Exhibit 99.1

Sundance Energy Inc. Reports Second Quarter 2020
Financial and Operating Results

DENVER, AUGUST 10, 2020 – Sundance Energy Inc. (NASDAQ: SNDE) (“Sundance” or the “Company”) today reported operational and financial results for the second quarter of 2020.

Key Second Quarter 2020 Highlights

Eric McCrady, Sundance’s Chief Executive Officer, stated, “The Company’s focus during the second quarter of 2020 was to continue cutting costs through operational and capital efficiencies in response to current market conditions. Many of the renegotiated prices and operational changes we made in the field in March began to bear fruit in the form of lower operating costs, including through our continued application of automation and data analysis. Additionally, as previously disclosed during the second quarter the Company took significant action, including reductions in headcount, partial furloughs, and significant compensation reductions for management and the board of directors. The Company also greatly reduced our 2020 development program, which is now substantially completed for the year. All these steps, in conjunction with our very robust hedge book, position the Company to weather the current market conditions and achieve our stated goal of generating free cash flow and ultimately deleveraging our balance sheet.”

¹ Adjusted EBITDAX is a non-GAAP measure defined as earnings before interest expense, income taxes, depreciation, depletion and amortization, property impairments, gain/(loss) on sale of non-current assets, exploration expense, share-based compensation, gains and losses on commodity hedging, net of settlements of commodity hedging, and certain other non-cash or non-recurring income/expense items. See Appendix for reconciliation to net income which is a GAAP measure.

² Cash Operating Costs is a non-GAAP measure. Please see appendix for reconciliation to Operating Costs which comprises GAAP measures. 

³ Adjusted Cash G&A is a non-GAAP measure. Please see appendix for reconciliation to G&A which is a GAAP measure.

Second Quarter 2020 Operational Update

In mid-April of the second quarter, the Company completed drilling a two well Bracken pad in McMullen County it began drilling in the first quarter and then released its drilling rig. These Bracken wells will be held as DUC wells until commodity prices warrant completing them. The Company has no additional drilling plans currently.

During the second quarter of 2020, the Company completed a four well Harlan Bethune pad in Live Oak County in April but did not begin flowing the well back until mid-June once commodity pricing had improved. Significantly, the Company continued the utilization of its “slowback” choke regime which was introduced in the first quarter for its Washburn Ranch wells. The Harlan Bethune pad was brought online under restricted choke for an extended duration to delay initial production volumes in favor of preserving wellbore pressure for a longer period of time and to benefit from higher future crude prices.

The Company initiated a “dual-frac” methodology on the Harlan Bethune pad. This operational approach allowed the Company to frac two laterals simultaneously with a single frac crew, thereby increasing the number of stages completed per day by an estimated 60% and reducing cycle time on location by 40%. The Company estimates that this process reduced the cost of completing the four well pad by approximately $500,000.

Second Quarter 2020 Financial Results

Total net sales volumes in the second quarter of 2020 decreased approximately 22% from the first quarter of 2020 to 773.6 Mboe, or 8,501 Boepd (approximately 66% oil, 18% gas and 16% natural gas liquids by volume). This decrease is attributable to the Company’s greatly reduced development program and capital spending. During the second quarter the Company brought only the four well Harlan Bethune pad onto production in mid-June under a highly restricted choke. As a result, the wells did not contribute much sales volumes during the second quarter.

Realized pricing for the second quarter excluding the impact of hedging was $23.13 per barrel of crude oil, $1.42 per mmbtu of natural gas, and $16.55 per barrel of NGLs. The realized crude price represents a $4.83 per barrel discount to average WTI pricing of $27.96 for the quarter. Average realized price per barrel of oil for the period including hedges was $62.30. Average realized pricing per Boe for the period excluding the impact of hedges was $19.56 and $46.03 including the impact of realized hedges.

Total revenue for the second quarter of 2020 was $15.1 million compared to $32.3 million for the first quarter of 2020. Net loss for the second quarter of 2020 was $35.8 million, which included the impact of a $23.0 million loss related to commodity hedging comprising a realized hedge gain of $20.5 million and an unrealized hedge loss of $43.5 million caused by the rebounding of oil prices since the end of the first quarter. The Company has generated net income of $24.5 million year to date in 2020. Adjusted EBITDAX⁴ was $25.0 million for the second quarter of 2020 and $45.0 million year to date.

⁴ Adjusted EBITDAX is a non-GAAP measure. See Appendix for reconciliation to net income which is a GAAP measure.

Total operating costs for the second quarter of $15.25 per Boe were significantly lower than first quarter 2020 operating costs of $19.52 per Boe. Total cash operating costs⁵ for the quarter of $14.06 per Boe were also significantly lower as compared to first quarter 2020 costs of $19.20 per Boe. These reductions were driven by the Company’s cost reduction efforts in response to the significant decrease in commodity pricing.

In March 2020, the Company made significant field operating changes and renegotiated pricing with a number of our vendors due to the material drop in market oil prices, which reduced our costs on an absolute basis. Most of these new costs savings began to be realized during the second quarter 2020 resulting in significant declines across all operating cost categories including Lease Operating Expenses (“LOE”) on an absolute basis.

Workover expenses for the period were immaterial as the Company has transitioned to managing its workover projects by exception, specifically prioritizing higher production wells and deferring workovers for low production wells in response to the lower price environment. Gathering, Processing and Transportation (“GP&T”) fees were roughly flat as compared to the first quarter of 2020.

As previously disclosed, the Company put in place significant G&A rationalizations during the quarter which began to result in savings. G&A for the quarter including non-cash stock-based compensation expense, certain non-recurring transaction and redomiciliation related expenses and charges related to the Company’s reduction in force was $4.0 million while adjusted Cash G&A⁶ for the period was $3.1 million. These figures represent 28% and 42% decreases respectively as compared to the first quarter of 2020.

Production taxes for the quarter represented a credit of $0.3 million, or a $2.3 million expense decrease as compared to the first quarter of 2020 due to an overall decrease in revenues and an expected severance tax refund.

The unaudited table below presents certain per Boe cost and margin metrics that compare results of the corresponding prior quarterly and semi-annual reporting periods:

⁵ Cash operating costs is a non-GAAP measure. See Appendix for reconciliation to operating costs which comprises GAAP measures.

⁶ Adjusted Cash G&A is a non-GAAP measure. Please see appendix for reconciliation to G&A which is a GAAP measure.

(1) G&A per BOE was $5.13 and $4.29 for the three months ended June 30, 2020 and 2019, respectively and $5.40 and $4.52 for the six months ended June 20, 2020 and 2019, respectively. Adjusted Cash G&A, a non-GAAP measure represents general and administrative expenses (non transaction-related) incurred less equity-settled share based compensation expense and expenses associated with the Company's reduction-in-force- in May 2020. See reconciliation of G&A to Adjusted Cash G&A at the end of this release.

(2) See reconciliation of net income (loss) to Adjusted EBITDAX included at end of release.

(3) Adjusted EBITDAX margin represents Adjusted EBITDAX as a percentage of revenue, inclusive of commodity derivative settlements, during the period.

(4) Net income (loss) margin represents net income (loss) as a percentage of revenue, inclusive of commodity derivative settlements, during the period.

(5) Cash operating costs is a Non-GAAP measure comprising lease operating expense (including workover expense), gathering, processing and transportation expense, production taxes and G&A, excluding stock-based compensation, redomiciliation and transaction related expenses, and expenses associated with the Company's reduction-in-force in May 2020.

Balance Sheet and Liquidity

On June 25, 2020, Sundance announced a decrease to its revolving credit facility (the “Revolver”) to a $170.0 million borrowing base and elected commitment. At June 30, 2020, $115.0 million was outstanding on this facility. Including the impact of $0.3 million of cash on the balance sheet and $16.4 million of letters of credit outstanding, at the end of the second quarter, Sundance had $38.9 million of available liquidity in the form of cash and availability under its borrowing base. As of June 30, 2020, the Company was in compliance with all financial and other covenants under its Second Lien Term Loan (the “Term Loan”) and Revolver that were determinable as of the date of this release.

The Company has responded to the commodity price decrease by renegotiating prices with a number of our vendors and have agreements in place for reduced costs from a number of service providers, all of which serves to materially reduce our cost structure relative to the assumptions in our year end 2019 reserve report. The Company also has in place significant price protection through its existing commodity hedge book. This hedge book combined with cost reductions are expected to reduce the impact of recent commodity price declines.

On June 24, 2020, the Company entered into the fifth amendment to the Revolver. In addition to the borrowing base reduction, the amendment increased the interest rate margin to 2.50% to 3.50%, depending on the level of funds borrowed, and incorporated changes corresponding to the third amendment to the Term Loan described below.

As required by the Term Loan waiver necessary to waive certain defaults thereunder arising from the inclusion of a going concern explanatory paragraph included in our audit report for the year ended December 31, 2019 and related issues, the Company entered into the third amendment to the Term Loan on June 24, 2020. The third amendment modified the Company’s Term Loan agreement as follows:

Capital Spending

Total capital expenditures for the second quarter were $35.2 million, of which $30.7 million was for drilling and completion activities.

Hedge Overview

As of the date of this release, Sundance’s current crude oil hedge position represents 7,810 Bopd with a weighted average floor price of $53.66 for 2020 and 6,690 Bopd with a weighted average floor price of $49.18 for 2021.

The table below provides a summary of the Company’s current oil and natural gas hedge positions as of the date of this report and excludes any contracts which rolled off during the first seven months of 2020:

2020 Capital Program and Guidance

Sundance’s near-term strategic goal is to generate free cash flow in 2020. Given the elevated volatility and depressed commodity pricing of the current market, the Company has responded to market conditions to protect its balance sheet, retain liquidity, and preserve inventory and will continue to operate accordingly. As a result, the Company has reduced its capital program and anticipates spending $40-45 million for full year 2020. The Company is currently not engaged in any drilling activity and has released its drilling rig. Additionally, the Company is not currently completing any wells.

Liquidity Outlook

In considering its liquidity requirements for the remainder of 2020, the Company evaluated its known future commitments and obligations including those discussed above and is considering a variety of potential strategic alternatives to address these obligations. Accordingly, the Company may seek to refinance or otherwise recapitalize its outstanding indebtedness. However, there can be no assurance that any refinancing, or an alternative recapitalization of the Company’s outstanding indebtedness will be possible on acceptable terms, if at all. The Company’s ability to seek additional sources of funding will depend on its future financial position and results of operations, which are subject to general industry conditions and to general economic, political, financial, competitive, legislative, and regulatory factors beyond our control.

Second Quarter 2020 Summary Financial Statements

CONSOLIDATED STATEMENTS OF OPERATIONS

⁽¹⁾ In 2019 and early 2020, the Company incurred one-time costs, primarily legal and accounting fees, to complete its Redomiciliation to the U.S. Additionally, in 2020, the Company incurred costs to amend its credit facilities and explore transactions to reduce its leverage (as required by the third amendment to the Term Loan).

⁽²⁾ The three and six months ended June 30, 2020, included an unrealized loss of $43.5 million and an unrealized gain of $45.5 million related to commodity derivatives, respectively. The three and six months ended June 30, 2019 included an unrealized gain of $10.5 million and an unrealized loss of $26.6 million related to commodity derivatives, respectively.

CONDENSED CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENT OF CASH FLOWS

Appendix

Below are certain reconciliations and explanations of non-GAAP measures utilized in this report.

Prior to the Company’s redomiciliation to the United States in November 2019, its financials were reported in accordance with International Financial Reporting Standards (“IFRS”). Following the redomiciliation, the Company converted its historical financial statements to accounting principles generally accepted in the United States of America (“GAAP”). Accordingly, financial statements and figures, including comparative historical amounts, are presented in accordance with GAAP.

Reconciliation of GAAP “Net Income” to Non-GAAP “Adjusted EBITDAX”

Adjusted EBITDAX is a non-GAAP financial measure that is used as a supplemental financial measure by the Company and by external users of our financial statements, such as investors, commercial banks and others, to assess our operating performance as compared to that of other companies in our industry, without regard to financing methods, capital structure or historical costs basis. It is also used to assess our ability to incur and service debt and fund capital expenditures. It is not intended to be, nor should it be used as, a replacement for GAAP measures such as net income (loss).

GAAP Net Income (Loss) Reconciliation to Adjusted EBITDAX

Reconciliation of GAAP “General and Administrative Expenses” to Non-GAAP “Adjusted Cash General and Administrative Expenses”

Net Debt

Net debt is a non-GAAP financial measure which we define as total principle amount of long-term debt liabilities less cash and cash equivalents. Net debt is a commonly accepted measurement utilized for the determination of financial leverage. Net debt excludes unamortized discount and debt issuance costs and should not be utilized as a representation of the Company’s actual indebtedness.

(1) Includes current and non-current balance on revolving credit facility

About Sundance Energy Inc.

Sundance Energy Inc. is an independent energy exploration and production company located in Denver, Colorado. The Company is focused on the acquisition and development of large, repeatable oil and natural gas resource plays in North America. Current activities are focused in the Eagle Ford.  A comprehensive overview of the Company can be found on Sundance’s website at www.sundanceenergy.net

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.   These statements are identified by the use of the words “project,” “believe,” “estimate,” “expect,” “anticipate,” “intend,” “contemplate,” “foresee,” “would,” “could,” “plan,” and similar expressions that are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effect on Sundance. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting Sundance will be those that are anticipated. Sundance’s forward-looking statements involve significant risks and uncertainties (some of which are beyond Sundance’s control) and assumptions that could cause actual results to differ materially from Sundance’s historical experience and present expectations or projections. These include, but are not limited to, risks or uncertainties associated with our previously completed redomiciliation (including the ability to recognize any benefits therefrom), the discovery and development of oil and natural gas reserves, cash flows and liquidity, business and financial strategy, budget, projections and operating results, oil and natural gas prices, amount, nature and timing of capital expenditures, including future development costs, availability and terms of capital, including our ability to secure and execute strategic alternatives or any re-financing and general economic and business conditions, including the impact of the COVID-19 pandemic. You are cautioned not to place undue reliance on forward-looking statements contained in this press release, which speak only as of the date of this press release. Forward-looking statements also are affected by the risk factors described in Sundance’s 10-K filing for the fiscal year ended December 31, 2019, as may be amended, and those set forth from time-to-time in other filings with the SEC. Sundance undertakes no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

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