HOUSTON, Sept. 19, 2018 (GLOBE NEWSWIRE) — Harvest Oil & Gas Corp. (“Harvest” or “Company”) (OTCQX: HRST) today announced its common stock and warrants have been approved for and will begin trading on the OTCQX® Best Market on September 20, 2018. Harvest’s common stock and warrants will trade under the tickers HRST and HRSTW, respectively. Investors may find current financial disclosures and Real-Time level 2 quotes for Harvest on www.otcmarkets.com.
As detailed in a Form 8-K filed with the Securities and Exchange Commission on September 7, 2018, Harvest completed the previously announced sale of certain interests in its Central Texas and Karnes County, Texas properties to Magnolia Oil & Gas Corporation (“Magnolia”) on August 31, 2018. Total consideration at closing consisted of $133.3 million in cash (net of preliminary purchase price adjustments) and 4.2 million shares of Magnolia stock. Based on the closing price on August 31, 2018 of $13.86, total consideration, net of preliminary purchase price adjustments, was $191.5 million.
In addition, on August 31, 2018, Harvest completed the previously announced sale of certain Eagle Ford formation rights and existing production in Lee County, Texas to a third party for $3.5 million of cash consideration (net of preliminary purchase price adjustments).
Harvest used the net cash proceeds received from these divestitures as well as cash on hand to repay $139.0 million of the borrowings outstanding under its reserve-based revolving credit facility. As a result of the divestitures, the borrowing base under Harvest’s credit facility was reduced by $60.3 million to $264.7 million. Harvest had $139.0 million drawn on its credit facility as of September 19, 2018.
In light of its recent divestitures in Central Texas and Karnes County, the Company is providing guidance for the second half of 2018.
|($ in millions)||3Q 2018||4Q 2018|
|Natural Gas (Mmcf)||10,035||–||10,550||8,995||–||9,460|
|Crude Oil (Mbbls)||315||–||330||200||–||210|
|Natural Gas Liquids (Mbbls)||575||–||605||495||–||520|
|Average Daily Production (Mmcfe/d)||167||–||176||143||–||150|
|Net Transportation and Other||$||0.3||–||$||0.5||$||0.3||–||$||0.5|
|Average Price Differential vs NYMEX|
|Natural Gas ($/Mcf)||$||(0.60||)||–||$||(0.30||)||$||(0.60||)||–||$||(0.30||)|
|Crude Oil ($/Bbl)||$||(3.50||)||–||$||(1.50||)||$||(5.00||)||–||$||(3.00||)|
|NGL (% of NYMEX Crude Oil)||37||%||41||%||37||%||41||%|
|LOE and Other||$||25.7||–||$||28.4||$||22.7||–||$||25.1|
|Production Taxes (as % of revenue)||4.4||%||–||5.0||%||4.4||%||–||5.0||%|
|General and Administrative Expense(1)||$||7.5||–||$||8.5||$||5.2||–||$||6.2|
(1) Approximately $1.2 million of 3Q18 General and Administrative Expenses are related to our restructuring and the divestiture of the Central Texas and Karnes County assets.
Subsequent to the closing of the Central Texas and Karnes County sales, the Company continues to explore strategic opportunities to monetize noncore assets. Harvest will begin developing its 2019 budget and capital plan during the fourth quarter and anticipates issuing guidance for 2019 during the first quarter of 2019.
About Harvest Oil & Gas Corp.
Harvest is an independent oil and gas company engaged in the efficient operation and development of onshore oil and gas properties in the continental United States. The Company’s assets consist primarily of producing and non-producing properties in the Barnett Shale, the San Juan Basin, the Appalachian Basin (which includes the Utica Shale), Michigan, the Mid-Continent areas in Oklahoma, Texas, Arkansas, Kansas and Louisiana, the Permian Basin, and the Monroe Field in Northern Louisiana. More information about Harvest is available on the internet at https://www.hvstog.com.
(code #: HRST)