Date of Report (Date of earliest event reported) | February 27, 2018 |
Delaware | 000-51719 | 81-5366183 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
600 Travis Houston, Texas | 77002 |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (281) 840-4000 | |
NOT APPLICABLE | |
(Former name or former address, if changed since last report.) |
Exhibit Number | Description | |
LINN ENERGY, INC. | |
(Registrant) | |
Date: February 27, 2018 | /s/ David B. Rottino |
David B. Rottino | |
Executive Vice President and Chief Financial Officer |
• | Strong balance sheet with no debt, forecast excess cash of ~$405 million at the end of the first quarter 2018 |
• | Repurchased ~5.9 million shares for ~$206 million as part of the ongoing $400 million share repurchase program |
• | Returned capital to shareholders through a successful $325 million tender offer for ~6.8 million shares |
• | Announced strategic plan to separate into three standalone companies during 2018 |
• | Formed Roan Resources LLC (“Roan”) and hired a best in class executive management team that has taken over operations as of first quarter 2018 |
• | Blue Mountain Midstream LLC (“Blue Mountain”) continues construction of the Chisholm Trail Cryogenic Plant which is on track to be commissioned during the second quarter of 2018 |
Fourth Quarter | Full Year | |||
$ in millions | 2017 | 2016 | 2017 (2) | 2016 |
Average daily production (MMcfe/d) | 505 | 748 | 637 | 796 |
Oil, natural gas and NGL sales | $ 180 | $ 256 | $ 898 | $ 874 |
Income (loss) from continuing operations | $86 | $ (262) | $2,750 | $ (367) |
Income (loss) from discontinued operations, net of income taxes | $ 0.2 | $ (572) | $ 82 | $ (1,805) |
Net income (loss) | $86 | $ (834) | $2,833 | $ (2,172) |
Adjusted EBITDAX (a non-GAAP financial measure) (3) | $ 75 | $ 113 | $ 394 | $ 710 |
LINN Adjusted EBITDAX for Roan (a non-GAAP financial measure)(4) | $ 22 | N/A | $ 27 | N/A |
Net cash provided by (used in) operating activities | $ 73 | $ (20) | $ 235 | $ 831 |
Oil and natural gas capital | $ 31 | $ 61 | $ 239 | $ 127 |
Total capital | $ 61 | $ 74 | $ 344 | $ 172 |
(1) | All amounts reflect continuing operations with the exception of net income (loss). |
(2) | All amounts reflect the combined results of the ten months ended December 31, 2017 (successor) and the two months ended February 28, 2017 (predecessor). |
(3) | Excludes Adjusted EBITDAX from discontinued operations of approximately $164,000, $15 million, $30 million and $51 million for the three months ended December 31, 2017, the three months ended December 31, 2016, the year ended December 31, 2017 and the year ended December 31, 2016, respectively. See Schedule 1 below for a reconciliation of Adjusted EBITDAX. |
(4) | Represents the Adjusted EBITDAX for LINN’s 50% equity interest in Roan for the period from September 1, 2017, to December 31, 2017. See Schedule 1 below for a reconciliation of Adjusted EBITDAX. |
• | Roan Resources LLC. A pure play high growth company focused in the prolific Merge/SCOOP/STACK play. LINN Energy, Inc., which currently trades on the OTCQB market under the ticker LNGG, will serve as a holding company solely for the existing 50 percent equity interest of Roan and would prepare to up list on either the NYSE or NASDAQ in 2018. |
• | Blue Mountain Midstream LLC. A rapidly expanding and highly economic midstream business centered in the core of the Merge. The Board continues to evaluate all options which include, among other things, hiring a separate management team, establishing an independent capital structure, pursuing additional third party acreage dedication, exploring potential strategic alternatives and/or a separate public listing independent from LNGG. The Chisholm Trail Midstream business in the Merge is expected to be the primary asset for Blue Mountain at separation. |
• | “NewCo”. The Company expects to form a new public company comprised of the following assets: Hugoton, Michigan/Illinois, Arkoma, NW STACK, East Texas and North Louisiana. “NewCo” is expected to be unlevered and generate significant free cash flow with a strategic focus on developing its growth oriented assets and returning capital to shareholders. |
Total Continuing Operations (Bcfe) | |
Proved reserves at December 31, 2016 | 3,350 |
Revisions of previous estimates | (78) |
Sales of minerals in place | (1,213) |
Extensions and discoveries | 142 |
Production | (233) |
Proved reserves at December 31, 2017 | 1,968 |
Q4 Actuals | Revised Q4 Guidance | |
Net Production (MMcfe/d) | 505 | 496 - 512 |
Natural gas (MMcf/d) | 321 | 315 - 325 |
Oil (Bbls/d) | 13,000 | 12,800 - 13,200 |
NGL (Bbls/d) | 17,600 | 17,300 - 17,900 |
Other revenues, net (in thousands) (1) | $ 9,647 | $ 9,000 - $ 10,000 |
Operating Costs (in thousands) | $ 89,200 | $ 87,000 - $ 93,000 |
Lease operating expenses | $ 51,487 | $ 50,000 - $ 54,000 |
Transportation expenses | $ 27,476 | $ 27,000 - $ 28,000 |
Taxes, other than income taxes | $ 10,237 | $ 10,000 - $ 11,000 |
General and administrative expenses (2) | $ 27,235 | $ 26,000 - $ 28,000 |
Targets (Mid-Point) (in thousands) | ||
Adjusted EBITDAX(3) | $74,791 | N/A |
Interest expense | $ 387 | $ 0 |
Oil and natural gas capital | $ 31,420 | $ 29,000 - $ 33,000 |
Total capital | $ 61,426 | $ 55,000 - $ 65,000 |
Weighted Average NYMEX Differentials | ||
Natural gas (MMBtu) | ($ 0.35) | ($ 0.37) - ($ 0.33) |
Oil (Bbl) | ($ 1.92) | ($ 1.65) - ($ 1.45) |
NGL price as a % of NYMEX oil price | 43% | 42% - 44% |
(1) | Includes other revenues and margin on marketing activities |
(2) | As included in operating cash flow and excludes share-based compensation expenses |
(3) | Adjusted EBITDAX not provided in the previously announced revised guidance |
Q1 2018E | FY 2018E | |
Net Production (MMcfe/d) | 375 - 415 | 296 - 328 |
Natural gas (MMcf/d) | 257 - 284 | 220 - 243 |
Oil (Bbls/d) | 7,327 - 8,098 | 2,619 - 2,894 |
NGL (Bbls/d) | 12,426 - 13,734 | 10,073 - 11,133 |
Other revenues, net (in thousands) (1) | $ 13,000 - $ 15,000 | $ 71,000 - $ 79,000 |
Costs (in thousands) | $ 72,000 - $ 81,000 | $ 205,000 - $ 226,000 |
Lease operating expenses | $ 43,000 - $ 48,000 | $ 101,000 - $ 111,000 |
Transportation expenses | $ 20,000 - $ 23,000 | $ 78,000 - $ 86,000 |
Taxes, other than income taxes | $ 9,000 - $ 10,000 | $ 26,000 - $ 29,000 |
General and administrative expenses (2) | $ 24,000 - $ 27,000 | $ 60,000 - $ 66,000 |
Costs per Mcfe (Mid-Point) | $ 2.15 | $ 1.89 |
Lease operating expenses | $ 1.28 | $ 0.93 |
Transportation expenses | $ 0.60 | $ 0.72 |
Taxes, other than income taxes | $ 0.27 | $ 0.24 |
General and administrative expenses (2) | $ 0.72 | $ 0.55 |
Targets (Mid-Point) (in thousands) | ||
Adjusted EBITDAX | $ 39,000 | $ 153,000 |
Interest expense | $ — | $ — |
Oil and natural gas capital | $ 7,000 | $ 34,000 |
Total capital | $ 60,000 | $ 134,000 |
Weighted Average NYMEX Differentials | ||
Natural gas (MMBtu) | ($ 0.33) - ($ 0.29) | ($ 0.41) - ($ 0.37) |
Oil (Bbl) | ($ 3.45) - ($ 3.12) | ($ 2.02) - ($ 1.83) |
NGL price as a % of crude oil price | 39% - 43% | 40% - 44% |
Unhedged Commodity Price Assumptions | Jan | Feb | Mar | 2018E |
Natural gas (MMBtu) | $ 2.74 | $ 3.63 | $ 2.58 | $ 2.79 |
Oil (Bbl) | $ 63.66 | $ 61.34 | $ 61.34 | $ 59.92 |
NGL (Bbl) | $ 24.44 | $ 26.49 | $ 25.92 | $ 25.17 |
(1) | Includes other revenues and margin on marketing activities |
(2) | As included in operating cash flow and excludes share-based compensation expenses and severance costs |
2018 | 2019 | |||
Natural Gas | Volume (MMMBtu/d) | Average Price (per MMBtu) | Volume (MMMBtu/d) | Average Price (per MMBtu) |
Swaps | 191 | $3.02 | 31 | $2.97 |
Oil | Volume (Bbls/d) | Average Price (per Bbl) | Volume (Bbls/d) | Average Price (per Bbl) |
Swaps | 1,500 | $54.07 | — | — |
Collars | 5,000 | $50.00 - $55.50 | 5,000 | $50.00 - $55.50 |
Successor | Predecessor | |||||||
December 31, 2017 | December 31, 2016 | |||||||
(in thousands) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 464,508 | $ | 694,857 | ||||
Accounts receivable – trade, net | 140,485 | 198,064 | ||||||
Derivative instruments | 9,629 | — | ||||||
Restricted cash | 56,445 | 1,602 | ||||||
Other current assets | 79,771 | 105,310 | ||||||
Assets held for sale | 106,963 | — | ||||||
Current assets of discontinued operations | — | 701 | ||||||
Total current assets | 857,801 | 1,000,534 | ||||||
Noncurrent assets: | ||||||||
Oil and natural gas properties (successful efforts method) | 950,083 | 12,349,117 | ||||||
Less accumulated depletion and amortization | (49,619 | ) | (9,843,908 | ) | ||||
900,464 | 2,505,209 | |||||||
Other property and equipment | 480,729 | 618,262 | ||||||
Less accumulated depreciation | (28,658 | ) | (217,724 | ) | ||||
452,071 | 400,538 | |||||||
Derivative instruments | 469 | — | ||||||
Deferred income taxes | 198,417 | — | ||||||
Equity method investments | 464,926 | 6,200 | ||||||
Other noncurrent assets | 6,975 | 7,784 | ||||||
Noncurrent assets of discontinued operations | — | 740,326 | ||||||
670,787 | 754,310 | |||||||
Total noncurrent assets | 2,023,322 | 3,660,057 | ||||||
Total assets | $ | 2,881,123 | $ | 4,660,591 | ||||
LIABILITIES AND EQUITY (DEFICIT) | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 253,975 | $ | 295,081 | ||||
Derivative instruments | 10,103 | 82,508 | ||||||
Current portion of long-term debt, net | — | 1,937,729 | ||||||
Other accrued liabilities | 58,617 | 25,979 | ||||||
Liabilities held for sale | 43,302 | — | ||||||
Current liabilities of discontinued operations | — | 321 | ||||||
Total current liabilities | 365,997 | 2,341,618 | ||||||
Derivative instruments | 2,849 | 11,349 | ||||||
Other noncurrent liabilities | 160,720 | 360,405 | ||||||
Noncurrent liabilities of discontinued operations | — | 39,202 | ||||||
Liabilities subject to compromise | — | 4,305,005 |
Successor | Predecessor | |||||||
December 31, 2017 | December 31, 2016 | |||||||
(in thousands) | ||||||||
Equity (deficit): | ||||||||
Predecessor units issued and outstanding | — | 5,386,885 | ||||||
Predecessor accumulated deficit | — | (7,783,873 | ) | |||||
Successor Class A common stock | 84 | — | ||||||
Successor additional paid-in capital | 1,899,642 | — | ||||||
Successor retained earnings | 432,860 | — | ||||||
Total common stockholders’/unitholders’ equity (deficit) | 2,332,586 | (2,396,988 | ) | |||||
Noncontrolling interests | 18,971 | — | ||||||
Total equity (deficit) | 2,351,557 | (2,396,988 | ) | |||||
Total liabilities and equity (deficit) | $ | 2,881,123 | $ | 4,660,591 |
Successor | Predecessor | |||||||||||||||
Ten Months Ended December 31, 2017 | Two Months Ended February 28, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | |||||||||||||
(in thousands, except per share and per unit amounts) | ||||||||||||||||
Revenues and other: | ||||||||||||||||
Oil, natural gas and natural gas liquids sales | $ | 709,363 | $ | 188,885 | $ | 874,161 | $ | 1,065,795 | ||||||||
Gains (losses) on oil and natural gas derivatives | 13,533 | 92,691 | (164,330 | ) | 1,027,014 | |||||||||||
Marketing revenues | 82,943 | 6,636 | 36,505 | 43,876 | ||||||||||||
Other revenues | 20,839 | 9,915 | 93,308 | 97,771 | ||||||||||||
826,678 | 298,127 | 839,644 | 2,234,456 | |||||||||||||
Expenses: | ||||||||||||||||
Lease operating expenses | 208,446 | 49,665 | 296,891 | 352,077 | ||||||||||||
Transportation expenses | 113,128 | 25,972 | 161,574 | 167,023 | ||||||||||||
Marketing expenses | 69,008 | 4,820 | 29,736 | 35,278 | ||||||||||||
General and administrative expenses | 117,548 | 71,745 | 237,841 | 285,996 | ||||||||||||
Exploration costs | 3,137 | 93 | 4,080 | 9,473 | ||||||||||||
Depreciation, depletion and amortization | 133,711 | 47,155 | 342,614 | 520,219 | ||||||||||||
Impairment of long-lived assets | — | — | 165,044 | 4,960,144 | ||||||||||||
Taxes, other than income taxes | 47,553 | 14,877 | 67,648 | 97,685 | ||||||||||||
(Gains) losses on sale of assets and other, net | (623,072 | ) | 829 | 16,257 | (194,805 | ) | ||||||||||
69,459 | 215,156 | 1,321,685 | 6,233,090 | |||||||||||||
Other income and (expenses): | ||||||||||||||||
Interest expense, net of amounts capitalized | (12,361 | ) | (16,725 | ) | (184,870 | ) | (456,749 | ) | ||||||||
Gain on extinguishment of debt | — | — | — | 708,050 | ||||||||||||
Earnings from equity method investments | 11,840 | 157 | 699 | 685 | ||||||||||||
Other, net | (6,233 | ) | (149 | ) | (1,536 | ) | (13,965 | ) | ||||||||
(6,754 | ) | (16,717 | ) | (185,707 | ) | 238,021 | ||||||||||
Reorganization items, net | (8,851 | ) | 2,331,189 | 311,599 | — | |||||||||||
Income (loss) from continuing operations before income taxes | 741,614 | 2,397,443 | (356,149 | ) | (3,760,613 | ) | ||||||||||
Income tax expense (benefit) | 388,942 | (166 | ) | 11,194 | (6,393 | ) | ||||||||||
Income (loss) from continuing operations | 352,672 | 2,397,609 | (367,343 | ) | (3,754,220 | ) | ||||||||||
Income (loss) from discontinued operations, net of income taxes | 82,995 | (548 | ) | (1,804,513 | ) | (1,005,591 | ) | |||||||||
Net income (loss) | 435,667 | 2,397,061 | (2,171,856 | ) | (4,759,811 | ) | ||||||||||
Net income attributable to noncontrolling interests | 2,807 | — | — | — | ||||||||||||
Net income (loss) attributable to common stockholders/unitholders | $ | 432,860 | $ | 2,397,061 | $ | (2,171,856 | ) | $ | (4,759,811 | ) | ||||||
Successor | Predecessor | |||||||||||||||
Ten Months Ended December 31, 2017 | Two Months Ended February 28, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | |||||||||||||
(in thousands, except per share and per unit amounts) | ||||||||||||||||
Income (loss) per share/unit attributable to common stockholders/unitholders: | ||||||||||||||||
Income (loss) from continuing operations per share/unit – Basic | $ | 3.99 | $ | 6.80 | $ | (1.04 | ) | $ | (10.94 | ) | ||||||
Income (loss) from continuing operations per share/unit – Diluted | $ | 3.92 | $ | 6.80 | $ | (1.04 | ) | $ | (10.94 | ) | ||||||
Income (loss) from discontinued operations per share/unit – Basic | $ | 0.95 | $ | (0.01 | ) | $ | (5.12 | ) | $ | (2.93 | ) | |||||
Income (loss) from discontinued operations per share/unit – Diluted | $ | 0.93 | $ | (0.01 | ) | $ | (5.12 | ) | $ | (2.93 | ) | |||||
Net income (loss) per share/unit – Basic | $ | 4.94 | $ | 6.79 | $ | (6.16 | ) | $ | (13.87 | ) | ||||||
Net income (loss) per share/unit – Diluted | $ | 4.85 | $ | 6.79 | $ | (6.16 | ) | $ | (13.87 | ) | ||||||
Weighted average shares/units outstanding – Basic | 87,646 | 352,792 | 352,653 | 343,323 | ||||||||||||
Weighted average shares/units outstanding – Diluted | 88,719 | 352,792 | 352,653 | 343,323 |
Successor | Predecessor | |||||||||||||||
Ten Months Ended December 31, 2017 | Two Months Ended February 28, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | |||||||||||||
(in thousands) | ||||||||||||||||
Cash flow from operating activities: | ||||||||||||||||
Net income (loss) | $ | 435,667 | $ | 2,397,061 | $ | (2,171,856 | ) | $ | (4,759,811 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||||
(Income) loss from discontinued operations | (82,995 | ) | 548 | 1,804,513 | 1,005,591 | |||||||||||
Depreciation, depletion and amortization | 133,711 | 47,155 | 342,614 | 520,219 | ||||||||||||
Impairment of long-lived assets | — | — | 165,044 | 4,960,144 | ||||||||||||
Deferred income taxes | 381,313 | (166 | ) | 11,367 | 4,606 | |||||||||||
Total (gains) losses on derivatives, net | (13,533 | ) | (92,691 | ) | 164,330 | (1,027,014 | ) | |||||||||
Cash settlements on derivatives | 26,793 | (11,572 | ) | 860,778 | 1,135,319 | |||||||||||
Share-based compensation expenses | 41,285 | 50,255 | 44,218 | 56,136 | ||||||||||||
Gain on extinguishment of debt | — | — | — | (708,050 | ) | |||||||||||
Amortization and write-off of deferred financing fees | 3,711 | 1,338 | 13,356 | 30,993 | ||||||||||||
(Gains) losses on sale of assets and other, net | (667,549 | ) | 1,069 | 13,007 | (188,200 | ) | ||||||||||
Reorganization items, net | — | (2,359,364 | ) | (365,367 | ) | — | ||||||||||
Changes in assets and liabilities: | ||||||||||||||||
(Increase) decrease in accounts receivable – trade, net | 41,094 | (7,216 | ) | (71,059 | ) | 211,884 | ||||||||||
(Increase) decrease in other assets | 4,548 | 402 | (17,733 | ) | (9,142 | ) | ||||||||||
(Increase) decrease in restricted cash | 2,151 | (80,164 | ) | — | — | |||||||||||
Increase (decrease) in accounts payable and accrued expenses | (48,963 | ) | 20,949 | 38,468 | (98,223 | ) | ||||||||||
Increase (decrease) in other liabilities | 7,740 | 2,801 | (515 | ) | (51,266 | ) | ||||||||||
Net cash provided by (used in) operating activities – continuing operations | 264,973 | (29,595 | ) | 831,165 | 1,083,186 | |||||||||||
Net cash provided by operating activities – discontinued operations | 16,191 | 8,781 | 49,349 | 166,271 | ||||||||||||
Net cash provided by (used in) operating activities | 281,164 | (20,814 | ) | 880,514 | 1,249,457 | |||||||||||
Cash flow from investing activities: | ||||||||||||||||
Development of oil and natural gas properties | (171,721 | ) | (50,597 | ) | (172,298 | ) | (550,083 | ) | ||||||||
Purchases of other property and equipment | (88,595 | ) | (7,409 | ) | (43,559 | ) | (48,967 | ) | ||||||||
Deconsolidation of Berry Petroleum Company, LLC cash | — | — | (28,549 | ) | — | |||||||||||
Investment in discontinued operations | — | — | — | (132,332 | ) | |||||||||||
Proceeds from sale of properties and equipment and other | 1,156,691 | (166 | ) | (4,690 | ) | 345,770 | ||||||||||
Net cash provided by (used in) investing activities – continuing operations | 896,375 | (58,172 | ) | (249,096 | ) | (385,612 | ) | |||||||||
Net cash provided by (used in) investing activities – discontinued operations | 345,643 | (584 | ) | 13,256 | 75,195 | |||||||||||
Net cash provided by (used in) investing activities | 1,242,018 | (58,756 | ) | (235,840 | ) | (310,417 | ) | |||||||||
Successor | Predecessor | |||||||||||||||
Ten Months Ended December 31, 2017 | Two Months Ended February 28, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | |||||||||||||
(in thousands) | ||||||||||||||||
Cash flow from financing activities: | ||||||||||||||||
Proceeds from rights offerings, net | — | 514,069 | — | — | ||||||||||||
Proceeds from sale of units | — | — | — | 224,665 | ||||||||||||
Repurchases of shares | (198,288 | ) | — | — | — | |||||||||||
Proceeds from borrowings | 190,000 | — | 978,500 | 1,445,000 | ||||||||||||
Repayments of debt | (1,090,000 | ) | (1,038,986 | ) | (913,209 | ) | (1,828,461 | ) | ||||||||
Payment to holders of claims under the second lien notes | — | (30,000 | ) | — | — | |||||||||||
Distributions to unitholders | — | — | — | (323,878 | ) | |||||||||||
Debt issuance costs paid | (7,729 | ) | — | (752 | ) | (17,916 | ) | |||||||||
Settlement of advance from discontinued operations | — | — | — | (129,217 | ) | |||||||||||
Excess tax benefit from unit-based compensation | — | — | — | (9,467 | ) | |||||||||||
Other | (7,012 | ) | (6,015 | ) | (14,823 | ) | (74,958 | ) | ||||||||
Net cash provided by (used in) financing activities – continuing operations | (1,113,029 | ) | (560,932 | ) | 49,716 | (714,232 | ) | |||||||||
Net cash used in financing activities – discontinued operations | — | — | (1,701 | ) | (224,449 | ) | ||||||||||
Net cash provided by (used in) financing activities | (1,113,029 | ) | (560,932 | ) | 48,015 | (938,681 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 410,153 | (640,502 | ) | 692,689 | 359 | |||||||||||
Cash and cash equivalents: | ||||||||||||||||
Beginning | 54,355 | 694,857 | 2,168 | 1,809 | ||||||||||||
Ending | 464,508 | 54,355 | 694,857 | 2,168 | ||||||||||||
Less cash and cash equivalents of discontinued operations at end of year | — | — | — | (1,023 | ) | |||||||||||
Ending – continuing operations | $ | 464,508 | $ | 54,355 | $ | 694,857 | $ | 1,145 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 (1) | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Net income (loss) | $ | 85,737 | $ | (834,237 | ) | $ | 2,832,728 | $ | (2,171,856 | ) | |||||
Plus (less): | |||||||||||||||
(Income) loss from discontinued operations | (150 | ) | 572,372 | (82,447 | ) | 1,804,513 | |||||||||
Interest expense | 387 | 25,394 | 29,086 | 184,870 | |||||||||||
Income tax expense | 229,491 | 8,250 | 388,776 | 11,194 | |||||||||||
Depreciation, depletion and amortization | 32,153 | 79,734 | 180,866 | 342,614 | |||||||||||
Exploration costs | 2,100 | 1,335 | 3,230 | 4,080 | |||||||||||
EBITDAX | 349,718 | (147,152 | ) | 3,352,239 | 175,415 | ||||||||||
Plus (less): | |||||||||||||||
Impairment of long-lived assets | — | — | — | 165,044 | |||||||||||
Noncash (gains) losses on oil and natural gas derivatives | 12,880 | 94,023 | (90,863 | ) | 668,273 | ||||||||||
Noncash settlements on derivatives (2) | — | — | — | 34,335 | |||||||||||
Accrued settlements on oil derivative contracts related to current production period (3) | (2,975 | ) | (389 | ) | (1,775 | ) | (73,743 | ) | |||||||
Share-based compensation expenses | 15,409 | 19,704 | 91,540 | 44,218 | |||||||||||
Write-off of deferred financing fees | — | 60 | 2,975 | 1,462 | |||||||||||
Earnings from equity method investments | (9,135 | ) | (188 | ) | (11,997 | ) | (699 | ) | |||||||
(Gains) losses on sale of assets and other, net (4) | (291,410 | ) | 1,064 | (626,139 | ) | 7,113 | |||||||||
Reorganization items, net (5) | 304 | 145,838 | (2,322,338 | ) | (311,599 | ) | |||||||||
Adjusted EBITDAX | $ | 74,791 | $ | 112,960 | $ | 393,642 | $ | 709,819 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2017 | 2016 | 2017 (1) | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Prepetition restructuring costs included in general and administrative expenses (6) | $ | — | $ | — | $ | — | $ | 19,567 | |||||||
Premiums paid for put options that settled during the period (7) | — | — | — | (58,246 | ) |
(1) | All amounts reflect the combined results of the ten months ended December 31, 2017 (successor) and the two months ended February 28, 2017 (predecessor). |
(2) | Represent derivative settlements that were paid directly by the counterparties to the lenders under the predecessor’s credit facility, and as such were not included on the Company’s consolidated statement of cash flows. |
(3) | Represent amounts related to oil derivative contracts that settled during the respective period (contract terms had expired) but cash had not been received as of the end of the period. |
(4) | Primarily represent gains or losses on the sale of assets and gains or losses on inventory valuation. |
(5) | Represent costs and income directly associated with the Company’s filing for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code since the petition date, and also include adjustments to reflect the carrying value of certain liabilities subject to compromise at their estimated allowed claim amounts, as such adjustments are determined. |
(6) | Represent restructuring costs incurred by the Company prior to its filing for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code, which are included in general and administrative expenses. |
(7) | Represent premiums paid at inception for put options that settled during the respective period. The Company has not purchased any put options since 2012. |
Three Months Ended December 31, 2017 | Four Months Ended December 31, 2017 | ||||||
(in thousands) | |||||||
Net income | $ | 3,988 | $ | 6,245 | |||
Plus: | |||||||
Interest expense | 510 | 590 | |||||
Depreciation, depletion and amortization | 8,665 | 11,388 | |||||
Exploration costs | 3,626 | 3,626 | |||||
EBITDAX | 16,789 | 21,849 | |||||
Plus: | |||||||
Noncash losses on oil and natural gas derivatives | 4,751 | 4,751 | |||||
Unit-based compensation expenses | 189 | 189 | |||||
Adjusted EBITDAX | $ | 21,729 | $ | 26,789 |
Standardized measure of discounted future net cash flows (1) | $ | 1,045 | |
Plus: Difference due to exclusion of federal income taxes | 155 | ||
Plus: Difference due to the inclusion of helium | 146 | ||
PV-10 | $ | 1,346 |
(1) | Estimated using the average price during the 12-month period, determined as an unweighted average of the first-day-of-the-month price for each month, which were $51.34 per Bbl and $2.98 per MMBtu. |
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