HOUSTON, May 11, 2017 /PRNewswire/ -- Yuma Energy, Inc. (NYSE MKT: YUMA) (the "Company" or "Yuma") today announced its financial results for the quarter ended March 31, 2017.

First Quarter 2017 Highlights

  • Net average production was 2,886 Boe/d for the first quarter of 2017, a 99.4 percent increase over the first quarter of 2016, and a 15.5 percent increase over the fourth quarter of 2016.
  • Net income was $2,602,125 for the first quarter of 2017, compared to a net loss of $12,450,558 in the first quarter of 2016.
  • Cash provided by operating activities was $951,526 for the first quarter of 2017, compared to cash used in operations of $892,311 in the first quarter of 2016.
  • Lac Blanc Field, Vermillion Parish, Louisiana – During March 2017, the Company performed workover operations on the SL 18090 #2 well re-establishing production from the Miocene Siphonina D-1 sand (18,700 feet sand).  Before the workover the well had been shut-in.  Currently, the well is producing approximately 2.1 MMcf/d of natural gas and 40 Bbl/d of oil (1.3 MMcf/d and 28 Bbl/d net).
  • The Company recently entered into a joint development agreement covering 33,280 acres in an area of mutual interest ("AMI") with two private companies and it acquired an 87.5% working interest in approximately 2,269 acres (1,985 net acres) in Yoakum County to horizontally develop the San Andres Play in the Permian Basin of west Texas.  Yuma is the operator of the joint venture and intends to spud its first joint venture well in 2017, as well as acquire additional acreage within the AMI.   

Management Comments

Sam L. Banks, CEO of Yuma Energy, Inc., commented, "We are excited about our Permian Basin acquisition and look forward to expanding our position in the San Andres horizontal play.  We are well positioned to execute our business strategy of investing in relatively low-risk and low capital opportunities within our existing inventory and grow shareholder value by organically increasing our inventory in the San Andres play.  As can be seen in the first quarter results, the merger with Davis has improved our liquidity and financial position, and nearly doubled our production."

Financial Results

Production

The following table presents the net quantities of oil, natural gas and natural gas liquids produced and sold by the Company for the three month periods ended March 31, 2017 and 2016, and the average sales price per unit sold.


Three Months Ended March 31,


2017


2016

Production volumes:




   Crude oil and condensate (Bbls)

76,397


34,718

   Natural gas (Mcf)

899,427


400,365

   Natural gas liquids (Bbls)

33,474


30,262

     Total (Boe) (1)

259,776


131,708

Average prices realized:




   Crude oil and condensate (per Bbl)

$49.95


$29.95

   Natural gas (per Mcf)

$2.84


$1.96

   Natural gas liquids (per Bbl)

$23.15


$11.69





(1)

Barrels of oil equivalent have been calculated on the basis of six thousand cubic feet (Mcf) of natural gas equal to one barrel of oil equivalent (Boe).

Revenues

The following table presents the Company's revenues for the three month periods ended March 31, 2017 and 2016.


Three Months Ended March 31,


2017


2016

Sales of natural gas and crude oil:




 Crude oil and condensate

$             3,815,932


$             1,039,687

 Natural gas

2,553,443


785,610

 Natural gas liquids

775,049


353,635

   Total revenues

$             7,144,424


$             2,178,932

Expenses

The Company's lease operating expenses ("LOE") and LOE per Boe for the three month periods ended March 31, 2017 and 2016, are set forth below:


Three Months Ended March 31,


2017


2016

Lease operating expenses

$        1,697,908


$           629,988

Severance, ad valorem taxes and marketing

963,356


356,709

     Total LOE

$        2,661,264


$           986,697





LOE per Boe

$10.24


$7.49

LOE per Boe without severance, ad valorem taxes and marketing

$6.54


$4.78

Commodity Derivative Instruments

Commodity derivative instruments open as of March 31, 2017 are provided below.  Natural gas prices are NYMEX Henry Hub prices, and crude oil prices are NYMEX West Texas Intermediate.


2017


2018


2019


Settlement


Settlement


Settlement

NATURAL GAS (MMBtu):






Swaps






   Volume

1,748,574


1,451,734


-

   Price 

$3.13


$3.00


-







3-way collars






   Volume

132,587


-


-

   Ceiling sold price (call) 

$3.38


-


-

   Floor purchased price (put) 

$3.02


-


-

   Floor sold price (short put) 

$2.47


-


-







CRUDE OIL (Bbls):






Swaps






   Volume

105,214


195,152


156,320

   Price 

$52.24


$53.17


$53.77







3-way collars






   Volume

83,023


-


-

   Ceiling sold price (call) 

$77.00


-


-

   Floor purchased price (put) 

$60.00


-


-

   Floor sold price (short put) 

$45.00


-


-

About Yuma Energy, Inc.

Yuma Energy, Inc., a Delaware corporation, is an independent Houston-based exploration and production company focused on delivering competitive returns to stockholders by acquiring, developing and exploring for conventional and unconventional oil and natural gas resources. We are committed to conducting our business in a manner that protects the environment and public health while upholding our values of integrity, trust, and open communications in all business activities.  Our operations are currently focused on onshore properties located in southern Louisiana, southeastern Texas, the Permian Basin of west Texas, and Kern and Santa Barbara Counties in California. In addition, we have non-operated positions in the East Texas Eagle Ford and Woodbine and the Bakken Shale in North Dakota. Our common stock is traded on the NYSE MKT under the trading symbol "YUMA."

Reincorporation Merger and Davis Merger

On October 26, 2016, Yuma Energy, Inc., a California corporation ("Yuma California"), merged with and into the Company resulting in the reincorporation from California to Delaware (the "Reincorporation Merger"). In connection with the Reincorporation Merger, Yuma California converted each outstanding share of its 9.25% Series A Cumulative Redeemable Preferred Stock (the "Yuma California Series A Preferred Stock"), into 35 shares of its common stock (the "Yuma California Common Stock"), and then each share of Yuma California Common Stock was exchanged for one-twentieth of one share of common stock of the Company (the "common stock"). Immediately after the Reincorporation Merger on October 26, 2016, a wholly owned subsidiary of the Company merged (the "Davis Merger") with and into Davis, in exchange for approximately 7,455,000 shares of common stock and 1,754,179 shares of Series D Convertible preferred stock (the "Series D preferred stock"). The Series D preferred stock had an aggregate liquidation preference of approximately $19.4 million and a conversion rate of $11.0741176 per share at the closing of the Davis Merger, and will be paid dividends in the form of additional shares of Series D preferred stock at a rate of 7% per annum. As a result of the Davis Merger, the former holders of Davis common stock received approximately 61.1% of the then outstanding common stock of the Company and thus acquired voting control. Although the Company was the legal acquirer, for financial reporting purposes the Davis Merger was accounted for as a reverse acquisition of the Company by Davis.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects," "believes," "intends," "anticipates," "plans," "estimates," "potential," "possible," or "probable" or statements that certain actions, events or results "may," "will," "should," or "could" be taken, occur or be achieved. The forward-looking statements include statements about future operations, and estimates of reserve and production volumes. Forward-looking statements are based on current expectations and assumptions and analyses made by the Company in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform with expectations is subject to a number of risks and uncertainties, including but not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas); risks and uncertainties involving geology of oil and natural gas deposits; the uncertainty of reserve estimates; revisions to reserve estimates as a result of changes in commodity prices; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather; further declines in oil and natural gas prices; inability of management to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change.  The Company's annual report on Form 10-K for the year ended December 31, 2016, recent quarterly reports on Form 10-Q, recent current reports on Form 8-K, and other SEC filings discuss some of the important risk factors identified that may affect its business, results of operations, and financial condition. The Company undertakes no obligation to revise or update publicly any forward-looking statements, except as required by law.

Yuma Energy, Inc.


CONSOLIDATED BALANCE SHEETS

(Unaudited)






March 31,


December 31,


2017


2016





ASSETS 








CURRENT ASSETS:




Cash and cash equivalents 

$        2,927,494


$        3,625,686

Accounts receivable, net of allowance for doubtful accounts:




   Trade

5,485,155


4,827,798

   Officers and employees

60,461


68,014

   Other

1,903,274


1,757,337

Commodity derivative instruments

478,242


-

Prepayments

757,111


1,063,418

Other deferred charges

309,789


284,305





Total current assets

11,921,526


11,626,558





OIL AND GAS PROPERTIES (full cost method):




Proved properties

490,389,144


488,723,905

Unproved properties - not subject to amortization

5,473,755


3,656,989






495,862,899


492,380,894

Less:  accumulated depreciation, depletion and amortization

(413,471,472)


(410,440,433)





Net oil and gas properties

82,391,427


81,940,461





OTHER PROPERTY AND EQUIPMENT:




Land, buildings and improvements

1,600,000


1,600,000

Other property and equipment

7,034,591


7,136,530


8,634,591


8,736,530

Less: accumulated depreciation and amortization

(5,436,568)


(5,349,145)





Net other property and equipment

3,198,023


3,387,385





OTHER ASSETS AND DEFERRED CHARGES:




Commodity derivative instruments

674,431


-

Deposits

467,592


467,306

Other noncurrent assets

486,326


517,201





Total other assets and deferred charges

1,628,349


984,507





TOTAL ASSETS 

$      99,139,325


$      97,938,911





 

Yuma Energy, Inc.


CONSOLIDATED BALANCE SHEETS – CONTINUED

(Unaudited)






March 31,


December 31,


2017


2016





LIABILITIES AND EQUITY








CURRENT LIABILITIES:




Current maturities of debt

$           344,315


$           599,341

Accounts payable, principally trade

11,375,720


11,009,631

Commodity derivative instruments

250,592


1,340,451

Asset retirement obligations

383,830


376,735

Other accrued liabilities

3,179,182


2,572,680





Total current liabilities

15,533,639


15,898,838





LONG-TERM DEBT

39,500,000


39,500,000





OTHER NONCURRENT LIABILITIES:




Asset retirement obligations

9,951,122


9,819,648

Commodity derivative instruments

-


1,215,551





Total other noncurrent liabilities

9,951,122


11,035,199





COMMITMENTS AND CONTINGENCIES (Note 13)








EQUITY




Preferred stock




Series D Convertible ($.001 par value, 7,000,000 authorized, 1,807,385 issued as of March 31, 2017 and 1,776,718 issued as of  December 31, 2016)

1,808


1,777

Common stock




($.001 par value, 100 million shares authorized, 12,211,256 issued as of March 31, 2017 and 12,201,884 issued as of December 31,  2016)

12,211


12,202

Paid-in capital

44,268,868


43,877,563

Treasury stock at cost (1,109 shares as of March 31, 2017 and -0-   shares as of December 31, 2016)

(4,170)


-

Accumulated earnings (deficit)

(10,124,153)


(12,386,668)





Total equity

34,154,564


31,504,874





TOTAL LIABILITIES AND EQUITY

$      99,139,325


$      97,938,911





 

Yuma Energy, Inc.


CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)




Three Months Ended March 31,


2017


2016





REVENUES:




Sales of natural gas and crude oil

$        7,144,424


$          2,178,932





EXPENSES:




Lease operating and production costs

2,661,264


986,697

General and administrative – stock-based compensation

51,735


196,924

General and administrative – other

2,176,002


2,165,514

Depreciation, depletion and amortization

3,140,940


1,788,225

Asset retirement obligation accretion expense

138,569


52,059

Impairment of oil and gas properties

-


9,847,887

Gain on asset sales

(555,642)


-

Other

-


3,188

   Total expenses

7,612,868


15,040,494





LOSS FROM OPERATIONS

(468,444)


(12,861,562)





OTHER INCOME (EXPENSE):




Net gains from commodity derivatives

3,556,783


456,314

Interest expense

(496,091)


(42,708)

Other, net

36,408


-

   Total other income (expense)

3,097,100


413,606





INCOME (LOSS) BEFORE INCOME TAXES

2,628,656


(12,447,956)





Income tax expense 

26,531


2,602





NET INCOME (LOSS)

2,602,125


(12,450,558)





PREFERRED STOCK:




Dividends paid in kind

339,610


320,279





NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS

$        2,262,515


$      (12,770,837)





INCOME (LOSS) PER COMMON SHARE:




Basic

$0.19


($1.71)

Diluted

$0.16


($1.71)





WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:







Basic

12,211,256


7,454,062

Diluted

14,056,170


7,454,062





 

Yuma Energy, Inc.


CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)




Three Months Ended March 31,


2017


2016

CASH FLOWS FROM OPERATING ACTIVITIES:




Reconciliation of net loss to net cash provided by (used in) operating activities:




   Net loss

$          2,602,125


$      (12,450,558)

   Depreciation, depletion and amortization of property and equipment

3,140,940


1,788,225

   Impairment of oil and gas properties

-


9,847,887

   Amortization of debt issuance costs

81,843


-

   Net deferred income tax benefit

-


2,602

   Stock-based compensation expense

51,735


196,924

   Settlement of asset retirement obligations

-


(12,324)

   Accretion of asset retirement obligation

138,569


52,059

   Bad debt expense

-


3,188

   Net gains from commodity derivatives

(3,556,783)


(456,314)

   Gain on sales of fixed assets

(555,642)


-

Changes in assets and liabilities:




   (Increase) decrease in accounts receivable

(795,740)


1,445,512

   Decrease in prepaids, deposits and other assets

306,021


232,729

   Decrease in accounts payable and other current and non-current liabilities

(461,542)


(1,542,241)





NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

951,526


(892,311)





CASH FLOWS FROM INVESTING ACTIVITIES:




Capital expenditures for oil and gas properties

(2,053,826)


(4,663,114)

Proceeds from sale of oil and gas properties and other fixed assets

641,056


-

Derivative settlements

98,700


535,488





NET CASH USED IN INVESTING ACTIVITIES

(1,314,070)


(4,127,626)





CASH FLOWS FROM FINANCING ACTIVITIES:




Proceeds from borrowings

-


4,000,000

Repayments of borrowings

(255,026)


-

Debt issuance costs

(76,452)


-

Treasury stock repurchases

(4,170)


-





NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES

(335,648)


4,000,000





NET DECREASE IN CASH AND CASH EQUIVALENTS

(698,192)


(1,019,937)





CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

3,625,686


4,064,094





CASH AND CASH EQUIVALENTS AT END OF PERIOD

$          2,927,494


$          3,044,157





Supplemental disclosure of cash flow information:




Interest payments (net of interest capitalized)

$             264,542


$               42,709

Income tax payments

$                         -


$                         -





Supplemental disclosure of significant non-cash activity:




(Increase) decrease in capital expenditures financed by accounts payable

$        (1,434,132)


$        (1,613,607)





 

 

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SOURCE Yuma Energy, Inc.