Yuma Energy, Inc. Announces First Quarter 2017 Financial Results

HOUSTON, May 11, 2017 /PRNewswire/ -- Yuma Energy, Inc. (NYSE MKT: YUMA) (the "Company" or "Yuma") today announced its financial results for the quarter ended March 31, 2017.

First Quarter 2017 Highlights

• Net average production was 2,886 Boe/d for the first quarter of 2017, a 99.4 percent increase over the first quarter of 2016, and a 15.5 percent increase over the fourth quarter of 2016.
• Net income was $2,602,125 for the first quarter of 2017, compared to a net loss of $12,450,558 in the first quarter of 2016.
• Cash provided by operating activities was $951,526 for the first quarter of 2017, compared to cash used in operations of $892,311 in the first quarter of 2016.
• Lac Blanc Field, Vermillion Parish, Louisiana – During March 2017, the Company performed workover operations on the SL 18090 #2 well re-establishing production from the Miocene Siphonina D-1 sand (18,700 feet sand).  Before the workover the well had been shut-in.  Currently, the well is producing approximately 2.1 MMcf/d of natural gas and 40 Bbl/d of oil (1.3 MMcf/d and 28 Bbl/d net).
• The Company recently entered into a joint development agreement covering 33,280 acres in an area of mutual interest ("AMI") with two private companies and it acquired an 87.5% working interest in approximately 2,269 acres (1,985 net acres) in Yoakum County to horizontally develop the San Andres Play in the Permian Basin of west Texas.  Yuma is the operator of the joint venture and intends to spud its first joint venture well in 2017, as well as acquire additional acreage within the AMI.   

Management Comments

Sam L. Banks, CEO of Yuma Energy, Inc., commented, "We are excited about our Permian Basin acquisition and look forward to expanding our position in the San Andres horizontal play.  We are well positioned to execute our business strategy of investing in relatively low-risk and low capital opportunities within our existing inventory and grow shareholder value by organically increasing our inventory in the San Andres play.  As can be seen in the first quarter results, the merger with Davis has improved our liquidity and financial position, and nearly doubled our production."

Financial Results

Production

The following table presents the net quantities of oil, natural gas and natural gas liquids produced and sold by the Company for the three month periods ended March 31, 2017 and 2016, and the average sales price per unit sold.

Revenues

The following table presents the Company's revenues for the three month periods ended March 31, 2017 and 2016.

Expenses

The Company's lease operating expenses ("LOE") and LOE per Boe for the three month periods ended March 31, 2017 and 2016, are set forth below:

Commodity Derivative Instruments

Commodity derivative instruments open as of March 31, 2017 are provided below.  Natural gas prices are NYMEX Henry Hub prices, and crude oil prices are NYMEX West Texas Intermediate.

About Yuma Energy, Inc.

Yuma Energy, Inc., a Delaware corporation, is an independent Houston-based exploration and production company focused on delivering competitive returns to stockholders by acquiring, developing and exploring for conventional and unconventional oil and natural gas resources. We are committed to conducting our business in a manner that protects the environment and public health while upholding our values of integrity, trust, and open communications in all business activities.  Our operations are currently focused on onshore properties located in southern Louisiana, southeastern Texas, the Permian Basin of west Texas, and Kern and Santa Barbara Counties in California. In addition, we have non-operated positions in the East Texas Eagle Ford and Woodbine and the Bakken Shale in North Dakota. Our common stock is traded on the NYSE MKT under the trading symbol "YUMA."

Reincorporation Merger and Davis Merger

On October 26, 2016, Yuma Energy, Inc., a California corporation ("Yuma California"), merged with and into the Company resulting in the reincorporation from California to Delaware (the "Reincorporation Merger"). In connection with the Reincorporation Merger, Yuma California converted each outstanding share of its 9.25% Series A Cumulative Redeemable Preferred Stock (the "Yuma California Series A Preferred Stock"), into 35 shares of its common stock (the "Yuma California Common Stock"), and then each share of Yuma California Common Stock was exchanged for one-twentieth of one share of common stock of the Company (the "common stock"). Immediately after the Reincorporation Merger on October 26, 2016, a wholly owned subsidiary of the Company merged (the "Davis Merger") with and into Davis, in exchange for approximately 7,455,000 shares of common stock and 1,754,179 shares of Series D Convertible preferred stock (the "Series D preferred stock"). The Series D preferred stock had an aggregate liquidation preference of approximately $19.4 million and a conversion rate of $11.0741176 per share at the closing of the Davis Merger, and will be paid dividends in the form of additional shares of Series D preferred stock at a rate of 7% per annum. As a result of the Davis Merger, the former holders of Davis common stock received approximately 61.1% of the then outstanding common stock of the Company and thus acquired voting control. Although the Company was the legal acquirer, for financial reporting purposes the Davis Merger was accounted for as a reverse acquisition of the Company by Davis.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Statements that are not strictly historical statements constitute forward-looking statements and may often, but not always, be identified by the use of such words such as "expects," "believes," "intends," "anticipates," "plans," "estimates," "potential," "possible," or "probable" or statements that certain actions, events or results "may," "will," "should," or "could" be taken, occur or be achieved. The forward-looking statements include statements about future operations, and estimates of reserve and production volumes. Forward-looking statements are based on current expectations and assumptions and analyses made by the Company in light of experience and perception of historical trends, current conditions and expected future developments, as well as other factors appropriate under the circumstances. However, whether actual results and developments will conform with expectations is subject to a number of risks and uncertainties, including but not limited to: the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing crude oil and natural gas); risks and uncertainties involving geology of oil and natural gas deposits; the uncertainty of reserve estimates; revisions to reserve estimates as a result of changes in commodity prices; the uncertainty of estimates and projections relating to future production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; health, safety and environmental risks and risks related to weather; further declines in oil and natural gas prices; inability of management to execute its plans to meet its goals, shortages of drilling equipment, oil field personnel and services, unavailability of gathering systems, pipelines and processing facilities and the possibility that government policies may change.  The Company's annual report on Form 10-K for the year ended December 31, 2016, recent quarterly reports on Form 10-Q, recent current reports on Form 8-K, and other SEC filings discuss some of the important risk factors identified that may affect its business, results of operations, and financial condition. The Company undertakes no obligation to revise or update publicly any forward-looking statements, except as required by law.

SOURCE Yuma Energy, Inc.

Related Links

http://www.yumaenergyinc.com