FORT WORTH, Texas, March 10, 2021 (GLOBE NEWSWIRE) — Contango Oil & Fuel Firm (NYSE American: MCF) (“Contango” or the “Firm”) introduced right this moment its monetary outcomes for the fourth quarter and twelve months ended December 31, 2020.

Fourth Quarter 2020 Highlights and Latest Developments

  • Manufacturing gross sales of 1,321 MBoe for the quarter, or 14.4 MBoe per day, inside steerage for the quarter. Assuming we had owned MCEP and Silvertip in the course of the fourth quarter, our professional forma manufacturing gross sales would have been 24.5 MBoe per day.
  • Complete working bills of $17.1 million for the quarter, and working bills unique of manufacturing and advert valorem taxes of $15.5 million, on the decrease finish of the steerage vary for the quarter.
  • Web lack of $25.2 million (together with $22.8 million in pre-tax impairments) in comparison with a internet lack of $138.4 million (together with $124.7 million in pre-tax impairments) within the prior 12 months quarter.
  • Recurring Adjusted EBITDAX (a non-GAAP measure, as outlined and offered herein) of $12.2 million, in comparison with $17.2 million within the prior 12 months quarter.
  • On October 25, 2020, the Firm entered into an Settlement and Plan of Merger with Mid-Con Vitality Companions, LP (“Mid-Con”) (NASDAQ:MCEP) and Mid-Con Vitality GP, LLC, the overall companion of Mid-Con, pursuant to which Mid-Con merged with and right into a wholly-owned, direct subsidiary of the Firm (the “Mid-Con Acquisition”). The Mid-Con Acquisition closed on January 21, 2021, at which era the MSA terminated.
  • On October 27, 2020, the Firm accomplished a non-public placement with a choose group of institutional and accredited traders for the sale of 26,451,988 shares of the Firm’s frequent inventory for internet proceeds of roughly $38.8 million.
  • On October 30, 2020, the Firm entered into an modification to its revolving credit score settlement with JPMorgan Chase Financial institution N.A., as administrative agent, and the lenders social gathering thereto (the “Credit score Settlement”) below which, amongst different issues, the Firm’s borrowing base elevated from $75 million to $130 million upon the closing of the Mid-Con Acquisition.
  • On November 27, 2020, the Firm entered into a purchase order and sale settlement with an undisclosed vendor to amass sure oil and pure fuel properties situated within the Massive Horn Basin in Wyoming and Montana, within the Powder River Basin in Wyoming, and within the Permian Basin in Texas and New Mexico (the “Silvertip Acquisition”). The Silvertip Acquisition closed on February 1, 2021.
  • On December 1, 2020, the Firm accomplished one other non-public placement of 14,193,903 shares of the Firm’s frequent inventory for internet proceeds of roughly $21.7 million.
  • Professional forma for MCEP and Silvertip acquisitions, the Firm as of January 1, 2021 has elevated strip1 PDP PV-10 by an element of two.2x to $572 million in comparison with the Firm’s reserves as of January 1, 2020.
  • Professional forma for MCEP and Silvertip acquisitions, the Firm’s 5 12 months PDP oil decline forecasted at a peer main < 10%, creating substantial money circulate to reinvest in extra inorganic and natural alternatives.
  • Debt excellent as of March 1, 2021 was roughly $114 million, with $4 million money available. Whereas we anticipate future inorganic development, assuming strip1 pricing, no new acquisitions, and our present capital spending price range, we anticipate the Firm exiting 2021 at lower than 0.5x Debt/TTM EBITDA and anticipate being in a internet money place by the tip of Q3 subsequent 12 months.
  • Within the acquired Silvertip and MCEP belongings, we’ve recognized a extremely environment friendly capital price range for 2021 of roughly $4 million anticipated to create $46 million in proved developed PV-10 at strip1 (a 9.2x PV/I) and isn’t inclusive of doubtless vital extra worth from a properly reactivation initiative underway given the upper commodity value surroundings.

 (1) Strip costs run at March 3,2021.

Administration Commentary

Wilkie S. Colyer, the Firm’s Chief Government Officer, mentioned, “As famous on this launch, and our associated SEC filings, we had a really busy fourth quarter that has continued into a great begin to 2021. We signed two acquisition agreements within the fourth quarter that we closed within the first quarter. By means of these lengthy lived, decrease decline acquisitions, we’ve elevated our present manufacturing to gross sales 24.5 MBoe/d primarily based on fourth quarter 2020 gross sales, when in comparison with our fourth quarter common of 14.4 MBoe/d and have elevated our reserves, money circulate, monetary energy, and adaptability. We consider this positions us properly to proceed our consolidation technique whereas the window of alternative to amass PDP-heavy belongings, with related improvement potential and at a reduction to PDP PV-10 worth, nonetheless exists. Our technical staff’s give attention to operational efficiencies and value enhancements has resulted in a 7.5 MMBoe addition to proved reserves within the type of efficiency revisions at SEC pricing. We consider that we are going to be equally profitable in growing the worth of the reserves acquired within the Mid-Con and Silvertip acquisitions, and we consider this course of to be repeatable on future acquisitions primarily based on our current monitor document. Our diversified portfolio supplies us a listing of very excessive return capital tasks to execute on in 2021 and past.

“Sustaining a powerful monetary profile can also be a precedence for us as we glance to probably benefit from extra acquisition alternatives. We try to keep up most flexibility in our capital construction financing acquisitions, and we defend our liquidity and money circulate by way of our aggressive hedging program. For 2021, and professional forma for the MCEP and Silvertip acquisitions, we’ve value protected roughly 67% of our forecasted PDP oil manufacturing (from April by way of December) at a median flooring value of $54.87 per barrel and roughly 60% of our forecasted 2021 PDP fuel manufacturing (from April by way of December) at a median flooring value of $2.62 per MMBtu. For 2022, we’ve value protected roughly 47% of our forecasted PDP oil manufacturing at a median flooring value of $50.24 per barrel and roughly 57% of our forecasted PDP fuel manufacturing at a median flooring value of $2.60 per MMBtu. We even have roughly 50% of forecasted PDP oil manufacturing for the primary two months of 2023 hedged at a median flooring value of $49.70 per barrel and roughly 60% of forecasted PDP fuel manufacturing for the primary two months of 2023 hedged at a median flooring value $2.72. Lastly, I’d prefer to thank our shareholders and lenders, led by JPMorgan, for his or her continued assist, together with our devoted workers.”

Impression of the COVID-19 Pandemic

The COVID-19 pandemic has resulted in a extreme worldwide financial downturn, considerably disrupting the demand for oil all through the world, and has created vital volatility, uncertainty and turmoil within the oil and pure fuel {industry}. This led to a big world oversupply of oil and a subsequent substantial lower in oil costs. Whereas world oil producers, together with the Group of Petroleum Exporting International locations (“OPEC”) and different oil producing nations just lately have proven a willingness to train extra restraint on manufacturing ranges, and there was a decline in U.S. manufacturing as a consequence of a discount in drilling exercise, basic downward strain on, and volatility in, commodity costs has remained and will proceed for the foreseeable future. Now we have commodity by-product devices in place to mitigate the results of such value declines; nevertheless, derivatives is not going to fully mitigate decrease oil and pure fuel costs. Whereas there was modest restoration in oil costs, the size of this demand disruption continues to be unknown, and there’s vital uncertainty relating to the long-term affect to world oil demand, which can in the end rely on numerous elements and penalties past the Firm’s management, such because the period and scope of the pandemic, the size and severity of the worldwide financial downturn, extra actions by companies and governments in response to each the pandemic and the lower in oil costs, the velocity and effectiveness of responses to fight the virus, and the time essential to equalize oil provide and demand to revive oil pricing. In response to those developments, we’ve continued to implement measures to mitigate the affect of the COVID-19 pandemic on our workers, operations and monetary place. These measures embrace, however usually are not restricted to, the next:

  • earn a living from home initiatives for all however vital employees and the implementation of social distancing measures;
  • a company-wide effort to chop prices all through our operations;
  • utilization of our obtainable storage capability to quickly retailer a portion of our manufacturing for later sale at greater costs when advantageous to take action (such because the approximate 50,000 barrels of second quarter 2020 oil manufacturing we saved and offered in the course of the third quarter of 2020 at greater oil costs);
  • suspension of any additional plans for operated onshore and offshore drilling in 2020;
  • pursuit of extra “charge for service” alternatives much like the Administration Companies Settlement entered into in June 2020 with Mid-Con (the “MSA”), which was terminated on the closing of the Mid-Con Acquisition on January 21, 2021; and
  • potential acquisitions of PDP-heavy belongings, with engaging, discounted valuations, in burdened/distressed situations or from non-industry house owners, corresponding to our Silvertip Acquisition.

Abstract of Fourth Quarter Monetary Outcomes

Web loss for the three months ended December 31, 2020 was $24.8 million, or $(0.16) per fundamental and diluted share, in comparison with a internet lack of $138.4 million, or $(1.32) per fundamental and diluted share, for the prior 12 months quarter. Pre-tax internet loss for the three months ended December 31, 2020 was $25.9 million, in comparison with a pre-tax internet lack of $138.6 million for the prior 12 months quarter.

Common weighted shares excellent had been roughly 155.5 million and 105.2 million for the present and prior 12 months quarters, respectively.

The Firm reported Adjusted EBITDAX, a non-GAAP measure outlined beneath, of roughly $11.3 million for the three months ended December 31, 2020, in comparison with $12.2 million for a similar interval final 12 months, a lower attributable primarily to decrease commodity costs. Recurring Adjusted EBITDAX (outlined beneath as Adjusted EBITDAX unique of non-recurring enterprise mixture bills, strategic advisory charges and authorized judgments) was $12.2 million for the present quarter, in comparison with $17.2 million for the prior 12 months quarter.

Revenues for the present quarter had been roughly $29.2 million in comparison with $37.2 million for the prior 12 months quarter, a lower primarily attributable to a 17% lower within the weighted common equal gross sales value in manufacturing interval over interval primarily because of a 32% decline in oil costs interval over interval. Present quarter revenues additionally included $1.0 million associated to our since-terminated charge for service settlement with Mid-Con.

Manufacturing gross sales for the fourth quarter had been roughly 1,321 MBoe, or 14.4 MBoe per day, in comparison with 1,444 MBoe, or 15.7 MBoe per day for the fourth quarter of 2019. The lower within the present 12 months quarter was primarily attributable to a 0.7 MBoe/d decline from our Gulf of Mexico properties as a result of 12 months over 12 months pure decline in manufacturing and to downtime associated to Hurricane Delta in October 2020.

The weighted common equal gross sales value in the course of the three months ended December 31, 2020 was $21.32 per Boe, in comparison with $25.75 per Boe for a similar interval final 12 months, a decline primarily attributable to the lower in oil costs within the present 12 months quarter because of the lower in demand for commodity merchandise as a result of COVID-19 pandemic and the continuing disruptions to the worldwide vitality markets. Compared to the fourth quarter of 2019, we skilled a 32% decline in oil costs, a 7% enhance in pure fuel costs and a 16% enhance in pure fuel liquids costs within the fourth quarter of 2020.

Working bills for the three months ended December 31, 2020 had been roughly $17.1 million, in comparison with $16.9 million for a similar interval final 12 months, a minimal enhance contemplating the 2019 fourth quarter included bills associated to the White Star and Will Vitality properties for less than the months of November and December. Though lease working bills elevated quarter over quarter, we had been capable of scale back 2020 bills associated to utilities and turbines by roughly $3.9 million in comparison with the prior 12 months, as a consequence of cost-saving initiatives applied in 2020. Included in working bills are direct lease working bills, transportation and processing prices, workover bills and manufacturing and advert valorem taxes. Working bills (unique of manufacturing and advert valorem taxes of $1.6 million and $1.9 million, respectively) had been roughly $15.5 million for the present quarter, on the low finish of steerage, in comparison with roughly $15.0 million for the prior 12 months quarter.

DD&A expense for the three months ended December 31, 2020 was $5.9 million, or $4.47 per Boe, in comparison with $16.2 million, or $11.22 per Boe, for the prior 12 months quarter. The decrease depletion expense and charge within the present quarter was associated to decrease depletable property price because of the proved property impairment recorded in the course of the fourth quarter of 2019 and first quarter of 2020.

Impairment and abandonment expense was $22.9 million for the present quarter, of which $22.8 million associated to non-cash impairment. We recorded $21.1 million for proved property impairment within the present quarter, of which $15.6 million associated to our offshore properties because of efficiency revisions in reserves and the decline in fuel costs and manufacturing yield. We recorded $1.7 million for unproved property impairment as a consequence of leases expiring in 2021, which we’ve no plan to increase or develop because of the present commodity value surroundings and our continued give attention to price saving and manufacturing enhancing initiatives. The prior 12 months quarter included $125.1 million of impairment and abandonment expense, of which $124.7 million associated to non-cash impairment.

Complete G&A bills had been $7.7 million, or $5.81 per Boe, for the three months ended December 31, 2020, in comparison with $9.6 million, or $6.61 per Boe, for the prior 12 months quarter. Recurring G&A bills (Non-GAAP, outlined as G&A bills unique of enterprise mixture bills and non-recurring strategic advisory charges of $1.8 million and authorized judgments of ($0.8) million) for the present quarter had been $6.7 million, or $5.09 per Boe. Recurring G&A bills (Non-GAAP, outlined as G&A bills unique of enterprise mixture bills and non-recurring strategic advisory charges of $2.1 million and authorized judgments of $2.8 million) for the prior 12 months quarter had been $4.6 million, or $3.20 per Boe. The rise from the prior 12 months is primarily as a result of prices of extra personnel, techniques prices and different administrative bills added at the side of the properties we acquired from Will Vitality and White Star, which greater than tripled our manufacturing base. Recurring Money G&A bills (outlined as Recurring G&A bills unique of non-cash stock-based compensation of $1.9 million and $0.2 million for the respective present and prior-year quarters) had been $4.8 million for the present quarter, in comparison with $4.5 million for the prior 12 months quarter.

Acquire from our funding in associates (i.e., Exaro Vitality III (“Exaro”)) for the three months ended December 31, 2020 was roughly $40,000, in comparison with $0.9 million for the three months ended December 31, 2019.

Loss on derivatives for the three months ended December 31, 2020 was roughly $2.9 million. Of this quantity, $5.8 million was non-cash, unrealized mark-to-market losses attributable to enchancment in benchmark commodity costs on the finish of the present quarter in comparison with the benchmark costs on the finish of the third quarter of 2020, offset partly by $2.9 million in realized positive factors on by-product settlements in the course of the present quarter. Loss on derivatives for the three months ended December 31, 2019 was roughly $4.4 million, of which $4.9 million was non-cash, unrealized mark-to-market losses, whereas the remaining $0.5 million had been realized positive factors.

2020/2021 Capital Program & Capital Sources

Capital prices for the three months ended December 31, 2020 had been roughly $0.4 million, of which $0.3 million was associated to prices and evaluations of potential offshore exploratory prospects.

Our 2021 capital expenditure price range is at the moment deliberate to be between $13 – $16 million for capital workovers, facility upgrades, waterflood improvement and chosen new properly drills; nevertheless, as a consequence of our ongoing analysis of future improvement for our just lately acquired properties from the Mid-Con Acquisition and the Silvertip Acquisition, and the regulatory and operational elements being thought-about in creating a timeline for our subsequent properly in our GOM program, our capital expenditure program will proceed to be evaluated for revision in the course of the 12 months. We consider that we are going to have the monetary sources to extend the at the moment deliberate 2021 capital expenditure price range, when and if deemed acceptable, together with because of modifications in commodity costs, financial situations or operational elements.

As of December 31, 2020, we had roughly $9.0 million excellent below the Firm’s Credit score Settlement, $1.9 million in an impressive letter of credit score and $1.4 million in money. The borrowing base was $75 million as of December 31, 2020, with a borrowing availability of $64.1 million.

On October 25, 2020, the Firm and Mid-Con entered into the Settlement and Plan of Merger for the Mid-Con Acquisition offering for the Firm’s acquisition of Mid-Con in an all-stock merger transaction wherein Mid-Con turned a direct, wholly owned subsidiary of Contango. The Mid-Con Acquisition closed on January 21, 2021 at which era the MSA with Mid-Con was terminated. A complete of 25,409,164 shares of Contango frequent inventory had been issued on the closing of the Mid-Con acquisition. Concurrently with the announcement of the Mid-Con Acquisition, we introduced the execution of an settlement with a choose group of institutional and accredited traders to promote 26,451,988 shares of the Firm’s frequent inventory. On October 27, 2020, we accomplished the non-public placement providing for internet proceeds of roughly $38.8 million. The proceeds had been used for the Mid-Con Acquisition and for basic company functions, together with the compensation of debt excellent below our Credit score Settlement. See Word 1 – “Group and Enterprise” and Word 4 – “Acquisitions and Inclinations” in our just lately filed Type 10-Okay for the 12 months ended December 31, 2020 for additional info.

On October 30, 2020, we entered into the Third Modification to the Credit score Settlement (the “Third Modification”) below which the Firm’s borrowing base was elevated from $75 million to $130 million, efficient upon the closing of the Mid-Con Acquisition. The Third Modification supplies for, amongst different issues, a $10 million automated discount within the borrowing base on March 31, 2021. The following repeatedly scheduled borrowing base redetermination is on or earlier than Might 1, 2021. The borrowing base can also be adjusted by sure occasions, together with the incurrence of any senior unsecured debt, materials asset inclinations or liquidation of hedges in extra of sure thresholds. The Credit score Settlement matures on September 17, 2024. See Word 13 – “Lengthy-Time period Debt” in our just lately filed Type 10-Okay for the 12 months ended December 31, 2020 for additional info.

On November 27, 2020, we entered right into a Buy and Sale Settlement with an undisclosed vendor for the Silvertip Acquisition offering for the acquisition of sure oil and pure fuel properties situated within the Massive Horn Basin in Wyoming and Montana, on the Powder River Basin in Wyoming, and within the Permian Basin in Texas and New Mexico. The acquisition closed on February 1, 2021. See Word 4 – “Acquisitions and Inclinations” in our just lately filed Type 10-Okay for the 12 months ended December 31, 2020 for additional info.

On December 1, 2020, we accomplished one other non-public placement of 14,193,903 shares of the Firm’s frequent inventory for internet proceeds of roughly $21.7 million. The web proceeds had been used to fund the Silvertip Acquisition and for basic company functions, together with the compensation of debt excellent below our Credit score Settlement. See Word 1 – “Group and Enterprise” in our just lately filed Type 10-Okay for the 12 months ended December 31, 2020 for additional info.

2020 Yr Finish Reserves

As of December 31, 2020, the Standardized Measure of Discounted Future Web Money Flows (“Standardized Measure”) of our proved reserves was roughly $115.6 million, and the PV-10 worth (Non-GAAP) of our proved reserves was roughly $126.4 million, in comparison with the Standardized Measure worth of $257.8 million and PV-10 worth of $286.6 million as of December 31, 2019, a lower primarily attributable to decrease commodity costs and the gross sales of non-core producing belongings The Securities and Change Fee (“SEC”) mandated costs utilized in figuring out our December 31, 2020 proved reserves and PV-10 worth had been $39.57 per Bbl of oil and condensate and $2.14 per MMBtu for pure fuel, in contrast with SEC costs of $55.69 per Bbl for oil and condensate and $2.52 per MMMbtu for pure fuel utilized in estimating proved reserves as of December 31, 2019.

As of December 31, 2020, our unbiased third-party engineering corporations estimated our proved oil and pure fuel reserves to be roughly 34.2 MMBoe in contrast with 52.7 MMBoe of proved reserves as of December 31, 2019. The lower in proved reserves is primarily as a consequence of a 21.1 MMBoe lower associated to destructive revisions associated to decrease commodity costs, a 1.0 MMBoe lower associated to property gross sales in our Central Oklahoma and Western Anadarko areas and 2020 manufacturing of 6.1 MMBoe, partially offset by a 7.5 MMBoe enhance associated to optimistic efficiency revisions primarily in our Central Oklahoma and West Texas areas and a 2.3 MMBoe enhance attributable to new PUD areas in our West Texas space.

On the finish of 2020, the composition of our proved reserves, volumetrically, was 38% oil and condensate, 41% pure fuel and 21% pure fuel liquids, in comparison with 36% oil and condensate, 42% pure fuel and 22% pure fuel liquids at December 31, 2019. These estimates had been ready in accordance with reserve reporting tips mandated by the SEC.

Our proved developed reserves for the 12 months ended December 31, 2020 had been estimated at 27.6 MMBoe, in comparison with 40.8 MMBoe within the prior 12 months. The lower in proved developed reserves is primarily attributable to destructive revisions associated to decrease commodity costs of 9.8 MMBoe and 2020 manufacturing of 6.1 MMBoe, partially offset by optimistic performance-related revisions associated in our Central Oklahoma properties.

Our proved undeveloped reserves (“PUD”) for the 12 months ended December 31, 2020 had been 6.7 MMBoe, in comparison with 12.0 MMBoe at December 31, 2019. The lower in PUD reserves was primarily attributable to 11.4 MMBoe in destructive price-related revisions, partially offset by a 4.3 MMBoe optimistic efficiency revision and a pair of.3 MMBoe of recent additions, each of which relate to properties in our West Texas area.

The next desk summarizes Contango’s whole proved reserves as of December 31, 2020 (1):

                      Current Worth
    Oil   Fuel   NGL   Complete     Discounted
Class   (MBbl)   (MMcf)   (MBbl)   (MBoe)     at 10% ($000) (2)
Developed   7,166   82,788   6,595   27,558   $ 112,103
Undeveloped   5,838   1,694   559   6,680     14,273
Complete Proved   13,004   84,482   7,154   34,238   $ 126,376
(2) The above estimates don’t embrace internet proved reserves of roughly 2.6 MMBoe attributable to our 37% fairness possession funding in Exaro as of December 31, 2020.
(3) PV-10 is a non-GAAP measure. Please see beneath for a definition and reconciliation to Standardized Measure.

By-product Devices

As of December 31, 2020, we had the next monetary by-product contracts in place with members of our financial institution group or third-party counterparties below an unsecured line of credit score with no margin name provisions.

Commodity   Interval   By-product   Quantity/Month   Worth/Unit
Oil   Jan 2021 – March 2021   Swap   19,000   Bbls   $ 50.00 (1)
                             
Oil   April 2021 – July 2021   Swap   12,000   Bbls   $ 50.00 (1)
Oil   Aug 2021 – Sept 2021   Swap   10,000   Bbls   $ 50.00 (1)
                             
Oil   Jan 2021 – July 2021   Swap   62,000   Bbls   $ 52.00 (1)
Oil   Aug 2021 – Sept 2021   Swap   55,000   Bbls   $ 52.00 (1)
Oil   Oct 2021 – Dec 2021   Swap   64,000   Bbls   $ 52.00 (1)
                         
Oil   April 2022 – Oct 2022   Swap   25,000   Bbls   $ 42.04 (1)
                         
Pure Fuel   Jan 2021 – March 2021   Swap   185,000   MMBtus   $ 2.505 (2)
Pure Fuel   April 2021 – July 2021   Swap   120,000   MMBtus   $ 2.505 (2)
Pure Fuel   Aug 2021 – Sept 2021   Swap   10,000   MMBtus   $ 2.505 (2)
                         
Pure Fuel   Jan 2021 – March 2021   Swap   185,000   MMBtus   $ 2.508 (2)
Pure Fuel   April 2021 – July 2021   Swap   120,000   MMBtus   $ 2.508 (2)
Pure Fuel   Aug 2021 – Sept 2021   Swap   10,000   MMBtus   $ 2.508 (2)
                         
Pure Fuel   Jan 2021 – March 2021   Swap   650,000   MMBtus   $ 2.508 (2)
Pure Fuel   April 2021 – Oct 2021   Swap   400,000   MMBtus   $ 2.508 (2)
Pure Fuel   Nov 2021 – Dec 2021   Swap   580,000   MMBtus   $ 2.508 (2)
                         
Pure Fuel   April 2021 – Nov 2021   Swap   70,000   MMBtus   $ 2.36 (2)
                             
Pure Fuel   Dec 2021   Swap   350,000   MMBtus   $ 2.36 (2)
                         
Pure Fuel   Jan 2022 – March 2022   Swap   780,000   MMBtus   $ 2.542 (2)
                         
Pure Fuel   April 2022 – July 2022   Swap   650,000   MMBtus   $ 2.515 (2)
Pure Fuel   Aug 2022 – Oct 2022   Swap   350,000   MMBtus   $ 2.515 (2)
                         
Pure Fuel   Jan 2022 – March 2022   Swap   250,000   MMBtus   $ 3.149 (2)

______________________
(1) Primarily based on West Texas Intermediate crude oil costs.
(2) Primarily based on Henry Hub NYMEX pure fuel costs.

Along side the closing of the Mid-Con Acquisition in January 2021, we acquired the next extra by-product contracts by way of novation from Mid-Con:

Commodity   Interval   By-product   Quantity/Month   Worth/Unit
Oil   Jan 2021   Swap   20,883   Bbls   $ 55.78 (1)
Oil   Feb 2021   Swap   20,804   Bbls   $ 55.78 (1)
Oil   March 2021   Swap   20,725   Bbls   $ 55.78 (1)
Oil   April 2021   Swap   20,647   Bbls   $ 55.78 (1)
Oil   Might 2021   Swap   20,563   Bbls   $ 55.78 (1)
Oil   June 2021   Swap   20,487   Bbls   $ 55.78 (1)
Oil   July 2021   Swap   20,412   Bbls   $ 55.78 (1)
Oil   Aug 2021   Swap   20,301   Bbls   $ 55.78 (1)
Oil   Sept 2021   Swap   20,228   Bbls   $ 55.78 (1)
Oil   Oct 2021   Swap   20,155   Bbls   $ 55.78 (1)
Oil   Nov 2021   Swap   20,084   Bbls   $ 55.78 (1)
Oil   Dec 2021   Swap   20,012   Bbls   $ 55.78 (1)
                             
Oil   Jan 2021   Collar   20,883   Bbls   $ 52.00 58.80 (1)
Oil   Feb 2021   Collar   20,804   Bbls   $ 52.00 58.80 (1)
Oil   March 2021   Collar   20,725   Bbls   $ 52.00 58.80 (1)
Oil   April 2021   Collar   20,647   Bbls   $ 52.00 58.80 (1)
Oil   Might 2021   Collar   20,563   Bbls   $ 52.00 58.80 (1)
Oil   June 2021   Collar   20,487   Bbls   $ 52.00 58.80 (1)
Oil   July 2021   Collar   20,412   Bbls   $ 52.00 58.80 (1)
Oil   Aug 2021   Collar   20,301   Bbls   $ 52.00 58.80 (1)
Oil   Sept 2021   Collar   20,228   Bbls   $ 52.00 58.80 (1)
Oil   Oct 2021   Collar   20,155   Bbls   $ 52.00 58.80 (1)
Oil   Nov 2021   Collar   20,084   Bbls   $ 52.00 58.80 (1)
Oil   Dec 2021   Collar   20,012   Bbls   $ 52.00 58.80 (1)

__________________
(1) Primarily based on West Texas Intermediate crude oil costs.

Within the first quarter of 2021, we entered into the next extra by-product contracts:

Commodity   Interval   By-product   Quantity/Month   Worth/Unit
Oil   March 2021 – Oct 2021   Swap   25,000   Bbls   $ 54.77 (1)
Oil   Nov 2021 – Dec 2021   Swap   15,000   Bbls   $ 54.77 (1)
                         
Oil   March 2021   Swap   50,000   Bbls   $ 63.31 (1)
Oil   April 2021   Swap   50,000   Bbls   $ 63.13 (1)
Oil   Might 2021   Swap   50,000   Bbls   $ 62.71 (1)
Oil   June 2021   Swap   50,000   Bbls   $ 62.17 (1)
Oil   July 2021   Swap   50,000   Bbls   $ 61.50 (1)
Oil   Aug 2021   Swap   50,000   Bbls   $ 60.94 (1)
Oil   Sep 2021   Swap   50,000   Bbls   $ 60.38 (1)
Oil   Oct 2021   Swap   50,000   Bbls   $ 59.89 (1)
Oil   Nov 2021   Swap   50,000   Bbls   $ 59.46 (1)
Oil   Dec 2021   Swap   50,000   Bbls   $ 59.01 (1)
                         
Oil   Jan 2022   Swap   60,000   Bbls   $ 52.94 (1)
Oil   Feb 2022   Swap   60,000   Bbls   $ 52.65 (1)
Oil   March 2022   Swap   60,000   Bbls   $ 52.29 (1)
Oil   April 2022   Swap   47,500   Bbls   $ 51.98 (1)
Oil   Might 2022   Swap   45,000   Bbls   $ 51.71 (1)
Oil   June 2022   Swap   45,000   Bbls   $ 51.41 (1)
Oil   July 2022   Swap   45,000   Bbls   $ 51.13 (1)
Oil   Aug 2022   Swap   45,000   Bbls   $ 50.89 (1)
Oil   Sep 2022   Swap   45,000   Bbls   $ 50.65 (1)
Oil   Oct 2022   Swap   45,000   Bbls   $ 50.45 (1)
Oil   Nov 2022   Swap   55,000   Bbls   $ 50.26 (1)
Oil   Dec 2022   Swap   55,000   Bbls   $ 50.22 (1)
Oil   Jan 2023   Swap   57,500   Bbls   $ 49.81 (1)
Oil   Feb 2023   Swap   57,500   Bbls   $ 49.63 (1)
                             
Oil   Jan 2022   Swap   60,000   Bbls   $ 52.96 (1)
Oil   Feb 2022   Swap   60,000   Bbls   $ 52.66 (1)
Oil   March 2022   Swap   60,000   Bbls   $ 52.27 (1)
Oil   April 2022   Swap   47,500   Bbls   $ 51.96 (1)
Oil   Might 2022   Swap   45,000   Bbls   $ 51.72 (1)
Oil   June 2022   Swap   45,000   Bbls   $ 51.42 (1)
Oil   July 2022   Swap   45,000   Bbls   $ 51.13 (1)
Oil   Aug 2022   Swap   45,000   Bbls   $ 50.90 (1)
Oil   Sep 2022   Swap   45,000   Bbls   $ 50.66 (1)
Oil   Oct 2022   Swap   45,000   Bbls   $ 50.47 (1)
Oil   Nov 2022   Swap   55,000   Bbls   $ 50.26 (1)
Oil   Dec 2022   Swap   55,000   Bbls   $ 50.01 (1)
Oil   Jan 2023   Swap   57,500   Bbls   $ 49.79 (1)
Oil   Feb 2023   Swap   57,500   Bbls   $ 49.62 (1)
                             
Pure Fuel   March 2021   Swap   100,000   MMBtus   $ 2.96 (2)
Pure Fuel   April 2021 – July 2021   Swap   350,000   MMBtus   $ 2.96 (2)
Pure Fuel   Aug 2021 – Oct 2021   Swap   500,000   MMBtus   $ 2.96 (2)
Pure Fuel   Nov 2021   Swap   450,000   MMBtus   $ 2.96 (2)
                             
Pure Fuel   April 2022   Swap   175,000   MMBtus   $ 2.51 (2)
Pure Fuel   Might 2022 – July 2022   Swap   150,000   MMBtus   $ 2.51 (2)
Pure Fuel   Aug 2022 – Oct 2022   Swap   400,000   MMBtus   $ 2.51 (2)
                             
Pure Fuel   Nov 2022 – Feb 2023   Swap   750,000   MMBtus   $ 2.72 (2)

________________________
(1) Primarily based on West Texas Intermediate crude oil costs.
(2) Primarily based on Henry Hub NYMEX pure fuel costs.

Chosen Monetary and Working Information

The next desk displays sure comparative monetary and working knowledge for the three and twelve months ended December 31, 2020 and 2019:

  Three Months Ended   Yr ended
  December 31,    December 31, 
  2020   2019   %   2020   2019   %
Offshore Volumes Bought:                              
Oil and condensate (MBbls)   7     11   (36 )%     32     43   (26 )%
Pure fuel (MMcf)   1,113     1,402   (21 )%     4,962     5,908   (16 )%
Pure fuel liquids (MBbls)   39     46   (15 )%     127     210   (40 )%
Thousand barrels of oil equal (MBoe)   232     290   (20 )%     986     1,237   (20 )%
                               
Onshore Volumes Bought:                              
Oil and condensate (MBbls)   358     396   (10 )%     1,642     748   120 %
Pure fuel (MMcf)   2,786     2,741   2 %     14,005     3,615   287 %
Pure fuel liquids (MBbls)   267     301   (11 )%     1,135     402   182 %
Thousand barrels of oil equal (MBoe)   1,089     1,154   (6 )%     5,111     1,753   192 %
                               
Complete Volumes Bought:                              
Oil and condensate (MBbls)   365     407   (10 )%     1,674     791   112 %
Pure fuel (MMcf)   3,899     4,143   (6 )%     18,967     9,523   99 %
Pure fuel liquids (MBbls)   306     347   (12 )%     1,262     612   106 %
Thousand barrels of oil equal (MBoe)   1,321     1,444   (9 )%     6,097     2,990   104 %
                               
Every day Gross sales Volumes:                              
Oil and condensate (MBbls)   4.0     4.4   (5 )%     4.6     2.2   113 %
Pure fuel (MMcf)   42.4     45.0   (7 )%     51.8     26.1   99 %
Pure fuel liquids (MBbls)   3.3     3.8   8 %     3.4     1.7   98 %
Thousand barrels of oil equal (MBoe)   14.4     15.7   (9 )%     16.7     8.2   100 %
                               
Common gross sales costs:                              
Oil and condensate (per Bbl) $ 39.30   $ 57.93   (32 )%   $ 37.31   $ 56.55   (34 )%
Pure fuel (per Mcf) $ 2.22   $ 2.07   7 %   $ 1.65   $ 2.35   (30 )%
Pure fuel liquids (per Bbl) $ 16.86   $ 14.50   16 %   $ 13.54   $ 15.39   (12 )%
Complete (per Boe) $ 21.32   $ 25.75   (17 )%   $ 18.19   $ 25.59   (29 )%
  Three Months Ended   Yr Ended
  December 31,    December 31, 
  2020     2019     %   2020     2019     %
Offshore Chosen Prices ($ per Boe)                              
Working bills (1) $ 4.50     $ 5.22     (14 )%   $ 5.68     $ 5.13     11 %
Manufacturing and advert valorem taxes $ 0.47     $ 0.36     31 %   $ 0.38     $ 0.43     (12 )%
                               
Onshore Chosen Prices ($ per Boe)                              
Working bills (1) $ 13.24     $ 11.67     13 %   $ 12.04     $ 13.26     (9 )%
Manufacturing and advert valorem taxes $ 1.37     $ 1.56     (12 )%   $ 1.04     $ 1.75     (41 )%
                               
Common Chosen Prices ($ per Boe)                              
Working bills (1) $ 11.72     $ 10.38     13 %   $ 11.01     $ 9.91     11 %
Manufacturing and advert valorem taxes $ 1.22     $ 1.32     (8 )%   $ 0.94     $ 1.21     (22 )%
Normal and administrative expense (money) $ 4.38     $ 6.54     (33 )%   $ 3.39     $ 7.55     (55 )%
Curiosity expense $ 0.45     $ 3.76     (88 )%   $ 0.82     $ 2.87     (71 )%
                               
Web Loss (1000’s) $ (25,248 )   $ (138,379 )       $ (165,342 )   $ (159,796 )    
                               
Adjusted EBITDAX (2) (1000’s) $ 11,270     $ 12,270         $ 48,206     $ 23,859      
                               
Weighted Common Shares Excellent (1000’s)                              
Primary   155,480       105,215           137,522       54,136      
Diluted   155,480       105,215           137,522       54,136      

_____________________________
(1) Working expense consists of direct lease working bills, transportation and workover bills.
(2) Adjusted EBITDAX is a non-GAAP monetary measure. See beneath for reconciliation to internet loss.

CONTANGO OIL & GAS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in 1000’s)

  December 31,    December 31, 
  2020   2019
ASSETS          
Money and money equivalents $ 1,383   $ 1,624
Accounts receivable, internet   37,862     39,567
Present by-product asset   2,996     3,819
Different present belongings   4,565     1,377
Web property and tools   101,903     291,120
Non-current belongings   21,558     16,319
           
TOTAL ASSETS $ 170,267   $ 353,826
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Accounts payable and accrued liabilities   83,970     104,593
Different present liabilities   5,566     5,954
Lengthy-term debt   12,369     72,768
Asset retirement obligations   2,624     49,662
Different non-current liabilities   50,171     4,809
Complete shareholders’ fairness   15,567     116,040
           
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY $ 170,267   $ 353,826

CONTANGO OIL & GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in 1000’s)

  Three Months Ended   Yr Ended
  December 31,    December 31, 
  2020     2019     2020     2019  
                       
  (unaudited)
REVENUES                      
Oil and condensate gross sales $ 14,334     $ 23,579     $ 62,461     $ 44,705  
Pure fuel gross sales   8,663       8,588       31,381       22,380  
Pure fuel liquids gross sales   5,160       5,025       17,078       9,427  
Payment for service revenues   1,000             2,000        
Complete revenues   29,157       37,192       112,920       76,512  
                       
EXPENSES                      
Working bills   17,071       16,884       72,847       33,205  
Exploration bills   250       312       11,594       1,003  
Depreciation, depletion and amortization   5,901       16,204       30,032       39,807  
Impairment and abandonment of oil and fuel properties   22,877       125,120       168,802       128,290  
Normal and administrative bills   7,672       9,598       24,940       24,938  
Complete bills   53,771       168,118       308,215       227,243  
                       
OTHER INCOME (EXPENSE)                      
Acquire from funding in associates, internet of earnings taxes   40       893       27       742  
Acquire (loss) from sale of belongings   30       (83 )     4,501       518  
Curiosity expense   (601 )     (5,428 )     (5,022 )     (8,596 )
Acquire (loss) on derivatives, internet   (2,941 )     (4,425 )     27,585       (3,357 )
Different earnings   2,154       1,326       3,609       1,848  
Complete different earnings (expense)   (1,318 )     (7,717 )     30,700       (8,845 )
                       
NET LOSS BEFORE INCOME TAXES   (25,932 )     (138,643 )     (164,595 )     (159,576 )
                       
Earnings tax provision (profit)   684       264       (747 )     (220 )
                       
NET LOSS $ (25,248 )   $ (138,379 )   $ (165,342 )   $ (159,796 )

Non-GAAP Monetary Measures

This information launch consists of sure non-GAAP monetary info as outlined by SEC guidelines. Pursuant to SEC necessities, reconciliations of non-GAAP monetary measures to probably the most immediately comparable monetary measures calculated and offered in accordance with usually accepted accounting ideas (GAAP) are included on this press launch.

Adjusted EBITDAX represents internet earnings (loss) earlier than curiosity expense, taxes, depreciation, depletion and amortization, and oil and fuel exploration bills (“EBITDAX”) as additional adjusted to replicate the gadgets set forth within the desk beneath and is a measure required for use in figuring out our compliance with monetary covenants below our credit score facility. Recurring Adjusted EBITDAX represents Adjusted EBITDAX unique of non-recurring enterprise mixture and strategic advisory charges and authorized judgments.

Now we have included Adjusted EBITDAX on this launch to supply traders with a supplemental measure of our working efficiency and details about the calculation of a number of the monetary covenants which might be contained in our credit score settlement. We consider Adjusted EBITDAX is a vital supplemental measure of working efficiency as a result of it eliminates gadgets which have much less bearing on our working efficiency and subsequently highlights developments in our core enterprise that will not in any other case be obvious when relying solely on GAAP monetary measures. We additionally consider that securities analysts, traders and different events regularly use Adjusted EBITDAX within the analysis of corporations, lots of which current Adjusted EBITDAX when reporting their outcomes. Adjusted EBITDAX is a fabric part of the covenants which might be imposed on us by our credit score settlement. We’re topic to monetary covenant ratios which might be calculated by reference to Adjusted EBITDAX. Non-compliance with the monetary covenants contained in our credit score settlement might lead to a default, an acceleration within the compensation of quantities excellent and a termination of lending commitments. Our administration and exterior customers of our monetary statements, corresponding to traders, industrial banks, analysis analysts and others, additionally use Adjusted EBITDAX to evaluate:

  • the monetary efficiency of our belongings with out regard to financing strategies, capital construction or historic price foundation;
  • the power of our belongings to generate money enough to pay curiosity prices and assist our indebtedness;
  • our working efficiency and return on capital as in comparison with these of different corporations in our {industry}, with out regard to financing or capital construction; and
  • the feasibility of acquisitions and capital expenditure tasks and the general charges of return on various funding alternatives.

The next desk reconciles internet loss to EBITDAX and Adjusted EBITDAX and Recurring Adjusted EBITDAX for the intervals offered:

  Three Months Ended   Yr Ended
  December 31,    December 31, 
  2020     2019     2020     2019  
                       
  (in 1000’s)
Web loss $ (25,248 )   $ (138,379 )   $ (165,342 )   $ (159,796 )
Curiosity expense   601       5,428       5,022       8,596  
Earnings tax provision (profit)   (684 )     (264 )     747       220  
Depreciation, depletion and amortization   5,901       16,204       30,032       39,807  
Impairment of oil and fuel properties   22,794       124,718       168,732       126,964  
Exploration expense   250       312       11,594       1,003  
EBITDAX $ 3,614     $ 8,019     $ 50,785     $ 16,794  
                       
Unrealized loss (achieve) on by-product devices $ 5,834     $ 4,905     $ (2,321 )   $ 5,973  
Non-cash stock-based compensation costs   1,892       158       4,270       2,352  
Loss (achieve) on sale of belongings and funding in associates   (70 )     (812 )     (4,528 )     (1,260 )
Adjusted EBITDAX $ 11,270     $ 12,270     $ 48,206     $ 23,859  
                       
Non-recurring enterprise mixture bills and strategic charges $ 1,752     $ 2,347     $ 4,380     $ 4,177  
Non-recurring authorized judgments   (806 )     2,839       (560 )     4,973  
Recurring Adjusted EBITDAX $ 12,216     $ 17,456     $ 52,026     $ 33,009  

Along with Adjusted EBITDAX and Recurring Adjusted EBITDAX, we might present extra non-GAAP monetary measures, together with Working bills unique of manufacturing and advert valorem taxes, Recurring G&A bills and Recurring Money G&A bills, as a result of our administration believes offering traders with this info offers extra insights into our profitability, money flows and bills.

Adjusted EBITDAX, Recurring Adjusted EBITDAX and different non-GAAP measures on this launch usually are not shows made in accordance with usually accepted accounting ideas, or GAAP. As mentioned above, we consider that the presentation of non-GAAP monetary measures on this launch is acceptable. Nonetheless, when evaluating our outcomes, you shouldn’t contemplate the non-GAAP monetary measures in isolation of, or as an alternative to, measures of our monetary efficiency as decided in accordance with GAAP, corresponding to internet loss. For instance, Adjusted EBITDAX has materials limitations as a efficiency measure as a result of it excludes gadgets which might be essential parts of our prices and operations. As a result of different corporations might calculate Adjusted EBITDAX in a different way than we do, Adjusted EBITDAX as offered on this launch isn’t, corresponding to similarly-titled measures reported by different corporations.

PV 10

PV-10 at year-end is a non-GAAP monetary measure and represents the current worth, discounted at 10% per 12 months, of estimated future money inflows from proved oil and pure fuel reserves, much less future improvement and manufacturing prices utilizing pricing assumptions in impact on the finish of the interval. PV-10 differs from Standardized Measure of Discounted Web Money Flows as a result of it doesn’t embrace the results of earnings taxes on future internet revenues. Neither PV-10 nor Standardized Measure of Discounted Web Money Flows represents an estimate of honest market worth of our oil and pure fuel properties. PV-10 is utilized by the {industry} and by our administration as an arbitrary reserve asset worth measure to check in opposition to previous reserve bases and the reserve bases of different enterprise entities that aren’t depending on the taxpaying standing of the entity.

The next desk supplies a reconciliation of our Standardized Measure to PV-10 (in 1000’s):

  December 31,
  2020   2019
Standardized measure of discounted future internet money flows $ 115,587   $ 257,842
Future earnings taxes, discounted at 10%   10,789     28,711
Pre-tax internet current worth, discounted at 10% $ 126,376   $ 286,553

Steering for the First Quarter 2021

Manufacturing gross sales 19,000 – 21,000 Boe per day
   
LOE (together with transportation and workovers) $22.0 million – $25.0 million
   
Recurring Money G&A (non-GAAP) $6.0 million – $7.0 million
   

The primary quarter steerage consists of properties acquired within the Mid-Con Acquisition and Silvertip Acquisition, prorated from the deadlines of January 21, 2021 and February 1, 2021, respectively.

We don’t present a reconciliation of Recurring Money G&A expense steerage to the corresponding GAAP measure as a result of we’re unable to foretell with cheap certainty the non-cash inventory primarily based compensation expense and non-recurring bills related to our strategic initiatives with out unreasonable effort. These things are unsure and rely on numerous elements and usually are not anticipated to be materials to the outcomes computed in accordance with GAAP.

Teleconference Name

Contango administration will maintain a convention name to debate the knowledge described on this press launch on Wednesday, March 10, 2021 at 8:00 am Central Normal Time. A quick presentation associated to sure gadgets to be mentioned on the decision will likely be posted to the Firm’s web site at ir.contango.com previous to the decision. These thinking about collaborating within the earnings convention name might accomplish that by clicking right here to affix and coming into your info to be related. The hyperlink turns into lively quarter-hour previous to the scheduled begin time, and the convention will name you. If you’re not at a pc, you’ll be able to be a part of by dialing +1 (323)-347-3622 (Worldwide 800-309-1256) and coming into participation code 898661. A replay of the decision will likely be obtainable Thursday, March 11, 2021 by way of Thursday, March 18, 2021 by clicking right here.

About Contango Oil & Fuel Firm

Contango Oil & Fuel Firm is a Fort Price, Texas primarily based, unbiased oil and pure fuel firm whose enterprise is to maximise manufacturing and money circulate from its offshore properties within the shallow waters of the Gulf of Mexico and onshore properties primarily situated in Oklahoma, Texas, Wyoming and Louisiana and, when decided acceptable, to make use of that money circulate to discover, develop, and enhance manufacturing from its current properties, to amass extra PDP-heavy crude oil and pure fuel properties or to pay down debt. Extra info is offered on the Firm’s web site at http://contango.com. Data on our web site isn’t a part of this launch.

Ahead-Trying Statements and Cautionary Statements

This press launch incorporates forward-looking statements inside the which means of Part 27A of the Securities Act of 1933, and Part 21E of the Securities Change Act of 1934, as amended. These statements are primarily based on Contango’s present expectations and embrace statements relating to our estimates of future manufacturing and different steerage (together with info relating to manufacturing, lease working bills, money G&A bills, and DD&A Charge), the Firm’s integration of and future plans for its just lately closed Mid-Con Acquisition and Silvertip Acquisition, the Firm’s drilling program and capital expenditures and the potential success associated to these expenditures, our liquidity and entry to capital, anticipated discount in general drilling prices, lease working price and G&A prices, the potential affect of the COVID-19 pandemic together with diminished demand for oil and pure fuel, the low and risky commodity value surroundings, the Firm’s new charge for providers platform, the affect of our by-product devices, the accuracy of our projections of future manufacturing, future outcomes of operations, skill to determine and full acquisitions, skill to appreciate anticipated advantages of acquisitions the standard and nature of the asset base, the assumptions upon which estimates are primarily based and different expectations, beliefs, plans, aims, assumptions, methods or statements about future occasions or efficiency. Phrases and phrases used to determine our forward-looking statements embrace phrases corresponding to “steerage”, “expects”, “tasks”, “anticipates”, “believes”, “plans”, “estimates”, “potential”, “doable”, “possible”, “intends”, “forecasts”, “view”, “efforts”, “objective”, “positions” or phrases and phrases stating that sure actions, occasions or outcomes “might”, “will”, “ought to”, or “might” be taken, happen or be achieved. Statements regarding oil and fuel reserves additionally could also be deemed to be forward-looking statements in that they replicate estimates primarily based on sure assumptions that the sources concerned will be economically exploited. Ahead-looking statements are primarily based on present expectations, estimates and projections that contain various dangers and uncertainties, which might trigger precise outcomes to vary materially from these mirrored within the statements. These dangers embrace, however usually are not restricted to: the dangers of the oil and fuel {industry} (for instance, operational dangers in exploring for, creating and producing crude oil and pure fuel; dangers and uncertainties involving geology of oil and fuel deposits; the uncertainty of reserve estimates; the uncertainty of estimates and projections referring to future manufacturing, prices and bills; potential delays or modifications in plans with respect to exploration or improvement tasks or capital expenditures; well being, security and environmental dangers and dangers associated to climate corresponding to hurricanes and different pure disasters); dangers associated to our latest Silvertip Acquisition and Mid-Con Acquisition, together with the danger that the anticipated advantages from these acquisitions will not be absolutely realized or might take longer to appreciate than anticipated, and that administration consideration will likely be diverted to integration-related points; dangers associated to the affect of the local weather change initiative by President Biden’s administration and Congress, together with, for example, the January 2021 govt order imposing a moratorium on new oil and pure fuel leasing on federal lands and offshore waters pending completion of a complete overview and reconsideration of federal oil and pure fuel allowing and leasing practices; uncertainties as to the supply and value of financing; {our relationships} with lenders; our skill to adjust to monetary covenants in our debt devices, repay indebtedness and entry new sources of indebtedness and/or present extra liquidity for future capital expenditures; any discount in our borrowing base and our skill to keep away from or repay extra borrowings because of such discount; our skill to execute on our technique, together with execution of acquisitions, any modifications in our technique or our charge for service platform; fluctuations in or sustained low commodity costs; availability and impact of storage of manufacturing; anticipated advantages of and dangers related to by-product positions; our skill to appreciate price financial savings; our skill to execute on and notice anticipated worth from acquisitions and to finish strategic inclinations of belongings and notice the advantages of such inclinations; the necessity to take impairments on properties as a consequence of decrease commodity costs; the restricted buying and selling quantity of our frequent inventory and basic buying and selling market volatility; outbreaks and pandemics, even exterior our areas of operation, together with COVID-19; the affect of the COVID-19 pandemic, together with diminished demand for oil and pure fuel, financial slowdown, governmental and societal actions taken in response to the COVID-19 pandemic, stay-at-home orders and interruptions to our operations; the power of our administration staff to execute its plans or to fulfill its targets; shortages of drilling tools, oil subject personnel and providers; unavailability of gathering techniques, pipelines and processing amenities; the likelihood that authorities insurance policies might change or governmental approvals could also be delayed or withheld; and the opposite elements mentioned in our experiences filed or furnished with the SEC, together with below the “Danger Components” heading in our annual report on Type 10-Okay for the 12 months ended December 31, 2020 and our quarterly experiences on Type 10-Q filed with the SEC. Extra info on these and different elements, lots of which can be unknown or unpredictable at the moment, which might have an effect on Contango’s operations or monetary outcomes are included in Contango’s experiences on file with the SEC. Buyers are cautioned that any forward-looking statements usually are not ensures of future efficiency and precise outcomes or developments might differ materially from the projections within the forward-looking statements. Ahead-looking statements communicate solely as of the date they had been made and are primarily based on the estimates and opinions of administration on the time the statements are made. Contango doesn’t assume any obligation to replace forward-looking statements ought to circumstances or administration’s estimates or opinions change, besides as required by legislation. Preliminary manufacturing charges are topic to say no over time and shouldn’t be considered reflective of sustained manufacturing ranges. Preliminary manufacturing charges of wells and preliminary indications of formation efficiency or the advantages of any transaction usually are not essentially indicative of future or long-term outcomes. Reserves and PV-10 usually are not essentially consultant of future money flows and manufacturing.

 
Contact:
Contango Oil & Fuel Firm
E. Joseph Grady – 713-236-7400
Senior Vice President and Chief Monetary and Accounting Officer

Supply hyperlink

Leave a Reply

Your email address will not be published.