PDC 2002 C LTD PARTNERSHIP - FORM 8-K - EX-99.1 - PRO FORMA FINANCIAL INFORMATION - June 24, 2013

Attached files

file filename
8-K - ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS - PDC 2002 C LTD PARTNERSHIPpdc2002-c8kpiceanceclose.htm


Exhibit 99.1

PRO FORMA FINANCIAL INFORMATION


The following unaudited pro forma condensed financial statements are based on the historical consolidated financial statements of PDC 2002-C Limited Partnership (this “Partnership”) and have been adjusted to give effect to the divestiture of its Piceance Basin oil and gas properties (the “Divestiture”). The unaudited pro forma condensed balance sheet as of March 31, 2013 gives effect to the Divestiture as if it had occurred on March 31, 2013. The unaudited pro forma condensed statements of operations for the years ended December 31, 2012 and 2011 and the three month periods ended March 31, 2013 and 2012 give effect to the Divestiture as if it had occurred on January 1, 2011. The unaudited pro forma condensed information has been prepared using estimates based on preliminary amounts and is subject to customary adjustments.

The unaudited pro forma condensed information should be read in conjunction with this Partnership's historical consolidated financial statements and accompanying notes which are included in its Annual Report on Form 10-K for the year ended December 31, 2012, as filed on March 15, 2013 with the U.S. Securities and Exchange Commission (the “SEC”), and its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2013, as filed on May 10, 2013 with the SEC.

The results of operations for the three month periods ended March 31, 2013 and 2012 included in this Partnership's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2013 give effect to the Divestiture as discontinued operations. Therefore, no pro forma adjustments have been reflected in the condensed statements of operations for the three month periods ended March 31, 2013 and 2012.

The pro forma condensed statements of operations for the years ended December 31, 2012 and 2011 include the following adjustments:

•
Natural gas, NGL and crude oil sales have been adjusted downward to reflect the reduction in revenue related to assets being divested; and

•
Natural gas, NGL and crude oil production costs, depreciation, depletion and amortization and accretion of asset retirement obligations have been adjusted downward to reflect the costs and expenses associated with the assets being divested.

The pro forma condensed balance sheet as of March 31, 2013 includes the following adjustments:

•
The sales price, net of selling fees and other preliminary adjustments, is reflected in cash and cash equivalents;

•
The adjustments to assets and liabilities held for sale, other current assets and current liabilities reflect a reduction in the value of the assets and related liabilities being divested; and

•
The net gain on these transactions is reflected as an adjustment to partners' equity.

















PDC 2002-C LIMITED PARTNERSHIP
Pro Forma Condensed Statements of Operations
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
2013
 
2012
 
As Reported
 
Pro Forma Adjustments - Divestiture
 
Pro Forma
 
As Reported
 
Pro Forma Adjustments - Divestiture
 
Pro Forma
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Natural gas, NGL and crude oil sales
$
65,257

 
$
—

 
$
65,257

 
$
87,794

 
$
—

 
$
87,794

Commodity price risk management gain, net
(18,343
)
 
—

 
(18,343
)
 
55,545

 
—

 
55,545

Total revenues
46,914

 
—

 
46,914

 
143,339

 
—

 
143,339

 
 
 
 
 
 
 
 
 
 
 
 
Operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Natural gas, NGLs and crude oil production costs
22,168

 
—

 
22,168

 
67,639

 
—

 
67,639

Direct costs - general and administrative
30,863

 
—

 
30,863

 
29,060

 
—

 
29,060

Depreciation, depletion and amortization
42,003

 
—

 
42,003

 
43,580

 
—

 
43,580

Accretion of asset retirement obligations
3,482

 
—

 
3,482

 
3,234

 
—

 
3,234

Total operating costs and expenses
98,516

 
—

 
98,516

 
143,513

 
—

 
143,513

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
(51,602
)
 
$
—

 
$
(51,602
)
 
$
(174
)
 
$
—

 
$
(174
)
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
5

 
—

 
5

 
4

 
—

 
4

 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
$
(51,597
)
 
$
—

 
$
(51,597
)
 
$
(170
)
 
$
—

 
$
(170
)
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) allocated to partners
$
(51,597
)
 
$
—

 
$
(51,597
)
 
$
(170
)
 
$
—

 
$
(170
)
Less: Managing General Partner interest in net income (loss)
(10,319
)
 
—

 
(10,319
)
 
(34
)
 
—

 
(34
)
Net income (loss) allocated to Investor Partners
$
(41,278
)
 
$
—

 
$
(41,278
)
 
$
(136
)
 
$
—

 
$
(136
)
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per Investor Partner unit
$
(87
)
 

 
$
(87
)
 
$
—

 

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
Investor Partner units outstanding
471.91

 
 
 
471.91

 
471.91

 
 
 
471.91





PDC 2002-C LIMITED PARTNERSHIP
Pro Forma Condensed Consolidated Statements of Operations
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December, 31
 
2012
 
2011
 
As Reported
 
Pro Forma Adjustments - Divestiture
 
Pro Forma
 
As Reported
 
Pro Forma Adjustments - Divestiture
 
Pro Forma
Revenues:
 
 
 
 
 
 
 
 
 
 
 
Natural gas, NGL and crude oil sales
$
343,540

 
$
(69,961
)
 
$
273,579

 
$
565,380

 
$
(126,631
)
 
$
438,749

Commodity price risk management gain, net
39,368

 
—

 
39,368

 
145,835

 
—

 
145,835

Total revenues
382,908

 
(69,961
)
 
312,947

 
711,215

 
(126,631
)
 
584,584

 
 
 
 
 
 
 
 
 
 
 
 
Operating costs and expenses:
 
 
 
 
 
 
 
 
 
 
 
Natural gas, NGLs and crude oil production costs
116,360

 
(44,350
)
 
72,010

 
297,842

 
(71,777
)
 
226,065

Direct costs - general and administrative
127,104

 
—

 
127,104

 
302,226

 
—

 
302,226

Depreciation, depletion and amortization
179,705

 
(20,768
)
 
158,937

 
258,770

 
(59,772
)
 
198,998

Accretion of asset retirement obligations
15,615

 
(2,311
)
 
13,304

 
9,839

 
(2,174
)
 
7,665

Loss on impairment of natural gas and crude oil properties
—

 
—

 
—

 
347,448

 
(347,448
)
 
—

Total operating costs and expenses
438,784

 
(67,429
)
 
371,355

 
1,216,125

 
(481,171
)
 
734,954

 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
(55,876
)
 
$
(2,532
)
 
$
(58,408
)
 
$
(504,910
)
 
$
354,540

 
$
(150,370
)
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
14

 
—

 
14

 
306

 
—

 
306

 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
$
(55,862
)
 
$
(2,532
)
 
$
(58,394
)
 
$
(504,604
)
 
$
354,540

 
$
(150,064
)
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) allocated to partners
$
(55,862
)
 
$
(2,532
)
 
$
(58,394
)
 
$
(504,604
)
 
$
354,540

 
$
(150,064
)
Less: Managing General Partner interest in net income (loss)
(11,172
)
 
(507
)
 
(11,679
)
 
(100,921
)
 
70,908

 
(30,013
)
Net income (loss) allocated to Investor Partners
$
(44,690
)
 
$
(2,025
)
 
$
(46,715
)
 
$
(403,683
)
 
$
283,632

 
$
(120,051
)
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) per Investor Partner unit
$
(95
)
 


 
$
(99
)
 
$
(855
)
 


 
$
(254
)
 
 
 
 
 
 
 
 
 
 
 
 
Investor Partner units outstanding
471.91

 
 
 
471.91

 
471.91

 
 
 
471.91






    
PDC 2002-C LIMITED PARTNERSHIP
Pro Forma Condensed Balance Sheet
(unaudited)
 
 
 
 
 
 
 
March 31, 2013
 
As Reported
 
Pro Forma Adjustments - Divestiture
 
Pro Forma
Assets
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
87,202

 
$
400,183

 
$
487,385

Other current assets
151,761

 
(58,994
)
 
92,767

Total current assets
238,963

 
341,189

 
580,152

Properties and equipment, net
1,797,048

 
—

 
1,797,048

Assets held for sale
64,785

 
(64,785
)
 
—

Other assets
50,321

 
—

 
50,321

Total Assets
$
2,151,117

 
$
276,404

 
$
2,427,521

 
 
 
 
 
 
Liabilities and Shareholders' Equity

 
 
 
 
 
Liabilities
 
 
 
 
 
Current liabilities
$
158,840

 
$
(32,418
)
 
$
126,422

Asset retirement obligations
200,981

 
—

 
200,981

Liabilities held for sale
39,869

 
(39,869
)
 
—

Total liabilities
399,690

 
(72,287
)
 
327,403

 
 
 
 
 
 
Commitments and contingent liabilities
 
 
 
 

 
 
 
 
 
 
Partners' equity:
 
 
 
 
 
Managing General Partner
364,415

 
69,738

 
434,153

Limited Partners - 471.91 units issued and outstanding
1,387,012

 
278,953

 
1,665,965

Total Partners' equity
1,751,427

 
348,691

 
2,100,118

Total Liabilities and Equity

$
2,151,117

 
$
276,404

 
$
2,427,521

 
 
 
 
 
 



PDC 2002 C LTD PARTNERSHIP Reports