SandRidge Energy, Inc. Updates Shareholders on Operations and Reports Financial Results for Third Quarter and First Nine Months of 2015
The Company had a strong operational quarter, and has both increased 2015 production guidance and decreased 2015 lease operating expense guidance due to positive ongoing production and expense results and the acquisition of the Pi?on gathering system. The acquisition eliminates approximately
As previously announced during and after the third quarter, SandRidge bought back
After the close of the third quarter, SandRidge entered into a purchase and sales agreement to acquire assets from
"Our third quarter results featured continued cost control, strong operations, and we drilled eight more extended laterals. We also addressed
James Bennett, SandRidge's Chief Executive Officer and President.
"Topping off the significant and varied activity of recent weeks, our
Drilling and Operational Activities
Mid-Continent: During the third quarter of 2015, SandRidge drilled 31 laterals. The Company averaged six horizontal rigs operating in the play. The Company's Mid-Continent assets produced 70.6 MBoepd during the third quarter (30% oil, 19% NGLs, 51% natural gas).
Operational Highlights
- Average third quarter production of 79.9 MBoepd, a 10% decrease versus the second quarter of 2015
- Achieved
\\$2.3 million per Mississippian lateral cost in the third quarter, a\\$700,000 , or 23%, reduction from 2014 per lateral costs - Spud 14 laterals with multilateral design in the third quarter (8 extended laterals and 6 full section development laterals) with an average cost of
\\$2.2 million per lateral - 19 single Mississippian laterals delivered an average 30-day IP rate of 447 Boepd (51% oil), 127% of Mississippian type curve in the third quarter
- 101 multilaterals delivered a cumulative average program to date 90-day IP rate of 280 Boepd (52% oil), 100% of Mississippian type curve through the third quarter
- Reduced Mid-Continent annual LOE guidance by
\\$0.80 per Boe primarily due to a reduction in power use and generator rentals
Operational Highlights - Subsequent to Third Quarter
As previously announced, the Company acquired the Pi?on gathering system, in connection with its West Texas Overthrust properties. Acquisition of this asset eliminates
Steve Turk, SandRidge's Chief Operating Officer noted, "The teams delivered strong results averaging 79.9 MBoepd in the third quarter, 70.6 MBoepd from our original Mid-Continent assets. Confidence in our program led to the decision to again raise the lower end of our annual production guidance by 500 MBoe. Ahead of our year end goal, we also achieved an average cost of
Key Financial Results
Third Quarter
- Adjusted EBITDA, net of Noncontrolling Interest, was
\\$118 million for third quarter 2015 compared to\\$225 million in third quarter 2014 - Adjusted operating cash flow of
\\$45 million for third quarter 2015 compared to\\$203 million in third quarter 2014 - Adjusted net loss of
\\$45 million , or\\$0.07 per diluted share, for third quarter 2015 compared to adjusted net income of\\$43 million , or\\$0.07 per diluted share, in third quarter 2014
Nine Months
- Adjusted EBITDA, net of Noncontrolling Interest, was
\\$460 million in the first nine months of 2015 compared to\\$596 million in first nine months of 2014, pro forma for divestitures - Adjusted operating cash flow of
\\$302 million in the first nine months of 2015 compared to\\$509 million in the first nine months of 2014 - Adjusted net loss of
\\$61 million , or\\$0.10 per diluted share, in the first nine months of 2015 compared to adjusted net income of\\$109 million , or\\$0.19 per diluted share, in the first nine months of 2014
Adjusted net income (loss) available to common stockholders, adjusted EBITDA, pro forma adjusted EBITDA and adjusted operating cash flow are non-GAAP financial measures. Each measure is defined and reconciled to the most directly comparable GAAP measure under "Non-GAAP Financial Measures" beginning on page 10.
Financial / Other Highlights
- Ended the third quarter with
\\$1.3 billion in liquidity, including\\$790 million in cash - Bond repurchases and exchanges address
\\$525 million of total debt, retiring\\$250 million with\\$94 million in cash (38% of par value) and exchanging\\$275 million into debt, convertible into equity - Suspension of 7.0% semi-annual preferred stock dividend payment
- Incurred a non-cash impairment charge of approximately
\\$1.1 billion primarily due to a ceiling test impairment, resulting from a significant decline in oil price
Financial / Other Highlights – Subsequent to Third Quarter
- Additional bond repurchases and exchanges address
\\$400 million of total debt, retiring\\$100 million with\\$30 million in cash (30% of par value) and exchanging\\$300 million into debt, convertible into equity - Affirmed
\\$500 million borrowing base and amended credit agreement allowing for an increase in an amount available for cash repurchase of senior unsecured notes from\\$200 million to \\$275 million - As of
October 30, 2015 , a total principal amount of\\$126 million in both 2022 and 2023 unsecured convertible notes had voluntarily converted into common stock
Operational and Financial Statistics
Information regarding the Company's production, pricing, costs and earnings is presented below:
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||
Production - Total |
|||||||||||
Oil (MBbl) |
2,262 |
2,644 |
7,604 |
7,927 | |||||||
NGL (MBbl) |
1,246 |
1,109 |
3,883 |
2,500 | |||||||
Natural gas (MMcf) |
23,058 |
21,501 |
71,133 |
62,335 | |||||||
Oil equivalent (MBoe) |
7,351 |
7,337 |
23,343 |
20,816 | |||||||
Daily production (MBoed) |
79.9 |
79.7 |
85.5 |
76.2 | |||||||
Production - Mid-Continent |
|||||||||||
Oil (MBbl) |
1,938 |
2,197 |
6,554 |
5,849 | |||||||
NGL (MBbl) |
1,202 |
1,063 |
3,764 |
2,314 | |||||||
Natural gas (MMcf) |
20,128 |
18,190 |
62,292 |
48,704 | |||||||
Oil equivalent (MBoe) |
6,495 |
6,292 |
20,700 |
16,280 | |||||||
Daily production (MBoed) |
70.6 |
68.4 |
75.8 |
59.6 | |||||||
Average price per unit |
|||||||||||
Realized oil price per barrel - as reported |
\\$ 43.33 |
\\$ 94.60 |
\\$ 47.55 |
\\$ 97.12 | |||||||
Realized impact of derivatives per barrel |
28.85 |
0.26 |
32.87 |
(1.27) | |||||||
Net realized price per barrel |
\\$ 72.18 |
\\$ 94.86 |
\\$ 80.42 |
\\$ 95.85 | |||||||
Realized NGL price per barrel - as reported |
\\$ 13.29 |
\\$ 35.84 |
\\$ 14.69 |
\\$ 37.84 | |||||||
Realized impact of derivatives per barrel |
- |
- |
- |
- | |||||||
Net realized price per barrel |
\\$ 13.29 |
\\$ 35.84 |
\\$ 14.69 |
\\$ 37.84 | |||||||
Realized natural gas price per Mcf - as reported |
\\$ 2.19 |
\\$ 3.24 |
\\$ 2.20 |
\\$ 3.86 | |||||||
Realized impact of derivatives per Mcf |
0.09 |
0.13 |
0.41 |
(0.22) | |||||||
Net realized price per Mcf |
\\$ 2.28 |
\\$ 3.37 |
\\$ 2.61 |
\\$ 3.64 | |||||||
Realized price per Boe - as reported |
\\$ 22.46 |
\\$ 49.01 |
\\$ 24.65 |
\\$ 53.08 | |||||||
Net realized price per Boe - including impact of derivatives |
\\$ 31.61 |
\\$ 49.48 |
\\$ 36.58 |
\\$ 51.95 | |||||||
Average cost per Boe |
|||||||||||
Lease operating |
\\$ 9.91 |
\\$ 11.27 |
\\$ 10.46 |
\\$ 12.32 | |||||||
Production taxes |
0.50 |
1.14 |
0.54 |
1.15 | |||||||
General and administrative |
|||||||||||
General and administrative, excluding stock-based compensation |
\\$ 4.17 |
\\$ 2.77 |
\\$ 4.01 |
\\$ 3.80 | |||||||
Stock-based compensation (1) |
0.49 |
0.58 |
0.65 |
0.76 | |||||||
Total general and administrative |
\\$ 4.66 |
\\$ 3.35 |
\\$ 4.66 |
\\$ 4.56 | |||||||
General and administrative - adjusted |
|||||||||||
General and administrative, excluding stock-based compensation (2) |
\\$ 3.29 |
\\$ 2.76 |
\\$ 3.37 |
\\$ 3.44 | |||||||
Stock-based compensation (1)(3) |
0.48 |
0.55 |
0.44 |
0.66 | |||||||
Total general and administrative - adjusted |
\\$ 3.77 |
\\$ 3.31 |
\\$ 3.81 |
\\$ 4.10 | |||||||
Depletion (4) |
\\$ 9.20 |
\\$ 15.49 |
\\$ 11.58 |
\\$ 15.99 | |||||||
Lease operating cost per Boe |
|||||||||||
Mid-Continent |
\\$ 7.09 |
\\$ 8.18 |
\\$ 7.75 |
\\$ 8.04 | |||||||
Earnings per share |
|||||||||||
Loss per share applicable to common stockholders |
|||||||||||
Basic |
\\$ (1.23) |
\\$ 0.30 |
\\$ (6.14) |
\\$ (0.11) | |||||||
Diluted |
(1.23) |
0.27 |
(6.14) |
(0.11) | |||||||
Adjusted net (loss) income per share available to common stockholders |
|||||||||||
Basic |
\\$ (0.11) |
\\$ 0.07 |
\\$ (0.18) |
\\$ 0.14 | |||||||
Diluted |
(0.07) |
0.07 |
0.10 |
0.19 | |||||||
Weighted average number of common shares outstanding (in thousands) |
|||||||||||
Basic |
526,388 |
485,458 |
500,077 |
485,194 | |||||||
Diluted (5) |
641,526 |
575,912 |
586,424 |
578,125 | |||||||
(1) |
Expense for equity-classified stock-based awards. | ||||||||||
(2) |
Excludes severance, legal settlements and shareholder litigation costs totaling \\$6.4 million and \\$14.9 million for the three and nine-month periods ended September 30, 2015, respectively. Excludes severance, transaction costs and shareholder litigation costs totaling \\$0.1 million and \\$7.5 million for the three and nine-month periods ended September 30, 2014, respectively. | ||||||||||
(3) |
Three and nine-month periods ended September 30, 2015 exclude \\$0.1 million and \\$4.8 million, respectively, for the acceleration of certain stock awards. Three and nine-month periods ended September 30, 2014 exclude \\$0.2 million and \\$2.2 million, respectively, for the acceleration of certain stock awards. | ||||||||||
(4) |
Includes accretion of asset retirement obligation. | ||||||||||
(5) |
Includes shares considered antidilutive for calculating earnings per share in accordance with GAAP for certain periods presented. |
Capital Expenditures
The table below summarizes the Company's capital expenditures for the three and nine-month periods ended
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||
(in thousands) | |||||||||||
Drilling and production |
|||||||||||
Mid-Continent |
\\$ 87,183 |
\\$336,171 |
\\$511,789 |
\\$ 743,059 | |||||||
Permian Basin |
675 |
49,314 |
4,257 |
155,788 | |||||||
Gulf of Mexico/Gulf Coast |
- |
- |
- |
22,975 | |||||||
87,858 |
385,485 |
516,046 |
921,822 | ||||||||
Leasehold and geophysical |
|||||||||||
Mid-Continent |
15,848 |
47,260 |
42,434 |
127,296 | |||||||
Gulf of Mexico/Gulf Coast |
- |
- |
- |
159 | |||||||
Other |
651 |
2,340 |
4,391 |
7,990 | |||||||
16,499 |
49,600 |
46,825 |
135,445 | ||||||||
Inventory |
1,656 |
674 |
(3,356) |
(728) | |||||||
Total exploration and development |
106,013 |
435,759 |
559,515 |
1,056,539 | |||||||
Drilling and oil field services |
259 |
3,603 |
2,732 |
10,877 | |||||||
Midstream |
3,719 |
14,045 |
20,400 |
25,810 | |||||||
Other - general |
3,306 |
14,422 |
18,405 |
27,311 | |||||||
Total capital expenditures, excluding acquisitions |
113,297 |
467,829 |
601,052 |
1,120,537 | |||||||
Acquisitions |
(244) |
367 |
3,231 |
16,920 | |||||||
Total capital expenditures |
\\$113,053 |
\\$468,196 |
\\$604,283 |
\\$1,137,457 |
Derivative Contracts
The table below sets forth the Company's consolidated oil and natural gas price swaps and collars for the years 2015 and 2016 as of
Quarter Ending |
||||||||||||
3/31/2015 |
6/30/2015 |
9/30/2015 |
12/31/2015 |
FY2015 | ||||||||
Oil (MMBbls) |
||||||||||||
Swap Volume |
2.29 |
1.73 |
1.01 |
0.55 |
5.59 | |||||||
Swap |
\\$92.71 |
\\$91.55 |
\\$92.43 |
\\$94.11 |
\\$92.44 | |||||||
Three-way Collar Volume |
0.72 |
0.73 |
1.56 |
1.56 |
4.58 | |||||||
Call Price |
\\$103.13 |
\\$103.13 |
\\$103.65 |
\\$103.65 |
\\$103.48 | |||||||
Put Price |
\\$90.82 |
\\$90.82 |
\\$90.03 |
\\$90.03 |
\\$90.28 | |||||||
Short Put Price |
\\$73.13 |
\\$73.13 |
\\$78.15 |
\\$78.15 |
\\$76.56 | |||||||
Natural Gas (Bcf) |
||||||||||||
Swap Volume |
14.40 |
1.82 |
1.84 |
1.84 |
19.90 | |||||||
Swap |
\\$4.62 |
\\$4.20 |
\\$4.20 |
\\$4.20 |
\\$4.51 | |||||||
Collar Volume |
0.25 |
0.25 |
0.25 |
0.25 |
1.01 | |||||||
Collar: High |
\\$8.55 |
\\$8.55 |
\\$8.55 |
\\$8.55 |
\\$8.55 | |||||||
Collar: Low |
\\$4.00 |
\\$4.00 |
\\$4.00 |
\\$4.00 |
\\$4.00 | |||||||
Natural Gas Basis (Bcf) |
||||||||||||
Swap Volume |
9.65 |
15.47 |
15.64 |
15.64 |
56.40 | |||||||
Swap |
(0.29) |
(0.30) |
(0.30) |
(0.30) |
(0.30) | |||||||
Quarter Ending |
||||||||||||
3/31/2016 |
6/30/2016 |
9/30/2016 |
12/31/2016 |
FY2016 | ||||||||
Oil (MMBbls) |
||||||||||||
Swap Volume |
0.36 |
0.36 |
0.37 |
0.37 |
1.46 | |||||||
Swap |
\\$88.36 |
\\$88.36 |
\\$88.36 |
\\$88.36 |
\\$88.36 | |||||||
Three-way Collar Volume |
0.91 |
0.91 |
0.37 |
0.37 |
2.56 | |||||||
Call Price |
\\$101.35 |
\\$101.35 |
\\$99.63 |
\\$99.63 |
\\$100.85 | |||||||
Put Price |
\\$90.00 |
\\$90.00 |
\\$90.00 |
\\$90.00 |
\\$90.00 | |||||||
Short Put Price |
\\$83.39 |
\\$83.39 |
\\$82.50 |
\\$82.50 |
\\$83.14 | |||||||
Natural Gas (Bcf) |
||||||||||||
Swap Volume |
- |
- |
- |
- |
- | |||||||
Swap |
- |
- |
- |
- |
- | |||||||
Collar Volume |
- |
- |
- |
- |
- | |||||||
Collar: High |
- |
- |
- |
- |
- | |||||||
Collar: Low |
- |
- |
- |
- |
- | |||||||
Natural Gas Basis (Bcf) |
||||||||||||
Swap Volume |
2.73 |
2.73 |
2.76 |
2.76 |
10.98 | |||||||
Swap |
(0.38) |
(0.38) |
(0.38) |
(0.38) |
(0.38) |
Balance Sheet
The Company's capital structure at
September 30, |
December 31, | ||||||
2015 |
2014 | ||||||
(in thousands) | |||||||
Cash and cash equivalents |
\\$ 790,142 |
\\$ 181,253 | |||||
Current maturities of long-term debt |
\\$ - |
\\$ - | |||||
Long-term debt (net of current maturities) |
|||||||
8.75% Senior Secured Notes due 2020 |
1,250,000 |
- | |||||
Senior Unsecured Notes |
|||||||
8.75% Senior Notes due 2020, net |
401,149 |
445,402 | |||||
7.5% Senior Notes due 2021 |
996,309 |
1,178,486 | |||||
8.125% Senior Notes due 2022 |
601,187 |
750,000 | |||||
7.5% Senior Notes due 2023, net |
622,923 |
821,548 | |||||
Convertible Senior Unsecured Notes |
|||||||
8.125% Convertible Senior Notes due 2022, net |
36,406 |
- | |||||
7.5% Convertible Senior Notes due 2023, net |
29,020 |
- | |||||
Total debt |
3,936,994 |
3,195,436 | |||||
Stockholders' (deficit) equity |
|||||||
Preferred stock |
6 |
6 | |||||
Common stock |
542 |
477 | |||||
Additional paid-in capital |
5,267,725 |
5,201,524 | |||||
Treasury stock, at cost |
(6,876) |
(6,980) | |||||
Accumulated deficit |
(6,328,118) |
(3,257,202) | |||||
Total SandRidge Energy, Inc. stockholders' (deficit) equity |
(1,066,721) |
1,937,825 | |||||
Noncontrolling interest |
663,451 |
1,271,995 | |||||
Total capitalization |
\\$ 3,533,724 |
\\$ 6,405,256 |
Pro Forma Capitalization
The Company's capital structure at
Actual as of |
Actual as of |
Pro forma (1) | |||
June 30, 2015 |
September 30, 2015 |
September 30, 2015 | |||
(in millions) | |||||
Cash |
\\$ 984 |
\\$ 790 |
\\$ 699 | ||
\\$500 million Revolving Credit Facility (undrawn) |
- |
- |
- | ||
8.75% Senior Secured 2nd Lien Notes due 2020 |
1,250 |
1,250 |
1,328 | ||
Total Secured Debt |
\\$ 1,250 |
\\$ 1,250 |
\\$ 1,328 | ||
Unsecured Debt |
|||||
8.75% Senior Notes due 2020 |
450 |
405 |
396 | ||
7.5% Senior Notes due 2021 |
1,146 |
994 |
758 | ||
8.125% Senior Notes due 2022 |
729 |
601 |
528 | ||
7.5% Senior Notes due 2023 |
825 |
625 |
544 | ||
Convertible Debt |
|||||
8.125% Convertible Senior Notes due 2022 |
- |
139 |
311 | ||
7.5% Convertible Senior Notes due 2023 |
- |
114 |
138 | ||
Total Unsecured Debt |
\\$ 3,150 |
\\$ 2,878 |
\\$ 2,674 | ||
Total Debt |
\\$ 4,400 |
\\$ 4,128 |
\\$ 4,002 | ||
8.5% Convertible Perpetual Preferred Stock |
265 |
265 |
265 | ||
7.0% Convertible Perpetual Preferred Stock |
300 |
300 |
278 | ||
Total Preferred Stock |
\\$ 565 |
\\$ 565 |
\\$ 543 |
Note: All amounts based on par value | |||||
(1)Pro forma as of September 30, 2015: | |||||
(a) October 8, 2015 buyback & exchange: \\$100 million unsecured debt repurchase, \\$300 million unsecured convertible exchange | |||||
(b) Unsecured conversions: \\$126 million total unsecured debt voluntary conversions submitted prior to October 31, 2015 | |||||
(c) Preferred conversions: \\$22 million of preferred voluntary conversions | |||||
(d) Pi?on Gathering: Repurchased gathering system for \\$48 million cash plus \\$78 million par value 2nd Lien |
2015 Operational Guidance
The Company is raising its 2015 production guidance. Additionally, the Company is lowering its LOE, Production Tax and DD&A guidance. Additional 2015 Guidance detail is available on the Company's website, www.sandridgeenergy.com, under Investor Relations/Financial Information/Guidance.
Total Company |
Mid-Continent | |||||||||
Projection as of |
Projection as of |
Projection as of |
Projection as of | |||||||
August 5, 2015 |
November 4, 2015 |
August 5, 2015 |
November 4, 2015 | |||||||
Production |
||||||||||
Oil (MMBbls) |
9.3 - 10.0 |
9.3 - 10.0 |
7.9 - 8.6 |
7.9 - 8.6 | ||||||
Natural Gas Liquids (MMBbls) |
4.6 - 5.0 |
4.9 - 5.0 |
4.5 - 4.9 |
4.8 - 4.9 | ||||||
Total Liquids (MMBbls) |
13.9 - 15.0 |
14.2 - 15.0 |
12.4 - 13.5 |
12.7 - 13.5 | ||||||
Natural Gas (Bcf) |
90.5 - 93.5 |
91.8 - 93.5 |
78.4 - 81.4 |
79.7 - 81.4 | ||||||
Total (MMBoe) |
29.0 - 30.5 |
29.5 - 30.5 |
25.5 - 27.0 |
26.0 - 27.0 | ||||||
Price Realization |
||||||||||
Oil (differential below NYMEX WTI) |
\\$3.75 |
\\$3.75 |
||||||||
Natural Gas Liquids (realized % of NYMEX WTI) |
30% |
30% |
||||||||
Natural Gas (differential below NYMEX Henry Hub) |
\\$0.75 |
\\$0.75 |
||||||||
Costs per Boe |
||||||||||
Lifting |
\\$11.50 - \\$12.50 |
\\$10.50 - \\$11.50 |
\\$8.75 - \\$9.75 |
\\$7.95 - \\$8.95 | ||||||
Production Taxes |
0.60 - 0.80 |
0.55 - 0.65 |
||||||||
DD&A - oil & gas |
11.00 - 12.00 |
10.60 - 10.90 |
||||||||
DD&A - other |
1.75 - 1.95 |
1.65 - 1.85 |
||||||||
Total DD&A |
\\$12.75 - \\$13.95 |
\\$12.25 - \\$12.75 |
||||||||
G&A - cash |
3.00 - 3.50 |
3.00 - 3.50 |
||||||||
G&A - stock |
0.50 - 0.75 |
0.50 - 0.75 |
||||||||
Total G&A |
\\$3.50 - \\$4.25 |
\\$3.50 - \\$4.25 |
||||||||
EBITDA from Oilfield Services and Other (\\$ in millions) (1) |
\\$10 |
\\$10 |
||||||||
Adjusted Net Income Attributable to Noncontrolling Interest (\\$ in millions) (2) |
\\$60 |
\\$60 |
||||||||
Adjusted EBITDA Attributable to Noncontrolling Interest (\\$ in millions) (3) |
\\$90 |
\\$90 |
||||||||
Capital Expenditures (\\$ in millions) |
||||||||||
Exploration and Production |
\\$612 |
\\$612 |
||||||||
Land and Geophysical |
38 |
38 |
||||||||
Total Exploration and Production |
\\$650 |
\\$650 |
||||||||
Oil Field Services |
5 |
5 |
||||||||
Electrical/Midstream |
30 |
30 |
||||||||
General Corporate |
15 |
15 |
||||||||
Total Capital Expenditures (excluding acquisitions) |
\\$700 |
\\$700 |
||||||||
(1) |
EBITDA from Oilfield Services and Other is a non-GAAP financial measure as it excludes from net income interest expense, income tax expense and depreciation, depletion and amortization. The most directly comparable GAAP measure for EBITDA from Oilfield Services and Other is Net Income from Oilfield Services and Other. Information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to forecast the excluded items for future periods and/or does not forecast the excluded items on a segment basis. | |||||||||
(2) |
Adjusted Net Income Attributable to Noncontrolling Interest is a non-GAAP financial measure as it excludes gain or loss due to changes in fair value of derivative contracts and gain or loss on sale of assets. The most directly comparable GAAP measure for Adjusted Net Income Attributable to Noncontrolling Interest is Net Income Attributable to Noncontrolling Interest. Information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to forecast the excluded items for future periods. | |||||||||
(3) |
Adjusted EBITDA Attributable to Noncontrolling Interest is a non-GAAP financial measure as it excludes from net income interest expense, income tax expense, depreciation, depletion and amortization, gain or loss due to changes in fair value of derivative contracts and gain or loss on sale of assets. The most directly comparable GAAP measure for Adjusted EBITDA Attributable to Noncontrolling Interest is Net Income Attributable to Noncontrolling Interest. Information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to forecast the excluded items for future periods. | |||||||||
Non-GAAP Financial Measures
Adjusted operating cash flow, adjusted EBITDA, pro forma adjusted EBITDA, adjusted net (loss) income, and adjusted net income attributable to noncontrolling interest are non-GAAP financial measures.
The Company defines adjusted operating cash flow as net cash provided by operating activities before changes in operating assets and liabilities and adjusted for cash paid on financing derivatives. It defines EBITDA as net loss (income) before income tax expense (benefit), interest expense and depreciation, depletion and amortization and accretion of asset retirement obligations. Adjusted EBITDA, as presented herein, is EBITDA excluding asset impairment, interest income, gain on derivative contracts net of cash received (paid) on settlement of derivative contracts, loss (gain) on sale of assets, legal settlements, severance, oil field services – Permian exit costs, gain on extinguishment of debt and other various items (including non-cash portion of noncontrolling interest and stock-based compensation). Pro forma adjusted EBITDA, as presented herein, is adjusted EBITDA excluding adjusted EBITDA attributable to properties or subsidiaries sold during the period.
Adjusted operating cash flow and adjusted EBITDA are supplemental financial measures used by the Company's management and by securities analysts, investors, lenders, rating agencies and others who follow the industry as an indicator of the Company's ability to internally fund exploration and development activities and to service or incur additional debt. The Company also uses these measures because adjusted operating cash flow and adjusted EBITDA relate to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. Further, adjusted operating cash flow and adjusted EBITDA allow the Company to compare its operating performance and return on capital with those of other companies without regard to financing methods and capital structure. These measures should not be considered in isolation or as a substitute for net cash provided by operating activities prepared in accordance with generally accepted accounting principles ("GAAP"). Adjusted EBITDA should not be considered as a substitute for net income, operating income, cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA excludes some, but not all, items that affect net income and operating income and these measures may vary among other companies. Therefore, the Company's adjusted EBITDA may not be comparable to similarly titled measures used by other companies.
Management also uses the supplemental financial measure of adjusted net (loss) income, which excludes asset impairment, gain on derivative contracts net of cash received (paid) on settlement of derivative contracts, gain on convertible notes derivative liabilities, loss (gain) on sale of assets, severance, oil field services – Permian exit costs, gain on extinguishment of debt and other non-cash items from loss applicable to common stockholders. Management uses this financial measure as an indicator of the Company's operational trends and performance relative to other oil and natural gas companies and believes it is more comparable to earnings estimates provided by securities analysts. Adjusted net (loss) income is not a measure of financial performance under GAAP and should not be considered a substitute for loss applicable to common stockholders.
The supplemental measure of adjusted net income attributable to noncontrolling interest is used by the Company's management to measure the impact on the Company's financial results of the ownership by third parties of interests in the Company's less than wholly-owned consolidated subsidiaries. Adjusted net income attributable to noncontrolling interest excludes the portion of asset impairment and (gain) loss on derivative contracts net of cash received (paid) on settlement of derivative contracts attributable to third party ownership in less than wholly-owned consolidated subsidiaries from net (loss) income attributable to noncontrolling interest. Adjusted net income attributable to noncontrolling interest is not a measure of financial performance under GAAP and should not be considered a substitute for net (loss) income attributable to noncontrolling interest.
The supplemental measures of pro forma cash and cash equivalents and pro forma debt as presented herein are cash and cash equivalents and debt adjusted for issuances, repurchases and conversions into common stock of debt subsequent to period end.
The tables below reconcile the most directly comparable GAAP financial measures to operating cash flow, EBITDA and adjusted EBITDA, adjusted net (loss) income available to common stockholders, adjusted net income attributable to noncontrolling interest, pro forma cash and cash equivalents and pro forma debt.
Reconciliation of Cash Provided by Operating Activities to Adjusted Operating Cash Flow | |||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities |
\\$41,892 |
\\$164,892 |
\\$360,886 |
\\$395,684 | |||||||
(Deduct) add |
|||||||||||
Cash paid on financing derivatives |
- |
- |
- |
(44,128) | |||||||
Changes in operating assets and liabilities |
2,673 |
37,881 |
(59,084) |
157,615 | |||||||
Adjusted operating cash flow |
\\$44,565 |
\\$202,773 |
\\$301,802 |
\\$509,171 |
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA | |||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||
(in thousands) | |||||||||||
Net (loss) income |
\\$(640,412) |
\\$157,338 |
\\$(3,043,847) |
\\$ (11,892) | |||||||
Adjusted for |
|||||||||||
Income tax expense (benefit) |
25 |
(1,064) |
90 |
(2,131) | |||||||
Interest expense |
77,501 |
59,893 |
214,198 |
184,234 | |||||||
Depreciation and amortization - other |
11,379 |
14,417 |
37,234 |
45,350 | |||||||
Depreciation and depletion - oil and natural gas |
66,501 |
112,569 |
266,906 |
325,021 | |||||||
Accretion of asset retirement obligations |
1,132 |
1,116 |
3,323 |
7,927 | |||||||
EBITDA |
(483,874) |
344,269 |
(2,522,096) |
548,509 | |||||||
Asset impairment |
1,074,588 |
54 |
3,647,845 |
167,966 | |||||||
Interest income |
(501) |
(110) |
(629) |
(545) | |||||||
Stock-based compensation |
3,203 |
3,438 |
9,294 |
12,010 | |||||||
Gain on derivative contracts |
(42,211) |
(132,575) |
(59,034) |
(4,792) | |||||||
Cash received (paid) upon settlement of derivative contracts (1) |
67,258 |
3,445 |
278,581 |
(23,382) | |||||||
Loss (gain) on sale of assets |
6,771 |
(995) |
2,097 |
(978) | |||||||
Legal settlements |
5,122 |
- |
4,994 |
23 | |||||||
Severance |
1,290 |
5 |
11,819 |
8,927 | |||||||
Oil field services - Permian exit costs |
62 |
- |
4,353 |
- | |||||||
Gain on extinguishment of debt |
(340,699) |
- |
(358,633) |
- | |||||||
Other |
935 |
841 |
3,676 |
(322) | |||||||
Non-cash portion of noncontrolling interest (2) |
(174,304) |
6,594 |
(561,969) |
(58,518) | |||||||
Adjusted EBITDA |
\\$ 117,640 |
\\$224,966 |
\\$ 460,298 |
\\$648,898 | |||||||
Less: EBITDA attributable to Gulf of Mexico properties |
- |
- |
- |
(53,376) | |||||||
Pro forma adjusted EBITDA |
\\$ 117,640 |
\\$224,966 |
\\$ 460,298 |
\\$595,522 | |||||||
(1) |
Excludes amounts paid upon early settlement of derivative contracts for the nine months ended September 30, 2014. | ||||||||||
(2) |
Represents depreciation and depletion, impairment, (gain) loss on commodity derivative contracts net of cash received (paid) on settlement and income tax expense attributable to noncontrolling interests. |
Reconciliation of Cash Provided by Operating Activities to Adjusted EBITDA | |||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities |
\\$ 41,892 |
\\$164,892 |
\\$360,886 |
\\$395,684 | |||||||
Changes in operating assets and liabilities |
2,673 |
37,881 |
(59,084) |
157,615 | |||||||
Interest expense |
77,501 |
59,893 |
214,199 |
184,234 | |||||||
Cash paid on early settlement of derivative contracts |
- |
- |
- |
25,434 | |||||||
Cash paid on early conversion of convertible notes |
2,709 |
- |
2,709 |
- | |||||||
Gain on convertible notes derivative liability |
10,146 |
- |
10,146 |
- | |||||||
Legal settlements |
5,122 |
- |
4,994 |
23 | |||||||
Severance |
1,156 |
(168) |
7,004 |
6,775 | |||||||
Oil field services - Permian exit costs |
62 |
- |
4,275 |
- | |||||||
Noncontrolling interest - SDT (1) |
(6,619) |
(5,670) |
(19,237) |
(17,361) | |||||||
Noncontrolling interest - SDR (1) |
(4,918) |
(9,201) |
(16,277) |
(32,251) | |||||||
Noncontrolling interest - PER (1) |
(6,694) |
(18,697) |
(33,212) |
(58,635) | |||||||
Noncontrolling interest - Other (1) |
- |
- |
- |
(4) | |||||||
Other |
(5,390) |
(3,964) |
(16,105) |
(12,616) | |||||||
Adjusted EBITDA |
\\$117,640 |
\\$224,966 |
\\$460,298 |
\\$648,898 |
(1) |
Excludes depreciation and depletion, impairment, (gain) loss on commodity derivative contracts net of cash received (paid) on settlement and income tax expense attributable to noncontrolling interests. |
Reconciliation of (Loss Applicable) Income Available to Common Stockholders to Adjusted Net (Loss) Income Available to Common Stockholders | |||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||
(in thousands) | |||||||||||
(Loss applicable) income available to common stockholders |
\\$(649,526) |
\\$145,957 |
\\$(3,070,916) |
\\$ (51,036) | |||||||
Tax benefit adjustment |
- |
(1,160) |
- |
(1,160) | |||||||
Asset impairment (1) |
907,834 |
54 |
3,127,684 |
138,093 | |||||||
Gain on derivative contracts (1) |
(38,438) |
(116,719) |
(53,926) |
(7,608) | |||||||
Cash received (paid) upon settlement of derivative contracts (1) |
60,342 |
4,079 |
249,665 |
(18,501) | |||||||
Gain on convertible notes derivative liability |
(10,146) |
- |
(10,146) |
- | |||||||
Loss (gain) on sale of assets |
6,771 |
(995) |
2,097 |
(978) | |||||||
Legal settlements |
5,122 |
- |
4,994 |
23 | |||||||
Severance |
1,290 |
5 |
11,819 |
8,927 | |||||||
Oil field services - Permian exit costs |
62 |
- |
4,353 |
- | |||||||
Gain on extinguishment of debt |
(340,699) |
- |
(358,633) |
- | |||||||
Other |
(160) |
305 |
1,903 |
(968) | |||||||
Effect of income taxes |
19 |
55 |
76 |
3,235 | |||||||
Adjusted net (loss) income available to common stockholders |
(57,529) |
31,581 |
(91,030) |
70,027 | |||||||
Preferred stock dividends |
9,114 |
11,381 |
27,069 |
39,144 | |||||||
Effect of convertible debt, net of income taxes |
2,918 |
- |
2,918 |
- | |||||||
Total adjusted net (loss) income |
\\$ (45,497) |
\\$ 42,962 |
\\$ (61,043) |
\\$109,171 | |||||||
Weighted average number of common shares outstanding |
|||||||||||
Basic |
526,388 |
485,458 |
500,077 |
485,194 | |||||||
Diluted (2) |
641,526 |
575,912 |
586,424 |
578,125 | |||||||
Total adjusted net (loss) income |
|||||||||||
Per share - basic |
\\$ (0.11) |
\\$ 0.07 |
\\$ (0.18) |
\\$ 0.14 | |||||||
Per share - diluted |
\\$ (0.07) |
\\$ 0.07 |
\\$ (0.10) |
\\$ 0.19 |
(1) |
Excludes amounts attributable to noncontrolling interests. | ||||||||||
(2) |
Weighted average fully diluted common shares outstanding for certain periods presented includes shares that are considered antidilutive for calculating earnings per share in accordance with GAAP. |
Reconciliation of Net (Loss) Income Attributable to Noncontrolling Interest to Adjusted Net Income Attributable to Noncontrolling Interest | |||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | ||||||||||
2015 |
2014 |
2015 |
2014 | ||||||||
(in thousands) | |||||||||||
Net (loss) income attributable to noncontrolling interest |
\\$(156,073) |
\\$40,162 |
\\$(493,243) |
\\$49,733 | |||||||
Asset impairment |
166,754 |
- |
520,161 |
29,873 | |||||||
(Gain) loss on derivative contracts |
(3,773) |
(15,856) |
(5,108) |
2,816 | |||||||
Cash received (paid) on settlement of derivative contracts |
6,916 |
(634) |
28,916 |
(4,881) | |||||||
Adjusted net income attributable to noncontrolling interest |
\\$ 13,824 |
\\$23,672 |
\\$ 50,726 |
\\$77,541 |
Pro Forma Cash and Cash Equivalents | |||||||
September 30, |
|||||||
2015 |
|||||||
(in millions) |
|||||||
Cash and cash equivalents |
\\$ 790 |
||||||
Acquisition of Pi?on Gathering System - October 2015 |
(48) |
||||||
Repurchase of Senior Unsecured Notes - October 2015 |
(30) |
||||||
Conversion of Senior Convertible Unsecured Notes - October 2015 (1) |
(13) |
||||||
Pro forma - cash and cash equivalents |
\\$ 699 |
||||||
(1) Submitted prior to October 31, 2015 |
|||||||
Pro Forma Debt | |||||||
September 30, |
|||||||
2015 |
|||||||
(in millions) |
|||||||
Total debt (par value) |
\\$ 4,128 |
||||||
Acquisition of Pi?on Gathering System - October 2015 |
78 |
||||||
Repurchase of Senior Unsecured Notes (par value) - October 2015 |
(100) |
||||||
Conversion of Senior Convertible Unsecured Notes (par value) - October 2015 (1)(2) |
(104) |
||||||
Pro forma - total debt (par value) |
\\$ 4,002 |
||||||
(1) Submitted prior to October 31, 2015 |
|||||||
(2) Payments for accrued interest and early conversion |
Conference Call Information
The Company will host a conference call to discuss these results on
A live audio webcast of the conference call will also be available via SandRidge's website, www.sandridgeenergy.com, under Investor Relations/Presentations & Events. The webcast will be archived for replay on the Company's website for 30 days.
Fourth Quarter 2015 Earnings Release and Conference Call
SandRidge Energy, Inc. and Subsidiaries | ||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||
(In thousands, except per share data) | ||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||
2015 |
2014 |
2015 |
2014 | |||||||||
(unaudited) | ||||||||||||
Revenues |
||||||||||||
Oil, natural gas and NGL |
\\$ 165,135 |
\\$359,613 |
\\$ 575,399 |
\\$1,104,835 | ||||||||
Drilling and services |
4,572 |
21,348 |
19,658 |
57,280 | ||||||||
Midstream and marketing |
8,838 |
11,922 |
26,208 |
44,706 | ||||||||
Other |
1,607 |
1,224 |
3,802 |
5,056 | ||||||||
Total revenues |
180,152 |
394,107 |
625,067 |
1,211,877 | ||||||||
Expenses |
||||||||||||
Production |
72,884 |
82,664 |
244,158 |
256,473 | ||||||||
Production taxes |
3,652 |
8,380 |
12,548 |
24,027 | ||||||||
Cost of sales |
4,323 |
15,992 |
22,034 |
38,942 | ||||||||
Midstream and marketing |
6,633 |
11,405 |
22,464 |
40,659 | ||||||||
Depreciation and depletion - oil and natural gas |
66,501 |
112,569 |
266,906 |
325,021 | ||||||||
Depreciation and amortization - other |
11,379 |
14,417 |
37,234 |
45,350 | ||||||||
Accretion of asset retirement obligations |
1,132 |
1,116 |
3,323 |
7,927 | ||||||||
Impairment |
1,074,588 |
54 |
3,647,845 |
167,966 | ||||||||
General and administrative |
34,233 |
24,589 |
108,764 |
95,042 | ||||||||
Gain on derivative contracts |
(42,211) |
(132,575) |
(59,034) |
(4,792) | ||||||||
Loss (gain) on sale of assets |
6,771 |
(995) |
2,097 |
(978) | ||||||||
Total expenses |
1,239,885 |
137,616 |
4,308,339 |
995,637 | ||||||||
(Loss) income from operations |
(1,059,733) |
256,491 |
(3,683,272) |
216,240 | ||||||||
Other (expense) income |
||||||||||||
Interest expense |
(77,000) |
(59,783) |
(213,569) |
(183,689) | ||||||||
Gain on extinguishment of debt |
340,699 |
- |
358,633 |
- | ||||||||
Other (expense) income, net |
(426) |
(273) |
1,208 |
3,159 | ||||||||
Total other income (expense) |
263,273 |
(60,056) |
146,272 |
(180,530) | ||||||||
(Loss) income before income taxes |
(796,460) |
196,435 |
(3,537,000) |
35,710 | ||||||||
Income tax expense (benefit) |
25 |
(1,064) |
90 |
(2,131) | ||||||||
Net (loss) income |
(796,485) |
197,499 |
(3,537,090) |
37,841 | ||||||||
Less: net (loss) income attributable to noncontrolling interest |
(156,073) |
40,161 |
(493,243) |
49,733 | ||||||||
Net (loss) income attributable to SandRidge Energy, Inc. |
(640,412) |
157,338 |
(3,043,847) |
(11,892) | ||||||||
Preferred stock dividends |
9,114 |
11,381 |
27,069 |
39,144 | ||||||||
(Loss applicable) income available to SandRidge Energy, Inc. |
||||||||||||
common stockholders |
\\$ (649,526) |
\\$145,957 |
\\$(3,070,916) |
\\$ (51,036) | ||||||||
(Loss) income per share |
||||||||||||
Basic |
\\$ (1.23) |
\\$ 0.30 |
\\$ (6.14) |
\\$ (0.11) | ||||||||
Diluted |
\\$ (1.23) |
\\$ 0.27 |
\\$ (6.14) |
\\$ (0.11) | ||||||||
Weighted average number of common shares outstanding |
||||||||||||
Basic |
526,388 |
485,458 |
500,077 |
485,194 | ||||||||
Diluted |
526,388 |
575,911 |
500,077 |
485,194 |
SandRidge Energy, Inc. and Subsidiaries | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands, except per share data) | ||||||||
September 30, 2015 |
December 31, 2014 | |||||||
(unaudited) | ||||||||
ASSETS |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
\\$ 790,142 |
\\$ 181,253 | ||||||
Accounts receivable, net |
198,205 |
330,077 | ||||||
Derivative contracts |
103,317 |
291,414 | ||||||
Prepaid expenses |
11,308 |
7,981 | ||||||
Other current assets |
6,025 |
21,193 | ||||||
Total current assets |
1,108,997 |
831,918 | ||||||
Oil and natural gas properties, using full cost method of accounting |
||||||||
Proved |
12,302,551 |
11,707,147 | ||||||
Unproved |
260,657 |
290,596 | ||||||
Less: accumulated depreciation, depletion and impairment |
(10,235,369) |
(6,359,149) | ||||||
2,327,839 |
5,638,594 | |||||||
Other property, plant and equipment, net |
507,247 |
576,463 | ||||||
Derivative contracts |
16,249 |
47,003 | ||||||
Other assets |
142,750 |
165,247 | ||||||
Total assets |
\\$ 4,103,082 |
\\$ 7,259,225 | ||||||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY |
||||||||
Current liabilities |
||||||||
Accounts payable and accrued expenses |
\\$ 445,045 |
\\$ 683,392 | ||||||
Derivative contracts |
369 |
- | ||||||
Deferred tax liability |
51,126 |
95,843 | ||||||
Other current liabilities |
- |
5,216 | ||||||
Total current liabilities |
496,540 |
784,451 | ||||||
Long-term debt |
3,936,994 |
3,195,436 | ||||||
Derivative contracts |
326 |
- | ||||||
Asset retirement obligations |
58,121 |
54,402 | ||||||
Other long-term obligations |
14,371 |
15,116 | ||||||
Total liabilities |
4,506,352 |
4,049,405 | ||||||
Commitments and contingencies |
||||||||
Equity |
||||||||
SandRidge Energy, Inc. stockholders' (deficit) equity |
||||||||
Preferred stock, \\$0.001 par value, 50,000 shares authorized |
||||||||
8.5% Convertible perpetual preferred stock; 2,650 shares issued and outstanding at September 30, 2015 and December 31, 2014; aggregate liquidation preference of \\$265,000 |
||||||||
3 |
3 | |||||||
7.0% Convertible perpetual preferred stock; 3,000 shares issued and outstanding at September 30, 2015 and December 31, 2014; aggregate liquidation preference of \\$300,000 |
||||||||
3 |
3 | |||||||
Common stock, \\$0.001 par value; 1,800,000 shares authorized, 547,718 issued and 546,157 outstanding at September 30, 2015; 800,000 shares authorized, 485,932 issued and 484,819 outstanding at December 31, 2014 |
542 |
477 | ||||||
Additional paid-in capital |
5,270,225 |
5,204,024 | ||||||
Additional paid-in capital - stockholder receivable |
(2,500) |
(2,500) | ||||||
Treasury stock, at cost |
(6,876) |
(6,980) | ||||||
Accumulated deficit |
(6,328,118) |
(3,257,202) | ||||||
Total SandRidge Energy, Inc. stockholders' (deficit) equity |
(1,066,721) |
1,937,825 | ||||||
Noncontrolling interest |
663,451 |
1,271,995 | ||||||
Total stockholders' (deficit) equity |
(403,270) |
3,209,820 | ||||||
Total liabilities and stockholders' (deficit) equity |
\\$ 4,103,082 |
\\$ 7,259,225 |
SandRidge Energy, Inc. and Subsidiaries | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(In thousands) | ||||||||
Nine Months Ended September 30, | ||||||||
2015 |
2014 | |||||||
(unaudited) | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net (loss) income |
\\$(3,537,090) |
\\$ 37,841 | ||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities |
||||||||
Depreciation, depletion and amortization |
304,140 |
370,371 | ||||||
Accretion of asset retirement obligations |
3,323 |
7,927 | ||||||
Impairment |
3,647,845 |
167,966 | ||||||
Debt issuance costs amortization |
8,324 |
7,045 | ||||||
Amortization of discount, net of premium, on long-term debt |
1,053 |
394 | ||||||
Gain on extinguishment of debt |
(358,633) |
- | ||||||
Write off of debt issuance costs |
7,108 |
- | ||||||
Gain on convertible notes derivative liability |
(10,146) |
- | ||||||
Cash paid on early conversion of convertible notes |
(2,708) |
- | ||||||
Gain on derivative contracts |
(59,034) |
(4,792) | ||||||
Cash received (paid) on settlement of derivative contracts |
278,581 |
(48,816) | ||||||
Loss (gain) on sale of assets |
2,097 |
(978) | ||||||
Stock-based compensation |
15,170 |
15,853 | ||||||
Other |
1,772 |
488 | ||||||
Changes in operating assets and liabilities |
59,084 |
(157,615) | ||||||
Net cash provided by operating activities |
360,886 |
395,684 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Capital expenditures for property, plant and equipment |
(761,905) |
(1,071,465) | ||||||
Acquisitions of assets |
(3,231) |
(16,920) | ||||||
Proceeds from sale of assets |
35,387 |
714,294 | ||||||
Net cash used in investing activities |
(729,749) |
(374,091) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Proceeds from borrowings |
2,190,000 |
- | ||||||
Repayments of borrowings |
(1,034,466) |
- | ||||||
Debt issuance costs |
(48,021) |
- | ||||||
Proceeds from the sale of royalty trust units |
- |
22,119 | ||||||
Noncontrolling interest distributions |
(115,301) |
(150,440) | ||||||
Acquisition of ownership interest |
- |
(2,730) | ||||||
Stock-based compensation excess tax benefit |
- |
14 | ||||||
Purchase of treasury stock |
(3,198) |
(8,278) | ||||||
Repurchase of common stock |
- |
(17,542) | ||||||
Dividends paid - preferred |
(11,262) |
(45,025) | ||||||
Cash paid on settlement of financing derivative contracts |
- |
(44,128) | ||||||
Net cash provided by (used in) financing activities |
977,752 |
(246,010) | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
608,889 |
(224,417) | ||||||
CASH AND CASH EQUIVALENTS, beginning of year |
181,253 |
814,663 | ||||||
CASH AND CASH EQUIVALENTS, end of period |
\\$ 790,142 |
\\$ 590,246 | ||||||
Supplemental Disclosure of Cash Flow Information |
||||||||
Cash paid for interest, net of amounts capitalized |
\\$ (213,578) |
\\$ (209,939) | ||||||
Cash paid for income taxes |
\\$ (95) |
\\$ (543) | ||||||
Supplemental Disclosure of Noncash Investing and Financing Activities |
||||||||
Change in accrued capital expenditures |
\\$ 160,853 |
\\$ (49,072) | ||||||
Equity issued for debt |
\\$ (35,147) |
\\$ - | ||||||
Preferred stock dividends paid in common stock |
\\$ (16,188) |
\\$ - |
For further information, please contact:
Duane M. Grubert
EVP – Investor Relations and Strategy
123 Robert S. Kerr Avenue
(405) 429-5515
Cautionary Note to Investors - This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, the information appearing under the heading "Operational Guidance." These statements express a belief, expectation or intention and are generally accompanied by words that convey projected future events or outcomes. The forward-looking statements include projections and estimates of the Company's corporate strategies, future operations, net income and EBITDA, drilling plans, oil, and natural gas and natural gas liquids production, price realizations and differentials, reserves, operating, general and administrative and other costs, capital expenditures, tax rates, efficiency and cost reduction initiative outcomes, infrastructure utilization and investment, and development plans and appraisal programs. We have based these forward-looking statements on our current expectations and assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. However, whether actual results and developments will conform with our expectations and predictions is subject to a number of risks and uncertainties, including the volatility of oil and natural gas prices, our success in discovering, estimating, developing and replacing oil and natural gas reserves, actual decline curves and the actual effect of adding compression to natural gas wells, the availability and terms of capital, the ability of counterparties to transactions with us to meet their obligations, our timely execution of hedge transactions, credit conditions of global capital markets, changes in economic conditions, the amount and timing of future development costs, the availability and demand for alternative energy sources, regulatory changes, including those related to carbon dioxide and greenhouse gas emissions, and other factors, many of which are beyond our control. We refer you to the discussion of risk factors in Part I, Item 1A - "Risk Factors" of our Annual Report on Form 10-K for the year ended
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