UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 4, 2011
PETROQUEST ENERGY, INC.
(Exact name of registrant as specified in its charter)
DELAWARE | : 001-32681 | 72-1440714 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
400 E. Kaliste Saloom Rd., Suite 6000 Lafayette, Louisiana |
70508 |
|
(Address of principal executive offices) | (Zip Code) |
Registrants telephone number, including area code: (337) 232-7028
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On August 4, 2011, PetroQuest Energy, Inc. (the Company) announced a net loss available to
common stockholders for the quarter ended June 30, 2011 of ($3,045,000) or ($0.05) per share,
compared to second quarter 2010 net income available to common stockholders of $5,248,000, or $0.08
per share. For the first six months of 2011, the Company reported a net loss available to common
stockholders of ($1,148,000), or ($0.02) per share, compared to net income available to common
stockholders of $34,965,000, or $0.56 per share, for the comparable 2010 period. During the second
quarter of 2011, the Company recorded a non-cash ceiling test write-down of $12,973,000 as a result
of the impact of low natural gas prices and higher estimated future development costs on the
discounted net cash flows from its estimated proved reserves. During the six month period ended
June 30, 2011, the Companys ceiling test write-down totaled $18,907,000.
Discretionary cash flow for the second quarter of 2011 was $27,009,000, as compared to $25,367,000
for the comparable 2010 period. Net cash flow provided by operating activities totaled $41,632,000
and $13,610,000 during the second quarters of 2011 and 2010, respectively. For the first six months
of 2011, discretionary cash flow was $52,120,000, compared to discretionary cash flow of
$66,131,000 for the first six months of 2010. Net cash flow provided by operating activities
totaled $59,891,000 and $66,318,000 during the first six months of 2011 and 2010, respectively. See
the attached schedule for a reconciliation of net cash flow provided by operating activities to
discretionary cash flow.
Production for the second quarter of 2011 was 7.4 Bcfe, compared to 7.3 Bcfe for the comparable
period of 2010. For the first six months of 2011, production was 14.7 Bcfe, compared to 15.1 Bcfe
for the comparable period of 2010. Approximately 62% of the Companys second quarter 2011
production was from long-lived basins, which is a Company record. Stated on an Mcfe basis, unit
prices including the effects of hedges for the second quarter of 2011 were $5.69 per Mcfe, as
compared to $5.71 per Mcfe in the second quarter of 2010. For the first six months of 2011, unit
prices including the effects of hedges, were $5.66 per Mcfe, as compared to $5.94 per Mcfe for the
first six months of 2010. Oil and gas sales during the second quarter of 2011 were $41,920,000, as
compared to $41,857,000, in the second quarter of 2010. For the first six months of 2011, oil and
gas sales were $83,466,000 compared to oil and gas sales of $89,402,000 for the first six months of
2010.
Lease operating expenses (LOE) for the second quarter of 2011 increased to $10,206,000, as
compared to $9,020,000 in the second quarter of 2010. LOE per Mcfe was $1.38 for the second
quarter of 2011, as compared to $1.23 in the second quarter of 2010. For the first six months of
2011, lease operating expenses increased to $1.34 per Mcfe from $1.24 per Mcfe in the comparable
period of 2010. The increases in lease operating expenses for the 2011 periods are primarily due to
expensed workovers in Texas and Oklahoma.
Depreciation, depletion and amortization (DD&A) on oil and gas properties for the second quarter
of 2011 was $1.95 per Mcfe, as compared to $1.84 per Mcfe in the second quarter of 2010. For the
first six months of 2011, DD&A on oil and gas properties was $1.91 per Mcfe compared to $1.87 per
Mcfe for the comparable period of 2010. DD&A during the second quarter of 2010 was lower than the
second quarter of 2011 as a result of the impact of the Woodford joint venture closed in May 2010.
Interest expense for the second quarter of 2011 decreased to $2,255,000, as compared to $2,379,000
in the second quarter of 2010. For the first six months of 2011, interest expense was $4,949,000
compared to $4,189,000 for the comparable period of 2010. The increase in interest expense during
the six month 2011 period is primarily the result of lower unevaluated properties after the May
2010 Woodford joint venture.
Production taxes for the second quarter of 2011 were ($538,000), as compared to $1,599,000 in the
second quarter of 2010. For the first six months of 2011, production taxes were $624,000 compared
to $2,947,000 for the comparable period of 2010. The three and six month periods of 2011 included
production tax refunds from the Companys Oklahoma and East Texas properties.
2
General and administrative expenses during the quarter and six months ended June 30, 2011 totaled
$4,280,000 and $8,678,000, respectively, as compared to expenses of $5,816,000 and $10,325,000
during the comparable 2010 periods. The decrease in general and administrative expenses for the
2011 periods is primarily due to lower non-cash stock compensation expense.
The following table sets forth certain information with respect to the oil and gas operations of
the Company for the three and six month periods ended June 30, 2011 and 2010:
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Production: |
||||||||||||||||
Oil (Bbls) |
140,049 | 154,285 | 315,313 | 298,926 | ||||||||||||
Gas (Mcf) |
5,995,945 | 5,812,268 | 11,773,285 | 12,057,516 | ||||||||||||
Ngl (Mcfe) |
533,067 | 594,442 | 1,073,537 | 1,209,057 | ||||||||||||
Total Production (Mcfe) |
7,369,306 | 7,332,420 | 14,738,700 | 15,060,129 | ||||||||||||
Total Daily Production (Mmcfe) |
81.0 | 80.6 | 81.4 | 83.2 | ||||||||||||
Sales: |
||||||||||||||||
Total oil sales |
$ | 15,722,784 | $ | 11,910,281 | $ | 32,895,484 | $ | 23,287,394 | ||||||||
Total gas sales |
21,490,412 | 25,568,663 | 40,616,107 | 56,340,777 | ||||||||||||
Total ngl sales |
4,706,280 | 4,378,233 | 9,953,890 | 9,773,750 | ||||||||||||
Total oil and gas sales |
$ | 41,919,476 | $ | 41,857,177 | $ | 83,465,481 | $ | 89,401,921 | ||||||||
Average sales prices: |
||||||||||||||||
Oil (per Bbl) |
$ | 112.27 | $ | 77.20 | $ | 104.33 | $ | 77.90 | ||||||||
Gas (per Mcf) |
3.58 | 4.40 | 3.45 | 4.67 | ||||||||||||
Ngl (per Mcfe) |
8.83 | 7.37 | 9.27 | 8.08 | ||||||||||||
Per Mcfe |
5.69 | 5.71 | 5.66 | 5.94 |
The above sales and average sales prices include increases (reductions) to revenue related to
the settlement of gas hedges of $186,000 and $4,756,000 and oil hedges of ($289,000) and zero for
the three months ended June 30, 2011 and 2010, respectively. The above sales and average sales
prices include increases (reductions) to revenue related to the settlement of gas hedges of
$386,000 and $6,287,000 and oil hedges of ($389,000) and zero for the six months ended June 30,
2011 and 2010, respectively.
3
The following initiates guidance for the third quarter of 2011:
Guidance for | ||
Description | 3rd Quarter 2011 | |
Production volumes (MMcfe/d) |
80 - 84 | |
Percent Gas |
82% | |
Percent Oil |
11% | |
Percent NGL |
7% | |
Expenses: |
||
Lease operating expenses (per Mcfe) |
$1.25 - $1.35 | |
Production taxes (per Mcfe) |
$0.20 - $0.25 | |
Depreciation, depletion and amortization (per Mcfe) |
$1.90 - $2.00 | |
General and administrative (in millions) |
$ 4.5 - $5.0 | |
Interest expense (in millions) |
$ 2.5 - $2.7 |
The following updates guidance for the full year of 2011:
Guidance for | ||
Description | Full Year 2011 | |
Production volumes (MMcfe/d) |
80 - 88 | |
Percent Gas |
80% | |
Percent Oil |
13% | |
Percent NGL |
7% | |
Expenses: |
||
Lease operating expenses (per Mcfe) |
$1.20 - $1.30 | |
Production taxes (per Mcfe) |
$0.10 - $0.15 | |
Depreciation, depletion and amortization (per Mcfe) |
$1.90 - $2.00 | |
General and administrative (in millions) |
$ 19 - $20 | |
Interest expense (in millions) |
$ 10 - $11 | |
2011 Capital Expenditures (in millions) |
$ 120- $130 |
Operations Update
In the Gulf Coast basin, the Companys La Cantera discovery has been logged and fully evaluated.
Porosity tools and sidewall cores have confirmed 248 net feet of pay in the Cris R massive
objective. Casing has been set to protect the entire sand package through 18,400 feet and the
Company is currently drilling ahead with expectations of reaching its proposed total depth of
19,300 feet within two weeks. The Company has a 16% net revenue interest in the well and expects
production to commence early next year. In addition, the Company is currently planning to spud a
delineation well in first quarter of 2012 to further evaluate the size of this discovery.
In the Woodford, the Company recently completed two Woodford operated wells. The following is a
detailed summary of the results:
Well Number | NRI | Initial Sales Date | Lateral Length (ft.) | 24 Hour Gross Rate (Mcf/d) | ||||||||||||
PQ 53 |
41 | % | 7/26/2011 | 5,200 | 6,848 | |||||||||||
PQ 55 |
39 | % | 7/27/2011 | 5,143 | 6,308 |
4
In addition to the above completions, the Company has two Woodford operated wells (PQ #58 PQ
#59) that are in the early stages of completion and has reached total depth on four additional
wells (PQ #54 PQ #56 PQ #57 PQ #61). Including the four wells that have reached total depth, the Company
expects to complete 10-12 additional Woodford operated wells before year end and currently has four
operated rigs working in the basin.
In East Texas, the Company has reached total depth on its second operated horizontal Cotton Valley
well (WI 50%) and expects to complete the well at the end of the month. In addition, the
Companys third and fourth Classic operated horizontal Cotton Valley wells (WI 30%) have reached
total depth and are expected to be completed in two weeks. The Company expects to drill one more
operated and two more non-operated horizontal Cotton Valley wells by the end of the year.
In South Texas, the Companys second operated Eagle Ford Shale well (NRI 38%) located in La Salle
County was recently completed and is in the early stages of flow back. In addition, the Companys
third operated Eagle Ford Shale well (WI 44%) located in La Salle County has reached total depth
and is expected to be completed next week. At the end of the second quarter, the Company acquired
an additional 638 gross acres (319 net) in La Salle County. The Company expects to participate in
two non-operated wells during 2011on this acreage, one of which is in progress.
During July 2011, the Company entered into a purchase and sale agreement to acquire a private
companys leasehold position in the Mississippi Lime play. The Company expects to close this
acquisition during September 2011 using a portion of its cash on hand. If consummated, this
acquisition, combined with ongoing leasing efforts in the play, would bring the Companys net
acreage position in northern Oklahoma and southern Kansas to approximately 40,000 acres at blended
cost of approximately $750 per acre. The Company plans to begin its initial Mississippi Lime
drilling program late in the fourth quarter of 2011. The Company is continuing to build its
position in this emerging oil focused trend and is evaluating partnership opportunities.
Managements Comment
Our La Cantera discovery should provide us with high cash margin production, which has driven our
decision to continue to deploy capital in this region. said Charles T. Goodson, Chairman, Chief
Executive Officer and President. I am very proud of our Gulf Coast team that has worked tirelessly
to make this project an enormous success. This type of discovery, as well as our other Gulf Coast
properties, allows us to execute our strategy of growing our long-lived asset base while operating
within cash flow. Entering the Mississippi Lime play along the Oklahoma-Kansas border will be a
strategic fit for our Tulsa office and staff who have worked hard to deliver industry leading
results in the Woodford.
About the Company
PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development,
acquisition and production of oil and natural gas reserves in the Arkoma Basin, Wyoming, Texas,
South Louisiana and the shallow waters of the Gulf of Mexico. PetroQuests common stock trades on
the New York Stock Exchange under the ticker PQ.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are subject to certain risks, trends and uncertainties
that could cause actual results to differ materially from those projected. Among those risks,
trends and uncertainties are our ability to find oil and natural gas reserves that are economically
recoverable, the volatility of oil and natural gas prices and significantly depressed natural gas
prices since the middle of 2008, the uncertain economic conditions in the United States and
globally, the declines in the values of our properties that have resulted in and may in the future
result in additional ceiling test write-downs, our ability to replace reserves and sustain
production, our estimate of the sufficiency of our existing capital sources, our ability to raise
additional capital to fund cash requirements for future operations, the uncertainties involved in
prospect development and property acquisitions or dispositions and in projecting future rates of
production or future reserves, the timing of development expenditures and drilling of wells,
hurricanes and other natural disasters, changes in laws and regulations as they relate to our
operations, including our fracing operations in shale plays or our operations in the Gulf of
Mexico, and the operating hazards
attendant to the oil and gas business. In particular, careful consideration should be given to
cautionary statements made in the various reports PetroQuest has filed with the Securities and
Exchange Commission. PetroQuest undertakes no duty to update or revise these forward-looking
statements.
Click here for more information: http://www.petroquest.com/news.html?=BizID=1690&1=1
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PETROQUEST ENERGY, INC.
Consolidated Balance Sheets (Amounts in Thousands)
(unaudited)
Consolidated Balance Sheets (Amounts in Thousands)
(unaudited)
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 50,641 | $ | 63,237 | ||||
Revenue receivable |
9,667 | 13,386 | ||||||
Joint interest billing receivable |
26,169 | 12,193 | ||||||
Other receivable |
13,906 | 13,795 | ||||||
Prepaid drilling costs |
1,007 | 789 | ||||||
Drilling pipe inventory |
5,986 | 11,711 | ||||||
Other current assets |
4,052 | 1,827 | ||||||
Total current assets |
111,428 | 116,938 | ||||||
Property and equipment: |
||||||||
Oil and gas properties: |
||||||||
Oil and gas properties, full cost method |
1,477,448 | 1,433,642 | ||||||
Unevaluated oil and gas properties |
81,162 | 54,851 | ||||||
Accumulated depreciation, depletion and amortization |
(1,222,663 | ) | (1,175,553 | ) | ||||
Oil and gas properties, net |
335,947 | 312,940 | ||||||
Gas gathering assets |
4,177 | 4,177 | ||||||
Accumulated depreciation and amortization of gas gathering assets |
(1,645 | ) | (1,496 | ) | ||||
Total property and equipment |
338,479 | 315,621 | ||||||
Other assets, net of accumulated depreciation and amortization
of $7,221 and $6,435, respectively |
6,191 | 6,958 | ||||||
Total assets |
$ | 456,098 | $ | 439,517 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable to vendors |
$ | 42,377 | $ | 26,097 | ||||
Advances from co-owners |
12,297 | 7,963 | ||||||
Oil and gas revenue payable |
4,622 | 7,220 | ||||||
Accrued interest and preferred stock dividend |
6,073 | 6,575 | ||||||
Hedge liability |
| 1,089 | ||||||
Asset retirement obligation |
674 | 1,517 | ||||||
Other accrued liabilities |
5,200 | 7,380 | ||||||
Total current liabilities |
71,243 | 57,841 | ||||||
10% Senior Notes |
150,000 | 150,000 | ||||||
Asset retirement obligation |
24,684 | 23,075 | ||||||
Other liabilities |
490 | 439 | ||||||
Commitments and contingencies |
||||||||
Stockholders equity: |
||||||||
Preferred
stock, $.001 par value; authorized 5,000 shares; issued and outstanding 1,495 shares |
1 | 1 | ||||||
Common
stock,$.001 par value; authorized 150,000 shares; issued and
outstanding 62,020 and 61,565 shares, respectively |
62 | 62 | ||||||
Paid-in capital |
267,928 | 266,907 | ||||||
Accumulated other comprehensive income (loss) |
557 | (1,089 | ) | |||||
Accumulated deficit |
(58,867 | ) | (57,719 | ) | ||||
Total stockholders equity |
209,681 | 208,162 | ||||||
Total liabilities and stockholders equity |
$ | 456,098 | $ | 439,517 | ||||
6
PETROQUEST ENERGY, INC.
Consolidated Statements of Operations
(unaudited)
(Amounts in Thousands, Except Per Share Data)
Consolidated Statements of Operations
(unaudited)
(Amounts in Thousands, Except Per Share Data)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Revenues: |
||||||||||||||||
Oil and gas sales |
$ | 41,920 | $ | 41,857 | $ | 83,466 | $ | 89,402 | ||||||||
Gas gathering revenue |
58 | 61 | 122 | 130 | ||||||||||||
41,978 | 41,918 | 83,588 | 89,532 | |||||||||||||
Expenses: |
||||||||||||||||
Lease operating expenses |
10,206 | 9,020 | 19,709 | 18,715 | ||||||||||||
Production taxes |
(538 | ) | 1,599 | 624 | 2,947 | |||||||||||
Depreciation, depletion and amortization |
14,657 | 13,744 | 28,719 | 28,728 | ||||||||||||
Ceiling test writedown |
12,973 | | 18,907 | | ||||||||||||
Gas gathering costs |
3 | | 10 | 11 | ||||||||||||
General and administrative |
4,280 | 5,816 | 8,678 | 10,325 | ||||||||||||
Accretion of asset retirement obligation |
427 | 408 | 1,179 | 876 | ||||||||||||
Interest expense |
2,255 | 2,379 | 4,949 | 4,189 | ||||||||||||
44,263 | 32,966 | 82,775 | 65,791 | |||||||||||||
Gain on legal settlement |
| | | 12,400 | ||||||||||||
Other income |
197 | 94 | 277 | 11 | ||||||||||||
Income (loss) from operations |
(2,088 | ) | 9,046 | 1,090 | 36,152 | |||||||||||
Income tax expense (benefit) |
(330 | ) | 2,511 | (329 | ) | (1,380 | ) | |||||||||
Net income (loss) |
(1,758 | ) | 6,535 | 1,419 | 37,532 | |||||||||||
Preferred stock dividend |
1,287 | 1,287 | 2,567 | 2,567 | ||||||||||||
Net income (loss) available to common stockholders |
$ | (3,045 | ) | $ | 5,248 | $ | (1,148 | ) | $ | 34,965 | ||||||
Earnings per common share: |
||||||||||||||||
Basic |
||||||||||||||||
Net income (loss) per share |
$ | (0.05 | ) | $ | 0.08 | $ | (0.02 | ) | $ | 0.56 | ||||||
Diluted |
||||||||||||||||
Net income (loss) per share |
$ | (0.05 | ) | $ | 0.08 | $ | (0.02 | ) | $ | 0.56 | ||||||
Weighted average number of common shares: |
||||||||||||||||
Basic |
61,917 | 61,425 | 61,793 | 61,335 | ||||||||||||
Diluted |
61,917 | 62,421 | 61,793 | 67,356 | ||||||||||||
7
PETROQUEST ENERGY, INC.
Consolidated Statements of Cash Flows
(unaudited)
(Amounts in Thousands)
Consolidated Statements of Cash Flows
(unaudited)
(Amounts in Thousands)
Six Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 1,419 | $ | 37,532 | ||||
Adjustments to reconcile net income to net cash provided by
operating activities: |
||||||||
Deferred tax benefit |
(329 | ) | (1,380 | ) | ||||
Depreciation, depletion and amortization |
28,719 | 28,728 | ||||||
Ceiling test writedown |
18,907 | | ||||||
Non-cash gain on legal settlement |
| (4,164 | ) | |||||
Accretion of asset retirement obligation |
1,179 | 876 | ||||||
Share based compensation expense |
1,917 | 3,752 | ||||||
Amortization costs and other |
308 | 787 | ||||||
Payments to settle asset retirement obligations |
(513 | ) | (5,389 | ) | ||||
Changes in working capital accounts: |
||||||||
Revenue receivable |
3,719 | 2,659 | ||||||
Joint interest billing receivable |
(13,976 | ) | (7,110 | ) | ||||
Prepaid drilling and pipe costs |
5,507 | 4,034 | ||||||
Accounts payable and accrued liabilities |
(3,358 | ) | 8,359 | |||||
Advances from co-owners |
18,235 | (423 | ) | |||||
Other |
(1,843 | ) | (1,943 | ) | ||||
Net cash provided by operating activities |
59,891 | 66,318 | ||||||
Cash flows used in investing activities: |
||||||||
Investment in oil and gas properties |
(69,006 | ) | (54,822 | ) | ||||
Proceeds from sale of unevaluated properties |
| 22,473 | ||||||
Proceeds from sale of oil and gas properties |
| 35,000 | ||||||
Net cash provided by (used in) investing activities |
(69,006 | ) | 2,651 | |||||
Cash flows used in financing activities: |
||||||||
Net payments for share based compensation |
(896 | ) | (228 | ) | ||||
Deferred financing costs |
(16 | ) | (104 | ) | ||||
Payment of preferred stock dividend |
(2,569 | ) | (2,565 | ) | ||||
Repayment of bank borrowings |
| (29,000 | ) | |||||
Net cash used in financing activities |
(3,481 | ) | (31,897 | ) | ||||
Net (decrease) increase in cash and cash equivalents |
(12,596 | ) | 37,072 | |||||
Cash and cash equivalents, beginning of period |
63,237 | 20,772 | ||||||
Cash and cash equivalents, end of period |
$ | 50,641 | $ | 57,844 | ||||
Supplemental disclosure of cash flow information: |
||||||||
Cash paid during the period for: |
||||||||
Interest |
$ | 8,291 | $ | 8,237 | ||||
Income taxes |
$ | 1 | $ | 3 | ||||
8
PETROQUEST ENERGY, INC.
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income (loss) |
$ | (1,758 | ) | $ | 6,535 | $ | 1,419 | $ | 37,532 | |||||||
Reconciling items: |
||||||||||||||||
Deferred tax expense (benefit) |
(330 | ) | 2,511 | (329 | ) | (1,380 | ) | |||||||||
Non-cash gain on legal settlement |
| | | (4,164 | ) | |||||||||||
Depreciation, depletion and amortization |
14,657 | 13,744 | 28,719 | 28,728 | ||||||||||||
Ceiling test writedown |
12,973 | | 18,907 | | ||||||||||||
Accretion of asset retirement obligation |
427 | 408 | 1,179 | 876 | ||||||||||||
Share based compensation expense |
885 | 1,770 | 1,917 | 3,752 | ||||||||||||
Amortization costs and other |
155 | 399 | 308 | 787 | ||||||||||||
Discretionary cash flow |
27,009 | 25,367 | 52,120 | 66,131 | ||||||||||||
Changes in working capital accounts |
14,623 | (6,885 | ) | 8,284 | 5,576 | |||||||||||
Settlement of asset retirement obligations |
| (4,872 | ) | (513 | ) | (5,389 | ) | |||||||||
Net cash flow provided by operating activities |
$ | 41,632 | $ | 13,610 | $ | 59,891 | $ | 66,318 | ||||||||
Note: Management believes that discretionary cash flow is relevant and useful information,
which is commonly used by analysts, investors and other interested parties in the oil and gas
industry as a financial indicator of an oil and gas companys ability to generate cash used to
internally fund exploration and development activities and to service debt. Discretionary
cash flow is not a measure of financial performance prepared in accordance with generally
accepted accounting principles (GAAP) and should not be considered in isolation or as an
alternative to net cash flow provided by operating activities. In addition, since
discretionary cash flow is not a term defined by GAAP, it might not be comparable to similarly
titled measures used by other companies. |
9
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized.
PETROQUEST ENERGY, INC. |
||||
Date: August 4, 2011 | By: | /s/ J. Bond Clement | ||
J. Bond Clement | ||||
Executive Vice President, Chief Financial Officer and Treasurer | ||||
10