Press Releases
Riviera Resources Reports First Quarter 2020 Results
The Company highlights the following accomplishments:
- Returned an aggregate of approximately
$310 million to shareholders in the last five months:
º Cash distribution of$4.25 per share paid to shareholders onDecember 12, 2019
º Cash distribution of$1.00 per share paid to shareholders onApril 24, 2020 - Announced an additional cash distribution of
$0.75 per share, a return of over$45 million , payable onMay 12, 2020 - Closed the following sales in the first quarter 2020:
º Interests in properties located in theOverton and Personville fields ofEast Texas for proceeds of approximately$44 million
º The Drunkards Wash field located inUtah for proceeds of approximately$4 million
º Oklahoma City office building for proceeds of approximately$21 million - Ended the first quarter with a consolidated cash balance of
~$165 million and~$73 million drawn on theBlue Mountain Midstream LLC (“Blue Mountain”) senior secured revolving loan facility (the “Blue Mountain Credit Facility”) - Reduced operating and general and administrative costs to optimally manage the business
- Consolidated management of Blue Mountain within the Company’s existing executive management team, while continuing to maintain separate capital structures for each entity
- Continued to work with
Tudor, Pickering, Holt & Co. , in addition to on-going work with other advisors, to explore a potential sale or merger for Riviera or Blue Mountain
Blue Mountain highlights:
- Performed in line with first quarter guidance targets with respect to natural gas throughput of 118 MMcf/d, and water managed of approximately 40,600 Bbl/d
- Exceeded first quarter guidance target with 57% of gathered water on pipe
- Turned 14 wells to sales on natural gas system in first quarter of 2020
- Continued expansion of the water gathering system, connecting to a total of 15 pads in the first quarter of 2020
- Reduced 2020 capital estimate to
$25 million , 11% lower than prior guidance estimate
Riviera Upstream highlights:
- Outperformed first quarter upstream guidance with respect to Adjusted EBITDAX, driven primarily by lower operating expenses
- Reduced 2020 capital by
$21 million with decision to suspendNorth Louisiana operated drilling program, maintaining the option to re-initiate the program if gas prices improve
Key Financial Results (1)
First Quarter | |||||
$ in millions | 2020 | 2019 | |||
Average daily production (MMcfe/d) | 72 | 265 | |||
Total oil, natural gas and NGL revenues | $ | 15 | $ | 76 | |
Net (loss) income | $ | (102 | ) | $ | 13 |
Adjusted EBITDAX (a non-GAAP financial measure) (1) | $ | 10 | $ | 29 | |
Net cash provided by (used in) operating activities | $ | (4 | ) | $ | 38 |
Oil and natural gas capital | $ | 1 | $ | 38 | |
Total capital | $ | 14 | $ | 61 |
(1) Includes severance costs of approximately
Cost Reduction Initiatives
General and Administrative Costs
The Company remains focused on finding ways to continue to reduce general and administrative costs, and recently announced the consolidation of management of Blue Mountain with the Company’s existing executive management team, while continuing to maintain separate capital structures for each entity. In the first quarter of 2020, Riviera Upstream’s general and administrative expenses, excluding share-based compensation expenses and severance expenses, were approximately
Operating Expenses
The Company has taken several proactive steps to significantly reduce lease operating expenses, including a reduction in workforce, optimizing compression and well workover programs, and negotiating lower overall service costs. With respect to operating costs, the Company has lowered costs by reducing workover activity, reducing workforce, releasing equipment, and negotiating lower rates for saltwater disposal and chemicals. As result, the Company estimates the Upstream’s lease operating costs to be
Capital Expenses
As previously announced, the Company has decided to defer initiating its operated drilling program in the Ruston Field of
Opportunistic Asset Monetizations
In the first quarter of 2020 the Company closed four transactions generating aggregate proceeds of approximately
Return of Capital to Shareholders
Thus far in 2020, the Company has returned or announced approximately
On
First Quarter 2020 Activity – Upstream Assets
The Company performed in line with expectations in the first quarter with respect to its upstream assets. Production for the first quarter averaged approximately 72 MMcfe/d, in line with our guidance range. Upstream capital expenditures were approximately
Blue Mountain Business Update
First Quarter 2020 Activity
In the first quarter of 2020, natural gas throughput on Blue Mountain’s system averaged 118 MMcf/d, relatively flat compared to the fourth quarter of 2019. Blue Mountain continued tying in new wells and turned 14 wells to sales throughout the quarter.
With respect to its water business, Blue Mountain continues to make considerable progress on the buildout of its water gathering system. During the first quarter, Blue Mountain managed 3.7 million barrels of water in total, or approximately 40,600 barrels per day. Of that total, the Company moved over 23,300 barrels per day on pipe (up 102% from fourth quarter 2019). With 57% of managed water on Blue Mountain pipe, Blue Mountain exceeded its guidance range. Furthermore, Blue Mountain completed construction of its third wholly owned and operated salt water disposal well (“SWD”)
Blue Mountain began construction of its crude oil gathering system in
Capital expenditures were
Cost Reduction Initiatives
In the first quarter of 2020, Blue Mountain Midstream’s general and administrative expenses, excluding share-based compensation expenses and severance expenses, were approximately
Recent Throughput
Starting in April, due to consistently low commodity prices, certain producers have elected to shut-in portions of their production. As a result, Blue Mountain expects to see lower second quarter throughput at its processing plant versus prior quarter, with throughput of approximately 80 MMcf/d at the end of April, approximately 32% lower than average throughput in the first quarter of 2020. Given the dynamic environment, the Company has chosen not to provide second quarter guidance for Blue Mountain.
Balance Sheet and Liquidity
Riviera and Blue Mountain have established separate credit facilities. As of
As of
As of
First Quarter Actuals
Below is a summary of the Company’s consolidated first quarter results.
Q1 2020 Actuals |
Q1 2020 Actuals |
Q1 2020 Actuals |
||
Upstream | Blue Mountain | Consolidated | ||
Net Production (MMcfe/d) | 72 | 72 | ||
Natural gas (MMcf/d) | 60 | 60 | ||
Oil (Bbls/d) | 1,052 | 1,052 | ||
NGL (Bbls/d) | 927 | 927 | ||
Other revenues, net (in thousands) (1) | $ 12,509 (4) | |||
Blue Mountain | $ 10,676 (3) | |||
Costs (in thousands) | $ 7,749 | $ 591 | $ 8,340 | |
Lease operating expenses | $ 4,951 | |||
Transportation expenses | $ 2,174 | |||
Taxes, other than income taxes | $ 1,215 | |||
Adjusted general and administrative expenses (Non-GAAP) (5) | $ 11,355 (8) | |||
General and administrative- severance expenses | $1,449 | |||
(in thousands) | ||||
Adjusted EBITDAX (Non-GAAP) | $ 9,506 | |||
Cash interest expense (Non-GAAP) (9) | $ - | $ 673 | ||
Oil and natural gas capital | $ 570 | |||
Total capital | $ 14,182 | |||
(1) Includes other revenues and margin on marketing activities
(2) Includes other revenues of less than
(3) Includes marketing revenues of approximately
(4) Includes other revenues of less than
(5) Adjusted general and administrative expenses is a non-GAAP measure that excludes share-based compensation expenses and severance expenses presented for the purpose of comparing to guidance
(6) Represents general and administrative expenses of approximately
(7) Represents general and administrative expenses of approximately
(8) Represents general and administrative expenses of approximately
(9) Excludes non-cash amortization
Upstream Segment - First Quarter Actuals versus Guidance
The comparison to guidance below is for the upstream assets only.
Q1 2020 Actuals |
Q1 2020 Guidance |
|
Net Production (MMcfe/d) | 72 | 67 – 75 |
Natural gas (MMcf/d) | 60 | 55 – 61 |
Oil (Bbls/d) | 1,052 | 950 – 1,200 |
NGL (Bbls/d) | 927 | 950 – 1,150 |
Other revenues, net (in thousands) (1) | ||
Costs (in thousands) | |
|
Lease operating expenses | ||
Transportation expenses | ||
Taxes, other than income taxes | ||
Adjusted general and administrative expenses (Non-GAAP) (3) | ||
General and administrative- severance expenses | ||
Targets ( |
||
Adjusted EBITDAX (Non-GAAP) | $ - | |
Capital expenditures | ||
(1) Includes other revenues and margin on marketing activities
(2) Includes other revenues of less than
(3) Adjusted general and administrative expenses is a non-GAAP measure that excludes share-based compensation expenses and severance expenses presented for the purpose of comparing to guidance
(4) For the three months ended
Blue Mountain Midstream Segment - First Quarter Actuals versus Guidance
The comparison to guidance below is for the Blue Mountain business only for the first quarter of 2020.
Q1 2020 Actuals |
Q1 2020 Guidance |
|||||||
Midstream Volumes | ||||||||
Natural Gas Throughput (MMcf/d) | 118 | 110 - 125 | ||||||
Water Managed (Bbl/d) | 40,641 | 35,000 - 42,000 | ||||||
% Piped | 57% | 40% - 50% | ||||||
% Trucked | 43% | 60% - 50% | ||||||
Crude Throughput (Bbl /d) | 1,105 | 2,500 - 3,000 | ||||||
Operating Margin ($ in thousands) (1) | ||||||||
Gas | ||||||||
Other | ||||||||
Total Operating Margin | ||||||||
Adjusted EBITDA ($ in thousands) (Non-GAAP) (2)(3) | ||||||||
Capital Expenditures ($ in thousands) | ||||||||
(1) Includes margin on marketing activities (marketing revenues less marketing expenses), and direct operating expenses for Blue Mountain Midstream assets, only
(2) Includes severance expense of approximately
(3) The Company does not provide a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis as it is unable to forecast certain items that we have defined as "Selected Items Impacting Comparability", which items are set forth later in this press release under the heading “Non-GAAP Financial Measures and Selected Items Impacting Comparability,” without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of and the periods in which such items may be recognized. Thus, a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures could result in disclosure that could be imprecise or potentially misleading. These items could be material to and have a significant impact on the Company’s results computed in accordance with GAAP.
Upstream Segment - Second Quarter and Full Year 2020 Guidance
The guidance below is for the Upstream assets only. Guidance estimates have been adjusted for asset sales closed in the first quarter of 2020.
The Company expects to have negative Adjusted EBITDAX in the second quarter largely due to on-going general and administrative costs associated with managing recently divested assets during the transition period. Additionally, the Company expects to incur severance expenses in the first half of the year. In the second half of 2020, the Company expects to generate positive Adjusted EBITDAX as the cost structure aligns with the on-going asset base.
Q2 2020E | FY 2020E | |||
Net Production (MMcfe/d) | 41 – 46 | 46 – 50 | ||
Natural gas (MMcf/d) | 33 – 36 | 37 – 40 | ||
Oil (Bbls/d) | 725 – 825 | 750 – 850 | ||
NGL (Bbls/d) | 725 – 850 | 725 – 825 | ||
Other revenues, net (in thousands) (1) | ||||
Costs (in thousands) | ||||
Lease operating expenses | ||||
Transportation expenses | ||||
Taxes, other than income taxes | ||||
Adjusted general and administrative expenses (Non-GAAP) (2), (5) | ||||
General and administrative- severance expenses | ||||
Costs per Mcfe ( |
$ 1.15 | $ 1.21 | ||
Lease operating expenses | ||||
Transportation expenses | ||||
Taxes, other than income taxes | ||||
Targets ( |
||||
Adjusted EBITDAX (Non-GAAP) (5) | ( |
|||
Capital expenditures | ||||
Weighted Average NYMEX Differentials | ||||
Natural gas (MMBtu) | ( |
( |
||
Oil (Bbl) | ( |
( |
||
NGL price as a % of crude oil price | 18% – 24% | 20% – 28% |
Unhedged Commodity Price Assumptions | 2020E | |||||||||||
Natural gas (MMBtu) | $ | 1.63 | $ | 1.82 | $ | 1.92 | $ | 2.16 | ||||
Oil (Bbl) | $ | 23.08 | $ | 14.55 | $ | 12.78 | $ | 27.56 | ||||
NGL (Bbl) | $ | 4.92 | $ | 3.10 | $ | 2.73 | $ | 6.66 |
(1) Includes other revenues and margin on marketing activities for Upstream assets, only
(2) Excludes share-based compensation expenses and severance expenses
(3) Includes severance expenses of approximately
(4) Includes severance expenses of approximately
(5) The Company does not provide a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures on a forward-looking basis as it is unable to forecast certain items that we have defined as "Selected Items Impacting Comparability", which items are set forth later in this press release under the heading “Non-GAAP Financial Measures and Selected Items Impacting Comparability,” without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the occurrence and financial impact of and the periods in which such items may be recognized. Thus, a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures could result in disclosure that could be imprecise or potentially misleading. These items could be material to and have a significant impact on the Company’s results computed in accordance with GAAP.
Hedging Update
Riviera Upstream Hedges
2020 | 2021 | ||||||
Natural Gas | Volume (MMMBtu/d) | Average Price (per MMBtu) |
Volume (MMMBtu/d) | Average Price (per MMBtu) |
|||
Swaps | 30 | 10 | |||||
Oil | Volume (Bbls/d) |
Average Price (per Bbl) |
Volume (Bbls/d) |
Average Price (per Bbl) |
|||
Swaps | 500 | - | $ - | ||||
Natural Gas Basis Differential positions | Volume (MMMBtu/d) | Average Price (per MMBtu) |
Volume (MMMBtu/d) | Average Price (per MMBtu) |
|||
PEPL Basis Swaps | 20 | ( |
- | $ - |
Earnings Call / Form 10‑Q
The Company will host a conference call
Investors and analysts are invited to participate in the call by dialing (866) 416-7462, or (409) 217-8223 for international calls using Conference ID: 5944979. Interested parties may also listen over the internet at www.rivieraresourcesinc.com. A replay of the call will be available on the Company’s website.
Supplemental information can be found at the following link on our website: http://ir.rivieraresourcesinc.com/events-and-presentations
ABOUT
Non-GAAP Financial Measures and Selected Items Impacting Comparability
To supplement our financial information presented in accordance with GAAP, management uses additional measures known as "non-GAAP financial measures" in its evaluation of past performance and prospects for the future. The primary additional measures used by management are earnings before interest, taxes, depreciation and amortization, exploration costs, noncash gains and losses on commodity derivatives, accrued settlements on commodity derivative contracts related to current production period, share-based compensation expenses, gains and losses on asset sales and other, reorganization items, and asset impairments (“Adjusted EBITDAX”) and earnings before interest, taxes, depreciation and amortization, noncash gains and losses on commodity derivatives, accrued settlements on commodity derivative contracts related to current production period, share-based compensation expenses, gains and losses on asset sales and other, and asset impairments (“Adjusted EBITDA”). Management believes these non-GAAP financial measures provide useful information to investors because these non-GAAP measures, when viewed with the Company’s GAAP results and accompanying reconciliations, provide a more complete understanding of the Company’s performance than GAAP results alone.
Forward-Looking Statements
Statements made in this press release that are not historical facts are “forward-looking statements.” These statements are based on certain assumptions and expectations made by the Company which reflect management’s experience, estimates and perception of historical trends, current conditions, and anticipated future developments. These statements include, among others, statements regarding our 2020 guidance, planned capital expenditures, increases in oil and gas production, the number of anticipated wells to be drilled or completed after the date hereof, future cash flows and borrowings, our strategic objectives with respect to Blue Mountain Midstream, our engagement of financial advisors with respect to strategic alternatives, our financial position, business strategy and other plans and objectives for future operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or anticipated in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, volatility of oil, natural gas and natural gas liquid prices or a prolonged period of low oil, natural gas or natural gas liquid prices and the effects of actions by, or disputes among or between, members of the
CONTACT:
Investor Relations
(281) 840-4168
IR@RVRAresources.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share amounts) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 165,223 | $ | 116,237 | ||||
Accounts receivable – trade, net | 28,474 | 51,355 | ||||||
Derivative instruments | 12,075 | 7,283 | ||||||
Restricted cash | 29,090 | 32,932 | ||||||
Other current assets | 14,549 | 12,853 | ||||||
Assets held for sale | 1,195 | 104,773 | ||||||
Total current assets | 250,606 | 325,433 | ||||||
Noncurrent assets: | ||||||||
Oil and natural gas properties (successful efforts method) | 178,738 | 180,307 | ||||||
Less accumulated depletion and amortization | (128,041 | ) | (35,603 | ) | ||||
50,697 | 144,704 | |||||||
Other property and equipment | 399,905 | 388,851 | ||||||
Less accumulated depreciation | (70,272 | ) | (50,381 | ) | ||||
329,633 | 338,470 | |||||||
Other noncurrent assets | 6,675 | 7,652 | ||||||
6,675 | 7,652 | |||||||
Total noncurrent assets | 387,005 | 490,826 | ||||||
Total assets | $ | 637,611 | $ | 816,259 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 55,743 | $ | 80,579 | ||||
Derivative instruments | 14 | 1,087 | ||||||
Other accrued liabilities | 14,758 | 26,728 | ||||||
Distributions payable | 57,908 | — | ||||||
Liabilities held for sale | 809 | 35,177 | ||||||
Total current liabilities | 129,232 | 143,571 | ||||||
Noncurrent liabilities: | ||||||||
Credit facilities | 72,800 | 69,800 | ||||||
Asset retirement obligations and other noncurrent liabilities | 22,684 | 29,337 | ||||||
Total noncurrent liabilities | 95,484 | 99,137 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Equity: | ||||||||
Preferred Stock ( issued at |
— | — | ||||||
Common Stock ( shares and 58,168,756 shares issued at |
579 | 581 | ||||||
Additional paid-in capital | 802,616 | 861,764 | ||||||
Retained (deficit) earnings | (390,300 | ) | (288,794 | ) | ||||
Total equity | 412,895 | 573,551 | ||||||
Total liabilities and equity | $ | 637,611 | $ | 816,259 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended |
||||||||
2020 | 2019 | |||||||
(in thousands, except per share amounts) | ||||||||
Revenues and other: | ||||||||
Oil, natural gas and natural gas liquids sales | $ | 14,798 | $ | 76,345 | ||||
Gains (losses) on commodity derivatives | 8,079 | (13,241 | ) | |||||
Marketing revenues | 33,922 | 67,347 | ||||||
Other revenues | 31 | 6,003 | ||||||
56,830 | 136,454 | |||||||
Expenses: | ||||||||
Lease operating expenses | 4,951 | 24,052 | ||||||
Transportation expenses | 2,174 | 19,150 | ||||||
Marketing expenses | 21,319 | 53,389 | ||||||
General and administrative expenses | 9,904 | 19,039 | ||||||
Exploration costs | — | 1,238 | ||||||
Depreciation, depletion and amortization | 10,319 | 21,772 | ||||||
Impairment of assets held for sale and long-lived assets | 106,784 | — | ||||||
Taxes, other than income taxes | 1,215 | 6,300 | ||||||
(Gains) losses on sale of assets and other, net | 460 | (27,265 | ) | |||||
157,126 | 117,675 | |||||||
Other income and (expenses): | ||||||||
Interest expense, net of amounts capitalized | (929 | ) | (971 | ) | ||||
Other, net | (60 | ) | (589 | ) | ||||
(989 | ) | (1,560 | ) | |||||
Reorganization items, net | (221 | ) | — | |||||
(Loss) income before income taxes | (101,506 | ) | 17,219 | |||||
Income tax expense | — | 4,493 | ||||||
Net (loss) income | $ | (101,506 | ) | $ | 12,726 | |||
(Loss) income per share: | ||||||||
Basic | $ | (1.75 | ) | $ | 0.18 | |||
Diluted | $ | (1.75 | ) | $ | 0.18 | |||
Weighted average shares outstanding ‒ basic | 58,162 | 68,817 | ||||||
Weighted average shares outstanding ‒ diluted | 58,162 | 69,000 | ||||||
Distributions declared per share | $ | 1.00 | $ | — |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended |
||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Cash flow from operating activities: | ||||||||
Net (loss) income | $ | (101,506 | ) | $ | 12,726 | |||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: |
||||||||
Depreciation, depletion and amortization | 10,319 | 21,772 | ||||||
Impairment of assets held for sale and long-lived assets | 106,784 | — | ||||||
Deferred income taxes | — | 4,493 | ||||||
Total (gains) losses on derivatives, net | (8,079 | ) | 15,421 | |||||
Cash settlements on derivatives | 2,173 | (5,085 | ) | |||||
Share-based compensation expenses | (3,575 | ) | 4,236 | |||||
(Gains) losses on sale of assets and other, net | 181 | (28,564 | ) | |||||
Other | 980 | 1,583 | ||||||
Changes in assets and liabilities: | ||||||||
Decrease in accounts receivable – trade, net | 19,835 | 26,536 | ||||||
(Increase) decrease in other assets | (1,358 | ) | 9,257 | |||||
Decrease in accounts payable and accrued expenses | (22,095 | ) | (15,840 | ) | ||||
Decrease in other liabilities | (7,715 | ) | (8,857 | ) | ||||
Net cash provided by (used in) operating activities | (4,056 | ) | 37,678 | |||||
Cash flow from investing activities: | ||||||||
Development of oil and natural gas properties | (1,337 | ) | (30,512 | ) | ||||
Purchases of other property and equipment | (16,322 | ) | (23,183 | ) | ||||
Proceeds from sale of properties and equipment and other | 66,512 | 60,141 | ||||||
Net cash provided by investing activities | 48,853 | 6,446 | ||||||
Cash flow from financing activities: | ||||||||
Repurchases of shares | (2,653 | ) | (34,130 | ) | ||||
Proceeds from borrowings | 3,000 | 96,225 | ||||||
Repayments of debt | — | (24,300 | ) | |||||
Debt issuance costs paid | — | (2,715 | ) | |||||
Net cash provided by financing activities | 347 | 35,080 | ||||||
Net increase in cash, cash equivalents and restricted cash | 45,144 | 79,204 | ||||||
Cash, cash equivalents and restricted cash: | ||||||||
Beginning | 149,169 | 49,777 | ||||||
Ending | $ | 194,313 | $ | 128,981 |
Adjusted EBITDAX (Non-GAAP Measure)
The non-GAAP financial measure of Adjusted EBITDAX, as defined by the Company, may not be comparable to similarly titled measures used by other companies. Therefore, this non-GAAP measure should be considered in conjunction with net income (loss) and other performance measures prepared in accordance with GAAP. Adjusted EBITDAX should not be considered in isolation or as a substitute for GAAP.
Adjusted EBITDAX is a measure used by Company management to evaluate the Company’s operational performance and for comparisons to the Company’s industry peers. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results.
The following presents a reconciliation of net income (loss) to Adjusted EBITDAX:
Three Months Ended |
||||||||||||
2020 |
2019 |
|||||||||||
(in thousands) | ||||||||||||
Net (loss) income | $ | (101,506 | ) | $ | 12,726 | |||||||
Plus (less): | ||||||||||||
Income from discontinued operations | - | - | ||||||||||
Interest expense, net of amounts capitalized | 929 | 971 | ||||||||||
Income tax expense (benefit) | - | 4,493 | ||||||||||
Depreciation, depletion and amortization | 10,319 | 21,772 | ||||||||||
Exploration costs | - | 1,238 | ||||||||||
EBITDAX | (90,258 | ) | 41,200 | |||||||||
Plus (less): | ||||||||||||
Noncash losses (gains) on commodity derivatives | (4,525 | ) | 10,336 | |||||||||
Accrued settlements on commodity derivative contracts related to current production period (1) | (288 | ) | (365 | ) | ||||||||
Share-based compensation expenses | (3,024 | ) | 6,307 | |||||||||
(Gains) losses on sale of assets and other, net (2) | 596 | (28,625 | ) | |||||||||
Reorganization items, net (3) | 221 | 48 | ||||||||||
Impairment of assets held for sale and long-lived assets | 106,784 | - | ||||||||||
Adjusted EBITDAX | $ | 9,506 | $ | 28,901 |
(1) Represent amounts related to commodity derivative contracts that settled during the respective period (contract terms had expired) but cash had not been received as of the end of the period.
(2) Primarily represent gains or losses on the sale of assets, earnings from equity method investments, gains or losses on inventory valuation, and write-off of deferred financing fees.
(3) Represent costs and income directly associated with the predecessor’s filing for voluntary reorganization under Chapter 11 of the
Adjusted EBITDAX and Adjusted EBITDA (Non-GAAP Measures)
The non-GAAP financial measures of Adjusted EBITDAX and Adjusted EBITDA, as defined by the Company, may not be comparable to similarly titled measures used by other companies. Therefore, these non-GAAP measures should be considered in conjunction with net income (loss) and other performance measures prepared in accordance with GAAP. Adjusted EBITDAX and Adjusted EBITDA should not be considered in isolation or as a substitute for GAAP.
Adjusted EBITDAX and Adjusted EBITDA are measures used by Company management to evaluate the Company’s operational performance and for comparisons to the Company’s industry peers. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s financial results.
The following presents a reconciliation of net income (loss) to Adjusted EBITDAX and Adjusted EBITDA:
Three Months Ended |
|||||||||||||||
(in thousands) | |||||||||||||||
Consolidated | Upstream | Blue Mountain | |||||||||||||
Net (loss) income | $ | (101,506 | ) | $ | (91,214 | ) | $ | (10,292 | ) | ||||||
Plus (less): | |||||||||||||||
Interest expense, net of amounts capitalized | 929 | 149 | 780 | ||||||||||||
Income tax expense | — | — | — | ||||||||||||
Depreciation, depletion and amortization | 10,319 | 7,501 | 2,818 | ||||||||||||
EBITDA | (90,258 | ) | (83,564 | ) | (6,694 | ) | |||||||||
Exploration costs | — | — | — | ||||||||||||
EBITDAX | (90,258 | ) | (83,564 | ) | (6,694 | ) | |||||||||
Plus (less): | |||||||||||||||
Noncash losses (gains) on commodity derivatives | (4,525 | ) | (4,780 | ) | 255 | ||||||||||
Accrued settlements on commodity derivative contracts related to current production period (1) | (288 | ) | 390 | (678 | ) | ||||||||||
Share-based compensation expenses | (3,024 | ) | 318 | (3,342 | ) | ||||||||||
(Gains) losses on sale of assets and other, net (2) | 596 | (22 | ) | 618 | |||||||||||
Reorganization items, net (3) | 221 | 221 | — | ||||||||||||
Impairment of assets held for sale and long-lived assets | 106,784 | 89,984 | 16,800 | ||||||||||||
Adjusted EBITDAX / Adjusted EBITDA | $ | 9,506 | $ | 2,547 | $ | 6,959 |
(1) Represent amounts related to commodity derivative contracts that settled during the respective period (contract terms had expired) but cash had not been received as of the end of the period.
(2) Primarily represent gains or losses on the sale of assets, earnings from equity method investments, gains or losses on inventory valuation, and write-off of deferred financing fees.
(3) Represent costs and income directly associated with the predecessor’s filing for voluntary reorganization under Chapter 11 of the
Source: Riviera Resources, Inc.