Yangarra Announces 2018 Year End Financial and Operating Results

CALGARY, March 7, 2019 /CNW/ – Yangarra Resources Ltd. (“Yangarra” or the “Company“) (TSX:YGR) announces its financial and operating results for the year ended December 31, 2018.

2018 Highlights

• Average Production of 9,425 boe/d an increase of 64% from 2017.
• Oil and gas sales were $134 million with funds flow from operations of $82 million ($0.97 per share – basic).
• Adjusted EBITDA (which excludes changes in derivative financial instruments) was $82 million ($0.97 per share – basic).
• Net income of $34 million ($0.40 per share – basic) or $48 million before tax.
• Operating costs were $7.13/boe (including $1.31/boe of transportation costs).
• Operating netbacks, which include the impact of commodity contracts, were $26.04 per boe.
• Operating margins were 65% and cash flow margins were 61%.
• G&A costs of $0.72/boe.
• Royalties were 10% of oil and gas revenue.
• Total capital expenditures were $151 million.
• Net debt (which excludes the current derivative financial instruments) was $155 million.
• Net Debt to funds flow from operations was 1.9 : 1
• Wells drilled in 2018 resulted in a corporate half cycle IRR of 157% and a full cycle IRR of 107%
• Proved Developed Producing reserves increased by 96%, F&D costs were $10.15/boe, the recycle ratio was 2.7 and additions replaced 434% of 2018 production.
• Total Proved reserves increased by 35%, F&D costs were $6.63/boe, the recycle ratio was 4.1 and additions replaced 672% of 2017 production.
• Proved plus Probable reserves increased by 44%, F&D costs were $4.90/boe, the recycle ratio was 5.6 and additions replaced 1,220% of 2018 production.
• Return on capital employed (“ROCE“) of 12%
• Corporate LMR is 12.2 with decommissioning liabilities of $12 million (discounted).
  • The decommissioning liabilities includes 26 inactive wells, all of which are scheduled to be abandoned before the end of 2019.

Fourth Quarter Highlights

• Average production of 12,238 boe/d (58% liquids) during the quarter an increase of 19% from the third quarter of 2018 and 82% increase from the same period in 2017.
• Oil and gas sales were $30 million, an increase of 20% from the same period in 2017.
• Funds flow from operations of $17 million ($0.20 per share – basic), a decrease of 2% from the same period in 2017.
• Adjusted EBITDA (which excludes changes in derivative financial instruments) was $17 million ($0.20 per share – basic).
• Net income of $13 million ($0.16 per share – basic) or $19 million net income before tax.
• Operating costs were $6.88/boe (including $1.31/boe of transportation costs).
• Field netbacks were $16.58 per boe.
• Operating netbacks, which include the impact of commodity contracts, were $17.56 per boe.
• Operating margins were 65% and cash flow margins were 55%.
• G&A costs of $1.01/boe, which included year-end bonuses.
• Royalties were 12% of oil and gas revenue.
• Total capital expenditures were $37 million.
• Net Debt to annualized fourth quarter funds flow from operations was 2.3 : 1.

Syndicated Facility

Subsequent to December 31, 2018, the borrowing base review was completed and the maximum amount available under the syndicated credit facility was increased to $225 million.

Financial Summary

Company Netbacks ($/boe)

Commodity Prices

Operations Summary

Net petroleum and natural gas production, pricing and revenue are summarized below:

Working Capital Summary

The following table summarizes the change in working capital during the year ended December 31, 2018 and December 31, 2017: 

Capital Spending

Capital spending is summarized as follows:

Annual General Meeting of Shareholders

The Company’s Annual General Meeting of Shareholders is scheduled for 10:00 AM on Thursday May 9, 2019 in the Tillyard Management Conference Centre, Main Floor, 715 5th Avenue SW, Calgary, AB.

Year End Disclosure

The Company’s financial statements, notes to the financial statements, management’s discussion and analysis and annual information form will be filed on SEDAR (www.sedar.com) and are available on the Company’s website (www.yangarra.ca).