CALGARY, ALBERTA--(Marketwired - May 14, 2014) - RMP Energy Inc. ("RMP" or the "Company") (TSX:RMP) is pleased to announce for the three months ended March 31, 2014 a record level of funds from operations of $35.5 million ($0.30 per basic share) on revenue of $56.5 million and average daily production of 9,229 barrels of oil equivalent (60% light oil and NGLs weighted). Detailed first quarter results are as follows:
Financial Highlights | Quarterly Summary | ||||||
(thousands except share and per boe data) (6:1 oil equivalent conversion) | March 31, 2014 | March 31, 2013 | % change | ||||
P&NG revenue (1) | 56,505 | 32,597 | 73 | ||||
Funds from operations (2) | 35,534 | 20,128 | 77 | ||||
Per share - basic | 0.30 | 0.19 | 58 | ||||
Per share - diluted | 0.28 | 0.18 | 56 | ||||
Net income | 9,896 | 1,733 | 471 | ||||
Per share - basic | 0.08 | 0.02 | 300 | ||||
Per share - diluted | 0.08 | 0.02 | 300 | ||||
Total capital expenditures | 56,264 | 39,128 | 44 | ||||
Net debt (3) - period end | 134,542 | 95,667 | 41 | ||||
Weighted average basic shares | 118,876,223 | 104,281,424 | 14 | ||||
Weighted average diluted shares | 126,590,500 | 108,889,264 | 16 | ||||
Issued and outstanding shares (4) | 119,254,756 | 104,281,424 | 14 | ||||
Operating Highlights | |||||||
Average daily production: | |||||||
Natural gas (Mcf/d) | 22,086 | 18,274 | 21 | ||||
Crude Oil (bbls/d) | 5,310 | 3,428 | 55 | ||||
NGLs (bbls/d) | 238 | 253 | (6 | ) | |||
% Liquids (Oil and NGLs) | 60 | % | 55 | % | 9 | ||
Oil equivalent (boe/d) | 9,229 | 6,727 | 37 | ||||
Average sales price (1): | |||||||
Natural gas ($/Mcf) | 5.68 | 3.50 | 62 | ||||
Crude Oil ($/bbl) | 91.56 | 82.58 | 11 | ||||
NGLs ($/bbl) | 67.66 | 60.13 | 13 | ||||
Oil equivalent ($/boe) | 68.02 | 53.85 | 26 | ||||
Operating expenses ($/boe) | 6.74 | 7.93 | (15 | ) | |||
Operating netback (5) ($/boe) | 46.42 | 36.69 | 27 | ||||
Wells drilled: gross (net) | 6 (6.0 | ) | 6 (6.0 | ) | - |
Table Notes:
First Quarter 2014 Highlights
The Company's interim condensed consolidated financial statements and associated Management's Discussion and Analysis, for the three month period ended March 31, 2014 is available on RMP's website at www.rmpenergyinc.com within "Investors" under "Financials". Additionally, these documents were filed today 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.
Annual Shareholders Meeting
RMP's annual meeting of shareholders is scheduled for 3:00 p.m. on Thursday, June 5th, 2014 in the McMurray Room of the Calgary Petroleum Club, located at 319 - 5th Avenue S.W., Calgary, Alberta.
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 | MMcf | Million cubic feet | |||
boe | barrels of oil equivalent | Bcf | billion cubic feet | |||
Mboe | thousand barrels of oil equivalent | psi | pounds per square inch | |||
boe/d | barrels of oil equivalent per day | kPa | kilopascals | |||
NGLs | natural gas liquids | GJ/d | Gigajoules per day | |||
WTI | West Texas Intermediate |
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 new release contains forward looking information relating to: 2014 budgeted and forecasted items including full year and second half corporate average daily production and full year capital expenditures; and the re-commencement timing of drilling operations after 'spring break-up'. 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; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; 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 International Financial Reporting Standards ("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: expensed corporate acquisition-related costs, 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 barrel of oil equivalent. Field operating netback or operating netback is not a recognized measure under IFRS and does not have a standardized meaning.
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