We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Falcon Minerals Corporation | NASDAQ:FLMNW | NASDAQ | Equity Warrant |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.3103 | 0.1576 | 0.41 | 0 | 01:00:00 |
Falcon Minerals Corporation (“Falcon,” or the “Company,” “we,” “our,”) (NASDAQ: FLMN, FLMNW), a leading oil and gas minerals company, today announced financial and operating results for the fourth quarter and full year ending December 31, 2019.
Highlights
(1)
The four recently drilled Hooks Ranch wells will extend the laterals from the Hooks Ranch positions into an adjacent leasehold property where Falcon has a 3.65% Net Revenue Interest (“NRI”). The resulting NRI contribution from the four wells will be approximately 14%
(2)
Net Income shown includes amounts attributable to non-controlling interests
(3)
Please refer to the disclosure on pages 8-9 for the Reconciliation of Net Income to Non-GAAP Measures
Daniel Herz, President and Chief Executive Officer of Falcon commented, “While we are in a challenging period for energy generally, Falcon was designed not only to withstand this kind of environment, but also to outperform.” Mr. Herz continued, “Falcon benefits from the strength of our operators, who have been consistent in their development of our world class inventory. Our 3.52 net line of sight wells are nicely along in their development which should provide for strong production in 2020 even in this challenging environment. Finally, we remain committed to maintaining a strong balance sheet and delivering value to our shareholders.”
Financial Update
Falcon realized prices of $55.88 per barrel (“bbl”) for crude oil, $2.34 per thousand cubic feet (“mcf”) for natural gas and $16.86/bbl for natural gas liquids (“NGL”) during the in the fourth quarter 2019.
Falcon reported Net Income of $4.4 million, or $0.05 per Class A common share, for the fourth quarter 2019, which includes amounts attributable to non-controlling interests. Falcon generated revenue of $13.1 million (approximately 79% oil) for the fourth quarter 2019. The Company reported Adjusted EBITDA (a non-GAAP measure as defined and reconciled on pages 8-9) of $8.9 million for the fourth quarter 2019.
Total cash operating costs for the fourth quarter 2019 were $4.3 million inclusive of an increase of $0.6 million in ad valorem taxes. General and administrative expense for the fourth quarter 2019, excluding non-cash stock-based compensation expense, was approximately $2.5 million, compared to $2.2 million for the third quarter 2019. The increase from the prior quarter was due primarily to an increase in professional fees associated with the annual audit.
As of December 31, 2019, the Company had $42.5 million of borrowings on its revolving credit facility, and $2.5 million of cash on hand, resulting in a net liquidity position of approximately $50.0 million at the end of quarter. Falcon’s Net Debt / LTM EBITDA ratio was 0.76x at December 31, 2019. (4)
(4)Calculated by dividing the sum of total debt outstanding less cash on hand as of December 31, 2019 by Adjusted EBITDA for the trailing 12-month period, as per Falcon’s credit agreement dated August 23, 2018
Fourth Quarter 2019 Dividend
Falcon’s Board of Directors declared a dividend of $0.135 per Class A share for the fourth quarter 2019. During the fourth quarter 2019, the Company generated pro-forma free cash flow per share of $0.10 (5) (as described and reconciled on page 8-9). The dividend for the fourth quarter 2019 was paid on March 9, 2020 to all Class A shareholders of record on February 25, 2020. The fourth quarter 2019 dividend does not have any effect on the current $11.34 exercise price of the Company’s outstanding warrants.
(5)The pro-forma adjustments assume that the non-controlling interests are converted to Class A common shares, such that approximately 86.2 million Class A shares would be outstanding. The pro-forma Class A shares reflects the dilution from 0.3 million unvested restricted stock awards (RSAs) which receive dividend equivalent rights (“DER”) on a quarterly basis
Operational Results
Falcon’s production averaged 4,027 boe/d during the fourth quarter 2019, of which approximately 50% was oil. Eagle Ford production was approximately 58% oil during the fourth quarter 2019. Falcon had 73 gross wells turned in line (0.59 net wells) with an average NRI of approximately 0.81% during the fourth quarter 2019.
Falcon’s production averaged 4,861 boe/d during the year ended December 31, 2019, of which approximately 50% was oil. Eagle Ford production was approximately 58% oil during the year ended December 31, 2019. Falcon had 194 gross wells turn in line (1.54 net wells) with an average NRI of approximately 0.79% during the year ended December 31, 2019.
Falcon currently has 1,924 producing Eagle Ford wells, and the Company’s average NRI for all producing wells is approximately 1.32%.
As of January 24, 2020, the Company had 218 line of sight wells (3.52 net wells) with an average NRI of 1.62% in various stages of development on Falcon’s Eagle Ford minerals position. The 218 line of sight wells represent an increase of approximately 25% from November 2019. These wells are comprised of the following:
Line of Sight Wells (As of January 24, 2020)
Stage of ActivityGross Wells
Net Wells
NRI %
Permitted90
1.42
1.58%
Waiting on completion86
0.83
0.96%
Waiting on connection42
1.27
3.03%
Total line of sight218
3.52
1.62%
The line of sight wells include four wells on Falcon’s Hooks Ranch location that were connected to production on February 7, 2020, and in total 1.20 of the 3.52 net wells have already turned in line during 2020. Approximately 75% of line of sight wells have development activity or have been turned in line.
During the year ended December 31, 2019, Falcon acquired approximately 147 net royalty acres through 27 transactions in the Eagle Ford Shale for a total cost of approximately $22.6 million. The transactions were funded using cash on hand and availability on the Company’s revolving credit facility.
Reserve Summary for the Year Ended December 31, 2019
As of December 31, 2019, net proved oil and gas reserves were approximately 23.0 million barrels of oil equivalent (MMboe), based on the Securities and Exchange Commission (SEC) average net realized price assumptions of $55.69/bbl for oil, $13.20/bbl for NGL, and $2.58/mcf for natural gas. Falcon’s year end 2019 proved reserves were valued at a PV-10 amount of approximately $488 million, and approximately 67% of the Company’s proved reserves were oil and NGLs.
Summary of proved reserves as of December 31, 2019
Total Oil (Mbbl) Gas (MMcf) NGLs (Mbbl) MBoe Proved developed reserves3,900
18,016
1,230
8,133
Proved undeveloped reserves8,696
28,254
1,489
14,894
Total proved reserves at December 31, 201912,596
46,270
2,719
23,027
Reconciliation of proved reserves for full year 2019
Total
Oil (Mbbl)
Gas (MMcf)
NGLs (Mbbl)
MBoe
Proved reserves at December 31, 201815,212
56,185
3,163
27,740
Purchase of reserves in place
32
70
12
56
Extensions and discoveries
215
553
71
378
Reivisions of previous estimates
(1,984
)
(6,950
)
(230
)
(3,373
)
Production(879
)
(3,588
)
(297
)
(1,774
)
Proved reserves at December 31, 201912,596
46,270
2,719
23,027
Changes in reserves net of production
(1,737
)
(6,327
)
(147
)
(2,940
)
Guidance Summary
The Company has provided full year 2020 guidance based upon expectations for producer activity on Falcon’s net royalty positions.
Full Year 2020 GuidanceGuidance Range
Net production per barrel of oil equivalent per day (boe/d)
5,300 - 6,100
% Oil of net production50% - 55%
Operating costs:
Production and ad valorem taxes (% of revenue)
6.0% - 7.0%
Marketing and transportation ($/boe)$1.00 - $1.50
Cash general and administrative (6)$8.5 - $9.0 million
Depletion expense (7) ($/boe)$6.50 - $7.50
(6)
General and administrative expense above excludes non-cash stock-based compensation expense
(7)
The depletion expense forecast range above is shown on a GAAP basis
Conference Call Details
Falcon management invites investors and interested parties to listen to the conference call to discuss fourth quarter 2019 results on Tuesday, March 10, 2020 at 9:00 am ET. Participants for the conference call should dial (888) 567-1602 (International: (862) 298-0701). A replay of the call will be available starting at 2:00 pm ET on March 10, 2020. To access the replay, investors and interested parties can listen to the replay on www.falconminerals.com in the Events page of the Investor Relations section, or call (888) 539-4649 (International: (754) 333-7735).
About Falcon Minerals
Falcon Minerals Corporation (NASDAQ: FLMN, FLMNW) is a C-Corporation formed to own and acquire high growth oil-weighted minerals rights. Falcon Minerals owns mineral, royalty, and over-riding royalty interests covering approximately 256,000 gross unit acres in the Eagle Ford Shale and Austin Chalk in Karnes, DeWitt and Gonzales Counties in Texas. The Company also owns approximately 75,000 gross unit acres in the Marcellus Shale across Pennsylvania, Ohio and West Virginia. For more information, visit our website at www.falconminerals.com.
Cautionary Note Regarding Forward-Looking Statements
This document contains forward-looking statements that involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Falcon cautions readers that any forward-looking information is not a guarantee of future performance. Such forward-looking statements include, but are not limited to, statements about future financial and operating results, future dividends paid, resource and production potential, Falcon’s plans, objectives, expectations and intentions and other statements that are not historical facts. Risks, assumptions and uncertainties that could cause actual results to materially differ from the forward-looking statements include, but are not limited to, those associated with general economic and business conditions; Falcon’s ability to realize the anticipated benefits of its acquisitions; changes in commodity prices; uncertainties about estimates of reserves and resource potential; inability to obtain capital needed for operations; changes in government environmental policies and other environmental risks; the availability of drilling equipment and the timing of production in Falcon’s regions; tax consequences of business transactions; and other risks, assumptions and uncertainties detailed from time to time in Falcon’s reports filed with the U.S. Securities and Exchange Commission, including under the heading “Risk Factors” in Falcon’s most recent annual report on Form 10-K as well as any subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K. Forward-looking statements speak only as of the date hereof, and Falcon assumes no obligation to update such statements, except as may be required by applicable law.
FALCON MINERALS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018
Revenues: Oil and gas sales$
13,051
$
26,301
$
68,463
$
98,655
Loss on hedging activities
-
-
-
(1,456)
Total revenues
13,051
26,301
68,463
97,199
Expenses: Production and ad valorem taxes
1,322
1,289
4,262
5,143
Marketing and transportation
463
881
2,396
2,368
Amortization of royalty interests in oil & gas properties
3,113
3,783
12,737
16,962
General, administrative and other
3,185
2,532
11,912
9,544
Total expenses
8,083
8,485
31,307
34,017
Operating income
4,968
17,816
37,156
63,182
Other income (expense): Gain on the sale of assets
-
-
-
41,382
Other income
31
7
165
46
Interest expense
(650)
(749)
(2,489)
(2,350)
Total other income (expense)
(619)
(742)
(2,324)
39,078
Income before income taxes
4,349
17,074
34,832
102,260
Provision for income taxes
(3)
2,482
3,918
3,292
Income from continuing operations
4,352
14,592
30,914
98,968
Income from discontinued operations
-
-
-
2,139
Net income
4,352
14,592
30,914
101,107
Net income attributable to non-controlling interests
(2,024)
(7,955)
(16,564)
(10,982)
Net income attributable to shareholders/unitholders$
2,328
$
6,637
$
14,350
$
90,125
Class A common shares (basic and diluted)$
0.05
$
0.14
$
0.31
$
0.20
(1)
(1)
Earnings per share for year ended December 31, 2018 is calculated for the Company only for periods subsequent to the transactions with Royal Resources L.P. (the “Transactions”) due to the Transactions being accounted for as a reverse recapitalization
FALCON MINERALS CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)December 31,
December 31,
ASSETS2019
2018
Current assets: Cash and cash equivalents$
2,543
$
7,317
Accounts receivable
7,889
11,271
Prepaid expenses
1,182
1,524
Total current assets
11,614
20,112
Royalty interests in oil & gas properties, net of accumulated amortization
219,192
209,168
Property and equipment, net of accumulated depreciation
517
-
Deferred tax asset, net
56,352
58,773
Other assets
2,530
3,182
Total assets$
290,205
$
291,235
LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities: Accounts payable and accrued expenses$
2,206
$
521
Credit facility
42,500
21,000
Other non-current liabilities
473
-
Total liabilities
45,179
21,521
Shareholder’s equity: Class A common stock
5
5
Class C common stock
4
4
Additional paid in capital
129,127
137,866
Non-controlling interests
115,890
127,029
Retained earnings
-
4,810
Total shareholder’s equity
245,026
269,714
Total liabilities and shareholder’s equity$
290,205
$
291,235
Reconciliation of Adjusted EBITDA and Pro-forma Free Cash Flow from Net Income (in thousands, except per share amounts): Fully Converted Three Months Per Share Basis Ended Three Months Ended December 31, 2019 December 31, 2019 (1) Net Income$
4,352
$
0.05
Interest expense (2)
650
0.01
Depletion and depreciation
3,142
0.04
Share-based compensation
717
0.01
Income taxes
(3)
-
Adjusted EBITDA$
8,858
$
0.11
Interest expense (2)
(650)
(0.01)
Pro-forma Free Cash Flow$
8,208
$
0.10
(1)Per share information is presented on a fully converted basis and includes both the 46.2 million Class A common shares (inclusive of 0.3 million unvested restricted stock awards which receive DERs) and the 40.0 million Class C common shares that are outstanding as of December 31, 2019. As such, Net Income per fully converted share in this schedule is not comparable to earnings per share (EPS) of $0.05 for the period ended December 31, 2019 as shown on the Statement of Operations
(2)Interest expense includes amortization of deferred financing costs
Calculation of cash available for dividends for the fourth quarter 2019 (in thousands):Three Months Ended
December 31,
2019
Adjusted EBITDA$
8,858
Interest expense
(650
)
Net cash available for distribution$
8,208
Cash to be distributed to non-controlling interests
$
5,400
Cash to be distributed to Falcon Minerals Corp.
$
6,205
Dividends to be paid to Class A shareholders
$
6,205
Non-GAAP Financial Measures
Adjusted EBITDA and Pro-forma Free Cash Flow are supplemental non-GAAP financial measures used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. We believe Adjusted EBITDA and Pro-forma Free Cash Flow are useful because they allow us to evaluate our performance and compare the results of our operations period to period without regard to our financing methods or capital structure. In addition, management uses Adjusted EBITDA and Pro-forma Free Cash Flow to evaluate cash flow available to pay dividends to our common shareholders.
We define Adjusted EBITDA as Net Income plus interest expense, net, depletion expense, provision for income taxes and share-based compensation. We define Pro forma Free Cash Flow as Net Income plus depletion expense, provision for income taxes and share-based compensation less cash income taxes. Adjusted EBITDA and Pro-forma Free Cash Flow are not measures of Net Income as determined by GAAP. We exclude the items listed above from Net Income in calculating Adjusted EBITDA and Pro-forma Free Cash Flow because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Certain items excluded from Adjusted EBITDA and Pro-forma Free Cash Flow are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as historic costs of depreciable assets, none of which are components of Adjusted EBITDA and Pro-forma Free Cash Flow.
Adjusted EBITDA and Pro-forma Free Cash Flow should not be considered an alternative to, or more meaningful than, Net Income, royalty income, cash flow from operating activities or any other measure of financial performance presented in accordance with GAAP. Our computations of Adjusted EBITDA and Pro-forma Free Cash Flow may not be comparable to other similarly titled measures of other companies.
FALCON MINERALS CORPORATION SELECTED OPERATING DATA (Unaudited)Three Months Ended
Year Ended
December 31,
December 31,
2019
2018
2019
2018(1)
Production Data: Oil (bbls)
183,835
303,460
879,288
1,237,813
Natural gas (boe)
129,896
172,702
598,019
686,279
Natural gas liquids (bbls)
56,797
82,923
296,813
293,086
Combined volumes (boe)
370,528
559,085
1,774,120
2,217,178
Average daily combined volume (boe/d)
4,027
6,077
4,861
6,074
Average sales prices: Oil (bbls)$
55.88
$
65.43
$
59.85
$
67.14
Natural gas (mcf)$
2.34
$
3.63
$
2.62
$
3.10
Natural gas liquids (bbls)$
16.86
$
28.49
$
15.45
$
25.62
Combined per boe$
35.23
$
47.04
$
37.54
$
46.63
Average costs ($/boe): Production and ad valorem taxes$
3.57
$
2.31
$
2.40
$
2.32
Marketing and transportation expense$
1.25
$
1.58
$
1.35
$
1.07
Cash general and administrative expense$
6.66
$
4.53
$
5.28
$
4.30
Interest expense, net$
1.75
$
1.34
$
1.40
$
1.06
Depletion$
8.40
$
6.77
$
7.18
$
7.65
(1)The production data for the year ended December 31, 2018 shown contains certain production that was not contributed to Falcon in the Royal Resources transaction in August 2018, including a portion of this non-acquired production that was sold in February 2018
View source version on businesswire.com: https://www.businesswire.com/news/home/20200309005816/en/
Falcon Minerals Contact: Bryan C. Gunderson Chief Financial Officer bgunderson@falconminerals.com
1 Year Falcon Minerals Chart |
1 Month Falcon Minerals Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions