Verde Bio Holdings Provides First Quarter Corporate Update
FRISCO, TX - (NewMediaWire) - September 19, 2023 - Verde Bio Holdings, Inc. (OTC: VBHI), an emerging oil and gas royalty company, today issued its first quarter shareholder update, along with its 10-Q filing with the highlights of the quarter and a discussion of its future prospects. The Company remains optimistic about the oil and gas industry’s macro growth prospects and the opportunistic acquisition opportunities that the current and foreseeable environment may provide for the Company. The Company believes that the extended decline in pricing is an ideal environment to capitalize on opportunities to accelerate its next phase of growth. With acquisition opportunities that current lower prices present and as commodity prices rise again in the future, so does the Company’s revenue on a relative basis with no increased cost to Verde. Management believes the Company is very well positioned for the next phase of its growth. Commenting on the results, CEO Scott Cox said:"We remain strongly focused on consistent execution on our growth initiatives as we continue to engage in the strategic expansion of our low-risk, long-life, low-decline asset acquisition model. Our differentiated and value focused business model continues to deliver exceptional results. The pullback in commodity prices provides for attractive acquisitions that fit within our core focus and we remain actively engaged. With our transition into a more traditional E&P company which holds a significant portfolio of revenue producing royalties well underway, we are very excited about our prospects. We look forward to this next phase of growth as we streamline operations and push towards revenue growth and profitability.First Quarter Key Highlights The Company remains focused on the consistent execution of its business model and is pleased to share the below highlights: Total Reserves as of 07/31/2023 were $1.79 million PV-10 value based upon SEC required pricing at $78.37/bbl oil and $4.08/MMBTU/ of Natural Gas.Total Adjusted Revenue of $75,694. This revenue is net of non-cash adjustments of recorded depletion expense of $56,083 during the first quarter, which represents the proportionate use of the produced units in the properties relative to proven and probable reserves. Further the revenue is net of depreciation expense of $15,483. Revenue was down due to lower natural gas prices during the quarter given our portfolio is currently heavily weighted to gas. However, the Company is looking forward to higher gas prices as we go into the fall and winter and the new wells that will be coming online in its Haynesville Shale properties in the near future.Portfolio Highlights and Acquisition ActivityTo date, the Company has made over 18 acquisitions of revenue producing properties and recently announced an option to acquire another. The Company currently has revenue producing royalty interests in over 400 wells under operators such as SWN Energy, EOG, Civitas, Ovintiv, Aethon, Ascent, Chesapeake, Petro Operating and other major, well-funded operators.Verde continues to have a healthy pipeline of new deal-flow and is evaluating potential acquisitions which complement its portfolio, as well as seeking opportunistic divestments in which it can make large profits, while actively managing the portfolio to maximize revenue based on current commodity environments. Active management also includes seeking divestment of low-performing assets to free up needed cash for reinvestment into better performing and higher growth potential assets. As the Company recently announced, it sold 55% of 3 lower performing assets for ~$398,750 and believes the balance will close in the near future.The Company remains focused on execution and is prudently investing in its continued growth, with an emphasis on creating a dynamic and profitable company and focusing on delivering exceptional results for all shareholders. About Verde Bio Holdings, Inc.Verde Bio Holdings, Inc. (OTC: VBHI) is an oil and gas company engaged in the acquisition and management of mineral and royalty interests in lower ...