Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - ENERGEN CORP | d61602dex992.htm |
| EX-99.1 - EX-99.1 - ENERGEN CORP | d61602dex991.htm |
| 8-K - FORM 8-K - ENERGEN CORP | d61602d8k.htm |
Exhibit 99.3
Non-GAAP Financial Measures
Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes certain non-cash mark-to-market derivative financial instruments. Adjusted income from continuing operations further excludes impairment losses, income associated with certain divestments, gains and losses on disposal of discontinued operations and income and losses from discontinued operations. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.
| Quarter Ended 6/30/2015 | ||||||||
| Energen Net Income ($ in millions except per share data) |
Net Income | Per Diluted Share |
||||||
| Net Income (Loss) All Operations (GAAP) |
(111.6 | ) | (1.52 | ) | ||||
| Non-cash mark-to-market losses (net of $41.7 tax) |
75.1 | 1.02 | ||||||
| Asset impairment, other (net of $24.0 tax) |
42.9 | 0.58 | ||||||
| Loss associated w/ San Juan Basin divestment (net of $0.9 tax) |
1.2 | 0.02 | ||||||
|
|
|
|
|
|||||
| Adjusted Income from Continuing Operations (Non-GAAP) |
7.7 | 0.10 | ||||||
|
|
|
|
|
|||||
| Quarter Ended 6/30/2014 | ||||||||
| Energen Net Income ($ in millions except per share data) |
Net Income | Per Diluted Share |
||||||
| Net Income (Loss) All Operations (GAAP) |
(8.0 | ) | (0.11 | ) | ||||
| Non-cash mark-to-market losses (net of $21.5 tax) |
38.1 | 0.52 | ||||||
| Asset impairment, other (net of $0.9 tax) |
1.6 | 0.02 | ||||||
| Income associated w/ San Juan Basin divestment (net of $5.9 tax) |
(10.6 | ) | (0.15 | ) | ||||
|
|
|
|
|
|||||
| Adjusted Net Income from All Operations (Non-GAAP) |
21.2 | 0.29 | ||||||
|
|
|
|
|
|||||
| Loss from discontinued operations (net of $3.0 tax) |
4.8 | 0.07 | ||||||
|
|
|
|
|
|||||
| Adjusted Income from Continuing Operations (Non-GAAP) |
26.0 | 0.36 | ||||||
|
|
|
|
|
|||||
Note: Amounts may not sum due to rounding
Non-GAAP Financial Measures
Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Adjusted EBITDAX from continuing operations further excludes income associated with certain divestments, impairment losses, certain non-cash mark-to-market derivative financial instruments, income and losses from discontinued operations and gains and losses on disposal of discontinued operations. Energen believes these measures allow analysts and investors to understand the financial performance of the company from core business operations, without including the effects of capital structure, tax rates and depreciation. Further, this measure is useful in comparing the company and other oil and gas producing companies.
Reconciliation To GAAP Information
| Quarter Ended 6/30 | ||||||||
| ($ in millions) |
2015 | 2014 | ||||||
| Energen Net Income (Loss) (GAAP) |
(111.6 | ) | (8.0 | ) | ||||
| (Income) Loss associated w/ San Juan Basin divestment, net of tax |
1.2 | (10.6 | ) | |||||
|
|
|
|
|
|||||
| Adjusted Net Income from Continuing Operations (Non-GAAP) |
(110.4 | ) | (18.6 | ) | ||||
|
|
|
|
|
|||||
| Interest expense * |
11.2 | 8.0 | ||||||
| Income tax expense (benefit) * |
(60.4 | ) | (6.9 | ) | ||||
| Depreciation, depletion and amortization * |
149.8 | 121.9 | ||||||
| Accretion expense * |
1.7 | 1.5 | ||||||
| Exploration expense * |
4.5 | 0.0 | ||||||
| Dry hole expense * |
6.5 | 1.2 | ||||||
| Adjustment for asset impairment * |
60.4 | 1.3 | ||||||
| Adjustment for mark-to-market losses |
116.9 | 59.6 | ||||||
| Adjustment for income from discontinued operations, net of tax |
0.0 | 4.8 | ||||||
|
|
|
|
|
|||||
| Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP) |
180.3 | 172.9 | ||||||
|
|
|
|
|
|||||
Note: Amounts may not sum due to rounding
| * | Amount adjusted to exclude San Juan Basin divestment. See reconciliation to GAAP Information for the Quarter Ended 6/30/2015 and 6/30/2014. |
Non-GAAP Financial Measures
The consolidated statement of income excluding certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated with the divestment of assets held in the San Juan Basin provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this information is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
Energen Net Income (Loss) Excluding San Juan Divestment
Reconciliation to GAAP Information
| (in thousands except per share and production data) | Quarter Ended June 30, 2015 |
|||||||||||||||||||||||
| GAAP | $/BOE | San Juan Basin | $/BOE | Non-GAAP | $/BOE | |||||||||||||||||||
| Revenues |
||||||||||||||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 219,290 | $ | 592 | $ | 218,698 | ||||||||||||||||||
| Gain (loss) on derivative instruments |
(50,964 | ) | — | (50,964 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Revenues |
168,326 | 592 | 167,734 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Operating Costs and Expenses |
||||||||||||||||||||||||
| Oil, natural gas liquids & natural gas production |
53,581 | $ | 9.15 | 1,886 | $ | 40.13 | 51,695 | $ | 8.90 | |||||||||||||||
| Production and ad valorem taxes |
13,352 | $ | 2.28 | (174 | ) | ($ | 3.70 | ) | 13,526 | $ | 2.33 | |||||||||||||
| O&G Depreciation, depletion and amortization |
148,374 | $ | 25.35 | — | $ | 0.00 | 148,374 | $ | 25.56 | |||||||||||||||
| FF&E Depreciation, depletion and amortization |
1,469 | $ | 0.25 | — | $ | 0.00 | 1,469 | $ | 0.25 | |||||||||||||||
| Asset impairment |
60,413 | — | 60,413 | |||||||||||||||||||||
| Exploration |
11,018 | — | 11,018 | |||||||||||||||||||||
| General and administrative |
38,652 | $ | 6.60 | (1 | ) | ($ | 0.02 | ) | 38,653 | $ | 6.66 | |||||||||||||
| Accretion of discount on asset retirement obligations |
1,669 | — | 1,669 | |||||||||||||||||||||
| (Gain) loss on sale of assets and other |
1,476 | 994 | 482 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total costs and expenses |
330,004 | 2,705 | 327,299 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Operating Income (Loss) |
(161,678 | ) | (2,113 | ) | (159,565 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Other Income/(Expense) |
||||||||||||||||||||||||
| Interest Expense |
(11,244 | ) | — | (11,244 | ) | |||||||||||||||||||
| Other income |
41 | — | 41 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total other expense |
(11,203 | ) | — | (11,203 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income (Loss) from Continuing Operations Before Income Taxes |
(172,881 | ) | (2,113 | ) | (170,768 | ) | ||||||||||||||||||
| Income tax expense (benefit) |
(61,280 | ) | (864 | ) | (60,416 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income (Loss) From Continuing Operations |
(111,601 | ) | (1,249 | ) | (110,352 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Discontinued Operations, net of tax |
||||||||||||||||||||||||
| Income from discontinued operations |
— | — | — | |||||||||||||||||||||
| Loss on Disposal of discontinued ops |
— | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income from discontinued ops |
— | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net Income (Loss) |
$ | (111,601 | ) | $ | (1,249 | ) | $ | (110,352 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Diluted Earnings Per Average Common Share |
||||||||||||||||||||||||
| Continuing Operations |
$ | (1.52 | ) | $ | (0.02 | ) | $ | (1.50 | ) | |||||||||||||||
| Discontinued Operations |
$ | — | $ | — | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net Income (Loss) |
$ | (1.52 | ) | $ | (0.02 | ) | $ | (1.50 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Basic earning Per Average Common Share |
||||||||||||||||||||||||
| Continuing Operations |
$ | (1.52 | ) | $ | (0.02 | ) | $ | (1.50 | ) | |||||||||||||||
| Discontinued Operations |
$ | — | $ | — | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net Income (Loss) |
$ | (1.52 | ) | $ | (0.02 | ) | $ | (1.50 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Oil |
3,594 | (1 | ) | 3,595 | ||||||||||||||||||||
| NGL |
1,070 | 10 | 1,060 | |||||||||||||||||||||
| Gas |
1,189 | 38 | 1,151 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Production (mboe) |
5,853 | 47 | 5,806 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Production (boepd) |
64,319 | 516 | 63,802 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Note: Amounts may not sum due to rounding
Non-GAAP Financial Measures
The consolidated statement of income excluding certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated with the divestment of assets held in the San Juan Basin provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this information is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
Energen Net Income (Loss) Excluding San Juan Divestment
Reconciliation to GAAP Information
| (in thousands except per share and production data) | Quarter Ended June 30, 2014 |
|||||||||||||||||||||||
| GAAP | $/BOE | San Juan Basin | $/BOE | Non-GAAP | $/BOE | |||||||||||||||||||
| Revenues |
||||||||||||||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 355,852 | $ | 43,086 | $ | 312,766 | ||||||||||||||||||
| Gain (loss) on derivative instruments |
(84,846 | ) | 6,278 | (91,124 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Revenues |
271,006 | 49,364 | 221,642 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Operating Costs and Expenses |
||||||||||||||||||||||||
| Oil, natural gas liquids & natural gas production |
64,697 | $ | 10.20 | 15,017 | $ | 9.21 | 49,680 | $ | 10.54 | |||||||||||||||
| Production and ad valorem taxes |
28,049 | $ | 4.42 | 3,750 | $ | 2.30 | 24,299 | $ | 5.15 | |||||||||||||||
| O&G Depreciation, depletion and amortization |
135,164 | $ | 21.31 | 14,288 | $ | 8.77 | 120,876 | $ | 25.63 | |||||||||||||||
| FF&E Depreciation, depletion and amortization |
1,080 | $ | 0.17 | 62 | $ | 0.04 | 1,018 | $ | 0.22 | |||||||||||||||
| Asset impairment |
1,342 | — | 1,342 | |||||||||||||||||||||
| Exploration |
1,233 | 3 | 1,230 | |||||||||||||||||||||
| General and administrative |
33,542 | $ | 5.29 | (612 | ) | ($ | 0.38 | ) | 34,154 | $ | 7.25 | |||||||||||||
| Accretion of discount on asset retirement obligations |
1,883 | 388 | 1,495 | |||||||||||||||||||||
| (Gain) loss on sale of assets and other |
909 | — | 909 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total costs and expenses |
267,899 | 32,896 | 235,003 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Operating Income (Loss) |
3,107 | 16,468 | (13,361 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Other Income/(Expense) |
||||||||||||||||||||||||
| Interest Expense |
(7,964 | ) | — | (7,964 | ) | |||||||||||||||||||
| Other income |
687 | — | 687 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total other expense |
(7,277 | ) | — | (7,277 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income (Loss) from Continuing Operations Before Income Taxes |
(4,170 | ) | 16,468 | (20,638 | ) | |||||||||||||||||||
| Income tax expense (benefit) |
(1,016 | ) | 5,853 | (6,869 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income (Loss) From Continuing Operations |
(3,154 | ) | 10,615 | (13,769 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Discontinued Operations, net of tax |
||||||||||||||||||||||||
| Income (Loss) from discontinued operations |
(4,799 | ) | — | (4,799 | ) | |||||||||||||||||||
| Loss on Disposal of discontinued ops |
— | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income from discontinued ops |
(4,799 | ) | — | (4,799 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net Income (Loss) |
$ | (7,953 | ) | $ | 10,615 | $ | (18,568 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Diluted Earnings Per Average Common Share |
||||||||||||||||||||||||
| Continuing Operations |
$ | (0.04 | ) | $ | 0.15 | $ | (0.19 | ) | ||||||||||||||||
| Discontinued Operations |
$ | (0.07 | ) | $ | — | $ | (0.07 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net Income (Loss) |
$ | (0.11 | ) | $ | 0.15 | $ | (0.26 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Basic earning Per Average Common Share |
||||||||||||||||||||||||
| Continuing Operations |
$ | (0.04 | ) | $ | 0.15 | $ | (0.19 | ) | ||||||||||||||||
| Discontinued Operations |
$ | (0.07 | ) | $ | — | $ | (0.07 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net Income (Loss) |
$ | (0.11 | ) | $ | 0.15 | $ | (0.26 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Oil |
2,833 | 3 | 2,830 | |||||||||||||||||||||
| NGL |
1,065 | 167 | 898 | |||||||||||||||||||||
| Gas |
2,446 | 1,460 | 986 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Production (mboe) |
6,344 | 1,630 | 4,714 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total Production (boepd) |
69,714 | 17,912 | 51,802 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Note: Amounts may not sum due to rounding
Non-GAAP Financial Measures
Excluding production associated with certain divestments is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding data associated with the divestment of assets held in the San Juan Basin provides analysts and investors useful information to understand the financial performance of the company from ongoing business operations. Further, this measure is useful in comparing the company and other oil and gas producing companies operating primarily in the Permian Basin.
Energen Production Excluding San Juan Divestment
Reconciliation to GAAP Information
| Quarter Ended March 31, 2015 |
||||||||||||
| GAAP | San Juan Basin | Non-GAAP | ||||||||||
| Oil |
3,235 | 2 | 3,233 | |||||||||
| NGL |
861 | 129 | 732 | |||||||||
| Gas |
2,213 | 1,309 | 904 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Production (mboe) |
6,309 | 1,440 | 4,869 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Production (boepd) |
70,100 | 16,000 | 54,100 | |||||||||
|
|
|
|
|
|
|
|||||||
Energen Production Excluding San Juan Divestment
Reconciliation to GAAP Information
| Year-to-Date Ended December 31, 2014 |
||||||||||||
| GAAP | San Juan Basin | Non-GAAP | ||||||||||
| Oil |
11,814 | 16 | 11,798 | |||||||||
| NGL |
4,103 | 695 | 3,408 | |||||||||
| Gas |
9,767 | 5,876 | 3,891 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Production (mboe) |
25,684 | 6,587 | 19,097 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total Production (boepd) |
70,367 | 18,047 | 52,320 | |||||||||
|
|
|
|
|
|
|
|||||||
Note: Amounts may not sum due to rounding