Brigham Minerals, Inc. Reports Fourth Quarter and Full Year 2020 Operating and Financial Results

AUSTIN, Texas–(BUSINESS WIRE)–Feb 24, 2021–
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 and year ended December 31, 2020, as well as 2021 guidance.
FOURTH QUARTER 2020 OPERATING AND FINANCIAL HIGHLIGHTS

  • Daily production volumes of 9,361 Boe/d (72% liquids, 52% oil)
    • Flat sequentially with Q3 2020
    • Permian Basin production volumes up 7% from Q3 2020 to 5,432 Boe/d
  • Mineral and royalty revenues totaling $23.8 million
    • Up 10% sequentially from Q3 2020 driven by 10% higher realized pricing of $27.59 per Boe
  • Net loss totaling $47.0 million
    • Adjusted Net Income (1) of $2.7 million excluding $49.7 million after-tax impairment of oil and gas properties
    • Adjusted EBITDA ex lease bonus (1) totaling $17.2 million up 13% sequentially from Q3 2020
  • Declared Q4 2020 dividend of $0.26 per share of Class A common stock
    • Up 8% sequentially from Q3 2020
    • Dividend represents a 90% payout of Discretionary Cash Flow (1) with retained cash utilized to fund mineral acquisitions
  • Closed 30 transactions acquiring approximately 1,585 net royalty acres deploying $20.5 million in mineral acquisition capital
    • Deployed 86% of mineral acquisition capital to the Permian Basin
  • 721 gross (3.6 net) drilled but uncompleted locations (“DUCs”) in inventory as of December 31, 2020
    • During Q4 2020, converted 106 (17%) gross and 1.0 (25%) net DUCs in inventory as of September 30, 2020
    • Approximately 67% of year-end 2020 net DUC inventory located in the Permian Basin and anticipate majority of DUCs to be converted by Exxon Mobil Corporation, Chevron Corporation, Occidental Petroleum Corporation, Continental Resources, Inc. and PDC Energy, Inc.
  • $9.1 million cash balance and revolver capacity of $115 million as of December 31, 2020

(1) Non-GAAP measure. See “Non-GAAP Financial Measures” below.
 
2021 GUIDANCE

  • Full year 2021 production guidance of 9,200 Boe/d to 9,900 Boe/d
    • Anchored by current producing locations, current DUC and permit inventory and acquisitions
    • Includes an estimated five days, or 150 Boe/d, of down time attributable to the impact of Q1 weather events
    • Additional detail in 2021 Operational and Financial Guidance table

Robert M. (“Rob”) Roosa, Chief Executive Officer, commented, “Brigham remains extremely well positioned to capitalize on the recent rebound in operator activity and positive momentum in commodity prices with all of our future production volumes unhedged. Furthermore, we enter 2021 with 721 gross DUCs (3.6 net) and 755 gross permits (4.2 net) that will drive near term production and cash flows with the majority of our DUCs anticipated to be completed by Exxon Mobil Corporation, Chevron Corporation, Occidental Petroleum Corporation, Continental Resources, Inc. and PDC Energy, Inc., who are currently running approximately 20 frac crews across our liquids rich basins. We are also continuing to gain momentum with our ground game acquisitions acquiring approximately 1,585 net royalty acres in the fourth quarter of 2020 at a cost of $5.5 million per net location with the assets comprised of 55% PDP, DUCs and permits. That momentum has continued into the first quarter of 2021 with closed and pending transactions totaling $21.6 million at an estimated cost per net location of $6.1 million. The assets are comprised of 50% PDP, DUCs and permits that are estimated to add over 1.6 net Permian DUCs and permits to inventory. With significant liquidity at year-end, our team remains confident that we will continue to grow shareholder value through highly accretive mineral acquisitions targeting asset level IRRs close to double our cost of capital. I could not be more excited about the current position of our Company to capitalize on market conditions through organic growth, acquisitions and prudent capital management.”
Blake C. Williams, Chief Financial Officer, added, “Our strong operating and financial results allowed us to raise our dividend by 8% this quarter to $0.26 per share while also increasing our retained cash flow from 5% to 10%, which we used to internally fund approximately 9% of our fourth quarter 2020 acquisitions. With the increase in commodity prices along with our low leverage, our Adjusted EBITDA ex lease bonus (1) increased by 13% this quarter and our Adjusted EBITDA margin (1) returned to the mid 70% range. Throughout the energy down cycle of 2020, we successfully captured opportunities while preserving our balance sheet and maintain $124 million of liquidity headed into 2021. Furthermore, we intend to continue increasing our cash flow retention over the next several quarters to 20-25% of Discretionary Cash Flow (1) to extend our liquidity. Finally, we are pleased to showcase the differentiation our business model provides from the broader energy space through production guidance of 9,200 – 9,900 Boe/d which represents modest growth in 2021 volumes over our current production. This range incorporates an estimated impact of five days of down time due to Q1 weather events, and emphasizes our ability to return substantial capital to shareholders in any environment given our diversified, resilient asset base.”
(1) Non-GAAP measure. See “Non-GAAP Financial Measures” below.
OPERATIONAL UPDATE
Mineral and Royalty Interest Ownership Update
During the three months ended December 31, 2020, the Company executed 30 transactions acquiring approximately 1,585 net royalty acres (standardized to a 1/8th royalty interest) and deployed $20.5 million in capital. The Company focused approximately 86% of its mineral acquisition capital in the fourth quarter towards the Permian Basin. Fourth quarter acquisitions are expected to deliver near-term production and cash flow growth with the addition of 128 gross DUCs (0.4 net DUCs) and 55 gross permits (0.1 net permits) to inventory counts.
During the year ended December 31, 2020, the Company completed 81 transactions acquiring 4,635 net royalty acres (standardized to a 1/8th royalty interest) for $66.5 million in capital. The Company deployed approximately 92% of its mineral acquisition capital in 2020 to the Permian Basin. The acquired minerals added 165 gross DUCs (0.6 net DUCs) and 97 gross permits (0.3 net permits) to its inventory counts over the year. As of December 31, 2020, the Company had acquired roughly 86,285 net royalty acres, encompassing 13,496 gross (116.3 net) undeveloped horizontal locations, across 37 counties in what the Company views as the core of the Permian Basin in West Texas and New Mexico, the SCOOP/STACK plays in the Anadarko Basin of Oklahoma, the 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 (1)                                
December 31, 2020   28,330   5,220   11,400   10,725   15,890   7,950   6,770   86,285
September 30, 2020   27,550   4,875   11,400   10,725   15,600   7,825   6,725   84,700
Acres Added Q/Q   780   345       290   125   45   1,585
% Added Q/Q   3%   7%   —%   —%   2%   2%   1%   2%
December 31, 2019   25,750   4,100   11,100   10,700   15,600   7,750   7,200   82,200
Acres Added in 2020   2,580   1,120   300   25   290   200   120   4,635
Acres Sold in 2020               (550)   (550)
% Added in 2020   10%   27%   3%   —%   2%   3%   (6)%   5%
(1) Individual amounts may not add to totals due to rounding

DUC Conversions Updates
The Company saw significant conversion of its DUC inventory during the fourth quarter with over 106 gross (1.0 net) horizontal wells identified that had been converted to production, which represented 17% of its gross DUC inventory as of Q3 2020 (25% of net DUCs). During 2020, the Company identified the conversion of 628 gross DUCs (4.7 net DUCs) to PDP, which represents 70% of its gross DUC inventory (79% of its net DUCs) as of year-end 2019. Well conversions to proved developed producing during 2020 are summarized in the table below:

2020 Well Additions to Proved Developed Producing
    Gross   Net
DUCs   628   59%   4.7   62%
Acquired   424   39%   2.5   33%
Converted Permitted and Other   25   2%   0.4   5%
Total   1,077   100%   7.6   100%

Drilling Activity Update
During the fourth quarter 2020, the Company identified 79 gross (0.4 net) wells spud on its mineral position, which represents a 39% sequential increase from the third quarter 2020. Brigham’s gross and net wells spud activity over the past 12 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   Q3 20   Q4 20
Gross Wells Spud 82   99   208   150   230   248   214   185   209   36   57   79
Net Wells Spud 0.3   1.1   1.4   1.0   1.2   1.3   1.3   1.7   1.6   0.2   0.4   0.4
Four Quarter Rolling Average Net Wells Spud             1.0   1.2   1.2   1.2   1.4   1.5   1.1   1.0   0.6

DUC and Permit Inventory Update
The Company expects 2021 production growth will be driven by the continued conversion of its DUC and permit inventory. Brigham’s gross and net DUC and permit inventory as of December 31, 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   187   218   62   3   111   124   16   721
Permits   159   97   11   6   222   252   8   755
Net Inventory                                
DUCs   1.8   0.7   0.3     0.7   0.1   0.1   3.6
Permits   0.9   0.4       2.2   0.5   0.1   4.2
(1) Individual amounts may not add to totals due to rounding.

FINANCIAL UPDATE
Fourth Quarter 2020 Financial Update
For the three months ended December 31, 2020, crude oil, natural gas and NGL production volumes were 9,361 Boe/d (72% liquids), which is flat relative to third quarter 2020. Our volumes are 3% lower than the same prior year period, largely due to a decrease in Anadarko and Williston Basin volumes, which were partially offset by a 7% increase in Permian Basin volumes.
Fourth quarter 2020 average realized prices were $40.40 per barrel of oil, $2.29 per Mcf of natural gas, and $14.11 per barrel of NGL, for a total equivalent price of $27.59 per Boe. This represents a 10% increase relative to third quarter 2020 and is 26% lower than the same prior year period level of $37.39 per Boe, excluding the effect of derivative instruments.
The Company’s net loss was $47.0 million for the three months ended December 31, 2020, inclusive of a $49.7 million after-tax impairment of oil and gas properties resulting from the continued reduction in commodity prices as well as certain reclassification of proved undeveloped reserves to probable and possible reserves, as a result of a slowdown in operator activity. Adjusted EBITDA was $17.2 million for the three months ended December 31, 2020, up 3% from the third quarter 2020 and down 36% from the same prior-year period. Adjusted EBITDA ex lease bonus was $17.2 million for the three months ended December 31, 2020, up 13% from the third quarter 2020 and down 34% 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.
Full Year 2020 Financial Update
For the year ended December 31, 2020, crude oil, natural gas and NGL production volumes increased 28% to 9,483 Boe/d (72% liquids) as compared to the prior year, due to a 56% increase in Permian Basin volumes.
Full year 2020 average realized prices were $37.26 per barrel of oil, $1.80 per Mcf of natural gas, and $11.61 per barrel of NGL, for a total equivalent price of $24.85 per Boe. This represents a 31% decrease relative to 2019 realized prices of $36.17 per Boe, excluding the effect of derivative instruments.
The Company’s net loss was $58.0 million for the year ended December 31, 2020, inclusive of a $65.1 million after-tax impairment of oil and gas properties resulting from the continued reduction in commodity prices as well as certain reclassification of proved undeveloped reserves to probable and possible reserves, as a result of a slowdown in operator activity. Adjusted EBITDA was $65.0 million for the year ended December 31, 2020, down 17% from the prior year. Adjusted EBITDA ex lease bonus was $59.6 million for the year ended December 31, 2020, down 20% 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 December 31, 2020, the Company had a cash balance of $9.1 million and $115 million of capacity on its revolving credit facility, providing the Company with total liquidity of $124.1 million.
Fourth Quarter and Full Year 2020 Financial and Operational Results

 
  Three Months Ended
December 31,
  Years Ended
December 31,
($ in thousands, except per unit of production data) 2020   2019   2020   2019
REVENUES              
Oil sales $ 17,969     $ 28,534     $ 67,909     $ 82,048  
Natural gas sales 3,327     2,697     10,443     9,724  
NGL sales 2,464     1,881     7,893     6,114  
Total mineral and royalty revenues $ 23,760     $ 33,112     $ 86,245     $ 97,886  
Lease bonus and other revenue     502     5,478     3,629  
Total revenues $ 23,760     $ 33,614     $ 91,723     $ 101,515  
PRODUCTION              
Oil (MBbls) 445     514     1,823     1,515  
Natural gas (MMcf) 1,451     1,438     5,809     4,707  
NGLs (MBbls) 175     132     680     407  
Equivalents (MBoe) 861     886     3,471     2,706  
Equivalents per day (Boe/d) 9,361     9,627     9,483     7,414  
REALIZED PRICES ($/Boe)              
Oil ($/Bbl) $ 40.40     $ 55.55     $ 37.26     $ 54.16  
Natural gas ($/Mcf) 2.29     1.88     1.80     2.07  
NGLs ($/Bbl) 14.11     14.22     11.61     15.03  
Average Realized Price, without Derivatives $ 27.59     $ 37.39     $ 24.85     $ 36.17  
Average Realized Price, with Derivatives $ 27.59     $ 37.52     $ 24.85     $ 36.35  
OPERATING EXPENSES              
Gathering, transportation and marketing $ 1,879     $ 1,235     $ 6,985     $ 4,985  
Severance and ad valorem taxes 1,427     2,203     5,606     6,409  
Depreciation, depletion, and amortization 12,411     10,630     48,238     30,940  
Impairment of oil and gas properties 60,664         79,569      
General and administrative (before share-based compensation) 3,220     3,368     14,090     11,914  
Total Operating Expenses (before share-based compensation) $ 79,601     $ 17,436     $ 154,488     $ 54,248  
Share-based compensation 1,837     1,816     7,529     10,049  
Total operating expenses $ 81,438     $ 19,252     $ 162,017     $ 64,297  
(LOSS) INCOME FROM OPERATIONS $ (57,678 )   $ 14,362     $ (70,294 )   $ 37,218  
Other expenses:              
Loss on derivative instruments, net     (47 )       (568 )
Interest expense, net (195 )   (449 )   (890 )   (5,609 )
Loss on extinguishment of debt     41         (6,892 )
Other income, net 399     4     428     169  
(Loss) income before income tax expense $ (57,474 )   $ 13,911     $ (70,756 )   $ 24,318  
Income tax (benefit) expense (10,512 )   1,565     (12,762 )   2,679  
NET (LOSS) INCOME $ (46,962 )   $ 12,346     $ (57,994 )   $ 21,639  
Less: net income attributable to predecessor             (5,092 )
Less: net loss (income) attributable to temporary equity 13,359     (7,269 )   15,582     (9,646 )
Net (loss) income attributable to Brigham Minerals, Inc. shareholders $ (33,603 )   $ 5,077     $ (42,412 )   $ 6,901  
               
Unit Expenses ($/Boe)              
Gathering, transportation and marketing $ 2.18     $ 1.40     $ 2.01     $ 1.84  
Severance and ad valorem taxes 1.66     2.49     1.62     2.37  
Depreciation, depletion and amortization 14.41     12.00     13.90     11.43  
General and administrative (before share-based compensation) 3.74     3.80     4.06     4.40  
General and administrative, share-based compensation 2.13     2.05     2.17     3.71  
Interest expense, net 0.23     0.51     0.26     2.07  

QUARTERLY CASH DIVIDEND
The Company’s Board of Directors (the “Board”) has declared a quarterly cash dividend for the fourth quarter 2020 of $0.26 per share of Class A common stock, to be paid on March 26, 2021 to holders of record as of March 19, 2021. This brings total capital returned through dividends to shareholders of $1.01 per share based on financial results for the full year 2020.
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.
2021 OPERATIONAL AND FINANCIAL GUIDANCE

Guidance Ranges   Low   High
Daily Net Production (Boe/d)   9,200 9,900
Oil Cut (%)   52% 55%
Lease Bonus ($ millions)   $2.0 $4.0
         
Expenses        
Cash G&A Expense Plus Share Based Compensation Expense ($ millions)   $23.60 $26.40
Cash G&A Expense ($ millions)   $14.40 $16.40
Share Based Compensation Expense ($ millions)   $9.20 $10.00
Gathering, Transportation, and Marketing ($/Boe)   $1.65 $2.25
Production Taxes (% of Revenue)   7% 9%
         
Taxes        
Tax Depletion ($/Boe)   $10.00 $12.50
Percent of Dividend Expected to be Return of Capital   70% 90%
         
Mineral Acquisition Capital        
Ground Game Acquisition Budget ($ millions)   $90 $110

BRIGHAM MINERALS FOURTH QUARTER 2020 EARNINGS CONFERENCE CALL

Additionally, Brigham Minerals plans to participate in the following events and conferences

  • March 1-3: Credit Suisse Energy Summit
  • March 22-23, 2021: Simmons Energy Conference

NON-GAAP FINANCIAL MEASURES
Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA ex lease bonus, Adjusted EBITDA Margin, Discretionary Cash Flow and Discretionary Cash Flow ex lease bonus 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 impairment of oil and gas properties, after tax, and loss on extinguishment of debt, after tax. We define Adjusted EBITDA as Adjusted Net Income before depreciation, depletion and amortization, share based compensation expense, interest expense, gain or loss on derivative instruments and income tax expense, less other income, gain on sale of oil and gas properties and income tax benefit. 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 Adjusted EBITDA Margin as Adjusted EBITDA divided by Total Revenue. We define Discretionary Cash Flow as Adjusted EBITDA, less cash interest expense and cash taxes. We define Discretionary Cash Flow ex lease bonus as Discretionary Cash Flow further adjusted to eliminate the impacts of lease bonus revenue.
Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA ex lease bonus, Adjusted EBITDA Margin, Discretionary Cash Flow, and Discretionary Cash Flow ex lease bonus 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, Adjusted EBITDA Margin, Discretionary Cash Flow, and Discretionary Cash Flow ex lease bonus 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, Adjusted EBITDA Margin, Discretionary Cash Flow, and Discretionary Cash Flow ex lease bonus 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, Adjusted EBITDA Margin, Discretionary Cash Flow, and Discretionary Cash Flow ex lease bonus to the most directly comparable GAAP financial measure for the periods indicated.
SUPPLEMENTAL SCHEDULES
Note: Items reconciled below may also pertain to non-GAAP financial items that may be discussed in the earnings call.
Reconciliation of Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA ex lease bonus and Adjusted EBITDA Margin

  Three Months Ended December 31,   Years Ended December 31
(In thousands, except for margin % data) 2020   2019 2020   2019
Net (Loss) Income $ (46,962 ) $ 12,346     $ (57,994 )   $ 21,639  
Add:              
Impairment of oil and gas properties, after tax (1) 49,664         65,132      
Loss on extinguishment of debt, after tax (2)     (41 )       6,134  
Adjusted Net Income $ 2,702     $ 12,305     $ 7,138     $ 27,773  
Add:              
Depreciation, depletion, and amortization 12,411     10,630     48,238     30,940  
Share-based compensation expense 1,836     1,816     7,529     10,049  
Interest expense, net 195     449     890     5,609  
Loss on derivative instruments, net     47         568  
Income tax expense 488     1,565     1,675     3,437  
Less:              
Other income, net 399     4     428     169  
Adjusted EBITDA $ 17,233     $ 26,808     $ 65,042     $ 78,207  
Lease bonus     502     5,478     3,629  
Adjusted EBITDA ex lease bonus $ 17,233     $ 26,306     $ 59,564     $ 74,578  
Memo: Adjusted EBITDA Margin              
Total Revenue $ 23,760     $ 33,614     $ 91,723     $ 101,515  
Adjusted EBITDA $ 17,233     $ 26,808     $ 65,042     $ 78,207  
Adjusted EBITDA Margin 73 %   80 %   71 %   77 %
( 1) Tax effect of $11.0 million tax benefit for the three months ended December 31, 2020 and $14.4 million tax benefit for the year ended December 31, 2020.
(2) Tax effect of $0.8 million tax benefit for the year ended December 31, 2019

Reconciliation of Discretionary Cash Flow and Discretionary Cash Flow ex lease bonus

    Three Months Ended
(In thousands, except per share amounts) December 31, 2020   September 30, 2020 June 30, 2020   March 31, 2020
Adjusted EBITDA (1)   $ 17,233     $ 16,777     $ 5,909     $ 25,123  
Less:                
Adjusted EBITDA attributable to non-controlling interest   (4,000 )   (3,912 )   (1,829 )   (10,029 )
Adjusted EBITDA attributable to Class A common stock   $ 13,233     $ 12,865     $ 4,080     $ 15,094  
Less:                
Cash interest expense   111     437     165     152  
Cash taxes (2)           (2,036 )   2,036  
Dividend equivalent rights   316     192     462     360  
Discretionary cash flow to Class A common stock   $ 12,806     $ 12,236     $ 5,489     $ 12,546  
Less:                
Lease bonus       1,158     43     2,348  
Discretionary cash flow ex lease bonus to Class A common stock   $ 12,806     $ 11,078     $ 5,446     $ 10,198  
Add:                
Lease bonus           43     2,348  
Less:                
Retained cash flow   1,323     554          
Distributed cash flow to Class A common stock   $ 11,483     $ 10,524     $ 5,489     $ 12,546  
                 
Shares of Class A common stock   43,558     43,316     39,297     34,174  
                 
Distributed cash flow per share of Class A common stock – Dividend   $ 0.26     $ 0.24     $ 0.14     $ 0.37  
( 1) Refer to Reconciliation of Adjusted EBITDA from Net (Loss) Income above.
(2) The Company does not expect to incur federal income taxes for income related to results for the year ended December 31, 2020.

Common Stock Outstanding as of December 31, 2020:

Common stock by type   Share count   Percent of Total
Class A common stock   43,558,494     76.8 %
Class B common stock   13,167,687     23.2 %
Total   56,726,181     100 %

CONSOLIDATED BALANCE SHEETS

  December 31,
(In thousands, except share data) 2020   2019
ASSETS      
Current assets:      
Cash and cash equivalents $ 9,144     $ 51,133  
Accounts receivable 17,632     30,291  
Prepaid expenses and other 3,693     1,688  
Total current assets 30,469     83,112  
Oil and gas properties, at cost, using the full cost method of accounting:      
Unevaluated property 325,091     291,664  
Evaluated property 488,301     449,061  
Less accumulated depreciation, depletion, and amortization (189,546 )   (61,103 )
Oil and gas properties—net 623,846     679,622  
Other property and equipment 5,587     5,095  
Less accumulated depreciation (4,632 )   (3,703 )
Other property and equipment—net 955     1,392  
Deferred tax asset 24,920     18,823  
Other assets, net 771     1,213  
Total assets $ 680,961     $ 784,162  
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable and accrued liabilities $ 7,905     $ 11,533  
Total current liabilities 7,905     11,533  
Long-term debt 20,000      
Other non-current liabilities 1,126     803  
Temporary equity 146,280     454,507  
Shareholders’ equity:      
Preferred stock, $0.01 par value; 50,000,000 authorized; no shares issued and outstanding at December 31, 2020 and December 31, 2019      
Class A common stock, $0.01 par value; 400,000,000 authorized, 43,995,124 shares issued and 43,558,494 shares outstanding at December 31, 2020; 34,040,934 issued and outstanding at December 31, 2019 440     340  
Class B common stock, $0.01 par value; 150,000,000 authorized, 13,167,687 shares issued and outstanding at December 31, 2020; 22,847,045 shares issued and outstanding at December 31, 2019      
Additional paid-in capital 601,129     323,578  
Accumulated deficit (92,392 )   (6,599 )
Treasury stock, at cost; 436,630 shares at December 31, 2020 and no shares at December 31, 2019 (3,527 )    
Total shareholders’ equity attributable to Brigham Minerals, Inc. 505,650     317,319  
Total liabilities, temporary equity and shareholders’ equity $ 680,961     $ 784,162  

CONSOLIDATED AND COMBINED STATEMENT OF OPERATIONS

    Years Ended December 31,
(In thousands, except per share data)   2020   2019   2018
REVENUES            
Mineral and royalty revenues   $ 86,245     $ 97,886     $ 59,758  
Lease bonus and other revenues   5,478     3,629     7,506  
Total revenues   $ 91,723     $ 101,515     $ 67,264  
OPERATING EXPENSES            
Gathering, transportation and marketing   6,985     4,985     3,944  
Severance and ad valorem taxes   5,606     6,409     3,536  
Depreciation, depletion, and amortization   48,238     30,940     13,915  
Impairment of oil and gas properties   79,569          
General and administrative   21,619     21,963     6,638  
Total operating expenses   $ 162,017     $ 64,297     $ 28,033  
(LOSS) INCOME FROM OPERATIONS   $ (70,294 )   $ 37,218     $ 39,231  
(Loss) gain on derivative instruments, net       (568 )   424  
Interest expense, net   (890 )   (5,609 )   (7,446 )
Loss on extinguishment of debt       (6,892 )    
Gain on sale and distribution of equity securities           823  
Other income, net   428     169     110  
(Loss) income before income tax expense   $ (70,756 )   $ 24,318     $ 33,142  
Income tax (benefit) expense   (12,762 )   2,679     327  
NET (LOSS) INCOME   $ (57,994 )   $ 21,639     $ 32,815  
Less: Net income attributable to Predecessor       (5,092 )   (30,976 )
Less: net loss (income) attributable to temporary equity   15,582     (9,646 )    
Net (loss) income attributable to Brigham Minerals, Inc. shareholders   $ (42,412 )   $ 6,901     $ 1,839  
             
NET INCOME PER COMMON SHARE            
Basic   $ (1.11 )   $ 0.26     $  
Diluted   $ (1.11 )   $ 0.26     $  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING            
Basic   38,178     22,870      
Diluted   38,178     22,870      

CONSOLIDATED AND COMBINED STATEMENT OF CASH FLOWS

    Years Ended December 31,
(In thousands)   2020   2019   2018
CASH FLOWS FROM OPERATING ACTIVITIES            
Net (loss) income   $ (57,994 )   $ 21,639     $ 32,815  
Adjustments to reconcile net earnings to net cash provided by operating activities:            
Depreciation and amortization   48,238     30,940     13,915  
Impairment of oil and gas properties   79,569          
Share-based compensation expense   7,529     10,049      
Loss on extinguishment of debt       6,892      
Amortization of debt issue costs   605     433     690  
Deferred income tax (benefit)/expense   (9,942 )   665     237  
Loss (gain) on derivative instruments, net       568     (424 )
Net cash received (paid) for derivative settlements       470     (754 )
Gain on sale and distribution of equity securities           (823 )
Bad debt expense   299     669     382  
Changes in operating assets and liabilities:            
Decrease (increase) in accounts receivables   12,359     (10,246 )   (8,022 )
(Increase) decrease in other current assets   (2,005 )   1,787     (6,116 )
Decrease in other deferred charges   45          
(Decrease) increase in accounts payables and accrued liabilities   (3,608 )   5,112     (484 )
Increase in other long-term liabilities   165     47     28  
Net cash provided by operating activities   $ 75,260     $ 69,025     $ 31,444  
CASH FLOWS FROM INVESTING ACTIVITIES            
Additions to oil and gas properties   (66,498 )   (219,481 )   (195,603 )
Additions to other fixed assets   (492 )   (474 )   (723 )
Proceeds from sale of oil and gas properties, net   1,565     3,123     125  
Proceeds from sale of equity securities           933  
Net cash used in investing activities   $ (65,425 )   $ (216,832 )   $ (195,268 )
CASH FLOWS FROM FINANCING ACTIVITIES            
Payments of short-term related party loan           (7,000 )
Borrowing of short-term related party loan           7,000  
Payments of short-term debt       (4,596 )    
Payments of long-term debt       (275,404 )   (70,000 )
Borrowing of long-term debt   20,000     105,000     218,000  
Payment of debt extinguishment fees       (2,091 )    
Proceeds from issuance of Class A common stock sold in initial public offering, net of offering costs       277,075      
Proceeds from issuance of Class A common stock, net of offering costs       102,680      
Capital contributions           46,011  
Capital distributions       (441 )    
Purchase of treasury stock   (3,527 )        
Dividends paid   (42,216 )   (14,663 )    
Distributions to holders of temporary equity   (24,670 )   (19,731 )    
Debt issuance cost   (208 )   (1,348 )   (4,614 )
Employee tax withholding for settlement of equity compensation awards   (1,203 )        
Net cash (used in) provided by financing activities   $ (51,824 )   $ 166,481     $ 189,397  
(Decrease) increase in cash and cash equivalents and restricted cash   (41,989 )   18,674     25,573  
Cash, cash equivalents and restricted cash, beginning of period   51,133     32,459     6,886  
Cash, cash equivalents and restricted cash end of period   $ 9,144     $ 51,133     $ 32,459  

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 production and other guidance within 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, continued downturns or delays in resuming 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, global or national health events, including the ongoing spread and economic effects of the ongoing COVID-19 pandemic, potential future pandemics, the actions of the Organization of Petroleum Exporting Countries and other significant producers and governments and the ability of such producers to agree to and maintain oil price and production controls and other legal or regulatory developments affecting the Company’s business and other important factors. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2020, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, 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.
View source version on businesswire.com:https://www.businesswire.com/news/home/20210224006048/en/
CONTACT: At the Company:
Brigham Minerals, Inc.
Blake C. Williams
Chief Financial Officer
(512) 220-1500
InvestorRelations@brighamminerals.com
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: NATURAL RESOURCES OTHER NATURAL RESOURCES MINING/MINERALS
SOURCE: Brigham Minerals, Inc.
Copyright Business Wire 2021.
PUB: 02/24/2021 04:15 PM/DISC: 02/24/2021 04:15 PM
http://www.businesswire.com/news/home/20210224006048/en