EX-99.2 3 d766509dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending June 30, 2014 and 2013

 

 

     2nd Quarter        

(in thousands, except per share data)

    2014     2013     Change  

Revenues

       

Oil, natural gas liquids and natural gas sales

    $ 355,852      $ 312,400      $ 43,452   

Gain (loss) on derivative instruments, net

Loss on sale of assets and other

     

 

 (84,846

(909

 ) 

) 

    

 

 55,244

(663

   

) 

    

 

 (140,090

(246

 ) 

) 

  

 

 

    

 

 

    

 

 

  

Total revenues

      270,097        366,981        (96,884 ) 
  

 

 

    

 

 

    

 

 

  

Operating Costs and Expenses

       

Oil, natural gas liquids and natural gas production

      64,697        59,607        5,090   

Production and ad valorem taxes

      28,049        23,503        4,546   

Depreciation, depletion and amortization

      136,244        112,384        23,860   

Exploration

      2,575        3,455        (880 ) 

General and administrative

Accretion of discount on asset retirement obligations

     

 

 33,542

1,883

   

  

    

 

 27,666

1,729

   

  

    

 

 5,876

154

   

  

  

 

 

    

 

 

    

 

 

  

Total costs and expenses

      266,990        228,344        38,646   
  

 

 

    

 

 

    

 

 

  

Operating Income

      3,107        138,637        (135,530 ) 
  

 

 

    

 

 

    

 

 

  

Other Income (Expense)

       

Interest expense

      (7,964 )      (10,182 )      2,218   

Other income

      687        196        491   
  

 

 

    

 

 

    

 

 

  

Total other expense

      (7,277 )      (9,986 )      2,709   
  

 

 

    

 

 

    

 

 

  

Income (Loss) From Continuing Operations Before Income Taxes

      (4,170 )      128,651        (132,821 ) 

Income tax expense (benefit)

      (1,016 )      46,229        (47,245 ) 
  

 

 

    

 

 

    

 

 

  

Income (Loss) From Continuing Operations

      (3,154 )      82,422        (85,576 ) 
  

 

 

    

 

 

    

 

 

  

Discontinued Operations, net of tax

       

Income (loss) from discontinued operations

      (4,799 )      645        (5,444 ) 
  

 

 

    

 

 

    

 

 

  

Income (Loss) From Discontinued Operations

      (4,799 )      645        (5,444 ) 
  

 

 

    

 

 

    

 

 

  

Net Income (Loss)

    $ (7,953 )    $ 83,067      $ (91,020 ) 
  

 

 

    

 

 

    

 

 

  

Diluted Earnings Per Average Common Share

       

Continuing operations

    $ (0.04 )    $ 1.14      $ (1.18 ) 

Discontinued operations

      (0.07 )      0.01        (0.08 ) 
  

 

 

    

 

 

    

 

 

  

Net Income (Loss)

    $ (0.11 )    $ 1.15      $ (1.26 ) 
  

 

 

    

 

 

    

 

 

  

Basic Earnings Per Average Common Share

       

Continuing operations

    $ (0.04 )    $ 1.14      $ (1.18 ) 

Discontinued operations

      (0.07 )      0.01        (0.08 ) 
  

 

 

    

 

 

    

 

 

  

Net Income (Loss)

    $ (0.11 )    $ 1.15      $ (1.26 ) 
  

 

 

    

 

 

    

 

 

  

Diluted Avg. Common Shares Outstanding

      72,851        72,419        432   
  

 

 

    

 

 

    

 

 

  

Basic Avg. Common Shares Outstanding

      72,851        72,167        684   
  

 

 

    

 

 

    

 

 

  

Dividends Per Common Share

    $ 0.150      $ 0.145      $ 0.005   
  

 

 

    

 

 

    

 

 

  

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 6 months ending June 30, 2014 and 2013

 

     Year-to-date        

(in thousands, except per share data)

    2014     2013     Change  

Revenues

       

Oil, natural gas liquids and natural gas sales

    $ 706,674      $ 567,239      $ 139,435   

Gain (loss) on derivative instruments, net

Loss on sale of assets and other

     

 

 (138,237

(1,062

 ) 

) 

    

 

 36,288

(215

   

) 

    

 

 (174,525

(847

 ) 

) 

  

 

 

    

 

 

    

 

 

  

Total revenues

      567,375        603,312        (35,937 ) 
  

 

 

    

 

 

    

 

 

  

Operating Costs and Expenses

       

Oil, natural gas liquids and natural gas production

      132,141        125,149        6,992   

Production and ad valorem taxes

      55,373        46,879        8,494   

Depreciation, depletion and amortization

      260,464        207,336        53,128   

Exploration

      15,389        4,953        10,436   

General and administrative

Accretion of discount on asset retirement obligations

     

 

 65,715

3,726

   

  

    

 

 55,752

3,416

   

  

    

 

 9,963

310

   

  

  

 

 

    

 

 

    

 

 

  

Total costs and expenses

      532,808        443,485        89,323   
  

 

 

    

 

 

    

 

 

  

Operating Income

      34,567        159,827        (125,260 ) 
  

 

 

    

 

 

    

 

 

  

Other Income (Expense)

       

Interest expense

      (15,852 )      (20,083 )      4,231   

Other income

      1,010        1,370        (360 ) 
  

 

 

    

 

 

    

 

 

  

Total other expense

      (14,842 )      (18,713 )      3,871   
  

 

 

    

 

 

    

 

 

  

Income From Continuing Operations Before Income Taxes

      19,725        141,114        (121,389 ) 

Income tax expense

      7,232        50,273        (43,041 ) 
  

 

 

    

 

 

    

 

 

  

Income From Continuing Operations

      12,493        90,841        (78,348 ) 
  

 

 

    

 

 

    

 

 

  

Discontinued Operations, net of tax

       

Income from discontinued operations

      33,920        48,918        (14,998 ) 

Loss on disposal of discontinued operations

      (1,050 )      —          (1,050 ) 
  

 

 

    

 

 

    

 

 

  

Income From Discontinued Operations

      32,870        48,918        (16,048 ) 
  

 

 

    

 

 

    

 

 

  

Net Income

    $ 45,363      $ 139,759      $ (94,396 ) 
  

 

 

    

 

 

    

 

 

  

Diluted Earnings Per Average Common Share

       

Continuing operations

    $ 0.17      $ 1.26      $ (1.09 ) 

Discontinued operations

      0.45        0.67        (0.22 ) 
  

 

 

    

 

 

    

 

 

  

Net Income

    $ 0.62      $ 1.93      $ (1.31 ) 
  

 

 

    

 

 

    

 

 

  

Basic Earnings Per Average Common Share

       

Continuing operations

    $ 0.17      $ 1.26      $ (1.09 ) 

Discontinued operations

      0.45        0.68        (0.23 ) 
  

 

 

    

 

 

    

 

 

  

Net Income

    $ 0.62      $ 1.94      $ (1.32 ) 
  

 

 

    

 

 

    

 

 

  

Diluted Avg. Common Shares Outstanding

      73,031        72,329        702   
  

 

 

    

 

 

    

 

 

  

Basic Avg. Common Shares Outstanding

      72,737        72,155        582   
  

 

 

    

 

 

    

 

 

  

Dividends Per Common Share

    $ 0.30      $ 0.29      $ 0.01   
  

 

 

    

 

 

    

 

 

  

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of June 30, 2014 and December 31, 2013

 

(in thousands)

    June 30, 2014      December 31, 2013  

ASSETS

      

Current Assets

      

Cash and cash equivalents

    $ 1,516       $ 2,523   

Short-term investments

      42,000         —     

Accounts receivable, net of allowance

      178,721         136,334   

Inventories

      12,541         11,130   

Assets held for sale as of June 30, 2014 with prior period comparable

      1,154,046         1,242,872   

Derivative instruments

      524         17,463   

Other current assets

      87,517         31,239   
  

 

 

     

 

 

  

Total current assets

      1,476,865         1,441,561   
  

 

 

     

 

 

  

Property, Plant and Equipment

      

Oil and natural gas properties, net

      5,413,727         5,087,573   

Other property and equipment, net

      37,869         30,515   
  

 

 

     

 

 

  

Total property, plant and equipment, net

      5,451,596         5,118,088   
  

 

 

     

 

 

  

Noncurrent derivative instruments

      623         5,439   

Other assets

      53,025         57,124   
  

 

 

     

 

 

  

TOTAL ASSETS

    $ 6,982,109       $ 6,622,212   
  

 

 

     

 

 

  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current Liabilities

      

Long-term debt due within one year

    $ 570,000       $ 60,000   

Notes payable to banks

      669,000         489,000   

Accounts payable

      135,416         78,178   

Liabilities related to assets held for sale as of June 30, 2014 with prior period comparable

      767,131         831,570   

Derivative instruments

      96,213         30,302   

Other current liabilities

      226,978         202,175   
  

 

 

     

 

 

  

Total current liabilities

      2,464,738         1,691,225   
  

 

 

     

 

 

  

Long-term debt

      553,552         1,093,541   

Asset retirement obligations

      113,087         108,533   

Deferred income taxes

      848,422         807,614   

Noncurrent derivative instruments

      21,705         398   

Other long-term liabilities

      66,588         62,882   
  

 

 

     

 

 

  

Total liabilities

      4,068,092         3,764,193   
  

 

 

     

 

 

  

Total Shareholders’ Equity

      2,914,017         2,858,019   
  

 

 

     

 

 

  

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

    $ 6,982,109       $ 6,622,212   
  

 

 

     

 

 

  

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending June 30, 2014 and 2013

 

     2nd Quarter        

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

    2014     2013     Change  

Oil and Gas Operations

       

Oil, natural gas liquids and natural gas sales from continuing operations

       

Oil

    $ 262,746      $ 234,870      $ 27,876   

Natural gas liquids

      31,163        20,871        10,292   

Natural gas

      61,943        56,659        5,284   
  

 

 

    

 

 

    

 

 

  

Total

      355,852        312,400        43,452   
  

 

 

    

 

 

    

 

 

  

Loss on sale of assets and other

    $ (909 )    $ (663 )    $ (246 ) 
  

 

 

    

 

 

    

 

 

  

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

       

Oil

    $ (66,172 )    $ 36,680      $ (102,852 ) 

Natural gas liquids

      40        168        (128 ) 

Natural gas

      6,511        19,301        (12,790 ) 
  

 

 

    

 

 

    

 

 

  

Total

    $ (59,621 )    $ 56,149      $ (115,770 ) 
  

 

 

    

 

 

    

 

 

  

Closed gains (losses) on derivative instruments

       

Oil

    $ (25,754 )    $ (9,076 )    $ (16,678 ) 

Natural gas liquids

      159        3,109        (2,950 ) 

Natural gas

      370        5,062        (4,692 ) 
  

 

 

    

 

 

    

 

 

  

Total

    $ (25,225 )    $ (905 )    $ (24,320 ) 
  

 

 

    

 

 

    

 

 

  

Total Revenues

    $ 270,097      $ 366,981      $ (96,884 ) 
  

 

 

    

 

 

    

 

 

  

Production volumes from continuing operations

       

Oil (MBbl)

      2,833        2,592        241   

Natural gas liquids (MMgal)

      44.7        34.2        10.5   

Natural gas (MMcf)

      14,676        14,742        (66 ) 
  

 

 

    

 

 

    

 

 

  

Production volumes from continuing operations(MBOE)

      6,344        5,864        480   
  

 

 

    

 

 

    

 

 

  

Total production volumes (MBOE)

      6,354        6,480        (126 ) 
  

 

 

    

 

 

    

 

 

  

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

  

Oil (per barrel)

    $ 83.65      $ 87.11      $ (3.46 ) 

Natural gas liquids (per gallon)

    $ 0.70      $ 0.70      $ —     

Natural gas (per Mcf)

    $ 4.25      $ 4.19      $ 0.06   

Average realized prices excluding derivative instruments

       

Oil (per barrel)

    $ 92.74      $ 90.61      $ 2.13   

Natural gas liquids (per gallon)

    $ 0.70      $ 0.61      $ 0.09   

Natural gas (per Mcf)

    $ 4.22      $ 3.84      $ 0.38   

Other costs per BOE from continuing operations

       

Oil, natural gas liquids and natural gas production expenses

    $ 10.20      $ 10.16      $ 0.04   

Production and ad valorem taxes

    $ 4.42      $ 4.01      $ 0.41   

Depreciation, depletion and amortization

    $ 21.31      $ 19.00      $ 2.31   

Exploration expense

    $ 0.41      $ 0.59      $ (0.18 ) 

General and administrative

    $ 5.29      $ 4.72      $ 0.57   

Capital expenditures

    $ 322,572      $ 349,879      $ (27,307 ) 

 

*

The presentation of average prices with derivatives is a non-GAAP measure as a means to reflect the actual cash performance of our commodity derivatives for the respective periods and presents oil and natural gas prices with derivatives in a manner consistent with the presentation generally accepted by the investment community.

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 6 months ending June 30, 2014 and 2013

 

     Year-to-date        

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

    2014     2013     Change  

Oil and Gas Operations

       

Oil, natural gas liquids and natural gas sales from continuing operations

       

Oil

    $ 516,505      $ 425,629      $ 90,876   

Natural gas liquids

      59,366        39,526        19,840   

Natural gas

      130,803        102,084        28,719   
  

 

 

    

 

 

    

 

 

  

Total

      706,674        567,239        139,435   
  

 

 

    

 

 

    

 

 

  

Loss on sale of assets and other

    $ (1,062 )    $ (215 )    $ (847 ) 
  

 

 

    

 

 

    

 

 

  

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

       

Oil

    $ (87,636 )    $ 28      $ (87,664 ) 

Natural gas liquids

      327        147        180   

Natural gas

      (5,993 )      14,926        (20,919 ) 
  

 

 

    

 

 

    

 

 

  

Total

    $ (93,302 )    $ 15,101      $ (108,403 ) 
  

 

 

    

 

 

    

 

 

  

Closed gains (losses) on derivative instruments

       

Oil

    $ (40,556 )    $ (1,632 )    $ (38,924 ) 

Natural gas liquids

      355        5,591        (5,236 ) 

Natural gas

      (4,734 )      17,228        (21,962 ) 
  

 

 

    

 

 

    

 

 

  

Total

    $ (44,935 )    $ 21,187      $ (66,122 ) 
  

 

 

    

 

 

    

 

 

  

Total Revenues

    $ 567,375      $ 603,312      $ (35,937 ) 
  

 

 

    

 

 

    

 

 

  

Production volumes from continuing operations

       

Oil (MBbl)

      5,584        4,906        678   

Natural gas liquids (MMgal)

      82.7        61.8        20.9   

Natural gas (MMcf)

      28,800        28,560        240   
  

 

 

    

 

 

    

 

 

  

Production volumes from continuing operations(MBOE)

      12,352        11,137        1,215   
  

 

 

    

 

 

    

 

 

  

Total production volumes (MBOE)

      12,516        12,401        115   
  

 

 

    

 

 

    

 

 

  

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

  

Oil (per barrel)

    $ 85.23      $ 86.42      $ (1.19 ) 

Natural gas liquids (per gallon)

    $ 0.72      $ 0.73      $ (0.01 ) 

Natural gas (per Mcf)

    $ 4.38      $ 4.18      $ 0.20   

Average realized prices excluding derivative instruments

       

Oil (per barrel)

    $ 92.50      $ 86.76      $ 5.74   

Natural gas liquids (per gallon)

    $ 0.72      $ 0.64      $ 0.08   

Natural gas (per Mcf)

    $ 4.54      $ 3.57      $ 0.97   

Other costs per BOE from continuing operations

       

Oil, natural gas liquids and natural gas production expenses

    $ 10.70      $ 11.24      $ (0.54 ) 

Production and ad valorem taxes

    $ 4.48      $ 4.21      $ 0.27   

Depreciation, depletion and amortization

    $ 20.93      $ 18.45      $ 2.48   

Exploration expense

    $ 1.25      $ 0.44      $ 0.81   

General and administrative

    $ 5.32      $ 5.01      $ 0.31   

Capital expenditures

    $ 594,268      $ 634,932      $ (40,664 ) 

 

*

The presentation of average prices with derivatives is a non-GAAP measure as a means to reflect the actual cash performance of our commodity derivatives for the respective periods and presents oil and natural gas prices with derivatives in a manner consistent with the presentation generally accepted by the investment community.