EX-99.1 2 pressrelease-2q2019.htm EXHIBIT 99.1 Exhibit



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BRIGHAM MINERALS, INC.
REPORTS RECORD SECOND QUARTER 2019 OPERATING AND FINANCIAL RESULTS

AUSTIN, Texas - (BUSINESS WIRE) - August 8, 2019 - 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, 2019, as well as recent developments.

OPERATING AND FINANCIAL HIGHLIGHTS AND RECENT DEVELOPMENTS
•
Record Q2 2019 daily production volumes totaling 6,768 boe/d (71% liquids, 56% oil)
◦
Up 26% sequentially from Q1 2019 and up 82% from Q2 2018
•
Record Q2 2019 mineral and royalty revenues totaling $23 million
◦
Up 31% sequentially from Q1 2019 and up 59% from Q2 2018
•
Q2 2019 net loss totaling $3.2 million and Adjusted Net Income(1) of $3.7 million after adding back loss on extinguishment of debt
•
Q2 2019 Adjusted EBITDA(1) totaling $18.3 million
◦
Up 32% sequentially from Q1 2019 and up 33% from Q2 2018
•
Declared Company’s initial dividend of $0.33 per share of Class A common stock
◦
Based on financial results for the full second quarter 2019 and payable August 29, 2019
•
Closed 46 transactions acquiring 2,700 net royalty acres for $40 million of capital
◦
71% to the Permian and 23% to the SCOOP/STACK
◦
Plan to deploy $175 - $200 million of capital for acquisitions for full year 2019
•
Averaged 62 rigs running across the Company’s diversified mineral portfolio in Q2 2019
◦
28 were in the Permian and 19 in the SCOOP/STACK
•
Record 943 gross drilled but uncompleted locations (“DUCs”)
◦
Despite conversion of over 200 gross DUCs to producing status during the quarter

(1)
Non-GAAP measure. See “Non-GAAP Financial Measures” below.


Ben M. (“Bud”) Brigham, Executive Chairman commented, “Our diversified tier-one mineral portfolio outperformed during the second quarter with exceptional sequential growth in production volumes, revenues, and EBITDA. Further, in the second quarter, we continued our disciplined “ground game” acquisition strategy adding approximately 2,700 tier-one net royalty acres, largely in the Permian Basin and the SCOOP/STACK, and believe we can deploy approximately $175 to $200 million of capital via this approach during the full year 2019.  At the same time, our acquisition team remains focused on identifying and evaluating larger, accretive transactions.  I’m very excited about the number of high quality, larger scale opportunities we are evaluating while executing our disciplined technical evaluation process that, over the last six years, has consistently created long-term value in tier-one oily resource plays.”

Robert M. (“Rob”) Roosa, Chief Executive Officer, commented, “While growth through acquisition remains a key strategy, the significant rig and completion activity on our existing mineral portfolio continues to drive organic, capex-free growth with recent strong activity. At the beginning of August, in our Delaware Basin Loving County Development Area, Occidental Petroleum Corporation(1) had two rigs developing its Silvertip project, and Exxon Mobil Corporation and EOG Resources, Inc., were running four rigs just south of Silvertip. Also, at the beginning of August, in our SCOOP play, which includes Continental Resources Inc.'s SpringBoard development area in Grady County Oklahoma, Continental and other operators were running 21 rigs across our




mineral position. As a result of continued development, our Loving County Development Area and Grady County production volumes and revenues already represent approximately 10% of our Company’s production and revenues, despite us being in the very early innings of development of two of the premier manufacturing mode projects in the United States. Finally, at the beginning of August, we experienced an increase in activity relative to the second quarter with 64 rigs drilling approximately 2,900 net royalty acres across the entirety of our mineral portfolio.”

Blake Williams, Chief Financial Officer, added, “We are also extremely pleased to announce our first quarterly cash dividend in the amount of $0.33 per share of Class A common stock, which represents our Discretionary Cash Flow(2) for the full second quarter of 2019. The dividend, combined with our 26% sequential production growth during the quarter, underscores the Company’s ability and commitment to deliver total shareholder return. We expect this growth to continue as operators convert our current inventory of 943 highly economic DUCs into producing wells.”

(1) All Occidental statistics pro forma for announced merger with Anadarko.
(2) Non-GAAP measure. See “Non-GAAP Financial Measures” below.

OPERATIONAL UPDATE

Mineral and Royalty Interest Ownership Update

During the second quarter 2019, the Company completed 46 transactions acquiring 2,700 net royalty acres (standardized to a 1/8th royalty interest), for $40 million, in the Permian, SCOOP/STACK and Williston Basins. The acquired minerals are expected to deliver near-term production with 44 gross DUCs (0.1 net DUCs) and 30 gross permits (0.1 net permits). As of June 30, 2019, the Company owned roughly 74,100 net royalty acres, encompassing 12,085 (104 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, 2019
 
21,750
 
3,500
 
10,250
 
10,050
 
15,450
 
6,900
 
6,200
 
74,100
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2019
 
20,550
 
3,200
 
9,750
 
9,700
 
15,450
 
6,850
 
6,000
 
71,500
Acres Added Q/Q
 
1,300
 
300
 
500
 
350
 
0
 
50
 
200
 
2,700
Acres Sold Q/Q
 
(100)
 
0
 
0
 
0
 
0
 
0
 
0
 
(100)
% Growth Q/Q
 
6%
 
9%
 
5%
 
4%
 
—%
 
1%
 
3%
 
4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
19,200
 
3,200
 
8,700
 
9,700
 
15,400
 
6,800
 
5,800
 
68,800
Acres Added YTD 2019
 
2,650
 
300
 
1,550
 
350
 
50
 
100
 
400
 
5,400
Acres Sold YTD 2019
 
(100)
 
0
 
0
 
0
 
0
 
0
 
0
 
(100)
% Growth YTD 2019
 
13%
 
9%
 
18%
 
4%
 
—%
 
1%
 
7%
 
8%

Operating Activity Update

DUC Conversions

The Company saw significant conversion of its DUC inventory during the second quarter with over 209 gross (1.8 net) horizontal wells identified that had been converted to production, which represented 24% of its gross DUC inventory (32% of net DUCs) as of Q1 2019. Thus far in 2019, the Company has converted 49% of its gross DUC inventory (57% of its net DUC) as of year-end 2018, which compares highly favorably to the 88% of net DUCs converted during 2018. Conversions of gross and net wells by status are summarized in the table below:




Q2 2019 Producing Well Conversion
 
 
Gross
 
Net
DUCs
 
209
 
70%
 
1.8
 
69%
Permits
 
4
 
1%
 
0.1
 
4%
Acquired
 
88
 
29%
 
0.7
 
27%
Total
 
301
 
 
 
2.6
 
 

Drilling Activity

During the second quarter 2019, the Company averaged approximately 62 rigs running on its mineral and royalty interests with approximately 2,284 net royalty acres under development as compared to 49 rigs and 2,687 net royalty acres under development on average over the prior five quarters. The Company had 28 rigs operating on its Permian Basin minerals and 19 rigs on its SCOOP/STACK minerals. Leading operators running rigs on Brigham’s mineral position included Continental, with 12 rigs in the SCOOP/STACK and Williston Basin; ExxonMobil, with 10 rigs in the Delaware and Williston Basins; Concho, with 5 rigs in the Delaware Basin; and Occidental, with 4 rigs in the Delaware and DJ Basins. Brigham’s rig activity over the past six quarters is summarized in the table below:
 
Q1 18
 
Q2 18
 
Q3 18
 
Q4 18
 
Q1 19
 
Q2 19
Total Rigs
25
 
31
 
51
 
64
 
73
 
62
NRA Under Development
941
 
1,326
 
3,249
 
3,820
 
3,383
 
2,284
% of Total NRA
2%
 
2%
 
5%
 
6%
 
5%
 
3%

DUC and Permit Inventory

The Company expects near-term production growth will be driven by the continued conversion of its DUC and permit inventory. Brigham’s DUC and permit inventory as of June 30, 2019 by basin is outlined in the table below:
 
 
Development Inventory by Basin (1)
 
 
Delaware
 
Midland
 
SCOOP
 
STACK
 
DJ
 
Williston
 
Other
 
Total
Gross Inventory
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DUCs
 
261
 
44
 
128
 
78
 
218
 
187
 
27
 
943
Permits
 
154
 
67
 
25
 
27
 
196
 
195
 
16
 
680
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Inventory
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DUCs
 
2.1
 
0.2
 
0.8
 
0.5
 
1.2
 
0.4
 
0.1
 
5.3
Permits
 
0.8
 
0.3
 
0.1
 
0.1
 
2.1
 
0.3
 
—
 
3.6
(1) Totals do not always foot due to rounding.

FINANCIAL UPDATE

For the three months ended June 30, 2019, crude oil, natural gas and NGL revenues, excluding the impact of settled derivatives, increased 59% to $23.0 million as compared to $14.5 million in the same prior-year period, due to an increase in sale volumes largely driven by a 184% increase in Permian Basin volumes and a 168% increase in SCOOP/STACK volumes. Further, the percentage of our production stream attributable to oil increased to 56% from 53% in Q2 2018, primarily due to higher oil cuts in the Delaware Basin and SCOOP/STACK.

Second quarter average realized prices were $55.24 per barrel of oil, $2.17 per Mcf of natural gas, and $17.42 per barrel of NGL, for a total equivalent price of $37.42 per Boe, excluding the effect of derivative instruments. This represents a 3% increase relative to first quarter 2019 and is 13% lower than year-ago levels of $42.87 per Boe.

The Company’s net loss was $3.2 million for the three months ended June 30, 2019, which included a $6.9 million expense related to the extinguishment of debt and $6.5 million of non-cash stock-based compensation expense. Adjusted EBITDA was $18.3 million for the three months ended June 30, 2019, up 33% relative to the same prior-year period. Adjusted EBITDA ex lease bonus was $16.8 million for the three months ended June 30, 2019. 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, 2019, the Company had a cash balance of $82.7 million and an undrawn $120.0 million revolving credit facility, providing the Company with total liquidity of $202.7 million.

Second Quarter 2019 Results
Unaudited Financial and Operational Results
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
($ in thousands, except per unit of production data)
 
 
 
 
 
 
 
 
Operating Revenues
 
 
 
 
 
 
 
 
Oil sales
 
$
19,140

 
$
11,498

 
$
32,715

 
$
20,455

Natural gas sales
 
2,309

 
1,687

 
4,896

 
3,309

NGL sales
 
1,600

 
1,337

 
3,028

 
2,622

Total mineral and royalty revenue
 
$
23,049

 
$
14,522

 
$
40,639

 
$
26,386

Lease bonus and other revenue
 
1,480

 
2,367

 
2,155

 
4,586

Total Revenue
 
$
24,529

 
$
16,889

 
$
42,794

 
$
30,972

 
 
 
 
 
 
 
 
 
Production
 
 
 
 
 
 
 
 
Oil (MBbls)
 
346

 
181

 
613

 
332

Natural Gas (MMcf)
 
1,066

 
617

 
1,935

 
1,172

NGLs (MBbls)
 
92

 
55

 
165

 
104

Total Net Production (MBoe)
 
616

 
339

 
1,100

 
631

Total Net Daily Production (Boe/d)
 
6,768

 
3,723

 
6,079

 
3,489

 
 
 
 
 
 
 
 
 
Realized Prices ($/Boe)
 
 
 
 
 
 
 
 
Oil ($/Bbl)
 
$
55.24

 
$
63.69

 
$
53.34

 
$
61.61

     Natural gas ($/Mcf)
 
2.17

 
2.73

 
2.53

 
2.82

     NGLs ($/Bbl)
 
17.42

 
24.13

 
18.41

 
25.17

Average Realized Price excluding Derivatives
 
$
37.42

 
$
42.87

 
$
36.93

 
$
41.79

Average Realized Price including Derivatives
 
$
37.49

 
$
42.14

 
$
37.15

 
$
41.21

 
 
 
 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
 
 
 
Gathering, transporting and marketing
 
$
1,523

 
$
912

 
$
2,637

 
$
2,007

Severance and ad valorem taxes
 
1,450

 
882

 
2,829

 
1,642

Depreciation, depletion and amortization
 
6,760

 
3,213

 
11,876

 
5,758

General and administrative (excluding share-based compensation)
 
3,267

 
1,318

 
5,216

 
2,782

Total Operating Expenses (before share-based compensation)
 
$
13,000

 
$
6,325

 
$
22,558

 
$
12,189

General and administrative, share-based compensation
 
6,495

 
—

 
6,495

 
—

Total Operating Expenses
 
$
19,495

 
$
6,325

 
$
29,053

 
$
12,189

Income From Operations
 
$
5,034

 
$
10,564

 
$
13,741

 
$
18,783

Income (loss) on derivative instruments, net
 
73

 
(555
)
 
(612
)
 
(914
)
Interest expense, net
 
(1,270
)
 
(652
)
 
(5,095
)
 
(1,126
)
Loss on extinguishment of debt
 
(6,933
)
 
—

 
(6,933
)
 
—

Gain on sale and distribution of equity securities
 
—

 
—

 
—

 
823

Other income, net
 
6

 
6

 
35

 
10

(Loss) Income Before Taxes
 
$
(3,090
)
 
$
9,363

 
$
1,136

 
$
17,576

Income tax expense
 
117

 
12

 
307

 
28





Net (Loss) Income
 
$
(3,207
)
 
$
9,351

 
$
829

 
$
17,548

Less: net income attributable to predecessor
 
(1,590
)
 
(9,351
)
 
(5,092
)
 
(17,548
)
Less: net loss attributable to temporary equity
 
2,941

 
—

 
2,941

 
—

Net Loss Attributable to Brigham Minerals, Inc. Stockholders
 
$
(1,856
)
 
—

 
$
(1,322
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unit Expenses ($/Boe)
 
 
 
 
 
 
 
 
Gathering, transportation and marketing
 
$
2.47

 
$
2.69

 
$
2.40

 
$
3.18

Severance and ad valorem taxes
 
2.35

 
2.60

 
2.57

 
2.60

Depreciation, depletion and amortization
 
10.98

 
9.48

 
10.79

 
9.12

General and administrative (before share-based compensation)
 
5.30

 
3.89

 
4.74

 
4.41

General and administrative, share-based compensation
 
10.55

 
—

 
5.90

 
—

Interest expense, net
 
2.06

 
1.93

 
4.63

 
1.78


QUARTERLY CASH DIVIDEND

The Company’s Board of Directors (the “Board”) has declared a quarterly cash dividend incorporating results for the full second quarter 2019 (without proration for the initial public offering date of April 23, 2019) of $0.33 per share of Class A common stock, to be paid on August 29, 2019 to holders of record as of August 22, 2019. 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 2019 EARNINGS CONFERENCE CALL
•
Friday, August 9, 2019 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time)
•
Pre-register by visiting http://dpregister.com/10133812
•
Listen to a live audio webcast of the call by visiting the Company’s website
◦
https://investors.brighamminerals.com
•
A recording of the webcast will be available on the Company’s website after the call
Additionally, Brigham Minerals plans to participate in the following events and conferences
•
August 11-14: EnerCom: The Oil & Gas Conference - Denver
◦
The Company is presenting on August 13 at 10:30 a.m. Mountain Time
•
August 26-27: Seaport Global Oil & Gas Conference - Chicago
•
August 30: Closing bell ringing at the NYSE

NON-GAAP FINANCIAL MEASURES

Adjusted Net Income, 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 Net Income as net income (loss) before loss on extinguishment of debt. We define Adjusted EBITDA as adjusted net income (loss) before depreciation, depletion and amortization, share based compensation expense, interest expense, gain or loss on sale and distribution of equity securities, 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 Net Income, 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 Net Income, 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 Net Income, 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 net income, 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 net income, Adjusted EBITDA and Adjusted EBITDA ex Lease Bonus

 
Three Months Ended June 30,
 
Six Months Ended June 30,
($ In thousands)
 
2019
 
2018
 
2019
 
2018
Net Income (Loss)
 
$
(3,207
)
 
$
9,351

 
$
829

 
$
17,548

Add:
 
 
 
 
 
 
 
 
Loss on extinguishment of debt
 
6,933

 
—

 
6,933

 
—

Adjusted Net Income (Loss)
 
$
3,726

 
$
9,351

 
$
7,762

 
$
17,548

Add:
 
 
 
 
 
 
 
 
Depreciation, depletion and amortization
 
6,760

 
3,213

 
11,876

 
5,758

Share based compensation expense
 
6,495

 
—

 
6,495

 
—

Interest expense
 
1,270

 
652

 
5,095

 
1,126

Loss on derivative instruments, net
 
—

 
555

 
612

 
914

Income tax expense
 
117

 
12

 
307

 
28

Less:
 
 
 
 
 
 
 
 
Gain on derivative instruments, net
 
73

 
—

 
—

 
—

Other income, net
 
6

 
6

 
35

 
10

Gain on sale and distribution of equity securities
 
—

 
—

 
—

 
823

Adjusted EBITDA
 
$
18,289

 
$
13,777

 
$
32,112

 
$
24,541

 Less:
 
 
 
 
 
 
 
 
Lease bonus
 
1,480

 
2,367

 
2,155

 
4,586

Adjusted EBITDA ex Lease Bonus
 
$
16,809

 
$
11,410

 
$
29,957

 
$
19,955


Reconciliation of Discretionary Cash Flow
($ In thousands)
 
Three Months Ended June 30, 2019

Adjusted EBITDA (1)
 
$
18,289

Less:
 
 
Adjusted EBITDA attributable to non-controlling interest
 
(10,366
)
Adjusted EBITDA attributable to Class A Common Stock
 
$
7,923

Less:
 
 
Cash interest expense
 
550

Cash taxes
 
117

Dividend equivalent rights
 
—

Retained cash flow
 
—

Discretionary cash flow to Class A Common Stock
 
$
7,256

Shares of Class A Common Stock
 
21,997

Discretionary cash flow available per share of Class A Common Stock
 
$
0.33

(1) Refer to Reconciliation of Adjusted EBITDA from Net Income (Loss) above.





UNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS
($ In thousands, except share amounts)
 
June 30,
 
December 31,
ASSETS
 
2019
 
2018
Current assets:
 
 
 
 
          Cash and cash equivalents
 
$
82,727

 
$
31,985

          Restricted cash
 
—

 
474

          Accounts receivable
 
20,262

 
20,695

          Prepaid expenses and other
 
2,208

 
7,103

          Short-term derivative assets
 
162

 
1,057

                    Total current assets
 
105,359

 
61,314

Oil and gas properties, at cost, using the full cost method of accounting
 
 
 
 
          Unevaluated property
 
244,755

 
228,151

          Evaluated property
 
355,563

 
289,851

          Less accumulated depreciation, depletion and amortization
 
(41,214
)
 
(27,628
)
                    Oil and gas properties - net
 
559,104

 
490,374

          Other property and equipment
 
5,521

 
5,408

           Less accumulated depreciation
 
(3,406
)
 
(3,115
)
                    Other property and equipment - net
 
2,115

 
2,293

Deferred tax asset
 
9,913

 
—

Other assets, net
 
1,151

 
45

          Total assets
 
$
677,642

 
$
554,026

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’/MEMBERS' EQUITY
 
 
 
 
Current liabilities:
 
 
 
 
          Accounts payable and accrued liabilities
 
$
7,173

 
$
5,662

          Current portion of debt
 
—

 
2,188

                    Total current liabilities
 
7,173

 
7,850

Long-term debt
 
—

 
168,517

Deferred tax liability
 
—

 
3,684

Other non-current liabilities
 
51

 
27

Temporary equity
 
611,962

 
—

Shareholders’ and members’ equity:
 
 
 
 
          Members’ contributed capital
 
—

 
208,728

Preferred stock, $0.01 par value; 50,000,000 authorized; no shares issued and outstanding
 
—

 
—

Class A common stock, $0.01 par value; 400,000,000 authorized, 21,997,198 shares issued and outstanding at June 30, 2019
 
220

 
—

Class B common stock, $0.01 par value; 150,000,000 authorized, 28,777,802 shares issued and outstanding at June 30, 2019
 
—

 
—

          Additional paid-in capital
 
57,719

 
(3,057
)
          Retained earnings
 
517

 
168,277

Total shareholders’ equity attributable to Brigham Minerals, Inc. and members’ equity
 
58,456

 
373,948

          Total liabilities and shareholders’ and members’ equity
 
$
677,642

 
$
554,026












UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENT OF OPERATIONS

 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands, except per share data)
 
2019
 
2018
 
2019
 
2018
REVENUES
 
 
 
 
 
 
 
 
Mineral and royalty revenues
 
$
23,049

 
$
14,522

 
$
40,639

 
$
26,386

Lease bonus and other revenues
 
1,480

 
2,367

 
2,155

 
4,586

Total revenues
 
24,529

 
16,889

 
42,794

 
30,972

OPERATING EXPENSES
 
 
 
 
 
 
 
 
Gathering, transportation and marketing
 
1,523

 
912

 
2,637

 
2,007

Severance and ad valorem taxes
 
1,450

 
882

 
2,829

 
1,642

Depreciation, depletion and amortization
 
6,760

 
3,213

 
11,876

 
5,758

General and administrative (excluding share-based compensation)
 
3,267

 
1,318

 
5,216

 
2,782

Total operating expenses (excluding share-based compensation)
 
13,000

 
6,325

 
22,558

 
12,189

General and administrative, share-based compensation
 
6,495

 
—

 
6,495

 
—

Total operating expenses
 
19,495

 
6,325

 
29,053

 
12,189

INCOME FROM OPERATIONS
 
5,034

 
10,564

 
13,741

 
18,783

Gain (loss) on derivative instruments, net
 
73

 
(555
)
 
(612
)
 
(914
)
Interest expense, net
 
(1,270
)
 
(652
)
 
(5,095
)
 
(1,126
)
Loss on extinguishment of debt
 
(6,933
)
 
—

 
(6,933
)
 
—

Gain on sale and distribution of equity securities
 
—

 
—

 
—

 
823

Other income, net
 
6

 
6

 
35

 
10

(Loss) income before income taxes
 
(3,090
)
 
9,363

 
1,136

 
17,576

Income tax expense
 
117

 
12

 
307

 
28

NET (LOSS) INCOME
 
$
(3,207
)
 
$
9,351

 
$
829

 
$
17,548

Less: net income attributable to Predecessor
 
(1,590
)
 
(9,351
)
 
(5,092
)
 
(17,548
)
Less: net loss attributable to temporary equity
 
2,941

 
—

 
2,941

 
—

Net loss attributable to Brigham Minerals, Inc. shareholders
 
$
(1,856
)
 
$
—

 
$
(1,322
)
 
$
—

 
 
 
 
 
 
 
 
 



























UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENT OF CASH FLOWS
 
 
Six Months Ended June 30,
(In thousands)
 
2019
 
2018
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
Net income
 
$
829

 
$
17,548

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation, depletion and amortization
 
11,876

 
5,758

Share-based compensation expense
 
6,495

 
—

Loss on extinguishment of debt
 
6,933

 
—

Amortization of debt issue costs
 
291

 
74

Deferred income taxes
 
66

 
31

Loss on derivative instruments, net
 
612

 
914

Net cash received (paid) for derivative settlements
 
238

 
(365
)
Gain on sale of equity securities
 
—

 
(823
)
Bad debt expense
 
293

 
—

Changes in operating assets and liabilities:
 
 
 
 
Decrease (increase) in accounts receivable
 
185

 
(6,146
)
Decrease (increase) in other current assets
 
1,268

 
(496
)
Increase in other deferred charges
 
—

 
(427
)
Increase (decrease) in accounts payable and accrued liabilities
 
481

 
(1,169
)
Net cash provided by operating activities
 
$
29,567

 
$
14,899

CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
Acquisitions of oil and gas properties
 
(81,053
)
 
(105,041
)
Additions to other fixed assets
 
(113
)
 
(334
)
Proceeds from sale of oil and gas properties, net
 
2,001

 
125

Changes in restricted cash held in escrow for acquisitions
 
33

 
(3,953
)
Net cash used in investing activities
 
$
(79,132
)
 
$
(109,203
)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
Repayments of short-term debt
 
(4,596
)
 
—

Repayments of long-term debt
 
(195,404
)
 
—

Borrowings of long-term debt
 
25,000

 
43,000

Payment of debt extinguishment fees
 
(2,090
)
 
—

Proceeds from issuance of Class A common stock sold in initial public offering, net of offering costs
 
278,541

 
—

Capital contributions
 
—

 
46,011

Loan closing costs
 
(1,144
)
 
(3
)
Net cash provided by financing activities
 
$
100,307

 
$
89,008

 
 
 
 
 
Increase (decrease) in cash and cash equivalents
 
50,742

 
(5,296
)
Cash and cash equivalents, beginning of period
 
31,985

 
6,886

Cash and cash equivalents, end of period
 
82,727

 
1,590

Supplemental disclosure of non-cash activity:
 
 
 
 
Equity securities distributed
 
$
—

 
$
4,246

Accrued capital expenditures
 
1,679

 
43

Capitalized share-based compensation expense
 
1,010

 
—

Increase (decrease) in temporary equity for adjustment to fair value, with offsetting decrease (increase) in additional paid-in capital
 
97,344

 
—












ABOUT BRIGHAM MINERALS, INC.

Brigham Minerals is an Austin, Texas, based company that acquires and actively manages a portfolio of mineral and royalty interests in the core of some of the most active, highly economic, liquids-rich resource basins across the continental United States. Brigham Minerals’ assets are located in the Permian Basin in Texas and New Mexico, the SCOOP and STACK plays in the Anadarko Basin of Oklahoma, the DJ Basin in Colorado and Wyoming, and the Williston Basin in North Dakota. The Company’s primary business objective is to maximize risk-adjusted total return to its shareholders by both capturing organic growth in its existing assets as well as leveraging its highly experienced technical evaluation team to continue acquiring minerals.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains forward-looking statements. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company’s capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management’s experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include, but are not limited to, downturns in operator activity due to commodity price fluctuations, the Company’s ability to integrate acquisitions into its existing business, changes in oil, natural gas and NGL prices, weather and environmental conditions, the timing of planned capital expenditures, availability of acquisitions, operational factors affecting the commencement or maintenance of producing wells on the Company’s properties, the condition of the capital markets generally, as well as the Company’s ability to access them, the proximity to and capacity of transportation facilities, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting the Company’s business and other important factors. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company’s actual results and plans could differ materially from those expressed in any forward-looking statements.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise except as required by applicable law.

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
SOURCE Brigham Minerals, Inc.