Exhibit 99.1
ITEM 6.SELECTED FINANCIAL DATA
The historical financial data presented in the table below as of and for each of the years in the five-year period ended December 31, 2008 are derived from our consolidated financial statements. The financial results are not necessarily indicative of our future operations or future financial results. The data presented below should be read in conjunction with our consolidated financial statements and the notes thereto and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” During 2008, we divested our interests in offshore operations, which were conducted through our subsidiary Bois d’Arc Energy, Inc. (“Bois d’Arc Energy”). Accordingly, we have adjusted the presentation of selected financial data to reflect the offshore operations on a discontinued basis.
The selected financial data below has been restated in all years for the adoption of Statement of Financial Accounting Standards 160, “Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51” (“SFAS 160”). SFAS 160 requires reporting entities to present noncontrolling minority interests as a component of stockholder’s equity instead of as a liability and provides guidance on the accounting for transactions between an entity and noncontrolling interests. As a result of the implementation of SFAS 160, $220.3 million and $267.4 million relating to the noncontrolling interest in Bois d’Arc Energy, Inc. as of December 31, 2006 and 2007, respectively, has been reclassified from liabilities to noncontrolling interests within stockholder’s equity. We sold our interest in Bois d’Arc Energy during 2008, and as a result, there were no noncontrolling interests as of December 31, 2008.
The selected financial data below has also been restated for the adoption of Financial Accounting Standards Board Staff Position Emerging Issues Task Force No. 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities” (“FSP EITF 03-6-1”). Under FSP EITF 03-6-1, unvested share-based payment awards with rights to receive non-forfeitable dividends (whether paid or unpaid) are participating securities that must be included in determining basic and diluted earnings per share. From time to time we grant shares of restricted stock to certain of our executives and key employees, which grants are dividend bearing and considered participating securities under this new standard. We adopted FSP EITF No. 03-6-1 as of January 1, 2009 and basic and diluted earnings per share have been restated to include the effect of these shares of restricted stock. The effect of adoption on each year is presented in the table below:
Year Ended December 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
Increase (decrease) from previously reported amounts | ||||||||||||||||||||
Basic net income per share: | ||||||||||||||||||||
Continuing operations | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.04 | ) | |||||
Discontinued operations | (0.01 | ) | — | (0.01 | ) | (0.02 | ) | (0.12 | ) | |||||||||||
$ | (0.03 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.16 | ) | ||||||
Diluted net income per share: | ||||||||||||||||||||
Continuing operations | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.02 | ) | |||||
Discontinued operations | — | (0.01 | ) | 0.01 | 0.01 | (0.05 | ) | |||||||||||||
$ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.07 | ) | ||||||
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Statement of Operations Data:
Year Ended December 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Oil and gas sales | $ | 172,668 | $ | 264,806 | $ | 257,218 | $ | 331,613 | $ | 563,749 | ||||||||||
Gain on sale of assets | — | — | — | — | 26,560 | |||||||||||||||
Total revenues | 172,668 | 264,806 | 257,218 | 331,613 | 590,309 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Oil and gas operating(1) | 31,628 | 44,267 | 53,903 | 64,791 | 86,730 | |||||||||||||||
Exploration | 6,581 | 16,899 | 1,424 | 7,039 | 5,032 | |||||||||||||||
Depreciation, depletion and amortization | 37,075 | 53,123 | 75,278 | 125,349 | 182,179 | |||||||||||||||
Impairment of oil and gas properties | 1,648 | 3,400 | 8,812 | 482 | 922 | |||||||||||||||
General and administrative, net | 11,439 | 14,686 | 20,395 | 27,813 | 32,266 | |||||||||||||||
Total operating expenses | 88,371 | 132,375 | �� | 159,812 | 225,474 | 307,129 | ||||||||||||||
Income from operations | 84,297 | 132,431 | 97,406 | 106,139 | 283,180 | |||||||||||||||
Other income (expenses): | ||||||||||||||||||||
Interest income | 92 | 388 | 682 | 877 | 1,537 | |||||||||||||||
Other income | 156 | 209 | 184 | 144 | 119 | |||||||||||||||
Interest expense | (16,947 | ) | (20,266 | ) | (20,733 | ) | (32,293 | ) | (25,336 | ) | ||||||||||
Loss on early extinguishment of debt | (19,599 | ) | — | — | — | — | ||||||||||||||
Marketable securities impairment | — | — | — | — | (162,672 | )(2) | ||||||||||||||
Gain (loss) from derivatives | (155 | ) | (13,556 | ) | 10,716 | — | — | |||||||||||||
Total other income (expense) | (36,453 | ) | (33,225 | ) | (9,151 | ) | (31,272 | ) | (186,352 | ) | ||||||||||
Income from continuing operations before income taxes | 47,844 | 99,206 | 88,255 | 74,867 | 96,828 | |||||||||||||||
Provision for income taxes | (17,464 | ) | (36,525 | ) | (34,190 | ) | (29,223 | ) | (38,611 | ) | ||||||||||
Income from continuing operations | 30,380 | 62,681 | 54,065 | 45,644 | 58,217 | |||||||||||||||
Income (loss) from discontinued operations | 16,487 | (2,202 | ) | 16,600 | 23,257 | 193,745 | (3) | |||||||||||||
Net income | $ | 46,867 | $ | 60,479 | $ | 70,665 | $ | 68,901 | $ | 251,962 | ||||||||||
Basic net income per share: | ||||||||||||||||||||
Continuing operations | $ | 0.87 | $ | 1.57 | $ | 1.25 | $ | 1.03 | $ | 1.27 | ||||||||||
Discontinued operations | 0.47 | (0.06 | ) | 0.38 | 0.52 | 4.23 | ||||||||||||||
$ | 1.34 | $ | 1.51 | $ | 1.63 | $ | 1.55 | $ | 5.50 | |||||||||||
Diluted net income per share: | ||||||||||||||||||||
Continuing operations | $ | 0.83 | $ | 1.51 | $ | 1.22 | $ | 1.01 | $ | 1.26 | ||||||||||
Discontinued operations | 0.45 | (0.06 | ) | 0.38 | 0.52 | 4.20 | ||||||||||||||
$ | 1.28 | $ | 1.45 | $ | 1.60 | $ | 1.53 | $ | 5.46 | |||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 34,187 | 39,216 | 42,220 | 43,415 | 44,524 | |||||||||||||||
Diluted | 36,070 | 40,852 | 43,252 | 44,080 | 44,813 | |||||||||||||||
(1) | Includes lease operating costs and production and ad valorem taxes. | |
(2) | Unrealized loss before income taxes representing impairment on shares of common stock of Stone Energy Corporation. | |
(3) | Includes gain of $158.1 million, net of income taxes of $85.3 million, from the sale of our offshore operations. |
Balance Sheet Data:
As of December 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,256 | $ | 89 | $ | 1,228 | $ | 5,565 | $ | 6,281 | ||||||||||
Property and equipment, net | 455,085 | 706,928 | 917,854 | 1,310,559 | 1,444,715 | |||||||||||||||
Net assets of discontinued operations | 443,532 | 252,258 | 913,478 | 981,682 | — | |||||||||||||||
Total assets | 941,477 | 1,016,663 | 1,878,125 | 2,354,387 | 1,577,890 | |||||||||||||||
Total debt | 403,000 | 243,000 | 355,000 | 680,000 | 210,000 | |||||||||||||||
Stockholders’ equity | 355,853 | 582,859 | 902,912 | 1,039,085 | 1,062,085 |
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Cash Flow Data:
Year Ended December 31, | ||||||||||||||||||||
2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows provided by operating activities from continuing operations | $ | 92,836 | $ | 173,193 | $ | 186,169 | $ | 201,539 | $ | 450,533 | ||||||||||
Cash flows used for investing activities from continuing operations | (169,462 | ) | (327,234 | ) | (281,505 | ) | (531,493 | ) | (289,194 | ) | ||||||||||
Cash flows provided by (used for) financing activities from continuing operations | 87,460 | 2,127 | 132,882 | 334,357 | (452,883 | ) | ||||||||||||||
Cash flows provided by (used for) discontinued operations | (14,921 | ) | 150,747 | (36,407 | ) | (66 | ) | 292,260 |
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