EX-99.2 3 d873651dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 3 months ending December 31, 2014 and 2013

 

     4th Quarter        

(in thousands, except per share data)

    2014     2013     Change  

Revenues

       

Oil, natural gas liquids and natural gas sales

    $ 286,747      $ 328,571      $ (41,824 ) 

Gain on derivative instruments, net

      325,521        1,880        323,641   

Loss on sale of assets and other

      (833 )      (489 )      (344 ) 
  

 

 

    

 

 

    

 

 

  

Total revenues

   611,435      329,962      281,473   
  

 

 

    

 

 

    

 

 

  

Operating Costs and Expenses

Oil, natural gas liquids and natural gas production

   74,571      66,494      8,077   

Production and ad valorem taxes

   20,961      24,994      (4,033 ) 

Depreciation, depletion and amortization

   148,996      120,629      28,367   

Asset impairment

   235,301      7,082      228,219   

Exploration

   6,872      6,958      (86 ) 

General and administrative

   28,553      27,122      1,431   

Accretion of discount on asset retirement obligations

   1,958      1,808      150   
  

 

 

    

 

 

    

 

 

  

Total costs and expenses

   517,212      255,087      262,125   
  

 

 

    

 

 

    

 

 

  

Operating Income

   94,223      74,875      19,348   
  

 

 

    

 

 

    

 

 

  

Other Income (Expense)

Interest expense

   (10,397 )    (9,504 )    (893 ) 

Other income

   134      1,184      (1,050 ) 
  

 

 

    

 

 

    

 

 

  

Total other expense

   (10,263 )    (8,320 )    (1,943 ) 
  

 

 

    

 

 

    

 

 

  

Income From Continuing Operations Before Income Taxes

   83,960      66,555      17,405   

Income tax expense

   17,441      20,922      (3,481 ) 
  

 

 

    

 

 

    

 

 

  

Income From Continuing Operations

   66,519      45,633      20,886   
  

 

 

    

 

 

    

 

 

  

Discontinued Operations, net of tax

Income (loss) from discontinued operations

   (1,143 )    19,188      (20,331 ) 

Gain on disposal of discontinued operations

   42      19,272      (19,230 ) 
  

 

 

    

 

 

    

 

 

  

Income (Loss) From Discontinued Operations

   (1,101 )    38,460      (39,561 ) 
  

 

 

    

 

 

    

 

 

  

Net Income

 $ 65,418    $ 84,093    $ (18,675 ) 
  

 

 

    

 

 

    

 

 

  

Diluted Earnings Per Average Common Share

Continuing operations

 $ 0.91    $ 0.62    $ 0.29   

Discontinued operations

   (0.02 )    0.53      (0.55 ) 
  

 

 

    

 

 

    

 

 

  

Net Income

 $ 0.89    $ 1.15    $ (0.26 ) 
  

 

 

    

 

 

    

 

 

  

Basic Earnings Per Average Common Share

Continuing operations

 $ 0.91    $ 0.63    $ 0.28   

Discontinued operations

   (0.01 )    0.53      (0.54 ) 
  

 

 

    

 

 

    

 

 

  

Net Income

 $ 0.90    $ 1.16    $ (0.26 ) 
  

 

 

    

 

 

    

 

 

  

Diluted Avg. Common Shares Outstanding

   73,343      73,086      257   
  

 

 

    

 

 

    

 

 

  

Basic Avg. Common Shares Outstanding

   72,988      72,628      360   
  

 

 

    

 

 

    

 

 

  

Dividends Per Common Share

 $ 0.02    $ 0.145    $ (0.125 ) 
  

 

 

    

 

 

    

 

 

  

 

1

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

For the 12 months ending December 31, 2014 and 2013

 

     Year-to-date        

(in thousands, except per share data)

    2014     2013     Change  

Revenues

       

Oil, natural gas liquids and natural gas sales

    $ 1,344,194      $ 1,256,317      $ 87,877   

Gain (loss) on derivative instruments, net

      335,019        (50,024 )      385,043   

Loss on sale of assets and other

      (2,642 )      (981 )      (1,661 ) 
  

 

 

    

 

 

    

 

 

  

Total revenues

   1,676,571      1,205,312      471,259   
  

 

 

    

 

 

    

 

 

  

Operating Costs and Expenses

Oil, natural gas liquids and natural gas production

   274,432      257,438      16,994   

Production and ad valorem taxes

   102,063      94,103      7,960   

Depreciation, depletion and amortization

   548,564      452,876      95,688   

Asset impairment

   416,801      13,906      402,895   

Exploration

   28,090      14,036      14,054   

General and administrative

   122,052      113,821      8,231   

Accretion of discount on asset retirement obligations

   7,608      6,995      613   
  

 

 

    

 

 

    

 

 

  

Total costs and expenses

   1,499,610      953,175      546,435   
  

 

 

    

 

 

    

 

 

  

Operating Income

   176,961      252,137      (75,176 ) 
  

 

 

    

 

 

    

 

 

  

Other Income (Expense)

Interest expense

   (37,771 )    (39,736 )    1,965   

Other income

   1,181      3,803      (2,622 ) 
  

 

 

    

 

 

    

 

 

  

Total other expense

   (36,590 )    (35,933 )    (657 ) 
  

 

 

    

 

 

    

 

 

  

Income From Continuing Operations Before Income Taxes

   140,371      216,204      (75,833 ) 

Income tax expense

   40,728      74,323      (33,595 ) 
  

 

 

    

 

 

    

 

 

  

Income From Continuing Operations

   99,643      141,881      (42,238 ) 
  

 

 

    

 

 

    

 

 

  

Discontinued Operations, net of tax

Income from discontinued operations

   29,292      59,079      (29,787 ) 

Gain on disposal of discontinued operations

   439,097      3,594      435,503   
  

 

 

    

 

 

    

 

 

  

Income From Discontinued Operations

   468,389      62,673      405,716   
  

 

 

    

 

 

    

 

 

  

Net Income

 $ 568,032    $ 204,554    $ 363,478   
  

 

 

    

 

 

    

 

 

  

Diluted Earnings Per Average Common Share

Continuing operations

 $ 1.36    $ 1.96    $ (0.60 ) 

Discontinued operations

   6.39      0.86      5.53   
  

 

 

    

 

 

    

 

 

  

Net Income

 $ 7.75    $ 2.82    $ 4.93   
  

 

 

    

 

 

    

 

 

  

Basic Earnings Per Average Common Share

Continuing operations

 $ 1.37    $ 1.96    $ (0.59 ) 

Discontinued operations

   6.42      0.87      5.55   
  

 

 

    

 

 

    

 

 

  

Net Income

 $ 7.79    $ 2.83    $ 4.96   
  

 

 

    

 

 

    

 

 

  

Diluted Average Common Shares Outstanding

   73,275      72,471      804   
  

 

 

    

 

 

    

 

 

  

Basic Average Common Shares Outstanding

   72,897      72,318      579   
  

 

 

    

 

 

    

 

 

  

Dividends Per Common Share

 $ 0.47    $ 0.58    $ (0.11 ) 
  

 

 

    

 

 

    

 

 

  

 

2

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of December 31, 2014 and December 31, 2013

 

(in thousands)

    December 31, 2014      December 31, 2013  

ASSETS

      

Current Assets

      

Cash and cash equivalents

    $ 1,852       $ 2,523   

Accounts receivable, net of allowance

      147,675         136,334   

Inventories

      14,251         11,130   

Assets held for sale

      411,654         1,242,872   

Deferred income taxes

      —           21,250   

Derivative instruments

      322,337         17,463   

Prepayments and other

      24,574         9,989   
  

 

 

     

 

 

  

Total current assets

   922,343      1,441,561   
  

 

 

     

 

 

  

Property, Plant and Equipment

Oil and natural gas properties, net

   5,152,748      5,087,573   

Other property and equipment, net

   43,812      30,515   
  

 

 

     

 

 

  

Total property, plant and equipment, net

   5,196,560      5,118,088   
  

 

 

     

 

 

  

Noncurrent derivative instruments

   —        5,439   

Other assets

   19,512      57,124   
  

 

 

     

 

 

  

TOTAL ASSETS

 $ 6,138,415    $ 6,622,212   
  

 

 

     

 

 

  

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current Liabilities

Long-term debt due within one year

 $ —      $ 60,000   

Notes payable to banks

   —        489,000   

Accounts payable

   101,562      78,178   

Accrued taxes

   4,003      8,201   

Accrued wages and benefits

   46,162      27,036   

Accrued capital costs

   207,461      93,623   

Revenue and royalty payable

   64,446      51,519   

Liabilities related to assets held for sale

   33,406      831,570   

Deferred income taxes

   79,164      —     

Derivative instruments

   988      30,302   

Other current liabilities

   23,288      21,796   
  

 

 

     

 

 

  

Total current liabilities

   560,480      1,691,225   
  

 

 

     

 

 

  

Long-term debt

   1,038,563      1,093,541   

Asset retirement obligations

   94,060      108,533   

Deferred income taxes

   1,000,486      807,614   

Noncurrent derivative instruments

   —        398   

Other long-term liabilities

   30,222      62,882   
  

 

 

     

 

 

  

Total liabilities

   2,723,811      3,764,193   
  

 

 

     

 

 

  

Total Shareholders’ Equity

   3,414,604      2,858,019   
  

 

 

     

 

 

  

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 $ 6,138,415    $ 6,622,212   
  

 

 

     

 

 

  

 

3

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 3 months ending December 31, 2014 and 2013

 

     4th Quarter        

(in thousands, except sales price and per unit data)

    2014     2013     Change  

Oil and Gas Operations

       

Oil, natural gas liquids and natural gas sales from continuing operations

       

Oil

    $ 211,916      $ 250,118      $ (38,202 ) 

Natural gas liquids

      20,293        27,096        (6,803 ) 

Natural gas

      54,538        51,357        3,181   
  

 

 

    

 

 

    

 

 

  

Total

 $ 286,747    $ 328,571    $ (41,824 ) 
  

 

 

    

 

 

    

 

 

  

Loss on sale of assets and other

 $ (833 )  $ (489 )  $ (344 ) 
  

 

 

    

 

 

    

 

 

  

Open non-cash mark-to-market gains (losses) on derivative instruments

Oil

 $ 230,490    $ 20,600    $ 209,890   

Natural gas liquids

   (1,316 )    556      (1,872 ) 

Natural gas

   32,286      (20,529 )    52,815   
  

 

 

    

 

 

    

 

 

  

Total

 $ 261,460    $ 627    $ 260,833   
  

 

 

    

 

 

    

 

 

  

Closed gains (losses) on derivative instruments

Oil

 $ 50,945    $ (13,593 )  $ 64,538   

Natural gas liquids

   4,990      2,342      2,648   

Natural gas

   8,126      12,504      (4,378 ) 
  

 

 

    

 

 

    

 

 

  

Total

 $ 64,061    $ 1,253    $ 62,808   
  

 

 

    

 

 

    

 

 

  

Total Revenues

 $ 611,435    $ 329,962    $ 281,473   
  

 

 

    

 

 

    

 

 

  

Production volumes from continuing operations

Oil (MBbl)

   3,213      2,694      519   

Natural gas liquids (MMgal)

   43.1      37.3      5.8   

Natural gas (MMcf)

   14,646      14,676      (30 ) 
  

 

 

    

 

 

    

 

 

  

Production volumes from continuing operations (MBOE)

   6,681      6,028      653   
  

 

 

    

 

 

    

 

 

  

Total production volumes (MBOE)

   6,681      6,203      478   
  

 

 

    

 

 

    

 

 

  

Average realized prices excluding effects of open non-cash mark-to-market derivative instruments

Oil (per barrel)

 $ 81.81    $ 87.80    $ (5.99 ) 

Natural gas liquids (per gallon)

 $ 0.59    $ 0.79    $ (0.20 ) 

Natural gas (per Mcf)

 $ 4.28    $ 4.35    $ (0.07 ) 

Average realized prices excluding derivative instruments

Oil (per barrel)

 $ 65.96    $ 92.84    $ (26.88 ) 

Natural gas liquids (per gallon)

 $ 0.47    $ 0.73    $ (0.26 ) 

Natural gas (per Mcf)

 $ 3.72    $ 3.50    $ 0.22   

Other costs per BOE from continuing operations

Oil, natural gas liquids and natural gas production expenses

 $ 11.16    $ 11.04    $ 0.12   

Production and ad valorem taxes

 $ 3.14    $ 4.15    $ (1.01 ) 

Depreciation, depletion and amortization

 $ 22.08    $ 19.96    $ 2.12   

Exploration expense

 $ 1.03    $ 1.15    $ (0.12 ) 

General and administrative

 $ 4.27    $ 4.50    $ (0.23 ) 

Capital expenditures

 $ 425,045    $ 212,054    $ 212,991   
  

 

 

    

 

 

    

 

 

  

 

4

SELECTED BUSINESS SEGMENT DATA (UNAUDITED)

For the 12 months ending December 31, 2014 and 2013

 

     Year-to-date        

(in thousands, except sales price and per unit data)

    2014     2013     Change  

Oil and Gas Operations

       

Oil, natural gas liquids and natural gas sales from continuing operations

       

Oil

    $ 988,868      $ 961,055      $ 27,813   

Natural gas liquids

      110,918        91,407        19,511   

Natural gas

      244,408        203,855        40,553   
  

 

 

    

 

 

    

 

 

  

Total

 $ 1,344,194    $ 1,256,317    $ 87,877   
  

 

 

    

 

 

    

 

 

  

Loss on sale of assets and other

 $ (2,642 )  $ (981 )  $ (1,661 ) 
  

 

 

    

 

 

    

 

 

  

Open non-cash mark-to-market gains (losses) on derivative instruments

Oil

 $ 271,200    $ (43,261 )  $ 314,461   

Natural gas liquids

   287      (652 )    939   

Natural gas

   43,958      (3,919 )    47,877   
  

 

 

    

 

 

    

 

 

  

Total

 $ 315,445    $ (47,832 )  $ 363,277   
  

 

 

    

 

 

    

 

 

  

Closed gains (losses) on derivative instruments

Oil

 $ 4,377    $ (52,694 )  $ 57,071   

Natural gas liquids

   6,218      10,795      (4,577 ) 

Natural gas

   8,979      39,707      (30,728 ) 
  

 

 

    

 

 

    

 

 

  

Total

 $ 19,574    $ (2,192 )  $ 21,766   
  

 

 

    

 

 

    

 

 

  

Total Revenues

 $ 1,676,571    $ 1,205,312    $ 471,259   
  

 

 

    

 

 

    

 

 

  

Production volumes from continuing operations

Oil (MBbl)

   11,814      10,364      1,450   

Natural gas liquids (MMgal)

   172.3      135.8      36.5   

Natural gas (MMcf)

   58,602      58,104      498   
  

 

 

    

 

 

    

 

 

  

Production volumes from continuing operations (MBOE)

   25,684      23,281      2,403   
  

 

 

    

 

 

    

 

 

  

Total production volumes (MBOE)

   25,849      25,362      487   
  

 

 

    

 

 

    

 

 

  

Average realized prices excluding effects of open non-cash mark-to-market derivative instruments

Oil (per barrel)

 $ 84.07    $ 87.65    $ (3.58 ) 

Natural gas liquids (per gallon)

 $ 0.68    $ 0.75    $ (0.07 ) 

Natural gas (per Mcf)

 $ 4.32    $ 4.19    $ 0.13   

Average realized prices excluding derivative instruments

Oil (per barrel)

 $ 83.70    $ 92.73    $ (9.03 ) 

Natural gas liquids (per gallon)

 $ 0.64    $ 0.67    $ (0.03 ) 

Natural gas (per Mcf)

 $ 4.17    $ 3.51    $ 0.66   

Other costs per BOE from continuing operations

Oil, natural gas liquids and natural gas production expenses

 $ 10.68    $ 11.06    $ (0.38 ) 

Production and ad valorem taxes

 $ 3.97    $ 4.04    $ (0.07 ) 

Depreciation, depletion and amortization

 $ 21.17    $ 19.32    $ 1.85   

Exploration expense

 $ 1.09    $ 0.60    $ 0.49   

General and administrative

 $ 4.75    $ 4.89    $ (0.14 ) 

Capital expenditures

 $ 1,376,038    $ 1,104,745    $ 271,293   
  

 

 

    

 

 

    

 

 

  

 

5