Second Quarter Highlights
Financial Summary
2020 |
2019 |
Six Months Ended |
|||||||||
Q2 |
Q1 |
Q2 |
2020 |
2019 |
|||||||
Statements of Comprehensive Income |
|||||||||||
Petroleum & natural gas sales |
$ |
16,290 |
$ |
27,435 |
$ |
36,473 |
$ |
43,725 |
$ |
76,380 |
|
Net (loss) income (before tax) |
$ |
(2,933) |
$ |
3,877 |
$ |
13,433 |
$ |
944 |
$ |
29,819 |
|
Net (loss) income |
$ |
(2,801) |
$ |
2,835 |
$ |
18,219 |
$ |
34 |
$ |
29,733 |
|
Net (loss) income per share – basic |
$ |
(0.03) |
$ |
0.03 |
$ |
0.21 |
$ |
0.00 |
$ |
0.35 |
|
Net (loss) income per share – diluted |
$ |
(0.03) |
$ |
0.03 |
$ |
0.21 |
$ |
0.00 |
$ |
0.34 |
|
Statements of Cash Flow |
|||||||||||
Funds flow from operations |
$ |
7,733 |
$ |
15,293 |
$ |
24,445 |
$ |
23,026 |
$ |
52,176 |
|
Funds flow from operations per share – basic |
$ |
0.09 |
$ |
0.18 |
$ |
0.29 |
$ |
0.27 |
$ |
0.61 |
|
Funds flow from operations per share – diluted |
$ |
0.09 |
$ |
0.18 |
$ |
0.28 |
$ |
0.27 |
$ |
0.60 |
|
Cash from operating activities |
$ |
1,544 |
$ |
15,725 |
$ |
22,005 |
$ |
17,269 |
$ |
44,968 |
|
Statements of Financial Position |
|||||||||||
Property and equipment |
$ |
554,470 |
$ |
558,956 |
$ |
515,730 |
$ |
554,470 |
$ |
515,730 |
|
Total assets |
$ |
604,096 |
$ |
608,468 |
$ |
561,986 |
$ |
604,096 |
$ |
561,986 |
|
Working capital deficit (surplus) |
$ |
(2,181) |
$ |
9,278 |
$ |
6,672 |
$ |
(2,181) |
$ |
6,672 |
|
Adjusted Net Debt |
$ |
192,067 |
$ |
198,253 |
$ |
177,821 |
$ |
192,067 |
$ |
177,821 |
|
Shareholders equity |
$ |
306,629 |
$ |
307,265 |
$ |
288,027 |
$ |
306,629 |
$ |
288,027 |
|
Weighted average number of shares – basic |
85,380 |
85,380 |
85,363 |
85,380 |
85,361 |
||||||
Weighted average number of shares – diluted |
85,380 |
85,524 |
86,680 |
85,640 |
86,728 |
||||||
Company Netbacks ($/boe)
2020 |
2019 |
Six Months Ended |
|||||||||
Q2 |
Q1 |
Q2 |
2020 |
2019 |
|||||||
Sales price |
$ |
18.13 |
$ |
24.87 |
$ |
30.76 |
$ |
21.83 |
$ |
33.77 |
|
Royalty expense |
(0.35) |
(1.49) |
(2.35) |
(0.98) |
(2.56) |
||||||
Production costs |
(5.37) |
(5.67) |
(5.50) |
(5.53) |
(5.68) |
||||||
Transportation costs |
(0.96) |
(1.00) |
(0.79) |
(0.98) |
(0.87) |
||||||
Field operating netback |
11.45 |
16.71 |
22.12 |
14.34 |
24.66 |
||||||
Realized gain (loss) on commodity contract settlement |
(0.08) |
0.05 |
0.22 |
0.00 |
0.19 |
||||||
Operating netback |
11.37 |
16.76 |
22.34 |
14.33 |
24.85 |
||||||
G&A |
(0.66) |
(0.72) |
(0.50) |
(0.69) |
(0.41) |
||||||
Cash Finance expenses |
(2.11) |
(2.17) |
(1.49) |
(3.96) |
(1.72) |
||||||
Depletion and depreciation |
(8.46) |
(8.36) |
(8.53) |
(8.41) |
(8.51) |
||||||
Non Cash – Finance expenses |
(1.71) |
(2.11) |
(0.05) |
(0.05) |
(0.05) |
||||||
Stock-based compensation |
(1.68) |
(0.51) |
(0.75) |
(1.04) |
(0.96) |
||||||
Unrealized gain (loss) on financial instruments |
(0.07) |
0.57 |
0.32 |
0.28 |
(0.02) |
||||||
Deferred income tax |
0.15 |
(0.94) |
4.04 |
(0.45) |
(0.04) |
||||||
Net Income netback |
$ |
(3.18) |
$ |
2.51 |
$ |
15.38 |
$ |
0.01 |
$ |
13.14 |
Business Environment
2020 |
2019 |
Six Months Ended |
|||||||||
Q2 |
Q1 |
Q2 |
2020 |
2019 |
|||||||
Realized Pricing (Including realized commodity contracts) |
|||||||||||
Oil ($/bbl) |
$ |
31.31 |
$ |
52.19 |
$ |
73.77 |
$ |
44.36 |
$ |
69.81 |
|
NGL ($/bbl) |
$ |
13.82 |
$ |
16.64 |
$ |
24.20 |
$ |
15.33 |
$ |
30.80 |
|
Gas ($/mcf) |
$ |
2.24 |
$ |
2.11 |
$ |
1.24 |
$ |
2.10 |
$ |
1.84 |
|
Realized Pricing (Excluding commodity contracts) |
|||||||||||
Oil ($/bbl) |
$ |
31.31 |
$ |
52.05 |
$ |
73.77 |
$ |
44.28 |
$ |
69.81 |
|
NGL ($/bbl) |
$ |
13.98 |
$ |
16.59 |
$ |
22.80 |
$ |
15.38 |
$ |
29.57 |
|
Gas ($/mcf) |
$ |
2.25 |
$ |
2.11 |
$ |
1.24 |
$ |
2.11 |
$ |
1.84 |
|
Oil Price Benchmarks |
|||||||||||
West Texas Intermediate (“WTI”) (US$/bbl) |
$ |
28.00 |
$ |
46.17 |
$ |
59.56 |
$ |
36.82 |
$ |
57.05 |
|
Edmonton Par (C$/bbl) |
$ |
28.67 |
$ |
51.44 |
$ |
73.73 |
$ |
40.06 |
$ |
70.13 |
|
Edmonton Par to WTI differential (US$/bbl) |
$ |
(7.31) |
$ |
(7.85) |
$ |
(4.44) |
$ |
(7.47) |
$ |
(4.42) |
|
Natural Gas Price Benchmarks |
|||||||||||
AECO gas (Cdn$/mcf) |
$ |
1.89 |
$ |
2.03 |
$ |
1.04 |
$ |
1.91 |
$ |
1.83 |
|
Foreign Exchange |
|||||||||||
U.S./Canadian Dollar Exchange |
0.72 |
0.75 |
0.75 |
0.73 |
0.75 |
Operations Summary
Net petroleum and natural gas production, pricing and revenue are summarized below:
2020 |
2019 |
Six Months Ended |
|||||||||
Q2 |
Q1 |
Q2 |
2020 |
2019 |
|||||||
Daily production volumes |
|||||||||||
Natural gas (mcf/d) |
33,214 |
38,712 |
41,304 |
35,962 |
38,024 |
||||||
Oil (bbl/d) |
2,513 |
3,550 |
4,116 |
3,029 |
4,223 |
||||||
NGL’s (bbl/d) |
1,827 |
2,120 |
2,032 |
1,976 |
1,937 |
||||||
Combined (boe/d 6:1) |
9,875 |
12,122 |
13,032 |
10,999 |
12,497 |
||||||
Revenue |
|||||||||||
Petroleum & natural gas sales – Gross |
$ |
16,290 |
$ |
27,435 |
$ |
36,473 |
$ |
43,725 |
$ |
76,380 |
|
Realized gain (loss) on commodity contract settlement |
(69) |
53 |
260 |
(16) |
430 |
||||||
Total sales |
16,221 |
27,488 |
36,733 |
43,709 |
76,810 |
||||||
Royalty expense |
(314) |
(1,640) |
(2,785) |
(1,954) |
(5,788) |
||||||
Total Revenue – Net of royalties |
$ |
15,907 |
$ |
25,848 |
$ |
33,948 |
$ |
41,755 |
$ |
71,022 |
|
Working Capital Summary
The following table summarizes the change in working capital during the six months ended June 30, 2020 and December 31, 2019:
Six months ended |
Year ended |
|||
June 30, 2020 |
December 31, 2019 |
|||
Adjusted Net Debt – beginning of period |
$ |
(187,711) |
$ |
(155,882) |
Funds flow from operations |
23,026 |
92,236 |
||
Additions to property and equipment |
(26,092) |
(115,276) |
||
Decommissioning costs incurred |
– |
(966) |
||
Additions to E&E Assets |
(426) |
(5,723) |
||
Issuance of shares |
– |
41 |
||
Other |
(864) |
(2,141) |
||
Adjusted Net Debt – end of period |
$ |
(192,067) |
$ |
(187,711) |
Credit facility limit |
$ |
210,000 |
$ |
225,000 |
Capital Spending
Capital spending is summarized as follows:
2020 |
2019 |
Six Months Ended |
|||||||||
Cash additions |
Q2 |
Q1 |
Q2 |
2020 |
2019 |
||||||
Land, acquisitions and lease rentals |
$ |
36 |
$ |
104 |
$ |
98 |
$ |
140 |
$ |
136 |
|
Drilling and completion |
372 |
22,563 |
8,960 |
22,935 |
47,870 |
||||||
Geological and geophysical |
145 |
171 |
209 |
316 |
446 |
||||||
Equipment |
273 |
1,968 |
3,346 |
2,241 |
21,667 |
||||||
Other asset additions |
258 |
201 |
182 |
459 |
682 |
||||||
$ |
1,084 |
$ |
25,008 |
$ |
12,794 |
$ |
26,092 |
$ |
70,800 |
||
Exploration & evaluation assets |
$ |
– |
$ |
426 |
$ |
1,019 |
$ |
426 |
$ |
2,063 |
Quarter End Disclosure
The Company’s financial statements, notes to the financial statements and management’s discussion and analysis will be filed on SEDAR (www.sedar.com) and are available on the Company’s website (www.yangarra.ca).
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