Vitesse Energy, Inc. (NYSE: VTS) (“we,” “our,” “Vitesse,” or the “Company”) today reported the Company’s third quarter 2024 financial and operating results, revised 2024 guidance, and provided a preliminary outlook for 2025.
THIRD QUARTER 2024 HIGHLIGHTS
- As previously announced, declared a quarterly cash dividend of $0.525 per common share to be paid on December 31, 2024
- Net income of $17.4 million and Adjusted Net Income(1) of $7.6 million
- Adjusted EBITDA(1) of $37.6 million
- Cash flow from operations of $45.7 million and Free Cash Flow(1) of $18.6 million
- Production of 13,009 barrels of oil equivalent (“Boe”) per day (68% oil)
- Total cash development capital expenditures and acquisition costs of $17.2 million
- Total debt of $105.0 million and Net Debt to Adjusted EBITDA ratio(1) of 0.68
(1)Non-GAAP financial measure; see reconciliation schedules at the end of this release
MANAGEMENT COMMENTS
“In the third quarter we generated cash flow exceeding our dividend and capex, which allowed us to pay down our debt by $10 million,” commented Bob Gerrity, Vitesse’s Chairman and Chief Executive Officer. “We expect the near-term development acquisitions closed during the second quarter to increase production and cash flow in the fourth quarter of 2024 and early 2025.”
STOCKHOLDER RETURNS
In October 2024, Vitesse’s Board of Directors declared its fourth quarter cash dividend for Vitesse’s common stock of $0.525 per share for stockholders of record as of December 16, 2024, which will be paid on December 31, 2024.
On September 30, 2024, the Company paid its third quarter cash dividend of $0.525 per share to common stockholders of record as of September 16, 2024.
FINANCIAL AND OPERATING RESULTS
Third quarter net income was $17.4 million and Adjusted Net Income was $7.6 million. Adjusted EBITDA was $37.6 million. See “Non-GAAP Financial Measures” below.
Oil and natural gas production for the third quarter of 2024 averaged 13,009 Boe per day. Oil represented 68% of production and 96% of total oil and natural gas revenue. Total revenue, including the effects of our realized hedges, was $59.7 million.
Vitesse’s average realized oil and natural gas prices before hedging were $69.43 per Bbl and $0.90 per Mcf, respectively, during the third quarter of 2024. The Company had hedges covering 63% of oil production in the third quarter of 2024 and its realized oil price with hedging was $71.20 per Bbl.
Lease operating expenses in the third quarter of 2024 were $11.6 million, or $9.71 per Boe, a 3% decrease on a per unit basis compared to the second quarter of 2024. General and administrative expenses for the third quarter of 2024 totaled $5.2 million, or $4.37 per Boe.
LIQUIDITY AND CAPITAL EXPENDITURES
As of September 30, 2024, Vitesse had $2.4 million in cash and $105.0 million of borrowings outstanding on its revolving credit facility. Vitesse had total liquidity of $142.4 million as of September 30, 2024, consisting of cash and $140.0 million of committed borrowing availability under its revolving credit facility.
On October 22, 2024, the Company entered into an amendment to its revolving credit facility. Among other things, the amendment extended the maturity date, the borrowing base was reaffirmed at $245 million, the elected commitment amount was decreased from $245 million to $235 million and the definition of the term “Applicable Margin” was amended to reduce the rates in the utilization grid for SOFR loans and ABR loans by 0.25%.
During the quarter, Vitesse invested $16.4 million in development capital expenditures and $0.8 million in acquisitions of oil and gas properties.
OPERATIONS UPDATE
As of September 30, 2024, the Company owned an interest in 301 gross (11.3 net) wells that were either drilling or in the completion phase, and another 409 gross (8.8 net) locations that had been permitted for development.
REVISED 2024 GUIDANCE AND PRELIMINARY 2025 OUTLOOK
Vitesse revised its 2024 annual guidance, tightening the range for annual production and oil as a percentage of annual production, while lowering the range for total capital expenditures. The revised guidance is set forth below along with a preliminary outlook for 2025.
|
|
Prior 2024 Guidance
|
Revised 2024 Guidance
|
Preliminary 2025 Outlook
|
|
Annual Production (Boe per day)
|
13,000 - 14,000
|
13,000 - 13,500
|
13,750 - 14,500
|
|
Oil as a Percentage of Annual Production
|
67% - 71%
|
69% - 71%
|
68% - 72%
|
|
Total Capital Expenditures ($ in millions)
|
$130 - $150
|
$110 - $120
|
$105 - $120
|
At the midpoint of the preliminary 2025 outlook, Vitesse expects production to increase 7% to 14,125 Boe per day over the midpoint of the revised 2024 guidance.
THIRD QUARTER 2024 RESULTS
The following table sets forth selected financial and operating data for the periods indicated.
|
|
|
|
|
|
|
|
|
|
|
QUARTER ENDED SEPTEMBER 30,
|
|
INCREASE
(DECREASE)
|
|
($ in thousands, except production and per unit data)
|
2024
|
|
2023
|
|
AMOUNT
|
|
PERCENT
|
|
Financial and Operating Results:
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
Oil
|
$
|
56,181
|
|
$
|
53,293
|
|
|
$
|
2,888
|
|
|
5
|
%
|
|
Natural gas
|
|
2,099
|
|
|
1,761
|
|
|
|
338
|
|
|
19
|
%
|
|
Total revenue
|
$
|
58,280
|
|
$
|
55,054
|
|
|
$
|
3,226
|
|
|
6
|
%
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
Lease operating expense
|
$
|
11,622
|
|
$
|
9,985
|
|
|
$
|
1,637
|
|
|
16
|
%
|
|
Production taxes
|
|
5,329
|
|
|
5,152
|
|
|
|
177
|
|
|
3
|
%
|
|
General and administrative
|
|
5,231
|
|
|
3,820
|
|
|
|
1,411
|
|
|
37
|
%
|
|
Depletion, depreciation, amortization, and accretion
|
|
24,915
|
|
|
19,013
|
|
|
|
5,902
|
|
|
31
|
%
|
|
Equity-based compensation
|
|
2,202
|
|
|
1,146
|
|
|
|
1,056
|
|
|
92
|
%
|
|
Interest Expense
|
$
|
2,722
|
|
$
|
1,166
|
|
|
$
|
1,556
|
|
|
133
|
%
|
|
Commodity Derivative Gain (Loss), Net
|
$
|
17,368
|
|
$
|
(17,083
|
)
|
|
$
|
34,451
|
|
|
202
|
%
|
|
Income Tax (Benefit) Expense
|
$
|
6,220
|
|
$
|
(796
|
)
|
|
$
|
7,016
|
|
|
881
|
%
|
|
Production Data:
|
|
|
|
|
|
|
|
|
Oil (MBbls)
|
|
809
|
|
|
679
|
|
|
|
130
|
|
|
19
|
%
|
|
Natural gas (MMcf)
|
|
2,326
|
|
|
2,001
|
|
|
|
325
|
|
|
16
|
%
|
|
Combined volumes (MBoe)
|
|
1,197
|
|
|
1,013
|
|
|
|
184
|
|
|
18
|
%
|
|
Daily combined volumes (Boe/d)
|
|
13,009
|
|
|
11,009
|
|
|
|
2,000
|
|
|
18
|
%
|
|
Average Realized Prices before Hedging:
|
|
|
|
|
|
|
|
|
Oil (per Bbl)
|
$
|
69.43
|
|
$
|
78.45
|
|
|
$
|
(9.02
|
)
|
|
(11
|
%)
|
|
Natural gas (per Mcf)
|
|
0.90
|
|
|
0.88
|
|
|
|
0.02
|
|
|
2
|
%
|
|
Combined (per Boe)
|
|
48.69
|
|
|
54.36
|
|
|
|
(5.67
|
)
|
|
(10
|
%)
|
|
Average Realized Prices with Hedging:
|
|
|
|
|
|
|
|
|
Oil (per Bbl)
|
$
|
71.20
|
|
$
|
76.35
|
|
|
$
|
(5.15
|
)
|
|
(7
|
%)
|
|
Natural gas (per Mcf)
|
|
0.90
|
|
|
0.88
|
|
|
|
0.02
|
|
|
2
|
%
|
|
Combined (per Boe)
|
|
49.89
|
|
|
52.95
|
|
|
|
(3.06
|
)
|
|
(6
|
%)
|
|
Average Costs (per Boe):
|
|
|
|
|
|
|
|
|
Lease operating
|
$
|
9.71
|
|
$
|
9.86
|
|
|
$
|
(0.15
|
)
|
|
(2
|
%)
|
|
Production taxes
|
|
4.45
|
|
|
5.09
|
|
|
|
(0.64
|
)
|
|
(13
|
%)
|
|
General and administrative
|
|
4.37
|
|
|
3.77
|
|
|
|
0.60
|
|
|
16
|
%
|
|
Depletion, depreciation, amortization, and accretion
|
|
20.82
|
|
|
18.77
|
|
|
|
2.05
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
COMMODITY HEDGING
Vitesse hedges a portion of its expected oil production volumes to increase the predictability and certainty of its cash flow and to help maintain a strong financial position to support our dividend. Based on the midpoint of its preliminary 2025 outlook, Vitesse has 43% of its 2025 oil production hedged at a weighted average price of $73.21 per barrel. Vitesse does not currently have hedges in place on its expected natural gas production volumes. The following table summarizes Vitesse’s open oil commodity derivative swap contracts scheduled to settle after September 30, 2024, including those entered into in October 2024.
|
|
|
|
|
|
SETTLEMENT PERIOD
|
OIL (Bbls)
|
|
WEIGHTED AVERAGE PRICE
|
|
Swaps-Crude Oil
|
|
|
|
|
2024:
|
|
|
|
|
Q4
|
490,000
|
|
$
|
78.11
|
|
2025:
|
|
|
|
|
Q1
|
487,500
|
|
$
|
73.01
|
|
Q2
|
472,500
|
|
$
|
73.63
|
|
Q3
|
292,500
|
|
$
|
73.04
|
|
Q4
|
292,500
|
|
$
|
73.04
|
|
|
|
|
|
The following table presents Vitesse’s settlements on commodity derivative instruments and unsettled gains and losses on open commodity derivative instruments for the periods presented:
|
|
|
|
|
|
|
QUARTER ENDED SEPTEMBER 30,
|
|
(in thousands)
|
2024
|
|
2023
|
|
Realized gain (loss) on commodity derivatives (1)
|
$
|
1,430
|
|
$
|
(1,424
|
)
|
|
Unrealized gain (loss) on commodity derivatives (1)
|
|
15,938
|
|
|
(15,659
|
)
|
|
Total commodity derivative gain (loss)
|
$
|
17,368
|
|
$
|
(17,083
|
)
|
| (1) |
|
Realized and unrealized gains and losses on commodity derivatives are presented herein as separate line items but are combined for a total commodity derivative gain (loss) in the statements of operations included below. Management believes the separate presentation of the realized and unrealized commodity derivative gains and losses is useful, providing a better understanding of our hedge position.
|
Q3 2024 EARNINGS CONFERENCE CALL
In conjunction with Vitesse’s release of its financial and operating results, investors, analysts and other interested parties are invited to listen to a conference call with management on Tuesday, November 5, 2024 at 11:00 a.m. Eastern Time.
An updated corporate slide presentation that may be referenced on the conference call will be posted prior to the conference call on Vitesse’s website, www.vitesse-vts.com, in the “Investor Relations” section of the site, under “News & Events,” sub-tab “Presentations.”
Those wishing to listen to the conference call may do so via the Company’s website or by phone as follows:
Website:https://event.choruscall.com/mediaframe/webcast.html?webcastid=FvHfBt4X
Dial-In Number: 877-407-0778 (US/Canada) and 201-689-8565 (International)
Conference ID: 13749630 - Vitesse Energy Third Quarter 2024 Earnings Call
Replay Dial-In Number: 877-660-6853 (US/Canada) and 201-612-7415 (International)
Replay Access Code: 13749630 - Replay will be available through November 12, 2024
UPCOMING INVESTOR EVENT
Vitesse management will be participating in the Southwest IDEAS Conference in Dallas, Texas on November 21, 2024.
Any investor presentations to be used for this event will be posted prior to the event on Vitesse’s website, www.vitesse-vts.com, in the “Investor Relations” section of the site, under “News & Events,” sub-tab “Presentations.”
ABOUT VITESSE ENERGY, INC.
Vitesse Energy, Inc. is focused on returning capital to stockholders through owning financial interests as a non-operator in oil and gas wells drilled by leading US operators.
More information about Vitesse can be found at www.vitesse-vts.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding future events and future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this release regarding Vitesse’s financial position, operating and financial performance, business strategy, dividend plans and practices, guidance, plans and objectives of management for future operations, and industry conditions are forward-looking statements. When used in this release, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “continue,” “anticipate,” “target,” “could,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about actual or potential future production and sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond Vitesse’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: changes in oil and natural gas prices; the pace of drilling and completions activity on Vitesse’s properties; Vitesse’s ability to acquire additional development opportunities; potential acquisition transactions; integration and benefits of property acquisitions, or the effects of such acquisitions on Vitesse’s cash position and levels of indebtedness; changes in Vitesse’s reserves estimates or the value thereof; disruptions to Vitesse’s business due to acquisitions and other significant transactions; infrastructure constraints and related factors affecting Vitesse’s properties; cost inflation or supply chain disruption; ongoing legal disputes over and potential shutdown of the Dakota Access Pipeline; the impact of general economic or industry conditions, nationally and/or in the communities in which Vitesse conducts business, including central bank policy actions, bank failures and associated liquidity risks; changes in the interest rate environment, legislation or regulatory requirements; conditions of the securities markets; Vitesse’s ability to raise or access capital; cyber-related risks; changes in accounting principles, policies or guidelines; and financial or political instability, health-related epidemics, acts of war (including the armed conflict in the Middle East and Ukraine) or terrorism, and other economic, competitive, governmental, regulatory and technical factors affecting Vitesse’s operations, products and prices. Additional information concerning potential factors that could affect future results is included in the section entitled “Item 1A. Risk Factors” and other sections of Vitesse’s Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as updated from time to time in amendments and subsequent reports filed with the SEC, which describe factors that could cause Vitesse’s actual results to differ from those set forth in the forward looking statements.
Vitesse has based these forward-looking statements on its current expectations and assumptions about future events. While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond Vitesse’s control. Vitesse does not undertake any duty to update or revise any forward-looking statements, except as may be required by the federal securities laws.
FINANCIAL INFORMATION
|
VITESSE ENERGY, INC.
|
|
Condensed Consolidated Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR THE THREE MONTHS ENDED
|
|
FOR THE NINE MONTHS ENDED
|
|
|
SEPTEMBER 30,
|
|
SEPTEMBER 30,
|
|
(In thousands, except share data)
|
|
2024
|
|
|
|
2023
|
|
|
|
2024
|
|
|
|
2023
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
Oil
|
$
|
56,181
|
|
|
$
|
53,293
|
|
|
$
|
177,672
|
|
|
$
|
152,512
|
|
|
Natural gas
|
|
2,099
|
|
|
|
1,761
|
|
|
|
8,400
|
|
|
|
12,090
|
|
|
Total revenue
|
|
58,280
|
|
|
|
55,054
|
|
|
|
186,072
|
|
|
|
164,602
|
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
Lease operating expense
|
|
11,622
|
|
|
|
9,985
|
|
|
|
35,685
|
|
|
|
28,384
|
|
|
Production taxes
|
|
5,329
|
|
|
|
5,152
|
|
|
|
16,555
|
|
|
|
15,325
|
|
|
General and administrative
|
|
5,231
|
|
|
|
3,820
|
|
|
|
15,329
|
|
|
|
19,143
|
|
|
Depletion, depreciation, amortization, and accretion
|
|
24,915
|
|
|
|
19,013
|
|
|
|
73,776
|
|
|
|
56,233
|
|
|
Equity-based compensation
|
|
2,202
|
|
|
|
1,146
|
|
|
|
5,853
|
|
|
|
30,545
|
|
|
Total operating expenses
|
|
49,299
|
|
|
|
39,116
|
|
|
|
147,198
|
|
|
|
149,630
|
|
|
Operating Income
|
|
8,981
|
|
|
|
15,938
|
|
|
|
38,874
|
|
|
|
14,972
|
|
|
Other (Expense) Income
|
|
|
|
|
|
|
|
|
Commodity derivative gain (loss), net
|
|
17,368
|
|
|
|
(17,083
|
)
|
|
|
3,923
|
|
|
|
(4,885
|
)
|
|
Interest expense
|
|
(2,722
|
)
|
|
|
(1,166
|
)
|
|
|
(7,510
|
)
|
|
|
(3,461
|
)
|
|
Other income
|
|
35
|
|
|
|
49
|
|
|
|
64
|
|
|
|
99
|
|
|
Total other (expense) income
|
|
14,681
|
|
|
|
(18,200
|
)
|
|
|
(3,523
|
)
|
|
|
(8,247
|
)
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
$
|
23,662
|
|
|
$
|
(2,262
|
)
|
|
$
|
35,351
|
|
|
$
|
6,725
|
|
|
|
|
|
|
|
|
|
|
|
(Provision for) Benefit from Income Taxes
|
|
(6,220
|
)
|
|
|
796
|
|
|
|
(9,166
|
)
|
|
|
(46,386
|
)
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
|
$
|
17,442
|
|
|
$
|
(1,466
|
)
|
|
$
|
26,185
|
|
|
$
|
(39,661
|
)
|
|
Net income attributable to Predecessor common unit holders
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,832
|
|
|
Net Income (Loss) Attributable to Vitesse Energy, Inc.
|
$
|
17,442
|
|
|
$
|
(1,466
|
)
|
|
$
|
26,185
|
|
|
$
|
(41,493
|
)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding – basic
|
|
30,075,956
|
|
|
|
29,659,763
|
|
|
|
30,018,912
|
|
|
|
29,660,924
|
|
|
Weighted average common shares outstanding – diluted
|
|
32,987,524
|
|
|
|
29,659,763
|
|
|
|
32,887,499
|
|
|
|
29,660,924
|
|
|
Net income (loss) per common share – basic
|
$
|
0.56
|
|
|
$
|
(0.05
|
)
|
|
$
|
0.87
|
|
|
$
|
(1.40
|
)
|
|
Net income (loss) per common share – diluted
|
$
|
0.53
|
|
|
$
|
(0.05
|
)
|
|
$
|
0.80
|
|
|
$
|
(1.40
|
)
|
|
|
|
|
|
|
|
|
|
|
VITESSE ENERGY, INC.
|
|
Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
SEPTEMBER 30,
|
|
DECEMBER 31,
|
|
(in thousands, except shares)
|
|
2024
|
|
|
|
2023
|
|
|
Assets
|
|
|
|
|
Current Assets
|
|
|
|
|
Cash
|
$
|
2,425
|
|
|
$
|
552
|
|
|
Revenue receivable
|
|
36,358
|
|
|
|
44,915
|
|
|
Commodity derivatives
|
|
12,201
|
|
|
|
10,038
|
|
|
Prepaid expenses and other current assets
|
|
3,309
|
|
|
|
2,841
|
|
|
Total current assets
|
|
54,293
|
|
|
|
58,346
|
|
|
Oil and Gas Properties—Using the successful efforts method of accounting
|
|
|
|
|
Proved oil and gas properties
|
|
1,266,319
|
|
|
|
1,168,378
|
|
|
Less accumulated DD&A and impairment
|
|
(537,263
|
)
|
|
|
(464,036
|
)
|
|
Total oil and gas properties
|
|
729,056
|
|
|
|
704,342
|
|
|
Other Property and Equipment—Net
|
|
189
|
|
|
|
189
|
|
|
Other Assets
|
|
|
|
|
Commodity derivatives
|
|
1,639
|
|
|
|
1,109
|
|
|
Other noncurrent assets
|
|
6,064
|
|
|
|
1,984
|
|
|
Total other assets
|
|
7,703
|
|
|
|
3,093
|
|
|
Total assets
|
$
|
791,241
|
|
|
$
|
765,970
|
|
|
Liabilities and Equity
|
|
|
|
|
Current Liabilities
|
|
|
|
|
Accounts payable
|
$
|
16,041
|
|
|
$
|
27,692
|
|
|
Accrued liabilities
|
|
56,663
|
|
|
|
32,507
|
|
|
Other current liabilities
|
|
—
|
|
|
|
204
|
|
|
Total current liabilities
|
|
72,704
|
|
|
|
60,403
|
|
|
Long-term Liabilities
|
|
|
|
|
Credit facility
|
|
105,000
|
|
|
|
81,000
|
|
|
Deferred tax liability
|
|
73,379
|
|
|
|
64,329
|
|
|
Asset retirement obligations
|
|
8,838
|
|
|
|
8,353
|
|
|
Other noncurrent liabilities
|
|
10,934
|
|
|
|
5,479
|
|
|
Total liabilities
|
$
|
270,855
|
|
|
$
|
219,564
|
|
|
Commitments and Contingencies
|
|
|
|
|
Equity
|
|
|
|
|
Preferred stock, $0.01 par value, 5,000,000 shares authorized; 0 shares issued at September 30, 2024 and December 31, 2023, respectively
|
|
—
|
|
|
|
—
|
|
|
Common stock, $0.01 par value, 95,000,000 shares authorized; 32,658,365 and 32,812,007 shares issued at September 30, 2024 and December 31, 2023, respectively
|
|
327
|
|
|
|
328
|
|
|
Additional paid-in capital
|
|
515,451
|
|
|
|
567,654
|
|
|
Accumulated earnings (deficit)
|
|
4,608
|
|
|
|
(21,576
|
)
|
|
Total equity
|
|
520,386
|
|
|
|
546,406
|
|
|
Total liabilities and equity
|
$
|
791,241
|
|
|
$
|
765,970
|
|
|
|
|
|
|
NON-GAAP FINANCIAL MEASURES
Vitesse defines Adjusted Net Income as net income before (i) non-cash gains and losses on unsettled derivative instruments, (ii) non-cash equity-based compensation, (iii) provision for income taxes, and (iv) certain other non-cash items; reduced by the estimated impact of income tax expense.
Net Debt is calculated by deducting cash on hand from the amount outstanding on our revolving credit facility as of the balance sheet or measurement date.
Adjusted EBITDA is defined as net income before expenses for interest, income taxes, depletion, depreciation, amortization and accretion, and excludes non-cash equity-based compensation and non-cash gains and losses on unsettled derivative instruments in addition to certain other items.
Vitesse defines Free Cash Flow as cash flow from operations, adjusting for changes in operating assets and liabilities, less development of oil and gas properties.
Management believes the use of these non-GAAP financial measures provides useful information to investors to gain an overall understanding of financial performance. Specifically, management believes the non-GAAP financial measures included herein provide useful information to both management and investors by excluding certain items that management believes are not indicative of Vitesse’s core operating results. In addition, these non-GAAP financial measures are used by management for budgeting and forecasting as well as subsequently measuring Vitesse’s performance, and management believes it is providing investors with financial measures that most closely align to its internal measurement processes. A reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP measure is included below.
RECONCILIATION OF ADJUSTED NET INCOME
|
|
|
|
(in thousands)
|
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024
|
|
Net Income
|
$
|
17,442
|
|
|
Add:
|
|
|
Unrealized loss (gain) on derivative instruments
|
|
(15,938
|
)
|
|
Equity-based compensation
|
|
2,202
|
|
|
Provision for income taxes
|
|
6,220
|
|
|
Adjusted Income Before Adjusted Income Tax Expense
|
|
9,926
|
|
|
|
|
|
Adjusted Income Tax Expense(1)
|
|
(2,323
|
)
|
|
|
|
|
Adjusted Net Income (non-GAAP)
|
$
|
7,603
|
|
| (1) |
|
The Company determined the income tax impact on the “Adjusted Income Before Adjusted Income Tax Expense” using the relevant statutory tax rate of 23.4%.
|
|
RECONCILIATION OF NET DEBT AND ADJUSTED EBITDA
|
|
|
|
|
(in thousands except for ratio)
|
AT SEPTEMBER 30, 2024
|
|
Revolving credit facility
|
$
|
105,000
|
|
|
Less: Cash
|
|
2,425
|
|
|
Net Debt
|
$
|
102,575
|
|
|
|
|
|
|
|
|
|
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024
|
|
Net Income
|
$
|
17,442
|
|
|
Add:
|
|
|
Interest expense
|
$
|
2,722
|
|
|
Provision for income taxes
|
|
6,220
|
|
|
Depletion, depreciation, amortization, and accretion
|
|
24,915
|
|
|
Equity-based compensation
|
|
2,202
|
|
|
Unrealized loss (gain) on derivative instruments
|
|
(15,938
|
)
|
|
Adjusted EBITDA
|
$
|
37,563
|
|
|
|
|
|
Annualized Adjusted EBITDA
|
|
150,252
|
|
|
Net Debt to Adjusted EBITDA ratio
|
|
0.68
|
|
|
|
|
|
RECONCILIATION OF FREE CASH FLOW
|
|
|
|
|
(in thousands)
|
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024
|
|
Net cash provided by operating activities
|
$
|
45,729
|
|
|
Less: changes in operating assets and liabilities
|
|
(10,655
|
)
|
|
Cash flow from operations before changes in operating assets and liabilities
|
|
35,074
|
|
|
Less: development of oil and gas properties
|
|
(16,431
|
)
|
|
Free Cash Flow
|
$
|
18,643
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104722564/en/