HOUSTON, Nov. 06, 2024 (GLOBE NEWSWIRE) — Amplify Energy Corp. (NYSE: AMPY) (“Amplify,” the “Company,” “us,” or “our”) announced today its operating and financial results for the third quarter of 2024.
Key Highlights
During the third quarter of 2024, the Company: Achieved average total production of 19.0 MBoepdGenerated net cash provided by operating activities of $15.7 million and net income of $22.7 millionDelivered Adjusted EBITDA of $25.5 millionGenerated $3.6 million of free cash flow Drilled and completed the C59 development well at Beta, achieving an IP30 oil rate of approximately 590 Bopd (gross), which exceeded Company projectionsIn the process of completing the C48 development well at Beta, which the Company expects to bring online in mid-NovemberOn October 25, 2024, the Company completed its semi-annual borrowing base redetermination The borrowing base and elected commitments are now $145.0 million, increasing Amplify’s liquidity by $10.0 millionAs of September 30, 2024, Amplify had $120.0 million outstanding under the revolving credit facilityNet Debt to Last Twelve Months (“LTM”) Adjusted EBITDA of 1.1×1 The Company issued its annual sustainability report which is now available on its website
(1) Net debt as of September 30, 2024, consisting of $120 MM outstanding under its revolving credit facility with ~$0.0 MM of cash and cash equivalents, and LTM Adjusted EBITDA as of the third quarter of 2024
Martyn Willsher, Amplify’s President and Chief Executive Officer, commented, “Amplify continued to deliver strong operating and financial performance in the third quarter. We are excited about the tremendous progress and results of our development program at Beta, where we successfully drilled and completed the C59 well in early October. The well’s 30-day IP rate of 590 gross barrels of oil per day exceeded projections, and based on early results and current commodity prices, we expect it will pay out in six to nine months. We are also in the process of completing the C48 well, and we are excited to see how it will perform. Having successfully drilled wells from both the Ellen and Eureka platforms, we are increasingly confident about the future inventory and development plan for Beta.”
“As discussed in our prior earnings release, we evaluated several proposals regarding the monetization of our Wyoming assets. While we were initially encouraged by the interest we received, in the current commodity price environment, we believe retaining the assets and continuing to benefit from the asset cash flows maximize shareholder value at this time. We remain open to exploring future monetization opportunities as they develop.”
Mr. Willsher concluded, “So far, 2024 has been a strong year for Amplify. Our base assets are performing well, and we have made significant progress in demonstrating the upside potential of the Beta field. We look forward to continuing the successes of our development program at Beta and remain confident that the initiatives we are actively pursuing this year will be transformative for the Company.”
Key Financial Results
During the third quarter of 2024, the Company reported net income of approximately $22.7 million compared to net income of $7.1 million in the prior quarter. The increase was primarily attributable to a non-cash unrealized gain on commodity derivatives during the period compared to an unrealized loss in the prior period.
Amplify generated $25.5 million of Adjusted EBITDA for the third quarter, a decrease of approximately $5.2 million from $30.7 million in the prior quarter. Second quarter Adjusted EBITDA benefited from a one-time $7.0 million accounting adjustment related to the release of suspense from prior quarters. Further detail on the adjustment can be found at the end of this release and in our quarterly report on Form 10-Q.
Free cash flow was $3.6 million for the third quarter, a decrease of $5.6 million compared to the prior quarter, which was also impacted by the second quarter suspense release. Amplify has now generated positive free cash flow in 17 of the last 18 fiscal quarters.
Third Quarter
Second Quarter$ in millions 2024
2024
Net income (loss) $22.7 $7.1 Net cash provided by operating activities $15.7 $15.4 Average daily production (MBoe/d) 19.0 20.3 Total revenues excluding hedges $69.9 $79.5 Adjusted EBITDA (a non-GAAP financial measure)$25.5 $30.7 Total capital $18.2 $18.0 Free Cash Flow (a non-GAAP financial measure)$3.6 $9.2
Revolving Credit Facility
On October 25, 2024, Amplify completed the regularly scheduled semi-annual redetermination of its borrowing base. The borrowing base was reduced $5.0 million while elected commitments were increased $10.0 million, bringing the borrowing base and elected commitments under the revolving credit facility to $145.0 million. The next regularly scheduled borrowing base redetermination is expected to occur in the second quarter of 2025.
As of September 30, 2024, Amplify had $120.0 million outstanding under its revolving credit facility, and net debt to LTM Adjusted EBITDA was 1.1x (net debt as of September 30, 2024 and 3Q24 LTM Adjusted EBITDA). Third quarter net debt increased slightly from the prior quarter due to expected changes in working capital and increased development activity, primarily at Beta. The Company’s net debt to LTM Adjusted EBITDA ratio improved quarter-over-quarter to 1.1x from 1.2x due to increased LTM Adjusted EBITDA.
Sustainability Report Update
The Company issued its second annual sustainability report, which is available on its website, www.amplifyenergy.com, under the “Sustainability” tab.
The report provides updated information about Amplify’s environmental, social and governance (“ESG”) initiatives, practices and related metrics.
Corporate Production and Pricing
During the third quarter of 2024, average daily production was approximately 19.0 Mboepd, a decrease of 1.3 Mboepd from the prior quarter. The second quarter benefitted from a one-time, prior-period accounting adjustment, which added approximately 1.2 Mboepd. Adjusting for the one-time benefit in the second quarter, third quarter production was relatively flat compared to the prior quarter despite a planned multi-day shut-in at Beta for the electrification and emissions reductions project and the C59 well coming online just after quarter-end. The Company’s product mix for the quarter was 43% crude oil, 17% NGLs, and 40% natural gas.
Three Months Three Months Ended Ended September 30, 2024 June 30, 2024 Production volumes – MBOE: Bairoil294 301 Beta304 277 Oklahoma454 492 East Texas / North Louisiana638 709 Eagle Ford (Non-op)62 64 Total – MBoe1,752 1,843 Total – MBoe/d19.0 20.3 % – Liquids60% 60%
Total oil, natural gas and NGL revenues for the third quarter of 2024 were approximately $68.1 million, before the impact of derivatives. The Company realized a net gain on commodity derivatives of $6.4 million during the third quarter. Oil, natural gas and NGL revenues, net of realized hedges, decreased $1.5 million for the third quarter compared to the prior quarter.
The following table sets forth information regarding average realized sales prices for the periods indicated:
Crude Oil ($/Bbl)NGLs ($/Bbl)Natural Gas ($/Mcf) Three Months Ended September 30, 2024 Three Months Ended June 30, 2024 Three Months Ended September 30, 2024 Three Months Ended June 30, 2024 Three Months Ended September 30, 2024 Three Months Ended June 30, 2024 Average sales price exclusive of realized derivatives and certain deductions from revenue $71.74 $76.51 $21.63 $20.05 $1.84 $1.78 Realized derivatives (0.24) (3.17) – – 1.38 1.36 Average sales price with realized derivatives exclusive of certain deductions from revenue $71.50 $73.34 $21.63 $20.05 $3.22 $3.14 Certain deductions from revenue – – (1.33) (1.06) 0.00 0.02 Average sales price inclusive of realized derivatives and certain deductions from revenue $71.50 $73.34 $20.30 $18.99 $3.22 $3.16
Costs and Expenses
Lease operating expenses in the third quarter of 2024 were approximately $33.3 million, or $18.98 per Boe, a $3.0 million decrease compared to the prior quarter. Approximately $1.2 million of this decrease was due to a reclassification of certain expenses to taxes other than income with the remaining decrease attributable to continued optimization initiatives. Lease operating expenses also do not reflect $0.8 million of income generated by Magnify Energy Services in the third quarter.
Severance and ad valorem taxes in the third quarter were approximately $6.0 million, an increase of $1.4 million compared to $4.6 million in the prior quarter primarily due to the reclassification of certain lease operating expenses, as noted above. Severance and ad valorem taxes as a percentage of revenue were approximately 8.8% this quarter compared to 6.4% in the prior quarter due to this adjustment. The Company anticipates that taxes as a percentage of revenue will remain within its previously announced guidance range for 2024.
Amplify incurred $4.3 million, or $2.45 per Boe, of gathering, processing and transportation expenses in the third quarter, compared to $4.9 million, or $2.66 per Boe, in the prior quarter.
Third quarter cash G&A expenses were $6.2 million, a decrease of $0.4 million from the prior quarter and in-line with expectations. This decrease was primarily due to lower legal fees. The Company expects quarterly cash G&A expenses will remain at approximately this same level in the fourth quarter.
Depreciation, depletion and amortization expense for the third quarter totaled $8.1 million, or $4.62 per Boe, compared to $7.8 million, or $4.25 per Boe, in the prior quarter.
Net interest expense was $3.8 million for the third quarter, an increase of $0.2 million from $3.6 million in the prior quarter.
Amplify recorded a current income tax expense of $0.4 million for the third quarter.
Capital Investments
Cash capital investment during the third quarter of 2024 was approximately $18.2 million. During the third quarter, the Company’s capital allocation was approximately 66% for Beta development drilling and facility projects, with the remainder distributed across the Company’s other assets.
The following table details Amplify’s capital invested during the third quarter of 2024:
Third Quarter Year to Date 2024 Capital 2024 Capital ($ MM) ($ MM)Bairoil $1.2 $2.7 Beta $12.0 $43.7 Oklahoma $1.5 $3.0 East Texas / North Louisiana $2.3 $2.9 Eagle Ford (Non-op) $1.2 $2.0 Magnify Energy Services $0.0 $1.0 Total Capital Invested $18.2 $55.3
In the fourth quarter of 2024, Amplify expects its capital investments will be allocated primarily to the drilling of the C48 development well and its participation in non-operated drilling opportunities in East Texas and the Eagle Ford. Due to the acceleration of non-operated development costs in the fourth quarter, Amplify expects total capital to be at or slightly above the high end of its current annual guidance range of $60 to $65 million.
Beta Development and Facility Upgrade Update
In the third quarter, the Company invested approximately $5.9 million to successfully drill the C59 well from the Eureka platform, which was brought online in early October and achieved an IP-30 oil rate of approximately 590 Bopd. The C48 well is in the process of being completed and is expected to come online in mid-November.
In 2024, the Company completed two wells with better-than-anticipated results and short projected payback periods on its investment and is the process of completing its third well. The Company is refining its long-term development plans at Beta based on these initial successes and anticipates communicating these plans in the first quarter of 2025.
During the third quarter, the Company continued the final phase of the electrification and emissions reduction project at Beta, which involves installing selective catalytic reducers on the platform generators and rig engines. This multi-year facility project is scheduled to be completed in the fourth quarter of 2024.
Hedging
Recently, the Company took advantage of volatility in the futures market to add to its hedge position, further protecting future cash flows. Amplify executed crude oil swaps for 2025 and 2026 at a weighted-average price of $69.39 per barrel and $68.12 per barrel, respectively, while monetizing a small portion of in-the-money gas hedges to stay in compliance with the Company’s revolving credit facility.
The following table reflects the hedged volumes under Amplify’s commodity derivative contracts and the average fixed floor and ceiling prices at which production is hedged for October 2024 through December 2026, as of November 6, 2024:
2024
2025
2026
Natural Gas Swaps: Average Monthly Volume (MMBtu) 660,000 585,000 500,000 Weighted Average Fixed Price ($)$3.74 $3.75 $3.79 Natural Gas Collars: Two-way collars Average Monthly Volume (MMBtu) 500,000 500,000 500,000 Weighted Average Ceiling Price ($)$3.97 $3.90 $4.06 Weighted Average Floor Price ($)$3.50 $3.50 $3.55 Oil Swaps: Average Monthly Volume (Bbls) 83,000 118,167 47,750 Weighted Average Fixed Price ($)$74.34 $71.09 $69.76 Oil Collars: Two-way collars Average Monthly Volume (Bbls) 102,000 59,500 Weighted Average Ceiling Price ($)$80.20 $80.20 Weighted Average Floor Price ($)$70.00 $70.00
Amplify has posted an updated investor presentation containing additional hedging information on its website, www.amplifyenergy.com, under the Investor Relations section.
Quarterly Report on Form 10-Q
Amplify’s financial statements and related footnotes will be available in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which Amplify expects to file with the SEC on November 6, 2024.
About Amplify Energy
Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.
Conference Call
Amplify will host an investor teleconference tomorrow at 10 a.m. Central Time to discuss these operating and financial results. Interested parties may join the call by dialing (877) 550-1707 at least 15 minutes before the call begins and providing the Conference ID: AEC3Q24. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Conference ID: AEC3Q24. A transcript and a recorded replay of the call will also be available on our website after the call.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Terminology such as “may,” “will,” “would,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue,” the negative of such terms or other comparable terminology are intended to identify forward-looking statements. These statements include, but are not limited to, statements about the Company’s expectations of plans, goals, strategies (including measures to implement strategies), objectives and anticipated results with respect thereto. These statements address activities, events or developments that we expect or anticipate will or may occur in the future, including things such as projections of results of operations, plans for growth, goals, future capital expenditures, competitive strengths, references to future intentions and other such references. These forward-looking statements involve risks and uncertainties and other factors that could cause the Company’s actual results or financial condition to differ materially from those expressed or implied by forward-looking statements. These include risks and uncertainties relating to, among other things: the ongoing impact of the oil incident that occurred off the coast of Southern California resulting from the Company’s pipeline operations at the Beta field; the Company’s evaluation and implementation of strategic alternatives; risks related to the redetermination of the borrowing base under the Company’s revolving credit facility; the Company’s ability to satisfy debt obligations; the Company’s need to make accretive acquisitions or substantial capital expenditures to maintain its declining asset base, including the existence of unanticipated liabilities or problems relating to acquired or divested business or properties; volatility in the prices for oil, natural gas and NGLs; the Company’s ability to access funds on acceptable terms, if at all, because of the terms and conditions governing the Company’s indebtedness, including financial covenants; general political and economic conditions, globally and in the jurisdictions in which we operate, including the Russian invasion of Ukraine, the Israel-Hamas war and the potential destabilizing effect such conflicts may pose for the global oil and natural gas markets; expectations regarding general economic conditions, including inflation; and the impact of local, state and federal governmental regulations, including those related to climate change and hydraulic fracturing. Please read the Company’s filings with the SEC, including “Risk Factors” in the Company’s Annual Report on Form 10-K, and if applicable, the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, which are available on the Company’s Investor Relations website at https://www.amplifyenergy.com/investor-relations/sec-filings/default.aspx or on the SEC’s website at http://www.sec.gov, for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements in this press release are qualified in their entirety by these cautionary statements. Except as required by law, the Company undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.
Use of Non-GAAP Financial Measures
This press release and accompanying schedules include the non-GAAP financial measures of Adjusted EBITDA, free cash flow, net debt, and cash G&A. The accompanying schedules provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, net cash flows provided by operating activities, standardized measure of discounted future net cash flows, or any other measure of financial performance calculated and presented in accordance with GAAP. Amplify’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies because they may not calculate such measures in the same manner as Amplify does.
Adjusted EBITDA. Amplify defines Adjusted EBITDA as net income (loss) plus Interest expense; Income tax expense (benefit); DD&A; Impairment of goodwill and long-lived assets (including oil and natural gas properties); Accretion of AROs; Loss or (gain) on commodity derivative instruments; Cash settlements received or (paid) on expired commodity derivative instruments; Amortization of gain associated with terminated commodity derivatives; Losses or (gains) on sale of assets and other, net; Share-based compensation expenses; Exploration costs; Acquisition and divestiture related expenses; Reorganization items, net; Severance payments; and Other non-routine items that we deem appropriate. Adjusted EBITDA is commonly used as a supplemental financial measure by management and external users of Amplify’s financial statements, such as investors, research analysts and rating agencies, to assess: (1) its operating performance as compared to other companies in Amplify’s industry without regard to financing methods, capital structures or historical cost basis; (2) the ability of its assets to generate cash sufficient to pay interest and support Amplify’s indebtedness; and (3) the viability of projects and the overall rates of return on alternative investment opportunities. Since Adjusted EBITDA excludes some, but not all, items that affect net income or loss and because these measures may vary among other companies, the Adjusted EBITDA data presented in this press release may not be comparable to similarly titled measures of other companies. The GAAP measures most directly comparable to Adjusted EBITDA are net income and net cash provided by operating activities.
Free cash flow. Amplify defines free cash flow as Adjusted EBITDA, less cash interest expense and capital expenditures. Free cash flow is an important non-GAAP financial measure for Amplify’s investors since it serves as an indicator of the Company’s success in providing a cash return on investment. The GAAP measures most directly comparable to free cash flow are net income and net cash provided by operating activities.
Net debt. Amplify defines net debt as the total principal amount drawn on the revolving credit facility less cash and cash equivalents. The Company uses net debt as a measure of financial position and believes this measure provides useful additional information to investors to evaluate the Company’s capital structure and financial leverage.
Cash G&A. Amplify defines cash G&A as general and administrative expense, less share-based compensation expense; acquisition and divestiture costs; bad debt expense; and severance payments. Cash G&A is an important non-GAAP financial measure for Amplify’s investors since it allows for analysis of G&A spend without regard to share-based compensation and other non-recurring expenses which can vary substantially from company to company. The GAAP measures most directly comparable to cash G&A is total G&A expenses.
Contacts
Jim Frew — Senior Vice President and Chief Financial Officer
(832) 219-9044
jim.frew@amplifyenergy.com
Michael Jordan — Director, Finance and Treasurer
(832) 219-9051
michael.jordan@amplifyenergy.com
Selected Operating and Financial Data (Tables)
Amplify Energy Corp.Selected Financial Data – UnauditedStatements of Operations Data Three Months Three Months Ended Ended(Amounts in $000s, except per share data)September 30, 2024 June 30, 2024 Revenues: Oil and natural gas sales$68,135 $72,346 Other revenues 1,723 7,157 Total revenues 69,858 79,503 Costs and Expenses: Lease operating expense 33,255 36,311 Pipeline incident loss 247 500 Gathering, processing and transportation 4,290 4,895 Exploration – 10 Taxes other than income 5,997 4,631 Depreciation, depletion and amortization 8,102 7,827 General and administrative expense 8,251 8,358 Accretion of asset retirement obligations 2,125 2,096 Realized (gain) loss on commodity derivatives (6,375) (3,680) Unrealized (gain) loss on commodity derivatives (18,672) 4,905 Other, net 38 98 Total costs and expenses 37,258 65,951 Operating Income (loss) 32,600 13,552 Other Income (Expense): Interest expense, net (3,756) (3,632) Other income (expense) (130) (109) Total Other Income (Expense) (3,886) (3,741) Income (loss) before reorganization items, net and income taxes 28,714 9,811 Income tax benefit (expense) – current (412) (557)Income tax benefit (expense) – deferred (5,650) (2,135) Net income (loss)$22,652 $7,119 Earnings per share: Basic and diluted earnings (loss) per share$0.54 $0.17
Selected Financial Data – UnauditedOperating Statistics Three Months Three Months Ended Ended(Amounts in $000s, except per unit data)September 30, 2024 June 30, 2024 Oil and natural gas revenue: Oil Sales$54,353 $57,789 NGL Sales 6,096 6,565 Natural Gas Sales 7,686 7,992 Total oil and natural gas sales – Unhedged$68,135 $72,346 Production volumes: Oil Sales – MBbls 758 756 NGL Sales – MBbls 301 345 Natural Gas Sales – MMcf 4,165 4,453 Total – MBoe 1,752 1,843 Total – MBoe/d 19.0 20.3 Average sales price (excluding commodity derivatives): Oil – per Bbl$71.74 $76.51 NGL – per Bbl$20.29 $18.99 Natural gas – per Mcf$1.85 $1.79 Total – per Boe$38.88 $39.25 Average unit costs per Boe: Lease operating expense$18.98 $19.70 Gathering, processing and transportation$2.45 $2.66 Taxes other than income$3.42 $2.51 General and administrative expense$4.71 $4.53 Realized gain/(loss) on commodity derivatives$3.64 $2.00 Depletion, depreciation, and amortization$4.62 $4.25
Selected Financial Data – UnauditedAsset Operating Statistics Three Months Three Months Ended Ended September 30, 2024 June 30, 2024 Production volumes – MBOE: Bairoil 294 301 Beta 304 277 Oklahoma 454 492 East Texas / North Louisiana 638 709 Eagle Ford (Non-op) 62 64 Total – MBoe 1,752 1,843 Total – MBoe/d 19.0 20.3 % – Liquids 60% 60% Lease operating expense – $M: Bairoil$13,164 $13,423 Beta 9,520 11,889 Oklahoma 3,644 3,896 East Texas / North Louisiana 5,592 5,386 Eagle Ford (Non-op) 1,335 1,717 Total Lease operating expense:$33,255 $36,311 Capital expenditures – $M: Bairoil$1,224 $3 Beta 12,047 15,991 Oklahoma 1,449 788 East Texas / North Louisiana 2,303 472 Eagle Ford (Non-op) 1,157 436 Magnify Energy Services 44 314 Total Capital expenditures:$18,224 $18,004
Selected Financial Data – Unaudited Balance Sheet Data (Amounts in $000s) September 30, 2024 June 30, 2024 Assets Cash and Cash Equivalents $- $ 502 Accounts Receivable 32,295 36,306 Other Current Assets 37,862 25,210 Total Current Assets $ 70,157 $ 62,018 Net Oil and Gas Properties $ 378,871 $ 368,802 Other Long-Term Assets 290,188 289,555 Total Assets $ 739,216 $ 720,375 Liabilities Accounts Payable $ 18,107 $ 25,056 Accrued Liabilities 36,699 35,831 Other Current Liabilities 11,362 12,629 Total Current Liabilities $ 66,168 $ 73,516 Long-Term Debt $ 120,000 $ 118,000 Asset Retirement Obligation 127,556 125,739 Other Long-Term Liabilities 10,822 12,831 Total Liabilities $ 324,546 $ 330,086 Shareholders’ Equity Common Stock & APIC $ 438,709 $ 436,980 Accumulated Earnings (Deficit) (24,039) (46,691) Total Shareholders’ Equity $ 414,670 $ 390,289
Selected Financial Data – UnauditedStatements of Cash Flows Data Three Months Three Months Ended Ended(Amounts in $000s)September 30, 2024 June 30, 2024 Net cash provided by (used in) operating activities$15,737 $15,389 Net cash provided by (used in) investing activities (18,078) (20,853)Net cash provided by (used in) financing activities 1,839 2,977
Selected Operating and Financial Data (Tables)Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial MeasuresAdjusted EBITDA1 and Free Cash Flow Three Months Three Months Ended Ended(Amounts in $000s)September 30, 2024 June 30, 2024 Reconciliation of Adjusted EBITDA1 to Net Cash Provided from Operating Activities: Net cash provided by operating activities$15,737 $15,389 Changes in working capital 5,937 10,348 Interest expense, net 3,756 3,632 Cash settlements received on terminated commodity derivatives (793) – Amortization and write-off of deferred financing fees (310) (304) Exploration costs – 10 Acquisition and divestiture related costs 186 9 Plugging and abandonment cost 372 514 Current income tax expense (benefit) 412 557 Pipeline incident loss 247 500 Other – 94 Adjusted EBITDA1:$25,544 $30,749 Reconciliation of Free Cash Flow to Net Cash Provided from Operating Activities: Adjusted EBITDA1:$25,544 $30,749 Less: Cash interest expense 3,721 3,594 Less: Capital expenditures 18,224 18,004 Free Cash Flow:$3,599 $9,151
(1) Adjusted EBITDA includes a revenue suspense release of $7.0 million for the three months ended June 30, 2024. See “Revenue Payables in Suspense” table for additional information.
Selected Operating and Financial Data (Tables)Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial MeasuresAdjusted EBITDA1 and Free Cash Flow Three Months Three Months Ended Ended(Amounts in $000s) September 30, 2024 June 30, 2024 Reconciliation of Adjusted EBITDA1 to Net Income (Loss): Net income (loss) $22,652 $7,119 Interest expense, net 3,756 3,632 Income tax expense (benefit) – current 412 557 Income tax expense (benefit) – deferred 5,650 2,135 Depreciation, depletion and amortization 8,102 7,827 Accretion of asset retirement obligations 2,125 2,096 (Gains) losses on commodity derivatives (25,047) 1,225 Cash settlements received (paid) on expired commodity derivative instruments 5,582 3,680 Acquisition and divestiture related costs 186 9 Share-based compensation expense 1,815 1,767 Exploration costs – 10 Loss on settlement of AROs 38 98 Bad debt expense 26 – Pipeline incident loss 247 500 Other – 94 Adjusted EBITDA1: $25,544 $30,749 Reconciliation of Free Cash Flow to Net Income (Loss): Adjusted EBITDA1: $25,544 $30,749 Less: Cash interest expense 3,721 3,594 Less: Capital expenditures 18,224 18,004 Free Cash Flow: $3,599 $9,151
(1) Adjusted EBITDA includes a revenue suspense release of $7.0 million for the three months ended June 30, 2024. See “Revenue Payables in Suspense” table for additional information.
Selected Operating and Financial Data (Tables)Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial MeasuresCash General and Administrative Expenses Three Months Three Months Ended Ended(Amounts in $000s) September 30, 2024 June 30, 2024 General and administrative expense $8,251 $8,358 Less: Share-based compensation expense 1,815 1,767 Less: Acquisition and divestiture costs 186 9 Less: Bad debt expense 26 — Less: Severance payments — — Total Cash General and Administrative Expense $6,224 $6,582
Selected Operating and Financial Data (Tables)Reconciliation of Unaudited GAAP Financial Measures to Non-GAAP Financial MeasuresRevenue Payables in Suspense Three Months Nine Months Ended Ended(Amounts in $000s)September 30, 2024 September 30, 2024 Oil and natural gas sales$- $4,023 Other revenues – 4,829 Severance tax and other deducts – (433)Total net revenue$- $8,419 Production volumes: Oil (MBbls) – 33 NGLs (MBbls) – 31 Natural gas (MMcf) – 441 Total (Mboe) – 138 Total (Mboe/d) – 0.50
