Deutsche Rohstoff AG / DE000A0XYG76

Deutsche Rohstoff AG: Salt Creek Oil & Gas sells Utah assets

EQS-Ad-hoc: Deutsche Rohstoff AG / Key word(s): Disposal
Deutsche Rohstoff AG: Salt Creek Oil & Gas sells Utah assets

14-Nov-2023 / 22:53 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Salt Creek Oil & Gas sells Utah assets
  EUR 17 million income from Utah assets in Q4 2023 group net income expected to exceed 2022 income of EUR 66.2 million Cash inflow of EUR 44 million from the divestments Further increase in the 2023 forecast Forecast for 2024 reduced by the effect of the transaction
Deutsche Rohstoff AG (WKN A0XYG7) announced today, that its wholly owned subsidiary Salt Creek Oil & Gas LLC has sold all of its Utah assets in two transactions.

The assets are composed of around 250 “non-operated” wells with an average working interest of 2.3%. Income of EUR 17 million related to Utah assets in the 4th quarter and increase in the Group’s liquidity by around EUR 44 million.

The forecast changes as follows:

Forecast 2023 (EBITDA increase) Group sales: unchanged at EUR 188 to 198 million EBITDA: EUR 152 to 162 million (previously EUR 138 to 148 million)
Forecast 2024 (reduction)

Base scenario Group sales: EUR 175 to 195 million (previously EUR 190 to 210 million) EBITDA: EUR 130 to 145 million (previously EUR 145 to 160 million)
Increased price scenario Group sales: EUR 190 to 210 million (previously EUR 210 to 230 million) EBITDA: EUR 150 to 165 million (previously EUR 165 to 180 million)
The 2023 forecast assumes a WTI price of USD 75 (previously USD 85). All other assumptions remain unchanged at a EUR/USD exchange rate of EUR/USD 1.08 and a natural gas price of USD 3. The assumptions for the basis of the 2024 forecast also remain unchanged at a EUR/USD exchange rate of EUR/USD 1.12, a natural gas price of USD 3 and a WTI price of USD 75 in the base scenario and USD 85 in the increased price scenario.
 

End of Inside Information

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Information and Explanation of the Issuer to this announcement:

Explanatory part

The transaction is subject to the usual reservations regarding the review of the buyers and purchase price adjustment rules. All parties expect the transaction to be completed by the end of the year. The parties have agreed to not release further details on the sale price.

The adjustment of the forecast is also based on the assumption that the contractually defined closing of the transaction will take place by the end of 2023. If the closing is postponed to 2024, the effects of the forecast adjustment may also be postponed.

The areas in Utah were initially acquired as well as developed by Bright Rock Energy LLC at the end of 2018 and sold to Salt Creek Oil & Gas LLC, which is responsible for various non-operated areas of the Group, last year.

Jan-Philipp Weitz, CEO of Deutsche Rohstoff AG, commented: “With the sale of the acreage in Utah, we have once again achieved a major success. This transaction underlines the positive development of recent years and the high value of our oil and gas production. In addition, this transaction once again demonstrates the high liquidity of US oil and gas assets and the ability to divest assets profitably, without having a negative effect on the other parts of the US business. As a result of this gain, 2023 would again exceed the record net income and earnings per share of the previous year.”

For the definition of EBITDA, please refer to the website of Deutsche Rohstoff AG at https://rohstoff.de/en/apm/.


Mannheim, 14 November 2023


Contact
Deutsche Rohstoff AG
Phone [phone]
[e-mail]
 

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14-Nov-2023 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

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Language:	English
Company:	Deutsche Rohstoff AG
	Q7, 24
	68161 Mannheim
	Germany
Phone:	0621 490 817 0
E-mail:	[e-mail]
Internet:	www.rohstoff.de
ISIN:	DE000A0XYG76
WKN:	A0XYG7
Indices:	Scale
Listed:	Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt (Scale), Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	1772297

End of Announcement	EQS News Service

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1772297  14-Nov-2023 CET/CEST