Form 8-K ENERGEN CORP For: Aug 06
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report
August 6, 2015
Commission File Number |
Registrant |
State of Incorporation |
IRS Employer Identification Number | |||
1-7810 | Energen Corporation | Alabama | 63-0757759 |
605 Richard Arrington Jr. Boulevard North Birmingham, Alabama |
35203 | |
(Address of principal executive offices) | (Zip Code) |
(205) 326-2700
(Registrants telephone number including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 | Results of Operations and Financial Condition |
On August 6, 2015, Energen Corporation issued a press release announcing the second quarter and year-to-date financial results. The press release and supplemental financial information are attached hereto as Exhibit 99.1 and 99.2.
The information furnished pursuant to Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of Energen Corporation under the Securities Act of 1933 or the Exchange Act.
ITEM 7.01 | Regulation FD Disclosure |
Energen Corporation has included reconciliations of certain Non-GAAP financial measures to the related GAAP financial measures. The reconciliations are attached hereto as exhibit 99.3.
The information furnished pursuant to Item 7.01, including Exhibit 99.3, shall not be deemed filed for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of Energen Corporation under the Securities Act of 1933 or the Exchange Act.
ITEM 9.01 | Financial Statements and Exhibits |
(d) Exhibits.
The following exhibits are furnished as part of this Current Report on Form 8-K.
Exhibit |
||
99.1 | Press Release dated August 6, 2015 | |
99.2 | Supplemental Financial Information | |
99.3 | Non-GAAP Financial Measures Reconciliation |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
ENERGEN CORPORATION | ||||||||
August 7, 2015 |
By |
/s/ Charles W. Porter, Jr. | ||||||
Charles W. Porter, Jr. | ||||||||
Vice President, Chief Financial Officer and Treasurer of Energen Corporation |
3
EXHIBIT INDEX
EXHIBIT |
DESCRIPTION | |
99.1* | Press Release dated August 6, 2015 | |
99.2* | Supplemental Financial Information | |
99.3* | Non-GAAP Financial Measures Reconciliation |
* | This exhibit is furnished to, but not filed with, the Commission by inclusion herein. |
4
1 |
2
3
4
5
6
7
8
9
10
11
12
13
Exhibit 99.2
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 3 months ending June 30, 2015 and 2014
2nd Quarter | Change | |||||||||||
(in thousands, except per share data) |
2015 | 2014 | ||||||||||
Revenues |
||||||||||||
Oil, natural gas liquids and natural gas sales |
$ | 219,290 | $ | 355,852 | $ | (136,562 | ) | |||||
Loss on derivative instruments, net |
(50,964 | ) | (84,846 | ) | 33,882 | |||||||
|
|
|
|
|
|
|||||||
Total revenues |
168,326 | 271,006 | (102,680 | ) | ||||||||
|
|
|
|
|
|
|||||||
Operating Costs and Expenses |
||||||||||||
Oil, natural gas liquids and natural gas production |
53,581 | 64,697 | (11,116 | ) | ||||||||
Production and ad valorem taxes |
13,352 | 28,049 | (14,697 | ) | ||||||||
Depreciation, depletion and amortization |
149,843 | 136,244 | 13,599 | |||||||||
Asset impairment |
60,413 | 1,342 | 59,071 | |||||||||
Exploration |
11,018 | 1,233 | 9,785 | |||||||||
General and administrative |
38,652 | 33,542 | 5,110 | |||||||||
Accretion of discount on asset retirement obligations |
1,669 | 1,883 | (214 | ) | ||||||||
(Gain) loss on sale of assets and other |
1,476 | 909 | 567 | |||||||||
|
|
|
|
|
|
|||||||
Total costs and expenses |
330,004 | 267,899 | 62,105 | |||||||||
|
|
|
|
|
|
|||||||
Operating Income (Loss) |
(161,678 | ) | 3,107 | (164,785 | ) | |||||||
|
|
|
|
|
|
|||||||
Other Income (Expense) |
||||||||||||
Interest expense |
(11,244 | ) | (7,964 | ) | (3,280 | ) | ||||||
Other income |
41 | 687 | (646 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total other expense |
(11,203 | ) | (7,277 | ) | (3,926 | ) | ||||||
|
|
|
|
|
|
|||||||
Loss From Continuing Operations Before Income Taxes |
(172,881 | ) | (4,170 | ) | (168,711 | ) | ||||||
Income tax expense (benefit) |
(61,280 | ) | (1,016 | ) | (60,264 | ) | ||||||
|
|
|
|
|
|
|||||||
Loss From Continuing Operations |
(111,601 | ) | (3,154 | ) | (108,447 | ) | ||||||
|
|
|
|
|
|
|||||||
Discontinued Operations, net of tax |
||||||||||||
Loss from discontinued operations |
| (4,799 | ) | 4,799 | ||||||||
|
|
|
|
|
|
|||||||
Loss From Discontinued Operations |
| (4,799 | ) | 4,799 | ||||||||
|
|
|
|
|
|
|||||||
Net Income (Loss) |
$ | (111,601 | ) | $ | (7,953 | ) | $ | (103,648 | ) | |||
|
|
|
|
|
|
|||||||
Diluted Earnings Per Average Common Share |
||||||||||||
Continuing operations |
$ | (1.52 | ) | $ | (0.04 | ) | $ | (1.48 | ) | |||
Discontinued operations |
| (0.07 | ) | 0.07 | ||||||||
|
|
|
|
|
|
|||||||
Net Income (Loss) |
$ | (1.52 | ) | $ | (0.11 | ) | $ | (1.41 | ) | |||
|
|
|
|
|
|
|||||||
Basic Earnings Per Average Common Share |
||||||||||||
Continuing operations |
$ | (1.52 | ) | $ | (0.04 | ) | $ | (1.48 | ) | |||
Discontinued operations |
| (0.07 | ) | 0.07 | ||||||||
|
|
|
|
|
|
|||||||
Net Income (Loss) |
$ | (1.52 | ) | $ | (0.11 | ) | $ | (1.41 | ) | |||
|
|
|
|
|
|
|||||||
Diluted Avg. Common Shares Outstanding |
73,452 | 72,851 | 601 | |||||||||
|
|
|
|
|
|
|||||||
Basic Avg. Common Shares Outstanding |
73,452 | 72,851 | 601 | |||||||||
|
|
|
|
|
|
|||||||
Dividends Per Common Share |
$ | 0.02 | $ | 0.15 | $ | (0.13 | ) | |||||
|
|
|
|
|
|
14
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 6 months ending June 30, 2015 and 2014
Year-to-date | Change | |||||||||||
(in thousands, except per share data) |
2015 | 2014 | ||||||||||
Revenues |
||||||||||||
Oil, natural gas liquids and natural gas sales |
$ | 407,112 | $ | 706,674 | $ | (299,562 | ) | |||||
Loss on derivative instruments, net |
(16,928 | ) | (138,237 | ) | 121,309 | |||||||
|
|
|
|
|
|
|||||||
Total revenues |
390,184 | 568,437 | (178,253 | ) | ||||||||
|
|
|
|
|
|
|||||||
Operating Costs and Expenses |
||||||||||||
Oil, natural gas liquids and natural gas production |
121,335 | 132,141 | (10,806 | ) | ||||||||
Production and ad valorem taxes |
32,417 | 55,373 | (22,956 | ) | ||||||||
Depreciation, depletion and amortization |
284,224 | 260,464 | 23,760 | |||||||||
Asset impairment |
66,996 | 2,588 | 64,408 | |||||||||
Exploration |
11,781 | 12,801 | (1,020 | ) | ||||||||
General and administrative |
70,707 | 65,715 | 4,992 | |||||||||
Accretion of discount on asset retirement obligations |
3,679 | 3,726 | (47 | ) | ||||||||
(Gain) loss on sale of assets and other |
(26,868 | ) | 1,062 | (27,930 | ) | |||||||
|
|
|
|
|
|
|||||||
Total costs and expenses |
564,271 | 533,870 | 30,401 | |||||||||
|
|
|
|
|
|
|||||||
Operating Income (Loss) |
(174,087 | ) | 34,567 | (208,654 | ) | |||||||
|
|
|
|
|
|
|||||||
Other Income (Expense) |
||||||||||||
Interest expense |
(23,002 | ) | (15,852 | ) | (7,150 | ) | ||||||
Other income |
87 | 1,010 | (923 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total other expense |
(22,915 | ) | (14,842 | ) | (8,073 | ) | ||||||
|
|
|
|
|
|
|||||||
Income (Loss) From Continuing Operations Before Income Taxes |
(197,002 | ) | 19,725 | (216,727 | ) | |||||||
Income tax expense (benefit) |
(69,981 | ) | 7,232 | (77,213 | ) | |||||||
|
|
|
|
|
|
|||||||
Income (Loss) From Continuing Operations |
(127,021 | ) | 12,493 | (139,514 | ) | |||||||
|
|
|
|
|
|
|||||||
Discontinued Operations, net of tax |
||||||||||||
Income from discontinued operations |
| 33,920 | (33,920 | ) | ||||||||
Loss on disposal of discontinued operations |
| (1,050 | ) | 1,050 | ||||||||
|
|
|
|
|
|
|||||||
Income From Discontinued Operations |
| 32,870 | (32,870 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net Income (Loss) |
$ | (127,021 | ) | $ | 45,363 | $ | (172,384 | ) | ||||
|
|
|
|
|
|
|||||||
Diluted Earnings Per Average Common Share |
||||||||||||
Continuing operations |
$ | (1.74 | ) | $ | 0.17 | $ | (1.91 | ) | ||||
Discontinued operations |
| 0.45 | (0.45 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net Income (Loss) |
$ | (1.74 | ) | $ | 0.62 | $ | (2.36 | ) | ||||
|
|
|
|
|
|
|||||||
Basic Earnings Per Average Common Share |
||||||||||||
Continuing operations |
$ | (1.74 | ) | $ | 0.17 | $ | (1.91 | ) | ||||
Discontinued operations |
| 0.45 | (0.45 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net Income (Loss) |
$ | (1.74 | ) | $ | 0.62 | $ | (2.36 | ) | ||||
|
|
|
|
|
|
|||||||
Diluted Avg. Common Shares Outstanding |
73,143 | 73,031 | 112 | |||||||||
|
|
|
|
|
|
|||||||
Basic Avg. Common Shares Outstanding |
73,143 | 72,737 | 406 | |||||||||
|
|
|
|
|
|
|||||||
Dividends Per Common Share |
$ | 0.04 | $ | 0.30 | $ | (0.26 | ) | |||||
|
|
|
|
|
|
15
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of June 30, 2015 and December 31, 2014
(in thousands) |
June 30, 2015 | December 31, 2014 | ||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 1,510 | $ | 1,852 | ||||
Accounts receivable, net of allowance |
128,564 | 157,678 | ||||||
Inventories |
17,988 | 14,251 | ||||||
Assets held for sale |
| 395,797 | ||||||
Derivative instruments |
147,789 | 322,337 | ||||||
Prepayments and other |
22,419 | 27,445 | ||||||
|
|
|
|
|||||
Total current assets |
318,270 | 919,360 | ||||||
|
|
|
|
|||||
Property, Plant and Equipment |
||||||||
Oil and natural gas properties, net |
5,493,509 | 5,152,748 | ||||||
Other property and equipment, net |
46,773 | 46,389 | ||||||
|
|
|
|
|||||
Total property, plant and equipment, net |
5,540,282 | 5,199,137 | ||||||
|
|
|
|
|||||
Other assets |
14,094 | 19,761 | ||||||
|
|
|
|
|||||
TOTAL ASSETS |
$ | 5,872,646 | $ | 6,138,258 | ||||
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current Liabilities |
||||||||
Accounts payable |
$ | 94,953 | $ | 101,453 | ||||
Accrued taxes |
14,055 | 5,530 | ||||||
Accrued wages and benefits |
22,217 | 21,553 | ||||||
Accrued capital costs |
110,485 | 207,461 | ||||||
Revenue and royalty payable |
62,179 | 72,047 | ||||||
Liabilities related to assets held for sale |
| 24,230 | ||||||
Pension liabilities |
29,616 | 24,609 | ||||||
Deferred income taxes |
11,970 | 79,164 | ||||||
Derivative instruments |
10,220 | 988 | ||||||
Other |
23,220 | 23,288 | ||||||
|
|
|
|
|||||
Total current liabilities |
378,915 | 560,323 | ||||||
|
|
|
|
|||||
Long-term debt |
686,575 | 1,038,563 | ||||||
Asset retirement obligations |
99,049 | 94,060 | ||||||
Deferred income taxes |
1,001,251 | 1,000,486 | ||||||
Noncurrent derivative instruments |
3,902 | | ||||||
Other long-term liabilities |
12,906 | 30,222 | ||||||
|
|
|
|
|||||
Total liabilities |
2,182,598 | 2,723,654 | ||||||
|
|
|
|
|||||
Total Shareholders Equity |
3,690,048 | 3,414,604 | ||||||
|
|
|
|
|||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 5,872,646 | $ | 6,138,258 | ||||
|
|
|
|
16
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending June 30, 2015 and 2014
2nd Quarter | Change | |||||||||||
(in thousands, except sales price and per unit data) |
2015 | 2014 | ||||||||||
Operating and production data from continuing operations |
||||||||||||
Oil, natural gas liquids and natural gas sales |
||||||||||||
Oil |
$ | 188,599 | $ | 262,746 | $ | (74,147 | ) | |||||
Natural gas liquids |
14,781 | 31,163 | (16,382 | ) | ||||||||
Natural gas |
15,910 | 61,943 | (46,033 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 219,290 | $ | 355,852 | $ | (136,562 | ) | |||||
|
|
|
|
|
|
|||||||
Open non-cash mark-to-market gains (losses) on derivative instruments |
||||||||||||
Oil |
$ | (103,734 | ) | $ | (66,172 | ) | $ | (37,562 | ) | |||
Natural gas liquids |
| 40 | (40 | ) | ||||||||
Natural gas |
(13,133 | ) | 6,511 | (19,644 | ) | |||||||
|
|
|
|
|
|
|||||||
Total |
$ | (116,867 | ) | $ | (59,621 | ) | $ | (57,246 | ) | |||
|
|
|
|
|
|
|||||||
Closed gains (losses) on derivative instruments |
||||||||||||
Oil |
$ | 55,330 | $ | (25,754 | ) | $ | 81,084 | |||||
Natural gas liquids |
| 159 | (159 | ) | ||||||||
Natural gas |
10,573 | 370 | 10,203 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 65,903 | $ | (25,225 | ) | $ | 91,128 | |||||
|
|
|
|
|
|
|||||||
Total revenues |
$ | 168,326 | $ | 271,006 | $ | (102,680 | ) | |||||
|
|
|
|
|
|
|||||||
Production volumes |
||||||||||||
Oil (MBbl) |
3,594 | 2,833 | 761 | |||||||||
Natural gas liquids (MMgal) |
44.9 | 44.7 | 0.20 | |||||||||
Natural gas (MMcf) |
7,134 | 14,676 | (7,542 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total production volumes (MBOE) |
5,853 | 6,344 | (491 | ) | ||||||||
|
|
|
|
|
|
|||||||
Average daily production volumes |
||||||||||||
Oil (MBbl/d) |
39.5 | 31.1 | 8.4 | |||||||||
Natural gas liquids (MMgal/d) |
0.5 | 0.5 | | |||||||||
Natural gas (MMcf/d) |
78.4 | 161.3 | (82.9 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total average daily production volumes (MBOE/d) |
64.3 | 69.7 | (5.4 | ) | ||||||||
|
|
|
|
|
|
|||||||
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments |
||||||||||||
Oil (per barrel) |
$ | 67.87 | $ | 83.65 | $ | (15.78 | ) | |||||
Natural gas liquids (per gallon) |
$ | 0.33 | $ | 0.70 | $ | (0.37 | ) | |||||
Natural gas (per Mcf) |
$ | 3.71 | $ | 4.25 | $ | (0.54 | ) | |||||
Average realized prices excluding effects of all derivative instruments |
||||||||||||
Oil (per barrel) |
$ | 52.48 | $ | 92.74 | $ | (40.26 | ) | |||||
Natural gas liquids (per gallon) |
$ | 0.33 | $ | 0.70 | $ | (0.37 | ) | |||||
Natural gas (per Mcf) |
$ | 2.23 | $ | 4.22 | $ | (1.99 | ) | |||||
Costs per BOE |
||||||||||||
Oil, natural gas liquids and natural gas production expenses |
$ | 9.15 | $ | 10.20 | $ | (1.05 | ) | |||||
Production and ad valorem taxes |
$ | 2.28 | $ | 4.42 | $ | (2.14 | ) | |||||
Depreciation, depletion and amortization |
$ | 25.60 | $ | 21.48 | $ | 4.12 | ||||||
Exploration expense |
$ | 1.88 | $ | 0.19 | $ | 1.69 | ||||||
General and administrative* |
$ | 6.60 | $ | 5.29 | $ | 1.31 | ||||||
Net capital expenditures |
$ | 284,764 | $ | 322,572 | $ | (37,808 | ) | |||||
|
|
|
|
|
|
* | Includes pension and pension settlement expenses of $0.19 and $0.50 for the three months ended June 30, 2015 and 2014, respectively. |
17
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 6 months ending June 30, 2015 and 2014
Year-to-date | Change | |||||||||||
(in thousands, except sales price and per unit data) |
2015 | 2014 | ||||||||||
Operating and production data from continuing operations |
||||||||||||
Oil, natural gas liquids and natural gas sales |
||||||||||||
Oil |
$ | 330,627 | $ | 516,505 | $ | (185,878 | ) | |||||
Natural gas liquids |
25,615 | 59,366 | (33,751 | ) | ||||||||
Natural gas |
50,870 | 130,803 | (79,933 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 407,112 | $ | 706,674 | $ | (299,562 | ) | |||||
|
|
|
|
|
|
|||||||
Open non-cash mark-to-market gains (losses) on derivative instruments |
||||||||||||
Oil |
$ | (155,503 | ) | $ | (87,636 | ) | $ | (67,867 | ) | |||
Natural gas liquids |
| 327 | (327 | ) | ||||||||
Natural gas |
(21,015 | ) | (5,993 | ) | (15,022 | ) | ||||||
|
|
|
|
|
|
|||||||
Total |
$ | (176,518 | ) | $ | (93,302 | ) | $ | (83,216 | ) | |||
|
|
|
|
|
|
|||||||
Closed gains (losses) on derivative instruments |
||||||||||||
Oil |
$ | 132,813 | $ | (40,556 | ) | $ | 173,369 | |||||
Natural gas liquids |
| 355 | (355 | ) | ||||||||
Natural gas |
26,777 | (4,734 | ) | 31,511 | ||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 159,590 | $ | (44,935 | ) | $ | 204,525 | |||||
|
|
|
|
|
|
|||||||
Total revenues |
$ | 390,184 | $ | 568,437 | $ | (178,253 | ) | |||||
|
|
|
|
|
|
|||||||
Production volumes |
||||||||||||
Oil (MBbl) |
6,829 | 5,584 | 1,245 | |||||||||
Natural gas liquids (MMgal) |
81.1 | 82.7 | (1.6 | ) | ||||||||
Natural gas (MMcf) |
20,412 | 28,800 | (8,388 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total production volumes (MBOE) |
12,162 | 12,352 | (190 | ) | ||||||||
|
|
|
|
|
|
|||||||
Average daily production volumes |
||||||||||||
Oil (MBbl/d) |
37.7 | 30.9 | 6.8 | |||||||||
Natural gas liquids (MMgal/d) |
0.5 | 0.5 | | |||||||||
Natural gas (MMcf/d) |
112.8 | 159.1 | (46.3 | ) | ||||||||
|
|
|
|
|
|
|||||||
Total average daily production volumes (MBOE/d) |
67.2 | 68.2 | (1.0 | ) | ||||||||
|
|
|
|
|
|
|||||||
Average realized prices excluding effects of open non-cash mark-to-market derivative instruments |
||||||||||||
Oil (per barrel) |
$ | 67.86 | $ | 85.23 | $ | (17.37 | ) | |||||
Natural gas liquids (per gallon) |
$ | 0.32 | $ | 0.72 | $ | (0.40 | ) | |||||
Natural gas (per Mcf) |
$ | 3.80 | $ | 4.38 | $ | (0.58 | ) | |||||
Average realized prices excluding effects of all derivative instruments |
||||||||||||
Oil (per barrel) |
$ | 48.42 | $ | 92.50 | $ | (44.08 | ) | |||||
Natural gas liquids (per gallon) |
$ | 0.32 | $ | 0.72 | $ | (0.40 | ) | |||||
Natural gas (per Mcf) |
$ | 2.49 | $ | 4.54 | $ | (2.05 | ) | |||||
Costs per BOE |
||||||||||||
Oil, natural gas liquids and natural gas production expenses |
$ | 9.98 | $ | 10.70 | $ | (0.72 | ) | |||||
Production and ad valorem taxes |
$ | 2.67 | $ | 4.48 | $ | (1.81 | ) | |||||
Depreciation, depletion and amortization |
$ | 23.37 | $ | 21.09 | $ | 2.28 | ||||||
Exploration expense |
$ | 0.97 | $ | 1.04 | $ | (0.07 | ) | |||||
General and administrative* |
$ | 5.81 | $ | 5.32 | $ | 0.49 | ||||||
Net capital expenditures |
$ | 660,591 | $ | 594,268 | $ | 66,323 | ||||||
|
|
|
|
|
|
* | Includes pension and pension settlement expenses of $0.34 and $0.79 for the six months ended June 30, 2015 and 2014, respectively. |
18
Exhibit 99.3
Non-GAAP Financial Measures
Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes certain non-cash mark-to-market derivative financial instruments. Adjusted income from continuing operations further excludes impairment losses, income associated with certain divestments, gains and losses on disposal of discontinued operations and income and losses from discontinued operations. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.
Quarter Ended 6/30/2015 | ||||||||
Energen Net Income ($ in millions except per share data) |
Net Income | Per Diluted Share |
||||||
Net Income (Loss) All Operations (GAAP) |
(111.6 | ) | (1.52 | ) | ||||
Non-cash mark-to-market losses (net of $41.7 tax) |
75.1 | 1.02 | ||||||
Asset impairment, other (net of $24.0 tax) |
42.9 | 0.58 | ||||||
Loss associated w/ San Juan Basin divestment (net of $0.9 tax) |
1.2 | 0.02 | ||||||
|
|
|
|
|||||
Adjusted Income from Continuing Operations (Non-GAAP) |
7.7 | 0.10 | ||||||
|
|
|
|
|||||
Quarter Ended 6/30/2014 | ||||||||
Energen Net Income ($ in millions except per share data) |
Net Income | Per Diluted Share |
||||||
Net Income (Loss) All Operations (GAAP) |
(8.0 | ) | (0.11 | ) | ||||
Non-cash mark-to-market losses (net of $21.5 tax) |
38.1 | 0.52 | ||||||
Asset impairment, other (net of $0.9 tax) |
1.6 | 0.02 | ||||||
Income associated w/ San Juan Basin divestment (net of $5.9 tax) |
(10.6 | ) | (0.15 | ) | ||||
|
|
|
|
|||||
Adjusted Net Income from All Operations (Non-GAAP) |
21.2 | 0.29 | ||||||
|
|
|
|
|||||
Loss from discontinued operations (net of $3.0 tax) |
4.8 | 0.07 | ||||||
|
|
|
|
|||||
Adjusted Income from Continuing Operations (Non-GAAP) |
26.0 | 0.36 | ||||||
|
|
|
|
Note: Amounts may not sum due to rounding
Non-GAAP Financial Measures
Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Adjusted EBITDAX from continuing operations further excludes income associated with certain divestments, impairment losses, certain non-cash mark-to-market derivative financial instruments, income and losses from discontinued operations and gains and losses on disposal of discontinued operations. Energen believes these measures allow analysts and investors to understand the financial performance of the company from core business operations, without including the effects of capital structure, tax rates and depreciation. Further, this measure is useful in comparing the company and other oil and gas producing companies.
Reconciliation To GAAP Information
Quarter Ended 6/30 | ||||||||
($ in millions) |
2015 | 2014 | ||||||
Energen Net Income (Loss) (GAAP) |
(111.6 | ) | (8.0 | ) | ||||
(Income) Loss associated w/ San Juan Basin divestment, net of tax |
1.2 | (10.6 | ) | |||||
|
|
|
|
|||||
Adjusted Net Income from Continuing Operations (Non-GAAP) |
(110.4 | ) | (18.6 | ) | ||||
|
|
|
|
|||||
Interest expense * |
11.2 | 8.0 | ||||||
Income tax expense (benefit) * |
(60.4 | ) | (6.9 | ) | ||||
Depreciation, depletion and amortization * |
149.8 | 121.9 | ||||||
Accretion expense * |
1.7 | 1.5 | ||||||
Exploration expense * |
4.5 | 0.0 | ||||||
Dry hole expense * |
6.5 | 1.2 | ||||||
Adjustment for asset impairment * |
60.4 | 1.3 | ||||||
Adjustment for mark-to-market losses |
116.9 | 59.6 | ||||||
Adjustment for income from discontinued operations, net of tax |
0.0 | 4.8 | ||||||
|
|
|
|
|||||
Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP) |
180.3 | 172.9 | ||||||
|
|
|
|
Note: Amounts may not sum due to rounding
* | Amount adjusted to exclude San Juan Basin divestment. See reconciliation to GAAP Information for the Quarter Ended 6/30/2015 and 6/30/2014. |
Non-GAAP Financial Measures
The consolidated statement of income excluding certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated with the divestment of assets held in the San Juan Basin provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this information is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
Energen Net Income (Loss) Excluding San Juan Divestment
Reconciliation to GAAP Information
(in thousands except per share and production data) | Quarter Ended June 30, 2015 |
|||||||||||||||||||||||
GAAP | $/BOE | San Juan Basin | $/BOE | Non-GAAP | $/BOE | |||||||||||||||||||
Revenues |
||||||||||||||||||||||||
Oil, natural gas liquids and natural gas sales |
$ | 219,290 | $ | 592 | $ | 218,698 | ||||||||||||||||||
Gain (loss) on derivative instruments |
(50,964 | ) | | (50,964 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Revenues |
168,326 | 592 | 167,734 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Costs and Expenses |
||||||||||||||||||||||||
Oil, natural gas liquids & natural gas production |
53,581 | $ | 9.15 | 1,886 | $ | 40.13 | 51,695 | $ | 8.90 | |||||||||||||||
Production and ad valorem taxes |
13,352 | $ | 2.28 | (174 | ) | ($ | 3.70 | ) | 13,526 | $ | 2.33 | |||||||||||||
O&G Depreciation, depletion and amortization |
148,374 | $ | 25.35 | | $ | 0.00 | 148,374 | $ | 25.56 | |||||||||||||||
FF&E Depreciation, depletion and amortization |
1,469 | $ | 0.25 | | $ | 0.00 | 1,469 | $ | 0.25 | |||||||||||||||
Asset impairment |
60,413 | | 60,413 | |||||||||||||||||||||
Exploration |
11,018 | | 11,018 | |||||||||||||||||||||
General and administrative |
38,652 | $ | 6.60 | (1 | ) | ($ | 0.02 | ) | 38,653 | $ | 6.66 | |||||||||||||
Accretion of discount on asset retirement obligations |
1,669 | | 1,669 | |||||||||||||||||||||
(Gain) loss on sale of assets and other |
1,476 | 994 | 482 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total costs and expenses |
330,004 | 2,705 | 327,299 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Income (Loss) |
(161,678 | ) | (2,113 | ) | (159,565 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other Income/(Expense) |
||||||||||||||||||||||||
Interest Expense |
(11,244 | ) | | (11,244 | ) | |||||||||||||||||||
Other income |
41 | | 41 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other expense |
(11,203 | ) | | (11,203 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes |
(172,881 | ) | (2,113 | ) | (170,768 | ) | ||||||||||||||||||
Income tax expense (benefit) |
(61,280 | ) | (864 | ) | (60,416 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (Loss) From Continuing Operations |
(111,601 | ) | (1,249 | ) | (110,352 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Discontinued Operations, net of tax |
||||||||||||||||||||||||
Income from discontinued operations |
| | | |||||||||||||||||||||
Loss on Disposal of discontinued ops |
| | | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from discontinued ops |
| | | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Income (Loss) |
$ | (111,601 | ) | $ | (1,249 | ) | $ | (110,352 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Diluted Earnings Per Average Common Share |
||||||||||||||||||||||||
Continuing Operations |
$ | (1.52 | ) | $ | (0.02 | ) | $ | (1.50 | ) | |||||||||||||||
Discontinued Operations |
$ | | $ | | $ | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Income (Loss) |
$ | (1.52 | ) | $ | (0.02 | ) | $ | (1.50 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Basic earning Per Average Common Share |
||||||||||||||||||||||||
Continuing Operations |
$ | (1.52 | ) | $ | (0.02 | ) | $ | (1.50 | ) | |||||||||||||||
Discontinued Operations |
$ | | $ | | $ | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Income (Loss) |
$ | (1.52 | ) | $ | (0.02 | ) | $ | (1.50 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Oil |
3,594 | (1 | ) | 3,595 | ||||||||||||||||||||
NGL |
1,070 | 10 | 1,060 | |||||||||||||||||||||
Gas |
1,189 | 38 | 1,151 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Production (mboe) |
5,853 | 47 | 5,806 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Production (boepd) |
64,319 | 516 | 63,802 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not sum due to rounding
Non-GAAP Financial Measures
The consolidated statement of income excluding certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated with the divestment of assets held in the San Juan Basin provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this information is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
Energen Net Income (Loss) Excluding San Juan Divestment
Reconciliation to GAAP Information
(in thousands except per share and production data) | Quarter Ended June 30, 2014 |
|||||||||||||||||||||||
GAAP | $/BOE | San Juan Basin | $/BOE | Non-GAAP | $/BOE | |||||||||||||||||||
Revenues |
||||||||||||||||||||||||
Oil, natural gas liquids and natural gas sales |
$ | 355,852 | $ | 43,086 | $ | 312,766 | ||||||||||||||||||
Gain (loss) on derivative instruments |
(84,846 | ) | 6,278 | (91,124 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Revenues |
271,006 | 49,364 | 221,642 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Costs and Expenses |
||||||||||||||||||||||||
Oil, natural gas liquids & natural gas production |
64,697 | $ | 10.20 | 15,017 | $ | 9.21 | 49,680 | $ | 10.54 | |||||||||||||||
Production and ad valorem taxes |
28,049 | $ | 4.42 | 3,750 | $ | 2.30 | 24,299 | $ | 5.15 | |||||||||||||||
O&G Depreciation, depletion and amortization |
135,164 | $ | 21.31 | 14,288 | $ | 8.77 | 120,876 | $ | 25.63 | |||||||||||||||
FF&E Depreciation, depletion and amortization |
1,080 | $ | 0.17 | 62 | $ | 0.04 | 1,018 | $ | 0.22 | |||||||||||||||
Asset impairment |
1,342 | | 1,342 | |||||||||||||||||||||
Exploration |
1,233 | 3 | 1,230 | |||||||||||||||||||||
General and administrative |
33,542 | $ | 5.29 | (612 | ) | ($ | 0.38 | ) | 34,154 | $ | 7.25 | |||||||||||||
Accretion of discount on asset retirement obligations |
1,883 | 388 | 1,495 | |||||||||||||||||||||
(Gain) loss on sale of assets and other |
909 | | 909 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total costs and expenses |
267,899 | 32,896 | 235,003 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating Income (Loss) |
3,107 | 16,468 | (13,361 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Other Income/(Expense) |
||||||||||||||||||||||||
Interest Expense |
(7,964 | ) | | (7,964 | ) | |||||||||||||||||||
Other income |
687 | | 687 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total other expense |
(7,277 | ) | | (7,277 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes |
(4,170 | ) | 16,468 | (20,638 | ) | |||||||||||||||||||
Income tax expense (benefit) |
(1,016 | ) | 5,853 | (6,869 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income (Loss) From Continuing Operations |
(3,154 | ) | 10,615 | (13,769 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Discontinued Operations, net of tax |
||||||||||||||||||||||||
Income (Loss) from discontinued operations |
(4,799 | ) | | (4,799 | ) | |||||||||||||||||||
Loss on Disposal of discontinued ops |
| | | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income from discontinued ops |
(4,799 | ) | | (4,799 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Income (Loss) |
$ | (7,953 | ) | $ | 10,615 | $ | (18,568 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Diluted Earnings Per Average Common Share |
||||||||||||||||||||||||
Continuing Operations |
$ | (0.04 | ) | $ | 0.15 | $ | (0.19 | ) | ||||||||||||||||
Discontinued Operations |
$ | (0.07 | ) | $ | | $ | (0.07 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Income (Loss) |
$ | (0.11 | ) | $ | 0.15 | $ | (0.26 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Basic earning Per Average Common Share |
||||||||||||||||||||||||
Continuing Operations |
$ | (0.04 | ) | $ | 0.15 | $ | (0.19 | ) | ||||||||||||||||
Discontinued Operations |
$ | (0.07 | ) | $ | | $ | (0.07 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net Income (Loss) |
$ | (0.11 | ) | $ | 0.15 | $ | (0.26 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Oil |
2,833 | 3 | 2,830 | |||||||||||||||||||||
NGL |
1,065 | 167 | 898 | |||||||||||||||||||||
Gas |
2,446 | 1,460 | 986 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Production (mboe) |
6,344 | 1,630 | 4,714 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total Production (boepd) |
69,714 | 17,912 | 51,802 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Note: Amounts may not sum due to rounding
Non-GAAP Financial Measures
Excluding production associated with certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding data associated with the divestment of assets held in the San Juan Basin provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this measure is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
Energen Production Excluding San Juan Divestment
Reconciliation to GAAP Information
Quarter Ended March 31, 2015 |
||||||||||||
GAAP | San Juan Basin | Non-GAAP | ||||||||||
Oil |
3,235 | 2 | 3,233 | |||||||||
NGL |
861 | 129 | 732 | |||||||||
Gas |
2,213 | 1,309 | 904 | |||||||||
|
|
|
|
|
|
|||||||
Total Production (mboe) |
6,309 | 1,440 | 4,869 | |||||||||
|
|
|
|
|
|
|||||||
Total Production (boepd) |
70,100 | 16,000 | 54,100 | |||||||||
|
|
|
|
|
|
Energen Production Excluding San Juan Divestment
Reconciliation to GAAP Information
Year-to-Date Ended December 31, 2014 |
||||||||||||
GAAP | San Juan Basin | Non-GAAP | ||||||||||
Oil |
11,814 | 16 | 11,798 | |||||||||
NGL |
4,103 | 695 | 3,408 | |||||||||
Gas |
9,767 | 5,876 | 3,891 | |||||||||
|
|
|
|
|
|
|||||||
Total Production (mboe) |
25,684 | 6,587 | 19,097 | |||||||||
|
|
|
|
|
|
|||||||
Total Production (boepd) |
70,367 | 18,047 | 52,320 | |||||||||
|
|
|
|
|
|
Note: Amounts may not sum due to rounding
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