Falcon Minerals Corporation (FLMN) Misses Q1 EPS by 1c

Falcon Minerals Corporation (NASDAQ: FLMN) reported Q1 EPS of $0.05, $0.01 worse than the analyst estimate of $0.06.

• Net production of 5,152 barrels of oil equivalent per day (“boe/d”) for the first quarter 2020 (54% oil). Represents a 28% increase when compared to the fourth quarter of 2019
• 1.43 net, 61 gross wells were turned in line during the first quarter 2020
• Four Hooks Ranch wells were turned in line on February 7, 2020
• Aggressive cost cutting beginning March 12, 2020 inclusive of approximately 50% reduction in cash compensation for CEO for full year 2020 and meaningful reductions to Board of Directors compensation expenses
• Updating full year 2020 cash G&A guidance to $7.25 million to $7.75 million. Represents an approximately 20% reduction from full year 2019
• 193 gross line of sight wells (2.41 net wells) permitted and in active development as of April 29, 2020
• 2.41 net line of sight wells includes 1.7 net wells in active development
• Averaged seven rigs running on Falcon’s Eagle Ford position in the first quarter 2020 (currently four rigs running on position)
• First quarter 2020 Net Income of $4.5 million(1), or $0.05 per Class A share
• Adjusted EBITDA of $10.1 million for the first quarter 2020(2)
• First quarter 2020 Free Cash Flow of $0.11 per share(2)
• First quarter dividend declared of $0.025 per share, approximately a 23% payout ratio, will be paid on June 8, 2020 to all shareholders of record on May 25, 2020

Daniel Herz, President and Chief Executive Officer of Falcon commented, “While we are pleased with the performance of Falcon’s business in the first quarter, as we saw both production and net wells turned in line grow materially, we are wholly focused on the future.” Mr. Herz went on to say “As we consider the global economic toll resulting from the COVID-19 pandemic, the associated impact to the United States oil markets, and the curtailments that have already been announced, we have elected to be exceedingly cautious with our use of our free cash flow. Today, Falcon declared a dividend of $0.025 per Class A share which represents approximately 23% of our free cash flow for the first quarter 2020. The Board will consider the appropriate payout ratio on a quarter by quarter basis.” Mr. Herz continued saying “Falcon’s business model was designed to weather storms and the benefits of that design are showing today. Falcon continues to have modest leverage, a world class asset base, low costs and it is well positioned to perform in the midst of the current environment and thrive on the other side of it.”

For earnings history and earnings-related data on Falcon Minerals Corporation (FLMN) click here.

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