EX-99.3 4 d622785dex993.htm EX-99.3 EX-99.3

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 associated with acreage swaps/property sales, certain merger costs, and losses associated with the Tax Cuts 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 9/30/18  

Energen Net Income ($ in millions except per share data)

    Net Income      Per Diluted
Share		  

Net Income (Loss) All Operations (GAAP)

      (26.6 )       (0.27 ) 

Non-cash mark-to-market losses (net of $31.2 tax)

      112.4        1.15  

Asset impairment, other (net of $0.2 tax) *

      0.6        0.01  

Income associated with 2018 acreage swaps (net of tax)

      (0.1 )       nm  

Merger costs (net of $1.2 tax)

      6.9        0.07  

Expense associated with Tax Cuts and Jobs Act

      0.2        nm  
  

 

 

     

 

 

  

Adjusted Income from Continuing Operations (Non-GAAP)

      93.5        0.96  
  

 

 

     

 

 

  
     Three Months Ended 9/30/17  

Energen Net Income ($ in millions except per share data)

    Net Income      Per Diluted
Share		  

Net Income (Loss) All Operations (GAAP)

      (18.5 )       (0.19 ) 

Non-cash mark-to-market losses (net of $22.1 tax)

      40.2        0.41  

Asset impairment, other (net of tax) *

      0.1        nm  

Income associated with property sales (net of $2.0 tax)

      (2.5 )       (0.03 ) 
  

 

 

     

 

 

  

Adjusted Income from Continuing Operations (Non-GAAP)

      19.2        0.20  
  

 

 

     

 

 

  

Note: Amounts may not sum due to rounding

 

*

This may include impairments, lease expirations, and dry hole expense.

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, income associated with acreage swaps/property sales, certain merger costs, and losses associated with the Tax Cut and Jobs Act. 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 9/30  

($ in millions)

    2018      2017  

Energen Net Income (Loss) (GAAP)

      (26.6 )       (18.5 ) 

Interest expense

      11.6        9.9  

Income tax expense (benefit)

      (5.5 )       (9.2 ) 

Depreciation, depletion and amortization

      134.2        131.8  

Accretion expense

      1.6        1.5  

Exploration expense

      0.3        0.6  

Adjustment for asset impairment, other *

      0.8        0.1  

Adjustment for mark-to-market losses

      143.6        62.3  

Merger costs

      8.1        0.0  

Expense associated with Tax Cuts and Jobs Act

      0.2        0.0  

Income associated with acreage swaps/property sales

      (0.1 )       (4.5 ) 
  

 

 

     

 

 

  

Energen Adjusted EBITDAX from Continuing Operations (Non-GAAP)

      268.2        174.0  
  

 

 

     

 

 

  

Note: Amounts may not sum due to rounding

 

*

This may include impairments, lease expirations, and dry hole expense.