NYSE: VRI 42.39 +0.21 +0.5% Volume: 273,477 20 Minute Delay September 16, 2021

News Details

Vine Energy Inc. Announces First-Quarter 2021 Results and Provides 2021 Guidance

Monday, May 17, 2021

Vine Energy Inc. (NYSE: VEI) (“Vine” or the “Company”) today reported first-quarter 2021 results and provided full-year 2021 guidance and select guidance for the second-quarter 2021.

Highlights

  • Completed IPO on March 17, 2021, raising net proceeds of approximately $322 million
  • Issued $950 million of 8-year, 6.75% senior unsecured notes to retire predecessor company notes; projected to save nearly $20 million per year in cash interest expense
  • Closed on a new reserves-based lending facility (“RBL”) with an initial borrowing base of $350 million

The highlights presented below reflect select financial metrics from the unaudited financial statements for the three months ended March 31, 2021 and 2020, and include the results of the predecessor Vine Oil & Gas LP for the entire period and the results of Brix Oil & Gas Holdings LP and Harvest Royalties Holdings LP from March 17, 2021, the effective date of the combination resulting from the corporate reorganization in connection with the initial public offering.

First-Quarter 2021 Select Financial Highlights

 

 

Q1 2021

 

Q1 2020

 

Change

($ millions, except per share metrics)

 

 

 

 

 

 

Production (MMcfd)

 

 

 

724

 

 

 

622

 

 

 

102

Revenue, w/derivatives

 

$

 

118

 

$

 

130

 

$

 

(12

)

Operating Income

 

$

 

(23

)  

$

 

3

 

$

 

(26

)

Operating Cash Flow

 

$

 

105

 

$

 

100

 

$

 

5

Net Income

 

$

 

(58

)  

$

 

(27

)  

$

 

(31

)

Net Income attributable to Vine

 

$

 

(16

)  

 

 

 

Earnings per share

 

$

 

(3.95

)  

 

 

 

The unaudited financial statements are presented in their entirety in the appendix of this release.

To facilitate a clearer representation of first-quarter 2021 performance, all results presented hereinafter are pro forma for the combination resulting from the corporate reorganization and initial public offering as if the transactions occurred on January 1, 2020.

Financial and Operational Highlights

  • Generated $145 million of adjusted EBITDAX and $20 million of Adjusted Free Cash Flow
  • Incurred capital of $98 million, or 68% of adjusted EBITDAX
  • Announced 2021 capital guidance, which is projected to yield average annual production of approximately 1 Bcf per day (net) while generating substantial Adjusted Free Cash Flow
  • Continued to demonstrate progress toward the Company’s objective to reduce methane and greenhouse gas intensity

Reflecting on the quarter, Eric Marsh, Chairman, President and Chief Executive Officer, commented, “Our initial public offering begins a sequel in Vine’s short but exciting history, and it was undoubtedly the most transformational quarter since 2014 when the company was created by the acquisition of our Haynesville asset. Following the combination of three successful companies, Vine today holds a strategic position in the Haynesville Basin and we have the size, scale and balance sheet to generate significant levered free cash flow and return capital to our shareholders, while concurrently upholding our longstanding commitment to safety and environmental stewardship.”

Mr. Marsh continued, “Though there are many new things about us, our core identity hasn’t changed. Most notably, we have about 25 years of high-quality inventory that supports our ability to create free cash flow longevity, and our operating team is one of the most highly skilled, technical collection of professionals in the industry. We harbor the institutional knowledge and technology which allows us to drill some of the most economic natural gas wells in North America. We believe we can eclipse past milestones as we reach new drilling and completion efficiencies, drive down capital intensity and operating expenses, and deliver on our expectations. Along the way, I believe improving natural gas fundamentals will hasten our bid to substantially increase the value of the company while holding production steady.”

First-Quarter 2021 Select Financial Highlights (Pro Forma)

 

 

Q1 2021 

 

Q1 2020

 

Change 

($ millions, except for per unit metrics)

 

 

 

 

 

 

Production (MMcfd)

 

 

945

 

 

859

 

 

86

 

Average Realized Price, w/realized derivatives ($/Mcf)

 

$

2.34

 

$

2.39

 

$

(0.05

)

Operating Expenses ($/Mcf)

 

$

0.63

 

$

0.66

 

$

(0.03

)

Adjusted EBITDAX

 

$

145

 

$

136

 

$

9

 

Capital Incurred

 

$

98

 

$

99

 

$

(1

)

Adjusted Free Cash Flow

 

$

20

 

$

12

 

$

8

 

Production increased 86 MMcfd compared to the prior year quarter due to new wells brought online, improved operational efficiencies and exceptional PDP performance. However, production was negatively impacted by 28 MMcfd averaged over the first quarter due to winter storm Uri in February 2021 that forced temporary well curtailments.

Average realized price, including realized gain/loss on derivatives, was $2.34 per Mcf, $0.05 per Mcf lower compared to the prior year quarter, as follows:

 

 

Q1 2021 

 

Q1 2020

 

Change 

NYMEX settlement price (MMBtu) (1)

 

$

2.69

 

 

$

1.95

 

 

$

0.74

 

Basis differential, including firm sales

 

 

(0.13

)

 

 

(0.18

)

 

 

0.05

 

Fuel component of gathering

 

 

(0.07

)

 

 

(0.05

)

 

 

(0.02

)

BTU factor

 

 

(0.09

)

 

 

(0.07

)

 

 

(0.02

)

Prior-period adjustments and non-operated sales

 

 

(0.04

)

 

 

(0.01

)

 

 

(0.03

)

Average realized price, excluding derivatives (Mcf)

 

$

2.36

 

 

$

1.64

 

 

$

0.72

 

Realized gain/(loss) on derivatives

 

 

(0.02

)

 

 

0.75

 

 

 

(0.77

)

Average realized price, including derivatives (Mcf)

 

$

2.34

 

 

$

2.39

 

 

($

0.05

)

(1)

 

Based on posted futures settlement

Total operating expense, excluding DD&A, strategic and exploration expense, and the non-cash gain on the gathering liability, decreased $0.03 per Mcf compared to the prior year quarter. Lease operating expense was impacted by costs related to winter storm Uri and higher produced water volume, while cash gathering expense benefited from a step down in the contractual rate in September 2020. G&A expense was lower by $0.02 due to the June 2020 reduction in force and operating leverage on higher production volume.

per Mcf

 

Q1 2021

 

Q1 2020

 

Change 

Lease operating

 

$

0.22

 

$

0.20

 

$

0.02

 

Gathering & treating, excluding non-cash gain

 

 

0.31

 

 

0.32

 

 

(0.01

)

Prod & ad-valorem taxes

 

 

0.06

 

 

0.06

 

 

0.00

 

General & administrative

 

 

0.05

 

 

0.07

 

 

(0.02

)

Total (may not foot due to rounding)

 

$

0.63

 

$

0.66

 

$

(0.03

)

Adjusted EBITDAX in the first-quarter 2021 was $145 million compared to $136 million in the prior year quarter, or approximately 73% of revenue, excluding unrealized derivative losses, in both periods. The increase was largely due to higher production volume, partially offset by lower average realized prices. With the sum of capital incurred and cash interest essentially flat year-over-year, Adjusted Free Cash Flow was $20 million compared to $12 million in the prior year quarter.

Refer to “Non-GAAP Financial Measures” in the appendix of this release for a definition of Adjusted EBITDAX and Adjusted Free Cash Flow and related disclaimers.

Operating Results

Development and completion capital incurred in the first-quarter 2021 was $92 million to drill 7 gross (6.2 net) wells and complete 11 gross (10.4) net wells, while other field capital was $6 million related to the buildout of the Company’s water gathering and disposal infrastructure, midstream, leasing and other miscellaneous investments.

Q1 2021

 

Haynesville

 

Mid-Bossier

 

Total

 

 

Gross

 

Net 

 

Gross

 

Net 

 

Gross 

 

Net 

Wells Drilled

 

3

 

2.9

 

4

 

3.3

 

7

 

6.2

Wells Turned-In-Line (TIL)

 

9

 

8.4

 

2

 

2.0

 

11

 

10.4

Completed Lateral (ft)

 

 

 

 

 

 

 

 

 

87,993

 

83,010

Guidance: Prioritizing Free Cash Flow Generation and Debt Reduction

Vine’s 2021 guidance was developed to prioritize free cash flow generation and debt reduction. Average annual production is expected to be 10 – 12% higher compared to 2020 as the Company targets a one-time step-up to its optimal, long-term production goal of 1 Bcf per day.

Approximately 60% of expenditures associated with the 2021 capital program are expected to be incurred in the first six months of 2021. The program is expected to target 250,000 to 260,000 net feet of completed lateral while drilling and completion costs are expected in the range of $1,180 to $1,210 per lateral foot.

 

 

2021 (1) 

 

2nd quarter 2021 

Average Production

 

985 – 1,005 MMcfd

 

1,050 – 1,060 MMcfd

Adjusted Free Cash Flow (2)

 

$145 – $155 million

 

 

Capital Spending (incurred)

 

$340 – $350 million

 

 

Lease operating expense, per Mcf

 

$0.19 – $0.20

 

 

Gathering & treating, per Mcf

 

$0.29 – $0.30

 

 

Production & ad-valorem taxes, per Mcf

 

$0.06 – $0.07

 

 

General & administrative, per Mcf (3)

 

$0.06 – $0.07

 

 

Cash interest (4)

 

$88 – $90 million

 

$20 – $22 million

Cash income taxes (5)

 

$22 – $24 million

 

$5.0 – $5.5 million

(1)

 

Includes 1st quarter 2021 pro forma results for combined entity

(2)

 

Based on NYMEX futures on April 30, 2021; refer to the appendix for Vine’s definition of Adjusted Free Cash Flow

(3)

 

Excludes non-cash stock compensation

(4)

 

Excludes call premiums on retirement of Vine Oil & Gas LP unsecured notes

(5)

 

Includes tax distributions to original owners (financing cash flow)

Financial Position and Liquidity

As of March 31, 2021, total debt outstanding was $1.1 billion, consisting of $28 million outstanding under the 1st lien RBL, $150 million outstanding under the 2nd lien term loan, and $910 million of legacy unsecured notes issued by Vine Oil & Gas LP as the predecessor entity. Settlement of the newly issued $950 million, 6.75% 2029 senior unsecured notes did not occur until April 7, 2021. Liquidity was $389 million, in the form of cash on hand and availability under the Company’s $350 million RBL, less a $26 million letter of credit.

As of April 30, 2021, total debt outstanding was $1.2 billion, consisting of $73 million outstanding under the 1st lien RBL, $150 million outstanding under the 2nd lien term loan, and $950 million of 6.75% senior unsecured notes due 2029. Liquidity was $334 million.

In early May 2021, liquidity was enhanced by $13 million following the partial release (50%) of an outstanding letter of credit.

Hedging Update

Vine routinely utilizes commodity swaps and options to protect its development program and increase the predictability of future cash flows. As of March 31, 2021, approximately 90% of forecasted average production for April to December 2021 is hedged at a weighted average price of $2.53 per MMBtu.

The Company also engages in firm sales agreements with high-quality counterparties to effectively hedge the price received for natural gas sales at local gathering hubs. Approximately 55% of forecasted average production for April to December 2021 is presold, as follows: 30% at a weighted average price of $0.16 per MMBtu under NYMEX and 25% at $0.01 per MMBtu over Columbia Mainline.

Refer to appendix of this release for a quarterly schedule of the Company’s commodity derivative and firm sales portfolios.

Environmental, Social and Governance

Vine is committed to operating in a manner that protects the welfare of people, the environment, wildlife, and local communities. The Company proudly produces 100% natural gas to meet global demand for cleaner, sustainable, and reliable energy, while concurrently preserving ecosystems for future generations. Since 2017, Vine predecessors have reduced methane intensity by 62% and greenhouse gas intensity by 35%, with plans to realize further reductions. To learn more about Vine’s ESG leadership, visit www.vineenergy.com/commitment.

Conference Call

Date: May 17, 2021
Time: 9am Central time

Securities analysts may access an open line by dialing (844) 912-3900 (domestic U.S.) or (236) 714-3354 (international) using conference ID 5188044.

All others are encouraged to access the live webcast in listen-only mode by navigating to the following link: https://www.vineenergy.com/investors/events-and-presentations/. Note: registration required. Please access the link at least 5 minutes prior to the start of the call.

A replay of the webcast will be archived for one-year at the web address noted above.

About Vine Energy Inc.

Vine Energy Inc. (NYSE: VEI) is an energy company focused exclusively on the development of natural gas properties in the stacked Haynesville and Mid-Bossier shales in the Haynesville Basin of Northwest Louisiana. The company employs a relentless focus on generating free cash flow and shareholder returns while demonstrating environmental, social and governance leadership. For more information, visit our website at www.VineEnergy.com.

Forward-Looking Statements

The information in this Notice includes “forward-looking statements.” All statements, other than statements of historical fact included in this Notice, regarding our strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this Notice, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on our current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production and sale of natural gas. These risks include, but are not limited to, commodity price volatility, lack of availability of drilling and production equipment and services, costs for drilling and completion and production services, drilling and other operating risks, environmental risks, regulatory changes, the uncertainty inherent in estimating natural gas reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and other risks.

FINANCIAL STATEMENTS OF VINE ENERGY INC.

(U.S. GAAP)

 

VINE ENERGY INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share—Unaudited)

 

 

For the Three Months
Ended March 31,

 

2021

 

2020

Revenue:

 

 

 

 

Natural gas sales

 

$

153,986

 

 

$

92,543

 

Realized (loss) gain on commodity derivatives

 

 

(760

)

 

 

42,044

 

Unrealized loss on commodity derivatives

 

 

(35,103

)

 

 

(4,639

)

Total revenue

 

 

118,123

 

 

 

129,948

 

Operating Expenses:

 

 

 

 

Lease operating

 

 

14,960

 

 

 

12,995

 

Gathering and treating

 

 

20,601

 

 

 

16,382

 

Production and ad valorem taxes

 

 

3,982

 

 

 

4,149

 

General and administrative

 

 

2,583

 

 

 

3,331

 

Monitoring fee

 

 

2,077

 

 

 

1,738

 

Depletion, depreciation and accretion

 

 

97,072

 

 

 

82,324

 

Exploration

 

 

 

 

 

75

 

Strategic

 

 

 

 

 

562

 

Write-off of deferred IPO costs

 

 

 

 

 

5,787

 

Total operating expenses

 

 

141,275

 

 

 

127,343

 

Operating Income

 

 

(23,152

)

 

 

2,605

 

Interest Expense:

 

 

 

 

Interest

 

 

(29,792

)

 

 

(29,351

)

Loss on extinguishment of debt

 

 

(4,883

)

 

 

 

Total interest expense

 

 

(34,675

)

 

 

(29,351

)

Income before income taxes

 

 

(57,827

)

 

 

(26,746

)

Income tax provision

 

 

(165

)

 

 

(150

)

Net Income

 

$

(57,992

)

 

$

(26,896

)

Net income attributable to Predecessor

 

 

(28,939

)

 

 

Net income attributable to noncontrolling interest

 

 

(13,144

)

 

 

Net income attributable to Vine Energy Inc

 

 

(15,909

)

 

 

Net income per share attributable to Vine Energy Inc

 

 

 

 

Basic

 

$

(3.95

)

 

 

Diluted

 

$

(3.95

)

 

 

Weighted average shares outstanding:

 

 

 

 

Basic

 

 

4,032,450

 

 

 

Diluted

 

 

4,032,450

 

 

 

 

VINE ENERGY INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands—Unaudited)

 

 

March 31,
2021

 

December 31,
2020
 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

92,528

 

 

$

15,517

 

Accounts receivable

 

 

91,161

 

 

 

77,129

 

Joint interest billing receivables

 

 

17,625

 

 

 

18,280

 

Prepaid and other

 

 

1,417

 

 

 

3,626

 

Total current assets

 

 

202,731

 

 

 

114,552

 

Natural gas properties (successful efforts):

 

 

 

 

Proved

 

 

3,162,572

 

 

 

2,722,419

 

Unproved

 

 

89,993

 

 

 

 

Accumulated depletion

 

 

(1,475,582

)

 

 

(1,380,065

)

Total natural gas properties, net

 

 

1,776,983

 

 

 

1,342,354

 

Other property and equipment, net

 

 

8,828

 

 

 

7,936

 

Other

 

 

12,233

 

 

 

2,921

 

Total assets

 

$

2,000,775

 

 

$

1,467,763

 

Liabilities and Stockholders’ Equity / Partners’ Capital

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

7,908

 

 

$

20,986

 

Accrued liabilities

 

 

141,468

 

 

 

90,004

 

Revenue payable

 

 

29,121

 

 

 

37,552

 

Derivatives

 

 

78,529

 

 

 

19,948

 

Total current liabilities

 

 

257,026

 

 

 

168,490

 

Long-term liabilities:

 

 

 

 

New RBL

 

 

28,000

 

 

 

 

Prior RBL

 

 

 

 

 

183,569

 

Second lien credit facility

 

 

143,664

 

 

 

142,947

 

Unsecured debt

 

 

899,435

 

 

 

898,225

 

Asset retirement obligations

 

 

23,467

 

 

 

21,889

 

TRA liability

 

 

6,985

 

 

 

 

Derivatives

 

 

31,447

 

 

 

38,341

 

Other

 

 

 

 

 

4,241

 

Total liabilities

 

 

1,390,024

 

 

 

1,457,702

 

Commitments and contingencies

 

 

 

 

Stockholders’ Equity / Partners’ Capital

 

 

 

 

Partners’ capital

 

 

 

 

 

10,061

 

Class A common stock, $0.01 par value, 350,000,000 shares authorized, 41,040,721 issued and outstanding at March 31, 2021

 

 

410

 

 

 

 

Class B common stock, $0.01 par value, 150,000,000 shares authorized, 34,218,535 issued and outstanding at March 31, 2021

 

 

342

 

 

 

 

Additional paid-in capital

 

 

348,406

 

 

 

 

Retained earnings

 

 

(15,909

)

 

 

Total stockholders’ equity attributable to Vine Energy Inc

 

 

333,249

 

 

 

10,061

 

Noncontrolling interest

 

 

277,502

 

 

 

 

Total stockholders’ equity / partners’ capital

 

 

610,751

 

 

 

10,061

 

Total liabilities and stockholders’ equity / partners’ capital

 

$

2,000,775

 

 

$

1,467,763

 

 

VINE ENERGY INC

CONSOLIDATED STATEMENTS OF CASH FLOW

(Amounts in thousands—Unaudited)

 

 

For the Three Months
Ended March 31,
 

 

 

2021

 

2020

Operating Activities

 

 

 

 

Net income

 

$

(57,992

)

 

$

(26,896

)

Adjustments to reconcile net income to operating cash flow:

 

 

 

 

Depletion, depreciation and accretion

 

 

97,072

 

 

 

82,324

 

Amortization of financing costs

 

 

2,909

 

 

 

4,361

 

Non-cash loss on extinguishment of debt

 

 

4,883

 

 

 

 

Non-cash write-off of deferred IPO costs

 

 

 

 

 

5,787

 

Unrealized loss on commodity derivatives

 

 

35,103

 

 

 

4,639

 

Volumetric and production adjustment to gas gathering liability

 

 

 

 

 

(2,567

)

Other

 

 

33

 

 

 

(6

)

Changes in assets and liabilities:

 

 

 

 

Accounts receivable

 

 

11,294

 

 

 

9,549

 

Joint interest billing receivables

 

 

10,084

 

 

 

(5,041

)

Accounts payable and accrued expenses

 

 

25,182

 

 

 

34,428

 

Revenue payable

 

 

(21,815

)

 

 

(6,967

)

Other

 

 

(1,442

)

 

 

530

 

Operating cash flow

 

 

105,311

 

 

 

100,141

 

Investing Activities

 

 

 

 

Cash received in acquisition of the Brix Companies

 

 

19,858

 

 

 

 

Capital expenditures

 

 

(78,013

)

 

 

(86,005

)

Investing cash flow

 

 

(58,155

)

 

 

(86,005

)

Financing Activities

 

 

 

 

Repayment of Brix Credit Facility

 

 

(127,500

)

 

 

 

Proceeds from New RBL

 

 

28,000

 

 

 

45,000

 

Payments on Prior RBL

 

 

(190,000

)

 

 

 

Proceeds from issuance of Class A common stock, net of fees

 

 

327,422

 

 

 

 

Deferred financing costs

 

 

(8,067

)

 

 

(3,848

)

Financing cash flow

 

 

29,855

 

 

 

41,152

 

Net increase in cash and cash equivalents

 

 

77,011

 

 

 

55,288

 

Cash and cash equivalents at beginning of period

 

 

15,517

 

 

 

18,286

 

Cash and cash equivalents at end of period

 

$

92,528

 

 

$

73,574

 

FINANCIAL STATEMENTS OF VINE ENERGY INC.
(Pro Forma)

To facilitate a clearer representation of first-quarter 2021 performance, all schedules presented hereinafter are pro forma for the combination resulting from the corporate reorganization and initial public offering as if the transactions occurred on January 1, 2020.  

VINE ENERGY INC.

UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS

 

 

For the Three Months
Ended March 31,

 

 

2021

 

2020

Revenue:

 

 

 

 

Natural gas sales

 

$

200,927

 

 

$

128,296

 

Realized gain (loss) on derivatives

 

 

(2,348

)

 

 

58,305

 

Unrealized loss on derivatives

 

 

(37,949

)

 

 

(5,437

)

Total revenue

 

 

160,630

 

 

 

181,164

 

Operating Expenses:

 

 

 

 

Lease operating

 

 

18,693

 

 

 

15,725

 

Gathering and treating

 

 

26,296

 

 

 

22,654

 

Production and ad valorem taxes

 

 

4,757

 

 

 

4,951

 

General and administrative

 

 

3,954

 

 

 

5,453

 

Depletion, depreciation and accretion

 

 

106,505

 

 

 

93,457

 

Exploration

 

 

1

 

 

 

75

 

Strategic costs

 

 

 

 

 

717

 

Write-off of deferred IPO expenses

 

 

 

 

 

5,787

 

Total operating expenses

 

 

160,206

 

 

 

148,819

 

Operating Income

 

 

424

 

 

 

32,345

 

Interest expense

 

 

(34,249

)

 

 

(27,284

)

Income Before Income Taxes

 

 

(33,825

)

 

 

5,061

 

Income tax provision

 

 

(165

)

 

$

(150

)

Net Income

 

$

(33,990

)

 

$

4,911

 

Net income attributable to non-controlling interests

 

 

(15,390

)

 

 

2,303

 

Net Income Attributable to Vine Energy Inc

 

 

(18,600

)

 

 

2,608

 

Net Income per Share:

 

 

 

 

Basic

 

$

(0.45

)

 

$

0.06

 

Diluted

 

$

(0.45

)

 

$

0.06

 

Weighted Average Shares Outstanding:

 

 

 

 

Basic

 

 

41,040,721

 

 

 

41,040,721

 

Diluted

 

 

41,040,721

 

 

 

41,040,721

 

VINE ENERGY INC

SELECT PRO FORMA PRODUCTION AND UNIT COSTS STATISTICS

 

 

For the Three Months
Ended Mar 31,
 

 

 

2021

 

2020

Production data:

 

 

 

 

Natural gas (MMcf)

 

 

85,035

 

 

78,207

 

Average daily production (MMcfd)

 

 

945

 

 

859

 

Average sales prices per Mcf:

 

 

 

 

Before effects of derivatives

 

$

2.36

 

$

1.64

 

After effects of derivatives

 

 

2.34

 

 

2.39

 

Costs per Mcf:

 

 

 

 

Lease operating

 

$

0.22

 

$

0.20

 

Cash gathering and treating

 

 

0.31

 

 

0.32

 

Production and ad valorem taxes

 

 

0.06

 

 

0.06

 

General and administrative

 

 

0.05

 

 

0.07

 

Total cash operating expenses

 

$

0.63

 

$

0.66

 

Exploration

 

 

0.00

 

 

0.00

 

Depreciation, depletion and accretion

 

 

1.25

 

 

1.19

 

Strategic

 

 

 

 

0.01

 

Non-cash gain on gathering liability

 

 

 

 

(0.03

)

Non-cash writeoff of deferred IPO costs

 

 

 

 

0.07

 

Total (may not foot due to rounding)

 

$

1.88

 

$

1.90

 

VINE ENERGY INC.

NATURAL GAS SWAPS

 

 

Natural Gas
Swaps

 

Weighted Avg
Swap Price

Period

 

(MMBtud) 

 

($ / MMBtu) 

2021

 

 

 

 

Second Quarter

 

832,871

 

$

2.52

Third Quarter

 

845,333

 

$

2.53

Fourth Quarter

 

848,887

 

$

2.55

2022

 

 

 

 

First Quarter

 

866,797

 

$

2.56

Second Quarter

 

348,859

 

$

2.54

Third Quarter

 

409,853

 

$

2.54

Fourth Quarter

 

604,935

 

$

2.53

2023

 

 

 

 

First Quarter

 

528,652

 

$

2.48

Second Quarter

 

65,470

 

$

2.45

Third Quarter

 

45,954

 

$

2.44

Fourth Quarter

 

125,092

 

$

2.50

2024

 

 

 

 

First Quarter

 

313,512

 

$

2.53

Second Quarter

 

11,957

 

$

2.31

Third Quarter

 

7,366

 

$

2.31

Fourth Quarter

 

70,761

 

$

2.58

2025

 

 

 

 

First Quarter

 

137,667

 

$

2.58

VINE ENERGY INC.
FIRM SALES

Period

 

Firm Sales:
NYMEX Index
(MMBtud)

 

Weighted Avg Price
(NYMEX less)
($ / MMBtu)

 

Firm Sales:
ML Index
(MMBtud)
 

 

Weighted Avg Price
(ML plus)
($ / MMBtu) 

2021

 

 

 

 

 

 

 

 

Second Quarter

 

405,067

 

$

(0.163

)

 

467,171

 

$

0.012

Third Quarter

 

310,000

 

$

(0.163

)

 

355,202

 

$

0.013

Fourth Quarter

 

310,000

 

$

(0.163

)

 

138,401

 

$

0.014

2022

 

 

 

 

 

 

 

 

First Quarter

 

310,000

 

$

(0.163

)

 

30,000

 

$

0.015

Second Quarter

 

100,000

 

$

(0.150

)

 

30,000

 

$

0.015

Third Quarter

 

100,000

 

$

(0.150

)

 

30,000

 

$

0.015

Fourth Quarter

 

33,333

 

$

(0.150

)

 

30,000

 

$

0.015

2023

 

 

 

 

 

 

 

 

First Quarter

 

 

 

 

 

30,000

 

$

0.015

FINANCIAL STATEMENTS OF VINE ENERGY INC.
(Reconciliation)

NON-GAAP FINANCIAL MEASURES

We define Adjusted EBITDAX as our net income before interest expense, income taxes, depreciation, depletion and accretion, unrealized gains and losses on commodity derivatives, exploration expense, strategic expense, and other non-cash operating items. We believe Adjusted EBITDAX is a useful performance measure because it allows for an effective valuation of our operating performance when compared against our peers, without regard to our financing methods, corporate form, or capital structure. We exclude the items listed above in arriving at Adjusted EBITDAX to reflect the substantial variance in practice from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income determined in accordance with GAAP. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax burden, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of Adjusted EBITDAX may not be identical to other similarly titled measures of other companies.

We define Adjusted Free Cash Flow as Adjusted EBITDAX less the sum of cash interest, capital incurred and tax payments and distributions. We believe Adjusted Free Cash Flow is a useful performance measure as it’s an indicator of the company’s ability to generate cash flow once capital is invested to either maintain or expand production. Adjusted Free Cash Flow should not be considered as an alternative to, or more meaningful than, operating cash flow or investing cash flow determined in accordance with GAAP. Our computation of adjusted free cash flow may not be identical to other similarly titled measures of other companies.

VINE ENERGY INC.

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDAX AND ADJUSTED FREE CASH FLOW

 

 

Pro Forma Presentation

 

GAAP Presentation 

 

 

For the Three Months
Ended Mar 31,

 

For the Three Months
Ended Mar 31,

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

 

(in thousands)

 

(in thousands)

Net income/(loss)

 

$

(33,990

)

 

$

4,911

 

 

$

(57,992

)

 

$

(26,896

)

Interest expense

 

 

34,249

 

 

 

27,284

 

 

 

34,675

 

 

 

29,351

 

Income tax provision

 

 

165

 

 

 

150

 

 

 

165

 

 

 

150

 

Depletion, depreciation and accretion

 

 

106,505

 

 

 

93,457

 

 

 

97,072

 

 

 

82,324

 

Unrealized (gain)/loss on commodity derivatives

 

 

37,949

 

 

 

5,437

 

 

 

35,103

 

 

 

4,639

 

Exploration

 

 

1

 

 

 

75

 

 

 

 

 

 

75

 

Non-cash G&A

 

 

 

 

 

344

 

 

 

(1

)

 

 

(6

)

Strategic

 

 

 

 

 

717

 

 

 

 

 

 

562

 

Non-cash writeoff of deferred IPO costs

 

 

 

 

 

5,787

 

 

 

 

 

 

5,787

 

Non-cash volumetric and production adjustment to gas gathering liability

 

 

 

 

 

(2,567

)

 

 

 

 

 

(2,567

)

Adjusted EBITDAX

 

$

144,879

 

 

$

135,595

 

 

$

109,022

 

 

$

93,419

 

Cash interest

 

 

(26,588

)

 

 

(24,242

)

 

 

(26,770

)

 

 

(24,990

)

Capital incurred

 

 

(97,828

)

 

 

(99,021

)

 

 

(81,168

)

 

 

(82,290

)

Adjusted Free Cash Flow

 

$

20,463

 

 

$

12,332

 

 

$

1,084

 

 

$

(13,861

)

 

Investor Contact Information
David Erdman
Director, Investor Relations
Phone: 469-605-2480
Email: david.erdman@VineEnergy.com

Source: Vine Energy Inc.

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