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Sundance Energy Australia Limited Reports Third Quarter 2015 Results

DENVER, Oct. 30, 2015 (GLOBE NEWSWIRE) -- Sundance Energy Australia Limited (ASX:SEA) (“Sundance” or the “Company”), a U.S. onshore oil and gas exploration and production company focused in the Eagle Ford and Greater Anadarko Basin, reported its unaudited third quarter 2015 results as filed with the Australian Securities Exchange (ASX).

Third Quarter 2015 Financial Results

  • Realized Adjusted EBITDAX of $52.9 million year-to-date and $11.8 million for the third quarter with EBITDAX margins of 72% and 64% respectively, despite approximately 50% decrease in realized pricing period-over-period.
  • Reduced cash operating costs from $20.39 / Boe for the nine months ended September 30, 2014 to $14.50/ Boe for the nine months ended September 30, 2015 primarily due to a $3.90 per Boe reduction in general and administrative expenses.
  • Funded all of the Company’s year-to-date drilling, completion and well facility capital expenditures of $51.0 million with Adjusted EBITDAX of $52.9 million. In addition, the Company spent $18.1 million on field optimization projects that are expected to increase cash flows through gas sales (eliminating flared production) or reduced lease operating expenses.
  • As of September 30, 2015, the Company had $6.4 million of cash and cash equivalents and $65 million of undrawn borrowing capacity, including the $50 million accordion feature, for total liquidity of $71.4 million.
  • The Company has a total of 1.5 million bbls hedged through 2019 with a weighted average floor of $56.15 and ceiling of $80.24; including 185,000 bbls in the fourth quarter of 2015 and 557,000 bbls in 2016 with weighted average floors of $64.01 and $57.77, and weighted average ceilings of $78.75 and $76.89, respectively.


Third Quarter 2015 Operational Highlights

  • Net oil, natural gas and natural gas liquids (“NGLs”) production, including flared gas, increased 35% to 1,980,031 Boe, or 7,934 Boe/d year-to-date. Third quarter production totaled 602,046 Boe, or 6,710 Boe/d.
  • Completed hook up of hydrogen sulfide (H2S) treatment facilities on additional pad. Shut in 8 gross (8.0 net) well for ~79 days during installation of the facilities resulting in estimated lost production of ~600 Boe/d and force majeure shut-in by gas marketer resulting in estimated lost production of ~300 Boe/d during quarter. Third quarter production pro forma for estimated lost production was ~7,600 Boe/d
  • Closed the acquisition of New Standard Energy’s Eagle Ford and Cooper Basin assets.
  • 23 gross (13.5 net) horizontal wells were waiting on completion at quarter end, of which 10 gross (9.6 net) were Sundance-operated. The Company anticipates completing 3 gross (3.0 net) wells in the fourth quarter of 2015 and the remainder are expected to be completed in 2016.


All amounts in the following tables are unaudited and presented in US thousands, except where stated otherwise.

The following table reflects production volumes, revenues and pricing compared to the corresponding period in the prior year.


Three Months Ended September 30, Nine Months Ended September 30,
2015 2014 2015 2014
Production Summary
Oil (bbls) 370,882 456,813 1,396,284 1,093,198
Natural gas (MCF) 772,944 704,915 3,015,132 1,937,956
NGL (bbls) 117,592 77,878 267,186 183,743
Total Boe 617,298 652,177 2,165,993 1,599,934
Average daily production, including flared gas 6,710 7,167 7,934 5,861
Revenue
Oil$ 16,252 $ 42,520 $ 66,599 $ 104,240
Natural gas 953 1,527 3,660 5,360
NGL 1,159 2,426 3,216 6,285
Total Revenue$ 18,364 $ 46,474 $ 73,476 $ 115,886
Realized Product Pricing
Oil price received (per bbl)$ 43.82 $ 93.08 $ 47.70 $ 95.35
Oil realized price, including oil hedging (per bbl)$ 51.77 $ 92.93 $ 53.32 $ 94.85
Natural gas price received (per MCF) *$ 1.40 $ 3.27 $ 1.93 $ 4.21
Natural gas realized price, including natural gas hedging (per MCF) *$ 1.59 $ 3.36 $ 2.10 $ 4.15
NGL realized price (per bbl)$ 9.86 $ 31.16 $ 12.04 $ 34.21
Total price received (per Boe)$ 30.50 $ 75.88 $ 37.11 $ 77.83
Total realized price (per Boe)$ 35.62 $ 75.92 $ 41.23 $ 78.24
* Excludes flared gas of 91,511 MCF and 208,801 MCF for the three months ended September 30, 2015 and 2014, respectively and 1,115,772 MCF and 666,041 MCF for the nine months ended September 30, 2015 and 2014, respectively.


The following table summarizes operating costs on an actual (in US thousands) and per unit basis.

Three Months Ended September 30, Nine Months Ended September 30,
2015 2014 2015 2014
Costs:
Lease operating expenses (LOE)$ 5,240 $ 3,648 $ 14,015 $ 10,126
Production taxes 1,106 3,648 4,347 6,659
Cash G&A, net of amounts capitalised 3,455 3,648 10,344 13,579
Total $ 9,801 $ 10,944 $ 28,706 $ 30,364
Costs per Boe:
LOE$ 8.70 $ 5.96 $ 7.08 $ 6.80
Production taxes 1.84 5.96 2.20 4.47
Cash G&A 5.74 5.96 5.22 9.12
Total $ 16.28 $ 17.87 $ 14.50 $ 20.39


Additional Information

(1) We define “Adjusted EBITDAX” as earnings before interest expense, debt extinguishment costs, income taxes, depreciation, depletion and amortization, property impairments, gain/(loss) on sale of non-current assets, exploration expense, share based compensation and income and gains and losses on commodity hedging, net of settlements of commodity hedging.

The Company reports under International Financial Reporting Standards (IFRS). All amounts are reported in US dollars unless otherwise noted.

The Company’s full Unaudited Activities Report for the Quarter Ended September 30, 2015 can be found at www.sundanceenergy.net. The Company held a conference call, and simultaneous webcast with earnings presentation, which is available on the Company’s website at www.sundanceenergy.net.

The Company’s 2014 Annual Report was filed with the ASX on March 31, 2015 and can be found at www.sundanceenergy.net.

About Sundance Energy Australia Limited

Sundance Energy Australia Limited (“Sundance” or the “Company”) is an Australian-based, independent energy exploration company, with a wholly owned US subsidiary, Sundance Energy Inc., located in Denver, Colorado, USA.

The Company is focused on the acquisition and development of large, repeatable oil and natural gas resource plays in North America. Current activities are focused in the Eagle Ford and Greater Anadarko Basins. A comprehensive overview of the Company can be found on Sundance’s website at www.sundanceenergy.net.

Summary Information

The following disclaimer applies to this document and any information contained in it. The information in this release is of general background and does not purport to be complete. It should be read in conjunction with Sundance’s periodic and continuous disclosure announcements lodged with ASX Limited that are available at www.asx.com.au and Sundance’s filings with the Securities and Exchange Commission available at www.sec.gov/edgar.

Forward Looking Statements

This release may contain forward-looking statements. These statements relate to the Company’s expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like “anticipate”, “believe”, “intend”, “estimate”, “expect”, “may”, “plan”, “project”, “will”, “should”, “seek” and similar words or expressions containing the same.

These forward-looking statements reflect the Company’s views and assumptions with respect to future events as of the date of this release and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. These include, but are not limited to, risks or uncertainties associated with the discovery and development of oil and natural gas reserves, cash flows and liquidity, business and financial strategy, budget, projections and operating results, oil and natural gas prices, amount, nature and timing of capital expenditures, including future development costs, availability and terms of capital and general economic and business conditions. Given these uncertainties, no one should place undue reliance on any forward looking statements attributable to Sundance, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this release sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information, please contact: United States Eric McCrady, Managing Director Tel: +1 (303) 543 5703 Australia Mike Hannell, Chairman Tel: +61 8 8363 0388

Source:Sundance Energy Australia Limited