Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ENERGEN CORP | d303794d8k.htm |
| EX-99.3 - EX-99.3 - ENERGEN CORP | d303794dex993.htm |
| EX-99.1 - EX-99.1 - ENERGEN CORP | d303794dex991.htm |
Exhibit 99.2
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 3 months ending December 31, 2016 and 2015
| 4th Quarter | ||||||||||||
| (in thousands, except per share data) |
2016 | 2015 | Change | |||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 162,992 | $ | 167,751 | $ | (4,759 | ) | |||||
| Gain (loss) on derivative instruments, net |
(48,472 | ) | 25,048 | (73,520 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total revenues |
114,520 | 192,799 | (78,279 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
38,867 | 52,447 | (13,580 | ) | ||||||||
| Production and ad valorem taxes |
9,516 | 11,597 | (2,081 | ) | ||||||||
| Depreciation, depletion and amortization |
103,397 | 159,784 | (56,387 | ) | ||||||||
| Asset impairment |
40 | 825,918 | (825,878 | ) | ||||||||
| Exploration |
3,635 | 2,604 | 1,031 | |||||||||
| General and administrative (including non-cash stock based compensation of $5,148 and $870 for the three months ended Dec. 31, 2016, and 2015, respectively) |
20,906 | 54,794 | (33,888 | ) | ||||||||
| Accretion of discount on asset retirement obligations |
1,580 | 1,729 | (149 | ) | ||||||||
| (Gain) loss on sale of assets and other |
5,175 | (524 | ) | 5,699 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total operating costs and expenses |
183,116 | 1,108,349 | (925,233 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Operating Loss |
(68,596 | ) | (915,550 | ) | 846,954 | |||||||
|
|
|
|
|
|
|
|||||||
| Other Income (Expense) |
||||||||||||
| Interest expense |
(9,041 | ) | (10,022 | ) | 981 | |||||||
| Other income |
398 | 80 | 318 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total other expense |
(8,643 | ) | (9,942 | ) | 1,299 | |||||||
|
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|
|
|
|
|
|||||||
| Loss Before Income Taxes |
(77,239 | ) | (925,492 | ) | 848,253 | |||||||
| Income tax benefit |
(22,769 | ) | (334,686 | ) | 311,917 | |||||||
|
|
|
|
|
|
|
|||||||
| Net Loss |
$ | (54,470 | ) | $ | (590,806 | ) | $ | 536,336 | ||||
|
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|
|||||||
| Diluted Earnings Per Average Common Share |
$ | (0.56 | ) | $ | (7.50 | ) | $ | 6.94 | ||||
|
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|
|
|
|||||||
| Basic Earnings Per Average Common Share |
$ | (0.56 | ) | $ | (7.50 | ) | $ | 6.94 | ||||
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|
|||||||
| Diluted Average Common Shares Outstanding |
97,074 | 78,783 | 18,291 | |||||||||
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|
|||||||
| Basic Average Common Shares Outstanding |
97,074 | 78,783 | 18,291 | |||||||||
|
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|
|
|||||||
| Dividends Per Common Share |
$ | — | $ | 0.02 | $ | (0.02 | ) | |||||
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|
|||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 12 months ending December 31, 2016 and 2015
| Year-to-date |
|
|||||||||||
| (in thousands, except per share data) |
2016 | 2015 | Change | |||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 621,366 | $ | 763,261 | $ | (141,895 | ) | |||||
| Gain (loss) on derivative instruments, net |
(88,477 | ) | 115,293 | (203,770 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total revenues |
532,889 | 878,554 | (345,665 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
171,714 | 228,380 | (56,666 | ) | ||||||||
| Production and ad valorem taxes |
42,938 | 57,380 | (14,442 | ) | ||||||||
| Depreciation, depletion and amortization |
447,961 | 593,789 | (145,828 | ) | ||||||||
| Asset impairment |
220,652 | 1,292,308 | (1,071,656 | ) | ||||||||
| Exploration |
5,415 | 14,878 | (9,463 | ) | ||||||||
| General and administrative (including non-cash stock based compensation of $19,641 and $12,910 for the years ended December 31, 2016, and 2015, respectively) |
95,689 | 149,132 | (53,443 | ) | ||||||||
| Accretion of discount on asset retirement obligations |
6,672 | 7,108 | (436 | ) | ||||||||
| Gain on sale of assets and other |
(246,922 | ) | (26,570 | ) | (220,352 | ) | ||||||
|
|
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|
|
|||||||
| Total operating costs and expenses |
744,119 | 2,316,405 | (1,572,286 | ) | ||||||||
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|
|
|
|
|
|||||||
| Operating Loss |
(211,230 | ) | (1,437,851 | ) | 1,226,621 | |||||||
|
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|
|
|
|
|
|||||||
| Other Income (Expense) |
||||||||||||
| Interest expense |
(36,899 | ) | (43,108 | ) | 6,209 | |||||||
| Other income |
978 | 223 | 755 | |||||||||
|
|
|
|
|
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|
|||||||
| Total other expense |
(35,921 | ) | (42,885 | ) | 6,964 | |||||||
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|
|
|||||||
| Loss Before Income Taxes |
(247,151 | ) | (1,480,736 | ) | 1,233,585 | |||||||
| Income tax benefit |
(79,638 | ) | (535,005 | ) | 455,367 | |||||||
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|
|||||||
| Net Loss |
$ | (167,513 | ) | $ | (945,731 | ) | $ | 778,218 | ||||
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|
|||||||
| Diluted Earnings Per Average Common Share |
$ | (1.77 | ) | $ | (12.43 | ) | $ | 10.66 | ||||
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|
|||||||
| Basic Earnings Per Average Common Share |
$ | (1.77 | ) | $ | (12.43 | ) | $ | 10.66 | ||||
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|
|||||||
| Diluted Average Common Shares Outstanding |
94,476 | 76,078 | 18,398 | |||||||||
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|||||||
| Basic Average Common Shares Outstanding |
94,476 | 76,078 | 18,398 | |||||||||
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|
|||||||
| Dividends Per Common Share |
$ | — | $ | 0.08 | $ | (0.08 | ) | |||||
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of December 31, 2016 and December 31, 2015
| (in thousands) |
December 31, 2016 |
December 31, 2015 |
||||||
| ASSETS |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ | 386,093 | $ | 1,272 | ||||
| Accounts receivable, net |
73,322 | 63,097 | ||||||
| Inventories |
14,222 | 11,255 | ||||||
| Assets held for sale |
— | 93,739 | ||||||
| Derivative instruments |
50 | 56,963 | ||||||
| Income tax receivable |
27,153 | 8,376 | ||||||
| Prepayments and other |
5,071 | 11,638 | ||||||
|
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|
|
|
|||||
| Total current assets |
505,911 | 246,340 | ||||||
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|
|||||
| Property, Plant and Equipment |
||||||||
| Oil and natural gas properties, net |
4,016,683 | 4,302,332 | ||||||
| Other property and equipment, net |
44,869 | 48,358 | ||||||
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|
|||||
| Total property, plant and equipment, net |
4,061,552 | 4,350,690 | ||||||
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|
|||||
| Other postretirement assets |
3,619 | 3,881 | ||||||
| Other assets |
8,741 | 10,245 | ||||||
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|
|||||
| TOTAL ASSETS |
$ | 4,579,823 | $ | 4,611,156 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current Liabilities |
||||||||
| Long-term debt due within one year |
24,000 | — | ||||||
| Accounts payable |
65,031 | 64,742 | ||||||
| Accrued taxes |
7,252 | 5,801 | ||||||
| Accrued wages and benefits |
25,089 | 28,563 | ||||||
| Accrued capital costs |
79,988 | 79,206 | ||||||
| Revenue and royalty payable |
51,217 | 60,493 | ||||||
| Liabilities related to assets held for sale |
— | 12,789 | ||||||
| Pension liabilities |
— | 15,685 | ||||||
| Derivative instruments |
65,467 | 459 | ||||||
| Other |
20,160 | 19,783 | ||||||
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|
|||||
| Total current liabilities |
338,204 | 287,521 | ||||||
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|
|||||
| Long-term debt |
527,443 | 773,550 | ||||||
| Asset retirement obligations |
81,544 | 89,990 | ||||||
| Noncurrent derivative instruments |
3,006 | — | ||||||
| Deferred income taxes |
495,888 | 552,369 | ||||||
| Other |
13,136 | 11,866 | ||||||
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|
|||||
| Total liabilities |
1,459,221 | 1,715,296 | ||||||
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|
|||||
| Total Shareholders’ Equity |
3,120,602 | 2,895,860 | ||||||
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|
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| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 4,579,823 | $ | 4,611,156 | ||||
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|
|||||
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending December 31, 2016 and 2015
| 4th 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 |
$ | 134,112 | $ | 140,505 | $ | (6,393 | ) | |||||
| Natural gas liquids |
14,068 | 12,240 | 1,828 | |||||||||
| Natural gas |
14,812 | 15,006 | (194 | ) | ||||||||
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|
|||||||
| Total |
$ | 162,992 | $ | 167,751 | $ | (4,759 | ) | |||||
|
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|
|
|
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|
|||||||
| Open non-cash mark-to-market gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (23,704 | ) | $ | (92,484 | ) | $ | 68,780 | ||||
| Natural gas liquids |
(5,914 | ) | — | (5,914 | ) | |||||||
| Natural gas |
(5,712 | ) | (11,586 | ) | 5,874 | |||||||
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|
|||||||
| Total |
$ | (35,330 | ) | $ | (104,070 | ) | $ | 68,740 | ||||
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|
|||||||
| Closed gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (12,380 | ) | $ | 115,519 | $ | (127,899 | ) | ||||
| Natural gas |
(762 | ) | 13,599 | (14,361 | ) | |||||||
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| Total |
$ | (13,142 | ) | $ | 129,118 | $ | (142,260 | ) | ||||
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| Total revenues |
$ | 114,520 | $ | 192,799 | $ | (78,279 | ) | |||||
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|
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| Production volumes |
||||||||||||
| Oil (MBbl) |
2,944 | 3,584 | (640 | ) | ||||||||
| Natural gas liquids (MMgal) |
37.5 | 45.3 | (7.8 | ) | ||||||||
| Natural gas (MMcf) |
6,504 | 7,830 | (1,326 | ) | ||||||||
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|||||||
| Total production volumes (MBOE) |
4,920 | 5,967 | (1,047 | ) | ||||||||
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|
|||||||
| Average daily production volumes |
||||||||||||
| Oil (MBbl/d) |
32.0 | 39.0 | (7.0 | ) | ||||||||
| Natural gas liquids (MMgal/d) |
0.4 | 0.5 | (0.1 | ) | ||||||||
| Natural gas (MMcf/d) |
70.7 | 85.1 | (14.4 | ) | ||||||||
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|
|||||||
| Total average daily production volumes (MBOE/d) |
53.5 | 64.9 | (11.4 | ) | ||||||||
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|||||||
| Average realized prices excluding effects of open non-cash mark-to-market derivative instruments |
| |||||||||||
| Oil (per barrel) |
$ | 41.35 | $ | 71.44 | $ | (30.09 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.38 | $ | 0.27 | $ | 0.11 | ||||||
| Natural gas (per Mcf) |
$ | 2.16 | $ | 3.65 | $ | (1.49 | ) | |||||
| Average realized prices excluding effects of all derivative instruments |
| |||||||||||
| Oil (per barrel) |
$ | 45.55 | $ | 39.20 | $ | 6.35 | ||||||
| Natural gas liquids (per gallon) |
$ | 0.38 | $ | 0.27 | $ | 0.11 | ||||||
| Natural gas (per Mcf) |
$ | 2.28 | $ | 1.92 | $ | 0.36 | ||||||
| Costs per BOE |
||||||||||||
| Oil, natural gas liquids and natural gas production expenses |
$ | 7.90 | $ | 8.79 | $ | (0.89 | ) | |||||
| Production and ad valorem taxes |
$ | 1.93 | $ | 1.94 | $ | (0.01 | ) | |||||
| Depreciation, depletion and amortization |
$ | 21.02 | $ | 26.78 | $ | (5.76 | ) | |||||
| Exploration expense |
$ | 0.74 | $ | 0.44 | $ | 0.30 | ||||||
| General and administrative |
$ | 4.25 | $ | 9.18 | $ | (4.93 | ) | |||||
| Capital expenditures |
$ | 154,455 | $ | 196,010 | $ | (41,555 | ) | |||||
|
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|
|
|
|||||||
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending December 31, 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 |
$ | 521,017 | $ | 631,663 | $ | (110,646 | ) | |||||
| Natural gas liquids |
48,652 | 48,856 | (204 | ) | ||||||||
| Natural gas |
51,697 | 82,742 | (31,045 | ) | ||||||||
|
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|
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|
|
|
|||||||
| Total |
$ | 621,366 | $ | 763,261 | $ | (141,895 | ) | |||||
|
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|
|
|
|
|
|||||||
| Open non-cash mark-to-market gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (57,148 | ) | $ | (242,227 | ) | $ | 185,079 | ||||
| Natural gas liquids |
(6,868 | ) | — | (6,868 | ) | |||||||
| Natural gas |
(7,174 | ) | (39,525 | ) | 32,351 | |||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | (71,190 | ) | $ | (281,752 | ) | $ | 210,562 | ||||
|
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|
|
|
|
|||||||
| Closed gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (17,701 | ) | $ | 346,404 | $ | (364,105 | ) | ||||
| Natural gas |
414 | 50,641 | (50,227 | ) | ||||||||
|
|
|
|
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|
|
|||||||
| Total |
$ | (17,287 | ) | $ | 397,045 | $ | (414,332 | ) | ||||
|
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|
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|
|
|
|||||||
| Total revenues |
$ | 532,889 | $ | 878,554 | $ | (345,665 | ) | |||||
|
|
|
|
|
|
|
|||||||
| Production volumes |
||||||||||||
| Oil (MBbl) |
13,213 | 14,023 | (810 | ) | ||||||||
| Natural gas liquids (MMgal) |
163.5 | 170.7 | (7.2 | ) | ||||||||
| Natural gas (MMcf) |
27,204 | 35,604 | (8,400 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total production volumes (MBOE) |
21,639 | 24,022 | (2,383 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Average daily production volumes |
||||||||||||
| Oil (MBbl/d) |
36.1 | 38.4 | (2.3 | ) | ||||||||
| Natural gas liquids (MMgal/d) |
0.4 | 0.5 | (0.1 | ) | ||||||||
| Natural gas (MMcf/d) |
74.3 | 97.5 | (23.2 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total average daily production volumes (MBOE/d) |
59.1 | 65.8 | (6.7 | ) | ||||||||
|
|
|
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|
|
|
|||||||
| Average realized prices excluding effects of open non-cash mark-to-market derivative instruments |
| |||||||||||
| Oil (per barrel) |
$ | 38.09 | $ | 69.75 | $ | (31.66 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.30 | $ | 0.29 | $ | 0.01 | ||||||
| Natural gas (per Mcf) |
$ | 1.92 | $ | 3.75 | $ | (1.83 | ) | |||||
| Average realized prices excluding effects of all derivative instruments |
| |||||||||||
| Oil (per barrel) |
$ | 39.43 | $ | 45.04 | $ | (5.61 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.30 | $ | 0.29 | $ | 0.01 | ||||||
| Natural gas (per Mcf) |
$ | 1.90 | $ | 2.32 | $ | (0.42 | ) | |||||
| Costs per BOE |
||||||||||||
| Oil, natural gas liquids and natural gas production expenses |
$ | 7.93 | $ | 9.51 | $ | (1.58 | ) | |||||
| Production and ad valorem taxes |
$ | 1.98 | $ | 2.39 | $ | (0.41 | ) | |||||
| Depreciation, depletion and amortization |
$ | 20.70 | $ | 24.72 | $ | (4.02 | ) | |||||
| Exploration expense |
$ | 0.25 | $ | 0.62 | $ | (0.37 | ) | |||||
| General and administrative |
$ | 4.42 | $ | 6.21 | $ | (1.79 | ) | |||||
| Capital expenditures |
$ | 582,898 | $ | 1,114,808 | $ | (531,910 | ) | |||||
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