EX-99.4 5 d576827dex994.htm EX-99.4 EX-99.4

Exhibit 99.4

 

 

Non-GAAP Financial Measures

 

The United States Securities and Exchange Commission requires public companies, such as Energen Corporation (the Company), to reconcile Non-GAAP (GAAP refers to generally accepted accounting principles) financial measures to related GAAP measures. Adjusted Net Income is a Non-GAAP financial measure which excludes certain non-cash mark-to-market derivative financial instruments and a commodity price-related write-down of natural gas properties. 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 6/30/2013

Consolidated Net Income ($ in millions except per share data)       

 

        Net Income        

   

 

Per Diluted Share

Net Income (GAAP)

     83.1      1.15 

Non-cash mark-to-market gains (net of $20.6 tax)

       (35.5)     (0.49)

Adjusted Net Income (Non-GAAP)

       47.6      0.66 
           
   

  

         
   
       

 

Quarter Ended 6/30/2012

Consolidated Net Income ($ in millions except per share data)       

 

Net Income

   

 

Per Diluted Share

Net Income (GAAP)

     131.3      1.82 

Non-cash mark-to-market gains (net of $43.0 tax)

       (78.5)     (1.09)

Adjusted Net Income (Non-GAAP)

       52.8      0.73 
           
   

  

         
   
       

 

Year-to-Date Ended 6/30/2013

Consolidated Net Income ($ in millions except per share data)       

 

Net Income

   

 

Per Diluted Share

Net Income (GAAP)

     139.8      1.93 

Non-cash mark-to-market gains (net of $5.6 tax)

       (9.5)     (0.13)

Adjusted Net Income (Non-GAAP)

       130.2      1.80 
           
   

  

         
         
       

 

Year-to-Date Ended 6/30/2012

Consolidated Net Income ($ in millions except per share data)       

 

Net Income

   

 

Per Diluted Share

Net Income (GAAP)

     188.7      2.61 

Non-cash mark-to-market gains (net of $28.6 tax)

     (52.2)     (0.73)

Non-cash write-down of natural gas properties (net of $8.1 tax)

       13.4      0.19 

Adjusted Net Income (Non-GAAP)

       149.9      2.07 
           
   

  

         

Note: Amounts may not sum due to rounding

 

Non-GAAP Financial Measures

 

The United States Securities and Exchange Commission requires public companies, such as Energen Corporation (the Company), to reconcile Non-GAAP (GAAP refers to generally accepted accounting principles) financial measures to related GAAP measures. Adjusted Net Income is a Non-GAAP financial measure which excludes certain non-cash mark-to-market derivative financial instruments and a commodity price-related write-down of natural gas properties. 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.

 

 

 

Energen Resources Net Income ($ in millions)              Quarter Ended     
6/30/2013		     

 

   Year-to-date   
6/30/2013

  

Net Income (GAAP)

        83.9           92.6    

Non-cash mark-to-market gains (net of $20.6 and $5.6 tax)

          (35.5)          (9.5)   

Adjusted Net Income (Non-GAAP)

          48.4           83.1    
            
   

  

                  
       
Energen Resources Net Income ($ in millions)        

 

Quarter Ended
6/30/2012

     

Year-to-date
6/30/2012

  

Net Income (GAAP)

        131.7           141.2    

Non-cash mark-to-market gains (net of $43.0 and $28.6 tax)

        (78.5)          (52.2)   

Non-cash write-down of natural gas properties (net of $8.1 tax)

          -              13.4    

Adjusted Net Income (Non-GAAP)

          53.2           102.4    
            
   

  

                  

Non-GAAP Financial Measures

 

The United States Securities and Exchange Commission requires public companies, such as Energen Corporation (the Company), to reconcile Non-GAAP (GAAP refers to generally accepted accounting principles) financial measures to related GAAP measures. Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a Non-GAAP financial measure. Energen believes this measure allows analysts and investors to understand the financial performance of the company by computing earnings from core business operations, without including the effects of capital structure, tax rates and depreciation. Further, this measure is useful in comparing profitability between the company and other oil and gas producing companies. Adjusted EBITDA excludes certain non-cash mark-to-market derivative financial instruments and a commodity price-related write-down of natural gas properties.

 

 

Reconciliation To GAAP Information                Year-to-Date Ended 6/30                 Quarter Ended  6/30
($ in millions)         2012    2013         2012    2013
       

Consolidated Net Income (GAAP)

      188.7     139.8                        131.3     83.1 

Interest expense

      31.3     34.1        15.8     17.3 

Income tax expense

      106.8     80.1        73.6     46.6 

Depreciation, depletion and amortization

        196.5     247.6        102.0     132.3 

EBITDA (Non-GAAP)

        523.3     501.5        322.7                      279.2 

Adjustment for asset impairment

      21.5     -            -         -     

Adjustment for mark-to-market gains

        (80.8)    (15.1)       (121.5)    (56.1)
Consolidated Adjusted EBITDA (Non-GAAP)        464.0     486.4        201.2     223.1 
                       
   

  

                       
Reconciliation To GAAP Information                Year-to-Date Ended 6/30                 Quarter Ended  6/30
($ in millions)         2012    2013         2012    2013
       

Energen Resources Net Income (GAAP)

      141.2     92.6                        131.7     83.9 

Interest expense

      23.5     26.5        12.0     13.6 

Income tax expense

      78.7     52.3        72.7     46.8 

Depreciation, depletion and amortization

        175.5     226.0        91.5     121.4 

Energen Resources EBITDA (Non-GAAP)

        418.9     397.4        307.9                      265.7 

Adjustment for asset impairment

      21.5     -            -         -     

Adjustment for mark-to-market gains

        (80.8)    (15.1)       (121.5)    (56.1)
Energen Resources Adjusted EBITDA (Non-GAAP)        359.6     382.3        186.4     209.5 
                       
   

  

                       

Note: Amounts may not sum due to rounding

Non-GAAP Financial Measures

 

The United States Securities and Exchange Commission requires public companies, such as Energen Corporation (the Company), to reconcile Non-GAAP (GAAP refers to generally accepted accounting principles) financial measures to related GAAP measures. After-tax Cash Flows is a Non-GAAP financial measure. Energen believes after-tax cash flows are relevant because they are a measure of cash available to fund the Company’s capital expenditures, dividends, debt reduction, and other investments.

 

 

Reconciliation To GAAP Information        Years Ended 12/31
($ in millions)         2011 Actual     2012 Actual       2013 Estimate  (e)  
     

Consolidated Net Income (Before asset impairment)

       260      268      228      258 

Asset impairment

        -         (14)    -         -     

Consolidated Net Income (GAAP)

        260     254     228     258 

Depreciation, depletion and amortization (Including asset impairment)

      284     441     536     536 

Deferred income taxes, net

      129     124     121     121 

Exploratory expense

      11     17     -         -     

Other

        53     (34)    22     22 

After-tax Cash Flows (Non-GAAP)

      737     802     907     937 

Changes in assets and liabilities and other adjustments

        25     (66)    32     32 

Net Cash Provided by Operating Activities (GAAP)

        762     736     939     969 
                  
   

  

                    
             
Reconciliation To GAAP Information        Years Ended 12/31
($ in millions)         2011 Actual     2012 Actual     2013 Estimate (e)    
     

Net Cash Provided by Operating Activities (GAAP)

      762     736     939     969 

Changes in assets and liabilities and other adjustments

        (25)    66     (32)    (32)

After-tax Cash Flow (Non-GAAP)

      737     802     907     937 

Less: AGC cash flows from operations and other

        (115)    (103)    (101)    (101)

Adj. After-tax Cash Flows Excluding Alagasco (Non-GAAP)

        622     699     806     836 
                  
   

  

                    

 

(e) This estimate is a “forward-looking statement” as defined by the Securities and Exchange Commission. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A discussion of risks and uncertainties, which could affect future results of Energen and its subsidiaries, is included in the Company’s periodic reports filed with the Securities and Exchange Commission.