Date of Report
|
|||
(Date of earliest
|
|||
event reported):
|
July 27, 2016
|
Delaware
|
001-31899
|
20-0098515
|
||
(State or other
jurisdiction of
incorporation)
|
(Commission File
Number)
|
(IRS Employer
Identification No.)
|
£
|
Written communications pursuant to Rule 425 under the Securities Act (17 C.F.R. §230.425)
|
£
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 C.F.R. §240.14a-12)
|
£
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 C.F.R. §240.14d-2(b))
|
£
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 C.F.R. §240.13e-4(c))
|
|
(a)
|
Financial Statements of Businesses Acquired. Not applicable.
|
|
(b)
|
Pro Forma Financial Information. Not applicable.
|
|
(c)
|
Shell Company Transactions. Not applicable.
|
|
(d)
|
Exhibits:
|
|
(99)
|
Press Release of Whiting Petroleum Corporation, dated July 27, 2016.
|
WHITING PETROLEUM CORPORATION
|
|||
Date: July 27, 2016
|
By:
|
/s/ James J. Volker | |
James J. Volker
|
|||
Chairman, President and Chief Executive Officer
|
Exhibit
Number
|
Description
|
|
(99)
|
Press Release of Whiting Petroleum Corporation, dated July 27, 2016.
|
Company Contact: Eric K. Hagen | July 27, 2016 |
Title: Vice President, Investor Relations | For immediate release |
Phone: 303.837.1661 | |
Email: Eric.Hagen@whiting.com |
·
|
Q2 2016 Capex on Budget at $79.4 Million
|
·
|
Q2 2016 Production Averaged 134,245 BOE/d
|
·
|
YTD Exchanged $1.6 Billion of Notes for New Convertible Notes
|
·
|
Closed the Sale of North Ward Estes Properties on July 27th for $300 Million and Potential $100 Million Contingency Payment
|
·
|
Williston Basin Enhanced Completions Tracking 900 MBOE Type Curve
|
·
|
Adding 16 Williston Basin Completions in Second Half of 2016
|
Three Months Ended
|
||||||||
June 30,
|
||||||||
2016
|
2015
|
|||||||
Production (MBOE/d) (1)
|
134.24 | 170.24 | ||||||
Net cash provided by operating activities-MM
|
$ | 161.0 | $ | 326.0 | ||||
Discretionary cash flow-MM (2)
|
$ | 151.6 | $ | 380.7 | ||||
Realized price ($/BOE)
|
$ | 30.39 | $ | 44.65 | ||||
Total revenues-MM
|
$ | 339.6 | $ | 590.0 | ||||
Net loss available to common shareholders-MM (3)(4)
|
$ | (301.0 | ) | $ | (149.3 | ) | ||
Per basic share
|
$ | (1.33 | ) | $ | (0.73 | ) | ||
Per diluted share
|
$ | (1.33 | ) | $ | (0.73 | ) | ||
Adjusted net income (loss) available to common shareholders-MM (5)
|
$ | (158.7 | ) | $ | 9.2 | |||
Per basic share
|
$ | (0.70 | ) | $ | 0.04 | |||
Per diluted share
|
$ | (0.70 | ) | $ | 0.04 |
(1)
|
Second quarter 2015 includes 8,740 BOE/d that was divested during the year.
|
(2)
|
A reconciliation of net cash provided by operating activities to discretionary cash flow is included later in this news release.
|
(3)
|
For the three months ended June 30, 2016, net loss available to common shareholders included $31 million of pre-tax, non-cash derivative losses or $0.09 per basic and diluted share after tax. For the three months ended June 30, 2015, net loss available to common shareholders included $144 million of pre-tax, non-cash derivative losses or $0.44 per basic and diluted share after tax.
|
(4)
|
For the three months ended June 30, 2016, net loss available to common shareholders included a $179 million pre-tax, non-cash loss on extinguishment of debt, or $0.50 per basic and diluted share after tax.
|
(5)
|
A reconciliation of net loss available to common shareholders to adjusted net income (loss) available to common shareholders is included later in this news release.
|
Six Months Ended
|
||||||||
June 30,
|
||||||||
2016
|
2015
|
|||||||
Production (MBOE/d) (1)
|
140.51 | 168.60 | ||||||
Net cash provided by operating activities-MM
|
$ | 206.9 | $ | 528.1 | ||||
Discretionary cash flow-MM (2)
|
$ | 253.9 | $ | 629.9 | ||||
Realized price ($/BOE)
|
$ | 28.00 | $ | 41.36 | ||||
Total revenues-MM
|
$ | 631.6 | $ | 1,119.2 | ||||
Net loss available to common shareholders-MM (3)(4)
|
$ | (472.8 | ) | $ | (255.4 | ) | ||
Per basic share
|
$ | (2.20 | ) | $ | (1.37 | ) | ||
Per diluted share
|
$ | (2.20 | ) | $ | (1.37 | ) | ||
Adjusted net loss available to common shareholders-MM (5)
|
$ | (333.0 | ) | $ | (29.9 | ) | ||
Per basic share
|
$ | (1.55 | ) | $ | (0.16 | ) | ||
Per diluted share
|
$ | (1.55 | ) | $ | (0.16 | ) |
(1)
|
The six months ended June 30, 2015 includes 10,570 BOE/d that was divested during the year.
|
(2)
|
A reconciliation of net cash provided by operating activities to discretionary cash flow is included later in this news release.
|
(3)
|
For the six months ended June 30, 2016, net loss available to common shareholders included $91 million of pre-tax, non-cash derivative losses or $0.27 per basic and diluted share after tax. For the six months ended June 30, 2015, net loss available to common shareholders included $184 million of pre-tax, non-cash derivative losses or $0.62 per basic and diluted share after tax.
|
(4)
|
For the six months ended June 30, 2016, net loss available to common shareholders included a $89 million pre-tax, non-cash loss on extinguishment of debt, or $0.26 per basic and diluted share after tax.
|
(5)
|
A reconciliation of net loss available to common shareholders to adjusted net income (loss) available to common shareholders is included later in this news release.
|
Three Months Ended
|
|||||||||||
June 30,
|
|||||||||||
2016
|
2015
|
Change
|
|||||||||
Production
|
|||||||||||
Oil (MMBbl)
|
8.72 | 12.43 | (30 | %) | |||||||
NGLs (MMBbl)
|
1.69 | 1.30 | 30 | % | |||||||
Natural gas (Bcf)
|
10.81 | 10.61 | 2 | % | |||||||
Total equivalent (MMBOE)
|
12.22 | 15.49 | (21 | %) | |||||||
Average sales price
|
|||||||||||
Oil (per Bbl):
|
|||||||||||
Price received
|
$ | 35.67 | $ | 48.95 | (27 | %) | |||||
Effect of crude oil hedging (1)
|
3.93 | 3.32 | |||||||||
Realized price
|
$ | 39.60 | $ | 52.27 | (24 | %) | |||||
Weighted average NYMEX price (per Bbl) (2)
|
$ | 45.57 | $ | 57.95 | (21 | %) | |||||
NGLs (per Bbl):
|
|||||||||||
Realized price
|
$ | 9.17 | $ | 16.86 | (46 | %) | |||||
Natural gas (per Mcf):
|
|||||||||||
Realized price
|
$ | 0.96 | $ | 1.92 | (50 | %) | |||||
Weighted average NYMEX price (per Mcf) (2)
|
$ | 1.98 | $ | 2.61 | (24 | %) |
(1)
|
Whiting received $34 million and $41 million in pre-tax cash settlements on its crude oil hedges during the second quarter of 2016 and 2015, respectively. A summary of Whiting’s outstanding hedges is included later in this news release.
|
(2)
|
Average NYMEX prices weighted for monthly production volumes.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(per BOE, except production)
|
||||||||||||||||
Production (MMBOE)
|
12.22 | 15.49 | 25.57 | 30.52 | ||||||||||||
Sales price, net of hedging
|
$ | 30.39 | $ | 44.65 | $ | 28.00 | $ | 41.36 | ||||||||
Lease operating expense
|
8.61 | 9.25 | 8.59 | 10.15 | ||||||||||||
Production tax
|
2.20 | 3.66 | 2.06 | 3.31 | ||||||||||||
Cash general & administrative
|
2.21 | 2.46 | 2.55 | 2.47 | ||||||||||||
Exploration
|
0.85 | 2.09 | 1.21 | 2.85 | ||||||||||||
Cash interest expense
|
5.00 | 4.61 | 4.76 | 4.71 | ||||||||||||
Cash income tax benefit
|
- | (0.01 | ) | - | - | |||||||||||
$ | 11.52 | $ | 22.59 | $ | 8.83 | $ | 17.87 |
Gross/Net Wells Completed
|
|||||||||||
Total New
|
% Success
|
CAPEX
|
|||||||||
Producing
|
Non-Producing
|
Drilling
|
Rate
|
(in MM)
|
|||||||
Q2 16 | 23 / 19.3 | 0 / 0 | 23 / 19.3 | 100% / 100% | $ 79.4 (1) | ||||||
6M 16 | 42 / 28.3 | 0 / 0 | 42 / 28.3 | 100% / 100% | $ 346.7 (2) |
(1)
|
Includes $0 million for non-operated drilling and completion, $6 million for facilities, $2 million in drilling rig early termination fees, and $1 million for land.
|
(2)
|
Includes $34 million for non-operated drilling and completion, $16 million in drilling rig early termination fees, $12 million for facilities and $2 million for land.
|
Guidance
|
||||
Third Quarter
|
Full Year
|
|||
2016
|
2016
|
|||
Production (MMBOE)
|
10.5 - 11.1
|
46.5 - 47.3
|
||
Lease operating expense per BOE
|
$ 8.40 - $ 9.00
|
$ 8.30 - $ 8.80
|
||
General and administrative expense per BOE
|
$ 2.75 - $ 3.25
|
$ 2.75 - $ 3.25
|
||
Interest expense per BOE (1)
|
$ 6.00 - $ 6.60
|
$ 6.00 - $ 6.60
|
||
Depreciation, depletion and amortization per BOE
|
$ 24.50 - $ 25.50
|
$ 24.40 - $ 25.00
|
||
Production taxes (% of sales revenue)
|
8.75% - 9.25%
|
8.50%- 9.00%
|
||
Oil price differentials to NYMEX per Bbl (2)
|
($ 8.00) - ($ 9.00)
|
($ 8.50) - ($ 9.00)
|
||
Gas price differential to NYMEX per Mcf
|
($ 0.70) - ($ 1.20)
|
($ 0.70) - ($ 1.20)
|
(1)
|
Includes non-cash interest expense related to Whiting’s 2018, 2019, 2020, 2021 and 2023 convertible notes. Full-year 2016 cash interest expense is projected at $5.00 – $5.50 per BOE.
|
(2)
|
Does not include the effect of NGLs.
|
Weighted Average
|
As a Percentage of
|
||||||||
Derivative
|
Hedge
|
Contracted Crude
|
NYMEX Price
|
June 2016
|
|||||
Instrument
|
Period
|
(Bbls per Month)
|
(per Bbl)
|
Oil Production
|
|||||
Three-way collars (1)
|
2016
|
||||||||
Q3
|
1,400,000
|
$43.75 - $53.75 - $74.40
|
48.9%
|
||||||
Q4
|
1,400,000
|
$43.75 - $53.75 - $74.40
|
48.9%
|
||||||
2017
|
|||||||||
Q1
|
500,000
|
$33.00 - $43.50 - $61.75
|
17.5%
|
||||||
Q2
|
500,000
|
$33.00 - $43.50 - $61.75
|
17.5%
|
||||||
Q3
|
500,000
|
$33.00 - $43.50 - $61.75
|
17.5%
|
||||||
Q4
|
500,000
|
$33.00 - $43.50 - $61.75
|
17.5%
|
||||||
Collars
|
2016
|
||||||||
Q3
|
250,000
|
$51.00 - $63.48
|
8.7%
|
||||||
Q4
|
250,000
|
$51.00 - $63.48
|
8.7%
|
||||||
2017
|
|||||||||
Q1
|
250,000
|
$53.00 - $70.44
|
8.7%
|
||||||
Q2
|
250,000
|
$53.00 - $70.44
|
8.7%
|
||||||
Q3
|
250,000
|
$53.00 - $70.44
|
8.7%
|
||||||
Q4
|
250,000
|
$53.00 - $70.44
|
8.7%
|
(1)
|
A three-way collar is a combination of options: a sold call, a purchased put and a sold put. The sold call establishes a maximum price (ceiling) we will receive for the volumes under contract. The purchased put establishes a minimum price (floor), unless the market price falls below the sold put (sub-floor), at which point the minimum price would be NYMEX plus the difference between the purchased put and the sold put strike price.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Selected operating statistics:
|
||||||||||||||||
Production
|
||||||||||||||||
Oil, MBbl
|
8,722 | 12,425 | 18,684 | 24,606 | ||||||||||||
NGLs, MBbl
|
1,692 | 1,298 | 3,334 | 2,412 | ||||||||||||
Natural gas, MMcf
|
10,813 | 10,615 | 21,327 | 20,988 | ||||||||||||
Oil equivalents, MBOE
|
12,216 | 15,492 | 25,572 | 30,516 | ||||||||||||
Average prices
|
||||||||||||||||
Oil per Bbl (excludes hedging)
|
$ | 35.67 | $ | 48.95 | $ | 31.09 | $ | 44.15 | ||||||||
NGLs per Bbl
|
$ | 9.17 | $ | 16.86 | $ | 7.35 | $ | 15.13 | ||||||||
Natural gas per Mcf
|
$ | 0.96 | $ | 1.92 | $ | 1.00 | $ | 2.26 | ||||||||
Per BOE data
|
||||||||||||||||
Sales price (including hedging)
|
$ | 30.39 | $ | 44.65 | $ | 28.00 | $ | 41.36 | ||||||||
Lease operating
|
$ | 8.61 | $ | 9.25 | $ | 8.59 | $ | 10.15 | ||||||||
Production taxes
|
$ | 2.20 | $ | 3.66 | $ | 2.06 | $ | 3.31 | ||||||||
Depreciation, depletion and amortization
|
$ | 24.89 | $ | 20.81 | $ | 24.10 | $ | 19.86 | ||||||||
General and administrative
|
$ | 2.74 | $ | 2.90 | $ | 3.06 | $ | 2.92 | ||||||||
Selected financial data:
(In thousands, except per share data)
|
||||||||||||||||
Total revenues and other income
|
$ | 339,583 | $ | 590,009 | $ | 631,590 | $ | 1,119,241 | ||||||||
Total costs and expenses
|
$ | 750,613 | $ | 816,699 | $ | 1,279,544 | $ | 1,505,860 | ||||||||
Loss available to common shareholders
|
$ | (301,041 | ) | $ | (149,274 | ) | $ | (472,789 | ) | $ | (255,385 | ) | ||||
Loss per common share, basic
|
$ | (1.33 | ) | $ | (0.73 | ) | $ | (2.20 | ) | $ | (1.37 | ) | ||||
Loss per common share, diluted
|
$ | (1.33 | ) | $ | (0.73 | ) | $ | (2.20 | ) | $ | (1.37 | ) | ||||
Weighted average shares outstanding, basic
|
226,039 | 204,130 | 215,203 | 186,657 | ||||||||||||
Weighted average shares outstanding, diluted
|
226,039 | 204,130 | 215,203 | 186,657 | ||||||||||||
Net cash provided by operating activities
|
$ | 160,986 | $ | 325,997 | $ | 206,934 | $ | 528,136 | ||||||||
Net cash used in investing activities
|
$ | (96,698 | ) | $ | (423,287 | ) | $ | (356,961 | ) | $ | (1,444,897 | ) | ||||
Net cash provided by (used in) financing activities
|
$ | (50,011 | ) | $ | 51,529 | $ | 149,312 | $ | 898,815 |
June 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 15,338 | $ | 16,053 | ||||
Accounts receivable trade, net
|
233,059 | 332,428 | ||||||
Derivative assets
|
49,202 | 158,729 | ||||||
Prepaid expenses and other
|
21,927 | 27,980 | ||||||
Total current assets
|
319,526 | 535,190 | ||||||
Property and equipment:
|
||||||||
Oil and gas properties, successful efforts method
|
14,179,923 | 13,904,525 | ||||||
Other property and equipment
|
159,855 | 168,277 | ||||||
Total property and equipment
|
14,339,778 | 14,072,802 | ||||||
Less accumulated depreciation, depletion and amortization
|
(3,925,700 | ) | (3,323,102 | ) | ||||
Total property and equipment, net
|
10,414,078 | 10,749,700 | ||||||
Other long-term assets
|
72,102 | 104,195 | ||||||
TOTAL ASSETS
|
$ | 10,805,706 | $ | 11,389,085 |
June 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable trade
|
$ | 36,621 | $ | 77,276 | ||||
Revenues and royalties payable
|
129,087 | 179,601 | ||||||
Accrued capital expenditures
|
48,100 | 94,105 | ||||||
Accrued interest
|
54,402 | 62,661 | ||||||
Accrued lease operating expenses
|
40,137 | 55,291 | ||||||
Accrued liabilities and other
|
55,457 | 50,261 | ||||||
Taxes payable
|
47,102 | 47,789 | ||||||
Accrued employee compensation and benefits
|
16,473 | 32,829 | ||||||
Total current liabilities
|
427,379 | 599,813 | ||||||
Long-term debt
|
4,960,921 | 5,197,704 | ||||||
Deferred income taxes
|
408,213 | 593,792 | ||||||
Asset retirement obligations
|
163,365 | 155,550 | ||||||
Deferred gain on sale
|
41,490 | 48,974 | ||||||
Other long-term liabilities
|
39,387 | 34,664 | ||||||
Total liabilities
|
6,040,755 | 6,630,497 | ||||||
Commitments and contingencies
|
||||||||
Equity:
|
||||||||
Common stock, $0.001 par value, 600,000,000 shares authorized; 251,610,527 issued and 246,263,027 outstanding as of June 30, 2016 and 206,441,303 issued and 204,147,647 outstanding as of December 31, 2015
|
252 | 206 | ||||||
Additional paid-in capital
|
5,138,989 | 4,659,868 | ||||||
Retained earnings (accumulated deficit)
|
(382,259 | ) | 90,530 | |||||
Total Whiting shareholders' equity
|
4,756,982 | 4,750,604 | ||||||
Noncontrolling interest
|
7,969 | 7,984 | ||||||
Total equity
|
4,764,951 | 4,758,588 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 10,805,706 | $ | 11,389,085 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
REVENUES AND OTHER INCOME:
|
||||||||||||||||
Oil, NGL and natural gas sales
|
$ | 337,036 | $ | 650,527 | $ | 626,733 | $ | 1,170,375 | ||||||||
Loss on sale of properties
|
(1,861 | ) | (64,776 | ) | (3,795 | ) | (61,578 | ) | ||||||||
Amortization of deferred gain on sale
|
3,772 | 3,738 | 7,621 | 9,574 | ||||||||||||
Interest income and other
|
636 | 520 | 1,031 | 870 | ||||||||||||
Total revenues and other income
|
339,583 | 590,009 | 631,590 | 1,119,241 | ||||||||||||
COSTS AND EXPENSES:
|
||||||||||||||||
Lease operating expenses
|
105,172 | 143,375 | 219,548 | 309,740 | ||||||||||||
Production taxes
|
26,826 | 56,729 | 52,753 | 101,107 | ||||||||||||
Depreciation, depletion and amortization
|
304,016 | 322,411 | 616,308 | 605,930 | ||||||||||||
Exploration and impairment
|
25,781 | 57,557 | 61,272 | 138,481 | ||||||||||||
General and administrative
|
33,523 | 44,987 | 78,319 | 88,967 | ||||||||||||
Interest expense
|
78,660 | 89,176 | 160,567 | 163,433 | ||||||||||||
Loss on extinguishment of debt
|
179,396 | 45 | 88,777 | 5,634 | ||||||||||||
Commodity derivative (gain) loss, net
|
(2,761 | ) | 102,419 | 2,000 | 92,568 | |||||||||||
Total costs and expenses
|
750,613 | 816,699 | 1,279,544 | 1,505,860 | ||||||||||||
LOSS BEFORE INCOME TAXES
|
(411,030 | ) | (226,690 | ) | (647,954 | ) | (386,619 | ) | ||||||||
INCOME TAX EXPENSE (BENEFIT):
|
||||||||||||||||
Current
|
(1 | ) | (84 | ) | 2 | 65 | ||||||||||
Deferred
|
(109,983 | ) | (77,311 | ) | (175,152 | ) | (131,261 | ) | ||||||||
Total income tax benefit
|
(109,984 | ) | (77,395 | ) | (175,150 | ) | (131,196 | ) | ||||||||
NET LOSS
|
(301,046 | ) | (149,295 | ) | (472,804 | ) | (255,423 | ) | ||||||||
Net loss attributable to noncontrolling interests
|
5 | 21 | 15 | 38 | ||||||||||||
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS
|
$ | (301,041 | ) | $ | (149,274 | ) | $ | (472,789 | ) | $ | (255,385 | ) | ||||
LOSS PER COMMON SHARE
|
||||||||||||||||
Basic
|
$ | (1.33 | ) | $ | (0.73 | ) | $ | (2.20 | ) | $ | (1.37 | ) | ||||
Diluted
|
$ | (1.33 | ) | $ | (0.73 | ) | $ | (2.20 | ) | $ | (1.37 | ) | ||||
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
||||||||||||||||
Basic
|
226,039 | 204,130 | 215,203 | 186,657 | ||||||||||||
Diluted
|
226,039 | 204,130 | 215,203 | 186,657 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net loss available to common shareholders
|
$ | (301,041 | ) | $ | (149,274 | ) | $ | (472,789 | ) | $ | (255,385 | ) | ||||
Adjustments net of tax:
|
||||||||||||||||
Amortization of deferred gain on sale
|
(2,369 | ) | (2,353 | ) | (4,786 | ) | (6,027 | ) | ||||||||
Loss on sale of properties
|
1,168 | 40,777 | 2,383 | 38,763 | ||||||||||||
Impairment expense
|
9,664 | 15,823 | 19,066 | 32,455 | ||||||||||||
Penalties for early termination of drilling rig contracts
|
1,417 | 13,726 | 10,013 | 40,644 | ||||||||||||
Loss on early extinguishment of debt
|
112,661 | 28 | 55,752 | 3,546 | ||||||||||||
Total measure of derivative (gain) loss reported under U.S. GAAP
|
(1,734 | ) | 64,472 | 1,256 | 58,271 | |||||||||||
Total net cash settlements received on commodity derivatives during the period
|
21,511 | 25,972 | 56,152 | 57,805 | ||||||||||||
Adjusted net income (loss) (1)
|
$ | (158,723 | ) | $ | 9,171 | $ | (332,953 | ) | $ | (29,928 | ) | |||||
Adjusted net income (loss) available to common shareholders per share, basic
|
$ | (0.70 | ) | $ | 0.04 | $ | (1.55 | ) | $ | (0.16 | ) | |||||
Adjusted net income (loss) available to common shareholders per share, diluted
|
$ | (0.70 | ) | $ | 0.04 | $ | (1.55 | ) | $ | (0.16 | ) |
(1)
|
Adjusted Net Income (Loss) Available to Common Shareholders is a non-GAAP financial measure. Management believes it provides useful information to investors for analysis of Whiting’s fundamental business on a recurring basis. In addition, management believes that Adjusted Net Income (Loss) Available to Common Shareholders is widely used by professional research analysts and others in valuation, comparison and investment recommendations of companies in the oil and gas exploration and production industry, and many investors use the published research of industry research analysts in making investment decisions. Adjusted Net Income (Loss) Available for Common Shareholders should not be considered in isolation or as a substitute for net income, income from operations, net cash provided by operating activities or other income, cash flow or liquidity measures under U.S. GAAP and may not be comparable to other similarly titled measures of other companies.
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net cash provided by operating activities
|
$ | 160,986 | $ | 325,997 | $ | 206,934 | $ | 528,136 | ||||||||
Exploration
|
10,393 | 32,421 | 30,912 | 86,928 | ||||||||||||
Exploratory dry hole costs
|
- | (258 | ) | - | (799 | ) | ||||||||||
Changes in working capital
|
(19,731 | ) | 22,526 | 16,095 | 15,674 | |||||||||||
Discretionary cash flow (1)
|
$ | 151,648 | $ | 380,686 | $ | 253,941 | $ | 629,939 |
(1)
|
Discretionary cash flow is a non-GAAP measure. Discretionary cash flow is presented because management believes it provides useful information to investors for analysis of the Company’s ability to internally fund acquisitions, exploration and development. Discretionary cash flow should not be considered in isolation or as a substitute for net income, income from operations, net cash provided by operating activities or other income, cash flow or liquidity measures under U.S. GAAP and may not be comparable to other similarly titled measures of other companies.
|
'/CQH\?A
M6R==-\7Z2FAW@C4[85BPH8G_ *Y@#GTK=^,&CVG_ O[X1Z6VG&YTZVCG0J8
MMT:A5 7=V[=Z^@?+!P2%)'3(Z4UH@SA]J%AT)7)% 'R9%8"UMOVE+6UT^2&U
M;(@@CA(1CY;9V*!CKZ5+XNLYE^ OP/N_[/F^RV.H6+WK" DP)MY+#&0N>M?5
MQA3#?(GS_?\ E'S?6CR4,?EE%*=-I7C\J /GW55CF_:PU.Z@@=[9_ [A)5B.
MP\G@'Z=J\F_L*UC_ &1_#MQ'HNW4_P#A*$;SA:_OU_T@\YQN Q7VWY*!MP1
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MQFOHL1KO+A5#GJVWDTI3*G< N/&/@_Q()/#$.CW^D^)H2EG;Z<6N6B60;KIYL9YSVK[*2)02
MRJJLV-Q"XS2&)"6.Q"6X;Y>OUH \!\3+Y?[3_P /]9G@;^S)]$EB2Z:+*-*5
M& 3CAOK7(VNC>(-4\/?M%:?X;MKE-4N]2_T<(I1IDQF15/I
M:?I=ND^HWD%K$\T<"/*X4-([!449[LQ ]Z\K\+>-[&XU#P3IO@^S&EZ+?7%
M[:WNGS6VR6UFA&6BQGY2&STX/:J&O^-M:DT_7#=1:==+I_CNPTNV6>T5PD#W
M,"YP?XQO)#=0>:?*.Q[<&4L5!&1C(]*7(S7B7A/_ (22S^/7Q+O[KQ,)M+T^
M*QN9[+[$!YD303M&BMN^4I@?,!\V.:ROAU\5O'7B+7_#]^=%U.ZTK7)@);3^
MQ&AAT^!A\DRW)8^9C W9NXHL2F>^7=U;6<#7%W<16\*_>DE<*H^I- NK4V
MGVL7,)M]N_S0XV;?7=TQ6'X[T[PK=Z,;[QA;VDVF::3=/]KYA3 ^\R]&]@0:
M\Y^&'A=YOA1K*W/AEKO3-2U6?4=(T&XN#"HMBP,4;9X13C=M/'.,5(SV"RO;
M.^@$]E=0746L36%O=V^BVQ'V>T@9'@^UPNGRLSLLA8JJ[3&O4\UU7Q#T;3/
MAOXJ\*7'@G38M-D?3M0M9EMQM^T1QVQD5I/[[!E!WMEL]^:?4:1[?%?V,MY)
M917MM)=1C,D*RJ70>Z]15D&OG-]&TWP_\._A?XNT73T/B&YU>P^TWR_Z^Z%T
M#YXD?JX.2<'.-HQ7T7BFT3
&YXS'DJ>8EYYWI&>J5[!'MC>\)\(7R!?.%]07VA?@%^8G["?R-_
MA'_E@$> J($*@6N!S8(P@I*"](-7@[J$'82 A..%1X6KA@Z&0DI^EDEYK]1/\8Q)JZ1U^V7&&8O4'GGLRG,>?S_W,G_"?X?]+^EM
M]*20I))))2DDDDE/_]/U5))))2DDDSG-8TO>0UK02YQ,
)O#WA.&22Z\,^%M2\2
MS;(R_F?9H288!_M33M%$/]\GM7B1&TX-?T__ /!O?_P3&G_X)^?LE-K7BJQ^
MS?$KXE>3J.L12+^\TNV4$VUD?1E#L\@_OR%3G8#7Y&_\'$'_ 2_NOV&OVKK
MOQMX=T]E^&/Q-NY;_3WB3]UI-^V7N+)L<*-Q:2,< HQ49\MC02I:V/SRKZW_
M ."1'_!5SQ1_P2\^/0U*%;K6OA_XA>.'Q-H*R8^T1@X%Q#GA;B,$E2(/#/B" 7%I=V[=>S(Z]4D5LJR,
M RL"" 1785_*+_P2/_X*_P#C7_@EW\5