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Yuma Focusing on Restructuring; Makes Exec Changes

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Yuma Energy has detailed recent corporate developments related to its efforts to increase the value of the company.

Schnur Takes Over CEO, CFO, Restructuring Duties

Yuma announced the appointment of Anthony C. Schnur was appointed Chief Restructuring Officer, and on March 28, 2019, he was also appointed Interim CEO of the Company following the departure of Mr. Sam L. Banks.

On April 5, 2019, Mr. Schnur was further appointed Interim CFO in addition to his other duties. As reported, Mr. Schnur will not receive any additional compensation for the incremental duties.

Schnur stated, "We are acting swiftly and diligently to identify an actionable restructuring solution to better position the Company for the future benefit of all stakeholders. We are committed to this process and pursuing a strategy and resulting transaction which may include additional asset sales, one or more acquisitions, restructured debt facilities, equity financings and/or a corporate merger. We believe that a successful resolution to Yuma's financial circumstances will require not only improving cash flow margins, but a likely blend of debt refinancing and asset combinations."

Financial Update - Effort to Boost Value

During the first quarter and continuing to date, the Company has taken significant steps to reduce corporate overhead. These reductions will be reflected in the Company's second quarter results. Additional cost cutting measures are being considered and will be implemented when determined that those reductions will not impair the Company's ability to reasonably manage the business.

In addition, the Company is conducting a comprehensive review of its operations, particularly regarding those wells and facilities with high operating costs. Funds allocated to field work will be directed toward those activities that provide short payback periods, maintain production levels, or provide additional production from higher margin operations. We do not anticipate our activities will include expensive workovers or the drilling of new wells through the restructuring process.

Multiple options to restructure the Company are being investigated and pursued. These include, but are not limited to, restructuring the Company's credit facility, which may involve the sale of our existing commercial bank loan to a third party, sales of additional properties, or acquisitions from or with a financial sponsor to create a larger company with greater operating activities. The Company is engaged in various discussions on these fronts and continues to work with Seaport Global Securities LLC, an investment banking firm, to advise the Company on its strategic alternatives.