COST: 2.27 $B
VOLUMES: 38.3 MBOE/d
ACRES: 78000 Acres
AUSTIN, Texas, Jan. 10, 2020 /PRNewswire/ -- Parsley Energy, Inc. (NYSE: PE) ("Parsley," or "Parsley Energy") today announced that it has completed its acquisition of Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak"). The acquisition was previously approved by Parsley shareholders at a special meeting held on January 9, 2020, where more than 99.5% of the votes cast by Parsley stockholders were voted in favor of the proposal to issue Parsley common stock to the holders of Jagged Peak common stock as consideration for the acquisition.
Acquisition Details
At the effective time of the acquisition, each share of Jagged Peak common stock was converted into the right to receive 0.447 shares of Parsley Class A common stock. As a result of the transaction, Jagged Peak common stock will no longer be listed for trading on NYSE, and Jagged Peak will suspend its reporting obligations under the Securities Exchange Act of 1934.
In connection with the closing of the transaction, Parsley announced the appointment of S. Wil VanLoh, Jr. and Jim Kleckner to its Board of Directors. Mr. VanLoh is the Founder and Chief Executive Officer of Quantum Energy Partners and formerly served as a Jagged Peak director. Mr. Kleckner was formerly President and Chief Executive Officer of Jagged Peak and also served as a Jagged Peak director.
Management Commentary
"We first publicly announced our proposed combination with Jagged Peak less than ninety days ago," said Matt Gallagher, Parsley's President and CEO. "This collective expediency to closing allows our team to hit the ground running on these complementary, high margin assets and start capturing tangible synergies that will enhance value for our combined shareholder base. Execution will continue to speak louder than words, and our integration efforts will retain the sense of urgency and accountability that defined our successful 2019 action plan. Ultimately, we expect that the culmination of this hard work will be a more capital efficient enterprise with more free cash flow. Finally, I am excited to formally welcome Wil and Jim to our Board. I believe the Company and our shareholders will be well served by their sound financial acumen, considerable experience, and extensive network of industry contacts."
About Parsley Energy, Inc.
Parsley Energy, Inc. is an independent oil and natural gas company focused on the acquisition, development, exploration, and production of unconventional oil and natural gas properties in the Permian Basin. For more information, visit Parsley's website at www.parsleyenergy.com.
Cautionary Statements Regarding Forward Looking Statements
The foregoing contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that Parsley expects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements contained in this press release specifically include statements relating to benefits of the acquisition of Jagged Peak. The words "estimate," "project," "predict," "believe," "expect," "anticipate," "potential," "could," "may," "foresee," "plan," "will," "guidance," "outlook," "goal" or other similar expressions that convey the uncertainty of future events or outcomes are intended to identify forward-looking statements, which generally are not historical in nature. However, the absence of these words does not mean that the statements are not forward-looking. These statements are based on certain assumptions and analyses made by Parsley based on management's experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of performance. Although Parsley believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond Parsley's control, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the risk factors discussed or referenced in Parsley's most recent Annual Report on Form 10-K and other filings with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made, and Parsley undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
View original content to download multimedia:http://www.prnewswire.com/news-releases/parsley-energy-completes-acquisition-of-jagged-peak-energy-300984916.html
SOURCE Parsley Energy, Inc.
DENVER, Nov. 7, 2019 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the third quarter ended September 30, 2019.
Third Quarter Results
During the third quarter of 2019, the Company turned online 17 gross operated wells and reported average daily oil production for the quarter of 30.0 MBbls per day, at the midpoint of the Company's previously announced guidance range of 29.4 – 30.6 MBbls per day. Total equivalent production averaged 39.3 MBoe per day for the third quarter. Third quarter production mix was comprised of 76% oil, 13% NGLs, and 11% natural gas, and is unchanged from the prior quarter.
For the third quarter of 2019, the Company reported net income of $30.6 million, or $0.14 per diluted common share. Net loss for the third quarter of 2018 was $26.6 million, or $0.12 per diluted common share. Adjusted net income (a non-GAAP measure) for the third quarter of 2019, was $21.9 million, or $0.10 per diluted common share, compared to $39.3 million, or $0.18 per diluted common share for the same period in 2018. Adjusted net income (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as certain equity-based compensation, non-cash mark-to-market gains or losses on derivatives and impairment expense, further adjusted for any associated changes in estimated income tax expense. Adjusted EBITDAX (a non-GAAP measure) for the third quarter of 2019 was $108.2 million, a decrease of $10.4 million from the third quarter of 2018.
Please reference the reconciliations of these non-GAAP measures to the most directly comparable GAAP measures at the end of this release.
Revenue for the third quarter of 2019 was $150.1 million, compared to $155.4 million in the third quarter of 2018. The decrease in revenue for the third quarter of 2019 compared to the same period in 2018 was primarily due to an 11% decrease in unhedged realized pricing on a per Boe basis. Average realized prices for the third quarter of 2019 are included in the table below.
Three Months Ended September 30, 2019 | |||||||
Before the Effects of | After the Effects of | ||||||
Oil ($/Bbl) | $ | 53.55 | $ | 52.29 | |||
NGL ($/Bbl) | $ | 3.47 | $ | 3.47 | |||
Gas ($/Mcf) | $ | 0.31 | $ | 0.31 | |||
Boe ($/Boe) | $ | 41.51 | $ | 40.54 |
Capital expenditures for DC&E activities were $162.6 million for the three months ended September 30, 2019. Operated and non-operated activity during the quarter included drilling 19 gross (15.8 net) and completing 25 gross (18.3 net) wells. A portion of the capital spent during the third quarter relates to 20 gross (19.6 net) operated wells that were in various stages of being drilled or completed at September 30, 2019. Including capital expenditures for infrastructure of $4.5 million, and leasehold acquisition costs of $17.7 million, total capital expenditures for the quarter were $184.8 million.
The table below provides a comparative breakout of the Company's capital expenditures for the periods indicated:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Acquisitions | |||||||||||||||
Proved properties | $ | 375 | $ | — | $ | 7,782 | $ | — | |||||||
Unproved properties | 17,316 | 7,575 | 25,295 | 18,670 | |||||||||||
Drill, complete, and equip costs | 162,571 | 151,797 | 451,261 | 535,590 | |||||||||||
Infrastructure costs | 4,520 | 5,439 | 25,678 | 13,440 | |||||||||||
Exploration costs | 3 | 23 | 3 | 24 | |||||||||||
Total oil and gas capital expenditures | $ | 184,785 | $ | 164,834 | $ | 510,019 | $ | 567,724 |
The Company continues to drive down its DC&E costs through continued efficiency gains. DC&E costs averaged approximately $1,160 per lateral foot in the third quarter of 2019. Year-to-date the Company has averaged approximately $1,200 per lateral foot, compared to its full-year 2019 goal of $1,250 per lateral foot.
Operational Updates
In the Company's Whiskey River asset, the Company brought online its Coriander project. This project was the Company's first six-well co-development project. The average lateral length of these wells was 8,535 feet and had an average DC&E per lateral foot cost of approximately $1,090. These wells were brought online in late August and produced a pad-average peak IP-30 of 102 Boe per day per 1,000 foot (84% oil).
In mid-October, the Company brought online its second co-development project, the Venom project which consisted of eight wells in the Whiskey River area. The average lateral length of these wells was 7,900 feet and had an average DC&E per lateral foot cost of approximately $1,220. Given the timing of the wells being brought online, meaningful production information is not yet available.
Guidance Update
Due to the definitive merger agreement with Parsley Energy, Inc. ("Parsley"), Jagged Peak has discontinued providing guidance and long-term outlook information regarding its results of operations and does not intend to update the previously issued guidance and long-term outlook information, including the guidance provided in the Company's August 8, 2019 press release announcing its second quarter 2019 financial and operating results (the "second quarter earnings release"). Accordingly, investors are cautioned not to rely on historical forward-looking statements regarding guidance and long-term outlook information, including any such information provided in the second quarter earnings release, as those forward-looking statements were the estimates of management only as of the date provided, have not and will not be updated and were subject to the specific risks and uncertainties that accompanied such forward-looking statements.
Financial Update
At the end of the third quarter of 2019, the Company had $215.0 million drawn on its revolving credit facility and $10.6 million of cash on the balance sheet, resulting in total liquidity of $335.6 million. Net debt to LTM adjusted EBITDAX (a non-GAAP measure) was 1.7x as of the end of the third quarter. Due to the definitive merger agreement with Parsley, the Company has received a waiver from its bank group to postpone its Fall borrowing base redetermination.
Since the hedging update on August 8, 2019, the Company has added to its 2020 WTI swaps, which are now at 20,000 Bbls per day of oil. These additions are included in the commodity hedges schedule at the end of this release.
Conference Call
Jagged Peak will host a short conference call and webcast to discuss its third quarter 2019 financial and operating results on November 8, 2019 at 9:00 am MT (11:00 am ET). This call will not include a Q&A session. The call will be webcast and accessible via the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. Dial-in information for this call is included below:
Phone Number | Conference ID | ||
Live Participant (Domestic) | 1-877-823-8605 | 9192955 | |
Live Participant (International) | 1-647-689-5644 | 9192955 | |
Replay(1) (Domestic) | 1-800-585-8367 | 9192955 | |
Replay(1) (International) | 1-416-621-4642 | 9192955 |
(1) Replay available from 2:00 PM Eastern Time on November 8, 2019 through 12:00 midnight Eastern Time on November 15, 2019 |
Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, equity-based compensation expense, income taxes, contract termination fees, gains or losses on sales of assets, and net gains or losses on derivatives less net cash from/for derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows investors to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a non-GAAP performance measure used by management to evaluate financial performance, prior to non-cash market-to-market gains or losses on derivatives, impairment expense, exploratory dry hole costs, gain or loss on the sale of property, certain one-time or unusual items, such as certain equity-based compensation, contract termination fees, and the associated changes in estimated income tax. Management believes adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
Net Debt to LTM Adjusted EBITDAX
Net debt to LTM adjusted EBITDAX is a non-GAAP measure, which is defined as the face value of the Company's long-term debt, including its senior unsecured notes and amounts drawn on its credit facility, less cash and cash equivalents at quarter end, divided by the Company's last twelve month adjusted EBITDAX, as defined above.
No Offer or Solicitation
This release includes information related to a proposed business combination transaction (the "Transaction") between Jagged Peak and Parsley. This release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, in any jurisdiction, pursuant to the Transaction or otherwise, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this release in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Important Additional Information
In connection with the Transaction, Parsley has filed with the U.S. Securities and Exchange Commission ("SEC") a registration statement on Form S-4, that will include a joint proxy statement of Jagged Peak and Parsley and a prospectus of Parsley. The Transaction will be submitted to Jagged Peak's stockholders and Parsley's stockholders for their consideration. Jagged Peak and Parsley may also file other documents with the SEC regarding the Transaction. The definitive joint proxy statement/prospectus will be sent to the stockholders of Parsley and Jagged Peak. This release is not a substitute for the registration statement and joint proxy statement/prospectus that will be filed with the SEC or any other documents that Parsley or Jagged Peak may file with the SEC or send to stockholders of Parsley or Jagged Peak in connection with the Transaction. INVESTORS AND SECURITY HOLDERS OF JAGGED PEAK AND PARSLEY ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS REGARDING THE TRANSACTION WHEN IT BECOMES AVAILABLE AND ALL OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSACTION AND RELATED MATTERS.
Investors and security holders will be able to obtain free copies of the registration statement and the joint proxy statement/prospectus (when available) and all other documents filed or that will be filed with the SEC by Parsley or Jagged Peak through the website maintained by the SEC at http://www.sec.gov. Copies of documents filed with the SEC by Jagged Peak will be made available free of charge on Jagged Peak's website at http://www.jaggedpeakenergy.com, under the heading "SEC Filings," or by directing a request to Investor Relations, Jagged Peak Energy Inc., 1401 Lawrence Street, Suite 1800, Denver, CO 80202, Tel. No. (720) 215-3754. Copies of documents filed with the SEC by Parsley will be made available free of charge on Parsley's website at http://www.parsleyenergy.com/investors or by directing a request to Investor Relations, Parsley Energy, Inc., 303 Colorado Street, Suite 3000, Austin, TX 78701, Tel. No. (512) 505-5199.
Participants in the Solicitation
Parsley, Jagged Peak and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect to the Transaction.
Information regarding Jagged Peak's directors and executive officers is contained in the proxy statement for Jagged Peak's 2019 Annual Meeting of Stockholders filed with the SEC on April 10, 2019, and certain of its Current Reports on Form 8-K. You can obtain a free copy of this document at the SEC's website at http://www.sec.gov or by accessing Jagged Peak's website at http://www.jaggedpeakenergy.com. Information regarding Parsley's executive officers and directors is contained in the proxy statement for the Parsley's 2019 Annual Meeting of Stockholders filed with the SEC on April 8, 2019 and certain of its Current Reports on Form 8-K. You can obtain a free copy of this release at the SEC's website at www.sec.gov or by accessing the Parsley's website at http://www.parsleyenergy.com/investors.
Investors may obtain additional information regarding the interests of those persons and other persons who may be deemed participants in the Transaction by reading the joint proxy statement/prospectus regarding the Transaction when it becomes available. You may obtain free copies of this release as described above.
Forward-Looking Statements and Cautionary Statements
The foregoing contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included in this release that address activities, events or developments that Parsley or Jagged Peak expects, believes or anticipates will or may occur in the future are forward-looking statements. Words such as "estimate," "project," "predict," "believe," "expect," "anticipate," "potential," "create," "intend," "could," "may," "foresee," "plan," "will," "guidance," "look," "outlook," "goal," "future," "assume," "forecast," "build," "focus," "work," "continue" or the negative of such terms or other variations thereof and words and terms of similar substance used in connection with any discussion of future plans, actions, or events identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements include, but are not limited to, statements regarding the Transaction, pro forma descriptions of the combined company and its operations, integration and transition plans, synergies, opportunities and anticipated future performance. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements included in this release. These include the expected timing and likelihood of completion of the Transaction, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals of the Transaction that could reduce anticipated benefits or cause the parties to abandon the Transaction, the ability to successfully integrate the businesses, the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement, the possibility that stockholders of Parsley may not approve the issuance of new shares of common stock in the Transaction or that stockholders of Jagged Peak may not approve the merger agreement, the risk that the parties may not be able to satisfy the conditions to the Transaction in a timely manner or at all, risks related to disruption of management time from ongoing business operations due to the Transaction, the risk that any announcements relating to the Transaction could have adverse effects on the market price of Parsley's common stock or Jagged Peak's common stock, the risk that the Transaction and its announcement could have an adverse effect on the ability of Parsley and Jagged Peak to retain customers and retain and hire key personnel and maintain relationships with their suppliers and customers and on their operating results and businesses generally, the risk the pending Transaction could distract management of both entities and they will incur substantial costs, the risk that problems may arise in successfully integrating the businesses of the companies, which may result in the combined company not operating as effectively and efficiently as expected, the risk that the combined company may be unable to achieve synergies or it may take longer than expected to achieve those synergies and other important factors that could cause actual results to differ materially from those projected. All such factors are difficult to predict and are beyond Parsley's or Jagged Peak's control, including those detailed in Parsley's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that are available on its website at http://www.parsleyenergy.com/investors and on the SEC's website at http://www.sec.gov, and those detailed in Jagged Peak's annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K that are available on Jagged Peak's website at http://www.jaggedpeakenergy.com and on the SEC's website at http://www.sec.gov. All forward-looking statements are based on assumptions that Parsley or Jagged Peak believe to be reasonable but that may not prove to be accurate. Any forward-looking statement speaks only as of the date on which such statement is made, and Parsley and Jagged Peak undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Jagged Peak Energy Inc. | |||||||||||||||
Selected Operating Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Production volumes: | |||||||||||||||
Oil (MBbls) | 2,758 | 2,531 | 7,937 | 6,947 | |||||||||||
Natural gas (MMcf) | 2,331 | 2,139 | 6,834 | 6,025 | |||||||||||
NGLs (MBbls) | 469 | 436 | 1,320 | 1,001 | |||||||||||
Total (MBoe) | 3,616 | 3,323 | 10,396 | 8,952 | |||||||||||
Average daily production volumes: | |||||||||||||||
Oil (Bbls/d) | 29,980 | 27,507 | 29,073 | 25,447 | |||||||||||
Natural gas (Mcf/d) | 25,339 | 23,245 | 25,034 | 22,069 | |||||||||||
NGLs (Bbls/d) | 5,096 | 4,738 | 4,836 | 3,665 | |||||||||||
Total (Boe/d) | 39,299 | 36,118 | 38,081 | 32,790 | |||||||||||
Average Sales Prices Excluding Realized Hedge Settlements: | |||||||||||||||
Oil (per Bbl) | $ | 53.55 | $ | 55.95 | $ | 52.52 | $ | 59.15 | |||||||
Natural gas (per Mcf) | $ | 0.31 | $ | 1.19 | $ | 0.13 | $ | 1.29 | |||||||
NGLs (per Bbl) | $ | 3.47 | $ | 24.81 | $ | 6.58 | $ | 23.71 | |||||||
Combined (per Boe) | $ | 41.51 | $ | 46.64 | $ | 41.02 | $ | 49.42 | |||||||
Average Sales Prices Including Realized Hedge Settlements: | |||||||||||||||
Oil (per Bbl) | $ | 52.29 | $ | 53.45 | $ | 50.67 | $ | 54.30 | |||||||
Natural gas (per Mcf) | $ | 0.31 | $ | 1.19 | $ | 0.13 | $ | 1.29 | |||||||
NGLs (per Bbl) | $ | 3.47 | $ | 24.81 | $ | 6.58 | $ | 23.71 | |||||||
Combined (per Boe) | $ | 40.54 | $ | 44.73 | $ | 39.61 | $ | 45.66 | |||||||
Average Operating Costs (per Boe): | |||||||||||||||
Lease operating expenses | $ | 4.85 | $ | 3.37 | $ | 4.50 | $ | 3.51 | |||||||
Production and ad valorem tax expenses | $ | 3.11 | $ | 2.86 | $ | 3.09 | $ | 2.95 | |||||||
Depletion, depreciation, amortization and accretion | $ | 18.27 | $ | 17.35 | $ | 17.93 | $ | 17.93 | |||||||
General and administrative expense (before equity-based compensation expense) | $ | 2.65 | $ | 2.92 | $ | 2.80 | $ | 3.22 |
Jagged Peak Energy Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
September 30, 2019 | December 31, 2018 | |||||||
(in thousands) | ||||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 10,603 | $ | 35,229 | ||||
Other current assets | 113,226 | 165,905 | ||||||
Property and equipment, net | 1,818,187 | 1,530,285 | ||||||
Other noncurrent assets | 64,729 | 35,722 | ||||||
Total assets | $ | 2,006,745 | $ | 1,767,141 | ||||
Liabilities and Stockholders' Equity: | ||||||||
Current liabilities | $ | 224,387 | $ | 187,982 | ||||
Long-term debt | 705,269 | 489,239 | ||||||
Deferred income taxes | 118,432 | 124,418 | ||||||
Other long-term liabilities | 22,787 | 17,552 | ||||||
Stockholders' equity | 935,870 | 947,950 | ||||||
Total liabilities and stockholders' equity | $ | 2,006,745 | $ | 1,767,141 |
Jagged Peak Energy Inc. | |||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Revenues | |||||||||||||||
Oil, natural gas and NGL sales | $ | 150,065 | $ | 154,964 | $ | 426,408 | $ | 442,421 | |||||||
Other operating revenues | — | 414 | 9 | 686 | |||||||||||
Total revenues | 150,065 | 155,378 | 426,417 | 443,107 | |||||||||||
Operating Expenses | |||||||||||||||
Lease operating expenses | 17,554 | 11,184 | 46,758 | 31,390 | |||||||||||
Production and ad valorem taxes | 11,263 | 9,517 | 32,100 | 26,437 | |||||||||||
Exploration | 3 | 23 | 3 | 24 | |||||||||||
Depletion, depreciation, amortization and accretion | 66,069 | 57,660 | 186,365 | 160,552 | |||||||||||
Impairment of unproved oil and natural gas properties | 31,817 | — | 32,763 | 53 | |||||||||||
Other operating expenses | — | 19 | 3,206 | 65 | |||||||||||
General and administrative (before equity-based compensation) | 9,571 | 9,707 | 29,116 | 28,800 | |||||||||||
General and administrative, equity-based compensation | 4,098 | 2,614 | 11,025 | 80,671 | |||||||||||
Total operating expenses | 140,375 | 90,724 | 341,336 | 327,992 | |||||||||||
Income (Loss) from Operations | 9,690 | 64,654 | 85,081 | 115,115 | |||||||||||
Other Income and Expense | |||||||||||||||
Gain (loss) on commodity derivatives | 39,421 | (96,516) | (85,702) | (110,426) | |||||||||||
Gain on sale of assets | — | 6,225 | — | 6,225 | |||||||||||
Interest expense and other | (9,956) | (8,244) | (27,788) | (17,065) | |||||||||||
Total other income (loss) | 29,465 | (98,535) | (113,490) | (121,266) | |||||||||||
Income (Loss) before Income Taxes | 39,155 | (33,881) | (28,409) | (6,151) | |||||||||||
Income tax expense (benefit) | 8,597 | (7,315) | (5,986) | 14,737 | |||||||||||
Net Income (Loss) | $ | 30,558 | $ | (26,566) | $ | (22,423) | $ | (20,888) | |||||||
Net income (loss) per common share: | |||||||||||||||
Basic | $ | 0.14 | $ | (0.12) | $ | (0.11) | $ | (0.10) | |||||||
Diluted | $ | 0.14 | $ | (0.12) | $ | (0.11) | $ | (0.10) | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 213,403 | 213,180 | 213,349 | 213,109 | |||||||||||
Diluted | 213,700 | 213,180 | 213,349 | 213,109 |
Jagged Peak Energy Inc. | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands) | |||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | $ | 30,558 | $ | (26,566) | $ | (22,423) | $ | (20,888) | |||||||
Adjustments to reconcile to net cash provided by operating activities: | |||||||||||||||
Depletion, depreciation, amortization and accretion | 66,069 | 57,660 | 186,365 | 160,552 | |||||||||||
Impairment of unproved oil and natural gas properties | 31,817 | — | 32,763 | 53 | |||||||||||
Amortization of debt issuance costs | 594 | 732 | 1,770 | 1,753 | |||||||||||
Deferred income taxes | 8,597 | (7,315) | (5,986) | 14,737 | |||||||||||
Equity-based compensation | 4,098 | 2,614 | 11,025 | 80,671 | |||||||||||
(Gain) Loss on commodity derivatives | (39,421) | 96,516 | 85,702 | 110,426 | |||||||||||
Net cash receipts (payments) on settled derivatives | (3,484) | (6,347) | (14,651) | (33,705) | |||||||||||
Gain on sale of oil and natural gas properties | — | (6,225) | — | (6,225) | |||||||||||
Other | (91) | (78) | (98) | (234) | |||||||||||
Change in operating assets and liabilities: | |||||||||||||||
Accounts receivable and other current assets | (1,688) | (11,305) | (2,407) | (29,854) | |||||||||||
Accounts payable and accrued liabilities | 7,405 | 18,247 | 641 | 40,461 | |||||||||||
Net cash provided by operating activities | 104,454 | 117,933 | 272,701 | 317,747 | |||||||||||
Cash Flows from Investing Activities | |||||||||||||||
Leasehold and acquisitions costs | (17,364) | (7,801) | (32,931) | (18,854) | |||||||||||
Development of oil and natural gas properties | (165,816) | (158,091) | (477,681) | (551,059) | |||||||||||
Other capital expenditures | (385) | (1,364) | (837) | (3,245) | |||||||||||
Proceeds from sale of oil and natural gas properties | — | 8,377 | — | 8,377 | |||||||||||
Net cash used in investing activities | (183,565) | (158,879) | (511,449) | (564,781) | |||||||||||
Cash Flows from Financing Activities | |||||||||||||||
Proceeds from senior notes | — | — | — | 500,000 | |||||||||||
Proceeds from senior secured revolving credit facility | 65,000 | — | 215,000 | 165,000 | |||||||||||
Repayment of senior secured revolving credit facility | — | — | — | (320,000) | |||||||||||
Debt issuance costs | (56) | (607) | (197) | (13,350) | |||||||||||
Employee tax withholding for settlement of equity compensation awards | (26) | — | (681) | (200) | |||||||||||
Net cash provided by financing activities | 64,918 | (607) | 214,122 | 331,450 | |||||||||||
Net Change in Cash and Cash Equivalents | (14,193) | (41,553) | (24,626) | 84,416 | |||||||||||
Cash and Cash Equivalents, Beginning of Period | 24,796 | 135,492 | 35,229 | 9,523 | |||||||||||
Cash and Cash Equivalents, End of Period | $ | 10,603 | $ | 93,939 | $ | 10,603 | $ | 93,939 |
Jagged Peak Energy Inc. | ||||||
Commodity Hedges | ||||||
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. The schedule below summarizes the hedges the Company has in place to hedge the price of WTI and the differential between the Cushing and Midland oil prices. | ||||||
As of November 6, 2019, the Company had the following commodity hedges in place for future production: | ||||||
Production Period | Volumes | Weighted Average Price | ||||
(MBbls) | ($/Bbl) | |||||
Oil Swaps: | ||||||
Fourth Quarter 2019 | 1,932 | $ | 59.95 | |||
First Quarter 2020 | 1,820 | $ | 58.25 | |||
Second Quarter 2020 | 1,820 | $ | 58.25 | |||
Third Quarter 2020 | 1,840 | $ | 58.25 | |||
Fourth Quarter 2020 | 1,840 | $ | 58.25 | |||
Full Year 2020 | 7,320 | $ | 58.25 | |||
Oil Basis Swaps: | ||||||
Fourth Quarter 2019 | 2,300 | $ | (4.79) | |||
First Quarter 2020 | 2,366 | $ | (1.31) | |||
Second Quarter 2020 | 2,366 | $ | (1.31) | |||
Third Quarter 2020 | 2,392 | $ | (1.31) | |||
Fourth Quarter 2020 | 2,392 | $ | (1.31) | |||
Full Year 2020 | 9,516 | $ | (1.31) |
Jagged Peak Energy Inc. | |||||||||||||||
Reconciliation of Adjusted Net Income, Adjusted EBITDAX and Adjusted EBITDAX Margin | |||||||||||||||
(Unaudited) | |||||||||||||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands, except for per share and Boe metrics) | |||||||||||||||
Adjusted Net Income (Loss) | |||||||||||||||
Net income (loss) | $ | 30,558 | $ | (26,566) | $ | (22,423) | $ | (20,888) | |||||||
Adjustments to reconcile to adjusted net income | |||||||||||||||
Impairment of unproved oil and natural gas properties | 31,817 | — | 32,763 | 53 | |||||||||||
(Gain) loss on commodity derivatives, net, less net cash for/from derivative settlements | (42,905) | 90,169 | 71,051 | 76,721 | |||||||||||
Equity-based compensation expense related to allocated management incentive units (1) | — | — | — | 74,470 | |||||||||||
Contract termination fee (2) | — | — | 3,200 | — | |||||||||||
Gain on sale of assets | — | (6,225) | — | (6,225) | |||||||||||
Income tax effect for the above items | 2,435 | (18,124) | (22,549) | (15,218) | |||||||||||
Adjusted net income | $ | 21,905 | $ | 39,254 | $ | 62,042 | $ | 108,913 | |||||||
Adjusted net income per basic common share | $ | 0.10 | $ | 0.18 | $ | 0.29 | $ | 0.51 | |||||||
Adjusted net income per diluted common share | $ | 0.10 | $ | 0.18 | $ | 0.29 | $ | 0.51 | |||||||
Basic common shares | 213,403 | 213,180 | 213,349 | 213,109 | |||||||||||
Diluted common shares (3) | 213,700 | 213,675 | 213,458 | 213,192 | |||||||||||
Adjusted EBITDAX | |||||||||||||||
Net income (loss) | $ | 30,558 | $ | (26,566) | $ | (22,423) | $ | (20,888) | |||||||
Adjustments to reconcile to adjusted EBITDAX | |||||||||||||||
Interest expense, net of capitalized | 9,974 | 8,256 | 27,683 | 17,095 | |||||||||||
Income tax expense (benefit) | 8,597 | (7,315) | (5,986) | 14,737 | |||||||||||
Depletion, depreciation, amortization and accretion | 66,069 | 57,660 | 186,365 | 160,552 | |||||||||||
Impairment of unproved oil and natural gas properties | 31,817 | — | 32,763 | 53 | |||||||||||
Contract termination fee (2) | — | — | 3,200 | — | |||||||||||
Exploration expenses | 3 | 23 | 3 | 24 | |||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements | (42,905) | 90,169 | 71,051 | 76,721 | |||||||||||
Equity-based compensation expense | 4,098 | 2,614 | 11,025 | 80,671 | |||||||||||
Gain on sale of assets | — | (6,225) | — | (6,225) | |||||||||||
Adjusted EBITDAX | $ | 108,211 | $ | 118,616 | $ | 303,681 | $ | 322,740 | |||||||
Total production (MBoe) | 3,616 | 3,323 | 10,396 | 8,952 | |||||||||||
Adjusted EBITDAX margin per Boe (4) | $ | 29.93 | $ | 35.70 | $ | 29.21 | $ | 36.05 |
(1) | In connection with the IPO, management incentive units were converted to common stock. A portion of this common stock was transferred to JPE Management Holdings LLC and became subject to the terms and conditions of the amended and restated JPE Management Holdings LLC limited liability company agreement (the "Holdco Agreement"). The compensation expense related to these shares was primarily recognized ratably as they vested according to the terms of the Holdco Agreement. However, in February 2018, the Company incurred $71.3 million in accelerated compensation expense related to the modification of service requirements. Only compensation expense related to management incentive units allocated at the time of the IPO is excluded from the calculation of adjusted net income. |
(2) | Contract termination fee relates to the early termination of a frac fleet contract. These amounts are included as a part of Other operating expenses on the Condensed Consolidated Statements of Operations. |
(3) | Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding restricted stock unit and performance stock unit awards. |
(4) | Adjusted EBITDAX margin is calculated as Adjusted EBITDAX divided by total production, expressed as adjusted EBITDAX per Boe. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-third-quarter-2019-financial-and-operating-results-300954254.html
SOURCE Jagged Peak Energy Inc.
DENVER, Oct. 25, 2019 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") today announced that it plans to release its third quarter 2019 earnings and operational update after market close on November 7, 2019, and will host a conference call to discuss those results and updates on November 8, 2019 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time). This call will not include a Q&A session.
To join the live call, please dial 1-877-823-8605 (1-647-689-5644 international) with the conference ID 9192955. The call will be webcast live and accessible on the Investor Relations section of the Company's website at www.jaggedpeakenergy.com.
A telephone replay of the call will be available through November 15, 2019 by dialing 1-800-585-8367 (1-416-621-4642 international) with the conference ID 9192955. Additionally, a replay will be available on the Company's website approximately two hours after the conference call.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas. For more information, visit our website at www.jaggedpeakenergy.com.
View original content to download multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-schedules-third-quarter-2019-earnings-and-operational-update-conference-call-300945656.html
SOURCE Jagged Peak Energy Inc.
NEW YORK, Oct. 14, 2019 /PRNewswire/ -- Bragar Eagel & Squire, P.C. is investigating potential claims against the board of directors of Jagged Peak Energy Inc. (NYSE: JAG) on behalf of Jagged Peak shareholders concerning the proposed merger with Parsely Energy, Inc.
Click here to participate in the action.
Pursuant to the proposed transaction, announced on October 14, 2019 and valued at $2.27 billion, Jagged Peak shareholders will receive 0.447 shares of Parsely common stock for each share of Jagged Peak common stock owned. The investigation focuses on whether Jagged Peak and its board of directors violated the federal securities laws and/or breached their fiduciary duties to the Company's shareholders by failing to conduct a fair process and whether and by how much the proposed transaction undervalues the Company.
If you own Jagged Peak shares, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at investigations@bespc.com, or by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning our investigation of Jagged Peak please go to https://bespc.com/jag-2/. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
View original content to download multimedia:http://www.prnewswire.com/news-releases/bragar-eagel--squire-pc-is-investigating-the-board-of-directors-of-jagged-peak-energy-inc-nyse-jag-on-behalf-of-jagged-peak-shareholders-and-encourages-jagged-peak-investors-to-contact-the-firm-300938195.html
SOURCE Bragar Eagel & Squire, P.C.
SAN DIEGO, Oct. 14, 2019 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged") breached their fiduciary duties in connection with the proposed sale of the Company to Parsley Energy, Inc. (NYSE: PE) ("Parsley").
On October 14, 2019, Jagged announced that it had signed a definitive merger agreement with Parsley. Under the terms of the agreement, Jagged shareholders will receive a fixed exchange ratio of 0.447 shares of Parsley Class A common stock for each share of Jagged common stock they own; this represents $7.59 per Jagged share based on Parsley's closing price on October 11, 2019.
The investigation concerns whether the Jagged board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Jagged shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given one Wall Street analyst has a $14.00 price target on the stock. The 52-week high for Jagged was $14.26.
If you are a shareholder of Jagged and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing, please include a phone number.
Additionally, you can [Click here to join this action]. There is no cost or obligation to you.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
[Click here to join this action]
View original content:http://www.prnewswire.com/news-releases/jagged-jag-alert-johnson-fistel-investigates-proposed-sale-of-jagged-peak-energy-inc-are-shareholders-getting-a-fair-deal-300937815.html
SOURCE Johnson Fistel, LLP
AUSTIN, Texas and DENVER, Oct. 14, 2019 /PRNewswire/ -- Parsley Energy, Inc. (NYSE: PE) ("Parsley," or "Parsley Energy") and Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak") today announced they have entered into a definitive merger agreement under which Parsley will acquire Jagged Peak in an all-stock transaction valued at approximately $2.27 billion, including Jagged Peak's net debt of approximately $625 million as of June 30, 2019. Under the terms of the agreement, Jagged Peak shareholders will receive a fixed exchange ratio of 0.447 shares of Parsley Class A common stock for each share of Jagged Peak common stock they own. This represents $7.59 per Jagged Peak share based on Parsley's closing price on October 11, 2019, and a premium of 1.5% compared to Jagged Peak's 30-day volume weighted average price and 11.2% compared to Jagged Peak's closing price on October 11, 2019.
The transaction, which is expected to close in the first quarter of 2020, has been unanimously approved by each company's board of directors. Following the close of the transaction, Parsley shareholders will own approximately 77% of the combined company, and Jagged Peak shareholders will own approximately 23% of the combined company, in each case on a fully diluted basis. The all-stock transaction is intended to be tax-free to Jagged Peak shareholders.
Key Transaction Highlights
Management Commentary
"The combination of Parsley and Jagged Peak is a natural fit," said Matt Gallagher, Parsley's President and CEO. "Jagged Peak's oily, high-margin asset base slots in nicely to our returns-focused development approach, its acreage footprint and water infrastructure dovetails into our legacy Delaware Basin position, and its corporate culture aligns with our core values. In short, we now have a premier Delaware Basin business that rivals our foundational Midland Basin business. This transaction also creates tangible synergies that will enhance our corporate free cash flow profile and will be shared by the combined shareholder base. Ultimately, I am proud of the high level of execution Parsley has delivered throughout 2019, and I am excited by the prospects of what the combination of Parsley and Jagged Peak can deliver for shareholders in 2020."
Jim Kleckner, President and Chief Executive Officer of Jagged Peak, commented, "The combined assets of Jagged Peak and Parsley Energy are a great fit that create a stronger combined Permian company. The pro-forma company provides our shareholders with premier acreage in both the Midland and Delaware sub-basins, while providing additional scale, significant operational synergies, and free cash flow in this competitive environment. Our team has made tremendous progress to increase efficiencies as we evolved to pad development on our acreage position. We look forward to working closely with Parsley to ensure that we provide an efficient changeover of asset-level institutional knowledge, so our shareholders and the shareholders of Parsley Energy can reap the maximized benefits of this transaction."
S. Wil VanLoh, Jr., a Jagged Peak director and the Founder and Chief Executive Officer of Quantum Energy Partners, Jagged Peak's controlling shareholder, commented, "The inevitable consolidation in the Permian has started and Jagged Peak made a decisive move to team up with the right partner. Quantum has known Bryan, Matt and the Parsley team for many years and has tremendous respect for the industry-leading execution capabilities and top-tier rock they possess. The combination of the two companies will create a unique platform that will benefit from scale, capital allocation optionality, and peer-leading economics (IRRs, oil-weighting and netback margins) that we believe will represent one of the most compelling investment vehicles in the Permian. We look forward to partnering with the Parsley team as they mature into a Permian pure-play large cap. I would also like to thank every current and former employee of Jagged Peak for creating a great private equity success story and for positioning Jagged Peak's shareholders for continued value creation in a very tough macro energy environment. It's been an honor being your partner."
Third Quarter Operational Update
Activity Overview
For the third quarter of 2019, Parsley expects net oil production of 91.2-91.7 MBo per day, translating to 5-6% quarter-over-quarter growth. During 3Q19, Parsley placed on production 35 gross operated horizontal wells with an average working interest of approximately 95% and an average completed lateral length of approximately 10,000 feet. Parsley expects to report third quarter capital expenditures of approximately $315-325 million. Third quarter development spending decreased relative to second quarter spending, driven by lower well costs, fewer net completions, and quarter-over-quarter decreases in facilities and infrastructure spending.
Preliminary Pro Forma 2020 Outlook
Governance and Leadership
The boards of directors at both Parsley and Jagged Peak have unanimously approved the transaction, and recommended that their respective shareholder groups approve the transaction.
Upon closing, Parsley's board of directors will be expanded to eleven directors to include two members from the current Jagged Peak board of directors. The combined company will be led by Parsley's executive management team and will remain headquartered in Austin, Texas.
Timing and Approvals
The transaction, which is expected to close during the first quarter of 2020, is subject to customary closing conditions and regulatory approvals, including the approval of Parsley and Jagged Peak shareholders. Jagged Peak's controlling shareholder, Quantum Energy Partners, which owns approximately 68 percent of the outstanding voting shares of Jagged Peak, has committed to vote its shares in favor of the transaction.
Advisors
Tudor, Pickering, Holt & Co is serving as exclusive financial advisor to Parsley Energy, and Kirkland & Ellis LLP is serving as Parsley's legal counsel. Citi and RBC Capital Markets, LLC are serving as financial advisors to Jagged Peak and Vinson & Elkins L.L.P. is serving as Jagged Peak's legal counsel.
Conference Call Information
Parsley Energy will host a conference call and webcast on Monday, October 14 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time, 7:00 a.m. Mountain Time). Participants should call 877-709-8150 (United States/Canada) or 201-689-8354 (International) ten minutes before the scheduled time and request the Parsley Energy conference call. A telephone replay will be available through October 21 by dialing 877-660-6853 (United States/Canada) or 201-612-7415 (International). Conference ID: 13695703. A live broadcast will also be available on the internet at www.parsleyenergy.com under the "Investors-Events & Presentations" section of the Parsley website and at www.jaggedpeakenergy.com under the "News" section of the Jagged Peak website. Each company has also posted a presentation to its website that supplements the information in this release.
About Parsley Energy, Inc.
Parsley Energy, Inc. is an independent oil and natural gas company focused on the acquisition, development, exploration, and production of unconventional oil and natural gas properties in the Permian Basin. For more information, visit the Company's website at www.parsleyenergy.com.
About Jagged Peak Energy, Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
No Offer or Solicitation
Communications in this news release do not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Additional Information for Shareholders
In connection with the proposed transaction, Parsley and Jagged Peak intend to file materials with the Securities and Exchange Commission ("SEC"), including a Registration Statement on Form S-4 of Parsley (the "Registration Statement") that will include a joint proxy statement/prospectus of Parsley and Jagged Peak. After the Registration Statement is declared effective by the SEC, Parsley and Jagged Peak intend to mail a definitive proxy statement/prospectus to the shareholders of Parsley and the shareholders of Jagged Peak. This news release is not a substitute for the joint proxy statement/prospectus or the Registration Statement or for any other document that Parsley or Jagged Peak may file with the SEC and send to Parsley's shareholders and/or Jagged Peak's shareholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF PARSLEY AND JAGGED PEAK ARE URGED TO CAREFULLY AND THOROUGHLY READ THE JOINT PROXY STATEMENT AND THE REGISTRATION STATEMENT/PROSPECTUS, AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY PARSLEY AND JAGGED PEAK WITH THE SEC, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PARSLEY, JAGGED PEAK, THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED MATTERS.
Investors will be able to obtain free copies of the Registration Statement and joint proxy statement/prospectus, as each may be amended from time to time, and other relevant documents filed by Parsley and Jagged Peak with the SEC (when they become available) through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC by Parsley will be available free of charge from Parsley's website at www.parsleyenergy.com under the "Investors" tab or by contacting Parsley's Investor Relations Department at (512) 505-5199 or IR@parsleyenergy.com. Copies of documents filed with the SEC by Jagged Peak will be available free of charge from Jagged Peak's website at www.jaggedpeakenergy.com under the "Investor Relations" tab or by contacting Jagged Peak's Investor Relations Department at (720) 215-3754 or jedwards@jaggedpeakenergy.com.
Participants in the Proxy Solicitation
Parsley, Jagged Peak and their respective directors and certain of their executive officers and other members of management and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from Parsley's shareholders and Jagged Peak's shareholders in connection with the proposed transaction. Information regarding the executive officers and directors of Parsley is included in its definitive proxy statement for its 2019 annual meeting filed with the SEC on April 8, 2019. Information regarding the executive officers and directors of Jagged Peak is included in its definitive proxy statement for its 2019 annual meeting filed with the SEC on April 10, 2019. Additional information regarding the persons who may be deemed participants and their direct and indirect interests, by security holdings or otherwise, will be set forth in the Registration Statement and joint proxy statement/prospectus and other materials when they are filed with the SEC in connection with the proposed transaction. Free copies of these documents may be obtained as described in the paragraphs above.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this news release concerning the proposed transaction, including any statements regarding the expected timetable for completing the proposed transaction, the results, effects, benefits and synergies of the proposed transaction, future opportunities for the combined company, future financial performance and condition, guidance and any other statements regarding Parsley's or Jagged Peak's future expectations, beliefs, plans, objectives, financial conditions, assumptions or future events or performance that are not historical facts are "forward-looking" statements based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words "anticipate," "believe," "ensure," "expect," "if," "intend," "estimate," "probable," "project," "forecasts," "predict," "outlook," "aim," "will," "could," "should," "would," "potential," "may," "might," "anticipate," "likely" "plan," "positioned," "strategy," and similar expressions or other words of similar meaning, and the negatives thereof, are intended to identify forward-looking statements. Specific forward-looking statements include statements regarding Parsley and Jagged Peak's plans and expectations with respect to the proposed transaction and the anticipated impact of the proposed transaction on the combined company's results of operations, financial position, growth opportunities and competitive position. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, the possibility that shareholders of Parsley may not approve the issuance of new shares of Parsley Class A common stock in the transaction or that shareholders of Jagged Peak may not approve the merger agreement; the risk that a condition to closing of the proposed transaction may not be satisfied, that either party may terminate the merger agreement or that the closing of the proposed transaction might be delayed or not occur at all; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; the diversion of management time on transaction-related issues; the ultimate timing, outcome and results of integrating the operations of Parsley and Jagged Peak; the effects of the business combination of Parsley and Jagged Peak, including the combined company's future financial condition, results of operations, strategy and plans; the ability of the combined company to realize anticipated synergies in the timeframe expected or at all; changes in capital markets and the ability of the combined company to finance operations in the manner expected; regulatory approval of the transaction; the effects of commodity prices; the risks of oil and gas activities; and the fact that operating costs and business disruption may be greater than expected following the public announcement or consummation of the proposed transaction. Expectations regarding business outlook, including changes in revenue, pricing, capital expenditures, cash flow generation, strategies for our operations, oil and natural gas market conditions, legal, economic and regulatory conditions, and environmental matters are only forecasts regarding these matters.
Additional factors that could cause results to differ materially from those described above can be found in Parsley's Annual Report on Form 10-K for the year ended December 31, 2018 and in its subsequently filed Quarterly Reports on Form 10-Q, each of which is on file with the SEC and available from Parsley's website at www.parsleyenergy.com under the "Investors" tab, and in other documents Parsley files with the SEC, and in Jagged Peak's Annual Report on Form 10-K for the year ended December 31, 2018 and in its subsequently filed Quarterly Reports on Form 10-Q, each of which is on file with the SEC and available from Jagged Peak's website at www.jaggedpeakenergy.com under the "Investor Relations" tab, and in other documents Jagged Peak files with the SEC.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. Neither Parsley nor Jagged Peak assumes any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
(1) | As used in this press release, free cash flow, a non-GAAP financial measure, is defined as cash flow from operations before changes in operating assets and liabilities less accrual-based development capital expenditures. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/parsley-energy-announces-acquisition-of-jagged-peak-energy-in-all-stock-transaction-modest-premium-acquisition-enhances-2020-free-cash-flow-300937735.html
SOURCE Parsley Energy, Inc.
DENVER, Aug. 8, 2019 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the second quarter ended June 30, 2019.
Jim Kleckner, President and Chief Executive Officer, commented, "I am pleased with our Company's execution and performance through the first half of the year, with our DC&E costs down significantly from 2018. We continue to be intently focused on creating additional value through further reductions of these DC&E costs and preserving our high operating margins. Leveraging these efficiency gains will remain an important part of our business as we move to development projects in 2019 and 2020. During the quarter, we started operations on the six-well Coriander pad. The wells have been drilled and the completions are progressing on schedule to deliver first production in the next few weeks. Also during the quarter, we turned online two wells in the Big Tex area and have seen encouraging initial results. While it's too early to make a full assessment of these results, we remain cautiously optimistic on the future optionality of our Big Tex area."
Second Quarter Results
During the second quarter of 2019, the Company turned online 11 gross operated wells and reported average daily oil production for the quarter of 29.1 MBbls per day, at the upper end of the Company's previously announced guidance range of 27.8 – 29.2 MBbls per day. Total equivalent production averaged 38.3 MBoe per day for the second quarter, slightly above the upper end of the Company's previously announced guidance range of 36.6 – 38.0 MBoe per day. Second quarter production mix was comprised of 76% oil, 13% NGLs, and 11% natural gas, and is essentially unchanged from the prior quarter.
For the second quarter of 2019, the Company reported net income of $41.9 million, or $0.20 per diluted common share. Net income for the second quarter of 2018 was $45.1 million, or $0.21 per diluted common share. Adjusted net income (a non-GAAP measure) for the second quarter of 2019, was $21.3 million, or $0.10 per diluted common share, compared to $43.3 million, or $0.20 per diluted common share for the same period in 2018. Adjusted net income (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as certain equity-based compensation, non-cash mark-to-market gains or losses on derivatives and impairment expense, further adjusted for any associated changes in estimated income tax expense. Adjusted EBITDAX (a non-GAAP measure) for the second quarter of 2019 was $101.7 million, a decrease of $16.9 million from the second quarter of 2018.
Please reference the reconciliations of these non-GAAP measures to the most directly comparable GAAP measures at the end of this release.
Revenue for the second quarter of 2019 was $146.8 million, compared to $158.7 million in the second quarter of 2018. The decrease in revenue for the second quarter of 2019 compared to the same period in 2018 was primarily due to a 16% decrease in unhedged realized pricing on a per Boe basis. Natural gas pricing during the quarter was weak as daily spot pricing at Waha, the Company's primary pricing point, averaged approximately $0.01/Mcf for the quarter. After differentials, processing, and transportation fees were applied, the net realized price for natural gas sales for the quarter was negative $0.87 per Mcf. Despite negative realized pricing for natural gas, the Company continued to gather and process its gas to capture economics from NGL volumes and minimize flare volumes. Average realized prices for the second quarter of 2019 are included in the table below.
Three Months Ended June 30, 2019 | |||||||
Before the Effects of | After the Effects of | ||||||
Oil ($/Bbl) | $ | 54.98 | $ | 51.70 | |||
NGL ($/Bbl) | $ | 7.15 | $ | 7.15 | |||
Gas ($/Mcf) | $ | (0.87) | $ | (0.87) | |||
Boe ($/Boe) | $ | 42.15 | $ | 39.65 |
The table below provides a summary of the Company's second quarter and first half 2019 actual results in comparison to its previously provided guidance ranges.
Three Months Ended June 30, 2019 | |||
Actual | Guidance (1) | ||
Production | |||
Average daily equivalent production (MBoe/d) | 38.3 | 36.6 – 38.0 | |
Average daily oil production (MBbl/d) | 29.1 | 27.8 – 29.2 | |
Six Months Ended | Full-Year 2019 | ||
Actual | Guidance (1) | ||
Production | |||
Average daily equivalent production (MBoe/d) | 37.5 | 38.3 – 41.3 | |
Average daily oil production (MBbl/d) | 28.6 | 29.2 – 31.2 | |
Income Statement | |||
Lease operating expense ($/Boe) | $4.31 | $3.65 – $4.15 | |
General and administrative (before equity-based compensation) ($MM) (Non-GAAP) | $19.5 | $46 – $50 | |
Production and ad valorem taxes (% of revenue) | 7.5% | 6.0% – 7.0% | |
Capital Expenditures | |||
Drilling and completion ($MM) | $288.7 | $580 – $630 | |
Infrastructure and other ($MM) | $21.2 | $25 – $35 | |
Total development capital ($MM) | $309.8 | $605 – $665 | |
Operated Activity | |||
Gross horizontal wells brought online | 23 | 52 – 56 |
Note: Totals may not add due to rounding. |
(1) Guidance as provided in the Company's first quarter earnings and operational update press release on May 9, 2019. |
The Company's lease operating expense ("LOE") per Boe for the quarter trended above the upper end of the annual guided range, primarily due to increased costs associated with artificial lift, including additional workover expenses and electric power. The Company now expects many of these increased costs to persist throughout the remainder of the year and has revised its guidance range, which are reflected in the "Updated 2019 Capital, Production, and Operating Guidance" section below.
Capital expenditures for DC&E activities were $152.0 million for the three months ended June 30, 2019. Activity during the quarter included drilling 13 and completing 11 gross (10.4 net) operated wells. A portion of the capital spent during the second quarter relates to 17 gross (16.2 net) operated wells that were in various stages of being drilled or completed at June 30, 2019, three of which were turned online during the first week of July. Including capital expenditures for infrastructure of $15.5 million, which account for approximately two thirds of the expected annual investment and activity, and leasehold acquisition costs of $3.2 million, total capital expenditures for the quarter were $170.7 million.
The table below provides a comparative breakout of the Company's capital expenditures for the periods indicated:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Acquisitions | |||||||||||||||
Proved properties | $ | 584 | $ | — | $ | 7,407 | $ | — | |||||||
Unproved properties | 2,601 | 3,771 | 7,978 | 11,095 | |||||||||||
Drilling and completion costs | 151,960 | 176,178 | 288,690 | 383,793 | |||||||||||
Infrastructure costs | 15,523 | 4,065 | 21,158 | 8,001 | |||||||||||
Exploration costs | — | 1 | — | 1 | |||||||||||
Total oil and gas capital expenditures | $ | 170,668 | $ | 184,015 | $ | 325,233 | $ | 402,890 |
The Company continues to drive down its DC&E costs through continued efficiency gains and improvements to its supply chain and strategic sourcing of materials including sand, tubular goods, and cement. These improvements have resulted in a further reduction of the Company's total DC&E costs, which averaged $1,250 per lateral foot in the second quarter of 2019 and approximately $1,270 per lateral foot year-to-date. The Company remains on track to meet its full-year 2019 goal of $1,250 per lateral foot. The Company is tightly focused on further enhancing operational efficiencies and reducing total well costs.
Operational Updates
In the Company's Whiskey River asset, the Company finished drilling its Coriander project. This project is the Company's first six-well co-development project spaced at 1,320 feet, and has recently commenced completions operations. Drilling operations for Coriander averaged approximately 860 feet per day, compared to the 2019 average of approximately 830 feet per day. Completion operations for Coriander started in mid-July and are currently on schedule with two frac crews completing the six wells. The Company expects the project to finish completions and be turned online in late-August, at which point the Company plans to finish drilling and begin completions activity on its Venom project, an eight-well multi-horizon development in the northern portion of Whiskey River.
During the quarter, the Company turned online its first Wolfcamp A well in the central fairway of its Big Tex acreage. Early results from this well, the State Big Tex South 7673-8 11-H, are encouraging, with a two-stream peak IP30 of 104 Boe per 1,000 lateral feet and 90-day cumulative production of approximately 7,500 Boe per 1,000 feet. This compares favorably to the average of the Company's Big Tex wells, which have had average two-stream peak IP30 of approximately 88 Boe per day and 90-day cumulative production of 6,300 Boe per 1,000 feet. The well is currently on artificial lift and continues to show a robust production profile after 130 days of production, with the most recent seven-day average oil production of 1,077 Bbls per day. The Company is drilling and completing two additional Wolfcamp A wells in this fairway in 2019, the first of which is in the early stages of flowing back and the second is currently completing.
The Company also turned online a successful well in its Southeastern Big Tex position during the quarter, that targeted the Woodford formation. This well, the Chimera 3601-142 61H, has an approximate 6,400 foot lateral and was placed entirely in-zone. The early time data of this well has been encouraging, with a two-stream peak IP30 of 294 Boe per 1,000 lateral feet (50% oil). As the production data of this well is preliminary, the Company will continue to monitor and evaluate the performance of this well, and its other 2019 Big Tex wells to inform capital allocation decisions for Big Tex in 2020.
Updated 2019 Capital, Production, and Operating Guidance
For the remainder of the year, the Company plans to continue running five drilling rigs and between one and two completion crews, which are expected to complete between 13-15 wells in each of the remaining quarters of 2019. Development capital guidance is being affirmed at a midpoint of $635 million. For production, the Company is affirming its fourth quarter and full-year guidance ranges and providing guidance for the third quarter. The Company is expecting its oil production to grow sequentially in the third quarter by approximately 3% and then grow by approximately 15% in the fourth quarter as volumes from the Coriander and Venom projects are expected to be turned online in the second half of the third quarter and the beginning of the fourth quarter, respectively. From a cost perspective, the Company is raising the midpoint of its LOE guidance by $0.25 per Boe to account for additional artificial lift costs, and is decreasing its annual G&A guidance by $7.5 million, at the midpoint. The Company has also increased the production and ad valorem tax guidance by 0.5% as a percentage of revenue, due in part to decreased per unit revenues from natural gas and NGLs. As these three changes are netting, they are expected to have a neutral to slightly positive impact to the Company's top-tier adjusted EBITDAX margin. Adjusted EBITDAX margin is a non-GAAP metric. Please reference the reconciliations of this non-GAAP measures to the most directly comparable GAAP measure, Net Income, at the end of this release. The table below provides an updated summary of the Company's capital, production, and operating guidance for the third quarter and full-year 2019.
Updated Guidance for the Three Months Ended September 30, 2019 | |
Production | |
Average daily equivalent production (MBoe/d) | 38.6 – 40.2 |
Average daily oil production (MBbl/d) | 29.4 – 30.6 |
Updated Guidance for the Full-Year 2019 | |
Production | |
Average daily equivalent production (MBoe/d) | 38.6 – 41.0 |
Average daily oil production (MBbl/d) | 29.3 – 31.1 |
Income Statement | |
Lease operating expense ($/Boe) | $4.00 – $4.30 |
General and administrative (before equity-based compensation) ($MM) (Non-GAAP) | $39 - $42 |
Production and ad valorem taxes (% of revenue) | 6.5% – 7.5% |
Capital Expenditures | |
Drilling and completion ($MM) (1) | $590 – $620 |
Infrastructure and other ($MM) | $27 – $33 |
Total development capital ($MM) | $617 – $653 |
Operated Activity | |
Gross horizontal wells brought online | 52 – 56 |
Average working interest | ~95% |
Average lateral length per well | 8,900' |
Non-operated Activity | |
Net horizontal wells brought online | 2 |
(1) Includes pad-level infrastructure and equipment |
Financial Update
At the end of the second quarter of 2019, the Company had $150.0 million drawn on its revolving credit facility and $24.8 million of cash on the balance sheet, resulting in total liquidity of $414.8 million. Net debt to LTM adjusted EBITDAX (a non-GAAP measure) was 1.5x as of the end of the second quarter. The Company's current capital program is expected to keep the Company's leverage ratio, as measured by net debt to LTM adjusted EBITDAX, under 2.0x in a $50 per Bbl WTI environment. Please reference the reconciliation of this non-GAAP measure to the most directly comparable GAAP measure at the end of this release.
Since the hedging update on May 9, 2019, the Company has added to its 2020 WTI swaps, which are now at 17,000 Bbls per day of oil for 2020. These additions are included in the commodity hedges schedule at the end of this release.
Conference Call
Jagged Peak will host a conference call and webcast to discuss its second quarter 2019 financial and operating results on August 9, 2019 at 9:00 am MT (11:00 am ET). The call will be webcast and accessible via the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. Dial-in information for this call is included below:
Phone Number | Conference ID | ||
Live Participant (Domestic) | 1-877-823-8605 | 7790428 | |
Live Participant (International) | 1-647-689-5644 | 7790428 | |
Replay(1) (Domestic) | 1-800-585-8367 | 7790428 | |
Replay(1) (International) | 1-416-621-4642 | 7790428 | |
(1) Replay available from 2:00 PM Eastern Time on August 9, 2019 through 12:00 midnight Eastern Time on August 16, 2019 |
Upcoming Investor Events
The Company will be participating in the following upcoming investor events:
Event | Date | Location | Management Attendees | |||
Enercom | August 12, | Denver, CO | Jim Kleckner, President and CEO; | |||
The Oil and Gas Conference | 2019 | Bob Howard, EVP and CFO; | ||||
Craig Walters, EVP and COO; | ||||||
Seaport Global | August 27, | Chicago, IL | Craig Walters, EVP and COO | |||
2019 Energy & Industrials | 2019 | |||||
Barclays | September | New York, NY | Jim Kleckner, President and CEO; | |||
CEO Energy-Power | 3-5, 2019 | Bob Howard, EVP and CFO |
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions), will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, guidance estimates including all statements under the heading "Updated 2019 Capital, Production, and Operating Guidance"; the Company's ability to enhance operational efficiencies and reduce total well costs; the Company's expected allocation of capital expenditures; the Company's expected completion of certain wells and the timing of such completions; the Company's expected number of drilling rigs, completions crews, and number of well completions for the remainder of 2019, early results of Big Tex delineation wells, and the Company's expectation that it will continue to keep its leverage ratio under 2.0x in a $50 per Bbl WTI environment during 2019. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, equity-based compensation expense, income taxes, contract termination fees, gains or losses on sales of assets, and net gains or losses on derivatives less net cash from/for derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows investors to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a non-GAAP performance measure used by management to evaluate financial performance, prior to non-cash market-to-market gains or losses on derivatives, impairment expense, exploratory dry hole costs, gain or loss on the sale of property, certain one-time or unusual items, such as certain equity-based compensation, contract termination fees, and the associated changes in estimated income tax. Management believes adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
Net Debt to LTM Adjusted EBITDAX
Net debt to LTM adjusted EBITDAX is a non-GAAP measure, which is defined as the face value of the Company's long-term debt, including its senior unsecured notes and amounts drawn on its credit facility, less cash and cash equivalents at quarter end, divided by the Company's last twelve month adjusted EBITDAX, as defined above.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Jagged Peak Energy Inc. | |||||||||||||||
Selected Operating Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Production volumes: | |||||||||||||||
Oil (MBbls) | 2,649 | 2,450 | 5,179 | 4,416 | |||||||||||
Natural gas (MMcf) | 2,334 | 2,220 | 4,503 | 3,886 | |||||||||||
NGLs (MBbls) | 444 | 325 | 851 | 565 | |||||||||||
Total (MBoe) | 3,482 | 3,145 | 6,781 | 5,629 | |||||||||||
Average daily production volumes: | |||||||||||||||
Oil (Bbls/d) | 29,106 | 26,921 | 28,612 | 24,400 | |||||||||||
Natural gas (Mcf/d) | 25,644 | 24,399 | 24,878 | 21,471 | |||||||||||
NGLs (Bbls/d) | 4,879 | 3,575 | 4,703 | 3,120 | |||||||||||
Total (Boe/d) | 38,259 | 34,562 | 37,462 | 31,098 | |||||||||||
Average Sales Prices Excluding Realized Hedge Settlements: | |||||||||||||||
Oil (per Bbl) | $ | 54.98 | $ | 60.66 | $ | 51.96 | $ | 60.99 | |||||||
Natural gas (per Mcf) | $ | (0.87) | $ | 1.05 | $ | 0.04 | $ | 1.34 | |||||||
NGLs (per Bbl) | $ | 7.15 | $ | 23.36 | $ | 8.28 | $ | 22.86 | |||||||
Combined (per Boe) | $ | 42.15 | $ | 50.41 | $ | 40.75 | $ | 51.07 | |||||||
Average Sales Prices Including Realized Hedge Settlements: | |||||||||||||||
Oil (per Bbl) | $ | 51.70 | $ | 55.82 | $ | 49.81 | $ | 54.79 | |||||||
Natural gas (per Mcf) | $ | (0.87) | $ | 1.05 | $ | 0.04 | $ | 1.34 | |||||||
NGLs (per Bbl) | $ | 7.15 | $ | 23.36 | $ | 8.28 | $ | 22.86 | |||||||
Combined (per Boe) | $ | 39.65 | $ | 46.63 | $ | 39.11 | $ | 46.21 | |||||||
Average Operating Costs (per Boe): | |||||||||||||||
Lease operating expenses | $ | 4.47 | $ | 3.33 | $ | 4.31 | $ | 3.59 | |||||||
Production and ad valorem tax expenses | $ | 3.31 | $ | 2.94 | $ | 3.07 | $ | 3.01 | |||||||
Depletion, depreciation, amortization and accretion | $ | 17.58 | $ | 17.46 | $ | 17.74 | $ | 18.28 | |||||||
General and administrative expense (before equity-based compensation expense) | $ | 2.61 | $ | 2.69 | $ | 2.88 | $ | 3.39 |
Jagged Peak Energy Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
June 30, 2019 | December 31, 2018 | |||||||
(in thousands) | ||||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 24,796 | $ | 35,229 | ||||
Other current assets | 85,480 | 165,905 | ||||||
Property and equipment, net | 1,734,131 | 1,530,285 | ||||||
Other noncurrent assets | 69,962 | 35,722 | ||||||
Total assets | $ | 1,914,369 | $ | 1,767,141 | ||||
Liabilities and Stockholders' Equity: | ||||||||
Current liabilities | $ | 226,786 | $ | 187,982 | ||||
Long-term debt | 639,904 | 489,239 | ||||||
Deferred income taxes | 109,835 | 124,418 | ||||||
Other long-term liabilities | 36,603 | 17,552 | ||||||
Stockholders' equity | 901,241 | 947,950 | ||||||
Total liabilities and stockholders' equity | $ | 1,914,369 | $ | 1,767,141 |
Jagged Peak Energy Inc. | |||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Revenues | |||||||||||||||
Oil, natural gas and NGL sales | $ | 146,757 | $ | 158,551 | $ | 276,343 | $ | 287,457 | |||||||
Other operating revenues | — | 125 | 9 | 272 | |||||||||||
Total revenues | 146,757 | 158,676 | 276,352 | 287,729 | |||||||||||
Operating Expenses | |||||||||||||||
Lease operating expenses | 15,554 | 10,486 | 29,204 | 20,206 | |||||||||||
Production and ad valorem taxes | 11,535 | 9,246 | 20,837 | 16,920 | |||||||||||
Exploration | — | 1 | — | 1 | |||||||||||
Depletion, depreciation, amortization and accretion | 61,222 | 54,915 | 120,296 | 102,892 | |||||||||||
Impairment of unproved oil and natural gas properties | 862 | — | 946 | 53 | |||||||||||
Other operating expenses | 6 | 24 | 3,206 | 46 | |||||||||||
General and administrative (before equity-based compensation) | 9,085 | 8,454 | 19,545 | 19,093 | |||||||||||
General and administrative, equity-based compensation | 3,993 | 2,379 | 6,927 | 78,057 | |||||||||||
Total operating expenses | 102,257 | 85,505 | 200,961 | 237,268 | |||||||||||
Income (Loss) from Operations | 44,500 | 73,171 | 75,391 | 50,461 | |||||||||||
Other Income and Expense | |||||||||||||||
Gain (loss) on commodity derivatives | 18,469 | (9,584) | (125,123) | (13,910) | |||||||||||
Interest expense and other | (9,400) | (6,098) | (17,832) | (8,821) | |||||||||||
Total other income (loss) | 9,069 | (15,682) | (142,955) | (22,731) | |||||||||||
Income (Loss) before Income Taxes | 53,569 | 57,489 | (67,564) | 27,730 | |||||||||||
Income tax expense (benefit) | 11,662 | 12,408 | (14,583) | 22,052 | |||||||||||
Net Income (Loss) | $ | 41,907 | $ | 45,081 | $ | (52,981) | $ | 5,678 | |||||||
Net income (loss) per common share: | |||||||||||||||
Basic | $ | 0.20 | $ | 0.21 | $ | (0.25) | $ | 0.03 | |||||||
Diluted | $ | 0.20 | $ | 0.21 | $ | (0.25) | $ | 0.03 | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 213,371 | 213,142 | 213,321 | 213,073 | |||||||||||
Diluted | 213,519 | 213,262 | 213,321 | 213,169 |
Jagged Peak Energy Inc. | |||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands) | |||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | $ | 41,907 | $ | 45,081 | $ | (52,981) | $ | 5,678 | |||||||
Adjustments to reconcile to net cash provided by operating activities: | |||||||||||||||
Depletion, depreciation, amortization and accretion | 61,222 | 54,915 | 120,296 | 102,892 | |||||||||||
Impairment of unproved oil and natural gas properties | 862 | — | 946 | 53 | |||||||||||
Amortization of debt issuance costs | 590 | 421 | 1,176 | 1,021 | |||||||||||
Deferred income taxes | 11,662 | 12,408 | (14,583) | 22,052 | |||||||||||
Equity-based compensation | 3,993 | 2,379 | 6,927 | 78,057 | |||||||||||
(Gain) Loss on commodity derivatives | (18,469) | 9,584 | 125,123 | 13,910 | |||||||||||
Net cash receipts (payments) on settled derivatives | (8,697) | (11,879) | (11,167) | (27,358) | |||||||||||
Other | 71 | (78) | (7) | (156) | |||||||||||
Change in operating assets and liabilities: | |||||||||||||||
Accounts receivable and other current assets | 6,238 | (13,198) | (719) | (18,549) | |||||||||||
Accounts payable and accrued liabilities | (10,116) | 19,939 | (6,764) | 22,214 | |||||||||||
Net cash provided by operating activities | 89,263 | 119,572 | 168,247 | 199,814 | |||||||||||
Cash Flows from Investing Activities | |||||||||||||||
Leasehold and acquisitions costs | (3,304) | (3,468) | (15,567) | (11,053) | |||||||||||
Development of oil and natural gas properties | (162,417) | (206,986) | (311,865) | (392,968) | |||||||||||
Other capital expenditures | 237 | (611) | (452) | (1,881) | |||||||||||
Net cash used in investing activities | (165,484) | (211,065) | (327,884) | (405,902) | |||||||||||
Cash Flows from Financing Activities | |||||||||||||||
Proceeds from senior notes | — | 500,000 | — | 500,000 | |||||||||||
Proceeds from senior secured revolving credit facility | 95,000 | 55,000 | 150,000 | 165,000 | |||||||||||
Repayment of senior secured revolving credit facility | — | (320,000) | — | (320,000) | |||||||||||
Debt issuance costs | (65) | (11,220) | (141) | (12,743) | |||||||||||
Employee tax withholding for settlement of equity compensation awards | (376) | — | (655) | (200) | |||||||||||
Net cash provided by financing activities | 94,559 | 223,780 | 149,204 | 332,057 | |||||||||||
Net Change in Cash and Cash Equivalents | 18,338 | 132,287 | (10,433) | 125,969 | |||||||||||
Cash and Cash Equivalents, Beginning of Period | 6,458 | 3,205 | 35,229 | 9,523 | |||||||||||
Cash and Cash Equivalents, End of Period | $ | 24,796 | $ | 135,492 | $ | 24,796 | $ | 135,492 |
Jagged Peak Energy Inc. | ||||||
Commodity Hedges | ||||||
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. The schedule below summarizes the hedges the Company has in place to hedge the price of WTI and the differential between the Cushing and Midland oil prices. | ||||||
As of August 8, 2019, the Company had the following commodity hedges in place for future production: | ||||||
Production Period | Volumes | Weighted | ||||
(MBbls) | ($/Bbl) | |||||
Oil Swaps: | ||||||
Third Quarter 2019 | 1,932 | $ | 59.95 | |||
Fourth Quarter 2019 | 1,932 | $ | 59.95 | |||
Full Year 2019 | 3,864 | $ | 59.95 | |||
First Quarter 2020 | 1,547 | $ | 58.75 | |||
Second Quarter 2020 | 1,547 | $ | 58.75 | |||
Third Quarter 2020 | 1,564 | $ | 58.75 | |||
Fourth Quarter 2020 | 1,564 | $ | 58.75 | |||
Full Year 2020 | 6,222 | $ | 58.75 | |||
Oil Basis Swaps: | ||||||
Third Quarter 2019 | 2,300 | $ | (4.79) | |||
Fourth Quarter 2019 | 2,300 | $ | (4.79) | |||
Full Year 2019 | 4,600 | $ | (4.79) | |||
First Quarter 2020 | 2,366 | $ | (1.31) | |||
Second Quarter 2020 | 2,366 | $ | (1.31) | |||
Third Quarter 2020 | 2,392 | $ | (1.31) | |||
Fourth Quarter 2020 | 2,392 | $ | (1.31) | |||
Full Year 2020 | 9,516 | $ | (1.31) |
Jagged Peak Energy Inc. | |||||||||||||||
Reconciliation of Adjusted Net Income, Adjusted EBITDAX and Adjusted EBITDAX Margin | |||||||||||||||
(Unaudited) | |||||||||||||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(in thousands, except for per share and Boe metrics) | |||||||||||||||
Adjusted Net Income (Loss) | |||||||||||||||
Net income (loss) | $ | 41,907 | $ | 45,081 | $ | (52,981) | $ | 5,678 | |||||||
Adjustments to reconcile to adjusted net income | |||||||||||||||
Impairment of unproved oil and natural gas properties | 862 | — | 946 | 53 | |||||||||||
(Gain) loss on commodity derivatives, net, less net cash for/from derivative settlements | (27,166) | (2,295) | 113,956 | (13,448) | |||||||||||
Equity-based compensation expense related to allocated management incentive units | — | — | — | 74,470 | |||||||||||
Contract termination fee (1) | — | — | 3,200 | — | |||||||||||
Income tax effect for the above items | 5,726 | 495 | (25,491) | 2,890 | |||||||||||
Adjusted net income | $ | 21,329 | $ | 43,281 | $ | 39,630 | $ | 69,643 | |||||||
Adjusted net income per basic common share | $ | 0.10 | $ | 0.20 | $ | 0.19 | $ | 0.33 | |||||||
Adjusted net income per diluted common share | $ | 0.10 | $ | 0.20 | $ | 0.19 | $ | 0.33 | |||||||
Basic common shares | 213,371 | 213,142 | 213,321 | 213,073 | |||||||||||
Diluted common shares (2) | 213,519 | 213,262 | 213,458 | 213,169 | |||||||||||
Adjusted EBITDAX | |||||||||||||||
Net income (loss) | $ | 41,907 | $ | 45,081 | $ | (52,981) | $ | 5,678 | |||||||
Adjustments to reconcile to adjusted EBITDAX | |||||||||||||||
Interest expense, net of capitalized | 9,263 | 6,108 | 17,709 | 8,839 | |||||||||||
Income tax expense (benefit) | 11,662 | 12,408 | (14,583) | 22,052 | |||||||||||
Depletion, depreciation, amortization and accretion | 61,222 | 54,915 | 120,296 | 102,892 | |||||||||||
Impairment of unproved oil and natural gas properties | 862 | — | 946 | 53 | |||||||||||
Contract termination fee (1) | — | — | 3,200 | — | |||||||||||
Exploration expenses | — | 1 | — | 1 | |||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements | (27,166) | (2,295) | 113,956 | (13,448) | |||||||||||
Equity-based compensation expense | 3,993 | 2,379 | 6,927 | 78,057 | |||||||||||
Adjusted EBITDAX | $ | 101,743 | $ | 118,597 | $ | 195,470 | $ | 204,124 | |||||||
Total production (MBoe) | 3,482 | 3,145 | 6,781 | 5,629 | |||||||||||
Adjusted EBITDAX margin per Boe (3) | $ | 29.22 | $ | 37.71 | $ | 28.83 | $ | 36.26 |
(1) | Contract termination fee relates to the early termination of a frac fleet contract. These amounts are included as a part of Other operating expenses on the Condensed Consolidated Statements of Operations. |
(2) | Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding restricted stock unit and performance stock unit awards. |
(3) | Adjusted EBITDAX margin is calculated as Adjusted EBITDAX divided by total production, expressed as adjusted EBITDAX per Boe. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-second-quarter-2019-financial-and-operating-results-300899058.html
SOURCE Jagged Peak Energy Inc.
DENVER, July 25, 2019 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") announced today the election of Adrianna C. Ma to Jagged Peak's Board of Directors. Ms. Ma's election brings the number of directors to ten.
Ms. Ma is the Managing Partner of Haleakala Holdings LLC, her personal investment firm. From 2015 until 2019, Ms. Ma was a managing partner of Fremont Group, a single-family investment firm where she oversaw a portfolio that consisted of externally-managed funds as well as public and private securities. Prior to that, Ms. Ma was a managing director of General Atlantic LLC, where she spent ten years investing in and serving on the boards of directors of technology-enabled growth companies globally. Before joining General Atlantic, she was an investment banker in Morgan Stanley's Mergers, Acquisitions, and Restructuring Department. Previously, she was a project manager at the network server division of Hewlett-Packard Company. Ms. Ma is a director of Applied Materials, Inc. where she chairs the Investment Committee and is a member of the Audit Committee and Corporate Governance and Nominating Committee. She is also involved with a number of educational and not-for-profit organizations. She serves on the board of directors of the MIT Investment Management Company, which oversees MIT's endowment, and the UCSF Foundation Investment Company. She also serves on visiting committees of the MIT Corporation and on the MIT Media Lab's Advisory Council. Ms. Ma is a Trustee of The Nature Conservancy's California Board and a life member of the Council on Foreign Relations. Ms. Ma received a BS in electrical science and engineering and an ME in electrical engineering and computer science from MIT. She also received an MBA from Harvard Business School. Ms. Ma is a 2012 Henry Crown Fellow of the Aspen Institute and a member of the Aspen Global Leadership Network.
"We are excited to welcome Adrianna to the Jagged Peak board of directors," said Charles D. Davidson, Chairman of the Board. "She's an established investor and thought leader whose diverse financial and technology expertise will greatly contribute to Jagged Peak's continued success. Her insights into the public markets and broad investment experience will be invaluable as the Company builds upon its premier position in the Delaware Basin located within the greater Permian Basin."
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
View original content:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-the-addition-of-adrianna-c-ma-to-its-board-of-directors-300890694.html
SOURCE Jagged Peak Energy Inc.
DENVER, July 22, 2019 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") today announced that it plans to release its second quarter 2019 earnings and operational update after market close on August 8, 2019, and will host a conference call to discuss those results and updates on August 9, 2019 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time).
To join the live, interactive call, please dial 1-877-823-8605 (1-647-689-5644 international) with the conference ID 7790428. The call will be webcast live and accessible on the Investor Relations section of the Company's website at www.jaggedpeakenergy.com.
A telephone replay of the call will be available through August 16, 2019 by dialing 1-800-585-8367 (1-416-621-4642 international) with the passcode 7790428. Additionally, a replay will be available on the Company's website approximately two hours after the conference call.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas. For more information, visit our website at www.jaggedpeakenergy.com.
View original content to download multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-schedules-second-quarter-2019-earnings-and-operational-update-conference-call-300888959.html
SOURCE Jagged Peak Energy Inc.
DENVER, June 12, 2019 /PRNewswire/ -- EnerCom has released the presentation schedule for the oil and gas companies presenting at its 24th annual The Oil & Gas Conference® on Aug. 11-14, 2019, in Denver, Colorado.
Day One Presenting Companies at the 2019 EnerCom Conference
Aug. 12, 2019, the first day of the EnerCom conference presentation schedule, features a large, established group of operators working across North America's shale basins and internationally, including:
The conference investor presentations begin at 7:30 a.m. and run through 4:30 p.m. on Monday, Aug. 12.
Expert Speakers: Global energy industry leaders, economists, market strategists, government officials, energy finance professionals and other energy experts will provide their insights on global commodities markets, energy exports, frac sand supply and logistics, and capital sources for energy development.
EnerCom is pleased to include Credit Agricole CIB's Chief Economist for the United States Michael Carey as a guest expert speaker at 11:30 a.m. on Monday, Aug. 12. Carey will provide his insight on energy markets, capital markets and market conditions going forward.
Monday's luncheon keynote address on Aug. 12, 2019 will be provided by Cedric Burgher, Occidental Petroleum (NYSE: OXY) CFO.
Online Registration is Open for EnerCom's 24TH Annual The Oil & Gas Conference®: Buyside investors and oil and gas company professionals may register for the event through the conference website registration page.
Conference Details: The Oil & Gas Conference® 24 offers investment professionals the opportunity to listen to senior management teams in the oil and gas industry present operational and financial strategies and to gain exposure to important energy topics affecting the global oil and gas industry.
The EnerCom conference forum fosters healthy dialogue and informal networking opportunities for attendees at several sponsored events the week of the conference.
Public and Private Company Presenters: The 2019 edition of EnerCom's The Oil & Gas Conference® will feature public and private oil and gas companies with operations around the world including the U.S. shale basins, the Gulf of Mexico and Canada. A work-in-progress list of the 2019 presenting companies will be updated on the conference website. The daily schedule of presenters is also posted on the website (presenters, days, times are subject to change).
How to Hear the Luncheon Speakers: Completing online registration well in advance of The Oil & Gas Conference® will provide your best chance to gain insight from Occidental Petroleum SVP and chief financial officer Cedric Burgher, Continental Resources Chairman and CEO Harold Hamm, and global supermajor Eni, SpA VP of North America Investor Relations Andrew Lees.
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, family offices, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2018, EnerCom arranged and managed more than 2,000 one-on-one meeting requests.
How to Register: Investment professionals and oil and gas companies may register for the event through the conference website.
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; and Drillinginfo. Sponsors of The Oil & Gas Conference® 24 include CIBC; Credit Agricole CIB; McGriff, Seibels & Williams; Haynes and Boone; Moss Adams; PNC; Preng & Associates; Bank of America Merrill Lynch; DNB Bank ASA; Holland & Hart; MUFG; Petrie Partners; SMBC; and Wells Fargo.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized management consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor relations, media relations, external communications and visual communications design.
EnerCom produces and publishes numerous data products and external communications tools for public energy companies and oil and gas investors including:
Headquartered in Denver, with senior consultants in Dallas, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries. EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 11-14, 2019
EnerCom Dallas – Q1 - 2020
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About Drillinginfo
Drillinginfo delivers business-critical insights to the energy, power, and commodities markets. Its state-of-the-art SaaS platform offers sophisticated technology, powerful analytics, and industry-leading data. Drillinginfo's solutions deliver value across upstream, midstream and downstream markets, empowering exploration and production (E&P), oilfield services, midstream, utilities, trading and risk, and capital markets companies to be more collaborative, efficient, and competitive. Drillinginfo delivers actionable intelligence over mobile, web, and desktop to analyze and reduce risk, conduct competitive benchmarking, and uncover market insights. Drillinginfo serves over 5,000 companies globally from its Austin, Texas headquarters and has more than 1,000 employees.
For more information visit drillinginfo.com
About CIBC
CIBC is a leading Canadian-based global financial institution with a reputation as a strong, reliable banking partner focused on delivering customized products and services built on innovative thinking and leading technology.
Through our major business units – Canadian Personal & Business Banking, Canadian Commercial Banking & Wealth Management, U.S. Commercial Banking & Wealth Management and Capital Markets – our more than 45,000 employees provide a full range of financial products and services to 10 million clients around the world.
With offices throughout North America and other major financial centers, we are widely recognized as a strong global financial institution with more than $634 billion in assets and a market capitalization of $50 billion. We are rated A+ by Standard & Poor's, Aa2 by Moody's Investor Service and AA- by Fitch Ratings.
Our dedicated industry specialists based in Houston, New York, Calgary, London, Hong Kong, Beijing, Tokyo, Singapore and Sydney draw on the breadth of our capabilities to support firms across the entire energy value chain. From credit commitments, A&D advisory, M&A, and capital markets, we help our clients achieve their objectives and unlock value across a range of market conditions.
Visit www.cibccm.com/energy to learn more about CIBC Capital Markets and our energy capabilities.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
McGriff, Seibels & Williams
As one of the most progressive insurance brokerage firms in the United States, McGriff, Seibels & Williams leads the way with innovative programs to protect our clients' financial interests. Our experienced professionals work with some of the world's largest corporations to design state-of-the-art solutions for a full range of needs "…from property and casualty exposures…to employee benefits, life and pension plans…to financial services and surety products…to specialty insurance programs."
Our philosophy of personal service and attention to individual needs puts the client at the top of our organizational chart. We work to make each relationship a long-term partnership that continues to grow in value.
For more information please visit mcgriff.com.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group. With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home .
About PNC Financial Services Group
PNC is one of the largest, best-regarded and best-capitalized financial services companies in the country, with approximately $325 billion in assets and offices in 33 states, Canada and the United Kingdom.
PNC's Energy Group, headed by Tom Byargeon, is a significant capital and service provider to energy companies, with approximately $6.5 billion in commitments to the industry. The Energy office in Houston houses a team with extensive experience and deep relationships across the entire energy supply chain. This group also offers strategic corporate finance advice and delivers PNC's comprehensive set of solutions and capabilities, including commodity and interest rate hedging, debt capital markets, loan syndications, treasury management, asset securitization, equipment finance and institutional investments.
For more information, please contact Tom Byargeon at 713-353-8782 or tom.byargeon@pnc.com. You can also visit www.pnc.com.
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Holland & Hart
Holland & Hart's oil and gas clients include the major, large independent producers and small to medium sized independents.
The Mountain West is one of the nation's leading oil and gas producing regions, and we are the only law firm with established oil and gas lawyers in every state in the region. We provide clients broad-based, in-depth industry knowledge and legal capabilities by local practitioners who have long-standing professional relationships with decision makers in each of the Mountain West states.
We assist clients at every stage of the oil and gas business, from upstream activities including exploration, production, secondary and tertiary recovery, to midstream gathering and processing activities; and to downstream elements including refining, pipelines, local distribution, marketing, and Federal and State utility regulation. Within each segment of the oil and gas business, Holland & Hart's regional team has experience providing representation every step of the way.
For details, please contact Lisa Adelberg in the Denver office: (303) 295-8148.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) has been a leading provider of banking services to the oil and gas industry in the Americas for more than 30 years, consistently ranking in the Top 10 Lead Arrangers and Top 10 Bond Arrangers in the Thomson Reuters Oil and Gas League Tables.
We support clients across the industry—from regional exploration and production to global diversified services companies—that benefit from our focused approach, strong execution, and customized services. Whether you are looking to expand existing reserves, make an acquisition, or streamline operations, we can support your growth with services, including: underwriting and syndications; U.S./Canadian cross-border funding; securities underwriting and placements; leasing and tax equity financing; and commodities, interest rate, and foreign exchange risk management.
For more information, visit: www.mufgamericas.com/oil-gas.
About Petrie Partners
Petrie Partners, LLC is a boutique investment banking firm offering financial advisory services to the oil and gas industry. We provide specialized advice on mergers, divestitures and acquisitions and private placements.
For more information please refer to petrie.com.
About SMBC
Sumitomo Mitsui Banking Corporation (SMBC) is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest 25 banks globally by assets under management.
SMBC Americas Division, with more than 2,500 employees, oversees operations in the U.S., Canada, Mexico, and South America. We work across SMFG to offer corporate and institutional clients sophisticated and comprehensive financial services around the globe.
SMBC's roots in Japan trace back more than 400 years to 1590. The Americas Division of SMBC has more than a century of experience in the United States, beginning when the San Francisco branch of Sumitomo Bank was established in 1919. Sumitomo Mitsui Financial Group (NYSE: SMFG) was listed on the New York Stock Exchange in 2010.
For more information please visit the corporate website: www.smbcgroup.com/americas/group-companies/
About Wells Fargo & Company
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
The Energy Banking Group, headed by Bart Schouest, provides corporate banking products and services to the energy sector, including upstream, midstream, oilfield services, and diversified industries. With offices in Houston, Dallas, Denver, Calgary, and Aberdeen the group's success is driven by in-depth industry expertise and longstanding relationships with key industry participants. The group has over $45 billion of credit commitments to public and private companies across the upstream, midstream, downstream, services, and power and utilities sectors.
The Energy & Power Investment Banking Group, headed by James Kipp, provides strategic advisory and corporate finance expertise to energy and power clients, including upstream, midstream, oilfield services, downstream, coal and the power & utilities sectors. Areas of focus include equity, equity-linked and debt underwritings, private placements, syndications, and mergers and acquisitions. The Energy & Power Investment Banking Group has offices in Houston and Charlotte.
These teams work together to offer clients industry and product expertise, in addition to sharing their understanding of internal and external forces that drive both industry trends and financial markets. For additional information, contact us at 713-319-1350 or Energy@wellsfargo.com.
View original content:http://www.prnewswire.com/news-releases/enercom-posts-schedule-of-presenters-for-the-oil--gas-conference-aug-11-14-2019-300866065.html
SOURCE EnerCom, Inc.
DENVER, June 5, 2019 /PRNewswire/ -- EnerCom is pleased to announce that global oil and gas giant Eni, SpA Vice President Andrew Lees will deliver the keynote luncheon address at EnerCom's The Oil & Gas Conference® on Aug. 14, 2019.
Eni, SpA
Eni, SpA (NYSE: E) is an Italian global oil and gas and energy company operating in 67 countries worldwide, with 30,000 employees in upstream, midstream and downstream operations. Eni reported daily production for oil and gas of 1.85 MMBOPD for 2018. The company's adjusted operating profit for 2018 more than doubled its 2017 operating profit and represented Eni's best performance of the past eight years, Eni reports.
In 2018 Eni, SpA's upstream exploration group operated in:
Goliat has been developed using the world's largest and most sophisticated cylindrical floating production and storage unit - FPSO—it is the largest and most sophisticated cylindrical FPSO ever built with production capacity of a million barrels of oil.
"With the increasing integration of Upstream and Mid-downstream and due to the massive amount of gas we have discovered, we are turning into a gas and power company with an evolving model that is that is still tied to retail but linked to Upstream," Eni said.
Andrew Lees
Andrew Lees is vice president of North America investor relations for Eni, SpA.
Lees draws on a wealth of energy investing, analysis and oil and gas finance and capital experience in his leadership of Eni, SpA's North American investor relations duties. Before joining Eni in 2015, he was principal at Gadsden Enterprises, LLC. Lees previously served as Invesco's lead portfolio manager for both the energy team and the gold and precious metals team. He entered the investment industry in 1994 and worked for Invesco from 2005 to 2013. Before Invesco Lees served as director of investment banking with Trinity Capital Services, director and research analyst with RBC Capital Markets, VP and senior analyst for Stifel, Nicolaus & Co., senior analyst for Petrie Parkman & Co., and as a research analyst for A.G. Edwards.
How to Hear the Speakers: Completing online registration well in advance of The Oil & Gas Conference® will provide your best chance to gain insight from global supermajor Eni during Mr. Lees' luncheon as well as hearing the luncheon discussions with Continental Resources Chairman and CEO Harold Hamm and Occidental Petroleum SVP and chief financial officer Cedric Burgher earlier in the conference.
Online Registration is Open for EnerCom's 24TH Annual The Oil & Gas Conference®: The conference is August 11-14, 2019, at the Westin Denver Downtown hotel. Buyside investors and oil and gas company professionals may register for the event through the conference website.
Conference Details: The Oil & Gas Conference® 24 offers investment professionals the opportunity to listen to senior management teams in the oil and gas industry present operational and financial strategies and to gain exposure to important energy topics affecting the global oil and gas industry.
The EnerCom forum fosters healthy dialogue and informal networking opportunities for attendees.
Public and Private Company Presenters: The 2019 edition of EnerCom's The Oil & Gas Conference® will feature public and private oil and gas companies with operations around the world including the U.S. shale basins, the Gulf of Mexico and Canada. A work-in-progress list of the 2019 presenting companies will be updated on the conference website.
The list of EnerCom's 2019 presenting companies includes (but is not limited to) the following companies:
Additional Speakers: Global energy industry leaders, economists, market strategists, government officials, energy finance professionals and other energy experts will provide their insights on global commodities markets, the U.S. becoming a net energy exporter, frac sand supply and logistics, and capital sources for energy development.
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, family offices, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2018, EnerCom arranged and managed more than 2,000 one-on-one meeting requests.
How to Register: Investment professionals and oil and gas companies can register for the event through the conference website.
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; and Drillinginfo.
Sponsors of The Oil & Gas Conference® 24 include CIBC; Credit Agricole CIB; McGriff, Seibels & Williams; Haynes and Boone; Moss Adams; PNC; Preng & Associates; Bank of America Merrill Lynch; DNB Bank ASA; Holland & Hart; MUFG; Petrie Partners; SMBC; and Wells Fargo.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized management consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor relations, media relations, external communications and visual communications design.
EnerCom produces and publishes numerous data products and external communications tools for public energy companies and oil and gas investors including:
Headquartered in Denver, with senior consultants in Dallas, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries. EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 11-14, 2019
EnerCom Dallas – Q1 - 2020
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About Drillinginfo
Drillinginfo delivers business-critical insights to the energy, power, and commodities markets. Its state-of-the-art SaaS platform offers sophisticated technology, powerful analytics, and industry-leading data. Drillinginfo's solutions deliver value across upstream, midstream and downstream markets, empowering exploration and production (E&P), oilfield services, midstream, utilities, trading and risk, and capital markets companies to be more collaborative, efficient, and competitive. Drillinginfo delivers actionable intelligence over mobile, web, and desktop to analyze and reduce risk, conduct competitive benchmarking, and uncover market insights. Drillinginfo serves over 5,000 companies globally from its Austin, Texas headquarters and has more than 1,000 employees.
For more information visit drillinginfo.com
About CIBC
CIBC is a leading North American bank headquartered in Canada and with offices around the world. CIBC was originally founded nearly 150 years ago and has supported and financed the energy industry for many decades. CIBC was recently ranked as the strongest publicly traded bank in North America by Bloomberg and is rated A+/Aa3 by S&P and Moody's, respectively.
Our energy specialists draw on the breadth of CIBC's capabilities to provide market insights and creative solutions for our clients. Services include corporate banking, commodity and interest rate hedging and strategy, A&D advisory, and capital markets.
CIBC is publicly traded on the NYSE and Toronto Stock Exchange under the symbol "CM" and has a market cap of $36 billion and nearly $400 billion in total assets. For more information, please visit the CIBC energy website.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
McGriff, Seibels & Williams
As one of the most progressive insurance brokerage firms in the United States, McGriff, Seibels & Williams leads the way with innovative programs to protect our clients' financial interests. Our experienced professionals work with some of the world's largest corporations to design state-of-the-art solutions for a full range of needs "…from property and casualty exposures…to employee benefits, life and pension plans…to financial services and surety products…to specialty insurance programs."
Our philosophy of personal service and attention to individual needs puts the client at the top of our organizational chart. We work to make each relationship a long-term partnership that continues to grow in value.
For more information please visit mcgriff.com.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group. With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA
joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home .
About PNC Financial Services Group
PNC is one of the largest, best-regarded and best-capitalized financial services companies in the country, with approximately $325 billion in assets and offices in 33 states, Canada and the United Kingdom.
PNC's Energy Group, headed by Tom Byargeon, is a significant capital and service provider to energy companies, with approximately $6.5 billion in commitments to the industry. The Energy office in Houston houses a team with extensive experience and deep relationships across the entire energy supply chain. This group also offers strategic corporate finance advice and delivers PNC's comprehensive set of solutions and capabilities, including commodity and interest rate hedging, debt capital markets, loan syndications, treasury management, asset securitization, equipment finance and institutional investments.
For more information, please contact Tom Byargeon at 713-353-8782 or tom.byargeon@pnc.com. You can also visit www.pnc.com.
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Holland & Hart
Holland & Hart's oil and gas clients include the major, large independent producers and small to medium sized independents.
The Mountain West is one of the nation's leading oil and gas producing regions, and we are the only law firm with established oil and gas lawyers in every state in the region. We provide clients broad-based, in-depth industry knowledge and legal capabilities by local practitioners who have long-standing professional relationships with decision makers in each of the Mountain West states.
We assist clients at every stage of the oil and gas business, from upstream activities including exploration, production, secondary and tertiary recovery, to midstream gathering and processing activities; and to downstream elements including refining, pipelines, local distribution, marketing, and Federal and State utility regulation. Within each segment of the oil and gas business, Holland & Hart's regional team has experience providing representation every step of the way.
For details, please contact Lisa Adelberg in the Denver office: (303) 295-8148.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) has been a leading provider of banking services to the oil and gas industry in the Americas for more than 30 years, consistently ranking in the Top 10 Lead Arrangers and Top 10 Bond Arrangers in the Thomson Reuters Oil and Gas League Tables.
We support clients across the industry—from regional exploration and production to global diversified services companies—that benefit from our focused approach, strong execution, and customized services. Whether you are looking to expand existing reserves, make an acquisition, or streamline operations, we can support your growth with services, including: underwriting and syndications; U.S./Canadian cross-border funding; securities underwriting and placements; leasing and tax equity financing; and commodities, interest rate, and foreign exchange risk management.
For more information, visit: www.mufgamericas.com/oil-gas.
About Petrie Partners
Petrie Partners, LLC is a boutique investment banking firm offering financial advisory services to the oil and gas industry. We provide specialized advice on mergers, divestitures and acquisitions and private placements.
For more information please refer to petrie.com.
About SMBC
Sumitomo Mitsui Banking Corporation (SMBC) is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest 25 banks globally by assets under management.
SMBC Americas Division, with more than 2,500 employees, oversees operations in the U.S., Canada, Mexico, and South America. We work across SMFG to offer corporate and institutional clients sophisticated and comprehensive financial services around the globe.
SMBC's roots in Japan trace back more than 400 years to 1590. The Americas Division of SMBC has more than a century of experience in the United States, beginning when the San Francisco branch of Sumitomo Bank was established in 1919. Sumitomo Mitsui Financial Group (NYSE: SMFG) was listed on the New York Stock Exchange in 2010.
For more information please visit the corporate website: www.smbcgroup.com/americas/group-companies/
About Wells Fargo & Company
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
The Energy Banking Group, headed by Bart Schouest, provides corporate banking products and services to the energy sector, including upstream, midstream, oilfield services, and diversified industries. With offices in Houston, Dallas, Denver, Calgary, and Aberdeen the group's success is driven by in-depth industry expertise and longstanding relationships with key industry participants. The group has over $45 billion of credit commitments to public and private companies across the upstream, midstream, downstream, services, and power and utilities sectors.
The Energy & Power Investment Banking Group, headed by James Kipp, provides strategic advisory and corporate finance expertise to energy and power clients, including upstream, midstream, oilfield services, downstream, coal and the power & utilities sectors. Areas of focus include equity, equity-linked and debt underwritings, private placements, syndications, and mergers and acquisitions. The Energy & Power Investment Banking Group has offices in Houston and Charlotte.
These teams work together to offer clients industry and product expertise, in addition to sharing their understanding of internal and external forces that drive both industry trends and financial markets. For additional information, contact us at 713-319-1350 or Energy@wellsfargo.com.
View original content:http://www.prnewswire.com/news-releases/eni-vp-andrew-lees-to-keynote-enercoms-the-oil--gas-conference-aug-14-2019-300862186.html
SOURCE EnerCom, Inc.
DENVER, May 29, 2019 /PRNewswire/ -- EnerCom is pleased to announce that legendary oilman Harold G. Hamm, chairman and CEO of Continental Resources (NYSE: CLR), will take the stage for a discussion about U.S. shale and look at the prospects for U.S. oil and gas exploration in a "fireside chat" Tuesday, August 13, 2019, during EnerCom's The Oil & Gas Conference® in downtown Denver's Westin hotel.
Limited space is available for conference registrants to join the discussion with Mr. Hamm. Completing online registration well in advance of The Oil & Gas Conference® will provide your best chance to participate in Mr. Hamm's luncheon discussion during the 2019 EnerCom conference.
Harold Hamm and Continental Resources
Harold Hamm is founder, chairman and chief executive officer of Continental Resources, one of North America's iconic oil and gas explorers and producers and one of the leading oil producers in the Bakken oil play in the Williston Basin and the STACK/SCOOP plays in Oklahoma. With a market capitalization of $14.5 billion, Continental ranks in the top ten largest U.S. independent exploration and production companies, sharing the top of the list with companies like ConocoPhillips ($COP), EOG Resources ($EOG) and Occidental Petroleum (NYSE: OXY), whose CFO Cedric Burgher will give a luncheon keynote address at The Oil & Gas Conference® on Monday, Aug. 12.
Mr. Hamm is heavily involved with furthering the success of the U.S. oil and gas industry on a global scale. He co-founded and serves as chairman of the Domestic Energy Producers Alliance, whose goal is to preserve the millions of jobs and billions of dollars in economic activity and tax revenues generated by onshore drilling and production activities within the United States. Through his work with DEPA, Mr. Hamm is widely recognized as the man who led the charge to lift America's 40-year-old ban on U.S. crude oil exports, opening new global markets for America's oil producers.
Hamm, the youngest of 13 children born to a family of sharecroppers, began working in the oilfields as a teenager and founded Continental Resources in 1967 at the age of 21. He is a frequent guest on business and financial cable networks and global business publications. Mr. Hamm has been recognized by numerous industry groups as Executive of the Year, Wildcatter of the Year, Chief Roughneck, CEO of the Year and Entrepreneur of the Year. In 2012 Harold Hamm was named by TIME Magazine as one of the "100 Most Influential People in the World."
Online registration is open for EnerCom's 24TH annual The Oil & Gas Conference®
The conference is August 11-14, 2019, at the Westin Denver Downtown hotel. Buyside investors and oil and gas company professionals may register for the event through the conference website.
Conference Details: The Oil & Gas Conference® 24 offers investment professionals the opportunity to listen to senior management teams in the oil and gas industry present operational and financial strategies and to gain exposure to important energy topics affecting the global oil and gas industry.
The EnerCom forum fosters healthy dialogue and informal networking opportunities for attendees.
Public and Private Company Presenters: The 2019 edition of EnerCom's The Oil & Gas Conference® will feature public and private oil and gas companies with operations around the world including the U.S. shale basins, the Gulf of Mexico and Canada. A work-in-progress list of the 2019 presenting companies will be updated on the conference website.
The list of EnerCom's 2019 presenting companies includes (but is not limited to) the following companies:
Additional Speakers: Global energy industry leaders, economists, market strategists, government officials, energy finance professionals and other energy experts will provide their insights on global commodities markets, the U.S. becoming a net energy exporter, frac sand supply and logistics, and capital sources for energy development.
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, family offices, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2018, EnerCom arranged and managed more than 2,000 one-on-one meeting requests.
How to Register: Investment professionals and oil and gas companies can register for the event through the conference website.
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; and Drillinginfo.
Sponsors of The Oil & Gas Conference® 24 include CIBC; Credit Agricole CIB; McGriff, Seibels & Williams; Haynes and Boone; Moss Adams; PNC; Preng & Associates; Bank of America Merrill Lynch; DNB Bank ASA; Holland & Hart; MUFG; Petrie Partners; SMBC; and Wells Fargo.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized management consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor relations, media relations, external communications and visual communications design.
EnerCom produces and publishes numerous data products and external communications tools for public energy companies and oil and gas investors including:
Headquartered in Denver, with senior consultants in Dallas, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries. EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 11-14, 2019
EnerCom Dallas – Q1 - 2020
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About Drillinginfo
Drillinginfo delivers business-critical insights to the energy, power, and commodities markets. Its state-of-the-art SaaS platform offers sophisticated technology, powerful analytics, and industry-leading data. Drillinginfo's solutions deliver value across upstream, midstream and downstream markets, empowering exploration and production (E&P), oilfield services, midstream, utilities, trading and risk, and capital markets companies to be more collaborative, efficient, and competitive. Drillinginfo delivers actionable intelligence over mobile, web, and desktop to analyze and reduce risk, conduct competitive benchmarking, and uncover market insights. Drillinginfo serves over 5,000 companies globally from its Austin, Texas headquarters and has more than 1,000 employees.
For more information visit drillinginfo.com
About CIBC
CIBC is a leading North American bank headquartered in Canada and with offices around the world. CIBC was originally founded nearly 150 years ago and has supported and financed the energy industry for many decades. CIBC was recently ranked as the strongest publicly traded bank in North America by Bloomberg and is rated A+/Aa3 by S&P and Moody's, respectively.
Our energy specialists draw on the breadth of CIBC's capabilities to provide market insights and creative solutions for our clients. Services include corporate banking, commodity and interest rate hedging and strategy, A&D advisory, and capital markets.
CIBC is publicly traded on the NYSE and Toronto Stock Exchange under the symbol "CM" and has a market cap of $36 billion and nearly $400 billion in total assets. For more information, please visit the CIBC energy website.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
McGriff, Seibels & Williams
As one of the most progressive insurance brokerage firms in the United States, McGriff, Seibels & Williams leads the way with innovative programs to protect our clients' financial interests.
Our experienced professionals work with some of the world's largest corporations to design state-of-the-art solutions for a full range of needs "…from property and casualty exposures…to employee benefits, life and pension plans…to financial services and surety products…to specialty insurance programs."
Our philosophy of personal service and attention to individual needs puts the client at the top of our organizational chart. We work to make each relationship a long-term partnership that continues to grow in value.
For more information please visit mcgriff.com.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group.
With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA
joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home.
About PNC Financial Services Group
PNC is one of the largest, best-regarded and best-capitalized financial services companies in the country, with approximately $325 billion in assets and offices in 33 states, Canada and the United Kingdom.
PNC's Energy Group, headed by Tom Byargeon, is a significant capital and service provider to energy companies, with approximately $6.5 billion in commitments to the industry. The Energy office in Houston houses a team with extensive experience and deep relationships across the entire energy supply chain. This group also offers strategic corporate finance advice and delivers PNC's comprehensive set of solutions and capabilities, including commodity and interest rate hedging, debt capital markets, loan syndications, treasury management, asset securitization, equipment finance and institutional investments.
For more information, please contact Tom Byargeon at 713-353-8782 or tom.byargeon@pnc.com. You can also visit www.pnc.com.
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Holland & Hart
Holland & Hart's oil and gas clients include the major, large independent producers and small to medium sized independents.
The Mountain West is one of the nation's leading oil and gas producing regions, and we are the only law firm with established oil and gas lawyers in every state in the region. We provide clients broad-based, in-depth industry knowledge and legal capabilities by local practitioners who have long-standing professional relationships with decision makers in each of the Mountain West states.
We assist clients at every stage of the oil and gas business, from upstream activities including exploration, production, secondary and tertiary recovery, to midstream gathering and processing activities; and to downstream elements including refining, pipelines, local distribution, marketing, and Federal and State utility regulation. Within each segment of the oil and gas business, Holland & Hart's regional team has experience providing representation every step of the way.
For details, please contact Lisa Adelberg in the Denver office: (303) 295-8148.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) has been a leading provider of banking services to the oil and gas industry in the Americas for more than 30 years, consistently ranking in the Top 10 Lead Arrangers and Top 10 Bond Arrangers in the Thomson Reuters Oil and Gas League Tables.
We support clients across the industry—from regional exploration and production to global diversified services companies—that benefit from our focused approach, strong execution, and customized services. Whether you are looking to expand existing reserves, make an acquisition, or streamline operations, we can support your growth with services, including: underwriting and syndications; U.S./Canadian cross-border funding; securities underwriting and placements; leasing and tax equity financing; and commodities, interest rate, and foreign exchange risk management.
For more information, visit: www.mufgamericas.com/oil-gas.
About Petrie Partners
Petrie Partners, LLC is a boutique investment banking firm offering financial advisory services to the oil and gas industry. We provide specialized advice on mergers, divestitures and acquisitions and private placements.
For more information please refer to petrie.com.
About SMBC
Sumitomo Mitsui Banking Corporation (SMBC) is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest 25 banks globally by assets under management.
SMBC Americas Division, with more than 2,500 employees, oversees operations in the U.S., Canada, Mexico, and South America. We work across SMFG to offer corporate and institutional clients sophisticated and comprehensive financial services around the globe.
SMBC's roots in Japan trace back more than 400 years to 1590. The Americas Division of SMBC has more than a century of experience in the United States, beginning when the San Francisco branch of Sumitomo Bank was established in 1919. Sumitomo Mitsui Financial Group (NYSE: SMFG) was listed on the New York Stock Exchange in 2010.
For more information please visit the corporate website: www.smbcgroup.com/americas/group-companies/
About Wells Fargo & Company
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
The Energy Banking Group, headed by Bart Schouest, provides corporate banking products and services to the energy sector, including upstream, midstream, oilfield services, and diversified industries. With offices in Houston, Dallas, Denver, Calgary, and Aberdeen the group's success is driven by in-depth industry expertise and longstanding relationships with key industry participants. The group has over $45 billion of credit commitments to public and private companies across the upstream, midstream, downstream, services, and power and utilities sectors.
The Energy & Power Investment Banking Group, headed by James Kipp, provides strategic advisory and corporate finance expertise to energy and power clients, including upstream, midstream, oilfield services, downstream, coal and the power & utilities sectors. Areas of focus include equity, equity-linked and debt underwritings, private placements, syndications, and mergers and acquisitions. The Energy & Power Investment Banking Group has offices in Houston and Charlotte.
These teams work together to offer clients industry and product expertise, in addition to sharing their understanding of internal and external forces that drive both industry trends and financial markets. For additional information, contact us at 713-319-1350 or Energy@wellsfargo.com.
View original content:http://www.prnewswire.com/news-releases/continental-petroleum-chairman-harold-hamm-to-keynote-enercoms-the-oil--gas-conference-tues-aug-13-2019-300858017.html
SOURCE EnerCom, Inc.
DENVER, May 9, 2019 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the first quarter ended March 31, 2019.
Jim Kleckner, President and Chief Executive Officer, commented, "Our first quarter results are reflective of the primary focus we have put on improving our capital efficiency in 2019. We have significantly reduced our DC&E costs by capturing approximately 75% of our expected annual per lateral foot DC&E savings in the first quarter. From an inventory development standpoint, we have recently reworked our drilling and completions program for 2019 to utilize larger scale pads and have replaced several two-well pads with the six-well Coriander and eight-well Venom projects in our Whiskey River area. With this new drill schedule, we begin to transition into multi-horizon co-development projects, where we can realize increased capital and operating efficiencies. While these larger projects optimize the development of our acreage, we estimate that they are net neutral for capital and production in 2019 and thus we confirm our full-year guidance and our commitment to our previously announced 2019 capital budget."
First Quarter Results
During the first quarter of 2019, the Company turned online 12 gross operated wells and reported average daily oil production for the quarter of 28.1 MBbls per day, at the midpoint of the Company's previously announced guidance range of 27.5 – 28.9 MBbls per day. Total equivalent production averaged 36.7 MBoe per day for the first quarter, at the lower end of the Company's previously announced guidance range of 36.5 – 37.9 MBoe per day. First quarter production mix was comprised of 77% oil, 12% NGLs, and 11% natural gas. The change in production mix is primarily a result of reduced NGL recoveries, which resulted in lower Boe production volumes despite midpoint oil production.
Revenue for the first quarter of 2019 was $129.6 million, compared to $129.1 million in the first quarter of 2018. The relatively unchanged revenue in the first quarter of 2019 compared to the same period in 2018 was a result of a 33% increase in production volumes and a 24% decrease in unhedged realized pricing on a per Boe basis. The Company's oil averages 41-degree API gravity and receives Midland pricing based off WTI benchmark. Average realized prices for the first quarter of 2019 are included in the table below.
Three Months Ended March 31, 2019 | |||||||
Before the Effects of | After the Effects of | ||||||
Oil ($/Bbl) | $ | 48.81 | $ | 47.83 | |||
NGL ($/Bbl) | $ | 9.52 | $ | 9.52 | |||
Gas ($/Mcf) | $ | 1.02 | $ | 1.02 | |||
Boe ($/Boe) | $ | 39.28 | $ | 38.53 |
The table below provides a summary of the Company's first quarter 2019 actual results in comparison to its previously provided guidance ranges.
Three Months Ended March 31, 2019 | |||
Actual | Guidance (1) | ||
Production | |||
Average daily equivalent production (MBoe/d) | 36.7 | 36.5 – 37.9 | |
Average daily oil production (MBbl/d) | 28.1 | 27.5 – 28.9 | |
Three Months Ended | Full-Year 2019 | ||
Actual | Guidance (1) | ||
Production | |||
Average daily equivalent production (MBoe/d) | 36.7 | 38.3 – 41.3 | |
Average daily oil production (MBbl/d) | 28.1 | 29.2 – 31.2 | |
Income Statement | |||
Lease operating expense ($/Boe) | $4.14 | $3.65 – $4.15 | |
General and administrative (before equity-based compensation) ($MM) (Non-GAAP) | $10.5 | $46 – $50 | |
Production and ad valorem taxes (% of revenue) | 7.2% | 6.0% – 7.0% | |
Capital Expenditures | |||
Drilling and completion ($MM) | $136.7 | $580 – $630 | |
Infrastructure and other ($MM) | $5.6 | $25 – $35 | |
Total development capital ($MM) | $142.4 | $605 – $665 | |
Operated Activity | |||
Gross horizontal wells brought online | 12 | 52 – 56 |
Note: Totals may not foot due to rounding. |
(1) Guidance as provided in the Company's fourth quarter earnings and operational update press release on February 28, 2019. |
The Company's lease operating expense ("LOE") per Boe for the quarter trended toward the upper end of the Company's provided guidance range primarily driven by fishing costs on three workover projects that totaled over $1 million. Given the unusual nature of these items, the Company expects its LOE per Boe to reduce throughout the remainder of the year and is confirming its full-year guidance range.
For the first quarter of 2019, the Company reported a net loss of $94.9 million, or $0.44 per diluted common share. Net loss for the first quarter of 2018 was $39.4 million, or $0.18 per diluted common share. Adjusted net income (a non-GAAP measure) for the first quarter of 2019, was $18.2 million, or $0.09 per diluted common share, compared to $26.4 million, or $0.12 per diluted common share for the same period in 2018. Adjusted net income (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as certain equity-based compensation, non-cash mark-to-market gains or losses on derivatives and impairment expense, further adjusted for any associated changes in estimated income tax expense. Adjusted EBITDAX (a non-GAAP measure) for the first quarter of 2019 was $93.7 million, an increase of $8.2 million from the first quarter of 2018.
Please reference the reconciliations of these non-GAAP measures to the most directly comparable GAAP measures at the end of this release.
Capital expenditures for drilling and completion activities were $136.7 million for the three months ended March 31, 2019. Activity during the quarter included drilling 13 and completing 12 gross (11.8 net) wells, all of which, were operated by Jagged Peak. Additionally, a portion of the capital spent during the first quarter relates to 16 gross (14.7 net) operated wells that were in various stages of being drilled or completed at March 31, 2019. Including capital expenditures for infrastructure of $5.6 million and leasehold acquisition costs of $12.2 million, total capital expenditures for the quarter were $154.6 million. The Company's leasehold acquisition costs for the quarter were primarily a result of increases to mineral rights in Whiskey River and extension payments on existing leases.
The table below provides a comparative breakout of the Company's capital expenditures for the periods indicated:
Three Months Ended March 31, | |||||||
(in thousands) | 2019 | 2018 | |||||
Acquisitions | |||||||
Proved properties | $ | 6,823 | $ | — | |||
Unproved properties | 5,377 | 7,324 | |||||
Drilling and completion costs | 136,730 | 207,615 | |||||
Infrastructure costs | 5,635 | 3,936 | |||||
Exploration costs | — | — | |||||
Total oil and gas capital expenditures | $ | 154,565 | $ | 218,875 |
The Company has made significant progress on reducing its capital costs during the first quarter of 2019. The Company targeted an average drill, complete, and equipment cost of $1,250 per lateral foot in 2019, down from $1,450 per lateral foot in 2018. Year-to-date, the Company's drilling completion and equipment costs have averaged $1,300 per lateral foot primarily as a result of decreased service costs and changes to completion design.
Updated 2019 Capital, Production, and Operating Guidance
The Company is providing its second quarter production guidance and has confirmed all of its fourth quarter and full-year guidance ranges. The Company's second quarter production is expected to grow modestly from the first quarter as the Company recovers from greater than expected power outages in April and continues work on its six-well Coriander pad. During the second quarter, the Company plans to turn online between 12 and 14 gross wells. The Company's Coriander pad will target the 3rd Bone Spring, Wolfcamp A, and Wolfcamp B zones. This six-well pad will utilize three rigs, each drilling two-well pads, shortening the cycle time of the project from spud to sales. This pad is expected to be turned online in the third quarter of 2019. After the Coriander pad, the Company intends to begin work on its eight-well Venom pad, which is expected to be spud by the end of the second quarter and be turned online in the fourth quarter of 2019. By shifting the 2019 program to include these two larger scale projects, the resulting growth profile is weighted to the second-half of the year, but maintains full-year capital, turned online count, and production volume guidance. The table below provides an updated summary of the Company's capital, production, and operating guidance for the second quarter and full-year 2019.
Guidance for the Three Months | |
Production | |
Average daily equivalent production (MBoe/d) | 36.6 – 38.0 |
Average daily oil production (MBbl/d) | 27.8 – 29.2 |
Guidance for the Full-Year 2019 | |
Production | |
Average daily equivalent production (MBoe/d) | 38.3 – 41.3 |
Average daily oil production (MBbl/d) | 29.2 – 31.2 |
Income Statement | |
Lease operating expense ($/Boe) | $3.65 – $4.15 |
General and administrative (before equity-based compensation) ($MM) (Non-GAAP) | $46 – $50 |
Production and ad valorem taxes (% of revenue) | 6.0% – 7.0% |
Capital Expenditures | |
Drilling and completion ($MM) (1) | $580 – $630 |
Infrastructure and other ($MM) | $25 – $35 |
Total development capital ($MM) | $605 – $665 |
Operated Activity | |
Gross horizontal wells brought online | 52 – 56 |
Average working interest | ~95% |
Average lateral length per well | ~8,900' |
Non-operated Activity | |
Net horizontal wells brought online | 2.0 |
(1) Includes pad-level infrastructure and equipment |
Financial Update
At the end of the first quarter of 2019, the Company had $55.0 million drawn on its revolving credit facility and $6.5 million of cash on the balance sheet, resulting in total liquidity of $491.5 million. As of April 29, 2019, the Company's borrowing base and elected commitments were reaffirmed at $900 million and $540 million, respectively. Net debt to LTM adjusted EBITDAX (a non-GAAP measure) was 1.2x as of the end of the first quarter. The Company's current capital program is expected to keep the Company's leverage ratio, as measured by net debt to LTM adjusted EBITDAX, under 2.0x in a $50 per Bbl WTI environment. Please reference the reconciliation of this non-GAAP measure to the most directly comparable GAAP measure at the end of this release.
Subsequent to quarter end, the Company added approximately 2,000 Bbls per day of oil to its hedge book for 2020. Details of these additions are included in the commodity hedges schedule at the end of this release.
Conference Call
Jagged Peak will host a conference call and webcast to discuss its first quarter 2019 financial and operating results on May 10, 2019 at 9:00 am MST (11:00 am EST). The call will be webcast and accessible via the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. Dial-in information for this call is included below:
Phone Number | Conference ID | ||
Live Participant (Domestic) | 1-877-823-8605 | 4971498 | |
Live Participant (International) | 1-647-689-5644 | 4971498 | |
Replay(1) (Domestic) | 1-800-585-8367 | 4971498 | |
Replay(1) (International) | 1-416-621-4642 | 4971498 | |
(1) Replay available from 2:00 PM Eastern Time on May 10, 2019 through 12:00 midnight Eastern Time on May 24, 2019 |
Upcoming Investor Events
The Company will be participating in the following upcoming investor events:
Event | Date | Location | Management Attendees | |||
Citi | May 14-15, | Boston, MA | Jim Kleckner, President and CEO; | |||
2019 Global Energy & | 2019 | Ian Piper, VP, Finance, Corporate | ||||
RBC Capital Markets | June 4-5, | New York, NY | Ian Piper VP, Finance, Corporate | |||
2019 Global Energy and | 2019 | Planning | ||||
Wells Fargo | June 11-12, | San Francisco, CA | Bob Howard, EVP and CFO; | |||
4th Annual West Coast | 2019 | Craig Walters, EVP and COO | ||||
JP Morgan | June 18-19, | New York, NY | Jim Kleckner, President and CEO; | |||
2019 Energy Conference | 2019 | Bob Howard, EVP and CFO; Craig Walters, EVP and COO; Ian Piper, VP, Finance, Corporate Planning |
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions), will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, guidance estimates including all statements under the heading "Updated 2019 Capital, Production, and Operating Guidance"; the decrease in well costs and increased capital efficiency, the timing of the program, and its ultimate impact on well performance; the expected number of workover projects in 2019; expected capital expenditures and expected production; and the Company's expectation that it will continue to keep its leverage ratio under 2.0x during 2019. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, equity-based compensation expense, income taxes, contract termination fees, gains or losses on sales of assets, and net gains or losses on derivatives less net cash from/for derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows investors to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a non-GAAP performance measure used by management to evaluate financial performance, prior to non-cash market-to-market gains or losses on derivatives, impairment expense, exploratory dry hole costs, gain or loss on the sale of property, certain one-time or unusual items, such as certain equity-based compensation, contract termination fees, and the associated changes in estimated income tax. Management believes adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
Net Debt to LTM Adjusted EBITDAX
Net debt to LTM adjusted EBITDAX is a non-GAAP measure, which is defined as the face value of the Company's long-term debt, including its senior unsecured notes and amounts drawn on its credit facility, less cash and cash equivalents at quarter end, divided by the Company's last twelve month adjusted EBITDAX, as defined above.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Jagged Peak Energy Inc. | |||||||
Selected Operating Highlights | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2019 | 2018 | ||||||
Production volumes: | |||||||
Oil (MBbls) | 2,530 | 1,967 | |||||
Natural gas (MMcf) | 2,169 | 1,666 | |||||
NGLs (MBbls) | 407 | 239 | |||||
Total (MBoe) | 3,299 | 2,484 | |||||
Average daily production volumes: | |||||||
Oil (Bbls/d) | 28,114 | 21,850 | |||||
Natural gas (Mcf/d) | 24,104 | 18,510 | |||||
NGLs (Bbls/d) | 4,526 | 2,660 | |||||
Total (Boe/d) | 36,657 | 27,596 | |||||
Average Sales Prices Excluding Realized Hedge Settlements: | |||||||
Oil (per Bbl) | $ | 48.81 | $ | 61.39 | |||
Natural gas (per Mcf) | $ | 1.02 | $ | 1.73 | |||
NGLs (per Bbl) | $ | 9.52 | $ | 22.17 | |||
Combined (per Boe) | $ | 39.28 | $ | 51.90 | |||
Average Sales Prices Including Realized Hedge Settlements: | |||||||
Oil (per Bbl) | $ | 47.83 | $ | 53.52 | |||
Natural gas (per Mcf) | $ | 1.02 | $ | 1.73 | |||
NGLs (per Bbl) | $ | 9.52 | $ | 22.17 | |||
Combined (per Boe) | $ | 38.53 | $ | 45.67 | |||
Average Operating Costs (per Boe): | |||||||
Lease operating expenses | $ | 4.14 | $ | 3.91 | |||
Production and ad valorem tax expenses | $ | 2.82 | $ | 3.09 | |||
Depletion, depreciation, amortization and accretion | $ | 17.91 | $ | 19.31 | |||
General and administrative expense (before equity-based compensation expense) | $ | 3.17 | $ | 4.28 |
Jagged Peak Energy Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
March 31, 2019 | December 31, 2018 | |||||||
(in thousands) | ||||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 6,458 | $ | 35,229 | ||||
Other current assets | 83,439 | 165,905 | ||||||
Property and equipment, net | 1,625,554 | 1,530,285 | ||||||
Other noncurrent assets | 73,885 | 35,722 | ||||||
Total assets | $ | 1,789,336 | $ | 1,767,141 | ||||
Liabilities and Stockholders' Equity: | ||||||||
Current liabilities | $ | 243,645 | $ | 187,982 | ||||
Long-term debt | 544,549 | 489,239 | ||||||
Deferred income taxes | 98,173 | 124,418 | ||||||
Other long-term liabilities | 47,252 | 17,552 | ||||||
Stockholders' equity | 855,717 | 947,950 | ||||||
Total liabilities and stockholders' equity | $ | 1,789,336 | $ | 1,767,141 |
Jagged Peak Energy Inc. | |||||||
Condensed Consolidated Statements of Operations | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2019 | 2018 | ||||||
(in thousands, except per | |||||||
Revenues | |||||||
Oil, natural gas and NGL sales | $ | 129,586 | $ | 128,906 | |||
Other operating revenues | 9 | 147 | |||||
Total revenues | 129,595 | 129,053 | |||||
Operating Expenses | |||||||
Lease operating expenses | 13,650 | 9,720 | |||||
Production and ad valorem taxes | 9,302 | 7,674 | |||||
Exploration | — | — | |||||
Depletion, depreciation, amortization and accretion | 59,074 | 47,977 | |||||
Impairment of unproved oil and natural gas properties | 84 | 53 | |||||
Other operating expenses | 3,200 | 22 | |||||
General and administrative (before equity-based compensation) | 10,460 | 10,639 | |||||
General and administrative, equity-based compensation | 2,934 | 75,678 | |||||
Total operating expenses | 98,704 | 151,763 | |||||
Income (Loss) from Operations | 30,891 | (22,710) | |||||
Other Income and Expense | |||||||
Gain (loss) on commodity derivatives | (143,592) | (4,326) | |||||
Interest expense and other | (8,432) | (2,723) | |||||
Total other income (loss) | (152,024) | (7,049) | |||||
Income (Loss) before Income Taxes | (121,133) | (29,759) | |||||
Income tax expense (benefit) | (26,245) | 9,644 | |||||
Net Income (Loss) | $ | (94,888) | $ | (39,403) | |||
Net income (loss) per common share: | |||||||
Basic | $ | (0.44) | $ | (0.18) | |||
Diluted | $ | (0.44) | $ | (0.18) | |||
Weighted-average common shares outstanding: | |||||||
Basic | 213,270 | 213,003 | |||||
Diluted | 213,270 | 213,003 |
Jagged Peak Energy Inc. | |||||||
Consolidated Statements of Cash Flows | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Cash Flows from Operating Activities | |||||||
Net income (loss) | $ | (94,888) | $ | (39,403) | |||
Adjustments to reconcile to net cash provided by operating activities: | |||||||
Depletion, depreciation, amortization and accretion | 59,074 | 47,977 | |||||
Impairment of unproved oil and natural gas properties | 84 | 53 | |||||
Amortization of debt issuance costs | 586 | 600 | |||||
Deferred income taxes | (26,245) | 9,644 | |||||
Equity-based compensation | 2,934 | 75,678 | |||||
(Gain) Loss on commodity derivatives | 143,592 | 4,326 | |||||
Net cash receipts (payments) on settled derivatives | (2,470) | (15,479) | |||||
Other | (78) | (78) | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable and other current assets | (6,957) | (5,351) | |||||
Accounts payable and accrued liabilities | 3,352 | 2,275 | |||||
Net cash provided by operating activities | 78,984 | 80,242 | |||||
Cash Flows from Investing Activities | |||||||
Leasehold and acquisitions costs | (12,263) | (7,585) | |||||
Development of oil and natural gas properties | (149,448) | (185,982) | |||||
Other capital expenditures | (689) | (1,270) | |||||
Net cash used in investing activities | (162,400) | (194,837) | |||||
Cash Flows from Financing Activities | |||||||
Proceeds from senior secured revolving credit facility | 55,000 | 110,000 | |||||
Debt issuance costs | (76) | (1,523) | |||||
Employee tax withholding for settlement of equity compensation awards | (279) | (200) | |||||
Net cash provided by financing activities | 54,645 | 108,277 | |||||
Net Change in Cash and Cash Equivalents | (28,771) | (6,318) | |||||
Cash and Cash Equivalents, Beginning of Period | 35,229 | 9,523 | |||||
Cash and Cash Equivalents, End of Period | $ | 6,458 | $ | 3,205 |
Jagged Peak Energy Inc. | ||||||
Commodity Hedges | ||||||
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. The schedule below summarizes the hedges the Company has in place to hedge the price of WTI and the differential between the Cushing and Midland oil prices. | ||||||
As of May 3, 2019, the Company had the following commodity hedges in place for future production: | ||||||
Production Period | Volumes | Weighted | ||||
(MBbls) | ($/Bbl) | |||||
Oil Swaps: | ||||||
Second Quarter 2019 | 1,911 | $ | 59.95 | |||
Third Quarter 2019 | 1,932 | $ | 59.95 | |||
Fourth Quarter 2019 | 1,932 | $ | 59.95 | |||
Full Year 2019 | 5,775 | $ | 59.95 | |||
First Quarter 2020 | 910 | $ | 60.65 | |||
Second Quarter 2020 | 910 | $ | 60.65 | |||
Third Quarter 2020 | 920 | $ | 60.65 | |||
Fourth Quarter 2020 | 920 | $ | 60.65 | |||
Full Year 2020 | 3,660 | $ | 60.65 | |||
Oil Basis Swaps: | ||||||
Second Quarter 2019 | 2,093 | $ | (7.17) | |||
Third Quarter 2019 | 2,300 | $ | (4.79) | |||
Fourth Quarter 2019 | 2,300 | $ | (4.79) | |||
Full Year 2019 | 6,693 | $ | (5.53) | |||
First Quarter 2020 | 2,366 | $ | (1.31) | |||
Second Quarter 2020 | 2,366 | $ | (1.31) | |||
Third Quarter 2020 | 2,392 | $ | (1.31) | |||
Fourth Quarter 2020 | 2,392 | $ | (1.31) | |||
Full Year 2020 | 9,516 | $ | (1.31) |
Jagged Peak Energy Inc. | |||||||
Reconciliation of Adjusted Net Income, Adjusted EBITDAX and Adjusted EBITDAX Margin | |||||||
(Unaudited) | |||||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2019 | 2018 | ||||||
(in thousands, except for | |||||||
Adjusted Net Income (Loss) | |||||||
Net income (loss) | $ | (94,888) | $ | (39,403) | |||
Adjustments to reconcile to adjusted net income | |||||||
Impairment of unproved oil and natural gas properties | 84 | 53 | |||||
(Gain) loss on commodity derivatives, net, less net cash for/from derivative settlements | 141,122 | (11,153) | |||||
Equity-based compensation expense related to allocated management incentive units | — | 74,470 | |||||
Contract termination fee (1) | 3,200 | — | |||||
Income tax effect for the above items | (31,287) | 2,394 | |||||
Adjusted net income | $ | 18,231 | $ | 26,361 | |||
Adjusted net income per basic common share | $ | 0.09 | $ | 0.12 | |||
Adjusted net income per diluted common share | $ | 0.09 | $ | 0.12 | |||
Basic common shares | 213,270 | 213,003 | |||||
Diluted common shares (2) | 213,428 | 213,301 | |||||
Adjusted EBITDAX | |||||||
Net income (loss) | $ | (94,888) | $ | (39,403) | |||
Adjustments to reconcile to adjusted EBITDAX | |||||||
Interest expense, net of capitalized | 8,446 | 2,731 | |||||
Income tax expense (benefit) | (26,245) | 9,644 | |||||
Depletion, depreciation, amortization and accretion | 59,074 | 47,977 | |||||
Impairment of unproved oil and natural gas properties | 84 | 53 | |||||
Contract termination fee (1) | 3,200 | — | |||||
Exploration expenses | — | — | |||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements | 141,122 | (11,153) | |||||
Equity-based compensation expense | 2,934 | 75,678 | |||||
Adjusted EBITDAX | $ | 93,727 | $ | 85,527 | |||
Total production (MBoe) | 3,299 | 2,484 | |||||
Adjusted EBITDAX margin per Boe (3) | $ | 28.41 | $ | 34.43 |
(1) | Contract termination fee relates to the early termination of a frac fleet contract. These amounts are included as a part of Other operating expenses on the Condensed Consolidated Statements of Operations. |
(2) | Reflects the weighted-average number of common shares outstanding during the period as adjusted for the dilutive effects of outstanding restricted stock unit and performance stock unit awards. |
(3) | Adjusted EBITDAX margin is calculated as Adjusted EBITDAX divided by total production, expressed as adjusted EBITDAX per Boe. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-first-quarter-2019-financial-and-operating-results-300847624.html
SOURCE Jagged Peak Energy Inc.
DENVER, April 24, 2019 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") announced today the election of Janeen S. Judah to Jagged Peak's Board of Directors. Ms. Judah's election brings the number of directors to nine.
Ms. Judah has more than 35 years of operational, managerial, and environmental experience in the oil and gas industry and retired from Chevron Corporation ("Chevron") in 2018. Ms. Judah held numerous leadership positions at Chevron, including General Manager of Chevron's Southern Africa business unit, President of Chevron Environmental Management Company and General Manager of Reservoir and Production Engineering for Chevron Energy Technology Company. Ms. Judah served as the President of the Society of Petroleum Engineers ("SPE") from September 2016 to October 2017 while on secondment from Chevron, and as a member of the Board of Directors of SPE from 2003 to 2006 and from 2012 to 2018. Before joining Chevron in 1998, she held various upstream petroleum engineering positions for Texaco, Inc. and Atlantic Richfield Company (ARCO).
In 2018, Ms. Judah was recognized by Hart Energy/Oil and Gas Investor Magazine as a Top 25 Influential Women in Energy. She is also a member of the Board of Directors of Patterson-UTI Energy Inc., where she serves on the Audit and Nominating and Corporate Governance Committees and Crestwood Equity Partners LP, where she serves on the Audit Committee and chairs the Sustainability Committee. She is an NACD Governance Fellow and completed the NACD/Carnegie Mellon certificate in Cybersecurity Oversight. Ms. Judah holds Bachelor and Masters of Science degrees in Petroleum Engineering from Texas A&M University, a Masters of Business Administration from the University of Texas of the Permian Basin and a Juris Doctorate from the University of Houston Law Center. She is a Registered Professional Engineer in Texas and a member of the Texas bar.
"We are excited to welcome Janeen Judah to the Jagged Peak board of directors," said Charles D. Davidson, Chairman of the Board. "She's an established leader whose diverse technical, operational, and managerial expertise will greatly contribute to Jagged Peak's continued success. Her insights and industry experience will be invaluable as the Company builds upon its premier land position in the Delaware Basin located within the greater Permian Basin."
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
View original content to download multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-the-addition-of-janeen-s-judah-to-its-board-of-directors-300837691.html
SOURCE Jagged Peak Energy Inc.
DENVER, April 22, 2019 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") today announced that it plans to release its first quarter 2019 earnings and operational update after market close on May 9, 2019, and will host a conference call to discuss those results and updates on May 10, 2019 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time).
To join the live, interactive call, please dial 1-877-823-8605 (1-647-689-5644 international) with the conference ID 4971498. The call will be webcast live and accessible on the Investor Relations section of the Company's website at www.jaggedpeakenergy.com.
A telephone replay of the call will be available through May 24, 2019 by dialing 1-800-585-8367 (1-416-621-4642 international) with the passcode 4971498. Additionally, a replay will be available on the Company's website approximately two hours after the conference call.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas. For more information, visit our website at www.jaggedpeakenergy.com.
View original content to download multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-schedules-first-quarter-2019-earnings-and-operational-update-conference-call-300835196.html
SOURCE Jagged Peak Energy Inc.
DENVER, Feb. 28, 2019 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the fourth quarter and full-year ended December 31, 2018.
Jim Kleckner, President and Chief Executive Officer, commented, "2018 marked another successful year for Jagged Peak, as we firmly delivered on our objective of operational execution. We ended the year with top-tier operating margins, improved average well performance year-over-year, and reduced proved developed finding and development costs, which have resulted in peer-leading return on capital employed. The entire Jagged Peak team was instrumental in achieving each of our 2018 strategic goals, setting the stage for a strong 2019. As we begin the year, the team remains focused on driving additional efficiencies by executing on a 2019 program that contemplates an activity level similar to 2018 with approximately $75 million less in capital expenditures. As we continue to grow our early stage Company, we will strive to consistently provide capital efficient growth, while keeping the balance sheet strong at under two times leverage in a $50/Bbl commodity price environment. By executing on these goals, we believe that we can efficiently get to the size and scale where we can provide organic, sustainable free cash flow to our investors. By continually pressing on capital efficiency, we remain confident in our ability to create shareholder value on our contiguous acreage blocks in the core oil window of the southern Delaware Basin."
Fourth Quarter Results
During the fourth quarter, the Company turned online 9 gross operated wells and reported average daily production of 38.4 MBoe per day, above the high-end of the Company's previously announced guidance range of 36.0 – 38.0 MBoe per day. Oil production for the quarter averaged 29.1 MBbls per day, above the midpoint of the Company's previously announced guidance range of 28.0 – 30.0 MBbls per day. Average daily production in the fourth quarter of 2018, grew sequentially by 6% from the third quarter of 2018, and by 60% from the fourth quarter of 2017. Fourth quarter production mix was comprised of 76% oil, 15% NGLs, and 9% natural gas. Similar to the third quarter of 2018, the Company had increased ethane recovery, which resulted in increased NGL and oil equivalent volumes for the fourth quarter of 2018.
Reported revenue for the fourth quarter of 2018 was $138.5 million, compared to $104.4 million in the fourth quarter of 2017. The increase in revenue in the fourth quarter of 2018 compared to the same period in 2017 was a result of the 60% increase in production volumes, as fourth quarter 2018 average realized prices, before the effects of derivative settlements, were 17% below the fourth quarter of 2017 on a per Boe basis. Average realized prices for the fourth quarter of 2018 are included in the table below.
Three Months Ended December 31, 2018 | |||||||
Before the Effects of | After the Effects of | ||||||
Oil ($/Bbl) | $ | 48.22 | $ | 48.06 | |||
NGL ($/Bbl) (1) | $ | 15.44 | $ | 15.44 | |||
Gas ($/Mcf) (1) | $ | 0.70 | $ | 0.70 | |||
Boe ($/Boe) | $ | 39.18 | $ | 40.06 |
(1) Due to the adoption of ASC 606 (Revenue Recognition) as of January 1, 2018, the average sales prices are net of gathering and processing expenses ("G&P") of $0.25 per Mcf of natural gas and $5.69 per Bbl of NGLs. |
The table below provides a summary of the Company's fourth quarter and full-year 2018 actuals in comparison to its previously provided guidance ranges.
Three Months Ended December 31, 2018 | |||
Actual | Guidance (1) | ||
Production | |||
Average daily equivalent production (MBoe/d) | 38.4 | 36.0 – 38.0 | |
Average daily oil production (MBbl/d) | 29.1 | 28.0 – 30.0 | |
Twelve Months Ended December 31, 2018 | |||
Actuals | Guidance (1) | ||
Production | |||
Average daily production (MBoe/d) | 34.2 | 33.6 – 34.1 | |
Average daily oil production (MBbl/d) | 26.4 | 26.1 – 26.6 | |
Income Statement | |||
Lease operating expense ($/Boe) | $3.40 | $3.25 – $3.75 | |
General and administrative (before equity-based compensation) ($MM) | $39.1 | $42 – $44 | |
Production and ad valorem taxes (% of revenue) | 6.0% | 6.0% – 7.0% | |
Capital Expenditures | |||
Drilling and completion ($MM) | $690.8 | $650 – $680 | |
Infrastructure and other ($MM) | $20.2 | $18 – $22 | |
Total development capital ($MM) | $711.0 | $668 – $702 | |
Operated Activity | |||
Gross horizontal wells brought online | 45 | 45 – 47 |
(1) Guidance as provided in the Company's third quarter earnings and operational update press release on November 8, 2018. |
For the fourth quarter of 2018, the Company reported net income of $186.3 million, or $0.87 per diluted common share. Net income for the fourth quarter of 2017 was $12.8 million, or $0.06 per diluted common share. Adjusted net income (a non-GAAP measure) for the fourth quarter of 2018, was $28.2 million, or $0.13 per diluted common share, compared to $20.2 million, or $0.09 per diluted common share for the same period in 2017. Adjusted net income (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as certain equity-based compensation, non-cash mark-to-market gains or losses on derivatives and impairment expense, further adjusted for any associated changes in estimated income tax expense. Adjusted EBITDAX (a non-GAAP measure) for the fourth quarter of 2018 was $108.6 million, an increase of $30.2 million from the fourth quarter of 2017.
Please reference the reconciliations of these non-GAAP measures to the most directly comparable GAAP measures at the end of this release.
During the fourth quarter, the Company identified a portion of its Big Tex acreage that it does not currently intend to develop before the expiration of its leases. As a result, a non-cash impairment expense of unproved properties was recorded in the amount of $28.1 million.
Capital expenditures for drilling and completion activities were $155.3 million for the three months ended December 31, 2018. Activity during the quarter included drilling and completing 10 gross (9.4 net) wells, of which, 9 gross (8.9 net) wells were operated by Jagged Peak. Additionally, a portion of the capital spent during the fourth quarter relates to 19 gross (18.4 net) operated wells that were in various stages of being drilled or completed at December 31, 2018. Including capital expenditures for infrastructure of $5.7 million and leasehold acquisition costs of $12.1 million, total capital expenditures for the quarter were $173.1 million. The Company's leasehold acquisition costs for the quarter represent additions or extensions of approximately 1,500 net acres, primarily in Whiskey River. During 2018, the Company added approximately 4,100 net acres to its position. As of December 31, 2018, the Company had approximately 79,500 net acres, including Big Tex acres that were impaired, but are still leased by the Company, and approximately 5,100 net surface acres.
The table below provides a comparative breakout of the Company's capital expenditures for the periods indicated:
Capital Expenditures for Oil and Gas Activities | |||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
(in thousands) | 2018 | 2017 | 2018 | 2017 | |||||||||||
Acquisitions | |||||||||||||||
Proved properties | $ | 2,401 | $ | — | $ | 2,401 | $ | — | |||||||
Unproved properties | 9,707 | 13,120 | 27,354 | 70,693 | |||||||||||
Drilling and completion costs | 155,258 | 168,498 | 690,848 | 567,555 | |||||||||||
Infrastructure costs | 5,699 | 7,703 | 20,162 | 28,299 | |||||||||||
Exploration costs | 5 | 17 | 29 | 31 | |||||||||||
Total oil and gas capital expenditures | $ | 173,070 | $ | 189,338 | $ | 740,794 | $ | 666,578 |
Proved Reserves
Proved oil and gas reserves at December 31, 2018 were estimated at 118.9 MMBoe, an increase of 44% from 82.4 MMBoe at December 31, 2017. The composition of the reserves at the end of 2018 were 77% oil, 12% NGL, and 11% natural gas. Proved developed reserves at year-end 2018 increased 89% from year-end 2017 to 71.4 MMBoe, and represent 60% of total proved reserves compared to 40% at year-end 2017. The Company expects its 2019 exit-to-exit aggregate decline for these PDP wells to be approximately 45%, compared to a 49% aggregate decline rate in 2018. All-in proved reserve replacement for 2018 was 393%. As of December 31, 2018, the Company's PV-10 value for proved reserves (a non-GAAP measure) was $1.8 billion, an increase of 100% from the prior year. For 2018, the Company's organic proved developed finding and development ("F&D") costs were $15.55 per Boe, a decrease of 23% from 2017. Organic proved developed F&D costs are defined as the sum of drilling and completion, infrastructure, and exploration costs included in the above table, divided by the sum of proved developed reserves added through extensions, discoveries and other, including infill reserves in an existing proved field, converted to proved developed, and revisions of previous estimates, included in the proved reserve roll-forward table below.
Please reference the reconciliation of the non-GAAP measure, PV-10 to the most directly comparable GAAP measure, Standardized Measure of Discounted Future Net Cash Flows, at the end of this release.
Proved Reserve Roll-Forward | ||||||||
Proved Developed | Proved Undeveloped | Total Proved | ||||||
Balance December 31, 2017 | 37,739 | 44,619 | 82,358 | |||||
Acquisitions of reserves | 442 | 187 | 629 | |||||
Extensions, discoveries and other, including infill reserves in an existing proved field | 6,441 | 29,255 | 35,696 | |||||
Converted to proved developed | 26,585 | (26,585) | — | |||||
Revisions of previous estimates | 12,711 | (18) | 12,693 | |||||
Production | (12,486) | — | (12,486) | |||||
Balance December 31, 2018 | 71,432 | 47,458 | 118,890 |
Jagged Peak's proved reserve estimates as of December 31, 2018, and 2017 were prepared by Ryder Scott Company, L.P. in accordance with the applicable rules of the Securities and Exchange Commission. The reference prices used to determine the reserve quantities and future cash flows were $65.56 per barrel of oil and $3.10 per MMBtu of natural gas. After considering applicable differentials and pricing adjustments, the realized prices were $58.35 per barrel of oil, $34.21 per barrel of NGLs, and $2.23 per Mcf of natural gas.
2019 Capital, Production, and Operating Guidance
The Company's 2019 capital expenditure program is primarily focused on the continued development of the Wolfcamp A formation in Whiskey River and Cochise to further improve F&D cost efficiency and cash flow, resulting in enhanced full-cycle returns on its capital investments. The program contemplates approximately 54 gross (51 net) operated wells and 2 net non-operated wells turned online at a drilling, completion, and equipment ("DC&E") capital cost of approximately $605 million, a significant improvement when compared to the Company's 2018 program, which included 48.0 net wells turned online at a DC&E capital cost of $690.8 million. When planning for 2019, the Company is focusing its efforts on delivering increased capital efficiency to minimize capital outspend and keeping its balance sheet strong. The 2019 program is expected to keep balance sheet leverage under 2.0x debt to EBITDAX in a $50 per barrel WTI environment, while providing ample growth on a year-over-year basis and exit-to-exit basis.
Of the allocated capital for 2019, most of the activity will occur in the Company's Whiskey River and Cochise areas, where it expects to bring online 42 and 7 wells, respectively. In its Big Tex acreage, the Company plans to bring online 5 wells during 2019. Apart from one follow-up Woodford test in Big Tex during the year, the remaining Big Tex program will target the Wolfcamp A formation, and is primarily concentrated in a high-graded fairway of acreage that was identified through recently acquired 3D seismic data. Based on results from these 5 Big Tex wells, the Company will remain flexible in reallocating capital for up to an additional 7 Big Tex wells during the year. The Company is still pursuing various commercial options to assist with Big Tex development, and has recently entered into an agreement to farm-out a portion of its Big Tex area covering 3,200 gross/net acres. The farm-out allows the Company to receive a 25% carried working interest in up to 7 wells, 2 or more of which will be drilled in 2019, in exchange for approximately 2,200 net acres of the Company's western Big Tex acreage.
Like 2018, the Company's 2019 program in Whiskey River will consist of mostly 2-well pads, which provide significant cost efficiencies over single well development. In the second half of the year, the Company plans to begin transitioning to larger scale development of multiple horizons by executing on a 9-well pilot from three adjacent pads in its Cochise area, which are expected to come online in 2020. By moving to these larger development pads, the Company expects to provide optimal development of its acreage from both a capital efficiency and reservoir productivity standpoint.
During 2018, the Company successfully reduced its well costs and improved its average well performance to increase its capital efficiency. The Company expects its 2019 drilling, completion, and equipment costs will show a further increase to capital efficiency by reducing average cost per lateral foot by approximately 15% year over year, to approximately $1,250 per lateral foot. This decrease is driven by a combination of increased operational efficiencies, decreased service costs, and optimized well design.
Due to the timing of pad completions in the fourth quarter of 2018 and the development schedule in 2019, the Company expects its first quarter 2019 production to decline slightly from its fourth quarter levels, pushing most of the Company's expected 2019 production growth into the second and fourth quarters. The Company expects to exit 2019 with fourth quarter production averaging 32.5 - 36.5 Bbls per day per day of oil (43 - 47 MBoe per day), providing oil production growth of approximately 19% from fourth quarter 2018 to fourth quarter 2019.
The table below provides a summary of the Company's production, capital expenditure and operating guidance for 2019.
Guidance for the Three Months Ended | |
Production | |
Average daily equivalent production (MBoe/d) | 36.5 – 37.9 |
Average daily oil production (MBbl/d) | 27.5 – 28.9 |
Guidance for the Twelve Months Ended | |
Production | |
Average daily equivalent production (MBoe/d) | 38.3 – 41.3 |
Average daily oil production (MBbl/d) | 29.2 – 31.2 |
Income Statement | |
Lease operating expense ($/Boe) | $3.65 – $4.15 |
General and administrative (before equity-based compensation) ($MM) | $46 – $50 |
Production and ad valorem taxes (% of revenue) | 6.0% – 7.0% |
Capital Expenditures | |
Drilling and completion ($MM) (1) | $580 – $630 |
Infrastructure and other ($MM) | $25 – $35 |
Total development capital ($MM) | $605 – $665 |
Operated Activity | |
Gross horizontal wells brought online | 52 – 56 |
Average working interest | ~95% |
Average lateral length per well | ~8,900' |
Non-operated Activity | |
Net horizontal wells brought online | 2.0 |
(1) Includes pad-level infrastructure and equipment |
Financial Update
At the end of the fourth quarter, the Company had an undrawn revolving credit facility with elected commitments of $540 million, and $35.2 million of cash on the balance sheet, resulting in total liquidity of $575.2 million. The Company's borrowing base at December 31, 2018 was $900 million. Net debt to adjusted EBITDAX (a non-GAAP measure) was 1.1x on an annualized basis. Please reference the reconciliation of this non-GAAP measure to the most directly comparable GAAP measures at the end of this release.
Conference Call
Jagged Peak will host a conference call and webcast to discuss its fourth quarter and full-year 2018 financial and operating results, and 2019 guidance on March 1, 2019 at 9:00 am MST (11:00 am EST). The call will be webcast and accessible via the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-877-823-8605 (international callers, dial 1-647-689-5644) with the conference ID 8268275. A telephone replay will be available from 12:00 noon MST (2:00 pm EST) on March 1, 2019 through March 15, 2019 at 10:00 pm MST (12:00 midnight EST). To access the replay, dial 1-800-585-8367 (international callers dial, 1-416-621-4642) and enter conference ID 8268275. A live broadcast of the earnings conference call will also be available via the Company's website at www.jaggedpeakenergy.com under the "Investor Relations" section of the site. A replay will also be available on the website approximately two hours after the conference call. The presentation material for this conference call will also be available on the Company's website.
Upcoming Investor Events
The Company will be participating in the Scotia Howard Weil 47th Annual Energy Conference in New Orleans, LA on March 25 - 27, 2019. The Company's President and CEO, Jim Kleckner, will be presenting and hosting 1-on-1 meetings.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions), will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, guidance estimates including all statements under the heading "2019 Capital, Production, and Operating Guidance"; securing partners to develop Big Tex acreage; the decrease in well costs and increased capital efficiency, the timing of the program, and its ultimate impact on well performance; expected capital expenditures and expected production. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, equity-based compensation expense, income taxes, gains or losses on sales of assets, and net gains or losses on derivatives less net cash from derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows investors to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a non-GAAP performance measure used by management to evaluate financial performance, prior to non-cash market-to-market gains or losses on derivatives, impairment expense, exploratory dry hole costs, gain or loss on the sale of property, certain one-time items, such as certain equity-based compensation and the associated changes in estimated income tax. Management believes adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
Net Debt to Adjusted EBITDAX
Net debt to adjusted EBITDAX is a non-GAAP measure, which is defined as the face value of the Company's long-term debt, including its senior unsecured notes and amounts drawn on its credit facility, less cash and cash equivalents at quarter end, divided by the Company's quarterly annualized adjusted EBITDAX, as defined above.
PV-10
PV-10 is a non-GAAP metric, which is derived from the Standardized Measure of Discounted Future Net Cash Flows, the most directly comparable GAAP financial measure. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes, discounted at 10%. Management believes that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to the Company's estimated net proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of oil and natural gas properties. Further, investors may utilize the measure as a basis for comparison of the relative size and value of Jagged Peak's reserves to other companies. Management uses this measure along with other measures when assessing the potential return on investment related to oil and natural gas properties. PV-10, however, is not a substitute for the Standardized Measure. PV-10 and the Standardized Measure of oil and gas do not purport to present the fair value of the Company's proved oil and natural gas reserves.
Organic Proved Developed Finding and Development Costs
Organic proved developed finding and development ("F&D") costs is a financial measure that is used by management to assess the relative amount of development capital needed to develop one barrel of oil equivalent reserves. This measure is defined as the sum of drilling and completion, infrastructure, and exploration costs included in the Company's "Capital Expenditures for Oil and Gas Activities" table contained in this release, divided by the sum of proved developed reserves added through extensions, discoveries and other, including infill reserves in an existing proved field, converted to proved developed, and revisions of previous estimates, included in the "Proved Reserve Roll-Forward" table contained in this release. The method the Company uses to calculate its organic proved developed F&D costs may differ significantly from methods used by other companies to compute similar measures. As a result, the Company's organic proved developed F&D costs may not be comparable to similar measures provided by other companies.
This measure is provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP in the Company's 2018 10-K. Due to various factors, including timing differences in the addition of proved reserves and the related costs to develop those reserves, organic proved developed F&D costs does not precisely reflect the costs associated with particular proved reserves. As a result of various factors that could materially affect the timing and amounts of future increases in proved developed reserves and the timing and amounts of future costs, we cannot assure you that our future organic proved developed F&D costs will not differ materially from those presented.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Jagged Peak Energy Inc. | |||||||||||||||
Selected Operating Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Production volumes: | |||||||||||||||
Oil (MBbls) | 2,673 | 1,771 | 9,620 | 4,979 | |||||||||||
Natural gas (MMcf) | 1,968 | 1,377 | 7,992 | 3,601 | |||||||||||
NGLs (MBbls) | 533 | 211 | 1,534 | 617 | |||||||||||
Total (MBoe) | 3,534 | 2,211 | 12,486 | 6,196 | |||||||||||
Average daily production volumes: | |||||||||||||||
Oil (Bbls/d) | 29,050 | 19,250 | 26,355 | 13,640 | |||||||||||
Natural gas (Mcf/d) | 21,387 | 14,964 | 21,897 | 9,865 | |||||||||||
NGLs (Bbls/d) | 5,799 | 2,293 | 4,203 | 1,690 | |||||||||||
Total (Boe/d) | 38,413 | 24,037 | 34,207 | 16,974 | |||||||||||
Average Sales Prices (excluding realized hedge settlements and including G&P Deduction):(1) | |||||||||||||||
Oil (per Bbl) | $ | 48.22 | $ | 53.10 | $ | 56.12 | $ | 48.56 | |||||||
Natural gas (per Mcf) | $ | 0.70 | $ | 2.45 | $ | 1.14 | $ | 2.52 | |||||||
NGLs (per Bbl) | $ | 15.44 | $ | 30.96 | $ | 20.83 | $ | 25.25 | |||||||
Combined (per Boe) | $ | 39.18 | $ | 47.00 | $ | 46.52 | $ | 43.00 | |||||||
Average Sales Prices (including realized hedge settlements and G&P Deduction):(1) | |||||||||||||||
Oil (per Bbl) | $ | 48.06 | $ | 49.54 | $ | 52.57 | $ | 48.04 | |||||||
Natural gas (per Mcf) | $ | 0.70 | $ | 2.45 | $ | 1.14 | $ | 2.52 | |||||||
NGLs (per Bbl) | $ | 15.44 | $ | 30.96 | $ | 20.83 | $ | 25.25 | |||||||
Combined (per Boe) | $ | 40.06 | $ | 44.15 | $ | 43.79 | $ | 42.58 | |||||||
Average Operating Costs (per Boe): | |||||||||||||||
Lease operating expenses | $ | 3.12 | $ | 3.25 | $ | 3.40 | $ | 2.88 | |||||||
Gathering and processing expenses | $ | — | $ | 0.91 | $ | — | $ | 0.71 | |||||||
Production and ad valorem tax expenses | $ | 2.32 | $ | 2.35 | $ | 2.77 | $ | 2.60 | |||||||
Depletion, depreciation, amortization and accretion | $ | 17.49 | $ | 19.82 | $ | 17.81 | $ | 17.92 | |||||||
General and administrative expense (before equity-based compensation expense) | $ | 2.92 | $ | 2.36 | $ | 3.13 | $ | 3.73 |
(1) Due to the adoption of ASC 606 (Revenue Recognition) as of January 1, 2018, the average sales prices for the three and twelve months ended December 31, 2018 are net of gathering and processing expenses ("G&P") of $0.25 and $0.44 per Mcf of natural gas and $5.69 and $7.33 per Bbl of NGLs, respectively. This standard affects comparability between 2017 and 2018 for revenues, average sales prices and G&P expenses but does not impact net income. |
Jagged Peak Energy Inc. | ||||||||
Condensed Consolidated and Combined Balance Sheets | ||||||||
(Unaudited) | ||||||||
December 31, 2018 | December 31, 2017 | |||||||
(in thousands) | ||||||||
Assets: | ||||||||
Cash and cash equivalents | $ | 35,229 | $ | 9,523 | ||||
Other current assets | 165,905 | 51,540 | ||||||
Property and equipment, net | 1,530,285 | 1,038,947 | ||||||
Other noncurrent assets | 35,722 | 3,418 | ||||||
Total assets | $ | 1,767,141 | $ | 1,103,428 | ||||
Liabilities and Stockholders' Equity: | ||||||||
Current liabilities | $ | 187,982 | $ | 174,475 | ||||
Long-term debt | 489,239 | 155,000 | ||||||
Deferred income taxes | 124,418 | 57,943 | ||||||
Other long-term liabilities | 17,552 | 16,665 | ||||||
Stockholders' equity | 947,950 | 699,345 | ||||||
Total liabilities and stockholders' equity | $ | 1,767,141 | $ | 1,103,428 |
Jagged Peak Energy Inc. | |||||||||||||||
Condensed Consolidated and Combined Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Revenues | |||||||||||||||
Oil, natural gas and NGL sales | $ | 138,473 | $ | 103,948 | $ | 580,894 | $ | 266,424 | |||||||
Other operating revenues | 64 | 474 | 750 | 888 | |||||||||||
Total revenues | 138,537 | 104,422 | 581,644 | 267,312 | |||||||||||
Operating Expenses | |||||||||||||||
Lease operating expenses | 11,016 | 7,190 | 42,406 | 17,874 | |||||||||||
Gathering and processing expenses | — | 2,020 | — | 4,424 | |||||||||||
Production and ad valorem taxes | 8,205 | 5,204 | 34,642 | 16,120 | |||||||||||
Exploration | 5 | 17 | 29 | 31 | |||||||||||
Depletion, depreciation, amortization and accretion | 61,803 | 43,825 | 222,355 | 111,049 | |||||||||||
Impairment of unproved oil and natural gas properties | 28,145 | 8 | 28,198 | 373 | |||||||||||
Other operating expenses | (2) | 24 | 63 | 247 | |||||||||||
General and administrative (before equity-based compensation) | 10,326 | 5,229 | 39,126 | 23,091 | |||||||||||
General and administrative, equity-based compensation | 2,675 | 11,334 | 83,346 | 442,976 | |||||||||||
Total operating expenses | 122,173 | 74,851 | 450,165 | 616,185 | |||||||||||
Income (Loss) from Operations | 16,364 | 29,571 | 131,479 | (348,873) | |||||||||||
Other Income and Expense | |||||||||||||||
Gain (loss) on commodity derivatives | 229,764 | (58,537) | 119,338 | (42,615) | |||||||||||
Gain on sale of assets | — | — | 6,225 | — | |||||||||||
Interest expense and other | (8,044) | (1,367) | (25,109) | (2,503) | |||||||||||
Total other income (loss) | 221,720 | (59,904) | 100,454 | (45,118) | |||||||||||
Income (Loss) before Income Taxes | 238,084 | (30,333) | 231,933 | (393,991) | |||||||||||
Income tax expense (benefit) | 51,738 | (43,096) | 66,475 | 57,943 | |||||||||||
Net Income (Loss) | $ | 186,346 | $ | 12,763 | $ | 165,458 | $ | (451,934) | |||||||
Net Income (Loss) attributable to Jagged Peak Energy LLC (predecessor) | $ | — | $ | — | $ | — | $ | (375,476) | |||||||
Net Income (Loss) attributable to Jagged Peak Energy Inc. Stockholders | 186,346 | 12,763 | 165,458 | (76,458) | |||||||||||
Net Income (Loss) | $ | 186,346 | $ | 12,763 | $ | 165,458 | $ | (451,934) | |||||||
Net income (loss) attributable to Jagged Peak Energy Inc. Stockholders per common share: | |||||||||||||||
Basic | $ | 0.87 | $ | 0.06 | $ | 0.78 | $ | (0.36) | |||||||
Diluted | $ | 0.87 | $ | 0.06 | $ | 0.78 | $ | (0.36) | |||||||
Weighted-average common shares outstanding: | |||||||||||||||
Basic | 213,186 | 212,931 | 213,128 | 212,932 | |||||||||||
Diluted | 213,464 | 213,553 | 213,203 | 212,932 |
Jagged Peak Energy Inc. | |||||||||||||||
Consolidated and Combined Statements of Cash Flows | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands) | |||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | $ | 186,346 | $ | 12,763 | $ | 165,458 | $ | (451,934) | |||||||
Adjustments to reconcile to net cash provided by operating activities: | |||||||||||||||
Depletion, depreciation, amortization and accretion | 61,803 | 43,825 | 222,355 | 111,049 | |||||||||||
Impairment of unproved oil and natural gas properties | 28,145 | 8 | 28,198 | 373 | |||||||||||
Amortization of debt issuance costs | 587 | 199 | 2,340 | 606 | |||||||||||
Deferred income taxes | 51,738 | (43,096) | 66,475 | 57,943 | |||||||||||
Equity-based compensation | 2,675 | 11,334 | 83,346 | 442,976 | |||||||||||
(Gain) Loss on commodity derivatives | (229,764) | 58,537 | (119,338) | 42,615 | |||||||||||
Net cash receipts (payments) on settled derivatives | (429) | (6,309) | (34,134) | (2,618) | |||||||||||
(Gain) on sale of oil and natural gas properties | — | — | (6,225) | — | |||||||||||
Other | (80) | 1,005 | (314) | 882 | |||||||||||
Change in operating assets and liabilities: | |||||||||||||||
Accounts receivable and other current assets | 18,581 | (13,150) | (11,273) | (40,442) | |||||||||||
Other assets | — | — | — | (3) | |||||||||||
Accounts payable and accrued liabilities | (9,693) | 8,327 | 30,768 | 17,424 | |||||||||||
Net cash provided by operating activities | 109,909 | 73,443 | 427,656 | 178,871 | |||||||||||
Cash Flows from Investing Activities | |||||||||||||||
Leasehold and acquisitions costs | (10,817) | (12,865) | (29,671) | (73,492) | |||||||||||
Development of oil and natural gas properties | (155,630) | (174,383) | (706,689) | (523,559) | |||||||||||
Other capital expenditures | (1,991) | 349 | (5,236) | (2,983) | |||||||||||
Proceeds from sale of oil and natural gas properties | — | — | 8,377 | — | |||||||||||
Net cash used in investing activities | (168,438) | (186,899) | (733,219) | (600,034) | |||||||||||
Cash Flows from Financing Activities | |||||||||||||||
Proceeds from senior notes | — | — | 500,000 | — | |||||||||||
Proceeds from senior secured revolving credit facility | — | 120,000 | 165,000 | 165,000 | |||||||||||
Repayment of senior secured revolving credit facility | — | — | (320,000) | (142,000) | |||||||||||
Debt issuance costs | (181) | (921) | (13,531) | (2,362) | |||||||||||
Proceeds from issuance of common stock in IPO, net of underwriting fees | — | — | — | 401,625 | |||||||||||
Costs related to initial public offering | — | — | — | (3,216) | |||||||||||
Employee tax withholding for settlement of equity compensation awards | — | — | (200) | (88) | |||||||||||
Net cash provided by financing activities | (181) | 119,079 | 331,269 | 418,959 | |||||||||||
Net Change in Cash and Cash Equivalents | (58,710) | 5,623 | 25,706 | (2,204) | |||||||||||
Cash and Cash Equivalents, Beginning of Period | 93,939 | 3,900 | 9,523 | 11,727 | |||||||||||
Cash and Cash Equivalents, End of Period | $ | 35,229 | $ | 9,523 | $ | 35,229 | $ | 9,523 |
Jagged Peak Energy Inc. | ||||||
Commodity Hedges | ||||||
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. The schedule below summarizes the hedges the Company has in place to hedge the price of WTI and the differential between the Cushing and Midland oil prices. | ||||||
As of February 28, 2019, the Company had the following commodity hedges in place for future production: | ||||||
Production Period | Volumes | Weighted Average | ||||
(Bbls) | ($/Bbl) | |||||
Oil Swaps: | ||||||
First Quarter 2019 | 1,890,000 | $ | 59.95 | |||
Second Quarter 2019 | 1,911,000 | $ | 59.95 | |||
Third Quarter 2019 | 1,932,000 | $ | 59.95 | |||
Fourth Quarter 2019 | 1,932,000 | $ | 59.95 | |||
Full Year 2019 | 7,665,000 | $ | 59.95 | |||
Full Year 2020 | 2,928,000 | $ | 60.82 | |||
Oil Basis Swaps: | ||||||
First Quarter 2019 | 2,070,000 | $ | (7.17) | |||
Second Quarter 2019 | 2,093,000 | $ | (7.17) | |||
Third Quarter 2019 | 2,300,000 | $ | (4.79) | |||
Fourth Quarter 2019 | 2,300,000 | $ | (4.79) | |||
Full Year 2019 | 8,763,000 | $ | (5.92) | |||
Full Year 2020 | 9,516,000 | $ | (1.31) |
Jagged Peak Energy Inc. | |||||||||||||||
Reconciliation of Adjusted Net Income, Adjusted EBITDAX and Adjusted EBITDAX Margin | |||||||||||||||
(Unaudited) | |||||||||||||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(in thousands, except for per share and Boe metrics) | |||||||||||||||
Adjusted Net Income (Loss) | |||||||||||||||
Net income (loss) | $ | 186,346 | $ | 12,763 | $ | 165,458 | $ | (451,934) | |||||||
Adjustments to reconcile to adjusted net income | |||||||||||||||
Impairment of unproved oil and natural gas properties | 28,145 | 8 | 28,198 | 373 | |||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements | (230,193) | 52,228 | (153,472) | 39,997 | |||||||||||
Equity-based compensation expense related to allocated management incentive units (1) | — | 9,435 | 74,470 | 438,401 | |||||||||||
Gain on sale of assets | — | — | (6,225) | — | |||||||||||
Deferred income tax expense recorded in connection with the Company's initial public offering | — | 1,598 | — | 80,704 | |||||||||||
Income tax effect for the above items | 43,907 | (18,527) | 28,529 | (14,347) | |||||||||||
Impact of reduction in Federal statutory rate | — | (37,282) | — | (37,282) | |||||||||||
Adjusted net income | $ | 28,205 | $ | 20,223 | $ | 136,958 | $ | 55,912 | |||||||
Adjusted net income per basic common share | $ | 0.13 | $ | 0.09 | $ | 0.64 | $ | 0.26 | |||||||
Adjusted net income per diluted common share | $ | 0.13 | $ | 0.09 | $ | 0.64 | $ | 0.26 | |||||||
Basic common shares | 213,186 | 212,931 | 213,128 | 212,932 | |||||||||||
Diluted common shares | 213,464 | 213,552 | 213,203 | 212,979 | |||||||||||
Adjusted EBITDAX | |||||||||||||||
Net income (loss) | $ | 186,346 | $ | 12,763 | $ | 165,458 | $ | (451,934) | |||||||
Adjustments to reconcile to adjusted EBITDAX | |||||||||||||||
Interest expense, net of capitalized | 8,057 | 1,251 | 25,152 | 2,861 | |||||||||||
Income tax expense (benefit) | 51,738 | (43,096) | 66,475 | 57,943 | |||||||||||
Depletion, depreciation, amortization and accretion | 61,803 | 43,825 | 222,355 | 111,049 | |||||||||||
Impairment of unproved oil and natural gas properties | 28,145 | 8 | 28,198 | 373 | |||||||||||
Exploration expenses | 5 | 17 | 29 | 31 | |||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements | (230,193) | 52,228 | (153,472) | 39,997 | |||||||||||
Equity-based compensation expense (2) | 2,675 | 11,334 | 83,346 | 442,976 | |||||||||||
Gain on sale of assets | — | — | (6,225) | — | |||||||||||
Adjusted EBITDAX | $ | 108,576 | $ | 78,330 | $ | 431,316 | $ | 203,296 | |||||||
Total production (MBoe) | 3,534 | 2,211 | 12,486 | 6,196 | |||||||||||
Adjusted EBITDAX margin per Boe (3) | $ | 30.72 | $ | 35.43 | $ | 34.54 | $ | 32.81 |
(1) In connection with the IPO, management incentive units were converted to common stock. A portion of this common stock was transferred to JPE Management Holdings LLC and became subject to the terms and conditions of the amended and restated JPE Management Holdings LLC limited liability company agreement (the "Holdco Agreement"). The compensation expense related to these shares was primarily recognized ratably as they vested according to the terms of the Holdco Agreement. However, in February 2018, the Company incurred $71.3 million in accelerated compensation expense related to the modification of service requirements. Only compensation expense related to management incentive units allocated at the time of the IPO is excluded from the calculation of adjusted net income. |
(2) Equity-based compensation expense for the twelve months ended December 31, 2018 includes $74.5 million related to management incentive units that converted to common stock in connection with the IPO and $8.9 million related to equity awards issued under the Company's long-term incentive plan. |
(3) Adjusted EBITDAX margin is calculated as Adjusted EBITDAX divided by total production, expressed as adjusted EBITDAX per Boe. |
Jagged Peak Energy Inc. | |||
Reconciliation of GAAP Standardized Measure of Discounted Future Net Cash Flows to non-GAAP PV-10 | |||
(Unaudited) | |||
The following table provides a reconciliation of the GAAP financial measure of Standardized measure of discounted future net cash flows to the non-GAAP financial measure of PV-10. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." | |||
Standardized measure of discounted future net cash flows | $ | 1,543,268 | |
Present value of future income taxes discounted at 10% | 288,867 | ||
PV-10 | $ | 1,832,135 |
Note: In accordance with the applicable rules of the Securities and Exchange Commission, the reference prices used to determine the reserve quantities and future cash flows were $65.56 per barrel of oil and $3.10 per MMBtu of natural gas. After considering applicable differentials and pricing adjustments, the realized prices were $58.35 per barrel of oil, $34.21 per barrel of NGLs, and $2.23 per Mcf of natural gas. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-fourth-quarter-and-full-year-2018-financial-and-operating-results-provides-2019-capital-production-and-cost-guidance-300804521.html
SOURCE Jagged Peak Energy Inc.
DENVER, Feb. 6, 2019 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") today announced that it plans to release its fourth quarter and full-year 2018 earnings and operational update after market close on February 28, 2019, and will host a conference call to discuss those results and updates on March 1, 2019 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time).
To join the live, interactive call, please dial 1-877-823-8605 (1-647-689-5644 international) with the conference ID 8268275. The call will be webcast live and accessible on the Investor Relations section of the Company's website at www.jaggedpeakenergy.com.
A telephone replay of the call will be available through March 15, 2019 by dialing 1-800-585-8367 (1-416-621-4642 international) with the passcode 8268275. Additionally, a replay will be available on the Company's website approximately two hours after the conference call.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas. For more information, visit our website at www.jaggedpeakenergy.com.
View original content to download multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-schedules-fourth-quarter-and-full-year-2018-earnings-and-operational-update-conference-call-300790509.html
SOURCE Jagged Peak Energy Inc.
DENVER, Oct. 23, 2018 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") today announced that it plans to release its third quarter earnings and operational update after market close on November 8, 2018, and will host a conference call to discuss those results and updates on November 9, 2018 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time).
To join the live, interactive call, please dial 1-855-327-6838 ten minutes before the scheduled start time (international callers dial 1-604-235-2082). The call will be webcast live and accessible on the Investor Relations section of the Company's website at www.jaggedpeakenergy.com.
A telephone replay of the call will be available through November 30, 2018 by dialing 1-844-512-2921 (1-412-317-6671 international) with the passcode 10005776. Additionally, a replay will be available on the Company's website approximately two hours after the conference call.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas. For more information, visit our website at www.jaggedpeakenergy.com.
View original content to download multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-schedules-third-quarter-2018-earnings-and-operational-update-conference-call-300736641.html
SOURCE Jagged Peak Energy Inc.
DENVER, Aug. 9, 2018 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the second quarter ended June 30, 2018.
Jim Kleckner, President and Chief Executive Officer, commented, "I am pleased with our team's second quarter execution as we posted very strong results with record production volumes and increased operating efficiencies. We have started integrating the first of our licensed 3D seismic data into our drilling program, which is expected to drive enhanced well performance and program returns going forward across our acreage position.
"We have updated our 2018 program guidance, which is largely a reflection of the strong production in the second quarter and increases to our working interest, and lateral length. As a result, our production guidance for the year has increased by 12%, creating estimated annual growth of approximately 95% in 2018. Increases to our full-year working interest and average lateral length have led to a 25% increase to our net completed lateral feet in 2018 and an 18% increase to 2018 capital. As we increase second half production targets, we remain confident in our ability to get our oil to market as we are a committed shipper on the Oryx system with 60 MBbls per day of committed capacity, and have a long-term sales agreement in place for our oil with a third-party marketer. To protect the returns of this increased investment, we have significantly added to our hedge book through 2020, further insulating our cash flow from commodity price fluctuations and widening basis differentials."
Operations Update
The Company reported record production for the second quarter of 2018, with average daily production rates exceeding the top-end of the Company's guidance range. Production outperformance for the quarter was attributed to better than expected production performance from second quarter wells brought online. A few second quarter wells of note were the Company's Bigfoot 106105B-34 51H, Venom 6261D-34 1H, and Catman 6263B-34 1H wells. Performance from these wells is included in the table below.
Well Name |
Lateral Length |
IP30 |
IP30/1,000' |
Oil % | |||||||
Bigfoot 106105B-34 51H |
10,112' |
1,696 |
168 |
83 |
% | ||||||
Venom 6261D-34 1H |
7,220' |
1,422 |
197 |
82 |
% | ||||||
Catman 6263B-34 1H |
5,002' |
959 |
192 |
81 |
% |
The Company continues to focus its efforts on increasing operational efficiencies through faster drill times and completion stages pumped per day. During the quarter, the Company drilled a well with 21,000 foot of total measured depth (9,533 foot lateral) in 19.2 days, a Company record. From a completions standpoint, the Company increased its average stages per crew per day metric to 3.1, an increase of 20% from the first quarter of 2018, and attained a company-record 3.5 stages per crew per day on one of its wells in the second quarter.
At the end of the first quarter, the Company began utilizing its licensed 3D seismic data, covering its Cochise project area, which has resulted in a higher percentage of optimally placed lateral footage. The Company's UTL 3031B-17-2H well was geo-steered utilizing the Company's newly licensed 3D seismic data and as a result 100% of the lateral was optimally placed. This compares to an adjacent well that was drilled without the benefit of seismic data where only 23% of its lateral was optimally placed. The increased percentage optimally placed lateral footage has resulted in better well performance, with the geo-steered well outperforming the parent well 660 feet away by approximately 40% on a normalized 100-day cumulative production basis. The Company is currently participating in 3D seismic shoots for its other two areas, Whiskey River and Big Tex, and is expected to receive the processed data in the second half of 2018. For its Whiskey River project area, the Company received initial processed data from the seismic shoot and expects fully processed data, which can be utilized and integrated into its drilling program in the third quarter of 2018. In the Big Tex area, the Company is expecting initial data during the third quarter of 2018, with fully processed data in the fourth quarter of 2018. Once integrated, the processed 3D seismic data will allow for optimized lateral placement and is expected to result in improved well results across its acreage position.
Second Quarter Results
During the second quarter, the Company reported average daily production of 34.6 MBoe per day, 8% above the top-end of the Company's guidance range of 31.0 – 32.0 MBoe/d. Oil production for the quarter averaged 26.9 MBbls per day. The strong production growth in the quarter is attributed to the strong well performance from wells brought online in the quarter. Average daily production in the second quarter grew sequentially by 25% from the first quarter of 2018 and by 135% from the second quarter of 2017. Second quarter production mix was essentially unchanged from the previous quarter and was comprised of 78% oil, 12% natural gas, and 10% NGLs.
Reported revenue for the second quarter of 2018 was $158.7 million, compared to revenue of $53.1 million in the second quarter of 2017. The increase in revenue in the second quarter of 2018 compared to the same period in 2017 was a result of increased production volumes and commodity prices for the period.
Realized prices for the second quarter of 2018 are included in the table below.
Three Months Ended June 30, 2018 | |||||||
Before the Effects |
After the Effects | ||||||
Oil ($/Bbl) |
$ |
60.66 |
$ |
55.82 |
|||
NGL ($/Bbl) |
$ |
23.36 |
$ |
23.36 |
|||
Gas ($/Mcf) |
$ |
1.05 |
$ |
1.05 |
|||
Boe ($/Boe) |
$ |
50.41 |
$ |
46.63 |
The table below provides a summary of the Company's second quarter, and year-to-date actuals, in comparison to its previously provided guidance ranges.
Three Months Ended June 30, 2018 | ||||
Actual |
Previous Guidance (1) | |||
Production |
||||
Average daily equivalent production (MBoe/d) |
34.6 |
31.0 – 32.0 | ||
Average daily oil production (MBbls/d) |
26.9 |
24.5 – 25.5 | ||
Six Months Ended |
Previous Full-Year | |||
Actuals |
2018 Guidance (1) | |||
Production |
||||
Average daily production (MBoe/d) |
31.1 |
28.0 – 31.0 | ||
Product Mix (% oil) |
78 |
% |
77% – 81% | |
Income Statement |
||||
Lease operating expense ($/Boe) |
$3.59 |
$3.25 – $4.00 | ||
Cash general and administrative expense ($MM) (2) |
19.1 |
$44 – $46 | ||
Production and ad valorem taxes (% of revenue) |
5.9 |
% |
6.5% – 7.5% | |
Capital Expenditures |
||||
Drilling and completion ($MM) |
$383.8 |
$540 – $590 | ||
Infrastructure and other ($MM) |
$7.8 |
$20 – $25 | ||
Total development capital ($MM) |
$391.6 |
$560 – $615 | ||
Operated Activity |
||||
Gross horizontal wells brought online |
26 |
42 – 46 |
(1) Guidance as provided in the Company's first quarter earnings and operational update press release on May 10, 2018. |
(2) Cash general and administrative expense a non-GAAP measure. Please reference the "Reconciliation of Non-GAAP Financial Measures" section at the end of this release. |
For the second quarter of 2018, the Company reported net income of $45.1 million, or $0.21 per diluted common share. Net income for the second quarter of 2017 was $16.4 million, or $0.08 per diluted common share. Adjusted net income (a non-GAAP measure) for the second quarter of 2018, was $43.3 million or $0.20 per diluted common share, compared to $9.9 million, or $0.05 per diluted common share for the same period in 2017. Adjusted net income, (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as certain equity-based compensation, non-cash mark-to-market gains or losses on derivatives and impairment expense, further adjusted for any associated changes in estimated income tax expense. Adjusted EBITDAX, (a non-GAAP measure) for the second quarter of 2018 was $118.6 million, an increase of $79.3 million from the second quarter of 2017 and $33.1 million from the first quarter of 2018.
Adjusted net income and adjusted EBITDAX and are non-GAAP measures. Please reference the reconciliations to the most directly comparable GAAP measures at the end of this release.
Capital expenditures for drilling and completion activities were $176.2 million for the three months ended June 30, 2018, which represents capital spent to drill and complete 19 gross (15.3 net) wells, of which 15 gross (13.7 net) wells were drilled and completed by Jagged Peak. Additionally, a portion of the capital spent during the second quarter relates to 11 gross (10.8 net) operated wells that were in various stages of being drilled or completed at June 30, 2018. Adding in capital expenditures for infrastructure of $4.0 million and leasehold acquisition costs of $3.8 million, total capital expenditures for the quarter were $184.0 million. The Company's leasehold acquisition costs added approximately 1,600 acres to its leasehold position during the quarter, increasing the Company's leasehold position to approximately 79,300 net acres as of June 30, 2018.
The table below provides a comparative breakout of the Company's capital expenditures:
Three Months Ended June 30, | |||||||
2018 |
2017 | ||||||
(in thousands) | |||||||
Capital Expenditures for Oil and Gas Activities |
|||||||
Acquisitions |
|||||||
Proved properties |
$ |
— |
$ |
— |
|||
Unproved properties |
3,808 |
25,709 |
|||||
Drilling and completion costs |
176,178 |
148,906 |
|||||
Infrastructure costs |
4,028 |
9,821 |
|||||
Exploration costs |
1 |
2 |
|||||
Total oil and gas capital expenditures |
$ |
184,015 |
$ |
184,438 |
Updated 2018 Capital, Production, and Operating Guidance
The Company has performed a mid-year review of its 2018 budget and has revised its 2018 operated program to reflect longer lateral wells, higher working interests, and additional wells brought online. The updated program contemplates completing 25% more lateral feet in 2018 with an associated capital increase of 18%, and an increase to production of 12%. The increase in the Company's net activity is underpinned by its execution success over the past two quarters with increased production results, gains in drilling and completion efficiencies, and enhanced well performance. The Company retains 60 MBbls/d of committed capacity on the Oryx System with firm purchase agreements from a third-party marketer to move product out of the basin. As such, the Company remains confident in its ability to get its production to market without issue. To help protect the return from this increased capital investment, the Company has increased its hedge position on both basis differentials and WTI to provide further assurance to its 2018 and 2019 cash flows and to mitigate the risk of widening basis differentials. The Company's hedge book now covers 68% and 61% of its second half 2018 guided oil production for WTI and Mid-Cush basis differential, respectively. In 2019, the Company has hedged 7.7 MMBbls of WTI swaps with an average price of $59.95 and 8.8 MMBbls of Mid-Cush basis differential swaps at an average price of $5.92 off WTI. Details of the Company's updated hedge position are included in the schedules at the end of this release.
The Company's updated program contemplates bringing online 45 to 47 gross operated wells, compared to the original budget of 42 to 46 gross operated wells brought online, and expects to complete approximately 440,000 net lateral feet, including non-operated activity. Capital from this updated program is expected to be $668 to $702 million, with $650 to $680 million allocated to drilling and completion. This compares to the previous allocation for drilling and completion capital of $540 to $590 million. The updated program is expected to provide production volumes of 32.0 to 34.0 MBoe per day, compared to previous guidance range of 28.0 to 31.0 MBoe per day. The table below provides a summary of the Company's updated guidance:
Revised Guidance for the Three | |
Production |
|
Average daily equivalent production (MBoe/d) |
33.0 – 35.0 |
Average daily oil production (MBbls/d) |
25.5 – 27.5 |
Revised Guidance for the Twelve | |
Production |
|
Average daily equivalent production (MBoe/d) |
32.0 – 34.0 |
Average daily oil production (MBbls/d) |
25.0 – 27.0 |
Income Statement |
|
Lease operating expense ($/Boe) |
$3.25 – $4.00 |
Cash general and administrative expense ($MM) (1) |
$44 – $46 |
Production and ad valorem taxes (% of revenue) |
6.5% – 7.5% |
Capital Expenditures |
|
Drilling and completion ($MM) (2) |
$650 – $680 |
Infrastructure and other ($MM) |
$18 – $22 |
Total development capital ($MM) |
$668 – $702 |
Operated Activity |
|
Gross horizontal wells brought online |
45 – 47 |
Average working interest |
~95% |
Average lateral length per well |
~9,000' |
Non-operated Activity |
|
Gross horizontal wells brought online |
13 – 14 |
Average working interest |
~35% |
(1) Cash general and administrative expense a non-GAAP measure. Please reference the reconciliation to the most directly comparable GAAP measure at the end of this release. | |
(2) Includes ~$7 million of geological and geophysical costs. |
Financial Update
At the end of the second quarter the Company had an undrawn revolving credit facility with elected commitments of $475.0 million, and $135.5 million of cash on the balance sheet, resulting in total liquidity of $610.5 million. Net debt to adjusted EBITDAX (a non-GAAP measure) was 0.8x on an annualized basis. During the second quarter, the Company closed on its previously announced private offering of $500.0 million in 5.875% senior unsecured notes due 2026. Net proceeds from the offering were approximately $488.7 million, a portion of which was used to repay borrowings under the revolving credit facility and for general corporate purposes.
On August 9, 2018, the Company completed a borrowing base redetermination for its revolving credit facility. The Company's borrowing base was increased to $825.0 million, a 53% increase from the previous borrowing base of $540.0 million. As part of the redetermination, the Company has increased its elected commitments to $540.0 million up from $475.0 million, previously.
Conference Call
Jagged Peak will host a conference call and webcast to discuss its second quarter 2018 financial and operating results on Friday, August 10, 2018 at 9:00 am MDT (11:00 am EDT). The call will be webcast and accessible via the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6838 ten minutes before the scheduled start time (international callers, dial 1-631-891-4304). A telephone replay will be available from 12:00 noon MDT (2:00 pm EDT) on Friday, August 10, 2018 through Saturday, August 10, 2019 at 10:00 pm MDT (12:00 midnight EDT). To access the replay, dial 1-844-512-2921 (international callers dial, 1-412-317-6671) and enter confirmation code 10005345. A live broadcast of the earnings conference call will also be available via the Company's website at www.jaggedpeakenergy.com under the "Investor Relations" section of the site. A replay will also be available on the website approximately two hours after the conference call. The presentation material for this conference call will also be available on the Company's website.
Upcoming Investor Events
The Company will be participating in the following upcoming investor events:
Event |
Date |
Location |
Management Attendees |
Enercom The Oil and Gas Conference (Event will be webcast) |
August 20 – 21, |
Denver, CO |
Jim Kleckner, President and CEO; Bob Howard, EVP and CFO; Craig Walters, EVP and COO; Ian Piper, VP, Finance, Corporate |
Seaport Global Securities Energy and Industrials Conference |
August 28 – 29, |
Chicago, IL |
Bob Howard, EVP and CFO; Ian Piper VP, Finance, Corporate |
Barclays CEO Energy Conference |
September 4 – 5, |
New York, NY |
Jim Kleckner, President and CEO; Bob Howard, EVP and CFO; Ian Piper, VP, Finance, Corporate |
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions), will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, guidance estimates including all statements under the heading "Updated 2018 Capital, Production, and Operating Guidance"; planned 3D seismic program, the timing of the program, and its ultimate impact on well performance; expected capital expenditures, including the number of rigs and crews; expected production; and the timing of the Company becoming cash flow positive. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2017 Annual Report on Form 10-K and in "Item 8.01, Other Events" of Jagged Peak's Current Report on Form 8-K filed with the Securities and Exchange Commission on April 23, 2018, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, equity-based compensation expense, income taxes and net gains or losses on derivatives less net cash from derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows investors to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a non-GAAP performance measure used by management to evaluate financial performance, prior to non-cash market-to-market gains or losses on derivatives, impairment expense, exploratory dry hole costs, gain or loss on the sale of property, certain one-time items, such as certain equity-based compensation and the associated changes in estimated income tax. Management believes adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
Cash G&A
Cash general and administrative expense a non-GAAP measure, which is defined as GAAP general and administrative expense less equity-based compensation, on the Company's statement of cash flows. The Company does not guide to GAAP general and administrative expense because of the uncertainty to its equity-based compensation expenses in any given year.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Jagged Peak Energy Inc. | |||||||
Selected Operating Highlights | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
June 30, | |||||||
2018 |
2017 | ||||||
Production volumes: |
|||||||
Oil (MBbls) |
2,450 |
1,079 |
|||||
Natural gas (MMcf) |
2,220 |
719 |
|||||
NGLs (MBbls) |
325 |
140 |
|||||
Total (MBoe) |
3,145 |
1,339 |
|||||
Average daily production volumes: |
|||||||
Oil (Bbls/d) |
26,921 |
11,858 |
|||||
Natural gas (Mcf/d) |
24,399 |
7,896 |
|||||
NGLs (Bbls/d) |
3,575 |
1,540 |
|||||
Total (Boe/d) |
34,562 |
14,714 |
|||||
Average Sales Prices (excluding realized hedge settlements and including G&P Deduction) :(1) | |||||||
Oil (per Bbl) |
$ |
60.66 |
$ |
46.67 |
|||
Natural gas (per Mcf) |
$ |
1.05 |
$ |
2.53 |
|||
NGLs (per Bbl) |
$ |
23.36 |
$ |
19.56 |
|||
Combined (per Boe) |
$ |
50.41 |
$ |
41.49 |
|||
Average Sales Prices (including realized hedge settlements and G&P Deduction) :(1) | |||||||
Oil (per Bbl) |
$ |
55.82 |
$ |
46.29 |
|||
Natural gas (per Mcf) |
$ |
1.05 |
$ |
2.56 |
|||
NGLs (per Bbl) |
$ |
23.36 |
$ |
19.00 |
|||
Combined (per Boe) |
$ |
46.63 |
$ |
40.67 |
|||
Average Operating Costs (per Boe): |
|||||||
Lease operating expenses |
$ |
3.33 |
$ |
2.90 |
|||
Gathering and processing expenses (1) |
$ |
— |
$ |
0.49 |
|||
Production and ad valorem tax expenses |
$ |
2.94 |
$ |
2.64 |
|||
Depletion, depreciation, amortization and accretion |
$ |
17.46 |
$ |
16.66 |
|||
General and administrative expense (before equity-based compensation expense) |
$ |
2.69 |
$ |
5.56 |
(1) Due to the adoption of ASC 606 (Revenue Recognition) as of January 1, 2018, the average sales prices for 2018 include gathering and processing expenses ("G&P") of $0.55 per Mcf of natural gas and $8.14 per Bbl of NGLs. This standard affects comparability between 2017 and 2018 for revenues, average sales prices and G&P expenses but does not impact net income. |
Jagged Peak Energy Inc. | ||||||||
Condensed Consolidated and Combined Balance Sheets | ||||||||
(Unaudited) | ||||||||
June 30, 2018 |
December 31, 2017 | |||||||
(in thousands) | ||||||||
Assets: |
||||||||
Cash and cash equivalents |
$ |
135,492 |
$ |
9,523 |
||||
Other current assets |
118,217 |
51,540 |
||||||
Property and equipment, net |
1,339,291 |
1,038,947 |
||||||
Other noncurrent assets |
9,403 |
3,418 |
||||||
Total assets |
$ |
1,602,403 |
$ |
1,103,428 |
||||
Liabilities and Stockholders' Equity: |
||||||||
Current liabilities |
$ |
227,151 |
$ |
174,475 |
||||
Long-term debt |
488,906 |
155,000 |
||||||
Deferred income taxes |
79,995 |
57,943 |
||||||
Other long-term liabilities |
23,470 |
16,665 |
||||||
Stockholders' equity |
782,881 |
699,345 |
||||||
Total liabilities and stockholders' equity |
$ |
1,602,403 |
$ |
1,103,428 |
Jagged Peak Energy Inc. | |||||||||||||||
Condensed Consolidated and Combined Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Revenues |
|||||||||||||||
Oil, natural gas and NGL sales |
$ |
158,551 |
$ |
52,892 |
$ |
287,457 |
$ |
92,092 |
|||||||
Other operating revenues |
125 |
159 |
272 |
347 |
|||||||||||
Total revenues |
158,676 |
53,051 |
287,729 |
92,439 |
|||||||||||
Operating Expenses |
|||||||||||||||
Lease operating expenses |
10,486 |
3,890 |
20,206 |
5,500 |
|||||||||||
Gathering and processing expenses |
— |
655 |
— |
1,047 |
|||||||||||
Production and ad valorem taxes |
9,246 |
3,537 |
16,920 |
6,177 |
|||||||||||
Exploration |
1 |
2 |
1 |
8 |
|||||||||||
Depletion, depreciation, amortization and accretion |
54,915 |
22,311 |
102,892 |
36,373 |
|||||||||||
Impairment of unproved oil and natural gas properties |
— |
101 |
53 |
108 |
|||||||||||
Other operating expenses |
24 |
47 |
46 |
182 |
|||||||||||
General and administrative (before equity-based compensation) |
8,454 |
7,445 |
19,093 |
12,032 |
|||||||||||
General and administrative, equity-based compensation |
2,379 |
10,775 |
78,057 |
419,739 |
|||||||||||
Total operating expenses |
85,505 |
48,763 |
237,268 |
481,166 |
|||||||||||
Income (Loss) from Operations |
73,171 |
4,288 |
50,461 |
(388,727) |
|||||||||||
Other Income and Expense |
|||||||||||||||
Gain (loss) on commodity derivatives |
(9,584) |
26,573 |
(13,910) |
43,615 |
|||||||||||
Interest expense and other |
(6,098) |
(189) |
(8,821) |
(729) |
|||||||||||
Total other income (loss) |
(15,682) |
26,384 |
(22,731) |
42,886 |
|||||||||||
Income (Loss) before Income Taxes |
57,489 |
30,672 |
27,730 |
(345,841) |
|||||||||||
Income tax expense (benefit) |
12,408 |
14,269 |
22,052 |
103,637 |
|||||||||||
Net Income (Loss) |
$ |
45,081 |
$ |
16,403 |
$ |
5,678 |
$ |
(449,478) |
|||||||
Net Income (Loss) attributable to Jagged Peak Energy LLC (predecessor) |
$ |
— |
$ |
— |
$ |
— |
$ |
(375,476) |
|||||||
Net Income (Loss) attributable to Jagged Peak Energy Inc. Stockholders |
45,081 |
16,403 |
5,678 |
(74,002) |
|||||||||||
Net Income (Loss) |
$ |
45,081 |
$ |
16,403 |
$ |
5,678 |
$ |
(449,478) |
|||||||
Net income (loss) attributable to Jagged Peak Energy Inc. Stockholders per common share: |
|||||||||||||||
Basic |
$ |
0.21 |
$ |
0.08 |
$ |
0.03 |
$ |
(0.35) |
|||||||
Diluted |
$ |
0.21 |
$ |
0.08 |
$ |
0.03 |
$ |
(0.35) |
|||||||
Weighted-average common shares outstanding: |
|||||||||||||||
Basic |
213,142 |
212,932 |
213,073 |
212,934 |
|||||||||||
Diluted |
213,262 |
213,051 |
213,169 |
212,934 |
Jagged Peak Energy Inc. | |||||||||||||||
Consolidated and Combined Statements of Cash Flows | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
(in thousands) | |||||||||||||||
Cash Flows from Operating Activities |
|||||||||||||||
Net income (loss) |
$ |
45,081 |
$ |
16,403 |
$ |
5,678 |
$ |
(449,478) |
|||||||
Adjustments to reconcile to net cash provided by operating activities: |
|||||||||||||||
Depletion, depreciation, amortization and accretion |
54,915 |
22,311 |
102,892 |
36,373 |
|||||||||||
Impairment of unproved oil and natural gas properties |
— |
101 |
53 |
108 |
|||||||||||
Amortization of debt issuance costs |
421 |
143 |
1,021 |
260 |
|||||||||||
Deferred income taxes |
12,408 |
14,269 |
22,052 |
103,637 |
|||||||||||
Equity-based compensation |
2,379 |
10,775 |
78,057 |
419,739 |
|||||||||||
(Gain) Loss on commodity derivatives |
9,584 |
(26,573) |
13,910 |
(43,615) |
|||||||||||
Net cash receipts (payments) on settled derivatives |
(11,879) |
1,567 |
(27,358) |
496 |
|||||||||||
Other |
(78) |
(44) |
(156) |
(83) |
|||||||||||
Change in operating assets and liabilities: |
|||||||||||||||
Accounts receivable and other current assets |
(13,198) |
(2,385) |
(18,549) |
(8,710) |
|||||||||||
Other assets |
— |
(119) |
— |
(119) |
|||||||||||
Accounts payable and accrued liabilities |
19,939 |
1,856 |
22,214 |
1,397 |
|||||||||||
Net cash provided by operating activities |
119,572 |
38,304 |
199,814 |
60,005 |
|||||||||||
Cash Flows from Investing Activities |
|||||||||||||||
Leasehold and acquisitions costs |
(3,468) |
(27,340) |
(11,053) |
(52,968) |
|||||||||||
Development of oil and natural gas properties |
(206,986) |
(120,919) |
(392,968) |
(195,212) |
|||||||||||
Other capital expenditures |
(611) |
(693) |
(1,881) |
(1,456) |
|||||||||||
Net cash used in investing activities |
(211,065) |
(148,952) |
(405,902) |
(249,636) |
|||||||||||
Cash Flows from Financing Activities |
|||||||||||||||
Proceeds from senior notes |
500,000 |
— |
500,000 |
— |
|||||||||||
Proceeds from senior secured revolving credit facility |
55,000 |
— |
165,000 |
10,000 |
|||||||||||
Repayment of senior secured revolving credit facility |
(320,000) |
— |
(320,000) |
(142,000) |
|||||||||||
Debt issuance costs |
(11,220) |
(421) |
(12,743) |
(1,421) |
|||||||||||
Proceeds from issuance of common stock in IPO, net of underwriting fees |
— |
— |
— |
401,625 |
|||||||||||
Costs related to initial public offering |
— |
(656) |
— |
(3,216) |
|||||||||||
Employee tax withholding for settlement of equity compensation awards |
— |
(88) |
(200) |
(88) |
|||||||||||
Net cash provided by financing activities |
223,780 |
(1,165) |
332,057 |
264,900 |
|||||||||||
Net Change in Cash and Cash Equivalents |
132,287 |
(111,813) |
125,969 |
75,269 |
|||||||||||
Cash and Cash Equivalents, Beginning of Period |
3,205 |
198,809 |
9,523 |
11,727 |
|||||||||||
Cash and Cash Equivalents, End of Period |
$ |
135,492 |
$ |
86,996 |
$ |
135,492 |
$ |
86,996 |
Jagged Peak Energy Inc. | ||||||
Commodity Hedges | ||||||
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. The schedule below summarizes the hedges the Company has in place to hedge the price of WTI and the differential between the Cushing and Midland oil prices. | ||||||
As of August 3, 2018, the Company had the following commodity hedges in place for future production: | ||||||
Production Period |
Volumes |
Weighted Average | ||||
(Bbls) |
($/Bbl) | |||||
Oil Swaps: |
||||||
Third Quarter 2018 |
1,803,200 |
$ |
55.39 |
|||
Fourth Quarter 2018 |
1,789,400 |
$ |
55.66 |
|||
Remainder 2018 |
3,592,600 |
$ |
55.52 |
|||
Full Year 2019 |
7,665,000 |
$ |
59.95 |
|||
Full Year 2020 |
2,928,000 |
$ |
60.82 |
|||
Oil Basis Swaps: |
||||||
Third Quarter 2018 |
1,610,000 |
$ |
(2.27) |
|||
Fourth Quarter 2018 |
1,610,000 |
$ |
(2.27) |
|||
Remainder 2018 |
3,220,000 |
$ |
(2.27) |
|||
Full Year 2019 |
8,763,000 |
$ |
(5.92) |
|||
Full Year 2020 |
9,516,000 |
$ |
(1.31) |
Jagged Peak Energy Inc. | |||||||||||||||
Reconciliation of Adjusted Net Income, Adjusted EBITDAX and Adjusted EBITDAX Margin | |||||||||||||||
(Unaudited) | |||||||||||||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2018 |
2017 |
2018 |
2017 | ||||||||||||
(in thousands) | |||||||||||||||
Adjusted Net Income (Loss) |
|||||||||||||||
Net income (loss) |
$ |
45,081 |
$ |
16,403 |
$ |
5,678 |
$ |
(449,478) |
|||||||
Adjustments to reconcile to adjusted net income |
|||||||||||||||
Impairment of unproved oil and natural gas properties |
— |
101 |
53 |
108 |
|||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
(2,295) |
(25,006) |
(13,448) |
(43,119) |
|||||||||||
Equity-based compensation expense related to allocated management incentive units (1) |
— |
9,513 |
74,470 |
418,477 |
|||||||||||
Deferred income tax expense recorded in connection with the Company's initial public offering |
— |
— |
— |
79,106 |
|||||||||||
Income tax effect for the above items |
495 |
8,844 |
2,890 |
15,269 |
|||||||||||
Adjusted net income (loss) |
$ |
43,281 |
$ |
9,855 |
$ |
69,643 |
$ |
20,363 |
|||||||
Adjusted net income (loss) per basic common share |
$ |
0.20 |
$ |
0.05 |
$ |
0.33 |
$ |
0.10 |
|||||||
Adjusted net income (loss) per diluted common share |
$ |
0.20 |
$ |
0.05 |
$ |
0.33 |
$ |
0.10 |
|||||||
Basic common shares |
213,142 |
212,932 |
213,073 |
212,934 |
|||||||||||
Diluted common shares |
213,262 |
213,051 |
213,169 |
212,934 |
|||||||||||
Adjusted EBITDAX |
|||||||||||||||
Net income (loss) |
$ |
45,081 |
$ |
16,403 |
$ |
5,678 |
$ |
(449,478) |
|||||||
Adjustments to reconcile to adjusted EBITDAX |
|||||||||||||||
Interest expense, net of capitalized |
6,108 |
432 |
8,839 |
1,143 |
|||||||||||
Income tax expense (benefit) |
12,408 |
14,269 |
22,052 |
103,637 |
|||||||||||
Depletion, depreciation, amortization and accretion |
54,915 |
22,311 |
102,892 |
36,373 |
|||||||||||
Impairment of unproved oil and natural gas properties |
— |
101 |
53 |
108 |
|||||||||||
Exploration expenses |
1 |
2 |
1 |
8 |
|||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
(2,295) |
(25,006) |
(13,448) |
(43,119) |
|||||||||||
Equity-based compensation expense (2) |
2,379 |
10,775 |
78,057 |
419,739 |
|||||||||||
Adjusted EBITDAX |
$ |
118,597 |
$ |
39,287 |
$ |
204,124 |
$ |
68,411 |
|||||||
Total production (MBoe) |
3,145 |
1,339 |
6,196 |
2,220 |
|||||||||||
Adjusted EBITDAX margin (3) |
$ |
37.71 |
$ |
29.34 |
$ |
32.94 |
$ |
30.82 |
(1) In connection with the IPO, management incentive units were converted to common stock. A portion of this common stock was transferred to JPE Management Holdings LLC and became subject to the terms and conditions of the amended and restated JPE Management Holdings LLC limited liability company agreement (the "Holdco Agreement"). The compensation expense related to these shares has primarily been recognized ratably as they have vested according to the terms of the Holdco Agreement. However, in February 2018, the Company incurred $71.3 million in accelerated compensation expense related to the modification of service requirements. Only compensation expense related to management incentive units allocated at the time of the IPO is excluded from the calculation of adjusted net income. |
(2) Equity-based compensation expense for the six months ended June 30, 2018 includes $75.2 million related to management incentive units that converted to common stock in connection with the IPO and $2.9 million related to equity awards issued under the Company's long-term incentive plan. |
(3) Adjusted EBITDAX margin is calculated as Adjusted EBITDAX divided by total production, expressed as adjusted EBITDAX per Boe. |
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-second-quarter-2018-financial-and-operating-results-provides-updated-2018-guidance-300695137.html
SOURCE Jagged Peak Energy Inc.
DENVER, Aug. 1, 2018 /PRNewswire/ -- Regardless of whether your area of interest in the U.S. energy sector is the shale plays and companies drilling the U.S. basins, offshore drilling in the Gulf of Mexico, oil pipelines, LNG exports, Texas-sourced frac sand, oilfield services or new oilfield technologies, the 23rd annual EnerCom conference will deliver the best of the industry to the Denver Downtown Westin Hotel Denver Aug. 19-22, 2018.
The combined market value of the presenting public companies is more than $220 billion and the publicly-traded energy companies represent a combined enterprise value of more than $275 billion—55% higher than last year.
Several privately held E&Ps and related energy service companies will be at the conference in force as well this year, participating in a variety of panels at the conference. Conference attendees have a rare opportunity to hear from several large private operators who—unlike their publicly traded counterparts—often say nothing in public about their operations.
Among the private oil companies participating in the conference is Anschutz Exploration, a large operator with assets in the Powder River and Washakie Basins of Wyoming, the Piceance and DJ Basins of Colorado and the Unita Basin of Utah. Other private drillers include Permian producer Felix Energy, DJ Basin producer Great Western Oil & Gas, conventional Piceance gas producer Caerus Oil and Gas, and Powder River and Green River Basin operator Samson Resources II.
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2017, EnerCom managed more than 2,100 one-on-one meeting requests. Buyside investors may request meetings on the conference website or contact EnerCom for more information at 303-296-8834.
How to Register: Investment professionals and oil and gas companies can register for the event through the conference website.
2018 Presenting Companies: The Oil & Gas Conference® 2018 presenting companies consist of the following:
Looking at basin and sector, the 2018 EnerCom conference presenting companies and companies participating in panels break out as follows (list is subject to change prior to the conference– please refer to The Oil & Gas Conference website for an updated schedule of presenting companies):
Exploration & Production and Other Energy Companies by Focus Area and Sector
Bakken/Three Forks
Eagle Ford
Permian Basin
Woodford & Other Mid-Continent – SCOOP/STACK
Marcellus/Utica
Niobrara
Gulf of Mexico/Offshore
Haynesville
Pinedale – Jonah Field – Uinta Basin
Enhanced Oil Recovery
Canadian E&Ps
International E&Ps
LNG Export Projects
Oilfield Service Companies
Midstream
Mineral, Royalty, Infrastructure Holders, Acquisition Companies
Private Companies – E&Ps, Midstream, Energy Data and Technology, Energy Capital, Government Energy Agencies
A work-in-progress schedule of the 2018 presenting companies is posted on the conference website and is regularly updated.
Sponsors of The Oil & Gas Conference®
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest independent energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; RS Energy Group; Moss Adams; and Preng & Associates.
Sponsors of The Oil & Gas Conference® 23 are Bank of America Merrill Lynch; AssuredPartners; DNB Bank ASA; Fifth Third Bank; CIBC; Haynes and Boone; Credit Agricole CIB; Natixis; PJ SOLOMON; PNC Financial Services Group; Wells Fargo; MUFG; SMBC; Opportune LLP; Petrie Partners; EnergyNet; McGriff, Seibels & Williams, Inc.; Energy Intelligence; and TGS.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized oil and gas-focused investor relations consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor communications, media relations and providing visual communications design.
EnerCom offers services and produces and publishes numerous data products and external communications tools for public and private energy companies including:
EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
Headquartered in Denver, with senior consultants in Dallas and Houston, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 19-22, 2018
EnerCom Dallas – Feb. 27-28, 2019
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About RS Energy Group
RS Energy Group (RSEG) provides data-driven intelligence: evaluate assets, weigh valuable M&A opportunities and benchmark your business for more precise decision-making.
RSEG officially released its data solution in April 2017. RS Data™ provides clients with corrected, multi-sourced permit, completion and production data of unparalleled completeness and quality.
Today, RSEG's intelligence covers more than 150 companies operating in every key North American and many international energy plays with a powerful combination of practical insights at the asset level and a long-standing participation in capital markets. RSEG's independent, unbiased and accurate analysis forms a foundation of trust with its clients. Its collaborative approach, both internally and as an extension of its clients' research efforts, promotes innovation and fosters intimate, long term partnerships.
RS Energy Group (RSEG) is headquartered in Calgary, Alberta, with strategic locations in Houston, New York City, Philadelphia, San Francisco and Los Angeles. Contact RS Energy Group by phone at (403) 294-9111, or email info@rseg.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group.
With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home .
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About AssuredPartners
AssuredPartners Colorado (AP CO) combines 30+ years of experience with leading-edge products to provide exceptional service and value to our customers. We provide a full range of brokerage services including employee benefits, property and casualty, and retirement. Headquartered in Colorado, we think globally but act locally, with personal services designed specifically for each individual client. AP CO utilizes resources with national networks of brokers to ensure we can meet your every need and find answers to your questions quickly and efficiently.
Our goal is to achieve a long-term relationship focused on bringing value to your employee benefits management and insurance programs. We are committed to utilizing our collective talent to support your insurance goals. We work to identify activities that drive claim frequency, and implement an action plan to control health care costs and promote a healthy work environment for your employees.
Securing the best insurance package for your business begins with planning. Analyzing all your risks is critical to successful implementation of your insurance plan. AP CO will partner with you by providing ongoing assistance, consultation and service that will help you control your insurance expenses, choose the best plan to fit your company's needs and promote health care consumerism.
For more information on Assured Partners, please visit the website, call (800) 322-9773 or email info@assuredptrco.com.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy, and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Fifth Third Bancorp
Fifth Third Bank is a diversified financial services company with over $120 billion in assets. The Bank's energy group is comprised of experienced and knowledgeable individuals that can assist in providing and structuring financial solutions to meet their clients' needs across the upstream, midstream, downstream and services sectors. Solutions and capabilities include commodity hedging, interest rate management, foreign exchange, debt capital markets, treasury management, and depository/investment products.
For more information, please contact Richard Butler at 713-401-6101 or richard.butler@53.com.
About CIBC
CIBC is a leading North American bank headquartered in Canada and with offices around the world. CIBC was originally founded nearly 150 years ago, and has supported and financed the energy industry for many decades. CIBC was recently ranked as the strongest publicly traded bank in North America by Bloomberg, and is rated A+/Aa3 by S&P and Moody's, respectively.
Our energy specialists draw on the breadth of CIBC's capabilities to provide market insights and creative solutions for our clients. Services include corporate banking, commodity and interest rate hedging and strategy, A&D advisory, and capital markets.
CIBC is publicly traded on the NYSE and Toronto Stock Exchange under the symbol "CM" and has a market cap of $36 billion and nearly $400 billion in total assets. For more information, please visit the CIBC energy website.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
The Bank provides support to clients in large international markets through its network, with a presence in major countries in Europe, the Americas, Asia and the Middle East.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
About Natixis
Natixis is the international corporate and investment banking, asset management, insurance and financial services arm of Groupe BPCE, the second-largest banking group in France.
Natixis Corporate & Investment Banking advises and assists corporations, financial institutions, institutional investors, financial sponsors, public-sector organizations and the networks of Groupe BPCE.
We furnish a diversified array of financing solutions, provide access to capital markets and transaction banking services.
Areas of expertise include Advisory: M&A, primary equity, capital & rating advisory; Financing: vanilla and structured; Capital Markets: equities, fixed income, credit, forex and commodities; Global Transaction Banking: trade finance, cash management, liquidity management and correspondent banking; Research: economic, credit, equity and quantitative.
The Bank leverages the expertise and highly technical skills of its teams, and provides industry-recognized research to build innovative and mix-and-matchable solutions. Corporate and Investment Banking is present on the main financial markets via three international platforms: Americas, Asia-Pacific, and EMEA (Europe, Middle East, Africa).
About PJ SOLOMON
PJ SOLOMON is an investment banking advisory firm that provides strategic advisory services to chief executive officers and senior management, owners of public and private companies, boards of directors, and special committees.
Our full suite of advisory services includes Mergers and Acquisitions, Restructuring and Capital Markets across a range of industry verticals.
The PJ SOLOMON Energy Advisory Group provides strategic investment banking advisory services to public and private clients across the energy chain. Drawing upon our extensive sector relationships and deep strategic and operational expertise, we can offer a unique and valued advisory platform for the upstream, upstream A&D, midstream and the utility sectors.
Based in our Houston office, the PJ SOLOMON Energy team holds more than 100 years of experience on a broad range of domestic and cross-border transactions including mergers and acquisitions, A&D, restructurings, bankruptcies, and public and private capital raisings.
Industry sectors/sub-sectors include: Upstream, Upstream A&D, Midstream, Energy related and Utilities.
About PNC Financial Services Group
PNC is one of the largest, best-regarded and best-capitalized financial services companies in the country, with approximately $325 billion in assets and offices in 33 states, Canada and the United Kingdom.
PNC's Energy Group, headed by Tom Byargeon, is a significant capital and service provider to energy companies, with approximately $6.5 billion in commitments to the industry. The Energy office in Houston houses a team with extensive experience and deep relationships across the entire energy supply chain. This group also offers strategic corporate finance advice and delivers PNC's comprehensive set of solutions and capabilities, including commodity and interest rate hedging, debt capital markets, loan syndications, treasury management, asset securitization, equipment finance and institutional investments.
For more information, please contact Tom Byargeon at 713-353-8782 or tom.byargeon@pnc.com. You can also visit www.pnc.com.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) has been a leading provider of banking services to the oil and gas industry in the Americas for more than 30 years, consistently ranking in the Top 10 Lead Arrangers and Top 10 Bond Arrangers in the Thomson Reuters Oil and Gas League Tables.
We support clients across the industry—from regional exploration and production to global diversified services companies—that benefit from our focused approach, strong execution, and customized services. Whether you are looking to expand existing reserves, make an acquisition, or streamline operations, we can support your growth with services, including: underwriting and syndications; U.S./Canadian cross-border funding; securities underwriting and placements; leasing and tax equity financing; and commodities, interest rate, and foreign exchange risk management.
For more information, visit: www.mufgamericas.com/oil-gas.
About Wells Fargo & Company
Wells Fargo & Company is a nationwide, diversified, community-based financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
The Energy Banking Group, headed by Bart Schouest, provides corporate banking products and services to the energy sector, including upstream, midstream, oilfield services, and diversified industries. With offices in Houston, Dallas, Denver, Calgary, and Aberdeen the group's success is driven by in-depth industry expertise and longstanding relationships with key industry participants. The group has over $45 billion of credit commitments to public and private companies across the upstream, midstream, downstream, services, and power and utilities sectors.
The Energy & Power Investment Banking Group, headed by James Kipp, provides strategic advisory and corporate finance expertise to energy and power clients, including upstream, midstream, oilfield services, downstream, coal and the power & utilities sectors. Areas of focus include equity, equity-linked and debt underwritings, private placements, syndications, and mergers and acquisitions. The Energy & Power Investment Banking Group has offices in Houston and Charlotte.
These teams work together to offer clients industry and product expertise, in addition to sharing their understanding of internal and external forces that drive both industry trends and financial markets. For additional information, contact us at 713-319-1350 or Energy@wellsfargo.com.
To learn more about Wells Fargo & Company, please visit the company's web site at www.wellsfargo.com.
About SMBC
Sumitomo Mitsui Banking Corporation (SMBC) is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest 25 banks globally by assets under management.
SMBC Americas Division, with more than 2,500 employees, oversees operations in the U.S., Canada, Mexico, and South America. We work across SMFG to offer corporate and institutional clients sophisticated and comprehensive financial services around the globe.
SMBC's roots in Japan trace back more than 400 years to 1590. The Americas Division of SMBC has more than a century of experience in the United States, beginning when the San Francisco branch of Sumitomo Bank was established in 1919. Sumitomo Mitsui Financial Group (NYSE: SMFG) was listed on the New York Stock Exchange in 2010.
For more information please visit the corporate website: www.smbcgroup.com/americas/group-companies/
About Opportune LLP
Founded in 2005, Opportune is a leading global energy consulting firm specializing in adding value to clients across the energy industry, including upstream, midstream, downstream, power and gas, commodities trading and oilfield services.
Since we are not an audit firm, we are advocates of our clients and are not subject to the restrictions placed on other firms by regulatory bodies. Using our extensive knowledge of all sectors of the energy industry, we work with clients to provide comprehensive solutions to their operational and financial challenges.
Our practice areas include complex financial reporting, dispute resolution, enterprise risk, outsourcing, process and technology, reserve engineering and geosciences, restructuring, strategy and organization, tax, transactional due diligence and valuation. Opportune LLP is not a CPA firm.
Opportune's corporate headquarters are in Houston, Texas. The firm also has offices in Dallas, Denver, New York City, Tulsa, and the UK. For more information please call Ashley Hunt, Marketing Coordinator,
713.490.5050 and visit the web site https://opportune.com/.
About Petrie Partners, LLC
Petrie Partners, LLC is a boutique investment banking firm offering financial advisory services to the oil and gas industry. We provide specialized advice on mergers, divestitures and acquisitions and private placements.
The firm was formed in 2011 (as Strategic Energy Advisors) by senior bankers formerly with Bank of America Merrill Lynch and Petrie Parkman & Co., an investment bank that built a reputation as a most trusted advisor to energy clients during the nearly two decades leading up to its merger into Merrill Lynch in 2006.
Through tenure with Petrie Parkman, Merrill Lynch and Bank of America Merrill Lynch, the senior members of the Petrie team bring to bear an average of more than 25 years of energy investment banking experience, including over 300 energy M&A and capital raising transactions representing over $350 billion of aggregate consideration.
For information about the firm, please visit www.petrie.com or call the firm's Denver office (303.953.6768) or the Houston office (713.659.0760).
About EnergyNet
EnergyNet is the only continuous oil and gas auction and sealed bid transaction service that facilitates the sale of producing working interests (operated and non-operated), overrides, royalties, mineral interests, and non-producing leasehold. EnergyNet is a continuous oil and gas property marketplace with due diligence and bidding available 24/7/365, where auctions and sealed bid packages close weekly. Most of the properties EnergyNet sells are located in the lower 48 United States and typically range in value from $1,000 to $100,000,000.
Details about how to buy and sell oil and gas properties using the EnergyNet online auction service are available on the website at https://www.energynet.com/.
About McGriff, Seibels & Williams, Inc.
McGriff, Seibels & Williams is one of the most progressive insurance brokerage firms in the United States, leading the way with innovative programs to protect clients' financial interests. Services include construction risk, energy and marine, surety, employee benefits and financial services. McGriff's Energy & Marine Division offers specialty services for clients with worldwide operations and potentially catastrophic exposures. Our expertise in this niche industry has made us one of the largest independent energy brokers in the U.S. and one of the top five energy brokers worldwide.
Our client base includes more than 50 electric/gas utility and merchant energy companies, several coal mining companies, and more than 70 E&P companies. It also includes the Strategic Petroleum Reserve and numerous oilfield service companies, including vessel operators, offshore drilling companies, and international marine construction companies.
We will structure and implement a domestic or foreign program for virtually any type of energy-related risk. We have more than 125 professionals in our energy division. Using alternative risk transfer and traditional insurance solutions, we determine the appropriate combination of coverage and risk assumption.
Please contact the company through the website or by calling 800 476 - 2211.
About Energy Intelligence
Energy Intelligence has been a leading independent provider of objective insight, unbiased analysis and reliable data for over 60 years. With offices in New York, London, Houston, Dubai, Moscow, Washington, Singapore and Brussels, we provide decision-makers with critically important information on issues and events affecting the global energy complex.
Our benchmark Information Services, Petroleum Intelligence Weekly, Oil Daily, Natural Gas Week, World Gas Intelligence and Energy Compass, are produced by highly experienced journalists, and our research reports and advisory services are provided by highly regarded analysts and economists.
Information on Energy Intelligence is available at the company website: https://www.energyintel.com/pages/non-subscriber.aspx
About TGS
TGS was founded in Houston in 1981 and over time built the dominant 2D multi-client data library in the Gulf of Mexico. The company expanded further into North America and West Africa and added a substantial 3D portfolio in the Gulf of Mexico.
Also in 1981, NOPEC was founded in Oslo and began building an industry-leading multi-client 2D database in the North Sea, with additional operations in Australia and the Far East. In 1997, NOPEC went public on the Oslo Stock Exchange. In 1998, the companies merged to form TGS-NOPEC Geophysical Company (TGS), creating a winning combination for investors, customers and employees. Since then, TGS has set the standard for geoscientific data around the world.
Additional information is available at the company website: http://www.tgs.com/about-tgs/company-history/ .
View original content:http://www.prnewswire.com/news-releases/90-public-and-private-oil-and-gas-company-leaders-and-experts-to-speak-at-the-23rd-annual-enercom---the-oil--gas-conference-300689920.html
SOURCE EnerCom, Inc.
DENVER, Aug. 1, 2018 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") today announced that it plans to release its second quarter earnings and operational update after market close on August 9, 2018, and will host a conference call to discuss those results and updates on Friday, August 10, 2018 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time).
To join the live, interactive call, please dial 1-855-327-6838 ten minutes before the scheduled start time (international callers dial 1-604-235-2082). The call will be webcast live and accessible on the Investor Relations section of the Company's website at www.jaggedpeakenergy.com.
A telephone replay of the call will be available through August 31, 2018 by dialing 1-844-512-2921 (1-412-317-6671 international) with the passcode 10005345. Additionally, a replay will be available on the Company's website approximately two hours after the conference call.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas. For more information, visit our website at www.jaggedpeakenergy.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-schedules-second-quarter-2018-earnings-and-operational-update-conference-call-300689907.html
SOURCE Jagged Peak Energy Inc.
The Oil & Gas Conference® 2018 presenting companies:
- 40 North American shale E&Ps
- 7 international E&Ps
- 10 other producers
- 9 oilfield service providers
- 9 private E&Ps, midstream and data providers
- $202 billion in market value
- 3.2 million barrels of oil equivalent production per day
- $251 billion in enterprise value
DENVER, July 12, 2018 /PRNewswire/ -- An impressive roster of publicly traded oil and gas company senior leadership teams will be telling their companies' stories and presenting operational and financial updates to investors at the 2018 edition of EnerCom's The Oil & Gas Conference®.
CEOs across the upstream and oilfield service spectrum will be at the Denver Downtown Westin Hotel Aug. 20-23, 2018 to make financial presentations and meet with buyside investors and analysts for the 2018 EnerCom conference.
Market Cap: The presenting North American shale E&Ps, other explorers and producers, international E&Ps, and global oilfield service companies represent a combined market value of $202 billion, 71% higher than last year.
Enterprise Value: The 2018 presenting companies represent a combined enterprise value of $251 billion—53% higher than last year.
Production: EnerCom conference E&Ps are producing more than 3.2 million barrels of oil per day, slightly more than last year.
As to basin and sector, the 2018 EnerCom conference presenting companies break out as follows (list is subject to change prior to conference– please refer to The Oil & Gas Conference website for an updated schedule of presenting companies):
Exploration & Production Companies by Focus Area
Bakken/Three Forks
Eagle Ford
Permian Basin
Woodford & Other Mid-Continent – SCOOP/STACK
Marcellus/Utica
Niobrara
Gulf of Mexico/Offshore
Haynesville
Pinedale – Jonah Field – Uinta Basin
Enhanced Oil Recovery
Canadian E&Ps
International E&Ps
Oilfield Service Companies
Mineral, Royalty, Infrastructure Holders
Private Companies – E&Ps, Midstream, Energy Data and Technology Providers
Public and Private Company Presenters: The 2018 edition of EnerCom's The Oil & Gas Conference® will feature public and private oil and gas companies with operations spanning 40 countries and six continents, including all U.S. shale basins, the Gulf of Mexico, Canada, Latin America, Europe, and Australasia.
A work-in-progress schedule of the 2018 presenting companies is posted on the conference website and will be regularly updated.
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2017, EnerCom managed more than 2,100 one-on-one meeting requests. Buyside investors may request meetings on the conference website or contact EnerCom for more information at 303-296-8834.
How to Register: Investment professionals and oil and gas companies can register for the event through the conference website.
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; RS Energy Group; Moss Adams; and Preng & Associates. Sponsors of The Oil & Gas Conference® 23 are Bank of America Merrill Lynch; AssuredPartners; DNB Bank ASA; Fifth Third Bank; CIBC; Haynes and Boone; Credit Agricole CIB; Natixis; PJ SOLOMON; PNC Financial Services Group; Wells Fargo; MUFG; SMBC; and Opportune LLP.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized oil and gas-focused investor relations consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor communications, media relations and providing visual communications design.
EnerCom offers services and produces and publishes numerous data products and external communications tools for public and private energy companies including:
EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
Headquartered in Denver, with senior consultants in Dallas and Houston, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 19-22, 2018
EnerCom Dallas – Feb. 27-28, 2019
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About RS Energy Group
RS Energy Group (RSEG) provides data-driven intelligence: evaluate assets, weigh valuable M&A opportunities and benchmark your business for more precise decision-making.
RSEG officially released its data solution in April 2017. RS Data™ provides clients with corrected, multi-sourced permit, completion and production data of unparalleled completeness and quality.
Today, RSEG's intelligence covers more than 150 companies operating in every key North American and many international energy plays with a powerful combination of practical insights at the asset level and a long-standing participation in capital markets. RSEG's independent, unbiased and accurate analysis forms a foundation of trust with its clients. Its collaborative approach, both internally and as an extension of its clients' research efforts, promotes innovation and fosters intimate, long term partnerships.
RS Energy Group (RSEG) is headquartered in Calgary, Alberta, with strategic locations in Houston, New York City, Philadelphia, San Francisco and Los Angeles. Contact RS Energy Group by phone at (403) 294-9111, or email info@rseg.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group.
With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home .
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About AssuredPartners
AssuredPartners Colorado (AP CO) combines 30+ years of experience with leading-edge products to provide exceptional service and value to our customers. We provide a full range of brokerage services including employee benefits, property and casualty, and retirement. Headquartered in Colorado, we think globally but act locally, with personal services designed specifically for each individual client. AP CO utilizes resources with national networks of brokers to ensure we can meet your every need and find answers to your questions quickly and efficiently.
Our goal is to achieve a long-term relationship focused on bringing value to your employee benefits management and insurance programs. We are committed to utilizing our collective talent to support your insurance goals. We work to identify activities that drive claim frequency, and implement an action plan to control health care costs and promote a healthy work environment for your employees.
Securing the best insurance package for your business begins with planning. Analyzing all your risks is critical to successful implementation of your insurance plan. AP CO will partner with you by providing ongoing assistance, consultation and service that will help you control your insurance expenses, choose the best plan to fit your company's needs and promote health care consumerism.
For more information on Assured Partners, please visit the website, call (800) 322-9773 or email info@assuredptrco.com.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy, and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Fifth Third Bancorp
Fifth Third Bank is a diversified financial services company with over $120 billion in assets. The Bank's energy group is comprised of experienced and knowledgeable individuals that can assist in providing and structuring financial solutions to meet their clients' needs across the upstream, midstream, downstream and services sectors. Solutions and capabilities include commodity hedging, interest rate management, foreign exchange, debt capital markets, treasury management, and depository/investment products.
For more information, please contact Richard Butler at 713-401-6101 or richard.butler@53.com.
About CIBC
CIBC is a leading North American bank headquartered in Canada and with offices around the world. CIBC was originally founded nearly 150 years ago, and has supported and financed the energy industry for many decades. CIBC was recently ranked as the strongest publicly traded bank in North America by Bloomberg, and is rated A+/Aa3 by S&P and Moody's, respectively.
Our energy specialists draw on the breadth of CIBC's capabilities to provide market insights and creative solutions for our clients. Services include corporate banking, commodity and interest rate hedging and strategy, A&D advisory, and capital markets.
CIBC is publicly traded on the NYSE and Toronto Stock Exchange under the symbol "CM" and has a market cap of $36 billion and nearly $400 billion in total assets. For more information, please visit the CIBC energy website.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
The Bank provides support to clients in large international markets through its network, with a presence in major countries in Europe, the Americas, Asia and the Middle East.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
About Natixis
Natixis is the international corporate and investment banking, asset management, insurance and financial services arm of Groupe BPCE, the second-largest banking group in France.
Natixis Corporate & Investment Banking advises and assists corporations, financial institutions, institutional investors, financial sponsors, public-sector organizations and the networks of Groupe BPCE.
We furnish a diversified array of financing solutions, provide access to capital markets and transaction banking services.
Areas of expertise include Advisory: M&A, primary equity, capital & rating advisory; Financing: vanilla and structured; Capital Markets: equities, fixed income, credit, forex and commodities; Global Transaction Banking: trade finance, cash management, liquidity management and correspondent banking; Research: economic, credit, equity and quantitative.
The Bank leverages the expertise and highly technical skills of its teams, and provides industry-recognized research to build innovative and mix-and-matchable solutions. Corporate and Investment Banking is present on the main financial markets via three international platforms: Americas, Asia-Pacific, and EMEA (Europe, Middle East, Africa).
About PJ SOLOMON
PJ SOLOMON is an investment banking advisory firm that provides strategic advisory services to chief executive officers and senior management, owners of public and private companies, boards of directors, and special committees.
Our full suite of advisory services includes Mergers and Acquisitions, Restructuring and Capital Markets across a range of industry verticals.
The PJ SOLOMON Energy Advisory Group provides strategic investment banking advisory services to public and private clients across the energy chain. Drawing upon our extensive sector relationships and deep strategic and operational expertise, we can offer a unique and valued advisory platform for the upstream, upstream A&D, midstream and the utility sectors.
Based in our Houston office, the PJ SOLOMON Energy team holds more than 100 years of experience on a broad range of domestic and cross-border transactions including mergers and acquisitions, A&D, restructurings, bankruptcies, and public and private capital raisings.
Industry sectors/sub-sectors include: Upstream, Upstream A&D, Midstream, Energy related and Utilities.
About PNC Financial Services Group
PNC is one of the largest, best-regarded and best-capitalized financial services companies in the country, with approximately $325 billion in assets and offices in 33 states, Canada and the United Kingdom.
PNC's Energy Group, headed by Tom Byargeon, is a significant capital and service provider to energy companies, with approximately $6.5 billion in commitments to the industry. The Energy office in Houston houses a team with extensive experience and deep relationships across the entire energy supply chain. This group also offers strategic corporate finance advice and delivers PNC's comprehensive set of solutions and capabilities, including commodity and interest rate hedging, debt capital markets, loan syndications, treasury management, asset securitization, equipment finance and institutional investments.
For more information, please contact Tom Byargeon at 713-353-8782 or tom.byargeon@pnc.com. You can also visit www.pnc.com.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) has been a leading provider of banking services to the oil and gas industry in the Americas for more than 30 years, consistently ranking in the Top 10 Lead Arrangers and Top 10 Bond Arrangers in the Thomson Reuters Oil and Gas League Tables.
We support clients across the industry—from regional exploration and production to global diversified services companies—that benefit from our focused approach, strong execution, and customized services. Whether you are looking to expand existing reserves, make an acquisition, or streamline operations, we can support your growth with services, including: underwriting and syndications; U.S./Canadian cross-border funding; securities underwriting and placements; leasing and tax equity financing; and commodities, interest rate, and foreign exchange risk management.
For more information, visit: www.mufgamericas.com/oil-gas.
About Wells Fargo & Company
Wells Fargo & Company is a nationwide, diversified, community-based financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
The Energy Banking Group, headed by Bart Schouest, provides corporate banking products and services to the energy sector, including upstream, midstream, oilfield services, and diversified industries. With offices in Houston, Dallas, Denver, Calgary, and Aberdeen the group's success is driven by in-depth industry expertise and longstanding relationships with key industry participants. The group has over $45 billion of credit commitments to public and private companies across the upstream, midstream, downstream, services, and power and utilities sectors.
The Energy & Power Investment Banking Group, headed by James Kipp, provides strategic advisory and corporate finance expertise to energy and power clients, including upstream, midstream, oilfield services, downstream, coal and the power & utilities sectors. Areas of focus include equity, equity-linked and debt underwritings, private placements, syndications, and mergers and acquisitions. The Energy & Power Investment Banking Group has offices in Houston and Charlotte.
These teams work together to offer clients industry and product expertise, in addition to sharing their understanding of internal and external forces that drive both industry trends and financial markets. For additional information, contact us at 713-319-1350 or Energy@wellsfargo.com.
To learn more about Wells Fargo & Company, please visit the company's web site at www.wellsfargo.com.
About SMBC
Sumitomo Mitsui Banking Corporation (SMBC) is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest 25 banks globally by assets under management.
SMBC Americas Division, with more than 2,500 employees, oversees operations in the U.S., Canada, Mexico, and South America. We work across SMFG to offer corporate and institutional clients sophisticated and comprehensive financial services around the globe.
SMBC's roots in Japan trace back more than 400 years to 1590. The Americas Division of SMBC has more than a century of experience in the United States, beginning when the San Francisco branch of Sumitomo Bank was established in 1919. Sumitomo Mitsui Financial Group (NYSE: SMFG) was listed on the New York Stock Exchange in 2010.
For more information please visit the corporate website: www.smbcgroup.com/americas/group-companies/
About Opportune LLP
Founded in 2005, Opportune is a leading global energy consulting firm specializing in adding value to clients across the energy industry, including upstream, midstream, downstream, power and gas, commodities trading and oilfield services.
Since we are not an audit firm, we are advocates of our clients and are not subject to the restrictions placed on other firms by regulatory bodies. Using our extensive knowledge of all sectors of the energy industry, we work with clients to provide comprehensive solutions to their operational and financial challenges.
Our practice areas include complex financial reporting, dispute resolution, enterprise risk, outsourcing, process and technology, reserve engineering and geosciences, restructuring, strategy and organization, tax, transactional due diligence and valuation. Opportune LLP is not a CPA firm.
Opportune's corporate headquarters are in Houston, Texas. The firm also has offices in Dallas, Denver, New York City, Tulsa, and the UK. For more information please call Ashley Hunt, Marketing Coordinator, 713.490.5050, and visit the web site https://opportune.com/.
View original content:http://www.prnewswire.com/news-releases/251-billion-in-public-oil--gas-companies-will-be-in-denver-for-the-23rd-annual-enercom-conference-300680266.html
SOURCE EnerCom, Inc.
DENVER, June 20, 2018 /PRNewswire/ -- EnerCom, Inc. is pleased to update the list of oil and gas companies and energy sector experts who will be presenters at the 23rd annual edition of The Oil & Gas Conference®, coming August 19-22, 2018, to the Westin Denver Downtown.
Public and Private Company Presenters: The 2018 edition of EnerCom's The Oil & Gas Conference® will feature public and private oil and gas companies with operations spanning 40 countries and six continents, including all U.S. shale basins, the Gulf of Mexico, Canada, Latin America and Africa. A work-in-progress list of the 2018 presenting companies will be posted and updated on the conference website.
The EnerCom Denver 2018 presenting companies include but are not limited to:
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2017, EnerCom managed more than 2,100 one-on-one meeting requests.
How to Register: Investment professionals and oil and gas companies can register for the event through the conference website.
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; RS Energy Group; Moss Adams; and Preng & Associates. Sponsors of The Oil & Gas Conference® 23 are Bank of America Merrill Lynch; AssuredPartners; DNB Bank ASA; Fifth Third Bank; CIBC; Haynes and Boone; Credit Agricole CIB; Natixis; PJ SOLOMON; PNC Financial Services Group; Wells Fargo; MUFG; and SMBC.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized oil and gas-focused investor relations consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor communications, media relations and providing visual communications design.
EnerCom offers services and produces and publishes numerous data products and external communications tools for public and private energy companies including:
EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
Headquartered in Denver, with senior consultants in Dallas and Houston, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 19-22, 2018
EnerCom Dallas – Feb. 27-28, 2019
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About RS Energy Group
RS Energy Group (RSEG) provides data-driven intelligence: evaluate assets, weigh valuable M&A opportunities and benchmark your business for more precise decision-making.
RSEG officially released its data solution in April 2017. RS Data™ provides clients with corrected, multi-sourced permit, completion and production data of unparalleled completeness and quality.
Today, RSEG's intelligence covers more than 150 companies operating in every key North American and many international energy plays with a powerful combination of practical insights at the asset level and a long-standing participation in capital markets. RSEG's independent, unbiased and accurate analysis forms a foundation of trust with its clients. Its collaborative approach, both internally and as an extension of its clients' research efforts, promotes innovation and fosters intimate, long term partnerships.
RS Energy Group (RSEG) is headquartered in Calgary, Alberta, with strategic locations in Houston, New York City, Philadelphia, San Francisco and Los Angeles. Contact RS Energy Group by phone at (403) 294-9111, or email info@rseg.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group.
With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home .
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About AssuredPartners
AssuredPartners Colorado (AP CO) combines 30+ years of experience with leading-edge products to provide exceptional service and value to our customers. We provide a full range of brokerage services including employee benefits, property and casualty, and retirement. Headquartered in Colorado, we think globally but act locally, with personal services designed specifically for each individual client. AP CO utilizes resources with national networks of brokers to ensure we can meet your every need and find answers to your questions quickly and efficiently.
Our goal is to achieve a long-term relationship focused on bringing value to your employee benefits management and insurance programs. We are committed to utilizing our collective talent to support your insurance goals. We work to identify activities that drive claim frequency, and implement an action plan to control health care costs and promote a healthy work environment for your employees.
Securing the best insurance package for your business begins with planning. Analyzing all your risks is critical to successful implementation of your insurance plan. AP CO will partner with you by providing ongoing assistance, consultation and service that will help you control your insurance expenses, choose the best plan to fit your company's needs and promote health care consumerism.
For more information on Assured Partners, please visit the website, call (800) 322-9773 or email info@assuredptrco.com.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy, and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Fifth Third Bancorp
Fifth Third Bank is a diversified financial services company with over $120 billion in assets. The Bank's energy group is comprised of experienced and knowledgeable individuals that can assist in providing and structuring financial solutions to meet their clients' needs across the upstream, midstream, downstream and services sectors. Solutions and capabilities include commodity hedging, interest rate management, foreign exchange, debt capital markets, treasury management, and depository/investment products.
For more information, please contact Richard Butler at 713-401-6101 or richard.butler@53.com.
About CIBC
CIBC is a leading North American bank headquartered in Canada and with offices around the world. CIBC was originally founded nearly 150 years ago, and has supported and financed the energy industry for many decades. CIBC was recently ranked as the strongest publicly traded bank in North America by Bloomberg, and is rated A+/Aa3 by S&P and Moody's, respectively.
Our energy specialists draw on the breadth of CIBC's capabilities to provide market insights and creative solutions for our clients. Services include corporate banking, commodity and interest rate hedging and strategy, A&D advisory, and capital markets.
CIBC is publicly traded on the NYSE and Toronto Stock Exchange under the symbol "CM" and has a market cap of $36 billion and nearly $400 billion in total assets. For more information, please visit the CIBC energy website.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
The Bank provides support to clients in large international markets through its network, with a presence in major countries in Europe, the Americas, Asia and the Middle East.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
About Natixis
Natixis is the international corporate and investment banking, asset management, insurance and financial services arm of Groupe BPCE, the second-largest banking group in France.
Natixis Corporate & Investment Banking advises and assists corporations, financial institutions, institutional investors, financial sponsors, public-sector organizations and the networks of Groupe BPCE. We furnish a diversified array of financing solutions, provide access to capital markets and transaction banking services.
Areas of expertise include Advisory: M&A, primary equity, capital & rating advisory; Financing: vanilla and structured; Capital Markets: equities, fixed income, credit, forex and commodities; Global Transaction Banking: trade finance, cash management, liquidity management and correspondent banking; Research: economic, credit, equity and quantitative.
The Bank leverages the expertise and highly technical skills of its teams, and provides industry-recognized research to build innovative and mix-and-matchable solutions. Corporate and Investment Banking is present on the main financial markets via three international platforms: Americas, Asia-Pacific, and EMEA (Europe, Middle East, Africa).
About PJ SOLOMON
PJ SOLOMON is an investment banking advisory firm that provides strategic advisory services to chief executive officers and senior management, owners of public and private companies, boards of directors, and special committees.
Our full suite of advisory services includes Mergers and Acquisitions, Restructuring and Capital Markets across a range of industry verticals.
The PJ SOLOMON Energy Advisory Group provides strategic investment banking advisory services to public and private clients across the energy chain. Drawing upon our extensive sector relationships and deep strategic and operational expertise, we can offer a unique and valued advisory platform for the upstream, upstream A&D, midstream and the utility sectors.
Based in our Houston office, the PJ SOLOMON Energy team holds more than 100 years of experience on a broad range of domestic and cross-border transactions including mergers and acquisitions, A&D, restructurings, bankruptcies, and public and private capital raisings.
Industry sectors/sub-sectors include: Upstream, Upstream A&D, Midstream, Energy related and Utilities.
About PNC Financial Services Group
PNC is one of the largest, best-regarded and best-capitalized financial services companies in the country, with approximately $325 billion in assets and offices in 33 states, Canada and the United Kingdom.
PNC's Energy Group, headed by Tom Byargeon, is a significant capital and service provider to energy companies, with approximately $6.5 billion in commitments to the industry. The Energy office in Houston houses a team with extensive experience and deep relationships across the entire energy supply chain. This group also offers strategic corporate finance advice and delivers PNC's comprehensive set of solutions and capabilities, including commodity and interest rate hedging, debt capital markets, loan syndications, treasury management, asset securitization, equipment finance and institutional investments.
For more information, please contact Tom Byargeon at 713-353-8782 or tom.byargeon@pnc.com. You can also visit www.pnc.com.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) has been a leading provider of banking services to the oil and gas industry in the Americas for more than 30 years, consistently ranking in the Top 10 Lead Arrangers and Top 10 Bond Arrangers in the Thomson Reuters Oil and Gas League Tables.
We support clients across the industry—from regional exploration and production to global diversified services companies—that benefit from our focused approach, strong execution, and customized services. Whether you are looking to expand existing reserves, make an acquisition, or streamline operations, we can support your growth with services, including: underwriting and syndications; U.S./Canadian cross-border funding; securities underwriting and placements; leasing and tax equity financing; and commodities, interest rate, and foreign exchange risk management.
For more information, visit: www.mufgamericas.com/oil-gas.
About Wells Fargo & Company
Wells Fargo & Company is a nationwide, diversified, community-based financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
The Energy Banking Group, headed by Bart Schouest, provides corporate banking products and services to the energy sector, including upstream, midstream, oilfield services, and diversified industries. With offices in Houston, Dallas, Denver, Calgary, and Aberdeen the group's success is driven by in-depth industry expertise and longstanding relationships with key industry participants. The group has over $45 billion of credit commitments to public and private companies across the upstream, midstream, downstream, services, and power and utilities sectors.
The Energy & Power Investment Banking Group, headed by James Kipp, provides strategic advisory and corporate finance expertise to energy and power clients, including upstream, midstream, oilfield services, downstream, coal and the power & utilities sectors. Areas of focus include equity, equity-linked and debt underwritings, private placements, syndications, and mergers and acquisitions. The Energy & Power Investment Banking Group has offices in Houston and Charlotte.
These teams work together to offer clients industry and product expertise, in addition to sharing their understanding of internal and external forces that drive both industry trends and financial markets. For additional information, contact us at 713-319-1350 or Energy@wellsfargo.com.
To learn more about Wells Fargo & Company, please visit the company's web site at www.wellsfargo.com.
About SMBC
Sumitomo Mitsui Banking Corporation (SMBC) is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest 25 banks globally by assets under management.
SMBC Americas Division, with more than 2,500 employees, oversees operations in the U.S., Canada, Mexico, and South America. We work across SMFG to offer corporate and institutional clients sophisticated and comprehensive financial services around the globe.
SMBC's roots in Japan trace back more than 400 years to 1590. The Americas Division of SMBC has more than a century of experience in the United States, beginning when the San Francisco branch of Sumitomo Bank was established in 1919. Sumitomo Mitsui Financial Group (NYSE: SMFG) was listed on the New York Stock Exchange in 2010.
For more information please visit the corporate website: www.smbcgroup.com/americas/group-companies/
CONTACT: 303-296-8834
View original content:http://www.prnewswire.com/news-releases/enercom-announces-presenting-companies-for-the-oil--gas-conference-23-300669633.html
SOURCE EnerCom, Inc.
DENVER, June 13, 2018 /PRNewswire/ -- EnerCom, Inc. is pleased to update the list of oil and gas companies and energy sector experts who will be presenters at the 23rd annual edition of The Oil & Gas Conference®, coming August 19-22, 2018, to the Westin Denver Downtown.
Public and Private Company Presenters: The 2018 edition of EnerCom's The Oil & Gas Conference® will feature public and private oil and gas companies with operations spanning 40 countries and six continents, including all U.S. shale basins, the Gulf of Mexico, Canada, Latin America and Africa. A work-in-progress list of the 2018 presenting companies will be posted and updated on the conference website.
The EnerCom Denver 2018 presenting companies include but are not limited to:
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2017, EnerCom managed more than 2,100 one-on-one meeting requests.
How to Register: Investment professionals and oil and gas companies can register for the event through the conference website.
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; RS Energy Group; Moss Adams; and Preng & Associates. Sponsors of The Oil & Gas Conference® 23 are Bank of America Merrill Lynch; AssuredPartners; DNB Bank ASA; Fifth Third Bank; CIBC; Haynes and Boone; Credit Agricole CIB; Natixis; PJ SOLOMON; PNC Financial Services Group; Wells Fargo; MUFG; and SMBC.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized oil and gas-focused investor relations consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor communications, media relations and providing visual communications design.
EnerCom offers services and produces and publishes numerous data products and external communications tools for public and private energy companies including:
EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
Headquartered in Denver, with senior consultants in Dallas and Houston, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 19-22, 2018
EnerCom Dallas – Feb. 27-28, 2019
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About RS Energy Group
RS Energy Group (RSEG) provides data-driven intelligence: evaluate assets, weigh valuable M&A opportunities and benchmark your business for more precise decision-making.
RSEG officially released its data solution in April 2017. RS Data™ provides clients with corrected, multi-sourced permit, completion and production data of unparalleled completeness and quality.
Today, RSEG's intelligence covers more than 150 companies operating in every key North American and many international energy plays with a powerful combination of practical insights at the asset level and a long-standing participation in capital markets. RSEG's independent, unbiased and accurate analysis forms a foundation of trust with its clients. Its collaborative approach, both internally and as an extension of its clients' research efforts, promotes innovation and fosters intimate, long term partnerships.
RS Energy Group (RSEG) is headquartered in Calgary, Alberta, with strategic locations in Houston, New York City, Philadelphia, San Francisco and Los Angeles. Contact RS Energy Group by phone at (403) 294-9111, or email info@rseg.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group.
With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home.
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About AssuredPartners
AssuredPartners Colorado (AP CO) combines 30+ years of experience with leading-edge products to provide exceptional service and value to our customers. We provide a full range of brokerage services including employee benefits, property and casualty, and retirement. Headquartered in Colorado, we think globally but act locally, with personal services designed specifically for each individual client. AP CO utilizes resources with national networks of brokers to ensure we can meet your every need and find answers to your questions quickly and efficiently.
Our goal is to achieve a long-term relationship focused on bringing value to your employee benefits management and insurance programs. We are committed to utilizing our collective talent to support your insurance goals. We work to identify activities that drive claim frequency, and implement an action plan to control health care costs and promote a healthy work environment for your employees.
Securing the best insurance package for your business begins with planning. Analyzing all your risks is critical to successful implementation of your insurance plan. AP CO will partner with you by providing ongoing assistance, consultation and service that will help you control your insurance expenses, choose the best plan to fit your company's needs and promote health care consumerism.
For more information on Assured Partners, please visit the website, call (800) 322-9773 or email info@assuredptrco.com.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy, and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Fifth Third Bancorp
Fifth Third Bank is a diversified financial services company with over $120 billion in assets. The Bank's energy group is comprised of experienced and knowledgeable individuals that can assist in providing and structuring financial solutions to meet their clients' needs across the upstream, midstream, downstream and services sectors. Solutions and capabilities include commodity hedging, interest rate management, foreign exchange, debt capital markets, treasury management, and depository/investment products.
For more information, please contact Richard Butler at 713-401-6101 or richard.butler@53.com.
About CIBC
CIBC is a leading North American bank headquartered in Canada and with offices around the world. CIBC was originally founded nearly 150 years ago, and has supported and financed the energy industry for many decades. CIBC was recently ranked as the strongest publicly traded bank in North America by Bloomberg, and is rated A+/Aa3 by S&P and Moody's, respectively.
Our energy specialists draw on the breadth of CIBC's capabilities to provide market insights and creative solutions for our clients. Services include corporate banking, commodity and interest rate hedging and strategy, A&D advisory, and capital markets.
CIBC is publicly traded on the NYSE and Toronto Stock Exchange under the symbol "CM" and has a market cap of $36 billion and nearly $400 billion in total assets. For more information, please visit the CIBC energy website.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
The Bank provides support to clients in large international markets through its network, with a presence in major countries in Europe, the Americas, Asia and the Middle East.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
About Natixis
Natixis is the international corporate and investment banking, asset management, insurance and financial services arm of Groupe BPCE, the second-largest banking group in France.
Natixis Corporate & Investment Banking advises and assists corporations, financial institutions, institutional investors, financial sponsors, public-sector organizations and the networks of Groupe BPCE.
We furnish a diversified array of financing solutions, provide access to capital markets and transaction banking services.
Areas of expertise include Advisory: M&A, primary equity, capital & rating advisory; Financing: vanilla and structured; Capital Markets: equities, fixed income, credit, forex and commodities; Global Transaction Banking: trade finance, cash management, liquidity management and correspondent banking; Research: economic, credit, equity and quantitative.
The Bank leverages the expertise and highly technical skills of its teams, and provides industry-recognized research to build innovative and mix-and-matchable solutions. Corporate and Investment Banking is present on the main financial markets via three international platforms: Americas, Asia-Pacific, and EMEA (Europe, Middle East, Africa).
About PJ SOLOMON
PJ SOLOMON is an investment banking advisory firm that provides strategic advisory services to chief executive officers and senior management, owners of public and private companies, boards of directors, and special committees.
Our full suite of advisory services includes Mergers and Acquisitions, Restructuring and Capital Markets across a range of industry verticals.
The PJ SOLOMON Energy Advisory Group provides strategic investment banking advisory services to public and private clients across the energy chain. Drawing upon our extensive sector relationships and deep strategic and operational expertise, we can offer a unique and valued advisory platform for the upstream, upstream A&D, midstream and the utility sectors.
Based in our Houston office, the PJ SOLOMON Energy team holds more than 100 years of experience on a broad range of domestic and cross-border transactions including mergers and acquisitions, A&D, restructurings, bankruptcies, and public and private capital raisings.
Industry sectors/sub-sectors include: Upstream, Upstream A&D, Midstream, Energy related and Utilities.
About PNC Financial Services Group
PNC is one of the largest, best-regarded and best-capitalized financial services companies in the country, with approximately $325 billion in assets and offices in 33 states, Canada and the United Kingdom.
PNC's Energy Group, headed by Tom Byargeon, is a significant capital and service provider to energy companies, with approximately $6.5 billion in commitments to the industry. The Energy office in Houston houses a team with extensive experience and deep relationships across the entire energy supply chain. This group also offers strategic corporate finance advice and delivers PNC's comprehensive set of solutions and capabilities, including commodity and interest rate hedging, debt capital markets, loan syndications, treasury management, asset securitization, equipment finance and institutional investments.
For more information, please contact Tom Byargeon at 713-353-8782 or tom.byargeon@pnc.com. You can also visit www.pnc.com.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) has been a leading provider of banking services to the oil and gas industry in the Americas for more than 30 years, consistently ranking in the Top 10 Lead Arrangers and Top 10 Bond Arrangers in the Thomson Reuters Oil and Gas League Tables.
We support clients across the industry—from regional exploration and production to global diversified services companies—that benefit from our focused approach, strong execution, and customized services. Whether you are looking to expand existing reserves, make an acquisition, or streamline operations, we can support your growth with services, including: underwriting and syndications; U.S./Canadian cross-border funding; securities underwriting and placements; leasing and tax equity financing; and commodities, interest rate, and foreign exchange risk management.
For more information, visit: www.mufgamericas.com/oil-gas.
About Wells Fargo & Company
Wells Fargo & Company is a nationwide, diversified, community-based financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
The Energy Banking Group, headed by Bart Schouest, provides corporate banking products and services to the energy sector, including upstream, midstream, oilfield services, and diversified industries. With offices in Houston, Dallas, Denver, Calgary, and Aberdeen the group's success is driven by in-depth industry expertise and longstanding relationships with key industry participants. The group has over $45 billion of credit commitments to public and private companies across the upstream, midstream, downstream, services, and power and utilities sectors.
The Energy & Power Investment Banking Group, headed by James Kipp, provides strategic advisory and corporate finance expertise to energy and power clients, including upstream, midstream, oilfield services, downstream, coal and the power & utilities sectors. Areas of focus include equity, equity-linked and debt underwritings, private placements, syndications, and mergers and acquisitions. The Energy & Power Investment Banking Group has offices in Houston and Charlotte.
These teams work together to offer clients industry and product expertise, in addition to sharing their understanding of internal and external forces that drive both industry trends and financial markets. For additional information, contact us at 713-319-1350 or Energy@wellsfargo.com.
To learn more about Wells Fargo & Company, please visit the company's web site at www.wellsfargo.com.
About SMBC
Sumitomo Mitsui Banking Corporation (SMBC) is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest 25 banks globally by assets under management.
SMBC Americas Division, with more than 2,500 employees, oversees operations in the U.S., Canada, Mexico, and South America. We work across SMFG to offer corporate and institutional clients sophisticated and comprehensive financial services around the globe.
SMBC's roots in Japan trace back more than 400 years to 1590. The Americas Division of SMBC has more than a century of experience in the United States, beginning when the San Francisco branch of Sumitomo Bank was established in 1919. Sumitomo Mitsui Financial Group (NYSE: SMFG) was listed on the New York Stock Exchange in 2010.
For more information please visit the corporate website: www.smbcgroup.com/americas/group-companies/
View original content:http://www.prnewswire.com/news-releases/enercom-updates-list-of-presenters-for-the-oil--gas-conference-23-300665469.html
SOURCE EnerCom, Inc.
DENVER, June 12, 2018 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") announced today its President and Chief Executive Officer, Jim Kleckner, will present at the JP Morgan 2018 Energy Conference in New York, New York, at 2:00 PM Eastern Time on Monday, June 18, 2018.
The investor presentation used for this event will be available on the Company's website at www.jaggedpeakenergy.com, at or before 9:00 AM Eastern Time on Monday June 18, 2018.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-to-present-at-upcoming-investor-conference-300665265.html
SOURCE Jagged Peak Energy Inc.
DENVER, June 5, 2018 /PRNewswire/ -- EnerCom, Inc. is pleased to update the list of presenting oil and gas companies for the 23rd annual edition of The Oil & Gas Conference®, coming August 19-22, 2018, at the Westin Denver Downtown. Investment and oil and gas professionals may register for the event now through the conference website.
Conference Details: The Oil & Gas Conference® 23 offers investment professionals the opportunity to listen to senior management teams in the oil and gas industry present operational and financial strategies and learn about important energy topics affecting the global oil and gas industry. The forum fosters healthy dialogue and informal networking opportunities for attendees.
Public and Private Company Presenters: The 2018 edition of EnerCom's The Oil & Gas Conference® will feature public and private oil and gas companies with operations spanning 40 countries and six continents, including all U.S. shale basins, the Gulf of Mexico, Canada, Latin America and Africa. A work-in-progress list of the 2018 presenting companies will be posted and updated on the conference website.
The EnerCom Denver 2018 presenting companies include but are not limited to:
Additional Speakers: Global energy industry leaders, economists, market strategists, government officials and other energy experts will provide their insights on topics such as global commodities markets, the U.S. becoming a net energy exporter, and capital sources for energy development.
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2017, EnerCom managed more than 2,100 one-on-one meeting requests.
How to Register: Investment professionals and oil and gas companies can register for the event through the conference website.
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; RS Energy Group; Moss Adams; and Preng & Associates. Sponsors of The Oil & Gas Conference® 23 are Bank of America Merrill Lynch; AssuredPartners; DNB Bank ASA; Fifth Third Bank; CIBC; Haynes and Boone; Credit Agricole CIB; Natixis; PJ SOLOMON; PNC Financial Services Group; Wells Fargo; MUFG; and SMBC.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized oil and gas-focused investor relations consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor communications, media relations and providing visual communications design.
EnerCom offers services and produces and publishes numerous data products and external communications tools for public and private energy companies including:
EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
Headquartered in Denver, with senior consultants in Dallas and Houston, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 19-22, 2018
EnerCom Dallas – Q1 - 2019
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About RS Energy Group
RS Energy Group (RSEG) provides data-driven intelligence: evaluate assets, weigh valuable M&A opportunities and benchmark your business for more precise decision-making.
RSEG officially released its data solution in April 2017. RS Data™ provides clients with corrected, multi-sourced permit, completion and production data of unparalleled completeness and quality.
Today, RSEG's intelligence covers more than 150 companies operating in every key North American and many international energy plays with a powerful combination of practical insights at the asset level and a long-standing participation in capital markets. RSEG's independent, unbiased and accurate analysis forms a foundation of trust with its clients. Its collaborative approach, both internally and as an extension of its clients' research efforts, promotes innovation and fosters intimate, long term partnerships.
RS Energy Group (RSEG) is headquartered in Calgary, Alberta, with strategic locations in Houston, New York City, Philadelphia, San Francisco and Los Angeles. Contact RS Energy Group by phone at (403) 294-9111, or email info@rseg.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group.
With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home .
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About AssuredPartners
AssuredPartners Colorado (AP CO) combines 30+ years of experience with leading-edge products to provide exceptional service and value to our customers. We provide a full range of brokerage services including employee benefits, property and casualty, and retirement. Headquartered in Colorado, we think globally but act locally, with personal services designed specifically for each individual client. AP CO utilizes resources with national networks of brokers to ensure we can meet your every need and find answers to your questions quickly and efficiently.
Our goal is to achieve a long-term relationship focused on bringing value to your employee benefits management and insurance programs. We are committed to utilizing our collective talent to support your insurance goals. We work to identify activities that drive claim frequency, and implement an action plan to control health care costs and promote a healthy work environment for your employees.
Securing the best insurance package for your business begins with planning. Analyzing all your risks is critical to successful implementation of your insurance plan. AP CO will partner with you by providing ongoing assistance, consultation and service that will help you control your insurance expenses, choose the best plan to fit your company's needs and promote health care consumerism.
For more information on Assured Partners, please visit the website, call (800) 322-9773 or email info@assuredptrco.com.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy, and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Fifth Third Bancorp
Fifth Third Bank is a diversified financial services company with over $120 billion in assets. The Bank's energy group is comprised of experienced and knowledgeable individuals that can assist in providing and structuring financial solutions to meet their clients' needs across the upstream, midstream, downstream and services sectors. Solutions and capabilities include commodity hedging, interest rate management, foreign exchange, debt capital markets, treasury management, and depository/investment products.
For more information, please contact Richard Butler at 713-401-6101 or richard.butler@53.com.
About CIBC
CIBC is a leading North American bank headquartered in Canada and with offices around the world. CIBC was originally founded nearly 150 years ago, and has supported and financed the energy industry for many decades. CIBC was recently ranked as the strongest publicly traded bank in North America by Bloomberg, and is rated A+/Aa3 by S&P and Moody's, respectively.
Our energy specialists draw on the breadth of CIBC's capabilities to provide market insights and creative solutions for our clients. Services include corporate banking, commodity and interest rate hedging and strategy, A&D advisory, and capital markets.
CIBC is publicly traded on the NYSE and Toronto Stock Exchange under the symbol "CM" and has a market cap of $36 billion and nearly $400 billion in total assets. For more information, please visit the CIBC energy website.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
The Bank provides support to clients in large international markets through its network, with a presence in major countries in Europe, the Americas, Asia and the Middle East.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
About Natixis
Natixis is the international corporate and investment banking, asset management, insurance and financial services arm of Groupe BPCE, the second-largest banking group in France.
Natixis Corporate & Investment Banking advises and assists corporations, financial institutions, institutional investors, financial sponsors, public-sector organizations and the networks of Groupe BPCE.
We furnish a diversified array of financing solutions, provide access to capital markets and transaction banking services.
Areas of expertise include Advisory: M&A, primary equity, capital & rating advisory; Financing: vanilla and structured; Capital Markets: equities, fixed income, credit, forex and commodities; Global Transaction Banking: trade finance, cash management, liquidity management and correspondent banking; Research: economic, credit, equity and quantitative.
The Bank leverages the expertise and highly technical skills of its teams, and provides industry-recognized research to build innovative and mix-and-matchable solutions. Corporate and Investment Banking is present on the main financial markets via three international platforms: Americas, Asia-Pacific, and EMEA (Europe, Middle East, Africa).
About PJ SOLOMON
PJ SOLOMON is an investment banking advisory firm that provides strategic advisory services to chief executive officers and senior management, owners of public and private companies, boards of directors, and special committees.
Our full suite of advisory services includes Mergers and Acquisitions, Restructuring and Capital Markets across a range of industry verticals.
The PJ SOLOMON Energy Advisory Group provides strategic investment banking advisory services to public and private clients across the energy chain. Drawing upon our extensive sector relationships and deep strategic and operational expertise, we can offer a unique and valued advisory platform for the upstream, upstream A&D, midstream and the utility sectors.
Based in our Houston office, the PJ SOLOMON Energy team holds more than 100 years of experience on a broad range of domestic and cross-border transactions including mergers and acquisitions, A&D, restructurings, bankruptcies, and public and private capital raisings.
Industry sectors/sub-sectors include: Upstream, Upstream A&D, Midstream, Energy related and Utilities.
About PNC Financial Services Group
PNC is one of the largest, best-regarded and best-capitalized financial services companies in the country, with approximately $325 billion in assets and offices in 33 states, Canada and the United Kingdom.
PNC's Energy Group, headed by Tom Byargeon, is a significant capital and service provider to energy companies, with approximately $6.5 billion in commitments to the industry. The Energy office in Houston houses a team with extensive experience and deep relationships across the entire energy supply chain. This group also offers strategic corporate finance advice and delivers PNC's comprehensive set of solutions and capabilities, including commodity and interest rate hedging, debt capital markets, loan syndications, treasury management, asset securitization, equipment finance and institutional investments.
For more information, please contact Tom Byargeon at 713-353-8782 or tom.byargeon@pnc.com. You can also visit www.pnc.com.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) has been a leading provider of banking services to the oil and gas industry in the Americas for more than 30 years, consistently ranking in the Top 10 Lead Arrangers and Top 10 Bond Arrangers in the Thomson Reuters Oil and Gas League Tables.
We support clients across the industry—from regional exploration and production to global diversified services companies—that benefit from our focused approach, strong execution, and customized services. Whether you are looking to expand existing reserves, make an acquisition, or streamline operations, we can support your growth with services, including: underwriting and syndications; U.S./Canadian cross-border funding; securities underwriting and placements; leasing and tax equity financing; and commodities, interest rate, and foreign exchange risk management.
For more information, visit: www.mufgamericas.com/oil-gas.
About Wells Fargo & Company
Wells Fargo & Company is a nationwide, diversified, community-based financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
The Energy Banking Group, headed by Bart Schouest, provides corporate banking products and services to the energy sector, including upstream, midstream, oilfield services, and diversified industries. With offices in Houston, Dallas, Denver, Calgary, and Aberdeen the group's success is driven by in-depth industry expertise and longstanding relationships with key industry participants. The group has over $45 billion of credit commitments to public and private companies across the upstream, midstream, downstream, services, and power and utilities sectors.
The Energy & Power Investment Banking Group, headed by James Kipp, provides strategic advisory and corporate finance expertise to energy and power clients, including upstream, midstream, oilfield services, downstream, coal and the power & utilities sectors. Areas of focus include equity, equity-linked and debt underwritings, private placements, syndications, and mergers and acquisitions. The Energy & Power Investment Banking Group has offices in Houston and Charlotte.
These teams work together to offer clients industry and product expertise, in addition to sharing their understanding of internal and external forces that drive both industry trends and financial markets. For additional information, contact us at 713-319-1350 or Energy@wellsfargo.com.
To learn more about Wells Fargo & Company, please visit the company's web site at www.wellsfargo.com.
About SMBC
Sumitomo Mitsui Banking Corporation (SMBC) is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest 25 banks globally by assets under management.
SMBC Americas Division, with more than 2,500 employees, oversees operations in the U.S., Canada, Mexico, and South America. We work across SMFG to offer corporate and institutional clients sophisticated and comprehensive financial services around the globe.
SMBC's roots in Japan trace back more than 400 years to 1590. The Americas Division of SMBC has more than a century of experience in the United States, beginning when the San Francisco branch of Sumitomo Bank was established in 1919. Sumitomo Mitsui Financial Group ( NYSE : SMFG ) was listed on the New York Stock Exchange in 2010.
For more information please visit the corporate website: www.smbcgroup.com/americas/group-companies/
View original content:http://www.prnewswire.com/news-releases/north-american-shale-producers-international-operators-join-roster-of-presenting-companies-for-enercoms-the-oil--gas-conference-300659710.html
SOURCE EnerCom, Inc.
DENVER, June 1, 2018 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") announced today its Executive Vice President and Chief Financial Officer, Bob Howard, and other members of management will participate in investor meetings at the 2018 RBC Capital Markets Global Energy and Power Executive Conference in New York, New York on Wednesday, June 6, 2018 and at the Stifel 2018 Cross Sector Insight Conference in Boston, Massachusetts on Wednesday, June 13, 2018.
The investor presentation used for these events will be available on the Company's website at www.jaggedpeakenergy.com.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-to-participate-at-investor-conferences-300658239.html
SOURCE Jagged Peak Energy Inc.
DENVER, May 23, 2018 /PRNewswire/ -- EnerCom, Inc. is pleased to update the list of presenting oil and gas companies for the 23rd annual edition of its popular The Oil & Gas Conference®, coming this August to Denver, Colo.
This year's oil and gas investment conference will be held August 19-22, 2018, at the Westin Denver Downtown. Investment and oil and gas professionals may register for the event through the conference website.
Conference Details: The Oil & Gas Conference® 23 offers investment professionals the opportunity to listen to senior management teams in the oil and gas industry present operational and financial strategies and learn about important energy topics affecting the global oil and gas industry. The forum fosters healthy dialogue and informal networking opportunities for attendees.
Public and Private Company Presenters: The 2018 edition of EnerCom's The Oil & Gas Conference® will feature public and private oil and gas companies with operations spanning 40 countries and six continents, including all U.S. shale basins, the Gulf of Mexico, Canada, Latin America and Africa. A work-in-progress list of the 2018 presenting companies will be posted and updated on the conference website.
The EnerCom Denver 2018 presenting companies include but are not limited to:
Additional Speakers: Global energy industry leaders, economists, market strategists, government officials and other energy experts will provide their insights on topics such as global commodities markets, the U.S. becoming a net energy exporter, and capital sources for energy development.
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2017, EnerCom managed more than 2,100 one-on-one meeting requests.
How to Register: Investment professionals and oil and gas companies can register for the event through the conference website.
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; RS Energy Group; Moss Adams; and Preng & Associates. Sponsors of The Oil & Gas Conference® 23 are Bank of America Merrill Lynch; AssuredPartners; DNB Bank ASA; Fifth Third Bank; CIBC; Haynes and Boone; Credit Agricole CIB; Natixis; PJ SOLOMON; PNC Financial Services Group; Wells Fargo; MUFG; and SMBC.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized oil and gas-focused investor relations consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor communications, media relations and providing visual communications design.
EnerCom offers services and produces and publishes numerous data products and external communications tools for public and private energy companies including:
EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
Headquartered in Denver, with senior consultants in Dallas and Houston, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 19-22, 2018
EnerCom Dallas – Q1 - 2019
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About RS Energy Group
RS Energy Group (RSEG) provides data-driven intelligence: evaluate assets, weigh valuable M&A opportunities and benchmark your business for more precise decision-making.
RSEG officially released its data solution in April 2017. RS Data™ provides clients with corrected, multi-sourced permit, completion and production data of unparalleled completeness and quality.
Today, RSEG's intelligence covers more than 150 companies operating in every key North American and many international energy plays with a powerful combination of practical insights at the asset level and a long-standing participation in capital markets. RSEG's independent, unbiased and accurate analysis forms a foundation of trust with its clients. Its collaborative approach, both internally and as an extension of its clients' research efforts, promotes innovation and fosters intimate, long term partnerships.
RS Energy Group (RSEG) is headquartered in Calgary, Alberta, with strategic locations in Houston, New York City, Philadelphia, San Francisco and Los Angeles. Contact RS Energy Group by phone at (403) 294-9111, or email info@rseg.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group.
With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA
joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home.
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About AssuredPartners
AssuredPartners Colorado (AP CO) combines 30+ years of experience with leading-edge products to provide exceptional service and value to our customers. We provide a full range of brokerage services including employee benefits, property and casualty, and retirement. Headquartered in Colorado, we think globally but act locally, with personal services designed specifically for each individual client. AP CO utilizes resources with national networks of brokers to ensure we can meet your every need and find answers to your questions quickly and efficiently.
Our goal is to achieve a long-term relationship focused on bringing value to your employee benefits management and insurance programs. We are committed to utilizing our collective talent to support your insurance goals. We work to identify activities that drive claim frequency, and implement an action plan to control health care costs and promote a healthy work environment for your employees.
Securing the best insurance package for your business begins with planning. Analyzing all your risks is critical to successful implementation of your insurance plan. AP CO will partner with you by providing ongoing assistance, consultation and service that will help you control your insurance expenses, choose the best plan to fit your company's needs and promote health care consumerism.
For more information on Assured Partners, please visit the website, call (800) 322-9773 or email info@assuredptrco.com.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy, and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Fifth Third Bancorp
Fifth Third Bank is a diversified financial services company with over $120 billion in assets. The Bank's energy group is comprised of experienced and knowledgeable individuals that can assist in providing and structuring financial solutions to meet their clients' needs across the upstream, midstream, downstream and services sectors. Solutions and capabilities include commodity hedging, interest rate management, foreign exchange, debt capital markets, treasury management, and depository/investment products.
For more information, please contact Richard Butler at 713-401-6101 or richard.butler@53.com.
About CIBC
CIBC is a leading North American bank headquartered in Canada and with offices around the world. CIBC was originally founded nearly 150 years ago, and has supported and financed the energy industry for many decades. CIBC was recently ranked as the strongest publicly traded bank in North America by Bloomberg, and is rated A+/Aa3 by S&P and Moody's, respectively.
Our energy specialists draw on the breadth of CIBC's capabilities to provide market insights and creative solutions for our clients. Services include corporate banking, commodity and interest rate hedging and strategy, A&D advisory, and capital markets.
CIBC is publicly traded on the NYSE and Toronto Stock Exchange under the symbol "CM" and has a market cap of $36 billion and nearly $400 billion in total assets. For more information, please visit the CIBC energy website.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
The Bank provides support to clients in large international markets through its network, with a presence in major countries in Europe, the Americas, Asia and the Middle East.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
About Natixis
Natixis is the international corporate and investment banking, asset management, insurance and financial services arm of Groupe BPCE, the second-largest banking group in France.
Natixis Corporate & Investment Banking advises and assists corporations, financial institutions, institutional investors, financial sponsors, public-sector organizations and the networks of Groupe BPCE.
We furnish a diversified array of financing solutions, provide access to capital markets and transaction banking services.
Areas of expertise include Advisory: M&A, primary equity, capital & rating advisory; Financing: vanilla and structured; Capital Markets: equities, fixed income, credit, forex and commodities; Global Transaction Banking: trade finance, cash management, liquidity management and correspondent banking; Research: economic, credit, equity and quantitative.
The Bank leverages the expertise and highly technical skills of its teams, and provides industry-recognized research to build innovative and mix-and-matchable solutions. Corporate and Investment Banking is present on the main financial markets via three international platforms: Americas, Asia-Pacific, and EMEA (Europe, Middle East, Africa).
About PJ SOLOMON
PJ SOLOMON is an investment banking advisory firm that provides strategic advisory services to chief executive officers and senior management, owners of public and private companies, boards of directors, and special committees.
Our full suite of advisory services includes Mergers and Acquisitions, Restructuring and Capital Markets across a range of industry verticals.
The PJ SOLOMON Energy Advisory Group provides strategic investment banking advisory services to public and private clients across the energy chain. Drawing upon our extensive sector relationships and deep strategic and operational expertise, we can offer a unique and valued advisory platform for the upstream, upstream A&D, midstream and the utility sectors.
Based in our Houston office, the PJ SOLOMON Energy team holds more than 100 years of experience on a broad range of domestic and cross-border transactions including mergers and acquisitions, A&D, restructurings, bankruptcies, and public and private capital raisings.
Industry sectors/sub-sectors include: Upstream, Upstream A&D, Midstream, Energy related and Utilities.
About PNC Financial Services Group
PNC is one of the largest, best-regarded and best-capitalized financial services companies in the country, with approximately $325 billion in assets and offices in 33 states, Canada and the United Kingdom.
PNC's Energy Group, headed by Tom Byargeon, is a significant capital and service provider to energy companies, with approximately $6.5 billion in commitments to the industry. The Energy office in Houston houses a team with extensive experience and deep relationships across the entire energy supply chain. This group also offers strategic corporate finance advice and delivers PNC's comprehensive set of solutions and capabilities, including commodity and interest rate hedging, debt capital markets, loan syndications, treasury management, asset securitization, equipment finance and institutional investments.
For more information, please contact Tom Byargeon at 713-353-8782 or tom.byargeon@pnc.com. You can also visit www.pnc.com.
About MUFG
Mitsubishi UFJ Financial Group (MUFG) has been a leading provider of banking services to the oil and gas industry in the Americas for more than 30 years, consistently ranking in the Top 10 Lead Arrangers and Top 10 Bond Arrangers in the Thomson Reuters Oil and Gas League Tables.
We support clients across the industry—from regional exploration and production to global diversified services companies—that benefit from our focused approach, strong execution, and customized services. Whether you are looking to expand existing reserves, make an acquisition, or streamline operations, we can support your growth with services, including: underwriting and syndications; U.S./Canadian cross-border funding; securities underwriting and placements; leasing and tax equity financing; and commodities, interest rate, and foreign exchange risk management.
For more information, visit: www.mufgamericas.com/oil-gas.
About Wells Fargo & Company
Wells Fargo & Company is a nationwide, diversified, community-based financial services company providing banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,700 locations, 12,500 ATMs, and the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy.
The Energy Banking Group, headed by Bart Schouest, provides corporate banking products and services to the energy sector, including upstream, midstream, oilfield services, and diversified industries. With offices in Houston, Dallas, Denver, Calgary, and Aberdeen the group's success is driven by in-depth industry expertise and longstanding relationships with key industry participants. The group has over $45 billion of credit commitments to public and private companies across the upstream, midstream, downstream, services, and power and utilities sectors.
The Energy & Power Investment Banking Group, headed by James Kipp, provides strategic advisory and corporate finance expertise to energy and power clients, including upstream, midstream, oilfield services, downstream, coal and the power & utilities sectors. Areas of focus include equity, equity-linked and debt underwritings, private placements, syndications, and mergers and acquisitions. The Energy & Power Investment Banking Group has offices in Houston and Charlotte.
These teams work together to offer clients industry and product expertise, in addition to sharing their understanding of internal and external forces that drive both industry trends and financial markets. For additional information, contact us at 713-319-1350 or Energy@wellsfargo.com.
To learn more about Wells Fargo & Company, please visit the company's web site at www.wellsfargo.com.
About SMBC
Sumitomo Mitsui Banking Corporation (SMBC) is a core member of Sumitomo Mitsui Financial Group (SMFG), a Tokyo-based bank holding company that is ranked among the largest 25 banks globally by assets under management.
SMBC Americas Division, with more than 2,500 employees, oversees operations in the U.S., Canada, Mexico, and South America. We work across SMFG to offer corporate and institutional clients sophisticated and comprehensive financial services around the globe.
SMBC's roots in Japan trace back more than 400 years to 1590. The Americas Division of SMBC has more than a century of experience in the United States, beginning when the San Francisco branch of Sumitomo Bank was established in 1919. Sumitomo Mitsui Financial Group (NYSE: SMFG) was listed on the New York Stock Exchange in 2010.
For more information please visit the corporate website: www.smbcgroup.com/americas/group-companies/
View original content:http://www.prnewswire.com/news-releases/enercom-adds-presenting-companies-to-its-23rd-annual---the-oil--gas-conference-roster-300653627.html
SOURCE EnerCom, Inc.
DENVER, May 10, 2018 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the first quarter ended March 31, 2018.
First Quarter 2018 Highlights
(1) Adjusted net income (loss), adjusted EBITDAX and adjusted EBITDAX margin are non-GAAP measures. Please reference the reconciliations to the most directly comparable GAAP measures at the end of this release. |
Commenting on the quarterly results, Jim Kleckner, President and Chief Executive Officer of Jagged Peak said, "This was a record quarter for Jagged Peak as we brought online some of our longest lateral lengths to date. Our contiguous acreage position and high operational control allows our team to focus on long lateral development that allows for more efficient use of capital through well-level economies of scale. Further, we realized completion efficiency during the first quarter that was 13% improved over the fourth quarter of 2017. I could not be more proud of the Jagged Peak team for their focus and execution during the quarter."
Looking ahead to the remainder of 2018, Mr. Kleckner continued, "We remain committed to increasing our technical understanding of the reservoir systems by integrating 3D seismic and other data initiatives, and the first quarter represented an elevated activity level relative to the remainder of 2018 as we still plan to manage our activity in coordination with these technical data initiatives. Data acquisition and interpretation is advancing ahead of schedule, with Cochise and Whiskey River data already being integrated into our development planning and workflow. We believe this disciplined approach to development will help us generate improved well results and returns by reducing drilling cycle times, drilling longer laterals and optimizing completions. In 2018, the majority of our activity will be focused in the lower Wolfcamp A formation in Cochise and Whiskey River, and we expect to spud 40 to 45 gross operated wells and place on production 42 to 46 gross operated wells. We forecast this activity level to result in total average production of 28,000 to 31,000 Boe/d for 2018. We remain confident that our planned 2018 activity level properly balances the long-term development of our assets with a focus on generating attractive corporate-level returns, while maintaining financial discipline and a conservative leverage profile."
"Addressing the current and anticipated midstream tightness within the Permian Basin, we have 60,000 Bo/d of committed capacity on the Oryx system providing access to key regional market hubs in Crane and Midland. Further, we have basis hedges in place for approximately 66% of our anticipated 2018 oil production at a differential of less than $1 below Cushing prices. This gives us confidence in our forecasted realized pricing throughout 2018. Looking into 2019, we have 8,000 barrels per day of basis hedges in place at a differential of just over $1 less than Cushing prices. We believe our committed capacity on the Oryx gathering system, existing sales agreements and basis hedges put us in an advantaged position to ensure our barrels flow out of the basin at attractive realized prices."
Operating Update
The Company spud 12 gross operated horizontal wells, placed on production 11 gross operated horizontal wells and participated in 8 gross non-operated horizontal wells that were placed on production during the first quarter. At the end of the quarter, the Company had 8 operated horizontal wells that were in various stages of being completed, of which 6 of these wells were over 70% completed. Including these 8 wells, the Company has placed on production 9 wells so far in the second quarter. Additionally, the Company had 5 wells that were awaiting completion at the end of the quarter, compared to 4 wells at the end of the fourth quarter of 2017.
The Company has experienced several noteworthy operational improvements since the end of 2017. Completion efficiency has improved quarter-over-quarter with the first quarter of 2018 averaging 2.6 stages per crew per day, an increase of 13% compared to the fourth quarter of 2017. These efficiency improvements have continued into the second quarter, with quarter to date completion efficiency averaging 3.1 stages per crew per day. Additionally, the Company placed on production 11 gross operated wells with an average lateral length of approximately 9,300' -- a record at Jagged Peak for average lateral length completed in a quarter.
The Company has licensed state-of-the-art, high-quality 3D seismic covering its Cochise project area. Initial results have successfully identified high quality shale targets and assisted in geosteering laterals. The Company is participating in a 3D seismic survey over its Whiskey River project area. The acquisition phase was completed during March 2018, and early outputs from processing have been delivered to the Company well ahead of schedule. Further, seismic acquisition has begun in the Big Tex project area, which will result in processed data being delivered in the second half of 2018. The Company continues to add to its understanding of the reservoir system by collecting additional core, reservoir fluid and pressure data in order to validate and further refine the subsurface model. Together, these efforts are leading to an integrated understanding of optimal reservoir development that will lead to more efficient use of capital.
Financial Results
For the first quarter of 2018, the Company reported a net loss of $39.4 million, or $(0.18) per diluted common share. Net loss for the first quarter of 2017 was $465.9 million. Adjusted EBITDAX (a non-GAAP measure) for the first quarter of 2018 was $85.5 million, an increase of $56.4 million from the first quarter of 2017 and $7.2 million from the fourth quarter of 2017.
For the first quarter of 2018, the Company reported adjusted net income (a non-GAAP measure) of $26.4 million, compared to $10.5 million in the first quarter of 2017. Adjusted net income (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as certain equity-based compensation, non-cash mark-to-market gains or losses on derivatives and impairment expense, further adjusted for any associated changes in estimated income tax expense.
Adjusted EBITDAX and adjusted net income (loss) are non-GAAP measures. Please reference the reconciliations to the most directly comparable GAAP measures at the end of this release.
The Company's average realized sales prices for the first quarter of 2018, including settlement of realized oil hedges and gathering and processing expense ("G&P") where applicable, were $53.52 per barrel of oil, $1.73 per Mcf of natural gas and $22.17 per barrel of natural gas liquids. The total oil equivalent price for the quarter was $45.67 per Boe. Due to the adoption of ASC 606 (Revenue Recognition) as of January 1, 2018, these prices are net of $0.9 million and $1.6 million in G&P related to gas and NGLs, respectively. Excluding G&P and including settlements of realized oil hedges, the first quarter 2018 total oil equivalent price was $46.68 per Boe compared to the first quarter 2017 total equivalent price of $43.30 per Boe and the fourth quarter 2017 total equivalent price of $44.15 per Boe.
On March 21, 2018, the borrowing base and lender commitments under the Company's credit facility were increased from $425.0 million to $540.0 million. Concurrently with the borrowing base redetermination, the pricing structure of the Company's credit facility was reduced by 50 basis points to reflect favorable, current market rates. Permitted hedging levels under the Company's credit facility were increased, providing the Company with the option to hedge a greater percentage of its forecasted production. The Company had an outstanding balance on its credit facility of $265.0 million as of March 31, 2018, and, as of May 4, 2018, the Company had $320 million of outstanding borrowings against its credit facility.
On May 8, 2018, the Company closed on the private offering of $500 million aggregate principal amount of 5.875% senior unsecured notes due 2026. Net proceeds from the offering were approximately $489.0 million and were used to repay borrowings under the revolving credit facility. The remaining proceeds will be used to fund the Company's development program and for general corporate purposes. Upon the closing of the offering, the Company's borrowing base under its revolving credit facility is $540.0 million and the aggregate elected commitments are $475.0 million. Adjusted for the offering, the Company had no outstanding borrowings on its revolving credit facility, $227.2 million of cash and over $700.0 million of liquidity as of March 31, 2018.
Capital Expenditures
Capital expenditures for drilling and completion activities were $207.6 million for the three months ended March 31, 2018, which represents capital spent to drill and complete 19 gross (13.4 net) wells, of which 11 gross (10.0 net) wells were drilled and completed by Jagged Peak. Additionally, a portion of the capital spent during the first quarter relates to 17 gross (16.9 net) operated wells that were in various stages of being drilled or completed at March 31, 2018. Adding in capital expenditures for infrastructure of $3.7 million and leasehold acquisition costs of $7.5 million, total capital expenditures for the quarter were $218.9 million. The Company's leasehold acquisition costs added approximately 2,500 acres to its leasehold position during the quarter, increasing the Company's leasehold position to approximately 77,700 net acres as of March 31, 2018.
Three Months Ended March 31, | |||||||
2018 |
2017 | ||||||
(in thousands) | |||||||
Capital Expenditures for Oil and Gas Activities |
|||||||
Acquisitions |
|||||||
Proved properties |
$ |
— |
$ |
— |
|||
Unproved properties |
7,518 |
22,810 |
|||||
Drilling & completion costs |
207,615 |
91,281 |
|||||
Infrastructure costs |
3,742 |
8,371 |
|||||
Exploration costs |
— |
6 |
|||||
Total oil and gas capital expenditures |
$ |
218,875 |
$ |
122,468 |
2018 Operating Guidance
Jagged Peak's 2018 activity level seeks to balance the optimal long-term development of its assets while continuing to grow its production and cash flow and maintaining a strong balance sheet. The 2018 activity level will allow the Company to complete acquisition and interpretation of 3D seismic data and other data initiatives that will help to guide the Company as it optimizes the development of its substantial leasehold position and continues to efficiently deploy capital. In 2018, the Company plans to spud 40 to 45 gross operated wells and place on production 42 to 46 gross operated wells. These wells will predominantly target the lower Wolfcamp A in the Company's Cochise and Whiskey River project areas.
The Company is reaffirming the following guidance for its full year 2018 activities:
The Company expects second quarter 2018 production to range from 31,000 to 32,000 Boe/d, an increase of 14% at the mid-point compared to first quarter 2018 production. Oil production in the second quarter is expected to range from 24,500 to 25,500 Bo/d.
Conference Call
Jagged Peak will host a conference call and webcast to discuss its first quarter 2018 financial and operating results on Friday, May 11, 2018 at 9:00 am MDT (11:00 am EDT). The call will be webcast and accessible via the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6837 ten minutes before the scheduled start time (international callers, dial 1-631-891-4304). A telephone replay will be available from 12:00 noon MDT (2:00 pm EDT) on Friday, May 11, 2018 through Friday, June 1, 2018 at 10:00 pm MDT (12:00 midnight EDT). To access the replay, dial 1-844-512-2921 (international callers dial, 1-412-317-6671) and enter confirmation code 10004704. A live broadcast of the earnings conference call will also be available via the Company's website at www.jaggedpeakenergy.com under the "Investor Relations" section of the site. A replay will also be available on the website approximately two hours after the conference call. The presentation material for this conference call will also be available on the Company's website.
Upcoming Investor Events
Executive Vice President and Chief Financial Officer, Bob Howard, and Vice President, Finance and Corporate Planning, Ian Piper, will be participating in the Citi Global Energy & Utilities Conference on May 15, 2018. The presentation used for this event will be available on the Company's website at www.jaggedpeakenergy.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions), will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, guidance estimates including all statements under the heading "2018 Operating Guidance"; planned 3D seismic program and its ultimate impact on well performance; adequacy of takeaway capacity; expected capital expenditures; drilling, completion and development expectations; and expected production. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2017 Annual Report on Form 10-K and in "Item 8.01, Other Events" of Jagged Peak's Current Report on Form 8-K filed with the Securities and Exchange Commission on April 23, 2018, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, equity-based compensation expense, income taxes and net gains or losses on derivatives less net cash from derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows investors to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a performance measure used by management to evaluate financial performance, prior to non-cash market-to-market gains or losses on derivatives, impairment expense, exploratory dry hole costs, gain or loss on the sale of property, certain one-time items, such as certain equity-based compensation and the associated changes in estimated income tax. Management believes adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
Adjusted EBITDAX Margin
Adjusted EBITDAX margin is a performance measure used by management to evaluate financial performance and profitability. The Company defines adjusted EBITDAX margin as the relevant period's adjusted EBITDAX divided by the total oil equivalent production for that same period.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Jagged Peak Energy Inc. | |||||||
Selected Operating Highlights | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2018 |
2017 | ||||||
Production volumes: |
|||||||
Oil (MBbls) |
1,967 |
745 |
|||||
Natural gas (MMcf) |
1,666 |
370 |
|||||
NGLs (MBbls) |
239 |
74 |
|||||
Total (MBoe) |
2,484 |
881 |
|||||
Average daily production volumes: |
|||||||
Oil (Bbls/d) |
21,850 |
8,281 |
|||||
Natural gas (Mcf/d) |
18,510 |
4,109 |
|||||
NGLs (Bbls/d) |
2,660 |
819 |
|||||
Total (Boe/d) |
27,596 |
9,785 |
|||||
Average Sales Prices (excluding realized hedge settlements and including G&P Deduction) :(1) | |||||||
Oil (per Bbl) |
$ |
61.39 |
$ |
49.33 |
|||
Natural gas (per Mcf) |
$ |
1.73 |
$ |
2.48 |
|||
NGLs (per Bbl) |
$ |
22.17 |
$ |
20.61 |
|||
Combined (per Boe) |
$ |
51.90 |
$ |
44.52 |
|||
Average Sales Prices (including realized hedge settlements and G&P Deduction) :(1) | |||||||
Oil (per Bbl) |
$ |
53.52 |
$ |
47.89 |
|||
Natural gas (per Mcf) |
$ |
1.73 |
$ |
2.48 |
|||
NGLs (per Bbl) |
$ |
22.17 |
$ |
20.61 |
|||
Combined (per Boe) |
$ |
45.67 |
$ |
43.30 |
|||
Average Operating Costs (per Boe): |
|||||||
Lease operating expenses |
$ |
3.91 |
$ |
1.83 |
|||
Gathering and processing expenses (1) |
$ |
— |
$ |
0.45 |
|||
Production and ad valorem tax expenses |
$ |
3.09 |
$ |
3.00 |
|||
Depletion, depreciation, amortization and accretion |
$ |
19.31 |
$ |
15.97 |
|||
General and administrative expense (before equity-based compensation expense) |
$ |
4.28 |
$ |
5.21 |
(1) Due to the adoption of ASC 606 (Revenue Recognition) as of January 1, 2018, the average sales prices for 2018 include gathering and processing expenses ("G&P") of $0.54 per Mcf of natural gas and $6.74 per Bbl of NGLs. This standard affects comparability between 2017 and 2018 for revenues, average sales prices and G&P expenses but does not impact net income. |
Jagged Peak Energy Inc. | ||||||||
Condensed Consolidated and Combined Balance Sheets | ||||||||
(Unaudited) | ||||||||
March 31, 2018 |
December 31, 2017 | |||||||
(in thousands) | ||||||||
Assets: |
||||||||
Cash and cash equivalents |
$ |
3,205 |
$ |
9,523 |
||||
Other current assets |
72,419 |
51,540 |
||||||
Property and equipment, net |
1,209,851 |
1,038,947 |
||||||
Other noncurrent assets |
6,455 |
3,418 |
||||||
Total assets |
$ |
1,291,930 |
$ |
1,103,428 |
||||
Liabilities and Stockholders' Equity: |
||||||||
Current liabilities |
$ |
207,755 |
$ |
174,475 |
||||
Long-term debt |
265,000 |
155,000 |
||||||
Deferred income taxes |
67,587 |
57,943 |
||||||
Other long-term liabilities |
16,168 |
16,665 |
||||||
Stockholders' equity |
735,420 |
699,345 |
||||||
Total liabilities and stockholders' equity |
$ |
1,291,930 |
$ |
1,103,428 |
Jagged Peak Energy Inc. | |||||||
Condensed Consolidated and Combined Statements of Operations | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2018 |
2017 | ||||||
(in thousands, except per share amounts) | |||||||
Revenues |
|||||||
Oil, natural gas and NGL sales |
$ |
128,906 |
$ |
39,200 |
|||
Other operating revenues |
147 |
188 |
|||||
Total revenues |
129,053 |
39,388 |
|||||
Operating Expenses |
|||||||
Lease operating expenses |
9,720 |
1,610 |
|||||
Gathering and processing expenses |
— |
392 |
|||||
Production and ad valorem taxes |
7,674 |
2,640 |
|||||
Exploration |
— |
6 |
|||||
Depletion, depreciation, amortization and accretion |
47,977 |
14,062 |
|||||
Impairment of unproved oil and natural gas properties |
53 |
7 |
|||||
Other operating expenses |
22 |
135 |
|||||
General and administrative (before equity-based compensation) |
10,639 |
4,587 |
|||||
General and administrative, equity-based compensation |
75,678 |
408,964 |
|||||
Total operating expenses |
151,763 |
432,403 |
|||||
Income (Loss) from Operations |
(22,710) |
(393,015) |
|||||
Other Income and Expense |
|||||||
Gain (loss) on commodity derivatives |
(4,326) |
17,042 |
|||||
Interest expense and other |
(2,723) |
(540) |
|||||
Total other income (loss) |
(7,049) |
16,502 |
|||||
Income (Loss) before Income Taxes |
(29,759) |
(376,513) |
|||||
Income tax expense (benefit) |
9,644 |
89,368 |
|||||
Net Income (Loss) |
$ |
(39,403) |
$ |
(465,881) |
|||
Net Income (Loss) attributable to Jagged Peak Energy LLC (predecessor) |
$ |
— |
$ |
(375,476) |
|||
Net Income (Loss) attributable to Jagged Peak Energy Inc. Stockholders |
(39,403) |
(90,405) |
|||||
Net Income (Loss) |
$ |
(39,403) |
$ |
(465,881) |
|||
Net income (loss) attributable to Jagged Peak Energy Inc. Stockholders per common share: |
|||||||
Basic |
$ |
(0.18) |
$ |
(0.42) |
|||
Diluted |
$ |
(0.18) |
$ |
(0.42) |
|||
Weighted-average common shares outstanding: |
|||||||
Basic |
213,003 |
212,938 |
|||||
Diluted |
213,003 |
212,938 |
Jagged Peak Energy Inc. | |||||||
Consolidated and Combined Statements of Cash Flows | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2018 |
2017 | ||||||
(in thousands) | |||||||
Cash Flows from Operating Activities |
|||||||
Net income (loss) |
$ |
(39,403) |
$ |
(465,881) |
|||
Adjustments to reconcile to net cash provided by operating activities: |
|||||||
Depletion, depreciation, amortization and accretion |
47,977 |
14,062 |
|||||
Impairment of unproved oil and natural gas properties |
53 |
7 |
|||||
Amortization of debt issuance costs |
600 |
117 |
|||||
Deferred income taxes |
9,644 |
89,368 |
|||||
Equity-based compensation |
75,678 |
408,964 |
|||||
(Gain) Loss on commodity derivatives |
4,326 |
(17,042) |
|||||
Net cash receipts (payments) on settled derivatives |
(15,479) |
(1,071) |
|||||
Other |
(78) |
(39) |
|||||
Change in operating assets and liabilities: |
|||||||
Accounts receivable and other current assets |
(5,351) |
(6,325) |
|||||
Accounts payable and accrued liabilities |
2,275 |
(459) |
|||||
Net cash provided by operating activities |
80,242 |
21,701 |
|||||
Cash Flows from Investing Activities |
|||||||
Leasehold and acquisitions costs |
(7,585) |
(25,628) |
|||||
Development of oil and natural gas properties |
(185,982) |
(74,293) |
|||||
Other capital expenditures |
(1,270) |
(763) |
|||||
Net cash used in investing activities |
(194,837) |
(100,684) |
|||||
Cash Flows from Financing Activities |
|||||||
Proceeds from issuance of common stock in IPO, net of underwriting fees |
— |
401,625 |
|||||
Proceeds from senior secured revolving credit facility |
110,000 |
10,000 |
|||||
Repayment of senior secured revolving credit facility |
— |
(142,000) |
|||||
Debt issuance costs |
(1,523) |
(1,000) |
|||||
Costs related to initial public offering |
— |
(2,560) |
|||||
Employee tax withholding for settlement of equity compensation awards |
(200) |
— |
|||||
Net cash provided by financing activities |
108,277 |
266,065 |
|||||
Net Change in Cash and Cash Equivalents |
(6,318) |
187,082 |
|||||
Cash and Cash Equivalents, Beginning of Period |
9,523 |
11,727 |
|||||
Cash and Cash Equivalents, End of Period |
$ |
3,205 |
$ |
198,809 |
Jagged Peak Energy Inc. |
|||||||
Commodity Hedges |
|||||||
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. For the remainder of 2018, 16,860 Bbl/d of oil are hedged at an average WTI price of $53.82 per barrel. In addition, for the remainder of 2018, the Company has hedges in place for 15,500 Bbl/d of oil to hedge the price differential between the Cushing and Midland oil prices at an average of $(0.97) per barrel. |
|||||||
As of May 4, 2018, the Company had the following commodity hedges in place for future production: |
|||||||
Production Period |
Volumes |
Weighted Average Price |
|||||
(Bbls) |
($/Bbl) |
||||||
Oil Swaps: |
|||||||
Second Quarter 2018 |
1,412,000 |
$ |
52.69 |
||||
Third Quarter 2018 |
1,619,200 |
$ |
54.17 |
||||
Fourth Quarter 2018 |
1,605,400 |
$ |
54.46 |
||||
Remainder 2018 |
4,636,600 |
$ |
53.82 |
||||
Full Year 2019 |
3,650,000 |
$ |
54.82 |
||||
Oil Basis Swaps: |
|||||||
Remainder 2018 |
4,262,500 |
$ |
(0.97) |
||||
Full Year 2019 |
2,920,000 |
$ |
(1.10) |
Jagged Peak Energy Inc. |
||||||||
Reconciliation of Adjusted Net Income, Adjusted EBITDAX and Adjusted EBITDAX Margin |
||||||||
(Unaudited) |
||||||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2018 |
2017 |
|||||||
(in thousands) |
||||||||
Adjusted Net Income (Loss) |
||||||||
Net income (loss) |
$ |
(39,403) |
$ |
(465,881) |
||||
Adjustments to reconcile to adjusted net income |
||||||||
Impairment of unproved oil and natural gas properties |
53 |
7 |
||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
(11,153) |
(18,113) |
||||||
Equity-based compensation expense related to allocated management incentive units (1) |
74,470 |
408,964 |
||||||
Deferred income tax expense recorded in connection with the Company's initial public offering |
— |
79,106 |
||||||
Income tax effect for the above items |
2,394 |
6,425 |
||||||
Adjusted net income (loss) |
$ |
26,361 |
$ |
10,508 |
||||
Adjusted net income (loss) per basic common share |
$ |
0.12 |
$ |
0.05 |
||||
Adjusted net income (loss) per diluted common share |
$ |
0.12 |
$ |
0.05 |
||||
Basic common shares |
213,003 |
212,938 |
||||||
Diluted common shares |
213,003 |
212,938 |
||||||
Adjusted EBITDAX |
||||||||
Net income (loss) |
$ |
(39,403) |
$ |
(465,881) |
||||
Adjustments to reconcile to adjusted EBITDAX |
||||||||
Interest expense, net of capitalized |
2,731 |
711 |
||||||
Income tax expense (benefit) |
9,644 |
89,368 |
||||||
Depletion, depreciation, amortization and accretion |
47,977 |
14,062 |
||||||
Impairment of unproved oil and natural gas properties |
53 |
7 |
||||||
Exploration expenses |
— |
6 |
||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
(11,153) |
(18,113) |
||||||
Equity-based compensation expense (2) |
75,678 |
408,964 |
||||||
Adjusted EBITDAX |
$ |
85,527 |
$ |
29,124 |
||||
Total production (MBoe) |
2,484 |
881 |
||||||
Adjusted EBITDAX margin (3) |
$ |
34.43 |
$ |
33.06 |
(1) In connection with the IPO, management incentive units were converted to common stock. A portion of this common stock was transferred to JPE Management Holdings LLC and became subject to the terms and conditions of the amended and restated JPE Management Holdings LLC limited liability company agreement (the "Holdco Agreement"). The compensation expense related to these shares has primarily been recognized ratably as they have vested according to the terms of the Holdco Agreement. However, in February 2018, the Company incurred $71.3 million in accelerated compensation expense related to the modification of service requirements. Only compensation expense related to management incentive units allocated at the time of the IPO is excluded from the calculation of adjusted net income. |
(2) Equity-based compensation expense for the first quarter 2018 includes $74.6 million related to management incentive units that converted to common stock in connection with the IPO and $1.1 million related to equity awards issued under the Company's long-term incentive plan. |
(3) Adjusted EBITDAX margin is calculated as Adjusted EBITDAX divided by total production, expressed as adjusted EBITDAX per Boe. |
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-first-quarter-2018-financial-and-operating-results-300646702.html
SOURCE Jagged Peak Energy Inc.
DENVER, April 25, 2018 /PRNewswire/ -- Jagged Peak Energy LLC ("JPE LLC"), a wholly owned subsidiary of Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company"), announced today the pricing of its previously announced private offering (the "Notes Offering") of senior unsecured notes due 2026 (the "2026 Notes"), which was upsized to $500 million in aggregate principal amount from the originally proposed $400 million offering. The 2026 Notes, which priced at par, will mature on May 1, 2026, and will pay interest at an annual rate of 5.875%. The 2026 Notes will be guaranteed on a senior unsecured basis by the Company.
The Notes Offering is expected to close May 8, 2018, subject to customary closing conditions. The Company intends to use the net proceeds of the Notes Offering to repay borrowings under its revolving credit facility and the remaining proceeds for general corporate purposes.
The securities to be offered in the Notes Offering have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. JPE LLC plans to offer and sell the securities only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act.
This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions), will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, the anticipated use of proceeds from the Notes Offering. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2017 Annual Report on Form 10-K, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
About Jagged Peak Energy LLC
Jagged Peak Energy LLC is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-llc-announces-pricing-of-upsized-private-offering-of-500-million-senior-unsecured-notes-due-2026-300636664.html
SOURCE Jagged Peak Energy Inc.
DENVER, April 25, 2018 /PRNewswire/ -- EnerCom, Inc. is pleased to announce it will host the 23rd annual edition of its popular The Oil & Gas Conference® this summer in Denver, Colo.
This year's oil and gas investment conference will be held August 19-22, 2018, at the Westin Denver Downtown. Investment and oil and gas professionals may register for the event through the conference website.
Conference Details: The Oil & Gas Conference® 23 offers investment professionals the opportunity to listen to senior management teams in the oil and gas industry present operational and financial strategies and learn about important energy topics affecting the global oil and gas industry. The forum fosters healthy dialogue and informal networking opportunities for attendees.
Public and Private Company Presenters: The 2018 edition of EnerCom's The Oil & Gas Conference® will feature public and private oil and gas companies with operations spanning 40 countries and six continents, including all of the U.S. shale basins, the Gulf of Mexico, Canada, Latin America and Africa. A work-in-progress list of the 2018 presenting companies will be posted and updated on the conference website.
The 2018 presenting companies include but are not limited to:
Additional Speakers: Global energy industry leaders, economists, market strategists, government officials and other energy experts will provide their insights on topics such as global commodities markets, the U.S. becoming a net energy exporter, and capital sources for energy development.
Who Attends the Conference: More than 2,000 institutional, private equity and hedge fund investors, energy research analysts, retail brokers, trust officers, high net worth investors, investment bankers and energy industry professionals gather in Denver for the conference.
One-on-One Meetings: EnerCom works in advance with presenting company management teams to arrange one-on-one meetings with the attending institutional investors and research analysts at the conference venue. In 2017, EnerCom managed more than 2,100 one-on-one meeting requests.
How to Register: Investment professionals and oil and gas companies can register for the event through the conference website.
EnerCom History and Sponsors: EnerCom, Inc. founded The Oil & Gas Conference® in 1996. It is the oldest and largest energy investment conference in Denver.
Global sponsors of EnerCom's conferences are Netherland, Sewell & Associates; RS Energy Group; Moss Adams; and Preng & Associates. Sponsors of The Oil & Gas Conference® 23 are Bank of America Merrill Lynch; Assured Partners; DNB Bank ASA; Fifth Third Bank; CIBC; Haynes and Boone; and Credit Agricole CIB.
About EnerCom, Inc.
Since 1994 EnerCom, Inc. has developed into a nationally recognized management consultancy advising oil and gas industry clients on corporate strategy, asset valuations, investor relations, media relations, external communications and visual communications design.
EnerCom produces and publishes numerous data products and external communications tools for public energy companies including:
EnerCom's professionals have more than 170 years of industry and business experience and a proven track record of success.
Headquartered in Denver, with senior consultants in Dallas and Houston, EnerCom uses the team approach for delivering its wide range of services to public and private companies, large and small, operating in the global exploration and production, OilService, capital markets, and associated advanced-technology industries.
EnerCom's upcoming oil and gas investment conferences include:
EnerCom Denver (The Oil & Gas Conference®) – August 19-22, 2018
EnerCom Dallas – Q1 - 2019
For more information about EnerCom and its services, please visit http://www.enercominc.com/ or call +1 303-296-8834 to speak with the management team or one of our consultants.
About Netherland, Sewell & Associates, Inc.
Netherland, Sewell & Associates, Inc. (NSAI) was founded in 1961 to provide the highest quality engineering and geological consulting to the petroleum industry. Today they are recognized as the worldwide leader of petroleum property analysis to industry and financial organizations and government agencies. With offices in Dallas and Houston, NSAI provides a complete range of geological, geophysical, petrophysical, and engineering services and has the technical experience and ability to perform these services in any of the onshore and offshore oil and gas producing areas of the world. They provide reserves reports and audits, acquisition and divestiture evaluations, simulation studies, exploration resources assessments, equity determinations, and management and advisory services. For a complete list of services or to learn more about Netherland, Sewell & Associates, Inc. please visit www.netherlandsewell.com.
For more information about NSAI, call C.H. (Scott) Rees, Chief Executive Officer, at 214-969-5401 or send an email to info@nsai-petro.com.
About RS Energy Group
RS Energy Group (RSEG) provides data-driven intelligence: evaluate assets, weigh valuable M&A opportunities and benchmark your business for more precise decision-making.
RSEG officially released its data solution in April 2017. RS Data™ provides clients with corrected, multi-sourced permit, completion and production data of unparalleled completeness and quality.
Today, RSEG's intelligence covers more than 150 companies operating in every key North American and many international energy plays with a powerful combination of practical insights at the asset level and a long-standing participation in capital markets. RSEG's independent, unbiased and accurate analysis forms a foundation of trust with its clients. Its collaborative approach, both internally and as an extension of its clients' research efforts, promotes innovation and fosters intimate, long term partnerships.
RS Energy Group (RSEG) is headquartered in Calgary, Alberta, with strategic locations in Houston, New York City, Philadelphia, San Francisco and Los Angeles. Contact RS Energy Group by phone at (403) 294-9111, or email info@rseg.com.
About Moss Adams LLP
For more than 30 years, Hein & Associates has been recognized throughout the industry as a leading oil and gas accounting and advisory firm. In late 2017, Hein combined with Moss Adams LLP, one of the largest accounting, consulting and wealth management firms in the nation, creating a $600 million middle-market accounting/tax/audit leader in the western U.S. with a strong oil & gas practice group.
With more than 2,900 professionals and staff across more than 25 locations in the West and beyond, Moss Adams works with many of the world's most innovative companies and leaders. Our strength in the middle market enables us to advise clients at all intervals of development—from start-up, to rapid growth and expansion, to transition. Today, we help over 2,300 companies doing business in more than 100 countries and territories.
For more information, please contact Joe Blice, Partner, National Practice Leader, Oil & Gas, CPA joe.blice@mossadams.com, (972) 687-7818.
Moss Adams LLP provides details at https://www.mossadams.com/home .
About Preng & Associates
Preng & Associates, founded in 1980, is the only retainer-based, international executive search firm specializing solely in the energy industry. Its number one priority is to assist clients with their executive selection, organization development, and human resource needs by providing the highest quality service. Preng's record of accomplishment is directly attributable to their experienced staff, worldwide network of industry contacts, proven search methodology, and high standards of professionalism. Preng has conducted over 3000 searches for board, executive, management, and professional positions in its 35-year history and has the highest success and repeat client track record.
Preng's practice is based on the premise that the search process is most effective when conducted by professionals with significant search industry experience. The company has earned a reputation for combining professional search disciplines with an in-depth industry and market understanding and has succeeded in some of the industry's most challenging and high-profile searches. Preng's international reach allows it to effectively conduct global engagements; and as a member of the Association of Executive Search Consultants, Preng practices and promotes its high standards of conduct and professionalism.
For more information about Preng & Associates, contact Charles Carpenter, Partner at 713-243-2610 or ccarpenter@preng.com.
About Bank of America Merrill Lynch
Bank of America Merrill Lynch Oil and Gas Group
The Bank of America Merrill Lynch (BofAML) Oil and Gas practice is comprised of a global team of bankers dedicated to covering the energy industry, dating back to the 1920s when Texas predecessor banks pioneered reserve-based lending. The practice includes an experienced in-house Petroleum Engineering team with over 150 years of combined experience. With one of the only full-service financial energy platforms in the industry, the BofAML oil and gas team manages significant capital commitments in the energy sector with dedicated bankers based in Calgary, Denver, Dallas, Houston, London and New York.
The BofA Merrill Lynch Global Research platform offers clients access to information and actionable ideas on stocks, bonds, economics and investment strategies. With approximately 700 analysts in more than 20 countries, we offer our clients knowledge about economic and business developments that are having an impact on the markets, so that they can work with their financial advisors to make the most of opportunities. BofA Merrill Lynch Global Research was ranked No. 1 for the fourth consecutive year on the 2014 list of Top Global Research Firms, Institutional Investor.
About AssuredPartners
AssuredPartners Colorado (AP CO) combines 30+ years of experience with leading-edge products to provide exceptional service and value to our customers. We provide a full range of brokerage services including employee benefits, property and casualty, and retirement. Headquartered in Colorado, we think globally but act locally, with personal services designed specifically for each individual client. AP CO utilizes resources with national networks of brokers to ensure we can meet your every need and find answers to your questions quickly and efficiently.
Our goal is to achieve a long-term relationship focused on bringing value to your employee benefits management and insurance programs. We are committed to utilizing our collective talent to support your insurance goals. We work to identify activities that drive claim frequency, and implement an action plan to control health care costs and promote a healthy work environment for your employees.
Securing the best insurance package for your business begins with planning. Analyzing all your risks is critical to successful implementation of your insurance plan. AP CO will partner with you by providing ongoing assistance, consultation and service that will help you control your insurance expenses, choose the best plan to fit your company's needs and promote health care consumerism.
For more information on AssuredPartners, please visit the website, call (800) 322-9773 or email info@assuredptrco.com.
About DNB ASA
DNB is Norway's largest financial services provider, with total assets approaching $400 billion. The bank has for years been a major provider of capital to the oil & gas industry, growing up literally side by side with the highly prolific fields developed in the Norwegian Sector of the North Sea. The Oslo Energy Office maintains a global financing strategy, and serves this market through multiple offices around the world including Houston, London and Singapore.
Energy Americas, based in Houston, comprises approximately 20 seasoned energy finance professionals. Aside from facilitating the bank's global business strategies, the office concentrates primarily on serving middle market and larger customers in the four principal oil & gas sectors — upstream, midstream, downstream and service — as well as in Power and Renewables. The bank offers a variety of financial products, from traditional oil & gas reserve financing, to longer-term capital markets transactions and merger/acquisition advisory services through its broker-dealer arm, DNB Markets, Inc. Ancillary service capabilities include cash management/depository services, as well as commodity and interest rate hedging.
For information on DNB's energy services, please visit the DNB energy website.
About Fifth Third Bancorp
Fifth Third Bank is a diversified financial services company with over $120 billion in assets. The Bank's energy group is comprised of experienced and knowledgeable individuals that can assist in providing and structuring financial solutions to meet their clients' needs across the upstream, midstream, downstream and services sectors. Solutions and capabilities include commodity hedging, interest rate management, foreign exchange, debt capital markets, treasury management, and depository/investment products.
For more information, please contact Richard Butler at 713-401-6101 or richard.butler@53.com.
About CIBC
CIBC is a leading North American bank headquartered in Canada and with offices around the world. CIBC was originally founded nearly 150 years ago, and has supported and financed the energy industry for many decades. CIBC was recently ranked as the strongest publicly traded bank in North America by Bloomberg, and is rated A+/Aa3 by S&P and Moody's, respectively.
Our energy specialists draw on the breadth of CIBC's capabilities to provide market insights and creative solutions for our clients. Services include corporate banking, commodity and interest rate hedging and strategy, A&D advisory, and capital markets.
CIBC is publicly traded on the NYSE and Toronto Stock Exchange under the symbol "CM" and has a market cap of $36 billion and nearly $400 billion in total assets. For more information, please visit the CIBC energy website.
About Haynes and Boone
Haynes and Boone, LLP is an energy-focused corporate law firm, providing a full spectrum of legal services to our clients across the oil and gas industry, including the upstream, midstream, and downstream sectors. We serve energy clients from our offices in Texas, Colorado, New York, California, Washington, D.C., London, Mexico City and Shanghai. We work as a team representing U.S. and foreign public and private companies engaged in the dynamic day-to-day work of finding and extracting oil and gas, and the banks, investment funds and other investors that support them.
Our team of more than 100 energy lawyers and landmen understands the U.S. and international physical and financial energy markets, and the firm has been helping operators and lenders complete some of the largest financings and M&A transactions in recent years. With more than 600 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal, and our energy lawyers have been ranked by publications such as Best Lawyers in America, Chambers and Partners and Who's Who in Energy.
For more info, please visit www.haynesboone.com.
About Crédit Agricole Corporate and Investment Bank
Crédit Agricole Corporate and Investment Bank is the corporate and investment banking arm of the Crédit Agricole Group, the world's eighth largest bank by total assets (The Banker, July 2014). Crédit Agricole CIB offers its clients a comprehensive range of products and services in capital markets, brokerage, investment banking, structured finance, corporate banking, and international private banking.
The Bank provides support to clients in large international markets through its network, with a presence in major countries in Europe, the Americas, Asia and the Middle East.
With headquarters in New York City, and U.S. offices in Houston and Chicago, Credit Agricole CIB Americas offers its corporate and institutional clients financial products and services and made-to-order structuring, origination and distribution, through both its banking unit Credit Agricole CIB, and the full-service broker-dealer Credit Agricole Securities (USA) Inc., which is a member of the NYSE and NASD. Credit Agricole CIB is also present in Montreal, Canada, and in Latin America with offices in Argentina, Brazil, and Mexico.
The Energy Industry represents the single largest concentration of industry exposure at Credit Agricole Corporate and Investment Bank, whose specialty focus dates back over 100 years. Our Energy practice for North America, located in Houston, focuses on all segments of the business and covers it on a truly global basis.
For more information, visit www.ca-cib.com.
View original content:http://www.prnewswire.com/news-releases/enercoms-the-oil--gas-conference-coming-to-denver-aug-19-22-2018-300636057.html
SOURCE EnerCom, Inc.
DENVER, April 23, 2018 /PRNewswire/ -- Jagged Peak Energy LLC ("JPE LLC"), a wholly-owned subsidiary of Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company"), announced today that it has commenced, subject to market conditions and other factors, a private offering of $400.0 million in aggregate principal amount of senior unsecured notes due 2026 to eligible purchasers (the "Notes Offering"). The notes will be guaranteed on a senior unsecured basis by Jagged Peak.
The Company intends to use the net proceeds of the Notes Offering to repay borrowings under its revolving credit facility and for general corporate purposes.
The securities to be offered in the Notes Offering have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. JPE LLC plans to offer and sell the securities only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act.
This news release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions), will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, the anticipated use of proceeds from the Notes Offering. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2017 Annual Report on Form 10-K, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
About Jagged Peak Energy LLC
Jagged Peak Energy LLC is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-llc-announces-private-offering-of-400-million-senior-unsecured-notes-due-2026-300634163.html
SOURCE Jagged Peak Energy Inc.
DENVER, March 22, 2018 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the fourth quarter and full year ended December 31, 2017 and its 2018 capital budget as well as associated production and cost guidance. The financial and operating results discussed in this news release include the results for Jagged Peak Energy LLC (the "Predecessor") which became a wholly owned subsidiary of Jagged Peak Energy Inc. as the result of transactions associated with the Company's initial public offering ("IPO") in January 2017.
Fourth Quarter and Full Year 2017 Highlights
2018 Capital Budget and Guidance Highlights
Commenting on 2017 results, Joe Jaggers, Chairman, Chief Executive Officer and President of Jagged Peak said, "2017 was a transformative year for Jagged Peak. We completed our IPO and, through the use of these proceeds, more than quadrupled our activity level based on the number of wells we brought online and more than tripled our total production. We accomplished all of this while maintaining a peer leading adjusted EBITDAX margin and LOE rate, replacing more than 800% of the reserves that we produced and increasing our drilling inventory by over 55% to approximately 2,090 future locations. I am very proud of the Jagged Peak team for the accomplishments from their hard work in 2017. During the fourth quarter, we managed our activity level to make certain operating improvements and to ensure efficient capital investments, which deferred our production growth profile. Following those operational improvements, we are currently deploying five rigs and four completion fleets. As I look towards the future, I know that our incoming President and Chief Executive Officer, Jim Kleckner, will do an outstanding job of taking Jagged Peak to the next level in terms of operating performance and capital efficiency."
Regarding Jagged Peak's 2018 plan, Jim Kleckner, incoming President and Chief Executive Officer commented, "Joe and the Jagged Peak team have done a fantastic job of putting together a world-class asset. Our focus on capital discipline is paramount at Jagged Peak and was instrumental in the 2018 planning process. Our activity level in 2018 will provide the organization with the necessary time to complete the acquisition and interpretation of 3D seismic and other technical data. By completing the interpretation of this data, we will more efficiently deploy capital across our portfolio. In 2018, we expect to spud 40 to 45 gross operated wells and bring 42 to 46 gross operated wells online. We forecast this capital program to increase production by more than 70% over 2017 production. The majority of our activity will be focused in the lower Wolfcamp A formation in Cochise and Whiskey River as our data collection and analysis efforts are further along in these project areas. We forecast this activity level to result in production of 28,000 to 31,000 Boe/d. We are planning for a $50 oil price environment combined with assumed cost inflation of 10% to 15% over 2017. We are confident that this activity level properly balances the long-term development of our assets with a focus on generating attractive corporate-level returns, while maintaining a strong balance sheet with a conservative leverage profile."
Operating Update
The Company spud 14 gross operated horizontal wells and completed 14 gross operated horizontal wells during the fourth quarter. From the beginning of the year through March 21, the Company has brought online 11 gross operated horizontal wells and is in the process of completing six additional gross operated horizontal wells.
The Company has licensed state-of-the-art, high-quality 3D seismic covering the Cochise project area. Initial results have successfully identified high quality shale targets and assisted in geosteering laterals. The Company is participating in a 3D seismic survey over its Whiskey River project area. The acquisition phase was completed during March 2018 and interpreted data is anticipated to be completed by mid-year. Further, seismic permitting work is nearing completion in the Big Tex project area with data acquisition planned to commence in the second quarter of 2018. The Company continues to add to its understanding of the reservoir system by collecting additional core, reservoir fluid data and pressure data in order to validate the petrophysical model. Together, these efforts are leading to an integrated understanding of optimal reservoir development that will lead to more efficient use of capital.
Additionally, the Company's fourth quarter 2017 lease operating expense ("LOE") of $3.25 per Boe and full year LOE of $2.88 per Boe remain peer leading. This top-tier LOE rate is driven by the Company's water infrastructure, which provides for cost-efficient water transportation and disposal.
Notable recent individual well and downspacing test results include the following:
Financial Results
For the fourth quarter 2017, the Company reported net income of $12.8 million. Net loss for the fourth quarter of 2016 was $2.0 million. Adjusted EBITDAX (a non-GAAP measure) for the fourth quarter 2017 was $78.3 million, an increase of $62.3 million from the fourth quarter of 2016 and $21.8 million from the third quarter 2017. For the full year, the Company reported a net loss of $451.9 million. Adjusted EBITDAX (a non-GAAP measure) for the full year was $203.3 million, an increase of over 300% compared to 2016 adjusted EBITDAX.
For the fourth quarter 2017, the Company reported adjusted net income (a non-GAAP measure) of $20.2 million, compared to $3.9 million in fourth quarter 2016. Adjusted net income for the full year was $55.9 million. Adjusted net income (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as equity-based compensation and income tax expense directly related to the IPO, non-cash mark-to-market gains or losses on derivatives, impairment expense and a one-time gain related to the recent federal tax reform legislation, further adjusted for any associated changes in estimated income tax expense.
Adjusted EBITDAX and adjusted net income (loss) are non-GAAP measures. Please reference the reconciliations to the most directly comparable GAAP measures at the end of this release.
The Company's average realized sales prices for the fourth quarter 2017, including settlement of realized oil hedges, were $49.54 per barrel of oil, $2.45 per Mcf of natural gas and $30.96 per barrel of natural gas liquids. The total oil equivalent price for the quarter was $44.15 per Boe compared to the fourth quarter 2016 total equivalent price of $39.74 per Boe and the third quarter 2017 total equivalent price of $41.70 per Boe. Additionally, LOE, including workovers, of $3.25 per Boe was 14% lower than $3.80 per Boe in the fourth quarter of 2016.
The Company's average realized sales prices for the full year, including settlement of realized oil hedges, were $48.04 per barrel of oil, $2.52 per Mcf of natural gas and $25.25 per barrel of natural gas liquids. The total oil equivalent price for the year was $42.58 per Boe compared to the full year 2016 total equivalent price of $35.57 per Boe. Additionally, LOE, including workovers, of $2.88 per Boe was 21% lower than full year 2016 of $3.65 per Boe.
On March 21, 2018, the borrowing base and lender commitments under the Company's credit facility were increased from $425 million to $540 million. Concurrently with the borrowing base redetermination, the pricing structure of the Company's credit facility was reduced by 50 basis points to reflect favorable, current market rates. Permitted hedging levels under the Company's credit facility were increased, providing the Company with the option to hedge a greater percentage of its forecasted production. The Company had an outstanding balance on its credit facility of $155 million as of December 31, 2017. As of March 21, 2018, the Company had $265 million of outstanding borrowings against its credit facility, leaving $275 million of undrawn capacity.
Capital Expenditures
Capital expenditures for drilling and completion activities were $168.5 million for the three months ended December 31, 2017, which represents capital spent to drill and complete 14 gross (13.4 net) wells. All of these wells were drilled and completed by Jagged Peak. Additionally, the Company had 16 gross (15.0 net) wells that were in various stages of being drilled or completed at December 31, 2017. Adding in capital expenditures for infrastructure of $8.1 million and leasehold acquisition costs of $12.7 million, total capital expenditures for the quarter were $189.3 million.
For the full year, the Company spent $567.6 million on drilling and completion activities and $29.9 million on infrastructure. In 2017, the Company spent $1.6 million on the acquisition of surface acreage, which is included in the infrastructure costs incurred during the year. The Company spent $69.1 million to add approximately 9,200 acres to its leasehold position, increasing the Company's leasehold position to approximately 75,200 net acres as of December 31, 2017.
Three Months Ended December 31, |
Twelve Months Ended December 31, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in thousands) | |||||||||||||||
Capital Expenditures for Oil and Gas Activities |
|||||||||||||||
Acquisitions |
|||||||||||||||
Proved properties |
$ |
— |
$ |
— |
$ |
— |
$ |
7,482 |
|||||||
Unproved properties |
12,719 |
15,156 |
69,083 |
47,468 |
|||||||||||
Drilling & completion costs |
168,498 |
62,135 |
567,555 |
144,786 |
|||||||||||
Infrastructure costs |
8,104 |
6,402 |
29,909 |
13,713 |
|||||||||||
Exploration costs |
17 |
10 |
31 |
1,673 |
|||||||||||
Total oil and gas capital expenditures |
$ |
189,338 |
$ |
83,703 |
$ |
666,578 |
$ |
215,122 |
Proved Reserves
Proved oil and gas reserves at December 31, 2017 were estimated at 82.4 MMBoe, an increase of 118% from 37.7 MMBoe at December 31, 2016. The composition of the reserves at the end of 2017 were 79% oil, 10% NGL and 11% natural gas. Proved developed reserves increased 160% to 37.7 MMBoe as of December 31, 2017, representing 46% of total proved reserves.
Jagged Peak's proved reserve estimates as of December 31, 2017 and 2016 were prepared by Ryder Scott Company, L.P. In accordance with the applicable rules of the Securities and Exchange Commission, the reference prices used to determine the reserve quantities and future cash flows were $51.34 per barrel of oil and per barrel of natural gas liquids and $2.98 per MMBtu of natural gas. After considering applicable differentials and pricing adjustments, the realized prices were $48.26 per barrel of oil, $2.59 per Mcf of natural gas and $26.69 per barrel of natural gas liquids.
Oil |
Gas |
NGLs |
Total | ||||||||
Proved Reserves as of December 31, 2016 |
30,406 |
19,519 |
4,036 |
37,695 |
|||||||
Acquisitions of reserves |
— |
— |
— |
— |
|||||||
Extensions, discoveries and other additions |
41,172 |
33,790 |
5,015 |
51,819 |
|||||||
Revisions of previous estimates |
(1,542) |
3,546 |
(8) |
(960) |
|||||||
Sales of reserves |
— |
— |
— |
— |
|||||||
Production |
(4,979) |
(3,601) |
(617) |
(6,196) |
|||||||
Proved Reserves as of December 31, 2017 |
65,057 |
53,254 |
8,426 |
82,358 |
|||||||
Proved Developed Reserves as of December 31, 2017 |
29,325 |
25,495 |
4,166 |
37,739 |
2018 Operating Guidance
Jagged Peak's 2018 activity level seeks to balance the optimal long-term development of its assets while continuing to grow its production and cash flow and maintaining a strong balance sheet. The 2018 activity level will allow the Company to complete acquisition and interpretation of 3D seismic data and other data initiatives that will help to guide the Company as it optimizes the development of its substantial leasehold position and continues to efficiently deploy capital. The Company forecasted for potential service cost inflation of 10% to 15% over 2017.
In 2018, the Company plans to spud 40 to 45 gross operated wells and complete and bring online 42 to 46 gross operated wells. These wells will predominantly target the lower Wolfcamp A in the Company's Cochise and Whiskey River project areas. Additionally, the Company expects to participate in 6 to 9 gross non-operated wells with an average working interest of approximately 40%.
The Company is providing the following guidance for its full year 2018 activities:
The Company expects first quarter 2018 production to range from 27,000 to 27,300, an increase of more than 10% at the mid-point compared to fourth quarter 2017 production.
Conference Call
Jagged Peak will host a conference call and webcast to discuss its fourth quarter and full year 2017 financial and operating results on Friday, March 23, 2018 at 9:00 am MDT (11:00 am EDT). The call will be webcast and accessible via the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6837 ten minutes before the scheduled start time (international callers, dial 1-631-891-4304). A telephone replay will be available from 12:00 noon MDT (2:00 pm EDT) on Friday, March 23, 2018 through Saturday, April 14, 2018 at 10:00 pm MDT (12:00 midnight EDT). To access the replay, dial 1-844-512-2921 (international callers dial, 1-412-317-6671) and enter confirmation code 10004408. A live broadcast of the earnings conference call will also be available via the Company's website at www.jaggedpeakenergy.com under the "Investor Relations" section of the site. A replay will also be available on the website approximately two hours after the conference call. The presentation material for this conference call will also be available on the Company's website.
Upcoming Investor Events
Executive Vice President and Chief Financial Officer, Bob Howard, and Vice President, Finance and Corporate Planning, Ian Piper, will be participating at the 2018 Scotia Howard Weil Energy Conference on March 26-27, 2018. The presentation used for this event will be available on the Company's website at www.jaggedpeakenergy.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions), will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, guidance estimates including all statements under the heading "2018 Capital Budget and Guidance Highlights" and "2018 Operating Guidance"; planned 3D seismic program and its ultimate impact on well performance; expected capital expenditures; drilling, completion and development expectations; expected production; expected oil price environment and service costs in 2018; and expected inventory locations. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2017 Annual Report on Form 10-K, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, equity-based compensation expense, income taxes and net gains or losses on derivatives less net cash from derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows investors to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a performance measure used by management to evaluate financial performance, prior to non-cash gains or losses on derivatives, impairment expense, exploratory dry hole costs, gain or loss on the sale of property, certain one-time items, such as equity-based compensation and income tax expense related to the IPO and a one-time gain related to the recent federal tax reform legislation, and the associated changes in estimated income tax. Management believes adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
Adjusted EBITDAX Margin
Adjusted EBITDAX margin is a performance measure used by management to evaluate financial performance and profitability. The Company defines adjusted EBITDAX margin as the relevant period's adjusted EBITDAX divided by the total oil equivalent production for that same period.
About Jagged Peak Energy Inc
Jagged Peak Energy Inc is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Jagged Peak Energy Inc. | |||||||||||||||
Selected Operating Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Twelve Months Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Production Data: |
|||||||||||||||
Oil (MBbls) |
1,771 |
492 |
4,979 |
1,702 |
|||||||||||
Natural gas (MMcf) |
1,377 |
283 |
3,601 |
953 |
|||||||||||
NGLs (MBbls) |
211 |
53 |
617 |
194 |
|||||||||||
Combined volumes (MBoe) |
2,211 |
592 |
6,196 |
2,054 |
|||||||||||
Daily combined volumes (Boe/d) |
24,037 |
6,438 |
16,974 |
5,613 |
|||||||||||
Average Sales Prices (before the effects of realized hedges): |
|||||||||||||||
Oil (per Bbl) |
$ |
53.10 |
$ |
46.47 |
$ |
48.56 |
$ |
41.18 |
|||||||
Natural gas (per Mcf) |
2.45 |
2.69 |
2.52 |
2.32 |
|||||||||||
NGLs (per Bbl) |
30.96 |
19.68 |
25.25 |
15.81 |
|||||||||||
Combined (per Boe) |
47.00 |
41.65 |
43.00 |
36.68 |
|||||||||||
Average Sales Prices (after the effects of realized hedges): |
|||||||||||||||
Oil (per Bbl) |
$ |
49.54 |
$ |
44.17 |
$ |
48.04 |
$ |
39.84 |
|||||||
Natural gas (per Mcf) |
2.45 |
2.69 |
2.52 |
2.32 |
|||||||||||
NGLs (per Bbl) |
30.96 |
19.68 |
25.25 |
15.81 |
|||||||||||
Combined (per Boe) |
44.15 |
39.74 |
42.58 |
35.57 |
|||||||||||
Average Operating Costs (per Boe): |
|||||||||||||||
Lease operating expenses |
$ |
3.25 |
$ |
3.80 |
$ |
2.88 |
$ |
3.65 |
|||||||
Gathering and transportation expenses |
0.91 |
0.65 |
0.71 |
0.51 |
|||||||||||
Production and ad valorem tax expenses |
2.35 |
1.98 |
2.60 |
2.12 |
|||||||||||
Depletion, depreciation, amortization and accretion |
19.82 |
18.55 |
17.92 |
19.67 |
|||||||||||
General and administrative expense (before equity-based compensation expense) |
2.36 |
6.44 |
3.73 |
5.69 |
Jagged Peak Energy Inc. | ||||||||
Condensed Consolidated and Combined Balance Sheets | ||||||||
(Unaudited) | ||||||||
December 31, 2017 |
December 31, 2016 | |||||||
(in thousands) | ||||||||
Assets: |
||||||||
Cash and cash equivalents |
$ |
9,523 |
$ |
11,727 |
||||
Other current assets |
51,540 |
13,739 |
||||||
Property and equipment, net |
1,038,947 |
476,593 |
||||||
Other noncurrent assets |
3,418 |
16,333 |
||||||
Total assets |
$ |
1,103,428 |
$ |
518,392 |
||||
Liabilities and Stockholders' / Members' Equity: |
||||||||
Current liabilities |
$ |
174,475 |
$ |
56,421 |
||||
Long-term debt |
155,000 |
132,000 |
||||||
Deferred income taxes |
57,943 |
— |
||||||
Other long-term liabilities |
16,665 |
3,859 |
||||||
Stockholders' / Members' equity |
699,345 |
326,112 |
||||||
Total liabilities and stockholders' / members' equity |
$ |
1,103,428 |
$ |
518,392 |
Jagged Peak Energy Inc. | |||||||||||||||
Condensed Consolidated and Combined Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Twelve Months Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Revenues |
|||||||||||||||
Oil, natural gas and NGL sales |
$ |
103,948 |
$ |
24,671 |
$ |
266,424 |
$ |
75,359 |
|||||||
Other operating revenues |
474 |
206 |
888 |
1,163 |
|||||||||||
Total revenues |
104,422 |
24,877 |
267,312 |
76,522 |
|||||||||||
Operating Expenses |
|||||||||||||||
Lease operating expenses |
7,190 |
2,251 |
17,874 |
7,505 |
|||||||||||
Gathering and transportation expenses |
2,020 |
384 |
4,424 |
1,046 |
|||||||||||
Production and ad valorem taxes |
5,204 |
1,172 |
16,120 |
4,345 |
|||||||||||
Exploration |
17 |
10 |
31 |
2,484 |
|||||||||||
Depletion, depreciation, amortization and accretion |
43,825 |
10,987 |
111,049 |
40,417 |
|||||||||||
Impairment of unproved oil and natural gas properties |
8 |
55 |
373 |
372 |
|||||||||||
Other operating expenses |
24 |
82 |
247 |
649 |
|||||||||||
General and administrative (before equity-based compensation) |
5,229 |
3,812 |
23,091 |
11,690 |
|||||||||||
General and administrative, equity-based compensation |
11,334 |
— |
442,976 |
— |
|||||||||||
Total operating expenses |
74,851 |
18,753 |
616,185 |
68,508 |
|||||||||||
Income (Loss) from Operations |
29,571 |
6,124 |
(348,873) |
8,014 |
|||||||||||
Other Income and Expense |
|||||||||||||||
Gain (loss) on commodity derivatives |
(58,537) |
(6,937) |
(42,615) |
(15,145) |
|||||||||||
Interest expense and other |
(1,367) |
(1,158) |
(2,503) |
(2,629) |
|||||||||||
Total other income (loss) |
(59,904) |
(8,095) |
(45,118) |
(17,774) |
|||||||||||
Income (Loss) before Income Taxes |
(30,333) |
(1,971) |
(393,991) |
(9,760) |
|||||||||||
Income tax expense (benefit) |
(43,096) |
— |
57,943 |
— |
|||||||||||
Net Income (Loss) |
$ |
12,763 |
$ |
(1,971) |
$ |
(451,934) |
$ |
(9,760) |
|||||||
Net Income (Loss) attributable to Jagged Peak Energy LLC (predecessor) |
$ |
— |
$ |
(1,971) |
$ |
(375,476) |
$ |
(9,760) |
|||||||
Net Income (Loss) attributable to Jagged Peak Energy Inc. Stockholders |
12,763 |
— |
(76,458) |
— |
|||||||||||
Net Income (Loss) |
$ |
12,763 |
$ |
(1,971) |
$ |
(451,934) |
$ |
(9,760) |
|||||||
Net income (loss) attributable to Jagged Peak Energy Inc. Stockholders per common share: |
|||||||||||||||
Basic |
$ |
0.06 |
$ |
(0.36) |
|||||||||||
Diluted |
$ |
0.06 |
$ |
(0.36) |
|||||||||||
Weighted-average common shares outstanding: |
|||||||||||||||
Basic |
212,931 |
212,932 |
|||||||||||||
Diluted |
213,553 |
212,932 |
Jagged Peak Energy Inc. | |||||||||||||||
Consolidated and Combined Statements of Cash Flows | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Twelve Months Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in thousands) | |||||||||||||||
Cash Flows from Operating Activities |
|||||||||||||||
Net income (loss) |
$ |
12,763 |
$ |
(1,971) |
$ |
(451,934) |
$ |
(9,760) |
|||||||
Adjustments to reconcile to net cash provided by operating activities: |
|||||||||||||||
Depletion, depreciation, amortization and accretion |
43,825 |
10,987 |
111,049 |
40,417 |
|||||||||||
Management incentive unit advance |
— |
— |
— |
(14,712) |
|||||||||||
Impairment of unproved oil and natural gas properties |
8 |
55 |
373 |
372 |
|||||||||||
Exploratory dry hole costs |
— |
— |
— |
1,192 |
|||||||||||
Amortization of debt issuance costs |
199 |
96 |
606 |
260 |
|||||||||||
Deferred income taxes |
(43,096) |
— |
57,943 |
— |
|||||||||||
Equity-based compensation |
11,334 |
— |
442,976 |
— |
|||||||||||
(Gain) Loss on commodity derivatives |
58,537 |
6,937 |
42,615 |
15,145 |
|||||||||||
Net cash receipts (payments) on settled derivatives |
(6,309) |
(1,133) |
(2,618) |
(2,292) |
|||||||||||
Other |
1,005 |
(40) |
882 |
(160) |
|||||||||||
Change in operating assets and liabilities: |
|||||||||||||||
Accounts receivable and other current assets |
(13,150) |
(2,043) |
(40,442) |
(2,588) |
|||||||||||
Other assets |
— |
— |
(3) |
11 |
|||||||||||
Accounts payable and accrued liabilities |
8,327 |
2,373 |
17,424 |
4,198 |
|||||||||||
Net cash provided by operating activities |
73,443 |
15,261 |
178,871 |
32,083 |
|||||||||||
Cash Flows from Investing Activities |
|||||||||||||||
Leasehold and acquisitions costs |
(12,865) |
(15,337) |
(73,492) |
(54,681) |
|||||||||||
Development of oil and natural gas properties |
(174,383) |
(54,762) |
(523,559) |
(139,571) |
|||||||||||
Other capital expenditures |
349 |
(138) |
(2,983) |
(1,969) |
|||||||||||
Proceeds from sale of oil and natural gas properties |
— |
796 |
— |
796 |
|||||||||||
Net cash used in investing activities |
(186,899) |
(69,441) |
(600,034) |
(195,425) |
|||||||||||
Cash Flows from Financing Activities |
|||||||||||||||
Proceeds from issuance of common stock in IPO, net of underwriting fees |
— |
— |
401,625 |
— |
|||||||||||
Proceeds from common units issued |
— |
20,000 |
— |
51,542 |
|||||||||||
Proceeds from senior secured revolving credit facility |
120,000 |
42,000 |
165,000 |
112,000 |
|||||||||||
Repayment of senior secured revolving credit facility |
— |
— |
(142,000) |
— |
|||||||||||
Debt issuance costs |
(921) |
(190) |
(2,362) |
(1,220) |
|||||||||||
Costs related to initial public offering |
— |
(1,323) |
(3,216) |
(1,418) |
|||||||||||
Employee tax withholding for settlement of equity compensation awards |
— |
— |
(88) |
— |
|||||||||||
Net cash provided by financing activities |
119,079 |
60,487 |
418,959 |
160,904 |
|||||||||||
Net Change in Cash and Cash Equivalents |
5,623 |
6,307 |
(2,204) |
(2,438) |
|||||||||||
Cash and Cash Equivalents, Beginning of Period |
3,900 |
5,420 |
11,727 |
14,165 |
|||||||||||
Cash and Cash Equivalents, End of Period |
$ |
9,523 |
$ |
11,727 |
$ |
9,523 |
$ |
11,727 |
Jagged Peak Energy Inc. | |||||||
Commodity Hedges | |||||||
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. For the first quarter 2018, 15,597 Bbl/d of oil are hedged at an average WTI price of $52.43 per barrel. For full year 2018, 15,793 Bbl/d of oil are hedged at an average WTI price of $52.94 per barrel. In addition, for 2018, the Company has hedges in place for 5,611,000 barrels of oil to hedge the price differential between the Cushing and Midland oil prices at an average of $(0.98) per barrel. | |||||||
As of March 16, 2018, the Company had the following commodity hedges in place for future production: | |||||||
Production Period |
Volumes |
Weighted Average | |||||
(Bbls) |
($/Bbl) | ||||||
Oil Swaps: |
|||||||
First quarter 2018 |
1,403,750 |
$ |
52.43 |
||||
Second quarter 2018 |
1,412,000 |
$ |
52.69 |
||||
Third quarter 2018 |
1,481,200 |
$ |
53.14 |
||||
Fourth quarter 2018 |
1,467,400 |
$ |
53.45 |
||||
Full Year 2018 |
5,764,350 |
$ |
52.94 |
||||
Full Year 2019 |
2,372,500 |
$ |
51.89 |
||||
Oil Basis Swaps: |
|||||||
Full Year 2018 |
5,611,000 |
$ |
(0.98) |
||||
Full Year 2019 |
2,920,000 |
$ |
(1.10) |
Jagged Peak Energy Inc. | |||||||||||||||
Reconciliation of Adjusted Net Income, Adjusted EBITDAX and Adjusted EBITDAX Margin | |||||||||||||||
(Unaudited) | |||||||||||||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." | |||||||||||||||
Three Months Ended |
Twelve Months Ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in thousands) | |||||||||||||||
Adjusted Net Income (Loss) |
|||||||||||||||
Net income (loss) |
$ |
12,763 |
$ |
(1,971) |
$ |
(451,934) |
$ |
(9,760) |
|||||||
Adjustments to reconcile to adjusted net income |
|||||||||||||||
Impairment of unproved oil and natural gas properties |
8 |
55 |
373 |
372 |
|||||||||||
Exploratory dry hole costs |
— |
— |
— |
1,192 |
|||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
52,228 |
5,804 |
39,997 |
12,853 |
|||||||||||
Equity-based compensation expense related to allocated management incentive units (1) |
9,435 |
— |
438,401 |
— |
|||||||||||
Deferred income tax expense recorded in connection with the Company's initial public offering |
1,598 |
— |
80,704 |
— |
|||||||||||
Income tax effect for the above items |
(18,527) |
— |
(14,347) |
— |
|||||||||||
Impact of reduction in Federal statutory rate |
(37,282) |
— |
(37,282) |
— |
|||||||||||
Adjusted net income (loss) |
$ |
20,223 |
$ |
3,888 |
$ |
55,912 |
$ |
4,657 |
|||||||
Adjusted net income (loss) per basic common share |
$ |
0.09 |
$ |
0.26 |
|||||||||||
Adjusted net income (loss) per diluted common share |
$ |
0.09 |
$ |
0.26 |
|||||||||||
Basic common shares |
212,931 |
212,932 |
|||||||||||||
Diluted common shares |
213,552 |
212,979 |
|||||||||||||
Adjusted EBITDAX |
|||||||||||||||
Net income (loss) |
$ |
12,763 |
$ |
(1,971) |
$ |
(451,934) |
$ |
(9,760) |
|||||||
Adjustments to reconcile to adjusted EBITDAX |
|||||||||||||||
Interest expense, net of capitalized |
1,251 |
1,158 |
2,861 |
2,629 |
|||||||||||
Income tax expense (benefit) |
(43,096) |
— |
57,943 |
— |
|||||||||||
Depletion, depreciation, amortization and accretion |
43,825 |
10,987 |
111,049 |
40,417 |
|||||||||||
Impairment of unproved oil and natural gas properties |
8 |
55 |
373 |
372 |
|||||||||||
Exploration expenses |
17 |
10 |
31 |
2,484 |
|||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
52,228 |
5,804 |
39,997 |
12,853 |
|||||||||||
Equity-based compensation expense (2) |
11,334 |
— |
442,976 |
— |
|||||||||||
Adjusted EBITDAX |
$ |
78,330 |
$ |
16,043 |
$ |
203,296 |
$ |
48,995 |
|||||||
Total production (MBoe) |
2,211 |
592 |
6,196 |
2,054 |
|||||||||||
Adjusted EBITDAX margin (3) |
$ |
35.43 |
$ |
27.10 |
$ |
32.81 |
$ |
23.85 |
(1) In connection with the IPO, management incentive units were converted to common stock. A portion of this common stock was transferred to JPE Management Holdings LLC and became subject to the terms and conditions of the amended and restated JPE Management Holdings LLC limited liability company agreement (the "Holdco Agreement"). The compensation expense related to these shares has primarily been recognized ratably as they have vested according to the terms of the Holdco Agreement. Only compensation expense related to management incentive units allocated at the time of the IPO is excluded from the calculation of adjusted net income. | |
(2) Equity-based compensation expense for the fourth quarter 2017 includes $9.8 million related to management incentive units that converted to common stock in connection with the IPO and $1.5 million related to equity awards issued under the Company's long-term incentive plan. | |
(3) Adjusted EBITDAX margin is calculated as Adjusted EBITDAX divided by total production, expressed as adjusted EBITDAX per Boe. |
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-fourth-quarter-and-full-year-2017-financial-and-operating-results-and-2018-capital-budget-and-guidance-300618474.html
SOURCE Jagged Peak Energy Inc.
DENVER, Feb. 26, 2018 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") Chairman, President and CEO Joseph N. Jaggers today announced plans to retire at the end of March 2018 for health and personal reasons. Following an orderly transition, current independent director James J. Kleckner will become the Company's President and CEO. Also as part of the succession plan, current Company director Charles D. Davidson, former CEO of Noble Energy Inc., will assume the role of Chairman. Both appointments will take effect on the date of Mr. Jaggers' retirement.
The Company also announced today that Executive Vice President and Chief Operating Officer J. Jay Stratton, Jr. has departed the Company. Craig Walters has been elected by the Company's Board of Directors (the "Board") to serve as Executive Vice President and Chief Operating Officer.
It is anticipated that Mr. Jaggers will remain full time with the Company until his retirement and on a consulting basis thereafter to assist with the transition.
Mr. Kleckner will remain on the Board, but will resign his positions on the audit and compensation committees effective upon being named President and Chief Executive Officer. Michael C. Linn, who currently serves on the Board as an independent director, will be elected to Mr. Kleckner's position on the audit committee when Mr. Kleckner becomes President and CEO.
"On behalf of the Board and the entire Jagged Peak Energy team, we thank Joe for his leadership and vision since the Company's founding in 2013," said Mr. Davidson. "The Company he founded is characterized by exemplary assets and an outstanding organization. He has been a leader in the industry and recognized for his foresight and tenacity in the exploration and development of the Delaware Basin. We wish him the best in his retirement and sincerely appreciate his assistance through this transition.
"Jim Kleckner will join the Company as President and CEO after a successful career at Anadarko Petroleum where he led the evolution of the DJ Basin into a major unconventional resource play. I am confident that the experience and skills he brings to the Company will drive our future success as we transition to full field development," added Mr. Davidson.
"I am proud of the growth we have achieved at Jagged Peak and that what we accomplished was done in a spirit of continuous discovery, improvement and efficiency," said Mr. Jaggers. "From a simple beginning in 2013 with an idea and a financial commitment from Quantum Energy Partners, we built a Company that today produces over 28,000 net Boe per day. However, I will turn 65 later this year and the time has come for me to shift my focus from full-time professional duties to personal priorities. I have known Jim Kleckner for decades and have tremendous respect for his leadership qualities and character, along with the utmost confidence in his ability to lead the Company to continued success."
"I am honored to succeed Joe as President and CEO of Jagged Peak Energy and am grateful to the Board for their confidence in me to lead this organization," said Mr. Kleckner. "It is a privilege to serve Jagged Peak's stockholders and employees and to join a peer-leading pure play Delaware Basin company with an impressive asset base, enviable balance sheet and proven record of strong performance. I look forward to capitalizing on the Company's operational capabilities, technical expertise and superior acreage to support the Company's growth objectives and enhance stockholder value. I am excited that Craig Walters has decided to join our leadership team as Chief Operating Officer. I have had the good fortune to have previously worked with Craig for a number of years and am confident that his experience and leadership will further enhance our performance as we grow the Company."
Mr. Kleckner was appointed as an independent member of the Company's Board in January 2017. He retired from Anadarko Petroleum Corporation as its Executive Vice President, International and Deepwater Operations in August of 2016, after serving in various senior level operating positions for Anadarko and its predecessors since 1981, including Regional Vice President of Anadarko's Rockies' operations from 2004 to 2013 during which he led the transformation of the region through investments in several unconventional assets. This resulted in production growing from less than 50 MBoe/d to over 300 MBoe/d during the period of his leadership. Mr. Kleckner holds a B.S. in Petroleum Engineering from the Colorado School of Mines.
From 1994 through 2017, Mr. Walters served in various operational, technical and business development roles at Anadarko Petroleum Corporation, most recently as Vice President, Rockies Operations where he oversaw assets producing 330 MBoe/d net, including a very active multi-billion dollar unconventional development program in the DJ Basin. Mr. Walters holds a B.S. in Petroleum Engineering from the Colorado School of Mines.
Mr. Davidson was appointed as a member of the Board in September 2016. Mr. Davidson is a Venture Partner with Quantum Energy Partners and serves on the firm's Investment Committee. He served as Chief Executive Officer of Noble Energy, Inc. from 2000 to 2014 and its Chairman from 2001 until his retirement from Noble in May 2015.
Financial Update
As a result of the executive management transition, the Company will provide 2018 guidance on March 22, 2018 in conjunction with reporting fourth quarter and full year 2017 results. On an interim basis, the Company is providing the following unaudited financial information for 2017:
Fourth quarter production was less than anticipated primarily due to fewer well completions and delays with both operated and non-operated wells coming online during the quarter.
Operating Update
The Company spud 14 gross operated wells and completed and brought online 14 gross operated wells in the fourth quarter of 2017. The majority of activity in the fourth quarter was focused in the Wolfcamp A, with 11 of the 14 completions in this formation. The Company is currently operating 4 completion crews and 5 drilling rigs. In the first quarter of 2018 to date, 4 gross operated wells have been completed and brought online, and an additional 6 and 7 gross operated wells are currently being completed and waiting on completion, respectively.
Upcoming Investor Events
The Company expects to report full year and fourth quarter 2017 earnings on Thursday, March 22, 2018 after market close. Jagged Peak will host a conference call and webcast to discuss these earnings on Friday, March 23, 2018 at 9:00 am MDT (11:00 am EDT). The call will be webcast and accessible via the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6837 ten minutes before the scheduled start time (international callers, dial 1-631-891-4304). A telephone replay will be available from 12:00 noon MDT (2:00 pm EDT) on Friday, March 23, 2018 through Friday, April 14, 2018 at 10:00 pm MDT (12:00 midnight EDT). To access the replay, dial 1-844-512-2921 (international callers dial, 1-412-317-6671) and enter confirmation code 10004408. A live broadcast of the earnings conference call will also be available via the Company's website at www.jaggedpeakenergy.com under the "Investor Relations" section of the site. A replay will also be available on the website approximately two hours after the conference call. The presentation material for this conference call will also be available on the Company's website.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, planned management transition, anticipated changes to the Board, drilling, completion, production and development expectations; improving field operations, analyzing data to improve well results; service cost increases; estimates of current net operated production; expected number of rigs and completion crews; downspacing and new formation development; and the ability to increase shareholder value. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2016 Annual Report on Form 10-K and the Form 10-Q for the quarter ended September 30, 2017, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior-forward looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-chairman-president--ceo-joseph-jaggers-to-retire-in-late-march-300604334.html
SOURCE Jagged Peak Energy Inc.
DENVER, Jan. 4, 2018 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") announced today its Chairman, Chief Executive and President, Joe Jaggers, will participate in a panel discussion at the Goldman Sachs Global Energy Conference in Miami, Florida, on Wednesday, January 10, 2018, at 1:30 pm EST.
The investor presentation used for this event will be available on the Company's website at www.jaggedpeakenergy.com.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-to-participate-at-goldman-sachs-global-energy-conference-300577979.html
SOURCE Jagged Peak Energy Inc.
DENVER, Nov. 8, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the third quarter ended September 30, 2017. The financial and operating results discussed in this news release include the results for Jagged Peak Energy LLC (the "Predecessor") which became a wholly owned subsidiary of Jagged Peak Energy Inc. as the result of transactions associated with the Company's initial public offering ("IPO") in January 2017.
Third Quarter 2017 Highlights
Commenting on the third quarter results, Joe Jaggers, Chairman, Chief Executive Officer and President of Jagged Peak said, "In the third quarter, the Company saw adjusted EBITDAX climb 44% over the second quarter 2017 and 271% over the third quarter 2016. This continues to represent extraordinary and highly economic growth as we move towards our goal of more than tripling 2016 production this year. Over the last three months, our drilling performance has continued to improve, but we have been impacted by completion delays primarily related to fracing operations. Our drilling performance during the third quarter improved with overall cost per foot declining 17% versus performance over the first half of 2017. One remarkable drilling achievement is a Whiskey River Wolfcamp well with a 9,900' foot lateral that was drilled with a single lateral drilling assembly in a total of 141 hours. This well was drilled in 22 days from spud to rig release. However, we have experienced completion delays related to frac fleet equipment reliability from our service providers and the learning curve of less experienced crews. We have communicated these issues to our service providers, and they are being actively addressed within their individual organizations. These delays have increased our completed well costs and will reduce our total number of well completions in both the third and fourth quarters of 2017. Although we would be able to offset the impact of these delays by deploying additional spot frac fleets, we are unwilling to continue incurring the additional costs associated with these fleets. We have seen the additional costs of spot fleets approach $1 million per well, so we have chosen to be efficient with our capital and to preserve the strongest economic returns possible from our wells. In fact, our individual well results continue to meet or exceed our type curves. Any delayed wells will be completed in early 2018. We now expect to complete 15 to 17 operated wells this quarter and expect that our production will range from 26,000 to 27,000 Boe/d during the fourth quarter 2017."
Regarding Jagged Peak's delineation efforts, Mr. Jaggers continued, "We continue to successfully test new landing zones and formations in order to delineate additional resources, add reserves and gather information for full field development. In this quarterly release, we are announcing two exciting new wells - one targeting the Wolfcamp C and another targeting the Woodford Shale. This highlights our team's continued work towards derisking the very thick oil column across our leasehold position, and we are very encouraged with the initial results of these wells. These two wells mark our second and third announcements establishing new development targets this year, with the previous announcement of a successful 2nd Bone Spring well in August 2017. While some of these targets are characterized by a naturally higher gas-to-oil ratio, such as the 2nd Bone Spring and the Woodford Shale, than our traditional lower Wolfcamp A landing zone, these targets are highly economic and still produce an attractive oil cut. Additionally, our Wolfcamp A production is still greater than 80% oil, and represents 55% of our current inventory and approximately 80% of our current production. The Wolfcamp A drives our year to date oil cut of 81%, which is the best among our peer group's publicly announced results. This oil cut allowed us to generate a peer leading EBITDAX margin of $32.04 per Boe in the third quarter 2017."
Regarding Jagged Peak's plan going forward, Mr. Jaggers continued, "Our plans for fourth quarter 2017 include an average of six drilling rigs and three completion crews throughout the quarter. As evidenced by our third quarter results and our current estimated net production rate of 23,500 Boe/d, I have confidence in our team's ability to continue to execute our development plan. Following our successful fall borrowing base redetermination, we remain well capitalized with the liquidity to continue to fund our operations into the foreseeable future."
Operating Update
The Company spud 15 gross operated horizontal wells and completed 11 gross operated horizontal wells during the third quarter. Additionally, during the quarter, the Company participated in 7 gross non-operated horizontal spuds and 3 gross non-operated horizontal completions. At the end of the third quarter, the Company had 4 wells that were being completed and 5 wells that were awaiting completion. Since the end of the third quarter, the Company has brought online 5 gross operated wells and is in the process of completing 8 additional gross operated horizontal wells.
Notable recent individual well results, production activity and upcoming catalysts include the following:
From January 1 through October 31, the Company has ramped up production with 34 new operated wells coming online. The Company's current estimated net production for November month to date is 23,500 Boe/d.
Financial Results
For the third quarter 2017, the Company reported a net loss of $15.2 million, which includes non-cash equity based compensation expense of $11.9 million. Net income for the third quarter of 2016 was $5.4 million. Adjusted EBITDAX (a non-GAAP measure) for the third quarter 2017 was $56.6 million, an increase of $41.3 million from the third quarter of 2016 and $17.3 million from the second quarter 2017.
For the third quarter 2017, the Company reported adjusted net income (a non-GAAP measure) of $15.4 million. Adjusted net income (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as equity-based compensation and income tax expense directly related to the IPO, non-cash mark-to-market gains or losses on derivatives, and impairment expense, further adjusted for the associated changes in estimated income tax expense. For the third quarter 2016, the Company reported adjusted net income (a non-GAAP measure) of $3.4 million.
Adjusted EBITDAX and adjusted net income (loss) are non-GAAP measures. Please reference the reconciliations to the most directly comparable GAAP measures at the end of this release.
The Company's average realized sales prices for the third quarter 2017, including settlement of realized oil hedges, were $47.55 per barrel of oil, $2.59 per Mcf of natural gas and $25.31 per barrel of natural gas liquids. The total oil equivalent price for the quarter was $41.70 per Boe compared to the third quarter 2016 total equivalent price of $36.79 per Boe and the second quarter 2017 total equivalent price of $40.67 per Boe. Additionally, LOE, including workovers, of $2.94 per Boe was 25% lower than third quarter 2016 of $3.90 per Boe. During the first nine months of 2017, LOE averaged $2.68 per Boe compared to $3.59 per Boe during the same period in 2016.
On October 26, 2017, the borrowing base and lender commitments under the Company's credit facility were increased from $250 million to $425 million. Concurrently with the borrowing base redetermination, the pricing structure and unused commitment fee of the Company's credit facility were improved to reflect favorable, current market rates. The Company began borrowing against its credit facility in September 2017 and had an outstanding balance of $35 million as of September 30, 2017. As of November 3, 2017, the Company had $80 million of outstanding borrowings against its credit facility, leaving $345 million of undrawn capacity. At current commodity prices, this represents sufficient liquidity for the Company to continue to fund its ongoing capital expenditure program while maintaining leverage consistent with the Company's long-term target of approximately 1.0x net debt / adjusted EBITDAX (a non-GAAP measure).
Capital Expenditures
Capital expenditures for drilling and completion activities were $158.9 million for the three months ended September 30, 2017, which represents capital spent to drill and complete 14 gross (11.6 net) wells, of which 11 gross (10.2 net) wells were drilled and completed by Jagged Peak. Additionally, the Company had 16 gross (15.1 net) wells that were in various stages of being drilled or completed at the end of the quarter. Adding in capital expenditures for infrastructure of $3.6 million and leasehold capital of $7.8 million, total capital expenditures for the quarter were $170.3 million. Year to date, the Company has spent $1.2 million on the acquisition of surface acreage, which is included in the $21.8 million in infrastructure costs incurred in year to date 2017. The $7.8 million spent on leasehold acquisitions added over 2,200 net undeveloped acres, increasing the Company's leasehold position to approximately 72,600 net acres as of September 30, 2017.
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in thousands) | |||||||||||||||
Capital Expenditures for Oil and Gas Activities |
|||||||||||||||
Acquisitions |
|||||||||||||||
Proved properties |
$ |
— |
$ |
7,482 |
$ |
— |
$ |
7,482 |
|||||||
Unproved properties |
7,845 |
8,661 |
56,364 |
32,312 |
|||||||||||
Development costs |
158,870 |
36,845 |
399,057 |
82,651 |
|||||||||||
Infrastructure costs |
3,613 |
3,956 |
21,805 |
7,311 |
|||||||||||
Exploration costs |
6 |
78 |
14 |
1,663 |
|||||||||||
Total oil and gas capital expenditures |
$ |
170,334 |
$ |
57,022 |
$ |
477,240 |
$ |
131,419 |
2017 Operating Guidance
The Company updates its full-year 2017 guidance as follows:
The Company expects fourth quarter 2017 production to average 26,000 to 27,000 Boe/d, an increase of approximately 7,320 Boe/d, or 38%, at the mid-point compared to third quarter production. This is compared to previous guidance of 26,000 to 28,000 Boe/d.
Conference Call
Jagged Peak will host a conference call and webcast to discuss its third quarter 2017 financial and operating results on Thursday, November 9, 2017 at 9:00 am MDT (11:00 am EDT). The call will be webcast and accessible via the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6838 ten minutes before the scheduled start time (international callers, dial 1-631-891-4304). A telephone replay will be available from 12:00 noon MDT (2:00 pm EDT) on Thursday, November 9, 2017 through Friday, December 1, 2017 at 10:00 pm MDT (12:00 midnight). To access the replay, dial 1-844-512-2921 (international callers dial, 1-412-317-6671) and enter confirmation code 10003627. A live broadcast of the earnings conference call will also be available via the Company's website at www.jaggedpeakenergy.com under the "Investor Relations" section of the site. A replay will also be available on the website approximately two hours after the conference call. The presentation material for this conference call will also be available on the Company's website.
Upcoming Investor Events
Chairman, Chief Executive Officer and President, Joe Jaggers, and other members of management will participate in KLR's E&P Conference in Denver on November 14, 2017. The presentation used for this event will be available on the Company's website at www.jaggedpeakenergy.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, guidance estimates including all statements under the heading "2017 Operating Guidance"; expected capital expenditures; drilling, completion and development expectations; expected inventory locations; sufficiency of the Company's liquidity position; ability to realize value of Jagged Peak's acreage position; ability to improve well results, increase cash flow and reduce costs; ability to execute on the Company's development plan and increase production; estimates of current net operated production; expected number of rigs and completion crews; planned seismic programs and the impact and execution of the Company's hedging strategies. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2016 Annual Report on Form 10-K and the Form 10-Q for the quarter ended September 30, 2017, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, equity-based compensation expense, income taxes and net gains or losses on derivatives less net cash from derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows investors to more effectively evaluate our operating performance and compare the results or our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a performance measure used by management to evaluate financial performance, prior to non-cash gains or losses on derivatives, impairment expense, exploratory dry hole costs, gain or loss on the sale of property, certain one-time items, such as equity-based compensation and income tax expense related to the IPO, and the associated changes in estimated income tax. Management believes adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
Adjusted EBITDAX Margin
Adjusted EBITDAX margin is a performance measure used by management to evaluate financial performance and profitability. The Company defines adjusted EBITDAX margin as the relevant period's adjusted EBITDAX divided by the total oil equivalent production for that same period.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
(1) Adjusted net income (loss), adjusted EBITDAX and adjusted EBITDAX margin are non-GAAP measures. Please reference the reconciliations to the most directly comparable GAAP measures at the end of this release.
Jagged Peak Energy Inc. | |||||||||||||||
Selected Operating Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Production Data: |
|||||||||||||||
Oil (MBbls) |
1,383 |
484 |
3,208 |
1,210 |
|||||||||||
Natural gas (MMcf) |
1,136 |
282 |
2,224 |
669 |
|||||||||||
NGLs (MBbls) |
192 |
55 |
406 |
141 |
|||||||||||
Combined volumes (MBoe) |
1,765 |
586 |
3,984 |
1,462 |
|||||||||||
Daily combined volumes (Boe/d) |
19,180 |
6,366 |
14,594 |
5,336 |
|||||||||||
Average Sales Prices (before the effects of realized hedges): |
|||||||||||||||
Oil (per Bbl) |
$ |
45.24 |
$ |
42.03 |
$ |
46.06 |
$ |
39.03 |
|||||||
Natural gas (per Mcf) |
2.59 |
2.59 |
2.56 |
2.17 |
|||||||||||
NGLs (per Bbl) |
25.31 |
14.89 |
22.28 |
14.35 |
|||||||||||
Combined (per Boe) |
39.89 |
37.36 |
40.78 |
34.67 |
|||||||||||
Average Sales Prices (after the effects of realized hedges): |
|||||||||||||||
Oil (per Bbl) |
$ |
47.55 |
$ |
41.34 |
$ |
47.21 |
$ |
38.07 |
|||||||
Natural gas (per Mcf) |
2.59 |
2.59 |
2.56 |
2.17 |
|||||||||||
NGLs (per Bbl) |
25.31 |
14.89 |
22.28 |
14.35 |
|||||||||||
Combined (per Boe) |
41.70 |
36.79 |
41.71 |
33.87 |
|||||||||||
Average Operating Costs (per Boe): |
|||||||||||||||
Lease operating expenses |
$ |
2.94 |
$ |
3.90 |
$ |
2.68 |
$ |
3.59 |
|||||||
Gathering, transportation and processing expense |
0.77 |
0.50 |
0.60 |
0.45 |
|||||||||||
Production and ad valorem tax expenses |
2.69 |
2.29 |
2.74 |
2.17 |
|||||||||||
Depreciation, depletion, amortization and accretion expense |
17.48 |
19.04 |
16.87 |
20.13 |
|||||||||||
General and administrative expense (before equity-based compensation expense) |
3.30 |
4.06 |
4.48 |
5.39 |
Jagged Peak Energy Inc. | ||||||||
Condensed Consolidated and Combined Balance Sheets | ||||||||
(Unaudited) | ||||||||
September 30, 2017 |
December 31, 2016 | |||||||
(in thousands) | ||||||||
Assets: |
||||||||
Cash and cash equivalents |
$ |
3,900 |
$ |
11,727 |
||||
Other current assets |
44,750 |
13,739 |
||||||
Property and equipment, net |
889,798 |
476,593 |
||||||
Other noncurrent assets |
7,828 |
16,333 |
||||||
Total assets |
$ |
946,276 |
$ |
518,392 |
||||
Liabilities and Stockholders' / Members' Equity: |
||||||||
Current liabilities |
$ |
129,283 |
$ |
56,421 |
||||
Long-term debt |
35,000 |
132,000 |
||||||
Deferred income taxes |
101,039 |
— |
||||||
Other long-term liabilities |
5,706 |
3,859 |
||||||
Stockholders' / Members' equity |
675,248 |
326,112 |
||||||
Total liabilities and stockholders' / members' equity |
$ |
946,276 |
$ |
518,392 |
Jagged Peak Energy Inc. | |||||||||||||||
Condensed Consolidated and Combined Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Revenues |
|||||||||||||||
Oil, natural gas and NGL sales |
$ |
70,384 |
$ |
21,882 |
$ |
162,476 |
$ |
50,688 |
|||||||
Other operating revenues |
67 |
182 |
414 |
957 |
|||||||||||
Total revenues |
70,451 |
22,064 |
162,890 |
51,645 |
|||||||||||
Operating Expenses |
|||||||||||||||
Lease operating expenses |
5,184 |
2,285 |
10,684 |
5,254 |
|||||||||||
Gathering and transportation expenses |
1,357 |
294 |
2,404 |
662 |
|||||||||||
Production and ad valorem taxes |
4,739 |
1,341 |
10,916 |
3,173 |
|||||||||||
Exploration |
6 |
— |
14 |
2,474 |
|||||||||||
Depletion, depreciation, amortization and accretion |
30,851 |
11,152 |
67,224 |
29,430 |
|||||||||||
Impairment of unproved oil and natural gas properties |
257 |
7 |
365 |
317 |
|||||||||||
Other operating expenses |
41 |
169 |
223 |
567 |
|||||||||||
General and administrative (before equity-based compensation) |
5,830 |
2,375 |
17,862 |
7,878 |
|||||||||||
General and administrative, equity-based compensation |
11,903 |
— |
431,642 |
— |
|||||||||||
Total operating expenses |
60,168 |
17,623 |
541,334 |
49,755 |
|||||||||||
Income (Loss) from Operations |
10,283 |
4,441 |
(378,444) |
1,890 |
|||||||||||
Other Income and Expense |
|||||||||||||||
Gain (loss) on commodity derivatives |
(27,693) |
1,728 |
15,922 |
(8,208) |
|||||||||||
Interest expense and other |
(407) |
(759) |
(1,136) |
(1,471) |
|||||||||||
Total other income (loss) |
(28,100) |
969 |
14,786 |
(9,679) |
|||||||||||
Income (Loss) before Income Taxes |
(17,817) |
5,410 |
(363,658) |
(7,789) |
|||||||||||
Income tax expense |
(2,598) |
— |
101,039 |
— |
|||||||||||
Net Income (Loss) |
$ |
(15,219) |
$ |
5,410 |
$ |
(464,697) |
$ |
(7,789) |
|||||||
Net Income (Loss) attributable to Jagged Peak Energy LLC (predecessor) |
$ |
— |
$ |
5,410 |
$ |
(375,476) |
$ |
(7,789) |
|||||||
Net Income (Loss) attributable to Jagged Peak Energy Inc. Stockholders |
(15,219) |
— |
(89,221) |
— |
|||||||||||
Net Income (Loss) |
$ |
(15,219) |
$ |
5,410 |
$ |
(464,697) |
$ |
(7,789) |
|||||||
Net income (loss) attributable to Jagged Peak Energy Inc. Stockholders per common share: |
|||||||||||||||
Basic |
$ |
(0.07) |
$ |
(0.42) |
|||||||||||
Diluted |
$ |
(0.07) |
$ |
(0.42) |
|||||||||||
Weighted-average common shares outstanding: |
|||||||||||||||
Basic |
212,931 |
212,933 |
|||||||||||||
Diluted |
212,931 |
212,933 |
Jagged Peak Energy Inc. | |||||||||||||||
Consolidated and Combined Statements of Cash Flows | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Nine Months Ended | ||||||||||||||
September 30, |
September 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in thousands) | |||||||||||||||
Cash Flows from Operating Activities |
|||||||||||||||
Net income (loss) |
$ |
(15,219) |
$ |
5,410 |
$ |
(464,697) |
$ |
(7,789) |
|||||||
Adjustments to reconcile to net cash provided by operating activities: |
|||||||||||||||
Depletion, depreciation, amortization and accretion expense |
30,851 |
11,152 |
67,224 |
29,430 |
|||||||||||
Management incentive unit advance |
— |
— |
— |
(14,712) |
|||||||||||
Impairment of unproved oil and natural gas properties |
257 |
7 |
365 |
317 |
|||||||||||
Exploratory dry hole costs |
— |
— |
— |
1,192 |
|||||||||||
Amortization of debt issuance costs |
147 |
77 |
407 |
164 |
|||||||||||
Deferred income taxes |
(2,598) |
— |
101,039 |
— |
|||||||||||
Equity-based compensation |
11,903 |
— |
431,642 |
— |
|||||||||||
(Gain) Loss on commodity derivatives |
27,693 |
(1,728) |
(15,922) |
8,208 |
|||||||||||
Net cash receipts (payments) on settled derivatives |
3,195 |
(337) |
3,691 |
(1,159) |
|||||||||||
Other |
(40) |
(42) |
(123) |
(120) |
|||||||||||
Change in operating assets and liabilities: |
|||||||||||||||
Accounts receivable and other current assets |
(18,582) |
265 |
(27,292) |
(545) |
|||||||||||
Other assets |
116 |
— |
(3) |
11 |
|||||||||||
Accounts payable and accrued liabilities |
7,700 |
714 |
9,097 |
1,825 |
|||||||||||
Net cash provided by operating activities |
45,423 |
15,518 |
105,428 |
16,822 |
|||||||||||
Cash Flows from Investing Activities |
|||||||||||||||
Leasehold and acquisitions costs |
(7,659) |
(15,410) |
(60,627) |
(39,344) |
|||||||||||
Development of oil and natural gas properties |
(153,964) |
(30,654) |
(349,176) |
(84,809) |
|||||||||||
Other capital expenditures |
(1,876) |
(140) |
(3,332) |
(1,831) |
|||||||||||
Proceeds from sale of oil and natural gas properties |
— |
— |
— |
— |
|||||||||||
Net cash used in investing activities |
(163,499) |
(46,204) |
(413,135) |
(125,984) |
|||||||||||
Cash Flows from Financing Activities |
|||||||||||||||
Proceeds from issuance of common stock in IPO, net of underwriting fees |
— |
— |
401,625 |
— |
|||||||||||
Proceeds from common units issued |
— |
— |
— |
31,542 |
|||||||||||
Proceeds from senior secured revolving credit facility |
35,000 |
30,000 |
45,000 |
70,000 |
|||||||||||
Repayment of senior secured revolving credit facility |
— |
— |
(142,000) |
— |
|||||||||||
Debt issuance costs |
(20) |
(292) |
(1,441) |
(1,030) |
|||||||||||
Costs related to initial public offering |
— |
(95) |
(3,216) |
(95) |
|||||||||||
Employee tax withholding for settlement of equity compensation awards |
— |
— |
(88) |
— |
|||||||||||
Net cash provided by financing activities |
34,980 |
29,613 |
299,880 |
100,417 |
|||||||||||
Net Change in Cash and Cash Equivalents |
(83,096) |
(1,073) |
(7,827) |
(8,745) |
|||||||||||
Cash and Cash Equivalents, Beginning of Period |
86,996 |
6,493 |
11,727 |
14,165 |
|||||||||||
Cash and Cash Equivalents, End of Period |
$ |
3,900 |
$ |
5,420 |
$ |
3,900 |
$ |
5,420 |
Jagged Peak Energy Inc. |
||||||||
Commodity Hedges |
||||||||
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. For the fourth quarter 2017, 15,138 Bbl/d of oil are hedged at an average WTI price of $51.34 per barrel. For 2018, 14,420 Bbl/d of oil are hedged at an average WTI price of $52.18 per barrel. In addition, for 2018, the Company has hedges in place for 5,110,000 barrels of oil to hedge the price differential between the Cushing and Midland oil prices at $(1.08) per barrel. |
||||||||
As of November 3, 2017, the Company had the following commodity hedges in place for future production: |
||||||||
Production Period |
Volumes |
Weighted Average |
||||||
(Bbls) |
($/Bbl) |
|||||||
Oil Swaps: |
||||||||
Fourth quarter 2017 |
1,392,700 |
$ |
51.34 |
|||||
First quarter 2018 |
1,315,250 |
$ |
51.86 |
|||||
Second quarter 2018 |
1,275,500 |
$ |
51.82 |
|||||
Third quarter 2018 |
1,343,200 |
$ |
52.34 |
|||||
Fourth quarter 2018 |
1,329,400 |
$ |
52.67 |
|||||
Full-Year 2018 |
5,263,350 |
$ |
52.18 |
|||||
Full-Year 2019 |
2,372,500 |
$ |
51.89 |
|||||
Oil Basis Swaps: |
||||||||
Fourth quarter 2017 |
460,000 |
$ |
(1.00) |
|||||
Full-Year 2018 |
5,110,000 |
$ |
(1.08) |
|||||
Full-Year 2019 |
2,920,000 |
$ |
(1.10) |
Jagged Peak Energy Inc. |
||||||||||||||||
Reconciliation of Adjusted Net Income and Adjusted EBITDAX |
||||||||||||||||
(Unaudited) |
||||||||||||||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." |
||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2017 |
2016 |
2017 |
2016 |
|||||||||||||
(in thousands) |
||||||||||||||||
Adjusted Net Income (Loss) |
||||||||||||||||
Net Income (Loss) |
$ |
(15,219) |
$ |
5,410 |
$ |
(464,697) |
$ |
(7,789) |
||||||||
Adjustments to reconcile to Adjusted Net Income |
||||||||||||||||
Impairment of unproved oil and natural gas properties |
257 |
7 |
365 |
317 |
||||||||||||
Exploratory dry hole costs |
— |
— |
— |
1,192 |
||||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
30,888 |
(2,065) |
(12,231) |
7,049 |
||||||||||||
Equity-based compensation expense related to allocated management incentive units (1) |
10,489 |
— |
428,966 |
— |
||||||||||||
Deferred income tax expense recorded in connection with the Company's initial public offering |
— |
— |
79,106 |
— |
||||||||||||
Income tax effect for the above items |
(11,042) |
— |
4,214 |
— |
||||||||||||
Adjusted Net Income (Loss) |
$ |
15,373 |
$ |
3,352 |
$ |
35,723 |
$ |
769 |
||||||||
Adjusted Net Income (Loss) per basic common share |
$ |
0.07 |
$ |
0.17 |
||||||||||||
Adjusted Net Income (Loss) per diluted common share |
$ |
0.07 |
$ |
0.17 |
||||||||||||
Basic common shares |
212,931 |
212,931 |
||||||||||||||
Diluted common shares |
213,258 |
213,042 |
||||||||||||||
Adjusted EBITDAX |
||||||||||||||||
Net Income (Loss) |
$ |
(15,219) |
$ |
5,410 |
$ |
(464,697) |
$ |
(7,789) |
||||||||
Adjustments to reconcile to Adjusted EBITDAX |
||||||||||||||||
Interest expense, net of capitalized |
467 |
759 |
1,610 |
1,471 |
||||||||||||
Income tax expense (benefit) |
(2,598) |
— |
101,039 |
— |
||||||||||||
Depletion, depreciation, amortization and accretion |
30,851 |
11,152 |
67,224 |
29,430 |
||||||||||||
Impairment of unproved oil and natural gas properties |
257 |
7 |
365 |
317 |
||||||||||||
Exploration expenses |
6 |
— |
14 |
2,474 |
||||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
30,888 |
(2,065) |
(12,231) |
7,049 |
||||||||||||
Equity-based compensation expense (2) |
11,903 |
— |
431,642 |
— |
||||||||||||
Adjusted EBITDAX |
$ |
56,555 |
$ |
15,263 |
$ |
124,966 |
$ |
32,952 |
||||||||
Total Production (MBoe) |
1,765 |
586 |
3,984 |
1,462 |
||||||||||||
Adjusted EBITDAX Margin |
$ |
32.04 |
$ |
26.05 |
$ |
31.37 |
$ |
22.54 |
(1) In connection with the IPO, management incentive units were converted to common stock. A portion of this common stock was transferred to JPE Management Holdings LLC and became subject to the terms and conditions of the amended and restated JPE Management Holdings LLC limited liability company agreement. The compensation expense related to these shares is recognized ratably as they vest. Only compensation expense related to management incentive units allocated at the time of the IPO is excluded from the calculation of adjusted net income. |
(2) Equity-based compensation expense for the third quarter 2017 includes $10.7 million related to management incentive units that converted to common stock in connection with the IPO and $1.2 million related to equity awards issued under the Company's long-term incentive plan. |
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-third-quarter-2017-financial-and-operating-results-300552424.html
SOURCE Jagged Peak Energy Inc.
DENVER, Oct. 19, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") today announced that it will host a conference call to discuss third quarter 2017 financial and operating results on Thursday, November 9, 2017 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time). The Company plans to announce third quarter 2017 results on Wednesday, November 8, 2017 after market close.
The call will be webcast live and accessible on the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6838 ten minutes before the scheduled start time (international callers dial 1-631-891-4304).
A telephone replay will be available through December 1, 2017 by dialing 1-844-512-2921 (1-412-317-6671 international) with the passcode 10003627. Additionally, a replay will be available on the Company's website approximately two hours after the conference call.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas. For more information, visit our website at www.jaggedpeakenergy.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-schedules-third-quarter-2017-earnings-conference-call-for-november-9-2017-300540234.html
SOURCE Jagged Peak Energy Inc.
DENVER, Sept. 19, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") announced a revised production guidance range of 19,150 to 19,350 barrels of oil equivalent per day ("Boe/d") for the third quarter of 2017 with the fourth quarter 2017 production guidance range remaining at 26,000 to 28,000 Boe/d. This guidance range for the third quarter is down from 20,000 to 20,800 Boe/d previously announced primarily due to the following three issues:
As a result of these changes to the production guidance range for the third quarter of 2017, the Company has updated its full year 2017 estimated production range to 17,500 to 18,000 Boe/d.
Joseph N. Jaggers, Chairman of the Board of Directors, President and Chief Executive Officer of the Company commented, "During the quarter, industry infrastructure impacts from Hurricane Harvey caused a portion of our wells to be shut-in for a short period of time. We took this opportunity to install ESPs on certain of the shut-in wells which are now back on production. In addition, we experienced timing delays related to both 2 non-operated wells and 2 operated wells which delayed the early period, high production phase by several weeks. These wells are now on-line and producing in line with our expectations. For the full year, we continue to expect to spud 54 to 58 operated and to complete 50 to 55 operated wells with timing dictated by optimal development of our assets including multiple well pads and multiple zone completions. Adjusting full year production guidance for actual results for the first half of the year and the updated third quarter guidance resulted in a tightened full year production guidance range of 17,500 to 18,000 Boe/d, which, at the low end, is 212% above 2016 production."
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which include statements regarding the Company's anticipated production in 2017, timing of completion fleet operations and performance expectations. These forward-looking statements represent Jagged Peak's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Jagged Peak's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Jagged Peak does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Jagged Peak to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Jagged Peak's 2016 Annual Report on Form 10-K and the Form 10-Q for the quarter ended June 30, 2017, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-provides-updated-third-quarter-production-guidance-300521762.html
SOURCE Jagged Peak Energy Inc.
DENVER, Aug. 10, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") announced today that it has appointed J. Jay Stratton, Jr. as its Executive Vice President, Chief Operating Officer.
Joseph N. Jaggers, Chairman of the Board of Directors, President and Chief Executive Officer of the Company commented, "After a comprehensive search, we are thrilled that Jay has accepted our offer to join us as our COO and expand the Company's talented management team. He brings proven leadership, deep operational experience, strong knowledge of the Permian Basin and a track record of continuous improvement. With this addition, I am confident that the Company will continue to produce strong results in the development of our top-tier assets in the heart of the Delaware Basin."
Most recently, Mr. Stratton was the Chief Operating Officer of Permian Resources LLC, the successor to American Energy Partners' Permian Basin portfolio company where he served since 2014. Prior to that, he was a District Manager for Permian Basin and Mid-Continent assets for Chesapeake Energy Corporation since 2011. He began his career with Atlantic Richfield Company (ARCO), Occidental Petroleum Corporation and Anadarko Petroleum Corporation in various engineering roles. Mr. Stratton holds a Bachelor's of Science in petroleum engineering from Texas A&M University.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Jagged Peak's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Jagged Peak's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Jagged Peak does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Jagged Peak to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Jagged Peak's 2016 Annual Report on Form 10-K and the Form 10-Q for the quarter ended March 31, 2017, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-appointment-of-chief-operating-officer-300502426.html
SOURCE Jagged Peak Energy Inc.
DENVER, Aug. 9, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the second quarter ended June 30, 2017. The financial and operating results discussed in this news release include the results for Jagged Peak Energy LLC (the "Predecessor") which became a wholly owned subsidiary of Jagged Peak Energy Inc. as the result of transactions associated with the Company's initial public offering ("IPO") in January 2017.
Second Quarter 2017 Highlights
Commenting on the second quarter results, Joe Jaggers, Chairman, Chief Executive Officer and President of Jagged Peak said, "Our team continued to execute according to plan in the second quarter, with production volumes coming in comfortably within our stated guidance. The Company saw production climb 50% over the first quarter of 2017 and 166% over the second quarter of 2016. With an oil cut of 81%, our production volumes remain some of the oiliest in the Delaware Basin. Based on wells we've drilled as a Company, we have seen oil cuts remain constant over the productive life of our wells. This superior oil cut, as well as our extensive infrastructure, resulted in an adjusted EBITDAX margin of $29.34 per Boe. During the second quarter, we brought online our first 2nd Bone Spring well. This well has produced an average of over 725 Boe/d from a completed lateral length of 4,843' over its first 65 days online. As a result, we have planned an additional 2nd Bone Spring well in the third quarter of 2017. On the land front, our team added over 1,800 leasehold acres at attractive prices."
Regarding Jagged Peak's plan going forward, Mr. Jaggers continued, "Our strong operating results, premier acreage position and experienced organization are evident in our outstanding financial results. We remain well capitalized with ample liquidity to fund our multi-rig program even in the current commodity price environment. Our contiguous acreage position allows us to drill extended length lateral wells across our leasehold; these extended length laterals represent approximately 70% of our inventory. Additionally, we are actively working to keep costs under control and to combat service cost inflation. As evidenced by our strong second quarter results and our July net production rate of 17,800 Boe/d, I have the utmost confidence in our team's ability to continue to execute our development plan and climb the production ramp. In fact, we have seen production continue to climb beyond July with production averaging an estimated 20,000 Boe/d during the first week of August."
Operating Update
The Company began 2017 operating three drilling rigs and added a fourth operated rig in January and a fifth operated rig in March. As of the end of the second quarter of 2017, the Company was operating 5 drilling rigs. The Company remains committed to its previously announced full-year drilling and completions guidance of 54 to 58 spuds and 50 to 55 completions. At the present time and taking into account the current commodity price environment, the Company intends to maintain this current level of activity as it has ample liquidity and nearly 70% of forecasted oil production hedged at over $51.00 per barrel for the second half of 2017.
The Company drilled 13 gross operated horizontal wells and completed 14 gross operated horizontal wells during the quarter. Additionally, during the quarter, the Company participated in 4 gross non-operated horizontal spuds and 2 gross non-operated horizontal completions. At the end of the second quarter, the Company had 4 wells that were currently being completed and 4 wells that were awaiting completion. Since the end of the quarter through July 31, 3 and 5 additional gross operated horizontal wells were drilled and completed, respectively.
Notable recent individual well results, production activity and upcoming catalysts include the following:
From January 1 through July 31, the Company has ramped up production with 26 new operated wells coming online. The Company is currently producing from 46 wells drilled and completed by the Company, up from 20 wells at the end of 2016. The Company's net operated production for the month of July was 17,800 Boe/d.
Financial Results
For the second quarter 2017, the Company reported net income of $16.4 million, which includes non-cash equity based compensation expense of $10.8 million. Net loss for the second quarter of 2016 was $5.7 million. Adjusted EBITDAX (a non-GAAP measure) for the second quarter of 2017 was $39.3 million, an increase of $25.7 million from the second quarter of 2016 and $10.2 million from the first quarter 2017.
For the second quarter 2017, the Company reported adjusted net income (a non-GAAP measure) of $9.9 million. Adjusted net income (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as equity-based compensation and income tax expense directly related to the IPO, non-cash mark-to-market gains or losses on derivatives, and impairment expense, further adjusted for the associated changes in estimated income tax expense. For the second quarter 2016, the Company reported adjusted net income (a non-GAAP measure) of $3.6 million.
The Company's average realized sales prices, including settlement of realized oil hedges, were $46.29 per barrel of oil, $2.56 per Mcf of natural gas and $19.00 per barrel of natural gas liquids. The total oil equivalent price for the quarter was $40.67 per Boe compared to the second quarter 2016 total equivalent price of $35.77 per Boe and the first quarter 2017 total equivalent price of $43.30 per Boe. Additionally, lease operating expense, including workovers, ("LOE") of $2.90 per Boe was 24% greater than second quarter 2016 of $2.33 per Boe. During the first six months of 2017, LOE averaged $2.48 per Boe compared to $3.39 per Boe during the same period in 2016.
Adjusted EBITDAX and adjusted net income (loss) are non-GAAP measures. Please reference the reconciliations to the most directly comparable GAAP measures at the end of this release.
Capital Expenditures
Capital expenditures for drilling and completion activities were $148.9 million for the three months ended June 30, 2017, which represents capital spent to drill and complete 16 gross (14.3 net) wells, of which 14 gross (13.8 net) wells were drilled and completed by Jagged Peak. Additionally, the Company had 12 gross (11.1 net) wells that were in various stages of being drilled or completed at the end of the quarter. Adding in capital expenditures for infrastructure of $9.8 million and leasehold capital of $25.7 million, total capital expenditures for the quarter were $184.4 million. The $25.7 million spent on leasehold acquisitions added over 1,800 net undeveloped acres, increasing the Company's leasehold position to approximately 70,400 net acres as of June 30, 2017.
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in thousands) | |||||||||||||||
Capital Expenditures for Oil and Gas Activities |
|||||||||||||||
Acquisitions |
|||||||||||||||
Proved properties |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
|||||||
Unproved properties |
25,709 |
13,255 |
48,519 |
23,651 |
|||||||||||
Development costs |
148,906 |
18,481 |
240,187 |
45,806 |
|||||||||||
Infrastructure costs |
9,821 |
1,307 |
18,192 |
3,355 |
|||||||||||
Exploration costs |
2 |
37 |
8 |
1,585 |
|||||||||||
Total oil and gas capital expenditures |
$ |
184,438 |
$ |
33,080 |
$ |
306,906 |
$ |
74,397 |
2017 Operating Guidance
The Company reaffirms the following full-year 2017 guidance as follows:
The Company is lowering the high end of its 2017 LOE guidance to $3.25 per Boe. The new guidance range is now $2.75 to $3.25 per Boe, a $0.13 per Boe decrease at the mid-point compared to previously reported guidance.
The Company expects third quarter 2017 production to average 20,000 to 20,800 Boe/d, an increase of approximately 5,700 Boe/d, or 39%, at the mid-point compared to second quarter production.
Commodity Hedges
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. For the last two quarters of 2017, 13,461 Bbl/d of oil are hedged at an average WTI price of $51.34 per barrel. For 2018, 12,920 Bbl/d of oil are hedged at an average WTI price of $52.20 per barrel. In addition, for 2018, the Company has hedges in place for 2,190,000 barrels of oil to hedge the price differential between the Cushing and Midland oil prices at $(1.19) per barrel.
As of August 4, 2017, the Company had the following commodity hedges in place for future production:
Production Period |
Volumes |
Weighted Average Price | |||||
(Bbls) |
($/Bbl) | ||||||
Oil Swaps: |
|||||||
Third quarter 2017 |
1,084,200 |
$ |
51.35 |
||||
Fourth quarter 2017 |
1,392,700 |
$ |
51.34 |
||||
Remainder 2017 (3Q - 4Q) |
2,476,900 |
$ |
51.34 |
||||
First quarter 2018 |
1,180,250 |
$ |
51.85 |
||||
Second quarter 2018 |
1,139,000 |
$ |
51.80 |
||||
Third quarter 2018 |
1,205,200 |
$ |
52.38 |
||||
Fourth quarter 2018 |
1,191,400 |
$ |
52.75 |
||||
Full-Year 2018 |
4,715,850 |
$ |
52.20 |
||||
Full-Year 2019 |
2,372,500 |
$ |
51.89 |
||||
Oil Basis Swaps: |
|||||||
Full-Year 2018 |
2,190,000 |
$ |
(1.19) |
||||
Full-Year 2019 |
1,825,000 |
$ |
(1.16) |
Conference Call
Jagged Peak will host a conference call and webcast to discuss its second quarter 2017 financial and operating results on Thursday, August 10, 2017 at 9:00 am MDT (11:00 am EDT). The call will be webcast and accessible via the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6838 ten minutes before the scheduled start time (international callers, dial 1-631-891-4304). A telephone replay will be available from 12:00 noon MDT (2:00 pm EDT) on Thursday, August 10, 2017 through Thursday, August 17, 2017 at 10:00 pm MDT (12:00 midnight). To access the replay, dial 1-844-512-2921 (international callers dial, 1-412-317-6671) and enter confirmation code 10003290. A live broadcast of the earnings conference call will also be available via the Company's website at www.jaggedpeakenergy.com under the "Investor Relations" section of the site. A replay will also be available on the website following the call. The presentation material for this conference call will also be available on the Company's website.
Upcoming Investor Events
Chairman, Chief Executive Officer and President, Joe Jaggers, will be presenting at EnerCom's The Oil & Gas Conference on August 14, 2017 at 9:15 am MDT (11:15 am EDT). This presentation will be webcast and available on EnerCom's website through a link on the Company's website at www.jaggedpeakenergy.com. Additionally, Mr. Jaggers will be presenting at the Barclays Global CEO - Energy Power Conference on September 7, 2017 at 9:45 am MDT (11:45 am EDT). This presentation will not be webcast. The presentations used for these events will be available on the Company's website at www.jaggedpeakenergy.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, guidance estimates including all statements under the heading "2017 Operating Guidance" and reaffirmations of production guidance; expected capital expenditures; drilling, completion and development expectations; expected inventory locations; use of IPO proceeds; sufficiency of the Company's liquidity position; ability of Jagged Peak's water infrastructure system to support operations; ability to realize value of Jagged Peak's acreage position; ability to improve well results, increase cash flow and reduce costs; ability to execute on the Company's development plan and increase production; estimates of current net operated production; and the impact and execution of the Company's hedging strategies. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2016 Annual Report on Form 10-K and the Form 10-Q for the quarter ended June 30, 2017, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, equity-based compensation expense, income taxes and net gains or losses on derivatives less net cash from derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows investors to more effectively evaluate our operating performance and compare the results or our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a performance measure used by management to evaluate financial performance, prior to non-cash gains or losses on derivatives, impairment expense, exploratory dry hole costs, gain or loss on the sale of property, certain one-time items, such as equity-based compensation and income tax expense related to the IPO, and the associated changes in estimated income tax. Management believes adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
1Adjusted net income and (loss) and adjusted EBITDAX are non-GAAP measures. Please reference the reconciliations to the most directly comparable GAAP measures at the end of this release.
Jagged Peak Energy Inc. | |||||||||||||||
Selected Operating Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
Production Data: |
|||||||||||||||
Oil (MBbls) |
1,079 |
415 |
1,824 |
726 |
|||||||||||
Natural gas (MMcf) |
719 |
230 |
1,088 |
388 |
|||||||||||
NGLs (MBbls) |
140 |
50 |
214 |
86 |
|||||||||||
Combined volumes (MBoe) |
1,339 |
503 |
2,220 |
877 |
|||||||||||
Daily combined volumes (Boe/d) |
14,714 |
5,530 |
12,263 |
4,816 |
|||||||||||
Average Sales Prices (before the effects of realized hedges): |
|||||||||||||||
Oil (per Bbl) |
$ |
44.84 |
$ |
42.44 |
$ |
46.67 |
$ |
37.03 |
|||||||
Natural gas (per Mcf) |
2.56 |
1.91 |
2.53 |
1.85 |
|||||||||||
NGLs (per Bbl) |
19.00 |
15.50 |
19.56 |
14.01 |
|||||||||||
Combined (per Boe) |
39.50 |
37.40 |
41.49 |
32.86 |
|||||||||||
Average Sales Prices (after the effects of realized hedges): |
|||||||||||||||
Oil (per Bbl) |
$ |
46.29 |
$ |
40.46 |
$ |
46.95 |
$ |
35.90 |
|||||||
Natural gas (per Mcf) |
2.56 |
1.91 |
2.53 |
1.85 |
|||||||||||
NGLs (per Bbl) |
19.00 |
15.50 |
19.56 |
14.01 |
|||||||||||
Combined (per Boe) |
40.67 |
35.77 |
41.71 |
31.93 |
|||||||||||
Average Operating Costs (per Boe): |
|||||||||||||||
Lease operating expenses |
$ |
2.90 |
$ |
2.33 |
$ |
2.48 |
$ |
3.39 |
|||||||
Gathering, transportation and processing expense |
0.49 |
0.43 |
0.47 |
0.42 |
|||||||||||
Production and ad valorem tax expenses |
2.64 |
2.25 |
2.78 |
2.09 |
|||||||||||
Depreciation, depletion, amortization and accretion expense |
16.66 |
19.01 |
16.39 |
20.85 |
|||||||||||
General and administrative expense (before equity-based compensation expense) |
5.56 |
4.31 |
5.42 |
6.28 |
Jagged Peak Energy Inc. | ||||||||
Condensed Consolidated and Combined Balance Sheets | ||||||||
(Unaudited) | ||||||||
June 30, 2017 |
December 31, 2016 | |||||||
(in thousands) | ||||||||
Assets: |
||||||||
Cash and cash equivalents |
$ |
86,996 |
$ |
11,727 |
||||
Other current assets |
38,637 |
13,739 |
||||||
Property and equipment, net |
747,276 |
476,593 |
||||||
Other noncurrent assets |
15,844 |
16,333 |
||||||
Total assets |
$ |
888,753 |
$ |
518,392 |
||||
Liabilities and Stockholders' / Members' Equity: |
||||||||
Current liabilities |
$ |
105,653 |
$ |
56,421 |
||||
Long-term debt |
— |
132,000 |
||||||
Deferred income taxes |
103,637 |
— |
||||||
Other long-term liabilities |
899 |
3,859 |
||||||
Stockholders' / Members' equity |
678,564 |
326,112 |
||||||
Total liabilities and stockholders' / members' equity |
$ |
888,753 |
$ |
518,392 |
Jagged Peak Energy Inc. | |||||||||||||||
Condensed Consolidated and Combined Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Revenues |
|||||||||||||||
Oil, natural gas and NGL sales |
$ |
52,892 |
$ |
18,824 |
$ |
92,092 |
$ |
28,806 |
|||||||
Other operating revenues |
159 |
512 |
347 |
775 |
|||||||||||
Total revenues |
53,051 |
19,336 |
92,439 |
29,581 |
|||||||||||
Operating Expenses |
|||||||||||||||
Lease operating expenses |
3,890 |
1,173 |
5,500 |
2,969 |
|||||||||||
Gathering and transportation expenses |
655 |
218 |
1,047 |
368 |
|||||||||||
Production and ad valorem taxes |
3,537 |
1,131 |
6,177 |
1,832 |
|||||||||||
Exploration |
2 |
1,192 |
8 |
2,474 |
|||||||||||
Depletion, depreciation, amortization and accretion |
22,311 |
9,566 |
36,373 |
18,278 |
|||||||||||
Impairment of unproved oil and natural gas properties |
101 |
64 |
108 |
310 |
|||||||||||
Other operating expenses |
47 |
214 |
182 |
398 |
|||||||||||
General and administrative (before equity-based compensation) |
7,445 |
2,171 |
12,032 |
5,503 |
|||||||||||
General and administrative, equity-based compensation |
10,775 |
— |
419,739 |
— |
|||||||||||
Total operating expenses |
48,763 |
15,729 |
481,166 |
32,132 |
|||||||||||
Income (Loss) from Operations |
4,288 |
3,607 |
(388,727) |
(2,551) |
|||||||||||
Other Income and Expense |
|||||||||||||||
Gain (loss) on commodity derivatives |
26,573 |
(8,877) |
43,615 |
(9,936) |
|||||||||||
Interest expense and other |
(189) |
(479) |
(729) |
(712) |
|||||||||||
Total other income (loss) |
26,384 |
(9,356) |
42,886 |
(10,648) |
|||||||||||
Income (Loss) before Income Taxes |
30,672 |
(5,749) |
(345,841) |
(13,199) |
|||||||||||
Income tax expense |
14,269 |
— |
103,637 |
— |
|||||||||||
Net Income (Loss) |
$ |
16,403 |
$ |
(5,749) |
$ |
(449,478) |
$ |
(13,199) |
|||||||
Net Income (Loss) attributable to Jagged Peak Energy LLC (predecessor) |
$ |
— |
$ |
(5,749) |
$ |
(375,476) |
$ |
(13,199) |
|||||||
Net Income (Loss) attributable to Jagged Peak Energy Inc. Stockholders |
16,403 |
— |
(74,002) |
— |
|||||||||||
Net Income (Loss) |
$ |
16,403 |
$ |
(5,749) |
$ |
(449,478) |
$ |
(13,199) |
|||||||
Net income (loss) attributable to Jagged Peak Energy Inc. Stockholders per common share: |
|||||||||||||||
Basic |
$ |
0.08 |
$ |
(0.35) |
|||||||||||
Diluted |
$ |
0.08 |
$ |
(0.35) |
|||||||||||
Weighted-average common shares outstanding: |
|||||||||||||||
Basic |
212,932 |
212,934 |
|||||||||||||
Diluted |
213,051 |
212,934 |
Jagged Peak Energy Inc. | |||||||||||||||
Consolidated and Combined Statements of Cash Flows | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
June 30, |
June 30, | ||||||||||||||
2017 |
2016 |
2017 |
2016 | ||||||||||||
(in thousands) | |||||||||||||||
Cash Flows from Operating Activities |
|||||||||||||||
Net income (loss) |
$ |
16,403 |
$ |
(5,749) |
$ |
(449,478) |
$ |
(13,199) |
|||||||
Adjustments to reconcile to net cash provided by operating activities: |
|||||||||||||||
Depletion, depreciation, amortization and accretion expense |
22,311 |
9,566 |
36,373 |
18,278 |
|||||||||||
Management incentive unit advance |
— |
(14,712) |
— |
(14,711) |
|||||||||||
Impairment of unproved oil and natural gas properties |
101 |
64 |
108 |
310 |
|||||||||||
Exploratory dry hole costs |
— |
1,192 |
— |
1,192 |
|||||||||||
Amortization of debt issuance costs |
143 |
56 |
260 |
87 |
|||||||||||
Deferred income taxes |
14,269 |
— |
103,637 |
— |
|||||||||||
Equity-based compensation |
10,775 |
— |
419,739 |
— |
|||||||||||
(Gain) Loss on commodity derivatives |
(26,573) |
8,877 |
(43,615) |
9,936 |
|||||||||||
Net cash receipts (payments) on settled derivatives |
1,567 |
(822) |
496 |
(822) |
|||||||||||
Other |
(44) |
(39) |
(83) |
(79) |
|||||||||||
Change in operating assets and liabilities: |
|||||||||||||||
Accounts receivable and other current assets |
(2,385) |
(3,082) |
(8,710) |
(810) |
|||||||||||
Other assets |
(119) |
1 |
(119) |
11 |
|||||||||||
Accounts payable and accrued liabilities |
1,856 |
888 |
1,397 |
1,111 |
|||||||||||
Net cash provided by operating activities |
38,304 |
(3,760) |
60,005 |
1,304 |
|||||||||||
Cash Flows from Investing Activities |
|||||||||||||||
Leasehold and acquisitions costs |
(27,340) |
(6,945) |
(52,968) |
(23,934) |
|||||||||||
Development of oil and natural gas properties |
(120,919) |
(36,873) |
(195,212) |
(54,155) |
|||||||||||
Other capital expenditures |
(693) |
(1,014) |
(1,456) |
(1,691) |
|||||||||||
Proceeds from sale of oil and natural gas properties |
— |
— |
— |
— |
|||||||||||
Net cash used in investing activities |
(148,952) |
(44,832) |
(249,636) |
(79,780) |
|||||||||||
Cash Flows from Financing Activities |
|||||||||||||||
Proceeds from issuance of common stock in IPO, net of underwriting fees |
— |
— |
401,625 |
— |
|||||||||||
Proceeds from common units issued |
— |
14,942 |
— |
31,542 |
|||||||||||
Proceeds from senior secured revolving credit facility |
— |
25,000 |
10,000 |
40,000 |
|||||||||||
Repayment of senior secured revolving credit facility |
— |
— |
(142,000) |
— |
|||||||||||
Debt issuance costs |
(421) |
(712) |
(1,421) |
(738) |
|||||||||||
Costs related to initial public offering |
(656) |
— |
(3,216) |
— |
|||||||||||
Employee tax withholding for settlement of equity compensation awards |
(88) |
— |
(88) |
— |
|||||||||||
Net cash provided by financing activities |
(1,165) |
39,230 |
264,900 |
70,804 |
|||||||||||
Net Change in Cash and Cash Equivalents |
(111,813) |
(9,362) |
75,269 |
(7,672) |
|||||||||||
Cash and Cash Equivalents, Beginning of Period |
198,809 |
15,855 |
11,727 |
14,165 |
|||||||||||
Cash and Cash Equivalents, End of Period |
$ |
86,996 |
$ |
6,493 |
$ |
86,996 |
$ |
6,493 |
Jagged Peak Energy Inc. |
||||||||||||||||
Reconciliation of Adjusted Net Income and Adjusted EBITDAX |
||||||||||||||||
(Unaudited) |
||||||||||||||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2017 |
2016 |
2017 |
2016 |
|||||||||||||
(in thousands) |
||||||||||||||||
Adjusted Net Income (Loss) |
||||||||||||||||
Net Income (Loss) |
$ |
16,403 |
$ |
(5,749) |
$ |
(449,478) |
$ |
(13,199) |
||||||||
Adjustments to reconcile to Adjusted Net Income |
||||||||||||||||
Impairment of unproved oil and natural gas properties |
101 |
64 |
108 |
310 |
||||||||||||
Exploratory dry hole costs |
— |
1,192 |
— |
1,192 |
||||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
(25,006) |
8,055 |
(43,119) |
9,114 |
||||||||||||
Equity-based compensation expense related to allocated management incentive units (1) |
9,513 |
— |
418,477 |
— |
||||||||||||
Deferred income tax expense recorded in connection with the Company's initial public offering |
— |
— |
79,106 |
— |
||||||||||||
Income tax effect for the above items |
8,844 |
— |
15,272 |
— |
||||||||||||
Adjusted Net Income (Loss) |
$ |
9,855 |
$ |
3,562 |
$ |
20,366 |
$ |
(2,583) |
||||||||
Adjusted Net Income (Loss) per basic common share |
$ |
0.05 |
$ |
0.10 |
||||||||||||
Adjusted Net Income (Loss) per diluted common share |
$ |
0.05 |
$ |
0.10 |
||||||||||||
Basic common shares |
212,932 |
212,934 |
||||||||||||||
Diluted common shares |
213,051 |
212,934 |
||||||||||||||
Adjusted EBITDAX |
||||||||||||||||
Net Income (Loss) |
$ |
16,403 |
$ |
(5,749) |
$ |
(449,478) |
$ |
(13,199) |
||||||||
Adjustments to reconcile to Adjusted EBITDAX |
||||||||||||||||
Interest expense, net of capitalized |
432 |
479 |
1,143 |
712 |
||||||||||||
Income tax expense (benefit) |
14,269 |
— |
103,637 |
— |
||||||||||||
Depletion, depreciation, amortization and accretion |
22,311 |
9,566 |
36,373 |
18,278 |
||||||||||||
Impairment of unproved oil and natural gas properties |
101 |
64 |
108 |
310 |
||||||||||||
Exploration expenses |
2 |
1,192 |
8 |
2,474 |
||||||||||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
(25,006) |
8,055 |
(43,119) |
9,114 |
||||||||||||
Equity-based compensation expense (2) |
10,775 |
— |
419,739 |
— |
||||||||||||
Adjusted EBITDAX |
$ |
39,287 |
$ |
13,607 |
$ |
68,411 |
$ |
17,689 |
(1) - In connection with the Company's initial public offering, management incentive units were converted to common stock. A portion of this common stock was transferred to JPE Management Holdings LLC and became subject to the terms and conditions of the amended and restated JPE Management Holdings LLC limited liability company agreement. The compensation expense related to these shares is recognized ratably as they vest. Only compensation expense related to management incentive units allocated at the time of the IPO is excluded from the calculation of adjusted net income. |
(2) - Equity-based compensation expense for the second quarter of 2017 includes $9.9 million related to management incentive units that converted to common stock in connection with the Company's initial public offering and $0.8 million related to equity awards issued under the Company's long-term incentive plan. |
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-inc-announces-second-quarter-2017-financial-and-operating-results-300502325.html
SOURCE Jagged Peak Energy Inc.
DENVER, July 18, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") today announced that it will host a conference call to discuss second quarter 2017 financial and operating results on Thursday, August 10, 2017 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time). The Company plans to announce second quarter 2017 results on Wednesday, August 9, 2017 after market close.
The call will be webcast live and accessible on the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6838 ten minutes before the scheduled start time (international callers dial 1-631-891-4304).
A telephone replay will be available through August 17, 2017 by dialing 1-844-512-2921 (1-412-317-6671 international) with the passcode 10003290. Additionally, a replay will be available on the Company's website approximately two hours after the conference call.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas. For more information, visit our website at www.jaggedpeakenergy.com.
View original content with multimedia:http://www.prnewswire.com/news-releases/jagged-peak-energy-schedules-second-quarter-2017-earnings-conference-call-for-august-10-2017-300490071.html
SOURCE Jagged Peak Energy Inc.
NEW YORK, June 7, 2017 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Jagged Peak Energy Inc. ("Jagged" or the "Company") (NYSE: JAG). Such investors are encouraged to obtain additional information and assist the investigation by visiting the firm's site: www.bgandg.com/jag.
The investigation concerns whether Jagged and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On January 27, 2017, Jagged opened its initial public offering ("IPO") of common stock, began trading on the New York Stock Exchange, and sold 31,599,334 shares at $15.00 per share, raising $474 million of gross proceeds. Since the IPO, Jagged stock has dropped about 20% in light of issues concerning the positioning of its acreage in the Delaware Basin.
If you are aware of any facts relating to this investigation, or purchased shares of Jagged, you can assist this investigation by visiting the firm's site: www.bgandg.com/jag. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
SOURCE Bronstein, Gewirtz & Grossman, LLC
DENVER, May 11, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the first quarter ended March 31, 2017. The financial and operating results discussed in this news release include the results for Jagged Peak Energy LLC (the "Predecessor") which became a wholly owned subsidiary of Jagged Peak Energy Inc. as the result of transactions associated with the Company's initial public offering ("IPO").
First Quarter 2017 Highlights
Commenting on the first quarter results, Joe Jaggers, Chairman, Chief Executive Officer and President of Jagged Peak said, "We built on our strong full-year 2016 results during the first quarter of 2017. The Company saw production climb 139% year-over-year, and continues to produce one of the highest oil cuts in the Permian Basin. Our superior oil cut and focus on infrastructure resulted in an adjusted EBITDAX margin of $33.07 per Boe, which is truly best-in-class. Another important driver of our high margin is that lease operating expenses continue to be very attractive. First quarter LOE reflects the continued focus on operating costs and the benefit of low cost, initial production from several wells that were placed on production over the last several months. During the quarter, our multi-rig program resulted in 12 gross operated spuds with an average lateral length of 7,403', and 7 gross operated wells completed with an average lateral length of 7,966'. On the land front, our team added 2,153 net leasehold acres at attractive prices. These additional acres not only add drilling locations to our extensive inventory, but also allow us to drill longer lateral lengths and to increase our working interest in certain existing locations."
Regarding Jagged Peak's plan going forward, Mr. Jaggers continued, "Our strong operating results, premier acreage position and experienced organization are evident in our outstanding financial results. We remain well capitalized following our IPO, and we have ample liquidity to fund our organic growth plans through the end of 2018. As evidenced by our first quarter results and our current production rate of over 14,500 Boe/d to date in May, I have the utmost confidence in our team's ability to continue to execute on our development plan. Needless to say, we are excited to have the operating, financial, organizational and asset resources to grow the Company as the industry leader in the basin."
Operating Update
The Company began 2017 operating three drilling rigs and added a fourth operated rig in January and a fifth operated rig in March. We have the flexibility to adjust our drilling program based on market conditions and have opportunistically operated up to seven rigs at one point this year but expect to operate a five to six-rig drilling program throughout the remainder of 2017.
The Company spud 12 gross operated horizontal wells and completed 7 gross operated horizontal wells during the quarter. Of the 12 operated wells spud, 8 targeted the Wolfcamp A formation, 3 targeted the Wolfcamp B formation and 1 targeted the 2nd Bone Spring formation. All 7 operated completions during the quarter were in the lower Wolfcamp A formation. At the end of the first quarter, 7 Wolfcamp A wells and 2 Wolfcamp B wells were awaiting completion. Since the end of the quarter through May 5, we spud 7 and completed 5 additional gross operated horizontal wells.
The Company has contracted to operate multiple fracturing fleets during 2017 to complete wells in a timely manner following the conclusion of drilling operations. In addition, the Company has a water infrastructure system in place that is capable of supplying fresh water and disposing of produced water, both at advantaged costs, to support its anticipated development program.
Notable recent individual well results and production activity include the following:
Since January 1, 2017, the Company has ramped up production with 12 new operated wells coming online in 2017. The Company is currently producing from 32 wells drilled and completed by the Company, up from 20 wells at the end of 2016. During May to date, the Company's estimated net production is over 14,500 Boe per day.
Financial Results
On February 1, 2017, Jagged Peak completed its IPO in which 31.6 million shares of common stock were sold including 28.3 million shares sold by the Company and 3.3 million shares sold by certain selling stockholders. Gross proceeds of the IPO to the Company were $425.0 million which resulted in net proceeds of $397.0 million after deducting offering expenses and underwriting discounts and commissions. The net proceeds were applied to repay the then outstanding balance on the Predecessor's credit facility of $142.0 million, and the remaining net proceeds are being used to fund a portion of the Company's 2017 capital expenditure program and for other general corporate purposes.
In connection with the Company's IPO, the Company, as parent guarantor, and the Predecessor, as borrower, amended and restated the Predecessor's credit facility. The amended and restated credit facility matures in February 2022 and has an aggregate principal commitment of $1.0 billion. As a result of the regularly scheduled semiannual borrowing base determination, the borrowing base and lender commitments were increased from $180.0 million to $250.0 million on April 28, 2017. The credit facility is currently undrawn.
For the first quarter 2017, the Company reported a net loss of $465.9 million, which includes non-cash equity based compensation expense of $409.0 million and deferred tax expense of $79.1 million, which were both recorded as a result of the IPO. Net loss for the first quarter of 2016 was $7.5 million.
For the first quarter 2017, the Company reported adjusted net income (a non-GAAP measure) of $10.5 million, or $0.05 per pro forma common share. Adjusted net income (a non-GAAP measure) eliminates certain non-cash and non-recurring items such as one-time equity-based compensation expense and income tax expense related to the IPO, non-cash mark to market gains or losses on commodity derivatives, and impairment expense, further adjusted for the associated changes in estimated income tax expense. For the first quarter 2016, the Company reported an adjusted net loss (a non-GAAP measure) of $6.1 million.
Adjusted EBITDAX (a non-GAAP measure) for the first quarter of 2017 was $29.1 million, an increase of $25.0 million from the first quarter of 2016 and $13.1 million from the fourth quarter 2016.
Adjusted EBITDAX and adjusted net income (loss) are non-GAAP measures. Please reference the reconciliations to the most directly comparable GAAP measures at the end of this release.
Capital Expenditures
Capital expenditures for oil and gas activities were $122.5 million for the three months ended March 31, 2017 and included completing 7 gross (6.9 net) wells and 17 gross (15.6 net) wells that were in various stages of being drilled or completed at the end of the quarter. Capital expenditures included $91.3 million for development costs, $8.4 million for infrastructure costs and $22.8 million for leasehold costs. The $22.8 million spent on leasehold acquisitions added 2,153 net undeveloped acres, increasing the Company's leasehold position to approximately 68,546 net acres as of March 31, 2017. At the beginning of the year, the Company had estimated $30.0 million to $35.0 million would be spent on undeveloped leasehold additions in 2017. The ultimate amount that will be spent on leasehold additions in 2017 will be determined based on the Company's ability to add high-quality acreage at attractive prices.
Three months | ||||
(in thousands) | ||||
Capital Expenditures for Oil and Gas Activities |
||||
Acquisition costs: |
||||
Proved property |
$ - | |||
Unproved property |
22,810 | |||
Development costs |
91,281 | |||
Infrastructure costs |
8,371 | |||
Exploration costs |
6 | |||
Total oil and gas capital expenditures |
$ 122,468 |
2017 Operating Guidance
The Company reaffirms full-year 2017 guidance as follows:
The Company is improving its full year 2017 LOE guidance to $2.75 to $3.50 per Boe, a decrease of $0.25 per Boe at the mid-point from previously reported guidance.
The Company expects second quarter 2017 production to average 14,000 to 15,000 Boe/d, an increase of 4,715 Boe/d, or 48%, at the mid-point compared to first quarter production.
Commodity Hedges
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. For the last three quarters of 2017, 9,163 barrels per day of oil are hedged at an average WTI price of $51.87 per barrel. For 2018, 8,420 barrels per day of oil are hedged at an average WTI price of $53.38 per barrel. In addition, for 2018, the Company has hedges in place for 365,000 barrels of oil to hedge the price differential between the Cushing and Midland oil prices at $(1.39) per barrel.
As of May 5, 2017, the Company had the following commodity hedges in place for future production:
Production Period |
Volumes |
Weighted Average | |||
(Bbls) |
($/Bbl) | ||||
Oil Swaps: |
|||||
Second quarter 2017 |
588,175 |
50.75 | |||
Third quarter 2017 |
897,450 |
51.99 | |||
Fourth quarter 2017 |
1,034,200 |
52.41 | |||
Remainder 2017 (2Q - 4Q) |
2,519,825 |
51.87 | |||
First quarter 2018 |
775,250 |
52.82 | |||
Second quarter 2018 |
729,500 |
52.80 | |||
Third quarter 2018 |
791,200 |
53.62 | |||
Fourth quarter 2018 |
777,400 |
54.22 | |||
Full year 2018 |
3,073,350 |
53.38 | |||
Full year 2019 |
1,277,500 |
53.51 | |||
Oil Basis Swaps: |
|||||
Full year 2018 |
365,000 |
(1.39) |
Conference Call
Jagged Peak will host a conference call and webcast to discuss its first quarter 2017 financial and operating results on Friday, May 12, 2017 at 9:00 am MDT (11:00 am EDT). The call will be webcast and accessible via the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6837 ten minutes before the scheduled start time (international callers, dial 1-631-891-4304). A telephonic replay will be available from 12:00 noon MDT (2:00 pm EDT) on Friday, May 12, 2017 through Friday, May 19, 2017 at 10:00 pm MDT (12:00 midnight EDT). To access the replay, dial 1-844-512-2921 (international callers dial, 1-412-317-6671) and enter confirmation code 10002901. A live broadcast of the earnings conference call will also be available via the Company's website at www.jaggedpeakenergy.com under the "Investor Relations" section of the site. A replay will also be available on the website following the call. The presentation material for this conference call will also be available on the Company's website.
Upcoming Investor Events
Executive Vice President and Chief Financial Officer, Bob Howard will be participating at the RBC Capital Markets Global Energy & Power Conference on June 6, 2017. The presentation used for this event will be available on the Company's website at www.jaggedpeakenergy.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, guidance estimates including all statements under the heading "2017 Operating Guidance" and reaffirmations of production guidance; expected capital expenditures; drilling, completion and development expectations; use of IPO proceeds; sufficiency of the Company's liquidity position; ability of Jagged Peak's water infrastructure system to support operations; ability to realize value of Jagged Peak's acreage position; ability to improve well results, increase cash flow and reduce costs; and the impact and execution of the Company's hedging strategies. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2016 Annual Report on Form 10-K and the Form 10-Q for the quarter ended March 31, 2017, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, equity-based compensation expense, income taxes and net gains or losses on derivatives less net cash from derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows them to more effectively evaluate our operating performance and compare the results or our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a performance measure used by management to evaluate financial performance, prior to non-cash gains or losses on commodity derivatives, impairment expense, gain or loss on the sale of property, certain one-time items, such as equity-based compensation and income tax expense related to the IPO, and the associated changes in estimated income tax. Management believes adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Jagged Peak Energy Inc. | |||||
Selected Operating Highlights | |||||
(Unaudited) | |||||
Three Months Ended | |||||
March 31, | |||||
2017 |
2016 | ||||
Production Data: |
|||||
Oil (MBbls) |
745 |
311 | |||
Natural gas (MMcf) |
370 |
158 | |||
NGLs (MBbls) |
74 |
36 | |||
Combined volumes (MBoe) |
881 |
373 | |||
Daily combined volumes (Boe/d) |
9,785 |
4,102 | |||
Average Sales Prices (before the effects of realized hedges): |
|||||
Oil (per Bbl) |
$49.33 |
$29.81 | |||
Natural gas (per Mcf) |
2.48 |
1.78 | |||
NGLs (per Bbl) |
20.61 |
11.92 | |||
Combined (per Boe) |
44.52 |
26.74 | |||
Average Sales Prices (after the effects of realized hedges): |
|||||
Oil (per Bbl) |
$47.89 |
$29.81 | |||
Natural gas (per Mcf) |
2.48 |
1.78 | |||
NGLs (per Bbl) |
20.61 |
11.92 | |||
Combined (per Boe) |
43.30 |
26.74 | |||
Average Operating Costs (per Boe): |
|||||
Lease operating expenses |
$ 1.83 |
$ 4.81 | |||
Gathering, transportation and processing expense |
0.45 |
0.40 | |||
Production and ad valorem tax expenses |
3.00 |
1.88 | |||
Depreciation, depletion, amortization and accretion expense |
15.97 |
23.34 | |||
General and administrative expense (before equity-based compensation expense) |
5.21 |
8.93 |
Jagged Peak Energy Inc. | |||||
Condensed Consolidated and Combined Balance Sheets | |||||
(Unaudited) | |||||
March 31, 2017 |
December 31, | ||||
(in thousands) | |||||
Assets: |
|||||
Cash and cash equivalents |
$198,809 |
$ 11,727 | |||
Other current assets |
22,280 |
13,739 | |||
Property and equipment, net |
585,198 |
476,593 | |||
Other noncurrent assets |
8,194 |
16,333 | |||
Total assets |
$814,481 |
$ 518,392 | |||
Liabilities and Stockholders' / Members' Equity: |
|||||
Current liabilities |
$ 72,366 |
$ 56,421 | |||
Long-term debt |
- |
132,000 | |||
Deferred income taxes |
89,368 |
- | |||
Other long-term liabilities |
1,273 |
3,859 | |||
Stockholders' / Members' equity |
651,474 |
326,112 | |||
Total liabilities and stockholders' / members' equity |
$814,481 |
$ 518,392 |
Jagged Peak Energy Inc. | ||||||
Condensed Consolidated and Combined Statements of Operations | ||||||
(Unaudited) | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2017 |
2016 | |||||
(in thousands, except per | ||||||
Revenues |
||||||
Oil, natural gas and NGL sales |
$ 39,200 |
$ 9,982 | ||||
Other operating revenues |
188 |
263 | ||||
Total revenues |
39,388 |
10,245 | ||||
Operating Expenses |
||||||
Lease operating expenses |
1,610 |
1,796 | ||||
Gathering and transportation expenses |
392 |
150 | ||||
Production and ad valorem taxes |
2,640 |
701 | ||||
Depletion, depreciation, amortization and accretion |
14,062 |
8,712 | ||||
Impairment and dry hole costs |
7 |
246 | ||||
Other operating expenses |
141 |
1,466 | ||||
General and administrative, cash |
4,587 |
3,332 | ||||
General and administrative, non-cash equity-based compensation |
408,964 |
- | ||||
Total operating expenses |
432,403 |
16,403 | ||||
Income (Loss) from Operations |
(393,015) |
(6,158) | ||||
Other Income and Expense |
||||||
Gain (loss) on commodity derivatives |
17,042 |
(1,059) | ||||
Interest expense and other |
(540) |
(233) | ||||
Total other income |
16,502 |
(1,292) | ||||
Income (Loss) before Income Tax |
(376,513) |
(7,450) | ||||
Income tax expense |
89,368 |
- | ||||
Net Income (Loss) |
$(465,881) |
$(7,450) | ||||
Net Income (Loss) attributable to Jagged Peak Energy LLC |
$(375,476) |
$(7,450) | ||||
Net Income (Loss) attributable to Jagged Peak Energy Inc. |
(90,405) |
- | ||||
Net Income (Loss) |
$(465,881) |
$(7,450) | ||||
Net Income (Loss) attributable to Jagged Peak Energy Inc. Stockholders per Common Share |
$ (0.42) |
|||||
Weighted Average Common Shares Outstanding |
212,938 |
Jagged Peak Energy Inc. | |||||||
Consolidated and Combined Statements of Cash Flows | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2017 |
2016 | ||||||
(in thousands) | |||||||
Cash Flows from Operating Activities |
|||||||
Net income (loss) |
$(465,881) |
$ (7,450) | |||||
Adjustments to reconcile to net cash provided by operating activities: |
|||||||
Depletion, depreciation, amortization and accretion expense |
14,062 |
8,712 | |||||
Impairment of oil and natural gas properties and dry hole costs |
7 |
246 | |||||
Amortization of debt issuance costs |
117 |
31 | |||||
Deferred income taxes |
89,368 |
- | |||||
Equity-based compensation |
408,964 |
- | |||||
(Gain) loss on commodity derivatives |
(17,042) |
1,059 | |||||
Net cash receipts (payments) on settled derivatives |
(1,071) |
- | |||||
Other |
(39) |
(39) | |||||
Change in operating assets and liabilities: |
|||||||
Accounts receivable and other current assets |
(6,325) |
2,272 | |||||
Other assets |
- |
10 | |||||
Accounts payable and accrued liabilities |
(459) |
223 | |||||
Net cash provided by operating activities |
21,701 |
5,064 | |||||
Cash Flows from Investing Activities |
|||||||
Leasehold and acquisitions costs |
(25,628) |
(16,989) | |||||
Development of oil and natural gas properties |
(74,293) |
(17,282) | |||||
Other capital expenditures |
(763) |
(677) | |||||
Net cash used in investing activities |
(100,684) |
(34,948) | |||||
Cash Flows from Financing Activities |
|||||||
Proceeds from issuance of common stock in IPO, net of underwriting fees |
401,625 |
- | |||||
Proceeds from common units |
- |
16,600 | |||||
Proceeds from senior secured revolving credit facility |
10,000 |
15,000 | |||||
Repayment of senior secured revolving credit facility |
(142,000) |
- | |||||
Debt issuance costs |
(1,000) |
(26) | |||||
Costs related to initial public offering |
(2,560) |
- | |||||
Net cash provided by financing activities |
266,065 |
31,574 | |||||
Net Change in Cash and Cash Equivalents |
187,082 |
1,690 | |||||
Cash and Cash Equivalents, Beginning of Period |
11,727 |
14,165 | |||||
Cash and Cash Equivalents, End of Period |
$ 198,809 |
$15,855 |
Jagged Peak Energy Inc. | |||||
Reconciliation of Adjusted Net Income and Adjusted EBITDAX | |||||
(Unaudited) | |||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." | |||||
Three Months Ended | |||||
March 31, | |||||
2017 |
2016 | ||||
(in thousands) | |||||
Adjusted net income (loss) |
|||||
Net Income (Loss) |
$(465,881) |
$(7,450) | |||
Adjustments to reconcile to Adjusted Net Income |
|||||
Impairment of oil and natural gas properties and dry hole costs |
7 |
246 | |||
(Gain) loss on commodity derivatives, less net cash from derivative settlements |
(18,113) |
1,059 | |||
Equity-based compensation expense related to management incentive units that converted to common stock in connection with the Company's initial public offering(1) |
408,964 |
- | |||
Deferred income tax expense recorded in connection with the Company's initial public offering |
79,106 |
- | |||
Income tax effect for the above items |
6,425 |
- | |||
Adjusted net income (loss) |
$ 10,508 |
$(6,145) | |||
Adjusted net income (loss) per pro forma common share |
$ 0.05 |
||||
Pro Forma Common Shares(2) |
212,938 |
||||
Adjusted EBITDAX |
|||||
Net Income (Loss) |
$(465,881) |
$(7,450) | |||
Adjustments to reconcile to Adjusted EBITDAX |
|||||
Interest expense, net of capitalized |
711 |
233 | |||
Income tax expense (benefit) |
89,368 |
- | |||
Depletion, depreciation, amortization and accretion |
14,062 |
8,712 | |||
Impairment of oil and natural gas properties and dry hole costs |
7 |
246 | |||
Exploration expenses |
6 |
1,282 | |||
(Gain) loss on commodity derivatives, less net cash from derivative settlements |
(18,113) |
1,059 | |||
Equity-based compensation expense related to management incentive units that converted to common stock in connection with the Company's initial public offering(1) |
408,964 |
- | |||
Adjusted EBITDAX |
$ 29,124 |
$ 4,082 |
(1) - The Company completed a corporate reorganization in connection with its initial public offering in which the management incentive units of the Predecessor were converted to common stock of the Company. As a result, the Company recorded equity-based compensation expense of $379.0 million at the time of the IPO and an additional $29.9 million of equity-based compensation expense for the period subsequent to the IPO. | |||||
(2) - Pro forma common shares are the number of shares outstanding immediately following the IPO and assumed to be outstanding for the entire quarter. |
SOURCE Jagged Peak Energy Inc.
DENVER, April 25, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") today announced that it will host a conference call to discuss first quarter 2017 financial and operating results on Friday, May 12, 2017 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time). The Company plans to announce first quarter 2017 results on Thursday, May 11, 2017 after market close.
The call will be webcast live and accessible on the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6837 ten minutes before the scheduled start time (international callers dial 1-631-891-4304).
A replay will be available on the Company's website approximately two hours after the conference call and will be available through Friday, June 2, 2017. Additionally, a telephone replay will be available through May 19, 2017 by dialing 1-844-512-2921 (1-412-317-6671 international) with the passcode 10002901.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas. For more information, visit our website at www.jaggedpeakenergy.com.
SOURCE Jagged Peak Energy Inc.
DENVER, March 23, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") today announced financial and operating results for the fourth quarter and full-year ended December 31, 2016, year-end 2016 proved reserves and 2017 guidance. The financial and operating results discussed in this news release report the results for Jagged Peak Energy LLC (the "Predecessor") which became a wholly owned subsidiary of Jagged Peak Energy Inc. as the result of transactions associated with the Company's initial public offering ("IPO") on January 27, 2017.
Fourth Quarter and Full-Year 2016 Highlights
Commenting on the fourth quarter and full-year results, Joe Jaggers, Chairman, Chief Executive Officer and President of Jagged Peak said, "Jagged Peak completed a transformational year during which we continued to increase our high-quality contiguous acreage position in the high oil content area of the Southern Delaware Basin, initiated a continuous multi-rig development drilling program and continued to optimize drilling and completion techniques. We have achieved continuous improvements in estimated ultimate recoveries (EURs) and drilling and completion costs and we are achieving consistent well results across our acreage position. These positive results are evidenced by our ability to reduce our depletion, depreciation and amortization expense rate by 24% to $19.67 per Boe for 2016. We continue to be a low-cost leader in the industry as evidenced by our peer leading LOE per Boe. As a part of our continued focus to reduce costs and drive long-term efficiencies, we expanded our extensive water infrastructure system which provides a low cost, dependable source of water and the ability to internally dispose of produced water."
2017 Guidance Highlights
Regarding Jagged Peak's plan going forward, Mr. Jaggers continued, "With financing from our recently completed IPO, we are well positioned to realize the value of our acreage positon as we ramp up production for years to come. We continually focus our efforts on well improvements while reducing both development and operating costs and we have an on-going effort to evaluate additional potential from our assets through well down-spacing, pad drilling and delineating prospective formations that are above and below our current target zones. In addition to optimizing the development of our current leasehold positon, we continue to find opportunities to grow our acreage position and, since the end of 2016, we have added 2,023 net core acres bringing our aggregate acreage to 68,416 net acres. Needless to say, we are excited to have the operating, financial and asset resources to grow the Company to be an industry leader in the Southern Delaware Basin."
Operating Update
Throughout the fourth quarter of 2016, the Company operated its drilling activity with three rigs. The Company drilled five gross horizontal wells and completed five gross horizontal wells. These completions consisted of wells completed in the lower Wolfcamp A formation and one well drilled and completed in the lower Wolfcamp B formation. In January and March 2017, respectively, the Company added a fourth and fifth operated rig and expects to operate a five to six-rig drilling program during the remainder of 2017.
The Company recently contracted to operate two to four fracturing fleets as needed to complete wells in a timely manner following conclusion of drilling operations. In addition, the Company has a water infrastructure system in place that is capable of supplying fresh water and disposing of produced water as needed to support its anticipated development program.
The Company continues to reduce drilling times reflecting the increased efficiency of its development program. During the fourth quarter, average drilling times were 29 days per well from spud to rig release compared to 40 days per well for the first nine months of the year.
Notable recent individual well results and production activity include the following:
Since January 1, 2017, the Company has ramped up oil production with five wells coming on line in 2017. The Company is currently producing from 25 wells drilled and completed by the Company, up from 20 wells at the end of 2016. For the last seven days of 2016, the Company's net operated oil production from all wells was approximately 6,470 barrels per day. For the seven days ended March 15, 2017, the Company's estimated net operated oil production was approximately 10,510 barrels per day. On March 19, 2017, the Company began producing two additional operated wells in its Whiskey River area.
Financial Results
On January 27, 2017, Jagged Peak completed its IPO selling 31.6 million shares of common stock which included 28.3 million shares sold by the Company and 3.3 million shares sold by certain selling stockholders. Gross proceeds of the IPO to the Company were $425.0 million which resulted in net proceeds of $397.4 million after deducting offering expenses and underwriting discounts and commissions. The net proceeds were applied to repay the then outstanding balance on the Predecessor's credit facility of $142.0 million, and the remaining net proceeds will be used to fund a portion of the Company's 2017 capital expenditure program and for other general corporate purposes.
Also in connection with the Company's IPO in January 2017, the Company, as parent guarantor, and the Predecessor, as borrower, amended and restated the Predecessor's credit facility. The amended and restated credit facility matures in February 2022 and has a borrowing base of $180.0 million which is presently undrawn.
For the fourth quarter of 2016, the Company reported a net loss of $2.0 million, or $(0.01) per pro forma share. Net loss for the fourth quarter of 2015 was $6.8 million, or $(0.03) per pro forma share. Adjusted EBITDAX (non-GAAP) for the fourth quarter of 2016 was $16.0 million. For 2016, the Company reported a net loss of $9.8 million, or $(0.05) per pro forma share, and Adjusted EBITDAX of $49.0 million. All per share numbers are based on 212.9 million shares that were outstanding immediately following the Company's IPO.
For the fourth quarter of 2016, the Company reported Adjusted net income (non-GAAP) of $3.9 million. Adjusted net income eliminates certain non-cash and non-recurring items such as non-cash gains or losses on derivatives and impairment expense, further adjusted for the associated changes in estimated income tax. For 2016, the Company reported Adjusted net income of $4.7 million.
Adjusted EBITDAX and Adjusted net income are non-GAAP measures. Please reference the reconciliations to the most directly comparable GAAP measures at the end of this release.
Proved Reserves
Proved oil and gas reserves at December 31, 2016 were estimated at 37.7 MMBoe, an increase of 190% from 13.0 MMBoe at December 31, 2015. The composition of the reserves at the end of 2016 were 81% oil, 11% NGL and 8% natural gas. Proved developed reserves increased 146% to 14.5 MMBoe as of December 31, 2016, 38% of total proved reserves.
Jagged Peak's proved reserve estimates as of December 31, 2016 and 2015 were prepared by Ryder Scott Company, L.P. In accordance with the applicable rules of the Securities and Exchange Commission, the reference prices used to determine the reserve quantities and future cash flows were $42.75 per barrel for oil, $2.49 per MMBtu for gas and $42.75 per barrel of natural gas liquids. After considering the applicable differentials, the realized prices were $39.33 per barrel of oil, $2.22 per Mcf of natural gas and $15.48 per barrel of natural gas liquids.
The increase in proved reserves during 2016 is primarily related to increased drilling activity. During 2016, the Company drilled and completed 11 gross (10.9 net) locations, drilled and were awaiting completion on, or were in the process of drilling, 10 gross (9.9 net) wells and added 25 proved undeveloped locations. This activity added approximately 25.2 MMBoe of proved reserves. In addition, the Company added 1.1 MMBoe for revisions of previous reserve estimates as a result of improved well performance.
Oil (MBbls) |
Gas (MMcf) |
Liquids (MBbls) |
Total (MBoe) | ||||
Proved reserves as of December 31, 2015 |
10,493 |
6,157 |
1,491 |
13,011 | |||
Acquisitions of reserves |
340 |
430 |
54 |
466 | |||
Extensions and discoveries |
20,314 |
13,663 |
2,653 |
25,244 | |||
Revisions of previous estimates |
1,035 |
353 |
56 |
1,149 | |||
Sales of reserves |
(75) |
(132) |
(24) |
(121) | |||
Production |
(1,701) |
(952) |
(194) |
(2,054) | |||
Proved reserves as of December 31, 2016 |
30,406 |
19,519 |
4,036 |
37,695 | |||
Proved developed reserves as of December 31, 2016 |
11,916 |
6,566 |
1,491 |
14,501 | |||
Capital Expenditures
Capital expenditures for oil and gas activities were $215.1 million in 2016 and included drilling and completing 11 gross (10.9 net) wells and 10 gross (9.9 net) wells that were in various stages of being drilled or completed at the end of the year. Capital expenditures included $144.7 million for development costs, $13.7 million for infrastructure costs, $7.5 million for proved properties, $47.6 million for leasehold costs and $1.7 million for exploration costs. Capital expenditures for oil and gas activities in the fourth quarter of 2016 were $83.7 million and included drilling and completing 5 gross (5.0 net) wells along with the 10 gross (9.9 net) wells in progress at the end of the year. Capital expenditures for the quarter included $62.0 million for development costs, $6.4 million for infrastructure costs and $15.3 million for leasehold costs.
Three months ended |
Year ended | |||||
(in thousands) | ||||||
Capital Expenditures for Oil and Gas Activities |
||||||
Acquisition costs: |
||||||
Proved property |
$ - |
$ 7,482 | ||||
Unproved property |
15,306 |
47,618 | ||||
Development costs |
61,986 |
144,636 | ||||
Infrastructure costs |
6,401 |
13,713 | ||||
Exploration costs |
10 |
1,673 | ||||
Total oil and gas capital expenditures |
$ 83,703 |
$ 215,122 |
2017 Operating Guidance
Jagged Peak's 2017 guidance is based on developing its acreage position generally on a five to six-rig program for 2017. The Company began the year operating three drilling rigs, is currently operating five rigs and may add a sixth rig as needed during the year. Drilling and completion activities will be primarily focused on continued development of the Wolfcamp A formation along with development of the Wolfcamp B formation and at least one well in the 2nd Bone Spring formation. The Company expects to drill 54 to 58 operated wells with an average approximate 94% working interest and participate in 11 to 15 non-operated wells with an average approximate 40% working interest. Jagged Peak expects the operated wells will be approximately 45 wells in its Whiskey River and Cochise areas and approximately 11 wells in its Big Tex area. The Company expects to operate from two to four fracturing fleets throughout the year depending on well completion requirements.
The Company is providing the following guidance for its full-year 2017 activities.
The Company expects first quarter 2017 production to average 9,100 Boe/d to 9,300 Boe/d.
Commodity Hedges
The Company hedges its oil production to reduce cash flow volatility and to support funding of its capital expenditure program. For 2017, 6,379 barrels per day of oil are hedged at an average WTI price of $51.34 per barrel, which is 43% of the mid-point of the Company's anticipated oil production for the year. For 2018, 5,920 barrels per day of oil are hedged at an average WTI price of $53.91 per barrel. In addition, for 2018 the Company has hedges in place for 365,000 barrels of oil to hedge the price differential between the Cushing and Midland oil prices at $(1.39) per barrel.
As of March 17, 2017, the Company had the following commodity hedges in place for future production:
Production Period |
Volumes |
Weighted Average | |||
(Bbls) |
($/Bbl) | ||||
Oil Swaps: |
|||||
First quarter 2017 |
398,175 |
$ 49.04 | |||
Second quarter 2017 |
496,675 |
50.69 | |||
Third quarter 2017 |
698,450 |
52.00 | |||
Fourth quarter 2017 |
735,200 |
52.38 | |||
Full year 2017 |
2,328,500 |
51.34 | |||
Full year 2018 |
2,160,850 |
53.91 | |||
Full year 2019 |
365,000 |
55.55 | |||
Oil Basis Swaps: |
|||||
Full year 2018 |
365,000 |
(1.39) |
Conference Call
Jagged Peak will host a conference call and webcast to discuss its fourth quarter and full-year 2016 financial and operating results on Friday, March 24, 2017 at 9:00 am MDT (11:00 am EDT). The call will be webcast and accessible via the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6837 ten minutes before the schedule start time (international callers, dial 1-631-891-4304). A telephonic replay will be available from 12:00 noon MDT (2:00 pm EDT) on Friday, March 24, 2017 through Friday, March 31, 2017 at 10:00 pm MDT (12:00 midnight). To access the replay, dial 1-844-512-2921 (international callers dial, 1-412-317-6671) and enter confirmation code 10002570. A live broadcast of the earnings conference call will also be available via the Company's website at www.jaggedpeakenergy.com under the "Investor Relations" section of the site. A replay will also be available on the website following the call. The presentation material for this conference call will also be available on the Company's website.
Upcoming Investor Events
Chairman, President and Chief Executive Officer, Joe Jaggers and other members of the management team will be participating at the 2017 Scotia Howard Weil Energy Conference on March 28, 2017. The presentation used for this event will be available on the Company's website at www.jaggedpeakenergy.com
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Jagged Peak assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. Forward-looking statements in this release include, among other things, guidance estimates; expected capital expenditures; drilling, completion and development expectations; use of IPO proceeds; ability of Jagged Peak's water infrastructure system to support operations; ability to realize value of Jagged Peak's acreage position; ability to improve well results, increase cash flow and reduce costs; and the impact and execution of the Company's hedging strategies. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Jagged Peak. General risk factors include the availability, proximity and capacity of gathering, processing and transportation facilities; the volatility and level of oil, natural gas, and NGL prices, including any impact on the Company's asset carrying values or reserves arising from price declines; uncertainties inherent in projecting future rates of production or other results from drilling and completion activities; the imprecise nature of estimating oil and gas reserves; uncertainties inherent in projecting future drilling and completion activities, costs or results; the availability of drilling, completion, and operating equipment and services; the risks associated with the Company's commodity price risk management strategy; impact of environmental events, governmental and other third-party responses to such events and Jagged Peak's ability to adequately insure against such events; and other such matters discussed in the "Risk Factors" section of Jagged Peak's 2016 Annual Report on Form 10-K, as such risk factors may be updated from time to time in the Company's other periodic reports filed with the Securities and Exchange Commission, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. The forward-looking statements contained in this release speak as of the date of this announcement. Although Jagged Peak may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by applicable securities laws.
Reconciliation of Non-GAAP Financial Measures
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We define Adjusted EBITDAX as net income (loss) before interest expense, net of capitalized interest, depletion, depreciation, amortization and accretion expense, impairment of oil and natural gas properties, exploration expenses, stock-based compensation expense, income taxes and net gains or losses on derivatives less net cash from derivative settlements. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historical costs of depreciable assets and exploration expenses, none of which are components of Adjusted EBITDAX. Our computation of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.
Management believes Adjusted EBITDAX is useful because it allows them to more effectively evaluate our operating performance and compare the results or our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed above from net income in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book value of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance.
Adjusted Net Income
Adjusted net income is a performance measure used by management to evaluate financial performance, prior to non-cash gains or losses on derivatives, impairment expense, gain or loss on the sale of property, certain one-time items and the associated changes in estimated income tax. Management believes Adjusted net income is useful because it may enhance investors' ability to assess historical and future financial performance. Adjusted net income should not be considered an alternative to net income, operating income, or any other measure of financial performance presented in accordance with GAAP or as an indicator of our operating performance.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Jagged Peak Energy LLC | ||||||||
Selected Operating Highlights | ||||||||
(Unaudited) | ||||||||
Three Months Ended |
Year Ended | |||||||
December 31, |
December 31, | |||||||
2016 |
2015 |
2016 |
2015 | |||||
Production Data: |
||||||||
Oil (MBbls) |
492 |
259 |
1,702 |
718 | ||||
Natural gas (MMcf) |
283 |
134 |
953 |
404 | ||||
NGLs (MBbls) |
53 |
32 |
194 |
89 | ||||
Combined volumes (MBoe) |
592 |
313 |
2,054 |
874 | ||||
Daily combined volumes (Boe/d) |
6,438 |
3,399 |
5,613 |
2,395 | ||||
Average Sales Prices (before the effects of realized hedges): |
||||||||
Oil (per Bbl) |
$ 46.47 |
$ 39.01 |
$ 41.18 |
$ 43.92 | ||||
Natural gas (per Mcf) |
2.70 |
1.93 |
2.32 |
2.35 | ||||
NGLs (per Bbl) |
19.68 |
15.21 |
15.81 |
14.93 | ||||
Combined (per Boe) |
41.65 |
34.63 |
36.68 |
38.67 | ||||
Average Sales Prices (after the effects of realized hedges): |
||||||||
Oil (per Bbl) |
$ 44.17 |
$ 46.00 |
$ 39.84 |
$ 52.18 | ||||
Natural gas (per Mcf) |
2.69 |
1.93 |
2.32 |
2.35 | ||||
NGLs (per Bbl) |
19.68 |
15.21 |
15.81 |
14.93 | ||||
Combined (per Boe) |
39.74 |
40.41 |
35.57 |
45.45 | ||||
Average Operating Costs (per Boe): |
||||||||
Lease operating expenses |
$ 3.80 |
$ 2.58 |
$ 3.65 |
$ 3.62 | ||||
Gathering, transportation and processing expense |
0.65 |
0.23 |
0.51 |
0.20 | ||||
Production and ad valorem tax expenses |
1.98 |
2.10 |
2.12 |
2.57 | ||||
Depreciation, depletion, amortization and accretion expense |
18.55 |
26.21 |
19.67 |
25.94 | ||||
General and administrative expense |
6.44 |
4.93 |
5.69 |
8.52 |
Jagged Peak Energy LLC | |||||
Consolidated Condensed Balance Sheets | |||||
(Unaudited) | |||||
As of December 31, | |||||
2016 |
2015 | ||||
(in thousands) | |||||
Assets: |
|||||
Cash and cash equivalents |
$ 11,727 |
$ 14,165 | |||
Other current assets |
13,739 |
8,509 | |||
Property and equipment, net |
476,593 |
304,389 | |||
Other noncurrent assets |
16,333 |
669 | |||
Total assets |
$ 518,392 |
$ 327,732 | |||
Liabilities and Stockholders' Equity: |
|||||
Current liabilities |
$ 56,421 |
$ 22,623 | |||
Long-term debt |
132,000 |
20,000 | |||
Other long-term liabilities |
3,859 |
779 | |||
Members' equity |
326,112 |
284,330 | |||
Total liabilities and members' equity |
$ 518,392 |
$ 327,732 |
Jagged Peak Energy LLC | |||||||||
Consolidated Statements of Operations | |||||||||
(Unaudited) | |||||||||
Three Months Ended |
Year Ended | ||||||||
December 31, |
December 31, | ||||||||
2016 |
2015 |
2016 |
2015 | ||||||
(in thousands, except per share amounts) | |||||||||
Revenues |
|||||||||
Oil, natural gas and NGL sales |
$ 24,671 |
$ 10,828 |
$ 75,359 |
$ 33,811 | |||||
Other operating revenues |
206 |
30 |
1,163 |
40 | |||||
Total revenues |
24,877 |
10,858 |
76,522 |
33,851 | |||||
Operating Expenses |
|||||||||
Lease operating expenses |
2,251 |
808 |
7,505 |
3,165 | |||||
Gathering and transportation expenses |
384 |
73 |
1,046 |
171 | |||||
Production and ad valorem taxes |
1,172 |
656 |
4,345 |
2,244 | |||||
Depletion, depreciation, amortization and accretion |
10,987 |
8,197 |
40,417 |
22,685 | |||||
Impairment and dry hole costs |
55 |
6,482 |
1,564 |
6,489 | |||||
Other operating expenses |
92 |
4 |
1,941 |
261 | |||||
General and administrative |
3,812 |
1,540 |
11,690 |
7,446 | |||||
Total operating expenses |
18,753 |
17,760 |
68,508 |
42,461 | |||||
Income (Loss) from Operations |
6,124 |
(6,902) |
8,014 |
(8,610) | |||||
Other Income and Expense |
|||||||||
Gain (loss) on commodity derivatives |
(6,937) |
237 |
(15,145) |
1,323 | |||||
Interest expense and other |
(1,158) |
(120) |
(2,629) |
(197) | |||||
Total other income |
(8,095) |
117 |
(17,774) |
1,126 | |||||
Net Income (Loss) |
$ (1,971) |
$ (6,785) |
$ (9,760) |
$ (7,484) | |||||
Net Income (Loss) per Pro Forma Common Share |
$ (0.01) |
$ (0.03) |
$ (0.05) |
$ (0.04) | |||||
Pro Forma Common Shares |
212,938 |
212,938 |
212,938 |
212,938 |
Jagged Peak Energy LLC | ||||||||||
Consolidated Statements of Cash Flows | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended |
Year Ended | |||||||||
December 31, |
December 31, | |||||||||
2016 |
2015 |
2016 |
2015 | |||||||
(in thousands) | ||||||||||
Cash Flows from Operating Activities |
||||||||||
Net income (loss) |
$ (1,971) |
$ (6,785) |
$ (9,760) |
$ (7,484) | ||||||
Adjustments to reconcile to net cash provided by operating activities: |
||||||||||
Depletion, depreciation, amortization and accretion expense |
10,987 |
8,197 |
40,417 |
22,685 | ||||||
Management incentive unit advance |
- |
- |
(14,712) |
- | ||||||
Impairment of oil and natural gas properties and dry hole costs |
55 |
6,482 |
1,564 |
6,489 | ||||||
Amortization of debt issuance costs |
96 |
31 |
260 |
61 | ||||||
(Gain) Loss on commodity derivatives |
6,937 |
(237) |
15,145 |
(1,323) | ||||||
Net cash receipts (payments) on settled derivatives |
(1,133) |
1,808 |
(2,292) |
5,935 | ||||||
Other |
(40) |
(39) |
(160) |
(155) | ||||||
Change in operating assets and liabilities: |
||||||||||
Accounts receivable and other current assets |
(2,043) |
(2,064) |
(2,588) |
(5,997) | ||||||
Other assets |
- |
(5) |
11 |
17 | ||||||
Accounts payable and accrued liabilities |
2,320 |
1,079 |
4,198 |
144 | ||||||
Net cash provided by operating activities |
15,208 |
8,467 |
32,083 |
20,372 | ||||||
Cash Flows from Investing Activities |
||||||||||
Leasehold and acquisitions costs |
(15,337) |
(5,360) |
(54,681) |
(13,716) | ||||||
Development of oil and natural gas properties |
(54,709) |
(24,545) |
(139,571) |
(96,743) | ||||||
Other capital expenditures |
(138) |
(9) |
(1,969) |
(213) | ||||||
Proceeds from sale of oil and natural gas properties |
796 |
- |
796 |
440 | ||||||
Net cash used in investing activities |
(69,388) |
(29,914) |
(195,425) |
(110,232) | ||||||
Cash Flows from Financing Activities |
||||||||||
Proceeds from common units |
20,000 |
13,000 |
51,542 |
51,000 | ||||||
Proceeds from senior secured revolving credit facility |
42,000 |
10,000 |
112,000 |
20,000 | ||||||
Debt issuance costs |
(190) |
(51) |
(1,220) |
(603) | ||||||
Deferred offering costs |
(1,323) |
- |
(1,418) |
- | ||||||
Net cash provided by financing activities |
60,487 |
22,949 |
160,904 |
70,397 | ||||||
Net Change in Cash and Cash Equivalents |
6,307 |
1,502 |
(2,438) |
(19,463) | ||||||
Cash and Cash Equivalents, Beginning of Period |
5,420 |
12,663 |
14,165 |
33,628 | ||||||
Cash and Cash Equivalents, End of Period |
$ 11,727 |
$ 14,165 |
$ 11,727 |
$ 14,165 |
Jagged Peak Energy LLC | ||||||||
Reconciliation of Adjusted Net Income and Adjusted EBITDAX | ||||||||
(Unaudited) | ||||||||
The following tables provide reconciliations of the GAAP financial measure of Net Income (Loss) to the non-GAAP financial measures of Adjusted Net Income (Loss) and Adjusted EBITDAX. A description of the reconciliations is included in the section titled "Reconciliation of Non-GAAP Financial Measures." | ||||||||
Three Months Ended |
Year Ended | |||||||
December 31, |
December 31, | |||||||
2016 |
2015 |
2016 |
2015 | |||||
(in thousands) | ||||||||
Adjusted Net Income (Loss) |
||||||||
Net Income (Loss) |
$ (1,971) |
$(6,785) |
$ (9,760) |
$ (7,484) | ||||
Adjustments to reconcile to Adjusted Net Income |
||||||||
Impairment of oil and natural gas properties and dry hole costs |
55 |
6,482 |
1,564 |
6,489 | ||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
5,804 |
1,571 |
12,853 |
4,612 | ||||
Income tax benefit (expense) for the above items |
- |
- |
- |
- | ||||
Adjusted Net Income |
$ 3,888 |
$ 1,268 |
$ 4,657 |
$ 3,617 | ||||
Adjusted EBITDAX |
||||||||
Net Income (Loss) |
$ (1,971) |
$(6,785) |
$ (9,760) |
$ (7,484) | ||||
Adjustments to reconcile to Adjusted EBITDAX |
||||||||
Interest expense, net of capitalized |
1,158 |
120 |
2,629 |
197 | ||||
Income tax expense (benefit) |
- |
- |
- |
- | ||||
Depletion, depreciation, amortization and accretion |
10,987 |
8,197 |
40,417 |
22,685 | ||||
Impairment of oil and natural gas properties and dry hole costs |
55 |
6,482 |
1,564 |
6,489 | ||||
Exploration expenses |
10 |
4 |
1,292 |
11 | ||||
Stock-based compensation expense |
- |
- |
- |
- | ||||
(Gain) loss on commodity derivatives, net, less net cash from derivative settlements |
5,804 |
1,571 |
12,853 |
4,612 | ||||
Adjusted EBITDAX |
$ 16,043 |
$ 9,589 |
$ 48,995 |
$ 26,510 |
SOURCE Jagged Peak Energy Inc.
DENVER, March 14, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) ("Jagged Peak" or the "Company") announced today that Mr. Gregory S. Hinds, Jagged Peak's Executive Vice President, Development Planning & Acquisition, has voluntarily resigned from the Company, as of March 13, 2017, in order to pursue other opportunities.
Joseph N. Jaggers, Chairman of the Board of Directors (the "Board"), President and Chief Executive Officer of the Company commented, "On behalf of the Board, I would like to express our sincere appreciation for the leadership and dedication provided by Greg in co-founding the Company with me. Greg has been instrumental in identifying, acquiring and developing the strong asset base that allowed us to successfully complete our initial public offering earlier this year. We are very appreciative of his efforts and commitment to the Company during his tenure. We wish him success in future years."
Mr. Hinds commented, "It has been an honor and a privilege to help found Jagged Peak. I am committed to assist the management team in making this a smooth transition. I wish to express my heartfelt appreciation to the Board, management, employees and investors for their support over the years and I wish them and the Company all the best."
Mr. Jaggers continued, "We are in a fortunate position to have an experienced group of professionals within the organization that have already begun to assume greater roles and are committed to the continued development of our top-tier assets in the heart of the Delaware Basin."
Mr. Hinds' business development responsibilities will be transitioned to Mark R. Petry, Executive Vice President, Land & Acquisitions, while his development planning responsibilities will be assumed by John G. Roesink, Vice President, Development Planning & Geoscience. Mr. Jaggers, along with Chris R. Bairrington, Vice President, Operations, and other members of our operations team, will also assist in the transition.
Mark R. Petry was appointed as the Company's Executive Vice President, Land in November 2016, and served as the Company's predecessor's Vice President, Land since inception. Prior to that, he served as Vice President, Business Development and Land Administration for Laramie Energy II, LLC since September 2007. His prior experience includes Rocky Mountain Land Manager at Anadarko Petroleum Corporation, various positions, including Vice President, Land, at Western Gas Resources, Inc. and various land and accounting positions at Ladd Petroleum Corporation. Mr. Petry graduated with honors from the University of Wyoming with a Bachelor of Science Degree in Finance and is a Certified Professional Landman.
John G. Roesink was recently named the Company's Vice President, Development Planning & Geoscience. He joined Jagged Peak's predecessor in 2014 as our Senior Exploration Geologist. Prior to that, he was a Geologic Advisor at Bill Barrett Corporation where he developed the East Bluebell assets in the Uinta Basin and helped formulate and execute that company's Niobrara development plan in the DJ Basin. From 2005 until 2011, he was a geologist and team lead at Noble Energy Inc. where he explored and developed Noble's Green River, Piceance, western Williston, Wind River and DJ Basin assets. Prior to that, he was a research scientist at the University of Colorado, Boulder studying the sequence stratigraphy of deepwater deposits. Mr. Roesink holds a B.A. and a M.S. in Geology from the University of Colorado, Boulder.
Chris R. Bairrington was named Jagged Peak's Vice President, Operations in November 2016. He previously served as Engineering Manager of the Company's predecessor. Prior to that, he was the Senior Operations Engineer of Ute Energy. He also has experience as a Senior Operations Engineer of Bill Barrett Corporation and Production Engineer of Anadarko Petroleum Corporation. Mr. Bairrington holds a B.S. in Petroleum Engineering from Texas A&M University.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent Jagged Peak's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of Jagged Peak's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Jagged Peak does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Jagged Peak to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the prospectus filed with the SEC in connection with Jagged Peak's initial public offering. The risk factors and other factors noted in Jagged Peak's prospectus could cause its actual results to differ materially from those contained in any forward-looking statement.
SOURCE Jagged Peak Energy Inc.
DENVER, March 8, 2017 /PRNewswire/ -- Jagged Peak Energy Inc. (NYSE: JAG) (the "Company") today announced that it will report fourth quarter and full-year 2016 financial results on Thursday, March 23, 2017 after market close. In connection with the release, the Company will host a conference call to discuss the results on Friday, March 24, 2017 at 9:00 AM MDT/11:00 AM EDT. The call will be webcast live and accessible in the Investor Relations section of the Company's website at www.jaggedpeakenergy.com. To join the live, interactive call, please dial 1-855-327-6837 ten minutes before the scheduled start time (international callers dial 1-631-891-4304).
A replay will be available on the Company's website approximately two hours after the conference call and will be available through April 30, 2017. Additionally, a replay will be available through March 31, 2017 by dialing 1-844-512-2921 (1-412-317-6671 international) with passcode 10002570.
The Company also announced that its Chairman, President & Chief Executive Officer, Joe Jaggers, and other members of its management team will be presenting at the 2017 Scotia Howard Weil Energy Conference on Tuesday, March 28, 2017 at 2:30 PM CDT/3:30 PM EDT. This presentation will not be webcast. The presentation materials used for this event will be available on the Company's website at www.jaggedpeakenergy.com.
About Jagged Peak Energy Inc.
Jagged Peak Energy Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas.
SOURCE Jagged Peak Energy Inc.
Louisiana Energy Gateway (LEG) Natural Gas Pipeline (subscriber access)
Status: (subscriber access)
Parent Entities:
Williams Companies, Inc.
Quantum Energy Partners
Subscribe now for access to Criterion Research's historical production and forecast production by company.
Subscribe now for access to Criterion Research's hedge and analysis.