Attached files
| file | filename |
|---|---|
| EX-99.3 - EX-99.3 - ENERGEN CORP | d530858dex993.htm |
| EX-99.1 - EX-99.1 - ENERGEN CORP | d530858dex991.htm |
| 8-K - 8-K - ENERGEN CORP | d530858d8k.htm |
Exhibit 99.2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the 3 months ending December 31, 2017 and 2016
| 4th Quarter | ||||||||||||
| (in thousands, except per share data) |
2017 | 2016 | Change | |||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 343,226 | $ | 162,992 | $ | 180,234 | ||||||
| Loss on derivative instruments, net |
(71,430 | ) | (48,472 | ) | (22,958 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Total revenues |
271,796 | 114,520 | 157,276 | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
53,951 | 38,867 | 15,084 | |||||||||
| Production and ad valorem taxes |
18,083 | 9,516 | 8,567 | |||||||||
| Depreciation, depletion and amortization |
130,419 | 103,397 | 27,022 | |||||||||
| Asset impairment |
82 | 40 | 42 | |||||||||
| Exploration |
3,816 | 3,635 | 181 | |||||||||
| General and administrative (including stock-based compensation of $4,301 and $5,148 for the three months ended December 31, 2017, and 2016, respectively) |
23,158 | 20,906 | 2,252 | |||||||||
| Accretion of discount on asset retirement obligations |
1,501 | 1,580 | (79 | ) | ||||||||
| (Gain) loss on sale of assets and other, net |
(6,031 | ) | 5,175 | (11,206 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total operating costs and expenses |
224,979 | 183,116 | 41,863 | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating Income (Loss) |
46,817 | (68,596 | ) | 115,413 | ||||||||
|
|
|
|
|
|
|
|||||||
| Other Income (Expense) |
||||||||||||
| Interest expense |
(10,327 | ) | (9,041 | ) | (1,286 | ) | ||||||
| Other income |
131 | 398 | (267 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total other expense |
(10,196 | ) | (8,643 | ) | (1,553 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Income (Loss) Before Income Taxes |
36,621 | (77,239 | ) | 113,860 | ||||||||
| Income tax benefit |
(225,809 | ) | (22,769 | ) | (203,040 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net Income (Loss) |
$ | 262,430 | $ | (54,470 | ) | $ | 316,900 | |||||
|
|
|
|
|
|
|
|||||||
| Diluted Earnings Per Average Common Share |
$ | 2.68 | $ | (0.56 | ) | $ | 3.24 | |||||
|
|
|
|
|
|
|
|||||||
| Basic Earnings Per Average Common Share |
$ | 2.70 | $ | (0.56 | ) | $ | 3.26 | |||||
|
|
|
|
|
|
|
|||||||
| Diluted Average Common Shares Outstanding |
97,831 | 97,074 | 757 | |||||||||
|
|
|
|
|
|
|
|||||||
| Basic Average Common Shares Outstanding |
97,202 | 97,074 | 128 | |||||||||
|
|
|
|
|
|
|
|||||||
1
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the 12 months ending December 31, 2017 and 2016
| Year-to-date | ||||||||||||
| (in thousands, except per share data) |
2017 | 2016 | Change | |||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 987,438 | $ | 621,366 | $ | 366,072 | ||||||
| Loss on derivative instruments, net |
(26,393 | ) | (88,477 | ) | 62,084 | |||||||
|
|
|
|
|
|
|
|||||||
| Total revenues |
961,045 | 532,889 | 428,156 | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
183,697 | 171,714 | 11,983 | |||||||||
| Production and ad valorem taxes |
59,447 | 42,938 | 16,509 | |||||||||
| Depreciation, depletion and amortization |
483,376 | 447,961 | 35,415 | |||||||||
| Asset impairment |
1,671 | 220,652 | (218,981 | ) | ||||||||
| Exploration |
10,075 | 5,415 | 4,660 | |||||||||
| General and administrative (including stock-based compensation of $15,402 and $19,641 for the years ended December 31, 2017, and 2016, respectively) |
84,823 | 95,689 | (10,866 | ) | ||||||||
| Accretion of discount on asset retirement obligations |
5,831 | 6,672 | (841 | ) | ||||||||
| Gain on sale of assets and other, net |
(13,011 | ) | (246,922 | ) | 233,911 | |||||||
|
|
|
|
|
|
|
|||||||
| Total operating costs and expenses |
815,909 | 744,119 | 71,790 | |||||||||
|
|
|
|
|
|
|
|||||||
| Operating Income (Loss) |
145,136 | (211,230 | ) | 356,366 | ||||||||
|
|
|
|
|
|
|
|||||||
| Other Income (Expense) |
||||||||||||
| Interest expense |
(38,366 | ) | (36,899 | ) | (1,467 | ) | ||||||
| Other income |
617 | 978 | (361 | ) | ||||||||
|
|
|
|
|
|
|
|||||||
| Total other expense |
(37,749 | ) | (35,921 | ) | (1,828 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Income (Loss) Before Income Taxes |
107,387 | (247,151 | ) | 354,538 | ||||||||
| Income tax benefit |
(199,441 | ) | (79,638 | ) | (119,803 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net Income (Loss) |
$ | 306,828 | $ | (167,513 | ) | $ | 474,341 | |||||
|
|
|
|
|
|
|
|||||||
| Diluted Earnings Per Average Common Share |
$ | 3.14 | $ | (1.77 | ) | $ | 4.91 | |||||
|
|
|
|
|
|
|
|||||||
| Basic Earnings Per Average Common Share |
$ | 3.16 | $ | (1.77 | ) | $ | 4.93 | |||||
|
|
|
|
|
|
|
|||||||
| Diluted Average Common Shares Outstanding |
97,707 | 94,476 | 3,231 | |||||||||
|
|
|
|
|
|
|
|||||||
| Basic Average Common Shares Outstanding |
97,182 | 94,476 | 2,706 | |||||||||
|
|
|
|
|
|
|
|||||||
2
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of December 31, 2017 and 2016
| (in thousands) |
December 31, 2017 | December 31, 2016 | ||||||
| ASSETS |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ | 439 | $ | 386,093 | ||||
| Accounts receivable, net |
158,787 | 73,322 | ||||||
| Inventories, net |
13,177 | 14,222 | ||||||
| Derivative instruments |
— | 50 | ||||||
| Income tax receivable |
6,905 | 27,153 | ||||||
| Prepayments and other |
12,085 | 5,071 | ||||||
|
|
|
|
|
|||||
| Total current assets |
191,393 | 505,911 | ||||||
|
|
|
|
|
|||||
| Property, Plant and Equipment |
||||||||
| Oil and natural gas properties, net |
4,718,939 | 4,016,683 | ||||||
| Other property and equipment, net |
44,581 | 44,869 | ||||||
|
|
|
|
|
|||||
| Total property, plant and equipment, net |
4,763,520 | 4,061,552 | ||||||
|
|
|
|
|
|||||
| Other postretirement assets |
2,646 | 3,619 | ||||||
| Noncurrent derivative instruments |
70,716 | — | ||||||
| Other assets |
5,620 | 8,741 | ||||||
|
|
|
|
|
|||||
| TOTAL ASSETS |
$ | 5,033,895 | $ | 4,579,823 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current Liabilities |
||||||||
| Long-term debt due within one year |
$ | — | $ | 24,000 | ||||
| Accounts payable |
75,167 | 65,031 | ||||||
| Accrued taxes |
2,631 | 7,252 | ||||||
| Accrued wages and benefits |
26,170 | 25,089 | ||||||
| Accrued capital costs |
74,909 | 79,988 | ||||||
| Revenue and royalty payable |
54,072 | 51,217 | ||||||
| Derivative instruments |
71,379 | 65,467 | ||||||
| Other |
17,916 | 20,160 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
322,244 | 338,204 | ||||||
|
|
|
|
|
|||||
| Long-term debt |
782,861 | 527,443 | ||||||
| Asset retirement obligations |
88,378 | 81,544 | ||||||
| Noncurrent derivative instruments |
8,886 | 3,006 | ||||||
| Deferred income taxes |
387,807 | 495,888 | ||||||
| Other long-term liabilities |
5,262 | 13,136 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
1,595,438 | 1,459,221 | ||||||
|
|
|
|
|
|||||
| Total Shareholders’ Equity |
3,438,457 | 3,120,602 | ||||||
|
|
|
|
|
|||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 5,033,895 | $ | 4,579,823 | ||||
|
|
|
|
|
|||||
3
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending December 31, 2017 and 2016
| 4th Quarter | ||||||||||||
| (in thousands, except sales price and per unit data) |
2017 | 2016 | Change | |||||||||
| Operating and production data |
| |||||||||||
| Oil, natural gas liquids and natural gas sales |
||||||||||||
| Oil |
$ | 281,818 | $ | 134,112 | $ | 147,706 | ||||||
| Natural gas liquids |
38,522 | 14,068 | 24,454 | |||||||||
| Natural gas |
22,886 | 14,812 | 8,074 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | 343,226 | $ | 162,992 | $ | 180,234 | ||||||
|
|
|
|
|
|
|
|||||||
| Open non-cash mark-to-market gains (losses) on derivative instruments |
| |||||||||||
| Oil |
$ | (53,388 | ) | $ | (23,704 | ) | $ | (29,684 | ) | |||
| Natural gas liquids |
(4,863 | ) | (5,914 | ) | 1,051 | |||||||
| Natural gas |
54 | (5,712 | ) | 5,766 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | (58,197 | ) | $ | (35,330 | ) | $ | (22,867 | ) | |||
|
|
|
|
|
|
|
|||||||
| Closed gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (10,894 | ) | $ | (12,380 | ) | $ | 1,486 | ||||
| Natural gas liquids |
(4,312 | ) | — | (4,312 | ) | |||||||
| Natural gas |
1,973 | (762 | ) | 2,735 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | (13,233 | ) | $ | (13,142 | ) | $ | (91 | ) | |||
|
|
|
|
|
|
|
|||||||
| Total revenues |
$ | 271,796 | $ | 114,520 | $ | 157,276 | ||||||
|
|
|
|
|
|
|
|||||||
| Production volumes |
||||||||||||
| Oil (MBbl) |
5,343 | 2,944 | 2,399 | |||||||||
| Natural gas liquids (MMgal) |
74.8 | 37.5 | 37.3 | |||||||||
| Natural gas (MMcf) |
11,028 | 6,504 | 4,524 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total production volumes (MBOE) |
8,961 | 4,920 | 4,041 | |||||||||
|
|
|
|
|
|
|
|||||||
| Average daily production volumes |
||||||||||||
| Oil (MBbl/d) |
58.1 | 32.0 | 26.1 | |||||||||
| Natural gas liquids (MMgal/d) |
0.8 | 0.4 | 0.4 | |||||||||
| Natural gas (MMcf/d) |
119.9 | 70.7 | 49.2 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total average daily production volumes (MBOE/d) |
97.4 | 53.5 | 43.9 | |||||||||
|
|
|
|
|
|
|
|||||||
| Average realized prices excluding effects of open
non-cash mark-to-market derivative |
| |||||||||||
| Oil (per barrel) |
$ | 50.71 | $ | 41.35 | $ | 9.36 | ||||||
| Natural gas liquids (per gallon) |
$ | 0.46 | $ | 0.38 | $ | 0.08 | ||||||
| Natural gas (per Mcf) |
$ | 2.25 | $ | 2.16 | $ | 0.09 | ||||||
| Average realized prices excluding effects of all derivative instruments |
| |||||||||||
| Oil (per barrel) |
$ | 52.75 | $ | 45.55 | $ | 7.20 | ||||||
| Natural gas liquids (per gallon) |
$ | 0.52 | $ | 0.38 | $ | 0.14 | ||||||
| Natural gas (per Mcf) |
$ | 2.08 | $ | 2.28 | $ | (0.20 | ) | |||||
| Costs per BOE |
||||||||||||
| Oil, natural gas liquids and natural gas production expenses |
$ | 6.02 | $ | 7.90 | $ | (1.88 | ) | |||||
| Production and ad valorem taxes |
$ | 2.02 | $ | 1.93 | $ | 0.09 | ||||||
| Depreciation, depletion and amortization |
$ | 14.55 | $ | 21.02 | $ | (6.47 | ) | |||||
| Exploration expense |
$ | 0.43 | $ | 0.74 | $ | (0.31 | ) | |||||
| General and administrative |
$ | 2.58 | $ | 4.25 | $ | (1.67 | ) | |||||
| Capital expenditures (including acquisitions) |
$ | 217,475 | $ | 154,455 | $ | 63,020 | ||||||
4
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending December 31, 2017 and 2016
| Year-to-date | ||||||||||||
| (in thousands, except sales price and per unit data) |
2017 | 2016 | Change | |||||||||
| Operating and production data |
| |||||||||||
| Oil, natural gas liquids and natural gas sales |
||||||||||||
| Oil |
$ | 814,470 | $ | 521,017 | $ | 293,453 | ||||||
| Natural gas liquids |
98,298 | 48,652 | 49,646 | |||||||||
| Natural gas |
74,670 | 51,697 | 22,973 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | 987,438 | $ | 621,366 | $ | 366,072 | ||||||
|
|
|
|
|
|
|
|||||||
| Open non-cash mark-to-market gains (losses) on derivative instruments |
| |||||||||||
| Oil |
$ | (10,658 | ) | $ | (57,148 | ) | $ | 46,490 | ||||
| Natural gas liquids |
(9,011 | ) | (6,868 | ) | (2,143 | ) | ||||||
| Natural gas |
8,910 | (7,174 | ) | 16,084 | ||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | (10,759 | ) | $ | (71,190 | ) | $ | 60,431 | ||||
|
|
|
|
|
|
|
|||||||
| Closed gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (11,364 | ) | $ | (17,701 | ) | $ | 6,337 | ||||
| Natural gas liquids |
(7,780 | ) | — | (7,780 | ) | |||||||
| Natural gas |
3,510 | 414 | 3,096 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total |
$ | (15,634 | ) | $ | (17,287 | ) | $ | 1,653 | ||||
|
|
|
|
|
|
|
|||||||
| Total revenues |
$ | 961,045 | $ | 532,889 | $ | 428,156 | ||||||
|
|
|
|
|
|
|
|||||||
| Production volumes |
||||||||||||
| Oil (MBbl) |
16,951 | 13,213 | 3,738 | |||||||||
| Natural gas liquids (MMgal) |
220.7 | 163.5 | 57.2 | |||||||||
| Natural gas (MMcf) |
33,528 | 27,204 | 6,324 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total production volumes (MBOE) |
27,794 | 21,639 | 6,155 | |||||||||
|
|
|
|
|
|
|
|||||||
| Average daily production volumes |
||||||||||||
| Oil (MBbl/d) |
46.4 | 36.1 | 10.3 | |||||||||
| Natural gas liquids (MMgal/d) |
0.6 | 0.4 | 0.2 | |||||||||
| Natural gas (MMcf/d) |
91.9 | 74.3 | 17.6 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total average daily production volumes (MBOE/d) |
76.1 | 59.1 | 17.0 | |||||||||
|
|
|
|
|
|
|
|||||||
| Average realized prices excluding effects of open
non-cash mark-to-market derivative |
| |||||||||||
| Oil (per barrel) |
$ | 47.38 | $ | 38.09 | $ | 9.29 | ||||||
| Natural gas liquids (per gallon) |
$ | 0.41 | $ | 0.30 | $ | 0.11 | ||||||
| Natural gas (per Mcf) |
$ | 2.33 | $ | 1.92 | $ | 0.41 | ||||||
| Average realized prices excluding effects of all derivative instruments |
| |||||||||||
| Oil (per barrel) |
$ | 48.05 | $ | 39.43 | $ | 8.62 | ||||||
| Natural gas liquids (per gallon) |
$ | 0.45 | $ | 0.30 | $ | 0.15 | ||||||
| Natural gas (per Mcf) |
$ | 2.23 | $ | 1.90 | $ | 0.33 | ||||||
| Costs per BOE |
||||||||||||
| Oil, natural gas liquids and natural gas production expenses |
$ | 6.61 | $ | 7.94 | $ | (1.33 | ) | |||||
| Production and ad valorem taxes |
$ | 2.14 | $ | 1.98 | $ | 0.16 | ||||||
| Depreciation, depletion and amortization |
$ | 17.39 | $ | 20.70 | $ | (3.31 | ) | |||||
| Exploration expense |
$ | 0.36 | $ | 0.25 | $ | 0.11 | ||||||
| General and administrative |
$ | 3.05 | $ | 4.42 | $ | (1.37 | ) | |||||
| Capital expenditures (includes acquisitions) |
$ | 1,189,342 | $ | 582,898 | $ | 606,444 | ||||||
5