Alta Mesa Resources, Inc., (NASDAQ: AMR, “Alta Mesa Resources”,
“AMR” or the “Company”) today announced third quarter 2018
unaudited consolidated financial results and certain financial and
operational results for its subsidiaries, Alta Mesa Holdings, LP
(“Alta Mesa Upstream” or “AMH”) and Kingfisher Midstream, LLC
(“Kingfisher Midstream” or “KFM”). A conference call to discuss
these results is scheduled for today at 4 p.m. Central time
(888-347-8149).
Highlights:
- Q3-18 net production of approximately 33,400 BOE per day (50%
oil, 72% liquids), up over 30% from Q2-18, September average was
approximately 36,800 BOE per day
- Oil volumes for Q3-18 were approximately 16,700 Bbls per day,
up over 35% from Q2-18
- Production guidance for full-year 2018 reaffirmed at 29,000 to
31,000 BOE per day, 2018 exit rate guidance reaffirmed at 38,000 to
40,000 BOE per day
- Kingfisher Midstream Q3-18 system gas volumes of 116 MMcf per
day, up over 20% from Q2-18
- Kingfisher Midstream EBITDA guidance for Q4-18 of $14 to $16
million
- Alta Mesa Resources completed the transfer of the produced
water business from Alta Mesa Upstream to Kingfisher Midstream,
effective Oct 1, 2018
- Alta Mesa Resources repurchased and retired approximately 3.1
million of its Class A common shares under its stock buy-back
program at a weighted average price of $4.76 per share
Hal Chappelle, Alta Mesa Resources’ President
and Chief Executive Officer, stated, “We have continued to execute
at a high level of excellence in the field, bringing over 50 wells
on production this quarter while controlling capital costs.
With over 20 new multi-well patterns being brought onto production
in 2018, we have significantly expanded our understanding of the
optimal development strategies for our asset base. We are
leveraging this expanded understanding to continue to refine our
development plans for 2019 and beyond with a focus on maximizing
capital efficiency and shareholder returns.”
Third Quarter 2018 Financial
Summary
Net income, attributable to Alta Mesa Resources’
stockholders, during the third quarter of 2018 was $7.1 million or
$0.04 per basic and diluted share. Adjusted earnings before
interest, income taxes, depreciation, depletion and amortization
and exploration costs and other items ("Adjusted EBITDAX") was
$83.8 million for the third quarter of 2018. Alta Mesa Upstream had
a net income during the third quarter 2018 of $17.8 million, and
Adjusted EBITDAX of $73.4 million. Kingfisher Midstream had a net
income during the third quarter of $2.1 million, and adjusted
earnings before interest, income taxes, depreciation, depletion and
amortization and other items ("Adjusted EBITDA") of $10.9 million.
For the third quarter of 2018, the produced water business remains
in the Alta Mesa Upstream results. Adjusted EBITDAX and Adjusted
EBITDA are non-GAAP financial measures and are described in the
attached table under “Non-GAAP Financial Information and
Reconciliation.”
Alta Mesa Upstream Operational
Results
Total production for the third quarter of 2018
was 3,077 MBOE, an average of 33,400 BOE per day, up over 30% from
the second quarter of 2018. September 2018 average production was
36,800 BOE per day which is up by more than 80% from the 2017 exit
rate. Alta Mesa Upstream is reaffirming its previously published
full year 2018 production guidance of 29,000 to 31,000 BOE per day
and reaffirms its expected 2018 production exit rate of 38,000 to
40,000 BOE per day.
In the third quarter, Alta Mesa Upstream had
eight rigs and four frac crews working to complete the drilling of
46 wells and bring 53 wells onto production. Two of the wells
brought on production were funded under the joint development
agreement with BCE-STACK Development LLC. In 2018, through the end
of the third quarter, Alta Mesa Upstream has drilled 128 horizontal
wells in the STACK.
Kingfisher Midstream and Produced Water
Business Update
Kingfisher Midstream’s system gas volumes for
the third quarter of 2018 were 10.7 BCF, an average of 116 MMcf per
day, up over 20% from the second quarter of 2018. September 2018
system gas volumes averaged 123 MMcf per day compared to 82 MMcf
per day at the time of the business combination in early February
2018.
Alta Mesa Resources has completed the transfer
of the produced water business from Alta Mesa Upstream to
Kingfisher Midstream for a value of approximately $90 million,
subject to closing adjustments and will be funded under the
Kingfisher Midstream revolving credit facility. The transaction
closed November 9, 2018 with an effective date of October 1,
2018. Produced water volumes for the third quarter 2018
averaged approximately 75,000 barrels of water per day. This
purpose-built and expanding system currently consists of over 200
miles of permanently installed gathering pipeline and 20 produced
water disposal wells. Concurrently, Alta Mesa Upstream entered a
new 15-year produced water gathering and disposal agreement with
Kingfisher Midstream that includes all current and future Alta Mesa
Upstream acreage in select counties including Kingfisher and Major
county.
Craig Collins, Chief Operating Officer of
Kingfisher Midstream, stated, “We are excited to mark a strategic
milestone for Kingfisher Midstream by having recently completed the
transfer of the produced water business from Alta Mesa Upstream.
The produced water business further supports our efforts to provide
differentiated services at competitive rates that will establish
long term, multi-stream, fee-based growth for our midstream
business.” Collins added, "Continuing to execute on growing volumes
in all three product lines, gas, oil and produced water, is a key
focus as we exit 2018 and begin 2019.”
Updated 2018 Guidance for Kingfisher
Midstream
Kingfisher Midstream issued EBITDA guidance of
$14 to $16 million for Q4-2018 and updated full year 2018 EBITDA
guidance to $36 to $38 million. These amounts include revenue
generated in Q4-2018 from the newly transferred produced water
business as if the business was owned on October 1, 2018. This
implies annualized Q4-2018 Kingfisher Midstream EBITDA of $56 to
$64 million.
|
Q4-2018 Guidance |
Updated Full Year 2018 Guidance |
|
|
|
Average Rig Count |
|
|
Alta Mesa
Upstream |
~9 |
~8 |
Third
Parties |
≤ 3 |
≤
4 |
Average Gas Volumes
(MMcf/d) |
|
|
Alta Mesa
Upstream |
90 – 100 |
80 –
85 |
Third Parties |
15 – 25 |
15 - 25 |
Average
Crude Oil Volumes (Bbls/d) |
6,500 – 7,500 |
~5,000 |
Average
Water Volumes (Bbls/d)1 |
80,000 – 90,000 |
80,000 – 90,000 |
|
|
|
|
|
|
Plant Operating
Expenses($/MMbtu) |
$0.25 - $0.30 |
$0.25
- $0.30 |
Gathering &
Processing Expense ($mm) |
~$3 |
~$11 |
Water Operating Expense
($/Bbl) |
~$0.30 |
~$0.30 |
G&A Expense
($mm) |
~$4.5 |
~$14 |
One-Time
Expenses Addback2 |
- |
($2) |
Adjusted
EBITDA ($mm)3 |
$14 - $16 |
$36 - $38 |
Capex ($mm)4 |
$45 - $55 |
$80 -
$90 |
Note:
Full-year 2018 represents the period from Feb 9, 2018 to Dec 31,
2018
- Water volumes shown for Full Year 2018 Average are the Average
for Q4-2018
- One-time expense addback includes transition services agreement
payments made in Q1 and Q2
- Adjusted EBITDA includes full Q4 2018 EBITDA from produced
water business, as if business was owned on Oct 1, 2018
- Capex does not include the $90 million purchase price for
produced water. Capex excludes FY 2018 funding for Cimarron Express
of $16 million that is accounted as an equity investment
Share Repurchase Program
Update
The Company repurchased and retired
approximately 3.1 million shares of Class A common stock at a
weighted average price of $4.76 per share under the previously
announced $50 million share repurchase program. Repurchases are
done at the company’s discretion in accordance with applicable
securities laws from time to time in open market or private
transactions.
Management Update
The Company today announced that Michael A. McCabe, Alta Mesa
Vice President, Chief Financial Officer and Assistant Secretary is
retiring from the Company. To help ensure an orderly
transition, Mr. McCabe will remain with Alta Mesa while
the company conducts a search to fill the Chief Financial Officer
position.
Mr. McCabe joined the company twelve years ago and has served as
the Chief Financial Officer during a transformational period of
growth from a diversified private upstream company to a focused
pure play STACK company with integrated upstream and midstream
operations. Hal Chappelle, Alta Mesa Resources’ President and
Chief Executive Officer, stated, “On behalf of the entire Board,
management team and Alta Mesa employees I want to thank Mike for
his dedication and valuable contributions during his more than a
decade at Alta Mesa. Mike has played a significant role in the
evolution of the Company and its preparation for becoming public
via the business combination earlier this year. I am deeply
appreciative that Mike will remain with the Company to help
facilitate a smooth leadership transition and wish him all the best
in his retirement.”
“It has been a privilege to work alongside the talented and
dedicated Alta Mesa team,” said McCabe. “I am proud of the team we
have built and the asset base we have assembled. The team and
assets are well positioned to deliver capital efficient growth for
years to come. I am committed to working with Hal and the
full management team to ensure a smooth transition.”
Conference Call Information
Alta Mesa Resources invites you to listen to its
conference call which will discuss its financial and operational
results at 4:00 p.m., Central time, on Tuesday, November 13, 2018.
If you wish to participate in this conference call, dial
888-347-8149 (toll free in US/Canada) or 412-902-4228 (for
International calls), five to ten minutes before the scheduled
start time. A webcast of the call and any related materials will be
available on Alta Mesa Resources’ website at
http://altamesaresources.irpass.com/. Additionally, a replay of the
conference call will be available for one week following the live
broadcast by dialing 844-512-2921 (toll free in US/Canada) or
412-317-6671 (International calls), and referencing Conference ID
#10125708.
Alta Mesa Resources, Inc., is an independent
energy company focused on the development and acquisition of
unconventional oil and natural gas reserves in the Anadarko Basin
in Oklahoma, and through Kingfisher Midstream, LLC, provides
best-in-class midstream energy services, including crude oil, gas
and produced water gathering, processing and marketing to producers
in the STACK play. Alta Mesa Resources, Inc. is headquartered in
Houston, Texas.
Safe Harbor Statement and
Disclaimer 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, regarding Alta Mesa Resources’
strategy, future operations, financial position, estimated revenues
and losses, projected costs, prospects, plans and objectives of
management are forward-looking statements. When used in this press
release, the words “could”, “should”, “will”, “play”, “believe”,
“anticipate”, “intend”, “estimate”, “expect”, “project” and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain such
identifying words. These forward-looking statements are based on
Alta Mesa Resources’ current expectations and assumptions about
future events and are based on currently available information as
to the outcome and timing of future events. Forward-looking
statements may include statements about Alta Mesa Resources’:
business strategy; financial strategy; future oil and natural gas
prices; timing and amount of future production of oil and natural
gas; future drilling plans; production and financial guidance; and
plans, objectives, expectations and intentions contained in this
press release that are not historical. Alta Mesa Resources cautions
you that these forward-looking statements are subject to all of the
risks and uncertainties, most of which are difficult to predict and
many of which are beyond its control, incident to the exploration
for and development and production of oil and natural gas. These
risks include, but are not limited to, commodity price volatility,
low prices for oil and/or natural gas, global economic conditions,
inflation, increased operating cost, lack of availability of
drilling and production equipment and services, environmental
risks, weather risks, drilling and other operating risks,
regulatory changes, the uncertainty inherent in estimating oil and
natural gas reserves and in projecting future rates of production,
cash flow and access to capital, the timing of development
expenditures, and other risks. Information concerning these and
other factors can be found in Alta Mesa Resources' filings with the
SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained
free of charge on the SEC's web site at http://www.sec.gov. Should
one or more of the risks or uncertainties described in this press
release occur, or should underlying assumptions prove incorrect,
Alta Mesa Resources’ actual results and plans could differ
materially from those expressed in any forward-looking statements.
All forward-looking statements, expressed or implied, included in
this press release are expressly qualified in their entirety by
this cautionary statement. This cautionary statement should also be
considered in connection with any subsequent written or oral
forward-looking statements that we may issue. Except as otherwise
required by applicable law, Alta Mesa Resources disclaims any duty
to update any forward-looking statements, all of which are
expressly qualified by the statements in this section, to reflect
events or circumstances after the date of this press release.
FOR MORE INFORMATION CONTACT:
Lance L. Weaver (281) 943-5597 lweaver@altamesa.net
|
ALTA MESA RESOURCES,
INC.CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)(in thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Successor |
|
|
Predecessor |
|
Three |
|
|
Three |
|
February 9, 2018 |
|
|
January 1, 2018 |
|
Nine |
|
Months Ended |
|
|
Months Ended |
|
Through |
|
|
Through |
|
Months Ended |
|
Sept 30, 2018 |
|
|
Sept 30, 2017 |
|
Sept 30, 2018 |
|
|
Feb 8, 2018 |
|
Sept 30, 2017 |
OPERATING REVENUES AND
OTHER |
|
|
|
|
|
|
|
|
|
|
|
Oil |
$ |
107,253 |
|
|
|
$ |
44,201 |
|
|
$ |
222,822 |
|
|
|
$ |
30,972 |
|
|
$ |
133,489 |
|
Natural
gas |
11,959 |
|
|
|
9,583 |
|
|
25,149 |
|
|
|
4,276 |
|
|
29,816 |
|
Natural
gas liquids |
13,880 |
|
|
|
7,548 |
|
|
28,835 |
|
|
|
4,000 |
|
|
21,201 |
|
Product
sales |
22,676 |
|
|
|
— |
|
|
50,650 |
|
|
|
— |
|
|
— |
|
Gathering
and processing revenue |
8,102 |
|
|
|
— |
|
|
18,586 |
|
|
|
— |
|
|
— |
|
Other
revenues |
1,011 |
|
|
|
1,792 |
|
|
3,795 |
|
|
|
888 |
|
|
5,005 |
|
Total
operating revenues |
164,881 |
|
|
|
63,124 |
|
|
349,837 |
|
|
|
40,136 |
|
|
189,511 |
|
Gain
(loss) on sale of assets and other |
(18 |
) |
|
|
— |
|
|
5,898 |
|
|
|
— |
|
|
— |
|
Gain on
acquisition of oil and gas properties |
— |
|
|
|
5,267 |
|
|
— |
|
|
|
— |
|
|
5,267 |
|
Gain
(loss) on derivative contracts |
(11,212 |
) |
|
|
(10,468 |
) |
|
(63,077 |
) |
|
|
7,298 |
|
|
38,024 |
|
Total
operating revenues and other |
153,651 |
|
|
|
57,923 |
|
|
292,658 |
|
|
|
47,434 |
|
|
232,802 |
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
Lease
operating expense |
16,351 |
|
|
|
10,407 |
|
|
37,347 |
|
|
|
4,485 |
|
|
32,897 |
|
Marketing
and transportation expense |
2,847 |
|
|
|
8,314 |
|
|
6,041 |
|
|
|
3,725 |
|
|
20,486 |
|
Plant
operating expense |
4,507 |
|
|
|
— |
|
|
8,407 |
|
|
|
— |
|
|
— |
|
Product
expense |
22,830 |
|
|
|
— |
|
|
50,433 |
|
|
|
— |
|
|
— |
|
Gathering
and processing expense |
2,334 |
|
|
|
— |
|
|
7,912 |
|
|
|
— |
|
|
— |
|
Production taxes |
6,311 |
|
|
|
1,262 |
|
|
10,332 |
|
|
|
953 |
|
|
3,712 |
|
Workover
expense |
1,065 |
|
|
|
1,441 |
|
|
2,643 |
|
|
|
423 |
|
|
3,131 |
|
Exploration expense |
1,029 |
|
|
|
3,649 |
|
|
14,067 |
|
|
|
3,633 |
|
|
11,888 |
|
Depreciation, depletion and amortization expense |
52,877 |
|
|
|
24,159 |
|
|
102,227 |
|
|
|
11,784 |
|
|
63,247 |
|
Impairment expense |
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
1,188 |
|
Accretion
expense |
226 |
|
|
|
108 |
|
|
489 |
|
|
|
39 |
|
|
234 |
|
General
and administrative expense |
11,902 |
|
|
|
17,445 |
|
|
68,915 |
|
|
|
24,352 |
|
|
35,474 |
|
Total
operating expenses |
122,279 |
|
|
|
66,785 |
|
|
308,813 |
|
|
|
49,394 |
|
|
172,257 |
|
INCOME (LOSS) FROM
OPERATIONS |
31,372 |
|
|
|
(8,862 |
) |
|
(16,155 |
) |
|
|
(1,960 |
) |
|
60,545 |
|
OTHER INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
(12,348 |
) |
|
|
(13,545 |
) |
|
(29,571 |
) |
|
|
(5,511 |
) |
|
(38,165 |
) |
Interest
income and other |
357 |
|
|
|
244 |
|
|
1,727 |
|
|
|
172 |
|
|
792 |
|
Total
other income (expense), net |
(11,991 |
) |
|
|
(13,301 |
) |
|
(27,844 |
) |
|
|
(5,339 |
) |
|
(37,373 |
) |
INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES |
19,381 |
|
|
|
(22,163 |
) |
|
(43,999 |
) |
|
|
(7,299 |
) |
|
23,172 |
|
Income
tax provision (benefit) |
1,626 |
|
|
|
— |
|
|
(5,865 |
) |
|
|
— |
|
|
285 |
|
INCOME
(LOSS) FROM CONTINUING OPERATIONS |
17,755 |
|
|
|
(22,163 |
) |
|
(38,134 |
) |
|
|
(7,299 |
) |
|
22,887 |
|
Loss from
discontinued operations, net of tax |
— |
|
|
|
(2,041 |
) |
|
— |
|
|
|
(7,593 |
) |
|
(37,490 |
) |
NET INCOME (LOSS) |
17,755 |
|
|
|
(24,204 |
) |
|
(38,134 |
) |
|
|
(14,892 |
) |
|
(14,603 |
) |
Net
income (loss) attributable to non-controlling interest |
10,620 |
|
|
|
— |
|
|
(25,590 |
) |
|
|
— |
|
|
— |
|
NET INCOME (LOSS)
ATTRIBUTABLE TO ALTA MESA RESOURCES, INC. STOCKHOLDERS |
$ |
7,135 |
|
|
|
$ |
(24,204 |
) |
|
$ |
(12,544 |
) |
|
|
$ |
(14,892 |
) |
|
$ |
(14,603 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) PER
COMMON SHARE ATTRIBUTABLE TO ALTA MESA RESOURCES INC.
STOCKHOLDERS: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.04 |
|
|
|
|
|
$ |
(0.07 |
) |
|
|
|
|
|
Diluted |
$ |
0.04 |
|
|
|
|
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALTA MESA RESOURCES,
INC.CONSOLIDATED BALANCE SHEETS
(Unaudited)(in thousands, except shares and per
share data) |
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
September 30, 2018 |
|
|
December 31, 2017 |
ASSETS |
|
|
|
|
CURRENT ASSETS |
|
|
|
|
Cash and cash
equivalents |
$ |
32,185 |
|
|
|
$ |
3,660 |
|
Restricted cash |
872 |
|
|
|
1,269 |
|
Accounts
receivable, net |
122,828 |
|
|
|
76,161 |
|
Other
receivables |
250 |
|
|
|
1,388 |
|
Receivables due from related party |
15,395 |
|
|
|
790 |
|
Note
receivable due from related party |
1,642 |
|
|
|
— |
|
Prepaid
expenses and other current assets |
3,883 |
|
|
|
2,932 |
|
Current
assets — discontinued operations |
— |
|
|
|
5,195 |
|
Derivative financial instruments |
— |
|
|
|
216 |
|
Total
current assets |
177,055 |
|
|
|
91,611 |
|
PROPERTY, PLANT AND
EQUIPMENT |
|
|
|
|
Oil and
natural gas properties, successful efforts method, net |
2,697,757 |
|
|
|
894,630 |
|
Other
property, plant and equipment, net |
401,424 |
|
|
|
32,140 |
|
Total
property, plant and equipment, net |
3,099,181 |
|
|
|
926,770 |
|
OTHER ASSETS |
|
|
|
|
Equity
method investment |
9,338 |
|
|
|
— |
|
Deferred
financing costs, net |
3,377 |
|
|
|
1,787 |
|
Notes
receivable due from related party |
11,492 |
|
|
|
12,369 |
|
Goodwill |
699,898 |
|
|
|
— |
|
Intangible assets, net |
403,552 |
|
|
|
— |
|
Deposits
and other long-term assets |
89 |
|
|
|
9,067 |
|
Non-current assets — discontinued operations |
— |
|
|
|
43,785 |
|
Deferred
tax asset |
9,077 |
|
|
|
— |
|
Derivative financial instruments |
— |
|
|
|
8 |
|
Total
other assets |
1,136,823 |
|
|
|
67,016 |
|
TOTAL ASSETS |
$ |
4,413,059 |
|
|
|
$ |
1,085,397 |
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
September 30, 2018 |
|
|
December 31, 2017 |
LIABILITIES,
PARTNERS’ CAPITAL AND STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT
LIABILITIES |
|
|
|
|
Accounts payable and
accrued liabilities |
$ |
240,431 |
|
|
|
$ |
170,489 |
|
Accounts
payable — affiliate |
— |
|
|
|
5,476 |
|
Advances
from non-operators |
9,233 |
|
|
|
5,502 |
|
Advances
from related party |
16,917 |
|
|
|
23,390 |
|
Asset
retirement obligations |
1,300 |
|
|
|
69 |
|
Current
liabilities — discontinued operations |
— |
|
|
|
15,419 |
|
Derivative financial instruments |
34,396 |
|
|
|
19,303 |
|
Total
current liabilities |
302,277 |
|
|
|
239,648 |
|
LONG-TERM
LIABILITIES |
|
|
|
|
Asset
retirement obligations, net of current portion |
9,169 |
|
|
|
10,400 |
|
Long-term
debt, net |
676,354 |
|
|
|
607,440 |
|
Noncurrent liabilities — discontinued operations |
— |
|
|
|
66,862 |
|
Derivative financial instruments |
7,078 |
|
|
|
1,114 |
|
Deferred
tax liability |
4,893 |
|
|
|
— |
|
Other
long-term liabilities |
5 |
|
|
|
5,488 |
|
Total
long-term liabilities |
697,499 |
|
|
|
691,304 |
|
TOTAL LIABILITIES |
999,776 |
|
|
|
930,952 |
|
PREFERRED STOCK,
$0.0001 par value |
|
|
|
|
Class A:
1,000,000 shares authorized; 3 shares issued
and outstanding |
— |
|
|
|
— |
|
Class B:
1,000,000 shares authorized; 1 share
issued and outstanding |
— |
|
|
|
— |
|
Commitments and
Contingencies |
|
|
|
|
PARTNERS’ CAPITAL |
— |
|
|
|
154,445 |
|
STOCKHOLDERS’
EQUITY |
|
|
|
|
Common
stock, $0.0001 par value |
|
|
|
|
Class A:
1,200,000,000 shares authorized; 175,957,183 shares issued
and outstanding |
18 |
|
|
|
— |
|
Class C:
280,000,000 shares authorized; 204,921,888 shares
issued and outstanding |
20 |
|
|
|
— |
|
Additional paid in capital |
1,472,570 |
|
|
|
— |
|
Accumulated deficit |
(20,658 |
) |
|
|
— |
|
Total
stockholders’ equity/partners’ capital |
1,451,950 |
|
|
|
154,445 |
|
Noncontrolling interest |
1,961,333 |
|
|
|
— |
|
Total
equity |
3,413,283 |
|
|
|
154,445 |
|
TOTAL LIABILITIES,
PARTNERS’ CAPITAL AND STOCKHOLDERS’ EQUITY |
$ |
4,413,059 |
|
|
|
$ |
1,085,397 |
|
|
|
|
|
|
|
|
|
|
ALTA MESA RESOURCES,
INC.CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)(in thousands) |
|
|
|
|
|
|
Successor |
|
|
Predecessor |
|
Feb 9, 2018 Through Sept 30, 2018 |
|
|
Jan 1,
2018ThroughFeb 8,
2018 |
|
Nine Months Ended Sept 30, 2017 |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net loss |
$ |
(38,134 |
) |
|
|
$ |
(14,892 |
) |
|
$ |
(14,603 |
) |
Adjustments to
reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation, depletion and amortization expense |
102,227 |
|
|
|
12,414 |
|
|
80,082 |
|
Impairment expense |
— |
|
|
|
5,560 |
|
|
29,206 |
|
Accretion
expense |
489 |
|
|
|
140 |
|
|
1,447 |
|
Amortization of deferred financing costs |
339 |
|
|
|
171 |
|
|
2,205 |
|
Amortization of debt premium |
(3,281 |
) |
|
|
— |
|
|
— |
|
Equity-based compensation expense |
8,333 |
|
|
|
— |
|
|
— |
|
Dry hole
expense |
— |
|
|
|
(45 |
) |
|
2,447 |
|
Expired
leases |
10,658 |
|
|
|
1,250 |
|
|
8,394 |
|
(Gain)
loss on derivative contracts |
63,077 |
|
|
|
(7,298 |
) |
|
(38,024 |
) |
Cash
settlements of derivative contracts |
(32,836 |
) |
|
|
(1,661 |
) |
|
1,775 |
|
Premium
paid on derivative contracts |
— |
|
|
|
— |
|
|
(520 |
) |
Interest
converted into debt |
— |
|
|
|
103 |
|
|
904 |
|
Interest
added to notes receivable due from related party |
(680 |
) |
|
|
(85 |
) |
|
(619 |
) |
Deferred
tax benefit |
(5,082 |
) |
|
|
— |
|
|
— |
|
Loss on
sale of assets and other |
81 |
|
|
|
1,923 |
|
|
— |
|
Gain on
acquisition of oil and gas properties |
— |
|
|
|
— |
|
|
(6,893 |
) |
Impact on cash from
changes in assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
(16,225 |
) |
|
|
(20,895 |
) |
|
(33,649 |
) |
Other
receivables |
972 |
|
|
|
(9,887 |
) |
|
7,382 |
|
Receivables due from related party |
(14,488 |
) |
|
|
(117 |
) |
|
169 |
|
Prepaid
expenses and other non-current assets |
8,366 |
|
|
|
9,970 |
|
|
(9,938 |
) |
Advances
from related party |
(30,589 |
) |
|
|
24,116 |
|
|
5,266 |
|
Settlement of asset retirement obligation |
(1,249 |
) |
|
|
(63 |
) |
|
(6,083 |
) |
Accounts
payable, accrued liabilities, and other liabilities |
(49,472 |
) |
|
|
25,815 |
|
|
27,308 |
|
NET CASH
PROVIDED BY OPERATING ACTIVITIES |
2,506 |
|
|
|
26,519 |
|
|
56,256 |
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
Capital
expenditures for property, plant and equipment |
(523,645 |
) |
|
|
(38,096 |
) |
|
(244,308 |
) |
Acquisitions, net of cash acquired |
(791,819 |
) |
|
|
— |
|
|
(55,236 |
) |
Proceeds
withdrawn from Trust Account |
1,042,742 |
|
|
|
— |
|
|
— |
|
Investment in equity affiliate and other, net |
(9,326 |
) |
|
|
— |
|
|
(1,515 |
) |
NET CASH
USED IN INVESTING ACTIVITIES |
(282,048 |
) |
|
|
(38,096 |
) |
|
(301,059 |
) |
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
Proceeds
from long-term debt |
162,500 |
|
|
|
60,000 |
|
|
286,065 |
|
Repayments of long-term debt |
(193,565 |
) |
|
|
(43,000 |
) |
|
(251,622 |
) |
Additions
to deferred financing costs |
(3,716 |
) |
|
|
— |
|
|
(220 |
) |
Purchase
and retirement of Class A common shares |
(14,750 |
) |
|
|
— |
|
|
— |
|
Capital
distributions |
— |
|
|
|
(68 |
) |
|
— |
|
Capital
contributions |
— |
|
|
|
— |
|
|
207,875 |
|
Proceeds
from issuance of Class A shares |
400,000 |
|
|
|
— |
|
|
— |
|
Repayment
of sponsor note |
(2,000 |
) |
|
|
— |
|
|
— |
|
Repayment
of deferred underwriting compensation |
(36,225 |
) |
|
|
— |
|
|
— |
|
Redemption of Class A common shares |
(33 |
) |
|
|
— |
|
|
— |
|
NET
CASH PROVIDED BY FINANCING ACTIVITIES |
312,211 |
|
|
|
16,932 |
|
|
242,098 |
|
NET INCREASE (DECREASE)
IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
32,669 |
|
|
|
5,355 |
|
|
(2,705 |
) |
CASH,
CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period |
388 |
|
|
|
4,990 |
|
|
7,618 |
|
CASH,
CASH EQUIVALENTS AND RESTRICTED CASH, end of period |
$ |
33,057 |
|
|
|
$ |
10,345 |
|
|
$ |
4,913 |
|
*Non-GAAP Financial Information and
Reconciliation
Adjusted EBITDAX and Adjusted EBITDA are
non-GAAP financial measures for AMR, AMH and Kingfisher Midstream,
respectively, and are used by management and external users of our
consolidated financial statements. We define Adjusted EBITDA
as net income (loss) before interest expense, depreciation and
amortization, accretion of asset retirement obligations, tax
expense, the non-cash gain (loss) on sale of assets, the non-cash
portion of gain (loss) on oil, natural gas and natural gas liquids
derivative contracts, and other items. We define Adjusted EBITDAX
as net income (loss) before interest expense, exploration expense,
depletion, depreciation and amortization, impairment of oil and
natural gas properties, accretion of asset retirement obligations,
tax expense, the non-cash gain (loss) on sale of assets, the
non-cash portion of gain (loss) on oil, natural gas and natural gas
liquids derivative contracts, and other items. The Company’s
management believes Adjusted EBITDAX and Adjusted EBITDA are useful
because it allows external users of our consolidated financial
statements, such as industry analysts, investors, lenders and
rating agencies, to more effectively evaluate our operating
performance, compare the results of our operations from period to
period and against our peers without regard to our financing
methods or capital structure and because it highlights trends in
our business that may not otherwise be apparent when relying solely
on GAAP measures. Adjusted EBITDAX and Adjusted EBITDA are not
measurements of AMR, AMH and/or Kingfisher Midstream’s financial
performance under GAAP, and should not be considered as an
alternative to net income (loss), operating income (loss) or any
other performance measure derived in accordance with GAAP or as an
alternative to net cash provided by operating activities as a
measure of AMR’s and AMH’s profitability or liquidity. Adjusted
EBITDAX and Adjusted EBITDA have significant limitations, including
that they do not reflect AMR’s, AMH’s and/or Kingfisher Midstream’s
cash requirements for capital expenditures, contractual
commitments, working capital or debt service. In addition, the
presentation of Adjusted EBITDAX and Adjusted EBITDA used herein
may not be comparable to similarly titled measures in other
companies’ reports, limiting its usefulness as a comparative
measure. The following tables set forth a reconciliation of net
income (loss) as determined in accordance with GAAP to Adjusted
EBITDAX for the periods indicated (unaudited in thousands):
EBITDA &
EBITDAX Calculation |
Successor Three Months Ended Sep 30, 2018 |
Successor Feb 9 - Sep 30, 2018 |
(Non-GAAP
Measure) |
AMR |
AMH |
KFM |
AMR |
AMH |
KFM |
|
|
|
|
|
|
|
Net income (loss) |
$ |
7,135 |
|
$ |
17,844 |
|
$ |
2,066 |
$ |
(12,544 |
) |
$ |
(39,204 |
) |
$ |
(2,847 |
) |
Net income (loss)
attributable to noncontrolling interest |
|
10,620 |
|
|
- |
|
|
- |
|
(25,590 |
) |
|
- |
|
|
- |
|
Taxes |
|
1,626 |
|
|
- |
|
|
- |
|
(5,865 |
) |
|
7 |
|
|
- |
|
Interest |
|
12,348 |
|
|
11,008 |
|
|
1,340 |
|
29,571 |
|
|
26,565 |
|
|
3,006 |
|
Loss on sale of assets
and other |
|
18 |
|
|
18 |
|
|
- |
|
81 |
|
|
81 |
|
|
- |
|
Loss on derivative
contracts |
|
11,212 |
|
|
11,212 |
|
|
- |
|
63,077 |
|
|
63,077 |
|
|
- |
|
Settlements of
derivative contracts |
|
(13,867 |
) |
|
(13,867 |
) |
|
- |
|
(32,836 |
) |
|
(32,836 |
) |
|
- |
|
Depreciation, depletion
& amortization expense |
|
52,877 |
|
|
45,623 |
|
|
7,254 |
|
102,227 |
|
|
83,068 |
|
|
19,159 |
|
Accretion expense |
|
226 |
|
|
226 |
|
|
- |
|
489 |
|
|
489 |
|
|
- |
|
Stock compensation
expense |
|
604 |
|
|
325 |
|
|
277 |
|
8,333 |
|
|
6,714 |
|
|
784 |
|
EBITDA |
|
82,799 |
|
|
72,389 |
|
|
10,937 |
|
126,943 |
|
|
107,961 |
|
|
20,102 |
|
Exploration
expense |
|
1,029 |
|
|
1,029 |
|
|
- |
|
14,067 |
|
|
14,067 |
|
|
- |
|
EBITDAX |
|
83,828 |
|
|
73,418 |
|
|
10,937 |
|
141,010 |
|
|
122,028 |
|
|
20,102 |
|
Non-recurring business
combination expense |
|
- |
|
|
- |
|
|
- |
|
25,734 |
|
|
25,734 |
|
|
- |
|
Adjusted
EBITDAX |
$ |
83,828 |
|
$ |
73,418 |
|
$ |
10,937 |
$ |
166,744 |
|
$ |
147,762 |
|
$ |
20,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Successor Company and
Period:
The financial statements and certain footnote
presentations separate the Company’s presentations into two
distinct periods, the period before the consummation of the
Business Combination, which is from January 1, 2018 to February 8,
2018 (“2018 Predecessor Period”) and the period after the
consummation of the Business Combination, which is from February 9,
2018 to September 30, 2018 (“Successor Period”), to indicate the
application of the different basis of accounting between the
periods presented. The three months ended September 30, 2017
is referred to as the “2017 Predecessor Period”. Alta Mesa
Upstream is the “Predecessor” for periods prior to the Business
Combination, which do not include the consolidation of the Company
and Kingfisher Midstream. For the periods after the Business
Combination, Alta Mesa Resources, including the consolidation of
Alta Mesa Upstream and Kingfisher Midstream, is the
“Successor”.
Alta Mesa Resources (NASDAQ:AMR)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Alta Mesa Resources (NASDAQ:AMR)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024