Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - ENERGEN CORP | d61602dex991.htm |
| EX-99.3 - EX-99.3 - ENERGEN CORP | d61602dex993.htm |
| 8-K - FORM 8-K - ENERGEN CORP | d61602d8k.htm |
Exhibit 99.2
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 3 months ending June 30, 2015 and 2014
| 2nd Quarter | Change | |||||||||||
| (in thousands, except per share data) |
2015 | 2014 | ||||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 219,290 | $ | 355,852 | $ | (136,562 | ) | |||||
| Loss on derivative instruments, net |
(50,964 | ) | (84,846 | ) | 33,882 | |||||||
|
|
|
|
|
|
|
|||||||
| Total revenues |
168,326 | 271,006 | (102,680 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
53,581 | 64,697 | (11,116 | ) | ||||||||
| Production and ad valorem taxes |
13,352 | 28,049 | (14,697 | ) | ||||||||
| Depreciation, depletion and amortization |
149,843 | 136,244 | 13,599 | |||||||||
| Asset impairment |
60,413 | 1,342 | 59,071 | |||||||||
| Exploration |
11,018 | 1,233 | 9,785 | |||||||||
| General and administrative |
38,652 | 33,542 | 5,110 | |||||||||
| Accretion of discount on asset retirement obligations |
1,669 | 1,883 | (214 | ) | ||||||||
| (Gain) loss on sale of assets and other |
1,476 | 909 | 567 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total costs and expenses |
330,004 | 267,899 | 62,105 | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating Income (Loss) |
(161,678 | ) | 3,107 | (164,785 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Other Income (Expense) |
||||||||||||
| Interest expense |
(11,244 | ) | (7,964 | ) | (3,280 | ) | ||||||
| Other income |
41 | 687 | (646 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total other expense |
(11,203 | ) | (7,277 | ) | (3,926 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Loss From Continuing Operations Before Income Taxes |
(172,881 | ) | (4,170 | ) | (168,711 | ) | ||||||
| Income tax expense (benefit) |
(61,280 | ) | (1,016 | ) | (60,264 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Loss From Continuing Operations |
(111,601 | ) | (3,154 | ) | (108,447 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Discontinued Operations, net of tax |
||||||||||||
| Loss from discontinued operations |
— | (4,799 | ) | 4,799 | ||||||||
|
|
|
|
|
|
|
|||||||
| Loss From Discontinued Operations |
— | (4,799 | ) | 4,799 | ||||||||
|
|
|
|
|
|
|
|||||||
| Net Income (Loss) |
$ | (111,601 | ) | $ | (7,953 | ) | $ | (103,648 | ) | |||
|
|
|
|
|
|
|
|||||||
| Diluted Earnings Per Average Common Share |
||||||||||||
| Continuing operations |
$ | (1.52 | ) | $ | (0.04 | ) | $ | (1.48 | ) | |||
| Discontinued operations |
— | (0.07 | ) | 0.07 | ||||||||
|
|
|
|
|
|
|
|||||||
| Net Income (Loss) |
$ | (1.52 | ) | $ | (0.11 | ) | $ | (1.41 | ) | |||
|
|
|
|
|
|
|
|||||||
| Basic Earnings Per Average Common Share |
||||||||||||
| Continuing operations |
$ | (1.52 | ) | $ | (0.04 | ) | $ | (1.48 | ) | |||
| Discontinued operations |
— | (0.07 | ) | 0.07 | ||||||||
|
|
|
|
|
|
|
|||||||
| Net Income (Loss) |
$ | (1.52 | ) | $ | (0.11 | ) | $ | (1.41 | ) | |||
|
|
|
|
|
|
|
|||||||
| Diluted Avg. Common Shares Outstanding |
73,452 | 72,851 | 601 | |||||||||
|
|
|
|
|
|
|
|||||||
| Basic Avg. Common Shares Outstanding |
73,452 | 72,851 | 601 | |||||||||
|
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|
|
|
|
|
|||||||
| Dividends Per Common Share |
$ | 0.02 | $ | 0.15 | $ | (0.13 | ) | |||||
|
|
|
|
|
|
|
|||||||
14
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 6 months ending June 30, 2015 and 2014
| Year-to-date | Change | |||||||||||
| (in thousands, except per share data) |
2015 | 2014 | ||||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 407,112 | $ | 706,674 | $ | (299,562 | ) | |||||
| Loss on derivative instruments, net |
(16,928 | ) | (138,237 | ) | 121,309 | |||||||
|
|
|
|
|
|
|
|||||||
| Total revenues |
390,184 | 568,437 | (178,253 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
121,335 | 132,141 | (10,806 | ) | ||||||||
| Production and ad valorem taxes |
32,417 | 55,373 | (22,956 | ) | ||||||||
| Depreciation, depletion and amortization |
284,224 | 260,464 | 23,760 | |||||||||
| Asset impairment |
66,996 | 2,588 | 64,408 | |||||||||
| Exploration |
11,781 | 12,801 | (1,020 | ) | ||||||||
| General and administrative |
70,707 | 65,715 | 4,992 | |||||||||
| Accretion of discount on asset retirement obligations |
3,679 | 3,726 | (47 | ) | ||||||||
| (Gain) loss on sale of assets and other |
(26,868 | ) | 1,062 | (27,930 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total costs and expenses |
564,271 | 533,870 | 30,401 | |||||||||
|
|
|
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|
|
|
|||||||
| Operating Income (Loss) |
(174,087 | ) | 34,567 | (208,654 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Other Income (Expense) |
||||||||||||
| Interest expense |
(23,002 | ) | (15,852 | ) | (7,150 | ) | ||||||
| Other income |
87 | 1,010 | (923 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total other expense |
(22,915 | ) | (14,842 | ) | (8,073 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Income (Loss) From Continuing Operations Before Income Taxes |
(197,002 | ) | 19,725 | (216,727 | ) | |||||||
| Income tax expense (benefit) |
(69,981 | ) | 7,232 | (77,213 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Income (Loss) From Continuing Operations |
(127,021 | ) | 12,493 | (139,514 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Discontinued Operations, net of tax |
||||||||||||
| Income from discontinued operations |
— | 33,920 | (33,920 | ) | ||||||||
| Loss on disposal of discontinued operations |
— | (1,050 | ) | 1,050 | ||||||||
|
|
|
|
|
|
|
|||||||
| Income From Discontinued Operations |
— | 32,870 | (32,870 | ) | ||||||||
|
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|
|
|
|
|
|||||||
| Net Income (Loss) |
$ | (127,021 | ) | $ | 45,363 | $ | (172,384 | ) | ||||
|
|
|
|
|
|
|
|||||||
| Diluted Earnings Per Average Common Share |
||||||||||||
| Continuing operations |
$ | (1.74 | ) | $ | 0.17 | $ | (1.91 | ) | ||||
| Discontinued operations |
— | 0.45 | (0.45 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Net Income (Loss) |
$ | (1.74 | ) | $ | 0.62 | $ | (2.36 | ) | ||||
|
|
|
|
|
|
|
|||||||
| Basic Earnings Per Average Common Share |
||||||||||||
| Continuing operations |
$ | (1.74 | ) | $ | 0.17 | $ | (1.91 | ) | ||||
| Discontinued operations |
— | 0.45 | (0.45 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Net Income (Loss) |
$ | (1.74 | ) | $ | 0.62 | $ | (2.36 | ) | ||||
|
|
|
|
|
|
|
|||||||
| Diluted Avg. Common Shares Outstanding |
73,143 | 73,031 | 112 | |||||||||
|
|
|
|
|
|
|
|||||||
| Basic Avg. Common Shares Outstanding |
73,143 | 72,737 | 406 | |||||||||
|
|
|
|
|
|
|
|||||||
| Dividends Per Common Share |
$ | 0.04 | $ | 0.30 | $ | (0.26 | ) | |||||
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|
|
|
|
|||||||
15
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of June 30, 2015 and December 31, 2014
| (in thousands) |
June 30, 2015 | December 31, 2014 | ||||||
| ASSETS |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ | 1,510 | $ | 1,852 | ||||
| Accounts receivable, net of allowance |
128,564 | 157,678 | ||||||
| Inventories |
17,988 | 14,251 | ||||||
| Assets held for sale |
— | 395,797 | ||||||
| Derivative instruments |
147,789 | 322,337 | ||||||
| Prepayments and other |
22,419 | 27,445 | ||||||
|
|
|
|
|
|||||
| Total current assets |
318,270 | 919,360 | ||||||
|
|
|
|
|
|||||
| Property, Plant and Equipment |
||||||||
| Oil and natural gas properties, net |
5,493,509 | 5,152,748 | ||||||
| Other property and equipment, net |
46,773 | 46,389 | ||||||
|
|
|
|
|
|||||
| Total property, plant and equipment, net |
5,540,282 | 5,199,137 | ||||||
|
|
|
|
|
|||||
| Other assets |
14,094 | 19,761 | ||||||
|
|
|
|
|
|||||
| TOTAL ASSETS |
$ | 5,872,646 | $ | 6,138,258 | ||||
|
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|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current Liabilities |
||||||||
| Accounts payable |
$ | 94,953 | $ | 101,453 | ||||
| Accrued taxes |
14,055 | 5,530 | ||||||
| Accrued wages and benefits |
22,217 | 21,553 | ||||||
| Accrued capital costs |
110,485 | 207,461 | ||||||
| Revenue and royalty payable |
62,179 | 72,047 | ||||||
| Liabilities related to assets held for sale |
— | 24,230 | ||||||
| Pension liabilities |
29,616 | 24,609 | ||||||
| Deferred income taxes |
11,970 | 79,164 | ||||||
| Derivative instruments |
10,220 | 988 | ||||||
| Other |
23,220 | 23,288 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
378,915 | 560,323 | ||||||
|
|
|
|
|
|||||
| Long-term debt |
686,575 | 1,038,563 | ||||||
| Asset retirement obligations |
99,049 | 94,060 | ||||||
| Deferred income taxes |
1,001,251 | 1,000,486 | ||||||
| Noncurrent derivative instruments |
3,902 | — | ||||||
| Other long-term liabilities |
12,906 | 30,222 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
2,182,598 | 2,723,654 | ||||||
|
|
|
|
|
|||||
| Total Shareholders’ Equity |
3,690,048 | 3,414,604 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 5,872,646 | $ | 6,138,258 | ||||
|
|
|
|
|
|||||
16
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending June 30, 2015 and 2014
| 2nd Quarter | Change | |||||||||||
| (in thousands, except sales price and per unit data) |
2015 | 2014 | ||||||||||
| Operating and production data from continuing operations |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
||||||||||||
| Oil |
$ | 188,599 | $ | 262,746 | $ | (74,147 | ) | |||||
| Natural gas liquids |
14,781 | 31,163 | (16,382 | ) | ||||||||
| Natural gas |
15,910 | 61,943 | (46,033 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | 219,290 | $ | 355,852 | $ | (136,562 | ) | |||||
|
|
|
|
|
|
|
|||||||
| Open non-cash mark-to-market gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (103,734 | ) | $ | (66,172 | ) | $ | (37,562 | ) | |||
| Natural gas liquids |
— | 40 | (40 | ) | ||||||||
| Natural gas |
(13,133 | ) | 6,511 | (19,644 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | (116,867 | ) | $ | (59,621 | ) | $ | (57,246 | ) | |||
|
|
|
|
|
|
|
|||||||
| Closed gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | 55,330 | $ | (25,754 | ) | $ | 81,084 | |||||
| Natural gas liquids |
— | 159 | (159 | ) | ||||||||
| Natural gas |
10,573 | 370 | 10,203 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | 65,903 | $ | (25,225 | ) | $ | 91,128 | |||||
|
|
|
|
|
|
|
|||||||
| Total revenues |
$ | 168,326 | $ | 271,006 | $ | (102,680 | ) | |||||
|
|
|
|
|
|
|
|||||||
| Production volumes |
||||||||||||
| Oil (MBbl) |
3,594 | 2,833 | 761 | |||||||||
| Natural gas liquids (MMgal) |
44.9 | 44.7 | 0.20 | |||||||||
| Natural gas (MMcf) |
7,134 | 14,676 | (7,542 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total production volumes (MBOE) |
5,853 | 6,344 | (491 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Average daily production volumes |
||||||||||||
| Oil (MBbl/d) |
39.5 | 31.1 | 8.4 | |||||||||
| Natural gas liquids (MMgal/d) |
0.5 | 0.5 | — | |||||||||
| Natural gas (MMcf/d) |
78.4 | 161.3 | (82.9 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total average daily production volumes (MBOE/d) |
64.3 | 69.7 | (5.4 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Average realized prices excluding effects of open non-cash mark-to-market derivative instruments |
||||||||||||
| Oil (per barrel) |
$ | 67.87 | $ | 83.65 | $ | (15.78 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.33 | $ | 0.70 | $ | (0.37 | ) | |||||
| Natural gas (per Mcf) |
$ | 3.71 | $ | 4.25 | $ | (0.54 | ) | |||||
| Average realized prices excluding effects of all derivative instruments |
||||||||||||
| Oil (per barrel) |
$ | 52.48 | $ | 92.74 | $ | (40.26 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.33 | $ | 0.70 | $ | (0.37 | ) | |||||
| Natural gas (per Mcf) |
$ | 2.23 | $ | 4.22 | $ | (1.99 | ) | |||||
| Costs per BOE |
||||||||||||
| Oil, natural gas liquids and natural gas production expenses |
$ | 9.15 | $ | 10.20 | $ | (1.05 | ) | |||||
| Production and ad valorem taxes |
$ | 2.28 | $ | 4.42 | $ | (2.14 | ) | |||||
| Depreciation, depletion and amortization |
$ | 25.60 | $ | 21.48 | $ | 4.12 | ||||||
| Exploration expense |
$ | 1.88 | $ | 0.19 | $ | 1.69 | ||||||
| General and administrative* |
$ | 6.60 | $ | 5.29 | $ | 1.31 | ||||||
| Net capital expenditures |
$ | 284,764 | $ | 322,572 | $ | (37,808 | ) | |||||
|
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|
|
|
|
|
|||||||
| * | Includes pension and pension settlement expenses of $0.19 and $0.50 for the three months ended June 30, 2015 and 2014, respectively. |
17
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 6 months ending June 30, 2015 and 2014
| Year-to-date | Change | |||||||||||
| (in thousands, except sales price and per unit data) |
2015 | 2014 | ||||||||||
| Operating and production data from continuing operations |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
||||||||||||
| Oil |
$ | 330,627 | $ | 516,505 | $ | (185,878 | ) | |||||
| Natural gas liquids |
25,615 | 59,366 | (33,751 | ) | ||||||||
| Natural gas |
50,870 | 130,803 | (79,933 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | 407,112 | $ | 706,674 | $ | (299,562 | ) | |||||
|
|
|
|
|
|
|
|||||||
| Open non-cash mark-to-market gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (155,503 | ) | $ | (87,636 | ) | $ | (67,867 | ) | |||
| Natural gas liquids |
— | 327 | (327 | ) | ||||||||
| Natural gas |
(21,015 | ) | (5,993 | ) | (15,022 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | (176,518 | ) | $ | (93,302 | ) | $ | (83,216 | ) | |||
|
|
|
|
|
|
|
|||||||
| Closed gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | 132,813 | $ | (40,556 | ) | $ | 173,369 | |||||
| Natural gas liquids |
— | 355 | (355 | ) | ||||||||
| Natural gas |
26,777 | (4,734 | ) | 31,511 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | 159,590 | $ | (44,935 | ) | $ | 204,525 | |||||
|
|
|
|
|
|
|
|||||||
| Total revenues |
$ | 390,184 | $ | 568,437 | $ | (178,253 | ) | |||||
|
|
|
|
|
|
|
|||||||
| Production volumes |
||||||||||||
| Oil (MBbl) |
6,829 | 5,584 | 1,245 | |||||||||
| Natural gas liquids (MMgal) |
81.1 | 82.7 | (1.6 | ) | ||||||||
| Natural gas (MMcf) |
20,412 | 28,800 | (8,388 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total production volumes (MBOE) |
12,162 | 12,352 | (190 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Average daily production volumes |
||||||||||||
| Oil (MBbl/d) |
37.7 | 30.9 | 6.8 | |||||||||
| Natural gas liquids (MMgal/d) |
0.5 | 0.5 | — | |||||||||
| Natural gas (MMcf/d) |
112.8 | 159.1 | (46.3 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total average daily production volumes (MBOE/d) |
67.2 | 68.2 | (1.0 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Average realized prices excluding effects of open non-cash mark-to-market derivative instruments |
||||||||||||
| Oil (per barrel) |
$ | 67.86 | $ | 85.23 | $ | (17.37 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.32 | $ | 0.72 | $ | (0.40 | ) | |||||
| Natural gas (per Mcf) |
$ | 3.80 | $ | 4.38 | $ | (0.58 | ) | |||||
| Average realized prices excluding effects of all derivative instruments |
||||||||||||
| Oil (per barrel) |
$ | 48.42 | $ | 92.50 | $ | (44.08 | ) | |||||
| Natural gas liquids (per gallon) |
$ | 0.32 | $ | 0.72 | $ | (0.40 | ) | |||||
| Natural gas (per Mcf) |
$ | 2.49 | $ | 4.54 | $ | (2.05 | ) | |||||
| Costs per BOE |
||||||||||||
| Oil, natural gas liquids and natural gas production expenses |
$ | 9.98 | $ | 10.70 | $ | (0.72 | ) | |||||
| Production and ad valorem taxes |
$ | 2.67 | $ | 4.48 | $ | (1.81 | ) | |||||
| Depreciation, depletion and amortization |
$ | 23.37 | $ | 21.09 | $ | 2.28 | ||||||
| Exploration expense |
$ | 0.97 | $ | 1.04 | $ | (0.07 | ) | |||||
| General and administrative* |
$ | 5.81 | $ | 5.32 | $ | 0.49 | ||||||
| Net capital expenditures |
$ | 660,591 | $ | 594,268 | $ | 66,323 | ||||||
|
|
|
|
|
|
|
|||||||
| * | Includes pension and pension settlement expenses of $0.34 and $0.79 for the six months ended June 30, 2015 and 2014, respectively. |
18