Attached files
| file | filename |
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| 8-K - 8-K - Breitburn Energy Partners LP | a8kq12015earningsrelease8-k.htm |
Exhibit 99.1
Breitburn Energy Partners Reports First Quarter 2015 Results
LOS ANGELES, May 5, 2015 - Breitburn Energy Partners LP (NASDAQ:BBEP) today announced financial and operating results for the first quarter 2015.
Key Highlights
• | Increased total production to 5.1 MMBoe, a 57% increase from the first quarter of 2014 and a 21% increase from the fourth quarter of 2014. |
• | Increased Adjusted EBITDA, a non-GAAP financial measure, to $148.6 million (including costs of $4.1 million for restructuring), a 26% increase from the first quarter of 2014 and a 17% increase from the fourth quarter of 2014. |
• | Reduced lease operating expenses by 9% to $19.81 per Boe in the first quarter of 2015 from $21.77 per Boe in the fourth quarter of 2014. |
• | Announced a $1 billion strategic investment led by EIG Global Energy Partners, which was completed on April 8, 2015. Net proceeds were used to reduce borrowings under Breitburn's bank credit facility. |
• | Amended bank credit facility to reset the borrowing base to $1.8 billion through April 2016, subject to limited exceptions. |
• | Reported distributable cash flow of $60.7 million, or $0.282 per common unit, and distribution coverage ratio of 2.26x based on current monthly distribution of $0.04166 per common unit, or $0.50 per common unit on an annualized basis. |
Management Commentary
Halbert S. Washburn, Breitburn’s Chief Executive Officer, said: “We had a very solid first quarter, with Adjusted EBITDA, total production, and costs in line with our targets. The integration of QR Energy is going smoothly and our teams are doing a great job continuing to drive down both lease operating expenses and general and administrative costs. Our successful acquisitions strategy has given us an expanded and more diversified portfolio of development projects that deliver attractive returns even in the current commodity price environment. As a result, we expect to spend approximately half of our significantly reduced $200 million capital program on former QR Energy assets, and more than 90% of capital spending will be on assets we have acquired in the last three years. We also raised a substantial amount of capital during the quarter and used the proceeds to significantly reduce borrowings under our credit facility and greatly enhanced our liquidity position. Finally, we are on track to generate approximately $100 million of excess cash this year, which we plan to use to further reduce borrowings, and we currently have one of the strongest distribution coverage ratios in our peer group.”
First Quarter 2015 Operating and Financial Results Compared to Fourth Quarter 2014
• | Total production was 5,051 MBoe in the first quarter of 2015 compared to 4,170 MBoe in the fourth quarter of 2014. Average daily production was 56.1 MBoe/day in the first quarter of 2015 compared to 45.3 MBoe/day in the fourth quarter of 2014. |
• | Oil production increased to 2,890 MBbl compared to 2,327 MBbl in the fourth quarter of 2014. |
• | NGL production increased to 459 MBbl compared to 368 MBbl in the fourth quarter of 2014. |
• | Natural gas production increased to 10,211 MMcf compared to 8,847 MMcf in the fourth quarter of 2014. |
• | Adjusted EBITDA was $148.6 million (including $4.1 million of restructuring costs) in the first quarter of 2015 compared to $127.4 million in the fourth quarter of 2014, a 17% increase. The increase was primarily due to higher commodity derivative instrument settlements and higher production, partially offset by lower sales revenue driven by lower commodity prices. |
• | Net loss attributable to common unitholders was $63.0 million, or $0.29 per diluted common unit, in the first quarter of 2015, which includes non-cash impairment charges of approximately $59.1 million, or $0.28 per unit, compared to net income of $401.0 million, or $2.27 per diluted common unit, in the fourth quarter of 2014, which includes non-cash impairment charges of approximately $119.6 million, or $0.68 per unit. |
• | Oil, NGL and natural gas sales revenues were $162.6 million in the first quarter of 2015 compared to $197.1 million in the fourth quarter of 2014, primarily due to lower realized oil, natural gas, and NGL prices. |
• | Lease operating expenses, which include district expenses, processing fees and transportation costs but exclude taxes, were $19.81 per Boe in the first quarter of 2015 compared to $21.77 per Boe in the fourth quarter of 2014. |
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• | General and administrative expenses, excluding non-cash unit-based compensation costs, were $25.3 million in the first quarter of 2015 compared to $28.1 million in the fourth quarter of 2014. |
• | Gains on commodity derivative instruments were $137.2 million in the first quarter of 2015 compared to gains of $587.6 million in the fourth quarter of 2014, primarily due to a smaller decrease in oil and natural gas futures prices during the first quarter of 2015 compared to the fourth quarter of 2014. Derivative instrument settlement receipts were $126.4 million in the first quarter of 2015 compared to receipts of $62.1 million in the fourth quarter of 2014, primarily due to lower oil and natural gas prices. |
• | NYMEX WTI oil spot prices averaged $48.49 per Bbl and Brent oil spot prices averaged $53.98 per Bbl in the first quarter of 2015 compared to $73.21 per Bbl and $76.43 per Bbl, respectively, in the fourth quarter of 2014. Henry Hub natural gas spot prices averaged $2.90 per Mcf in the first quarter of 2014 compared to $3.78 per Mcf in the fourth quarter of 2014. |
• | Average realized crude oil, NGL and natural gas prices, excluding the effects of commodity derivative settlements, averaged $43.62 per Bbl, $16.54 per Bbl and $3.05 per Mcf, respectively, in the first quarter of 2015 compared to $69.36 per Bbl, $26.38 per Bbl and $4.07 per Mcf, respectively, in the fourth quarter of 2014. |
• | Oil, NGL and natural gas capital expenditures were $73 million in the first quarter of 2015 compared to $113 million in the fourth quarter of 2014. |
• | Distributable cash flow, a non-GAAP financial measure, was $60.7 million in the first quarter of 2015 compared to $43.9 million in the fourth quarter of 2014. |
Impact of Derivative Instruments
Breitburn uses commodity derivative instruments to mitigate risks associated with commodity price volatility and to help maintain cash flows for operating activities, acquisitions, capital expenditures and distributions. Breitburn does not enter into derivative instruments for speculative trading purposes. Since Breitburn does not use hedge accounting to account for its derivative instruments, changes in the fair value of derivative instruments are recorded in Breitburn’s earnings during each reporting period. These non-cash changes in the fair value of derivatives do not affect Adjusted EBITDA, cash flow from operations, distributable cash flow or Breitburn’s ability to pay cash distributions for the reporting periods presented.
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Production, Statement of Operations, and Realized Price Information
The following table presents production, selected income statement and realized price information for the three months ended March 31, 2015 and 2014, and the three months ended December 31, 2014:
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
Thousands of dollars, except as indicated | 2015 | 2014 | 2014 | |||||||||
Oil sales | $ | 123,843 | $ | 151,335 | $ | 167,086 | ||||||
NGL sales | 7,591 | 9,709 | 11,065 | |||||||||
Natural gas sales | 31,189 | 36,023 | 45,405 | |||||||||
Gain (loss) on commodity derivative instruments | 137,192 | 587,590 | (40,228 | ) | ||||||||
Other revenues, net | 6,469 | 3,376 | 1,584 | |||||||||
Total revenues | $ | 306,284 | $ | 788,033 | $ | 184,912 | ||||||
Lease operating expenses before taxes (a) | $ | 100,079 | $ | 90,768 | $ | 66,990 | ||||||
Production and property taxes (b) | 13,544 | 14,084 | 15,659 | |||||||||
Total lease operating expenses | 113,623 | 104,852 | 82,649 | |||||||||
Purchases and other operating costs | 158 | 299 | 214 | |||||||||
Salt water disposal costs | 4,021 | 2,168 | — | |||||||||
Change in inventory | 176 | 201 | (666 | ) | ||||||||
Total operating costs | $ | 117,978 | $ | 107,520 | $ | 82,197 | ||||||
Lease operating expenses before taxes per Boe (a) | $ | 19.81 | $ | 21.77 | $ | 20.81 | ||||||
Production and property taxes per Boe (b) | 2.68 | 3.38 | 4.86 | |||||||||
Total lease operating expenses per Boe | $ | 22.49 | $ | 25.15 | $ | 25.67 | ||||||
General and administrative expenses (excluding non-cash unit-based compensation) | $ | 25,335 | $ | 28,116 | $ | 12,180 | ||||||
Net income (loss) attributable to the partnership | $ | (58,825 | ) | $ | 405,173 | $ | (9,758 | ) | ||||
Less: distributions to preferred unitholders | 4,125 | 4,125 | — | |||||||||
Net income (loss) attributable to common unitholders | $ | (62,950 | ) | $ | 401,048 | $ | (9,758 | ) | ||||
Total production (MBoe) (c) | 5,051 | 4,170 | 3,219 | |||||||||
Oil (MBbl) | 2,890 | 2,327 | 1,799 | |||||||||
NGLs (MBbl) | 459 | 368 | 258 | |||||||||
Natural gas (MMcf) | 10,211 | 8,847 | 6,971 | |||||||||
Average daily production (Boe/d) | 56,122 | 45,313 | 35,768 | |||||||||
Sales volumes (MBoe) (d) | 4,999 | 4,022 | 3,233 | |||||||||
Average realized sales price (per Boe) (e) (f) | $ | 32.52 | $ | 48.96 | $ | 69.12 | ||||||
Oil (per Bbl) (e) (f) | 43.62 | 69.36 | 92.12 | |||||||||
NGLs (per Bbl) (e) | 16.54 | 26.38 | 42.89 | |||||||||
Natural gas (per Mcf) (e) | $ | 3.05 | $ | 4.07 | $ | 6.51 | ||||||
(a) | Includes district expenses, processing fees and transportation costs. | |||||
(b) | Includes ad valorem and severance taxes. | |||||
(c) | Natural gas is converted on the basis of six Mcf of gas per one Bbl of oil equivalent. This ratio reflects an energy content equivalency and not a price or revenue equivalency. Given commodity price disparities, the price for a Bbl of oil equivalent for natural gas is significantly less than the price for a Bbl of oil. | |||||
(d) | Oil sales were 2,835 MBbl, 2,320 MBbl and 1,813 MBbl for the three months ended March 31, 2015, December 31, 2014 and March 31, 2014, respectively. | |||||
(e) | Excludes the effect of commodity derivative settlements. | |||||
(f) | Includes the per Boe effect of crude oil purchases. | |||||
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Non-GAAP Financial Measures
This press release, including the financial tables and other supplemental information, including the reconciliations of certain non-generally accepted accounting principles (“non-GAAP”) measures to their nearest comparable generally accepted accounting principles (“GAAP”) measures, may be used periodically by management when discussing Breitburn’s financial results with investors and analysts, and they are also available at www.breitburn.com.
“Adjusted EBITDA” and “distributable cash flow” are among the non-GAAP financial measures used in this press release. These non-GAAP financial measures should not be considered as alternatives to GAAP measures such as net income, operating income, cash flow from operating activities or any other GAAP measure of liquidity or financial performance. Management believes that these non-GAAP financial measures enhance comparability to prior periods.
Adjusted EBITDA is presented because management believes it provides additional information relative to the performance of Breitburn’s assets, without regard to financing methods or capital structure. Distributable cash flow is used by management as a tool to measure the cash distributions we could pay to our unitholders, and this financial measure indicates to investors whether or not we are generating cash flow at a level that can support our distribution rate to our unitholders. These non-GAAP financial measures may not be comparable to similarly titled measures of other publicly traded partnerships or limited liability companies because all companies may not calculate Adjusted EBITDA or distributable cash flow in the same manner.
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Adjusted EBITDA
The following table presents a reconciliation of net income (loss) and net cash flows from operating activities, our most directly comparable GAAP financial performance and liquidity measures, to Adjusted EBITDA for each of the periods indicated.
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
Thousands of dollars, except as indicated | 2015 | 2014 | 2014 | |||||||||
Reconciliation of net income (loss) to Adjusted EBITDA: | ||||||||||||
Net income (loss) attributable to the partnership | $ | (58,825 | ) | $ | 405,173 | $ | (9,758 | ) | ||||
Loss (gain) on commodity derivative instruments | (137,192 | ) | (587,590 | ) | 40,228 | |||||||
Commodity derivative instrument settlements (a) (b) | 126,357 | 62,053 | (13,500 | ) | ||||||||
Depletion, depreciation and amortization expense | 109,824 | 87,292 | 63,501 | |||||||||
Impairments | 59,113 | 119,566 | — | |||||||||
Interest expense and other financing costs | 41,477 | 36,110 | 30,658 | |||||||||
Loss on sale of assets | 15 | 306 | 86 | |||||||||
Income tax expense (benefit) | 92 | (457 | ) | 11 | ||||||||
Unit-based compensation expense (c) | 6,927 | 4,947 | 6,549 | |||||||||
Restructuring costs - unit-based compensation | 814 | — | — | |||||||||
Adjusted EBITDA | $ | 148,602 | $ | 127,400 | $ | 117,775 | ||||||
Less: | ||||||||||||
Maintenance capital (d) | $ | 45,000 | $ | 43,714 | $ | 28,932 | ||||||
Cash interest expense | 38,729 | 35,651 | 28,571 | |||||||||
Distributions to preferred unitholders | 4,125 | 4,125 | — | |||||||||
Distributable cash flow available to common unitholders | $ | 60,748 | $ | 43,910 | $ | 60,272 | ||||||
Distributable cash flow available per common unit (e) (f) | 0.282 | 0.207 | 0.496 | |||||||||
Common unit distribution coverage (f) | 2.26x | 0.83x | 1.00x | |||||||||
Reconciliation of net cash flows from operating activities to Adjusted EBITDA: | ||||||||||||
Net cash provided by operating activities | $ | 142,047 | $ | 62,839 | $ | 116,311 | ||||||
Increase (decrease) in assets net of liabilities relating to operating activities | (31,866 | ) | 29,199 | (27,361 | ) | |||||||
Interest expense (g) | 38,729 | 35,563 | 28,674 | |||||||||
Income from equity affiliates, net | (325 | ) | (88 | ) | 107 | |||||||
Noncontrolling interest | 93 | 17 | — | |||||||||
Income taxes | (76 | ) | (130 | ) | 44 | |||||||
Adjusted EBITDA | $ | 148,602 | $ | 127,400 | $ | 117,775 | ||||||
(a) | Excludes premiums paid at contract inception related to those derivative contracts that settled during the applicable periods of: | 1,645 | 2,141 | 2,095 | ||||||
(b) | Includes net cash settlements on derivative instruments for: | |||||||||
- Oil settlements received (paid): | 111,879 | 55,975 | (11,680 | ) | ||||||
- Natural gas settlements received (paid): | 14,478 | 6,078 | (1,820 | ) | ||||||
(c) | Represents non-cash long-term unit-based incentive compensation expense. | |||||||||
(d) | Maintenance capital is management's estimate of the investment in capital projects and obligatory spending on existing facilities and operations needed to hold production approximately flat over a multi-year period. | |||||||||
(e) | Based on common units outstanding (including outstanding LTIP grants) at each distribution record date within the periods. | |||||||||
(f) | The three months ended December 31, 2014 includes only 41 days of QR Energy operating results, $11.7 million of acquisition and integration costs, and the effect of 71.5 million common units issued in connection with the QR Energy merger in November 2014. | |||||||||
(g) | Excludes amortization of debt issuance costs and amortization of senior note discount/premium. | |||||||||
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Summary of Commodity Derivative Instruments
The table below summarizes Breitburn’s commodity derivative hedge portfolio as of May 4, 2015. For an overview of Breitburn's commodity hedge portfolio, please refer to the Summary of Commodity Price Protection Portfolio at www.breitburn.com.
Year | ||||||||||||||||
2015 | 2016 | 2017 | 2018 | |||||||||||||
Oil Positions: | ||||||||||||||||
Fixed Price Swaps - NYMEX WTI | ||||||||||||||||
Volume (Bbl/d) | 20,044 | 15,504 | 13,519 | 493 | ||||||||||||
Average Price ($/Bbl) | $ | 93.28 | $ | 88.07 | $ | 85.05 | $ | 82.20 | ||||||||
Fixed Price Swaps - ICE Brent | ||||||||||||||||
Volume (Bbl/d) | 3,300 | 4,300 | 298 | — | ||||||||||||
Average Price ($/Bbl) | $ | 97.73 | $ | 95.17 | $ | 97.50 | $ | — | ||||||||
Collars - NYMEX WTI | ||||||||||||||||
Volume (Bbl/d) | 2,025 | 1,500 | — | — | ||||||||||||
Average Floor Price ($/Bbl) | $ | 67.81 | $ | 80.00 | $ | — | $ | — | ||||||||
Average Ceiling Price ($/Bbl) | $ | 111.73 | $ | 102.00 | $ | — | $ | — | ||||||||
Collars - ICE Brent | ||||||||||||||||
Volume (Bbl/d) | 500 | 500 | — | — | ||||||||||||
Average Floor Price ($/Bbl) | $ | 67.81 | $ | 90.00 | $ | — | $ | — | ||||||||
Average Ceiling Price ($/Bbl) | $ | 109.50 | $ | 101.25 | $ | — | $ | — | ||||||||
Puts - NYMEX WTI | ||||||||||||||||
Volume (Bbl/d) | 500 | 1,000 | — | — | ||||||||||||
Average Price ($/Bbl) | $ | 90.00 | $ | 90.00 | $ | — | $ | — | ||||||||
Total: | ||||||||||||||||
Volume (Bbl/d) | 26,369 | 22,804 | 13,817 | 493 | ||||||||||||
Average Price ($/Bbl) | $ | 93.46 | $ | 89.01 | $ | 85.32 | $ | 82.20 | ||||||||
Gas Positions: | ||||||||||||||||
Fixed Price Swaps - MichCon City-Gate | ||||||||||||||||
Volume (MMBtu/d) | 7,500 | 17,000 | 10,000 | — | ||||||||||||
Average Price ($/MMBtu) | $ | 6.00 | $ | 4.46 | $ | 4.48 | $ | — | ||||||||
Fixed Price Swaps - Henry Hub | ||||||||||||||||
Volume (MMBtu/d) | 54,891 | 36,050 | 19,016 | 1,870 | ||||||||||||
Average Price ($/MMBtu) | $ | 4.84 | $ | 4.24 | $ | 4.43 | $ | 4.15 | ||||||||
Collars - Henry Hub | ||||||||||||||||
Volume (MMBtu/d) | 18,000 | 630 | 595 | — | ||||||||||||
Average Floor Price ($/MMBtu) | $ | 5.00 | $ | 4.00 | $ | 4.00 | $ | — | ||||||||
Average Ceiling Price ($/MMBtu) | $ | 7.48 | $ | 5.55 | $ | 6.15 | $ | — | ||||||||
Puts - Henry Hub | ||||||||||||||||
Volume (MMBtu/d) | 1,920 | 11,350 | 10,445 | — | ||||||||||||
Average Price ($/MMBtu) | $ | 4.78 | $ | 4.00 | $ | 4.00 | $ | — | ||||||||
Deferred Premium ($/MMBtu) | $ | 0.64 | (a) | $ | 0.66 | $ | 0.69 | $ | — | |||||||
Total: | ||||||||||||||||
Volume (MMBtu/d) | 82,311 | 65,030 | 40,056 | 1,870 | ||||||||||||
Average Price ($/MMBtu) | $ | 4.98 | $ | 4.25 | $ | 4.33 | $ | 4.15 | ||||||||
Basis Swaps- Henry Hub | ||||||||||||||||
Volume (MMBtu/d) | 14,400 | — | — | — | ||||||||||||
Average Price ($/MMBtu) | $ | (0.19 | ) | $ | — | $ | — | $ | — | |||||||
(a) Deferred premiums of $0.64 apply to 420 MMBtu/d of the 2015 volume.
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Premiums paid in 2012 related to oil and natural gas derivatives to be settled after March 31, 2015, are as follows:
Year | ||||||||||||||||
Thousands of dollars | 2015 | 2016 | 2017 | 2018 | ||||||||||||
Oil | $ | 3,528 | $ | 7,438 | $ | 734 | $ | — | ||||||||
Natural gas | $ | 1,499 | $ | 952 | $ | — | $ | — | ||||||||
Other Information
Breitburn will host a conference call Tuesday, May 5, 2015, at 12:00 pm (EDT) to discuss Breitburn’s first quarter 2015 results. The conference call may be accessed by calling 888-539-3678 (international callers dial 719-325-2354) or via webcast at http://ir.breitburn.com/. An archived edition of the conference call will also be available through May 12th by calling 877-870-5176 (international callers dial 858-384-5517) and entering replay PIN 1121312 or by visiting http://ir.breitburn.com/. Breitburn will take questions from securities analysts and institutional portfolio managers; the call is open to all other interested parties on a listen-only basis.
About Breitburn Energy Partners LP
Breitburn Energy Partners LP is a publicly traded independent oil and gas master limited partnership focused on the acquisition, development, and production of oil and gas properties throughout the United States. Breitburn’s producing and non-producing crude oil and natural gas reserves are located in the following seven producing areas: Ark-La-Tex, Michigan/Indiana/Kentucky, the Permian Basin, the Mid-Continent, the Rockies, Florida, and California. See www.breitburn.com for more information.
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking statements relating to Breitburn's operations that are based on management’s current expectations, estimates and projections about its operations. Words and phrases such as “believes,” “expect,” “future,” “impact,” “guidance,” “will be,” and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. These include risks relating to Breitburn's financial performance and results, availability of sufficient cash flow and other sources of liquidity to execute our business plan, prices and demand for natural gas and oil, increases in operating costs, uncertainties inherent in estimating our reserves and production, our ability to replace reserves and efficiently develop our current reserves, political and regulatory developments relating to taxes, derivatives and our oil and gas operations, risks relating to our acquisitions and the factors set forth under the heading “Risk Factors” incorporated by reference from our Annual Report on Form 10-K filed with the Securities and Exchange Commission, and if applicable, our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Breitburn undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.
Contacts:
Antonio D'Amico
Vice President, Investor Relations & Government Affairs
or
Jessica Tang
Investor Relations Manager
(213) 225-0390
BBEP-IR
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Breitburn Energy Partners LP and Subsidiaries
Unaudited Consolidated Balance Sheets
March 31, | December 31, | |||||||
Thousands of dollars | 2015 | 2014 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 8,690 | $ | 12,628 | ||||
Accounts and other receivables, net | 136,360 | 166,436 | ||||||
Derivative instruments | 411,391 | 408,151 | ||||||
Related party receivables | — | 2,462 | ||||||
Inventory | 3,912 | 3,727 | ||||||
Prepaid expenses | 3,532 | 7,304 | ||||||
Total current assets | 563,885 | 600,708 | ||||||
Equity investments | 6,138 | 6,463 | ||||||
Property, plant and equipment | ||||||||
Oil and natural gas properties | 7,804,213 | 7,736,409 | ||||||
Other property, plant and equipment | 133,429 | 60,533 | ||||||
7,937,642 | 7,796,942 | |||||||
Accumulated depletion and depreciation | (1,505,141 | ) | (1,342,741 | ) | ||||
Net property, plant and equipment | 6,432,501 | 6,454,201 | ||||||
Other long-term assets | ||||||||
Intangibles | 7,616 | 8,336 | ||||||
Goodwill | 95,947 | 92,024 | ||||||
Derivative instruments | 326,788 | 319,560 | ||||||
Other long-term assets | 108,194 | 157,042 | ||||||
Total assets | $ | 7,541,069 | $ | 7,638,334 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 102,448 | $ | 129,270 | ||||
Current portion of long-term debt | — | 105,000 | ||||||
Derivative instruments | 5,339 | 5,457 | ||||||
Distributions payable | 734 | 733 | ||||||
Current portion of asset retirement obligation | 4,388 | 4,948 | ||||||
Revenue and royalties payable | 36,065 | 40,452 | ||||||
Wages and salaries payable | 14,178 | 22,322 | ||||||
Accrued interest payable | 42,882 | 20,672 | ||||||
Production and property taxes payable | 25,980 | 25,207 | ||||||
Other current liabilities | 6,422 | 7,495 | ||||||
Total current liabilities | 238,436 | 361,556 | ||||||
Credit facility | 2,218,000 | 2,089,500 | ||||||
Senior notes, net | 1,156,532 | 1,156,560 | ||||||
Other long-term debt | 2,700 | 1,100 | ||||||
Total long-term debt | 3,377,232 | 3,247,160 | ||||||
Deferred income taxes | 2,743 | 2,575 | ||||||
Asset retirement obligation | 239,039 | 233,463 | ||||||
Derivative instruments | 2,378 | 2,269 | ||||||
Other long-term liabilities | 25,122 | 25,135 | ||||||
Total liabilities | 3,884,950 | 3,872,158 | ||||||
Equity | ||||||||
Series A preferred units, 8.0 million units issued and outstanding at each of March 31, 2015 and December 31, 2014 | 193,215 | 193,215 | ||||||
Common units, 210.9 million units issued and outstanding at each of March 31, 2015 and December 31, 2014 | 3,456,330 | 3,566,468 | ||||||
Accumulated other comprehensive loss | (289 | ) | (392 | ) | ||||
Total partners' equity | 3,649,256 | 3,759,291 | ||||||
Noncontrolling interest | 6,863 | 6,885 | ||||||
Total equity | 3,656,119 | 3,766,176 | ||||||
Total liabilities and equity | $ | 7,541,069 | $ | 7,638,334 | ||||
8
Breitburn Energy Partners LP and Subsidiaries
Unaudited Consolidated Statements of Operations
Three Months Ended | ||||||||
March 31, | ||||||||
Thousands of dollars, except per unit amounts | 2015 | 2014 | ||||||
Revenues and other income items | ||||||||
Oil, natural gas and natural gas liquid sales | $ | 162,623 | $ | 223,556 | ||||
Gain (loss) on commodity derivative instruments, net | 137,192 | (40,228 | ) | |||||
Other revenue, net | 6,469 | 1,584 | ||||||
Total revenues and other income items | 306,284 | 184,912 | ||||||
Operating costs and expenses | ||||||||
Operating costs | 117,978 | 82,197 | ||||||
Depletion, depreciation and amortization | 109,824 | 63,501 | ||||||
Impairments | 59,113 | — | ||||||
General and administrative expenses | 32,262 | 18,729 | ||||||
Restructuring costs | 4,918 | — | ||||||
Loss on sale of assets | 15 | 86 | ||||||
Total operating costs and expenses | 324,110 | 164,513 | ||||||
Operating income (loss) | (17,826 | ) | 20,399 | |||||
Interest expense, net of capitalized interest | 39,665 | 30,658 | ||||||
Loss on interest rate swaps | 1,812 | — | ||||||
Other income, net | (477 | ) | (512 | ) | ||||
Total other expense | 41,000 | 30,146 | ||||||
Loss before taxes | (58,826 | ) | (9,747 | ) | ||||
Income tax expense | 92 | 11 | ||||||
Net loss | (58,918 | ) | (9,758 | ) | ||||
Less: Net loss attributable to noncontrolling interest | (93 | ) | — | |||||
Net loss attributable to the partnership | (58,825 | ) | (9,758 | ) | ||||
Less: distributions to preferred unitholders | 4,125 | — | ||||||
Net loss attributable to common unitholders | $ | (62,950 | ) | $ | (9,758 | ) | ||
Basic net loss per common unit | $ | (0.29 | ) | $ | (0.08 | ) | ||
Diluted net loss per common unit | $ | (0.29 | ) | $ | (0.08 | ) | ||
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Breitburn Energy Partners LP and Subsidiaries
Unaudited Consolidated Statements of Comprehensive Income
Three Months Ended March 31, | ||||||||
Thousands of dollars, except per unit amounts | 2015 | 2014 | ||||||
Net loss | $ | (58,918 | ) | $ | (9,758 | ) | ||
Other comprehensive income, net of tax: | ||||||||
Change in fair value of available-for-sale securities (a) | 173 | — | ||||||
Pension and post-retirement benefits actuarial loss | — | — | ||||||
Total other comprehensive income | 173 | — | ||||||
Total comprehensive loss | (58,745 | ) | (9,758 | ) | ||||
Less: Comprehensive income attributable to noncontrolling interest | (23 | ) | — | |||||
Comprehensive loss attributable to the partnership | $ | (58,722 | ) | $ | (9,758 | ) | ||
(a) Net of income taxes of $0.1 million for the three months ended March 31, 2015.
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Breitburn Energy Partners LP and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
Three Month Ended March 31, | ||||||||
Thousands of dollars | 2015 | 2014 | ||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (58,918 | ) | $ | (9,758 | ) | ||
Adjustments to reconcile to cash flow from operating activities: | ||||||||
Depletion, depreciation and amortization | 109,824 | 63,501 | ||||||
Impairments | 59,113 | — | ||||||
Unit-based compensation expense | 7,741 | 6,549 | ||||||
(Gain) loss on derivative instruments | (135,380 | ) | 40,228 | |||||
Derivative instrument settlement receipts (payments) | 124,904 | (13,500 | ) | |||||
Income from equity affiliates, net | 325 | (107 | ) | |||||
Deferred income taxes | 168 | (33 | ) | |||||
Loss on sale of assets | 15 | 86 | ||||||
Other | (41 | ) | 1,800 | |||||
Changes in net assets and liabilities | ||||||||
Accounts receivable and other assets | 30,043 | (20,752 | ) | |||||
Inventory | (185 | ) | 5 | |||||
Net change in related party receivables and payables | 2,462 | 1,669 | ||||||
Accounts payable and other liabilities | 1,078 | 46,623 | ||||||
Net cash provided by operating activities | 141,149 | 116,311 | ||||||
Cash flows from investing activities | ||||||||
Property acquisitions | (13,993 | ) | (2,464 | ) | ||||
Capital expenditures | (97,230 | ) | (93,075 | ) | ||||
Other | (853 | ) | (2,037 | ) | ||||
Proceeds from sale of assets | — | 1 | ||||||
Net cash used in investing activities | (112,076 | ) | (97,575 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of common units, net | (63 | ) | 180 | |||||
Distributions to preferred unitholders | (4,125 | ) | — | |||||
Distributions to common unitholders | (54,122 | ) | (59,638 | ) | ||||
Proceeds from issuance of long-term debt, net | 193,600 | 199,000 | ||||||
Repayments of long-term debt | (168,500 | ) | (157,000 | ) | ||||
Change in bank overdraft | 199 | (1,683 | ) | |||||
Debt issuance costs | — | (232 | ) | |||||
Net cash used in financing activities | (33,011 | ) | (19,373 | ) | ||||
Decrease in cash | (3,938 | ) | (637 | ) | ||||
Cash beginning of period | 12,628 | 2,458 | ||||||
Cash end of period | $ | 8,690 | $ | 1,821 | ||||
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