Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Harvest Oil & Gas Corp. | v426674_ex99-1.htm |
| EX-99.4 - EXHIBIT 99.4 - Harvest Oil & Gas Corp. | v426674_ex99-4.htm |
| EX-23.2 - EXHIBIT 23.2 - Harvest Oil & Gas Corp. | v426674_ex23-2.htm |
| EX-99.2 - EXHIBIT 99.2 - Harvest Oil & Gas Corp. | v426674_ex99-2.htm |
| EX-99.3 - EXHIBIT 99.3 - Harvest Oil & Gas Corp. | v426674_ex99-3.htm |
| 8-K/A - FORM 8-K/A - Harvest Oil & Gas Corp. | v426674_8ka.htm |
| EX-23.3 - EXHIBIT 23.3 - Harvest Oil & Gas Corp. | v426674_ex23-3.htm |
Exhibit 99.5
EV Energy Partners, L.P.
Unaudited Pro Forma Condensed Consolidated Financial Information
On October 1, 2015, EV Energy Partners, L.P. (“we,” “our,” or “us”) closed on the acquisitions of
Belden & Blake Corporation (“Belden”) and oil and natural gas properties in the Appalachian Basin, the San Juan Basin and the Austin Chalk (the “Acquired Properties”) from certain institutional partnerships managed by EnerVest, Ltd. for a combined cash consideration of $259.0 million.
The following unaudited pro forma condensed consolidated financial information is derived from our historical consolidated financial statements. With the sale of our membership interests in our midstream investments in October 2014 and June 2015, we no longer operate in the midstream segment, and we have reclassified our historical unaudited condensed consolidated statements of operations for all periods presented to reflect the operations of our midstream segment as discontinued operations. Accordingly, in our historical unaudited condensed consolidated statements of operations, amounts previously included in “Equity in income of unconsolidated affiliates” and “Gain on sale of investment in unconsolidated affiliate” have been reclassified to “Income from discontinued operations.”
The unaudited pro forma condensed consolidated balance sheet as of September 30, 2015 gives effect to these acquisitions as if they had occurred on September 30, 2015. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2015 and for the year ended December 31, 2014 reflect these acquisitions as if they had occurred on January 1, 2014.
These unaudited pro forma condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10–K for the year ended December 31, 2014, our Quarterly Report on Form 10–Q for the quarter ended September 30, 2015, the Unaudited Consolidated Financial Statements of Belden & Blake Corporation and Subsidiaries for the nine months ended September 30, 2015 and 2014, the Unaudited Combined Statements of Revenues and Direct Operating Expenses of the Acquired Properties for the nine months ended September 30, 2015 and 2014, the Audited Consolidated Financial Statements of Belden & Blake Corporation and Subsidiaries as of and for the year ended December 31, 2014 and the Audited Combined Statement of Revenues and Direct Operating Expenses of the Acquired Properties for the year ended December 31, 2014,
This unaudited pro forma condensed consolidated financial information is provided for illustrative purposes only and is not necessarily indicative of the results of operations that would have occurred had the acquisitions been effected on the assumed dates, nor is it necessarily indicative of our future operating results.
| 1 |
EV Energy Partners, L.P.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of September 30, 2015
(in thousands)
| Historical | Pro Forma | |||||||||||||||||
| Condensed | Pro Forma | Condensed | ||||||||||||||||
| Consolidated | Belden | Adjustments | Consolidated | |||||||||||||||
| ASSETS | ||||||||||||||||||
| Current assets: | ||||||||||||||||||
| Cash and cash equivalents | $ | 39,861 | $ | 8,665 | $ | (3,122 | ) | (a) | $ | 45,404 | ||||||||
| Accounts receivable: | ||||||||||||||||||
| Oil, natural gas and natural gas liquids revenues | 19,488 | 7,899 | – | 27,387 | ||||||||||||||
| Other | 5,019 | – | – | 5,019 | ||||||||||||||
| Derivative asset | 71,406 | 2,711 | – | 74,117 | ||||||||||||||
| Other current assets | 1,108 | 1,128 | 94 | (a) | 4,069 | |||||||||||||
| 1,739 | (b) | |||||||||||||||||
| Total current assets | 136,882 | 20,403 | (1,289 | ) | 155,996 | |||||||||||||
| Oil and natural gas properties, net of accumulated depreciation, depletion and amortization | 1,552,097 | 217,382 | (111,756 | ) | (a) | 1,824,126 | ||||||||||||
| 166,403 | (b) | |||||||||||||||||
| Other property, net of accumulated depreciation and amortization | 1,087 | 498 | (498 | ) | (a) | 1,087 | ||||||||||||
| Long–term derivative asset | 15,323 | 128 | – | 15,451 | ||||||||||||||
| Goodwill | – | – | 45,709 | (a) | 65,935 | |||||||||||||
| 20,226 | (b) | |||||||||||||||||
| Other assets | 32,839 | 1,342 | (11,342 | ) | (a) | 8,089 | ||||||||||||
| (14,750 | ) | (b) | ||||||||||||||||
| Total assets | $ | 1,738,228 | $ | 239,753 | $ | 92,703 | $ | 2,070,684 | ||||||||||
| LIABILITIES AND OWNERS’ EQUITY | ||||||||||||||||||
| Current liabilities: | ||||||||||||||||||
| Accounts payable and accrued liabilities: | ||||||||||||||||||
| Third party | $ | 45,106 | $ | 10,487 | $ | (333 | ) | (a) | $ | 55,859 | ||||||||
| 599 | (b) | |||||||||||||||||
| Related party | 2,226 | 2,190 | – | 4,416 | ||||||||||||||
| Current portion of long–term liabilities | – | 110,419 | (110,419 | ) | (a) | – | ||||||||||||
| Total current liabilities | 47,332 | 123,096 | (110,153 | ) | 60,275 | |||||||||||||
| Asset retirement obligations | 98,249 | 33,414 | 2,270 | (a) | 168,671 | |||||||||||||
| 34,738 | (b) | |||||||||||||||||
| Long–term debt | 499,472 | – | 96,832 | (a) | 729,472 | |||||||||||||
| 133,168 | (b) | |||||||||||||||||
| Deferred income taxes | – | 58,315 | (44,906 | ) | (a) | 13,409 | ||||||||||||
| Other long–term liabilities | 477 | 569 | 5,113 | (b) | 6,159 | |||||||||||||
| Commitments and contingencies | ||||||||||||||||||
| Owners equity | 1,092,698 | 24,359 | (24,359 | ) | (b) | 1,092,698 | ||||||||||||
| Total liabilities and owners’ equity | $ | 1,738,228 | $ | 239,753 | $ | 92,703 | $ | 2,070,684 | ||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial information.
| 2 |
EV Energy Partners, L.P.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Nine Months Ended September 30, 2015
(in thousands, except per unit data)
| Historical | Pro Forma | |||||||||||||||||||||
| Condensed | Acquired | Pro Forma | Condensed | |||||||||||||||||||
| Consolidated | Belden | Properties | Adjustments | Consolidated | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||||
| Oil, natural gas and natural gas liquids revenues | $ | 127,734 | $ | 22,877 | $ | 32,973 | $ | – | $ | 183,584 | ||||||||||||
| Transportation and marketing–related revenues | 2,285 | 1,415 | – | – | 3,700 | |||||||||||||||||
| Total revenues | 130,019 | 24,292 | 32,973 | – | 187,284 | |||||||||||||||||
| Operating costs and expenses: | ||||||||||||||||||||||
| Lease operating expenses | 69,833 | 13,155 | 16,835 | – | 99,823 | |||||||||||||||||
| Cost of purchased natural gas | 1,588 | 654 | – | – | 2,242 | |||||||||||||||||
| Dry hole and exploration costs | 1,720 | 131 | – | – | 1,851 | |||||||||||||||||
| Production taxes | 4,708 | 431 | 2,651 | – | 7,790 | |||||||||||||||||
| Accretion expense | 3,548 | 1,308 | – | 1,927 | (c) | 6,783 | ||||||||||||||||
| Depreciation, depletion and amortization | 74,718 | 13,094 | – | 1,631 | (d) | 89,443 | ||||||||||||||||
| General and administrative expenses | 28,968 | 2,068 | – | – | 31,036 | |||||||||||||||||
| Impairment of oil and natural gas properties | 122,244 | 123,952 | – | – | 246,196 | |||||||||||||||||
| Gain on sales of oil and natural gas properties | (531 | ) | – | – | – | (531 | ) | |||||||||||||||
| Total operating costs and expenses | 306,796 | 154,793 | 19,486 | 3,558 | 484,633 | |||||||||||||||||
| Operating loss (income) | (176,777 | ) | (130,501 | ) | 13,487 | (3,558 | ) | (297,349 | ) | |||||||||||||
| Other income (expense), net | ||||||||||||||||||||||
| Gain on derivatives, net | 51,406 | 3,081 | – | – | 54,487 | |||||||||||||||||
| Interest expense | (38,279 | ) | (2,916 | ) | – | (2,077 | ) | (e) | (43,272 | ) | ||||||||||||
| Other income, net | 51 | 28 | – | – | 79 | |||||||||||||||||
| Total other income (expense), net | 13,178 | 193 | – | (2,077 | ) | 11,294 | ||||||||||||||||
| (Loss) income from continuing operations before income taxes | (163,599 | ) | (130,308 | ) | 13,487 | (5,635 | ) | (286,055 | ) | |||||||||||||
| Income taxes | 684 | 49,644 | – | (2,467 | ) | (f) | 47,861 | |||||||||||||||
| (Loss) income from continuing operations | (162,915 | ) | (80,664 | ) | 13,487 | (8,102 | ) | (238,194 | ) | |||||||||||||
| Income from discontinued operations | 255,512 | – | – | – | 255,512 | |||||||||||||||||
| Net income (loss) | $ | 92,597 | $ | (80,664 | ) | $ | 13,487 | $ | (8,102 | ) | $ | 17,318 | ||||||||||
| Earnings per limited partner unit: | ||||||||||||||||||||||
| Loss from continuing operations | $ | (3.29 | ) | $ | (4.79 | ) | ||||||||||||||||
| Income from discontinued operations | $ | 5.12 | $ | 5.12 | ||||||||||||||||||
| Net income | $ | 1.83 | $ | 0.33 | ||||||||||||||||||
| Weighted average limited partner units outstanding – basic and diluted | 48,846 | 48,846 | ||||||||||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial information.
| 3 |
EV Energy Partners, L.P.
Unaudited Pro Forma Condensed Consolidated Statement of Operations
For the Year Months Ended December 31, 2014
(in thousands, except per unit data)
| Historical | Pro Forma | |||||||||||||||||||||
| Condensed | Acquired | Pro Forma | Condensed | |||||||||||||||||||
| Consolidated | Belden | Properties | Adjustments | Consolidated | ||||||||||||||||||
| Revenues: | ||||||||||||||||||||||
| Oil, natural gas and natural gas liquids revenues | $ | 334,729 | $ | 61,940 | $ | 83,564 | $ | – | $ | 480,233 | ||||||||||||
| Transportation and marketing–related revenues | 4,676 | 3,513 | – | – | 8,189 | |||||||||||||||||
| Total revenues | 339,405 | 65,453 | 83,564 | – | 488,422 | |||||||||||||||||
| Operating costs and expenses: | ||||||||||||||||||||||
| Lease operating expenses | 105,781 | 21,260 | 28,001 | – | 155,042 | |||||||||||||||||
| Cost of purchased natural gas | 3,533 | 2,451 | – | – | 5,984 | |||||||||||||||||
| Dry hole and exploration costs | 6,726 | 1,902 | – | – | 8,628 | |||||||||||||||||
| Production taxes | 11,976 | 1,112 | 6,891 | – | 19,979 | |||||||||||||||||
| Accretion expense | 4,835 | 1,583 | – | 3,201 | (c) | 9,619 | ||||||||||||||||
| Depreciation, depletion and amortization | 106,073 | 22,466 | – | (1,324 | ) | (d) | 127,215 | |||||||||||||||
| General and administrative expenses | 44,955 | 5,737 | – | – | 50,692 | |||||||||||||||||
| Impairment of oil and natural gas properties | 113,968 | 14,416 | – | – | 128,384 | |||||||||||||||||
| Gain on sales of oil and natural gas properties | (33,319 | ) | – | – | – | (33,319 | ) | |||||||||||||||
| Total operating costs and expenses | 364,528 | 70,927 | 34,892 | 1,877 | 472,224 | |||||||||||||||||
| Operating loss (income) | (25,123 | ) | (5,474 | ) | 48,672 | (1,877 | ) | 16,198 | ||||||||||||||
| Other income (expense), net | ||||||||||||||||||||||
| Gain on derivatives, net | 99,720 | 3,268 | – | – | 102,988 | |||||||||||||||||
| Interest expense | (52,578 | ) | (4,239 | ) | – | (3,935 | ) | (e) | (60,752 | ) | ||||||||||||
| Other income, net | 702 | 26 | – | – | 728 | |||||||||||||||||
| Total other income (expense), net | 47,844 | (945 | ) | – | (3,935 | ) | 42,964 | |||||||||||||||
| Income (loss) from continuing operations before income taxes | 22,721 | (6,419 | ) | 48,672 | (5,812 | ) | 59,162 | |||||||||||||||
| Income taxes | (476 | ) | (2,459 | ) | – | (5,001 | ) | (f) | (7,936 | ) | ||||||||||||
| Income (loss) from continuing operations | 22,245 | (8,878 | ) | 48,672 | (10,813 | ) | 51,226 | |||||||||||||||
| Income from discontinued operations | 107,475 | – | – | – | 107,475 | |||||||||||||||||
| Net income (loss) | $ | 129,720 | $ | (8,878 | ) | $ | 48,672 | $ | (10,813 | ) | $ | 158,701 | ||||||||||
| Earnings per limited partner unit: | ||||||||||||||||||||||
| Income from continuing operations | $ | 0.41 | $ | 1.00 | ||||||||||||||||||
| Income from discontinued operations | $ | 2.17 | $ | 2.17 | ||||||||||||||||||
| Net income | $ | 2.58 | $ | 3.17 | ||||||||||||||||||
| Weighted average limited partner units outstanding – basic and diluted | 48,563 | 48,563 | ||||||||||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial information.
| 4 |
EV Energy Partners, L.P.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Information
| 1. | PRO FORMA ADJUSTMENTS |
| (a) | To record the purchase price allocation for Belden. The acquisition cost was $111.1 million, which was funded with $96.8 million in borrowings under our credit facility and $14.3 million in cash. Of the $14.3 million in cash, $11.2 million was the deposit made in September 2015, which is included in “Other assets” in the unaudited pro forma condensed consolidated balance sheet. The sellers of Belden received $1.7 million in cash and we repaid the $109.4 million in borrowings outstanding under Belden’s credit facility. |
| (b) | To record the acquisition of the Acquired Properties for $147.9 million. The acquisition was funded with $133.2 million in borrowings under our credit facility and $14.7 million in cash, which was the deposit made in September 2015. The deposit is included in “Other assets” in the unaudited pro forma condensed consolidated balance sheet. |
| (c) | To record incremental accretion expense for the asset retirement obligations for the Acquired Properties and the change in the value of the Belden asset retirement obligations as a result of the purchase price allocation. In addition, accretion expense also includes the accretion of the obligation to deliver natural gas under volumetric production payment agreements that expire in December 2016. |
| (d) | To record the change in depreciation, depletion and amortization related to the oil and natural gas properties for the Acquired Properties and the change in the value of the Belden oil and natural gas properties as a result of the purchase price allocation. |
| (e) | To record incremental interest expense related to the $230.0 million in borrowings under our credit facility used to fund the acquisitions and pay off borrowings outstanding under Belden’s credit facility. |
| (f) | To record the change in income taxes related to the effects of the statement of operations pro forma adjustments for Belden. |
| 5 |