Brigham Minerals, Inc. Reports Second Quarter 2020 Operating and Financial Results

AUSTIN, Texas–(BUSINESS WIRE)–Brigham Minerals, Inc. (NYSE: MNRL) (“Brigham Minerals,” “Brigham,” or the “Company”), a leading mineral and royalty interest acquisition company, today announced operating and financial results for the quarter ended June 30, 2020.

SECOND QUARTER 2020 OPERATIONAL AND FINANCIAL HIGHLIGHTS AND RECENT DEVELOPMENTS

  • Daily production volumes of 8,854 Boe/d (71% liquids, 50% oil)

    • Production volumes up 31% from Q2 2019 with Permian production volumes up 73% from Q2 2019
    • Production volumes down 15% sequentially, largely driven by roughly 700 Boe/d of Q2 2020 production curtailments by our operators in response to the price collapse from COVID-19 demand destruction, which based on operator disclosures, we expect much of it to return on line in Q3 2020
  • Mineral and royalty revenues totaling $12.5 million

    • Revenue down 46% from Q2 2019 driven by 58% lower realized pricing
    • Revenue down 56% sequentially from Q1 2020 primarily driven by 48% lower realized pricing
  • Net loss totaling $6.8 million

    • Adjusted EBITDA(1) totaling $5.9 million
  • Declared Q2 2020 dividend of $0.14 per share of Class A common stock

    • Payout of 100% of Q2 2020 discretionary cash flow(1)
  • Acquired 300 net royalty acres deploying $2.3 million in mineral acquisition capital

    • Acquisition costs totaling $4.3 million per net location, representing a 37% decrease vs Q1 2020
    • Remaining highly disciplined with acquisitions given volatile market conditions
  • 705 gross (4.6 net) drilled but uncompleted locations (“DUCs”) as of June 30, 2020

    • Converted 222 (25%) gross and 1.2 (21%) net DUCs during Q2 2020
    • Approximately 60% of June 30, 2020 net DUC inventory located in Permian Basin
    • Anticipate majority of DUCs to be completed by ExxonMobil, Chevron Corporation, Royal Dutch Shell, Continental Resources, Crestone Peak and PDC Energy
  • Subsequent to completion of Chevron Corporation and Noble Energy, Inc. merger, anticipate 8% of organic undeveloped inventory to be operated by Chevron in the Delaware and DJ Basins

    • Permian Basin and DJ Basin to comprise 6% and 2%, respectively, of undeveloped inventory
  • $16.5 million cash balance and undrawn revolver capacity of $135 million as of June 30, 2020

    • Approximately $151 million of liquidity

(1)

Non-GAAP measure. See “Non-GAAP Financial Measures” below.

Ben M. (“Bud”) Brigham, Executive Chairman, commented, “The unprecedented challenges posed by COVID-19 and the OPEC + production disagreement in March significantly impacted the energy markets during the second quarter thereby reducing our realized pricing as well as forcing some of our operators to curtail production. As a result, we saw lower levels of discretionary cash flow(1) in the second quarter, however, as we previously committed to our shareholders we are distributing 100% of our discretionary cash flow(1) given our cash on hand and undrawn revolver capacity. Further, our portfolio has been carefully constructed by our team of geologists and reservoir engineers to acquire in the core geologic areas within liquids rich resource plays and importantly the optionality associated with our approach has played out yet again with Chevron Corporation’s announced acquisition of Noble Energy. With roughly 8% of our undeveloped locations soon to be under Chevron control, we believe those locations will be developed more efficiently by Chevron given their extremely well-capitalized balance sheet and proven track record of consistent rig deployment throughout commodity cycles.”

Robert M. (“Rob”) Roosa, Chief Executive Officer, commented, “Challenging macro conditions in the energy space drove record low rig counts and a substantial decline in frac crews during the second quarter. Although the challenging conditions resulted in a sequential decline in our second quarter production, our data indicates that approximately one-third of our DUCs in inventory at the end of the second quarter have been treated and can potentially be rapidly turned in line to production during the second half of 2020. Given both our treated DUCs and operator commentary indicating curtailed volumes will largely be back on line beginning in the third quarter, we believe our production volumes will stabilize and average in excess of 9,000 Boe/d in the second half of 2020. Further, our permitting inventory remains strong due to continued strength in new Permian activity that will provide the basis for future production. Finally, our technical teams are excited by the recent significant deal flow that has transpired, which points to a potential thawing of the acquisition markets and the opportunity to jump start our ground game acquisitions during the remainder of 2020 at lower pricing levels. Thus far in the third quarter, we’ve closed or have under contract $15 million of mineral acquisitions, 90% of which are located in the Permian Basin and approximately two-thirds of the total is located in Loving County. We continue to believe that our ample liquidity will allow us to achieve differentiated mineral acquisition performance in the second half of the year.”

Blake C. Williams, Chief Financial Officer, added, “Our financial results reflect the challenging environment we faced with benchmark and realized pricing down significantly and many of our operators curtailing some of our production volumes for the majority of the second quarter. Despite these issues, our strong balance sheet allowed us to avoid industry wide leverage issues, avoid putting on hedges as a reaction to declining prices, and therefore we are currently poised to fully benefit from a stabilization and eventual recovery of the crude markets. In terms of general & administrative costs, excluding the impacts of approximately $0.7 million in secondary offering and other annual costs, we were able to achieve reductions in run-rate cash costs during the second quarter in line with our previously announced initiatives.”

(1)

Non-GAAP measure. See “Non-GAAP Financial Measures” below.

OPERATIONAL UPDATE

Mineral and Royalty Interest Ownership Update

Due to the ongoing COVID-19 pandemic and crude market volatility, the Company was focused on preserving balance sheet flexibility and liquidity during the second quarter 2020. During the quarter, the Company closed seven transactions acquiring 300 net royalty acres (standardized to a 1/8th royalty interest) deploying $2.3 million in capital primarily to the Midland Basin. As of June 30, 2020, the Company had acquired roughly 83,575 net royalty acres, encompassing 12,907 gross (113.2 net) undeveloped horizontal locations, across 39 counties in what the Company views as the cores of the Permian Basin in West Texas and New Mexico, the SCOOP/STACK plays in the Anadarko Basin of Oklahoma, the Denver-Julesburg (“DJ”) Basin in Colorado and Wyoming and the Williston Basin in North Dakota.

The table below summarizes the Company’s mineral and royalty interest ownership at the dates indicated.

 

 

Delaware

 

Midland

 

SCOOP

 

STACK

 

DJ

 

Williston

 

Other

 

Total

Net Royalty Acres

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

26,550

 

4,800

 

11,375

 

10,700

 

15,600

 

7,825

 

6,725

 

83,575

March 31, 2020

 

26,550

 

4,575

 

11,375

 

10,700

 

15,600

 

7,825

 

6,650

 

83,275

Acres Added (Sold) Q/Q

 

 

225

 

 

 

 

 

75

 

300

% Added (sold) Q/Q

 

0.0%

 

4.9%

 

0.0%

 

0.0%

 

0.0%

 

0.0%

 

1.1%

 

0.4%

DUC Conversions Updates

The Company saw approximately 222 gross (1.2 net) DUCs converted to production during the second quarter, which represented 25% of its gross DUC inventory (21% of net DUCs) at the end of the first quarter of 2020. Second quarter conversions of gross and net wells by status are summarized in the table below:

Q2 2020 Wells Converted to Proved Developed Producing

 

 

Gross

 

Net

DUCs

 

222

 

97%

 

1.2

 

92%

Acquired

 

7

 

3%

 

0.1

 

8%

Total

 

229

 

100%

 

1.3

 

100%

Drilling Activity Update

During the second quarter 2020, the Company identified 36 gross (0.2 net) wells spud on its mineral position. In 2019 and 2018, respectively, the Company averaged 219 gross (1.4 net) and 135 gross (1.0 net) wells spud per quarter. Brigham’s gross and net wells spud activity over the past ten quarters is summarized in the table below:

 

Q1 18

 

Q2 18

 

Q3 18

 

Q4 18

 

Q1 19

 

Q2 19

 

Q3 19

 

Q4 19

 

Q1 20

 

Q2 20

Gross Wells Spud

82

 

99

 

208

 

150

 

230

 

248

 

214

 

185

 

209

 

36

Net Wells Spud

0.3

 

1.1

 

1.4

 

1.0

 

1.2

 

1.3

 

1.3

 

1.7

 

1.6

 

0.2

Four Quarter Rolling Average Net Wells Spud

 

 

 

 

 

 

1.0

 

1.2

 

1.2

 

1.2

 

1.4

 

1.5

 

1.1

DUC and Permit Inventory Update

Given the aforementioned challenges facing the global crude market and our operators, the near-term conversion of wells from DUCs or permits to proved developed producing was delayed and may continue to be delayed or deferred relative to historic conversion rates. Brigham’s gross and net DUC and permit inventory as of June 30, 2020 by basin is outlined in the table below:

 

 

Development Inventory by Basin (1)

 

 

Delaware

 

Midland

 

SCOOP

 

STACK

 

DJ

 

Williston

 

Other

 

Total

Gross Inventory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DUCs

 

198

 

157

 

69

 

8

 

128

 

138

 

7

 

705

Permits

 

165

 

119

 

12

 

9

 

214

 

209

 

7

 

735

Net Inventory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DUCs

 

2.1

 

0.7

 

0.4

 

0.0

 

1.1

 

0.3

 

0.0

 

4.6

Permits

 

1.3

 

0.5

 

0.1

 

0.0

 

2.2

 

0.4

 

0.1

 

4.5

(1)

Individual amounts may not add to totals due to rounding.

FINANCIAL UPDATE

For the three months ended June 30, 2020, crude oil, natural gas and NGL production volumes, increased 31% to 8,854 Boe/d as compared to the same prior year period, due to a 73% increase in Permian Basin volumes and a 12% increase in Anadarko Basin volumes.

Second quarter 2020 average realized prices were $24.15 per barrel of oil, $1.11 per Mcf of natural gas, and $7.28 per barrel of NGL, for a total equivalent price of $15.57 per Boe. This represents a 48% decrease relative to first quarter 2020 and is 58% lower than year-ago levels of $37.42 per Boe.

The Company’s net loss was $6.8 million for the three months ended June 30, 2020, inclusive of $1.9 million of non-cash share-based compensation expense. Adjusted EBITDA was $5.9 million for the three months ended June 30, 2020, down 68% relative to the same prior-year period. Adjusted EBITDA ex lease bonus was $5.8 million for the three months ended June 30, 2020, down 65% from the prior year. Adjusted EBITDA and Adjusted EBITDA ex lease bonus are non-GAAP financial measures. For a definition of Adjusted EBITDA and Adjusted EBITDA ex lease bonus and a reconciliation to our most directly comparable measure calculated and presented in accordance with GAAP, please read “Non-GAAP Financial Measures” below.

As of June 30, 2020, the Company had a cash balance of $16.5 million and $135.0 million of capacity under its revolving credit facility, providing the Company with total liquidity of $151.5 million. During the three months ended June 30, 2020, $0.3 million of debt issuance costs were written off as a result of the reduction in the revolving credit facility’s borrowing base from $180 million to $135 million in conjunction with the May redetermination.

Results of Operations

Unaudited Financial and Operational Results

 

Three Months Ended June 30,

 

Six Months Ended June 30,

($ in thousands, except per unit of production data)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating Revenues

 

 

 

 

 

 

 

 

Oil sales

 

$

9,766

 

 

 

$

19,140

 

 

 

$

33,353

 

 

 

$

32,715

 

 

Natural gas sales

 

1,555

 

 

 

2,309

 

 

 

4,346

 

 

 

4,896

 

 

NGL sales

 

1,222

 

 

 

1,600

 

 

 

3,218

 

 

 

3,028

 

 

Total mineral and royalty revenue

 

$

12,543

 

 

 

$

23,049

 

 

 

$

40,917

 

 

 

$

40,639

 

 

Lease bonus and other revenue

 

62

 

 

 

1,480

 

 

 

3,968

 

 

 

2,155

 

 

Total Revenues

 

$

12,605

 

 

 

$

24,529

 

 

 

$

44,885

 

 

 

$

42,794

 

 

Production

 

 

 

 

 

 

 

 

Oil (MBbls)

 

404

 

 

 

346

 

 

 

921

 

 

 

613

 

 

Natural Gas (MMcf)

 

1,402

 

 

 

1,066

 

 

 

2,986

 

 

 

1,935

 

 

NGLs (MBbls)

 

168

 

 

 

92

 

 

 

333

 

 

 

165

 

 

Equivalents (MBoe)

 

806

 

 

 

616

 

 

 

1,752

 

 

 

1,100

 

 

Equivalents per day (Boe/d)

 

8,854

 

 

 

6,768

 

 

 

9,628

 

 

 

6,079

 

 

Realized Prices ($/Boe)

 

 

 

 

 

 

 

 

Oil ($/Bbl)

 

$

24.15

 

 

 

$

55.24

 

 

 

$

36.20

 

 

 

$

53.34

 

 

Natural gas ($/Mcf)

 

1.11

 

 

 

2.17

 

 

 

1.46

 

 

 

2.53

 

 

NGLs ($/Bbl)

 

7.28

 

 

 

17.42

 

 

 

9.66

 

 

 

18.41

 

 

Average Realized Price, without Derivatives

 

$

15.57

 

 

 

$

37.42

 

 

 

$

23.35

 

 

 

$

36.93

 

 

Average Realized Price, with Derivatives

 

$

15.57

 

 

 

$

37.49

 

 

 

$

23.35

 

 

 

$

37.15

 

 

Operating Expenses

 

 

 

 

 

 

 

 

Gathering, transportation and marketing

 

$

1,625

 

 

 

$

1,523

 

 

 

$

3,404

 

 

 

$

2,637

 

 

Severance and ad valorem taxes

 

1,034

 

 

 

1,450

 

 

 

2,786

 

 

 

2,829

 

 

Depreciation, depletion and amortization

 

11,200

 

 

 

6,760

 

 

 

24,026

 

 

 

11,876

 

 

General and administrative (before share-based compensation)

 

4,037

 

 

 

3,267

 

 

 

7,664

 

 

 

5,216

 

 

Total Operating Expenses (before share-based compensation)

 

$

17,896

 

 

 

$

13,000

 

 

 

$

37,880

 

 

 

$

22,558

 

 

General and administrative, share-based compensation

 

1,853

 

 

 

6,495

 

 

 

3,736

 

 

 

6,495

 

 

Total Operating Expenses

 

$

19,749

 

 

 

$

19,495

 

 

 

$

41,616

 

 

 

$

29,053

 

 

(Loss) Income From Operations

 

$

(7,144

)

 

 

$

5,034

 

 

 

$

3,269

 

 

 

$

13,741

 

 

Gain (loss) on derivative instruments

 

 

 

 

73

 

 

 

 

 

 

(612

)

 

Interest expense, net

 

(545

)

 

 

(1,270

)

 

 

(577

)

 

 

(5,095

)

 

Loss on extinguishment of debt

 

 

 

 

(6,933

)

 

 

 

 

 

(6,933

)

 

Other income, net

 

23

 

 

 

6

 

 

 

25

 

 

 

35

 

 

(Loss) Income Before Taxes

 

$

(7,666

)

 

 

$

(3,090

)

 

 

$

2,717

 

 

 

$

1,136

 

 

Income tax (benefit) expense

 

(850

)

 

 

117

 

 

 

732

 

 

 

307

 

 

Net (Loss) Income

 

$

(6,816

)

 

 

$

(3,207

)

 

 

$

1,985

 

 

 

$

829

 

 

Less: net income attributable to predecessor

 

 

 

 

(1,590

)

 

 

 

 

 

(5,092

)

 

Less: net loss (income) attributable to temporary equity

 

2,766

 

 

 

2,941

 

 

 

(1,329

)

 

 

2,941

 

 

Net (loss) income attributable to Brigham Minerals, Inc. Stockholders

 

$

(4,050

)

 

 

(1,856

)

 

 

$

656

 

 

 

(1,322

)

 

 

 

 

 

 

 

 

 

 

Unit Expenses ($/Boe)

 

 

 

 

 

 

 

 

Gathering, transportation and marketing

 

$

2.02

 

 

 

$

2.47

 

 

 

$

1.94

 

 

 

$

2.40

 

 

Severance and ad valorem taxes

 

1.28

 

 

 

2.35

 

 

 

1.59

 

 

 

2.57

 

 

Depreciation, depletion and amortization

 

13.90

 

 

 

10.98

 

 

 

13.71

 

 

 

10.79

 

 

General and administrative (before share-based compensation)

 

5.01

 

 

 

5.30

 

 

 

4.37

 

 

 

4.74

 

 

General and administrative, share-based compensation

 

2.30

 

 

 

10.55

 

 

 

2.13

 

 

 

5.90

 

 

Interest expense, net

 

0.68

 

 

 

2.06

 

 

 

0.33

 

 

 

4.63

 

 

QUARTERLY CASH DIVIDEND

The Company’s Board of Directors (the “Board”) has declared a quarterly cash dividend incorporating results for the second quarter 2020 of $0.14 per share of Class A common stock, to be paid on September 3, 2020 to holders of record as of August 27, 2020. An amount equal to the cash dividend per share will also be set aside for each outstanding RSU and PSU granted under the long-term incentive plan for payment upon the vesting of such awards in accordance with their terms.

Future declarations of dividends are subject to approval by the Board and to the Board’s continuing determination that the declarations of dividends are in the best interests of the Company and its stockholders. Future dividends may be adjusted at the Board’s discretion based on market conditions and capital availability.

BRIGHAM MINERALS SECOND QUARTER 2020 EARNINGS CONFERENCE CALL

  • Thursday, August 13, 2020 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time)
  • Pre-register by visiting http://dpregister.com/10145678
  • Listen to a live audio webcast of the call by visiting the Company’s website

  • A recording of the webcast will be available on the Company’s website after the call

NON-GAAP FINANCIAL MEASURES

Adjusted EBITDA, Adjusted EBITDA ex lease bonus, and Discretionary Cash Flow are non-GAAP supplemental financial measures used by our management and by external users of our financial statements such as investors, research analysts and others to assess the financial performance of our assets and their ability to sustain dividends over the long term without regard to financing methods, capital structure or historical cost basis.

We define Adjusted EBITDA as net income (loss) before depreciation, depletion and amortization, share based compensation expense, interest expense, gain or loss on derivative instruments and income tax expense, less other income and gain or loss on sale of oil and gas properties. We define Adjusted EBITDA ex lease bonus as Adjusted EBITDA further adjusted to eliminate the impacts of lease bonus revenue we receive due to the unpredictability of timing and magnitude of the revenue. We define Discretionary Cash Flow as Adjusted EBITDA, less cash interest expense and cash taxes.

Adjusted EBITDA, Adjusted EBITDA ex lease bonus, and Discretionary Cash Flow do not represent and should not be considered alternatives to, or more meaningful than, net income, income from operations, cash flows from operating activities or any other measure of financial performance presented in accordance with GAAP as measures of our financial performance. Adjusted EBITDA, Adjusted EBITDA ex lease bonus, and Discretionary Cash Flow have important limitations as analytical tools because they exclude some but not all items that affect net income, the most directly comparable GAAP financial measure. Our computation of Adjusted EBITDA, Adjusted EBITDA ex lease bonus, and Discretionary Cash Flow may differ from computations of similarly titled measures of other companies.

The following tables present a reconciliation of Adjusted EBITDA, Adjusted EBITDA ex lease bonus, and Discretionary Cash Flow to the most directly comparable GAAP financial measure for the periods indicated.

SUPPLEMENTAL SCHEDULES

Reconciliation of Adjusted EBITDA and Adjusted EBITDA ex Lease Bonus

 

 

 

Three Months Ended

($ In thousands)

 

June 30, 2020

 

March 31, 2020

 

June 30, 2019

Net (Loss) Income

 

$

(6,816

)

 

 

$

8,801

 

 

$

(3,207

)

 

Add:

 

 

 

 

 

 

Loss on extinguishment of debt

 

 

 

 

 

 

6,933

 

 

Adjusted Net (Loss) Income

 

$

(6,816

)

 

 

$

8,801

 

 

$

3,726

 

 

Add:

 

 

 

 

 

 

Depreciation, depletion and amortization

 

11,200

 

 

 

12,826

 

 

6,760

 

 

Share-based compensation expense

 

1,853

 

 

 

1,884

 

 

6,495

 

 

Interest expense, net

 

545

 

 

 

32

 

 

1,270

 

 

Income tax expense

 

 

 

 

1,582

 

 

117

 

 

Less:

 

 

 

 

 

 

Gain on derivative instruments, net

 

 

 

 

 

 

73

 

 

Other income, net

 

23

 

 

 

2

 

 

6

 

 

Income tax benefit

 

850

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

5,909

 

 

 

$

25,123

 

 

$

18,289

 

 

Less:

 

 

 

 

 

 

Lease bonus revenue

 

62

 

 

 

3,906

 

 

1,480

 

 

Adjusted EBITDA ex Lease Bonus

 

$

5,847

 

 

 

$

21,217

 

 

$

16,809

 

 

Reconciliation of Discretionary Cash Flow

 

 

 

Three Months Ended

($ In thousands, except per share amounts)

 

June 30, 2020

 

March 31, 2020

Adjusted EBITDA (1)

 

$

5,909

 

 

 

$

25,123

 

 

Less:

 

 

 

 

Adjusted EBITDA attributable to non-controlling interest

 

(1,829

)

 

 

$

(10,029

)

 

Adjusted EBITDA attributable to Class A Common Stock

 

$

4,080

 

 

 

$

15,094

 

 

Less:

 

 

 

 

Cash interest expense

 

165

 

 

 

152

 

 

Cash taxes (2)

 

(2,036

)

 

 

2,036

 

 

Dividend equivalent rights

 

462

 

 

 

360

 

 

Retained cash flow

 

 

 

 

 

 

Less:

 

 

 

 

Lease bonus attributable to Class A Common Stock

 

43

 

 

 

2,348

 

 

Discretionary cash flow to Class A Common Stock ex Lease Bonus

 

$

5,446

 

 

 

$

10,198

 

 

Plus:

 

 

 

 

Lease bonus attributable to Class A Common Stock

 

43

 

 

 

2,348

 

 

Discretionary cash flow to Class A Common Stock

 

$

5,489

 

 

 

$

12,546

 

 

 

 

 

 

 

Shares of Class A Common Stock

 

39,297

 

 

 

34,174

 

 

 

 

 

 

 

Discretionary cash flow per share of Class A Common Stock ex. Lease Bonus

 

$

0.14

 

 

 

$

0.30

 

 

Discretionary cash flow per share of Class A Common Stock – Dividend

 

$

0.14

 

 

 

$

0.37

 

 

(1)

Refer to Reconciliation of Adjusted EBITDA from Net Income above.

(2)

The Company does not expect to incur federal income taxes for income related to results for the six months ended June 30, 2020.

UNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS

 

 

 

June 30,

 

December 31,

(In thousands, except share amounts)

 

2020

 

 

2019

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

16,465

 

 

 

$

51,133

 

 

Accounts receivable

 

18,011

 

 

 

30,291

 

 

Prepaid expenses and other

 

2,281

 

 

 

1,688

 

 

Total current assets

 

36,757

 

 

 

83,112

 

 

Oil and gas properties, at cost, using the full cost method of accounting:

 

 

 

 

Unevaluated property

 

307,809

 

 

 

291,664

 

 

Evaluated property

 

464,630

 

 

 

449,061

 

 

Less accumulated depreciation, depletion, and amortization

 

(85,986

)

 

 

(61,103

)

 

Total oil and gas properties, net

 

686,453

 

 

 

679,622

 

 

Other property and equipment

 

5,381

 

 

 

5,095

 

 

Less accumulated depreciation

 

(4,410

)

 

 

(3,703

)

 

Other property and equipment, net

 

971

 

 

 

1,392

 

 

Deferred tax asset

 

17,783

 

 

 

18,823

 

 

Other assets, net

 

928

 

 

 

1,213

 

 

Total assets

 

$

742,892

 

 

 

$

784,162

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable and accrued liabilities

 

$

8,197

 

 

 

$

11,533

 

 

Total current liabilities

 

8,197

 

 

 

11,533

 

 

Long-term bank debt

 

 

 

 

 

 

Other non-current liabilities

 

1,747

 

 

 

803

 

 

Temporary equity

 

214,146

 

 

 

454,507

 

 

Shareholders’ equity:

 

 

 

 

Preferred stock, $0.01 par value; 50,000,000 authorized; no shares issued and outstanding at June 30, 2020 and December 31, 2019

 

 

 

 

 

 

Class A common stock, $0.01 par value; 400,000,000 authorized, 39,296,944 shares issued and outstanding at June 30, 2020; 400,000,000 authorized, 34,040,934 issued and outstanding at December 31, 2019

 

393

 

 

 

340

 

 

Class B common stock, $0.01 par value; 150,000,000 authorized, 17,612,638 shares issued and outstanding at June 30, 2020; 150,000,000 authorized, 22,847,045 shares issued and outstanding at December 31, 2019

 

 

 

 

 

 

Additional paid-in capital

 

551,165

 

 

 

323,578

 

 

Accumulated deficit

 

(32,756

)

 

 

(6,599

)

 

Total shareholders’ equity attributable to Brigham Minerals Inc.

 

518,802

 

 

 

317,319

 

 

Total liabilities and shareholders’ equity

 

$

742,892

 

 

 

$

784,162

 

 

UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENT OF OPERATIONS

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(In thousands, except per share data)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

REVENUES

 

 

 

 

 

 

 

 

Mineral and royalty revenues

 

$

12,543

 

 

 

$

23,049

 

 

 

$

40,917

 

 

 

$

40,639

 

 

Lease bonus and other revenues

 

62

 

 

 

1,480

 

 

 

3,968

 

 

 

2,155

 

 

Total revenues

 

12,605

 

 

 

24,529

 

 

 

44,885

 

 

 

42,794

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

Gathering, transportation and marketing

 

1,625

 

 

 

1,523

 

 

 

3,404

 

 

 

2,637

 

 

Severance and ad valorem taxes

 

1,034

 

 

 

1,450

 

 

 

2,786

 

 

 

2,829

 

 

Depreciation, depletion and amortization

 

11,200

 

 

 

6,760

 

 

 

24,026

 

 

 

11,876

 

 

General and administrative (excluding share-based compensation)

 

4,037

 

 

 

3,267

 

 

 

7,664

 

 

 

5,216

 

 

Total operating expenses (excluding share-based compensation)

 

17,896

 

 

 

13,000

 

 

 

37,880

 

 

 

22,558

 

 

General and administrative, share-based compensation

 

1,853

 

 

 

6,495

 

 

 

3,736

 

 

 

6,495

 

 

Total operating expenses

 

19,749

 

 

 

19,495

 

 

 

41,616

 

 

 

29,053

 

 

NET (LOSS) INCOME FROM OPERATIONS

 

(7,144

)

 

 

5,034

 

 

 

3,269

 

 

 

13,741

 

 

Gain (loss) on derivative instruments, net

 

 

 

 

73

 

 

 

 

 

 

(612

)

 

Interest expense, net

 

(545

)

 

 

(1,270

)

 

 

(577

)

 

 

(5,095

)

 

Loss on extinguishment of debt

 

 

 

 

(6,933

)

 

 

 

 

 

(6,933

)

 

Other income, net

 

23

 

 

 

6

 

 

 

25

 

 

 

35

 

 

(Loss) income before income taxes

 

(7,666

)

 

 

(3,090

)

 

 

2,717

 

 

 

1,136

 

 

Income tax (benefit) expense

 

(850

)

 

 

117

 

 

 

732

 

 

 

307

 

 

NET (LOSS) INCOME

 

$

(6,816

)

 

 

$

(3,207

)

 

 

$

1,985

 

 

 

$

829

 

 

Less: net income attributable to Predecessor

 

 

 

 

(1,590

)

 

 

 

 

 

(5,092

)

 

Less: net (loss) income attributable to temporary equity

 

2,766

 

 

 

2,941

 

 

 

(1,329

)

 

 

2,941

 

 

Net (loss) income attributable to Brigham Minerals, Inc. shareholders

 

$

(4,050

)

 

 

$

(1,856

)

 

 

$

656

 

 

 

$

(1,322

)

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME PER COMMON SHARE

 

 

 

 

 

 

 

 

Basic

 

$

(0.11

)

 

 

$

(0.12

)

 

 

$

0.02

 

 

 

$

(0.24

)

 

Diluted

 

$

(0.11

)

 

 

$

(0.12

)

 

 

$

0.02

 

 

 

$

(0.25

)

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

 

 

 

Basic

 

35,282

 

 

 

17,819

 

 

 

34,631

 

 

 

8,959

 

 

Diluted

 

35,282

 

 

 

41,460

 

 

 

34,631

 

 

 

20,806

 

 

Contacts

At the Company:

Brigham Minerals, Inc.

Blake C. Williams

Chief Financial Officer

(512) 220-6350

Or

For Investor and Media Inquiries:

Lincoln Churchill Advisors

Julie D. Baughman

(512) 220-1500

InvestorRelations@brighamminerals.com

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