Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - ENERGEN CORP | d235652dex992.htm |
| EX-99.1 - EX-99.1 - ENERGEN CORP | d235652dex991.htm |
| 8-K - 8-K - ENERGEN CORP | d235652d8k.htm |
Exhibit 99.3
Non-GAAP Financial Measures
Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes the effects of certain non-cash mark-to-market derivative financial instruments. Adjusted income from continuing operations further excludes impairment losses, expenses related to the 2016 reductions in force, certain pension and pension settlement expenses and income and losses associated with 2016 property sales (closed and pending). Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.
| Three Months Ended 6/30/2016 | ||||||||
| Energen Net Income ($ in millions except per share data) |
Net Income | Per Diluted Share |
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| Net Income All Operations (GAAP) |
36.8 | 0.38 | ||||||
| Non-cash mark-to-market losses (net of $21.5 tax) |
39.1 | 0.40 | ||||||
| Reduction in force expenses (net of $0.3 tax) |
0.6 | 0.01 | ||||||
| Income associated with 2016 property sales (net of $58.2 tax) |
(103.5 | ) | (1.06 | ) | ||||
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| Adjusted Income from Continuing Operations (Non-GAAP) |
(27.1 | ) | (0.28 | ) | ||||
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| Three Months Ended 6/30/2015 | ||||||||
| Energen Net Income ($ in millions except per share data) |
Net Income | Per Diluted Share |
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| Net Income (Loss) All Operations (GAAP) |
(111.6 | ) | (1.52 | ) | ||||
| Non-cash mark-to-market losses (net of $41.7 tax) |
75.1 | 1.02 | ||||||
| Asset impairment, other (net of $21.1 tax) |
37.6 | 0.51 | ||||||
| Pension and pension settlement expenses (net of $0.4 tax) |
0.7 | 0.01 | ||||||
| Loss associated with 2016 property sales (net of $5.8 tax) |
10.0 | 0.14 | ||||||
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| Adjusted Income from Continuing Operations (Non-GAAP) |
11.9 | 0.16 | ||||||
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Note: Amounts may not sum due to rounding
Non-GAAP Financial Measures
Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Adjusted EBITDAX from continuing operations further excludes expenses related to the 2016 reductions in force, certain pension and pension settlement expenses, income and losses associated with 2016 property sales (closed and pending), impairment losses and certain non-cash mark-to-market derivative financial instruments. Energen believes these measures allow analysts and investors to understand the financial performance of the company from core business operations, without including the effects of capital structure, tax rates and depreciation. Further, this measure is useful in comparing the company and other oil and gas producing companies.
| Reconciliation To GAAP Information | Three Months Ended 6/30 | |||||||
| ($ in millions) |
2016 | 2015 | ||||||
| Energen Net Income (Loss) (GAAP) |
36.8 | (111.6 | ) | |||||
| (Income) Loss associated with 2016 property sales, net of tax |
(103.5 | ) | 10.0 | |||||
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| Net Income (Loss) Excluding 2016 Property Sales (Non-GAAP) |
(66.8 | ) | (101.6 | ) | ||||
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| Interest expense |
9.0 | 11.2 | ||||||
| Income tax expense (benefit) * |
(35.1 | ) | (55.5 | ) | ||||
| Depreciation, depletion and amortization * |
110.6 | 137.2 | ||||||
| Accretion expense * |
1.5 | 1.4 | ||||||
| Exploration expense * |
1.5 | 0.3 | ||||||
| Adjustment for asset impairment * |
0.0 | 58.7 | ||||||
| Adjustment for mark-to-market losses |
60.6 | 116.9 | ||||||
| Adjustment for reduction in force and pension and pension settlement expenses |
0.9 | 1.1 | ||||||
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| Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP) |
82.3 | 169.8 | ||||||
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Note: Amounts may not sum due to rounding
| * | Amount adjusted to exclude held for sale assets in either current or prior period. See reconciliation to GAAP Information for the Three Months Ended 6/30/2016 and 6/30/2015. |
Non-GAAP Financial Measures
The consolidated statement of income excluding certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated with 2016 property sales (closed and pending) provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this information is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
| Energen Net Income (Loss) Excluding 2016 Property Sales (Closed and Pending) Reconciliation to GAAP Information |
Three Months Ended June 30, 2016 |
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| (in thousands except per share and production data) | GAAP | $/BOE | 2016 Property Sales | Non-GAAP | $/BOE | |||||||||||||||
| Revenues |
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| Oil, natural gas liquids and natural gas sales |
$ | 171,637 | $ | 14,426 | $ | 157,211 | ||||||||||||||
| Gain (loss) on derivative instruments |
(65,872 | ) | — | (65,872 | ) | |||||||||||||||
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| Total Revenues |
105,765 | 14,426 | 91,339 | |||||||||||||||||
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| Operating Costs and Expenses |
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| Oil, natural gas liquids and natural gas production |
42,840 | $ | 7.33 | 5,660 | 37,180 | $ | 7.29 | |||||||||||||
| Production and ad valorem taxes |
11,265 | $ | 1.93 | 1,236 | 10,029 | $ | 1.97 | |||||||||||||
| O&G Depreciation, depletion and amortization |
115,768 | $ | 19.82 | 6,368 | 109,400 | $ | 21.46 | |||||||||||||
| FF&E Depreciation, depletion and amortization |
1,267 | $ | 0.22 | 71 | 1,196 | $ | 0.23 | |||||||||||||
| Asset impairment |
— | — | — | |||||||||||||||||
| Exploration |
1,520 | 32 | 1,488 | |||||||||||||||||
| General and administrative † |
23,548 | $ | 4.03 | 10 | 23,538 | $ | 4.62 | |||||||||||||
| Accretion of discount on asset retirement obligations |
1,779 | 248 | 1,531 | |||||||||||||||||
| (Gain) loss on sale of assets and other |
(161,097 | ) | (160,944 | ) | (153 | ) | ||||||||||||||
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| Total costs and expenses |
36,890 | (147,319 | ) | 184,209 | ||||||||||||||||
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| Operating Income (Loss) |
68,875 | 161,745 | (92,870 | ) | ||||||||||||||||
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| Other Income/(Expense) |
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| Interest expense |
(9,038 | ) | — | (9,038 | ) | |||||||||||||||
| Other income |
63 | (1 | ) | 64 | ||||||||||||||||
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| Total other expense |
(8,975 | ) | (1 | ) | (8,974 | ) | ||||||||||||||
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| Loss Before Income Taxes |
59,900 | 161,744 | (101,844 | ) | ||||||||||||||||
| Income tax expense (benefit) |
23,141 | 58,204 | (35,063 | ) | ||||||||||||||||
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| Net Income (Loss) |
$ | 36,759 | $ | 103,540 | $ | (66,781 | ) | |||||||||||||
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| Diluted Earnings Per Average Common Share |
$ | 0.38 | $ | 1.06 | $ | (0.69 | ) | |||||||||||||
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| Basic earning Per Average Common Share |
$ | 0.38 | $ | 1.06 | $ | (0.69 | ) | |||||||||||||
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| Oil |
3,558 | 238 | 3,320 | |||||||||||||||||
| NGL |
1,067 | 212 | 855 | |||||||||||||||||
| Natural Gas |
1,216 | 292 | 924 | |||||||||||||||||
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| Total Production (mboe) |
5,841 | 742 | 5,099 | |||||||||||||||||
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| Total Production (boepd) |
64,187 | 8,154 | 56,033 | |||||||||||||||||
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Note: Amounts may not sum due to rounding
| † | General and administrative includes $866 or $0.17 per BOE of expense related to the reductions in force |
Non-GAAP Financial Measures
The consolidated statement of income excluding certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated with 2016 property sales (closed and pending) provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this information is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
| Energen Net Income (Loss) Excluding 2016 Property Sales (Closed and Pending) Reconciliation to GAAP Information |
Three Months Ended June 30, 2015 |
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| (in thousands except per share and production data) | GAAP | $/BOE | 2016 Property Sales | Non-GAAP | $/BOE | |||||||||||||||
| Revenues |
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| Oil, natural gas liquids and natural gas sales |
$ | 219,290 | $ | 20,557 | $ | 198,733 | ||||||||||||||
| Gain (loss) on derivative instruments |
(50,964 | ) | — | (50,964 | ) | |||||||||||||||
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| Total Revenues |
168,326 | 20,557 | 147,769 | |||||||||||||||||
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| Operating Costs and Expenses |
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| Oil, natural gas liquids and natural gas production |
53,581 | $ | 9.15 | 7,706 | 45,875 | $ | 9.09 | |||||||||||||
| Production and ad valorem taxes |
13,352 | $ | 2.28 | 1,692 | 11,660 | $ | 2.31 | |||||||||||||
| O&G Depreciation, depletion and amortization |
148,374 | $ | 25.35 | 12,547 | 135,827 | $ | 26.92 | |||||||||||||
| FF&E Depreciation, depletion and amortization |
1,469 | $ | 0.25 | 106 | 1,363 | $ | 0.27 | |||||||||||||
| Asset impairment |
60,413 | 1,725 | 58,688 | |||||||||||||||||
| Exploration |
11,018 | 10,666 | 352 | |||||||||||||||||
| General and administrative † |
38,652 | $ | 6.60 | 525 | 38,127 | $ | 7.56 | |||||||||||||
| Accretion of discount on asset retirement obligations |
1,669 | 237 | 1,432 | |||||||||||||||||
| (Gain) loss on sale of assets and other |
1,476 | 1,148 | 328 | |||||||||||||||||
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| Total costs and expenses |
330,004 | 36,352 | 293,652 | |||||||||||||||||
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| Operating Income (Loss) |
(161,678 | ) | (15,795 | ) | (145,883 | ) | ||||||||||||||
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| Other Income/(Expense) |
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| Interest expense |
(11,244 | ) | — | (11,244 | ) | |||||||||||||||
| Other income |
41 | — | 41 | |||||||||||||||||
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| Total other expense |
(11,203 | ) | — | (11,203 | ) | |||||||||||||||
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| Loss Before Income Taxes |
(172,881 | ) | (15,795 | ) | (157,086 | ) | ||||||||||||||
| Income tax expense (benefit) |
(61,280 | ) | (5,790 | ) | (55,490 | ) | ||||||||||||||
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| Net Income (Loss) |
$ | (111,601 | ) | $ | (10,005 | ) | $ | (101,596 | ) | |||||||||||
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| Diluted Earnings Per Average Common Share |
$ | (1.52 | ) | $ | (0.14 | ) | $ | (1.38 | ) | |||||||||||
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| Basic earning Per Average Common Share |
$ | (1.52 | ) | $ | (0.14 | ) | $ | (1.38 | ) | |||||||||||
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| Oil |
3,594 | 269 | 3,325 | |||||||||||||||||
| NGL |
1,070 | 209 | 861 | |||||||||||||||||
| Natural Gas |
1,189 | 330 | 859 | |||||||||||||||||
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| Total Production (mboe) |
5,853 | 808 | 5,045 | |||||||||||||||||
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| Total Production (boepd) |
64,319 | 8,879 | 55,440 | |||||||||||||||||
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Note: Amounts may not sum due to rounding
| † | General and administrative includes $1,090 or $0.22 per BOE of pension and pension settlement expense |
Non-GAAP Financial Measures
Excluding production associated with certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding data associated with the 2016 property sales (closed and pending) provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this measure is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
| Quarter Ended March 31, 2016 |
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| Energen Production Excluding 2016 Property Sales (Closed and Pending) Reconciliation to GAAP Information |
GAAP | 2016 Property Sales |
Non-GAAP | |||||||||
| Oil |
3,386 | 325 | 3,061 | |||||||||
| NGL |
953 | 199 | 754 | |||||||||
| Natural Gas |
1,241 | 296 | 945 | |||||||||
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| Total Production (mboe) |
5,580 | 820 | 4,760 | |||||||||
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| Total Production (boepd) |
61,319 | 9,011 | 52,308 | |||||||||
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Note: Amounts may not sum due to rounding