Endeavor Energy Resources this week disclosed a 24% year-over-year decline in adjusted EBITDA for 2020, while its reported revenue figure was a tad softer, according to two sources familiar with the situation.  

The company booked USD 1.04bn of adjusted EBITDA in 2020, compared to USD 1.37bn in 2019, the sources added. Revenue clocked in at USD 1.68bn, down 0.5% year-over-year.  

However, the revenue decline took a larger hit after adjusting for certain line items that the company includes as costs from operations, sources added. Revenue skated closer to USD 1.59bn, down 15.7% year-over-year, after factoring in positive USD 4.8m in net service company revenue, negative USD 11.3m in net marketing revenue and negative USD 80.6m in derivative cash settlement. 

As of 31 December, Endeavor had roughly USD 1.94bn of liquidity through USD 444.4m of cash and USD 1.494bn of revolver availability. 

At year-end, the company carried 2x of leverage, based on USD 1.04bn of 2020 adjusted EBITDA and USD 2.1bn of total debt, sources added.  

On the horizon, the Autry Stephens-sponsored company projects that it will spend USD 1.4bn-1.55bn in capex in 2021, compared to USD 1bn of capex in 2020. In tandem, the company estimates that production will be between 177 to190 mBoe per day, compared to 170.6 mBoe per day in 2020. 

The company’s 2020 proved reserve volumes had a PV-10 value of around USD 5.2bn, down 33% year-over-year. 

Endeavor’s USD 1bn 5.75% senior unsecured notes due 2028 traded today at 105.215 to yield 4.33%, in line with recent levels, according to MarketAxess. The notes traded at a high of 108.5 to yield 2.928% in December, compared to a low in March 2020 of 60 to yield 14.42%.  

Messages left with the company were not returned.

2021 Debtwire