Extraction Oil & Gas (XOG) Tops Q4 EPS by 42c, Revenues Beat

Extraction Oil & Gas (NASDAQ: XOG) reported Q4 EPS of $0.51, $0.42 better than the analyst estimate of $0.09. Revenue for the quarter came in at $288.17 million versus the consensus estimate of $268.08 million.

• Fourth quarter average net sales volumes of 85,780 barrels of oil equivalent per day (BOE/d), including 46,584 barrels per day (Bbl/d) of crude oil and full-year 2018 average net sales volumes of 76,019 BOE/d, including 40,217 Bbl/d of crude oil;
• For the fourth quarter, Extraction reported net income of $99.9 million, or $0.52 per basic share and $0.51 per diluted share, compared to net loss of $30.6 million, or $(0.20) per basic and diluted share1, for the same period in 2017. Adjusted EBITDAX, Unhedged2 was $221.8 million for the fourth quarter, up 51% year-over-year and up 4% sequentially. Adjusted EBITDAX was $196.2 million for the fourth quarter, up 46% year-over-year and up 16% sequentially;
• Full-year 2018 net income of $121.9 million, or $0.56 per basic and diluted share, compares favorably to the Company's full-year 2017 net loss of $44.4 million. Full-year 2018 Adjusted EBITDAX, Unhedged as $790.4 million, up 98% year-over-year while Adjusted EBITDAX was $659.8 million, up 73%;
• Drilling and completion (D&C) capital expenditures for the full-year 2018 were $776.1 million and total capital expenditures were $892.5 million (3);
• Before-Tax SEC PV10 of year-end 2018 reserves of $3.25 billion, an increase of approximately 65% compared to year-end 2017 of which $1.88 billion is classified as proved developed; and
• Borrowing base under the Company’s revolving credit facility increased approximately 60% from January 2018 to $1.2 billion.

2019 Guidance Highlights

• $585 to $675 million D&C budget designed to deliver solid production growth within cash flow at $50 WTI crude oil and $2.75 NYMEX natural gas; and
• Represents a 19% reduction in D&C capital expenditures over 2018 and a further seven percent reduction from the preliminary guidance released in October 2018.

"We had a great finish to 2018 as both our crude oil and total equivalent production exceeded the high end of our guidance range while our D&C and other capital expenditures came in at the low end," said Extraction Oil & Gas Chairman and CEO Mark Erickson. "We entered this year with strong operational momentum, and our 2019 strategy is expected to generate low double-digit annual production growth within cash flow along with a higher level of growth from fourth-quarter 2018 to fourth-quarter 2019."

For earnings history and earnings-related data on Extraction Oil & Gas (XOG) click here.

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