Ranger Oil Corporation (“Ranger” or the “Company”) (NASDAQ: ROCC)
today announced an operational update and the timing of its third
quarter 2021 earnings release and conference call. Separately, the
Company has been renamed “Ranger Oil Corporation”. Ranger will
begin trading on the NASDAQ under the stock ticker of “ROCC” as of
market open on Monday, October 18, 2021.
Preliminary Third Quarter 2021
Operational and Financial Update
The operational and financial results below represent results
through September 30, 2021, and do not include the Lonestar
Resources (“Lonestar”) acquisition which closed October 5,
2021.
- Sold 20,429
barrels of oil per day (“bbl/d”) for the third quarter of 2021,
slightly exceeding the mid-point of guidance. Total sales volumes
for the third quarter of 2021 were 25,483 barrels of oil equivalent
per day (“boe/d”);
- Realized a third
quarter 2021 oil price of $68.10 per barrel, or $57.15 per barrel
including effects of derivatives, net(1);
- Incurred capital
expenditures of approximately $59 million on drilling and
completion activities, which was slightly below the mid-point of
guidance; and
- Generated
material free cash flow(2) for the third quarter of 2021, marking a
full two years of quarterly free cash flow(2) for the Company.
Darrin Henke, President and Chief Executive
Officer of the Company, commented, "We continued to benefit from
our operational and capital efficiency initiatives in the third
quarter of 2021. The result was further growth in oil sales volumes
and modest capital expenditures, which drove our eighth consecutive
quarter of free cash flow(2) generation, exhibiting our commitment
of appropriately managing the business all throughout a challenging
commodity price cycle. With our recent closing of the acquisition
of Lonestar and our continued two-rig drilling program, we expect
our free cash flow(2) profile to accelerate with more than $200
million estimated for 2022.”
“Our solid third quarter results provide a
strong foundation as we continue to capitalize on the opportunities
provided by our acquisition of assets from Rocky Creek Resources
earlier this year and our recent acquisition of Lonestar. The
result of our targeted efforts has been the creation of a
consolidated asset position of over 140,000 net acres in the core
of the Eagle Ford play in South Texas that, with the addition of
recently Turned-in-Line wells, is producing almost 40,000 boe/d. In
short, we have created a business that provides superior Adjusted
EBITDAX margins(3), high rate-of-return investment opportunities
with a large inventory of drilling locations, and significant free
cash flow generation which we expect to use to further reduce our
leverage position to 1.0x(4) or less in the first half of next
year.”
Third Quarter 2021 Conference
Call
Ranger plans to release its third quarter 2021
results after the market closes on Wednesday, November 3, 2021. A
conference call and webcast discussing the third quarter 2021
financial and operational results is currently scheduled for
Thursday, November 4, 2021 at 10 a.m. ET. Prepared remarks will be
followed by a question and answer period. Investors and analysts
may participate via phone by dialing (844) 707-6931 (international:
(412) 317-9248) five to 10 minutes before the scheduled start time,
or via webcast by logging on to the Company's website,
www.Rangeroil.com, at least 15 minutes prior to the scheduled start
time to download supporting materials and install any necessary
audio software.
An on-demand replay of the webcast will be
available on the Company's website beginning shortly after the
webcast. The replay will also be available from November 4, 2021,
through November 11, 2021, by dialing (877) 344-7529 (international
(412) 317-0088) and entering the passcode 10161219.
About Ranger Oil
Corporation
Ranger Oil (formerly known as Penn Virginia
Corporation) is a pure-play independent oil and gas company engaged
in the development and production of oil, NGLs, and natural gas,
with operations in the Eagle Ford shale in South Texas. For more
information, please visit our website at www.Rangeroil.com.
Cautionary Statements Regarding
Preliminary Financial and Operational Results
The estimates and guidance presented in this
release are based on assumptions of capital expenditure levels,
prices for oil, natural gas, and NGLs, current indications of
supply and demand for oil, well results, and operating costs. The
guidance provided in this release does not constitute any form of
guarantee or assurance that the matters indicated will be achieved.
While we believe these estimates and the assumptions on which they
are based are reasonable, they are inherently uncertain and are
subject to, among other things, significant business, economic,
operational and regulatory risks and uncertainties and are subject
to material revision. Actual results may differ materially from
estimates and guidance. Please read the “Forward-Looking
Statements” section below, as well as “Risk Factors” in our Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q.
Forward-Looking
Statements
This communication contains certain
"forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Statements that are
not historical facts are forward-looking statements, and such
statements include, words such as "anticipate," "guidance,"
"assumptions," "projects," "forward," "estimates," "outlook,"
"expects," "continues,", “project”, "intends," "plans," "believes,"
"future," "potential," "may," "foresee," "possible," "should,"
"would," "could," "focus" and variations of such words or similar
expressions, including the negative thereof, to identify
forward-looking statements. Because such statements include
assumptions, risks, uncertainties, and contingencies, actual
results may differ materially from those expressed or implied by
such forward-looking statements. These risks, uncertainties and
contingencies include, but are not limited to, the following: the
risk that the benefits of the acquisition of Lonestar may not be
fully realized or may take longer to realize than expected, and
that management attention will be diverted to transaction-related
issues; the impact of the COVID-19 pandemic, including reduced
demand for oil and natural gas, economic slowdown, governmental
actions, stay-at-home orders, interruptions to our operations or
our customer's operations; risks related to and the impact of
actual or anticipated other world health events; our ability to
satisfy our short-term and long-term liquidity needs, including our
ability to generate sufficient cash flows from operations or to
obtain adequate financing; our ability to maintain our
relationships with our suppliers, service providers, customers,
employees, and other third parties; our ability to develop, explore
for, acquire and replace oil and gas reserves and sustain
production; our ability to generate profits or achieve targeted
reserves in our development and exploratory drilling and well
operations; the projected demand for and supply of oil, NGLs and
natural gas; our ability to contract for drilling rigs, frac crews,
materials, supplies and services at reasonable costs; our ability
to renew or replace expiring contracts on acceptable terms; our
ability to obtain adequate pipeline transportation capacity or
other transportation for our oil and gas production at reasonable
cost and to sell our production at, or at reasonable discounts to,
market prices; and other risks set forth in our filings with the
SEC, including our most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q. Additional Information
concerning these and other factors can be found in our press
releases and public filings with the SEC. Many of the factors that
will determine our future results are beyond the ability of
management to control or predict. In addition, readers should not
place undue reliance on forward-looking statements, which reflect
management's views only as of the date hereof. The statements in
this communication speak only as of the date of the communication.
We undertake no obligation to revise or update any forward-looking
statements, or to make any other forward-looking statements,
whether as a result of new information, future events or otherwise,
except as may be required by applicable law.
Footnotes
|
(1) |
Realized oil price, including effects of derivatives, net is a
non-GAAP measure. Definitions and reconciliations of non-GAAP
financial measures and reconciliations of non-GAAP financial
measures to the closest GAAP-based financial measures appear at the
end of this release. |
|
(2) |
Free Cash Flow is a non-GAAP financial measure. Definitions of
non-GAAP financial measures appear at the end of this release. |
|
(3) |
Margin is defined as realized aggregate price, including effects of
derivatives less adjusted direct operating expenses. Adjusted
EBITDAX is a non-GAAP financial measure. Definitions of non-GAAP
financial measures appear at the end of this release. |
|
(4) |
Leverage ratio is calculated by dividing Net Debt by LTM Adj.
EBITDAX – see the end of the release for explanation of this
calculation. Net Debt and Adj. EBITDAX are non-GAAP financial
measures that are defined at the end of this release. |
RANGER OIL
CORPORATIONCERTAIN NON‐GAAP FINANCIAL MEASURES ‐
unaudited
Reconciliation of GAAP “Realized prices”
to Non-GAAP “Realized prices, including effects of derivatives,
net”
We present our realized prices for crude oil,
natural gas and natural gas, as adjusted for the effects of
derivatives, net as we believe these measures are useful to
management and stakeholders in determining the effectiveness of our
price-risk management program that is designed to reduce the
volatility associated with our operations. Realized prices for
crude oil, natural gas and natural gas, as adjusted for the effects
of derivatives, net, are supplemental financial measures that are
not prepared in accordance with generally accepted accounting
principles (“GAAP”). The following table presents the calculation
of our non-GAAP realized prices for crude oil, natural gas and
natural gas, as adjusted for the effects of derivatives, net and
reconciles to realized prices for crude oil, natural gas and
natural gas determined in accordance with GAAP:
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
September 30, |
|
June 30, |
|
September 30, |
|
September 30, |
|
|
2021 |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
Realized crude oil prices ($/bbl) |
|
$ |
68.10 |
|
|
|
$ |
63.54 |
|
|
|
$ |
37.39 |
|
|
$ |
62.99 |
|
|
|
$ |
36.05 |
|
Effects of derivatives
($/bbl) |
|
(10.95 |
) |
|
|
(10.84 |
) |
|
|
10.89 |
|
|
(10.91 |
) |
|
|
15.00 |
|
Crude oil realized prices,
including effects of derivatives, net ($/bbl) |
|
$ |
57.15 |
|
|
|
$ |
52.70 |
|
|
|
$ |
48.28 |
|
|
$ |
52.08 |
|
|
|
$ |
51.05 |
|
|
|
|
|
|
|
|
|
|
|
|
Realized natural gas liquid
prices ($/bbl) |
|
$ |
27.24 |
|
|
|
$ |
18.31 |
|
|
|
$ |
9.20 |
|
|
$ |
21.21 |
|
|
|
$ |
6.86 |
|
Effects of derivatives
($/bbl) |
|
(1.47 |
) |
|
|
(0.44 |
) |
|
|
— |
|
|
(0.69 |
) |
|
|
$ |
— |
|
Natural gas liquid realized
prices, including effects of derivatives, net ($/bbl) |
|
$ |
25.77 |
|
|
|
$ |
17.87 |
|
|
|
$ |
9.20 |
|
|
$ |
20.52 |
|
|
|
$ |
6.86 |
|
|
|
|
|
|
|
|
|
|
|
|
Realized natural gas prices
($/Mcf) |
|
$ |
4.11 |
|
|
|
$ |
2.70 |
|
|
|
$ |
1.80 |
|
|
$ |
3.23 |
|
|
|
$ |
1.73 |
|
Effects of derivatives
($/Mcf) |
|
(0.67 |
) |
|
|
0.01 |
|
|
|
0.08 |
|
|
(0.22 |
) |
|
|
0.13 |
|
Natural gas realized prices,
including effects of derivatives, net ($/Mcf) |
|
$ |
3.44 |
|
|
|
$ |
2.71 |
|
|
|
$ |
1.88 |
|
|
$ |
3.01 |
|
|
|
$ |
1.86 |
|
|
|
|
|
|
|
|
|
|
|
|
Aggregate realized prices
($/boe) |
|
$ |
59.77 |
|
|
|
$ |
54.75 |
|
|
|
$ |
30.70 |
|
|
$ |
54.58 |
|
|
|
$ |
29.57 |
|
Effects of derivatives
($/boe) |
|
(9.28 |
) |
|
|
(8.82 |
) |
|
|
8.30 |
|
|
(8.95 |
) |
|
|
11.57 |
|
Aggregate realized prices,
including effects of derivatives, net ($/boe) |
|
$ |
50.49 |
|
|
|
$ |
45.93 |
|
|
|
$ |
39.00 |
|
|
$ |
45.63 |
|
|
|
$ |
41.14 |
|
Effects of derivatives includes, as applicable
to the period presented: (i) current period commodity derivative
settlements; (ii) the impact of option premiums paid or received in
prior periods related to current period production; (iii) the
impact of prior period cash settlements of early-terminated
derivatives originally designated to settle against current period
production; (iv) the exclusion of option premiums paid or received
in current period related to future period production; and (v) the
exclusion of the impact of current period cash settlements for
early-terminated derivatives originally designated to settle
against future period production.
Definition and Explanation of Net Debt
Net debt, excluding unamortized discount and
debt issuance costs is a non-GAAP financial measure that is defined
as total principal amount of long-term debt less cash and cash
equivalents. Total principal amount of long-term debt used to
calculate Net debt for the period ended September 30, 2021,
excludes the Company’s 9.25% senior unsecured notes and related
funds which were held in escrow as restricted cash at September 30,
2021. The most comparable financial measure to net debt, excluding
unamortized discount and debt issuance costs under GAAP is
principal amount of long-term debt. Net debt is used by management
as a measure of our financial leverage. Net debt, excluding
unamortized discount and debt issuance costs should not be used by
investors or others as the sole basis in formulating investment
decisions as it does not represent the Company’s actual
indebtedness.
Definition and Explanation of Free Cash
Flow
Free Cash Flow is not a measure of net income
(loss) as determined by GAAP. We define Free Cash Flow as
Discretionary Cash Flow (non-GAAP) less acquisition capital plus
asset divestiture proceeds plus sales and use tax refunds less oil
and gas capital expenditures. Discretionary Cash Flow is defined as
Net Cash Provided by Operating Activities (GAAP) less changes in
working capital (current assets and liabilities). We believe this
presentation is commonly used by investors and professional
research analysts for the valuation, comparison, rating, investment
recommendations of companies within the oil and gas exploration and
production industry. We use this information for comparative
purposes within our industry. Our definition of Free Cash Flow may
differ from the definition used by other companies. Free Cash Flow
should be considered as a supplement to net income as a measure of
performance and net cash provided by operating activities as a
measure of our liquidity.
Definition and Explanation of Adjusted
EBITDAX
Adjusted EBITDAX represents net income (loss)
before loss on extinguishment of debt, interest expense, income
taxes, impairments of oil and gas properties, depreciation,
depletion and amortization expense and share-based compensation
expense, further adjusted to include the net commodity realized
settlements of derivatives and exclude the effects of gains and
losses on sales of assets, non-cash changes in the fair value of
derivatives, and special items including strategic transaction
costs, and organizational restructuring, including severance. We
believe this presentation is commonly used by investors and
professional research analysts for the valuation, comparison,
rating, investment recommendations of companies within the oil and
gas exploration and production industry. We use this information
for comparative purposes within our industry. Adjusted EBITDAX is
not a measure of financial performance under GAAP and should not be
considered as a measure of liquidity or as an alternative to net
income (loss). Adjusted EBITDAX as defined by the Company may not
be comparable to similarly titled measures used by other companies
and should be considered in conjunction with net income (loss) and
other measures prepared in accordance with GAAP, such as operating
income or cash flows from operating activities. Adjusted EBITDAX
should not be considered in isolation or as a substitute for an
analysis of the Company’s results as reported under GAAP.
Contact
Clay
Jeansonne Investor
RelationsPh: (713)
722-6540E-Mail:invest@Rangeroil.com
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