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Extraction Oil & Gas, Inc. (XOG)

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  • Extraction Oil & Gas Provides 2021 Guidance
    GlobeNewswire

    Extraction Oil & Gas Provides 2021 Guidance

    Schedules fourth quarter 2020 earnings release and conference callDENVER, Feb. 09, 2021 (GLOBE NEWSWIRE) -- Extraction Oil & Gas (NASDAQ: XOG) (“Extraction” or the “Company”) today provided guidance for the year ended December 31, 2021, which reflects the Company’s post-emergence business model and focus on maximizing returns and generating free cash flow. Details can be found in the table below: Production 66-74 Mboepd (36-38% oil)D&C capex $140-180MMLand net capex $10-20MMLease operating expense $2.25-2.75/BoeRecurring cash G&A expense $29-31MMProduction tax expense 8-9% of Rev-T&MT&M expense (beginning 2Q21) $2.25-2.75/BoeWTI differential (beginning 2Q21) $5.00-5.50/Bbl Low cash G&A reflects in part the adoption of leading-edge, primarily stock-based compensation programs for Extraction’s Board and management team, which ensure full alignment between the Company and its investors. Extraction anticipates exiting 2021 with $100-$175 million in net debt. Longer term, Extraction’s strategy is to hold production broadly flat following 2021 with a reinvestment rate below 70 percent of cash flow, and to utilize resulting free cash flow to repay debt and enhance returns to shareholders, including potentially through dividends. Subject to market conditions, Extraction’s Board expects to establish a dividend policy prior to year-end. The Company also released its current hedge positions, summarized below: 1Q21 2Q21 3Q21 4Q21 1Q22Oil volumes hedged (Bopd) 16,552 14,269 12,533 11,315 9,200 Avg. swap price ($/Bbl) $50.34 $50.34 $49.64 $50.01 $50.05 Gas volumes hedged (MMbtupd) 36,076 100,994 92,197 85,916 71,870 Avg. swap price ($/MMbtu) $2.94 $2.94 $2.93 $2.93 $3.00 Extraction will host a conference call on Friday, March 19, 2021 at 10:00 AM EDT (8:00 AM MDT) to discuss fourth-quarter 2020 financial and operating results. Earnings will be released after close of market on Thursday, March 18, 2021. The full text of the release will be available on the Company’s website at www.extractionog.com. Those who would like to participate can dial in to the number listed below approximately 15 minutes before the scheduled conference call time and enter confirmation number 9956953 when prompted. Fourth-Quarter 2020 Earnings Conference Call Information Date: Friday, March 19, 2021Time: 10:00 AM EDT / 8:00 AM MDTParticipant Dial-In (Domestic toll-free): (844) 229-9561Conference ID: 9956953 To access the audio webcast, please visit the Investor Relations section of the Company’s website at www.extractionog.com. A replay of the conference call will be available on the website for approximately 30 days following the call. About Extraction Oil & GasExtraction Oil & Gas is a Denver-based independent energy company differentiated by its financial, operational and governance model. The Company is focused on developing and producing crude oil, natural gas and NGLs in the Denver-Julesburg Basin of Colorado. Extraction’s common shares are listed for trading on NASDAQ under the symbol XOG. For more information, please visit www.extractionog.com. Cautionary Note Regarding Forward-Looking StatementsCertain statements contained in this press release constitute “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 facts, included herein concerning, among other things, planned capital expenditures, increases in oil and gas production, the number of anticipated wells to be drilled or completed after the date hereof, anticipated levels of free cash flow and debt, shareholder returns, pursuit of potential acquisition opportunities, our financial position, business strategy and other plans and objectives for future operations, are forward-looking statements. These forward-looking statements are identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “will,” “continue,” “potential,” “should,” “could,” and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to differ materially from the results discussed in the forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for us to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the “Risk Factors” section of our most recent Form 10-K and Forms 10-Q filed with the Securities and Exchange Commission and in our other public filings and press releases. These and other factors could cause our actual results to differ materially from those contained in any forward-looking statement. Investor Contact: John Wren, ir@extractionog.com Media Contact: Brian Cain, info@extractionog.com

  • How Much Of Extraction Oil & Gas, Inc. (NASDAQ:XOG) Do Insiders Own?
    Simply Wall St.

    How Much Of Extraction Oil & Gas, Inc. (NASDAQ:XOG) Do Insiders Own?

    The big shareholder groups in Extraction Oil & Gas, Inc. ( NASDAQ:XOG ) have power over the company. Institutions will...

  • GlobeNewswire

    Extraction Oil & Gas Completes Financial Restructuring

    Company Achieves $1.3 Billion Reduction in Funded Debt and Preferred Equity; Names New Board and Leadership; Commences Trading on NASDAQ Under “XOG” on January 20, 2021 Extraction to embrace new E&P business and governance model DENVER, Jan. 20, 2021 (GLOBE NEWSWIRE) -- Extraction Oil & Gas, Inc. (NASDAQ: XOG) (“Extraction” or the “Company”) today announced it has successfully completed its financial restructuring process and emerged from Chapter 11. The Company officially concluded its reorganization after completing all required actions and satisfying the remaining conditions of its Plan of Reorganization (the “Plan”). Extraction also announced the appointments of Tom Tyree as the Company’s new Chief Executive Officer, Matt Owens as President and Chief Operating Officer and Marianella Foschi as Chief Financial Officer. Pursuant to the Plan, the Company appointed a new, seven-member Board of Directors comprised of Benjamin Dell (Chairman), Morris Clark, Carrie Fox, Carney Hawks, Tom Tyree, Michael Wichterich and Howard Willard. Biographical information can be found on the Company’s website at www.extractionog.com/leadership/. All leadership appointments are effective today. Extraction’s new Board has also established the Company’s first Environmental, Social and Governance committee made up of directors. The committee will oversee the Company’s programs, policies and practices relating to environmental, health and safety, sustainability, corporate social responsibility and other public policy matters. “The Extraction team has worked hard over the last six months to right-size the business, lower its cost structure and optimize its midstream agreements,” said Benjamin Dell, Chairman of the Board. “The Company is now well positioned to embrace a new E&P business model focused on generating returns above the cost of capital, delivering free cash flow and, most critically, returning that free cash flow to investors. The business has also instituted a new governance model where management and the Board have true alignment with shareholders, while striving for environmental leadership through low-impact operations, emission reductions and reporting,” he said. New Capital StructureExtraction’s capital structure now includes a new $1.0 billion reserve-based lending facility (“New RBL Facility”) with an initial borrowing base of $500 million maturing in July 2024. Extraction’s unsecured claimants, including holders of Extraction’s senior unsecured notes, received a distribution of approximately 99% of Extraction’s newly issued common stock. A summary of Extraction’s new capital structure follows: Unrestricted Cash Approximately $11 million cash balance at emergence New RBL Facility $500 million initial borrowing baseApproximately $265 million drawn at emergenceMatures July 2024 Rights Offering $200 million in proceeds raised from a rights offering subscribed by the Company’s unsecured note holders, existing equity holders and general unsecured creditorsProceeds used to repay Debtor-in-Possession (DIP) facility New Common Equity Approximately 25 million shares of common stock outstandingApproximately 0.7 million incremental shares reserved for potential future distribution to certain general unsecured claimants whose claim values are pending Pro Forma Capital Structure DetailsPro forma for the repaid DIP facility and drawings under the new RBL facility, the restructuring resulted in a net reduction of approximately $1.3 billion in funded debt and preferred equity. Details of the Company’s pro forma capital structure and liquidity are outlined below: As of Restructuring Pro Forma at Shares Outstanding (in thousands) September 30, 2020 Adjustments Emergence Series A Preferred Stock 185 (185) — Stockholders’ Equity: Common Stock 138,372 (138,372) — Treasury Stock 38,859 (38,859) — New Common Stock — 24,927 24,927 Shares Outstanding (1)(2)(3) 177,231 (152,304) 24,927 (1) Excludes 0.7 million shares reserved for potential distribution to general unsecured claimants(2) Excludes approximately 2.9 million Tranche A Warrants, exercisable for one share of New Common Stock per Tranche A Warrant at an initial exercise price of $107.64 with a term of four years(3) Excludes approximately 1.5 million Tranche B Warrants, exercisable for one share of New Common Stock per Tranche B Warrant at an initial exercise price of $122.32 with a term of five years As of Restructuring Pro Forma at Debt and Preferred Stock (in thousands) September 30, 2020 Adjustments Emergence RBL Facilities: DIP 110,000 (110,000) — Pre-Petition RBL 453,746 (453,746) — New RBL — 265,000 265,000 Sub-total RBL Facilities $563,746 $(298,746) $265,000 Senior Unsecured Notes: 2024 Senior Notes due May 15, 2024 400,000 (400,000) — 2026 Senior Notes due February 1, 2026 700,189 (700,189) — Sub-total Senior Unsecured Notes 1,100,189 (1,100,189) — Total Debt (1) $1,663,935 $(1,398,935) $265,000 Series A Preferred Stock $189,840 $(189,840) $— Liquidity (in thousands) RBL Borrowing Base $650,000 $(150,000) $500,000 (2)(-) RBL Drawn (600,500) 335,500 (265,000) (-) Letters of Credit Outstanding (49,500) 40,300 (9,200) (+) Cash 121,165 (110,255) 10,910 (3)Total Liquidity $121,165 $115,545 $236,710 (1) Total Debt amount excludes leases accounted for pursuant to ASC 842 and outstanding letters of credit(2) New RBL borrowing base of $500 million with a facility size of $1 billion(3) Expected cash balance upon emergence and may not reflect changes in net working capital on the Effective Date Listing on NASDAQIn connection with emergence from Chapter 11, the Company’s existing equity interests will be converted into shares in the newly capitalized company, effective January 20, 2021. Shares of the Company’s new common stock have commenced trading on NASDAQ under the ticker symbol XOG. Details of the restructuring, securities issued pursuant to the Plan and the debt and other agreements entered into as part of the Plan will be provided in a Form 8-K which can be viewed on the Company’s website or the Securities and Exchange Commission’s website at www.sec.gov. Court filings and other information related to the restructuring will continue to be available on the Company’s website at www.extractionog.com/restructuring-information and at http://www.kccllc.net/extractionog, which is a website administered by the Company’s noticing agent, Kurtzman Carson Consultants LLC (“KCC”). For inquiries regarding the Company’s emergence, please call KCC’s restructuring hotline: (866) 571-1791 (internationally at (781) 575-2049). About Extraction Oil & GasExtraction Oil & Gas is a Denver-based independent energy company, differentiated by its financial, operational and governance model. The Company is focused on developing and producing crude oil, natural gas and NGLs in the Denver-Julesburg Basin of Colorado. Extraction’s common shares are listed for trading on NASDAQ under the symbol XOG. For more information, please visit www.extractionog.com. Cautionary Note Regarding Forward-Looking StatementsCertain statements contained in this press release constitute “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 facts, included herein concerning, among other things, planned capital expenditures, increases in oil and gas production, the number of anticipated wells to be drilled or completed after the date hereof, future cash flows and borrowings, pursuit of potential acquisition opportunities, our financial position, business strategy and other plans and objectives for future operations, are forward-looking statements. These forward-looking statements are identified by their use of terms and phrases such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “will,” “continue,” “potential,” “should,” “could,” and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties. These forward-looking statements represent our expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, many of which are outside of our control that could cause actual results to differ materially from the results discussed in the forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, we do not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for us to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in the “Risk Factors” section of our most recent Form 10-K and Forms 10-Q filed with the Securities and Exchange Commission and in our other public filings and press releases. These and other factors could cause our actual results to differ materially from those contained in any forward-looking statement. Investor Contact: John Wren, ir@extractionog.comMedia Contact: Brian Cain, bcain@extractionog.com