Oil Corporation, Ranger announced financial and operational results for the 4Q and full-year 2021; its near-term plans for shareholder return initiatives through share repurchases; quarterly dividends, and the Company’s 2022 outlook.
Oil company 4Q results
Firstly, the company sold 27,516 barrels of oil per day, for the fourth quarter of 2021; exceeding the mid-point of upward revised oil sales guidance. Total sales volumes were 40,236 barrels of oil equivalent per day.
Secondly, the reported net income was $68 million, and the adjusted net income of $76 million; also, the generated adjusted EBITDAX reached $149 million. Besides de organization generated a significant free cash flow of $44 million.
As a result of ongoing improvements in cycle times, Ranger completed its anticipated fourth quarter drilling and completion program earlier than expected allowing the Company to begin completions on four additional wells in 2021, bringing total D&C capital expenditures to $82.8 million.
Planned shareholder return and free cash flow initiatives
Ranger expects to produce over $250 million of free cash flow in 2022 at current commodity prices.
The company is targeting $100 million share repurchase program authorization beginning in the second quarter of 2022; and will continue the debt reduction providing financial and strategic flexibility.
As well Ranger plans to initiate annualized dividend of $0.25 per share ($0.0625 per share quarterly), beginning third quarter 2022.
Consolidation and prospects
The oil corporation transformed the balance sheet, accessing the unsecured debt markets to term out and refinance the majority of the debt, while simultaneously increasing the borrowing base and liquidity.
2021 was a truly transformative year for our Company, and I couldn’t be more proud of our team. Due to our low operating cost, high oil cut and premium Gulf Coast pricing, we produced one of the highest Adjusted EBITDAX margins of any public US independent.
Darrin Henke, President and Chief Executive Officer.
Also, Ranger closed the previously announced acquisition of Lonestar Resources, acquired at a discount to PDP value in a lower price environment, and increased the estimated inventory life to approximately 20 years at our current pace of development.
Besides, the company grew the total proved and proved developed reserve volumes by 90% and 82% respectively, while reducing the leverage ratio and producing over $100 million of free cash flow.
Best of all, it reported EBITDAX and free cash flow expected to more than double in the current commodity price environment.
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Next steps inside the company
First, consolidation is a highly attractive objective in Ranger. It will continue in a disciplined manner, maintaining a strong balance sheet and pursuing only accretive opportunities with clear value potential through the combination.
Second, Ranger plans to initiate a $0.25 per share annualized dividend, beginning in the third quarter.
Third, it will authorize a $100 million share repurchase program, with a focus on acquiring shares when the market enterprise value is attractive relative to the intrinsic value of the assets.
Finally, Ranger will focus on socially and environmentally responsible initiatives, as well as invest in the communities in which it operates and live.
Fourth Quarter 2021 and Full-Year Operating Results
Total sales volumes for the fourth quarter of 2021 were 3.7 million barrels of oil equivalent, or 40,236 boe/d. Ranger sold 10.2 MMboe, or 27,822 boe/d for the full-year 2021.
During the fourth quarter of 2021, the Company completed and turned in line 12 gross (10.4 net) wells. In 2021, the Company completed and turned in line 46 gross (40.4 net) wells.
2022 Outlook
Firstly, Ranger anticipates operating approximately two continuous drilling rigs, with an occasional spot rig to maximize operating efficiencies..
We expect the timing impact of our transition to longer laterals to result in a smaller contribution of production in the current first quarter, while increasing production in the second and third quarters. Our anticipated development program is expected to result in a high single to low double digit pro forma annual production growth rate for the year, which we believe will generate over $250 million in free cash flow at current commodity prices.
About Ranger Oil Corporation
Ranger Oil Corporation is an independent oil and gas company; involve in the exploration, development and production of oil, NGLs and natural gas; it operates in several onshore regions of the United States.
Additionally, Ranger Oil is committed to reduce the environmental impact of its operations; as well as,complying with all applicable federal, state, and local laws and regulations in regard to its operations.
Also, with the purpose to minimize its operational its processes include reducing air emissions, minimize the use of freshwater, prevent spills, and safeguard local water supplies.
Besides, to decrease the operational impact, these efforts also improve efficiency, lower costs, and reducerisk.
At the end, the result is a more stable and sustainable business; that benefits all of the Company’s stakeholders.
For more information, please visit our website at www.Rangeroil.com.
