Loading, Please Wait...

CST: 12/12/2019 00:01:57   

Chaparral Energy Announces Third Quarter 2019 Financial and Operational Results

30 Days ago

OKLAHOMA CITY, Nov. 11, 2019 (GLOBE NEWSWIRE) -- Chaparral Energy, Inc. (NYSE: CHAP) announced today its third quarter 2019 financial and operational results. The company will hold its quarterly earnings call Tuesday, November 12, at 9 a.m. Central.

Recent Highlights

  • Achieved third quarter 2019 total production of 26.2 thousand barrels of oil equivalent per day (MBoe/d) and STACK production of 21.5 MBoe/d, despite ethane rejection elections which lowered production by 0.5 MBoe/d, both within the guidance range and a 23% and 37% increase from the third quarter of 2018, respectively
  • Reported net loss of $130.9 million for the third quarter of 2019, or $2.86 per share, primarily driven by a $147.7 million non-cash ceiling test impairment; adjusted net income, as defined below, of $1.2 million, or $0.03 per share
  • Generated third quarter 2019 adjusted EBITDA, as defined below, of $35.8 million, an increase of 4% compared to the previous year despite oil (WTI) prices and natural gas liquids (NGLs) realizations decreasing approximately 19% and 52% over the same time period
  • Proactively reduced operated rig count from three to two rigs in October
  • Optimizing a one to two rig program in 2020 that will significantly reduce capital spend year over year, while growing production and allowing the company to become cash flow neutral
  • Decreased full year 2019 capex guidance to $260 to $280 million from $275 to $300 million, while maintaining full year production guidance at 25.0 to 27.0 MBoe/d
  • Reduced $18.1 million of debt through the sale of the corporate headquarters facilities and elimination of CO2 compressor leases

“We continue to demonstrate the considerable value of our differentiated operational execution and strong year-to-date performance and are proud to deliver operational results within or above our guidances ranges yet again,” said Chief Executive Officer Earl Reynolds. “As we have discussed in the past, the overall timing of our production growth will be uneven from quarter to quarter due to spacing tests, the drilling of larger pads and timing of completions within a quarter. As such, as expected our third quarter total production declined compared to the second quarter, to 26.2 MBoe/d. While we had 13 wells come online in the third quarter, nearly half were in September and three occurred in the last two days of the quarter. This timing of completions will positively impact our fourth quarter production, and through early November, our total production has averaged above 28.0 MBoe/d. We have taken proactive steps to reduce our absolute and per Boe lease operating costs (LOE) and we have reduced our general and administrative (G&A) spend by about 25%. In addition, we have been able to reduce our average well cost by approximately 15% to 20% compared to 2018 for our Merge Miss and Osage drilling program. Increased operational efficiencies allow us to drill and complete wells faster, drive down costs and reduce cycle times, which all positively impact well economics. We continue to learn from our drilling, completion and production spacing test results and apply those learnings to our future development program.”

“As we concentrate our efforts on accelerating our timeline to cash flow neutrality, we proactively reduced our rig count from three to two rigs in October which allowed us to further reduce our 2019 capital guidance to $260 to $280 million and will result in a significant reduction to our 2020 capital program. We are reaffirming our original full-year 2019 production estimates and continue to take measures to reduce costs across our entire business,” said Reynolds. “We expect to enter 2020 with two rigs running and continue to refine and optimize our development plans for next year, assuming one to two rigs, as we are dedicated to achieving cash flow neutrality in 2020.  We are proud of the differentiated STACK/Merge operational execution and remain focused, as ever, on cost management and capital discipline.”

Operational Update
Chaparral’s STACK production for the third quarter of 2019 was 21.5 MBoe/d, while total company production was 26.2 MBoe/d, both of which were within the company’s third quarter 2019 guidance range. As expected, due to timing associated with production from the company’s multi-well spacing tests, total company and STACK production decreased on a quarter-over-quarter basis by 7% and 10%, respectively. On a year-over-year basis, STACK production increased 37%, while total company production increased 27%, excluding 2018 divestitures. Overall, total company production consisted of 31% oil, 29% natural gas liquids (NGLs) and 40% natural gas in the third quarter of 2019.

Production continues to be variable from quarter to quarter primarily due to pad drilling and timing of completions. In the third quarter, the company had 13 new gross operated STACK wells with first sales, nine of which were brought online in September with three of these wells with first sales in the last two days of the quarter. This is a significant reduction from the 28 wells with first sales in the second quarter of 2019. Also impacting third quarter production was ethane rejection elections accounting for approximately 500 Boe/d. Of the 13 wells with first sales in the third quarter, nine were in Kingfisher County and four in Canadian County. Chaparral plans to operate two rigs for the remainder of 2019 and one to two rigs in 2020, with all operated activity currently projected to be allocated to Canadian and Kingfisher counties.

The company continues to see overall strong results from its spacing test program. These tests are geologically driven, with some tests performing better than others. Given the performance of Merge spacing results, the company is planning another Meramec full section development in Canadian County, with the drilling of the six-well Greenback project in the fourth quarter as it continues testing the number of wells per section to optimize long-term, full section development. The growth trajectory of Chaparral’s STACK/Merge production will continue to be impacted by the number of operated rigs running and spacing tests moving forward, with production dependent on how many wells are completed and brought online in any given quarter.

Chaparral’s total oil and natural gas CAPEX during the third quarter was $66.3 million, of which $60.2 million was associated with the STACK. Of its STACK CAPEX, $55.9 million was related to D&C activities, which included $1.6 million of non-operated CAPEX. Additionally, $1.9 million was invested in acquisition activities and $2.4 million in workovers and other enhancement capital.

CAPEX (in millions) Q3 2019
STACK Acquisitions $1.9
STACK D&C1 $55.9
STACK Enhancements $2.4
Total STACK $ 60.2
Other Enhancements $1.2
Corporate Allocations2 $4.9
Total CAPEX $ 66.3

   1 Includes non-operated costs of $1.6 million and $0.5 million of drilling joint venture
   2 Includes capitalized G&A, capitalized interest and asset retirement obligations

Updated 2019 Guidance
Chaparral expects CAPEX in the fourth quarter of 2019 to be significantly lower than the first nine months of 2019, due to the reduction to two operated rigs, increased drilling and completion efficiencies per well, lower-than-anticipated non-operated activity, and lower acquisition capital. The company is reducing full year 2019 CAPEX guidance to $260 to $280 million, which is a reduction from the midpoint of the original 2019 guidance of approximately 6%.

The company is also re-affirming its original production guidance range of 25.0 to 27.0 MBoe/d for the full year 2019, despite the reduction in total CAPEX. Chaparral expects fourth quarter 2019 total company production to be between 27.5 and 29.0 MBoe/d and total STACK production to between 23.0 and 24.5 MBoe/d.

Full Year 2019 Guidance Updated 2019E Original 2019E
Total CAPEX (in millions) $260 - $280 $275 - $300
LOE/Boe $4.90 - $5.40 $5.00 - $5.50
STACK LOE/Boe $3.60 - $4.10 $3.75 - $4.25
Cash G&A/Boe $2.50 - $3.00 $2.85 - $3.35
Total Company Production (MBoe/d) 25.0 - 27.0 25.0 - 27.0
STACK Production (MBoe/d) 21.0 - 23.0 21.0 - 23.0


Financial Summary

Chaparral reported a net loss of $130.9 million, or $2.86 per share, during the third quarter of 2019. The company’s adjusted net income for the quarter was $1.2 million or $0.03 per share. The quarterly net loss included a $147.7 million non-cash ceiling test impairment charge primarily due to a decrease in the prices used to estimate its reserves, partially offset by an $18.7 million non-cash gain in the fair value of hedge derivative instruments. Chaparral’s adjusted EBITDA for the third quarter was up 4%, or 8% when excluding 2018 divestitures, on a year-over-year basis to $35.8 million, driven by increased production and lower operating costs, partially offset by lower pricing.  The price change on a year-over-year basis has had a significant impact with WTI prices and NGL realizations decreasing 19% and 52%, respectively.

Total gross commodity sales for the third quarter of 2019 were $58.0 million, which included $40.5 million from oil, $8.8 million from NGLs and $8.7 million from natural gas. This represents a 20% quarter-over-quarter decrease compared to $72.5 million in the second quarter of 2019 and a decrease of 17% year-over-year compared to $70.1 million in the third quarter of 2018.

Chaparral’s average realized price for crude oil, excluding derivative settlements, decreased to $54.82 per barrel in the third quarter of 2019, down 6% from the second quarter of 2019 and down 22% from the third quarter of 2018. Chaparral’s realized NGL price during the third quarter of 2019 was $12.57 per barrel, which represents a 15% quarter-over-quarter decrease and a 52% year-over-year decrease. The company’s realized natural gas price during the third quarter of 2019 was $1.50 per thousand cubic feet (Mcf), which represents a decrease of 18% compared to the second quarter of 2019 and a decrease of 28% compared to the third quarter of 2018.

Total company LOE for the third quarter of 2019 was $12.4 million, which was down by $1 million compared to the second quarter.  Total company LOE per Boe was $5.14, which was down 1% compared to $5.19 per Boe in the second quarter of 2019 and down 19% compared to $6.36 per Boe in the third quarter of 2018. Chaparral’s STACK LOE for the third quarter of 2019 was $7.9 million which was down as compared to $8.4 million in the second quarter.  STACK LOE per Boe for the third quarter was $3.99, which was up slightly from $3.90 in the previous quarter and down 8% from $4.34 in the third quarter of 2018. The decrease in LOE as compared to the previous year was driven primarily by the increase in production and reduced saltwater disposal costs, along with efficiency improvements in the field operations.  The increase in STACK LOE per Boe as compared to the second quarter of 2019 was driven primarily by the 10% decrease in STACK production over that same time period.

To better align Chaparral’s G&A and overhead expenses with current industry conditions, the company implemented a workforce reduction in August.  Since the beginning of 2019, the company has reduced its corporate workforce by 23% and implemented cost reduction initiatives that will result in estimated annualized G&A savings of 20% to 25%. The full impact of these reductions will be realized in 2020, with initial savings flowing through in the second half of 2019. During the third quarter of 2019 Chaparral’s net G&A expense was $7.8 million, or $3.24 per Boe, which was an increase of 7% compared to the $7.3 million in second quarter of 2019.  The increase was primarily driven by severance charges and increases in professional fees and insurance.  Adjusted for severance charges and non-cash compensation, Chaparral’s cash G&A expense for the quarter was $6.1 million or $2.52 per Boe as compared to $6.5 million or $2.52 per Boe in the second quarter of 2019.   

Liquidity and Balance Sheet
The company’s $325 million borrowing base was reaffirmed during its semi-annual fall redetermination, which closed on September 27, 2019. As of September 30, 2019, Chaparral had approximately $21.5 million in cash and cash equivalents and $110 million drawn under its $325 million borrowing base, and no significant debt maturities due until 2022.

During the third quarter the company took meaningful steps in reducing a portion of its secured debt. On August 29, Chaparral closed on the sale of the building housing its headquarters for $11.5 million. Proceeds from the sale were used to pay off the outstanding balance of the real-estate note of $8.2 million and Chaparral estimates annualized savings of approximately $1 million will be achieved.  In addition, the company was successful in eliminating $9.8 million of financing lease obligations for compressors associated with the sale of its EOR properties in late 2017.  These compressors were being subleased to the buyer of the EOR properties and therefore Chaparral did not utilize any cash to eliminate this debt obligation.

Earnings Call Information
Chaparral will hold its financial and operating results call on Tuesday, November 12, at 9 a.m. Central. Interested parties may access the call toll-free at 877-790-7727 and ask for the Chaparral Energy conference call 10 minutes prior to the start time. The conference ID number is 6995687. A live webcast of the call will also be available through the Investor section of the company’s website. For those who cannot listen to the live call, a recording will be available shortly after the call’s conclusion at chaparralenergy.com/investors.

The company has also provided an updated investor presentation for the quarter, which along with its form 10-Q, will be available at chaparralenergy.com/investors, as well as the Securities and Exchange Commission’s website at sec.gov.

Statements made in this release contain “forward-looking statements.” These statements are based on certain assumptions and expectations made by Chaparral, which reflect management’s experience, estimates and perception of historical trends, current conditions, anticipated future developments, potential for reserves and drilling, completion of current and future acquisitions and growth, benefits of acquisitions, future competitive position and other factors believed to be appropriate. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our ability to find oil and natural gas reserves that are economically recoverable, the variability in targeted geological formations, reservoir depletion, the volatility of oil and natural gas prices, the uncertain economic conditions in the United States and globally, the decline in the reserve values of our properties that may result in ceiling test write-downs, our ability to replace reserves and sustain production, our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in prospect development and property acquisitions or dispositions and in projecting future rates of production or future reserves, the timing of development expenditures and drilling of wells, the impact of natural disasters on our present and future operations, the impact of government regulation and the operating hazards attendant to the oil and natural gas business. Initial production (IP) rates are discreet data points in each well’s productive history. These rates are sometimes actual rates and sometimes extrapolated or normalized rates. As such, the rates for a particular well may decline over time and change as additional data becomes available. Peak production rates are not necessarily indicative or predictive of future production rates or economic rates of return from such wells and should not be relied upon for such purpose. The ability of the company or the relevant operator to maintain expected levels of production from a well is subject to numerous risks and uncertainties, including those referenced and discussed above. In addition, methodology the company and other industry participants utilize to calculate peak IP rates may not be consistent and, as a result, the values reported may not be directly and meaningfully comparable. Please read “Risk Factors” in our annual reports, form 10-K, form 10-Q or other public filings. We undertake no duty to update or revise these forward-looking statements. 

About Chaparral 
Chaparral Energy, Inc. (NYSE: CHAP) is an independent oil and natural gas exploration and production company headquartered in Oklahoma City. Founded in 1988, Chaparral is a pure-play operator focused in Oklahoma’s STACK/Merge Play, where it has approximately 129,000 net acres primarily in Kingfisher, Canadian and Garfield counties. The company has approximately 218,000 net surface acres in the Mid-Continent region. For more information, visit chaparralenergy.com.

Investor Contact
Scott Pittman
Chief Financial Officer
405-426-6700
investor.relations@chaparralenergy.com


Chaparral Energy, Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)

(in thousands, except share and per share data)   Three months ended   Nine months ended
Revenues:   September 30,
2019
  June 30, 2019   September 30,
2018
  September 30,
2019
  September 30,
2018
Net commodity sales   $ 51,838     $ 66,707     $ 65,519     $ 167,164     $ 181,835  
Sublease revenue   799     1,198     1,199     3,195     3,595  
Total revenues   52,637     67,905     66,718     170,359     185,430  
Lease operating   12,372     13,371     12,493     38,037     42,045  
Production taxes   2,925     3,802     4,028     9,607     9,473  
Depreciation, depletion and amortization   28,021     30,282     22,252     82,018     63,765  
Impairment of oil and gas assets   147,686     63,593         261,001      
Impairment of other assets       6,407         6,407      
General and administrative   7,809     7,315     9,021     23,437     28,718  
Cost reduction initiatives           210         1,034  
Other   269     403     402     1,075     1,633  
Total costs and expenses   $ 199,082     $ 125,173     $ 48,406     $ 421,582     $ 146,668  
Operating (loss) income   (146,445 )   (57,268 )   18,312     (251,223 )   38,762  
Non-operating income (expense):                    
Interest expense   $ (5,994 )   $ (5,571 )   $ (4,205 )   $ (16,129 )   $ (7,315 )
Loss on extinguishment of debt   (1,624 )           (1,624 )    
Derivative gains (losses)   23,601     17,734     (23,677 )   (9,681 )   (72,464 )
Gain (loss) on sale of assets   141     491     (2,024 )   631     (2,599 )
Other (expense) income, net   (84 )   (302 )   19     (372 )   123  
Net non-operating income (expense)   16,040     12,352     (29,887 )   (27,175 )   (82,255 )
Reorganization items, net   (530 )   (313 )   (493 )   (1,306 )   (2,010 )
Loss before income taxes   (130,935 )   (45,229 )   (12,068 )   (279,704 )   (45,503 )
Income tax expense                    
Net loss   $ (130,935 )   $ (45,229 )   $ (12,068 )   $ (279,704 )   $ (45,503 )
Net loss per share:                    
Basic for Class A and Class B   $ (2.86 )   $ (0.99 )   $ (0.27 )   $ (6.13 )   $ (1.01 )
Diluted for Class A and Class B   $ (2.86 )   $ (0.99 )   $ (0.27 )   $ (6.13 )   $ (1.01 )
Weighted average shares used to compute earnings per share:                    
Basic for Class A and Class B   45,716,522     45,641,797     45,333,745     45,605,798     45,272,595  
Diluted for Class A and Class B   45,716,522     45,641,797     45,333,745     45,605,798     45,272,595  


Chaparral Energy, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)

(dollars in thousands)   September 30, 2019   June 30, 2019   December 31, 2018
Assets            
Current assets:            
Cash and cash equivalents   $ 21,534     $ 32,648     $ 37,446  
Accounts receivable, net   45,145     52,686     66,087  
Inventories, net   3,915     4,142     4,059  
Prepaid expenses   2,200     1,774     2,814  
Derivative instruments   11,446     4,524     24,025  
Total current assets   84,240     95,774     134,431  
Property and equipment, net   14,265     36,265     43,096  
Right of use assets from operating leases   5,853     9,005      
Oil and natural gas properties, using the full cost method:            
Proved   1,224,620     1,107,203     915,333  
Unevaluated (excluded from the amortization base)   373,761     426,738     466,616  
Accumulated depreciation, depletion, amortization and impairment   (558,339 )   (384,401 )   (221,431 )
Total oil and natural gas properties   1,040,042     1,149,540     1,160,518  
Derivative instruments   1,111     221     2,199  
Other assets   393     411     425  
Total assets   $ 1,145,904     $ 1,291,216     $ 1,340,669  
Liabilities and stockholders’ equity            
Current liabilities:            
Accounts payable and accrued liabilities   $ 81,269     $ 73,770     $ 73,779  
Accrued payroll and benefits payable   6,970     7,807     10,976  
Accrued interest payable   5,673     12,207     13,359  
Revenue distribution payable   16,275     26,825     26,225  
Long-term debt and financing leases, classified as current   586     11,502     12,371  
Derivative instruments   70     4,802      
Total current liabilities   110,843     136,913     136,710  
Long-term debt and financing leases, less current maturities   400,518     382,295     295,100  
Derivative instruments   3,022     9,196     1,542  
Noncurrent operating lease obligations   1,239     2,075      
Deferred compensation   175     693     540  
Asset retirement obligations   22,384     22,300     22,090  
Commitments and contingencies            
Stockholders’ equity:            
Preferred stock            
Common stock   469     469     467  
Additional paid in capital   978,525     977,611     974,616  
Treasury stock   (6,107 )   (6,107 )   (4,936 )
Accumulated deficit   (365,164 )   (234,229 )   (85,460 )
Total stockholders' equity   607,723     737,744     884,687  
Total liabilities and stockholders' equity   $ 1,145,904     $ 1,291,216     $ 1,340,669  



Chaparral Energy, Inc. and subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)

    Three months ended   Nine months ended
(in thousands)   September 30,
2019
  June 30, 2019   September 30,
2018
  September 30,
2019
  September 30,
2018
Cash flows from operating activities                    
Net loss   $ (130,935 )   $ (45,229 )   $ (12,068 )   $ (279,704 )   $ (45,503 )
Adjustments to reconcile net loss to net cash provided by operating activities                    
Depreciation, depletion and amortization   $ 28,021     $ 30,282     $ 22,252     $ 82,018     $ 63,765  
Derivative losses   (23,601 )   (17,734 )   23,677     9,681     72,464  
Impairment of oil and gas assets   147,686     63,593         261,001      
Impairment of other assets       6,407         6,407      
(Gain) loss on sale of assets   (141 )   (491 )   2,024     (631 )   2,599  
Other   2,009     1,079     798     3,630     4,376  
Change in assets and liabilities                    
Accounts receivable   6,862     5,674     917     20,446     (6,743 )
Inventories   104     (167 )   1,747     144     (1,415 )
Prepaid expenses and other assets   (410 )   799     36     645     322  
Accounts payable and accrued liabilities   (6,296 )   (1,700 )   (8,162 )   (24,685 )   (12,383 )
Revenue distribution payable   (10,550 )   6,111     3,652     (9,950 )   10,895  
Deferred compensation   (318 )   927     1,324     1,534     7,890  
Net cash provided by operating activities   $ 12,431     $ 49,551     $ 36,197     $ 70,536     $ 96,267  
Cash flows from investing activities                    
Expenditures for property, plant, and equipment and oil and natural gas properties   $ (56,396 )   $ (82,390 )   $ (76,456 )   $ (202,830 )   $ (252,731 )
Proceeds from asset dispositions   13,476     857     29,744     14,333     36,335  
Proceeds (payments) from derivative instruments, net   4,883     138     (6,873 )   5,536     (16,642 )
Net cash used in investing activities   $ (38,037 )   $ (81,395 )   $ (53,585 )   $ (182,961 )   $ (233,038 )
Cash flows from financing activities                    
Proceeds from long-term debt   $ 25,000     $ 55,000     $     $ 110,000     $ 116,000  
Repayment of long-term debt   (8,339 )   (172 )   (163 )   (8,682 )   (243,554 )
Proceeds from Senior Notes                   300,000  
Principal payments under financing lease obligations   (557 )   (746 )   (674 )   (2,002 )   (2,003 )
Payment of debt issuance costs and other financing fees           (1,256 )   (20 )   (7,572 )
Debt extinguishment costs   (1,602 )           (1,602 )    
Cash settlements of stock based awards   (10 )           (10 )    
Treasury stock purchased       (708 )       (1,171 )   (4,872 )
Net cash provided by financing activities   $ 14,492     $ 53,374     $ (2,093 )   $ 96,513     $ 157,999  
Net (decrease) increase in cash, cash equivalents, and restricted cash   $ (11,114 )   $ 21,530     $ (19,481 )   $ (15,912 )   $ 21,228  
Cash, cash equivalents, and restricted cash at beginning of period   32,648     11,118     68,441     37,446     27,732  
Cash, cash equivalents, and restricted cash at end of period   $ 21,534     $ 32,648     $ 48,960     $ 21,534     $ 48,960  


Non-GAAP Financial Measures and Reconciliations

Adjusted EBITDA is a Non-GAAP financial measure and is described and reconciled to net income in the table “Adjusted EBITDA Reconciliation, NON-GAAP.”

Cash G&A is a Non-GAAP financial measure and is described and reconciled to general and administrative expense in the table “Cash G&A Reconciliation, NON-GAAP.”

Adjusted Net Income is a Non-GAAP financial measure and is described and reconciled to net income in the table “Adjusted Net Income Reconciliation, NON-GAAP.”

Adjusted EBITDA Reconciliation, Non-GAAP

    Three months ended   Nine months ended
(in thousands)   September 30,
2019
  June 30, 2019   September 30,
2018
  September 30,
2019
  September 30,
2018
Net loss   $ (130,935 )   $ (45,229 )   $ (12,068 )   $ (279,704 )   $ (45,503 )
Interest expense   5,994     5,571     4,205     16,129     7,315  
Depreciation, depletion, and amortization   28,021     30,282     22,252     82,018     63,765  
Loss on impairment of oil and gas assets   147,686     63,593         261,001      
Loss on impairment of other assets       6,407         6,407      
Non-cash change in fair value of derivative instruments   (18,718 )   (17,596 )   16,804     15,217     55,822  
Impact of derivative repricing           (1,698 )       (3,950 )
Loss on settlement of liabilities subject to compromise                   48  
Loss on extinguishment of debt   1,624             1,624      
Interest income   (2 )   (2 )   (7 )   (4 )   (9 )
Stock-based compensation expense   705     852     2,304     2,359     8,598  
(Gain) loss on sale of assets   (141 )   (491 )   2,024     (631 )   2,599  
Restructuring, reorganization and other   1,587     313     493     3,420     1,962  
Adjusted EBITDA   $ 35,821     $ 43,700     $ 34,309     $ 107,836     $ 90,647  


Cash G&A Reconciliation, Non-GAAP

    Three months ended   Nine months ended
(in thousands)   September 30,
2019
  June 30, 2019   September 30,
2018
  September 30,
2019
  September 30,
2018
General and administrative   $ 7,809     $ 7,315     $ 9,021     $ 23,437     $ 28,718  
Less:                    
Stock compensation, gross   873     1,228     3,112     3,520     11,027  
Capitalized stock compensation   (222 )   (399 )   (807 )   (1,247 )   (2,428 )
Severance costs   1,057         135     2,115     135  
Plus:                    
Cash-settled RSUs, net   (29 )   5         (2 )    
Cash G&A   $ 6,072     $ 6,491     $ 6,581     $ 19,047     $ 19,984  
                     
Production volumes (MBoe)     2,409       2,574       1,964       6,857       5,496  
                     
Cash G&A per Boe   $ 2.52     $ 2.52     $ 3.35     $ 2.78     $ 3.64  


Adjusted Net Income Reconciliation, Non-GAAP

    Three months ended   Nine months ended
(in thousands)   September 30,
2019
  June 30, 2019   September 30,
2018
  September 30,
2019
  September 30,
2018
Net loss   $ (130,935 )   $ (45,229 )   $ (12,068 )   $ (279,704 )   $ (45,503 )
Loss on impairment of oil and gas assets   147,686     63,593         261,001      
Loss on impairment of other assets       6,407         6,407      
Non-cash change in fair value of derivative instruments   (18,718 )   (17,596 )   16,804     15,217     55,822  
Impact of derivative repricing           (1,698 )       (3,950 )
Loss on extinguishment of debt   1,624             1,624      
Restructuring, reorganization and other   1,587     313     493     3,420     1,962  
Adjusted Net Income (a)   $ 1,244     $ 7,488     $ 3,531     $ 7,965     $ 8,331  
                     
Net loss per share:                    
Basic and diluted   $ (2.86 )   $ (0.99 )   $ (0.27 )   $ (6.13 )   $ (1.01 )
Basic and diluted weighted average shares (b)   45,716,522     45,641,797     45,333,745     45,605,798     45,272,595  
                     
Incremental dilutive shares added to denominator for Adjusted Net Income per share (c)   80,839     78,413     376,444     144,504     452,320  
                     
Adjusted Net Income per share:                    
Basic (a/b)   $ 0.03     $ 0.16     $ 0.08     $ 0.17     $ 0.18  
Diluted (a/(b+c))   $ 0.03     $ 0.16     $ 0.08     $ 0.17     $ 0.18  

Is your business listed correctly on America’s largest city directory network of 1,000 portals?