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| 8-K - 8-K - CLAYTON WILLIAMS ENERGY INC /DE | cwei-063013x8k.htm |
Exhibit 99.1
CLAYTON WILLIAMS ENERGY ANNOUNCES SECOND QUARTER 2013 FINANCIAL RESULTS
Midland, Texas, July 25, 2013 (BUSINESS WIRE) - Clayton Williams Energy, Inc. (the “Company”) (NASDAQ-CWEI) today reported its financial results for the second quarter 2013.
Financial Results for the Second Quarter of 2013
Net loss attributable to Company stockholders for the second quarter of 2013 (“2Q13”) was $1 million, or $0.08 per share, as compared to net income of $32.8 million, or $2.70 per share, for the second quarter of 2012 (“2Q12”). Cash flow from operations for 2Q13 was $38.6 million as compared to $44.9 million for 2Q12. As discussed below, the 2Q13 results included a non-cash, pre-tax charge of $19.6 million to write down the carrying value of certain proved properties to their estimated fair value. The Company's adjusted net income, excluding the non-recurring charge, was $11.7 million.
For the six-months ended June 30, 2013, net loss attributable to Company stockholders was $42.2 million, or $3.47 per share, as compared to net income of $40.6 million, or $3.34 per share, for the same period in 2012. Cash flow from operations for the six-month period in 2013 was $82.9 million as compared to $97.3 million during the same period in 2012. The 2013 period included non-cash, pre-tax charges totaling $89.1 million to write down the carrying value of certain proved properties to their estimated fair value. The Company's adjusted net income, excluding the non-recurring charge, was $15.7 million.
The key factors affecting the comparability of financial results for 2Q13 versus 2Q12 were:
• | In April 2013, the Company sold 95% of its oil and gas reserves, leasehold interests and facilities located in Andrews County, Texas for $215.2 million, subject to customary closing adjustments, with $26.5 million being placed in escrow pending resolution of certain title requirements which the Company believes will be cured. As a result, reported oil and gas production, revenues and operating costs for the quarter and six months ended June 30, 2013 are not comparable to reported amounts for periods in 2012. |
• | Oil and gas sales, excluding amortized deferred revenues, decreased $5.4 million in 2Q13 versus 2Q12. Production variances accounted for a $9.5 million decrease, and price variances accounted for a $4.1 million increase. Average realized oil prices were $93.71 per barrel in 2Q13 versus $88.06 per barrel in 2Q12, and average realized gas prices were $3.89 per Mcf in 2Q13 versus $3.25 per Mcf in 2Q12. Oil and gas sales in 2Q13 also includes $2.2 million of amortized deferred revenue versus $2.5 million in 2Q12 attributable to a volumetric production payment ("VPP"). Reported production and related average realized sales prices exclude volumes associated with the VPP. |
• | Oil, gas and natural gas liquids ("NGL") production per barrel of oil equivalent ("BOE") declined 10% in 2Q13 as compared to 2Q12, with oil production decreasing 10% to 9,527 barrels per day, gas production decreasing 25% to 17,582 Mcf per day, and NGL production |
increasing 45% to 1,418 barrels per day. Oil and NGL production accounted for approximately 80% of the Company's total BOE production in 2Q13 versus 75% in 2Q12. See accompanying tables for additional information about the Company's oil and gas production.
• | After giving effect to the Andrews sale discussed above, oil and gas production per BOE increased 8% in 2Q13 as compared to 2Q12, with oil production increasing 945 barrels per day, gas production decreasing 4,341 Mcf per day and NGL increasing 836 barrels per day. |
• | Production costs decreased 19% to $26.1 million in 2Q13 from $32.3 million in 2Q12. After giving effect to the Andrews sale, production costs declined $1.1 million, or 4%, due primarily to infrastructure improvements in our Reeves County Wolfbone area. |
• | An impairment of proved properties of $19.6 million was recorded in 2Q13 primarily related to the write down of certain non-core Permian Basin properties to their estimated fair value. Impairment of a proved property group is recognized when the estimated undiscounted future net cash flows of the property group are less than its carrying value. |
• | Gain on derivatives for 2Q13 was $4.9 million ($5.4 million non-cash mark-to-market gain and $464,000 realized loss on settled contracts) versus a gain in 2Q12 of $38.7 million ($37.8 million non-cash mark-to-market gain and $845,000 realized gain on settled contracts). See accompanying tables for additional information about the Company's accounting for derivatives. |
• | General and administrative ("G&A") expenses were $2.8 million in 2Q13 versus $4.3 million in 2Q12. Most of the decrease was attributable to non-cash reversals of previously accrued compensation expense from the Company's APO reward plans in both periods. The 2013 credits to G&A expense were offset by cash payments to participants in plans associated with the Andrews County properties. |
Scheduled Conference Call
The Company will host a conference call to discuss these results and other forward-looking items today, July 25th at 1:30 p.m. CT (2:30 p.m. ET). The dial-in conference number is: 877-868-1835, passcode 18210133. The replay will be available for one week at 855-859-2056, passcode 18210133.
To access the conference call via Internet webcast, please go to the Investor Relations section of the Company's website at www.claytonwilliams.com and click on “Live Webcast.” Following the live webcast, the call will be archived for a period of 30 days on the Company's website.
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or current facts, that address activities, events, outcomes and other matters that we plan, expect, intend, assume, believe, budget, predict, forecast, project, estimate or anticipate (and other similar expressions) will, should or may occur in the future are forward-looking statements. These forward-looking statements are based on management's current belief, based on currently available information, as to the outcome and
timing of future events. The Company cautions that its future natural gas and liquids production, revenues, cash flows, liquidity, plans for future operations, expenses, outlook for oil and natural gas prices, timing of capital expenditures and other forward-looking statements are subject to all of the risks and uncertainties, many of which are beyond our control, incident to the exploration for and development, production and marketing of oil and gas.
These risks include, but are not limited to, the possibility of unsuccessful exploration and development drilling activities, our ability to replace and sustain production, commodity price volatility, domestic and worldwide economic conditions, the availability of capital on economic terms to fund our capital expenditures and acquisitions, our level of indebtedness, the impact of the current economic recession on our business operations, financial condition and ability to raise capital, declines in the value of our oil and gas properties resulting in a decrease in our borrowing base under our credit facility and impairments, the ability of financial counterparties to perform or fulfill their obligations under existing agreements, the uncertainty inherent in estimating proved oil and gas reserves and in projecting future rates of production and timing of development expenditures, drilling and other operating risks, lack of availability of goods and services, regulatory and environmental risks associated with drilling and production activities, the adverse effects of changes in applicable tax, environmental and other regulatory legislation, and other risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
Contact:
Patti Hollums Michael L. Pollard
Director of Investor Relations Chief Financial Officer
(432) 688-3419 (432) 688-3029
e-mail: cwei@claytonwilliams.com
website: www.claytonwilliams.com
TABLES AND SUPPLEMENTAL INFORMATION FOLLOW . . .
CLAYTON WILLIAMS ENERGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
REVENUES | ||||||||||||||||
Oil and gas sales | $ | 93,778 | $ | 99,448 | $ | 192,142 | $ | 206,478 | ||||||||
Midstream services | 1,331 | 284 | 2,227 | 634 | ||||||||||||
Drilling rig services | 3,535 | 4,578 | 8,852 | 6,130 | ||||||||||||
Other operating revenues | 272 | 300 | 2,562 | 437 | ||||||||||||
Total revenues | 98,916 | 104,610 | 205,783 | 213,679 | ||||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Production | 26,114 | 32,318 | 57,603 | 61,373 | ||||||||||||
Exploration: | ||||||||||||||||
Abandonments and impairments | 1,561 | 646 | 2,371 | 1,986 | ||||||||||||
Seismic and other | 777 | 723 | 3,364 | 2,735 | ||||||||||||
Midstream services | 519 | 190 | 926 | 448 | ||||||||||||
Drilling rig services | 4,397 | 4,399 | 9,465 | 6,829 | ||||||||||||
Depreciation, depletion and amortization | 35,872 | 34,593 | 74,935 | 65,825 | ||||||||||||
Impairment of property and equipment | 19,565 | 5,711 | 89,102 | 5,711 | ||||||||||||
Accretion of asset retirement obligations | 1,052 | 860 | 2,120 | 1,559 | ||||||||||||
General and administrative | 2,783 | 4,288 | 10,371 | 19,303 | ||||||||||||
Other operating expenses | 917 | 45 | 1,050 | 278 | ||||||||||||
Total costs and expenses | 93,913 | 83,773 | 251,663 | 166,047 | ||||||||||||
Operating income (loss) | 5,003 | 20,837 | (45,880 | ) | 47,632 | |||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Interest expense | (10,273 | ) | (9,268 | ) | (20,844 | ) | (18,031 | ) | ||||||||
Gain (loss) on derivatives | 4,894 | 38,666 | (1,641 | ) | 31,757 | |||||||||||
Other | (416 | ) | 398 | 1,533 | 1,298 | |||||||||||
Total other income (expense) | (5,795 | ) | 29,796 | (20,952 | ) | 15,024 | ||||||||||
Income (loss) before income taxes | (792 | ) | 50,633 | (66,832 | ) | 62,656 | ||||||||||
Income tax (expense) benefit | (237 | ) | (17,811 | ) | 24,594 | (22,055 | ) | |||||||||
NET INCOME (LOSS) | $ | (1,029 | ) | $ | 32,822 | $ | (42,238 | ) | $ | 40,601 | ||||||
Net income (loss) per common share: | ||||||||||||||||
Basic | $ | (0.08 | ) | $ | 2.70 | $ | (3.47 | ) | $ | 3.34 | ||||||
Diluted | $ | (0.08 | ) | $ | 2.70 | $ | (3.47 | ) | $ | 3.34 | ||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 12,165 | 12,164 | 12,165 | 12,164 | ||||||||||||
Diluted | 12,165 | 12,164 | 12,165 | 12,164 | ||||||||||||
CLAYTON WILLIAMS ENERGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) ASSETS | |||||||
June 30, | December 31, | ||||||
2013 | 2012 | ||||||
CURRENT ASSETS | (Unaudited) | ||||||
Cash and cash equivalents | $ | 16,197 | $ | 10,726 | |||
Accounts receivable: | |||||||
Oil and gas sales | 35,057 | 32,371 | |||||
Joint interest and other, net | 9,482 | 16,767 | |||||
Affiliates | 28,297 | 353 | |||||
Inventory | 37,408 | 41,703 | |||||
Deferred income taxes | 11,046 | 8,560 | |||||
Fair value of derivatives | 7,836 | 7,495 | |||||
Prepaids and other | 7,289 | 6,495 | |||||
152,612 | 124,470 | ||||||
PROPERTY AND EQUIPMENT | |||||||
Oil and gas properties, successful efforts method | 2,301,588 | 2,570,803 | |||||
Pipelines and other midstream facilities | 51,765 | 49,839 | |||||
Contract drilling equipment | 92,766 | 91,163 | |||||
Other | 20,440 | 20,245 | |||||
2,466,559 | 2,732,050 | ||||||
Less accumulated depreciation, depletion and amortization | (1,297,882 | ) | (1,311,692 | ) | |||
Property and equipment, net | 1,168,677 | 1,420,358 | |||||
OTHER ASSETS | |||||||
Debt issue costs, net | 8,548 | 10,259 | |||||
Fair value of derivatives | 3,164 | 4,236 | |||||
Investments and other | 16,131 | 15,261 | |||||
27,843 | 29,756 | ||||||
$ | 1,349,132 | $ | 1,574,584 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable: | |||||||
Trade | $ | 67,818 | $ | 73,026 | |||
Oil and gas sales | 33,736 | 32,146 | |||||
Affiliates | 690 | 164 | |||||
Accrued liabilities and other | 14,698 | 15,578 | |||||
116,942 | 120,914 | ||||||
NON-CURRENT LIABILITIES | |||||||
Long-term debt | 664,611 | 809,585 | |||||
Deferred income taxes | 133,724 | 155,830 | |||||
Asset retirement obligations | 50,872 | 51,477 | |||||
Deferred revenue from volumetric production payment | 33,437 | 37,184 | |||||
Accrued compensation under non-equity award plans | 12,230 | 20,058 | |||||
Other | 938 | 920 | |||||
895,812 | 1,075,054 | ||||||
STOCKHOLDERS’ EQUITY | |||||||
Preferred stock, par value $.10 per share | — | — | |||||
Common stock, par value $.10 per share | 1,216 | 1,216 | |||||
Additional paid-in capital | 152,527 | 152,527 | |||||
Retained earnings | 182,635 | 224,873 | |||||
Total stockholders' equity | 336,378 | 378,616 | |||||
$ | 1,349,132 | $ | 1,574,584 | ||||
CLAYTON WILLIAMS ENERGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net income (loss) | $ | (1,029 | ) | $ | 32,822 | $ | (42,238 | ) | $ | 40,601 | |||||
Adjustments to reconcile net income (loss) to cash provided by operating activities: | |||||||||||||||
Depreciation, depletion and amortization | 35,872 | 34,593 | 74,935 | 65,825 | |||||||||||
Impairment of property and equipment | 19,565 | 5,711 | 89,102 | 5,711 | |||||||||||
Exploration costs | 1,561 | 646 | 2,371 | 1,986 | |||||||||||
(Gain) loss on sales of assets and impairment of inventory, net | 645 | (255 | ) | 283 | (159 | ) | |||||||||
Deferred income tax expense (benefit) | 237 | 17,811 | (24,594 | ) | 22,055 | ||||||||||
Non-cash employee compensation | (8,572 | ) | (1,863 | ) | (7,101 | ) | 4,394 | ||||||||
Unrealized (gain) loss on derivatives | (5,358 | ) | (37,821 | ) | 732 | (35,328 | ) | ||||||||
Accretion of asset retirement obligations | 1,052 | 860 | 2,120 | 1,559 | |||||||||||
Amortization of debt issue costs and original issue discount | 1,204 | 531 | 1,774 | 1,039 | |||||||||||
Amortization of deferred revenue from volumetric production payment | (2,210 | ) | (2,519 | ) | (4,484 | ) | (3,383 | ) | |||||||
Changes in operating working capital: | |||||||||||||||
Accounts receivable | 2,117 | 8,019 | 3,219 | 5,257 | |||||||||||
Accounts payable | 863 | (6,055 | ) | (11,523 | ) | (12,827 | ) | ||||||||
Other | (7,355 | ) | (7,547 | ) | (1,710 | ) | 536 | ||||||||
Net cash provided by operating activities | 38,592 | 44,933 | 82,886 | 97,266 | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Additions to property and equipment | (58,645 | ) | (148,325 | ) | (133,106 | ) | (313,170 | ) | |||||||
Proceeds from volumetric production payment | 297 | — | 737 | 44,423 | |||||||||||
Proceeds from sales of assets | 194,796 | 650 | 195,277 | 651 | |||||||||||
(Increase) decrease in equipment inventory | 1,698 | 8,189 | 5,588 | (4,137 | ) | ||||||||||
Other | 881 | 54 | (911 | ) | (14 | ) | |||||||||
Net cash provided by (used in) investing activities | 139,027 | (139,432 | ) | 67,585 | (272,247 | ) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Proceeds from long-term debt | — | 75,000 | 35,000 | 170,000 | |||||||||||
Repayments of long-term debt | (180,000 | ) | — | (180,000 | ) | — | |||||||||
Net cash provided by (used in) financing activities | (180,000 | ) | 75,000 | (145,000 | ) | 170,000 | |||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (2,381 | ) | (19,499 | ) | 5,471 | (4,981 | ) | ||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||||
Beginning of period | 18,578 | 32,043 | 10,726 | 17,525 | |||||||||||
End of period | $ | 16,197 | $ | 12,544 | $ | 16,197 | $ | 12,544 | |||||||
CLAYTON WILLIAMS ENERGY, INC. COMPUTATION OF EBITDAX (Unaudited) (In thousands) | |||||||||||||||
EBITDAX is presented as a supplemental non-GAAP financial measure because of its wide acceptance by financial analysts, investors, debt holders, banks, rating agencies and other financial statement users as an indication of an entity's ability to meet its debt service obligations and to internally fund its exploration and development activities. | |||||||||||||||
The Company defines EBITDAX as net income (loss) before interest expense, income taxes, exploration costs, net (gain) loss on sales of assets and impairment of inventory, and all non-cash items in the Company's statements of operations, including depreciation, depletion and amortization, impairment of property and equipment, accretion of asset retirement obligations, amortization of deferred revenue from volumetric production payment, certain employee compensation and changes in fair value of derivatives. EBITDAX is not an alternative to net income (loss) or cash flow from operating activities, or any other measure of financial performance presented in conformity with GAAP. | |||||||||||||||
The following table reconciles net income (loss) to EBITDAX: | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net income (loss) | $ | (1,029 | ) | $ | 32,822 | $ | (42,238 | ) | $ | 40,601 | |||||
Interest expense | 10,273 | 9,268 | 20,844 | 18,031 | |||||||||||
Income tax expense (benefit) | 237 | 17,811 | (24,594 | ) | 22,055 | ||||||||||
Exploration: | |||||||||||||||
Abandonments and impairments | 1,561 | 646 | 2,371 | 1,986 | |||||||||||
Seismic and other | 777 | 723 | 3,364 | 2,735 | |||||||||||
Net (gain) loss on sales of assets and impairment of inventory | 645 | (255 | ) | 283 | (159 | ) | |||||||||
Depreciation, depletion and amortization | 35,872 | 34,593 | 74,935 | 65,825 | |||||||||||
Impairment of property and equipment | 19,565 | 5,711 | 89,102 | 5,711 | |||||||||||
Accretion of asset retirement obligations | 1,052 | 860 | 2,120 | 1,559 | |||||||||||
Amortization of deferred revenue from volumetric production payment | (2,210 | ) | (2,519 | ) | (4,484 | ) | (3,383 | ) | |||||||
Non-cash employee compensation | (8,572 | ) | (1,863 | ) | (7,101 | ) | 4,394 | ||||||||
Unrealized (gain) loss on derivatives | (5,358 | ) | (37,821 | ) | 732 | (35,328 | ) | ||||||||
EBITDAX (a) | $ | 52,813 | $ | 59,976 | $ | 115,334 | $ | 124,027 | |||||||
______ | |||||||||||||||
(a) | In April 2013, the Company sold 95% of its interests in certain properties in Andrews County, Texas. Revenue, net of direct expenses, associated with the sold properties for the three months ended June 30, 2012 were $12.4 million and the six months ended June 30, 2013 and 2012 were $8.7 million and $28.4 million, respectively. |
CLAYTON WILLIAMS ENERGY, INC. SUMMARY PRODUCTION AND PRICE DATA (Unaudited) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Oil and Gas Production Data: | |||||||||||||||
Oil (MBbls) | 867 | 967 | 1,805 | 1,896 | |||||||||||
Gas (MMcf) | 1,600 | 2,131 | 3,226 | 4,144 | |||||||||||
Natural gas liquids (MBbls) | 129 | 89 | 274 | 189 | |||||||||||
Total (MBOE) | 1,263 | 1,411 | 2,617 | 2,776 | |||||||||||
Average Realized Prices (a) (b): | |||||||||||||||
Oil ($/Bbl) | $ | 93.71 | $ | 88.06 | $ | 92.43 | $ | 94.26 | |||||||
Gas ($/Mcf) | $ | 3.89 | $ | 3.25 | $ | 3.59 | $ | 3.54 | |||||||
Natural gas liquids ($/Bbl) | $ | 31.07 | $ | 44.73 | $ | 31.97 | $ | 45.33 | |||||||
Gain (Loss) on Settled Derivative Contracts (b): | |||||||||||||||
($ in thousands, except per unit) | |||||||||||||||
Oil: | |||||||||||||||
Net realized gain (loss) | $ | (169 | ) | $ | 845 | $ | (613 | ) | $ | (3,571 | ) | ||||
Per unit produced ($/Bbl) | $ | (0.19 | ) | $ | 0.87 | $ | (0.34 | ) | $ | (1.88 | ) | ||||
Gas: | |||||||||||||||
Net realized loss | $ | (295 | ) | $ | — | $ | (296 | ) | $ | — | |||||
Per unit produced ($/Mcf) | $ | (0.18 | ) | $ | — | $ | (0.09 | ) | $ | — | |||||
Average Daily Production: | |||||||||||||||
Oil (Bbls): | |||||||||||||||
Permian Basin Area: | |||||||||||||||
Delaware Basin | 1,989 | 1,601 | 1,862 | 1,352 | |||||||||||
Other (c) | 3,406 | 5,474 | 4,240 | 5,587 | |||||||||||
Austin Chalk/Eagle Ford Shale | 3,865 | 3,152 | 3,616 | 3,074 | |||||||||||
Other | 267 | 399 | 254 | 405 | |||||||||||
Total | 9,527 | 10,626 | 9,972 | 10,418 | |||||||||||
Natural Gas (Mcf): | |||||||||||||||
Permian Basin Area: | |||||||||||||||
Delaware Basin | 1,921 | 236 | 1,524 | 443 | |||||||||||
Other (c) (d) | 7,474 | 13,924 | 8,565 | 13,079 | |||||||||||
Austin Chalk/Eagle Ford Shale | 2,196 | 2,058 | 2,147 | 2,101 | |||||||||||
Other | 5,991 | 7,200 | 5,587 | 7,146 | |||||||||||
Total | 17,582 | 23,418 | 17,823 | 22,769 | |||||||||||
Natural Gas Liquids (Bbls): | |||||||||||||||
Permian Basin Area: | |||||||||||||||
Delaware Basin | 283 | 93 | 274 | 46 | |||||||||||
Other (c) (d) | 882 | 604 | 999 | 675 | |||||||||||
Austin Chalk/Eagle Ford Shale | 226 | 222 | 223 | 245 | |||||||||||
Other | 27 | 59 | 18 | 72 | |||||||||||
Total | 1,418 | 978 | 1,514 | 1,038 | |||||||||||
(Continued) | |||||||||||||||
CLAYTON WILLIAMS ENERGY, INC. SUMMARY PRODUCTION AND PRICE DATA (Unaudited) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Oil and Gas Costs ($/BOE Produced): | |||||||||||||||
Production costs | $ | 20.68 | $ | 22.90 | $ | 22.01 | $ | 22.11 | |||||||
Production costs (excluding production taxes) | $ | 16.90 | $ | 19.33 | $ | 18.34 | $ | 18.33 | |||||||
Oil and gas depletion | $ | 25.49 | $ | 23.27 | $ | 25.84 | $ | 22.53 | |||||||
General and Administrative Expenses (in thousands): | |||||||||||||||
Excluding non-cash employee compensation | $ | 11,355 | $ | 6,151 | $ | 17,472 | $ | 14,909 | |||||||
Non-cash employee compensation (e) | (8,572 | ) | (1,863 | ) | (7,101 | ) | 4,394 | ||||||||
Total | $ | 2,783 | $ | 4,288 | $ | 10,371 | $ | 19,303 | |||||||
______ | |||||||||||||||
(a) | Oil and gas sales includes $2.2 million for the three months ended June 30, 2013, $2.5 million for the three months ended June 30, 2012, $4.5 million for the six months ended June 30, 2013, and $3.4 million for the six months ended June 30, 2012 of amortized deferred revenue attributable to the volumetric production payment (“VPP”) effective March 1, 2012. The calculation of average realized sales prices excludes production of 29,616 barrels of oil and 7,506 Mcf of gas for the three months ended June 30, 2013, 33,590 barrels of oil and 12,476 Mcf of gas for the three months ended June 30, 2012, 60,104 barrels of oil and 15,039 Mcf of gas for the six months ended June 30, 2013 and 44,967 barrels of oil and 17,175 Mcf of gas for the six months ended June 30, 2012 associated with the VPP. |
(b) | Hedging gains/losses are only included in the determination of the Company's average realized prices if the underlying derivative contracts are designated as cash flow hedges under applicable accounting standards. The Company did not designate any of its 2013 or 2012 derivative contracts as cash flow hedges. This means that the Company's derivatives for 2013 and 2012 have been marked-to-market through its statement of operations as other income/expense instead of through accumulated other comprehensive income on the Company's balance sheet. This also means that all realized gains/losses on these derivatives are reported in other income/expense instead of as a component of oil and gas sales. |
(c) | In April 2013, the Company sold 95% of its interest in certain properties in Andrews County, Texas. Following is a recap of the average daily production related to sold interest for periods prior to April 1, 2013. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
2012 | 2013 | 2012 | |||||||
Average Daily Production: | |||||||||
Oil (Bbls) | 2,041 | 814 | 2,110 | ||||||
Natural gas (Mcf) | 1,491 | 902 | 1,519 | ||||||
NGL (Bbls) | 395 | 179 | 393 | ||||||
Total (Boe) | 2,685 | 1,143 | 2,756 | ||||||
(d) | Prior to 2013, certain purchasers of the Company's casinghead gas accounted for the value of extracted NGL in the price paid for gas production at the wellhead. During the quarter ended March 31, 2013, the Company began separating these products, when possible. Had these incremental NGL volumes been reported separately during the three months and six months ended June 30, 2012, the Company estimates that its reported natural gas volumes would have decreased by 2,200 Mcf/day and that its reported NGL volumes would have increased by 600 BOE/day during each of the 2012 periods. |
(e) | Non-cash employee compensation relates to the Company’s non-equity award plans. |
CLAYTON WILLIAMS ENERGY, INC. SUMMARY OF OPEN COMMODITY DERIVATIVES (Unaudited) | |||||||||||||
The following summarizes information concerning the Company’s net positions in open commodity derivatives applicable to periods subsequent to June 30, 2013. | |||||||||||||
Oil | Gas | ||||||||||||
Swaps: | Bbls | Price | MMBtu (a) | Price | |||||||||
Production Period: | |||||||||||||
3rd Quarter 2013 | 300,000 | $ | 104.60 | 360,000 | $ | 3.34 | |||||||
4th Quarter 2013 | 300,000 | $ | 104.60 | 330,000 | $ | 3.34 | |||||||
2014 | 600,000 | $ | 99.30 | — | $ | — | |||||||
1,200,000 | 690,000 | ||||||||||||
_____ | |||||||||||||
(a) | One MMBtu equals one Mcf at a Btu factor of 1,000. |