(Mark One) | |
ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF |
For the fiscal year ended December 31, | |
Or | |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF |
For the transition period from ________ to ________ |
Minnesota | 95-3848122 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Name of Each Exchange On Which Registered | |
Common Stock, $0.001 par value | NYSE | |
Large Accelerated Filer ý | Accelerated Filer ¨ | Non-Accelerated Filer ¨ (Do not check if a smaller reporting company) | Smaller Reporting Company ¨ |
Page | |||||
Part I | |||||
Item 1. | Business | 2 | |||
Item 1A. | Risk Factors | 9 | |||
Item 1B. | Unresolved Staff Comments | 23 | |||
Item 2. | Properties | 23 | |||
Item 3. | Legal Proceedings | 29 | |||
Item 4. | Mine Safety Disclosures | 29 | |||
Part II | |||||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 30 | |||
Item 6. | Selected Financial Data | 33 | |||
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 34 | |||
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | 52 | |||
Item 8. | Financial Statements and Supplementary Data | 53 | |||
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure | 53 | |||
Item 9A. | Controls and Procedures | 53 | |||
Item 9B. | Other Information | 56 | |||
Part III | |||||
Item 10. | Directors, Executive Officers and Corporate Governance | 57 | |||
Item 11. | Executive Compensation | 57 | |||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 57 | |||
Item 13. | Certain Relationships and Related Transactions, and Director Independence | 57 | |||
Item 14. | Principal Accountant Fees and Services | 58 | |||
Part IV | |||||
Item 15. | Exhibits and Financial Statement Schedules | 58 | |||
Signatures | 59 | ||||
Index to Financial Statements | F-1 |
As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Productive Wells | ||||||||||||||||||||||||||||||||
Net Acres | Gross | Net | Average Daily Production(1) | Proved Reserves | % Oil | % Proved Developed | PV-10(2) | |||||||||||||||||||||||||
(Boe per day) | (MBoe) | (in thousands) | ||||||||||||||||||||||||||||||
North Dakota | 138,490 | 1173 | 97.9 | 10,403 | 66,133 | 90 | % | 44 | % | $ | 1,261,408 | |||||||||||||||||||||
Montana | 40,641 | 54 | 8.3 | 462 | 1,461 | 91 | 77 | 25,998 | ||||||||||||||||||||||||
Total | 179,131 | 1227 | 106.2 | 10,865 | 67,594 | 90 | 45 | $ | 1,287,406 |
(1) | Represents the average daily production over the three months ended December 31, 2012. |
(2) | PV-10 is a non-GAAP financial measure. For further information and reconciliation to the most directly comparable GAAP measures, see “Item 2. Properties–Proved Reserves.” The prices used to calculate this measure were $84.92 per barrel of oil and $4.78 per Mcf of natural gas, which includes an uplift factor of 1.7 to reflect liquids and condensates (natural gas liquids are included with natural gas). The NYMEX benchmark used to calculate PV-10 was $94.71 per barrel of oil and $2.76 per Mcf of gas, translating to an average differential to benchmark prices for us of $9.79 per barrel of oil and a premium of $2.02 per Mcf of gas. |
At December 31, 2011 | Year Ended December 31, 2011 | |||||||||||||||||||||
Productive Wells | Average Daily Production Volumes(d) | |||||||||||||||||||||
Proved Reserves(a) | Pre-Tax PV10%(b)(c) | % Oil | Gross | Net | ||||||||||||||||||
(MBoe) | (Thousands) | (BOE) | ||||||||||||||||||||
46,822 | $ | 1,101,333 | 89 | % | 664 | 57.9 | 5,275 |
· |
· |
· | Make Strategic Acquisitions in the Williston Basin at Attractive Prices. We generally seek to acquire small lease positions at a significant discount to the contiguous acreage positions typically sought by larger producers. As part of this strategy, we consider areas that are actively being drilled and permitted and where we have an understanding of the operators and their drilling plans, capital requirements and well economics. Historically, we have acquired properties by purchasing individual or small groups of leases directly from mineral owners or from landmen or lease brokers, as well as purchasing lease packages in identified project areas controlled by specific operators. We believe this acquisition strategy will allow us to expand our operations at attractive prices. During 2012, we acquired 17,590 net acres at an average cost of $1,788 per acre, and earned an additional 6,450 net acres through farm-in arrangements. During 2011, we acquired approximately 43,239 net acres at an average price of $1,832 per acre. |
· |
Costless Collars | ||||||||||||
Contract Period | Volume (Bbl) | Average Floor | Average Ceiling | |||||||||
2013 | 2,153,269 | $ | 90.01 | $ | 104.17 | |||||||
2014 | 240,000 | $ | 90.00 | $ | 99.05 |
Swaps | ||||||||
Contract Period | Volume (Bbl) | Average Price | ||||||
2013 | 960,000 | $ | 91.86 | |||||
2014 | 2,130,000 | $ | 91.65 |
require the acquisition of a permit or other authorization before construction or drilling commences and for certain other activities; |
● | limit or prohibit construction, drilling and other activities on certain lands lying within wilderness and other protected areas; and |
● | impose substantial liabilities for pollution resulting from its operations. |
· | changes in global supply and demand for oil and natural gas; |
· | the actions of OPEC and other major oil producing countries; |
· | the price and quantity of imports of foreign oil and natural gas; |
· | political and economic conditions, including embargoes, in oil-producing countries or affecting other oil-producing activity; |
· | the level of global oil and natural gas exploration and production activity; |
· | the level of global oil and natural gas inventories; |
· | weather conditions; |
· | technological advances affecting energy consumption; |
· | domestic and foreign governmental regulations; |
· | proximity and capacity of oil and natural gas pipelines and other transportation facilities; |
· | the price and availability of competitors’ supplies of oil and natural gas in captive market areas; and |
· | the price and availability of alternative fuels. |
· | the high cost, shortages or delivery delays of equipment and services; |
· | shortages of or delays in obtaining water for hydraulic fracturing operations; |
· | unexpected operational events; |
· | adverse weather conditions; |
· | facility or equipment malfunctions; |
· | title problems; |
· | pipeline ruptures or spills; |
· | compliance with environmental and other governmental requirements; |
· | unusual or unexpected geological formations; |
· | loss of drilling fluid circulation; |
· | formations with abnormal pressures; |
· | environmental hazards, such as oil, natural gas or well fluids spills or releases, pipeline or tank ruptures and discharges of toxic gas; |
· | fires; |
· | blowouts, craterings and explosions; |
· | uncontrollable flows of oil, natural gas or well fluids; and |
· | pipeline capacity curtailments. |
· | the timing and amount of capital expenditures; |
· | their expertise and financial resources; |
· | approval of other participants in drilling wells; |
· | selection of technology; and |
· | the rate of production of reserves, if any. |
· | a counterparty to our derivative contracts is unable to satisfy its obligations under the contracts; |
· | our production is less than expected; or |
· | there is a widening of price differentials between delivery points for our production and the delivery point assumed in the derivative arrangement. |
· | the volume, pricing and duration of our oil and natural gas hedging contracts; |
· | actual prices we receive for oil, natural gas and NGLs; |
· | our actual operating costs in producing oil, natural gas and NGLs; |
· | the amount and timing of our capital expenditures; |
· | the amount and timing of actual production; and |
· | changes in governmental regulations or taxation. |
· | the validity of our assumptions about reserves, future production, revenues and costs; |
· | a decrease in our liquidity by using a significant portion of our cash from operations or borrowing capacity to finance acquisitions; |
· | a significant increase in our interest expense or financial leverage if we incur additional debt to finance acquisitions; |
· | the assumption of unknown liabilities, losses or costs for which we are not indemnified or for which our indemnity is inadequate; |
· | an inability to hire, train or retain qualified personnel to manage and operate our growing business and assets; and |
· | an increase in our costs or a decrease in our revenues associated with any potential royalty owner or landowner claims or disputes. |
· | declare or pay any dividend or make any other distributions on, purchase or redeem our equity interests or purchase or redeem subordinated debt; |
· | make certain investments; |
· | incur or guarantee additional indebtedness or issue certain types of equity securities; |
· | create certain liens; |
· | sell assets; |
· | consolidate, merge or transfer all or substantially all of our assets; and |
· | engage in transactions with our affiliates. |
· | would not be required to lend any additional amounts to us; |
· | could elect to declare all borrowings outstanding, together with accrued and unpaid interest and fees, to be due and payable; |
· | may have the ability to require us to apply all of our available cash to repay these borrowings; and |
· | may prevent us from making debt service payments under our other agreements. |
· | require us to dedicate a substantial portion of our cash flow from operations to service our existing debt, thereby reducing the cash available to finance our operations and other business activities and could limit our flexibility in planning for or reacting to changes in our business and the industry in which we operate; |
· | increase our vulnerability to economic downturns and adverse developments in our business; |
· | limit our ability to access the capital markets to raise capital on favorable terms or to obtain additional financing for working capital, capital expenditures or acquisitions or to refinance existing indebtedness; |
· | place restrictions on our ability to obtain additional financing, make investments, lease equipment, sell assets and engage in business combinations; |
· | place us at a competitive disadvantage relative to competitors with lower levels of indebtedness in relation to their overall size or less restrictive terms governing their indebtedness; and |
· | make it more difficult for us to satisfy our obligations under our debt agreements and increase the risk that we may default on our debt obligations. |
· | refinancing or restructuring our debt; |
· | selling assets; |
· | reducing or delaying capital investments; or |
· | seeking to raise additional capital. |
Developed Acreage | Undeveloped Acreage | Total Acreage | Developed Acreage | Undeveloped Acreage | Total Acreage | |||||||||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||||||||
North Dakota: | ||||||||||||||||||||||||||||||||||||||||||||||||
Mountrail County | 109,647 | 24,616 | 36,306 | 9,492 | 145,953 | 34,107 | ||||||||||||||||||||||||||||||||||||||||||
Dunn County | 47,534 | 10,467 | 37,754 | 16,595 | 85,247 | 27,062 | ||||||||||||||||||||||||||||||||||||||||||
McKenzie County | 47,588 | 12,694 | 38,134 | 10,308 | 85,722 | 23,002 | ||||||||||||||||||||||||||||||||||||||||||
Divide County | 42,147 | 12,816 | 10,052 | 5,158 | 52,199 | 17,974 | ||||||||||||||||||||||||||||||||||||||||||
Williams County | 45,755 | 12,472 | 20,395 | 4,906 | 66,150 | 17,378 | ||||||||||||||||||||||||||||||||||||||||||
Other | 52,048 | 9,375 | 62,956 | 9,591 | 115,006 | 18,967 | ||||||||||||||||||||||||||||||||||||||||||
North Dakota | 196,771 | 48,510 | 337,045 | 88,711 | 533,815 | 137,221 | 344,719 | 82,440 | 205,597 | 56,050 | 550,277 | 138,490 | ||||||||||||||||||||||||||||||||||||
Montana | 10,961 | 3,709 | 62,422 | 26,632 | 73,383 | 30,341 | 28,043 | 7,337 | 100,946 | 33,304 | 128,358 | 40,641 | ||||||||||||||||||||||||||||||||||||
New York | – | – | 1,281 | 1,281 | 1,281 | 1,281 | ||||||||||||||||||||||||||||||||||||||||||
Total | 207,732 | 52,219 | 400,748 | 116,624 | 608,479 | 168,843 | ||||||||||||||||||||||||||||||||||||||||||
Total: | 372,762 | 89,777 | 306,543 | 89,354 | 678,635 | 179,131 |
Acres Expiring | Acreage Subject to Expiration | |||||||||||||||
Year Ended | Gross | Net | Gross | Net | ||||||||||||
December 31, 2012 | 45,503 | 17,677 | ||||||||||||||
December 31, 2013 | 75,521 | 23,765 | 66,135 | 20,915 | ||||||||||||
December 31, 2014 | 76,231 | 23,371 | 74,629 | 26,364 | ||||||||||||
December 31, 2015 | 73,160 | 20,925 | 100,117 | 22,744 | ||||||||||||
December 31, 2016 and thereafter | 27,255 | 17,998 | ||||||||||||||
December 31, 2016 | 13,142 | 7,908 | ||||||||||||||
December 31, 2017 and thereafter | 4,887 | 2,144 | ||||||||||||||
Total | 297,670 | 103,738 | 258,909 | 80,075 |
Year Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Net Production: | ||||||||||||
Crude Oil (Bbl) | 1,791,979 | 849,845 | 274,328 | |||||||||
Natural Gas (Mcf) | 800,207 | 234,411 | 47,305 | |||||||||
Barrel of Crude Oil Equivalent (BOE) | 1,925,347 | 888,914 | 282,212 | |||||||||
Average Sales Prices: | ||||||||||||
Crude Oil (per Bbl) | $ | 86.01 | $ | 68.27 | $ | 54.60 | ||||||
Effect of crude oil hedges on average price (per Bbl) | (7.48 | ) | (0.55 | ) | (2.28 | ) | ||||||
Crude Oil net of hedging (per Bbl) | 78.53 | 67.72 | 52.32 | |||||||||
Natural Gas and other liquids (per Mcf) | 6.63 | 6.26 | 4.11 | |||||||||
Realized price on a BOE basis including all realized derivative settlements | 75.85 | 66.39 | 51.55 | |||||||||
Average Production Costs: | ||||||||||||
Barrel of Oil Equivalent (per BOE) | $ | 6.77 | $ | 3.70 | $ | 2.68 |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Net Production: | ||||||||||||
Oil (Bbl) | 3,465,311 | 1,791,979 | 849,845 | |||||||||
Natural Gas and NGLs (Mcf) | 1,768,872 | 800,207 | 234,411 | |||||||||
Barrels of Oil Equivalent (Boe) | 3,760,123 | 1,925,347 | 888,914 | |||||||||
Average Sales Prices: | ||||||||||||
Oil (per Bbl) | $ | 83.22 | $ | 86.01 | $ | 68.27 | ||||||
Effect of Loss on Settled Derivatives on Average Price (per Bbl) | (0.11 | ) | (7.48 | ) | (0.55 | ) | ||||||
Oil Net of Settled Derivatives (per Bbl) | 83.11 | 78.53 | 67.72 | |||||||||
Natural Gas and NGLs (per Mcf) | 4.67 | 6.63 | 6.26 | |||||||||
Realized Price on a Boe Basis Including All Realized Derivative Settlements | 78.79 | 75.85 | 66.39 | |||||||||
Average Costs: | ||||||||||||
Production Expenses (per Boe) | $ | 8.61 | $ | 6.77 | $ | 3.70 |
Year Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Depletion of crude oil and natural gas properties | $ | 40,815,426 | $ | 16,884,563 | $ | 4,250,983 |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Depletion of Oil and Natural Gas Properties | $ | 98,427,159 | $ | 40,815,426 | $ | 16,884,563 | ||||||
Depletion Expense (per Boe) | $ | 26.18 | $ | 21.20 | $ | 18.99 |
Year Ended December 31, | ||||||||||||||||||||||||
2011 | 2010 | 2009 | ||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
Exploratory Wells: | ||||||||||||||||||||||||
Crude oil | 1 | 0.01 | 2 | 0.44 | 1 | 0.23 | ||||||||||||||||||
Natural gas | – | – | – | – | – | – | ||||||||||||||||||
Non-productive | 1 | 0.33 | – | – | – | – | ||||||||||||||||||
Development Wells: | ||||||||||||||||||||||||
Crude oil | 353 | 32.26 | 168 | 16.41 | 144 | 6.86 | ||||||||||||||||||
Natural gas | – | – | – | – | – | – | ||||||||||||||||||
Non-productive | – | – | – | – | – | – | ||||||||||||||||||
Total Productive Exploratory and Development Wells | 354 | 32.27 | 170 | 16.85 | 145 | 7.09 |
Year Ended December 31, | ||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
Exploratory Wells: | ||||||||||||||||||||||||
Oil | – | – | 1 | – | 2 | 0.4 | ||||||||||||||||||
Natural Gas | – | – | – | – | – | – | ||||||||||||||||||
Non-Productive | – | – | 1 | 0.3 | – | – | ||||||||||||||||||
Development Wells: | ||||||||||||||||||||||||
Oil | 563 | 48.3 | 353 | 32.3 | 168 | 16.4 | ||||||||||||||||||
Natural Gas | – | – | – | – | – | – | ||||||||||||||||||
Non-Productive | – | – | – | – | – | – | ||||||||||||||||||
Total Productive Exploratory and Development Wells | 563 | 48.3 | 354 | 32.3 | 170 | 16.8 |
Year Ended December 31, | At December 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||||||||||||||||||||
North Dakota | 642 | 54.40 | 300 | 23.90 | 170 | 8.17 | 1,173 | 97.9 | 642 | 54.4 | 300 | 23.9 | ||||||||||||||||||||||||||||||||||||
Montana | 22 | 3.53 | 11 | 2.13 | 9 | 1.02 | 54 | 8.3 | 22 | 3.5 | 11 | 2.1 | ||||||||||||||||||||||||||||||||||||
Total | 664 | 57.94 | 311 | 26.03 | 179 | 9.19 | 1,227 | 106.2 | 664 | 57.9 | 311 | 26.0 |
MMBoe | ||||
Estimated Proved Undeveloped Reserves at 12-31-2011 | 31.1 | |||
PUD’s converted to PDP’s during 2012 | (7.6 | ) | ||
Additional PUD’s added during 2012 | 15.3 | |||
Revisions of previous estimates | (1.4 | ) | ||
Estimated Proved Undeveloped reserves at 12-31-2012 | 37.4 |
Crude Oil (barrels) | Natural Gas (Mcf) | Total (BOE)(2) | Pre-Tax PV10% Value $M(3) | Oil (MBbl) | Natural Gas (MMcf) | Total (MBoe)(2) | Pre-Tax PV10% Value $M(3) | |||||||||||||||||||||||||
PDP Properties | 13,308,105 | 7,779,168 | 14,604,633 | $ | 534,492 | 23,679 | 15,014 | 26,181 | $ | 795,669 | ||||||||||||||||||||||
PDNP Properties | 1,030,471 | 673,488 | 1,142,718 | $ | 17,084 | 3,667 | 2,336 | 4,056 | 42,833 | |||||||||||||||||||||||
PUD Properties | 27,538,402 | 21,216,508 | 31,074,487 | $ | 549,757 | 33,368 | 23,928 | 37,356 | 448,904 | |||||||||||||||||||||||
Total Proved Properties: | 41,876,978 | 29,669,164 | 46,821,838 | $ | 1,101,333 | 60,714 | 41,278 | 67,594 | $ | 1,287,406 |
(1) | The SEC Pricing Proved Reserves table above values |
(2) |
(3) | Pre-tax PV10% may be considered a non-GAAP financial measure as defined by the SEC and is derived from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP measure. Pre-tax PV10% is computed on the same basis as the standardized measure of discounted future net cash flows but without deducting future income taxes. We believe Pre-tax PV10% is a useful measure for investors for evaluating the relative monetary significance of our |
SEC Pricing Proved Reserves (in thousands) | SEC Pricing Proved Reserves (in thousands) | SEC Pricing Proved Reserves (in thousands) | ||||||
Standardized Measure Reconciliation | Standardized Measure Reconciliation | Standardized Measure Reconciliation | ||||||
Pre-tax Present Value of estimated future net revenues (Pre-tax PV10%) | $ | 1,101,333 | $ | 1,287,406 | ||||
Future income taxes, discounted at 10% | 262,636 | 246,051 | ||||||
Standardized measure of discounted future net cash flows | $ | 838,697 | $ | 1,041,355 |
Name | Age | Positions | |||
Michael L. Reger | Chairman, Chief Executive Officer and Director | ||||
57 | Chief Financial Officer | ||||
Brandon R. | 41 | Executive Vice President, Corporate Development and Strategy | |||
Erik J. Romslo | 35 | Executive Vice President, | |||
Sales Price | Sales Price | |||||||||||||||
High | Low | High | Low | |||||||||||||
Fiscal Year Ended December 31, 2011 | ||||||||||||||||
First Quarter | $ | 33.98 | $ | 23.50 | $ | 33.98 | $ | 23.50 | ||||||||
Second Quarter | 27.25 | 16.63 | 27.25 | 16.63 | ||||||||||||
Third Quarter | 25.01 | 13.25 | 25.01 | 13.25 | ||||||||||||
Fourth Quarter | 27.70 | 16.50 | 27.70 | 16.50 | ||||||||||||
Fiscal Year Ended December 31, 2010 | ||||||||||||||||
Fiscal Year Ended December 31, 2012 | ||||||||||||||||
First Quarter | $ | 16.23 | $ | 10.47 | $ | 28.00 | $ | 20.04 | ||||||||
Second Quarter | 18.00 | 11.72 | 21.40 | 14.94 | ||||||||||||
Third Quarter | 17.11 | 11.95 | 19.70 | 14.40 | ||||||||||||
Fourth Quarter | 28.43 | 16.98 | 17.88 | 13.73 | ||||||||||||
4/13/2007 | 12/31/2007 | 12/31/2008 | 12/31/2009 | 12/31/2010 | 12/31/2011 | |||||||||||||||||||
Northern Oil and Gas, Inc. (NOG) | $ | 100.00 | $ | 173.75 | $ | 65.00 | $ | 296.00 | $ | 680.25 | $ | 599.50 | ||||||||||||
Standard & Poor’s Composite 500 Index | 100.00 | 104.82 | 66.04 | 83.52 | 96.10 | 98.13 | ||||||||||||||||||
Amex Oil Index | 100.00 | 126.46 | 89.73 | 101.26 | 107.40 | 114.61 |
12/31/07 | 12/31/08 | 12/31/09 | 12/31/10 | 12/31/11 | 12/31/12 | |||||||||||||||||||
Northern Oil & Gas, Inc. | $ | 100.00 | $ | 37.41 | $ | 170.36 | $ | 391.51 | $ | 345.04 | $ | 242.01 | ||||||||||||
S&P 500 | 100.00 | 63.00 | 79.67 | 91.67 | 93.61 | 108.59 | ||||||||||||||||||
NYSE Arca Oil Index | 100.00 | 70.99 | 80.27 | 85.04 | 90.76 | 92.55 |
our financial condition and performance; |
earnings; |
need for funds; |
capital requirements; |
prior claims of preferred stock to the extent issued and outstanding; and |
other factors, including income tax consequences, contractual restrictions and any applicable laws. |
Period | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publically Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs(2) | |||||||||
Month #1 | |||||||||||||
October 1, 2011 to October 31, 2011 | 26,292 | $ | 19.39 | - | 150 million | ||||||||
Month #2 | |||||||||||||
November 1, 2011 to November 30, 2011 | 12,055 | 22.77 | - | 150 million | |||||||||
Month #3 | |||||||||||||
December 1, 2011 to December 31, 2011 | 12,047 | 24.64 | - | 150 million | |||||||||
Total | 50,394 | $ | 21.45 | - | 150 million |
Period | Total Number of Shares Purchased(1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publically Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs(2) | ||||||||||||
Month #1 | ||||||||||||||||
October 1, 2012 to October 31, 2012 | 15,215 | $ | 16.44 | - | $ | 150 million | ||||||||||
Month #2 | ||||||||||||||||
November 1, 2012 to November 30, 2012 | - | - | - | 150 million | ||||||||||||
Month #3 | ||||||||||||||||
December 1, 2012 to December 31, 2012 | 7,773 | 15.79 | - | 150 million | ||||||||||||
Total | 22,988 | $ | 16.22 | - | $ | 150 million |
(1) | All shares purchased reflect shares surrendered by company employees in satisfaction of tax obligations in connection with restricted stock awards. |
(2) | In May 2011, our board of directors approved a stock repurchase program to acquire up to $150 million shares of our company’s outstanding common stock. We have not made any repurchases under this program to date. |
Fiscal Years | ||||||||||||||||||||||||||||||||||||||||
Fiscal Years | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | (in thousands, except share and per common share data) | |||||||||||||||||||||||||||||||||||
Statements of Income Information: | Statements of Income Information: | |||||||||||||||||||||||||||||||||||||||
Revenues | Revenues | |||||||||||||||||||||||||||||||||||||||
Oil and Gas Sales | $ | 159,439,508 | $ | 59,488,284 | $ | 15,171,824 | $ | 3,542,994 | $ | – | $ | 296,638 | $ | 159,440 | $ | 59,488 | $ | 15,172 | $ | 3,543 | ||||||||||||||||||||
(Loss) Gain on Settled Derivatives | (13,407,878 | ) | (469,607 | ) | (624,541 | ) | 778,885 | – | (391 | ) | (13,408 | ) | (470 | ) | (625 | ) | 779 | |||||||||||||||||||||||
Gain (Loss) on Mark-to-Market of Derivative Instruments | 3,072,229 | (14,545,477 | ) | (363,414 | ) | – | – | |||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Derivative Instruments | 15,147 | 3,072 | (14,545 | ) | (363 | ) | – | |||||||||||||||||||||||||||||||||
Other Revenue | 285,234 | 85,900 | 37,630 | – | – | 179 | 285 | 86 | 38 | – | ||||||||||||||||||||||||||||||
Total Revenues | 149,389,093 | 44,559,100 | 14,221,499 | 4,321,879 | – | 311,573 | 149,389 | 44,559 | 14,222 | 4,322 | ||||||||||||||||||||||||||||||
Operating Expenses | Operating Expenses | |||||||||||||||||||||||||||||||||||||||
Production Expenses | 13,043,633 | 3,288,482 | 754,976 | 70,954 | – | 32,382 | 13,044 | 3,288 | 755 | 71 | ||||||||||||||||||||||||||||||
Production Taxes | 14,300,720 | 5,477,975 | 1,300,373 | 203,182 | – | 28,486 | 14,301 | 5,478 | 1,300 | 204 | ||||||||||||||||||||||||||||||
General and Administrative Expense | 13,624,892 | 7,204,442 | 3,686,330 | 2,091,289 | 4,509,743 | 22,645 | 13,625 | 7,204 | 3,686 | 2,091 | ||||||||||||||||||||||||||||||
Depletion Oil and Gas Properties | 40,815,426 | 16,884,563 | 4,250,983 | 677,915 | – | 98,427 | 40,815 | 16,885 | 4,251 | 678 | ||||||||||||||||||||||||||||||
Depreciation and Amortization | 298,137 | 176,595 | 91,794 | 67,060 | 3,446 | 410 | 298 | 177 | 92 | 67 | ||||||||||||||||||||||||||||||
Accretion of Discount on Asset Retirement Obligations | 56,055 | 21,755 | 8,082 | 1,030 | – | 86 | 56 | 22 | 8 | 1 | ||||||||||||||||||||||||||||||
Total Expenses | 82,138,863 | 33,053,812 | 10,092,538 | 3,111,430 | 4,513,189 | 182,436 | 82,139 | 33,054 | 10,092 | 3,112 | ||||||||||||||||||||||||||||||
Income (Loss) from Operations | 67,250,230 | 11,505,288 | 4,128,961 | 1,210,449 | (4,513,189 | ) | ||||||||||||||||||||||||||||||||||
Income from Operations | 129,137 | 67,250 | 11,505 | 4,130 | 1,210 | |||||||||||||||||||||||||||||||||||
Other Income | – | – | 479,100 | – | 240 | 24 | – | – | 479 | – | ||||||||||||||||||||||||||||||
Interest Expense | (585,982 | ) | (583,376 | ) | (535,094 | ) | (27,485 | ) | – | (13,875 | ) | (586 | ) | (583 | ) | (535 | ) | (28 | ) | |||||||||||||||||||||
Interest Income | 567,452 | 472,912 | 191,985 | 286,736 | 205,337 | 1 | 568 | 473 | 192 | 287 | ||||||||||||||||||||||||||||||
Gain (Loss) on Available for Sale Securities | 215,092 | (58,524 | ) | – | 124,640 | 2,319 | – | 215 | (59 | ) | – | 125 | ||||||||||||||||||||||||||||
Other Income (Expense) | 196,562 | (168,988 | ) | 135,991 | 383,891 | 207,896 | ||||||||||||||||||||||||||||||||||
Total Other Income (Expense) | (13,850 | ) | 197 | (169 | ) | 136 | 384 | |||||||||||||||||||||||||||||||||
Income (Loss) Before Income Taxes | 67,446,792 | 11,336,300 | 4,264,952 | 1,594,340 | (4,305,293 | ) | ||||||||||||||||||||||||||||||||||
Income Before Income Taxes | 115,287 | 67,447 | 11,336 | 4,266 | 1,594 | |||||||||||||||||||||||||||||||||||
Income Tax Provision (Benefit) | 26,835,300 | 4,419,000 | 1,466,000 | (830,000 | ) | – | 43,002 | 26,835 | 4,419 | 1,466 | (830 | ) | ||||||||||||||||||||||||||||
Net Income (Loss) | $ | 40,611,492 | $ | 6,917,300 | $ | 2,798,952 | $ | 2,424,340 | $ | (4,305,293 | ) | |||||||||||||||||||||||||||||
Net Income | $ | 72,285 | $ | 40,612 | $ | 6,917 | $ | 2,800 | $ | 2,424 | ||||||||||||||||||||||||||||||
Net Income (Loss) Per Common Share – Basic | $ | 0.66 | $ | 0.14 | $ | 0.08 | $ | 0.08 | $ | (0.18 | ) | |||||||||||||||||||||||||||||
Net Income Per Common Share – Basic | $ | 1.16 | $ | 0.66 | $ | 0.14 | $ | 0.08 | $ | 0.08 | ||||||||||||||||||||||||||||||
Net Income (Loss) Per Common Share – Diluted | $ | 0.65 | $ | 0.14 | $ | 0.08 | $ | 0.07 | $ | (0.18 | ) | |||||||||||||||||||||||||||||
Net Income Per Common Share – Diluted | $ | 1.15 | $ | 0.65 | $ | 0.14 | $ | 0.08 | $ | 0.07 | ||||||||||||||||||||||||||||||
Weighted Average Shares Outstanding – Basic | 61,789,289 | 50,387,203 | 36,705,267 | 31,920,747 | 23,667,119 | 62,485,836 | 61,789,289 | 50,387,203 | 36,705,267 | 31,920,747 | ||||||||||||||||||||||||||||||
Weighted Average Shares Outstanding - Diluted | 62,195,340 | 50,778,245 | 36,877,070 | 32,653,552 | 23,667,119 | |||||||||||||||||||||||||||||||||||
Weighted Average Shares Outstanding – Diluted | 62,869,079 | 62,195,340 | 50,778,245 | 36,877,070 | 32,653,552 | |||||||||||||||||||||||||||||||||||
Balance Sheet Information: | ||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 725,593,919 | $ | 509,693,965 | $ | 135,594,968 | $ | 54,520,399 | $ | 18,131,464 | ||||||||||||||||||||||||||||||
Revolving Line of Credit | $ | 69,900,000 | – | – | – | – | ||||||||||||||||||||||||||||||||||
Total Liabilities | $ | 229,023,864 | $ | 74,334,483 | $ | 12,035,518 | $ | 4,991,336 | $ | 224,247 | ||||||||||||||||||||||||||||||
Shareholders’ Equity | $ | 497,797,055 | $ | 435,359,482 | $ | 123,559,450 | $ | 49,529,063 | $ | 17,907,217 | ||||||||||||||||||||||||||||||
Statement of Cashflow Information: | Statement of Cashflow Information: | |||||||||||||||||||||||||||||||||||||||
Net Cash Provided By Operating Activities | $ | 198,527 | $ | 85,150 | $ | 73,307 | $ | 9,813 | $ | 2,506 | ||||||||||||||||||||||||||||||
Net Cash Used For Investing Activities | $ | (532,172 | ) | $ | (300,868 | ) | $ | (207,893 | ) | $ | (71,849 | ) | $ | (40,358 | ) | |||||||||||||||||||||||||
Net Cash Provided By Financing Activities | $ | 340,754 | $ | 69,887 | $ | 280,464 | $ | 67,488 | $ | 28,520 | ||||||||||||||||||||||||||||||
Statement of Cashflow Information: | ||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used for) operating activities | $ | 85,149,526 | $ | 73,307,220 | $ | 9,812,910 | $ | 2,506,492 | $ | (491,509 | ) | |||||||||||||||||||||||||||||
Net cash used for investing activities | $ | (300,867,801 | ) | $ | (207,893,450 | ) | $ | (71,848,701 | ) | $ | (40,357,962 | ) | $ | (5,078,758 | ) | |||||||||||||||||||||||||
Net cash provided by financing activities | $ | 69,887,161 | $ | 280,463,559 | $ | 67,488,447 | $ | 28,519,526 | $ | 14,832,992 |
Balance Sheet Information: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and Cash Equivalents | $ | 13,388 | $ | 6,280 | $ | 152,111 | $ | 6,233 | $ | 781 | ||||||||||
Total Current Assets | 94,215 | 80,505 | 233,018 | 42,018 | 5,150 | |||||||||||||||
Property and Equipment, net | 1,083,245 | 643,703 | 275,308 | 92,150 | 46,291 | |||||||||||||||
Total Assets | 1,190,935 | 725,594 | 509,694 | 135,595 | 54,520 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Total Current Liabilities | 100,457 | 119,661 | 59,667 | 8,910 | 4,874 | |||||||||||||||
Revolving Line of Credit | 124,000 | 69,900 | - | - | - | |||||||||||||||
8% Senior Notes Due 2020 | 300,000 | - | - | - | - | |||||||||||||||
Total Liabilities | 604,750 | 229,024 | 74,334 | 12,036 | 4,991 | |||||||||||||||
Total Shareholders’ Equity | 586,185 | 496,570 | 435,360 | 123,559 | 49,529 |
Year Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Average NYMEX prices(1) | ||||||||||||
Crude Oil (per Bbl) | $ | 95.11 | $ | 79.61 | $ | 62.09 | ||||||
Natural gas (per Mcf) | $ | 4.03 | $ | 4.38 | $ | 4.16 |
Participated in the completion of |
Continued |
Ended the year with |
· | Oil price differentials. The price differential between our Williston Basin well head price and the NYMEX WTI benchmark price is driven by the additional cost to transport oil from the Williston Basin via train, barge, pipeline or truck to refineries. |
· | Unrealized gain (loss) on derivative instruments. We utilize commodity derivative financial instruments to reduce our exposure to fluctuations in the price of oil. This account activity represents the recognition of gains and losses associated with our outstanding derivative contracts as commodity prices and commodity derivative contracts change on contracts that have not been designated for hedge accounting. |
· | Realized gain (loss) on derivative instruments. This account activity represents our realized gains and losses on the settlement of commodity derivative instruments. |
· | Production expenses. Production expenses are daily costs incurred to bring oil and natural gas out of the ground and to the market, together with the daily costs incurred to maintain our producing properties. Such costs also include field personnel compensation, salt water disposal, utilities, maintenance, repairs and servicing expenses related to our oil and natural gas properties. |
· | Production taxes. Production taxes are paid on produced oil and natural gas based on a percentage of revenues from products sold at market prices (not hedged prices) or at fixed rates established by federal, state or local taxing authorities. We seek to take full advantage of all credits and exemptions in our various taxing jurisdictions. In general, the production taxes we pay correlate to the changes in oil and natural gas revenues. |
· | Depreciation, depletion and amortization. Depreciation, depletion and amortization includes the systematic expensing of the capitalized costs incurred to acquire, explore and develop oil and natural gas properties. As a full cost company, we capitalize all costs associated with our development and acquisition efforts and allocate these costs to each unit of production using the units-of-production method. |
· | General and administrative expenses. General and administrative expenses include overhead, including payroll and benefits for our corporate staff, costs of maintaining our headquarters, costs of managing our acquisition and development operations, franchise taxes, audit and other professional fees and legal compliance. |
· | Interest expense. We finance a portion of our working capital requirements, capital expenditures and acquisitions with borrowings. As a result, we incur interest expense that is affected by both fluctuations in interest rates and our financing decisions. We capitalize a portion of the interest paid on applicable borrowings into our full cost pool. We include interest expense that is not capitalized into the full cost pool, the amortization of deferred financing costs (including origination and amendment fees), commitment fees and annual agency fees as interest expense. |
· | Income tax expense. Our provision for taxes includes both federal and state taxes. We record our federal income taxes in accordance with accounting for income taxes under GAAP which results in the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized. |
· | the timing and success of drilling and production activities by our operating partners; |
· | the prices and demand for oil, natural gas and NGLs; |
· | the quantity of oil and natural gas production from the wells in which we participate; |
· | changes in the fair value of the derivative instruments we use to reduce our exposure to fluctuations in the price of oil; |
· | our ability to continue to identify and acquire high-quality acreage; and |
· | the level of our operating expenses. |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Average NYMEX prices(1) | ||||||||||||
Oil (per Bbl) | $ | 94.15 | $ | 95.11 | $ | 79.61 | ||||||
Natural Gas (per Mcf) | $ | 2.83 | $ | 4.03 | $ | 4.38 |
(1) | Based on average of daily closing prices. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||
Net Production: | ||||||||||||||||||||||||
Oil (Bbl) | 1,791,979 | 849,845 | 274,328 | 3,465,311 | 1,791,979 | 849,845 | ||||||||||||||||||
Natural Gas (Mcf) | 800,207 | 234,411 | 47,305 | |||||||||||||||||||||
Natural Gas and NGLs (Mcf) | 1,768,872 | 800,207 | 234,411 | |||||||||||||||||||||
Total (Boe)(1) | 3,760,123 | 1,925,347 | 888,914 | |||||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||
Net Sales (in thousands): | ||||||||||||||||||||||||
Oil Sales | $ | 154,132,404 | $ | 58,020,694 | $ | 14,977,556 | $ | 288,382 | $ | 154,133 | $ | 58,021 | ||||||||||||
Natural Gas | 5,307,104 | 1,467,590 | 194,268 | |||||||||||||||||||||
Natural Gas and NGL Sales | 8,256 | 5,307 | 1,467 | |||||||||||||||||||||
Loss on Settled Derivatives | (13,407,878 | ) | (469,607 | ) | (624,541 | ) | (391 | ) | (13,408 | ) | (470 | ) | ||||||||||||
Gain (Loss) on Mark-to-Market of Derivative Instruments | 3,072,229 | (14,545,477 | ) | (363,414 | ) | 15,147 | 3,072 | (14,545 | ) | |||||||||||||||
Other Revenue | 285,234 | 85,900 | 37,630 | 179 | 285 | 86 | ||||||||||||||||||
Total Revenues | 149,389,093 | 44,559,100 | 14,221,499 | 311,573 | 149,389 | 44,559 | ||||||||||||||||||
Average Sales Prices: | ||||||||||||||||||||||||
Oil (per Bbl) | $ | 86.01 | $ | 68.27 | $ | 54.60 | $ | 83.22 | $ | 86.01 | $ | 68.27 | ||||||||||||
Effect of Loss on Settled Derivatives on Average Price (per Bbl) | (7.48 | ) | (0.55 | ) | (2.28 | ) | (0.11 | ) | (7.48 | ) | (0.55 | ) | ||||||||||||
Oil Net of Settled Derivatives (per Bbl) | 78.53 | 67.72 | 52.32 | 83.11 | 78.53 | 67.72 | ||||||||||||||||||
Natural Gas and other liquids (per Mcf) | 6.63 | 6.26 | 4.11 | |||||||||||||||||||||
Realized price on a BOE basis including all realized derivative settlements | 75.85 | 66.39 | 51.55 | |||||||||||||||||||||
Natural Gas and NGLs (per Mcf) | 4.67 | 6.63 | 6.26 | |||||||||||||||||||||
Realized price on a Boe basis including all realized derivative settlements(2) | 78.79 | 75.85 | 66.39 | |||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
Operating Expenses (in thousands): | ||||||||||||||||||||||||
Production Expenses | $ | 13,043,633 | $ | 3,288,482 | $ | 754,976 | $ | 32,382 | $ | 13,044 | $ | 3,288 | ||||||||||||
Production Taxes | 14,300,720 | 5,477,975 | 1,300,373 | 28,486 | 14,301 | 5,478 | ||||||||||||||||||
General and Administrative Expense (Including Share Based Compensation) | 13,624,892 | 7,204,442 | 3,686,330 | |||||||||||||||||||||
General and Administrative Expense (Including Non-Cash Stock Based Compensation) | 22,645 | 13,625 | 7,204 | |||||||||||||||||||||
Depletion of Oil and Gas Properties | 40,815,426 | 16,884,563 | 4,250,983 | 98,427 | 40,815 | 16,885 |
(1) | Natural gas and NGLs are converted to Boe at the rate of one barrel equals six Mcf based upon the approximate relative energy content of oil and natural gas, which is not necessarily indicative of the relationship of oil and natural gas prices. |
(2) | Realized prices include realized gains and losses on cash settlements for commodity derivatives. |
Year Ended | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Production(1) | ||||||||||||
Crude oil (Bbl) | 1,791,979 | 849,845 | 274,328 | |||||||||
Natural gas and NGL (Mcf) | 800,207 | 234,411 | 47,305 | |||||||||
Total (BOE)(2) | 1,925,347 | 888,914 | 282,212 | |||||||||
Average daily production(1) | ||||||||||||
Crude oil (Bbl) | 4,910 | 2,328 | 752 | |||||||||
Natural gas and NGL (Mcf) | 2,192 | 642 | 130 | |||||||||
Total (BOE)(2) | 5,275 | 2,435 | 773 | �� |
Year Ended | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Production(1) | ||||||||||||
Oil (Bbl) | 3,465,311 | 1,791,979 | 849,845 | |||||||||
Natural Gas and NGL (Mcf) | 1,768,872 | 800,207 | 234,411 | |||||||||
Total (Boe)(2) | 3,760,123 | 1,925,347 | 888,914 | |||||||||
Average Daily Production(1) | ||||||||||||
Oil (Bbl) | 9,468 | 4,910 | 2,328 | |||||||||
Natural Gas and NGL (Mcf) | 4,833 | 2,192 | 642 | |||||||||
Total (Boe)(2) | 10,274 | 5,275 | 2,435 |
(1) | Represents volumes |
(2) | Natural gas and NGLs are converted to |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
2011 | 2010 | Change | Change | 2010 | 2009 | Change | Change | |||||||||||||||||||||||||
Depletion | $ | 21.20 | $ | 18.99 | $ | 2.21 | 12 | % | $ | 18.99 | $ | 15.06 | $ | 3.93 | 26 | % | ||||||||||||||||
Depreciation, amortization, and accretion | 0.18 | 0.23 | (0.05 | ) | (22 | %) | 0.23 | 0.35 | (0.12 | ) | (34 | )% | ||||||||||||||||||||
Total DD&A expense | $ | 21.38 | $ | 19.22 | $ | 2.16 | 11 | % | $ | 19.22 | $ | 15.42 | $ | 3.80 | 25 | % |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
2012 | 2011 | Change | Change | 2011 | 2010 | Change | Change | |||||||||||||||||||||||||
Depletion | $ | 26.18 | $ | 21.20 | $ | 4.98 | 23 | % | $ | 21.20 | $ | 18.99 | $ | 2.21 | 12 | % | ||||||||||||||||
Depreciation, amortization, and accretion | 0.13 | 0.18 | (0.05 | ) | (28 | )% | 0.18 | 0.23 | (0.05 | ) | (22 | )% | ||||||||||||||||||||
Total DD&A expense | $ | 26.31 | $ | 21.38 | $ | 4.93 | 23 | % | $ | 21.38 | $ | 19.22 | $ | 2.16 | 11 | % |
Year Ended December 31 | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(in thousands, except share and per common share data) | ||||||||||||
Net Income | $ | 72,285 | $ | 40,611 | $ | 6,917 | ||||||
Add: | ||||||||||||
Unrealized (Gain) Loss on Derivative Instruments, Net of Tax (a) | (9,497 | ) | (1,849 | ) | 8,896 | |||||||
Severance Expense, Net of Tax (b) | 3,425 | - | - | |||||||||
Adjusted Net Income | $ | 66,213 | $ | 38,762 | $ | 15,813 | ||||||
Weighted Average Shares Outstanding – Basic | 62,485,836 | 61,789,289 | 50,387,203 | |||||||||
Weighted Average Shares Outstanding – Diluted | 62,869,079 | 62,195,340 | 50,778,245 | |||||||||
Net Income Per Common Share – Basic | $ | 1.16 | $ | 0.66 | $ | 0.14 | ||||||
Add: | ||||||||||||
Change due to Unrealized (Gain) Loss on Derivative Instruments, Net of Tax | (0.15 | ) | (0.03 | ) | 0.17 | |||||||
Change due to Severance Expense, Net of Tax | 0.05 | - | - | |||||||||
Adjusted Net Income Per Common Share – Basic | $ | 1.06 | $ | 0.63 | $ | 0.31 | ||||||
Net Income Per Common Share – Diluted | $ | 1.15 | $ | 0.65 | $ | 0.14 | ||||||
Add: | ||||||||||||
Change due to Unrealized (Gain) Loss on Derivative Instruments, Net of Tax | (0.15 | ) | (0.03 | ) | 0.17 | |||||||
Change due to Severance Expense, Net of Tax | 0.05 | - | - | |||||||||
Adjusted Net Income Per Common Share – Diluted | $ | 1.05 | $ | 0.62 | $ | 0.31 |
(a) | Adjusted to reflect related tax benefit (expense) of ($5.6 million), ($1.2 million) and $5.7 million for the years ended December 31, 2012, 2011 and 2010 respectively. |
(b) | Reflects severance expense recognized in connection with the departures during 2012 of our former president and former chief operating officer. Adjusted to reflect related tax benefit of $2.0 million, for the year ended December 31, 2012. |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
(in thousands) | ||||||||||||
Net Income | $ | 72,285 | $ | 40,611 | $ | 6,917 | ||||||
Add Back: | ||||||||||||
Interest Expense | 13,875 | 586 | 583 | |||||||||
Income Tax Provision | 43,002 | 26,835 | 4,419 | |||||||||
Depreciation, Depletion, Amortization and Accretion | 98,923 | 41,170 | 17,083 | |||||||||
Non-Cash Share Based Compensation | 12,382 | 6,164 | 3,566 | |||||||||
Unrealized (Gain) Loss on Derivative Instruments | (15,147 | ) | (3,072 | ) | 14,546 | |||||||
Adjusted EBITDA | $ | 225,320 | $ | 112,294 | $ | 47,114 |
Year Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Net Income | $ | 40,611,492 | $ | 6,917,300 | $ | 2,798,952 | ||||||
(Gain) Loss on Mark-to-Market of Derivative Instruments | (3,072,229 | ) | 14,545,477 | 363,414 | ||||||||
Tax Impact | 1,223,000 | (5,649,000 | ) | (140,000 | ) | |||||||
Net Income without the Effect of Certain Items | $ | 38,762,263 | $ | 15,813,777 | $ | 3,022,366 | ||||||
Net Income Per Common Share - Basic | $ | 0.63 | $ | 0.31 | $ | 0.08 | ||||||
Net Income Per Common Share - Diluted | $ | 0.62 | $ | 0.31 | $ | 0.08 | ||||||
Weighted Average Shares Outstanding – Basic | 61,789,289 | 50,387,203 | 36,705,267 | |||||||||
Weighted Average Shares Outstanding - Diluted | 62,195,340 | 50,778,245 | 36,877,070 | |||||||||
Net Income Per Common Share - Basic | $ | 0.66 | $ | 0.14 | $ | 0.08 | ||||||
Change due to Mark-to-Market of Derivative Instruments | (0.05 | ) | 0.28 | - | ||||||||
Change due to Tax Impact | 0.02 | (0.11 | ) | - | ||||||||
Net Income without Effect of Certain Items Per Common Share - Basic | $ | 0.63 | $ | 0.31 | $ | 0.08 | ||||||
Net Income Per Common Share - Diluted | $ | 0.65 | $ | 0.14 | $ | 0.08 | ||||||
Change due to Mark-to-Market of Derivative Instruments | (0.05 | ) | 0.28 | - | ||||||||
Change due to Tax Impact | 0.02 | (0.11 | ) | - | ||||||||
Net Income without Effect of Certain Items Per Common Share - Diluted | $ | 0.62 | $ | 0.31 | $ | 0.08 |
Year Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Net Income | $ | 40,611,492 | $ | 6,917,300 | $ | 2,798,952 | ||||||
Add Back: | ||||||||||||
Income Tax Provision | 26,835,300 | 4,419,000 | 1,466,000 | |||||||||
Depreciation, Depletion, | ||||||||||||
Amortization and Accretion | 41,169,618 | 17,082,913 | 4,350,859 | |||||||||
Share Based Compensation | 6,164,324 | 3,566,133 | 1,233,507 | |||||||||
(Gain) Loss on Mark-to-Market Derivative Instruments | (3,072,229 | ) | 14,545,477 | 363,414 | ||||||||
Interest Expense | 585,982 | 583,376 | 535,094 | |||||||||
Adjusted EBITDA | $ | 112,294,487 | $ | 47,114,199 | $ | 10,747,826 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||
(In thousands) | (in thousands) | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 85,150 | $ | 73,307 | $ | 9,813 | $ | 198,527 | $ | 85,150 | $ | 73,307 | ||||||||||||
Net cash used in investing activities | (300,868 | ) | (207,894 | ) | (71,849 | ) | (532,172 | ) | (300,868 | ) | (207,894 | ) | ||||||||||||
Net cash provided by financing activities | 69,887 | 280,464 | 67,489 | 340,754 | 69,887 | 280,464 | ||||||||||||||||||
Net change in cash | $ | (145,831) | $ | 145,877 | $ | 5,453 | $ | 7,108 | $ | (145,831 | ) | $ | 145,877 |
· | default in any payment of interest on any Note when due, continued for 30 days; |
· | default in the payment of principal of or premium, if any, on any Note when due; |
· | failure by us to comply with our other obligations under the Indenture, in certain cases subject to notice and grace periods; |
· | payment defaults and accelerations with respect to our other indebtedness and certain of our subsidiaries, if any, in the aggregate principal amount of $25 million or more; |
· | certain events of bankruptcy, insolvency or reorganization of our company or a significant subsidiary or group of restricted subsidiaries that, taken together, would constitute a significant subsidiary; |
· | failure by us or any significant subsidiary or group of restricted subsidiaries that, taken together, would constitute a significant subsidiary to pay certain final judgments aggregating in excess of $25 million within 60 days; and |
· | any guarantee of the Notes by a guarantor ceases to be in full force and effect, is declared null and void in a judicial proceeding or is denied or disaffirmed by its maker. |
Payment due by Period | Payment due by Period | |||||||||||||||||||||||||||||||||||||||
Contractual Obligations | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | Total | ||||||||||||||||||||||||||||||
Office Lease(1) | $ | 230,000 | $ | 652,000 | $ | - | $ | - | $ | 882,000 | $ | 245,000 | $ | 419,000 | $ | - | $ | - | $ | 664,000 | ||||||||||||||||||||
Automobile Leases(2) | 63,000 | 48,000 | - | - | 111,000 | 20,000 | 9,000 | - | - | 29,000 | ||||||||||||||||||||||||||||||
Derivative Liability(3) | 9,363,000 | 2,575,000 | - | - | 11,938,000 | |||||||||||||||||||||||||||||||||||
Long Term Debt(4) | - | 69,900,000 | - | - | 69,900,000 | |||||||||||||||||||||||||||||||||||
Cash Interest Expense on Debt(5) | 1,922,000 | 2,723,000 | - | - | 4,645,000 | |||||||||||||||||||||||||||||||||||
Long Term Debt(3) | - | - | 124,000,000 | 300,000,000 | 424,000,000 | |||||||||||||||||||||||||||||||||||
Cash Interest Expense on Debt(4) | 26,753,000 | 53,506,000 | 50,753,000 | 58,000,000 | 189,012,000 | |||||||||||||||||||||||||||||||||||
Total | $ | 11,578,000 | $ | 75,898,000 | $ | - | $ | - | $ | 87,476,000 | $ | 27,018,000 | $ | 53,934,000 | $ | 174,753,000 | $ | 358,000,000 | $ | 613,705,000 |
(1) | Office lease through 2015 |
(2) | Automobile leases for certain executives through 2014 |
(3) |
Revolving Credit Facility and 8.000% Senior Notes due 2020 (see Note 5 to financial statements) |
Cash interest on Revolving Credit Facility |
Weighted Average Price Of Open Commodity Swap Contracts | ||||||||
Year | Volumes (Bbl) | Weighted Average Price | ||||||
2012 | 1,015,000 | $ | 90.87 |
Weighted Average Price Of Open Costless Collar Contracts | ||||||||
Year | Volumes (Bbl) | Weighted Average Price | ||||||
2012 | 413,092 | $ | 88.28-$100.67 | |||||
2013 | 910,309 | $ | 85.82-$ 98.90 |
Contract Type | Volume Hedged (Bbl) | West Texas Intermediate Strike Price ($/Bbl) | Term | |||||||
Collar | 149,515 | $ | 90.00/$103.50 | Jan 1 - Dec 31, 2013 | ||||||
Collar | 139,791 | $ | 90.00/$106.50 | Jan 1 - Dec 31, 2013 | ||||||
Collar | 224,900 | $ | 90.00/$110.00 | Jan 1 - Dec 31, 2013 | ||||||
Collar | 182,269 | $ | 95.00/$107.00 | Jan 1 - Dec 31, 2013 | ||||||
Collar | 480,000 | $ | 95.00/$110.70 | Jan 1 - Dec 31, 2013 | ||||||
Collar | 760,794 | $ | 85.00/$98.00 | Jan 1 - Dec 31, 2013 | ||||||
Collar | 120,000 | $ | 90.25/$97.95 | Jan 1 - Dec 31, 2013 | ||||||
Collar | 96,000 | $ | 95.00/$106.90 | Jul 1 – Dec 31, 2013 | ||||||
Swap | 240,000 | $ | 91.10 | Jan 1 - Dec 31, 2013 | ||||||
Swap | 300,000 | $ | 89.50 | Jan 1 - Dec 31, 2013 | ||||||
Swap | 240,000 | $ | 91.65 | Jan 1 - Dec 31, 2013 | ||||||
Swap | 120,000 | $ | 94.50 | Jan 1 - Dec 31, 2013 | ||||||
Swap | 60,000 | $ | 102.30 | July 1 - Dec 31, 2013 | ||||||
2013 Total/Average | 3,113,269 | $ | 90.58 | |||||||
Swap | 300,000 | $ | 89.50 | Jan 1 - June 30, 2014 | ||||||
Swap | 240,000 | $ | 90.00 | Jan 1 - June 30, 2014 | ||||||
Swap | 240,000 | $ | 91.00 | Jan 1 - Dec 31, 2014 | ||||||
Swap | 240,000 | $ | 91.65 | Jan 1 - Dec 31, 2014 | ||||||
Swap | 240,000 | $ | 90.15 | Jan 1 - Dec 31, 2014 | ||||||
Swap | 240,000 | $ | 100.00 | Jan 1 - June 30, 2014 | ||||||
Swap | 30,000 | $ | 90.58 | July 1 - Dec 31, 2014 | ||||||
Swap | 120,000 | $ | 91.35 | Jan 1 - Dec 31, 2014 | ||||||
Swap | 120,000 | $ | 90.00 | July 1 - Dec 31, 2014 | ||||||
Swap | 120,000 | $ | 90.00 | Jan 1 - Dec 31, 2014 | ||||||
Swap | 120,000 | $ | 90.00 | July 1 - Dec 31, 2014 | ||||||
Swap | 120,000 | $ | 93.50 | July 1 - Dec 31, 2014 | ||||||
Collar | 240,000 | $ | 90.00/$99.05 | Jan 1 - Dec 31, 2014 | ||||||
2014 Total/Average | 2,370,000 | $ | 91.49 |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans | ||||||||||||||||||
Equity compensation plans approved by security holders | ||||||||||||||||||||||||
2006 Incentive Stock Option Plan | 262,463 | $ | 5.18 | – | 251,963 | $ | 5.18 | – | ||||||||||||||||
2009 Amended and Restated Equity Incentive Plan | – | – | 1,139,118 | – | – | 877,289 | ||||||||||||||||||
Equity compensation plans not approved by security holders | – | – | – | – | – | – | ||||||||||||||||||
Total | 262,463 | $ | 5.18 | 1,139,118 | 251,963 | $ | 5.18 | 877,289 |
1. | Financial Statements |
See Index to Financial Statements on page F-1. |
2. | Financial Statement Schedules |
Supplemental Oil and Gas Information |
Exhibit No. | Description | ||||
Reference | |||||
3.1 | Articles of Incorporation of Northern Oil and Gas, Inc. dated June 28, 2010 | Incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on July 2, 2010 | |||
3.2 | By-Laws of Northern Oil and Gas, Inc. | Incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on July 2, 2010 | |||
4.1 | Specimen Stock Certificate of Northern Oil and Gas, Inc. | Filed herewith | |||
4.2 | Indenture, dated May 18, 2012, between Northern Oil and Gas, Inc. and Wilmington Trust, National Association, as trustee (including Form of 8.000% Senior Note due 2020) | Incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on March 18, 2012 | |||
10.1* | Amended and Restated Employment Agreement by and between Northern Oil and Gas, Inc. and Michael L. Reger, dated January 30, 2009 | Incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on February 2, 2009 (File No. 001-33999) | |||
10.2* | Amendment No. 1 to Amended and Restated Employment Agreement by and between Northern Oil and Gas, Inc. and Michael L. Reger, dated January 14, 2011 | Incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 10-K filed with the SEC on March 4, 2011 (File No. 001-33999) | |||
10.3* | Amended and Restated Employment Agreement by and between Northern Oil and Gas, Inc. and Ryan R. Gilbertson, dated January 30, 2009 | Incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed with the SEC on February 2, 2009 (File | |||
10.4* | Amendment No. 1 to Amended and Restated Employment Agreement by and between Northern Oil and Gas, Inc. and Ryan R. Gilbertson, dated March 25, 2010 | Incorporated by reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K filed with the SEC on March 25, 2010 (File No. 001-33999) |
Amendment No. 2 to Amended and Restated Employment Agreement by and between Northern Oil and Gas, Inc. and Ryan R. Gilbertson, dated January 14, 2011 | Incorporated by reference to Exhibit 10.6 to the Registrant’s Current Report on Form 10-K filed with the SEC on March 4, 2011 (File No. 001-33999) | ||||
10.6* | Separation Agreement and Release, dated October 1, 2012, between Northern Oil and Gas, Inc. | Incorporated by reference to | |||
10.7* | Consulting Agreement, dated October 1, 2012, between Northern Oil and Gas, Inc. and Ryan R. Gilbertson | Incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on October 1, 2012 | |||
10.8* | Employment Agreement by and between Northern Oil and Gas, Inc. and James R. Sankovitz, dated March 25, 2010 | Incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on March 25, 2010 | |||
10.9* | Employment Agreement by and between Northern Oil and Gas, Inc. and Thomas W. Stoelk, dated November 8, 2011 | Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on November 9, 2011 | |||
10.10* | Employment Agreement by and between Northern Oil and Gas, Inc. and Brandon Elliott, dated January 1, 2013 | Filed herewith | |||
10.11* | Employment Agreement by and between Northern Oil and Gas, Inc. and Erik J. Romslo, dated October 10, 2011 | Filed herewith | |||
10.12* | Form of Promissory Note issued to Michael L. Reger and Ryan R. Gilbertson | Incorporated by reference to Exhibit 10.18 to the Registrant’s Current Report on Form 10-K filed with the SEC on March 8, 2010 | |||
10.13* | Northern Oil and Gas, Inc. Amended and Restated 2009 Equity Incentive Plan | Incorporated by reference to Appendix A to the Registrant’s Definitive Proxy Statement for the 2011 Annual Meeting of Shareholders filed with the SEC on May 2, 2011 (File No. 001-33999) | |||
10.14* | Northern Oil and Gas, Inc. Amended and Restated 2009 Equity Incentive Plan Amendment No.1 | Filed herewith | |||
10.15* | Form of Restricted Stock Agreement under the Northern Oil and Gas, Inc. 2009 Equity Incentive Plan (for grants prior to June 8, 2011) | Incorporated by reference to Exhibit 10.19 to the Registrant’s Current Report on Form 10-K filed with the SEC on March 8, 2010 | |||
10.16* | Form of Restricted Stock Agreement under the Northern Oil and Gas, Inc. Amended and Restated 2009 Equity Incentive Plan (for “single trigger” grants after June 8, 2011) | Incorporated by reference to Exhibit 10.9 to the Registrant’s Current Report on Form 10-K filed with the SEC on February 29, 2012 | |||
10.17* | Form of Restricted Stock Agreement | Filed herewith | |||
10.18 | Third Amended and Restated Credit Agreement, dated | Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on March | |||
10.19 | First Amendment to Third Amended and Restated | Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on | |||
10.20 | Second Amendment to Third Amended and Restated Credit Agreement, dated September 28, 2012, by and | ||||
Incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on | |||||
12 | Calculation of | ||||
Filed herewith | |||||
23.1 | Consent of Independent Registered Public Accounting Firm Deloitte & Touche LLP | ||||
Filed herewith | |||||
23.2 | Consent of Independent Registered Public Accounting Firm Mantyla McReynolds LLC | ||||
Filed herewith | |||||
23.3 | Consent of Ryder Scott Company, LP | ||||
Filed herewith | |||||
31.1 | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||
Filed herewith | |||||
31.2 | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||
Filed herewith | |||||
32.1 | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||
Filed herewith | |||||
99.1 | Report of Ryder Scott Company, LP. | ||||
Filed | |||||
101.INS | XBRL Instance Document(1) | Filed Electronically | |||
101.SCH | XBRL Taxonomy Extension Schema | ||||
Filed Electronically | |||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | ||||
Filed Electronically | |||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | ||||
Filed Electronically | |||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | ||||
Filed Electronically | |||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | Filed Electronically |
* Management contract or compensatory plan or arrangement required to be filed as an exhibit to this report. |
(1) | The XBRL related information in Exhibit 101 to this Annual Report on Form 10-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document. |
Date: | By: | /s/ Michael L. Reger | ||
Michael L. Reger | ||||
Chief Executive Officer |
Signature | Title | Date | ||
/s/ Michael L. Reger | Chief Executive Officer, Chairman and Director | |||
Michael L. Reger | ||||
/s/ Thomas W. Stoelk | Chief Financial Officer, Principal Financial Officer, Principal Accounting Officer | |||
Thomas W. Stoelk | ||||
/s/ Loren J. O’Toole | Director | |||
Loren J. O’Toole | ||||
/s/ Richard Weber | Director | |||
Richard Weber | ||||
/s/ Jack King | Director | |||
Jack King | ||||
/s/ Robert Grabb | Director | |||
Robert Grabb | ||||
/s/ Lisa Bromiley | Director | |||
Lisa Bromiley | ||||
/s/ Delos Cy Jamison | Director | |||
Delos Cy Jamison |
Page | ||||
Report of Deloitte & Touche LLP, Independent Registered Public Accounting Firm | F-2 | |||
Report of Mantyla McReynolds LLC, Independent Registered Public Accounting Firm | F-3 | |||
Balance Sheets as of December 31, | F-4 | |||
Statements of Comprehensive Income for the Years Ended December 31, 2012, 2011 | F-5 | |||
Statements of Cash Flows for the Years Ended December 31, 2012, 2011 | F-6 | |||
Statements of Stockholders’ Equity for the Years Ended December 31, 2012, 2011 | F-7 | |||
Notes to the Financial Statements | F-8 | |||
December 31, | December 31, | |||||||||||||||
2011 | 2010 | 2012 | 2011 | |||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and Cash Equivalents | $ | 6,279,587 | $ | 152,110,701 | $ | 13,387,998 | $ | 6,279,587 | ||||||||
Trade Receivables | 51,418,830 | 22,033,647 | 70,219,669 | 51,418,830 | ||||||||||||
Advances to Operators | 17,530,474 | 13,225,650 | 3,109,591 | 17,530,474 | ||||||||||||
Prepaid Expenses | 486,421 | 345,695 | 592,001 | 486,421 | ||||||||||||
Other Current Assets | 317,460 | 475,967 | 1,115,088 | 317,460 | ||||||||||||
Short - Term Investments | - | 39,726,700 | ||||||||||||||
Derivative Instruments | 4,095,197 | - | ||||||||||||||
Deferred Tax Asset | 4,472,000 | 5,100,000 | 1,695,000 | 4,472,000 | ||||||||||||
Total Current Assets | 80,504,772 | 233,018,360 | 94,214,544 | 80,504,772 | ||||||||||||
PROPERTY AND EQUIPMENT | ||||||||||||||||
Oil and Natural Gas Properties, Full Cost Method of Accounting | ||||||||||||||||
Proved | 566,195,321 | 158,846,475 | 1,159,191,601 | 566,195,321 | ||||||||||||
Unproved | 137,784,903 | 136,135,163 | 82,926,384 | 137,784,903 | ||||||||||||
Other Property and Equipment | 2,988,641 | 2,479,199 | 3,158,224 | 2,988,641 | ||||||||||||
Total Property and Equipment | 706,968,865 | 297,460,837 | 1,245,276,209 | 706,968,865 | ||||||||||||
Less - Accumulated Depreciation and Depletion | 63,265,919 | 22,152,356 | 162,031,493 | 63,265,919 | ||||||||||||
Total Property and Equipment, Net | 643,702,946 | 275,308,481 | 1,083,244,716 | 643,702,946 | ||||||||||||
DERIVATIVE INSTRUMENTS | 1,763,008 | - | ||||||||||||||
DEBT ISSUANCE COSTS | 1,386,201 | 1,367,124 | 11,713,030 | 1,386,201 | ||||||||||||
TOTAL ASSETS | $ | 725,593,919 | $ | 509,693,965 | $ | 1,190,935,298 | $ | 725,593,919 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Accounts Payable | $ | 110,133,286 | $ | 48,500,204 | $ | 95,822,162 | $ | 110,133,286 | ||||||||
Accrued Expenses | 131,012 | 2,829 | 2,454,085 | 65,443 | ||||||||||||
Derivative Liability | 9,363,068 | 11,145,319 | ||||||||||||||
Other Liabilities | 33,229 | 18,574 | ||||||||||||||
Accrued Interest | 2,180,416 | 98,798 | ||||||||||||||
Derivative Instruments | - | 9,363,068 | ||||||||||||||
Total Current Liabilities | 119,660,595 | 59,666,926 | 100,456,663 | 119,660,595 | ||||||||||||
LONG-TERM LIABILITIES | ||||||||||||||||
Revolving Credit Facility | 69,900,000 | - | 124,000,000 | 69,900,000 | ||||||||||||
Derivative Liability | 2,574,903 | 5,022,657 | ||||||||||||||
8% Senior Notes Due 2020 | 300,000,000 | - | ||||||||||||||
Derivative Instruments | 2,547,745 | 2,574,903 | ||||||||||||||
Other Noncurrent Liabilities | 959,366 | 477,900 | 1,570,630 | 959,366 | ||||||||||||
Deferred Tax Liability | 35,929,000 | 9,167,000 | 76,175,000 | 35,929,000 | ||||||||||||
Total Long-Term Liabilities | 109,363,269 | 14,667,557 | 504,293,375 | 109,363,269 | ||||||||||||
Total Liabilities | 229,023,864 | 74,334,483 | ||||||||||||||
TOTAL LIABILITIES | 604,750,038 | 229,023,864 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES (NOTE 9) | ||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||
Preferred Stock, Par Value$.001; 5,000,000 Authorized, | ||||||||||||||||
No Shares Outstanding | - | - | ||||||||||||||
Common Stock, Par Value $.001; 95,000,000 Authorized, (12/31/2011 - 63,330,421 Shares Outstanding and 12/31/2010 – 62,129,424 Shares Outstanding) | 63,330 | 62,129 | ||||||||||||||
Additional Paid-In Capital | 448,198,350 | 428,484,092 | ||||||||||||||
Retained Earnings | 48,370,684 | 7,759,192 | ||||||||||||||
Accumulated Other Comprehensive Loss | (62,309 | ) | (945,931 | ) | ||||||||||||
Total Stockholders’ Equity | 496,570,055 | 435,359,482 | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 725,593,919 | $ | 509,693,965 | ||||||||||||
The accompanying notes are an integral part of these financial statements. |
STOCKHOLDERS' EQUITY | ||||||||
Preferred Stock, Par Value $.001; 5,000,000 Authorized, No Shares Outstanding | - | - | ||||||
Common Stock, Par Value $.001; 95,000,000 Authorized (12/31/2012 – 63,532,622 | ||||||||
Shares Outstanding and 12/31/2011 – 63,330,421 Shares Outstanding) | 63,532 | 63,330 | ||||||
Additional Paid-In Capital | 465,466,420 | 448,198,350 | ||||||
Retained Earnings | 120,655,308 | 48,370,684 | ||||||
Accumulated Other Comprehensive Loss | - | (62,309 | ) | |||||
Total Stockholders' Equity | 586,185,260 | 496,570,055 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,190,935,298 | $ | 725,593,919 | ||||
The accompanying notes are an integral part of these financial statements. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||
REVENUES | ||||||||||||||||||||||
Oil and Gas Sales | $ | 159,439,508 | $ | 59,488,284 | $ | 15,171,824 | $ | 296,637,857 | $ | 159,439,508 | $ | 59,488,284 | ||||||||||
Loss on Settled Derivatives | (13,407,878 | ) | (469,607 | ) | (624,541 | ) | (391,420 | ) | (13,407,878 | ) | (469,607 | ) | ||||||||||
Gain (Loss) on Mark-to-Market of Derivative Instruments | 3,072,229 | (14,545,477 | ) | (363,414 | ) | |||||||||||||||||
Unrealized Gain (Loss) on Derivative Instruments | 15,147,122 | 3,072,229 | (14,545,477 | ) | ||||||||||||||||||
Other Revenue | 285,234 | 85,900 | 37,630 | 179,331 | 285,234 | 85,900 | ||||||||||||||||
149,389,093 | 44,559,100 | 14,221,499 | ||||||||||||||||||||
Total Revenues | 311,572,890 | 149,389,093 | 44,559,100 | |||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||
Production Expenses | 13,043,633 | 3,288,482 | 754,976 | 32,382,310 | 13,043,633 | 3,288,482 | ||||||||||||||||
Production Taxes | 14,300,720 | 5,477,975 | 1,300,373 | 28,485,594 | 14,300,720 | 5,477,975 | ||||||||||||||||
General and Administrative Expense | 13,624,892 | 7,204,442 | 3,686,330 | |||||||||||||||||||
General and Administrative Expense | 22,645,315 | 13,624,892 | 7,204,442 | |||||||||||||||||||
Depletion of Oil and Gas Properties | 40,815,426 | 16,884,563 | 4,250,983 | 98,427,159 | 40,815,426 | 16,884,563 | ||||||||||||||||
Depreciation and Amortization | 298,137 | 176,595 | 91,794 | 409,888 | 298,137 | 176,595 | ||||||||||||||||
Accretion of Discount on Asset Retirement Obligations | 56,055 | 21,755 | 8,082 | 86,193 | 56,055 | 21,755 | ||||||||||||||||
Total Expenses | 82,138,863 | 33,053,812 | 10,092,538 | 182,436,459 | 82,138,863 | 33,053,812 | ||||||||||||||||
INCOME FROM OPERATIONS | 67,250,230 | 11,505,288 | 4,128,961 | 129,136,431 | 67,250,230 | 11,505,288 | ||||||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||||||||
Other Income | - | - | 479,100 | 23,611 | - | - | ||||||||||||||||
Interest Expense | (585,982 | ) | (583,376 | ) | (535,094 | ) | (13,874,909 | ) | (585,982 | ) | (583,376 | ) | ||||||||||
Interest Income | 567,452 | 472,912 | 191,985 | 1,263 | 567,452 | 472,912 | ||||||||||||||||
Gain (Loss) on Available for Sale Securities | 215,092 | (58,524 | ) | - | - | 215,092 | (58,524 | ) | ||||||||||||||
Total Other Income (Expense) | 196,562 | (168,988 | ) | 135,991 | (13,850,035 | ) | 196,562 | (168,988 | ) | |||||||||||||
INCOME BEFORE INCOME TAXES | 67,446,792 | 11,336,300 | 4,264,952 | 115,286,396 | 67,446,792 | 11,336,300 | ||||||||||||||||
INCOME TAX PROVISION | 26,835,300 | 4,419,000 | 1,466,000 | 43,001,772 | 26,835,300 | 4,419,000 | ||||||||||||||||
NET INCOME | $ | 40,611,492 | $ | 6,917,300 | $ | 2,798,952 | $ | 72,284,624 | $ | 40,611,492 | $ | 6,917,300 | ||||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX | ||||||||||||||||||||||
Unrealized Gains on Marketable Securities (Net of Tax of $109,000 and $349,000 for the years ended December 31, 2011 and 2010, respectively) | - | 173,846 | 553,135 | |||||||||||||||||||
Reclassification of Derivative Instruments Included in Income (Net of Tax of $39,000, $448,000 and $446,000 for the years ended December 31, 2012, 2011and 2010, respectively) | 62,309 | 709,776 | 711,554 | |||||||||||||||||||
Total Other Comprehensive Income | 62,309 | 883,622 | 1,264,689 | |||||||||||||||||||
COMPREHENSIVE INCOME | $ | 72,346,933 | $ | 41,495,114 | $ | 8,181,989 | ||||||||||||||||
Net Income Per Common Share - Basic | $ | 0.66 | $ | 0.14 | $ | 0.08 | $ | 1.16 | $ | 0.66 | $ | 0.14 | ||||||||||
Net Income Per Common Share - Diluted | $ | 0.65 | $ | 0.14 | $ | 0.08 | $ | 1.15 | $ | 0.65 | $ | 0.14 | ||||||||||
Weighted Average Shares Outstanding – Basic | 61,789,289 | 50,387,203 | 36,705,267 | 62,485,836 | 61,789,289 | 50,387,203 | ||||||||||||||||
Weighted Average Shares Outstanding - Diluted | 62,195,340 | 50,778,245 | 36,877,070 | 62,869,079 | 62,195,340 | 50,778,245 | ||||||||||||||||
The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net Income | $ | 72,284,624 | $ | 40,611,492 | $ | 6,917,300 | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ||||||||||||
Depletion of Oil and Gas Properties | 98,427,159 | 40,815,426 | 16,884,563 | |||||||||
Depreciation and Amortization | 409,888 | 298,137 | 176,595 | |||||||||
Amortization of Debt Issuance Costs | 1,527,194 | 430,760 | 455,302 | |||||||||
Accretion of Discount on Asset Retirement Obligations | 86,193 | 56,055 | 21,755 | |||||||||
Deferred Income Taxes | 42,984,000 | 26,833,000 | 4,419,000 | |||||||||
Net (Gain) Loss on Sale of Available for Sale Securities | - | (215,092 | ) | 58,524 | ||||||||
Unrealized (Gain) Loss on Derivative Instruments | (15,147,122 | ) | (3,072,229 | ) | 14,545,477 | |||||||
Gain on Sale of Other Property and Equipment | (23,611 | ) | - | - | ||||||||
Amortization of Deferred Rent | (33,230 | ) | (19,795 | ) | (18,573 | ) | ||||||
Share - Based Compensation Expense | 12,381,757 | 6,164,324 | 3,566,133 | |||||||||
Changes in Working Capital and Other Items: | ||||||||||||
Increase in Trade Receivables | (18,800,839 | ) | (29,385,183 | ) | (15,008,636 | ) | ||||||
Increase in Prepaid Expenses | (105,580 | ) | (140,726 | ) | (202,089 | ) | ||||||
Decrease (Increase) in Other Current Assets | 110,372 | 158,507 | (274,653 | ) | ||||||||
(Decrease) Increase in Accounts Payable | (63,025 | ) | 2,486,667 | 42,080,670 | ||||||||
Increase (Decrease) in Accrued Interest | 2,081,618 | 98,798 | (50,630 | ) | ||||||||
Increase (Decrease) in Accrued Expenses | 2,407,216 | 29,385 | (263,518 | ) | ||||||||
Net Cash Provided by Operating Activities | 198,526,614 | 85,149,526 | 73,307,220 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Purchases of Oil and Gas Properties and Development Capital Expenditures | (531,954,977 | ) | (341,363,955 | ) | (180,400,555 | ) | ||||||
Advances to Operators | - | (4,304,824 | ) | (11,771,616 | ) | |||||||
Proceeds from Sale of Oil and Gas Properties | - | 5,027,162 | 297,877 | |||||||||
Proceeds from Sale of Available for Sale Securities | - | 58,606,328 | 34,699,651 | |||||||||
Proceeds from Sale of Other Property and Equipment | 39,000 | - | - | |||||||||
Purchase of Available for Sale Securities | - | (18,381,690 | ) | (48,679,264 | ) | |||||||
Purchases of Other Property and Equipment | (256,445 | ) | (450,822 | ) | (2,039,543 | ) | ||||||
Net Cash Used for Investing Activities | (532,172,422 | ) | (300,867,801 | ) | (207,893,450 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Advances on Revolving Credit Facility | 475,600,000 | 79,900,000 | 5,300,000 | |||||||||
Repayments on Revolving Credit Facility | (421,500,000 | ) | (10,000,000 | ) | (5,300,000 | ) | ||||||
Issuances of 8% Senior Notes Due 2020 | 300,000,000 | - | - | |||||||||
Payments on Line of Credit | - | - | (834,492 | ) | ||||||||
Decrease in Subordinated Notes, net | - | - | (500,000 | ) | ||||||||
Debt Issuance Costs Paid | (11,854,023 | ) | (449,837 | ) | (395,355 | ) | ||||||
Repurchase of Common Stock | (1,546,148 | ) | (1,081,132 | ) | - | |||||||
Proceeds from Exercise of Warrants | - | 1,500,000 | - | |||||||||
Proceeds from the Issuance of Common Stock - Net of Issuance Costs | - | - | 282,193,406 | |||||||||
Proceeds from Exercise of Stock Options | 54,390 | 18,130 | - | |||||||||
Net Cash Provided by Financing Activities | 340,754,219 | 69,887,161 | 280,463,559 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 7,108,411 | (145,831,114 | ) | 145,877,329 | ||||||||
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD | 6,279,587 | 152,110,701 | 6,233,372 | |||||||||
CASH AND CASH EQUIVALENTS – END OF PERIOD | $ | 13,387,998 | $ | 6,279,587 | $ | 152,110,701 | ||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||
Cash Paid During the Period for Interest | $ | 15,579,140 | $ | 286,710 | $ | 169,232 | ||||||
Cash Paid During the Period for Income Taxes | $ | 8,772 | $ | - | $ | - | ||||||
Non-Cash Financing and Investing Activities: | ||||||||||||
Purchase of Oil and Gas Properties through Issuance of Common Stock | $ | - | $ | - | $ | 12,679,422 | ||||||
Payment of Compensation through Issuance of Common Stock | $ | 18,760,030 | $ | 19,278,461 | $ | 8,733,215 | ||||||
Capitalized Asset Retirement Obligations | $ | 539,727 | $ | 401,241 | $ | 232,258 | ||||||
Non-Cash Compensation Capitalized in Oil and Gas Properties | $ | 6,378,273 | $ | 13,114,137 | $ | 5,167,082 | ||||||
The accompanying notes are an integral part of these financial statements. |
Year Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net Income | $ | 40,611,492 | $ | 6,917,300 | $ | 2,798,952 | ||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ||||||||||||
Depletion of Oil and Gas Properties | 40,815,426 | 16,884,563 | 4,250,983 | |||||||||
Depreciation and Amortization | 298,137 | 176,595 | 91,794 | |||||||||
Amortization of Debt Issuance Costs | 430,760 | 455,302 | 459,343 | |||||||||
Accretion of Discount on Asset Retirement Obligations | 56,055 | 21,755 | 8,082 | |||||||||
Deferred Income Taxes | 26,833,000 | 4,419,000 | 1,466,000 | |||||||||
Net (Gain) Loss on Sale of Available for Sale Securities | (215,092 | ) | 58,524 | - | ||||||||
Unrealized (Gain) Loss on Derivative Instruments | (3,072,229 | ) | 14,545,477 | 363,414 | ||||||||
Amortization of Deferred Rent | (19,795 | ) | (18,573 | ) | (18,573 | ) | ||||||
Share - Based Compensation Expense | 6,164,324 | 3,566,133 | 1,213,292 | |||||||||
Changes in Working Capital and Other Items: | ||||||||||||
Increase in Trade Receivables | (29,385,183 | ) | (15,008,636 | ) | (4,996,070 | ) | ||||||
Decrease in Other Receivables | - | - | 874,453 | |||||||||
Increase in Prepaid Expenses | (140,726 | ) | (202,089 | ) | (72,052 | ) | ||||||
Decrease (Increase) in Other Current Assets | 158,507 | (274,653 | ) | (158,334 | ) | |||||||
Increase in Accounts Payable | 2,486,667 | 42,080,670 | 4,484,724 | |||||||||
Increase (Decrease) in Accrued Expenses | 128,183 | (314,148 | ) | (953,098 | ) | |||||||
Net Cash Provided by Operating Activities | 85,149,526 | 73,307,220 | 9,812,910 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Purchases of Oil and Gas Properties and Development Capital Expenditures | (341,363,955 | ) | (180,400,555 | ) | (47,061,666 | ) | ||||||
Advances to Operators | (4,304,824 | ) | (11,771,616 | ) | (1,449,485 | ) | ||||||
Proceeds from Sale of Oil and Gas Properties | 5,027,162 | 297,877 | - | |||||||||
Proceeds from Sale of Available for Sale Securities | 58,606,328 | 34,699,651 | 800,000 | |||||||||
Purchase of Available for Sale Securities | (18,381,690 | ) | (48,679,264 | ) | (24,106,294 | ) | ||||||
Purchase of Other Equipment and Furniture | (450,822 | ) | (2,039,543 | ) | (31,256 | ) | ||||||
Net Cash Used for Investing Activities | (300,867,801 | ) | (207,893,450 | ) | (71,848,701 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Advances on Revolving Credit Facility | 79,900,000 | 5,300,000 | 29,750,000 | |||||||||
Repayments on Revolving Credit Facility | (10,000,000 | ) | (5,300,000 | ) | (29,750,000 | ) | ||||||
Payments on Line of Credit | - | (834,492 | ) | (816,228 | ) | |||||||
(Decrease) Increase in Subordinated Notes, net | - | (500,000 | ) | 500,000 | ||||||||
Debt Issuance Costs Paid | (449,837 | ) | (395,355 | ) | (1,190,061 | ) | ||||||
Repurchase of Common Stock | (1,081,132 | ) | - | - | ||||||||
Proceeds from Exercise of Warrants | 1,500,000 | - | - | |||||||||
Proceeds from the Issuance of Common Stock - Net of Issuance Costs | - | 282,193,406 | 68,994,736 | |||||||||
Proceeds from Exercise of Stock Options | 18,130 | - | - | |||||||||
Net Cash Provided by Financing Activities | 69,887,161 | 280,463,559 | 67,488,447 | |||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (145,831,114 | ) | 145,877,329 | 5,452,656 | ||||||||
CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD | 152,110,701 | 6,233,372 | 780,716 | |||||||||
CASH AND CASH EQUIVALENTS – END OF PERIOD | $ | 6,279,587 | $ | 152,110,701 | $ | 6,233,372 | ||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||
Cash Paid During the Period for Interest | $ | 286,710 | $ | 169,232 | $ | 624,717 | ||||||
Cash Paid During the Period for Income Taxes | $ | 2,300 | $ | - | $ | - | ||||||
Non-Cash Financing and Investing Activities: | ||||||||||||
Purchase of Oil and Gas Properties through Issuance of Common Stock | $ | - | $ | 12,679,422 | $ | 1,115,738 | ||||||
Payment of Compensation through Issuance of Common Stock | $ | 19,278,461 | $ | 8,733,215 | $ | 1,213,292 | ||||||
Capitalized Asset Retirement Obligations | $ | 401,241 | $ | 232,258 | $ | 137,222 | ||||||
Cashless Exercise of Stock Options | $ | - | $ | - | $ | 518,000 | ||||||
Fair Value of Warrants Issued for Debt Issuance Costs | $ | - | $ | - | $ | 221,153 | ||||||
Non-Cash Compensation Capitalized in Oil and Gas Properties | $ | 13,114,137 | $ | 5,167,082 | $ | 1,226,162 | ||||||
Payment of Debt Issuance Costs through Issuance of Common Stock | $ | - | $ | - | $ | 475,200 | ||||||
The accompanying notes are an integral part of these financial statements. |
Common Stock | Additional Paid-In | Accumulated Other Comprehensive Income | Retained Earnings (Accumulated | Total Stockholders’ | Common Stock | Additional Paid-In | Accumulated Other Comprehensive Income | Retained | Total Stockholders’ | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | (Loss) | Deficit) | Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance – December 31, 2008 | 34,120,103 | $ | 34,121 | $ | 51,692,776 | $ | (240,774 | ) | $ | (1,957,060 | ) | $ | 49,529,063 | |||||||||||||||||||||||||||||||||||
Issuance of Common Stock | 9,790,941 | 9,791 | 76,433,911 | - | - | 76,443,702 | ||||||||||||||||||||||||||||||||||||||||||
Warrants Issued Included in Debt Issuance Costs | - | - | 221,153 | - | - | 221,153 | ||||||||||||||||||||||||||||||||||||||||||
Share Based Compensation | - | - | 366,690 | - | - | 366,690 | ||||||||||||||||||||||||||||||||||||||||||
Net Change in Cash Flow Hedge Derivatives | - | - | - | (1,483,639 | ) | - | (1,483,639 | ) | ||||||||||||||||||||||||||||||||||||||||
Unrealized Gain on Short-Term Investments | - | - | - | (486,207 | ) | - | (486,207 | ) | ||||||||||||||||||||||||||||||||||||||||
Costs of Capital Raise | - | - | (3,785,264 | ) | - | - | (3,785,264 | ) | ||||||||||||||||||||||||||||||||||||||||
Income Tax Provision for Share Based Compensation | - | - | (45,000 | ) | - | - | (45,000 | ) | ||||||||||||||||||||||||||||||||||||||||
Net Income | - | - | - | - | 2,798,952 | 2,798,952 | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | (Loss) | Earnings | Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2009 | 43,911,044 | $ | 43,912 | $ | 124,884,266 | $ | (2,210,620 | ) | $ | 841,892 | $ | 123,559,450 | 43,911,044 | $ | 43,912 | $ | 124,884,266 | $ | (2,210,620 | ) | $ | 841,892 | $ | 123,559,450 | ||||||||||||||||||||||||
Issuance of Common Stock | 18,218,380 | 18,217 | 299,841,519 | - | - | 299,859,736 | 18,218,380 | 18,217 | 299,841,519 | - | - | 299,859,736 | ||||||||||||||||||||||||||||||||||||
Share Based Compensation | - | - | 4,439,101 | - | - | 4,439,101 | - | - | 4,439,101 | - | - | 4,439,101 | ||||||||||||||||||||||||||||||||||||
Net Change in Cash Flow Hedge Derivatives | - | - | - | 711,554 | - | 711,554 | - | - | - | 711,554 | - | 711,554 | ||||||||||||||||||||||||||||||||||||
Net Change in Unrealized Gain(Loss) on Short-term Investments | - | - | - | 553,135 | - | 553,135 | - | - | - | 553,135 | - | 553,135 | ||||||||||||||||||||||||||||||||||||
Cost of Capital Raises | - | - | (692,794 | ) | - | - | (692,794 | ) | - | - | (692,794 | ) | - | - | (692,794 | ) | ||||||||||||||||||||||||||||||||
Income Tax Provision for Share Based Compensation | - | - | 12,000 | - | - | 12,000 | - | - | 12,000 | - | - | 12,000 | ||||||||||||||||||||||||||||||||||||
Net Income | - | - | - | - | 6,917,300 | 6,917,300 | - | - | - | - | 6,917,300 | 6,917,300 | ||||||||||||||||||||||||||||||||||||
Balance - December 31, 2010 | 62,129,424 | $ | 62,129 | $ | 428,484,092 | $ | (945,931 | ) | $ | 7,759,192 | $ | 435,359,482 | 62,129,424 | $ | 62,129 | $ | 428,484,092 | $ | (945,931 | ) | $ | 7,759,192 | $ | 435,359,482 | ||||||||||||||||||||||||
Net Issuance of Common Stock | 1,200,997 | 1,201 | 4,770,710 | - | - | 4,771,911 | 1,200,997 | 1,201 | 4,770,710 | - | - | 4,771,911 | ||||||||||||||||||||||||||||||||||||
Share Based Compensation | - | - | 14,943,548 | - | - | 14,943,548 | - | - | 14,943,548 | - | - | 14,943,548 | ||||||||||||||||||||||||||||||||||||
Net Change in Cash Flow Hedge Derivatives | - | - | - | 709,776 | - | 709,776 | - | - | - | 709,776 | - | 709,776 | ||||||||||||||||||||||||||||||||||||
Net Change in Unrealized Gain(Loss) on Short-term Investments | - | - | - | 173,846 | - | 173,846 | - | - | - | 173,846 | - | 173,846 | ||||||||||||||||||||||||||||||||||||
Net Income | - | - | - | - | 40,611,492 | 40,611,492 | - | - | - | - | 40,611,492 | 40,611,492 | ||||||||||||||||||||||||||||||||||||
Balance - December 31, 2011 | 63,330,421 | $ | 63,330 | $ | 448,198,350 | $ | (62,309 | ) | $ | 48,370,684 | $ | 496,570,055 | 63,330,421 | $ | 63,330 | $ | 448,198,350 | $ | (62,309 | ) | $ | 48,370,684 | $ | 496,570,055 | ||||||||||||||||||||||||
Net Issuance of Common Stock | 202,201 | 202 | (1,491,960 | ) | - | - | (1,491,758 | ) | ||||||||||||||||||||||||||||||||||||||||
Share Based Compensation | - | - | 18,760,030 | - | - | 18,760,030 | ||||||||||||||||||||||||||||||||||||||||||
Net Change in Cash Flow Hedge Derivatives | - | - | - | 62,309 | - | 62,309 | ||||||||||||||||||||||||||||||||||||||||||
Net Income | - | - | - | - | 72,284,624 | 72,284,624 | ||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2012 | 63,532,622 | $ | 63,532 | $ | 465,466,420 | $ | - | $ | 120,655,308 | $ | 586,185,260 | |||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||
Capitalized Certain Payroll and Other Internal Costs | $ | 16,952,995 | $ | 6,559,741 | $ | 2,616,262 | $ | 8,477,678 | $ | 16,952,995 | $ | 6,559,741 | ||||||||||||
Capitalized Interest Costs | 405,984 | 59,711 | 624,717 | 5,929,473 | 405,984 | 59,711 | ||||||||||||||||||
Total | $ | 17,358,979 | $ | 6,619,452 | $ | 3,240,979 | $ | 14,407,151 | $ | 17,358,979 | $ | 6,619,452 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||
Weighted average common shares outstanding – basic | 61,789,289 | 50,387,203 | 36,705,267 | 62,485,836 | 61,789,289 | 50,387,203 | ||||||||||||||||||
Plus: Potentially dilutive common shares | ||||||||||||||||||||||||
Stock options, warrants, and restricted stock | 406,051 | 391,042 | 171,803 | 383,243 | 406,051 | 391,042 | ||||||||||||||||||
Weighted average common shares outstanding – diluted | 62,195,340 | 50,778,245 | 36,877,070 | 62,869,079 | 62,195,340 | 50,778,245 | ||||||||||||||||||
Restricted stock excluded from EPS due to the anti-dilutive effect | 29,876 | - | 37,065 | 18,348 | 29,876 | - |
Fair Market | ||||||||||||
Cost at | Value at | |||||||||||
December 31, | Unrealized | December 31, | ||||||||||
2010 | (Loss) | 2010 | ||||||||||
United States Treasuries | $ | 40,009,546 | $ | (282,846 | ) | $ | 39,726,700 | |||||
Date | Net Acres Acquired | Common Stock Issued | Fair Value of Common Stock Issued | Cash Consideration | Total Consideration | |||||||||||||||
June 2010 | 3,498 | 382,645 | $ | 5,360,856 | $ | 741,464 | $ | 6,102,320 | ||||||||||||
July 2010 | 3,352 | 444,186 | $ | 6,529,534 | - | $ | 6,529,534 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | Prior Years | 2012 | 2011 | 2010 | Prior Years | |||||||||||||||||||||||||
Property Acquisition | $ | 46,814,712 | $ | 50,613,193 | $ | 14,773,003 | $ | 25,565,530 | 18,629,120 | $ | 33,133,410 | $ | 16,868,094 | $ | 14,103,615 | |||||||||||||||||
Development | 18,465 | - | - | - | 193,017 | - | - | - | ||||||||||||||||||||||||
Total | $ | 46,833,177 | $ | 50,613,193 | $ | 14,773,003 | $ | 25,565,530 | 18,822,137 | $ | 33,133,410 | $ | 16,868,094 | $ | 14,103,615 |
· | default in any payment of interest on any Note when due, continued for 30 days; |
· | default in the payment of principal of or premium, if any, on any Note when due; |
· | failure by the Company to comply with its other obligations under the Indenture, in certain cases subject to notice and grace periods; |
· | payment defaults and accelerations with respect to other indebtedness of the Company and certain of its subsidiaries, if any, in the aggregate principal amount of $25 million or more; |
· | certain events of bankruptcy, insolvency or reorganization of the Company or a significant subsidiary or group of restricted subsidiaries that, taken together, would constitute a significant subsidiary; |
· | failure by the Company or any significant subsidiary or group of restricted subsidiaries that, taken together, would constitute a significant subsidiary to pay certain final judgments aggregating in excess of $25 million within 60 days; and |
· | any guarantee of the Notes by a guarantor ceases to be in full force and effect, is declared null and void in a judicial proceeding or is denied or disaffirmed by its maker. |
Year Ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Beginning balance | 62,129,424 | 43,911,044 | 34,120,103 | |||||||||
Public offerings | - | 16,042,500 | 8,750,000 | |||||||||
Stock based compensation | 161,628 | 213,075 | 283,670 | |||||||||
Stock options exercised | 3,500 | 22,314 | 100,000 | |||||||||
Restricted stock grants (Note 8) | 786,263 | 1,058,000 | 361,330 | |||||||||
Stock issued in exchange for debt issuance costs | - | - | 180,000 | |||||||||
Warrants exercised | 300,000 | - | - | |||||||||
Issued for acreage purchases/acquisitions | - | 882,491 | 128,097 | |||||||||
Share Adjustment related to Kentex Transaction | - | - | 41,989 | |||||||||
Other Surrenders | (50,394 | ) | - | (54,145 | ) | |||||||
Ending balance | 63,330,421 | 62,129,424 | 43,911,044 |
Year Ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Beginning Balance | 63,330,421 | 62,129,424 | 43,911,044 | |||||||||
Public Offerings | - | - | 16,042,500 | |||||||||
Stock Based Compensation | 53,140 | 161,628 | 213,075 | |||||||||
Stock Options Exercised | 10,500 | 3,500 | 22,314 | |||||||||
Restricted Stock Grants (Note 8) | 837,239 | 786,263 | 1,058,000 | |||||||||
Warrants Exercised | - | 300,000 | - | |||||||||
Issued for Acreage Purchases/Acquisitions | - | - | 882,491 | |||||||||
Other Surrenders | (698,678 | ) | (50,394 | ) | - | |||||||
Ending Balance | 63,532,622 | 63,330,421 | 62,129,424 |
Date | Common Stock Issued | Fair Value of Common Stock Issued | ||||||
March 2010 | 10,287 | $ | 99,475 | |||||
June 2010 | 382,645 | 5,360,856 | ||||||
June 2010 | 14,167 | 238,006 | ||||||
July 2010 | 444,186 | 6,529,534 | ||||||
July 2010 | 31,206 | 451,551 |
Date | Common Stock Issued | Fair Value of Common Stock Issued | ||||||
April 2009 | 49,092 | $ | 224,879 | |||||
December 2009 | 79,005 | 890,859 |
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||||||
December 31, 2011 | December 31, 2010 | December 31, 2009 | December 31, 2012 | December 31, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||
Number | Weighted- | Number | Weighted- | Number | Weighted- | Number | Weighted- | Number | Weighted- | Number | Weighted- | |||||||||||||||||||||||||||||||||||||
of | Average | Of | Average | Of | Average | of | Average | Of | Average | Of | Average | |||||||||||||||||||||||||||||||||||||
Shares | Price | Shares | Price | Shares | Price | Shares | Price | Shares | Price | Shares | Price | |||||||||||||||||||||||||||||||||||||
Restricted Stock Awards: | ||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Shares Outstanding at the Beginning of the Year | 1,135,622 | $ | 13.28 | 325,330 | $ | 9.01 | 20,000 | $ | 7.03 | 1,216,992 | $ | 19.87 | 1,135,622 | $ | 13.28 | 325,330 | $ | 9.01 | ||||||||||||||||||||||||||||||
Shares Granted | 786,263 | $ | 27.11 | 1,058,000 | $ | 14.08 | 361,330 | $ | 8.49 | 837,239 | 19.91 | 786,263 | 27.11 | 1,058,000 | 14.08 | |||||||||||||||||||||||||||||||||
Shares Forfeited | (628,550 | ) | 19.08 | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Lapse of Restrictions | (704,893 | ) | $ | 17.32 | (247,708 | ) | $ | 11.11 | (56,000 | ) | $ | 4.91 | (648,244 | ) | 21.83 | (704,893 | ) | 17.32 | (247,708 | ) | 11.11 | |||||||||||||||||||||||||||
Restricted Shares Outstanding at the End of the Year | 1,216,992 | $ | 19.87 | 1,135,622 | $ | 13.28 | 325,330 | $ | 9.01 | 777,437 | $ | 18.93 | 1,216,992 | $ | 19.87 | 1,135,622 | $ | 13.28 |
Number of Shares | Weighted Average Exercise Price | Remaining Contractual Term (in Years) | Intrinsic Value | Number of Shares | Weighted Average Exercise Price | Remaining Contractual Term (in Years) | Intrinsic Value | |||||||||||||||||||||||||
2009: | ||||||||||||||||||||||||||||||||
2012: | ||||||||||||||||||||||||||||||||
Beginning Balance | 400,000 | $ | - | - | - | 262,463 | $ | - | - | - | ||||||||||||||||||||||
Granted | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Exercised | 100,000 | 5.18 | - | - | 10,500 | 5.18 | - | - | ||||||||||||||||||||||||
Forfeited | - | - | - | - | ||||||||||||||||||||||||||||
Outstanding at December 31 | 251,963 | 5.18 | 4.8 | 2,933,000 | ||||||||||||||||||||||||||||
Exercisable | 251,963 | 5.18 | 4.8 | 2,933,000 | ||||||||||||||||||||||||||||
Ending Vested | 251,963 | 5.18 | 4.8 | 2,933,000 | ||||||||||||||||||||||||||||
Weighted Average Fair Value of Options Granted During Year | $ | - | ||||||||||||||||||||||||||||||
2011: | ||||||||||||||||||||||||||||||||
Beginning Balance | 265,963 | $ | - | - | - | |||||||||||||||||||||||||||
Granted | - | - | - | - | ||||||||||||||||||||||||||||
Exercised | 3,500 | 5.18 | - | - | ||||||||||||||||||||||||||||
Forfeited | - | - | - | - | ||||||||||||||||||||||||||||
Outstanding at December 31 | 300,000 | 5.18 | 7.8 | 1,998,000 | 262,463 | 5.18 | 5.8 | 4,934,000 | ||||||||||||||||||||||||
Exercisable | 300,000 | 5.18 | 7.8 | 1,998,000 | 262,463 | 5.18 | 5.8 | 4,934,000 | ||||||||||||||||||||||||
Ending Vested | 300,000 | 5.18 | 7.8 | 1,998,000 | 262,463 | 5.18 | 5.8 | 4,934,000 | ||||||||||||||||||||||||
Weighted Average Fair Value of Options Granted During Year | $ | - | $ | - | ||||||||||||||||||||||||||||
2010: | ||||||||||||||||||||||||||||||||
Beginning Balance | 300,000 | $ | - | - | - | 300,000 | $ | - | - | - | ||||||||||||||||||||||
Granted | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Exercised | 22,314 | 5.18 | - | - | 22,314 | 5.18 | - | - | ||||||||||||||||||||||||
Forfeited | 11,723 | 5.18 | - | - | 11,723 | 5.18 | - | - | ||||||||||||||||||||||||
Outstanding at December 31 | 265,963 | 5.18 | 6.8 | 5,859,000 | 265,963 | 5.18 | 6.8 | 5,859,000 | ||||||||||||||||||||||||
Exercisable | 265,963 | 5.18 | 6.8 | 5,859,000 | 265,963 | 5.18 | 6.8 | 5,859,000 | ||||||||||||||||||||||||
Weighted Average Fair Value of Options Granted During Year | $ | - | ||||||||||||||||||||||||||||||
2011: | ||||||||||||||||||||||||||||||||
Beginning Balance | 265,963 | $ | - | - | �� | - | ||||||||||||||||||||||||||
Granted | - | - | - | - | ||||||||||||||||||||||||||||
Exercised | 3,500 | 5.18 | - | - | ||||||||||||||||||||||||||||
Forfeited | - | - | - | - | ||||||||||||||||||||||||||||
Outstanding at December 31 | 262,463 | 5.18 | 5.8 | 4,934,000 | ||||||||||||||||||||||||||||
Exercisable | 262,463 | 5.18 | 5.8 | 4,934,000 | ||||||||||||||||||||||||||||
Ending Vested | 262,463 | 5.18 | 5.8 | 4,934,000 | 265,963 | 5.18 | 6.8 | 5,859,000 | ||||||||||||||||||||||||
Weighted Average Fair Value of Options Granted During Year | $ | - | $ | - |
No |
The Company recorded no compensation expense related to these options for the years ended December 31, 2012, 2011, |
There were no unvested options at December 31, 2012, 2011, |
Weighted average fair value per share | $ | 0.74 | ||
Total warrants granted | 300,000 | |||
Total weighted average fair value of warrants granted | $ | 221,153 |
Year Ended December 31 | Year Ended December 31 | |||||||||||||||
2011 | 2010 | 2012 | 2011 | |||||||||||||
Beginning Asset Retirement Obligation | $ | 459,326 | $ | 206,741 | $ | 916,622 | $ | 459,326 | ||||||||
Liabilities Incurred for New Wells Placed in Production | 401,241 | 232,258 | 539,727 | 401,241 | ||||||||||||
Liabilities Settled | - | (1,428 | ) | |||||||||||||
Accretion of Discount on Asset Retirement Obligations | 56,055 | 21,755 | 86,193 | 56,055 | ||||||||||||
Ending Asset Retirement Obligation | $ | 916,622 | $ | 459,326 | $ | 1,542,542 | $ | 916,622 |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||
Current Income Taxes | $ | 2,300 | $ | - | $ | - | $ | 17,772 | $ | 2,300 | $ | - | ||||||||||||
Deferred Income Taxes | ||||||||||||||||||||||||
Federal | 22,982,000 | 3,625,000 | 1,215,000 | 39,850,000 | 22,982,000 | 3,625,000 | ||||||||||||||||||
State | 3,851,000 | 794,000 | 251,000 | 3,134,000 | 3,851,000 | 794,000 | ||||||||||||||||||
Total Expense | $ | 26,835,300 | $ | 4,419,000 | $ | 1,466,000 | $ | 43,001,772 | $ | 26,835,300 | $ | 4,419,000 |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||
Income Before Taxes and NOL | $ | 67,446,792 | $ | 11,336,300 | $ | 4,264,952 | $ | 115,286,396 | $ | 67,446,792 | $ | 11,336,300 | ||||||||||||
Federal Statutory Rate | X 35 | % | X 34 | % | X 34 | % | X 35 | % | X 35 | % | X 34 | % | ||||||||||||
Taxes Computed at Federal Statutory Rates | 23,606,000 | 3,854,000 | 1,450,000 | 40,350,000 | 23,606,000 | 3,854,000 | ||||||||||||||||||
State Taxes, Net of Federal Taxes | 2,408,300 | 524,000 | 295,000 | 2,086,772 | 2,408,300 | 524,000 | ||||||||||||||||||
Executive Compensation Deductibility Limits | 617,000 | - | - | 523,000 | 617,000 | - | ||||||||||||||||||
Other | 204,000 | 41,000 | (279,000 | ) | 42,000 | 204,000 | 41,000 | |||||||||||||||||
Reported Provision | $ | 26,835,300 | $ | 4,419,000 | $ | 1,466,000 | $ | 43,001,772 | $ | 26,835,300 | $ | 4,419,000 |
Year Ended December 31 | ||||||||
2012 | 2011 | |||||||
Deferred Tax Assets | ||||||||
Current: | ||||||||
Share Based Compensation | $ | 2,384,000 | $ | 866,000 | ||||
Accrued Interest | 751,000 | - | ||||||
Derivative Liability | - | 3,629,000 | ||||||
Other | 201,000 | 34,000 | ||||||
Total Current | 3,336,000 | 4,529,000 | ||||||
Non-Current: | ||||||||
Net Operating Loss Carryforwards (NOLs) | 194,473,000 | 84,714,000 | ||||||
Derivative Liability | 295,000 | 998,000 | ||||||
Other | 65,000 | 58,000 | ||||||
Total Non-Current | 194,833,000 | 85,770,000 | ||||||
Total Deferred Tax Asset | $ | 198,169,000 | $ | 90,299,000 | ||||
Deferred Tax Liabilities | ||||||||
Current: | ||||||||
Derivative Asset | (1,538,000 | ) | ||||||
Other | (103,000 | ) | (57,000 | ) | ||||
Total Current | $ | (1,641,000 | ) | $ | (57,000 | ) | ||
Non-Current: | ||||||||
Crude Oil and Natural Gas Properties and Other Property | (271,008,000 | ) | (121,699,000 | ) | ||||
Total Non-Current | (271,008,000 | ) | (121,699,000 | ) | ||||
Total Deferred Tax Liability | (272,649,000 | ) | (121,756,000 | ) | ||||
Total Net Deferred Tax Liability | $ | (74,480,000 | ) | $ | (31,457,000 | ) | ||
Year Ended December 31 | ||||||||
2011 | 2010 | |||||||
Deferred Tax Assets | ||||||||
Current: | ||||||||
Share Based Compensation | $ | 866,000 | $ | 727,000 | ||||
Derivative Liability | 3,629,000 | 4,414,000 | ||||||
Other | 34,000 | - | ||||||
Total Current | 4,529,000 | 5,141,000 | ||||||
Non-Current: | ||||||||
Net Operating Loss Carryforwards (NOLs) | 84,714,000 | 23,987,000 | ||||||
Derivative Liability | 998,000 | 1,939,000 | ||||||
Other | 58,000 | 29,000 | ||||||
Total Non-Current | 85,770,000 | 25,955,000 | ||||||
Total Deferred Tax Asset | $ | 90,299,000 | $ | 31,096,000 | ||||
Deferred Tax Liabilities | ||||||||
Current: | ||||||||
Other | $ | (57,000 | ) | $ | (41,000 | ) | ||
Total Current | (57,000 | ) | (41,000 | ) | ||||
Non-Current: | ||||||||
Crude Oil and Natural Gas Properties and Other Property | (121,699,000 | ) | (35,122,000 | ) | ||||
Total Non-Current | (121,699,000 | ) | (35,122,000 | ) | ||||
Total Deferred Tax Liability | (121,756,000 | ) | (35,163,000 | ) | ||||
- | - | |||||||
Total Net Deferred Tax Liability | $ | (31,457,000 | ) | $ | (4,067,000 | ) |
Year Ended December 31, | Amount | Amount | ||||||
2012 | $ | 63,000 | ||||||
2013 | 39,000 | $ | 20,000 | |||||
2014 | 9,000 | 9,000 | ||||||
Total | $ | 111,000 | $ | 29,000 |
Year Ended December 31, | Amount | Amount | ||||||
2012 | $ | 230,000 | ||||||
2013 | 233,000 | $ | 245,000 | |||||
2014 | 242,000 | 242,000 | ||||||
2015 | 177,000 | 177,000 | ||||||
Total | $ | 882,000 | $ | 664,000 |
Fair Value Measurements at December 31, 2012 Using | ||||||||||||
Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Commodity Derivatives - Current Asset (crude oil swaps and collars) | $ | - | $ | 4,095,197 | $ | - | ||||||
Commodity Derivatives – Non-Current Asset (crude oil swaps and collars) | - | 1,763,008 | - | |||||||||
Commodity Derivatives – Non-Current Liability (crude oil swaps and collars | - | (2,547,745 | ) | - | ||||||||
Total | $ | - | $ | 3,310,460 | $ | - |
Fair Value Measurements at December 31, 2011 Using | ||||||||||||
Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Commodity Derivatives – Current Liability (crude oil swaps and collars) | $ | - | $ | (9,363,068 | ) | $ | - | |||||
Commodity Derivatives – Non-Current Liability (crude oil swaps and collars) | - | (2,574,903 | ) | - | ||||||||
Total | $ | - | $ | (11,937,971 | ) | $ | - |
Fair Value Measurements at December 31, 2011 Using | ||||||||||||
Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Commodity Derivatives – Current Liability (crude oil swaps and collars) | $ | - | $ | (9,363,068 | ) | $ | - | |||||
Commodity Derivatives – Non-Current Liability (crude oil swaps and collars) | - | (2,574,903 | ) | - | ||||||||
Credit Facility – Long Term Liability | - | (69,900,000 | ) | |||||||||
Total | $ | - | $ | (81,837,971 | ) | $ | - |
Fair Value Measurements at December 31, 2010 Using | ||||||||||||
Quoted Prices In Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Commodity Derivatives - Current Liability (crude oil swaps and collars) | $ | - | $ | (11,145,319 | ) | $ | - | |||||
Commodity Derivatives – Non-Current Liability (crude oil swaps and collars) | - | (5,022,657 | ) | - | ||||||||
Short-Term Investments (See Note 3) | 39,726,700 | - | - | |||||||||
Total | $ | 39,726,700 | $ | (16,167,976 | ) | $ | - |
Settlement Period | Oil (Barrels) | Fixed Price | ||||||
Swaps-Crude Oil | ||||||||
01/01/13 – 12/31/14 | 480,000 | $ | 91.65 | |||||
01/01/13 – 12/31/13 | 300,000 | 89.50 | ||||||
01/01/13 – 12/31/13 | 240,000 | 91.10 | ||||||
01/01/13 – 12/31/13 | 120,000 | 94.50 | ||||||
07/01/13 – 12/31/13 | 60,000 | 102.30 | ||||||
01/01/14 – 06/30/14 | 300,000 | 89.50 | ||||||
01/01/14 – 06/30/14 | 240,000 | 90.00 | ||||||
07/01/14 – 12/31/14 | 120,000 | 90.00 | ||||||
01/01/14 – 12/31/14 | 120,000 | 91.35 | ||||||
01/01/14 – 12/31/14 | 120,000 | 90.00 | ||||||
01/01/14 – 12/31/14 | 240,000 | 90.15 | ||||||
01/01/14 – 12/31/14 | 240,000 | 91.00 | ||||||
01/01/14 – 06/30/14 | 240,000 | 100.00 | ||||||
07/01/14 – 12/31/14 | 120,000 | 90.00 | ||||||
07/01/14 – 12/31/14 | 120,000 | 93.50 | ||||||
07/01/14 – 12/31/14 | 30,000 | 90.58 |
Weighted Average Price Of Open Commodity Swap Contracts | ||||||||
Year | Volumes (Bbl) | Weighted Average Price | ||||||
2013 | 960,000 | $ | 91.86 | |||||
2014 | 2,130,000 | 91.65 |
Oil (Barrels) | Fixed Price | Weighted Avg NYMEX Reference Price | ||||||||||
Oil Swaps | ||||||||||||
01/01/12 – 02/29/12 | 3,000 | 51.25 | 98.90 | |||||||||
01/01/12 – 6/30/12 | 138,000 | 80.00 | 99.19 | |||||||||
01/01/12 – 6/30/12 | 198,000 | 81.50 | 99.19 | |||||||||
01/01/12 – 6/30/12 | 60,000 | 85.50 | 99.20 | |||||||||
01/01/12 – 12/31/12 | 376,000 | 95.15 | 98.52 | |||||||||
01/01/12 – 12/31/12 | 240,000 | 100.00 | 98.81 |
Term | Oil (Barrels) | Floor/Ceiling Price | Basis | |||||||
Costless Collars | – Crude Oil | |||||||||
01/01/ | $ | NYMEX | ||||||||
01/01/13 – 12/31/13 | 139,791 | $ | 90.00/$106.50 | NYMEX | ||||||
01/01/13 – 12/31/13 | 224,900 | $ | 90.00/$110.00 | NYMEX | ||||||
01/01/13 – 12/31/13 | 182,269 | $ | 95.00/$107.00 | NYMEX | ||||||
01/01/13 – 12/31/13 | 480,000 | $ | 95.00/$110.70 | NYMEX | ||||||
01/01/13 – 12/31/13 | 760,794 | $ | 85.00/$98.00 | NYMEX | ||||||
01/01/ | $ | 90.25/$97.95 | NYMEX | |||||||
07/01/13 – 12/31/13 | 96,000 | $ | 95.00/$106.90 | NYMEX | ||||||
01/01/14 – 12/31/14 | 240,000 | $ | 90.00/$ | 99.05 | NYMEX |
December 31, Estimated Fair Value | December 31, Estimated Fair Value | ||||||||||||||||||
Type of Contract | Balance Sheet Location | 2011 | 2010 | ||||||||||||||||
Type of Crude Oil Contract | Balance Sheet Location | 2012 | 2011 | ||||||||||||||||
Derivative Assets: | |||||||||||||||||||
Swap Contracts | Current assets/liabilities | $ | 680,647 | $ | 285,126 | ||||||||||||||
Swap Contracts | Current liabilities | $ | 285,126 | $ | - | Non-current assets | 1,977,722 | - | |||||||||||
Costless Collars | Current liabilities | 1,932,884 | - | Current assets/liabilities | 11,769,415 | 1,932,884 | |||||||||||||
Costless Collars | Non-current liabilities | 8,766,484 | - | Non-current asset/liabilities | 5,629,996 | 8,766,484 | |||||||||||||
Total Derivative Assets | $ | 10,984,494 | $ | - | $ | 20,057,780 | $ | 10,984,494 | |||||||||||
Derivative Liabilities: | |||||||||||||||||||
Swap Contracts | Current liabilities | $ | (8,383,588 | ) | $ | (11,145,319 | ) | Current assets/liabilities | $ | (2,037,070 | ) | $ | (8,383,588 | ) | |||||
Swap Contracts | Non-current assets | (3,170,945 | ) | - | |||||||||||||||
Costless Collars | Current liabilities | (3,197,490 | ) | - | Current assets/liabilities | (6,317,795 | ) | (3,197,490 | ) | ||||||||||
Costless Collars | Non-current liabilities | (11,341,387 | ) | (5,022,657 | ) | Non-current assets/liabilities | (5,221,510 | ) | (11,341,387 | ) | |||||||||
Total Derivative Liabilities | $ | (22,922,465 | ) | $ | (16,167,976 | ) | $ | (16,747,320 | ) | $ | (22,922,465 | ) |
Derivative Type | Location of Loss for Effective and Ineffective Portion of Derivative in Income | Amount of Loss Reclassified from AOCI into Income | Location of Loss for Effective and Ineffective Portion of Derivative in Income | Amount of Loss Reclassified from AOCI into Income | |||||||||||||||||||||||
Year Ended December 31 | Year Ended December 31 | ||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | ||||||||||||||||||||||
Commodity – Cash Flow | Loss on Settled Derivatives | $ | 1,157,775 | $ | 1,157,554 | $ | 363,414 | Loss on Settled Derivatives | $ | 101,309 | $ | 1,157,775 | $ | 1,157,554 |
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | Net Income | Shares | Per Share | Net Income | Shares | Per Share | Net Income | Shares | Per Share | Net Income | Shares | Per Share | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic EPS | $ | 40,611,492 | 61,789,289 | $ | 0.66 | $ | 6,917,300 | 50,387,203 | $ | 0.14 | $ | 2,798,952 | 36,705,267 | $ | 0.08 | $ | 72,284,624 | 62,485,836 | $ | 1.16 | $ | 40,611,492 | 61,789,289 | $ | 0.66 | $ | 6,917,300 | 50,387,203 | $ | 0.14 | ||||||||||||||||||||||||||||||||||||||||||
Dilutive Effect of Options | - | 406,051 | (0.01 | ) | - | 391,042 | - | 171,803 | - | 383,243 | (0.01 | ) | - | 406,051 | (0.01 | ) | - | 391,042 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted EPS | $ | 40,611,492 | 62,195,340 | $ | 0.65 | $ | 6,917,300 | 50,778,245 | $ | 0.14 | $ | 2,798,952 | 36,877,070 | $ | 0.08 | $ | 72,284,624 | 62,869,079 | $ | 1.15 | $ | 40,611,492 | 62,195,340 | $ | 0.65 | $ | 6,917,300 | 50,778,245 | $ | 0.14 |
Year ended December 31, | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Net Income | $ | 40,611,492 | $ | 6,917,300 | $ | 2,798,952 | ||||||
Unrealized gains (losses) on Marketable Securities (net of tax of $109,000, $349,000 and $290,000 at December 31, 2011, 2010 and 2009) | 173,846 | 553,135 | (486,207 | ) | ||||||||
Reclassification of derivative instruments included in income (Net of tax of $448,000, $446,000 and $933,000 at December 31, 2011, 2010 and 2009) | 709,776 | 711,554 | (1,483,639 | ) | ||||||||
Comprehensive Income | $ | 41,495,114 | $ | 8,181,989 | $ | 829,106 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||
Costs Incurred for the Year: | ||||||||||||||||||||||||
Proved Property Acquisition | $ | 53,497,199 | �� | $ | 2,236,167 | $ | 30,800,883 | $ | 24,791,828 | $ | 53,497,199 | $ | 2,236,167 | |||||||||||
Unproved Property Acquisition | 57,867,660 | 72,308,719 | - | 27,304,425 | 57,867,660 | 72,308,719 | ||||||||||||||||||
Development | 302,594,511 | 123,933,003 | 18,739,905 | 485,392,505 | 302,594,511 | 123,933,003 | ||||||||||||||||||
Total | $ | 413,959,370 | $ | 198,477,889 | $ | 49,540,788 | $ | 537,488,758 | $ | 413,959,370 | $ | 198,477,889 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | Prior Years | 2012 | 2011 | 2010 | Prior Years | |||||||||||||||||||||||||
Property Acquisition | $ | 46,814,712 | $ | 50,613,193 | $ | 14,773,003 | $ | 25,565,530 | $ | 18,629,120 | $ | 33,133,410 | $ | 16,868,094 | $ | 14,103,615 | ||||||||||||||||
Development | 18,465 | - | - | - | 193,017 | - | - | - | ||||||||||||||||||||||||
Total | $ | 46,833,177 | $ | 50,613,193 | $ | 14,773,003 | $ | 25,565,530 | $ | 18,822,137 | $ | 33,133,410 | $ | 16,868,094 | $ | 14,103,615 |
Natural Gas | Oil | Natural Gas | Oil | |||||||||||||
(MCF) | (BBLS) | |||||||||||||||
Proved Developed and Undeveloped Reserves at December 31, 2008 | 216,451 | 727,665 | ||||||||||||||
Revisions of Previous Estimates | (27,820 | ) | (93,819 | ) | ||||||||||||
Extensions, Discoveries and Other Additions | 1,619,597 | 5,456,261 | ||||||||||||||
Production | (47,305 | ) | (274,528 | ) | ||||||||||||
(MCF) | (BBLS) | |||||||||||||||
Proved Developed and Undeveloped Reserves at December 31, 2009 | 1,760,923 | 5,815,579 | 1,760,923 | 5,815,579 | ||||||||||||
Revisions of Previous Estimates | 625,103 | 514,899 | 625,103 | 514,899 | ||||||||||||
Extensions, Discoveries and Other Additions | 8,298,347 | 8,513,064 | 8,298,347 | 8,513,064 | ||||||||||||
Production | (234,411 | ) | (849,845 | ) | (234,411 | ) | (849,845 | ) | ||||||||
Proved Developed and Undeveloped Reserves at December 31, 2010 | 10,449,962 | 13,993,697 | 10,449,962 | 13,993,697 | ||||||||||||
Revisions of Previous Estimates | (940,065 | ) | 924,434 | (940,065 | ) | 924,434 | ||||||||||
Extensions, Discoveries and Other Additions | 20,959,474 | 28,750,826 | 20,959,474 | 28,750,826 | ||||||||||||
Production | (800,207 | ) | (1,791,979 | ) | (800,207 | ) | (1,791,979 | ) | ||||||||
Proved Developed and Undeveloped Reserves at December 31, 2011 | 29,669,164 | 41,876,978 | 29,669,164 | 41,876,978 | ||||||||||||
Revisions of Previous Estimates | (1,410,547 | ) | 812,371 | |||||||||||||
Extensions, Discoveries and Other Additions | 14,788,384 | 21,490,244 | ||||||||||||||
Production | (1,768,872 | ) | (3,465,312 | ) | ||||||||||||
Proved Developed and Undeveloped Reserves at December 31, 2012 | 41,278,129 | 60,714,281 | ||||||||||||||
Proved Developed Reserves: | ||||||||||||||||
December 31, 2008 | 216,451 | 727,665 | ||||||||||||||
December 31, 2009 | 727,237 | 2,247,718 | 727,237 | 2,247,718 | ||||||||||||
December 31, 2010 | 3,513,427 | 5,840,745 | 3,513,427 | 5,840,745 | ||||||||||||
December 31, 2011 | 8,452,653 | 14,338,576 | 8,452,653 | 14,338,576 | ||||||||||||
December 31, 2012 | 17,350,166 | 27,345,824 | ||||||||||||||
Proved Undeveloped Reserves | ||||||||||||||||
December 31, 2008 | - | - | ||||||||||||||
December 31, 2009 | 1,033,686 | 3,567,861 | 1,033,686 | 3,567,861 | ||||||||||||
December 31, 2010 | 6,936,535 | 8,152,952 | 6,936,535 | 8,152,952 | ||||||||||||
December 31, 2011 | 21,216,511 | 27,538,402 | 21,216,511 | 27,538,402 | ||||||||||||
December 31, 2012 | 23,927,963 | 33,368,457 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||
Future Cash Inflows | $ | 3,959,403,500 | $ | 1,038,703,438 | $ | 315,142,688 | $ | 5,353,167,000 | $ | 3,959,403,500 | $ | 1,038,703,438 | ||||||||||||
Future Production Costs | (925,165,656 | ) | (271,843,571 | ) | (105,982,773 | ) | (1,436,711,062 | ) | (925,165,656 | ) | (271,843,571 | ) | ||||||||||||
Future Development Costs | (624,607,500 | ) | (161,853,922 | ) | (54,011,133 | ) | (846,363,500 | ) | (624,607,500 | ) | (161,853,922 | ) | ||||||||||||
Future Income Tax Expense | (740,132,743 | ) | (199,197,425 | ) | (43,761,765 | ) | (817,296,323 | ) | (740,132,743 | ) | (199,197,425 | ) | ||||||||||||
Future Net Cash Inflows | 1,669,497,601 | 405,808,520 | 111,387,017 | $ | 2,252,796,115 | $ | 1,669,497,601 | $ | 405,808,520 | |||||||||||||||
10% Annual Discount for Estimated Timing of Cash Flows | (830,800,217 | ) | (195,195,729 | ) | (43,580,456 | ) | (1,211,441,321 | ) | (830,800,217 | ) | (195,195,729 | ) | ||||||||||||
Standardized Measure of Discounted Future Net Cash Flows | $ | 838,697,384 | $ | 210,612,791 | $ | 67,806,561 | $ | 1,041,354,794 | $ | 838,697,384 | $ | 210,612,791 | ||||||||||||
Natural Gas | Oil | Natural Gas | Oil | |||||||||||||
MCF | Bbl | MCF | Bbl | |||||||||||||
December 31, 2012 | $ | 4.78 | $ | 84.92 | ||||||||||||
December 31, 2011 | $ | 6.18 | $ | 90.17 | $ | 6.18 | $ | 90.17 | ||||||||
December 31, 2010 | $ | 5.04 | $ | 70.46 | $ | 5.04 | $ | 70.46 | ||||||||
December 31, 2009 | $ | 3.93 | $ | 53.00 |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2012 | 2011 | 2010 | |||||||||||||||||||
Beginning of Period | $ | 210,612,791 | $ | 67,806,561 | $ | 11,786,054 | $ | 838,697,384 | $ | 210,612,791 | $ | 67,806,561 | ||||||||||||
Sales of Oil and Natural Gas Produced, Net of Production Costs | (132,095,155 | ) | (50,721,827 | ) | (13,116,475 | ) | (235,769,953 | ) | (132,095,155 | ) | (50,721,827 | ) | ||||||||||||
Extensions and Discoveries | 756,304,288 | 185,403,280 | 74,946,755 | 455,623,034 | 756,304,288 | 185,403,280 | ||||||||||||||||||
Previously Estimated Development Cost Incurred During the Period | 23,941,194 | 3,350,016 | 1,321,948 | 193,669,706 | 23,941,194 | 3,350,016 | ||||||||||||||||||
Net Change of Prices and Production Costs | 140,217,589 | 88,564,348 | 4,352,381 | (179,505,191 | ) | 140,217,589 | 88,564,348 | |||||||||||||||||
Change in Future Development Costs | (11,285,152 | ) | (3,003,304 | ) | - | (112,995,358 | ) | (11,285,152 | ) | (3,003,304 | ) | |||||||||||||
Revisions of Quantity and Timing Estimates | 13,491,953 | (3,237,346 | ) | (1,650,626 | ) | 15,687,427 | 13,491,953 | (3,237,346 | ) | |||||||||||||||
Accretion of Discount | 29,551,146 | 8,781,249 | 1,178,605 | 110,133,321 | 29,551,146 | 8,781,249 | ||||||||||||||||||
Change in Income Taxes | (177,737,162 | ) | (84,898,666 | ) | (20,005,322 | ) | 16,584,302 | (177,737,162 | ) | (84,898,666 | ) | |||||||||||||
Purchase of Reserves in Place | - | - | 9,579,951 | - | - | |||||||||||||||||||
Other | (14,304,107 | ) | (1,431,520 | ) | (586,710 | ) | (60,769,878 | ) | (14,304,107 | ) | (1,431,520 | ) | ||||||||||||
End of Period | $ | 838,697,384 | $ | 210,612,791 | $ | 67,806,561 | $ | 1,041,354,794 | $ | 838,697,384 | $ | 210,612,791 |
Quarterly data for the years end December 31, 2011, 2010, and 2009 is as follows: | ||||||||||||||||||||||||||||||||
Quarterly data for the years end December 31, 2012, 2011, and 2010 is as follows: | Quarterly data for the years end December 31, 2012, 2011, and 2010 is as follows: | |||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||||||||
2012 | ||||||||||||||||||||||||||||||||
Total Revenues | $ | 50,522,992 | $ | 119,207,601 | $ | 60,095,613 | 81,746,684 | |||||||||||||||||||||||||
Unrealized (Loss) Gain on Derivative Instruments | (9,364,913 | ) | 49,799,311 | (22,308,470 | ) | (2,978,806 | ) | |||||||||||||||||||||||||
Expenses(1) | 35,695,832 | 44,013,801 | 54,376,314 | 48,350,512 | ||||||||||||||||||||||||||||
Income (Loss) from Operations | 14,827,160 | 75,193,800 | 5,719,299 | 33,396,172 | ||||||||||||||||||||||||||||
Other Income (Expense) | (195,899 | ) | (2,727,404 | ) | (5,205,716 | ) | (5,721,016 | ) | ||||||||||||||||||||||||
Income Tax Provision (Benefit) | 5,825,350 | 28,840,000 | 213,422 | 8,123,000 | ||||||||||||||||||||||||||||
Net Income (Loss) | 8,805,911 | 43,626,396 | 300,161 | 19,552,156 | ||||||||||||||||||||||||||||
Net Income (Loss) Per Common Share – Basic | (0.14 | ) | 0.70 | - | 0.31 | |||||||||||||||||||||||||||
Net Income (Loss) Per Common Share – Diluted | (0.14 | ) | 0.70 | - | 0.31 | |||||||||||||||||||||||||||
Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||||
2011 | ||||||||||||||||||||||||||||||||
Revenue | $ | 2,526,749 | $ | 50,826,098 | $ | 69,050,038 | $ | 26,986,208 | ||||||||||||||||||||||||
Total Revenues | $ | 2,526,749 | $ | 50,826,098 | $ | 69,050,038 | $ | 26,986,208 | ||||||||||||||||||||||||
Unrealized (Loss) Gain on Derivative Instruments | (21,278,629 | ) | 20,848,232 | 27,105,400 | (23,605,774 | ) | ||||||||||||||||||||||||||
Expenses | 14,859,331 | 17,103,690 | 23,079,016 | 27,096,826 | 14,859,331 | 17,103,690 | 23,079,016 | 27,096,826 | ||||||||||||||||||||||||
Income (Loss) from Operations | (12,332,582 | ) | 33,722,408 | 45,971,022 | (110,618 | ) | (12,332,582 | ) | 33,722,408 | 45,971,022 | (110,618 | ) | ||||||||||||||||||||
Other Income (Expense) | 767,040 | (229,508 | ) | (180,800 | ) | (160,170 | ) | 767,040 | (229,508 | ) | (180,800 | ) | (160,170 | ) | ||||||||||||||||||
Income Tax Provision (Benefit) | (4,507,700 | ) | 13,060,000 | 17,173,000 | 1,110,000 | (4,507,700 | ) | 13,060,000 | 17,173,000 | 1,110,000 | ||||||||||||||||||||||
Net Income (Loss) | (7,057,842 | ) | 20,432,900 | 28,617,222 | (1,380,788 | ) | (7,057,842 | ) | 20,432,900 | 28,617,222 | (1,380,788 | ) | ||||||||||||||||||||
Net Income (Loss) Per Common Share – Basic | (0.11 | ) | 0.33 | 0.46 | (0.02 | ) | (0.11 | ) | 0.33 | 0.46 | (0.02 | ) | ||||||||||||||||||||
Net Income (Loss) Per Common Share – Diluted | (0.11 | ) | 0.33 | 0.46 | (0.02 | ) | (0.11 | ) | 0.33 | 0.46 | (0.02 | ) | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
Quarter Ended | March 31, | June 30, | September 30, | December 31, | ||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||||||||
2010 | ||||||||||||||||||||||||||||||||
Revenue | $ | 7,221,514 | $ | 16,231,773 | $ | 9,883,821 | $ | 11,221,992 | ||||||||||||||||||||||||
Total Revenues | $ | 7,221,514 | $ | 16,231,773 | $ | 9,883,821 | $ | 11,221,992 | ||||||||||||||||||||||||
Unrealized (Loss) Gain on Derivative Instruments | (900,816 | ) | 303,919 | (6,449,577 | ) | (7,499,003 | ) | |||||||||||||||||||||||||
Expenses | 4,596,936 | 6,133,565 | 8,159,485 | 14,163,826 | 4,596,936 | 6,133,565 | 8,159,485 | 14,163,826 | ||||||||||||||||||||||||
Income (Loss) from Operations | 2,624,578 | 10,098,208 | 1,724,336 | (2,941,834 | ) | 2,624,578 | 10,098,208 | 1,724,336 | (2,941,834 | ) | ||||||||||||||||||||||
Other Income (Expense) | (87,948 | ) | (144,342 | ) | (117,110 | ) | 180,412 | (87,948 | ) | (144,342 | ) | (117,110 | ) | 180,412 | ||||||||||||||||||
Income Tax Provision (Benefit) | 977,000 | 3,833,000 | 620,000 | (1,011,000 | ) | 977,000 | 3,833,000 | 620,000 | (1,011,000 | ) | ||||||||||||||||||||||
Net Income (Loss) | 1,559,630 | 6,120,866 | 987,226 | (1,750,422 | ) | 1,559,630 | 6,120,866 | 987,226 | (1,750,422 | ) | ||||||||||||||||||||||
Net Income (Loss) Per Common Share – Basic | 0.04 | 0.12 | 0.02 | (0.03 | ) | 0.04 | 0.12 | 0.02 | (0.03 | ) | ||||||||||||||||||||||
Net Income (Loss) Per Common Share – Diluted | 0.04 | 0.12 | 0.02 | (0.03 | ) | 0.04 | 0.12 | 0.02 | (0.03 | ) | ||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||||||||||||||||||
2009 | ||||||||||||||||||||||||||||||||
Revenue | $ | 658,268 | $ | 2,275,084 | $ | 4,855,972 | $ | 6,432,175 | ||||||||||||||||||||||||
Expenses | 1,047,614 | 1,437,445 | 2,530,315 | 5,077,164 | ||||||||||||||||||||||||||||
Income (Loss) from Operations | (389,346 | ) | 837,639 | 2,325,657 | 1,355,011 | |||||||||||||||||||||||||||
Other Income (Expense) | (43,527 | ) | (139,243 | ) | 321,589 | (2,828 | ) | |||||||||||||||||||||||||
Income Tax Provision (Benefit) | (174,000 | ) | 280,000 | 1,059,000 | 301,000 | |||||||||||||||||||||||||||
Net Income (Loss) | (258,873 | ) | 418,396 | 1,588,246 | 1,051,183 | |||||||||||||||||||||||||||
Net Income (Loss) Per Common Share – Basic | (0.01 | ) | 0.01 | 0.04 | 0.03 | |||||||||||||||||||||||||||
Net Income (Loss) Per Common Share – Diluted | (0.01 | ) | 0.01 | 0.04 | 0.03 | |||||||||||||||||||||||||||
(1) | General and administrative expenses include $5.5 million and $0.6 million in severance expenses in connection with the departures of our president and our chief operating officer in the third and fourth quarters of 2012, respectively. |