VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 9, 2016) – DXI Energy Inc. (TSX:DXI)(NYSE MKT:DXI) (“DXI” or the “Company”), an upstream oil and gas exploration and production company operating in Colorado’s Piceance Basin and the Peace River Arch region in British Columbia, today announced its financial results for the three and twelve month periods ended December 31, 2015. All share and per share amounts reflect the one-for-five share consolidation that occurred on October 30, 2015.
2015 Key Financial and Operating Highlights:
- Successfully completed and tied into production two new wells at the Company’s Woodrush property, north of Fort St. John, British Columbia;
- Completed the drilling, casing and completion of eight natural gas wells in the Company’s Kokopelli development project in Colorado. Production from the eight natural gas wells commenced in the 4th quarter of 2015. The Company has a 25% working interest in this project.
- Secured $6.5 million in bridge financing from a company controlled by a Director and Officer ($4.5 million) and from a company associated with the Director and Officer ($2.0 million). Extended the maturity date of $6.5 million bridge financing from December 31, 2015 to November 30, 2018;
- Increased oil and natural gas production by 48% to 663 BOE/d from 449 BOE/d for the comparative year ended December 31, 2014;
- Reduced operating and transportation expenses for oil operations from $27.65/BO for the year ended December 31, 2014 to $13.39/BO for the year ended December 31, 2015; and
- Reduced G&A expenses per BOE by 56% to $9.28 per BOE from $21.31 per BOE for the comparative year ended December 31, 2014.
| CORPORATE SUMMARY – THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2015 | |||||||||||||
| OPERATIONS | Three months ended December 31, | Twelve months ended December 31, | |||||||||||
| 2015 | 2014 | Change | 2015 | 2014 | Change | ||||||||
| Production | |||||||||||||
| Oil and natural gas liquids (bbls/d) | 515 | 162 | 218% | 369 | 182 | 103% | |||||||
| Natural gas (mcf/d) | 2,773 | 891 | 211% | 1,764 | 1,602 | 10% | |||||||
| Combined (BOE/d) | 977 | 310 | 215% | 663 | 449 | 48% | |||||||
| Realized sales prices (1) | |||||||||||||
| Oil and natural gas liquids ($/bbl) | 46.72 | 72.29 | -35% | 52.68 | 87.99 | -40% | |||||||
| Natural gas ($/mcf) | 2.26 | 3.87 | -42% | 2.33 | 5.45 | -57% | |||||||
| Operating expenses (2) | |||||||||||||
| Oil operations ($/bbl) | 10.62 | 32.01 | -67% | 13.39 | 27.65 | -52% | |||||||
| Natural gas operations ($/mcf) | 3.27 | 4.37 | -25% | 3.19 | 3.86 | -17% | |||||||
| Operating netback (3) | |||||||||||||
| Oil operations ($/bbl) | 26.79 | 28.93 | -7% | 29.04 | 45.57 | -36% | |||||||
| Natural gas operations ($/BOE) | -7.91 | -4.76 | 66% | -6.09 | 4.39 | -239% | |||||||
| General and administrative expenses ($/BOE) | 6.85 | 39.19 | -83% | 9.28 | 21.31 | -56% | |||||||
| Notes: | ||
| (1) | Decrease reflected lower benchmark oil and natural gas prices in Canada and the rest of the world. | |
| (2) | Decrease resulted from the allocation of fixed operating costs over a higher oil production volume. This was offset by the costs associated with the reactivation of one of the gas wells at Drake/Woodrush and higher contractual pipeline transportation costs associated with a new contract signed on November 1, 2014. | |
| (3) | Decline due to the reduction in oil and natural gas prices. | |
| FINANCIAL (CA$ thousands, except per share) | Three months ended December 31, | Twelve months ended December 31, | ||||||||||
| 2015 | 2014 | Change | 2015 | 2014 | Change | |||||||
| Revenue | 2,768 | 1,410 | 96% | 8,579 | 9,049 | -5% | ||||||
| Royalties | 517 | 196 | 164% | 1,483 | 1,488 | 0% | ||||||
| Cash flow (1) | 164 | -704 | 123% | 860 | -100 | 960% | ||||||
| Cash flow per share (basic) | 0.00 | -0.02 | 0% | 0.02 | -0.00 | 0% | ||||||
| Cash flow per share (diluted) | 0.00 | -0.02 | 0% | 0.02 | -0.00 | 0% | ||||||
| Net income (loss) | -3,827 | -3,331 | 15% | -7,108 | -7,203 | -1% | ||||||
| Basic ($/common share) | -0.10 | -0.09 | 15% | -0.19 | -0.20 | -4% | ||||||
| Diluted ($/common share) | -0.10 | -0.09 | 15% | -0.19 | -0.20 | -4% | ||||||
| Capital expenditures, net of dispositions | 1,236 | 2,371 | -48% | 5,738 | 3,834 | 50% | ||||||
| Weighted average common shares outstanding (thousands) | ||||||||||||
| Basic | 36,505 | 36,480 | 0% | 36,492 | 35,425 | 3% | ||||||
| Diluted | 36,505 | 36,480 | 0% | 36,492 | 35,425 | 3% | ||||||
| Debt, net of working capital | 10,295 | 4,480 | 130% | |||||||||
| Note: | |
| (1) | “Cash flow” is a non-GAAP measure calculated by adding back settlement of decommissioning liabilities and change in operating working capital to cash flows from (used in) operating activities. See “Non-GAAP Measure” below for details. |
| SUPPLEMENTAL FINANCIAL INFORMATION – NON-GAAP MEASURE | ||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||
| (CA$ thousands) | 2015 | 2014 | 2015 | 2014 | ||||
| Cash flows from (used in) operating activities | 371 | (126) | 1,064 | (581) | ||||
| Change in operating working capital | (207) | (578) | (204) | 481 | ||||
| Cash flow | 164 | (704) | 860 | (100) | ||||
About DXI ENERGY INC.
DXI Energy Inc. is an upstream oil and natural gas exploration and production company operating projects in Colorado’s Piceance Basin (39,352 net acres) and the Peace River Arch region in British Columbia (14,444 net acres). DXI Energy Inc. maintains offices in Calgary and Vancouver, Canada. The company is publicly traded on the New York Stock Exchange (NYSE MKT:DXI) and Toronto Stock Exchange (DXI.TO).