RE: Year End decent results. good prospects in future.
cheers,
dave.
Legacy Oil + Gas Inc. Announces Year-end Results and Files Annual Information Form
CALGARY, March 20, 2012 /CNW/ - Legacy Oil + Gas Inc. ("Legacy" or the "Company") (TSX: LEG.TO - News) is pleased to announce it has filed on SEDAR its audited financial statements and related Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2011 as well as its annual information form ("AIF") for the year ended December 31, 2011. Selected financial and operational information is outlined below and should be read in conjunction with Legacy's audited financial statements, the related MD&A and the AIF which are available for review at www.legacyoilandgas.com or www.sedar.com.
FINANCIAL + OPERATIONAL HIGHLIGHTS
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ThreeMonths Ended |
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Year Ended |
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December 31 |
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31-Dec |
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2011 |
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2010 |
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% change |
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2011 |
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2010 |
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% change |
Financial (
00's, except per share amounts) |
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| Petroleum and natural gas sales, net of royalties |
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94,358 |
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60,248 |
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57 |
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300,591 |
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179,111 |
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68 |
| Funds generated by operations (1) |
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60,310 |
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36,320 |
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66 |
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188,852 |
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118,520 |
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59 |
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Per share basic |
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0.42 |
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0.29 |
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45 |
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1.34 |
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1.18 |
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14 |
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Per share diluted (2) |
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0.42 |
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0.28 |
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50 |
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1.32 |
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1.16 |
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14 |
| Net income |
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7,231 |
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25,004 |
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(71) |
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19,167 |
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20,275 |
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(5) |
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Per share basic |
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0.05 |
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0.2 |
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(75) |
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0.14 |
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0.2 |
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(30) |
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Per share diluted (2) |
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0.05 |
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0.19 |
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(74) |
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0.13 |
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0.2 |
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(35) |
| Capital expenditures (excluding acquisitions) |
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117,754 |
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51,733 |
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128 |
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334,783 |
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169,742 |
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97 |
| Acquisitions (cash consideration) (4) |
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1,043 |
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42,814 |
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(98) |
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112,589 |
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293,888 |
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(62) |
| Net debt and working capital surplus (deficit) (1) |
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(376,543) |
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(255,556) |
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47 |
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(376,543) |
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(255,556) |
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47 |
| Operating |
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| Production |
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Crude oil (Bbls per day) |
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11,100 |
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8,339 |
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33 |
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8,984 |
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6,913 |
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30 |
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Heavy oil (Bbls per day) |
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209 |
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251 |
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(17) |
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271 |
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63 |
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330 |
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Natural gas (Mcf per day) |
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14,018 |
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13,437 |
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4 |
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13,557 |
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7,392 |
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83 |
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Natural gas liquids (Bbls per day) |
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1,235 |
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1,073 |
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15 |
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1,135 |
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557 |
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104 |
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Barrels of oil equivalent (Boe per day) (3) |
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14,880 |
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11,902 |
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25 |
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12,650 |
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8,765 |
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44 |
| Average realized price |
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Crude oil ($ per Bbl) |
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95.39 |
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78.99 |
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21 |
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92.82 |
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76.35 |
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22 |
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Heavy oil ($ per Bbl) |
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79.54 |
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66.24 |
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20 |
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71.24 |
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66.24 |
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8 |
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Natural gas ($ per Mcf) |
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3.79 |
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4.02 |
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(6) |
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4.02 |
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3.89 |
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3 |
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Natural gas liquids ($ per Bbl) |
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74.73 |
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50.96 |
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46 |
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68.76 |
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52.71 |
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30 |
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Barrels of oil equivalent ($ per Boe) (3) |
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82.03 |
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65.87 |
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25 |
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77.93 |
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67.33 |
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16 |
| Netback per Boe ($) (1) |
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Petroleum and natural gas sales |
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82.03 |
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65.87 |
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25 |
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77.93 |
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67.33 |
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16 |
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Royalties |
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13.1 |
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10.85 |
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21 |
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12.83 |
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11.34 |
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13 |
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Operating expenses |
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16.4 |
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11.82 |
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39 |
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15.52 |
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11.28 |
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38 |
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Transportation expenses |
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2.56 |
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3.13 |
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(18) |
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2.58 |
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2.1 |
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23 |
| Operating Netback ($ per Boe) (1) |
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49.97 |
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40.07 |
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25 |
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47 |
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42.61 |
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10 |
| Undeveloped land holdings |
(gross acres) |
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665,026 |
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711,352 |
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(7) |
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655,026 |
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711,352 |
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(7) |
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(net acres) |
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501,075 |
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538,223 |
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(7) |
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501,075 |
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538,223 |
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(7) |
| Common Shares (000's) |
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| Common shares outstanding, end of period |
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143,259 |
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127,234 |
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13 |
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143,259 |
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127,234 |
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13 |
| Weighted average common shares (basic) |
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143,259 |
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126,916 |
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13 |
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140,901 |
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100,758 |
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40 |
| Weighted average common shares (diluted) (2) |
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143,795 |
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129,571 |
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11 |
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143,365 |
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102,201 |
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40 |
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| (1) |
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Management uses funds generated by operations, net debt and working capital surplus (deficit) and operating netback to analyze operating performance and leverage. These terms, as presented, do not have any standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculation of similar measures for other entities. |
| (2) |
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In calculating the net income (loss) per share diluted, Legacy Oil + Gas Inc. ("Legacy" or the "Company") excludes the effect of outstanding stock options and share warrants outstanding and uses the weighted average common shares (basic) where the Company has a net loss for the period. In calculating, funds generated by operations per share diluted, the Company includes the effect of outstanding stock options and share warrants using the treasury stock method. |
| (3) |
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Boe means barrel of oil equivalent. All Boe conversions in this report are derived by converting natural gas to oil equivalent at a ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. Boe may be misleading, particularly if used in isolation. A Boe conversion rate of 1 Boe: 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. |
| (4) |
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In addition to cash consideration paid for acquisitions and as part consideration, thereof, for the year ended December 31, 2011, the Company issued 6.2 million common shares valued at $102.7 million using the share price of Legacy on the acquisition date (2010 - 29.5 million common shares valued at $341.2 million on the acquisition dates) and for the three months ended December 31, 2011, the Company issued no common shares as part consideration for acquisitions (2010 - 0.9 million common shares valued at $10.9 million). |
ACCOMPLISHMENTS
- Closed the Pierson Spearfish asset acquisition; acquired high quality, high netback, light oil assets with an associated significant development horizontal drilling inventory in the Company's Williston Basin core area
- Drilled 133 gross (99.0 net) oil wells in 2011, with a 100 percent success rate. Drilled 42 gross (33.0 net) oil wells in the fourth quarter of 2011, with a 100 percent success rate
- Increased average production from 8,765 Boe per day in 2010 to 12,650 Boe per day in 2011 (44 percent increase); increased average production from 11,920 Boe per day in the fourth quarter of 2010 to 14,880 Boe per day in the fourth quarter of 2011 (25 percent increase); exceeded 16,250 Boe per day 2011 exit production rate guidance, a 59 percent increase from second quarter 2011 average production
- Increased funds generated from operations from $118.5 million in 2010 to $188.9 million in 2011 (59 percent increase); increased funds generated from operations from $36.3 million in the fourth quarter of 2010 to $60.3 million in the fourth quarter of 2011 (66 percent increase)
- Increased funds generated from operations per share (diluted) from $1.16 in 2010 to $1.32 in 2011 (14 percent); increase funds generated from operations per share (diluted) from
.28 in the fourth quarter of 2010 to
.42 in the fourth quarter of 2011 (50 percent increase)
- Increased gross proved plus probable reserves from 77.8 MMBoe at December 31, 2010 to 88.0 MMBoe at December 31, 2011 (13 percent increase); proved plus probable reserve additions replaced 318 percent of production in the year
- Generated solid three year total proved plus probable finding, development and acquisition ("FD&A") costs of $22.08 per Boe excluding changes in future development costs ("FDC"), representing a 2.3 times recycle ratio based on fourth quarter of 2011 operating netbacks of $49.97 per Boe
- Maintained proved plus probable reserve life index of 16.2 years at December 31, 2011, based on fourth quarter average production
- Closed one equity financing totaling $140 million
- Entered into a new syndicated banking facility and increased available line of credit to $450 million. Year end 2011 net debt was $376.5 million, representing approximately 1.3 times estimated forward cash flow (using strip pricing)
- Legacy received the APEX Award for Annual Report of the Year for its 2010 annual report and also was awarded best financial statements and analysis by Oilweek Magazine/ATB Financial at the 36th Annual Report Awards