Extraction Oil & Gas, Inc. Announces Third Quarter 2016 Financial And Operational Results

DENVER, Nov. 07, 2016 (GLOBE NEWSWIRE) -- Extraction Oil & Gas, Inc. (NASDAQ:XOG), an oil and gas exploration and production company with primary assets in the Wattenberg Field in the Denver-Julesburg Basin of Colorado, today reported financial and operational results for the third quarter ended September 30, 2016.

Unless indicated otherwise or the context otherwise requires, references in this report to the "Company," "XOG," "us," "we," "our," or "ours" or like terms refer to Extraction Oil & Gas, Inc. following the completion of our initial public offering on October 17, 2016. When used in the historical context, the "Company," "Holdings," "us," "we," "our" and "ours" or like terms refer to Extraction Oil & Gas Holdings, LLC and its subsidiaries. Holdings is our accounting predecessor, for which we present the financial information in this release.

Third-Quarter 2016 Highlights
  • Average net sales of 28,948 barrels of oil equivalent per day ("BOE/d"), a 45% increase from the same period in 2015, with closing of the acquisition of certain assets from Bayswater Exploration & Production, LLC (the "Bayswater Acquisition") on October 3, 2016, increasing estimated pro forma average net sales to approximately 37,000 BOE/d; 
  • Oil, natural gas and natural gas liquids ("NGL") sales totaled $72.9 million, a 49% increase from the same period in 2015; 
  • For the third quarter 2016, the Company reported net loss of $37.3 million, or $(0.11) per basic and diluted share, compared to net income of $18.7 million, or $0.07 per basic and diluted share, for the same period in 2015; and 
  • Adjusted EBITDAX prior to the impact of commodity derivatives of $43.5 million, a 51% increase from the same period in 2015 and including the impact of commodity derivatives of $48.2 million, a 12% increase from the same period in 2015. Adjusted EBITDAX and Adjusted EBITDAX, Unhedged are non-GAAP financial measures. For a definition of Adjusted EBITDAX and Adjusted EBITDAX, Unhedged and a reconciliation to our most directly comparable financial measure calculated and presented in accordance with GAAP, read "—Adjusted EBITDAX and Adjusted EBITDAX, Unhedged."

Commenting on third quarter 2016 results, Extraction's Chairman and CEO Mark Erickson said: "We are very pleased with our third quarter financial and operating results.  Year-over-year, we have substantially increased organic production while lowering our Capex cost structure.  With the close of our recent initial public offering, we have substantially improved the balance sheet which currently reflects less than 1x Net Debt to LTM EBITDAX. Extraction's debt and equity holders are well-positioned to benefit from our top-tier balance sheet strength which should allow us to continue our robust growth trajectory while maintaining financial flexibility and ample liquidity."  

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