Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending June 30, 2014 and 2013
2nd Quarter | ||||||||||||
(in thousands, except per share data) | 2014 | 2013 | Change | |||||||||
Revenues | ||||||||||||
Oil, natural gas liquids and natural gas sales | $ | 355,852 | $ | 312,400 | $ | 43,452 | ||||||
Gain (loss) on derivative instruments, net Loss on sale of assets and other |
| (84,846 (909 | ) ) |
| 55,244 (663 | ) |
| (140,090 (246 | ) ) | |||
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Total revenues | 270,097 | 366,981 | (96,884 | ) | ||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 64,697 | 59,607 | 5,090 | |||||||||
Production and ad valorem taxes | 28,049 | 23,503 | 4,546 | |||||||||
Depreciation, depletion and amortization | 136,244 | 112,384 | 23,860 | |||||||||
Exploration | 2,575 | 3,455 | (880 | ) | ||||||||
General and administrative Accretion of discount on asset retirement obligations |
| 33,542 1,883 |
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| 27,666 1,729 |
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| 5,876 154 |
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Total costs and expenses | 266,990 | 228,344 | 38,646 | |||||||||
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Operating Income | 3,107 | 138,637 | (135,530 | ) | ||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (7,964 | ) | (10,182 | ) | 2,218 | |||||||
Other income | 687 | 196 | 491 | |||||||||
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Total other expense | (7,277 | ) | (9,986 | ) | 2,709 | |||||||
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Income (Loss) From Continuing Operations Before Income Taxes | (4,170 | ) | 128,651 | (132,821 | ) | |||||||
Income tax expense (benefit) | (1,016 | ) | 46,229 | (47,245 | ) | |||||||
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Income (Loss) From Continuing Operations | (3,154 | ) | 82,422 | (85,576 | ) | |||||||
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Discontinued Operations, net of tax | ||||||||||||
Income (loss) from discontinued operations | (4,799 | ) | 645 | (5,444 | ) | |||||||
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Income (Loss) From Discontinued Operations | (4,799 | ) | 645 | (5,444 | ) | |||||||
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Net Income (Loss) | $ | (7,953 | ) | $ | 83,067 | $ | (91,020 | ) | ||||
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Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | (0.04 | ) | $ | 1.14 | $ | (1.18 | ) | ||||
Discontinued operations | (0.07 | ) | 0.01 | (0.08 | ) | |||||||
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Net Income (Loss) | $ | (0.11 | ) | $ | 1.15 | $ | (1.26 | ) | ||||
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Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | (0.04 | ) | $ | 1.14 | $ | (1.18 | ) | ||||
Discontinued operations | (0.07 | ) | 0.01 | (0.08 | ) | |||||||
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Net Income (Loss) | $ | (0.11 | ) | $ | 1.15 | $ | (1.26 | ) | ||||
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Diluted Avg. Common Shares Outstanding | 72,851 | 72,419 | 432 | |||||||||
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Basic Avg. Common Shares Outstanding | 72,851 | 72,167 | 684 | |||||||||
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Dividends Per Common Share | $ | 0.150 | $ | 0.145 | $ | 0.005 | ||||||
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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 6 months ending June 30, 2014 and 2013
Year-to-date | ||||||||||||
(in thousands, except per share data) | 2014 | 2013 | Change | |||||||||
Revenues | ||||||||||||
Oil, natural gas liquids and natural gas sales | $ | 706,674 | $ | 567,239 | $ | 139,435 | ||||||
Gain (loss) on derivative instruments, net Loss on sale of assets and other |
| (138,237 (1,062 | ) ) |
| 36,288 (215 | ) |
| (174,525 (847 | ) ) | |||
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Total revenues | 567,375 | 603,312 | (35,937 | ) | ||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 132,141 | 125,149 | 6,992 | |||||||||
Production and ad valorem taxes | 55,373 | 46,879 | 8,494 | |||||||||
Depreciation, depletion and amortization | 260,464 | 207,336 | 53,128 | |||||||||
Exploration | 15,389 | 4,953 | 10,436 | |||||||||
General and administrative Accretion of discount on asset retirement obligations |
| 65,715 3,726 |
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| 55,752 3,416 |
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| 9,963 310 |
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Total costs and expenses | 532,808 | 443,485 | 89,323 | |||||||||
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Operating Income | 34,567 | 159,827 | (125,260 | ) | ||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (15,852 | ) | (20,083 | ) | 4,231 | |||||||
Other income | 1,010 | 1,370 | (360 | ) | ||||||||
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Total other expense | (14,842 | ) | (18,713 | ) | 3,871 | |||||||
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Income From Continuing Operations Before Income Taxes | 19,725 | 141,114 | (121,389 | ) | ||||||||
Income tax expense | 7,232 | 50,273 | (43,041 | ) | ||||||||
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Income From Continuing Operations | 12,493 | 90,841 | (78,348 | ) | ||||||||
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Discontinued Operations, net of tax | ||||||||||||
Income from discontinued operations | 33,920 | 48,918 | (14,998 | ) | ||||||||
Loss on disposal of discontinued operations | (1,050 | ) | — | (1,050 | ) | |||||||
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Income From Discontinued Operations | 32,870 | 48,918 | (16,048 | ) | ||||||||
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Net Income | $ | 45,363 | $ | 139,759 | $ | (94,396 | ) | |||||
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Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.17 | $ | 1.26 | $ | (1.09 | ) | |||||
Discontinued operations | 0.45 | 0.67 | (0.22 | ) | ||||||||
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Net Income | $ | 0.62 | $ | 1.93 | $ | (1.31 | ) | |||||
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Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.17 | $ | 1.26 | $ | (1.09 | ) | |||||
Discontinued operations | 0.45 | 0.68 | (0.23 | ) | ||||||||
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Net Income | $ | 0.62 | $ | 1.94 | $ | (1.32 | ) | |||||
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Diluted Avg. Common Shares Outstanding | 73,031 | 72,329 | 702 | |||||||||
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Basic Avg. Common Shares Outstanding | 72,737 | 72,155 | 582 | |||||||||
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Dividends Per Common Share | $ | 0.30 | $ | 0.29 | $ | 0.01 | ||||||
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of June 30, 2014 and December 31, 2013
(in thousands) | June 30, 2014 | December 31, 2013 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 1,516 | $ | 2,523 | ||||
Short-term investments | 42,000 | — | ||||||
Accounts receivable, net of allowance | 178,721 | 136,334 | ||||||
Inventories | 12,541 | 11,130 | ||||||
Assets held for sale as of June 30, 2014 with prior period comparable | 1,154,046 | 1,242,872 | ||||||
Derivative instruments | 524 | 17,463 | ||||||
Other current assets | 87,517 | 31,239 | ||||||
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Total current assets | 1,476,865 | 1,441,561 | ||||||
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Property, Plant and Equipment | ||||||||
Oil and natural gas properties, net | 5,413,727 | 5,087,573 | ||||||
Other property and equipment, net | 37,869 | 30,515 | ||||||
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Total property, plant and equipment, net | 5,451,596 | 5,118,088 | ||||||
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Noncurrent derivative instruments | 623 | 5,439 | ||||||
Other assets | 53,025 | 57,124 | ||||||
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TOTAL ASSETS | $ | 6,982,109 | $ | 6,622,212 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Long-term debt due within one year | $ | 570,000 | $ | 60,000 | ||||
Notes payable to banks | 669,000 | 489,000 | ||||||
Accounts payable | 135,416 | 78,178 | ||||||
Liabilities related to assets held for sale as of June 30, 2014 with prior period comparable | 767,131 | 831,570 | ||||||
Derivative instruments | 96,213 | 30,302 | ||||||
Other current liabilities | 226,978 | 202,175 | ||||||
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Total current liabilities | 2,464,738 | 1,691,225 | ||||||
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Long-term debt | 553,552 | 1,093,541 | ||||||
Asset retirement obligations | 113,087 | 108,533 | ||||||
Deferred income taxes | 848,422 | 807,614 | ||||||
Noncurrent derivative instruments | 21,705 | 398 | ||||||
Other long-term liabilities | 66,588 | 62,882 | ||||||
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Total liabilities | 4,068,092 | 3,764,193 | ||||||
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Total Shareholders’ Equity | 2,914,017 | 2,858,019 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 6,982,109 | $ | 6,622,212 | ||||
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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending June 30, 2014 and 2013
2nd Quarter | ||||||||||||
(in thousands, except sales price and per unit data) | 2014 | 2013 | Change | |||||||||
Oil and Gas Operations | ||||||||||||
Oil, natural gas liquids and natural gas sales from continuing operations | ||||||||||||
Oil | $ | 262,746 | $ | 234,870 | $ | 27,876 | ||||||
Natural gas liquids | 31,163 | 20,871 | 10,292 | |||||||||
Natural gas | 61,943 | 56,659 | 5,284 | |||||||||
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Total | 355,852 | 312,400 | 43,452 | |||||||||
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Loss on sale of assets and other | $ | (909 | ) | $ | (663 | ) | $ | (246 | ) | |||
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Open non-cash mark-to-market gains (losses) on derivative instruments | ||||||||||||
Oil | $ | (66,172 | ) | $ | 36,680 | $ | (102,852 | ) | ||||
Natural gas liquids | 40 | 168 | (128 | ) | ||||||||
Natural gas | 6,511 | 19,301 | (12,790 | ) | ||||||||
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Total | $ | (59,621 | ) | $ | 56,149 | $ | (115,770 | ) | ||||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | (25,754 | ) | $ | (9,076 | ) | $ | (16,678 | ) | |||
Natural gas liquids | 159 | 3,109 | (2,950 | ) | ||||||||
Natural gas | 370 | 5,062 | (4,692 | ) | ||||||||
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Total | $ | (25,225 | ) | $ | (905 | ) | $ | (24,320 | ) | |||
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Total Revenues | $ | 270,097 | $ | 366,981 | $ | (96,884 | ) | |||||
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Production volumes from continuing operations | ||||||||||||
Oil (MBbl) | 2,833 | 2,592 | 241 | |||||||||
Natural gas liquids (MMgal) | 44.7 | 34.2 | 10.5 | |||||||||
Natural gas (MMcf) | 14,676 | 14,742 | (66 | ) | ||||||||
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Production volumes from continuing operations(MBOE) | 6,344 | 5,864 | 480 | |||||||||
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Total production volumes (MBOE) | 6,354 | 6,480 | (126 | ) | ||||||||
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Average realized prices excluding effects of open non-cash mark-to-market derivative instruments* |
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Oil (per barrel) | $ | 83.65 | $ | 87.11 | $ | (3.46 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.70 | $ | 0.70 | $ | — | ||||||
Natural gas (per Mcf) | $ | 4.25 | $ | 4.19 | $ | 0.06 | ||||||
Average realized prices excluding derivative instruments | ||||||||||||
Oil (per barrel) | $ | 92.74 | $ | 90.61 | $ | 2.13 | ||||||
Natural gas liquids (per gallon) | $ | 0.70 | $ | 0.61 | $ | 0.09 | ||||||
Natural gas (per Mcf) | $ | 4.22 | $ | 3.84 | $ | 0.38 | ||||||
Other costs per BOE from continuing operations | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 10.20 | $ | 10.16 | $ | 0.04 | ||||||
Production and ad valorem taxes | $ | 4.42 | $ | 4.01 | $ | 0.41 | ||||||
Depreciation, depletion and amortization | $ | 21.31 | $ | 19.00 | $ | 2.31 | ||||||
Exploration expense | $ | 0.41 | $ | 0.59 | $ | (0.18 | ) | |||||
General and administrative | $ | 5.29 | $ | 4.72 | $ | 0.57 | ||||||
Capital expenditures | $ | 322,572 | $ | 349,879 | $ | (27,307 | ) |
* | The presentation of average prices with derivatives is a non-GAAP measure as a means to reflect the actual cash performance of our commodity derivatives for the respective periods and presents oil and natural gas prices with derivatives in a manner consistent with the presentation generally accepted by the investment community. |
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 6 months ending June 30, 2014 and 2013
Year-to-date | ||||||||||||
(in thousands, except sales price and per unit data) | 2014 | 2013 | Change | |||||||||
Oil and Gas Operations | ||||||||||||
Oil, natural gas liquids and natural gas sales from continuing operations | ||||||||||||
Oil | $ | 516,505 | $ | 425,629 | $ | 90,876 | ||||||
Natural gas liquids | 59,366 | 39,526 | 19,840 | |||||||||
Natural gas | 130,803 | 102,084 | 28,719 | |||||||||
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Total | 706,674 | 567,239 | 139,435 | |||||||||
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Loss on sale of assets and other | $ | (1,062 | ) | $ | (215 | ) | $ | (847 | ) | |||
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Open non-cash mark-to-market gains (losses) on derivative instruments | ||||||||||||
Oil | $ | (87,636 | ) | $ | 28 | $ | (87,664 | ) | ||||
Natural gas liquids | 327 | 147 | 180 | |||||||||
Natural gas | (5,993 | ) | 14,926 | (20,919 | ) | |||||||
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Total | $ | (93,302 | ) | $ | 15,101 | $ | (108,403 | ) | ||||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | (40,556 | ) | $ | (1,632 | ) | $ | (38,924 | ) | |||
Natural gas liquids | 355 | 5,591 | (5,236 | ) | ||||||||
Natural gas | (4,734 | ) | 17,228 | (21,962 | ) | |||||||
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Total | $ | (44,935 | ) | $ | 21,187 | $ | (66,122 | ) | ||||
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Total Revenues | $ | 567,375 | $ | 603,312 | $ | (35,937 | ) | |||||
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Production volumes from continuing operations | ||||||||||||
Oil (MBbl) | 5,584 | 4,906 | 678 | |||||||||
Natural gas liquids (MMgal) | 82.7 | 61.8 | 20.9 | |||||||||
Natural gas (MMcf) | 28,800 | 28,560 | 240 | |||||||||
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Production volumes from continuing operations(MBOE) | 12,352 | 11,137 | 1,215 | |||||||||
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Total production volumes (MBOE) | 12,516 | 12,401 | 115 | |||||||||
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Average realized prices excluding effects of open non-cash mark-to-market derivative instruments* |
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Oil (per barrel) | $ | 85.23 | $ | 86.42 | $ | (1.19 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.72 | $ | 0.73 | $ | (0.01 | ) | |||||
Natural gas (per Mcf) | $ | 4.38 | $ | 4.18 | $ | 0.20 | ||||||
Average realized prices excluding derivative instruments | ||||||||||||
Oil (per barrel) | $ | 92.50 | $ | 86.76 | $ | 5.74 | ||||||
Natural gas liquids (per gallon) | $ | 0.72 | $ | 0.64 | $ | 0.08 | ||||||
Natural gas (per Mcf) | $ | 4.54 | $ | 3.57 | $ | 0.97 | ||||||
Other costs per BOE from continuing operations | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 10.70 | $ | 11.24 | $ | (0.54 | ) | |||||
Production and ad valorem taxes | $ | 4.48 | $ | 4.21 | $ | 0.27 | ||||||
Depreciation, depletion and amortization | $ | 20.93 | $ | 18.45 | $ | 2.48 | ||||||
Exploration expense | $ | 1.25 | $ | 0.44 | $ | 0.81 | ||||||
General and administrative | $ | 5.32 | $ | 5.01 | $ | 0.31 | ||||||
Capital expenditures | $ | 594,268 | $ | 634,932 | $ | (40,664 | ) |
* | The presentation of average prices with derivatives is a non-GAAP measure as a means to reflect the actual cash performance of our commodity derivatives for the respective periods and presents oil and natural gas prices with derivatives in a manner consistent with the presentation generally accepted by the investment community. |