Attached files
| file | filename |
|---|---|
| 8-K - PDC ENERGY FORM 8-K - PDC ENERGY, INC. | petd8kpermianclose.htm |
Exhibit 99.1
PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma condensed consolidated financial statements are based on Petroleum Development Corporation's (dba PDC Energy) (the "Company's") historical condensed consolidated financial statements and adjusted to give effect to the disposition of its core Permian Basin assets to be accounted for as a discontinued operation. The unaudited pro forma condensed consolidated statements of operations for the years ended December 31, 2011 and 2010 give effect to the Permian Basin asset disposition as if it had occurred on January 1, 2010. The unaudited pro forma condensed consolidated balance sheet as of December 31, 2011 gives effect to this disposition as if it had occurred on December 31, 2011. The unaudited pro forma condensed consolidated information has been prepared using estimates based on preliminary amounts and are subject to customary terms and adjustments, including adjustments for working capital.
The unaudited pro forma condensed consolidated information should be read in conjunction with the historical consolidated financial statements and accompanying notes which are included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2011 as filed on March 1, 2012 with the Securities and Exchange Commission.
The results of operations for the years ended December 31, 2011 and 2010 included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2011 give effect to the Permian Basin asset disposition as discontinued operations; therefore, no pro forma adjustments have been reflected in the condensed consolidated statements of operations for the years ended December 31, 2011 and 2010.
The pro forma condensed consolidated balance sheet as of December 31, 2011 includes the following adjustments:
• | The sales price totaling $180.2 million, net of $4.2 million of capital expenses incurred subsequent to December 31, 2011, have been reflected as a repayment of the corporate credit facility outstanding balance of $209.0 million. |
• | The adjustment to properties and equipment, net, reflects a reduction of the book value of the Permian Basin assets. |
• | The net gain on the transactions, which has not been tax effected, is reflected as adjustments to retained earnings. |
PETROLEUM DEVELOPMENT CORPORATION | ||||||||
(dba PDC Energy) | ||||||||
Pro Forma Condensed Consolidated Statements of Operations (1) | ||||||||
(unaudited; in thousands, except per share data) | ||||||||
Year Ended December, 31 | ||||||||
2011 | 2010 | |||||||
As Reported | As Reported | |||||||
Revenues: | ||||||||
Natural gas, NGL and crude oil sales | $ | 276,605 | $ | 205,029 | ||||
Sales from natural gas marketing | 66,419 | 69,071 | ||||||
Commodity price risk management gain, net | 46,090 | 59,891 | ||||||
Well operations, pipeline income and other | 6,846 | 9,030 | ||||||
Total revenues | 395,960 | 343,021 | ||||||
Costs, expenses and other: | ||||||||
Production costs | 69,085 | 64,872 | ||||||
Cost of natural gas marketing | 65,465 | 68,015 | ||||||
Exploration expense | 6,253 | 13,675 | ||||||
Impairment of natural gas and crude oil properties | 25,159 | 6,481 | ||||||
General and administrative expense | 61,454 | 42,188 | ||||||
Depreciation, depletion and amortization | 128,907 | 108,095 | ||||||
Gain on sale of properties and equipment | (196 | ) | (174 | ) | ||||
Total costs, expenses and other | 356,127 | 303,152 | ||||||
Income from operations | 39,833 | 39,869 | ||||||
Interest income | 47 | 71 | ||||||
Interest expense | (36,985 | ) | (33,250 | ) | ||||
Income from continuing operations before income taxes | 2,895 | 6,690 | ||||||
Provision for income taxes | (183 | ) | 652 | |||||
Income from continuing operations | 3,078 | 6,038 | ||||||
Less: net loss attributable to noncontrolling interests | — | (280 | ) | |||||
Income from continuing operations attributable to shareholders | $ | 3,078 | $ | 6,318 | ||||
Earnings per share - income from continuing operations: | ||||||||
Basic | $ | 0.13 | $ | 0.33 | ||||
Diluted | $ | 0.13 | $ | 0.32 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 23,521 | 19,674 | ||||||
Diluted | 23,871 | 19,821 | ||||||
(1) The pro forma condensed consolidated statements of operations are unchanged from the historical statements of operations as the Company's 2011 Form 10-K reflects the pending sale of the Permian Basin assets as discontinued operations.
PETROLEUM DEVELOPMENT CORPORATION | |||||||||||
(dba PDC Energy) | |||||||||||
Pro Forma Condensed Consolidated Balance Sheet | |||||||||||
(unaudited; in thousands, except share and per share data) | |||||||||||
December 31, 2011 | |||||||||||
As Reported | Pro Forma Adjustments - Divestiture | Pro Forma | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 8,238 | $ | — | $ | 8,238 | |||||
Other current assets | 164,812 | (1,774 | ) | 163,038 | |||||||
Total current assets | 173,050 | (1,774 | ) | 171,276 | |||||||
Properties and equipment, net | 1,301,716 | — | 1,301,716 | ||||||||
Assets held for sale | 148,249 | (148,249 | ) | — | |||||||
Other assets | 74,990 | — | 74,990 | ||||||||
Total Assets | $ | 1,698,005 | $ | (150,023 | ) | $ | 1,547,982 | ||||
Liabilities and Equity | |||||||||||
Liabilities | |||||||||||
Current liabilities | $ | 195,046 | $ | — | $ | 195,046 | |||||
Long-term debt | 532,157 | (180,228 | ) | 351,929 | |||||||
Deferred income taxes | 207,573 | — | 207,573 | ||||||||
Asset retirement obligations | 46,316 | (2,022 | ) | 44,294 | |||||||
Other liabilities | 52,801 | — | 52,801 | ||||||||
Total liabilities | 1,033,893 | (182,250 | ) | 851,643 | |||||||
Commitments and contingent liabilities | |||||||||||
Equity | |||||||||||
Shareholders' equity: | |||||||||||
Preferred shares, par value $0.01 per share; authorized 50,000,000 | |||||||||||
shares; issued: none | — | — | — | ||||||||
Common shares, par value $0.01 per share; authorized 100,000,000 | |||||||||||
shares; issued: 23,634,958 | 236 | — | 236 | ||||||||
Additional paid-in capital | 217,707 | — | 217,707 | ||||||||
Retained earnings | 446,280 | 32,227 | 478,507 | ||||||||
Treasury shares, at cost: 2,938 | (111 | ) | — | (111 | ) | ||||||
Total shareholders' equity | 664,112 | 32,227 | 696,339 | ||||||||
Total Liabilities and Equity | $ | 1,698,005 | $ | (150,023 | ) | $ | 1,547,982 | ||||