DENVER, CO --(Marketwired - March 12, 2014) - Emerald Oil, Inc. (NYSE MKT: EOX) ("Emerald" or the "Company") today announced financial and operational results for the quarter and year ended December 31, 2013.
- Increased fourth quarter production to 220,793 BOE, an average of approximately 2,430 BOEPD, an increase of 29% compared to the third quarter of 2013 and 101% compared to the fourth quarter of 2012;
- Increased annual production to 616,065 BOE, an average of 1,688 BOEPD, an increase of 80% compared to 2012;
- Increased total proved reserves to 13.2 MMBOE, an increase of 147% compared to 2012;
- Increased oil and natural gas sales to $54.0MM in 2013, an increase of 92% compared to 2012;
- Adjusted EBITDA of $5.0 million or $0.08 per share (basic) for 4Q13 and $20.2 million or $0.49 per share (basic) for FY13, and;
- Net loss attributable to common shareholders of $10.9 million or $(0.17) per share (basic) for 4Q13 and $31.2 million or $(0.75) per share (basic) for FY13.
McAndrew Rudisill, Emerald's Chief Executive Officer, stated, "2013 was a transformational year for Emerald. We successfully drilled and completed multiple Middle Bakken and Three Forks wells, tripled our operated acreage position and monetized the majority of our non-operated assets. In 2014, our production will continue to grow as we add a third rig to our drilling program. The third rig is currently moving to location in our Easy Rider focus area and will soon begin drilling, earlier than originally anticipated. Due to the strong performance of our Low Rider Middle Bakken wells and positive indications from our Low Rider Three Forks wells, we are actively reviewing increased downspacing assumptions and raising our stated Low Rider type curve. We are very focused in 2014 on lowering operating expenses and driving greater drilling and completion cost effenciencies."
For 2013, Emerald's total production volumes on a BOE basis increased 80% as compared to 2012. Production increased due to the addition of 10.58 net productive operated Bakken/Three Forks wells in 2013. During 2013, Emerald realized an $87.16 average price per Bbl of oil (including settled derivatives) compared to an $85.05 average price per Bbl of oil during 2012. For detailed well performance data see Emerald's corporate presentation (available on its website, www.emeraldoil.com ).
|Year Ended December 31,|
|Sales Volume (Total)|
|Sales volumes (Boe)||616,065||341,755|
|Average Daily Sales|
|Sales volumes (Boe)||1,688||936|
|Average Sales Prices|
|Oil, Net of Settled Derivatives (Bbls)||$||87.16||$||85.05|
|Barrel of Oil Equivalent with Settled Derivatives (Boe)||$||84.40||$||82.21|
2013 Year End Reserves
As of December 31, 2013, Emerald had total proved reserves of approximately 13.2 MMBoe, all of which were located in the Williston Basin. Emerald's proved reserves increased approximately 147% during 2013 primarily as a result of our successful operated well program. Emerald sold substantially all of its year end 2012 reserves, which were comprised of non-operated assets, in September 2013.
|As of December 31,|
|Proved Developed Oil Reserves (MBbls)||5,811.0||1,788.2|
|Proved Undeveloped Oil Reserves (MBbls)||5,764.6||3,081.1|
|Total Proved Oil Reserves (MBbls)||11,575.6||4,869.3|
|Proved Developed Gas Reserves (MMcf)||5,770.6||1,014.2|
|Proved Undeveloped Gas Reserves (MMcf)||4,231.6||1,894.3|
|Total Proved Gas Reserves (MMcf)||10,002.2||2,908.5|
|Total Proved Oil Equivalents (MBoe)||13,242.8||5,354.1|
|Present Value of Estimated Future Net|
|Revenues After Income Taxes, Discounted at 10% (In thousands)||$||198,371.5||$||85,284.8|
Revenues from sales of oil and natural gas for the quarter ended December 31, 2013 were $17.9 million compared to $9.2 million for the same period in 2012. Revenues, not considering the effect of derivatives, for the year ended December 31, 2013 were $54.0 million compared to $28.1 million for the same period in 2012. The increase is primarily due to higher production as a result of the Company's well completions and its acquisition of certain properties in its Low Rider project area.
Production expenses for the quarter ended December 31, 2013 were $3.8 million compared to $1.1 million for the same period in 2012. On a per unit basis, production expenses increased from $9.88 per BOE in 4Q2012 to $17.20 per BOE in 4Q2013. Production expenses for the year ended December 31, 2013 were $8.5 million compared to $2.7 million for the same period in 2012. On a per unit basis, production expenses increased from $7.98 per BOE sold in 2012 to $13.83 per BOE in 2013. This increase was primarily due to the costs associated with operating an increased number of producing wells and associated produced fluid volumes as a result of the Company's well completions. Emerald experienced increases in operating expenses as we added new wells and maintained production from existing properties. Increased costs are primarily related to workovers, electronic submersible pump installation and gas lift installation, all of which have improved operational performance and reduced downtime in the Company's wells. The Company continues efforts to decrease operating costs by centralizing all infield infrastructure. Emerald remains comfortable with its annual 2014 cost guidance of $11.00 per BOE.
General and administrative expenses for the quarter ended December 31, 2013 were $12.9 million compared to $7.2 million for the same period in 2012. Share-based compensation expenses are included in the employee compensation and related expenses, totaling $6.4 million in 4Q2013 compared to $4.6 million 4Q2012. General and administrative expenses for the year ended December 31, 2013 were $30.5 million compared to $12.9 million for the same period in 2012. Share-based compensentation expenses totaled $12.9 million in 2013 compared to $7.3 million in 2012. The increase is due to the Company's change in corporate strategy to add operating capabilities to develop Emerald's operated wells in the Williston Basin and the corresponding increases in personnel and infrastructure. This strategic change allows Emerald the opportunity to significantly grow production by using industry best practices and to control well design and capital expenditures to maximize its return on capital. Approximately $2.8 million of the share-based compensation expense during the year ended December 31, 2013 related to the one-time modification and accelerated vesting of equity grants associated with severance to a prior officer of the Company.
Adjusted EBITDA was $5.0 million for the fourth quarter 2013, as compared to $4.5 million in the same period in 2012, reflecting a 11% increase. For the full year ended December 31, 2013, Adjusted EBITDA was $20.2 million, as compared to $16.8 million for 2012, representing a 20% increase. Adjusted EBITDA is a non-GAAP financial measure. For additional information please refer to the reconciliation of this measure at the end of this news release.
During the quarter ended December 31, 2013, the Company recognized an unrealized non-cash loss on its warrant liability of $2.5 million. For the year ended December 31, 2013, the Company recognized an unrealized non-cash loss on its warrant liability of $7.1 million. This mark-to-market charge relates to the warrants attached to the preferred stock issued to White Deer Energy in February 2013. The warrant liability will correlate with Emerald share price movement on a quarterly basis. Each quarter going forward the Company will mark-to-market the warrants and adjust for the change in the statement of operations as a non-cash charge until the warrant is exercised or modifications are made to the warrants such that liability accounting is no longer required.
Emerald will host a conference call on Thursday, March 13, 2014 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time) to discuss financial and operational results for the quarter and year end.
Emerald Oil, Inc. 4Q and Year End 2013 Financial and Operational Results Conference Call
Date: Thursday, March 13, 2014
Time: 10:00 a.m. Eastern Time
9:00 a.m. Central Time
8:00 a.m. Mountain Time
7:00 a.m. Pacific Time
Webcast: Live and rebroadcast over the Internet at the Emerald Oil website
Telephone Dial-In: 877-407-8831 (toll-free) and 201-493-6736 (international)
Telephone Replay: Available through Wednesday, March 20, 2014
877-660-6853 (toll-free) and 201-612-7415 (international)
Emerald is an independent exploration and production operator that is focused on acquiring acreage and developing wells in the Williston Basin of North Dakota and Montana, targeting the Bakken and Three Forks shale oil formations and Pronghorn sand oil formation. Emerald is based in Denver, Colorado. More information about Emerald can be found at www.emeraldoil.com .
This press release may include "forward-looking statements" within the meaning of the securities laws. All statements other than statements of historical facts included herein may constitute forward-looking statements. Forward-looking statements in this document may include statements regarding the Company's expectations regarding the Company's operational, exploration and development plans; expectations regarding the nature and amount of the Company's reserves; and expectations regarding production, revenues, cash flows and recoveries. When used in this press release, the words "will," "potential," "believe," "estimate," "intend," "expect," "may," "should," "anticipate," "could," "plan," "predict," "project," "profile," "model," or their negatives, other similar expressions or the statements that include those words, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. 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 expressed by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, fluctuations in oil and natural gas prices, uncertainties inherent in estimating quantities of oil and natural gas reserves and projecting future rates of production and timing of development activities, competition, operating risks, acquisition risks, liquidity and capital requirements, the effects of governmental regulation, adverse changes in the market for the Company's oil and natural gas production, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission.
|EMERALD OIL, INC.|
|CONSOLIDATED BALANCE SHEETS|
|AS OF DECEMBER 31,|
|Cash and Cash Equivalents||$||144,255,438||$||10,192,379|
|Accounts Receivable - Oil and Natural Gas Sales||8,715,821||8,514,865|
|Accounts Receivable - Joint Interest Partners||31,523,204||4,058,291|