Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ENDEAVOUR INTERNATIONAL CORP | d536130d8k.htm |
| EX-99.1 - EX-99.1 - ENDEAVOUR INTERNATIONAL CORP | d536130dex991.htm |
 First
Quarter 2013 Earnings Review
May 9, 2013
Exhibit 99.2 |
 2
2013 First Quarter –
Financial/Operational Results
Sales Volumes and Physical Production
•
Q1 sales volumes averaged 7,186 barrels of oil equivalent per day
(“boepd”) •
Volumes for the quarter were impacted by the timing of liftings at the Alba field,
where during the period there was only a single lifting
•
Production for the quarter was 9,385 boepd and was effected by an unplanned
5-day shutdown and lower than expected production levels due to
continuing processing problems at Alba The West Rochelle well has reached total
depth and is on schedule for first production mid-2013
Rowan Gorilla VII rig arrived onsite at Bacchus to commence drilling the third
production well. First production from this well is expect in Q3
2013 |
 3
Production Volumes (BOE per day)
79%
21%
2013
Q1 Sales = 7,186
First quarter 2013 sales volumes were impacted by the timing of liftings at the
Alba field, where during the period there was only a single lifting
Physical production volume for the first quarter averaged 9,385 boepd
First Quarter realized prices
•
Oil and condensate price = $108.40 per barrel
•
Gas price = $3.13 per Mcf
2012
Q1 Sales = 4,174
25%
74%
US Gas US Oil UK Oil
UK Gas |
 4
Summary Financial Results
Revenues increased year-over-year due to an increased working interest in
Alba and production from the Bacchus field, offset by a slightly lower
Brent price Quarter-over-quarter
(Q4
2012
-
$97.6
million),
revenues
were
impacted
by
the
fact
that
there
was only a single lifting at Alba during the first quarter 2013 compared to three
liftings in Q4 2012
Measure ($ in millions, except per share data)
2013
2012
Oil and Gas Revenues
57.7
$
15.2
$
Operating Expenses
17.5
$
4.9
$
Adjusted cash flow from Operations
40.2
$
10.3
$
Three Months Ended
March 31, |
 5
Key Business Metrics
OpEx during the quarter was impacted by on-going maintenance at the Alba field
to resolve processing issues and well work overs in the U.S.
Consolidated DD&A for the first quarter of the year was higher
year-over-year due to the larger percentage of U.K.
production and accretion on asset retirement obligations In Q1 2012, the
Company carried double interest expense for the Senior Term Loan and the newly issued Senior
Priority Notes
Quarter-over-quarter G&A and Interest Expenses have increased due to
lower reported sales volumes Measure ($ expense per BOE)
2013
2012
Operating Expenses (OpEx)
Consolidated
$27.04
$12.89
U.K.
$27.22
$32.81
U.S.
$26.37
$5.83
Depreciation, depletion and amortization (DD&A)
Consolidated
$35.48
$20.81
U.K.
$42.79
$45.15
U.S.
$8.31
$12.18
General and Administrative Expense (G&A)
$8.48
$14.01
Interest Expenses
Cash
$24.31
$32.93
Non-cash
$8.83
$18.95
Three Months Ended
March 31, |
 6
Adjusted EBITDA
Letter
of
credit
fees
increased
quarter
over
quarter
(Q4
2012
-
$9.5
million)
due
to
the
costs
of
refinancing and extending the term on the $33 million reimbursement
agreement Measure ($ in millions, except per share data)
2013
2012
Net Income (loss)
(14.0)
$
(35.3)
$
Unrealized (gain) loss on derivatives
(1.6)
4.8
Net Interest Expense
21.4
19.7
Letter of Credit Fees
11.4
-
Depreciation, depletion and amortization
22.9
7.9
Impairment of U.S. oil and gas properties
3.5
15.7
Income tax expense (benefit)
0.9
(10.6)
Adjusted EBITDA
44.6
$
2.2
$
Three Months Ended
March 31, |
 7
Adjusted Net Income (Loss)
Measure ($ in millions, except per share data)
2013
2012
Net Income (loss)
(14.0)
$
(35.3)
$
Impairment of U.S. oil and gas properties
3.5
15.7
Unrealized (gain) loss (net of tax)
(1.6)
4.2
Net Income (loss) as Adjusted
(12.1)
$
(15.4)
$
Weighted-average basic
shares
outstanding (in millions)
47.1
37.9
Adjusted earning (loss) per basic share
(0.26)
$
(0.41)
$
Three Months Ended
March 31, |
 2013
Direct Capital Expenditures 8
Rochelle and Bacchus represent 60% of the planned spend in the U.K.
U.S. budget is second half of the year weighted and is largely discretionary
Rochelle
Bacchus
Alba
U.S.
U.K. Other
Centurion
South
U.K. = $140 million -
$150 million
U.S. = $ 10 million -
$ 30 million |
 9
Capex Update
Exploration capital in the U.K. and the U.S. remains constrained, subject to first
production at Rochelle field and the outcome of the strategic review
Measure ($ in millions)
2013
2012
Development Capital
U.K.
30.9
$
39.1
$
U.S.
0.1
4.3
Exploration Capital
U.K.
1.7
3.5
U.S.
0.1
5.7
Other
0.2
2.8
Total Direct Oil & Gas Capex
33.0
55.4
Acquisitions
0.8
1.5
33.8
56.9
Capitalized Interest
6.2
5.5
Capitalized G&A
5.1
4.5
Asset Retirement Obligations (AROs)
4.2
-
Total Capital Expenditures
49.3
$
66.9
$
Three Months Ended
March 31, |
 U.K.
Hedged Oil Position 10
The current hedging program involves embedding collars within existing
production marketing contracts
Pricing for the Forward Sale falls within the average ceiling and floor
Production for the Forward Sale is included in the barrels-per-day
|
  11
Debt Maturity Schedule
Convertible Notes due 2016 ($18.51 per share conversion price)
Convertible Bonds due 2016 ($16.52 per share conversion price)
Senior Notes due 2018
Revolving Credit Facility due 2014
$115
$135
$554
$72
$0
$100
$200
$300
$400
$500
2013
2014
2015
2016
2017
2018
The remaining $15 million of the Credit Facility, due October 2013, was
extended to July 2014 |