Attached files
| file | filename |
|---|---|
| EX-99.3 - EX-99.3 - ENERGEN CORP | d465164dex993.htm |
| EX-99.1 - EX-99.1 - ENERGEN CORP | d465164dex991.htm |
| 8-K - 8-K - ENERGEN CORP | d465164d8k.htm |
Exhibit 99.2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the 3 months ending June 30, 2018 and 2017
| 2nd Quarter | ||||||||||||
| (in thousands, except per share data) |
2018 | 2017 | Change | |||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 371,567 | $ | 218,723 | $ | 152,844 | ||||||
| Gain (loss) on derivative instruments, net |
(31,919 | ) | 38,101 | (70,020 | ) | |||||||
|
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|
|
|
|||||||
| Total revenues |
339,648 | 256,824 | 82,824 | |||||||||
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|
|||||||
| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
57,958 | 43,909 | 14,049 | |||||||||
| Production and ad valorem taxes |
24,733 | 13,218 | 11,515 | |||||||||
| Depreciation, depletion and amortization |
134,011 | 121,549 | 12,462 | |||||||||
| Asset impairment |
73 | 29 | 44 | |||||||||
| Exploration |
1,059 | 1,998 | (939 | ) | ||||||||
| General and administrative (including stock-based compensation of $4,618 and $3,191 for the three months ended June 30, 2018 and 2017, respectively) |
21,933 | 19,908 | 2,025 | |||||||||
| Accretion of discount on asset retirement obligations |
1,567 | 1,443 | 124 | |||||||||
| (Gain) loss on sale of assets and other, net |
(113 | ) | 172 | (285 | ) | |||||||
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|||||||
| Total operating costs and expenses |
241,221 | 202,226 | 38,995 | |||||||||
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|||||||
| Operating Income |
98,427 | 54,598 | 43,829 | |||||||||
|
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|
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| Other Income (Expense) |
||||||||||||
| Interest expense |
(10,803 | ) | (9,202 | ) | (1,601 | ) | ||||||
| Other income |
465 | 218 | 247 | |||||||||
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|||||||
| Total other expense |
(10,338 | ) | (8,984 | ) | (1,354 | ) | ||||||
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|
|||||||
| Income Before Income Taxes |
88,089 | 45,614 | 42,475 | |||||||||
| Income tax expense |
19,815 | 16,133 | 3,682 | |||||||||
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|
|||||||
| Net Income |
$ | 68,274 | $ | 29,481 | $ | 38,793 | ||||||
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| Diluted Earnings Per Average Common Share |
$ | 0.70 | $ | 0.30 | $ | 0.40 | ||||||
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| Basic Earnings Per Average Common Share |
$ | 0.70 | $ | 0.30 | $ | 0.40 | ||||||
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| Diluted Average Common Shares Outstanding |
98,080 | 97,693 | 387 | |||||||||
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| Basic Average Common Shares Outstanding |
97,433 | 97,189 | 244 | |||||||||
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1
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the 6 months ending June 30, 2018 and 2017
| Year-to-date | ||||||||||||
| (in thousands, except per share data) |
2018 | 2017 | Change | |||||||||
| Revenues |
||||||||||||
| Oil, natural gas liquids and natural gas sales |
$ | 729,433 | $ | 395,098 | $ | 334,335 | ||||||
| Gain (loss) on derivative instruments, net |
(33,614 | ) | 102,647 | (136,261 | ) | |||||||
|
|
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|
|
|
|
|||||||
| Total revenues |
695,819 | 497,745 | 198,074 | |||||||||
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|
|||||||
| Operating Costs and Expenses |
||||||||||||
| Oil, natural gas liquids and natural gas production |
110,593 | 85,197 | 25,396 | |||||||||
| Production and ad valorem taxes |
47,301 | 26,038 | 21,263 | |||||||||
| Depreciation, depletion and amortization |
258,221 | 221,201 | 37,020 | |||||||||
| Asset impairment |
250 | 1,489 | (1,239 | ) | ||||||||
| Exploration |
2,457 | 5,634 | (3,177 | ) | ||||||||
| General and administrative (including stock-based compensation of $8,763 and $6,388 for the six months ended June 30, 2018 and 2017, respectively) |
44,190 | 40,424 | 3,766 | |||||||||
| Accretion of discount on asset retirement obligations |
3,100 | 2,857 | 243 | |||||||||
| Gain on sale of assets and other, net |
(33,836 | ) | (1,003 | ) | (32,833 | ) | ||||||
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|||||||
| Total operating costs and expenses |
432,276 | 381,837 | 50,439 | |||||||||
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| Operating Income |
263,543 | 115,908 | 147,635 | |||||||||
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| Other Income (Expense) |
||||||||||||
| Interest expense |
(21,051 | ) | (18,225 | ) | (2,826 | ) | ||||||
| Other income |
692 | 775 | (83 | ) | ||||||||
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|||||||
| Total other expense |
(20,359 | ) | (17,450 | ) | (2,909 | ) | ||||||
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|||||||
| Income Before Income Taxes |
243,184 | 98,458 | 144,726 | |||||||||
| Income tax expense |
55,995 | 35,574 | 20,421 | |||||||||
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| Net Income |
$ | 187,189 | $ | 62,884 | $ | 124,305 | ||||||
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| Diluted Earnings Per Average Common Share |
$ | 1.91 | $ | 0.64 | $ | 1.27 | ||||||
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| Basic Earnings Per Average Common Share |
$ | 1.92 | $ | 0.65 | $ | 1.27 | ||||||
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| Diluted Average Common Shares Outstanding |
97,942 | 97,648 | 294 | |||||||||
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| Basic Average Common Shares Outstanding |
97,377 | 97,165 | 212 | |||||||||
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2
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of June 30, 2018 and December 31, 2017
| (in thousands) |
June 30, 2018 | December 31, 2017 | ||||||
| ASSETS |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ | 1,188 | $ | 439 | ||||
| Accounts receivable, net |
166,467 | 158,787 | ||||||
| Inventories, net |
29,255 | 13,177 | ||||||
| Derivative instruments |
35,377 | — | ||||||
| Income tax receivable |
6,904 | 6,905 | ||||||
| Prepayments and other |
6,086 | 12,085 | ||||||
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| Total current assets |
245,277 | 191,393 | ||||||
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| Property, Plant and Equipment |
||||||||
| Oil and natural gas properties, net |
5,089,320 | 4,718,939 | ||||||
| Other property and equipment, net |
43,896 | 44,581 | ||||||
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| Total property, plant and equipment, net |
5,133,216 | 4,763,520 | ||||||
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| Other postretirement assets |
2,609 | 2,646 | ||||||
| Noncurrent derivative instruments |
258 | — | ||||||
| Noncurrent income tax receivable, net |
70,716 | 70,716 | ||||||
| Other assets |
9,936 | 5,620 | ||||||
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| TOTAL ASSETS |
$ | 5,462,012 | $ | 5,033,895 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current Liabilities |
||||||||
| Accounts payable |
$ | 74,568 | $ | 75,167 | ||||
| Accrued taxes |
12,287 | 2,631 | ||||||
| Accrued wages and benefits |
11,428 | 26,170 | ||||||
| Accrued capital costs |
165,873 | 74,909 | ||||||
| Revenue and royalty payable |
68,154 | 54,072 | ||||||
| Derivative instruments |
80,996 | 71,379 | ||||||
| Other |
18,708 | 17,916 | ||||||
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| Total current liabilities |
432,014 | 322,244 | ||||||
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| Long-term debt |
829,068 | 782,861 | ||||||
| Asset retirement obligations |
92,588 | 88,378 | ||||||
| Noncurrent derivative instruments |
31,035 | 8,886 | ||||||
| Deferred income taxes |
442,225 | 387,807 | ||||||
| Other long-term liabilities |
6,223 | 5,262 | ||||||
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| Total liabilities |
1,833,153 | 1,595,438 | ||||||
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| Total Shareholders’ Equity |
3,628,859 | 3,438,457 | ||||||
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| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 5,462,012 | $ | 5,033,895 | ||||
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3
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending June 30, 2018 and 2017
| 2nd Quarter | ||||||||||||
| (in thousands, except sales price and per unit data) |
2018 | 2017 | Change | |||||||||
| Operating and production data |
| |||||||||||
| Oil, natural gas liquids and natural gas sales |
||||||||||||
| Oil |
$ | 316,082 | $ | 182,701 | $ | 133,381 | ||||||
| Natural gas liquids |
42,051 | 18,634 | 23,417 | |||||||||
| Natural gas |
13,434 | 17,388 | (3,954 | ) | ||||||||
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| Total |
$ | 371,567 | $ | 218,723 | $ | 152,844 | ||||||
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|
|||||||
| Open non-cash mark-to-market gains (losses) on derivative instruments |
| |||||||||||
| Oil |
$ | 6,182 | $ | 31,067 | $ | (24,885 | ) | |||||
| Natural gas liquids |
(14,583 | ) | 4,530 | (19,113 | ) | |||||||
| Natural gas |
(1,459 | ) | 1,737 | (3,196 | ) | |||||||
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| Total |
$ | (9,860 | ) | $ | 37,334 | $ | (47,194 | ) | ||||
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| Closed gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (17,013 | ) | $ | 152 | $ | (17,165 | ) | ||||
| Natural gas liquids |
(6,249 | ) | (80 | ) | (6,169 | ) | ||||||
| Natural gas |
1,203 | 695 | 508 | |||||||||
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| Total |
$ | (22,059 | ) | $ | 767 | $ | (22,826 | ) | ||||
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| Total revenues |
$ | 339,648 | $ | 256,824 | $ | 82,824 | ||||||
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| Production volumes |
||||||||||||
| Oil (MBbl) |
5,164 | 4,102 | 1,062 | |||||||||
| Natural gas liquids (MMgal) |
77.9 | 51.6 | 26.3 | |||||||||
| Natural gas (MMcf) |
11,058 | 7,596 | 3,462 | |||||||||
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| Total production volumes (MBOE) |
8,862 | 6,596 | 2,266 | |||||||||
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| Average daily production volumes |
||||||||||||
| Oil (MBbl/d) |
56.7 | 45.1 | 11.6 | |||||||||
| Natural gas liquids (MMgal/d) |
0.9 | 0.6 | 0.3 | |||||||||
| Natural gas (MMcf/d) |
121.5 | 83.5 | 38.0 | |||||||||
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| Total average daily production volumes (MBOE/d) |
97.4 | 72.5 | 24.9 | |||||||||
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| Average realized prices excluding effects of open non-cash mark-to-market derivative instruments |
| |||||||||||
| Oil (per barrel) |
$ | 57.91 | $ | 44.58 | $ | 13.33 | ||||||
| Natural gas liquids (per gallon) |
$ | 0.46 | $ | 0.36 | $ | 0.10 | ||||||
| Natural gas (per Mcf) |
$ | 1.32 | $ | 2.38 | $ | (1.06 | ) | |||||
| Average realized prices excluding effects of all derivative instruments |
| |||||||||||
| Oil (per barrel) |
$ | 61.21 | $ | 44.54 | $ | 16.67 | ||||||
| Natural gas liquids (per gallon) |
$ | 0.54 | $ | 0.36 | $ | 0.18 | ||||||
| Natural gas (per Mcf) |
$ | 1.21 | $ | 2.29 | $ | (1.08 | ) | |||||
| Costs per BOE |
||||||||||||
| Oil, natural gas liquids and natural gas production expenses |
$ | 6.54 | $ | 6.66 | $ | (0.12 | ) | |||||
| Production and ad valorem taxes |
$ | 2.79 | $ | 2.00 | $ | 0.79 | ||||||
| Depreciation, depletion and amortization |
$ | 15.12 | $ | 18.43 | $ | (3.31 | ) | |||||
| Exploration expense |
$ | 0.12 | $ | 0.30 | $ | (0.18 | ) | |||||
| General and administrative |
$ | 2.47 | $ | 3.02 | $ | (0.55 | ) | |||||
| Capital expenditures (including acquisitions) |
$ | 334,389 | $ | 336,111 | $ | (1,722 | ) | |||||
4
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 6 months ending June 30, 2018 and 2017
| Year-to-date | ||||||||||||
| (in thousands, except sales price and per unit data) |
2018 | 2017 | Change | |||||||||
| Operating and production data |
| |||||||||||
| Oil, natural gas liquids and natural gas sales |
||||||||||||
| Oil |
$ | 620,077 | $ | 329,371 | $ | 290,706 | ||||||
| Natural gas liquids |
76,184 | 34,268 | 41,916 | |||||||||
| Natural gas |
33,172 | 31,459 | 1,713 | |||||||||
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| Total |
$ | 729,433 | $ | 395,098 | $ | 334,335 | ||||||
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|||||||
| Open non-cash mark-to-market gains (losses) on derivative instruments |
| |||||||||||
| Oil |
$ | 17,384 | $ | 89,125 | $ | (71,741 | ) | |||||
| Natural gas liquids |
(8,817 | ) | 11,617 | (20,434 | ) | |||||||
| Natural gas |
253 | 8,961 | (8,708 | ) | ||||||||
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| Total |
$ | 8,820 | $ | 109,703 | $ | (100,883 | ) | |||||
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| Closed gains (losses) on derivative instruments |
||||||||||||
| Oil |
$ | (33,680 | ) | $ | (5,858 | ) | $ | (27,822 | ) | |||
| Natural gas liquids |
(10,230 | ) | (1,545 | ) | (8,685 | ) | ||||||
| Natural gas |
1,476 | 347 | 1,129 | |||||||||
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|||||||
| Total |
$ | (42,434 | ) | $ | (7,056 | ) | $ | (35,378 | ) | |||
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|||||||
| Total revenues |
$ | 695,819 | $ | 497,745 | $ | 198,074 | ||||||
|
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| Production volumes |
||||||||||||
| Oil (MBbl) |
10,148 | 7,098 | 3,050 | |||||||||
| Natural gas liquids (MMgal) |
146.7 | 85.3 | 61.4 | |||||||||
| Natural gas (MMcf) |
21,480 | 13,326 | 8,154 | |||||||||
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|
|||||||
| Total production volumes (MBOE) |
17,220 | 11,350 | 5,870 | |||||||||
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|||||||
| Average daily production volumes |
||||||||||||
| Oil (MBbl/d) |
56.1 | 39.2 | 16.9 | |||||||||
| Natural gas liquids (MMgal/d) |
0.8 | 0.5 | 0.3 | |||||||||
| Natural gas (MMcf/d) |
118.7 | 73.6 | 45.1 | |||||||||
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|
|||||||
| Total average daily production volumes (MBOE/d) |
95.1 | 62.7 | 32.4 | |||||||||
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|||||||
| Average realized prices excluding effects of open non-cash mark-to-market derivative instruments |
| |||||||||||
| Oil (per barrel) |
$ | 57.78 | $ | 45.58 | $ | 12.20 | ||||||
| Natural gas liquids (per gallon) |
$ | 0.45 | $ | 0.38 | $ | 0.07 | ||||||
| Natural gas (per Mcf) |
$ | 1.61 | $ | 2.39 | $ | (0.78 | ) | |||||
| Average realized prices excluding effects of all derivative instruments |
| |||||||||||
| Oil (per barrel) |
$ | 61.10 | $ | 46.40 | $ | 14.70 | ||||||
| Natural gas liquids (per gallon) |
$ | 0.52 | $ | 0.40 | $ | 0.12 | ||||||
| Natural gas (per Mcf) |
$ | 1.54 | $ | 2.36 | $ | (0.82 | ) | |||||
| Costs per BOE |
||||||||||||
| Oil, natural gas liquids and natural gas production expenses |
$ | 6.42 | $ | 7.51 | $ | (1.09 | ) | |||||
| Production and ad valorem taxes |
$ | 2.75 | $ | 2.29 | $ | 0.46 | ||||||
| Depreciation, depletion and amortization |
$ | 15.00 | $ | 19.49 | $ | (4.49 | ) | |||||
| Exploration expense |
$ | 0.14 | $ | 0.50 | $ | (0.36 | ) | |||||
| General and administrative |
$ | 2.57 | $ | 3.56 | $ | (0.99 | ) | |||||
| Capital expenditures (including acquisitions) |
$ | 594,922 | $ | 720,246 | $ | (125,324 | ) | |||||
5