Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ENDEAVOUR INTERNATIONAL CORP | d623922d8k.htm |
| EX-99.1 - EX-99.1 - ENDEAVOUR INTERNATIONAL CORP | d623922dex991.htm |
 Third
Quarter 2013 Earnings Review
November 6, 2013
Exhibit 99.2 |
 2
This presentation contains certain forward-looking statements regarding
various oil and gas discoveries, oil and gas exploration, development and
production activities, anticipated and potential production and flow rates;
anticipated revenues; the economic potential of properties and estimated exploration costs.
Accuracy of the projections depends on assumptions about events that change over
time and is thus susceptible to periodic change based on actual experience
and new developments. Endeavour cautions readers that it assumes no
obligation to update or publicly release any revisions to the projections in this
presentation and, except to the extent required by applicable law, does not intend
to update or otherwise revise the projections. Important factors that might
cause future results to differ from these projections include:
variations
in
the
market
prices
of
oil
and
natural
gas;
drilling
results;
access
to
equipment
and
oilfield services; unanticipated fluctuations in flow rates of producing wells
related to mechanical, reservoir or facilities performance; oil and natural
gas reserves expectations; the ability to satisfy future cash
obligations
and
environmental
costs;
and
general
exploration
and
development
risks
and
hazards.
The Securities and Exchange Commission permits oil and gas companies in their
filings with the SEC to disclose
only
proved
reserves
that
a
company
has
demonstrated
by
actual
production
or
conclusive
formation tests to be economically and legally producible under existing economic
and operating conditions.
SEC
guidelines
prohibit
the
use
in
filings
of
terms
such
as
“probable,”
“possible,”
P2
or
P3
and
“non-proved”
reserves,
reserves
“potential”
or
“upside”
or
other
descriptions
of
volumes
of
reserves
potentially recoverable through additional drilling or recovery techniques.
These estimates are by their nature more speculative than estimates of
proved reserves and accordingly are subject to greater risk of being
actually realized by the company. Certain statements should be regarded as “forward-looking”
statements within the meaning of the securities laws. These statements speak only
as of the date made. Such statements are subject to assumptions, risk and
uncertainty. Actual results or events may vary materially. The
estimates of recoverable resources per well and completed well costs included herein are
based upon other typical results in these shale plays and may not be indicative of
actual results. |
 3
2013
Third
Quarter
–
Operational/Financial
The West Rochelle well (W1) achieved first production in October
The East Rochelle well (E2) has been drilled to total depth and is completed. It
is expected on-line in Q4 2013
Physical Production and Sales Volumes
•
Physical production for Q3 averaged 7,980 boepd compared to 9,498 boepd during
Q2 •
Q3 sales volumes averaged 4,725 barrels of oil equivalent per day
(“boepd”) •
Volumes for the quarter were impacted by the liftings schedule at the Alba field
and the annual summer maintenance period
In
the
Pennsylvania
Marcellus,
Endeavour
entered
into
a
purchase
and
sales
agreement covering 50% of its upstream and midstream assets
In August, the Company completed an expansion to the Monetary Production
Payment (MPP)
In September, the Company received a payment of $22.5 million under a
Forward Sale agreement for approximately 200,000 barrels of oil
•
The total MPP currently outstanding is $146 million, net of repayments
Results |
 4
Sales Volumes (BOE per day)
2013
Q3 Sales = 4,725
Physical production volume for the third quarter averaged 7,980 boepd vs. 9,498
boepd for Q2 Third quarter realized prices
•
Oil and condensate price = $106.82 per barrel
•
Gas price = $3.06 per Mcf
2012
Q3 Sales = 11,006
US Gas US Oil UK Oil
UK Gas
75%
25%
80%
20% |
  5
Summary Financial Results
Revenues increased year-over-year due to the increased working interest at
Alba and three wells on production at the Bacchus development
In addition to the booked Oil and Gas Revenues, the Company recorded $18.2 million
in deferred revenues from the production at the Alba field during the
quarter Measure ($ in millions, except per share data)
2013
2012
2013
2012
Oil and Gas Revenues
36.9
$
83.3
$
220.7
$
121.4
$
Operating Expenses
16.4
$
24.0
$
72.0
$
34.6
$
Adjusted cash flow from Operations
20.5
$
59.3
$
148.7
$
86.8
$
Third Quarter Ending
September 30,
Nine Months Ending
September 30, |
   6
Adjusted EBITDA
Income tax expense is primarily PRT related to the Alba field
Letter of Credit fees increased year-over-year due to the reimbursement
agreement issued upon the acquisition of the additional working interest in
Alba EBITDA increased year-over-year, however the increases were
offset by higher interest expense, Letter of Credit fees, DD&A and
taxes Measure ($ in millions, except per share data)
2013
2012
2013
2012
Net Income (loss)
(39.9)
$
(33.7)
$
(67.8)
$
(119.8)
$
Unrealized (gain) loss on derivatives
(0.9)
1.2
(1.2)
2.2
Net Interest Expense
26.5
18.0
72.2
62.8
Letter of Credit Fees
7.3
9.4
25.8
12.4
Loss on early extinguishment of debt
-
-
-
21.7
Depreciation, depletion and amortization
18.6
23.8
93.5
42.3
Impairment of U.S. oil and gas properties
6.0
11.4
9.6
47.1
Income tax expense (benefit)
(14.3)
21.5
(2.1)
(3.4)
Adjusted EBITDA
3.3
$
51.6
$
130.0
$
65.3
$
Third Quarter Ending
September 30,
Nine Months Ending
September 30, |
  7
Adjusted Net Income (Loss)
While EBITDA was significantly higher year-over-year, these increases were
offset by an increases in interest expense, Letter of Credit Fees, DD&A
and PRT taxes Measure ($ in millions, except per share data)
2013
2012
2013
2012
Net Income (loss)
(39.9)
$
(33.7)
$
(67.8)
$
(119.8)
$
Impairment of U.S. oil and gas properties
6.0
11.4
9.6
47.1
Unrealized (gain) loss on derivatives (net of tax)
(0.9)
0.3
(1.2)
0.1
Loss on early extinguishment of debt (next of tax)
-
-
-
17.8
Deferred Tax expense related to U.K. tax rate change
-
8.4
-
8.4
Net Income (loss) as Adjusted
(34.8)
$
(13.6)
$
(59.4)
$
(46.4)
$
Weighted-average basic
shares
outstanding (in millions)
47.1
46.6
47.1
41.2
Adjusted earning (loss) per basic share
(0.74)
$
(0.29)
$
(1.26)
$
(1.13)
$
Third Quarter Ending
September 30,
Nine Months Ending
September 30, |
 8
Capex Update
Full year 2013 Direct Capital Expenditures continue to be in-line with
previous guidance and
are
expected
to
be
in
the
$180
million
-
$210
million
range
The 2012 Total Capital Expenditures includes the acquisition cost for the
additional 23.43% working interest in the Alba field
Measure ($ in millions)
2013
2012
2013
2012
Direct Oil & Gas Capex
U.K.
27.0
$
43.1
$
123.4
$
127.0
$
U.S.
2.2
1.7
4.8
13.9
Total Direct Oil & Gas Capex
29.2
44.8
128.2
140.9
Acquisitions
1.1
0.3
2.6
191.9
30.3
45.1
130.8
332.8
Capitalized Interest
7.5
8.3
21.2
20.1
Capitalized G&A
3.1
4.9
10.0
14.7
Asset Retirement Obligation and Other Capex
1.9
1.0
(1.8)
3.4
Total Capital Expenditures
42.8
$
59.3
$
160.2
$
371.0
$
Third Quarter Ending
September 30,
Nine Months Ending
September 30, |
 U.K.
Hedged Oil Position 9
For fourth quarter and first quarter of 2014, the Company has over 4,000 barrels
of daily production hedged
The current hedging program involves embedding collars within existing production
marketing contracts and forward sales agreements
$0
$20
$40
$60
$80
$100
$120
-
1,000
2,000
3,000
4,000
5,000
6,000
3Q2013
4Q2013
1Q2014
2Q2014
Hedged Production
Ave Ceiling
Ave Floor |
 10
Debt Maturity Schedule
Convertible Notes due 2016 ($18.51 per share conversion price)
Convertible Bonds due 2016 ($16.52 per share conversion price)
Senior Notes due 2018
Revolving Credit Facility due 2014
$115
$135
$554
$76
$0
$100
$200
$300
$400
$500
2013
2014
2015
2016
2017
2018 |
 LSE:ENDV
NYSE:END
www.endeavourcorp.com
Darcey Matthews
Director of Investor Relations
(713) 307-8711
darcey.matthews@endeavourcorp.com
INVESTOR CONTACTS: |