UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): July 24, 2013
CABOT OIL & GAS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware |
|
1-10447 |
|
04-3072771 |
(State or other jurisdiction |
|
(Commission File Number) |
|
(I.R.S. Employer |
of incorporation) |
|
|
|
Identification No.) |
Three Memorial City Plaza |
|
|
840 Gessner Road, Suite 1400 |
|
|
Houston, Texas |
|
77024 |
(Address of principal executive offices) |
|
(Zip Code) |
Registrants telephone number, including area code: (281) 589-4600
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)
Item 2.02 Results of Operations and Financial Condition.
On July 24, 2013, we issued a press release with respect to our 2013 second quarter earnings. The press release is furnished as Exhibit 99.1 to this Current Report. The press release contains certain measures (discussed below) which may be deemed non-GAAP financial measures as defined in Item 10 of Regulation S-K of the Securities Exchange Act of 1934, as amended. In each case, the most directly comparable GAAP financial measure and information reconciling the GAAP and non-GAAP measures is also included in the press release.
Exhibit 99.1 shall not be deemed to be filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
From time to time management discloses Discretionary Cash Flow, Net Income excluding selected items, Earnings per Share excluding selected items and Net Debt calculations and ratios. These non-GAAP financial measures, to the extent included in Exhibit 99.1, are reconciled to the most comparable GAAP financial measures in Exhibit 99.1.
Discretionary Cash Flow is defined as Net Income plus non-cash charges and Exploration Expense. Discretionary Cash Flow is widely accepted as a financial indicator of an oil and gas companys ability to generate cash which is used to internally fund exploration and development activities, pay dividends and service debt. Discretionary Cash Flow is presented based on managements belief that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies that use the Full Cost method of accounting for oil and gas producing activities or have different financing and capital structures or tax rates. Discretionary Cash Flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating activities, as defined by GAAP, or as a measure of liquidity, or an alternative to Net Income.
Net Income excluding selected items and Earnings per Share excluding selected items are presented based on managements belief that these non-GAAP measures enable a user of the financial information to understand the impact of these items on reported results. Additionally, this presentation provides a beneficial comparison to similarly adjusted measurements of prior periods. Net Income and Earnings per Share excluding selected items is not a measure of financial performance under GAAP and should not be considered as an alternative to Net Income and Earnings per Share, as defined by GAAP.
The total Debt to total Capitalization ratio is calculated by dividing total Debt by the sum of total Debt and total Stockholders Equity. This ratio is a measurement which is presented in our annual and interim filings and management believes this ratio is useful to investors in determining the Companys leverage. Net Debt and the Net Debt to total Capitalization ratio are non-GAAP measures which have been presented in Exhibit 99.1. Net Debt is calculated by subtracting Cash and Cash Equivalents from Total Debt. Management believes that these measurements are also useful to investors since the Company has the ability to and may decide to use a portion of its Cash and Cash Equivalents to retire Debt. Additionally, as the Company may incur additional expenditures without increasing debt, it is appropriate to apply Cash and Cash Equivalents to Debt in calculating the Net Debt to total Capitalization ratio.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press release issued by Cabot Oil & Gas Corporation dated July 24, 2013.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CABOT OIL & GAS CORPORATION | |
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| |
|
By: |
/S/ TODD M. ROEMER |
|
|
Todd M. Roemer |
|
|
Controller |
Date: July 24, 2013
Exhibit 99.1
|
|
NEWS RELEASE |
| ||
| ||
| ||
| ||
840 Gessner Rd., Houston, Texas 77024-4152 | ||
P. O. Box 4544, Houston, Texas 77210-4544 | ||
(281) 589-4600 |
|
FOR MORE INFORMATION CONTACT |
July 24, 2013 |
Matt Kerin (281) 589-4642 |
Cabot Oil & Gas Corporation Announces Second Quarter 2013 Results
Equivalent Production Increases 52 Percent Year-Over-Year
HOUSTON, Jul. 24, 2013 /PRNewswire/ Cabot Oil & Gas Corporation (NYSE: COG) today reported its financial results for the second quarter of 2013. Highlights for the quarter include:
· Production of 95.2 billion cubic feet equivalent (Bcfe), an increase of 52 percent over last years comparable quarter.
· Cash flow from operations of $277.3 million and discretionary cash flow of $297.1 million.
· Net income of $89.1 million, or $0.42 per share.
· Net income excluding selected items of $95.0 million, or $0.45 per share.
· Total unit costs were $3.10 per thousand cubic feet equivalent (Mcfe), a 28 percent decline over last years comparable quarter.
During the second quarter, Cabot continued to deliver strong financial performance as evidenced by increases in net income and discretionary cash flow of 148 percent and 109 percent, respectively, over last years comparable quarter, said Dan O. Dinges, Chairman, President and Chief Executive Officer. Our success for the quarter was primarily attributable to the Companys Marcellus Shale drilling program, where operating efficiencies continue to reduce our already low cost structure. Our ability to fund the Companys peer-leading production growth within cash flow, as we did in the second quarter, differentiates Cabot.
Second Quarter 2013
Production in the second quarter of 2013 was 95.2 Bcfe, consisting of 90.7 billion cubic feet (Bcf) of natural gas and 763,000 barrels of liquids. These figures represent a 52 percent increase in equivalent production compared to the second quarter of 2012 and an increase of 7 percent sequentially over the first quarter of 2013. Marcellus production during the second quarter outperformed our expectations, due in large part to strong well performance and the coordinated effort between our team and our infrastructure partner to manage line pressure across the field, stated Dinges.
Cash flow from operations in the second quarter of 2013 was $277.3 million, compared to $159.4 million in the second quarter of 2012. Discretionary cash flow in the second quarter of 2013 was $297.1 million, compared to $142.1 million in the second quarter of 2012. Higher equivalent production and realized natural gas prices drove the quarters overall improvement, partially offset by lower realized oil prices and increased operating expenses associated with higher production.
Net income in the second quarter of 2013 was $89.1 million, or $0.42 per share, compared to $35.9 million, or $0.17 per share, in the second quarter of 2012. Excluding the effect of selected items (detailed in the table below), net income was $95.0 million, or $0.45 per share, in the second quarter of 2013, compared to $10.2 million, or $0.05 per share, in the second quarter of 2012.
Natural gas price realizations, including the effect of hedges, were $4.06 per thousand cubic feet (Mcf) in the second quarter of 2013, up 20 percent compared to the second quarter of 2012. Although certain basis locations in the Marcellus play experienced some pricing weakness during the second quarter, the net effect on Cabots realized price was negligible, commented Dinges. Looking ahead, we believe gas price differentials will remain soft for
the short term throughout the entire Marcellus area. However, new takeaway projects slated for this fall should bring differentials closer to their historical averages. We anticipate that this weakness will have a minimal effect on our realized prices in the third quarter for reasons we discuss in detail on our website. Oil price realizations, including the effect of hedges, were $101.39 per barrel (Bbl), down 1 percent compared to the second quarter of 2012.
Total unit costs (including financing) decreased to $3.10 per Mcfe in the second quarter of 2013, down 28 percent from $4.29 per Mcfe in the second quarter of 2012. All operating expense categories decreased on a per unit basis relative to last years comparable quarter except for transportation and gathering expense, which increased 4 percent from $0.53 per Mcfe in the second quarter of 2012 to $0.55 per Mcfe in the second quarter of 2013, primarily as a result of increased natural gas production volumes in the Marcellus Shale.
Year-to-Date 2013
Production during the six-month period ended June 30, 2013 was 184.5 Bcfe, consisting of 175.8 Bcf of natural gas and 1.5 million barrels of liquids. These figures represent increases of 51 percent, 52 percent, and 29 percent, respectively, compared to the six-month period ended June 30, 2012.
For the six-month period ended June 30, 2013, cash flow from operations was $490.0 million, compared to $291.1 million for the six-month period ended June 30, 2012. Discretionary cash flow was $531.5 million for the six-month period ended June 30, 2013, compared to $280.7 million for the six-month period ended June 30, 2012. Higher equivalent production and, to a lesser extent, higher realized natural gas and oil prices drove the periods overall improvement, partially offset by increased operating expenses associated with higher production.
For the six-month period ended June 30, 2013, net income was $131.9 million, or $0.63 per share, compared to $54.3 million, or $0.26 per share, for the six-month period ended June 30, 2012. Excluding the effect of selected items (detailed in the table below), net income was $149.1 million, or $0.71 per share, compared to $38.7 million, or $0.19 per share, for the six-month period ended June 30, 2012.
Financial Position and Liquidity
At June 30, 2013, the Companys total debt was $1.1 billion, of which $380 million is outstanding under the Companys credit facility. Total lender commitments under the Companys credit facility remained at $900 million, resulting in $519 million of available credit under its facility at June 30, 2013.
As of June 30, 2013, the Companys net debt to adjusted capitalization ratio was 32.4 percent, compared to 33.2 percent at December 31, 2012 (detailed in the table below).
Conference Call
Listen in live to Cabot Oil & Gas Corporations second quarter financial and operating results discussion with financial analysts on Thursday, July 25, 2013, at 9:30 a.m. EST (8:30 a.m. CST) at www.cabotog.com. To aid in the discussion on the conference call, the Company has posted a presentation entitled Marcellus Marketing Supplementary Materials, which provides an overview of the Companys marketing strategy in the Marcellus Shale as well as commentary on infrastructure and pricing. This can be found in the Presentations section of the website under the Investor Info tab. Additionally, the latest financial guidance, including the Companys hedge positions, along with a replay of the webcast, which will be archived for one year, are available in the Investor Info section of the Companys website at www.cabotog.com.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading independent natural gas producer, with its entire resource base located in the continental United States. For additional information, visit the Companys homepage at www.cabotog.com.
The statements regarding future financial performance and results and the other statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to, market factors, the market price (including regional basis differentials) of natural gas and oil, results of future drilling and marketing activity, future production and costs, and other factors detailed in the Companys Securities and Exchange Commission filings.
FOR MORE INFORMATION CONTACT
Matt Kerin (281) 589-4642
CABOT OIL & GAS RESULTS
OPERATING DATA
|
|
Quarter Ended |
|
Six Months Ended |
| ||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
PRODUCED NATURAL GAS (Bcf) & LIQUIDS (MBbl) |
|
|
|
|
|
|
|
|
| ||||
Natural Gas |
|
|
|
|
|
|
|
|
| ||||
Appalachia |
|
85.4 |
|
52.4 |
|
165.2 |
|
102.0 |
| ||||
Other |
|
5.3 |
|
6.8 |
|
10.6 |
|
13.7 |
| ||||
Total |
|
90.7 |
|
59.2 |
|
175.8 |
|
115.7 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Crude/Condensate/NGL |
|
763 |
|
593 |
|
1,454 |
|
1,131 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Equivalent Production (Bcfe) |
|
95.2 |
|
62.8 |
|
184.5 |
|
122.4 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
PRICES (1) |
|
|
|
|
|
|
|
|
| ||||
Average Produced Gas Sales Price ($/Mcf) |
|
|
|
|
|
|
|
|
| ||||
Appalachia |
|
$ |
4.09 |
|
$ |
3.52 |
|
$ |
3.81 |
|
$ |
3.64 |
|
Other |
|
$ |
3.63 |
|
$ |
2.34 |
|
$ |
3.05 |
|
$ |
2.58 |
|
Total |
|
$ |
4.06 |
|
$ |
3.39 |
|
$ |
3.77 |
|
$ |
3.52 |
|
|
|
|
|
|
|
|
|
|
| ||||
Average Crude/Condensate Price ($/Bbl) |
|
$ |
101.39 |
|
$ |
102.61 |
|
$ |
102.65 |
|
$ |
99.76 |
|
|
|
|
|
|
|
|
|
|
| ||||
WELLS DRILLED |
|
|
|
|
|
|
|
|
| ||||
Gross |
|
51 |
|
35 |
|
83 |
|
66 |
| ||||
Net |
|
43.8 |
|
28 |
|
69.7 |
|
51 |
| ||||
Gross success rate |
|
96% |
|
97% |
|
96% |
|
99% |
|
(1) These realized prices include the realized impact of derivative instrument settlements.
|
|
Quarter Ended |
|
Six Months Ended |
| ||||||||
|
|
|
| ||||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
Realized Impacts to Gas Pricing |
|
$ |
|
|
$ |
1.18 |
|
$ |
0.07 |
|
$ |
1.10 |
|
Realized Impacts to Oil Pricing |
|
$ |
3.02 |
|
$ |
5.55 |
|
$ |
3.12 |
|
$ |
1.66 |
|
CABOT OIL & GAS RESULTS
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
|
|
Quarter Ended |
|
Six Months Ended |
| ||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
Operating Revenues |
|
|
|
|
|
|
|
|
| ||||
Natural gas |
|
$ |
368,391 |
|
$ |
201,051 |
|
$ |
662,184 |
|
$ |
407,833 |
|
Crude oil and condensate |
|
70,226 |
|
57,466 |
|
135,881 |
|
107,447 |
| ||||
Brokered natural gas |
|
8,244 |
|
5,149 |
|
19,137 |
|
18,593 |
| ||||
Other |
|
2,819 |
|
1,991 |
|
5,763 |
|
3,920 |
| ||||
|
|
449,680 |
|
265,657 |
|
822,965 |
|
537,793 |
| ||||
Operating Expenses |
|
|
|
|
|
|
|
|
| ||||
Direct operations |
|
36,978 |
|
29,306 |
|
68,475 |
|
56,626 |
| ||||
Transportation and gathering |
|
52,648 |
|
33,139 |
|
98,869 |
|
63,397 |
| ||||
Brokered natural gas |
|
6,704 |
|
4,250 |
|
15,093 |
|
16,122 |
| ||||
Taxes other than income |
|
11,364 |
|
10,854 |
|
23,051 |
|
29,437 |
| ||||
Exploration |
|
4,529 |
|
16,244 |
|
8,553 |
|
20,245 |
| ||||
Depreciation, depletion and amortization |
|
151,389 |
|
114,616 |
|
300,042 |
|
224,973 |
| ||||
General and administrative (excluding stock-based compensation) |
|
11,565 |
|
35,475 |
|
28,600 |
|
56,369 |
| ||||
Stock-based compensation (1) |
|
10,043 |
|
11,397 |
|
28,712 |
|
13,052 |
| ||||
|
|
285,220 |
|
255,281 |
|
571,395 |
|
480,221 |
| ||||
Gain (loss) on sale of assets |
|
276 |
|
67,703 |
|
180 |
|
67,168 |
| ||||
Income from Operations |
|
164,736 |
|
78,079 |
|
251,750 |
|
124,740 |
| ||||
Interest expense and other |
|
16,701 |
|
18,495 |
|
32,956 |
|
35,412 |
| ||||
Income before income taxes |
|
148,035 |
|
59,584 |
|
218,794 |
|
89,328 |
| ||||
Income tax expense |
|
58,921 |
|
23,647 |
|
86,856 |
|
35,073 |
| ||||
Net Income |
|
$ |
89,114 |
|
$ |
35,937 |
|
$ |
131,938 |
|
$ |
54,255 |
|
Earnings per share - Basic |
|
$ |
0.42 |
|
$ |
0.17 |
|
$ |
0.63 |
|
$ |
0.26 |
|
Weighted average common shares outstanding |
|
210,349 |
|
209,512 |
|
210,250 |
|
209,320 |
|
(1) Includes the impact of the Companys performance share awards, restricted stock, stock appreciation rights and expense associated with the Supplemental Employee Incentive Plan. The increase in expense for the first six months of 2013 compared to the first six months of 2012 is due to the Companys higher stock price and the resulting mark-to-market for liability awards.
CABOT OIL & GAS RESULTS
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
(In thousands)
|
|
June 30, |
|
December 31, |
| ||
|
|
2013 |
|
2012 |
| ||
Assets |
|
|
|
|
| ||
Current assets |
|
$ |
403,193 |
|
$ |
270,310 |
|
Properties and equipment, net |
|
4,558,207 |
|
4,310,977 |
| ||
Other assets |
|
56,536 |
|
35,026 |
| ||
Total assets |
|
$ |
5,017,936 |
|
$ |
4,616,313 |
|
|
|
|
|
|
| ||
Liabilities and Stockholders Equity |
|
|
|
|
| ||
Current liabilities |
|
$ |
494,391 |
|
$ |
444,139 |
|
Long-term debt, excluding current maturities |
|
1,067,000 |
|
1,012,000 |
| ||
Deferred income taxes |
|
1,015,493 |
|
882,672 |
| ||
Other liabilities |
|
154,811 |
|
146,055 |
| ||
Stockholders equity |
|
2,286,241 |
|
2,131,447 |
| ||
Total liabilities and stockholders equity |
|
$ |
5,017,936 |
|
$ |
4,616,313 |
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
(In thousands)
|
|
Quarter Ended |
|
Six Months Ended |
| ||||||||
|
|
June 30, |
|
June 30, |
| ||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
Cash Flows From Operating Activities |
|
|
|
|
|
|
|
|
| ||||
Net income |
|
$ |
89,114 |
|
$ |
35,937 |
|
$ |
131,938 |
|
$ |
54,255 |
|
Deferred income tax expense |
|
46,088 |
|
17,349 |
|
69,662 |
|
27,073 |
| ||||
(Gain) / loss on sale of assets |
|
(276 |
) |
(67,703 |
) |
(180 |
) |
(67,168 |
) | ||||
Exploration expense |
|
140 |
|
10,876 |
|
806 |
|
10,925 |
| ||||
Unrealized (gain) / loss on derivatives |
|
|
|
342 |
|
|
|
300 |
| ||||
Income charges not requiring cash |
|
162,034 |
|
145,343 |
|
329,239 |
|
255,294 |
| ||||
Changes in assets and liabilities |
|
(19,818 |
) |
17,218 |
|
(41,498 |
) |
10,463 |
| ||||
Net cash provided by operations |
|
277,282 |
|
159,362 |
|
489,967 |
|
291,142 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
| ||||
Capital expenditures |
|
(263,887 |
) |
(222,780 |
) |
(524,056 |
) |
(411,327 |
) | ||||
Proceeds from sale of assets |
|
420 |
|
131,435 |
|
906 |
|
132,715 |
| ||||
Investment in equity method investment |
|
(3,000 |
) |
(2,088 |
) |
(4,250 |
) |
(2,088 |
) | ||||
Net cash used in investing |
|
(266,467 |
) |
(93,433 |
) |
(527,400 |
) |
(280,700 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
| ||||
Net increase (decrease) in debt |
|
15,000 |
|
(40,000 |
) |
55,000 |
|
22,000 |
| ||||
Stock-based compensation tax benefit |
|
5,210 |
|
|
|
7,348 |
|
|
| ||||
Dividends paid |
|
(4,206 |
) |
(4,191 |
) |
(8,407 |
) |
(8,368 |
) | ||||
Capitalized debt issuance cost |
|
|
|
(5,005 |
) |
|
|
(5,005 |
) | ||||
Other |
|
1 |
|
(420 |
) |
33 |
|
(339 |
) | ||||
Net cash provided by (used in) financing |
|
16,005 |
|
(49,616 |
) |
53,974 |
|
8,288 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net increase (decrease) in cash and cash equivalents |
|
$ |
26,820 |
|
$ |
16,313 |
|
$ |
16,541 |
|
$ |
18,730 |
|
CABOT OIL & GAS RESULTS
Selected Item Review and Reconciliation of Net Income and Earnings Per Share
(In thousands, except per share amounts)
|
|
Quarter Ended |
|
Six Months Ended |
| ||||||||
|
|
June 30, |
|
June 30, |
| ||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
As reported - net income |
|
$ |
89,114 |
|
$ |
35,937 |
|
$ |
131,938 |
|
$ |
54,255 |
|
Reversal of selected items, net of tax: |
|
|
|
|
|
|
|
|
| ||||
(Gain) / loss on sale of assets |
|
(166 |
) |
(41,434 |
) |
(109 |
) |
(41,107 |
) | ||||
Stock-based compensation expense |
|
6,046 |
|
6,975 |
|
17,314 |
|
7,988 |
| ||||
Pension expense(1) |
|
|
|
8,470 |
|
|
|
12,294 |
| ||||
Unrealized (gain) / loss on derivatives |
|
|
|
210 |
|
|
|
184 |
| ||||
Pennsylvania impact fee (2) |
|
|
|
|
|
|
|
5,067 |
| ||||
Net income excluding selected items |
|
$ |
94,994 |
|
$ |
10,158 |
|
$ |
149,143 |
|
$ |
38,681 |
|
As reported - earnings per share |
|
$ |
0.42 |
|
$ |
0.17 |
|
$ |
0.63 |
|
$ |
0.26 |
|
Per share impact of reversing selected items |
|
0.03 |
|
(0.12 |
) |
0.08 |
|
(0.07 |
) | ||||
Earnings per share including reversal of selected items |
|
$ |
0.45 |
|
$ |
0.05 |
|
$ |
0.71 |
|
$ |
0.19 |
|
Weighted average common shares outstanding |
|
210,349 |
|
209,512 |
|
210,250 |
|
209,320 |
|
(1) On July 28, 2010, the Company notified its employees of its plan to terminate its qualified pension plan, effective September 30, 2010. These amounts represent pension expenses related to the plan termination, including settlement costs and expenses related to the acceleration of amortization of prior service costs and actuarial losses over the period. Final distribution of the qualified pension plan occurred as of the end of the second quarter 2012. Pension expense is included in General and administrative expense in the Condensed Consolidated Statement of Operations.
(2) In February 2012, the Pennsylvania state legislature authorized the assessment of an impact fee on Marcellus Shale production. This amount represents the initial year accrual related to our 2011 and prior wells. Expenses associated with the impact fee are included in Taxes other than income in the Condensed Consolidated Statement of Operations.
Discretionary Cash Flow Calculation and Reconciliation
(In thousands)
|
|
Quarter Ended |
|
Six Months Ended |
| ||||||||
|
|
June 30, |
|
June 30, |
| ||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
| ||||
Discretionary Cash Flow |
|
|
|
|
|
|
|
|
| ||||
As reported - net income |
|
$ |
89,114 |
|
$ |
35,937 |
|
$ |
131,938 |
|
$ |
54,255 |
|
Plus / (less): |
|
|
|
|
|
|
|
|
| ||||
Deferred income tax expense |
|
46,088 |
|
17,349 |
|
69,662 |
|
27,073 |
| ||||
(Gain) / loss on sale of assets |
|
(276 |
) |
(67,703 |
) |
(180 |
) |
(67,168 |
) | ||||
Exploration expense |
|
140 |
|
10,876 |
|
806 |
|
10,925 |
| ||||
Unrealized (gain) / loss on derivatives |
|
|
|
342 |
|
|
|
300 |
| ||||
Income charges not requiring cash |
|
162,034 |
|
145,343 |
|
329,239 |
|
255,294 |
| ||||
Discretionary Cash Flow |
|
297,100 |
|
142,144 |
|
531,465 |
|
280,679 |
| ||||
Changes in assets and liabilities |
|
(19,818 |
) |
17,218 |
|
(41,498 |
) |
10,463 |
| ||||
Net cash provided by operations |
|
$ |
277,282 |
|
$ |
159,362 |
|
$ |
489,967 |
|
$ |
291,142 |
|
Net Debt Reconciliation
(In thousands)
|
|
June 30, |
|
December 31, |
| ||
|
|
2013 |
|
2012 |
| ||
|
|
|
|
|
| ||
Current portion of long-term debt |
|
$ |
75,000 |
|
$ |
75,000 |
|
Long-term debt |
|
$ |
1,067,000 |
|
$ |
1,012,000 |
|
Total debt |
|
$ |
1,142,000 |
|
$ |
1,087,000 |
|
Stockholders equity |
|
2,286,241 |
|
2,131,447 |
| ||
Total Capitalization |
|
$ |
3,428,241 |
|
$ |
3,218,447 |
|
|
|
|
|
|
| ||
Total debt |
|
$ |
1,142,000 |
|
$ |
1,087,000 |
|
Less: Cash and cash equivalents |
|
(47,277 |
) |
(30,736 |
) | ||
Net Debt |
|
$ |
1,094,723 |
|
$ |
1,056,264 |
|
|
|
|
|
|
| ||
Net debt |
|
$ |
1,094,723 |
|
$ |
1,056,264 |
|
Stockholders equity |
|
2,286,241 |
|
2,131,447 |
| ||
Total Adjusted Capitalization |
|
$ |
3,380,964 |
|
$ |
3,187,711 |
|
|
|
|
|
|
| ||
Total debt to total capitalization ratio |
|
33.3% |
|
33.8% |
| ||
Less: Impact of cash and cash equivalents |
|
0.9% |
|
0.6% |
| ||
Net Debt to Adjusted Capitalization Ratio |
|
32.4% |
|
33.2% |
|