Acacia Research reported third-quarter revenue of $54.4 million, down 8% from a year earlier, and a GAAP net loss of $5.6 million. On adjusted measures, the company was profitable. It also highlighted strong revenue from its operated businesses and a large pool of cash, securities and loans receivable.
After the quarter, its Benchmark Energy business arranged a financing of up to $47.5 million for development work in Oklahoma’s Western Anadarko Basin. The financing is intended to support a multi-well program and is non-recourse to Acacia and Benchmark’s other assets.
Key details
- Revenue and earnings: Total revenue was $54.4 million, down 8% year over year. Revenue excluding Intellectual Property Operations was $54.2 million; Acacia said that figure increased for a third consecutive quarter and was near a record.
- GAAP and adjusted results: Acacia recorded a GAAP net loss of $5.6 million, or 6 cents per diluted share. Adjusted net income was $4.3 million, or 4 cents per diluted share. The adjusted figures are non-GAAP measures and are not directly comparable to GAAP results.
- Operating performance: Total Company Adjusted EBITDA was $3.9 million, while Operated Segment Adjusted EBITDA was $9.1 million. Benchmark Energy generated $19.5 million in revenue, its second-strongest quarter since Acacia acquired it.
- Financial resources: At September 30, Acacia had $346.3 million in cash, cash equivalents, equity securities measured at fair value and loans receivable—equivalent to $3.55 per share. That was up from $3.43 per share at the end of the prior quarter. The company said it had no parent-company debt.
- Benchmark financing: After quarter-end, Benchmark closed a senior secured note financing of up to $47.5 million, of which $27.5 million was committed. Proceeds are intended to fund a multi-well development program in the Western Anadarko Basin. The financing is non-recourse to Acacia and Benchmark’s other assets.
What changes
The Benchmark financing provides funding for a specific development program while, as described by Acacia, keeping the program’s financing risk separate from the parent company and Benchmark’s other assets. Acacia’s reported $346.3 million of cash, securities and loans receivable, alongside the absence of parent-company debt, gives context for its stated focus on acquisitions and capital allocation.