Pennsylvania | 001-3551 | 25-0464690 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading symbol | Name of each exchange on which registered | ||
Common Stock, no par value | EQT | New York Stock Exchange |
¨ | Emerging growth company |
EQT CORPORATION | |||
(Registrant) | |||
By: | /s/ Jimmi Sue Smith | ||
Jimmi Sue Smith | |||
Senior Vice President and Chief Financial Officer | |||
Date: | July 25, 2019 |
EQT REPORTS SECOND QUARTER 2019 RESULTS Company already executing its 100-day plan to transform EQT and deliver significant shareholder value | |||||||||
PITTSBURGH (July 25, 2019) -- EQT Corporation (NYSE: EQT) today announced financial and operational performance results for the second quarter 2019. | |||||||||
Second Quarter Highlights: | |||||||||
l | Achieved sales volumes of 370 Bcfe, at the high end of guidance (355-375 Bcfe), and received an average realized price of $2.59 per Mcfe | ||||||||
l | Generated $444 million net cash provided by operating activities and $(81) million of adjusted free cash flow* | ||||||||
l | Exited the quarter with $4,968 million of net debt, $39 million lower than first quarter 2019 | ||||||||
*Non-GAAP measure. Please see the Non-GAAP Disclosures section of this news release for important disclosures. | |||||||||
Organizational Update Since the reconstitution of the Board of Directors on July 10, 2019, the Company has taken the following initial steps in executing its turnaround plan: • Appointed Toby Z. Rice President and Chief Executive Officer (CEO);• Appointed William Jordan General Counsel, Tony Duran Chief Information Officer, and Lesley Evancho Chief Human Resources Officer;• Established an Evolution Committee to oversee operational, technological and organizational initiatives outlined in EQT’s 100-Day Plan; and• Hired all eight “evolution leaders” to execute 100-Day Plan initiatives.President and CEO Toby Rice commented, “We’ve spent our first two weeks assessing the entire EQT organization, and I’m extremely pleased to report that the Rice team had accurately diagnosed the issues that have long prevented the Company from realizing its full potential. Our key evolution leaders are already in place and working closely with EQT’s talented, dedicated and hardworking employees. We’ve quickly begun the process of transforming EQT to deliver significant value to our shareholders and to become a great place to work.” | |||||||||
Three Months Ended June 30, | % | |||||||||||||
($ millions, except EPS) | 2019 | 2018 | Change | Change | ||||||||||
Total sales volume (Bcfe) | 370 | 363 | 7 | 2 | % | |||||||||
Income (loss) from continuing operations | $ | 126 | $ | (77 | ) | $ | 203 | 264 | % | |||||
Adjusted net income from continuing operations (a non-GAAP measure) | $ | 22 | $ | 34 | $ | (12 | ) | (35 | )% | |||||
Adjusted EBITDA from continuing operations (a non-GAAP measure) | $ | 461 | $ | 490 | $ | (29 | ) | (6 | )% | |||||
Diluted earnings per share (EPS) from continuing operations | $ | 0.49 | $ | (0.29 | ) | $ | 0.78 | 269 | % | |||||
Adjusted EPS from continuing operations (a non-GAAP measure) | $ | 0.09 | $ | 0.13 | $ | (0.04 | ) | (31 | )% | |||||
Net cash provided by operating activities | $ | 444 | $ | 637 | $ | (193 | ) | (30 | )% | |||||
Adjusted free cash flow (a non-GAAP measure) | $ | (81 | ) | $ | (187 | ) | $ | 106 | 57 | % |
Six Months Ended June 30, | % | |||||||||||||
($ millions, except EPS) | 2019 | 2018 | Change | Change | ||||||||||
Total sales volume (Bcfe) | 754 | 720 | 34 | 5 | % | |||||||||
Income (loss) from continuing operations | $ | 316 | $ | (1,656 | ) | $ | 1,972 | 119 | % | |||||
Adjusted net income from continuing operations (a non-GAAP measure) | $ | 234 | $ | 212 | $ | 22 | 10 | % | ||||||
Adjusted EBITDA from continuing operations (a non-GAAP measure) | $ | 1,171 | $ | 1,184 | $ | (13 | ) | (1 | )% | |||||
Diluted EPS from continuing operations | $ | 1.24 | $ | (6.25 | ) | $ | 7.49 | 120 | % | |||||
Adjusted EPS from continuing operations (a non-GAAP measure) | $ | 0.92 | $ | 0.80 | $ | 0.12 | 15 | % | ||||||
Net cash provided by operating activities | $ | 1,315 | $ | 1,541 | $ | (226 | ) | (15 | )% | |||||
Adjusted free cash flow (a non-GAAP measure) | $ | 91 | $ | (98 | ) | $ | 189 | 193 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(millions) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Reserve development | $ | 374 | $ | 603 | $ | 775 | $ | 1,093 | |||||||
Land and lease | 50 | 43 | 95 | 103 | |||||||||||
Capitalized overhead | 24 | 36 | 41 | 65 | |||||||||||
Capitalized interest | 6 | 9 | 13 | 16 | |||||||||||
Other production infrastructure | 5 | 16 | 11 | 26 | |||||||||||
Property acquisitions | 6 | 5 | 6 | 19 | |||||||||||
Other corporate items | 1 | 4 | 1 | 4 | |||||||||||
Total capital expenditures from continuing operations | $ | 466 | $ | 716 | $ | 942 | $ | 1,326 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
($/Mcfe) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Gathering | $ | 0.55 | $ | 0.54 | $ | 0.56 | $ | 0.54 | |||||||
Transmission | 0.54 | 0.52 | 0.52 | 0.51 | |||||||||||
Processing | 0.09 | 0.13 | 0.09 | 0.13 | |||||||||||
LOE, excluding production taxes | 0.05 | 0.08 | 0.05 | 0.09 | |||||||||||
Production taxes | 0.05 | 0.06 | 0.05 | 0.06 | |||||||||||
Exploration | 0.01 | — | — | — | |||||||||||
SG&A | 0.23 | 0.17 | 0.18 | 0.14 | |||||||||||
Total selected operating costs per unit | $ | 1.52 | $ | 1.50 | $ | 1.45 | $ | 1.47 | |||||||
Production depletion | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.03 | |||||||
Adjusted SG&A per unit (a non-GAAP measure) | $ | 0.13 | $ | 0.14 | $ | 0.12 | $ | 0.10 |
2019 (a) | 2020 | 2021 | 2022 | 2023 | ||||||||||||||||
Swaps | ||||||||||||||||||||
Volume (MMDth) | 441 | 580 | 314 | 138 | 70 | |||||||||||||||
Average Price($/Dth) | $ | 2.85 | $ | 2.81 | $ | 2.78 | $ | 2.75 | $ | 2.73 | ||||||||||
Calls - Net Short | ||||||||||||||||||||
Volume (MMDth) | 197 | 248 | 58 | 22 | 7 | |||||||||||||||
Average Short Strike Price ($/Dth) | $ | 3.02 | $ | 3.07 | $ | 3.14 | $ | 3.20 | $ | 3.18 | ||||||||||
Puts - Net Long | ||||||||||||||||||||
Volume (MMDth) | 4 | 10 | 10 | — | — | |||||||||||||||
Average Long Strike Price ($/Dth) | $ | 2.60 | $ | 2.25 | $ | 2.71 | $ | — | $ | — | ||||||||||
Fixed Price Sales (b) | ||||||||||||||||||||
Volume (MMDth) | 47 | 14 | 4 | — | — | |||||||||||||||
Average Price ($/Dth) | $ | 2.82 | $ | 2.79 | $ | 2.72 | $ | — | $ | — |
PA Marcellus | WV Marcellus | Ohio Utica | |||
Q2 2019 | 18 | 4 | 4 | ||
Q3 2019 Forecast | 20 | 4 | 8 | ||
2019 Forecast | 85 | 11 | 16 |
• | Q2 2019 average lateral lengths: PA Marcellus 12,100'; WV Marcellus 6,700'; Ohio Utica 11,400' |
• | 2019 forecasted average lateral lengths: PA Marcellus 13,300'; WV Marcellus 6,600'; Ohio Utica 10,400' |
PA Marcellus | WV Marcellus | Ohio Utica | |||
Q2 2019* | 30 | 10 | 3 | ||
Q3 2019 Forecast | 38 | 0 | 11 | ||
2019 Forecast* | 112 | 13 | 19 |
• | Q2 2019 average lateral lengths: PA Marcellus 11,300'; WV Marcellus 4,600'; Ohio Utica 13,700' |
• | 2019 forecasted average lateral lengths: PA Marcellus 10,400'; WV Marcellus 4,600'; Ohio Utica 11,700' |
As of 6/30/19 | As of 3/31/19 | As of 12/31/18 | ||||
Wells drilled (spud) | 1,873 | 1,848 | 1,819 | |||
Wells online | 1,628 | 1,588 | 1,570 | |||
Wells complete, not online | 36 | 33 | 19 | |||
Wells drilled, uncompleted** | 209 | 227 | 230 |
As of 6/30/19 | As of 3/30/18 | As of 12/31/18 | ||||
Wells drilled (spud) | 264 | 258 | 254 | |||
Wells online | 234 | 229 | 221 | |||
Wells complete, not online | 18 | 3 | 8 | |||
Wells drilled, uncompleted** | 12 | 26 | 25 |
Production | Q3 2019 | Full-Year 2019 | ||
Total sales volume (Bcfe) | 365 - 385 | 1,480 - 1,520 | ||
Liquids sales volume, excluding ethane (Mbbls) | 2,075 - 2,175 | 8,330 - 8,530 | ||
Ethane sales volume (Mbbls) | 1,065 - 1,165 | 4,255 - 4,455 | ||
Total liquids sales volume (Mbbls) | 3,140 - 3,340 | 12,585 - 12,985 | ||
Resource Counts | 2nd Half 2019 | |||
Marcellus / Utica Rigs | 5 - 7 | |||
Top-hole Rigs | 1 - 2 | |||
Frac Crews | 3 - 5 | |||
Unit Costs ($ / Mcfe) | Full-Year 2019 | |||
Gathering | $0.54 - 0.56 | |||
Transmission | $0.51 - 0.53 | |||
Processing | $0.08 - 0.10 | |||
LOE, excluding production taxes | $0.05 - 0.07 | |||
Production taxes | $0.04 - 0.06 | |||
Adjusted SG&A (a non-GAAP measure) | $0.11 - 0.13 | |||
Average differential ($ / Mcf) | $(0.55) - $(0.35) | $(0.40) - (0.20) | ||
($ Billions) | Full-Year 2019 | |||
Adjusted EBITDA (a non-GAAP measure) | $2.025 - 2.125 | |||
Adjusted operating cash flow (a non-GAAP measure) | $1.875 - 1.975 | |||
Capital expenditures | $1.825 - 1.925 | |||
Adjusted free cash flow (a non-GAAP measure) | $0.025 - 0.125 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Thousands, except per share information) | |||||||||||||||
Income (loss) from continuing operations | $ | 125,566 | $ | (76,978 | ) | $ | 316,257 | $ | (1,655,511 | ) | |||||
Add back / (deduct): | |||||||||||||||
Impairment/loss on sale of long-lived assets | — | 118,114 | — | 2,447,159 | |||||||||||
Lease impairments and expirations | 48,584 | 19,529 | 78,118 | 23,408 | |||||||||||
Proxy, transaction and reorganization | 21,518 | 5,060 | 25,607 | 15,138 | |||||||||||
(Gain) loss on derivatives not designated as hedges | (407,635 | ) | 53,897 | (275,639 | ) | (8,695 | ) | ||||||||
Net cash settlements received (paid) on derivatives not designated as hedges | 53,144 | 25,513 | (10,490 | ) | (13,116 | ) | |||||||||
Premiums received for derivatives that settled during the period | 4,769 | 237 | 7,206 | 471 | |||||||||||
Royalty and litigation reserves | 37,786 | — | 45,786 | — | |||||||||||
Unrealized loss on investment in Equitrans Midstream Corporation | 104,741 | — | 15,686 | — | |||||||||||
Tax impact of non-GAAP items (a) | 33,524 | (111,798 | ) | 31,339 | (596,728 | ) | |||||||||
Adjusted net income from continuing operations | $ | 21,997 | $ | 33,574 | $ | 233,870 | $ | 212,126 | |||||||
Diluted weighted average common shares outstanding | 255,223 | 265,154 | 255,211 | 265,128 | |||||||||||
Diluted EPS from continuing operations | $ | 0.49 | $ | (0.29 | ) | $ | 1.24 | $ | (6.25 | ) | |||||
Adjusted EPS from continuing operations | $ | 0.09 | $ | 0.13 | $ | 0.92 | $ | 0.80 |
(a) | The tax impact of non-GAAP items represents the incremental tax expense that would have been incurred had these items been excluded from income (loss) from continuing operations, which resulted in blended tax rates of 23.5% and 50.3% for the three months ended June 30, 2019 and 2018, respectively, and 26.2% and 24.2% for the six months ended June 30, 2019 and 2018, respectively. These rates differ from the Company's statutory tax rate primarily due to the impact of items specific to each respective quarter. In addition, the tax benefit that may be recorded in any quarter is limited to the amount of benefit expected for the entire year. As a result, the tax benefit recorded in the first quarter 2018 was the entire benefit forecast for the year at March 31, 2018. At June 30, 2018 the forecast tax benefit for year was higher than at March 31, 2018, primarily as a result of lower commodity price forecasts for the second half of the year. As a result, the Company recorded an additional tax benefit in the second quarter 2018. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Thousands) | |||||||||||||||
Income (loss) from continuing operations | $ | 125,566 | $ | (76,978 | ) | $ | 316,257 | $ | (1,655,511 | ) | |||||
Add back / (deduct): | |||||||||||||||
Interest expense | 50,503 | 57,120 | 107,076 | 115,031 | |||||||||||
Income tax expense (benefit) | 38,865 | (94,922 | ) | 77,099 | (524,762 | ) | |||||||||
Depreciation and depletion | 372,413 | 371,709 | 763,526 | 764,402 | |||||||||||
Amortization of intangible assets | 10,342 | 10,342 | 20,684 | 20,684 | |||||||||||
Impairment/loss on sale of long-lived assets | — | 118,114 | — | 2,447,159 | |||||||||||
Lease impairments and expirations | 48,584 | 19,529 | 78,118 | 23,408 | |||||||||||
Proxy, transaction and reorganization | 21,518 | 5,060 | 25,607 | 15,138 | |||||||||||
(Gain) loss on derivatives not designated as hedges | (407,635 | ) | 53,897 | (275,639 | ) | (8,695 | ) | ||||||||
Net cash settlements received (paid) on derivatives not designated as hedges | 53,144 | 25,513 | (10,490 | ) | (13,116 | ) | |||||||||
Premiums received for derivatives that settled during the period | 4,769 | 237 | 7,206 | 471 | |||||||||||
Royalty and litigation reserves | 37,786 | — | 45,786 | — | |||||||||||
Unrealized loss on investment in Equitrans Midstream Corporation | 104,741 | — | 15,686 | — | |||||||||||
Adjusted EBITDA | $ | 460,596 | $ | 489,621 | $ | 1,170,916 | $ | 1,184,209 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Thousands) | |||||||||||||||
Net cash provided by operating activities | $ | 443,546 | $ | 636,712 | $ | 1,314,833 | $ | 1,541,124 | |||||||
(Deduct) / add back changes in other assets and liabilities | (57,845 | ) | 54,264 | (281,779 | ) | 54,504 | |||||||||
Operating cash flow | $ | 385,701 | $ | 690,976 | $ | 1,033,054 | $ | 1,595,628 | |||||||
(Deduct) / add back: | |||||||||||||||
EBITDA attributable to discontinued operations (a) | — | (282,851 | ) | — | (574,968 | ) | |||||||||
Interest expense attributable to discontinued operations | — | 19,884 | — | 31,986 | |||||||||||
Cash distributions from discontinued operations (b) | — | 101,282 | — | 176,249 | |||||||||||
Adjusted operating cash flow | $ | 385,701 | $ | 529,291 | $ | 1,033,054 | $ | 1,228,895 | |||||||
(Deduct): | |||||||||||||||
Capital expenditures attributable to continuing operations | (466,387 | ) | (716,295 | ) | (942,409 | ) | (1,326,434 | ) | |||||||
Adjusted free cash flow | $ | (80,686 | ) | $ | (187,004 | ) | $ | 90,645 | $ | (97,539 | ) |
(a) | As a result of the separation of the Company's midstream business from its upstream business and subsequent spin-off of Equitrans Midstream Corporation (Equitrans Midstream) in November 2018, the results of operations of Equitrans Midstream are presented as discontinued operations in the Company's Statements of Condensed Consolidated Operations. EBITDA attributable to discontinued operations is a non-GAAP supplemental financial measure reconciled in the section below. |
(b) | Cash distributions from discontinued operations represents the cash distributions payable from EQM Midstream Partners, LP, EQGP Holdings, LP and Rice Midstream Partners LP (the Company's former midstream affiliates) to the Company in respect of the three and six months ended June 30, 2018. |
Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||||
(Thousands) | |||||||
Income from discontinued operations, net of tax | $ | 213,324 | $ | 346,878 | |||
Add back / (deduct): | |||||||
Interest expense | 19,884 | 31,986 | |||||
Income tax (benefit) expense | (6,707 | ) | 84,168 | ||||
Depreciation | 45,963 | 91,163 | |||||
Amortization of intangible assets | 10,387 | 20,773 | |||||
EBITDA attributable to discontinued operations | $ | 282,851 | $ | 574,968 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Thousands, unless noted) | |||||||||||||||
Total operating revenue | $ | 1,310,252 | $ | 950,648 | $ | 2,453,425 | $ | 2,262,684 | |||||||
Add back / (deduct): | |||||||||||||||
(Gain) loss on derivatives not designated as hedges | (407,635 | ) | 53,897 | (275,639 | ) | (8,695 | ) | ||||||||
Net cash settlements received (paid) on derivatives not designated as hedges | 53,144 | 25,513 | (10,490 | ) | (13,116 | ) | |||||||||
Premiums received for derivatives that settled during the period | 4,769 | 237 | 7,206 | 471 | |||||||||||
Net marketing services and other | (2,090 | ) | (13,180 | ) | (5,646 | ) | (36,250 | ) | |||||||
Adjusted operating revenue | $ | 958,440 | $ | 1,017,115 | 2,168,856 | 2,205,094 | |||||||||
Total sales volumes (MMcfe) | 370,114 | 362,540 | 753,584 | 719,545 | |||||||||||
Average realized price ($/Mcfe) | $ | 2.59 | $ | 2.81 | $ | 2.88 | $ | 3.06 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Thousands, unless noted) | |||||||||||||||
Selling, general and administrative | $ | 86,208 | $ | 62,959 | $ | 135,186 | $ | 102,774 | |||||||
Less: | |||||||||||||||
Indirect costs previously allocated to midstream business prior to separation | — | 13,876 | — | 27,609 | |||||||||||
Royalty and litigation reserves | 37,786 | — | 45,786 | — | |||||||||||
Adjusted SG&A | $ | 48,422 | $ | 49,083 | $ | 89,400 | $ | 75,165 | |||||||
Total sales volumes (MMcfe) | 370,114 | 362,540 | 753,584 | 719,545 | |||||||||||
Adjusted SG&A per unit | $ | 0.13 | $ | 0.14 | $ | 0.12 | $ | 0.10 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Operating revenues: | (Thousands, except per share amounts) | ||||||||||||||
Sales of natural gas, oil and NGLs | $ | 900,527 | $ | 991,365 | $ | 2,172,140 | $ | 2,217,739 | |||||||
Gain (loss) on derivatives not designated as hedges | 407,635 | (53,897 | ) | 275,639 | 8,695 | ||||||||||
Net marketing services and other | 2,090 | 13,180 | 5,646 | 36,250 | |||||||||||
Total operating revenues | 1,310,252 | 950,648 | 2,453,425 | 2,262,684 | |||||||||||
Operating expenses: | |||||||||||||||
Transportation and processing | 436,984 | 428,069 | 876,230 | 844,726 | |||||||||||
Production | 36,316 | 47,863 | 79,724 | 106,497 | |||||||||||
Exploration | 1,857 | 1,653 | 2,864 | 2,878 | |||||||||||
Selling, general and administrative | 86,208 | 62,959 | 135,186 | 102,774 | |||||||||||
Depreciation and depletion | 372,413 | 371,709 | 763,526 | 764,402 | |||||||||||
Impairment/loss on sale of long-lived assets | — | 118,114 | — | 2,447,159 | |||||||||||
Lease impairments and expirations | 48,584 | 19,529 | 78,118 | 23,408 | |||||||||||
Proxy, transaction and reorganization | 21,518 | 5,060 | 25,607 | 15,138 | |||||||||||
Amortization of intangible assets | 10,342 | 10,342 | 20,684 | 20,684 | |||||||||||
Total operating expenses | 1,014,222 | 1,065,298 | 1,981,939 | 4,327,666 | |||||||||||
Operating income (loss) | 296,030 | (114,650 | ) | 471,486 | (2,064,982 | ) | |||||||||
Unrealized (loss) on investment in Equitrans Midstream Corporation | (104,741 | ) | — | (15,686 | ) | — | |||||||||
Dividend and other income (expense) | 23,645 | (130 | ) | 44,632 | (260 | ) | |||||||||
Interest expense | 50,503 | 57,120 | 107,076 | 115,031 | |||||||||||
Income (loss) from continuing operations before income taxes | 164,431 | (171,900 | ) | 393,356 | (2,180,273 | ) | |||||||||
Income tax expense (benefit) | 38,865 | (94,922 | ) | 77,099 | (524,762 | ) | |||||||||
Income (loss) from continuing operations | 125,566 | (76,978 | ) | 316,257 | (1,655,511 | ) | |||||||||
Income from discontinued operations, net of tax | — | 213,324 | — | 346,878 | |||||||||||
Net income (loss) | 125,566 | 136,346 | 316,257 | (1,308,633 | ) | ||||||||||
Less: Net income from discontinued operations attributable to noncontrolling interests | — | 118,540 | — | 259,555 | |||||||||||
Net income (loss) attributable to EQT Corporation | $ | 125,566 | $ | 17,806 | $ | 316,257 | $ | (1,568,188 | ) | ||||||
Amounts attributable to EQT Corporation: | |||||||||||||||
Income (loss) from continuing operations | $ | 125,566 | $ | (76,978 | ) | $ | 316,257 | $ | (1,655,511 | ) | |||||
Income from discontinued operations, net of tax | — | 94,784 | — | 87,323 | |||||||||||
Net income (loss) attributable to EQT Corporation | $ | 125,566 | $ | 17,806 | $ | 316,257 | $ | (1,568,188 | ) | ||||||
Earnings per share of common stock attributable to EQT Corporation: | |||||||||||||||
Basic: | |||||||||||||||
Weighted average common stock outstanding | 255,099 | 265,030 | 254,975 | 264,920 | |||||||||||
Income (loss) from continuing operations | $ | 0.49 | $ | (0.29 | ) | $ | 1.24 | $ | (6.25 | ) | |||||
Income from discontinued operations | — | 0.36 | — | 0.33 | |||||||||||
Net income (loss) | $ | 0.49 | $ | 0.07 | $ | 1.24 | $ | (5.92 | ) | ||||||
Diluted: | |||||||||||||||
Weighted average common stock outstanding | 255,223 | 265,154 | 255,211 | 264,920 | |||||||||||
Income (loss) from continuing operations | $ | 0.49 | $ | (0.29 | ) | $ | 1.24 | $ | (6.25 | ) | |||||
Income from discontinued operations | — | 0.36 | $ | — | $ | 0.33 | |||||||||
Net income (loss) | $ | 0.49 | $ | 0.07 | $ | 1.24 | $ | (5.92 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Thousands, unless noted) | |||||||||||||||
NATURAL GAS | |||||||||||||||
Sales volume (MMcf) | 351,211 | 334,135 | 714,928 | 663,539 | |||||||||||
NYMEX price ($/MMBtu) (a) | $ | 2.64 | $ | 2.80 | $ | 2.90 | $ | 2.89 | |||||||
Btu uplift | 0.12 | 0.18 | 0.14 | 0.19 | |||||||||||
Natural gas price ($/Mcf) | $ | 2.76 | $ | 2.98 | $ | 3.04 | $ | 3.08 | |||||||
Basis ($/Mcf) (b) | $ | (0.36 | ) | $ | (0.42 | ) | $ | (0.20 | ) | $ | (0.15 | ) | |||
Cash settled basis swaps (not designated as hedges) ($/Mcf) | (0.05 | ) | (0.01 | ) | (0.08 | ) | (0.08 | ) | |||||||
Average differential, including cash settled basis swaps ($/Mcf) | $ | (0.41 | ) | $ | (0.43 | ) | $ | (0.28 | ) | $ | (0.23 | ) | |||
Average adjusted price ($/Mcf) | $ | 2.35 | $ | 2.55 | $ | 2.76 | $ | 2.85 | |||||||
Cash settled derivatives (not designated as hedges) ($/Mcf) | 0.20 | 0.09 | 0.07 | 0.07 | |||||||||||
Average natural gas price, including cash settled derivatives ($/Mcf) | $ | 2.55 | $ | 2.64 | $ | 2.83 | $ | 2.92 | |||||||
Natural gas sales, including cash settled derivatives | $ | 896,441 | $ | 884,543 | $ | 2,025,642 | $ | 1,939,608 | |||||||
LIQUIDS | |||||||||||||||
NGLs (excluding ethane): | |||||||||||||||
Sales volume (MMcfe) (c) | 11,201 | 18,944 | 23,750 | 37,335 | |||||||||||
Sales volume (Mbbls) | 1,867 | 3,157 | 3,958 | 6,222 | |||||||||||
Price ($/Bbl) | $ | 21.15 | $ | 36.39 | $ | 25.75 | $ | 36.94 | |||||||
Cash settled derivatives (not designated as hedges) ($/Bbl) | 2.86 | (0.91 | ) | 2.22 | (1.06 | ) | |||||||||
Average NGLs price, including cash settled derivatives ($/Bbl) | $ | 24.01 | $ | 35.48 | $ | 27.97 | $ | 35.88 | |||||||
NGLs sales | $ | 44,821 | $ | 112,034 | $ | 110,724 | $ | 223,270 | |||||||
Ethane: | |||||||||||||||
Sales volume (MMcfe) (c) | 6,455 | 8,414 | 12,393 | 16,411 | |||||||||||
Sales volume (Mbbls) | 1,076 | 1,402 | 2,066 | 2,735 | |||||||||||
Price ($/Bbl) | $ | 6.54 | $ | 7.67 | $ | 6.87 | $ | 7.78 | |||||||
Ethane sales | $ | 7,038 | $ | 10,754 | $ | 14,190 | $ | 21,286 | |||||||
Oil: | |||||||||||||||
Sales volume (MMcfe) (c) | 1,247 | 1,047 | 2,513 | 2,260 | |||||||||||
Sales volume (Mbbls) | 208 | 175 | 419 | 377 | |||||||||||
Price ($/Bbl) | $ | 48.78 | $ | 56.04 | $ | 43.69 | $ | 55.56 | |||||||
Oil sales | $ | 10,140 | $ | 9,784 | $ | 18,300 | $ | 20,930 | |||||||
Total liquids sales volume (MMcfe) (c) | 18,903 | 28,405 | 38,656 | 56,006 | |||||||||||
Total liquids sales volume (Mbbls) | 3,151 | 4,734 | 6,443 | 9,334 | |||||||||||
Liquids sales | $ | 61,999 | $ | 132,572 | $ | 143,214 | $ | 265,486 | |||||||
TOTAL PRODUCTION | |||||||||||||||
Total natural gas & liquids sales, including cash settled derivatives (d) | $ | 958,440 | $ | 1,017,115 | $ | 2,168,856 | $ | 2,205,094 | |||||||
Total sales volume (MMcfe) | 370,114 | 362,540 | 753,584 | 719,545 | |||||||||||
Average realized price ($/Mcfe) | $ | 2.59 | $ | 2.81 | $ | 2.88 | $ | 3.06 |
(a) | The Company’s volume weighted NYMEX natural gas price (actual average NYMEX natural gas price ($/MMBtu) was $2.64 and $2.80 for the three months ended June 30, 2019 and 2018, respectively, and $2.89 and $2.90 for the six months ended June 30, 2019 and 2018, respectively. |
(b) | Basis represents the difference between the ultimate sales price for natural gas and the NYMEX natural gas price. |
(c) | NGLs, ethane and crude oil were converted to Mcfe at the rate of six Mcfe per barrel for all periods. |
(d) | Also referred to in this report as adjusted operating revenues, a non-GAAP supplemental financial measure. |
3XG&6E;ECW?Z+J?H7\ \TP64-YJD@4RN-OSRLJXR<$DA>IZ5Z=11&G&*:74*^95\1.$Y67)JDEH
M?(G["W[*_C/]G/5O%]SXKETN2/58+:.W_LZX:4@QM(6W91?%?7=%%5&*@N
M5'+BL3/%U76J;L_/?XX?\$W=?7QQ<^*/A-K-II\4TYNDTNXF>UELY" _%GACPAX-\17V@WD-L^H:C-IT[1.W
MF-LAC)![!)&(_P!I37J#:=\&^-GR?$G^ZP_P 7Z,]UHHHKTC\[
M"BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH *
M*** "BBB@#S_ .+'QX\"_!'3/MGB_P 06VFR.NZ&R4^9=3_[D2Y8C/&<8',FN=,^'MK_ ,(AI#90:C-MDU"5?4=4AR.R[F'4.*^2/&VJ
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M "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH
M**** "BBB@ K]GOV'?\ DU3X??\ 7K-_Z4RU^,-?L]^P[_R:I\/O^O6;_P!*
M9:Z\-\;/D^)/]UA_B_1GNM%%%>D?G84444 %%%% !1110 4444 %%%% !111
M0 4444 %%%% !1110 4444 %%%% !1110 4444 ?S]^(O^1BU/\ Z^9?_0S5
M"K_B+_D8M3_Z^9?_ $,U0KPC]NCL@HHHH*"BBB@ HHHH **** "BBB@ HHHH
M **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
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M*"BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH
M**** "BBB@ HHHH **** "BBB@ K]GOV'?\ DU3X??\ 7K-_Z4RU^,-?L]^P
M[_R:I\/O^O6;_P!*9:Z\-\;/D^)/]UA_B_1GNM%%%>D?G84444 %%%% !111
M0 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 ?S]^(
MO^1BU/\ Z^9?_0S5"K_B+_D8M3_Z^9?_ $,U0KPC]NCL@HHHH*"BBB@ HHHH
M **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
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M 4444 %%%% !1110 4444 ?S]^(O^1BU/_KYE_\ 0S5"K_B+_D8M3_Z^9?\
MT,U0KPC]NCL@HHHH*"BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH
M**** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ K]GOV'?\ DU3X??\
M7K-_Z4RU^,-?L]^P[_R:I\/O^O6;_P!*9:Z\-\;/D^)/]UA_B_1GNM%%%>D?
MG84444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%%
M!1110 4444 ?S]^(O^1BU/\ Z^9?_0S5"K_B+_D8M3_Z^9?_ $,U0KPC]NCL
M@HHHH*"BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@
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M@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
M"BBB@ HHHH *_9[]AW_DU3X??]>LW_I3+7XPU^SW[#O_ ":I\/O^O6;_ -*9
M:Z\-\;/D^)/]UA_B_1GNM%%%>D?G84444 %%%% !1110 4444 %%%% !1110
M 4444 %%%% !1110 4444 %%%% !1110 4444 ?S]^(O^1BU/_KYE_\ 0S5"
MK_B+_D8M3_Z^9?\ T,U0KPC]NCL@HHHH*"BBB@ HHHH **** "BBB@ HHHH
M**** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ K
M]GOV'?\ DU3X??\ 7K-_Z4RU^,-?L]^P[_R:I\/O^O6;_P!*9:Z\-\;/D^)/
M]UA_B_1GNM%%%>D?G84444 %%%% !1110 4444 %%%% !1110 4444 %%%%
M!1110 4444 %%%% !1110 4444 ?S]^(O^1BU/\ Z^9?_0S5"K_B+_D8M3_Z
M^9?_ $,U0KPC]NCL@HHHH*"BBB@ HHHH **** "BBB@ HHHH **** "BBB@
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M %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110
M4444 ?S]^(O^1BU/_KYE_P#0S5"K_B+_ )&+4_\ KYE_]#-4*\(_;H[(****
M"@HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH ****
M"BBB@ HHHH **** "BBB@ HHHH *_9[]AW_DU3X??]>LW_I3+7XPU^SW[#O_
M ":I\/O^O6;_ -*9:Z\-\;/D^)/]UA_B_1GNM%%%>D?G84444 %%%% !1110
M 4444 %%%% !1110 4444 %%%% !1110 4444 %%%% !1110 4444 ?S]^(O
M^1BU/_KYE_\ 0S5"K_B+_D8M3_Z^9?\ T,U0KPC]NCL@HHHH*"BBB@ HHHH
M**** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ HHHH **** "BBB@ H
MHHH **** "BBB@ K]GOV'?\ DU3X??\ 7K-_Z4RU^,-?L]^P[_R:I\/O^O6;
M_P!*9:Z\-\;/D^)/]UA_B_1GNM%%%>D?G84444 %%%% !1110 4444 %%%%
M!1110 4444 %%%% !1110 4444 %%%% !1110 4444 ?S]^(O^1BU/\ Z^9?
M_0S5"M[Q%X=U5O$&ID:9>$&ZE_Y=W_OGVJA_PCNK_P#0,O/_ '?_"O#L?ML
M9*RU*%%7_P#A'=7_ .@9>?\ @._^%'_".ZO_ - R\_\ =_\*17,NY0HJ_\
M\([J_P#T#+S_ ,!W_P */^$=U?\ Z!EY_P" [_X4!S+N4**O_P#".ZO_ - R
M\_\ =_\*/\ A'=7_P"@9>?^ [_X4!S+N4**O_\ ".ZO_P! R\_\!W_PH_X1
MW5_^@9>?^ [_ .%
RE\*-<:3-),ZL)V$OWU
MQT''>OJW]@W]J32_B3H^B?"^VT2\L[_PYX=226_EE1HIO):&$A5'(R90>>PK
M.-9.;B=V(RF5+!0Q*3N]7MHC[!HKY3_:-_X*!>%?@;XFN/"^E:1+XO\ $-K\
MMVD=R+>VM7/\#2;6+.!R5"X'0D'('D7A_P#X*R1O?1IKGPY:*S9AOFT_50\B
M+WPCQ ,?^!+5NM"+LV
FO9WJ&Y>/
M,^T*QW;1U&..
W491114@%%/C1I'5%&YF. /