lone-20210630

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-37670

Lonestar Resources US Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware						81-0874035
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

111 Boland Street, Suite 301, Fort Worth, TX						76107
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (817) 921-1889

Securities Registered Pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol	Name of Exchange on Which Registered
Common Stock, par value $0.001 per share	LONE	OTCQX Best Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer

☐

Accelerated filer

☐

Non-accelerated filer

Smaller reporting company

☒

Emerging growth company

☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

As of August 9, 2021, the registrant had 10,107,081 shares of common stock, par value $0.001 per share, outstanding.

Table of Contents


		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Unaudited Condensed Consolidated Balance Sheets at June 30, 202 1 and December 31, 20 20	1
	Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 202 1 and 20 20	2
	Unaudited Condensed Consolidated Statements of Changes in Stockhold ers ’ E quity (Deficit) for the Three and Six Months Ended June 30, 202 1 and 20 20	3
	Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 202 1 and 20 20	4
	Notes to Unaudited Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	33
PART II.	OTHER INFORMATION	34
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 6.	Exhibits	35
Signatures		36

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

Lonestar Resources US Inc.

Unaudited Condensed Consolidated Balance Sheets

(In thousands, except par value and share data)


	June 30, 2021		December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	18,788	$	17,474
Restricted cash	2,157		8,972
Accounts receivable
Oil, natural gas liquid and natural gas sales	18,838		11,635
Joint interest owners and others, net	1,418		4,076

Derivative financial instruments	—		1,703
Prepaid expenses and other	1,710		1,118
Total current assets	42,911		44,978
Property and equipment
Oil and gas properties, using the successful efforts method of accounting
Proved properties	352,788		314,685
Unproved properties	33,808		34,929
Other property and equipment	19,692		19,680
Less accumulated depreciation, depletion and amortization	(12,982)		(2,056)
Property and equipment, net	393,306		367,238
Accounts receivable	6,256		6,053
Derivative financial instruments	—		395
Other non-current assets	4,232		4,651
Total assets	$	446,705	$	423,315
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	10,929	$	7,651

Oil, natural gas liquid and natural gas sales payable	22,953		18,760
Accrued liabilities	15,594		15,983
Derivative financial instruments	43,539		7,938
Current maturities of long-term debt	22,157		20,000
Total current liabilities	115,172		70,332
Long-term liabilities
Long-term debt	243,199		255,328
Asset retirement obligations	3,707		4,573



Derivative financial instruments	15,539		835

Total long-term liabilities	262,445		260,736
Commitments and contingencies (Note 10)
Stockholders’ equity
Common stock, $0.001 par value, 90,000,000 shares authorized, 10,107,081 and 10,000,149 shares issued and outstanding, respectively	10		10


Additional paid-in capital	93,933		92,953
Accumulated deficit	(24,855)		(716)
Total stockholders’ equity	69,088		92,247
Total liabilities and stockholders’ equity	$	446,705	$	423,315

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.

Lonestar Resources US Inc.

Unaudited Condensed Consolidated Statements of Operations

(In thousands, except per share data)


	Successor		Predecessor		Successor		Predecessor
	Three Months Ended June 30, 2021		Three Months Ended June 30, 2020		Six Months Ended June 30, 2021		Six Months Ended June 30, 2020
Revenues
Oil sales	$	36,369	$	11,976	$	64,234	$	41,986
Natural gas liquid sales	4,940		1,762		9,239		4,362
Natural gas sales	4,718		3,482		12,365		7,902
Total revenues	46,027		17,220		85,838		54,250
Expenses
Lease operating	3,933		4,028		8,379		11,667
Gas gathering, processing and transportation	1,520		875		3,062		3,025
Production and ad valorem taxes	2,497		1,721		4,917		4,091
Depreciation, depletion and amortization	5,860		16,575		11,169		40,929
Loss on sale and disposal of oil and gas properties	—		1,254		—		1,254
Impairment of oil and gas properties	—		—		—		199,908
General and administrative	5,962		5,981

SEC Form 10-Q filed by Lonestar Resources US Inc.