SUNDANCE ENERGY AUSTRALIA LTD DENVER, July 31, 2015 (GLOBE NEWSWIRE) -- Sundance Energy Australia Limited (ASX:SEA) (“Sundance” or the “Company”), a U.S. onshore oil and gas exploration and production company focused in the Eagle Ford and Greater Anadarko Basin, reported its unaudited second quarter 2015 results as filed with the Australian Securities Exchange (ASX).
Second Quarter 2015 Financial Results
- Realized Adjusted EBITDAX (a non-IFRS metric) of $41.2 million year-to-date and $19.2 million for the second quarter with Adjusted EBITDAX margins of 75% and 73% respectively, despite a 50% decrease in realized pricing for the same periods.
- Reduced cash operating costs from $15.13 / Boe for the year ended 31 December 2014 to $13.91 / Boe in the six months ended 30 June 2015 (8 percent reduction) due to a $0.50 per Boe reduction in LOE and production taxes and a $0.73 per Boe reduction in general and administrative expenses.
- Funded the majority of the Company’s year-to-date development capital expenditures of $50.6 million with operating cash flows of $41.2 million. The Company’s YTD development capital expenditures include $12.9 million of investments that will increase cash flows by increasing gas sales (eliminating flared production) or reducing lease operating expenses; these projects have an average pay-back period of six months.
- As at 30 June 2015, the Company had $3.5 million of cash and cash equivalents and $95 million of undrawn borrowing capacity for total liquidity of approximately $100 million. The Company’s debt to trailing twelve-month Adjusted EBITDAX was 1.3x ($155 million of debt as at 30 June 2015 and $117 million Adjusted EBITDAX for the trailing twelve-month period then ended).
- Refinanced the Company’s previous credit facility, the new Morgan Stanley facility provides $250 million of committed debt capacity with ~$100 million of liquidity at quarter-end.
Second Quarter 2015 Highlights
- Net oil, natural gas and natural gas liquids (“NGLs”) production, including flared gas, was 686,413 BOE, averaging 7,543 BOE per day as compared to 5,797 BOE per day for the same period in 2014 (30% increase).
- Completed installation of hydrogen sulfide (H2S) treatment facilities to reduce or eliminate flared natural gas production. Shut in ~21 wells during installation of the facilities for ~40 days resulting in estimated lost production of ~82,568 boe or ~907 boe/d during the quarter.
- Entered into a Share and Asset Sale Agreement with New Standard Energy to acquire their Eagle Ford and Cooper Basin assets, which include i) 5,500 net acres in Atascosa County, ii) approximately 175 Boe/d of production from 7 producing wells, iii) 2 wells drilled, but not completed and iv) 17.5 percent working interest in PEL570 in the Cooper Basin.
- 25 gross (15.7 net) horizontal wells were waiting on completion at quarter end, of which 12 gross (11.6 net) were Sundance-operated.
All amounts in the following tables are unaudited and presented in US thousands, except where stated otherwise.
The following table reflects production volumes, revenues and pricing compared to the corresponding period in the prior year.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||
| Production Summary | |||||||||||||
| Oil (BBLS) | 432,438 | 358,095 | 1,025,402 | 636,386 | |||||||||
| Natural gas (MCF) | 1,050,486 | 691,109 | 2,242,188 | 1,262,592 | |||||||||
| NGL (BBLS) | 78,894 | 54,280 | 149,594 | 105,864 | |||||||||
| Total BOE | 686,413 | 527,560 | 1,548,694 | 952,682 | |||||||||
| Average daily production, including flared gas | 7,543 | 5,797 | 8,556 | 5,263 | |||||||||
| Revenue | |||||||||||||
| Oil | $ | 23,933 | $ | 35,432 | $ | 50,347 | $ | 61,720 | |||||
| Natural gas | 1,083 | 1,938 | 2,707 | 3,833 | |||||||||
| NGL | 1,423 | 1,892 | 2,058 | 3,859 | |||||||||
| Total Revenue | $ | 26,439 | $ | 39,262 | $ | 55,112 | $ | 69,411 | |||||
| Realized Product Pricing | |||||||||||||
| Oil priced received (per BBL) | $ | 55.34 | $ | 98.95 | $ | 49.10 | $ | 96.99 | |||||
| Oil realized price, including oil hedging (per BBL) | $ | 59.93 | $ | 98.03 | $ | 53.88 | $ | 97.73 | |||||
| Natural gas priced received (per MCF) * | $ | 1.68 | $ | 4.28 | $ | 2.22 | $ | 4.76 | |||||
| Natural gas realized Price, including natural gas hedging (per MCF) * | $ | 1.85 | $ | 4.21 | $ | 2.37 | $ | 4.90 | |||||
| NGL realized price (per BBL) | $ | 18.04 | $ | 34.86 | $ | 13.75 | $ | 36.45 | |||||
| Total price received (per BOE) | $ | 42.75 | $ | 80.48 | $ | 39.99 | $ | 79.19 | |||||
| Total realized price (per BOE) | $ | 46.12 | $ | 81.22 | $ | 43.68 | $ | 79.86 | |||||
| * Excludes flared gas of 407,499 MCF and 238,351 MCF for the three months ended June 30, 2015 and 2014, respectively and 514,960 MCF and 229,883 MCF for the six months ended June 30, 2015 and 2014, respectively. | |||||||||||||
The following table summarizes operating costs on an actual (in US thousands) and per unit basis.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Costs: | ||||||||||||
| Lease Operating Expenses (LOE) | $ | 4,718 | $ | 2,465 | $ | 8,646 | $ | 6,267 | ||||
| Production Taxes | 1,377 | 2,383 | 3,241 | 4,009 | ||||||||
| Cash G&A, net of amounts capitalised | 3,443 | 4,690 | 7,282 | 7,807 | ||||||||
| Total | $ | 9,538 | $ | 9,538 | $ | 19,169 | $ | 18,083 | ||||
| Costs per BOE: | ||||||||||||
| LOE | $ | 7.63 | $ | 5.05 | $ | 6.27 | $ | 7.15 | ||||
| Production taxes | 2.22 | 4.89 | 2.36 | 4.57 | ||||||||
| Cash G&A | 5.57 | 9.61 | 5.28 | 8.91 | ||||||||
| Total | $ | 15.42 | $ | 19.55 | $ | 13.91 | $ | 20.63 | ||||
Additional Information
(1) We define “Adjusted EBITDAX” as earnings before interest expense, debt extinguishment costs, income taxes, depreciation, depletion and amortization, property impairments, gain/(loss) on sale of non-current assets, exploration expense, share based compensation and income and gains and losses on commodity hedging, net of settlements of commodity hedging.
The Company reports under International Financial Reporting Standards (IFRS). All amounts are reported in US dollars unless otherwise noted.
The Company’s full Unaudited Activities Report for the Quarter Ended June 30, 2015 can be found at www.sundanceenergy.net. The Company held a conference call, and simultaneous webcast with earnings presentation, which is available on the Company’s website at www.sundanceenergy.net.
The Company’s 2014 Annual Report was filed with the ASX on March 31, 2015 and can be found at www.sundanceenergy.net.
About Sundance Energy Australia Limited
Sundance Energy Australia Limited (“Sundance” or the “Company”) is an Australian-based, independent energy exploration company, with a wholly owned US subsidiary, Sundance Energy Inc., located in Denver, Colorado, USA.
The Company is focused on the acquisition and development of large, repeatable oil and natural gas resource plays in North America. Current activities are focused in the Eagle Ford and Greater Anadarko Basins. A comprehensive overview of the Company can be found on Sundance’s website at www.sundanceenergy.net.
Summary Information
The following disclaimer applies to this document and any information contained in it. The information in this release is of general background and does not purport to be complete. It should be read in conjunction with Sundance’s periodic and continuous disclosure announcements lodged with ASX Limited that are available at www.asx.com.au and Sundance’s filings with the Securities and Exchange Commission available at www.sec.gov/edgar.
Forward Looking Statements
This release may contain forward-looking statements. These statements relate to the Company’s expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like “anticipate”, “believe”, “intend”, “estimate”, “expect”, “may”, “plan”, “project”, “will”, “should”, “seek” and similar words or expressions containing same.
These forward-looking statements reflect the Company’s views and assumptions with respect to future events as of the date of this release and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. These include, but are not limited to, risks or uncertainties associated with our the discovery and development of oil and natural gas reserves, cash flows and liquidity, business and financial strategy, budget, projections and operating results, oil and natural gas prices, amount, nature and timing of capital expenditures, including future development costs, availability and terms of capital and general economic and business conditions. Given these uncertainties, no one should place undue reliance on any forward looking statements attributable to Sundance, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this release sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact: United States Eric McCrady, Managing Director Tel: +1 (303) 543 5703 Australia Mike Hannell, Chairman Tel: +61 8 8363 0388
