hrst_Current_Folio_8K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): August 14, 2019

 

Harvest Oil & Gas Corp.

(Exact name of registrant as specified in its charter)

 

 

Delaware

001-33024

83-0656612

(State or other Jurisdiction
of Incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

 

 

 

1001 Fannin Street, Suite 750, Houston, Texas

77002

(Address of Principal Executive Offices)

(Zip Code)

 

 

 

Registrant’s telephone number, including area code: (713) 651-1144

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act: None.  

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 

 

Item 2.02Results of Operations and Financial Condition.

On August 14, 2019, Harvest Oil & Gas Corp. issued a press release providing information on its results of operations for the second quarter ended June 30, 2019. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information under this Item 2.02 and in Exhibit 99.1 in this Current Report on Form 8-K are being furnished and shall not be deemed “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information under this Item 2.02 and in Exhibit 99.1 in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 9.01Financial Statements and Exhibits.

(d) Exhibits

 

 

 

 

 

Exhibit Number

Description

99.1

Press release issued August 14, 2019.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

Harvest Oil & Gas Corp.

 

 

 

August 14, 2019

By:

/s/ RYAN STASH

 

 

Ryan Stash

 

 

Vice President and Chief Financial Officer

 

hrst_Current_Folio_EX_99.1_ER_Quarterly

 

Harvest Oil & Gas Announces Second Quarter 2019 Results

HOUSTON, August 14, 2019 (Globe Newswire) -- Harvest Oil & Gas Corp. (OTCQX: HRST) (“Harvest” or the “Company”) today announced results for the second quarter of 2019 and the filing of its Form 10-Q with the Securities and Exchange Commission (“SEC”) on August 14, 2019. Harvest is the successor reporting company to EV Energy Partners, L.P.

Key Highlights

·

Average daily production was 112.3 MMcfe for the second quarter of 2019

·

In July, announced a definitive agreement to sell oil and gas properties in the Barnett Shale for $72 million, subject to purchase price adjustments, which is expected to close in the third quarter of 2019

·

In July, entered into a definitive agreement to sell certain oil and gas properties in the Mid-Continent area for $6.5 million, subject to purchase price adjustments, which is expected to close in the third quarter of 2019

·

Paid down remaining $55 million of debt under credit facility during second quarter resulting in $0 debt outstanding under the credit facility as of June 30, 2019

 

Second Quarter 2019 Financial Results

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

First Quarter

$ in millions unless noted otherwise

 

 

2019

 

2019

Average daily production (MMcfe/d)

 

 

 

112.3

 

 

 

137.2

 

Total revenues

 

 

$

30.6

 

 

$

43.8

 

Total assets

 

 

 

317.9

 

 

 

442.3

 

Net loss

 

 

 

(60.9)

 

 

 

(35.8)

 

Adjusted EBITDAX (a non-GAAP  financial measure) (1)

 

 

 

6.9

 

 

 

12.4

 

Total debt

 

 

 

 -

 

 

 

55.0

 

Net cash provided by operating activities

 

 

 

9.7

 

 

 

19.4

 

Additions to oil and natural gas properties (2)

 

 

 

1.4

 

 

 

0.4

 


(1)

Adjusted EBITDAX is a Non-GAAP financial measure and is described in the attached table under “Non-GAAP Measures”

(2)

Represents cash payments during the period

 

For the second quarter of 2019, Harvest reported a net loss of $60.9 million, or $(6.05) per basic and diluted weighted average share outstanding compared to a net loss of $35.8 million, or $(3.56) per basic and diluted weighted average share outstanding, for the first quarter of 2019.  For the second quarter of 2018, a net loss of $595.6 million was reported, which reflects the combined results of two months ended May 31, 2018 (Predecessor) and one month ended June 30, 2018 (Successor). Included in the 2019 second quarter net loss were the following items:

·

$73.2 million of impairment of oil and natural gas properties primarily related to the Barnett Shale, which was held for sale as of June 30, 2019,

·

$13.6 million of non-cash gains on commodity derivatives,

·

$0.5 million of divestiture related expense contained in general and administrative expenses,  

·

$0.7 million of litigation settlement expenses contained in general and administrative expenses, and

·

$0.7 million of stock-based compensation costs contained in general and administrative expenses.

Production for the second quarter of 2019 was 7.1 Bcf of natural gas, 146 MBbls of oil and 369 MBbls of natural gas liquids (NGLs), or 112.3 million cubic feet equivalent per day (MMcfe/d). This represents an 18 percent decrease from the first quarter of 2019 production of 137.2  MMcfe/d and a 38 percent decrease from the second quarter of 2018 production of 181.8  MMcfe/d.  The decrease in production from the first quarter of 2019 was primarily due to the divestiture of oil and gas properties in the San Juan Basin that closed in  April 2019,  as well as a divestiture in the Mid-Continent area that closed in January 2019 and natural production declines.  The decrease in production from the second quarter of 2018 was primarily due to the divestiture of the Central Texas and Karnes County, Texas properties that closed in August 2018, the Central Texas area divestiture that closed in December 2018, the Mid-Continent area divestitures that closed in December 2018, January 2019,  and April 2019, the San Juan Basin divestiture that closed in April 2019 and natural production declines.

Adjusted EBITDAX for the second quarter of 2019 was $6.9 million, a 45 percent decrease from the  first quarter of 2019 and a 76 percent decrease from the second quarter of 2018. The decrease in Adjusted EBITDAX from the first quarter of 2019 was primarily due to the San Juan divestiture that closed in April 2019, the Mid-Continent area divestiture that closed

in April 2019, and a decrease in realized natural gas and natural gas liquids prices, partially offset by an increase in realized hedge gains compared to the previous period, an increase in other income, and an increase in realized oil prices.  The decrease in Adjusted EBITDAX from the second quarter of 2018 was primarily due to the divestitures that closed in 2018, January 2019 and April 2019,  and a decrease in realized oil and natural gas liquids prices, partially offset by an increase in realized commodity hedge gains, an increase in other income, and an increase in realized natural gas prices.  Adjusted EBITDAX is a Non-GAAP financial measures and is described in the attached table under “Non-GAAP Measures.”

Divestitures

Barnett Shale

As previously announced in July 2019, Harvest has entered into a definitive agreement to sell substantially all of its interests in the Barnett Shale for $72 million (subject to purchase price adjustments). The transaction is expected to close in the third quarter of 2019 and has an effective date of April 1, 2019.

Harvest’s Barnett Shale production for the first six months of 2019 averaged 54.5 MMcfe per day. The estimated proved reserves as of December 31, 2018 for the interests being divested, using SEC prices, were 276.6 Bcfe (62% natural gas, 37% natural gas liquids and 1% crude oil).

Mid-Continent Area

In July 2019,  Harvest entered into a definitive agreement to sell certain oil and gas properties in the Mid-Continent area located in the Anadarko Basin and Scoop-Stack for $6.5 million (subject to purchase price adjustments). The transaction is expected to close in the third quarter of 2019 and has an effective date of January 1, 2019.

Harvest’s Mid-Continent production for the first six months of 2019 for the interests being divested averaged 7.8 MMcfe per day. The estimated proved reserves as of December 31, 2018 for the interests being divested, using SEC prices, were 18.5 Bcfe (61% natural gas, 19% natural gas liquids and 20% crude oil).

Harvest is currently considering ways to return net proceeds from its asset sales to shareholders.

Updated 2019 Guidance

Subsequent to the announcement of the Barnett Shale and Mid-Continent area divestitures, Harvest has updated guidance for the third and fourth quarters of 2019 in the following table.

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

 

3Q 2019 (1)

 

4Q 2019 (1)

 

Net Production

 

 

 

 

 

 

 

 

 

 

Natural Gas (Mmcf)

 

 

5,515

-

6,096

 

3,218

-

3,557

 

Crude Oil (Mbbls)

 

 

130

-

144

 

108

-

119

 

Natural Gas Liquids (Mbbls)

 

 

239

-

265

 

45

-

49

 

Total Mmcfe

 

 

7,732

-

8,546

 

4,134

-

4,569

 

 

 

 

 

 

 

 

 

 

 

 

Average Daily Production (Mmcfe/d)

 

 

84

-

93

 

45

-

50

 

 

 

 

 

 

 

 

 

 

 

 

Net Transportation Margin / Other Income (2)

 

 

$
0.3

-

$
0.5

 

$
0.3

-

$
0.5

 

 

 

 

 

 

 

 

 

 

 

 

Average Price Differential vs NYMEX

 

 

 

 

 

 

 

 

 

 

Natural Gas ($/Mcf)

 

 

($0.55)

-

($0.25)

 

($0.55)

-

($0.25)

 

Crude Oil ($/Bbl)

 

 

($3.50)

-

($1.50)

 

($4.00)

-

($2.00)

 

NGL (% of NYMEX Crude Oil)

 

 

22%

-

26%

 

26%

-

30%

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

 

 

LOE and other

 

 

$
16.9

-

$
18.7

 

$
10.4

-

$
11.4

 

Production Taxes (as % of revenue)

 

 

3.2%

-

3.8%

 

1.7%

-

2.3%

 

 

 

 

 

-

 

 

 

-

 

 

General and administrative expense (3)

 

 

$
4.3

-

$
5.3

 

$
4.0

-

$
5.0

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditures (4)    

 

 

$
0.8

-

$
1.5

 

–  

-

$
0.5

 


(1)

Assumes Barnett Shale and Mid-Continent area divestitures close at the end of August 2019.

(2)

Represents estimated transportation and marketing-related revenues less cost of purchased natural gas plus other income/(expense), net.

(3)

Excludes non-cash general and administrative expense, of which non-cash share-based compensation is a part. Also excludes any amounts for divestiture or acquisition related due diligence and transaction costs.

(4)

Represents estimates for drilling, capital workover and related capital expenditures.

 

Quarterly Report on Form 10-Q

Harvest’s financial statements and related footnotes are available in its Quarterly Report on Form 10-Q, which was filed on August 14, 2019, and is available through the Investor Relations/SEC Filings section of the Harvest website at http://www.hvstog.com.

About Harvest Oil & Gas Corp.

Harvest is an independent oil and gas company engaged in the efficient operation and development of onshore oil and gas properties in the continental United States. The Company’s assets consist primarily of producing and non-producing properties in the Barnett Shale, the Appalachian Basin (which includes the Utica Shale), Michigan, the Mid-Continent areas in Oklahoma, Texas, Kansas, and Louisiana, the Permian Basin, and the Monroe Field in Northern Louisiana. More information about Harvest is available on the internet at https://www.hvstog.com.

Forward Looking Statements

This press release contains certain statements that are, or may be deemed to be, “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 facts, 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. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends affecting the financial condition of its business. These forward-looking statements are subject to a number of risks and uncertainties, most of which are difficult to predict and many of which are beyond its control. Please read the Company’s filings with the Securities and Exchange Commission, including “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2018 and other public filings and press releases for a discussion of risks and uncertainties that could cause actual results to differ from those in such forward-looking statements. These risks include, but are not limited to, risks relating to pending asset sales, including risks relating to the consummation of such sales in accordance with their terms or at all, our inability to control our contract operator, EnerVest Operating, L.L.C., outside of the parameters of the Services Agreement, our ability to obtain needed capital or financing on satisfactory terms, fluctuations in prices of oil, natural gas and natural gas liquids and the length of time commodity prices remain depressed, our ability to maintain production levels through development drilling, risks associated with drilling and operating wells, the availability of drilling and production equipment, changes in applicable laws and regulations that adversely affect our operations and general economic conditions. The words “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “plan,” “expect,” “indicate” and similar expressions are intended to identify forward-looking statements. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. Although the Company believes that the forward-looking statements contained in this press release are based upon reasonable assumptions, the forward-looking events and circumstances discussed in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements.

You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

Operating Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined

 

 

Three Months

 

One Month

 

 

Two Months

 

Three Months

 

 

Ended

 

Ended

 

 

Ended

 

Ended

 

 

June 30, 2019

 

June 30, 2018

 

 

May 31, 2018

 

Jun 30, 2018

Production data:

 

 

 

 

 

 

 

 

 

Oil (MBbls)

 

 

146

 

 

107

 

 

 

261

 

 

368

Natural gas liquids (MBbls)

 

 

369

 

 

215

 

 

 

405

 

 

620

Natural gas (MMcf)

 

 

7,131

 

 

3,612

 

 

 

7,001

 

 

10,613

Net production (MMcfe)

 

 

10,222

 

 

5,548

 

 

 

10,994

 

 

16,542

Average sales price per unit: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil (Bbl)

 

$

55.13

 

$

66.53

 

 

$

67.31

 

$

67.08

Natural gas liquids (Bbl)

 

 

14.95

 

 

26.55

 

 

 

26.27

 

 

26.37

Natural gas (Mcf)

 

 

2.32

 

 

2.40

 

 

 

2.08

 

 

2.19

Mcfe

 

 

2.95

 

 

3.88

 

 

 

3.89

 

 

3.89

Average unit cost per Mcfe:

 

 

 

 

 

 

 

 

 

 

 

 

 

Production costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

$

2.13

 

$

1.69

 

 

$

1.62

 

$

1.64

Production taxes

 

 

0.14

 

 

0.17

 

 

 

0.17

 

 

0.17

Total

 

 

2.27

 

 

1.86

 

 

 

1.79

 

 

1.81

Depreciation, depletion and amortization

 

 

0.43

 

 

0.49

 

 

 

1.75

 

 

1.33

General and administrative expenses

 

 

0.65

 

 

0.37

 

 

 

0.72

 

 

0.60

 


(1)

Prior to realized $2.8 million net hedge gains on settlements of commodity derivatives for the three months ended June 30, 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined

 

 

Six Months

 

One Month

 

 

Five Months

 

Six Months

 

 

Ended

 

Ended

 

 

Ended

 

Ended

 

 

June 30, 2019

 

June 30, 2018

 

 

May 31, 2018

 

Jun 30, 2018

Production data:

 

 

 

 

 

 

 

 

 

Oil (MBbls)

 

 

324

 

 

107

 

 

 

662

 

 

769

Natural gas liquids (MBbls)

 

 

853

 

 

215

 

 

 

1,040

 

 

1,255

Natural gas (MMcf)

 

 

15,506

 

 

3,612

 

 

 

16,982

 

 

20,594

Net production (MMcfe)

 

 

22,571

 

 

5,548

 

 

 

27,193

 

 

32,741

Average sales price per unit: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil (Bbl)

 

$

53.96

 

$

66.53

 

 

$

64.14

 

$

64.47

Natural gas liquids (Bbl)

 

 

18.25

 

 

26.55

 

 

 

25.86

 

 

25.98

Natural gas (Mcf)

 

 

2.60

 

 

2.40

 

 

 

2.41

 

 

2.41

Mcfe

 

 

3.25

 

 

3.88

 

 

 

4.06

 

 

4.03

Average unit cost per Mcfe:

 

 

 

 

 

 

 

 

 

 

 

 

 

Production costs:

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease operating expenses

 

$

1.99

 

$

1.69

 

 

$

1.67

 

$

1.67

Production taxes

 

 

0.16

 

 

0.17

 

 

 

0.20

 

 

0.19

Total

 

 

2.15

 

 

1.86

 

 

 

1.87

 

 

1.86

Depreciation, depletion and amortization

 

 

0.41

 

 

0.49

 

 

 

1.70

 

 

1.49

General and administrative expenses

 

 

0.58

 

 

0.37

 

 

 

0.58

 

 

0.54


(1)

Prior to realized $3.5 million and $1.6 million of net hedge gains on settlements of commodity derivatives for the six months ended June 30, 2019 and 2018, respectively.

 

 

Unaudited Condensed Consolidated Balance Sheets

($ in thousands, except number of shares)

 

 

 

 

 

 

 

 

 

    

June 30, 2019

 

    

December 31, 2018

ASSETS

 

 

  

 

 

 

  

Current assets:

 

 

  

 

 

 

  

Cash and cash equivalents

 

$

13,650

 

 

$

6,313

Equity securities

 

 

 —

 

 

 

47,082

Accounts receivable:

 

 

 

 

 

 

 

Oil, natural gas and natural gas liquids revenues

 

 

29,252

 

 

 

40,176

Other

 

 

1,355

 

 

 

4,496

Derivative asset

 

 

14,137

 

 

 

15,452

Other current assets

 

 

944

 

 

 

2,314

Total current assets

 

 

59,338

 

 

 

115,833

 

 

 

 

 

 

 

 

Oil and natural gas properties, net of accumulated depreciation, depletion

 

 

 

 

 

 

 

and amortization; June 30, 2019, $7,175; December 31, 2018, $12,950

 

 

159,388

 

 

 

405,688

Assets held for sale

 

 

87,260

 

 

 

 —

Long-term derivative asset

 

 

4,781

 

 

 

8,499

Other assets

 

 

7,112

 

 

 

4,474

Total assets

 

$

317,879

 

 

$

534,494

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

  

 

 

 

  

Current liabilities:

 

 

  

 

 

 

  

Accounts payable and accrued liabilities

 

$

25,095

 

 

$

26,146

Derivative liability

 

 

 —

 

 

 

1,165

Other current liabilities

 

 

731

 

 

 

 —

Total current liabilities

 

 

25,826

 

 

 

27,311

 

 

 

 

 

 

 

 

Asset retirement obligations

 

 

102,108

 

 

 

117,529

Long–term debt, net

 

 

 —

 

 

 

115,000

Liabilities held for sale

 

 

10,618

 

 

 

 —

Other long–term liabilities

 

 

1,804

 

 

 

1,036

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

Mezzanine equity

 

 

135

 

 

 

79

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

  

Common stock - $0.01 par value; 65,000,000 shares authorized;

 

 

 

 

 

 

 

10,141,512 shares issued and 10,117,472 shares outstanding as of

 

 

 

 

 

 

 

June 30, 2019; 10,054,816 shares issued and 10,042,468 shares

 

 

 

 

 

 

 

outstanding as of December 31, 2018

 

 

101

 

 

 

100

Additional paid-in capital

 

 

250,414

 

 

 

249,717

Treasury stock at cost - 24,040 shares at June 30, 2019; 12,348

 

 

 

 

 

 

 

shares at December 31, 2018

 

 

(414)

 

 

 

(247)

Retained earnings (accumulated deficit)

 

 

(72,713)

 

 

 

23,969

Total stockholders' equity

 

 

177,388

 

 

 

273,539

Total liabilities and equity

 

$

317,879

 

 

$

534,494

 

Unaudited Condensed Consolidated Statements of Operations

($ in thousands, except per share/unit data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined

 

 

Three Months

 

One Month

 

 

Two Months

 

Three Months

 

 

Ended

 

Ended

 

 

Ended

 

Ended

 

 

June 30, 2019

 

June 30, 2018

 

 

May 31, 2018

 

Jun 30, 2018

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, natural gas and natural gas liquids revenues

 

$

30,129

 

$

21,535

 

 

$

42,749

 

$

64,284

Transportation and marketing–related revenues

 

 

458

 

 

185

 

 

 

340

 

 

525

Total revenues

 

 

30,587

 

 

21,720

 

 

 

43,089

 

 

64,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

  

 

 

  

 

 

 

  

 

 

  

Lease operating expenses

 

 

21,754

 

 

9,375

 

 

 

17,828

 

 

27,203

Cost of purchased natural gas

 

 

315

 

 

129

 

 

 

242

 

 

371

Dry hole and exploration costs

 

 

 —

 

 

43

 

 

 

40

 

 

83

Production taxes

 

 

1,450

 

 

970

 

 

 

1,818

 

 

2,788

Accretion expense on obligations

 

 

2,168

 

 

789

 

 

 

1,279

 

 

2,068

Depreciation, depletion and amortization

 

 

4,373

 

 

2,730

 

 

 

19,194

 

 

21,924

General and administrative expenses

 

 

6,653

 

 

2,029

 

 

 

7,923

 

 

9,952

Impairment of oil and natural gas properties

 

 

73,151

 

 

 —

 

 

 

 —

 

 

 —

(Gain) loss on sales of oil and natural gas properties

 

 

(5)

 

 

(19)

 

 

 

 7

 

 

(12)

Total operating costs and expenses

 

 

109,859

 

 

16,046

 

 

 

48,331

 

 

64,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

(79,272)

 

 

5,674

 

 

 

(5,242)

 

 

432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

  

 

 

  

 

 

 

  

 

 

  

Gain (loss) on derivatives, net

 

 

16,430

 

 

(4,232)

 

 

 

45

 

 

(4,187)

Interest expense

 

 

(1,315)

 

 

(1,199)

 

 

 

(3,176)

 

 

(4,375)

Other income, net

 

 

2,965

 

 

27

 

 

 

474

 

 

501

Total other income (expense), net

 

 

18,080

 

 

(5,404)

 

 

 

(2,657)

 

 

(8,061)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reorganization items, net

 

 

 —

 

 

(808)

 

 

 

(587,325)

 

 

(588,133)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(61,192)

 

 

(538)

 

 

 

(595,224)

 

 

(595,762)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit

 

 

285

 

 

 —

 

 

 

148

 

 

148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(60,907)

 

$

(538)

 

 

$

(595,076)

 

$

(595,614)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings per share / unit:

 

 

  

 

 

  

 

 

 

  

 

 

  

Net loss

 

$

(6.05)

 

$

(0.05)

 

 

$

(11.81)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares / units outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

10,064

 

 

10,000

 

 

 

49,369

 

 

 

Diluted

 

 

10,064

 

 

10,000

 

 

 

49,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Successor

 

 

Predecessor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined

 

 

Six Months

 

One Month

 

 

Five Months

 

Six Months

 

 

Ended

 

Ended

 

 

Ended

 

Ended

 

 

June 30, 2019

 

June 30, 2018

 

 

May 31, 2018

 

Jun 30, 2018

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil, natural gas and natural gas liquids revenues

 

$

73,415

 

$

21,535

 

 

$

110,307

 

$

131,842

Transportation and marketing–related revenues

 

 

1,018

 

 

185

 

 

 

724

 

 

909

Total revenues

 

 

74,433

 

 

21,720

 

 

 

111,031

 

 

132,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

  

 

 

  

 

 

 

  

 

 

  

Lease operating expenses

 

 

44,954

 

 

9,375

 

 

 

45,372

 

 

54,747

Cost of purchased natural gas

 

 

714

 

 

129

 

 

 

557

 

 

686

Dry hole and exploration costs

 

 

39

 

 

43

 

 

 

122

 

 

165

Production taxes

 

 

3,643

 

 

970

 

 

 

5,343

 

 

6,313

Accretion expense on obligations

 

 

4,378

 

 

789

 

 

 

3,176

 

 

3,965

Depreciation, depletion and amortization

 

 

9,345

 

 

2,730

 

 

 

46,196

 

 

48,926

General and administrative expenses

 

 

13,023

 

 

2,029

 

 

 

15,648

 

 

17,677

Restructuring costs

 

 

 —

 

 

 —

 

 

 

5,211

 

 

5,211

Impairment of oil and natural gas properties

 

 

99,279

 

 

 —

 

 

 

 3

 

 

 3

(Gain) loss on sales of oil and natural gas properties

 

 

(18)

 

 

(19)

 

 

 

 5

 

 

(14)

Total operating costs and expenses

 

 

175,357

 

 

16,046

 

 

 

121,633

 

 

137,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

(100,924)

 

 

5,674

 

 

 

(10,602)

 

 

(4,928)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

  

 

 

  

 

 

 

  

 

 

  

Gain (loss) on derivatives, net

 

 

(344)

 

 

(4,232)

 

 

 

444

 

 

(3,788)

Interest expense

 

 

(2,834)

 

 

(1,199)

 

 

 

(13,652)

 

 

(14,851)

Gain on equity securities

 

 

4,593

 

 

 —

 

 

 

 —

 

 

 —

Other income, net

 

 

2,827

 

 

27

 

 

 

776

 

 

803

Total other income (expense), net

 

 

4,242

 

 

(5,404)

 

 

 

(12,432)

 

 

(17,836)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reorganization items, net

 

 

 —

 

 

(808)

 

 

 

(587,325)

 

 

(588,133)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(96,682)

 

 

(538)

 

 

 

(610,359)

 

 

(610,897)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 —

 

 

 —

 

 

 

(166)

 

 

(166)

 

 

 

 

 

 

 

 

 

 

 

 

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