EX-99.2 3 d438554dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the 3 months ending June 30, 2017 and 2016

 

     2nd Quarter        

(in thousands, except per share data)

   2017     2016     Change  

Revenues

      

Oil, natural gas liquids and natural gas sales

   $ 218,723     $ 171,637     $ 47,086  

Gain (loss) on derivative instruments, net

     38,101       (65,872     103,973  
  

 

 

   

 

 

   

 

 

 

Total revenues

     256,824       105,765       151,059  
  

 

 

   

 

 

   

 

 

 

Operating Costs and Expenses

      

Oil, natural gas liquids and natural gas production

     43,909       42,840       1,069  

Production and ad valorem taxes

     13,218       11,265       1,953  

Depreciation, depletion and amortization

     121,549       117,035       4,514  

Asset impairment

     29       —         29  

Exploration

     1,998       1,520       478  

General and administrative (including stock based compensation of $3,191 and $5,504 for the three months ended June 30, 2017, and 2016, respectively)

     19,792       23,548       (3,756

Accretion of discount on asset retirement obligations

     1,443       1,779       (336

(Gain) loss on sale of assets and other

     172       (161,097     161,269  
  

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     202,110       36,890       165,220  
  

 

 

   

 

 

   

 

 

 

Operating Income

     54,714       68,875       (14,161
  

 

 

   

 

 

   

 

 

 

Other Income (Expense)

      

Interest expense

     (9,145     (9,038     (107

Other income

     45       63       (18
  

 

 

   

 

 

   

 

 

 

Total other expense

     (9,100     (8,975     (125
  

 

 

   

 

 

   

 

 

 

Income Before Income Taxes

     45,614       59,900       (14,286

Income tax expense

     16,133       23,141       (7,008
  

 

 

   

 

 

   

 

 

 

Net Income

   $ 29,481     $ 36,759     $ (7,278
  

 

 

   

 

 

   

 

 

 

Diluted Earnings Per Average Common Share

   $ 0.30     $ 0.38     $ (0.08
  

 

 

   

 

 

   

 

 

 

Basic Earnings Per Average Common Share

   $ 0.30     $ 0.38     $ (0.08
  

 

 

   

 

 

   

 

 

 

Diluted Average Common Shares Outstanding

     97,693       97,389       304  
  

 

 

   

 

 

   

 

 

 

Basic Average Common Shares Outstanding

     97,189       97,067       122  
  

 

 

   

 

 

   

 

 

 


CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the 6 months ending June 30, 2017 and 2016

 

     Year-to-date        

(in thousands, except per share data)

   2017     2016     Change  

Revenues

      

Oil, natural gas liquids and natural gas sales

   $ 395,098     $ 294,401     $ 100,697  

Gain (loss) on derivative instruments, net

     102,647       (60,417     163,064  
  

 

 

   

 

 

   

 

 

 

Total revenues

     497,745       233,984       263,761  
  

 

 

   

 

 

   

 

 

 

Operating Costs and Expenses

      

Oil, natural gas liquids and natural gas production

     85,197       90,567       (5,370

Production and ad valorem taxes

     26,038       22,435       3,603  

Depreciation, depletion and amortization

     221,201       236,397       (15,196

Asset impairment

     1,489       220,025       (218,536

Exploration

     5,634       1,762       3,872  

General and administrative (including stock based compensation of $6,388 and $7,975 for the six months ended June 30, 2017, and 2016, respectively)

     40,191       53,073       (12,882

Accretion of discount on asset retirement obligations

     2,857       3,536       (679

Gain on sale of assets and other

     (1,003     (160,875     159,872  
  

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     381,604       466,920       (85,316
  

 

 

   

 

 

   

 

 

 

Operating Income (Loss)

     116,141       (232,936     349,077  
  

 

 

   

 

 

   

 

 

 

Other Income (Expense)

      

Interest expense

     (18,111     (18,871     760  

Other income

     428       159       269  
  

 

 

   

 

 

   

 

 

 

Total other expense

     (17,683     (18,712     1,029  
  

 

 

   

 

 

   

 

 

 

Income (Loss) Before Income Taxes

     98,458       (251,648     350,106  

Income tax expense (benefit)

     35,574       (85,291     120,865  
  

 

 

   

 

 

   

 

 

 

Net Income (Loss)

   $ 62,884     $ (166,357   $ 229,241  
  

 

 

   

 

 

   

 

 

 

Diluted Earnings Per Average Common Share

   $ 0.64     $ (1.81   $ 2.45  
  

 

 

   

 

 

   

 

 

 

Basic Earnings Per Average Common Share

   $ 0.65     $ (1.81   $ 2.46  
  

 

 

   

 

 

   

 

 

 

Diluted Average Common Shares Outstanding

     97,648       91,850       5,798  
  

 

 

   

 

 

   

 

 

 

Basic Average Common Shares Outstanding

     97,165       91,850       5,315  
  

 

 

   

 

 

   

 

 

 


CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of June 30, 2017 and December 31, 2016

 

(in thousands)

   June 30, 2017      December 31, 2016  

ASSETS

     

Current Assets

     

Cash and cash equivalents

   $ 498      $ 386,093  

Accounts receivable, net

     104,359        73,322  

Inventories, net

     18,263        14,222  

Derivative instruments

     39,063        50  

Income tax receivable

     301        27,153  

Prepayments and other

     4,410        5,071  
  

 

 

    

 

 

 

Total current assets

     166,894        505,911  
  

 

 

    

 

 

 

Property, Plant and Equipment

     

Oil and natural gas properties, net

     4,513,743        4,016,683  

Other property and equipment, net

     45,241        44,869  
  

 

 

    

 

 

 

Total property, plant and equipment, net

     4,558,984        4,061,552  
  

 

 

    

 

 

 

Other postretirement assets

     3,595        3,619  

Noncurrent derivative instruments

     9,534        —    

Other assets

     7,725        8,741  
  

 

 

    

 

 

 

TOTAL ASSETS

   $ 4,746,732      $ 4,579,823  
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current Liabilities

     

Long-term debt due within one year

     17,000        24,000  

Accounts payable

     65,770        65,031  

Accrued taxes

     12,734        7,252  

Accrued wages and benefits

     15,709        25,089  

Accrued capital costs

     95,509        79,988  

Revenue and royalty payable

     48,332        51,217  

Derivative instruments

     481        65,467  

Other

     17,778        20,160  
  

 

 

    

 

 

 

Total current liabilities

     273,313        338,204  
  

 

 

    

 

 

 

Long-term debt

     659,158        527,443  

Asset retirement obligations

     84,867        81,544  

Deferred income taxes

     532,605        495,888  

Noncurrent derivative instruments

     502        3,006  

Other long-term liabilities

     8,545        13,136  
  

 

 

    

 

 

 

Total liabilities

     1,558,990        1,459,221  
  

 

 

    

 

 

 

Total Shareholders’ Equity

     3,187,742        3,120,602  
  

 

 

    

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

   $ 4,746,732      $ 4,579,823  
  

 

 

    

 

 

 


SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending June 30, 2017 and 2016

 

     2nd Quarter        

(in thousands, except sales price and per unit data)

   2017     2016     Change  

Operating and production data

      

Oil, natural gas liquids and natural gas sales

      

Oil

   $ 182,701     $ 146,360     $ 36,341  

Natural gas liquids

     18,634       13,928       4,706  

Natural gas

     17,388       11,349       6,039  
  

 

 

   

 

 

   

 

 

 

Total

   $ 218,723     $ 171,637     $ 47,086  
  

 

 

   

 

 

   

 

 

 

Open non-cash mark-to-market gains (losses) on derivative instruments

      

Oil

   $ 31,067     $ (54,729   $ 85,796  

Natural gas liquids

     4,530       —         4,530  

Natural gas

     1,737       (5,896     7,633  
  

 

 

   

 

 

   

 

 

 

Total

   $ 37,334     $ (60,625   $ 97,959  
  

 

 

   

 

 

   

 

 

 

Closed gains (losses) on derivative instruments

      

Oil

   $ 152     $ (6,297   $ 6,449  

Natural gas liquids

     (80     —         (80

Natural gas

     695       1,050       (355
  

 

 

   

 

 

   

 

 

 

Total

   $ 767     $ (5,247   $ 6,014  
  

 

 

   

 

 

   

 

 

 

Total revenues

   $ 256,824     $ 105,765     $ 151,059  
  

 

 

   

 

 

   

 

 

 

Production volumes

      

Oil (MBbl)

     4,102       3,558       544  

Natural gas liquids (MMgal)

     51.6       44.8       6.8  

Natural gas (MMcf)

     7,596       7,296       300  
  

 

 

   

 

 

   

 

 

 

Total production volumes (MBOE)

     6,596       5,841       755  
  

 

 

   

 

 

   

 

 

 

Average daily production volumes

      

Oil (MBbl/d)

     45.1       39.1       6.0  

Natural gas liquids (MMgal/d)

     0.6       0.5       0.1  

Natural gas (MMcf/d)

     83.5       80.2       3.3  
  

 

 

   

 

 

   

 

 

 

Total average daily production volumes (MBOE/d)

     72.5       64.2       8.3  
  

 

 

   

 

 

   

 

 

 

Average realized prices excluding effects of open non-cash mark-to-market derivative instruments

      

Oil (per barrel)

   $ 44.58     $ 39.37     $ 5.21  

Natural gas liquids (per gallon)

   $ 0.36     $ 0.31     $ 0.05  

Natural gas (per Mcf)

   $ 2.38     $ 1.70     $ 0.68  

Average realized prices excluding effects of all derivative instruments

      

Oil (per barrel)

   $ 44.54     $ 41.14     $ 3.40  

Natural gas liquids (per gallon)

   $ 0.36     $ 0.31     $ 0.05  

Natural gas (per Mcf)

   $ 2.29     $ 1.56     $ 0.73  

Costs per BOE

      

Oil, natural gas liquids and natural gas production expenses

   $ 6.66     $ 7.34     $ (0.68

Production and ad valorem taxes

   $ 2.00     $ 1.93     $ 0.07  

Depreciation, depletion and amortization

   $ 18.43     $ 20.04     $ (1.61

Exploration expense

   $ 0.30     $ 0.26     $ 0.04  

General and administrative

   $ 3.00     $ 4.03     $ (1.03

Capital expenditures (including acquisitions)

   $ 336,111     $ 92,962     $ 243,149  


SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 6 months ending June 30, 2017 and 2016

 

     Year-to-date        

(in thousands, except sales price and per unit data)

   2017     2016     Change  

Operating and production data

      

Oil, natural gas liquids and natural gas sales

      

Oil

   $ 329,371     $ 248,517     $ 80,854  

Natural gas liquids

     34,268       22,517       11,751  

Natural gas

     31,459       23,367       8,092  
  

 

 

   

 

 

   

 

 

 

Total

   $ 395,098     $ 294,401     $ 100,697  
  

 

 

   

 

 

   

 

 

 

Open non-cash mark-to-market gains (losses) on derivative instruments

      

Oil

   $ 89,125     $ (56,428   $ 145,553  

Natural gas liquids

     11,617       —         11,617  

Natural gas

     8,961       (4,454     13,415  
  

 

 

   

 

 

   

 

 

 

Total

   $ 109,703     $ (60,882   $ 170,585  
  

 

 

   

 

 

   

 

 

 

Closed gains (losses) on derivative instruments

      

Oil

   $ (5,858   $ (1,203   $ (4,655

Natural gas liquids

     (1,545     —         (1,545

Natural gas

     347       1,668       (1,321
  

 

 

   

 

 

   

 

 

 

Total

   $ (7,056   $ 465     $ (7,521
  

 

 

   

 

 

   

 

 

 

Total revenues

   $ 497,745     $ 233,984     $ 263,761  
  

 

 

   

 

 

   

 

 

 

Production volumes

      

Oil (MBbl)

     7,098       6,944       154  

Natural gas liquids (MMgal)

     85.3       84.8       0.5  

Natural gas (MMcf)

     13,326       14,742       (1,416
  

 

 

   

 

 

   

 

 

 

Total production volumes (MBOE)

     11,350       11,421       (71
  

 

 

   

 

 

   

 

 

 

Average daily production volumes

      

Oil (MBbl/d)

     39.2       38.2       1.0  

Natural gas liquids (MMgal/d)

     0.5       0.5       —    

Natural gas (MMcf/d)

     73.6       81.0       (7.4
  

 

 

   

 

 

   

 

 

 

Total average daily production volumes (MBOE/d)

     62.7       62.8       (0.1
  

 

 

   

 

 

   

 

 

 

Average realized prices excluding effects of open non-cash mark-to-market derivative instruments

      

Oil (per barrel)

   $ 45.58     $ 35.62     $ 9.96  

Natural gas liquids (per gallon)

   $ 0.38     $ 0.27     $ 0.11  

Natural gas (per Mcf)

   $ 2.39     $ 1.70     $ 0.69  

Average realized prices excluding effects of all derivative instruments

      

Oil (per barrel)

   $ 46.40     $ 35.79     $ 10.61  

Natural gas liquids (per gallon)

   $ 0.40     $ 0.27     $ 0.13  

Natural gas (per Mcf)

   $ 2.36     $ 1.59     $ 0.77  

Costs per BOE

      

Oil, natural gas liquids and natural gas production expenses

   $ 7.51     $ 7.93     $ (0.42

Production and ad valorem taxes

   $ 2.29     $ 1.96     $ 0.33  

Depreciation, depletion and amortization

   $ 19.49     $ 20.70     $ (1.21

Exploration expense

   $ 0.50     $ 0.15     $ 0.35  

General and administrative

   $ 3.54     $ 4.65     $ (1.11

Capital expenditures (includes acquisitions)

   $ 720,246     $ 217,050     $ 503,196