Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending December 31, 2014 and 2013
4th Quarter | ||||||||||||
(in thousands, except per share data) | 2014 | 2013 | Change | |||||||||
Revenues | ||||||||||||
Oil, natural gas liquids and natural gas sales | $ | 286,747 | $ | 328,571 | $ | (41,824 | ) | |||||
Gain on derivative instruments, net | 325,521 | 1,880 | 323,641 | |||||||||
Loss on sale of assets and other | (833 | ) | (489 | ) | (344 | ) | ||||||
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Total revenues | 611,435 | 329,962 | 281,473 | |||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 74,571 | 66,494 | 8,077 | |||||||||
Production and ad valorem taxes | 20,961 | 24,994 | (4,033 | ) | ||||||||
Depreciation, depletion and amortization | 148,996 | 120,629 | 28,367 | |||||||||
Asset impairment | 235,301 | 7,082 | 228,219 | |||||||||
Exploration | 6,872 | 6,958 | (86 | ) | ||||||||
General and administrative | 28,553 | 27,122 | 1,431 | |||||||||
Accretion of discount on asset retirement obligations | 1,958 | 1,808 | 150 | |||||||||
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Total costs and expenses | 517,212 | 255,087 | 262,125 | |||||||||
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Operating Income | 94,223 | 74,875 | 19,348 | |||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (10,397 | ) | (9,504 | ) | (893 | ) | ||||||
Other income | 134 | 1,184 | (1,050 | ) | ||||||||
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Total other expense | (10,263 | ) | (8,320 | ) | (1,943 | ) | ||||||
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Income From Continuing Operations Before Income Taxes | 83,960 | 66,555 | 17,405 | |||||||||
Income tax expense | 17,441 | 20,922 | (3,481 | ) | ||||||||
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Income From Continuing Operations | 66,519 | 45,633 | 20,886 | |||||||||
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Discontinued Operations, net of tax | ||||||||||||
Income (loss) from discontinued operations | (1,143 | ) | 19,188 | (20,331 | ) | |||||||
Gain on disposal of discontinued operations | 42 | 19,272 | (19,230 | ) | ||||||||
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Income (Loss) From Discontinued Operations | (1,101 | ) | 38,460 | (39,561 | ) | |||||||
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Net Income | $ | 65,418 | $ | 84,093 | $ | (18,675 | ) | |||||
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Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.91 | $ | 0.62 | $ | 0.29 | ||||||
Discontinued operations | (0.02 | ) | 0.53 | (0.55 | ) | |||||||
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Net Income | $ | 0.89 | $ | 1.15 | $ | (0.26 | ) | |||||
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Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.91 | $ | 0.63 | $ | 0.28 | ||||||
Discontinued operations | (0.01 | ) | 0.53 | (0.54 | ) | |||||||
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Net Income | $ | 0.90 | $ | 1.16 | $ | (0.26 | ) | |||||
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Diluted Avg. Common Shares Outstanding | 73,343 | 73,086 | 257 | |||||||||
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Basic Avg. Common Shares Outstanding | 72,988 | 72,628 | 360 | |||||||||
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Dividends Per Common Share | $ | 0.02 | $ | 0.145 | $ | (0.125 | ) | |||||
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1
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 12 months ending December 31, 2014 and 2013
Year-to-date | ||||||||||||
(in thousands, except per share data) | 2014 | 2013 | Change | |||||||||
Revenues | ||||||||||||
Oil, natural gas liquids and natural gas sales | $ | 1,344,194 | $ | 1,256,317 | $ | 87,877 | ||||||
Gain (loss) on derivative instruments, net | 335,019 | (50,024 | ) | 385,043 | ||||||||
Loss on sale of assets and other | (2,642 | ) | (981 | ) | (1,661 | ) | ||||||
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Total revenues | 1,676,571 | 1,205,312 | 471,259 | |||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 274,432 | 257,438 | 16,994 | |||||||||
Production and ad valorem taxes | 102,063 | 94,103 | 7,960 | |||||||||
Depreciation, depletion and amortization | 548,564 | 452,876 | 95,688 | |||||||||
Asset impairment | 416,801 | 13,906 | 402,895 | |||||||||
Exploration | 28,090 | 14,036 | 14,054 | |||||||||
General and administrative | 122,052 | 113,821 | 8,231 | |||||||||
Accretion of discount on asset retirement obligations | 7,608 | 6,995 | 613 | |||||||||
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Total costs and expenses | 1,499,610 | 953,175 | 546,435 | |||||||||
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Operating Income | 176,961 | 252,137 | (75,176 | ) | ||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (37,771 | ) | (39,736 | ) | 1,965 | |||||||
Other income | 1,181 | 3,803 | (2,622 | ) | ||||||||
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Total other expense | (36,590 | ) | (35,933 | ) | (657 | ) | ||||||
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Income From Continuing Operations Before Income Taxes | 140,371 | 216,204 | (75,833 | ) | ||||||||
Income tax expense | 40,728 | 74,323 | (33,595 | ) | ||||||||
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Income From Continuing Operations | 99,643 | 141,881 | (42,238 | ) | ||||||||
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Discontinued Operations, net of tax | ||||||||||||
Income from discontinued operations | 29,292 | 59,079 | (29,787 | ) | ||||||||
Gain on disposal of discontinued operations | 439,097 | 3,594 | 435,503 | |||||||||
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Income From Discontinued Operations | 468,389 | 62,673 | 405,716 | |||||||||
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Net Income | $ | 568,032 | $ | 204,554 | $ | 363,478 | ||||||
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Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 1.36 | $ | 1.96 | $ | (0.60 | ) | |||||
Discontinued operations | 6.39 | 0.86 | 5.53 | |||||||||
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Net Income | $ | 7.75 | $ | 2.82 | $ | 4.93 | ||||||
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Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 1.37 | $ | 1.96 | $ | (0.59 | ) | |||||
Discontinued operations | 6.42 | 0.87 | 5.55 | |||||||||
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Net Income | $ | 7.79 | $ | 2.83 | $ | 4.96 | ||||||
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Diluted Average Common Shares Outstanding | 73,275 | 72,471 | 804 | |||||||||
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Basic Average Common Shares Outstanding | 72,897 | 72,318 | 579 | |||||||||
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Dividends Per Common Share | $ | 0.47 | $ | 0.58 | $ | (0.11 | ) | |||||
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2
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of December 31, 2014 and December 31, 2013
(in thousands) | December 31, 2014 | December 31, 2013 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 1,852 | $ | 2,523 | ||||
Accounts receivable, net of allowance | 147,675 | 136,334 | ||||||
Inventories | 14,251 | 11,130 | ||||||
Assets held for sale | 411,654 | 1,242,872 | ||||||
Deferred income taxes | — | 21,250 | ||||||
Derivative instruments | 322,337 | 17,463 | ||||||
Prepayments and other | 24,574 | 9,989 | ||||||
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Total current assets | 922,343 | 1,441,561 | ||||||
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Property, Plant and Equipment | ||||||||
Oil and natural gas properties, net | 5,152,748 | 5,087,573 | ||||||
Other property and equipment, net | 43,812 | 30,515 | ||||||
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Total property, plant and equipment, net | 5,196,560 | 5,118,088 | ||||||
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Noncurrent derivative instruments | — | 5,439 | ||||||
Other assets | 19,512 | 57,124 | ||||||
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TOTAL ASSETS | $ | 6,138,415 | $ | 6,622,212 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Long-term debt due within one year | $ | — | $ | 60,000 | ||||
Notes payable to banks | — | 489,000 | ||||||
Accounts payable | 101,562 | 78,178 | ||||||
Accrued taxes | 4,003 | 8,201 | ||||||
Accrued wages and benefits | 46,162 | 27,036 | ||||||
Accrued capital costs | 207,461 | 93,623 | ||||||
Revenue and royalty payable | 64,446 | 51,519 | ||||||
Liabilities related to assets held for sale | 33,406 | 831,570 | ||||||
Deferred income taxes | 79,164 | — | ||||||
Derivative instruments | 988 | 30,302 | ||||||
Other current liabilities | 23,288 | 21,796 | ||||||
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Total current liabilities | 560,480 | 1,691,225 | ||||||
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Long-term debt | 1,038,563 | 1,093,541 | ||||||
Asset retirement obligations | 94,060 | 108,533 | ||||||
Deferred income taxes | 1,000,486 | 807,614 | ||||||
Noncurrent derivative instruments | — | 398 | ||||||
Other long-term liabilities | 30,222 | 62,882 | ||||||
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Total liabilities | 2,723,811 | 3,764,193 | ||||||
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Total Shareholders’ Equity | 3,414,604 | 2,858,019 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 6,138,415 | $ | 6,622,212 | ||||
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3
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending December 31, 2014 and 2013
4th Quarter | ||||||||||||
(in thousands, except sales price and per unit data) | 2014 | 2013 | Change | |||||||||
Oil and Gas Operations | ||||||||||||
Oil, natural gas liquids and natural gas sales from continuing operations | ||||||||||||
Oil | $ | 211,916 | $ | 250,118 | $ | (38,202 | ) | |||||
Natural gas liquids | 20,293 | 27,096 | (6,803 | ) | ||||||||
Natural gas | 54,538 | 51,357 | 3,181 | |||||||||
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Total | $ | 286,747 | $ | 328,571 | $ | (41,824 | ) | |||||
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Loss on sale of assets and other | $ | (833 | ) | $ | (489 | ) | $ | (344 | ) | |||
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Open non-cash mark-to-market gains (losses) on derivative instruments | ||||||||||||
Oil | $ | 230,490 | $ | 20,600 | $ | 209,890 | ||||||
Natural gas liquids | (1,316 | ) | 556 | (1,872 | ) | |||||||
Natural gas | 32,286 | (20,529 | ) | 52,815 | ||||||||
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Total | $ | 261,460 | $ | 627 | $ | 260,833 | ||||||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | 50,945 | $ | (13,593 | ) | $ | 64,538 | |||||
Natural gas liquids | 4,990 | 2,342 | 2,648 | |||||||||
Natural gas | 8,126 | 12,504 | (4,378 | ) | ||||||||
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Total | $ | 64,061 | $ | 1,253 | $ | 62,808 | ||||||
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Total Revenues | $ | 611,435 | $ | 329,962 | $ | 281,473 | ||||||
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Production volumes from continuing operations | ||||||||||||
Oil (MBbl) | 3,213 | 2,694 | 519 | |||||||||
Natural gas liquids (MMgal) | 43.1 | 37.3 | 5.8 | |||||||||
Natural gas (MMcf) | 14,646 | 14,676 | (30 | ) | ||||||||
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Production volumes from continuing operations (MBOE) | 6,681 | 6,028 | 653 | |||||||||
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Total production volumes (MBOE) | 6,681 | 6,203 | 478 | |||||||||
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Average realized prices excluding effects of open non-cash mark-to-market derivative instruments | ||||||||||||
Oil (per barrel) | $ | 81.81 | $ | 87.80 | $ | (5.99 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.59 | $ | 0.79 | $ | (0.20 | ) | |||||
Natural gas (per Mcf) | $ | 4.28 | $ | 4.35 | $ | (0.07 | ) | |||||
Average realized prices excluding derivative instruments | ||||||||||||
Oil (per barrel) | $ | 65.96 | $ | 92.84 | $ | (26.88 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.47 | $ | 0.73 | $ | (0.26 | ) | |||||
Natural gas (per Mcf) | $ | 3.72 | $ | 3.50 | $ | 0.22 | ||||||
Other costs per BOE from continuing operations | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 11.16 | $ | 11.04 | $ | 0.12 | ||||||
Production and ad valorem taxes | $ | 3.14 | $ | 4.15 | $ | (1.01 | ) | |||||
Depreciation, depletion and amortization | $ | 22.08 | $ | 19.96 | $ | 2.12 | ||||||
Exploration expense | $ | 1.03 | $ | 1.15 | $ | (0.12 | ) | |||||
General and administrative | $ | 4.27 | $ | 4.50 | $ | (0.23 | ) | |||||
Capital expenditures | $ | 425,045 | $ | 212,054 | $ | 212,991 | ||||||
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4
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending December 31, 2014 and 2013
Year-to-date | ||||||||||||
(in thousands, except sales price and per unit data) | 2014 | 2013 | Change | |||||||||
Oil and Gas Operations | ||||||||||||
Oil, natural gas liquids and natural gas sales from continuing operations | ||||||||||||
Oil | $ | 988,868 | $ | 961,055 | $ | 27,813 | ||||||
Natural gas liquids | 110,918 | 91,407 | 19,511 | |||||||||
Natural gas | 244,408 | 203,855 | 40,553 | |||||||||
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Total | $ | 1,344,194 | $ | 1,256,317 | $ | 87,877 | ||||||
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Loss on sale of assets and other | $ | (2,642 | ) | $ | (981 | ) | $ | (1,661 | ) | |||
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Open non-cash mark-to-market gains (losses) on derivative instruments | ||||||||||||
Oil | $ | 271,200 | $ | (43,261 | ) | $ | 314,461 | |||||
Natural gas liquids | 287 | (652 | ) | 939 | ||||||||
Natural gas | 43,958 | (3,919 | ) | 47,877 | ||||||||
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Total | $ | 315,445 | $ | (47,832 | ) | $ | 363,277 | |||||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | 4,377 | $ | (52,694 | ) | $ | 57,071 | |||||
Natural gas liquids | 6,218 | 10,795 | (4,577 | ) | ||||||||
Natural gas | 8,979 | 39,707 | (30,728 | ) | ||||||||
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Total | $ | 19,574 | $ | (2,192 | ) | $ | 21,766 | |||||
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Total Revenues | $ | 1,676,571 | $ | 1,205,312 | $ | 471,259 | ||||||
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Production volumes from continuing operations | ||||||||||||
Oil (MBbl) | 11,814 | 10,364 | 1,450 | |||||||||
Natural gas liquids (MMgal) | 172.3 | 135.8 | 36.5 | |||||||||
Natural gas (MMcf) | 58,602 | 58,104 | 498 | |||||||||
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Production volumes from continuing operations (MBOE) | 25,684 | 23,281 | 2,403 | |||||||||
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Total production volumes (MBOE) | 25,849 | 25,362 | 487 | |||||||||
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Average realized prices excluding effects of open non-cash mark-to-market derivative instruments | ||||||||||||
Oil (per barrel) | $ | 84.07 | $ | 87.65 | $ | (3.58 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.68 | $ | 0.75 | $ | (0.07 | ) | |||||
Natural gas (per Mcf) | $ | 4.32 | $ | 4.19 | $ | 0.13 | ||||||
Average realized prices excluding derivative instruments | ||||||||||||
Oil (per barrel) | $ | 83.70 | $ | 92.73 | $ | (9.03 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.64 | $ | 0.67 | $ | (0.03 | ) | |||||
Natural gas (per Mcf) | $ | 4.17 | $ | 3.51 | $ | 0.66 | ||||||
Other costs per BOE from continuing operations | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 10.68 | $ | 11.06 | $ | (0.38 | ) | |||||
Production and ad valorem taxes | $ | 3.97 | $ | 4.04 | $ | (0.07 | ) | |||||
Depreciation, depletion and amortization | $ | 21.17 | $ | 19.32 | $ | 1.85 | ||||||
Exploration expense | $ | 1.09 | $ | 0.60 | $ | 0.49 | ||||||
General and administrative | $ | 4.75 | $ | 4.89 | $ | (0.14 | ) | |||||
Capital expenditures | $ | 1,376,038 | $ | 1,104,745 | $ | 271,293 | ||||||
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5