CALGARY, March 7, 2019 /CNW/ – Yangarra Resources Ltd. (“Yangarra” or the “Company“) (TSX:YGR) announces its financial and operating results for the year ended December 31, 2018.
2018 Highlights
Fourth Quarter Highlights
Syndicated Facility
Subsequent to December 31, 2018, the borrowing base review was completed and the maximum amount available under the syndicated credit facility was increased to $225 million.
Financial Summary
2018 |
2017 |
Year Ended |
|||||||||
Q4 |
Q3 |
Q4 |
2018 |
2017 |
|||||||
Statements of Comprehensive Income |
|||||||||||
Petroleum & natural gas sales |
$ |
30,174 |
$ |
45,132 |
$ |
25,172 |
$ |
134,978 |
$ |
77,913 |
|
Net income (before tax) |
$ |
18,842 |
$ |
18,302 |
$ |
6,598 |
$ |
47,795 |
$ |
27,346 |
|
Net income |
$ |
13,315 |
$ |
12,947 |
$ |
4,682 |
$ |
33,566 |
$ |
19,485 |
|
Net income per share – basic |
$ |
0.16 |
$ |
0.15 |
$ |
0.06 |
$ |
0.40 |
$ |
0.24 |
|
Net income per share – diluted |
$ |
0.15 |
$ |
0.15 |
$ |
0.05 |
$ |
0.39 |
$ |
0.23 |
|
Statements of Cash Flow |
|||||||||||
Funds flow from operations |
$ |
17,167 |
$ |
29,524 |
$ |
17,564 |
$ |
82,335 |
$ |
52,903 |
|
Funds flow from operations per share – basic |
$ |
0.20 |
$ |
0.35 |
$ |
0.22 |
$ |
0.97 |
$ |
0.66 |
|
Funds flow from operations per share – diluted |
$ |
0.20 |
$ |
0.34 |
$ |
0.20 |
$ |
0.95 |
$ |
0.63 |
|
Cash from operating activities |
$ |
25,952 |
$ |
26,539 |
$ |
20,542 |
$ |
83,768 |
$ |
51,775 |
|
Statements of Financial Position |
|||||||||||
Property and equipment |
$ |
454,772 |
$ |
426,745 |
$ |
342,100 |
$ |
454,772 |
$ |
342,100 |
|
Total assets |
$ |
501,974 |
$ |
479,397 |
$ |
378,231 |
$ |
501,974 |
$ |
378,231 |
|
Working capital deficit |
$ |
20,775 |
$ |
23,528 |
$ |
11,210 |
$ |
20,775 |
$ |
11,210 |
|
Net Debt (which excludes current derivative financial instruments) |
$ |
155,882 |
$ |
135,712 |
$ |
93,533 |
$ |
155,882 |
$ |
93,533 |
|
Non-Current Liabilities, excluding bank debt |
$ |
60,204 |
$ |
58,467 |
$ |
44,367 |
$ |
60,204 |
$ |
44,367 |
|
Shareholders equity |
$ |
255,336 |
$ |
239,946 |
$ |
207,957 |
$ |
255,336 |
$ |
207,957 |
|
Weighted average number of shares – basic |
85,340 |
85,331 |
81,302 |
84,653 |
80,720 |
||||||
Weighted average number of shares – diluted |
86,981 |
87,614 |
85,749 |
86,860 |
84,157 |
||||||
Company Netbacks ($/boe)
2018 |
2017 |
Year Ended |
|||||||||
Q4 |
Q3 |
Q4 |
2018 |
2017 |
|||||||
Sales price |
$26.80 |
$ |
47.52 |
$ |
40.71 |
$ |
39.24 |
$ |
37.19 |
||
Royalty expense |
(3.34) |
(4.38) |
(3.80) |
(3.90) |
(3.06) |
||||||
Production costs |
(5.57) |
(5.28) |
(6.49) |
(5.82) |
(6.74) |
||||||
Transportation costs |
(1.31) |
(1.07) |
(0.97) |
(1.31) |
(1.03) |
||||||
Field operating netback |
16.58 |
36.79 |
29.45 |
28.21 |
26.36 |
||||||
Realized gain (loss) on commodity contract settlement |
0.98 |
(3.65) |
0.93 |
(2.17) |
1.32 |
||||||
Operating netback |
17.56 |
33.15 |
30.39 |
26.04 |
27.68 |
||||||
G&A |
(1.01) |
(0.61) |
(1.44) |
(0.72) |
(0.95) |
||||||
Finance expenses |
(1.72) |
(1.30) |
(0.32) |
(1.45) |
(1.07) |
||||||
Funds flow netback |
14.83 |
31.24 |
28.63 |
23.87 |
25.66 |
||||||
Depletion and depreciation |
(7.61) |
(10.09) |
(9.63) |
(9.26) |
(10.47) |
||||||
Asset Impairment |
(0.00) |
(0.85) |
– |
(0.23) |
– |
||||||
Accretion |
(0.06) |
(0.06) |
(0.74) |
(0.07) |
(0.29) |
||||||
Stock-based compensation |
(1.37) |
(1.59) |
(0.66) |
(1.52) |
(0.72) |
||||||
Unrealized gain (loss) on financial instruments |
10.94 |
0.62 |
(6.92) |
1.10 |
(1.13) |
||||||
Deferred income tax |
(4.91) |
(5.64) |
(3.10) |
(4.14) |
(3.75) |
||||||
Net Income netback |
$ |
11.83 |
$ |
13.63 |
$ |
7.57 |
$ |
9.76 |
$ |
9.30 |
|
Commodity Prices
2018 |
2017 |
Year Ended |
|||||||||
Q4 |
Q3 |
Q4 |
2018 |
2017 |
|||||||
Realized Pricing (Including realized commodity contracts) |
|||||||||||
Oil ($/bbl) |
$ |
44.46 |
$ |
74.84 |
$ |
72.70 |
$ |
63.42 |
$ |
65.61 |
|
NGL ($/bbl) |
$ |
30.91 |
$ |
40.05 |
$ |
40.63 |
$ |
35.03 |
$ |
35.15 |
|
Gas ($/mcf) |
$ |
1.64 |
$ |
1.38 |
$ |
2.06 |
$ |
1.59 |
$ |
2.46 |
|
Realized Pricing (Excluding commodity contracts) |
|||||||||||
Oil ($/bbl) |
$ |
42.58 |
$ |
82.54 |
$ |
72.33 |
$ |
67.48 |
$ |
64.23 |
|
NGL ($/bbl) |
$ |
29.73 |
$ |
41.76 |
$ |
40.29 |
$ |
37.87 |
$ |
33.74 |
|
Gas ($/mcf) |
$ |
1.64 |
$ |
1.30 |
$ |
1.77 |
$ |
1.57 |
$ |
2.25 |
|
Oil Price Benchmarks |
|||||||||||
West Texas Intermediate (“WTI”) (US$/bbl) |
$ |
61.05 |
$ |
69.50 |
$ |
55.40 |
$ |
64.98 |
$ |
50.84 |
|
Edmonton Par (C$/bbl) |
$ |
42.71 |
$ |
81.92 |
$ |
69.30 |
$ |
69.35 |
$ |
63.20 |
|
Edmonton Par to WTI differential (US$/bbl) |
$ |
(28.77) |
$ |
(6.83) |
$ |
(0.04) |
$ |
(11.48) |
$ |
(2.18) |
|
Natural Gas Price Benchmarks |
|||||||||||
AECO gas (Cdn$/mcf) |
$ |
1.59 |
$ |
1.19 |
$ |
1.70 |
$ |
1.51 |
$ |
2.15 |
|
Foreign Exchange |
|||||||||||
U.S./Canadian Dollar Exchange |
0.76 |
0.77 |
0.80 |
0.77 |
0.77 |
||||||
Operations Summary
Net petroleum and natural gas production, pricing and revenue are summarized below:
2018 |
2017 |
Year Ended |
|||||||||
Q4 |
Q3 |
Q4 |
2018 |
2017 |
|||||||
Daily production volumes |
|||||||||||
Natural gas (mcf/d) |
30,573 |
24,378 |
16,782 |
22,993 |
14,901 |
||||||
Oil (bbl/d) |
5,111 |
4,853 |
2,687 |
4,120 |
2,295 |
||||||
NGL’s (bbl/d) |
2,032 |
1,406 |
1,237 |
1,473 |
962 |
||||||
Combined (boe/d 6:1) |
12,238 |
10,323 |
6,721 |
9,425 |
5,740 |
||||||
Revenue |
|||||||||||
Petroleum & natural gas sales – Gross |
$ |
30,174 |
$ |
45,132 |
$ |
25,172 |
$ |
134,978 |
$ |
77,913 |
|
Realized gain (loss) on commodity contract settlement |
1,104 |
(3,462) |
578 |
(7,449) |
2,774 |
||||||
Total sales |
31,278 |
41,670 |
25,750 |
127,529 |
80,687 |
||||||
Royalty expense |
(3,763) |
(4,157) |
(2,349) |
(13,405) |
(6,412) |
||||||
Total Revenue – Net of royalties |
$ |
27,516 |
$ |
37,513 |
$ |
23,401 |
$ |
114,124 |
$ |
74,275 |
|
Working Capital Summary
The following table summarizes the change in working capital during the year ended December 31, 2018 and December 31, 2017:
2018 |
2017 |
|||
Net Debt – beginning of period |
$ |
(93,533) |
$ |
(65,006) |
Funds flow from operations |
82,334 |
52,903 |
||
Additions to property and equipment |
(141,060) |
(83,472) |
||
Decommissioning costs incurred |
(333) |
(95) |
||
Additions to E&E Assets |
(9,773) |
– |
||
Issuance of shares |
6,776 |
2,180 |
||
Other |
(293) |
(43) |
||
Net Debt – end of period |
$ |
(155,882) |
$ |
(93,533) |
Credit facility limit |
$ |
175,000 |
$ |
120,000 |
Capital Spending
Capital spending is summarized as follows:
2018 |
2017 |
Year Ended |
|||||||||
Cash additions |
Q4 |
Q3 |
Q4 |
2018 |
2017 |
||||||
Land, acquisitions and lease rentals |
$ |
340 |
$ |
79 |
$ |
1,163 |
$ |
569 |
$ |
7,165 |
|
Drilling and completion |
22,299 |
38,265 |
25,406 |
106,855 |
64,309 |
||||||
Geological and geophysical |
412 |
163 |
263 |
913 |
825 |
||||||
Equipment |
11,991 |
9,893 |
4,312 |
32,337 |
10,854 |
||||||
Other asset additions |
214 |
82 |
20 |
385 |
320 |
||||||
$ |
35,256 |
$ |
48,481 |
$ |
31,164 |
$ |
141,060 |
$ |
83,472 |
||
Exploration & evaluation assets |
$ |
1,690 |
$ |
1,563 |
$ |
(730) |
$ |
9,773 |
$ |
(730) |
Annual General Meeting of Shareholders
The Company’s Annual General Meeting of Shareholders is scheduled for 10:00 AM on Thursday May 9, 2019 in the Tillyard Management Conference Centre, Main Floor, 715 5th Avenue SW, Calgary, AB.
Year End Disclosure
The Company’s financial statements, notes to the financial statements, management’s discussion and analysis and annual information form will be filed on SEDAR (www.sedar.com) and are available on the Company’s website (www.yangarra.ca).