Attached files
| file | filename |
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| 8-K - 8-K - Breitburn Energy Partners LP | a8kq12016earningsrelease8-k.htm |
Exhibit 99.1
Breitburn Energy Partners Reports First Quarter 2016 Results
LOS ANGELES, May 9, 2016 - Breitburn Energy Partners LP (NASDAQ:BBEP) today announced financial and operating results for the first quarter 2016. Additional details concerning Breitburn’s operations and financial results are available in its first quarter 2016 report on Form 10-Q, which will be filed with the Securities and Exchange Commission and will be available at the Investor Relations tab of the Company’s website or at www.SEC.gov.
First Quarter 2016 Operating and Financial Results Compared to Fourth Quarter 2015
• | Total production was 4,848 MBoe in the first quarter of 2016, compared to 5,106 MBoe in the fourth quarter of 2015. Average daily production was 53.3 MBoe/day in the first quarter of 2016 compared to 55.5 MBoe/day in the fourth quarter of 2015. |
• | Oil production decreased to 2,589 MBbl, compared to 2,795 MBbl in the fourth quarter of 2015. |
• | NGL production decreased to 498 MBbl, compared to 526 MBbl in the fourth quarter of 2015. |
• | Natural gas production decreased to 10,567 MMcf, compared to 10,712 MMcf in the fourth quarter of 2015. |
• | Adjusted EBITDA was $131.5 million (including $2.2 million of restructuring costs) in the first quarter of 2016 compared to $169.0 million in the fourth quarter of 2015, a 22% decrease. The decrease was primarily due to lower sales revenue due to lower average realized prices, lower sales volume, lower commodity derivative instrument settlement receipts, lower other revenue, higher cash restructuring costs and higher G&A expenses, partially offset by lower operating costs. |
• | Net loss attributable to common unitholders was $115.3 million, or $0.54 per diluted common unit, in the first quarter of 2016, which included $97.4 million in unrealized losses on commodity derivative instruments and non-cash impairment charges of approximately $2.8 million, or $0.01 per diluted common unit, primarily related to the impact that further deterioration in future commodity prices had on our projected net revenues for certain of our oil and gas properties, compared to net loss of $902.3 million or $4.25 per diluted common unit, in the fourth quarter of 2015, which included non-cash impairment charges of approximately $878.3 million, or $4.14 per diluted common unit. |
• | Oil, NGL and natural gas sales revenues were $105.5 million in the first quarter of 2016 compared to $139.7 million in the fourth quarter of 2015, primarily due to lower realized oil and natural gas prices. |
• | Lease operating expenses, which include district expenses, processing fees, and transportation costs but exclude taxes and non-cash unit-based compensation expense, were $16.29 per Boe in the first quarter of 2016 compared to $17.74 per Boe in the fourth quarter of 2015. The decrease was primarily due to our continued focus on lowering costs and lower commodity prices. |
• | General and administrative expenses, excluding non-cash unit-based compensation expenses, were $17.6 million in the first quarter of 2016, compared to $14.5 million in the fourth quarter of 2015. The increase was primarily due to higher employee related costs and professional fees. |
• | Gains on commodity derivative instruments were $37.9 million in the first quarter of 2016 compared to gains of $141.8 million in the fourth quarter of 2015, primarily due to unrealized losses of $97.4 million during the first quarter of 2016 compared to unrealized losses of $2.2 million during the fourth quarter of 2015. Derivative instrument settlement receipts were $135.4 million in the first quarter of 2016 compared to receipts of $144.1 million in the fourth quarter of 2015, primarily due to lower hedged volumes. |
• | NYMEX WTI oil spot prices averaged $33.35 per Bbl and Brent oil spot prices averaged $33.84 per Bbl in the first quarter of 2016 compared to $41.94 per Bbl and $43.56 per Bbl, respectively, in the fourth quarter of 2015. Henry Hub natural gas spot prices averaged $1.99 per Mcf in the first quarter of 2016 compared to $2.12 per Mcf in the fourth quarter of 2015. |
• | Average realized crude oil, NGL, and natural gas prices, excluding the effects of commodity derivative settlements, were $29.37 per Bbl, $10.81 per Bbl and $2.05 per Mcf, respectively, in the first quarter of 2016 compared to $37.31 per Bbl, $13.03 per Bbl and $2.32 per Mcf, respectively, in the fourth quarter of 2015. |
• | Oil, NGL and natural gas capital expenditures were approximately $16 million in the first quarter of 2016 compared to $36 million in the fourth quarter of 2015. |
1
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 and distributable cash flow presented.
2
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, 2016 and 2015, and the three months ended December 31, 2015:
Three Months Ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
Thousands of dollars, except as indicated | 2016 | 2015 | 2015 | |||||||||
Oil sales | $ | 78,358 | $ | 108,024 | $ | 123,843 | ||||||
NGL sales | 5,382 | 6,852 | 7,591 | |||||||||
Natural gas sales | 21,710 | 24,812 | 31,189 | |||||||||
Gain on commodity derivative instruments | 37,923 | 141,842 | 137,192 | |||||||||
Other revenues, net | 4,593 | 5,934 | 6,469 | |||||||||
Total revenues | 147,966 | 287,464 | 306,284 | |||||||||
Lease operating expenses (a) | 79,842 | 90,563 | 100,079 | |||||||||
Production and property taxes (b) | 9,909 | 9,033 | 13,544 | |||||||||
Total lease operating expenses | 89,751 | 99,596 | 113,623 | |||||||||
Purchases and other operating costs | 2,618 | 2,119 | 158 | |||||||||
Salt water disposal costs | 2,980 | 2,408 | 4,021 | |||||||||
Change in inventory | (375 | ) | 2,116 | 176 | ||||||||
Total operating costs | 94,974 | 106,239 | 117,978 | |||||||||
Lease operating expenses before taxes, per Boe (a)(c) | 16.29 | 17.74 | 19.81 | |||||||||
Production and property taxes per Boe (b) | 2.04 | 1.77 | 2.68 | |||||||||
Total lease operating expenses per Boe | 18.33 | 19.51 | 22.49 | |||||||||
General and administrative expenses (excluding non-cash unit-based compensation) | 17,616 | 14,508 | 25,335 | |||||||||
Net loss attributable to the partnership | $ | (103,786 | ) | $ | (890,878 | ) | $ | (58,825 | ) | |||
Basic net loss per unit | $ | (0.54 | ) | $ | (4.25 | ) | $ | (0.29 | ) | |||
Diluted net loss per unit | $ | (0.54 | ) | $ | (4.25 | ) | $ | (0.29 | ) | |||
Total production (MBoe) (d) | 4,848 | 5,106 | 5,051 | |||||||||
Oil (MBbl) | 2,589 | 2,795 | 2,890 | |||||||||
NGLs (MBbl) | 498 | 526 | 459 | |||||||||
Natural gas (MMcf) | 10,567 | 10,712 | 10,211 | |||||||||
Average daily production (Boe/d) | 53,275 | 55,500 | 56,122 | |||||||||
Sales volumes (MBoe) (e)(f)(g) | 4,927 | 5,151 | 4,999 | |||||||||
Average realized sales price (per Boe) (g) | $ | 21.40 | $ | 26.72 | $ | 32.52 | ||||||
Oil (per Bbl) (g) | 29.37 | 37.31 | 43.62 | |||||||||
NGLs (per Bbl) (g) | 10.81 | 13.03 | 16.54 | |||||||||
Natural gas (per Mcf) (g) | $ | 2.05 | $ | 2.32 | $ | 3.05 | ||||||
(a) | Includes district expenses, processing fees, and transportation expenses. | |||||
(b) | Includes ad valorem and severance taxes. | |||||
(c) | Excludes non-cash unit-based compensation expenses of $0.9 million for the three months ended March 31, 2016. | |||||
(d) | 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. | |||||
(e) | Oil sales were 2,668 MBbl, 2,841 MBbl and 2,837 MBbl for the three months ended March 31, 2016, December 31, 2015 and March 31, 2015, respectively. | |||||
(f) | Includes 90 MBoe of condensate purchased from third parties during the three months ended March 31, 2016. | |||||
(g) | Excludes the effect of commodity derivative settlements. | |||||
3
Non-GAAP Financial Measures
This press release, including the financial tables and other supplemental information and 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 breitburn.com.
“Adjusted EBITDA” is among the non-GAAP financial measures used in this press release. This non-GAAP financial measure should not be considered as an alternative 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 this non-GAAP financial measure enhances 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. This non-GAAP financial measure 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 in the same manner.
4
Adjusted EBITDA
The following table presents a reconciliation of net 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 | 2016 | 2015 | 2015 | |||||||||
Reconciliation of net loss to Adjusted EBITDA: | ||||||||||||
Net loss attributable to the partnership | $ | (103,786 | ) | $ | (890,878 | ) | $ | (58,825 | ) | |||
Gain on commodity derivative instruments | (37,923 | ) | (141,842 | ) | (137,192 | ) | ||||||
Commodity derivative instrument settlements (a) (b) | 135,360 | 144,083 | 126,357 | |||||||||
Depletion, depreciation and amortization expense | 83,723 | 123,312 | 109,824 | |||||||||
Impairment of oil and natural gas properties | 2,793 | 878,335 | 59,113 | |||||||||
Interest expense and other financing costs | 58,332 | 50,319 | 41,477 | |||||||||
(Gain) loss on sale of assets | (12,260 | ) | (1,542 | ) | 15 | |||||||
Income tax (benefit) expense | (95 | ) | 1,162 | 92 | ||||||||
Unit-based compensation expense (c) | 4,673 | 6,091 | 6,927 | |||||||||
Restructuring costs - unit-based compensation (c) | 638 | — | 814 | |||||||||
Adjusted EBITDA | $ | 131,455 | $ | 169,040 | $ | 148,602 | ||||||
Reconciliation of net cash flows from operating activities to Adjusted EBITDA: | ||||||||||||
Net cash provided by operating activities | $ | 126,809 | $ | 85,521 | $ | 141,149 | ||||||
(Decrease) increase in assets net of liabilities relating to operating activities | (44,142 | ) | 35,665 | (30,968 | ) | |||||||
Interest expense (d) | 48,846 | 48,364 | 38,729 | |||||||||
Income from equity affiliates, net | 90 | 94 | (325 | ) | ||||||||
Noncontrolling interest | 220 | (202 | ) | — | ||||||||
Income taxes | 44 | (413 | ) | 93 | ||||||||
(Loss) gain on marketable securities | (412 | ) | 11 | (76 | ) | |||||||
Adjusted EBITDA | $ | 131,455 | $ | 169,040 | $ | 148,602 | ||||||
(a) | Excludes premiums paid at contract inception related to those derivative contracts that settled during the applicable periods of: | $ | 2,086 | $ | 1,682 | $ | 1,645 | ||||||
(b) | Includes net cash settlements on derivative instruments for: | ||||||||||||
- Oil settlements received: | $ | 121,988 | $ | 123,492 | $ | 111,879 | |||||||
- Natural gas settlements received: | 13,372 | 20,592 | 14,478 | ||||||||||
(c) | Represents non-cash long-term unit-based incentive compensation expense. | ||||||||||||
(d) | Excludes amortization of debt issuance costs and amortization of senior note discount/premium. | ||||||||||||
5
Summary of Commodity Derivative Instruments
The table below summarizes Breitburn’s commodity derivative hedge portfolio as of May 6, 2016. Please refer to the Commodity Price Protection Portfolio at breitburn.com for additional information related to our hedge portfolio.
Year | ||||||||||||||||
2016 | 2017 | 2018 | 2019 | |||||||||||||
Oil Positions: | ||||||||||||||||
Fixed Price Swaps - NYMEX WTI | ||||||||||||||||
Volume (Bbl/d) | 17,404 | 14,519 | 1,493 | 1,000 | ||||||||||||
Average Price ($/Bbl) | $ | 82.92 | $ | 82.81 | $ | 64.02 | $ | 56.35 | ||||||||
Fixed Price Swaps - ICE Brent | ||||||||||||||||
Volume (Bbl/d) | 4,300 | 298 | — | — | ||||||||||||
Average Price ($/Bbl) | $ | 95.17 | $ | 97.50 | $ | — | $ | — | ||||||||
Collars - NYMEX WTI | ||||||||||||||||
Volume (Bbl/d) | 1,500 | — | — | — | ||||||||||||
Average Floor Price ($/Bbl) | $ | 80.00 | $ | — | $ | — | $ | — | ||||||||
Average Ceiling Price ($/Bbl) | $ | 102.00 | $ | — | $ | — | $ | — | ||||||||
Collars - ICE Brent | ||||||||||||||||
Volume (Bbl/d) | 500 | — | — | — | ||||||||||||
Average Floor Price ($/Bbl) | $ | 90.00 | $ | — | $ | — | $ | — | ||||||||
Average Ceiling Price ($/Bbl) | $ | 101.25 | $ | — | $ | — | $ | — | ||||||||
Puts - NYMEX WTI | ||||||||||||||||
Volume (Bbl/d) | 1,000 | — | — | — | ||||||||||||
Average Price ($/Bbl) | $ | 90.00 | $ | — | $ | — | $ | — | ||||||||
Total: | ||||||||||||||||
Volume (Bbl/d) | 24,704 | 14,817 | 1,493 | 1,000 | ||||||||||||
Average Price ($/Bbl) | $ | 85.31 | $ | 83.11 | $ | 64.02 | $ | 56.35 | ||||||||
Gas Positions: | ||||||||||||||||
Fixed Price Swaps - MichCon City-Gate | ||||||||||||||||
Volume (MMBtu/d) | 29,000 | 24,000 | 17,500 | 10,000 | ||||||||||||
Average Price ($/MMBtu) | $ | 3.91 | $ | 3.71 | $ | 3.10 | $ | 3.15 | ||||||||
Fixed Price Swaps - Henry Hub | ||||||||||||||||
Volume (MMBtu/d) | 42,050 | 21,016 | 2,870 | — | ||||||||||||
Average Price ($/MMBtu) | $ | 4.02 | $ | 4.29 | $ | 3.74 | $ | — | ||||||||
Collars - Henry Hub | ||||||||||||||||
Volume (MMBtu/d) | 630 | 595 | — | — | ||||||||||||
Average Floor Price ($/MMBtu) | $ | 4.00 | $ | 4.00 | $ | — | $ | — | ||||||||
Average Ceiling Price ($/MMBtu) | $ | 5.55 | $ | 6.15 | $ | — | $ | — | ||||||||
Puts - Henry Hub | ||||||||||||||||
Volume (MMBtu/d) | 11,350 | 10,445 | — | — | ||||||||||||
Average Price ($/MMBtu) | $ | 4.00 | $ | 4.00 | $ | — | $ | — | ||||||||
Deferred Premium ($/MMBtu) | $ | 0.66 | $ | 0.69 | $ | — | $ | — | ||||||||
Total: | ||||||||||||||||
Volume (MMBtu/d) | 83,030 | 56,056 | 20,370 | 10,000 | ||||||||||||
Average Price ($/MMBtu) | $ | 3.98 | $ | 3.98 | $ | 3.19 | $ | 3.15 | ||||||||
Premiums paid in 2012 related to oil and natural gas derivatives to be settled beyond March 31, 2016 were as follows:
Year | ||||||||
Thousands of dollars | 2016 | 2017 | ||||||
Oil | $ | 5,589 | $ | 734 | ||||
Natural gas | 715 | — | ||||||
6
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 Ark-La-Tex; the Midwest; the Permian Basin; the Mid-Continent; the Rockies; the Southeast; 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,” “will be,” “forecast” 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; changes in our business strategy, level of indebtedness and periodic redeterminations of the borrowing base under our credit facility and any deficiency that would have to be repaid; ability to continue to borrow under the credit facility; potential need to sell certain assets, restructure our debt, raise additional capital or seek bankruptcy protection; our future levels of indebtedness, liquidity, compliance with financial covenants and our ability to continue as a going concern; 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
7
Breitburn Energy Partners LP and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
March 31, | December 31, | |||||||
Thousands of dollars | 2016 | 2015 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 81,691 | $ | 10,464 | ||||
Accounts and other receivables, net | 113,215 | 128,589 | ||||||
Derivative instruments | 388,829 | 439,627 | ||||||
Related party receivables | 1,518 | 2,274 | ||||||
Inventory | 1,345 | 926 | ||||||
Prepaid expenses | 3,470 | 6,447 | ||||||
Total current assets | 590,068 | 588,327 | ||||||
Equity investments | 6,657 | 6,567 | ||||||
Property, plant and equipment | ||||||||
Oil and natural gas properties | 7,855,082 | 7,898,117 | ||||||
Other property, plant and equipment | 194,876 | 188,795 | ||||||
8,049,958 | 8,086,912 | |||||||
Accumulated depletion and depreciation | (4,185,936 | ) | (4,154,030 | ) | ||||
Net property, plant and equipment | 3,864,022 | 3,932,882 | ||||||
Other long-term assets | ||||||||
Derivative instruments | 179,658 | 226,764 | ||||||
Other long-term assets | 74,981 | 80,847 | ||||||
Total assets | $ | 4,715,386 | $ | 4,835,387 | ||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 42,169 | $ | 50,412 | ||||
Current portion of long-term debt | 172,000 | 154,000 | ||||||
Derivative instruments | 4,309 | 4,462 | ||||||
Distributions payable | 733 | 733 | ||||||
Current portion of asset retirement obligation | 1,679 | 2,341 | ||||||
Revenue and royalties payable | 33,476 | 35,462 | ||||||
Wages and salaries payable | 12,928 | 21,654 | ||||||
Accrued interest payable | 61,415 | 19,517 | ||||||
Production and property taxes payable | 20,178 | 24,292 | ||||||
Other current liabilities | 7,834 | 5,133 | ||||||
Total current liabilities | 356,721 | 318,006 | ||||||
Credit facility | 1,025,000 | 1,075,000 | ||||||
Senior notes, net | 1,754,840 | 1,752,194 | ||||||
Other long-term debt | 3,779 | 3,148 | ||||||
Total long-term debt | 2,783,619 | 2,830,342 | ||||||
Deferred income taxes | 3,704 | 3,844 | ||||||
Asset retirement obligation | 247,956 | 252,037 | ||||||
Derivative instruments | 752 | 255 | ||||||
Other long-term liabilities | 19,751 | 25,008 | ||||||
Total liabilities | 3,412,503 | 3,429,492 | ||||||
Equity | ||||||||
Series A preferred units, 8.0 million units issued and outstanding at March 31, 2016 and December 31, 2015 | 193,215 | 193,215 | ||||||
Series B preferred units, 49.6 million and 48.8 million units issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 359,611 | 353,471 | ||||||
Common units, 213.7 million and 213.5 million units issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 742,713 | 852,114 | ||||||
Accumulated other comprehensive income (loss) | 49 | (229 | ) | |||||
Total partners' equity | 1,295,588 | 1,398,571 | ||||||
Noncontrolling interest | 7,295 | 7,324 | ||||||
Total equity | 1,302,883 | 1,405,895 | ||||||
Total liabilities and equity | $ | 4,715,386 | $ | 4,835,387 | ||||
8
Breitburn Energy Partners LP and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three Months Ended | ||||||||
March 31, | ||||||||
Thousands of dollars, except per unit amounts | 2016 | 2015 | ||||||
Revenues and other income items | ||||||||
Oil, natural gas and natural gas liquid sales | $ | 105,450 | $ | 162,623 | ||||
Gain on commodity derivative instruments, net | 37,923 | 137,192 | ||||||
Other revenue, net | 4,593 | 6,469 | ||||||
Total revenues and other income items | 147,966 | 306,284 | ||||||
Operating costs and expenses | ||||||||
Operating costs | 94,974 | 117,978 | ||||||
Depletion, depreciation and amortization | 83,723 | 109,824 | ||||||
Impairment of oil and natural gas properties | 2,793 | 59,113 | ||||||
General and administrative expenses | 21,414 | 32,262 | ||||||
Restructuring costs | 2,809 | 4,918 | ||||||
(Gain) loss on sale of assets | (12,260 | ) | 15 | |||||
Total operating costs and expenses | 193,453 | 324,110 | ||||||
Operating loss | (45,487 | ) | (17,826 | ) | ||||
Interest expense, net of capitalized interest | 55,989 | 39,665 | ||||||
Loss on interest rate swaps | 2,343 | 1,812 | ||||||
Other expense (income), net | 282 | (477 | ) | |||||
Total other expense | 58,614 | 41,000 | ||||||
Loss before taxes | (104,101 | ) | (58,826 | ) | ||||
Income tax (benefit) expense | (95 | ) | 92 | |||||
Net loss | (104,006 | ) | (58,918 | ) | ||||
Less: Net loss attributable to noncontrolling interest | (220 | ) | (93 | ) | ||||
Net loss attributable to the partnership | (103,786 | ) | (58,825 | ) | ||||
Less: Distributions to Series A preferred unitholders | 4,125 | 4,125 | ||||||
Less: Non-cash distributions to Series B preferred unitholders | 7,386 | — | ||||||
Less: Net loss attributable to participating units | — | (1,432 | ) | |||||
Net loss used to calculate basic and diluted net loss per unit | $ | (115,297 | ) | $ | (61,518 | ) | ||
Basic net loss per common unit | $ | (0.54 | ) | $ | (0.29 | ) | ||
Diluted net loss per common unit | $ | (0.54 | ) | $ | (0.29 | ) | ||
Weighted average number of units used to calculate basic and diluted net loss per unit (in thousands): | ||||||||
Basic | 213,661 | 210,931 | ||||||
Diluted | 213,661 | 210,931 | ||||||
9
Breitburn Energy Partners LP and Subsidiaries
Consolidated Statements of Comprehensive Loss
(Unaudited)
Three Months Ended March 31, | ||||||||
Thousands of dollars, except per unit amounts | 2016 | 2015 | ||||||
Net loss | $ | (104,006 | ) | $ | (58,918 | ) | ||
Other comprehensive income, net of tax: | ||||||||
Change in fair value of available-for-sale securities (a) | 470 | 173 | ||||||
Total other comprehensive income | 470 | 173 | ||||||
Total comprehensive loss | (103,536 | ) | (58,745 | ) | ||||
Less: Comprehensive loss attributable to noncontrolling interest | (28 | ) | (23 | ) | ||||
Comprehensive loss attributable to the partnership | $ | (103,508 | ) | $ | (58,722 | ) | ||
(a) Net of income taxes of $0.2 million and $0.1 million for the three months ended March 31, 2016 and 2015, respectively.
10
Breitburn Energy Partners LP and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended March 31, | ||||||||
Thousands of dollars | 2016 | 2015 | ||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (104,006 | ) | $ | (58,918 | ) | ||
Adjustments to reconcile cash flows from operating activities: | ||||||||
Depletion, depreciation and amortization | 83,723 | 109,824 | ||||||
Impairment of oil and natural gas properties | 2,793 | 59,113 | ||||||
Unit-based compensation expense | 5,311 | 7,741 | ||||||
Gain on derivative instruments | (35,580 | ) | (135,380 | ) | ||||
Derivative instrument settlement receipts | 133,828 | 124,904 | ||||||
Income from equity affiliates, net | (90 | ) | 325 | |||||
Deferred income taxes | (140 | ) | 168 | |||||
(Gain) loss on sale of assets | (12,260 | ) | 15 | |||||
Other | 8,182 | (41 | ) | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable and other assets | 12,109 | 30,043 | ||||||
Inventory | (419 | ) | (185 | ) | ||||
Net change in related party receivables and payables | 756 | 2,462 | ||||||
Accounts payable and other liabilities | 32,602 | 1,078 | ||||||
Net cash provided by operating activities | 126,809 | 141,149 | ||||||
Cash flows from investing activities | ||||||||
Property acquisitions | (3,942 | ) | (13,993 | ) | ||||
Capital expenditures | (26,965 | ) | (97,230 | ) | ||||
Proceeds from sale of assets | 11,796 | — | ||||||
Proceeds from sale of available-for-sale securities | 5,118 | — | ||||||
Purchases of available-for-sale securities | (5,416 | ) | — | |||||
Other | — | (853 | ) | |||||
Net cash used in investing activities | (19,409 | ) | (112,076 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from issuance of common units, net | — | (63 | ) | |||||
Distributions to preferred unitholders | (4,126 | ) | (4,125 | ) | ||||
Distributions to common unitholders | — | (54,122 | ) | |||||
Proceeds from issuance of long-term debt, net | 37,000 | 193,600 | ||||||
Repayments of long-term debt | (69,000 | ) | (168,500 | ) | ||||
Principal payments on capital lease obligations | (19 | ) | — | |||||
Change in book overdraft | (25 | ) | 199 | |||||
Debt issuance costs | (3 | ) | — | |||||
Net cash used in financing activities | (36,173 | ) | (33,011 | ) | ||||
Increase (decrease) in cash | 71,227 | (3,938 | ) | |||||
Cash beginning of period | 10,464 | 12,628 | ||||||
Cash end of period | $ | 81,691 | $ | 8,690 | ||||
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