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CST: 22/04/2019 04:03:02   

Sundance Energy Australia Limited Reports Fourth Quarter and Full Year 2018 Financial and Operational Results

25 Days ago

DENVER, March 27, 2019 (GLOBE NEWSWIRE) -- Sundance Energy Australia Limited (ASX: SEA) (NASDAQ: SNDE) (“Sundance” or the “Company”), a U.S. onshore oil and gas exploration and production company focused in the Eagle Ford in South Texas reported its fourth quarter and full year 2018 financial and operations results today.

Fourth Quarter and Full Year 2018 Financial Results Highlights

  • Net Income attributable to owners of the Company was US $64.7 million for the fourth quarter of 2018 and a loss of US $28.1 million for full year 2018. Adjusted EBITDAX1 for the fourth quarter of 2018 was US $48.2 million, representing. In line with full year guidance, Sundance’s full year 2018 Adjusted EBITDAX was US $100.1 million.
  • Sundance’s year end 2018 net debt of US $313.4 million represents a 1.6x Debt-To-EBITDAX leverage multiple on a last quarter annualized basis.
  • Total revenue for the quarter increased ~105.7% to US $58.3 million as compared to the same prior year period.
  • Average fourth quarter realized prices excluding the impact of hedging were US $60.30 per barrel of oil, US $3.03 per mmbtu of gas, and US $26.20 per barrel of NGL. This compares to an average WTI price of $59.97 for the quarter. On a blended basis the average estimated fourth quarter price realized per boe for all products excluding the impact of hedging was US $49.23. Average fourth quarter price including the impact of realized hedges was US $56.04 per boe and US $70.38 per barrel of oil.
  • Cash operating costs for the quarter of US $15.36 per boe improved 7.2% as compared to US $16.56 per boe for the same prior year period and improved 15.7% as compared the third quarter 2018 due to lower cash General and Administrative (“G&A”), Gathering, Processing and Transportation (“GP&T”), and Workover expenses per boe. The Company successfully lowered its cash operating costs over the course of 2018 as it worked to integrate the new assets from the Pioneer acquisition, including a significant workover program to improve the performance or bring back online acquired wells. Lease Operating Expense (“LOE”) was US $6.75 per boe and GP&T was $2.57 per boe. GP&T includes higher midstream tariffs which solely and specifically apply to production from wells put on production by Pioneer prior to closing of the acquisition. All incremental production from new wells on the acquired assets will be charged at new, lower market rates and result in decreased GP&T per boe over time. Full year LOE plus GP&T was $9.71per boe, towards the lower end of the Company’s LOE guidance.
  • As of 22nd March 2019, the Company’s oil hedges covered a total of 5,018,000 barrels through 2023 with a weighted average floor of US $54.91 and ceiling of US $62.88. Hedging covered approximately ~6,600 barrels of oil per day for the remainder of 2019 with a weighted average floor of US $60.33.
  • Fourth quarter development and production related expenditures totaled US $73.4 million and for the full year were US $176.1 million, at the low end of the Company’s previously released full year capital guidance.
  • During the fourth quarter, on 14th November 2018 the Company announced a 40% increase in its Senior Secured Borrowing Base Facility from US $87.5mm to US $122.5mm. This US $35.0mm increase provides the Company with substantial additional liquidity.
  • The Company’s year-end 2018 proved reserves as estimated by Ryder Scott Company, L.P. were 93.2 MMboe representing a PV-10 of $1,110mm as calculated under SEC guidelines.2

Operational Highlights

  • Fourth quarter net production volumes were 1,303,684 boe or 14,170 boe per day, and full year net production volumes were 3,771,610 boe or 10,333 boe per day. This exceeded the top end of Sundance’s full year guidance of 9,000 to 10,000 Boe/day and meets the Company’s fourth quarter guidance. Net production for the quarter represents an increase of ~66% as compared to the same period for the prior year and a ~18% increase as compared to the third quarter of 2018. Full year net production represents an increase of ~31% as compared to 2017.
  • Sundance is transitioning to guiding based on average daily sales volumes, in line with its US-listed peers. On this basis, Sundance had 12,880 boe per day and 9,611 boe per day for the fourth quarter and full year 2018 respectively.
  • Fourth quarter net production was ~67% oil, ~21% gas and ~12% NGLs by volume.
  • Sundance brought 11.0 gross (11.0 net) wells onto production during the fourth quarter, bringing the total number of gross wells brought online in 2018 to 23.0 (23.0 net). These fourth quarter wells included 9.0 gross (9.0 net) wells on the acreage acquired from Pioneer in Live Oak County. Sundance additionally brought online 2.0 gross (2.0 net) wells on its legacy acreage in McMullen County.
  • Sundance additionally completed drilling (“SPUD to TD”) 2.0 additional gross (2.0 net) wells during the fourth quarter. These comprised the Red Ranch EFS 18H and 19H two well pad in Dimmit County. At year end the Company was in the process of drilling the Roy Esse 15H, 16H, 17H and 18H four well pad in Live Oak County.
  • Sundance has entered into a letter agreement with its midstream partner to upgrade capacity at one of its gas processing plants. The expansion project is currently underway and is expected to be completed in April 2019.

2019 Guidance Highlights

  • Sundance’s 2019 plan is to operate within cash flow while still providing attractive production and Adjusted EBITDAX growth. The Company’s 2019 plan was formulated assuming a conservative $50 oil price environment. Should prices improve, incremental cash flow will be utilized to pay down debt, return of capital or for additional investment activities as appropriate.
  • Average sales volumes are targeted at 14,000 to 15,000 boe per day for 2019 and 11,500 to 12,500 boe per day for the first quarter.
  • The Company intends to bring 25 wells online during full year 2019, at a capital cost of US $135 to 155 million.
  • At an assumed $55 WTI oil price and $2.75 Henry Hub gas, Sundance expects to generate US $165 to 180 million in Adjusted EBITDAX3 for 2019.

The table below provides an overview of the Company’s operational activity for 2018 and year-to-date 20194:

Well Name County Spud
Date
Frac Start
Date
IP
Date
Lateral
Length
30-Day IP
(boe/d)
%
Oil
60-Day IP
(boe/d)
Paloma Ranch 7H McMullen 18-Jan-18 17-May-18 2-Jun-18 7,690' 1,345 62 % 1,017
Peeler Ranch 8HC Atascosa 1-Mar-18 28-May-18 26-Jun-18 5,642' 484 92 % 404
Peeler Ranch 9HC Atascosa 24-Mar-18 28-May-18 26-Jun-18 5,820' 446 93 % 371
Allen MCM 1HA McMullen 21-Apr-18 6-Jul-18 17-Aug-18 8,015' 1,291 74 % 1,100
Allen MCM 2HA McMullen 13-May-18 6-Jul-18 17-Aug-18 8,234' 1,132 77 % 969
Harlan Bethune 25H Live Oak 7-May-18 24-Jul-18 15-Aug-18 4,779' 1,102 73 % 1,091
Harlan Bethune 26H Live Oak 11-May-18 22-Jul-18 15-Aug-18 4,073' 1,234 79 % 1,066
Harlan Bethune 27H Live Oak 13-May-18 22-Jul-18 15-Aug-18 3,314' 1,183 76 % 901
Justin Tom 05H Atascosa 17-Jun-18 12-Aug-18 3-Sep-18 6,258' 1,296 88 % 1,146
Justin Tom 06H Atascosa 14-Jun-18 12-Aug-18 3-Sep-18 6,299' 1,042 91 % 826
Harlan Bethune 34H Live Oak 25-Jun-18 3-Aug-18 19-Aug-18 3,528' 1,691 76 % 1,588
Harlan Bethune 35H Live Oak 22-Jun-18 3-Aug-18 19-Aug-18 3,702' 1,738 79 % 1,579
James Keith Esse 06H Live Oak 23-Jul-18 12-Oct-18 13-Nov-18 5,175' 1,212 74 % 1,222
James Keith Esse 07H Live Oak 25-Jul-18 12-Oct-18 13-Nov-18 5,178' 923 75 % 966
James Keith Esse 08H Live Oak 27-Jul-18 12-Oct-18 13-Nov-18 5,180' 1,119 75 % 1,148
James Keith Esse 09H Live Oak 29-Jul-18 12-Oct-18 13-Nov-18 5,164' 1,333 73 % 1,291
Idylwood 04H Live Oak 10-Aug-18 28-Sep-18 16-Oct-18 6,445' 1,021 83 % 1,079
Idylwood 05H Live Oak 7-Aug-18 28-Sep-18 16-Oct-18 5,487' 1,171 81 % 1,152
Harlan Bethune 22H Live Oak 17-Sep-18 27-Nov-18 15-Dec-18 5,301' 624 79 % 767
Harlan Bethune 23H Live Oak 21-Sep-18 27-Nov-18 15-Dec-18 5,621' 1,330 79 % 1,134
Harlan Bethune 24H Live Oak 25-Sep-18 27-Nov-18 15-Dec-18 5,737' 653 74 % 687
Hoskins 20H McMullen 25-Sep-18 8-Nov-18 2-Dec-18 7,266' 561 86 % 463
Hoskins 21H McMullen 27-Sep-18 8-Nov-18 2-Dec-18 7,116' 909 82 % 889
Roy Esse 15H Live Oak 30-Nov-18 - - - - -   -
Roy Esse 16H Live Oak 28-Nov-18 - - - - -   -
Roy Esse 17H Live Oak 26-Nov-18 - - - - -   -
Roy Esse 18H Live Oak 24-Nov-18 - - - - -   -
Bracken 22H McMullen 24-Jan-19 10-Mar-19 - - - -   -
Bracken 23H McMullen 22-Jan-19 10-Mar-19 - - - -   -
Georgia Buck 01H Live Oak 21-Feb-19 - - - - -   -
Georgia Buck 02H Live Oak 23-Feb-19 - - - - -   -
Georgia Buck 03H Live Oak 25-Feb-19 - - - - -   -
Georgia Buck 10H Live Oak 27-Feb-19 - - - - -   -


The tables below set forth the Company’s hedge position as of 22nd March5:

HEDGE POSITION OVERVIEW 

  Total Oil Derivative Contracts Gas Derivative Contracts
  Weighted Average Weighted Average
Year Units (Bbls) Floor Ceiling Units (Mcf) Floor Ceiling
2019 2,032,000 $60.33 $67.19 2,690,000 $2.91 $3.17
2020 1,686,000 $55.01 $59.65 1,536,000 $2.65 $2.70
2021 612,000 $48.49 $59.23 1,200,000 $2.66 $2.66
2022 528,000 $45.68 $60.83 1,080,000 $2.69 $2.69
2023 160,000 $40.00 $63.10 240,000 $2.64 $2.64
Total 5,018,000 $ 54.91 $ 62.88 6,746,000 $ 2.76 $ 2.88


CRUDE OIL HEDGE POSITION BY BASIS

  LLS Derivative Contracts Brent Derivative Contracts WTI Derivative Contracts
  Weighted Average Weighted Average Weighted Average
Year Units (Bbls) Floor Ceiling Units (Bbls) Floor Ceiling Units (Bbls) Floor Ceiling
2019 140,000 $52.51 $62.51 797,000 $61.23 $69.55 1,095,000 $60.68 $66.07
2020 - - - - - - 1,686,000 $55.01 $59.65
2021 - - - - - - 612,000 $48.49 $59.23
2022 - - - - - - 528,000 $45.68 $60.83
2023 - - - - - - 160,000 $40.00 $63.10
Total 140,000 $ 52.51 $ 62.51 797,000 $ 61.23 $ 69.55 4,081,000 $ 53.76 $ 61.60


The following unaudited tables present certain production, per unit metrics and Adjusted EBITDAX that compare results of the corresponding quarterly and annual reporting periods:

  Three Months Ended December 31,   Twelve Months Ended December 31,   % Change
Unaudited 2018   2017   2018   2017   Qtr.-over-
Qtr
  Yr.-over-
Yr.
Net Sales Volumes                      
Oil (Bbls)   844,391     438,735     2,256,043     1,799,752   92 %   25 %
Natural gas (Mcf)   1,121,258     1,146,789     4,533,604     3,621,289   -2 %   25 %
NGL (Bbls)   153,672     93,574     496,624     323,669   64 %   53 %
Total sales (Boe)   1,184,939     723,440     3,508,268     2,726,969   64 %   29 %
Plant fuel & unaccounted for natural gas and NGLs (Boe)   27,600     -     73,000     -   100 %   100 %
flared gas (Boe)   91,145     61,555     190,341     142,350   48 %   34 %
Total production (Boe)   1,303,684     784,995     3,771,610     2,869,319   66 %   31 %
                       
Average Daily Volumes                      
Average daily sales   12,880     7,863     9,612     7,471   64 %   29 %
                       
Product Price Received                      
Total price received (per Boe) $ 49.23   $ 39.20   $ 48.92   $ 38.28   26 %   28 %
Total realized price (per Boe)(1)(2)(3) $ 56.04   $ 37.56   $ 46.84   $ 37.67   49 %   24 %
Total price received - Oil (per Bbl) $ 60.30   $ 53.03   $ 65.13   $ 49.53   14 %   32 %
Total price realized - Oil (per Bbl)(1) $ 70.38   $ 50.24   $ 62.11   $ 48.70   40 %   28 %
Total price received - Natural gas (per Mcf) $ 3.03   $ 2.45   $ 2.65   $ 2.41   24 %   10 %
Total price realized - Natural gas (per Mcf)(2) $ 2.62   $ 2.49   $ 2.57   $ 2.36   5 %   10 %
Total price received - NGL (per Bbl) $ 26.20   $ 24.34   $ 25.51   $ 20.14   8 %   27 %
Total price realized - NGL (per Bbl)(3) $ 26.29   $ 24.34   $ 25.29   $ 20.14   8 %   26 %
                       
(1) Included realized gains on oil derivatives of $8.5 million and realized losses of $1.2 million for the three months ended December 31, 2018 and 2017, respectively, and realized losses of $0.1 million and $1.5 million for the twelve months ended December 31, 2018 and 2017, respectively. Also includes the impact of a fixed price delivery contract of $2.97/bbl for the twelve months ended December 31, 2018.
(2) Included realized losses on natural gas derivatives of $0.5 million and $39 thousand for the three months ended December 31, 2018 and 2017, respectively, and realized losses of $0.4 million and realized losses of $0.2 million for the twelve months ended December 31, 2018 and 2017, respectively.
(3) Included realized gains on NGL derivatives of $13 thousand for the three months ended December 31, 2018 and realized losses of $0.1 million for the twelve months ended December 31, 2018.

 

UNIT COST ANALYSIS Three Months Ended December 31,       Twelve Months Ended December 31,    
Unaudited   2018       2017     %
Change
    2018       2017     %
Change
Revenue/Boe $ 49.23     $ 39.20     25.6 %   $ 48.92     $ 38.28     27.8 %
Lease operating expenses/Boe   (6.75 )     (7.65 )   (11.8 %)     (8.04 )     (6.28 )   28.0 %
Workover expense/Boe   (1.14 )     (1.90 )   (39.8 %)     (1.64 )     (1.94 )   (15.5 %)
Gathering and Transportation Expense/Boe(1)   (2.57 )     -     100.0 %     (1.67 )     -     100.0 %
Production taxes/Boe   (2.13 )     (2.19 )   27.9 %     (2.76 )     (2.43 )   13.8 %
Cash G&A/Boe(2)   (2.77 )     (4.82 )   (42.5 %)     (4.19 )     (5.97 )   (29.7 )%
Net per Boe $ 33.87     $ 22.64     49.6 %   $ 30.62     $ 21.66     41.4 %
                       
Adjusted EBITDAX(3)   48,198       15,151     218.1 %     100,092       57,189     75.0 %
Adjusted EBITDAX Margin(4)   72.6 %     55.8 %   30.2 %     60.9 %     55.7 %   9.4 %
                       
(1) Gathering and Transportation expense excludes the $2.8 million deficiency payment associated with the minimum revenue commitment shortfall under one of the Company's gathering, processing and transportation agreements.
(2) Cash G&A represents general and administrative expenses (non transaction-related) incurred less equity-settled share based compensation expense, which totaled $0.2 million and $0.5 million for the three months ended December 31, 2018 and 2017, respectively, and expense of $0.5 million and $2.1 million for the twelve months ended December 31, 2018 and 2017, respectively.
(3) See reconciliation of income (loss) attributable to owners of the Company to Adjusted EBITDAX included at end of release.
(4) Adjusted EBITDAX Margin represents Adjusted EBITDAX as a percentage of revenue, inclusive of commodity derivative settlements, during the period.


Condensed Consolidated Financial Statements
The Company’s condensed consolidated financial statements are included below.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
               
  Three Months Ended December 31,   Twelve Months Ended December 31,
Unaudited (US$000s)   2018       2017       2018       2017  
Revenue $ 58,336     $ 28,355     $ 164,925     $ 104,399  
Lease operating, workover and production tax expense   (11,878 )     (8,495 )     (43,641 )     (29,029 )
Gathering, processing and transportation expense   (5,804 )     -       (8,633 )     -  
Depreciation and amortisation expense   (23,468 )     (13,354 )     (67,909 )     (58,361 )
General and administrative expense   (3,452 )     (3,997 )     (15,227 )     (18,345 )
Transaction-related expense   (19 )     -       (12,396 )     -  
Gain (loss) on commodity hedging, net(1)   92,004       (8,187 )     40,216       (2,894 )
Finance costs, net of amounts capitalized   (8,035 )     (4,073 )     (25,405 )     (13,491 )
Loss on debt extinguishment   -       -       (2,428 )     -  
Impairment expense   (20,163 )     (5,434 )     (43,945 )     (5,583 )
Other items income (expense), net(2)   (2,912 )     1,215       3,794       (1,004 )
               
Income (Loss) before income tax   74,609       (13,970 )     (10,649 )     (24,308 )
               
Income tax expense (benefit)   (9,880 )     3,300       (17,490 )     1,873  
               
Income (Loss) attributable to owners of the Company $ 64,729     $ (10,670 )   $ (28,139 )   $ (22,435 )
               
(1) Included an unrealised gain on commodity hedging of $83.9 million and an unrealized loss of $7.0 million for the three months ended December 31, 2018
and 2017 respectively, and an unrealised gain of $40.8 million and an unrealised loss of $1.2 million for the year ended December 31, 2018 and 2017 respectively.
(2) Included a realized gain on foreign currency derivatives of $6.8 million for the twelve months ended December 31, 2018.


CONDENSED CONSOLIDATED BALANCE SHEETS
         
(US$'000s) December 31, 2018   December 31, 2017
  (Unaudited)   (Audited)
Cash $ 1,581     $ 5,761  
Trade and other receivables   23,633       4,006  
Derivative assets - current   24,315       -  
Other current assets   3,546       3,855  
Assets held for sale(1)   24,284       61,064  
Total current assets   77,359       74,686  
         
Oil and gas properties   712,870       373,775  
Derivative assets - non current   8,003       -  
Other assets   3,847       6,157  
Total assets $ 802,079     $ 454,618  
         
Current liabilities $ 70,919     $ 67,454  
Derivative liabilities - current   436       5,618  
Liabilities held for sale(1)   1,125       1,064  
Total current liabilities   72,480       74,136  
         
Credit facilities, net of financing fees   300,440       189,310  
Derivative liabilities - non current   2,578       3,728  
Other non current liabilities   33,206       10,093  
Total liabilities $ 408,704     $ 277,267  
         
Net assets $ 393,375     $ 177,351  
Equity $ 393,375     $ 177,351  
 
(1) The Company's Dimmit County Eagle Ford assets (and related liabilities) were classified as held for sale as of December 31, 2018 and 2017.


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
       
  Twelve Months Ended December 31,
Unaudited (US$000s)   2018       2017  
Operating      
Receipts from sales $ 153,424     $ 112,534  
Payments for operating and administrative expenses(1)   (71,250 )     (40,000 )
Payments for commodity derivative settlements, net   (5,186 )     (1,428 )
Other, net(2)   (1,703 )     3,670  
Net cash provided by operating activities   75,285       74,776  
       
Investing      
Payments for development expenditures   (170,363 )     (101,043 )
Payments for exploration expenditures   (5,294 )     (8,351 )
Payment for Eagle Ford acquisition   (215,789 )     -  
Sale of non current assets   100       15,348  
Other   (363 )     1,543  
Net cash used in investing activities   (391,709 )     (92,503 )
       
Financing      
Proceeds from the issuance of shares   253,517       -  
Payments for the costs of capital raisings   (10,293 )     -  
Receipts from settlements of foreign currency derivatives   6,838       -  
Interest paid, net of capitalized portion   (25,394 )     (12,381 )
Borrowings, net, including production prepayment   104,806       18,444  
Deferred financing costs capitalized   (16,910 )     -  
Other   (297 )     -  
Net cash provided by financing activities   312,267       6,063  
       
Cash beginning of period   5,761       17,463  
FX effect   (23 )     (38 )
Cash at end of period $ 1,581     $ 5,761  
       
(1) The twelve months ended December 31, 2018 includes payments of $13.6 million of transaction-related costs.
(2) Includes $2.3 million of withholding tax payments and $3.9 million of income tax refund (net) for the twelve months ended December 31, 2018 and 2017, respectively.


Conference Call
The Company will host a conference call for investors on Wednesday, March 27, 2019 at 3 p.m. MDT (Thursday, 28 March, 2019 at 8 a.m. AEDT).

Interested investors can listen to the call via webcast at http://www.sundanceenergy.net/events.cfm. The webcast will also be available for replay on the Company’s website.

Additional Information
We define “Adjusted EBITDAX”, a non-IFRS measure, as earnings before interest expense, income taxes, depreciation, depletion and amortization, property impairments, gain/(loss) on sale of non-current assets, exploration expense, share based compensation and income, gains and losses on commodity hedging, net of settlements of commodity hedging and items that the Company believes affect the comparability of operating results such as items whose timing and/or amount cannot be reasonably estimated or items that are non-recurring. Management uses Adjusted EBITDAX to facilitate comparisons of its performance between periods and to the performance of its peers. This non-IFRS financial measure should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with IFRS.

Below is a reconciliation from the net income (loss) attributable to owners of the Company to Adjusted EBITDAX:

IFRS Income (Loss) Attributable to Owners of Sundance Reconciliation to Adjusted EBITDAX
   Three Months Ended December 31,    Twelve Months Ended December 31,
Unaudited (US$000s)    2018        2017        2018        2017  
Income (Loss) attributable to owners of Sundance $ 64,729     $ (10,670 )   $ (28,139 )   $ (22,435 )
Income tax expense (benefit)   9,880       (3,300 )     17,490       (1,873 )
Finance costs, net of amounts capitalized   8,035       4,073       25,405       13,491  
Loss on debt extinguishment   -       -       2,428       -  
Loss (gain) on derivative financial instruments, net   (92,004 )     8,187       (40,216 )     2,894  
Settlement of commodity hedging   8,070       (1,186 )     (599 )     (1,670 )
Loss on interest rate derivative financial instruments, net   2,435       -       2,435       -  
Depreciation and amortization   23,468       13,354       67,909       58,361  
Impairment expense   20,163       5,434       43,945       5,583  
Noncash share-based compensation   170       513       515       2,076  
Acquisition-related costs included in general and administrative expenses(1)   19       -       12,396       -  
Loss (gain) on sale of noncurrent assets   (10 )     (106 )     5       1,461  
Gain on foreign currency derivatives   -       0       (6,838 )     -  
Deficiency related to minimum revenue commitment shortfall   2,757       -       2,757       -  
Other (income) expense, net   486       (1,148 )     599       (698 )
Adjusted EBITDAX $ 48,198     $ 15,151     $ 100,092     $ 57,189  
               
(1) Professional fees included in general and administrative expense related to the Company's Eagle Ford acquisition, which closed April 23, 2018.


The Company reports under International Financial Reporting Standards (IFRS). All amounts are reported in US dollars unless otherwise noted.

The Company’s full Unaudited Activities Report as filed with the Australian Securities Exchange (ASX) and Securities and Exchange Commission on Form 6-K for the Quarter Ended December 31, 2018 can be found at www.sundanceenergy.net.

The Company’s 2017 Annual Report as filed with the ASX and Form 20-F as filed with the SEC can be found at www.sundanceenergy.net. The Company expects to file our 2018 Annual Report with the ASX by March 31, 2018.

About Sundance Energy Australia Limited

Sundance Energy Australia Limited (“Sundance” or the “Company”) is an Australian-based, independent energy exploration company, with a wholly owned US subsidiary, Sundance Energy Inc., located in Denver, Colorado, USA. The Company is focused on the acquisition and development of large, repeatable oil and natural gas resource plays in North America. Current activities are focused in the Eagle Ford. A comprehensive overview of the Company can be found on Sundance’s website at www.sundanceenergy.net .

Summary Information

The following disclaimer applies to this document and any information contained in it. The information in this release is of general background and does not purport to be complete. It should be read in conjunction with Sundance’s periodic and continuous disclosure announcements lodged with ASX Limited that are available at www.asx.com.au and Sundance’s filings with the Securities and Exchange Commission available at www.sec.gov.

Forward Looking Statements

This release may contain forward-looking statements. These statements relate to the Company’s expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like “anticipate”, “believe”, “intend”, “estimate”, “expect”, “may”, “plan”, “project”, “will”, “should”, “seek” and similar words or expressions containing same.

These forward-looking statements reflect the Company’s views and assumptions with respect to future events as of the date of this release and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. These include, but are not limited to, risks or uncertainties associated with the discovery and development of oil and natural gas reserves, cash flows and liquidity, business and financial strategy, budget, projections and operating results, oil and natural gas prices, amount, nature and timing of capital expenditures, including future development costs, availability and terms of capital and general economic and business conditions. Given these uncertainties, no one should place undue reliance on any forward looking statements attributable to Sundance, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this release sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information, please contact:
United States:
John Roberts
VP Finance & Investor Relations
Tel: +1 (720) 638-2400
  Eric McCrady
CEO and Managing Director
Tel: +1 (303) 543-5703
Australia:
Mike Hannell
Chairman
Tel: + 61 8 8274 2128 or
+ 61 418 834 957
   


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1 Adjusted EBITDAX is a Non-IFRS measure, please see reconciliation to net income (loss) attributable to owners of Sundance at the end of this release.

2 The Company’s reserves at 31 December 2018 were announced and filed with the ASX on 11 and 15 March 2019.

3 Adjusted EBITDAX is a Non-IFRS measure, please see reconciliation to net income (loss) attributable to owners of Sundance at the end of this release.

4 Excludes the held for sale Red Ranch 18H & 19H wells in Dimmit County which were DUC wells at 12/31/18 and were brought online in February 2019.

5 Excludes realized hedge volumes which rolled off in January and February 2019.

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