Attached files
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| 8-K - ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS - ROCKIES REGION 2007 LP | rr078kpiceanceclose.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 Rockies Region 2007 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 9, 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 loss on these transactions is reflected as an adjustment to partners' equity. |
ROCKIES REGION 2007 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 | $ | 1,667,340 | $ | — | $ | 1,667,340 | $ | 1,478,809 | $ | — | $ | 1,478,809 | |||||||||||
Commodity price risk management gain, net | (487,209 | ) | — | (487,209 | ) | 1,521,330 | — | 1,521,330 | |||||||||||||||
Total revenues | 1,180,131 | — | 1,180,131 | 3,000,139 | — | 3,000,139 | |||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Natural gas, NGLs and crude oil production costs | 308,500 | — | 308,500 | 362,858 | — | 362,858 | |||||||||||||||||
Direct costs - general and administrative | 44,649 | — | 44,649 | 38,784 | — | 38,784 | |||||||||||||||||
Depreciation, depletion and amortization | 901,912 | — | 901,912 | 887,836 | — | 887,836 | |||||||||||||||||
Accretion of asset retirement obligations | 16,573 | — | 16,573 | 15,336 | — | 15,336 | |||||||||||||||||
Total operating costs and expenses | 1,271,634 | — | 1,271,634 | 1,304,814 | — | 1,304,814 | |||||||||||||||||
Net income (loss) from continuing operations | $ | (91,503 | ) | $ | — | $ | (91,503 | ) | $ | 1,695,325 | $ | — | $ | 1,695,325 | |||||||||
Net income (loss) allocated to partners | $ | (91,503 | ) | $ | — | $ | (91,503 | ) | $ | 1,695,325 | $ | — | $ | 1,695,325 | |||||||||
Less: Managing General Partner interest in net income (loss) | (33,856 | ) | — | (33,856 | ) | 627,270 | — | 627,270 | |||||||||||||||
Net income (loss) allocated to Investor Partners | $ | (57,647 | ) | $ | — | $ | (57,647 | ) | $ | 1,068,055 | $ | — | $ | 1,068,055 | |||||||||
Net income (loss) per Investor Partner unit | $ | (13 | ) | $ | (13 | ) | $ | 239 | $ | 239 | |||||||||||||
Investor Partner units outstanding | 4,470.00 | 4,470.00 | 4,470.00 | 4,470.00 | |||||||||||||||||||
ROCKIES REGION 2007 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 | $ | 8,261,258 | $ | (2,356,542 | ) | $ | 5,904,716 | $ | 10,560,194 | $ | (4,543,532 | ) | $ | 6,016,662 | |||||||||
Commodity price risk management gain, net | 1,078,580 | — | 1,078,580 | 4,064,746 | — | 4,064,746 | |||||||||||||||||
Total revenues | 9,339,838 | (2,356,542 | ) | 6,983,296 | 14,624,940 | (4,543,532 | ) | 10,081,408 | |||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Natural gas, NGLs and crude oil production costs | 2,809,758 | (1,505,082 | ) | 1,304,676 | 4,368,553 | (2,894,843 | ) | 1,473,710 | |||||||||||||||
Direct costs - general and administrative | 200,972 | — | 200,972 | 213,327 | — | 213,327 | |||||||||||||||||
Depreciation, depletion and amortization | 5,439,026 | (1,972,505 | ) | 3,466,521 | 5,359,996 | (1,973,169 | ) | 3,386,827 | |||||||||||||||
Accretion of asset retirement obligations | 78,907 | (15,742 | ) | 63,165 | 52,555 | (14,720 | ) | 37,835 | |||||||||||||||
Loss on impairment of natural gas and crude oil properties | 2,191,002 | (2,191,002 | ) | — | — | — | — | ||||||||||||||||
Total operating costs and expenses | 10,719,665 | (5,684,331 | ) | 5,035,334 | 9,994,431 | (4,882,732 | ) | 5,111,699 | |||||||||||||||
Income (loss) from continuing operations | $ | (1,379,827 | ) | $ | 3,327,789 | $ | 1,947,962 | $ | 4,630,509 | $ | 339,200 | $ | 4,969,709 | ||||||||||
Interest income | — | — | — | 889 | — | 889 | |||||||||||||||||
Net income (loss) from continuing operations | $ | (1,379,827 | ) | $ | 3,327,789 | $ | 1,947,962 | $ | 4,631,398 | $ | 339,200 | $ | 4,970,598 | ||||||||||
Net income (loss) allocated to partners | $ | (1,379,827 | ) | $ | 3,327,789 | $ | 1,947,962 | $ | 4,631,398 | $ | 339,200 | $ | 4,970,598 | ||||||||||
Less: Managing General Partner interest in net income (loss) | (510,536 | ) | 1,231,282 | 720,746 | 1,713,617 | 125,504 | 1,839,121 | ||||||||||||||||
Net income (loss) allocated to Investor Partners | $ | (869,291 | ) | $ | 2,096,507 | $ | 1,227,216 | $ | 2,917,781 | $ | 213,696 | $ | 3,131,477 | ||||||||||
Net income (loss) per Investor Partner unit | $ | (194 | ) | $ | 275 | $ | 653 | $ | 701 | ||||||||||||||
Investor Partner units outstanding | 4,470.00 | 4,470.00 | 4,470.00 | 4,470.00 | |||||||||||||||||||
ROCKIES REGION 2007 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 | $ | 570,376 | $ | 13,831,901 | $ | 14,402,277 | |||||
Other current assets | 4,437,264 | (2,227,076 | ) | 2,210,188 | |||||||
Total current assets | 5,007,640 | 11,604,825 | 16,612,465 | ||||||||
Properties and equipment, net | 26,158,882 | — | 26,158,882 | ||||||||
Assets held for sale | 13,516,857 | (13,516,857 | ) | — | |||||||
Other assets | 58,699 | — | 58,699 | ||||||||
Total Assets | $ | 44,742,078 | $ | (1,912,032 | ) | $ | 42,830,046 | ||||
Liabilities and Shareholders' Equity | |||||||||||
Liabilities | |||||||||||
Current liabilities | $ | 1,556,532 | $ | (1,213,244 | ) | $ | 343,288 | ||||
Asset retirement obligations | 884,118 | — | 884,118 | ||||||||
Liabilities held for sale | 246,651 | (246,651 | ) | — | |||||||
Total liabilities | 2,687,301 | (1,459,895 | ) | 1,227,406 | |||||||
Commitments and contingent liabilities | |||||||||||
Partners' equity: | |||||||||||
Managing General Partner | 10,366,319 | (167,291 | ) | 10,199,028 | |||||||
Limited Partners - 4,470 units issued and outstanding | 31,688,458 | (284,846 | ) | 31,403,612 | |||||||
Total Partners' equity | 42,054,777 | (452,137 | ) | 41,602,640 | |||||||
Total Liabilities and Equity | $ | 44,742,078 | $ | (1,912,032 | ) | $ | 42,830,046 | ||||