Attached files
| file | filename |
|---|---|
| EX-99.3 - EX-99.3 - ENERGEN CORP | d235652dex993.htm |
| EX-99.1 - EX-99.1 - ENERGEN CORP | d235652dex991.htm |
| 8-K - 8-K - ENERGEN CORP | d235652d8k.htm |
Exhibit 99.2
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 3 months ending June 30, 2016 and 2015
| 2nd Quarter | ||||||||||||
| (in thousands, except per share data) |
2016 | 2015 | Change | |||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 171,637 | $ | 219,290 | $ | (47,653 | ) | |||||
| Loss on derivative instruments, net |
(65,872 | ) | (50,964 | ) | (14,908 | ) | ||||||
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|
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|
|||||||
| Total revenues |
105,765 | 168,326 | (62,561 | ) | ||||||||
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|
|||||||
| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
42,840 | 53,581 | (10,741 | ) | ||||||||
| Production and ad valorem taxes |
11,265 | 13,352 | (2,087 | ) | ||||||||
| Depreciation, depletion and amortization |
117,035 | 149,843 | (32,808 | ) | ||||||||
| Asset impairment |
— | 60,413 | (60,413 | ) | ||||||||
| Exploration |
1,520 | 11,018 | (9,498 | ) | ||||||||
| General and administrative (including non-cash stock based compensation of $5,504 and $6,027 for the three months ended June 30, 2016, and 2015, respectively) |
23,548 | 38,652 | (15,104 | ) | ||||||||
| Accretion of discount on asset retirement obligations |
1,779 | 1,669 | 110 | |||||||||
| (Gain) loss on sale of assets and other |
(161,097 | ) | 1,476 | (162,573 | ) | |||||||
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|||||||
| Total operating costs and expenses |
36,890 | 330,004 | (293,114 | ) | ||||||||
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|
|||||||
| Operating Income (Loss) |
68,875 | (161,678 | ) | 230,553 | ||||||||
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| Other Income (Expense) |
||||||||||||
| Interest expense |
(9,038 | ) | (11,244 | ) | 2,206 | |||||||
| Other income |
63 | 41 | 22 | |||||||||
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|||||||
| Total other expense |
(8,975 | ) | (11,203 | ) | 2,228 | |||||||
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|
|||||||
| Income (Loss) Before Income Taxes |
59,900 | (172,881 | ) | 232,781 | ||||||||
| Income tax expense (benefit) |
23,141 | (61,280 | ) | 84,421 | ||||||||
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| Net Income (Loss) |
$ | 36,759 | $ | (111,601 | ) | $ | 148,360 | |||||
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| Diluted Earnings Per Average Common Share |
$ | 0.38 | $ | (1.52 | ) | $ | 1.90 | |||||
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| Basic Earnings Per Average Common Share |
$ | 0.38 | $ | (1.52 | ) | $ | 1.90 | |||||
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|||||||
| Diluted Average Common Shares Outstanding |
97,389 | 73,452 | 23,937 | |||||||||
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| Basic Average Common Shares Outstanding |
97,067 | 73,452 | 23,615 | |||||||||
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| Dividends Per Common Share |
$ | — | $ | 0.02 | $ | (0.02 | ) | |||||
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CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 6 months ending June 30, 2016 and 2015
| Year-to-date | ||||||||||||
| (in thousands, except per share data) |
2016 | 2015 | Change | |||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 294,401 | $ | 407,112 | $ | (112,711 | ) | |||||
| Loss on derivative instruments, net |
(60,417 | ) | (16,928 | ) | (43,489 | ) | ||||||
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|
|||||||
| Total revenues |
233,984 | 390,184 | (156,200 | ) | ||||||||
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|
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| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
90,567 | 121,335 | (30,768 | ) | ||||||||
| Production and ad valorem taxes |
22,435 | 32,417 | (9,982 | ) | ||||||||
| Depreciation, depletion and amortization |
236,397 | 284,224 | (47,827 | ) | ||||||||
| Asset impairment |
220,025 | 66,996 | 153,029 | |||||||||
| Exploration |
1,762 | 11,781 | (10,019 | ) | ||||||||
| General and administrative (including non-cash stock based compensation of $7,975 and $11,107 for the six months ended June 30, 2016, and 2015, respectively) |
53,073 | 70,707 | (17,634 | ) | ||||||||
| Accretion of discount on asset retirement obligations |
3,536 | 3,679 | (143 | ) | ||||||||
| Gain (loss) on sale of assets and other |
(160,875 | ) | (26,868 | ) | (134,007 | ) | ||||||
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|||||||
| Total operating costs and expenses |
466,920 | 564,271 | (97,351 | ) | ||||||||
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| Operating Loss |
(232,936 | ) | (174,087 | ) | (58,849 | ) | ||||||
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| Other Income (Expense) |
||||||||||||
| Interest expense |
(18,871 | ) | (23,002 | ) | 4,131 | |||||||
| Other income |
159 | 87 | 72 | |||||||||
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|||||||
| Total other expense |
(18,712 | ) | (22,915 | ) | 4,203 | |||||||
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| Loss Before Income Taxes |
(251,648 | ) | (197,002 | ) | (54,646 | ) | ||||||
| Income tax benefit |
(85,291 | ) | (69,981 | ) | (15,310 | ) | ||||||
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| Net Loss |
$ | (166,357 | ) | $ | (127,021 | ) | $ | (39,336 | ) | |||
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| Diluted Earnings Per Average Common Share |
$ | (1.81 | ) | $ | (1.74 | ) | $ | (0.07 | ) | |||
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| Basic Earnings Per Average Common Share |
$ | (1.81 | ) | $ | (1.74 | ) | $ | (0.07 | ) | |||
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| Diluted Average Common Shares Outstanding |
91,850 | 73,143 | 18,707 | |||||||||
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| Basic Average Common Shares Outstanding |
91,850 | 73,143 | 18,707 | |||||||||
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| Dividends Per Common Share |
$ | — | $ | 0.04 | $ | (0.04 | ) | |||||
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of June 30, 2016 and December 31, 2015
| (in thousands) |
June 30, 2016 | December 31, 2015 | ||||||
| ASSETS |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ | 309,889 | $ | 1,272 | ||||
| Accounts receivable, net |
76,119 | 63,097 | ||||||
| Inventories |
12,596 | 11,255 | ||||||
| Assets held for sale |
176,914 | 93,739 | ||||||
| Derivative instruments |
3,235 | 56,963 | ||||||
| Prepayments and other |
7,087 | 20,014 | ||||||
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| Total current assets |
585,840 | 246,340 | ||||||
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| Property, Plant and Equipment |
||||||||
| Oil and natural gas properties, net |
3,858,918 | 4,302,332 | ||||||
| Other property and equipment, net |
45,755 | 48,358 | ||||||
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| Total property, plant and equipment, net |
3,904,673 | 4,350,690 | ||||||
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| Other postretirement assets |
4,358 | 3,881 | ||||||
| Other assets |
9,866 | 10,245 | ||||||
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| TOTAL ASSETS |
$ | 4,504,737 | $ | 4,611,156 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current Liabilities |
||||||||
| Accounts payable |
53,108 | 64,742 | ||||||
| Accrued taxes |
16,684 | 5,801 | ||||||
| Accrued wages and benefits |
13,386 | 28,563 | ||||||
| Accrued capital costs |
40,347 | 79,206 | ||||||
| Revenue and royalty payable |
57,979 | 60,493 | ||||||
| Liabilities related to assets held for sale |
13,279 | 12,789 | ||||||
| Pension liabilities |
— | 15,685 | ||||||
| Derivative instruments |
46,452 | 459 | ||||||
| Other |
19,344 | 19,783 | ||||||
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| Total current liabilities |
260,579 | 287,521 | ||||||
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| Long-term debt |
551,245 | 773,550 | ||||||
| Asset retirement obligations |
91,473 | 89,990 | ||||||
| Deferred income taxes |
460,424 | 552,369 | ||||||
| Noncurrent derivative instruments |
12,875 | — | ||||||
| Other long-term liabilities |
11,910 | 11,866 | ||||||
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| Total liabilities |
1,388,506 | 1,715,296 | ||||||
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| Total Shareholders’ Equity |
3,116,231 | 2,895,860 | ||||||
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| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 4,504,737 | $ | 4,611,156 | ||||
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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending June 30, 2016 and 2015
| 2nd Quarter | ||||||||||||
| (in thousands, except sales price and per unit data) |
2016 | 2015 | Change | |||||||||
| Operating and production data |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
||||||||||||
| Oil |
$ | 146,360 | $ | 188,599 | $ | (42,239 | ) | |||||
| Natural gas liquids |
13,928 | 14,781 | (853 | ) | ||||||||
| Natural gas |
11,349 | 15,910 | (4,561 | ) | ||||||||
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| Total |
$ | 171,637 | $ | 219,290 | $ | (47,653 | ) | |||||
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| Open non-cash mark-to-market gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (54,729 | ) | $ | (103,734 | ) | $ | 49,005 | ||||
| Natural gas |
(5,896 | ) | (13,133 | ) | 7,237 | |||||||
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| Total |
$ | (60,625 | ) | $ | (116,867 | ) | $ | 56,242 | ||||
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| Closed gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (6,297 | ) | $ | 55,330 | $ | (61,627 | ) | ||||
| Natural gas |
1,050 | 10,573 | (9,523 | ) | ||||||||
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| Total |
$ | (5,247 | ) | $ | 65,903 | $ | (71,150 | ) | ||||
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| Total revenues |
$ | 105,765 | $ | 168,326 | $ | (62,561 | ) | |||||
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| Production volumes |
||||||||||||
| Oil (MBbl) |
3,558 | 3,594 | (36 | ) | ||||||||
| Natural gas liquids (MMgal) |
44.8 | 44.9 | (0.1 | ) | ||||||||
| Natural gas (MMcf) |
7,296 | 7,134 | 162 | |||||||||
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| Total production volumes (MBOE) |
5,841 | 5,853 | (12 | ) | ||||||||
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| Average daily production volumes |
||||||||||||
| Oil (MBbl/d) |
39.1 | 39.5 | (0.4 | ) | ||||||||
| Natural gas liquids (MMgal/d) |
0.5 | 0.5 | — | |||||||||
| Natural gas (MMcf/d) |
80.2 | 78.4 | 1.8 | |||||||||
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| Total average daily production volumes (MBOE/d) |
64.2 | 64.3 | (0.1 | ) | ||||||||
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| Average realized prices excluding effects of open non-cash mark-to-market derivative instruments |
||||||||||||
| Oil (per barrel) |
$ | 39.37 | $ | 67.87 | $ | (28.50 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.31 | $ | 0.33 | $ | (0.02 | ) | |||||
| Natural gas (per Mcf) |
$ | 1.70 | $ | 3.71 | $ | (2.01 | ) | |||||
| Average realized prices excluding effects of all derivative instruments |
||||||||||||
| Oil (per barrel) |
$ | 41.14 | $ | 52.48 | $ | (11.34 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.31 | $ | 0.33 | $ | (0.02 | ) | |||||
| Natural gas (per Mcf) |
$ | 1.56 | $ | 2.23 | $ | (0.67 | ) | |||||
| Costs per BOE |
||||||||||||
| Oil, natural gas liquids and natural gas production expenses |
$ | 7.34 | $ | 9.15 | $ | (1.81 | ) | |||||
| Production and ad valorem taxes |
$ | 1.93 | $ | 2.28 | $ | (0.35 | ) | |||||
| Depreciation, depletion and amortization |
$ | 20.04 | $ | 25.60 | $ | (5.56 | ) | |||||
| Exploration expense |
$ | 0.26 | $ | 1.88 | $ | (1.62 | ) | |||||
| General and administrative |
$ | 4.03 | $ | 6.60 | $ | (2.57 | ) | |||||
| Capital expenditures |
$ | 92,962 | $ | 300,178 | $ | (207,216 | ) | |||||
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 6 months ending June 30, 2016 and 2015
| Year-to-Date | ||||||||||||
| (in thousands, except sales price and per unit data) |
2016 | 2015 | Change | |||||||||
| Operating and production data |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
||||||||||||
| Oil |
$ | 248,517 | $ | 330,627 | $ | (82,110 | ) | |||||
| Natural gas liquids |
22,517 | 25,615 | (3,098 | ) | ||||||||
| Natural gas |
23,367 | 50,870 | (27,503 | ) | ||||||||
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| Total |
$ | 294,401 | $ | 407,112 | $ | (112,711 | ) | |||||
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|
|||||||
| Open non-cash mark-to-market gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (56,428 | ) | $ | (155,503 | ) | $ | 99,075 | ||||
| Natural gas |
(4,454 | ) | (21,015 | ) | 16,561 | |||||||
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| Total |
$ | (60,882 | ) | $ | (176,518 | ) | $ | 115,636 | ||||
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| Closed gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (1,203 | ) | $ | 132,813 | $ | (134,016 | ) | ||||
| Natural gas |
1,668 | 26,777 | (25,109 | ) | ||||||||
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| Total |
$ | 465 | $ | 159,590 | $ | (159,125 | ) | |||||
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|||||||
| Total revenues |
$ | 233,984 | $ | 390,184 | $ | (156,200 | ) | |||||
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|
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| Production volumes |
||||||||||||
| Oil (MBbl) |
6,944 | 6,829 | 115 | |||||||||
| Natural gas liquids (MMgal) |
84.8 | 81.1 | 3.7 | |||||||||
| Natural gas (MMcf) |
14,742 | 20,412 | (5,670 | ) | ||||||||
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| Total production volumes (MBOE) |
11,421 | 12,162 | (741 | ) | ||||||||
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|||||||
| Average daily production volumes |
||||||||||||
| Oil (MBbl/d) |
38.2 | 37.7 | 0.5 | |||||||||
| Natural gas liquids (MMgal/d) |
0.5 | 0.5 | — | |||||||||
| Natural gas (MMcf/d) |
81.0 | 112.8 | (31.8 | ) | ||||||||
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|||||||
| Total average daily production volumes (MBOE/d) |
62.8 | 67.2 | (4.4 | ) | ||||||||
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| Average realized prices excluding effects of open non-cash mark-to-market derivative instruments |
||||||||||||
| Oil (per barrel) |
$ | 35.62 | $ | 67.86 | $ | (32.24 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.27 | $ | 0.32 | $ | (0.05 | ) | |||||
| Natural gas (per Mcf) |
$ | 1.70 | $ | 3.80 | $ | (2.10 | ) | |||||
| Average realized prices excluding effects of all derivative instruments |
||||||||||||
| Oil (per barrel) |
$ | 35.79 | $ | 48.42 | $ | (12.63 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.27 | $ | 0.32 | $ | (0.05 | ) | |||||
| Natural gas (per Mcf) |
$ | 1.59 | $ | 2.49 | $ | (0.90 | ) | |||||
| Costs per BOE |
||||||||||||
| Oil, natural gas liquids and natural gas production expenses |
$ | 7.93 | $ | 9.98 | $ | (2.05 | ) | |||||
| Production and ad valorem taxes |
$ | 1.96 | $ | 2.67 | $ | (0.71 | ) | |||||
| Depreciation, depletion and amortization |
$ | 20.70 | $ | 23.37 | $ | (2.67 | ) | |||||
| Exploration expense |
$ | 0.15 | $ | 0.97 | $ | (0.82 | ) | |||||
| General and administrative |
$ | 4.65 | $ | 5.81 | $ | (1.16 | ) | |||||
| Capital expenditures |
$ | 217,050 | $ | 678,282 | $ | (461,232 | ) | |||||