars Average Monthly Volume (MMBtu) 544,444 500,000 416,667 Weighted Average Ceiling Price ($) $4.15 $4.10 $4.15 Weighted Average Floor Price ($) $3.46 $3.50 $3.52 Oil Swaps: Average Monthly Volume (Bbls) 85,889 53,000 30,917 Weighted Average Fixed Price ($) $74.04 $70.68 $70.68 Oil Collars: Two-way collars Average Monthly Volume (Bbls) 102,000 59,500 Weighted Average Ceiling Price ($) $80.20 $80.20 Weighted Average Floor Price ($) $70.00 $70.00
Amplify posted an updated investor presentation containing additional hedging information on its website, www.amplifyenergy.com, under the Investor Relations section.
Quarterly Report on Form 10-Q
Amplify’s financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, which Amplify expects to file with the SEC on May 8, 2024.
About Amplify Energy
Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.
Conference Call
Amplify will host an investor teleconference tomorrow at 10:00 a.m. Central Time to discuss these operating and financial results. Interested parties may join the call by dialing (800) 901-2707 at least 15 minutes before the call begins and providing the Conference ID: AEC1Q24. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Conference ID: 59240315.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “may,” “will,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties and other factors that could cause the Company’s actual results or financial condition to differ materially from those expressed or implied by forward-looking statements. These include risks and uncertainties relating to, among other things: the ongoing impact of the incident that occurred off the coast of Southern California resulting from the Company’s pipeline operations at the Beta field, the Company’s evaluation and implementation of strategic alternatives; risks related to the redetermination of the borrowing base under the Company’s revolving credit facility; the Company’s ability to satisfy debt obligations; the Company’s need to make accretive acquisitions or substantial capital expenditures to maintain its declining asset base, including the existence of unanticipated liabilities or problems relating to acquired or divested business or properties; volatility in the prices for oil, natural gas and NGLs; the Company’s ability to access funds on acceptable terms, if at all, because of the terms and conditions governing the Company’s indebtedness, including financial covenants; general political and economic conditions, globally and in the jurisdictions in which we operate, including the Russian invasion of Ukraine, the Israel-Hamas war and the potential destabilizing effect such conflicts may pose for the global oil and natural gas markets and effects of inflation; and the impact of legislation and governmental regulations, including those related to climate change and hydraulic fracturing. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at https://www.amplifyenergy.com/investor-relations/sec-filings/default.aspx or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, free cash flow, net debt, and cash G&A. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities, standardized measure of discounted future net cash flows, or any other measure of financial performance calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as Amplify does.
Adjusted EBITDA. Amplify defines Adjusted EBITDA as net income or loss, plus interest expense; gain or loss on early extinguishment of debt; income tax expenses; depreciation, depletion and amortization; accretion of asset retirement obligations; gains or losses on commodity derivatives; cash settlements received or paid on expired commodity derivative instruments; amortization of gain associated with terminated commodity derivatives; acquisition and divestiture related costs; reorganization items; share-based compensation expense; exploration costs; loss on settlement of AROs; bad debt expense; and other nonrecurring items. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of Amplify’s financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies in Amplify’s industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest and support Amplify’s indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.
Free cash flow. Amplify defines free cash flow as Adjusted EBITDA, less cash interest expense and capital expenditures. Free cash flow is an important non-GAAP financial measure for Amplify’s investors since it serves as an indicator of the Company’s success in providing a cash return on investment. The GAAP measures most directly comparable to free cash flow are net income and net cash provided by operating activities.
Net debt. Amplify defines net debt as the total principal amount drawn on the revolving credit facility less cash and cash equivalents. The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company’s capital structure and financial leverage.
Cash G&A. Amplify defines cash G&A as general and administrative expense, less share-based compensation expense; acquisition and divestiture costs; bad debt expense; and severance payments. Cash G&A is an important non-GAAP financial measure for Amplify’s investors since it allows for analysis of G&A spend without regard to share-based compensation and other non-recurring expenses which can vary substantially from company to company. The GAAP measures most directly comparable to cash G&A is total G&A expenses.
Contacts
Jim Frew — Senior Vice President and Chief Financial Officer
(832) 219-9044
jim.frew@amplifyenergy.com
Michael Jordan — Director, Finance and Treasurer
(832) 219-9051
michael.jordan@amplifyenergy.com
Selected Operating and Financial Data (Tables)
Amplify Energy Corp. Selected Financial Data – Unaudited Statements of Operations Data Three Months Three Months Ended Ended (Amounts in $000s, except per share data) March 31, 2024 December 31, 2023 Revenues: Oil and natural gas sales $75,322 $78,191 Other revenues 977 794 Total revenues 76,299 78,985 Costs and Expenses: Lease operating expense 38,284 34,641 Pipeline incident loss 707 4,299 Gathering, processing and transportation 4,774 5,073 Exploration 41 17 Taxes other than income 4,911 5,908 Depreciation, depletion and amortization 8,239 7,635 General and administrative expense 9,800 8,437 Accretion of asset retirement obligations 2,061 2,029 Realized (gain) loss on commodity derivatives (4,303) 3,191 Unrealized (gain) loss on commodity derivatives 20,867 (47,905) Other, net – 315 Total costs and expenses 85,381 23,640 Operating Income (loss) (9,082) 55,345 Other Income (Expense): Interest expense, net (3,527) (3,811) Other income (expense) (95) 80 Total Other Income (Expense) (3,622) (3,731) Income (loss) before reorganization items, net and income taxes (12,704) 51,614 Income tax benefit (expense) – current (1,395) 2,298 Income tax benefit (expense) – deferred 4,703 (10,334) Net income (loss) $(9,396) $43,578 Earnings per share: Basic and diluted earnings (loss) per share $(0.24) $1.07
Selected Financial Data – Unaudited Operating Statistics Three Months Three Months Ended Ended (Amounts in $000s, except per unit data) March 31, 2024 December 31, 2023 Oil and natural gas revenue: Oil Sales $57,422 $58,883 NGL Sales 7,525 7,460 Natural Gas Sales 10,375 11,848 Total oil and natural gas sales – Unhedged$75,322 $78,191 Production volumes: Oil Sales – MBbls 786 782 NGL Sales – MBbls 333 341 Natural Gas Sales – MMcf 4,335 4,726 Total – MBoe 1,842 1,910 Total – MBoe/d 20.2 20.8 Average sales price (excluding commodity derivatives): Oil – per Bbl $72.98 $75.31 NGL – per Bbl $22.61 $21.89 Natural gas – per Mcf $2.39 $2.51 Total – per Boe $40.89 $40.93 Average unit costs per Boe: Lease operating expense $20.78 $18.14 Gathering, processing and transportation $2.59 $2.66 Taxes other than income $2.67 $3.09 General and administrative expense $5.32 $4.42 Depletion, depreciation, and amortization $4.47 $4.00
Selected Financial Data – Unaudited Asset Operating Statistics Three Months Three Months Ended Ended March 31, 2024 December 31, 2023 Production volumes – MBOE: Bairoil 293 314 Beta 281 275 Oklahoma 488 506 East Texas / North Louisiana 676 731 Eagle Ford (Non-op) 104 84 Total – MBoe 1,842 1,910 Total – MBoe/d 20.2 20.8 % – Liquids 61% 59% Lease operating expense – $M: Bairoil $14,451 $12,805 Beta 12,011 9,444 Oklahoma 4,463 4,592 East Texas / North Louisiana 5,744 6,024 Eagle Ford (Non-op) 1,615 1,776 Total Lease operating expense: $38,284 $34,641 Capital expenditures – $M: Bairoil $1,461 $(79) Beta 15,681 7,676 Oklahoma 768 524 East Texas / North Louisiana 93 (1,191) Eagle Ford (Non-op) 410 172 Magnify Energy Services 679 – Total Capital expenditures: $19,092 $7,102
Selected Financial Data – Unaudited Balance Sheet Data (Amounts in $000s) March 31, 2024 December 31, 2023 Assets Cash and Cash Equivalents $ 2,989 $ 20,746 Accounts Receivable 36,540 39,096 Other Current Assets 22,795 38,341 Total Current Assets $ 62,324 $ 98,183 Net Oil and Gas Properties $ 358,251 $ 346,741 Other Long-Term Assets 291,629 292,750 Total Assets $ 712,204 $ 737,674 Liabilities Accounts Payable $ 21,723 $ 23,616 Accrued Liabilities 36,776 50,871 Other Current Liabilities 20,809 21,944 Total Current Liabilities $ 79,308 $ 96,431 Long-Term Debt $ 115,000 $ 115,000 Asset Retirement Obligation 124,062 122,001 Other Long-Term Liabilities 12,819 13,206 Total Liabilities $ 331,189 $ 346,638 Shareholders’ Equity Common Stock & APIC $ 434,863 $ 435,488 Accumulated Earnings (Deficit) (53,848) (44,452) Total Shareholders’ Equity $ 381,015 $ 391,036
Selected Financial Data – Unaudited Statements of Cash Flows Data Three Months Three Months Ended Ended (Amounts in $000s) March 31, 2024 December 31, 2023 Net cash provided by (used in) operating activities$7,712 $28,362 Net cash provided by (used in) investing activities (23,724) (8,637) Net cash provided by (used in) financing activities (1,745) (5,366)
Selected Operating and Financial Data (Tables) Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures Adjusted EBITDA and Free Cash Flow Three Months Three Months Ended Ended (Amounts in $000s) March 31, 2024 December 31, 2023 Reconciliation of Adjusted EBITDA to Net Cash Provided from Operating Activities: Net cash provided by operating activities $7,712 $28,362 Changes in working capital 11,217 (10,961) Interest expense, net 3,527 3,811 Amortization of gain associated with terminated commodity derivatives – 658 Amortization and write-off of deferred financing fees (304) (301) Exploration costs 41 17 Acquisition and divestiture related costs 14 3 Plugging and abandonment cost – 558 Current income tax expense (benefit) 1,395 (2,298) Pipeline incident loss 707 4,299 Other 592 1,042 Adjusted EBITDA: $24,901 $25,190 Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities: Adjusted EBITDA: $24,901 $25,190 Less: Cash interest expense 3,526 3,660 Less: Capital expenditures 19,092 7,102 Free Cash Flow: $2,283 $14,428
Selected Operating and Financial Data (Tables) Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures Adjusted EBITDA and Free Cash Flow Three Months Three Months Ended Ended (Amounts in $000s) March 31, 2024 December 31, 2023 Reconciliation of Adjusted EBITDA to Net Income (Loss): Net income (loss) $(9,396) $43,578 Interest expense, net 3,527 3,811 Income tax expense (benefit) – current 1,395 (2,298) Income tax expense (benefit) – deferred (4,703) 10,334 Depreciation, depletion and amortization 8,239 7,635 Accretion of asset retirement obligations 2,061 2,029 (Gains) losses on commodity derivatives 16,564 (44,714) Cash settlements received (paid) on expired commodity derivative instruments 4,303 (3,191) Amortization of gain associated with terminated commodity derivatives – 658 Acquisition and divestiture related costs 14 3 Share-based compensation expense 1,531 1,672 Exploration costs 41 17 Loss on settlement of AROs – 315 Bad debt expense 26 – Pipeline incident loss 707 4,299 Other 592 1,042 Adjusted EBITDA: $24,901 $25,190 Reconciliation of Free Cash Flow to Net Income (Loss): Adjusted EBITDA: $24,901 $25,190 Less: Cash interest expense 3,526 3,660 Less: Capital expenditures 19,092 7,102 Free Cash Flow: $2,283 $14,428
Selected Operating and Financial Data (Tables) Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial Measures Cash General and Administrative Expenses Three Months Three Months Ended Ended (Amounts in $000s) March 31, 2024 December 31, 2023 General and administrative expense $9,800 $8,437 Less: Share-based compensation expense 1,531 1,672 Less: Acquisition and divestiture costs 14 3 Less: Bad debt expense 26 — Less: Severance payments 344 590 Total Cash General and Administrative Expense $7,885 $6,172
