Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - ENERGEN CORP | d530858dex992.htm |
| EX-99.1 - EX-99.1 - ENERGEN CORP | d530858dex991.htm |
| 8-K - 8-K - ENERGEN CORP | d530858d8k.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 the effects of certain non-cash mark-to-market derivative financial instruments. Adjusted income from continuing operations further excludes impairment losses, income (loss) associated with divestitures, and the benefit of the Tax Cut and Jobs Act. 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.
| Three Months Ended 12/31/17 | ||||||||
| Energen Net Income ($ in millions except per share data) |
Net Income | Per Diluted Share |
||||||
| Net Income (Loss) All Operations (GAAP) |
262.4 | 2.68 | ||||||
| Non-cash mark-to-market losses (net of $20.6 tax) |
37.5 | 0.38 | ||||||
| Asset impairment, other (net of $0.8 tax) |
1.4 | 0.01 | ||||||
| Benefit of Tax Cuts and Jobs Act |
(240.1 | ) | (2.45 | ) | ||||
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|
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|
|||||
| Adjusted Income from Continuing Operations (Non-GAAP) |
61.3 | 0.63 | ||||||
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| Three Months Ended 12/31/16 | ||||||||
| Energen Net Income ($ in millions except per share data) |
Net Income | Per Diluted Share |
||||||
| Net Income (Loss) All Operations (GAAP) |
(54.5 | ) | (0.56 | ) | ||||
| Non-cash mark-to-market losses (net of $12.5 tax) |
22.8 | 0.23 | ||||||
| Asset impairment, other (net of $0.0 tax) * |
nm | nm | ||||||
| Loss associated with property sales (net of $1.3 tax) |
5.0 | 0.05 | ||||||
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|
|
|
|||||
| Adjusted Income from Continuing Operations (Non-GAAP) |
(26.6 | ) | (0.27 | ) | ||||
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|
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|
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Note: Amounts may not sum due to rounding
| * | Approximately $25,000 (net of tax) |
Non-GAAP Financial Measures
Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes the effects of certain non-cash mark-to-market derivative financial instruments. Adjusted income from continuing operations further excludes impairment losses, certain prior period losses associated with a reduction in force, pension settlement expenses, income associated with divestitures, and the benefit of the Tax Cut and Jobs Act. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.
| Year Ended 12/31/17 | ||||||||
| Energen Net Income ($ in millions except per share data) |
Net Income | Per Diluted Share |
||||||
| Net Income (Loss) All Operations (GAAP) |
306.8 | 3.14 | ||||||
| Non-cash mark-to-market losses (net of $3.8 tax) |
6.9 | 0.07 | ||||||
| Asset impairment, other (net of $1.4 tax) |
2.4 | 0.03 | ||||||
| Income associated with property sales (net of $2.0 tax) |
(2.5 | ) | (0.03 | ) | ||||
| Benefit of Tax Cuts and Jobs Act |
(240.1 | ) | (2.46 | ) | ||||
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|
|||||
| Adjusted Income from Continuing Operations (Non-GAAP) |
73.6 | 0.75 | ||||||
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| Year Ended 12/31/16 | ||||||||
| Energen Net Income ($ in millions except per share data) |
Net Income | Per Diluted Share |
||||||
| Net Income (Loss) All Operations (GAAP) |
(167.5 | ) | (1.77 | ) | ||||
| Non-cash mark-to-market losses (net of $25.3 tax) |
45.9 | 0.49 | ||||||
| Asset impairment, other (net of $67.5 tax) |
121.7 | 1.29 | ||||||
| Income associated with property sales (net of $76.1 tax) |
(134.6 | ) | (1.42 | ) | ||||
| Pension settlement expenses (net of $1.2 tax) |
2.2 | 0.02 | ||||||
| Reduction in force expenses (net of $1.9 tax) |
3.5 | 0.04 | ||||||
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|
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| Adjusted Income from Continuing Operations (Non-GAAP) |
(128.8 | ) | (1.36 | ) | ||||
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|
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Note: Amounts may not sum due to rounding
Non-GAAP Financial Measures
Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Adjusted EBITDAX from continuing operations further excludes impairment losses, certain non-cash mark-to-market derivative financial instruments, and income (loss) associated with divestitures. Energen believes these measures allow analysts and investors to understand the financial performance of the company from core business operations, without including the effects of capital structure, tax rates and depreciation. Further, this measure is useful in comparing the company and other oil and gas producing companies.
Reconciliation To GAAP Information
| Three Months Ended 12/31 | ||||||||
| ($ in millions) |
2017 | 2016 | ||||||
| Energen Net Income (Loss) (GAAP) |
262.4 | (54.5 | ) | |||||
| Loss associated with property sales, net of tax |
0.0 | 5.0 | ||||||
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|
|
|
|||||
| Net Income (Loss) Excluding Property Sales (Non-GAAP) |
262.4 | (49.5 | ) | |||||
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|
|||||
| Interest expense |
10.3 | 9.0 | ||||||
| Income tax expense (benefit) ** |
(225.8 | ) | (21.5 | ) | ||||
| Depreciation, depletion and amortization |
130.4 | 103.4 | ||||||
| Accretion expense |
1.5 | 1.6 | ||||||
| Exploration expense |
1.7 | 3.6 | ||||||
| Adjustment for asset impairment |
2.2 | nm | ||||||
| Adjustment for mark-to-market (gains)/ losses |
58.2 | 35.3 | ||||||
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|
|||||
| Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP) |
241.0 | 82.1 | ||||||
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|
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|
|||||
Note: Amounts may not sum due to rounding
| ** | Amount adjusted to exclude 2016 property sales in prior period. See reconciliation to GAAP Information for the Three Months Ended 12/31/2016. |
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 impairment losses, certain non-cash mark-to-market derivative financial instruments, prior period losses associated with a reduction in force, pension settlement expenses, and income associated with divestitures. 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
| Year Ended 12/31 | ||||||||
| ($ in millions) |
2017 | 2016 | ||||||
| Energen Net Income (Loss) (GAAP) |
306.8 | (167.5 | ) | |||||
| Income associated with property sales, net of tax* |
(2.5 | ) | (134.6 | ) | ||||
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|
|||||
| Net Income (Loss) Excluding Property Sales (Non-GAAP) |
304.3 | (302.1 | ) | |||||
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|
|
|||||
| Interest expense |
38.4 | 36.9 | ||||||
| Income tax expense (benefit) ** |
(201.4 | ) | (155.7 | ) | ||||
| Depreciation, depletion and amortization ** |
483.4 | 433.4 | ||||||
| Accretion expense ** |
5.8 | 6.2 | ||||||
| Exploration expense ** |
7.9 | 5.3 | ||||||
| Adjustment for asset impairment |
3.8 | 189.2 | ||||||
| Adjustment for mark-to-market (gains)/ losses |
10.8 | 71.2 | ||||||
| Adjustment for pension settlement expenses |
0.0 | 3.3 | ||||||
| Adjustment for reduction in force expenses |
0.0 | 5.5 | ||||||
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|
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| Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP) |
653.0 | 293.2 | ||||||
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|
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Note: Amounts may not sum due to rounding
| * | For quarter to quarter comparability, excluded from GAAP income in the current quarter is an immaterial sale of certain unproved leasehold properties in Wyoming. |
| ** | Amount adjusted to exclude 2016 property sales in prior period. See reconciliation to GAAP Information for the Year Ended 12/31/2016. |
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 2016 property sales 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 2016 Property Sales
Reconciliation to GAAP Information
| Three Months Ended | ||||||||||||
| (in thousands except per share and production data) | December 31, 2016 | |||||||||||
| GAAP | 2016 Property Sales | Non-GAAP | ||||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 162,992 | $ | 42 | $ | 162,950 | ||||||
| Gain (loss) on derivative instruments |
(48,472 | ) | — | (48,472 | ) | |||||||
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| Total Revenues |
114,520 | 42 | 114,478 | |||||||||
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| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
38,867 | 258 | 38,609 | |||||||||
| Production and ad valorem taxes |
9,516 | 209 | 9,307 | |||||||||
| O&G Depreciation, depletion and amortization |
102,230 | — | 102,230 | |||||||||
| FF&E Depreciation, depletion and amortization |
1,167 | — | 1,167 | |||||||||
| Asset impairment |
40 | — | 40 | |||||||||
| Exploration |
3,635 | — | 3,635 | |||||||||
| General and administrative |
20,906 | 1 | 20,905 | |||||||||
| Accretion of discount on asset retirement obligations |
1,580 | — | 1,580 | |||||||||
| (Gain) loss on sale of assets and other |
5,175 | 5,889 | (714 | ) | ||||||||
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| Total costs and expenses |
183,116 | 6,357 | 176,759 | |||||||||
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| Operating Income (Loss) |
(68,596 | ) | (6,315 | ) | (62,281 | ) | ||||||
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| Other Income/(Expense) |
||||||||||||
| Interest expense |
(9,041 | ) | — | (9,041 | ) | |||||||
| Other income |
398 | 8 | 390 | |||||||||
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| Total other expense |
(8,643 | ) | 8 | (8,651 | ) | |||||||
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| Loss Before Income Taxes |
(77,239 | ) | (6,307 | ) | (70,932 | ) | ||||||
| Income tax expense (benefit) |
(22,769 | ) | (1,293 | ) | (21,476 | ) | ||||||
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| Net Income (Loss) |
$ | (54,470 | ) | $ | (5,014 | ) | $ | (49,456 | ) | |||
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| Diluted Earnings Per Average Common Share |
$ | (0.56 | ) | $ | (0.05 | ) | $ | (0.51 | ) | |||
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| Basic earning Per Average Common Share |
$ | (0.56 | ) | $ | (0.05 | ) | $ | (0.51 | ) | |||
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| Oil |
2,944 | 1 | 2,943 | |||||||||
| NGL |
892 | 1 | 891 | |||||||||
| Natural Gas |
1,084 | — | 1,084 | |||||||||
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| Total Production (mboe) |
4,920 | 2 | 4,918 | |||||||||
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| Total Production (boepd) |
53,478 | 22 | 53,457 | |||||||||
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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 2016 property sales 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 2016 Property Sales
Reconciliation to GAAP Information
| Year Ended | ||||||||||||
| (in thousands except per share and production data) | December 31, 2016 | |||||||||||
| GAAP | 2016 Property Sales | Non-GAAP | ||||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 621,366 | $ | 29,808 | $ | 591,558 | ||||||
| Gain (loss) on derivative instruments |
(88,477 | ) | — | (88,477 | ) | |||||||
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| Total Revenues |
532,889 | 29,808 | 503,081 | |||||||||
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| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
171,714 | 14,784 | 156,930 | |||||||||
| Production and ad valorem taxes |
42,938 | 3,589 | 39,349 | |||||||||
| O&G Depreciation, depletion and amortization |
443,007 | 14,366 | 428,641 | |||||||||
| FF&E Depreciation, depletion and amortization |
4,954 | 153 | 4,801 | |||||||||
| Asset impairment |
220,652 | 31,407 | 189,245 | |||||||||
| Exploration |
5,415 | 117 | 5,298 | |||||||||
| General and administrative |
95,689 | 523 | 95,166 | |||||||||
| Accretion of discount on asset retirement obligations |
6,672 | 501 | 6,171 | |||||||||
| (Gain) loss on sale of assets and other |
(246,922 | ) | (246,283 | ) | (639 | ) | ||||||
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| Total costs and expenses |
744,119 | (180,843 | ) | 924,962 | ||||||||
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| Operating Income (Loss) |
(211,230 | ) | 210,651 | (421,881 | ) | |||||||
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| Other Income/(Expense) |
||||||||||||
| Interest expense |
(36,899 | ) | — | (36,899 | ) | |||||||
| Other income |
978 | 58 | 920 | |||||||||
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| Total other expense |
(35,921 | ) | 58 | (35,979 | ) | |||||||
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| Loss Before Income Taxes |
(247,151 | ) | 210,709 | (457,860 | ) | |||||||
| Income tax expense (benefit) |
(79,638 | ) | 76,102 | (155,740 | ) | |||||||
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| Net Income (Loss) |
$ | (167,513 | ) | $ | 134,607 | $ | (302,120 | ) | ||||
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| Diluted Earnings Per Average Common Share |
$ | (1.77 | ) | $ | 1.43 | $ | (3.20 | ) | ||||
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|||||||
| Basic earning Per Average Common Share |
$ | (1.77 | ) | $ | 1.43 | $ | (3.20 | ) | ||||
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|||||||
| Oil |
13,213 | 597 | 12,616 | |||||||||
| NGL |
3,892 | 432 | 3,460 | |||||||||
| Natural Gas |
4,534 | 629 | 3,905 | |||||||||
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| Total Production (mboe) |
21,639 | 1,658 | 19,981 | |||||||||
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| Total Production (boepd) |
59,123 | 4,530 | 54,593 | |||||||||
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Note: Amounts may not sum due to rounding