☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 81-4833927 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) | |
5800 Granite Parkway, Suite 550 Plano, Texas 75024 | 75024 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A Common Stock, par value $0.01 per share | VEI | NYSE |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Item 1. | 5 | |||||
Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2021 and 2020 | 5 | |||||
Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020 | 6 | |||||
Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2021 and 2020 | 7 | |||||
Consolidated Statements of Cash Flows for the Three and Six Months Ended June 30, 2021 and 2020 | 8 | |||||
Notes to Consolidated Financial Statements | 9 | |||||
Item 2. | 27 | |||||
Item 3. | 40 | |||||
Item 4. | 41 | |||||
Item 1. | ||||||
Item 1A. | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 5. | ||||||
Item 6. | 43 | |||||
Item 1. | Financial Statements |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||
For the Three Months Ended March 31, | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenue: | 2021 | 2020 | ||||||||||||||||||||||
Natural gas sales | $ | 153,986 | $ | 92,543 | $ | 233,851 | $ | 84,116 | $ | 387,837 | $ | 176,659 | ||||||||||||
Realized loss (gain) on commodity derivatives | (760 | ) | 42,044 | |||||||||||||||||||||
Realized (loss) gain on commodity derivatives | (24,022 | ) | 45,686 | (24,782 | ) | 87,730 | ||||||||||||||||||
Unrealized loss on commodity derivatives | (35,103 | ) | (4,639 | ) | (274,279 | ) | (58,727 | ) | (309,382 | ) | (63,366 | ) | ||||||||||||
Total revenue | 118,123 | 129,948 | (64,450 | ) | 71,075 | 53,673 | 201,023 | |||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
Lease operating | 14,960 | 12,995 | 16,522 | 11,477 | 31,482 | 24,472 | ||||||||||||||||||
Gathering and treating | 20,601 | 16,382 | 28,750 | 20,387 | 49,351 | 36,769 | ||||||||||||||||||
Production and ad valorem taxes | 3,982 | 4,149 | 6,018 | 4,286 | 10,000 | 8,435 | ||||||||||||||||||
General and administrative | 2,583 | 3,331 | 4,772 | 1,349 | 7,355 | 4,680 | ||||||||||||||||||
Monitoring fee | 2,077 | 1,738 | — | 1,787 | 2,077 | 3,525 | ||||||||||||||||||
Stock-based compensation for Existing Management Owne rs | 13,665 | — | 13,665 | — | ||||||||||||||||||||
Depletion, depreciation and accretion | 97,072 | 82,324 | 125,125 | 85,610 | 222,197 | 167,934 | ||||||||||||||||||
Exploration | — | 75 | 89 | 60 | 89 | 135 | ||||||||||||||||||
Strategic | — | 562 | — | 1,551 | — | 2,113 | ||||||||||||||||||
Write-off of deferred Offering costs | — | 5,787 | ||||||||||||||||||||||
Severance | — | 326 | — | 326 | ||||||||||||||||||||
Write-off of deferred offering costs | — | — | — | 5,787 | ||||||||||||||||||||
Total operating expenses | 141,275 | 127,343 | 194,941 | 126,833 | 336,216 | 254,176 | ||||||||||||||||||
Operating i ncome | (23,152 | ) | 2,605 | |||||||||||||||||||||
Operating Income | (259,391 | ) | (55,758 | ) | (282,543 | ) | (53,153 | ) | ||||||||||||||||
Interest Expense: | ||||||||||||||||||||||||
Interest | (29,792 | ) | (29,351 | ) | (23,317 | ) | (28,713 | ) | (53,110 | ) | (58,064 | ) | ||||||||||||
Loss on extinguishment of debt | (4,883 | ) | — | (73,089 | ) | — | (77,971 | ) | — | |||||||||||||||
Total interest expense | (34,675 | ) | (29,351 | ) | (96,406 | ) | (28,713 | ) | (131,081 | ) | (58,064 | ) | ||||||||||||
Income before income taxes | (57,827 | ) | (26,746 | ) | (355,797 | ) | (84,471 | ) | (413,624 | ) | (111,217 | ) | ||||||||||||
Income tax provision | (165 | ) | (150 | ) | (4,455 | ) | (100 | ) | (4,620 | ) | (250 | ) | ||||||||||||
Net i ncome | $ | (57,992 | ) | $ | (26,896 | ) | ||||||||||||||||||
Net income | $ | (360,252 | ) | $ | (84,571 | ) | $ | (418,244 | ) | $ | (111,467 | ) | ||||||||||||
Net income attributable to Predecessor | $ | (28,939 | ) | $ | — | $ | (28,939 | ) | ||||||||||||||||
Net income attributable to noncontrolling interest | $ | (13,144 | ) | $ | (161,888 | ) | $ | (175,032 | ) | |||||||||||||||
Net income attributable to Vine Energy Inc. | $ | (15,909 | ) | $ | (198,364 | ) | $ | (214,273 | ) | |||||||||||||||
Net income per share attributable to Vine Energy Inc.: | ||||||||||||||||||||||||
Basic | $ | (3.95 | ) | $ | (4.83 | ) | $ | (9.46 | ) | |||||||||||||||
Diluted | $ | (3.95 | ) | $ | (4.83 | ) | $ | (9.46 | ) | |||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||
Basic | 4,032,450 | 41,040,721 | 22,638,796 | |||||||||||||||||||||
Diluted | 4,032,450 | 41,040,721 | 22,638,796 |
March 31, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 92,528 | $ | 15,517 | $ | 54,988 | $ | 15,517 | ||||||||
Accounts receivable | 91,161 | 77,129 | 116,304 | 77,129 | ||||||||||||
Joint interest billing receivables | 17,625 | 18,280 | 16,765 | 18,280 | ||||||||||||
Prepaid and other | 1,417 | 3,626 | 7,282 | 3,626 | ||||||||||||
Total current assets | 202,731 | 114,552 | 195,339 | 114,552 | ||||||||||||
Natural gas properties (successful efforts): | ||||||||||||||||
Proved | 3,162,572 | 2,722,419 | 3,247,470 | 2,722,419 | ||||||||||||
Unproved | 89,993 | — | 89,993 | — | ||||||||||||
Accumulated depletion | (1,475,582 | ) | (1,380,065 | ) | (1,598,983 | ) | (1,380,065 | ) | ||||||||
Total natural gas properties, net | 1,776,983 | 1,342,354 | 1,738,480 | 1,342,354 | ||||||||||||
Other property and equipment, net | 8,828 | 7,936 | 11,722 | 7,936 | ||||||||||||
Operating lease right-of-use | 15,631 | — | ||||||||||||||
Other | 12,233 | 2,921 | 11,172 | 2,921 | ||||||||||||
Total assets | $ | 2,000,775 | $ | 1,467,763 | $ | 1,972,344 | $ | 1,467,763 | ||||||||
Liabilities and Stockholders’ Equity / Partners’ Capital | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 7,908 | $ | 20,986 | $ | 6,854 | $ | 20,986 | ||||||||
Accrued liabilities | 141,468 | 90,004 | 111,929 | 90,004 | ||||||||||||
Revenue payable | 29,121 | 37,552 | 51,678 | 37,552 | ||||||||||||
Operating leases | 9,503 | — | ||||||||||||||
Derivatives | 78,529 | 19,948 | 270,853 | 19,948 | ||||||||||||
Total current liabilities | 257,026 | 168,490 | 450,817 | 168,490 | ||||||||||||
Long-term liabilities: | ||||||||||||||||
New RBL | 28,000 | — | 35,000 | �� | — | |||||||||||
Prior RBL | — | 183,569 | — | 183,569 | ||||||||||||
Second lien credit facility | 143,664 | 142,947 | 144,507 | 142,947 | ||||||||||||
Unsecured debt | 899,435 | 898,225 | 930,476 | 898,225 | ||||||||||||
Asset retirement obligations | 23,467 | 21,889 | 24,104 | 21,889 | ||||||||||||
TRA liability | 6,985 | — | 6,985 | — | ||||||||||||
Operating leases | 6,128 | — | ||||||||||||||
Derivatives | 31,447 | 38,341 | 113,402 | 38,341 | ||||||||||||
Other | — | 4,241 | — | 4,241 | ||||||||||||
Total liabilities | 1,390,024 | 1,457,702 | 1,711,419 | 1,457,702 | ||||||||||||
Commitments and contingencies | 0 | 0 | 0 | |||||||||||||
Stockholders’ Equity / Partners’ Capital | ||||||||||||||||
Partners’ capital | — | 10,061 | — | 10,061 | ||||||||||||
Class A common stock, $0.01 par value, 350,000,000 shares authorized, 41,040,721 outstanding at March 31, 2021 | 410 | — | ||||||||||||||
Class B common stock, $0.01 par value, 150,000,000 shares authorized, 34,218,535 outstanding at March 31, 2021 | 342 | — | ||||||||||||||
Class A common stock, $0.01 par value, 350,000,000 shares authorized, 41,040,721 outstanding at June 30, 2021 | 410 | — | ||||||||||||||
Class B common stock, $0.01 par value, 150,000,000 shares authorized, 34,218,535 outstanding at June 30, 2021 | 342 | — | ||||||||||||||
Additional paid-in capital | 348,406 | — | 355,321 | — | ||||||||||||
Retained earnings | (15,909 | ) | (214,273 | ) | — | |||||||||||
Total stockholders’ equity attributable to Vine Energy Inc. | 333,249 | 10,061 | 141,800 | 10,061 | ||||||||||||
Noncontrolling interest | 277,502 | — | ||||||||||||||
Non-controlling interest | 119,125 | — | ||||||||||||||
Total stockholders’ equity / partners’ capital | 610,751 | 10,061 | 260,925 | 10,061 | ||||||||||||
Total liabilities and stockholders’ equity / partners’ capital | $ | 2,000,775 | $ | 1,467,763 | $ | 1,972,344 | $ | 1,467,763 | ||||||||
Class A Common Stock | Class B Common Stock | Total stockholders’ equity | ||||||||||||||||||||||||||||||||||||||
Partners’ Capital | Shares | Amount | Shares | Amount | APIC | Retained Earnings | attributable to Vine Energy Inc. | Noncontrolling Interest | Total stockholders’ equity / partners’ capital | |||||||||||||||||||||||||||||||
Balance - December 31, 2019 | $ | 462,517 | $ | — | $ | — | $ | — | $ | (170,262 | ) | $ | 292,255 | — | $ | 292,255 | ||||||||||||||||||||||||
Net income attributable to Predecessor | — | — | — | — | — | — | (26,896 | ) | (26,896 | ) | — | (26,896 | ) | |||||||||||||||||||||||||||
Balance - March 31, 2020 | $ | 462,517 | — | — | — | — | — | $ | (197,158 | ) | $ | 265,359 | $ | — | $ | 265,359 | ||||||||||||||||||||||||
Balance - December 31, 2020 | 432,517 | — | — | — | — | — | (422,456 | ) | 10,061 | — | 10,061 | |||||||||||||||||||||||||||||
Net income attributable to Predecessor | — | — | — | — | — | — | (28,939 | ) | (28,939 | ) | — | (28,939 | ) | |||||||||||||||||||||||||||
Balance prior to Corporate Reorganization and Offering | 432,517 | — | — | — | — | — | (451,395 | ) | (18,878 | ) | — | (18,878 | ) | |||||||||||||||||||||||||||
Equity issued in Brix Companies acquisition | — | 6,740 | 67 | 16,832 | 168 | 329,770 | — | 330,005 | — | 330,005 | ||||||||||||||||||||||||||||||
Reclassification of refundable deposits | 6,706 | — | — | — | — | — | — | 6,706 | — | 6,706 | ||||||||||||||||||||||||||||||
Predecessor conversion for Class A Common Stock and Class B Common Stock | (439,223 | ) | 9,576 | 96 | 17,387 | 174 | (12,442 | ) | 451,395 | — | — | — | ||||||||||||||||||||||||||||
Issuance of Class A Common Stock in Offering, net of offering costs | — | 24,725 | 247 | — | — | 321,724 | — | 321,971 | — | 321,971 | ||||||||||||||||||||||||||||||
Initial allocation of noncontrolling interest in Vine Holdings | — | — | — | — | — | (290,646 | ) | — | (290,646 | ) | 290,646 | — | ||||||||||||||||||||||||||||
Net income attributable to shareholders | — | — | — | — | — | — | (15,909 | ) | (15,909 | ) | (13,144 | ) | (28,913 | ) | ||||||||||||||||||||||||||
Balance - March 31, 2021 | $ | — | 41,041 | $ | 410 | 34,219 | $ | 342 | $ | 348,406 | $ | (15,909 | ) | $ | 333,249 | $ | 277,502 | $ | 610,751 | |||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Total stockholders’ equity attributable to Vine Energy Inc. | Total stockholders’ equity / partners’ capital | |||||||||||||||||||||||||||||||||||||
Partners’ Capital | Shares | Amount | Shares | Amount | APIC | Retained Earnings | Non-controlling Interest | |||||||||||||||||||||||||||||||||
Balance - December 31, 2019 | $ | 462,517 | — | $ | — | — | $ | — | $ | — | $ | (170,262 | ) | $ | 292,255 | $ | — | $ | 292,255 | |||||||||||||||||||||
Net income attributable to Predecessor | — | — | — | — | — | — | (26,896 | ) | (26,896 | ) | — | (26,896 | ) | |||||||||||||||||||||||||||
Balance - March 31, 2020 | 462,517 | — | — | — | — | — | (197,158 | ) | 265,359 | — | 265,359 | |||||||||||||||||||||||||||||
Net income attributable to Predecessor | — | — | — | — | — | — | (84,571 | ) | (84,571 | ) | — | (84,571 | ) | |||||||||||||||||||||||||||
Balance – June 30, 2020 | $ | 462,517 | — | $ | — | — | $ | — | $ | — | $ | (281,729 | ) | $ | 180,788 | $ | — | $ | 180,788 | |||||||||||||||||||||
Balance - December 31, 2020 | $ | 432,517 | — | $ | — | — | $ | — | $ | — | $ | (422,456 | ) | $ | 10,061 | $ | — | $ | 10,061 | |||||||||||||||||||||
Net income attributable to Predecessor | — | — | — | — | — | — | (28,939 | ) | (28,939 | ) | — | (28,939 | ) | |||||||||||||||||||||||||||
Balance prior to Corporate Reorganization and Offering | 432,517 | — | — | — | — | — | (451,395 | ) | (18,878 | ) | — | (18,878 | ) | |||||||||||||||||||||||||||
Equity issued in Brix Companies acquisition | — | 6,740 | 67 | 16,832 | 168 | 329,770 | — | 330,005 | — | 330,005 | ||||||||||||||||||||||||||||||
Reclassification of refundable deposits | 6,706 | — | — | — | — | — | — | 6,706 | — | 6,706 | ||||||||||||||||||||||||||||||
Predecessor conversion for Class A Common Stock and Class B Common Stock | (439,223 | ) | 9,576 | 96 | 17,387 | 174 | (12,442 | ) | 451,395 | — | — | — | ||||||||||||||||||||||||||||
Issuance of Class A Common Stock in Offering, net of fees | — | 24,725 | 247 | — | — | 321,724 | — | 321,971 | — | 321,971 | ||||||||||||||||||||||||||||||
Initial allocation of non-controlling interest in Vine Holdings | — | — | — | — | — | (290,646 | ) | — | (290,646 | ) | 290,646 | — | ||||||||||||||||||||||||||||
Net income attributable to shareholders | — | — | — | — | — | — | (15,909 | ) | (15,909 | ) | (13,144 | ) | (29,053 | ) | ||||||||||||||||||||||||||
Balance - March 31, 2021 | — | 41,041 | 410 | 34,219 | 342 | 348,406 | (15,909 | ) | 333,249 | 277,502 | 610,751 | |||||||||||||||||||||||||||||
Offering costs | — | — | — | — | — | (532 | ) | — | (532 | ) | (444 | ) | (976 | ) | ||||||||||||||||||||||||||
Distribution to Existing Owners | — | — | — | — | — | — | — | — | (2,263 | ) | (2,263 | ) | ||||||||||||||||||||||||||||
Stock-based compensation for Existing Management Owners | — | — | — | — | — | 7,447 | — | 7,447 | 6,218 | 13,665 | ||||||||||||||||||||||||||||||
Net income attributable to shareholders | — | — | — | — | — | — | (198,364 | ) | (198,364 | ) | (161,888 | ) | (360,252 | ) | ||||||||||||||||||||||||||
Balance - June 30, 2021 | $ | — | 41,041 | $ | 410 | 34,219 | $ | 342 | $ | 355,321 | $ | (214,273 | ) | $ | 141,800 | $ | 119,125 | $ | 260,925 | |||||||||||||||||||||
For the Six Months Ended June 30, | ||||||||||||||||
For the Three Months Ended March 31, | 2021 | 2020 | ||||||||||||||
Operating Activities | 2021 | 2020 | ||||||||||||||
Net income | $ | (57,992 | ) | $ | (26,896 | ) | $ | (418,244 | ) | $ | (111,467 | ) | ||||
Adjustments to reconcile net income to operating cash flow: | ||||||||||||||||
Depletion, depreciation and accretion | 97,072 | 82,324 | 222,197 | 167,934 | ||||||||||||
Amortization of financing costs | 2,909 | 4,361 | ||||||||||||||
Amortization of financing costs and debt discount | 5,128 | 8,802 | ||||||||||||||
Non-cash loss on extinguishment of debt | 4,883 | 0 | 15,398 | — | ||||||||||||
Non-cash write-off of deferred Offering costs | 0 | 5,787 | ||||||||||||||
Cash redemption premiums on extinguishment of debt | 62,573 | — | ||||||||||||||
Non-cash write-off of deferred offering costs | — | 5,787 | ||||||||||||||
Non-cash stock-based compensation | 13,665 | — | ||||||||||||||
Unrealized loss on commodity derivatives | 35,103 | 4,639 | 309,382 | 63,366 | ||||||||||||
Volumetric and production adjustment to gas gathering liability | 0 | (2,567 | ) | — | (2,567 | ) | ||||||||||
Other | 33 | (6 | ) | 131 | (2 | ) | ||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Accounts receivable | 11,294 | 9,549 | 1,049 | 9,582 | ||||||||||||
Joint interest billing receivables | 10,084 | (5,041 | ) | 5,798 | (5,010 | ) | ||||||||||
Accounts payable and accrued expenses | 25,182 | 34,428 | ||||||||||||||
Accounts payable and accrued liabilities | (5,579 | ) | 5,806 | |||||||||||||
Revenue payable | (21,815 | ) | (6,967 | ) | 154 | (7,576 | ) | |||||||||
Other | (1,442 | ) | 530 | (5,632 | ) | 1,599 | ||||||||||
Operating cash flow | 105,311 | 100,141 | 206,020 | 136,254 | ||||||||||||
Investing Activities | ||||||||||||||||
Cash received in acquisition of the Brix Companies | 19,858 | — | 19,858 | — | ||||||||||||
Capital expenditures | (78,013 | ) | (86,005 | ) | (171,387 | ) | (161,903 | ) | ||||||||
Investing cash flow | (58,155 | ) | (86,005 | ) | (151,529 | ) | (161,903 | ) | ||||||||
Financing Activities | ||||||||||||||||
Repayment of Brix Credit Facility | (127,500 | ) | — | (127,500 | ) | — | ||||||||||
Proceeds from New RBL | 28,000 | — | 73,000 | — | ||||||||||||
Repayment of New RBL | (38,000 | ) | — | |||||||||||||
(Repayment) proceeds of Prior RBL | (190,000 | ) | 45,000 | (190,000 | ) | 75,000 | ||||||||||
Proceeds from 6.75% Notes | 950,000 | — | ||||||||||||||
Repayment of unsecured notes, including redemption premiums | (972,573 | ) | — | |||||||||||||
Proceeds from issuance of Class A common stock, net of fees | 327,422 | — | 320,995 | — | ||||||||||||
Deferred financing costs | (8,067 | ) | (3,848 | ) | (28,679 | ) | (4,220 | ) | ||||||||
Distribution for tax to Existing Owners | (2,263 | ) | — | |||||||||||||
Financing cash flow | 29,855 | 41,152 | (15,020 | ) | 70,780 | |||||||||||
Net increase in cash and cash equivalents | 77,011 | 55,288 | 39,471 | 45,131 | ||||||||||||
Cash and cash equivalents at beginning of period | 15,517 | 18,286 | 15,517 | 18,286 | ||||||||||||
Cash and cash equivalents at end of period | $ | 92,528 | $ | 73,574 | $ | 54,988 | $ | 63,417 | ||||||||
Non-cash investing and financing transactions: | ||||||||||||||||
Accrued capital expenditures | $ | 39,127 | $ | 21,734 | $ | 34,730 | $ | 9,590 | ||||||||
Accrued financing costs | $ | 702 | $ | — | ||||||||||||
Accrued Offering costs | $ | 5,451 | $ | — | ||||||||||||
Acquisition of the Brix Companies | $ | 336,990 | $ | — | $ | 336,990 | $ | — |
Preliminary Acquisition Consideration | ||||||||
( Amounts in thousands, except share and per share amounts ) | Preliminary Acquisition Consideration | |||||||
Vine Units issued for acquisition of the Brix Companies | 23,571,754 | 23,571,754 | ||||||
Offering price of Class A Common Stock | $ | 14.00 | $ | 14.00 | ||||
Total equity issued in acquisition | $ | 330,005 | $ | 330,005 | ||||
Contingent consideration (1) | 6,985 | 6,985 | ||||||
Total acquisition consideration | $ | 336,990 | $ | 336,990 | ||||
(1) | Represents the preliminary estimate of fair value of contingent consideration related to the TRA liability that will be payable by the Company to the former owners of the Brix Companies. |
(Amounts in thousands) | ||||||||
Assets Acquired: | ||||||||
Cash and cash equivalents | $ | 19,858 | $ | 19,858 | ||||
Accounts receivable | 30,472 | 30,472 | ||||||
Joint interest billing receivables | 4,283 | 4,283 | ||||||
Proved properties | 361,439 | 361,439 | ||||||
Unproved properties | 89,993 | 89,993 | ||||||
Total assets to be acquired | $ | 506,045 | $ | 506,045 | ||||
Liabilities Assumed: | ||||||||
Accounts payable | $ | 2,123 | $ | 2,123 | ||||
Accrued liabilities | 5,847 | 5,847 | ||||||
Revenue payable | 13,384 | 13,384 | ||||||
Derivatives | 16,583 | 16,583 | ||||||
Brix Credit Facility (1) | 127,500 | 127,500 | ||||||
Asset retirement obligations | 984 | 984 | ||||||
Refundable deposits | 2,634 | 2,634 | ||||||
Total liabilities to be assumed | 169,055 | 169,055 | ||||||
Net assets to be acquired | $ | 336,990 | $ | 336,990 | ||||
(1) | Borrowings under the Brix Credit Facility were determined to approximate fair value, and were subsequently repaid in full, including a $2.5 million call premium, and terminated by the Company on March 22, 2021, using a portion of the net proceeds from the Offering. |
For the Three Months Ended | ||||||||
March 31, | ||||||||
2021 | 2020 | |||||||
Total revenue | $ | 160,630 | $ | 181,164 | ||||
Net i ncome attributable to Vine Energy Inc. | $ | (18,600 | ) | $ | 2,608 |
For the Three Months Ended June 30, 2020 | For the Six Months Ended June 30, | |||||||||||
2021 | 2020 | |||||||||||
Total revenue | $ | 97,660 | $ | 96,180 | $ | 278,824 | ||||||
Net income attributable to Vine Energy, Inc. | $ | (42,969 | ) | $ | (216,964 | ) | $ | (40,361 | ) |
March 31, 2021 | December 31, 2020 | |||||||||||||||
June 30, 2021 | December 31, 2020 | |||||||||||||||
Capital expenditures | $ | 39,273 | $ | 20,808 | $ | 27,489 | $ | 20,808 | ||||||||
Operating expenses | 38,259 | 30,554 | 37,769 | 30,547 | ||||||||||||
Royalty owner suspense | 9,412 | 7,891 | 10,750 | 7,891 | ||||||||||||
Compensation-related | 5,381 | 9,432 | 6,986 | 9,432 | ||||||||||||
Interest expense | 38,320 | 17,848 | 14,868 | 17,848 | ||||||||||||
Offering and financing costs | 6,153 | 1,875 | ||||||||||||||
IPO and financing costs | — | 1,875 | ||||||||||||||
Settled derivatives | 11,616 | 1,603 | ||||||||||||||
Other | 4,670 | 1,596 | 2,451 | — | ||||||||||||
Accrued liabilities | $ | 141,468 | $ | 90,004 | ||||||||||||
Accrued expenses | $ | 111,929 | $ | 90,004 | ||||||||||||
March 31, 2021 | December 31, 2020 | |||||||
Face amount: | ||||||||
New RBL | $ | 28,000 | $ | — | ||||
Prior RBL | — | 190,000 | ||||||
Second Lien Term Loan | 150,000 | 150,000 | ||||||
8.75% Senior Notes | 530,000 | 530,000 | ||||||
9.75% Senior Notes | 380,000 | 380,000 | ||||||
Total face amount | 1,088,000 | 1,250,000 | ||||||
Deferred financing costs and discount: | ||||||||
Prior RBL | — | (6,431 | ) | |||||
Second Lien Term Loan | (6,336 | ) | (7,053 | ) | ||||
8.75% Senior Notes | (6,992 | ) | (7,821 | ) | ||||
9.75% Senior Notes | (3,573 | ) | (3,954 | ) | ||||
Total deferred finance costs | (16,901 | ) | (25,259 | ) | ||||
Total debt | 1,071,099 | 1,224,741 | ||||||
Less: short-term portion | 0— | 0— | ||||||
Total long-term debt | $ | 1,071,099 | $ | 1,224,741 | ||||
June 30, 2021 | December 31, 2020 | |||||||
Face amount: | ||||||||
New RBL | $ | 35,000 | $ | — | ||||
Prior RBL | — | 190,000 | ||||||
Second Lien Term Loan | 150,000 | 150,000 | ||||||
6.75% Senior Notes | 950,000 | — | ||||||
8.75% Senior Notes | — | 530,000 | ||||||
9.75% Senior Notes | — | 380,000 | ||||||
Total face amount | 1,135,000 | 1,250,000 | ||||||
Deferred financing costs and discount: | ||||||||
Prior RBL | — | (6,431 | ) | |||||
Second Lien Term Loan | (5,493 | ) | (7,053 | ) | ||||
6.75% Senior Notes | (19,524 | ) | — | |||||
8.75% Senior Notes | — | (7,821 | ) | |||||
9.75% Senior Notes | — | (3,954 | ) | |||||
Total deferred financing costs | (25,017 | ) | (25,259 | ) | ||||
Total debt | 1,109,983 | 1,224,741 | ||||||
Less: short-term portion | 0— | 0— | ||||||
Total long-term debt | $ | 1,109,983 | $ | 1,224,741 | ||||
Balance Sheet Classification | Gross Amounts | Netting Adjustment | Net Amounts Presented on the Balance Sheet | Balance Sheet Classification | Fair Value | Netting Adjustment | Net Fair Value Presented on the Balance Sheet | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||
Commodity Derivatives | Current assets | $ | 1,311 | $ | (1,311 | ) | $ | — | Current assets | $ | 6,211 | $ | (6,211 | ) | $ | — | ||||||||||||||
Commodity Derivatives | Noncurrent assets | 6,088 | (6,088 | ) | — | Noncurrent assets | $ | 171 | $ | (171 | ) | $ | — | |||||||||||||||||
Total assets | $ | 7,399 | $ | (7,399 | ) | $ | — | |||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Commodity Derivatives | Current liabilities | $ | 79,840 | $ | (1,311 | ) | $ | 78,529 | Current liabilities | $ | 277,064 | $ | (6,211 | ) | $ | 270,853 | ||||||||||||||
Commodity Derivatives | Noncurrent liabilities | 37,535 | (6,088 | ) | 31,447 | Noncurrent liabilities | $ | 113,573 | $ | (171 | ) | $ | 113,402 | |||||||||||||||||
Total liabilities | $ | 117,375 | $ | (7,399 | ) | $ | 109,976 | |||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||
Commodity Derivatives | Current assets | $ | 9,095 | $ | (9,095 | ) | $ | — | Current assets | $ | 9,095 | $ | (9,095 | ) | $ | — | ||||||||||||||
Commodity Derivatives | Noncurrent assets | 2,742 | (2,742 | ) | — | Noncurrent assets | $ | 2,742 | $ | (2,742 | ) | $ | — | |||||||||||||||||
Total assets | $ | 11,837 | $ | (11,837 | ) | $ | — | |||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Commodity Derivatives | Current liabilities | $ | 29,043 | $ | (9,095 | ) | $ | 19,948 | Current liabilities | $ | 29,043 | $ | (9,095 | ) | $ | 19,948 | ||||||||||||||
Commodity Derivatives | Noncurrent liabilities | 41,083 | (2,742 | ) | 38,341 | Noncurrent liabilities | $ | 41,083 | $ | (2,742 | ) | $ | 38,341 | |||||||||||||||||
Total liabilities | $ | 70,126 | $ | (11,837 | ) | $ | 58,289 | |||||||||||||||||||||||
Natural Gas Swaps | Natural Gas Swaps | Natural Gas Swaps | ||||||||||||||
Production Year | Average Daily Volumes (MMBTU) | Weighted Average Swap Price ($ / MMBtu) | Natural Gas Volumes (MMBtud) | Weighted Average Swap Price ($ / MMBtu) | ||||||||||||
2021 (April - December) | 842,398 | $ | 2.53 | |||||||||||||
2021 (July - December) | 847,110 | $ | 2.57 | |||||||||||||
2022 | 556,489 | $ | 2.54 | 556,489 | $ | 2.54 | ||||||||||
2023 | 189,788 | $ | 2.48 | 189,788 | $ | 2.48 | ||||||||||
2024 | 100,561 | $ | 2.53 | 100,561 | $ | 2.53 | ||||||||||
2025 | 33,945 | $ | 2.58 | 33,945 | $ | 2.58 | ||||||||||
Sold Natural Gas Calls | Sold Natural Gas Calls | |||||||||||||||
Production Year | Natural Gas Volumes (MMBtud) | Weighted Average Call Price ($ / MMBtu) | ||||||||||||||
2021 (July - December) | (15,000 | ) | $ | 2.85 | ||||||||||||
2022 | (2,082 | ) | $ | 3.02 | ||||||||||||
2023 | (44,384 | ) | $ | 3.26 | ||||||||||||
Sold Natural Gas Puts | Sold Natural Gas Puts | |||||||||||||||
Production Year | Natural Gas Volumes (MMBtud) | Weighted Average Put Price ($ / MMBtu) | ||||||||||||||
2021 (July - December) | 15,000 | $ | 2.55 | |||||||||||||
2022 | 2,082 | $ | 2.80 | |||||||||||||
Basis swaps | Basis swaps | |||||||||||||||
Production Year | Natural Gas Volumes (MMBtud) | Weighted Average Basis Swap ($ / MMBtu) | ||||||||||||||
2022 | 62,500 | $ | (0.19 | ) |
Balance as of January 1, 2021 | $ | 9,566 | ||
Liabilities assumed in exchange for new right-of-use (1) | 7,811 | |||
Contract modifications (2) | 5,853 | |||
Dispositions (3) | (1,626 | ) | ||
Liabilities settled | (6,227 | ) | ||
Accretion of discount (4) | 254 | |||
Balance as of June 30, 2021 | $ | 15,631 | ||
(1) | Represents non-cash leasing activity. |
(2) | Represents non-cash changes in lease liabilities due to modifications of original contract terms. |
(3) | Represents non-cash termination of a lease liability. |
(4) | Represents imputed interest on discounted future cash payments. Combined with liabilities settled, it represents our operating lease cost for the six months ended June 30, 2021. |
2021 (July - December) | $ | 9,897 | ||
2022 | 5,836 | |||
2023 | 381 | |||
2024 and thereafter | 0 | |||
Total operating lease payments | 16,114 | |||
Discount | (483 | ) | ||
Total operating lease obligations | $ | 15,631 | ||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
Operating lease cost (1) | $ | 3,211 | $ | 5,973 | ||||
Short-term lease cost (2) | 1,683 | 3,600 | ||||||
Variable lease cost (3) | 2,470 | 3,534 | ||||||
Total operating lease cost | $ | 7,364 | $ | 13,107 | ||||
(1) | Operating lease cost represents the reduction of the operating lease liability as the term is settled and the discount is accreted. |
(2) | Short-term lease cost are generally associated with drilling rigs with initial terms less than 12 months that are capitalized to natural gas properties or lease operating assets that are included in lease operating expense. |
(3) | Variable lease cost is primarily comprised of the service component of drilling rig commitments and maintenance on our amine and office facilities above the minimum required payments. Both the minimum required payments and the service component of the drilling rig commitments are capitalized as additions to natural gas properties. |
Item 2. | Management’s Discussions and Analysis of Financial Condition and Results of Operations |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30 | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
($ / MMBtu) | ($ / MMBtu) | ($ / MMBtu) | ||||||||||||||||||||||
NYMEX Henry Hub High | $ | 2.85 | $ | 2.16 | $ | 2.98 | $ | 1.79 | $ | 2.98 | $ | 2.16 | ||||||||||||
NYMEX Henry Hub Low | $ | 2.47 | $ | 1.82 | $ | 2.59 | $ | 1.63 | $ | 2.47 | $ | 1.63 | ||||||||||||
Differential to Average NYMEX Henry Hub | $ | (0.11 | ) | $ | (0.18 | ) | $ | (0.20 | ) | $ | (0.17 | ) | $ | (0.15 | ) | $ | (0.17 | ) |
(1) | Represents monthly Henry Hub settlement price. |
(2) | Our differential is calculated by comparing the average NYMEX Henry Hub price to our volume weighted average realized price per MMBtu. |
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
(in thousands, except per Mcf) | (in thousands, except per Mcf) | (in thousands, except per Mcf) | ||||||||||||||||||||||||||||||||||||||||||||||
Production: | ||||||||||||||||||||||||||||||||||||||||||||||||
Total (MMcf) | 65,138 | 56,646 | 95,561 | 59,441 | 160,699 | 116,087 | ||||||||||||||||||||||||||||||||||||||||||
Average Daily (MMcfd) | 724 | 622 | 1,050 | 653 | 888 | 638 | ||||||||||||||||||||||||||||||||||||||||||
Revenue: | Per Mcf | Per Mcf | Per Mcf | Per Mcf | Per Mcf | Per Mcf | ||||||||||||||||||||||||||||||||||||||||||
Natural gas sales | $ | 153,986 | $ | 2.36 | $ | 92,543 | $ | 1.63 | $ | 233,851 | $ | 2.45 | $ | 84,116 | $ | 1.42 | $ | 387,837 | $ | 2.41 | $ | 176,659 | $ | 1.52 | ||||||||||||||||||||||||
Realized gain (loss) on commodity derivatives | (760 | ) | (0.01 | ) | 42,044 | 0.74 | ||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on commodity derivatives | (35,103 | ) | (0.54 | ) | (4,639 | ) | (0.08 | ) | ||||||||||||||||||||||||||||||||||||||||
Realized gain on commodity derivatives | (24,022 | ) | (0.25 | ) | 45,686 | 0.77 | (24,782 | ) | (0.15 | ) | 87,730 | 0.76 | ||||||||||||||||||||||||||||||||||||
Unrealized (loss) gain on commodity derivatives | (274,279 | ) | (2.87 | ) | (58,727 | ) | (0.99 | ) | (309,382 | ) | (1.93 | ) | (63,366 | ) | (0.55 | ) | ||||||||||||||||||||||||||||||||
Total revenue | 118,123 | 1.81 | 129,948 | 2.29 | (64,450 | ) | (0.67 | ) | 71,075 | 1.20 | 53,673 | 0.33 | 201,023 | 1.73 | ||||||||||||||||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||
Lease operating | 14,960 | 0.23 | 12,995 | 0.23 | 16,522 | 0.17 | 11,477 | 0.19 | 31,482 | 0.20 | 24,472 | 0.21 | ||||||||||||||||||||||||||||||||||||
Gathering and treating | 20,601 | 0.32 | 16,382 | 0.29 | 28,750 | 0.30 | 20,387 | 0.34 | 49,351 | 0.31 | 36,769 | 0.32 | ||||||||||||||||||||||||||||||||||||
Production and ad valorem taxes | 3,982 | 0.06 | 4,149 | 0.07 | 6,018 | 0.06 | 4,286 | 0.07 | 10,000 | 0.06 | 8,435 | 0.07 | ||||||||||||||||||||||||||||||||||||
General and administrative | 2,583 | 0.04 | 3,331 | 0.06 | 4,772 | 0.05 | 1,349 | 0.02 | 7,355 | 0.05 | 4,680 | 0.04 | ||||||||||||||||||||||||||||||||||||
Monitoring fee | 2,077 | 0.03 | 1,738 | 0.03 | — | — | 1,787 | 0.03 | 2,077 | 0.01 | 3,525 | 0.03 | ||||||||||||||||||||||||||||||||||||
Stock-based compensation related to Offering | 13,665 | 0.14 | — | — | 13,665 | 0.09 | — | — | ||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and accretion | 97,072 | 1.49 | 82,324 | 1.45 | 125,125 | 1.31 | 85,610 | 1.44 | 222,197 | 1.38 | 167,934 | 1.45 | ||||||||||||||||||||||||||||||||||||
Exploration | — | — | 75 | 0.00 | 89 | 0.00 | 60 | 0.00 | 89 | 0.00 | 135 | 0.00 | ||||||||||||||||||||||||||||||||||||
Strategic | — | — | 562 | 0.01 | — | — | 1,551 | 0.03 | — | — | 2,113 | 0.02 | ||||||||||||||||||||||||||||||||||||
Write-off of deferred Offering costs | — | — | 5,787 | 0.10 | ||||||||||||||||||||||||||||||||||||||||||||
Severance | — | — | 326 | 0.01 | — | — | 326 | 0.00 | ||||||||||||||||||||||||||||||||||||||||
Write-off of deferred offering costs | — | — | — | — | — | — | 5,787 | 0.05 | ||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 141,275 | $ | 2.17 | 127,343 | $ | 2.25 | 194,941 | 2.04 | 126,833 | 2.13 | 336,216 | 2.09 | 254,176 | 2.19 | ||||||||||||||||||||||||||||||||||
Operating income | (23,152 | ) | 2,605 | (259,391 | ) | (55,758 | ) | (282,543 | ) | (53,153 | ) | |||||||||||||||||||||||||||||||||||||
Interest expense | (34,675 | ) | (29,351 | ) | (96,406 | ) | (28,713 | ) | (131,081 | ) | (58,064 | ) | ||||||||||||||||||||||||||||||||||||
Income tax provision | (165 | ) | (150 | ) | (4,455 | ) | (100 | ) | (4,620 | ) | (250 | ) | ||||||||||||||||||||||||||||||||||||
Total other expenses | (34,840 | ) | (29,501 | ) | (100,861 | ) | (28,813 | ) | (135,701 | ) | (58,314 | ) | ||||||||||||||||||||||||||||||||||||
Net income | $ | (57,992 | ) | $ | (26,896 | ) | $ | (360,252 | ) | $ | (84,571 | ) | $ | (418,244 | ) | $ | (111,467 | ) | ||||||||||||||||||||||||||||||
Interest expense | 34,675 | 29,351 | 96,406 | 28,713 | 131,081 | 58,064 | ||||||||||||||||||||||||||||||||||||||||||
Income tax provision | 165 | 150 | 4,455 | 100 | 4,620 | 250 | ||||||||||||||||||||||||||||||||||||||||||
Depreciation, depletion and accretion | 97,072 | 82,324 | 125,125 | 85,610 | 222,197 | 167,934 | ||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on commodity derivatives | 35,103 | 4,639 | 274,279 | 58,727 | 309,382 | 63,366 | ||||||||||||||||||||||||||||||||||||||||||
Exploration | — | 75 | 89 | 60 | 89 | 135 | ||||||||||||||||||||||||||||||||||||||||||
Non-cash G&A | (1 | ) | (6 | ) | 98 | 4 | 97 | (2 | ) | |||||||||||||||||||||||||||||||||||||||
Non-cash stock compensation to Existing Management Owners | 13,665 | — | 13,665 | — | ||||||||||||||||||||||||||||||||||||||||||||
Strategic | — | 562 | — | 1,551 | — | 2,113 | ||||||||||||||||||||||||||||||||||||||||||
Non-cash write-off of deferred Offering costs | — | 5,787 | ||||||||||||||||||||||||||||||||||||||||||||||
Severance | — | 326 | — | 326 | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash write-off of deferred IPO costs | — | — | — | 5,787 | ||||||||||||||||||||||||||||||||||||||||||||
Non-cash volumetric and production adjustment to gas gathering liability | — | (2,567 | ) | — | — | — | (2,567 | ) | ||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDAX | $ | 109,022 | $ | 93,419 | $ | 153,865 | $ | 90,520 | $ | 262,887 | $ | 183,939 | ||||||||||||||||||||||||||||||||||||
Brix Companies | ||||
Revenue: | March 18 - 31, 2021 | |||
(in thousands) | ||||
Natural gas sales | $ | 9,623 | ||
Realized loss on commodity derivatives | (1,002 | ) | ||
Unrealized loss on commodity derivatives | (6,167 | ) | ||
Total revenue | 2,454 | |||
Operating Expenses: | ||||
Lease operating | 649 | |||
Gathering and treating | 1,160 | |||
Production and ad valorem taxes | 152 | |||
General and administrative | 287 | |||
Depletion, depreciation and accretion | 5,519 | |||
Total operating expenses | 7,767 | |||
Operating Income | $ | (5,313 | ) | |
2020 | $ | 134,587 | ||
Volume increase | 13,874 | |||
Price increase | 47,569 | |||
Realized derivative decrease | (42,804 | ) | ||
2021 | $ | 153,226 | ||
Three months ended June 30, 2020 | $ | 129,802 | ||
Volume | 51,114 | |||
Price | 98,621 | |||
Realized derivative | (69,708 | ) | ||
Three months ended June 30, 2021 | $ | 209,829 | ||
Six months ended June 30, 2020 | $ | 264,389 | ||
Volume | 67,890 | |||
Price | 143,288 | |||
Realized derivative | (112,512 | ) | ||
Six months ended June 30, 2021 | $ | 363,055 | ||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | (in thousands) | Per Mcf | (in thousands) | Per Mcf | (in thousands) | Per Mcf | (in thousands) | Per Mcf | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Per Mcf | (in thousands) | Per Mcf | |||||||||||||||||||||||||||||||||||||||||||||
Gathering - Cash | $ | 20,334 | $ | 0.31 | $ | 18,728 | $ | 0.33 | $ | 27,674 | $ | 0.29 | $ | 20,195 | $ | 0.34 | $ | 48,009 | $ | 0.30 | $ | 38,923 | $ | 0.34 | ||||||||||||||||||||||||
Gathering - noncash | — | — | (2,567 | ) | (0.05 | ) | ||||||||||||||||||||||||||||||||||||||||||
Gathering - Non-Cash | — | — | — | — | — | — | (2,567 | ) | (0.02 | ) | ||||||||||||||||||||||||||||||||||||||
Other | 267 | 0.00 | 221 | 0.00 | 1,076 | 0.01 | 192 | 0.00 | 1,342 | 0.01 | 413 | — | ||||||||||||||||||||||||||||||||||||
Total | $ | 20,601 | $ | 0.32 | $ | 16,382 | $ | 0.29 | $ | 28,750 | $ | 0.30 | $ | 20,387 | $ | 0.34 | $ | 49,351 | $ | 0.31 | $ | 36,769 | $ | 0.32 | ||||||||||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | (in thousands) | Per Mcf | (in thousands) | Per Mcf | (in thousands) | Per Mcf | (in thousands) | Per Mcf | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Per Mcf | (in thousands) | Per Mcf | |||||||||||||||||||||||||||||||||||||||||||||
Production taxes | $ | 2,365 | $ | 0.03 | $ | 2,733 | $ | 0.04 | $ | 4,211 | $ | 0.04 | $ | 2,871 | $ | 0.05 | $ | 6,576 | $ | 0.04 | $ | 5,604 | $ | 0.05 | ||||||||||||||||||||||||
Ad valorem taxes | 1,617 | 0.03 | 1,416 | 0.02 | 1,807 | 0.02 | 1,415 | 0.02 | 3,424 | 0.02 | 2,831 | 0.02 | ||||||||||||||||||||||||||||||||||||
Total | $ | 3,982 | $ | 0.06 | $ | 4,149 | $ | 0.07 | $ | 6,018 | $ | 0.06 | $ | 4,286 | $ | 0.07 | $ | 10,000 | $ | 0.06 | $ | 8,435 | $ | 0.07 | ||||||||||||||||||||||||
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||
Wages and benefits | $ | 6,223 | $ | 7,062 | $ | 7,081 | $ | 5,947 | $ | 13,304 | $ | 13,009 | ||||||||||||
Professional services | 1,091 | 1,029 | 1,256 | 660 | 2,347 | 1,689 | ||||||||||||||||||
Licenses, fees and other | 1,742 | 2,065 | 1,517 | 1,699 | 3,259 | 3,764 | ||||||||||||||||||
Total gross G&A expense | 9,056 | 10,156 | 9,854 | 8,306 | 18,910 | 18,462 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Allocations to affiliates | (1,748 | ) | (2,269 | ) | — | (2,248 | ) | (1,748 | ) | (4,517 | ) | |||||||||||||
Recoveries | (4,725 | ) | (4,556 | ) | (5,082 | ) | (4,709 | ) | (9,807 | ) | (9,265 | ) | ||||||||||||
Net G&A expense | $ | 2,583 | $ | 3,331 | $ | 4,772 | $ | 1,349 | $ | 7,355 | $ | 4,680 | ||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
(in thousands) | Per Mcf | (in thousands) | Per Mcf | (in thousands) | Per Mcf | (in | Per Mcf | |||||||||||||||||||||||||
Depletion | $ | 123,402 | $ | 1.29 | $ | 84,008 | $ | 1.41 | $ | 218,918 | $ | 1.36 | $ | 164,067 | $ | 1.41 | ||||||||||||||||
Depreciation | 1,329 | 0.01 | 1,269 | 0.02 | 2,524 | 0.02 | 2,689 | 0.02 | ||||||||||||||||||||||||
Accretion | 394 | 0.00 | 333 | 0.01 | 755 | 0.00 | 1,178 | 0.01 | ||||||||||||||||||||||||
Total | $ | 125,125 | $ | 1.31 | $ | 85,610 | $ | 1.44 | $ | 222,197 | $ | 1.38 | $ | 167,934 | $ | 1.45 | ||||||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||
2021 | 2020 | |||||||||||||||
(in thousands) | Per Mcf | (in thousands) | Per Mcf | |||||||||||||
Depletion | $ | 95,516 | $ | 1.47 | $ | 80,059 | $ | 1.41 | ||||||||
Depreciation | 1,195 | 0.02 | 1,420 | 0.03 | ||||||||||||
Accretion | 361 | 0.01 | 845 | 0.01 | ||||||||||||
Total | $ | 97,072 | $ | 1.49 | $ | 82,324 | $ | 1.45 | ||||||||
For the Three Months Ended March 31, | For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Cash interest: | ||||||||||||||||||||||||
Interest costs on debt outstanding | $ | 26,171 | $ | 24,616 | $ | 20,836 | $ | 23,876 | $ | 47,007 | $ | 48,492 | ||||||||||||
Cash premiums on extinguishment of debt | 62,573 | — | 62,573 | — | ||||||||||||||||||||
Letter of credit and other fees | 599 | 374 | 375 | 396 | 974 | 770 | ||||||||||||||||||
Total cash interest | 26,770 | 24,990 | 83,784 | 24,272 | 110,554 | 49,262 | ||||||||||||||||||
Non-cash interest: | ||||||||||||||||||||||||
Non-cash interest on debt outstanding | 3,022 | 4,361 | 2,106 | 4,441 | 5,129 | 8,802 | ||||||||||||||||||
Non-cash loss on extinguishment of debt | 4,883 | — | 10,516 | — | 15,398 | — | ||||||||||||||||||
Total non-cash interest | 7,905 | 4,361 | 12,622 | 4,441 | 20,527 | 8,802 | ||||||||||||||||||
Total interest expense | $ | 34,675 | $ | 29,351 | $ | 96,406 | $ | 28,713 | $ | 131,081 | $ | 58,064 | ||||||||||||
For the Three Months Ended March 31, | ||||||||||||||||
2021 | 2020 | For the Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||||
Operating cash flow | 105,311 | $ | 100,141 | 206,020 | $ | 136,254 | ||||||||||
Investing cash flow | (58,155 | ) | (86,005 | ) | (151,529 | ) | (161,903 | ) | ||||||||
Financing cash flow | 29,855 | 41,152 | (15,020 | ) | 70,780 | |||||||||||
Net change in cash | $ | 77,011 | $ | 55,288 | $ | 39,471 | $ | 45,131 | ||||||||
Natural Gas Swaps | Natural Gas Swaps | Natural Gas Swaps | ||||||||||||||
Period | Natural Gas Volume (MMBtud) | Weighted Average Swap Price ($ / MMBtu) | Natural Gas Volumes (MMBtud) | Weighted Average Swap Price ($ / MMBtu) | ||||||||||||
2021 | ||||||||||||||||
Second Quarter | 832,871 | $ | 2.52 | |||||||||||||
Third Quarter | 845,333 | $ | 2.53 | 845,333 | $ | 2.53 | ||||||||||
Fourth Quarter | 848,887 | $ | 2.55 | 848,887 | $ | 2.62 | ||||||||||
2022 | ||||||||||||||||
First Quarter | 866,797 | $ | 2.56 | 866,797 | $ | 2.56 | ||||||||||
Second Quarter | 348,859 | $ | 2.54 | 348,859 | $ | 2.54 | ||||||||||
Third Quarter | 409,853 | $ | 2.54 | 409,853 | $ | 2.54 | ||||||||||
Fourth Quarter | 604,935 | $ | 2.53 | 604,935 | $ | 2.53 | ||||||||||
2023 | ||||||||||||||||
First Quarter | 528,652 | $ | 2.48 | 528,652 | $ | 2.48 | ||||||||||
Second Quarter | 65,470 | $ | 2.45 | 65,470 | $ | 2.45 | ||||||||||
Third Quarter | 45,954 | $ | 2.44 | 45,954 | $ | 2.44 | ||||||||||
Fourth Quarter | 125,092 | $ | 2.50 | 125,092 | $ | 2.50 | ||||||||||
2024 | ||||||||||||||||
First Quarter | 313,512 | $ | 2.53 | 313,512 | $ | 2.53 | ||||||||||
Second Quarter | 11,957 | $ | 2.31 | 11,957 | $ | 2.31 | ||||||||||
Third Quarter | 7,366 | $ | 2.31 | 7,366 | $ | 2.31 | ||||||||||
Fourth Quarter | 70,761 | $ | 2.58 | 70,761 | $ | 2.58 | ||||||||||
2025 | ||||||||||||||||
First Quarter | 137,667 | $ | 2.58 | 137,667 | $ | 2.58 |
Sold Natural Gas Calls | ||||||||
Production Year | Natural Gas Volumes (MMBtud) | Weighted Average Call Price ($ / MMBtu) | ||||||
2021 | ||||||||
Third Quarter | (30,000 | ) | $ | 2.85 | ||||
2022 | ||||||||
Second Quarter | (8,352 | ) | $ | 3.02 | ||||
2023 | ||||||||
First Quarter | (180,000 | ) | $ | 3.26 | ||||
Sold Natural Gas Puts | ||||||||
Production Year | Natural Gas Volumes (MMBtud) | Weighted Average Put Price ($ / MMBtu) | ||||||
2021 | ||||||||
Third Quarter | 30,000 | $ | 2.55 | |||||
2022 | ||||||||
Second Quarter | 8,352 | $ | 2.80 | |||||
Basis swaps | ||||||||
Production Year | Natural Gas Volumes (MMBtud) | Weighted Average Basis Swap ($ / MMBtu) | ||||||
2022 | ||||||||
First Quarter | 62,500 | $ | (0.19 | ) | ||||
Second Quarter | 62,500 | $ | (0.19 | ) | ||||
Third Quarter | 62,500 | $ | (0.19 | ) | ||||
Fourth Quarter | 62,500 | $ | (0.19 | ) |
Highest Priority | Lowest Priority | |||||
New RBL | Second Lien Term Loan | 6.75% (Unsecured) | ||||
Face amount | $750 million | $150 million | $950 million | |||
Amount outstanding | $ | $150 million | $950 million | |||
Scheduled maturity date | December 2024, or 91 days prior to the maturity of the Second Lien Term Loan, to the extent any of such indebtedness remains outstanding | December 2025 | April 2029 | |||
Interest rate | LIBOR + 3.0 - 4.0% | LIBOR + 8.75% | 6.75% | |||
Base interest rate options | ABR and LIBOR (with a floor of 0.50%) + spread | ABR and LIBOR (with a floor of 0.75%) + spread | N/A | |||
Financial maintenance covenants | – Maximum consolidated total net leverage ratio of 3.25x effective April 2021 | – Maximum consolidated total net leverage ratio of 4.0x decreasing to 3.5x effective April 2021 – Minimum liquidity of $40 million tested quarterly – Minimum hedging requirements | N/A | |||
– Maximum Current Ratio of 1.00x effective April 2021 – Minimum hedging requirements | ||||||
Significant restrictive covenants | – Incurrence of debt | – Incurrence of debt | – Incurrence of debt | |||
– Incurrence of liens | – Incurrence of liens | – Incurrence of liens | ||||
– Payment of dividends | – Payment of dividends | – Payment of dividends | ||||
– Equity purchases | – Equity purchases | – Equity purchases | ||||
– Asset sales | – Asset sales | – Asset sales | ||||
– Limitations on derivatives & investments | – Limitations on derivatives & investments | – Limitations on ability to make investments | ||||
– Affiliate transactions | – Affiliate transactions | – Affiliate transactions | ||||
– Excess cash cap | – Restricted payments – Limitations on Guarantees by Restricted Subsidiaries | |||||
Optional redemption | Any time at par | Make-whole through June 2022; 102% through June 2023; 101% through June 2024; thereafter at par | Make-whole through April 2024. After April 2024 through April 2025 at 103.375%; thereafter through April 2026 at 101.688%; thereafter at par. | |||
Change of control | Event of default | Event of default | If accompanied by Ratings Decline, Investor put at 101% of par |
(1) | This information is qualified in all respects by reference to the full text of the covenants, provisions and related definitions contained in the documents governing the various components of our debt. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit No. | Description | |
101.INS (a) | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH (a) | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL (a) | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF (a) | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB (a) | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE (a) | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
(a) | Filed herewith. |
(b) | Furnished herewith. |
† | Management Contract or compensatory plan or agreement. |
* | Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish to the SEC a copy of any omitted schedule upon request. |
Vine Energy Inc. | ||||||
Date: | By: | /s/ Brian D. Dutton | ||||
Name: | Brian D. Dutton | |||||
Title: | Vice President, Chief Accounting Officer and Principal Accounting Officer |