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.
We look forward to this next phase of growth as we streamline operations and push towards revenue growth and profitability.
- 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.
To 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.
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 risk, onshore oil and gas properties within the major oil and gas plays in the U.S. The Company’s dual-focused growth strategy relies primarily on leveraging management’s expertise to grow through the strategic acquisition of revenue producing royalty interest and strategic and opportunistic non-operated working interests. www.verdebh.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this press release that are not strictly historical are “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements involve a high degree of risk and uncertainty, are predictions only and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include the uncertainty regarding viability and market acceptance of the Company’s products and services, the ability to complete software development plans in a timely manner, changes in relationships with third parties, product mix sold by the Company and other factors described in the Company’s most recent periodic filings with the Securities and Exchange Commission, including its 2022 Annual Report on Form 10-K and quarterly reports on Form 10-Q.
Kirin Smith, President
PCG Advisory, Inc.