CALGARY, ALBERTA--(Marketwired - Nov. 12, 2013) - RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP) is pleased to report its results for the third quarter of 2013. For the three months ended September 30, 2013, RMP reported funds from operations of $17.8 million ($0.16 per basic share) on revenue of $33.8 million and average daily production of 6,639 barrels of oil equivalent. Highlights are as follows:
Financial Highlights | Three Months Ended Sept. 30, | Nine Months Ended Sept. 30, | |||||||||||
(thousands except share and per boe data) (6:1 oil equivalent conversion) | 2013 | 2012 | % Change | 2013 | 2012 | % Change | |||||||
Petroleum and natural gas revenue (1) | 33,790 | 19,511 | 73 | 102,004 | 55,656 | 83 | |||||||
Funds from operations (2) | 17,796 | 11,789 | 51 | 59,145 | 31,749 | 86 | |||||||
Per share - basic |
0.16 | 0.12 | 33 | 0.55 | 0.32 | 72 | |||||||
- diluted | 0.15 | 0.12 | 25 | 0.52 | 0.32 | 63 | |||||||
Net income (loss) | 1,196 | (1,164 | ) | - | 7,997 | 4,076 | 96 | ||||||
Per share - basic and diluted | 0.01 | (0.01 | ) | - | 0.07 | 0.04 | 75 | ||||||
Total capital expenditures | 36,783 | 25,805 | 43 | 94,725 | 62,473 | 52 | |||||||
Net debt (3) - period end | 91,662 | 64,069 | 43 | 91,662 | 64,069 | 43 | |||||||
Weighted average basic shares | 109,591,162 | 100,225,439 | 9 | 106,965,791 | 97,915,535 | 9 | |||||||
Weighted average diluted shares | 116,091,485 | 100,225,439 | 16 | 112,708,577 | 97,915,535 | 15 | |||||||
Issued and outstanding shares (4) | 109,592,756 | 104,281,424 | 5 | 109,592,756 | 104,281,424 | 5 | |||||||
Operating Highlights | |||||||||||||
Average daily production: | |||||||||||||
Natural gas (Mcf/d) | 19,500 | 17,874 | 9 | 19,181 | 17,638 | 9 | |||||||
Liquids (Oil and NGLs) (Bbls/d) | 3,389 | 1,988 | 70 | 3,542 | 1,979 | 79 | |||||||
Oil equivalent (boe/d) | 6,639 | 4,967 | 34 | 6,739 | 4,919 | 37 | |||||||
% Liquids (Oil and NGLs) | 51 | % | 40 | % | 28 | 53 | % | 40 | % | 33 | |||
Average sales price(1) : | |||||||||||||
Natural gas ($/Mcf) | 3.00 | 2.47 | 21 | 3.46 | 2.30 | 50 | |||||||
Liquids (Oil and NGLs) ($/Bbl) | 91.11 | 84.52 | 8 | 86.72 | 82.12 | 6 | |||||||
Oil equivalent ($/boe) | 55.32 | 42.70 | 30 | 55.45 | 41.29 | 34 | |||||||
Operating expenses ($/boe) | 7.15 | 9.04 | (21 | ) | 7.30 | 8.29 | (12 | ) | |||||
Operating netback (5) ($/boe) | 32.13 | 29.55 | 9 | 35.62 | 27.57 | 29 | |||||||
Wells drilled: gross (net) | 6 (6.0 | ) | 4 (3.4 | ) | 50 | 13 (13.0 | ) | 11 (9.8 | ) | 18 |
Notes:
Third Quarter 2013 Operating and Financial Highlights
The Company's interim condensed consolidated financial statements and associated Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2013 are available on RMP's website at www.rmpenergyinc.com within "Investors" under "Financials". Additionally, these documents will have been filed by the close of business today, on the Company's profile on the System for Electronic Document Analysis and Retrieval ("SEDAR"). These documents can be retrieved electronically from the SEDAR system by accessing RMP's public filings under "Search for Public Company Documents" within the "Search Database" module at www.sedar.com.
Abbreviations
Bbl or Bbls | barrel or barrels | Mcf/d | thousand cubic feet per day | |||
Mbbl | thousand barrels | MMcf/d | million cubic feet per day | |||
bbls/d | barrels per day | Mcf | thousand cubic feet | |||
boe | barrels of oil equivalent | MMcf | million cubic feet | |||
Mboe | thousand barrels of oil equivalent | Bcf | billion cubic feet | |||
boe/d | barrels of oil equivalent per day | psi | pounds per square inch | |||
NGLs | natural gas liquids | kPa | kilopascals | |||
WTI | West Texas Intermediate | GJ/d | Gigajoules per day |
Reader Advisories
The information in this news release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. More particularly and without limitation, this news release contains forward-looking information relating to: forecasted average daily production rates for the month of October 2013 and fiscal 2013 and the current estimated corporate production rate including the light oil and NGLs weighting of such; widening differentials in the forward market for the Company's Waskahigan and Ante Creek crude oil pricing and the causes of such widening; expected future royalty rate decreases in the Ante Creek field; the anticipated future inventory of Company-operated drilling opportunities; the anticipated release date of both the Company's 2014 Capital Budget and Business Plan and an updated corporate reserves report; and the expected closing date of the equity financing. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; volatility in market prices for crude oil, natural gas and NGLs; foreign exchange currency and interest rate fluctuation; stock market volatility and market valuations; liabilities inherent in oil and natural gas operations; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry ; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that the Company will derive from them. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements.
In this news release RMP has adopted a standard for converting thousands of cubic feet ("mcf") of natural gas to barrels of oil equivalent ("boe") of 6 mcf:1 boe. Use of boes may be misleading, particularly if used in isolation. The boe rate is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value.
As an indicator of the Company's performance, the term funds from operations contained within this news release should not be considered as an alternative to, or more meaningful than, cash flow from operating, financing or investing activities, as determined in accordance with IFRS. This term is not a recognized measure, does not have a standardized meaning nor is it a financial measure under IFRS. Funds from operations is widely accepted as a financial indicator of an exploration and production company's ability to generate cash which is used to internally fund exploration and development activities and to service debt. This measure is widely used by shareholders and investors in the valuation, comparison and investment recommendations of companies within the natural gas and crude oil exploration and production industry. Funds from operations, as disclosed within this news release, represents cash flow from operating activities before: decommissioning obligation cash expenditures and changes in non-cash working capital from operating activities. The Company presents funds from operations per share whereby per share amounts are calculated consistent with the calculation of earnings per share.
Net debt refers to outstanding bank debt plus working capital deficit or less any working capital surplus (excludes current unrealized amounts pertaining to risk management commodity contracts). Net debt is not a recognized measure under IFRS and does not have a standardized meaning. Field operating netback or operating netback refers to realized wellhead revenue less royalties, operating expenses and transportation costs per boe. Field operating netback or operating netback is not a recognized measure under IFRS and does not have a standardized meaning.
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