• | Increased production by 8% year-over-year to 37.8 Mboe/d (78% oil) |
• | Generated an operating margin of $35.58 per Boe |
• | Realized fully diluted earnings per share of $0.21, adjusted earnings per share of $0.19, net income of $55.8 million, and adjusted EBITDA of $117.4 million(i) |
• | Reduced operational capital spending by 13% during the third quarter to $116.4 million, maintaining full year operational capital targets within the previously lowered guidance range |
• | Achieved lease operating expense (“LOE”) per Boe of $5.65, an improvement of nearly 9% over the prior period |
• | Completed and placed on production large multi-interval, multi-pad projects in both the Midland and Delaware Basins with strong initial performance from both projects |
Three Months Ended September 30, 2019 | ||||||||||||||||
Operational | Capitalized | Capitalized | Total Capital | |||||||||||||
Capital (a) | Interest | G&A | Expenditures | |||||||||||||
Cash basis (b) | $ | 121,457 | $ | 15,165 | $ | 7,373 | $ | 143,995 | ||||||||
Timing adjustments (c) | (5,044 | ) | 2,965 | — | (2,079 | ) | ||||||||||
Non-cash items | — | — | 866 | 866 | ||||||||||||
Accrual basis | $ | 116,413 | $ | 18,130 | $ | 8,239 | $ | 142,782 |
(a) | Includes facilities, equipment, seismic, land and other items. Excludes capitalized expenses. |
(b) | Cash basis is presented here to help users of financial information reconcile amounts from the cash flow statement to the balance sheet by accounting for timing related changes in working capital that align with our development pace and rig count. |
(c) | Includes timing adjustments related to cash disbursements in the current period for capital expenditures incurred in the prior period. |
Three Months Ended | ||||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | ||||||||||
Net production | ||||||||||||
Oil (MBbls) | 2,725 | 2,848 | 2,521 | |||||||||
Natural gas (MMcf) | 4,538 | 5,031 | 4,144 | |||||||||
Total (Mboe) | 3,481 | 3,687 | 3,212 | |||||||||
Average daily production (Boe/d) | 37,837 | 40,516 | 34,913 | |||||||||
% oil (Boe basis) | 78 | % | 77 | % | 78 | % | ||||||
Oil and natural gas revenues (in thousands) | ||||||||||||
Oil revenue | $ | 148,210 | $ | 160,728 | $ | 142,601 | ||||||
Natural gas revenue | 7,168 | 6,324 | 18,613 | |||||||||
Total revenue | 155,378 | 167,052 | 161,214 | |||||||||
Impact of settled derivatives | 1,011 | (1,157 | ) | (9,239 | ) | |||||||
Adjusted Total Revenue (i) | $ | 156,389 | $ | 165,895 | $ | 151,975 | ||||||
Average realized sales price (excluding impact of settled derivatives) | ||||||||||||
Oil (per Bbl) | $ | 54.39 | $ | 56.44 | $ | 56.57 | ||||||
Natural gas (per Mcf) | 1.58 | 1.26 | 4.49 | |||||||||
Total (per BOE) | 44.64 | 45.31 | 50.19 | |||||||||
Average realized sales price (including impact of settled derivatives) | ||||||||||||
Oil (per Bbl) | $ | 54.01 | $ | 54.87 | $ | 52.87 | ||||||
Natural gas (per Mcf) | 2.03 | 1.91 | 4.51 | |||||||||
Total (per BOE) | 44.93 | 44.99 | 47.31 | |||||||||
Additional per BOE data | ||||||||||||
Sales price (a) | $ | 44.64 | $ | 45.31 | $ | 50.19 | ||||||
Lease operating expense | 5.65 | 6.18 | 5.77 | |||||||||
Production taxes | 3.41 | 3.02 | 3.20 | |||||||||
Operating margin | $ | 35.58 | $ | 36.11 | $ | 41.22 | ||||||
Depletion, depreciation and amortization | $ | 16.09 | $ | 17.07 | $ | 15.02 | ||||||
Adjusted G&A (b) | ||||||||||||
Cash component (c) | $ | 2.52 | $ | 2.42 | $ | 2.17 | ||||||
Non-cash component | 0.44 | 0.68 | 0.57 |
(a) | Excludes the impact of settled derivatives. |
(b) | Excludes certain non-recurring expenses and non-cash valuation adjustments. Adjusted G&A is a non-GAAP financial measure; see the reconciliation provided within this press release for a reconciliation of G&A expense on a GAAP basis to Adjusted G&A expense. |
(c) | Excludes the amortization of equity-settled, share-based incentive awards and corporate depreciation and amortization. |
Three Months Ended September 30, 2019 | |||||||
In Thousands | Per Unit | ||||||
Oil derivatives | |||||||
Net gain (loss) on settlements | $ | (1,045 | ) | $ | (0.38 | ) | |
Net gain (loss) on fair value adjustments | 25,767 | ||||||
Total gain (loss) on oil derivatives | 24,722 | ||||||
Natural gas derivatives | |||||||
Net gain (loss) on settlements | 2,056 | $ | 0.45 | ||||
Net gain (loss) on fair value adjustments | (733 | ) | |||||
Total gain (loss) on natural gas derivatives | 1,323 | ||||||
Total commodity derivatives | |||||||
Net gain (loss) on settlements | 1,011 | $ | 0.29 | ||||
Net gain (loss) on fair value adjustments | 25,034 | ||||||
Total gain (loss) on total commodity derivatives | $ | 26,045 |
Three Months Ended September 30, 2019 | |||
Total G&A expense | $ | 9,388 | |
Change in the fair value of liability share-based awards (non-cash) | 926 | ||
Adjusted G&A – total | 10,314 | ||
Restricted stock share-based compensation (non-cash) | (1,525 | ) | |
Corporate depreciation & amortization (non-cash) | (3 | ) | |
Adjusted G&A – cash component | $ | 8,786 |
Third Quarter | Year to Date | Updated Full Year | ||||
2019 Actual | 2019 Actual | 2019 Guidance | ||||
Total production (Mboe/d) (a) | 37.8 | 39.5 | 39.2 - 39.6 | |||
% oil | 78% | 78% | 78% | |||
Income statement expenses (per Boe) | ||||||
LOE, including workovers | $5.65 | $6.16 | $5.75 - $6.25 | |||
Production taxes, including ad valorem (% unhedged revenue) | 8% | 7% | 7% | |||
Adjusted G&A: cash component (b) | $2.52 | $2.41 | $2.00 - $2.50 | |||
Adjusted G&A: non-cash component (c) | $0.44 | $0.52 | $0.50 - $1.00 | |||
Cash interest expense (d) | $0.00 | $0.00 | $0.00 | |||
Effective income tax rate | 24% | 24% | 22% | |||
Capital expenditures ($MM, accrual basis) | ||||||
Total operational (e) | $116 | $405 | $495 - $520 | |||
Capitalized interest and G&A expenses | $26 | $84 | $100 - $105 | |||
Net operated horizontal wells placed on production | 16 | 43 | 48 - 50 |
(a) | Year to date 2019 actual production reflects volumes associated with southern Midland Basin properties divested on June 12, 2019. |
(b) | Excludes the amortization of equity-settled, share-based incentive awards, corporate depreciation and amortization, and pending merger-related expenses. Adjusted G&A is a non-GAAP financial measure; see the reconciliation provided within this press release for a reconciliation of G&A expense on a GAAP basis to Adjusted G&A expense. |
(c) | Excludes certain non-recurring expenses and non-cash valuation adjustments. Adjusted G&A is a non-GAAP financial measure; see the reconciliation provided within this press release for a reconciliation of G&A expense on a GAAP basis to Adjusted G&A expense. |
(d) | All cash interest expense anticipated to be capitalized. |
(e) | Includes facilities, equipment, seismic, land and other items. Excludes capitalized expenses. |
For the Remainder | For the Full Year | For the Full Year | ||||||||||
Oil contracts (WTI) | of 2019 | of 2020 | of 2021 | |||||||||
Puts | ||||||||||||
Total volume (Bbls) | 230,000 | — | — | |||||||||
Weighted average price per Bbl | $ | 65.00 | $ | — | $ | — | ||||||
Put spreads | ||||||||||||
Total volume (Bbls) | 230,000 | — | — | |||||||||
Weighted average price per Bbl | ||||||||||||
Floor (long put) | $ | 65.00 | $ | — | $ | — | ||||||
Floor (short put) | $ | 42.50 | $ | — | $ | — | ||||||
Collar contracts with short puts (three-way collars) | ||||||||||||
Total volume (Bbls) | 1,196,000 | 5,124,000 | — | |||||||||
Weighted average price per Bbl | ||||||||||||
Ceiling (short call) | $ | 67.46 | $ | 65.46 | $ | — | ||||||
Floor (long put) | $ | 56.54 | $ | 55.45 | $ | — | ||||||
Floor (short put) | $ | 43.65 | $ | 44.66 | $ | — | ||||||
Collar contracts (two-way collars) | ||||||||||||
Total volume (Bbls) | 276,000 | — | — | |||||||||
Weighted average price per Bbl | ||||||||||||
Ceiling (short call) | $ | 60.00 | $ | — | $ | — | ||||||
Floor (long put) | $ | 55.00 | $ | — | $ | — | ||||||
Short call | ||||||||||||
Total volume (Bbls) | — | — | 1,825,000 | (a) | ||||||||
Weighted average price per Bbl | $ | — | $ | — | $ | 63.00 | ||||||
Swap contracts | ||||||||||||
Total volume (Bbls) | 276,000 | 1,098,000 | — | |||||||||
Weighted average price per Bbl | $ | 60.17 | $ | 56.17 | $ | — | ||||||
Oil contracts (Brent ICE) | ||||||||||||
Collar contracts with short puts (three-way collars) | ||||||||||||
Total volume (Bbls) | — | 837,500 | — | |||||||||
Weighted average price per Bbl | ||||||||||||
Ceiling (short call) | $ | — | $ | 70.00 | $ | — | ||||||
Floor (long put) | $ | — | $ | 58.24 | $ | — | ||||||
Floor (short put) | $ | — | $ | 50.00 | $ | — | ||||||
Oil contracts (Midland basis differential) | ||||||||||||
Swap contracts | ||||||||||||
Total volume (Bbls) | 2,176,000 | 4,576,000 | 1,095,000 | |||||||||
Weighted average price per Bbl | $ | (2.50 | ) | $ | (1.29 | ) | $ | 1.00 | ||||
Oil contracts (Argus Houston MEH basis differential) | ||||||||||||
Swap contracts | ||||||||||||
Total volume (Bbls) | — | 1,439,205 | — | |||||||||
Weighted average price per Bbl | $ | — | $ | 2.40 | $ | — | ||||||
Natural gas contracts (Henry Hub) | ||||||||||||
Collar contracts (two-way collars) | ||||||||||||
Total volume (MMBtu) | 598,000 | — | — | |||||||||
Weighted average price per MMBtu | ||||||||||||
Ceiling (short call) | $ | 3.50 | $ | — | $ | — | ||||||
Floor (long put) | $ | 3.13 | $ | — | $ | — | ||||||
Swap contracts | ||||||||||||
Total volume (MMBtu) | 155,000 | — | — | |||||||||
Weighted average price per MMBtu | $ | 2.87 | $ | — | $ | — | ||||||
Natural gas contracts (Waha basis differential) | ||||||||||||
Swap contracts | ||||||||||||
Total volume (MMBtu) | 2,116,000 | 4,758,000 | — | |||||||||
Weighted average price per MMBtu | $ | (1.18 | ) | $ | (1.12 | ) | $ | — |
Three Months Ended | |||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | |||||||||
Income (loss) available to common stockholders | $ | 47,180 | $ | 53,357 | $ | 36,108 | |||||
(Gain) loss on derivatives, net of settlements | (20,798 | ) | (15,193 | ) | 25,100 | ||||||
Change in the fair value of share-based awards | (925 | ) | (850 | ) | 879 | ||||||
Merger and integration expense | 5,943 | — | — | ||||||||
Other operating expense | (175 | ) | 770 | — | |||||||
Tax effect on adjustments above | 3,351 | 3,207 | (5,456 | ) | |||||||
Change in valuation allowance | — | — | (8,323 | ) | |||||||
Loss on redemption of preferred stock | 8,304 | — | — | ||||||||
Adjusted Income (i) | $ | 42,880 | $ | 41,291 | $ | 48,308 | |||||
Adjusted Income per fully diluted common share (i) | $ | 0.19 | $ | 0.18 | $ | 0.21 |
Three Months Ended | |||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | |||||||||
Net income (loss) | $ | 55,834 | $ | 55,180 | $ | 37,931 | |||||
(Gain) loss on derivatives, net of settlements | (20,798 | ) | (15,193 | ) | 25,100 | ||||||
Non-cash stock-based compensation expense | 644 | 904 | 2,587 | ||||||||
Merger and integration expense | 5,943 | — | — | ||||||||
Other operating expense | (161 | ) | 935 | 1,435 | |||||||
Income tax (benefit) expense | 17,902 | 16,691 | 1,487 | ||||||||
Interest expense | 739 | 741 | 711 | ||||||||
Depreciation, depletion and amortization | 57,107 | 64,374 | 48,977 | ||||||||
Accretion expense | 128 | 216 | 202 | ||||||||
Adjusted EBITDA (i) | $ | 117,338 | $ | 123,848 | $ | 118,430 |
Three Months Ended | |||||||||||
September 30, 2019 | June 30, 2019 | September 30, 2018 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 55,834 | $ | 55,180 | $ | 37,931 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation, depletion and amortization | 57,107 | 64,374 | 48,977 | ||||||||
Accretion expense | 128 | 216 | 202 | ||||||||
Amortization of non-cash debt related items | 739 | 741 | 708 | ||||||||
Deferred income tax (benefit) expense | 17,902 | 16,691 | 1,487 | ||||||||
(Gain) loss on derivatives, net of settlements | (20,798 | ) | (15,193 | ) | 25,100 | ||||||
(Gain) loss on sale of other property and equipment | (13 | ) | 21 | (102 | ) | ||||||
Non-cash expense related to equity share-based awards | 1,569 | 1,754 | 1,708 | ||||||||
Change in the fair value of liability share-based awards | (925 | ) | (850 | ) | 879 | ||||||
Discretionary cash flow (i) | $ | 111,543 | $ | 122,934 | $ | 116,890 | |||||
Changes in working capital | 2,803 | 27,789 | (347 | ) | |||||||
Payments to settle asset retirement obligations | (654 | ) | (107 | ) | (507 | ) | |||||
Payments to settle vested liability share-based awards | — | (129 | ) | — | |||||||
Net cash provided by operating activities | $ | 113,692 | $ | 150,487 | $ | 116,036 |
September 30, 2019 | December 31, 2018 | |||||||
ASSETS | Unaudited | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 11,309 | $ | 16,051 | ||||
Accounts receivable | 114,120 | 131,720 | ||||||
Fair value of derivatives | 25,032 | 65,114 | ||||||
Other current assets | 14,912 | 9,740 | ||||||
Total current assets | 165,373 | 222,625 | ||||||
Oil and natural gas properties, full cost accounting method: | ||||||||
Evaluated properties | 4,830,499 | 4,585,020 | ||||||
Less accumulated depreciation, depletion, amortization and impairment | (2,458,026 | ) | (2,270,675 | ) | ||||
Evaluated oil and natural gas properties, net | 2,372,473 | 2,314,345 | ||||||
Unevaluated properties | 1,405,993 | 1,404,513 | ||||||
Total oil and natural gas properties, net | 3,778,466 | 3,718,858 | ||||||
Operating lease right-of-use assets | 24,447 | — | ||||||
Other property and equipment, net | 24,770 | 21,901 | ||||||
Restricted investments | 3,490 | 3,424 | ||||||
Deferred financing costs | 5,081 | 6,087 | ||||||
Fair value of derivatives | 11,209 | — | ||||||
Other assets, net | 4,087 | 6,278 | ||||||
Total assets | $ | 4,016,923 | $ | 3,979,173 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 243,481 | $ | 261,184 | ||||
Operating lease liabilities | 19,196 | — | ||||||
Accrued interest | 25,660 | 24,665 | ||||||
Cash-settleable restricted stock unit awards | 535 | 1,390 | ||||||
Asset retirement obligations | 1,250 | 3,887 | ||||||
Fair value of derivatives | 8,941 | 10,480 | ||||||
Other current liabilities | 1,948 | 13,310 | ||||||
Total current liabilities | 301,011 | 314,916 | ||||||
Senior secured revolving credit facility | 200,000 | 200,000 | ||||||
6.125% senior unsecured notes due 2024 | 596,337 | 595,788 | ||||||
6.375% senior unsecured notes due 2026 | 394,317 | 393,685 | ||||||
Operating lease liabilities | 4,995 | — | ||||||
Asset retirement obligations | 8,294 | 10,405 | ||||||
Cash-settleable restricted stock unit awards | 1,737 | 2,067 | ||||||
Deferred tax liability | 39,007 | 9,564 | ||||||
Fair value of derivatives | 2,573 | 7,440 | ||||||
Other long-term liabilities | — | 100 | ||||||
Total liabilities | 1,548,271 | 1,533,965 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, series A cumulative, $0.01 par value and $50.00 liquidation preference, 2,500,000 shares authorized; 0 and 1,458,948 shares outstanding, respectively | — | 15 | ||||||
Common stock, $0.01 par value, 300,000,000 shares authorized; 228,372,081 and 227,582,575 shares outstanding, respectively | 2,284 | 2,276 | ||||||
Capital in excess of par value | 2,421,559 | 2,477,278 | ||||||
Retained earnings (accumulated deficit) | 44,809 | (34,361 | ) | |||||
Total stockholders’ equity | 2,468,652 | 2,445,208 | ||||||
Total liabilities and stockholders’ equity | $ | 4,016,923 | $ | 3,979,173 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating revenues: | |||||||||||||||
Oil sales | $ | 148,210 | $ | 142,601 | $ | 450,036 | $ | 380,500 | |||||||
Natural gas sales | 7,168 | 18,613 | 25,441 | 45,229 | |||||||||||
Total operating revenues | 155,378 | 161,214 | 475,477 | 425,729 | |||||||||||
Operating expenses: | |||||||||||||||
Lease operating expenses | 19,668 | 18,525 | 66,511 | 44,705 | |||||||||||
Production taxes | 11,866 | 10,263 | 33,810 | 26,265 | |||||||||||
Depreciation, depletion and amortization | 56,002 | 48,257 | 178,690 | 122,407 | |||||||||||
General and administrative | 9,388 | 9,721 | 31,705 | 26,779 | |||||||||||
Merger and integration expense | 5,943 | — | 5,943 | — | |||||||||||
Settled share-based awards | — | — | 3,024 | — | |||||||||||
Accretion expense | 128 | 202 | 585 | 626 | |||||||||||
Other operating expense | (161 | ) | 1,435 | 931 | 3,750 | ||||||||||
Total operating expenses | 102,834 | 88,403 | 321,199 | 224,532 | |||||||||||
Income from operations | 52,544 | 72,811 | 154,278 | 201,197 | |||||||||||
Other (income) expenses: | |||||||||||||||
Interest expense, net of capitalized amounts | 739 | 711 | 2,218 | 1,765 | |||||||||||
(Gain) loss on derivative contracts | (21,809 | ) | 34,339 | 31,415 | 55,374 | ||||||||||
Other income | (122 | ) | (1,657 | ) | (270 | ) | (2,571 | ) | |||||||
Total other (income) expense | (21,192 | ) | 33,393 | 33,363 | 54,568 | ||||||||||
Income before income taxes | 73,736 | 39,418 | 120,915 | 146,629 | |||||||||||
Income tax expense | 17,902 | 1,487 | 29,444 | 2,463 | |||||||||||
Net income | 55,834 | 37,931 | 91,471 | 144,166 | |||||||||||
Preferred stock dividends | (350 | ) | (1,823 | ) | (3,997 | ) | (5,471 | ) | |||||||
Loss on redemption of preferred stock | (8,304 | ) | — | (8,304 | ) | — | |||||||||
Income available to common stockholders | $ | 47,180 | $ | 36,108 | $ | 79,170 | $ | 138,695 | |||||||
Income per common share: | |||||||||||||||
Basic | $ | 0.21 | $ | 0.16 | $ | 0.35 | $ | 0.65 | |||||||
Diluted | $ | 0.21 | $ | 0.16 | $ | 0.35 | $ | 0.65 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 228,322 | 227,564 | 228,054 | 213,409 | |||||||||||
Diluted | 228,469 | 228,140 | 228,557 | 214,079 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 55,834 | $ | 37,931 | $ | 91,471 | $ | 144,166 | |||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||
Depreciation, depletion and amortization | 57,107 | 48,977 | 182,153 | 124,430 | |||||||||||
Accretion expense | 128 | 202 | 585 | 626 | |||||||||||
Amortization of non-cash debt related items | 739 | 708 | 2,218 | 1,749 | |||||||||||
Deferred income tax expense | 17,902 | 1,487 | 29,444 | 2,463 | |||||||||||
Loss on derivatives, net of settlements | (20,798 | ) | 25,100 | 30,979 | 29,696 | ||||||||||
(Gain) loss on sale of other property and equipment | (13 | ) | (102 | ) | 36 | (80 | ) | ||||||||
Non-cash expense related to equity share-based awards | 1,569 | 1,708 | 7,868 | 4,466 | |||||||||||
Change in the fair value of liability share-based awards | (925 | ) | 879 | 106 | 1,428 | ||||||||||
Payments to settle asset retirement obligations | (654 | ) | (507 | ) | (1,425 | ) | (1,080 | ) | |||||||
Payments for cash-settled restricted stock unit awards | — | — | (1,425 | ) | (4,990 | ) | |||||||||
Changes in current assets and liabilities: | |||||||||||||||
Accounts receivable | (21,081 | ) | (56,764 | ) | 17,600 | (54,384 | ) | ||||||||
Other current assets | 929 | 3,885 | (5,172 | ) | (1,665 | ) | |||||||||
Current liabilities | 23,216 | 47,741 | (13,038 | ) | 64,801 | ||||||||||
Other | (261 | ) | 4,791 | (2,662 | ) | 4,389 | |||||||||
Net cash provided by operating activities | 113,692 | 116,036 | 338,738 | 316,015 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | (143,995 | ) | (156,982 | ) | (503,425 | ) | (455,352 | ) | |||||||
Acquisitions | (1,418 | ) | (550,592 | ) | (40,788 | ) | (595,984 | ) | |||||||
Acquisition deposit | — | 27,600 | — | — | |||||||||||
Proceeds from sale of assets | 5,656 | 5,249 | 279,952 | 8,326 | |||||||||||
Net cash provided by (used in) investing activities | (139,757 | ) | (674,725 | ) | (264,261 | ) | (1,043,010 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Borrowings on senior secured revolving credit facility | 221,000 | 105,000 | 581,000 | 270,000 | |||||||||||
Payments on senior secured revolving credit facility | (126,000 | ) | (40,000 | ) | (581,000 | ) | (230,000 | ) | |||||||
Issuance of 6.375% senior unsecured notes due 2026 | — | — | — | 400,000 | |||||||||||
Issuance of common stock | — | 7 | — | 288,364 | |||||||||||
Payment of preferred stock dividends | (350 | ) | (1,823 | ) | (3,997 | ) | (5,471 | ) | |||||||
Payment of deferred financing costs | — | (1,296 | ) | (31 | ) | (9,960 | ) | ||||||||
Tax withholdings related to restricted stock units | (316 | ) | (216 | ) | (2,174 | ) | (1,804 | ) | |||||||
Redemption of preferred stock | (73,012 | ) | — | (73,017 | ) | — | |||||||||
Net cash provided by (used in) financing activities | 21,322 | 61,672 | (79,219 | ) | 711,129 | ||||||||||
Net change in cash and cash equivalents | (4,743 | ) | (497,017 | ) | (4,742 | ) | (15,866 | ) | |||||||
Balance, beginning of period | 16,052 | 509,146 | 16,051 | 27,995 | |||||||||||
Balance, end of period | $ | 11,309 | $ | 12,129 | $ | 11,309 | $ | 12,129 |
• | Callon believes that the non-GAAP measure of discretionary cash flow is a comparable metric against other companies in the industry and is a widely accepted financial indicator of an oil and natural gas company’s ability to generate cash for the use of internally funding their capital development program and to service or incur debt. Discretionary cash flow is defined by Callon as net cash provided by operating activities before changes in working capital and payments to settle asset retirement obligations and vested liability share-based awards. Callon has included this information because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements, which the Company may not control and the cash flow effect may not be reflected the period in which the operating activities occurred. Discretionary cash flow is not a measure of a company’s financial performance under GAAP and should not be considered as an alternative to net cash provided by operating activities (as defined under GAAP), or as a measure of liquidity, or as an alternative to net income. |
• | Adjusted general and administrative expense (“Adjusted G&A”) is a supplemental non-GAAP financial measure that excludes certain non-recurring expenses and non-cash valuation adjustments related to incentive compensation plans, as well as non-cash corporate depreciation and amortization expense. Callon believes that the non-GAAP measure of Adjusted G&A is useful to investors because it provides readers with a meaningful measure of our recurring G&A expense and provides for greater comparability period-over-period. The table contained within this release details all adjustments to G&A on a GAAP basis to arrive at Adjusted G&A. |
• | Callon believes that the non-GAAP measure of Adjusted Income available to common shareholders (“Adjusted Income”) and Adjusted Income per fully diluted common share are useful to investors because they provide readers with a meaningful measure of our profitability before recording certain items whose timing or amount cannot be reasonably determined. These measures exclude the net of tax effects of certain non-recurring items and non-cash valuation adjustments, which are detailed in the reconciliation provided. |
• | Callon calculates adjusted earnings before interest, income taxes, depreciation, depletion and amortization (“Adjusted EBITDA”) as net income (loss) before interest expense, income taxes, depreciation, depletion and amortization, asset retirement obligation accretion expense, (gains) losses on derivative instruments excluding net settled derivative instruments, impairment of oil and natural gas properties, non-cash equity based compensation, and other operating expenses. Adjusted EBITDA is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net income (loss), operating income (loss), cash flow provided by operating activities or other income or cash flow data prepared in accordance with GAAP. However, the Company believes that Adjusted EBITDA provides additional information with respect to our performance or ability to meet our future debt service, capital expenditures and working capital requirements. Because Adjusted EBITDA excludes some, but not all, items that affect net income (loss) and may vary among companies, the Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. |
• | Callon believes that the non-GAAP measure of Adjusted Total Revenue is useful to investors because it provides readers with a revenue value more comparable to other companies who engage in price risk management activities through the use of commodity derivative instruments and reflects the results of derivative settlements with expected cash flow impacts within total revenues. |
Date/Time: | Tuesday, November 5, 2019, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) |
Webcast: | Select “IR Calendar” under the “Investors” section of the website: www.callon.com. |
Presentation Slides: | Select “Presentations” under the “Investors” section of the website: www.callon.com. |
Toll Free: | 1-888-317-6003 |
Canada Toll Free: | 1-866-284-3684 |
International: | 1-412-317-6061 |
Access code: | 1044236 |