US onshore oil and gas producer, Sundance Energy Australia (ASX: SEA) has provided further information which was requested by the ASX to clarify slide 12 and slide 15 of the presentation which was previously released by the Company on 28 March 2019. On 28 March 2019, the company had released its fourth quarter and FY 2018 earnings presentation.
On slide 12 of the presentation, the company had provided information about the leverage levels. The company believes that the leverage levels are quite reasonable as compared to its Eagle Ford and Small/Micro Cap Peers also informed that it is expected that 2019 will be a deleveraging year, with peak net debt coming in the second quarter of 2019.
Source: Company’s Presentation
On slide 15, the company had compared its initial production rates to peers. The company has informed that its initial production rates for the first 30 days (IP30) compare very favorably to 2018 IP-30 results from Eagle Ford peers as normalized for Gross Perforated Interval (GPI), a measure of lateral length.
Source: Company’s Presentation
In the presentation, the company advised about the strong fourth quarter results which successfully concluded 2018. In 2018, the company brought 23 new wells online and 25 more wells are planned for 2019 at a capital cost of US $135 to 155 million. Further, the company reported full-year net production of 10,333 barrels of oil equivalent per day (Boe/d) which exceeded the top end of guidance of the company.
At the end of FY 2018, the company had a strong balance sheet with $47.1 million of available short-term liquidity. In the fourth quarter, the reported revenue of $58.3 Million which was around 106% higher than the previous corresponding period.
In 2019 the company is planning to operate within cash flow while still providing attractive production and Adjusted EBITDAX growth. At an assumed $55 WTI oil price and $2.75 Henry Hub gas, the company is expecting to generate US $165 to 180 million in Adjusted EBITDAX for 2019. In 2019, the company is targeting sales volumes of 14,000-15,000 boe/d and in the first quarter of 2019 it is targeting 11,500 to 12,500 boe/d.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. At the time of writing, i.e., on 3rd April 2019, the stock of the company traded at a price of A$0.435, down 3.333% during the day’s trade with the market capitalisation of ~A$310.27 Mn. The counter opened the day at $0.450 and reached the day’s high of $0.455 and touched a day’s low of $0.420 with a daily volume of ~ 2,514,753. The stock has provided a year till date return of 30.43% & also posted returns of -48.28%, 30.43% & 13.92% over the past six months, three & one-month period respectively. It had a 52-week high price of $1.050 and touched 52 weeks low of $0.290, with an average volume of ~ 2,783,150.
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