Drilling & Completions | Well Lateral Length | Capital Markets | Capital Expenditure | Drilling Activity

Extraction Details Preliminary Q3 Results, Production

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Extraction Oil & Gas, Inc. reported certain preliminary financial and operational results for the third quarter of 2021.

Preliminary Highlights:

• Achieved average net sales volumes of 74 MBoe/d, including 25 MBbl/d of crude oil and 21 MBbl/d of NGLs
  
  
• Crude oil, natural gas and NGL sales revenue of $261 million for the third quarter of 2021 compared to $158 million for the third quarter of 2020 for the Predecessor company¹ representing an increase of $103 million, driven primarily by higher crude oil, natural gas and NGL prices
  
  
• On October 29, 2021, the Company will host a special meeting of its shareholders to vote on its previously announced merger (the "Transaction") with Bonanza Creek Energy, Inc. ("Bonanza Creek")

Extraction incurred approximately $10.1 million in capital expenditures during the third quarter. We drilled 2 gross (1.8 net) wells with an average lateral length of 2.5 miles. We completed no wells during the quarter. We turned 17 gross (10.6 net) wells to sales during the third quarter. In addition, we incurred approximately $3.7 million of leasehold and surface acreage additions.

Lease operating expense during the third quarter was $14.0 million ($2.04/Boe) compared to $12.4 million ($1.55/Boe) for the third quarter of 2020 for the Predecessor company. Transportation and gathering expense was $20.8 million ($3.05/Boe) compared to $50.2 million ($6.26/Boe) for the same time period.

General and administrative expense during the third quarter was $10.0 million ($1.46/Boe) compared to $11.6 million ($1.45/Boe) for the third quarter of 2020 for the Predecessor company. Cash G&A was $7.2 million ($1.05/Boe) compared to $9.7 million ($1.21/Boe) for the same time period.

Debt and Liquidity

Extraction ended the third quarter with $95 million of cash and cash equivalents on its balance sheet and no borrowings outstanding under its revolving credit facility. As of the date of this release, our revolving credit facility balance was zero.