Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending September 30, 2014 and 2013
3rd Quarter | ||||||||||||
(in thousands, except per share data) | 2014 | 2013 | Change | |||||||||
Revenues | ||||||||||||
Oil, natural gas liquids and natural gas sales | $ | 350,773 | $ | 360,507 | $ | (9,734 | ) | |||||
Gain (loss) on derivative instruments, net Loss on sale of assets and other |
| 147,735 (747 | ) |
| (88,192 (277 | ) ) |
| 235,927 (470 | ) | |||
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Total revenues | 497,761 | 272,038 | 225,723 | |||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 67,720 | 65,795 | 1,925 | |||||||||
Production and ad valorem taxes | 25,729 | 22,230 | 3,499 | |||||||||
Depreciation, depletion and amortization | 139,104 | 124,911 | 14,193 | |||||||||
Asset impairment | 179,074 | — | 179,074 | |||||||||
Exploration | 8,255 | 8,949 | (694 | ) | ||||||||
General and administrative Accretion of discount on asset retirement obligations |
| 27,784 1,924 |
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| 30,947 1,771 |
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| (3,163 153 | )
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Total costs and expenses | 449,590 | 254,603 | 194,987 | |||||||||
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Operating Income | 48,171 | 17,435 | 30,736 | |||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (11,522 | ) | (10,149 | ) | (1,373 | ) | ||||||
Other income | 37 | 1,249 | (1,212 | ) | ||||||||
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Total other expense | (11,485 | ) | (8,900 | ) | (2,585 | ) | ||||||
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Income From Continuing Operations Before Income Taxes | 36,686 | 8,535 | 28,151 | |||||||||
Income tax expense | 16,055 | 3,128 | 12,927 | |||||||||
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Income From Continuing Operations | 20,631 | 5,407 | 15,224 | |||||||||
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Discontinued Operations, net of tax | ||||||||||||
Loss from discontinued operations | (3,485 | ) | (9,027 | ) | 5,542 | |||||||
Gain (loss) on disposal of discontinued operations | 440,105 | (15,678 | ) | 455,783 | ||||||||
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Income (Loss) From Discontinued Operations | 436,620 | (24,705 | ) | 461,325 | ||||||||
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Net Income (Loss) | $ | 457,251 | $ | (19,298 | ) | $ | 476,549 | |||||
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Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.28 | $ | 0.07 | $ | 0.21 | ||||||
Discontinued operations | 5.94 | (0.34 | ) | 6.28 | ||||||||
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Net Income (Loss) | $ | 6.22 | $ | (0.27 | ) | $ | 6.49 | |||||
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Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.28 | $ | 0.07 | $ | 0.21 | ||||||
Discontinued operations | 5.98 | (0.34 | ) | 6.32 | ||||||||
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Net Income (Loss) | $ | 6.26 | $ | (0.27 | ) | $ | 6.53 | |||||
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Diluted Avg. Common Shares Outstanding | 73,507 | 72,346 | 1,161 | |||||||||
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Basic Avg. Common Shares Outstanding | 73,093 | 72,346 | 747 | |||||||||
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Dividends Per Common Share | $ | 0.150 | $ | 0.145 | $ | 0.005 | ||||||
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1
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 9 months ending September 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 | $ | 1,057,447 | $ | 927,746 | $ | 129,701 | ||||||
Gain (loss) on derivative instruments, net Loss on sale of assets and other |
| 9,498 (1,809 | ) |
| (51,904 (492 | ) ) |
| 61,402 (1,317 | ) | |||
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Total revenues | 1,065,136 | 875,350 | 189,786 | |||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 199,861 | 190,944 | 8,917 | |||||||||
Production and ad valorem taxes | 81,102 | 69,109 | 11,993 | |||||||||
Depreciation, depletion and amortization | 399,568 | 332,247 | 67,321 | |||||||||
Asset impairment | 179,074 | — | 179,074 | |||||||||
Exploration | 23,644 | 13,902 | 9,742 | |||||||||
General and administrative Accretion of discount on asset retirement obligations |
| 93,499 5,650 |
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| 86,699 5,187 |
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| 6,800 463 |
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Total costs and expenses | 982,398 | 698,088 | 284,310 | |||||||||
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Operating Income | 82,738 | 177,262 | (94,524 | ) | ||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (27,374 | ) | (30,232 | ) | 2,858 | |||||||
Other income | 1,047 | 2,619 | (1,572 | ) | ||||||||
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Total other expense | (26,327 | ) | (27,613 | ) | 1,286 | |||||||
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Income From Continuing Operations Before Income Taxes | 56,411 | 149,649 | (93,238 | ) | ||||||||
Income tax expense | 23,287 | 53,401 | (30,114 | ) | ||||||||
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Income From Continuing Operations | 33,124 | 96,248 | (63,124 | ) | ||||||||
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Discontinued Operations, net of tax | ||||||||||||
Income from discontinued operations | 30,435 | 39,891 | (9,456 | ) | ||||||||
Gain (loss) on disposal of discontinued operations | 439,055 | (15,678 | ) | 454,733 | ||||||||
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Income From Discontinued Operations | 469,490 | 24,213 | 445,277 | |||||||||
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Net Income | $ | 502,614 | $ | 120,461 | $ | 382,153 | ||||||
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Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.45 | $ | 1.33 | $ | (0.88 | ) | |||||
Discontinued operations | 6.41 | 0.34 | 6.07 | |||||||||
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Net Income | $ | 6.86 | $ | 1.67 | $ | 5.19 | ||||||
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Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | 0.45 | $ | 1.33 | $ | (0.88 | ) | |||||
Discontinued operations | 6.45 | 0.34 | 6.11 | |||||||||
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Net Income | $ | 6.90 | $ | 1.67 | $ | 5.23 | ||||||
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Diluted Avg. Common Shares Outstanding | 73,238 | 72,272 | 966 | |||||||||
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Basic Avg. Common Shares Outstanding | 72,861 | 72,220 | 641 | |||||||||
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Dividends Per Common Share | $ | 0.45 | $ | 0.435 | $ | 0.015 | ||||||
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2
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of September 30, 2014 and December 31, 2013
(in thousands) | September 30, 2014 | December 31, 2013 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 1,321 | $ | 2,523 | ||||
Short-term investments | 18,000 | — | ||||||
Accounts receivable, net of allowance | 185,342 | 136,334 | ||||||
Inventories | 14,373 | 11,130 | ||||||
Assets held for sale with prior period comparable | — | 1,242,872 | ||||||
Derivative instruments | 30,195 | 17,463 | ||||||
Prepayments and other | 39,289 | 31,239 | ||||||
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Total current assets | 288,520 | 1,441,561 | ||||||
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Property, Plant and Equipment | ||||||||
Oil and natural gas properties, net | 5,457,875 | 5,087,573 | ||||||
Other property and equipment, net | 43,355 | 30,515 | ||||||
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Total property, plant and equipment, net | 5,501,230 | 5,118,088 | ||||||
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Noncurrent derivative instruments | 5,758 | 5,439 | ||||||
Other assets | 37,462 | 57,124 | ||||||
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TOTAL ASSETS | $ | 5,832,970 | $ | 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 | 110,955 | 78,178 | ||||||
Accrued taxes | 227,180 | 8,201 | ||||||
Liabilities related to assets held for sale with prior period comparable | — | 831,570 | ||||||
Derivative instruments | 808 | 30,302 | ||||||
Other current liabilities | 254,495 | 193,974 | ||||||
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Total current liabilities | 593,438 | 1,691,225 | ||||||
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Long-term debt | 632,458 | 1,093,541 | ||||||
Asset retirement obligations | 115,431 | 108,533 | ||||||
Deferred income taxes | 1,074,690 | 807,614 | ||||||
Noncurrent derivative instruments | 640 | 398 | ||||||
Other long-term liabilities | 55,065 | 62,882 | ||||||
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Total liabilities | 2,471,722 | 3,764,193 | ||||||
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Total Shareholders’ Equity | 3,361,248 | 2,858,019 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,832,970 | $ | 6,622,212 | ||||
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3
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending September 30, 2014 and 2013
3rd 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 | $ | 260,447 | $ | 285,308 | $ | (24,861 | ) | |||||
Natural gas liquids | 31,259 | 24,785 | 6,474 | |||||||||
Natural gas | 59,067 | 50,414 | 8,653 | |||||||||
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Total | 350,773 | 360,507 | (9,734 | ) | ||||||||
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Loss on sale of assets and other | $ | (747 | ) | $ | (277 | ) | $ | (470 | ) | |||
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Open non-cash mark-to-market gains (losses) on derivative instruments | ||||||||||||
Oil | $ | 128,346 | $ | (63,889 | ) | $ | 192,235 | |||||
Natural gas liquids | 1,276 | (1,355 | ) | 2,631 | ||||||||
Natural gas | 17,665 | 1,684 | 15,981 | |||||||||
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Total | $ | 147,287 | $ | (63,560 | ) | $ | 210,847 | |||||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | (6,012 | ) | $ | (37,469 | ) | $ | 31,457 | ||||
Natural gas liquids | 873 | 2,862 | (1,989 | ) | ||||||||
Natural gas | 5,587 | 9,975 | (4,388 | ) | ||||||||
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Total | $ | 448 | $ | (24,632 | ) | $ | 25,080 | |||||
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Total Revenues | $ | 497,761 | $ | 272,038 | $ | 225,723 | ||||||
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Production volumes from continuing operations | ||||||||||||
Oil (MBbl) | 3,017 | 2,764 | 253 | |||||||||
Natural gas liquids (MMgal) | 46.5 | 36.7 | 9.8 | |||||||||
Natural gas (MMcf) | 15,156 | 14,868 | 288 | |||||||||
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Production volumes from continuing operations(MBOE) | 6,651 | 6,116 | 535 | |||||||||
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Total production volumes (MBOE) | 6,652 | 6,758 | (106 | ) | ||||||||
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Average realized prices excluding effects of open non-cash mark-to-market derivative instruments | ||||||||||||
Oil (per barrel) | $ | 84.33 | $ | 89.67 | $ | (5.34 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.69 | $ | 0.75 | $ | (0.06 | ) | |||||
Natural gas (per Mcf) | $ | 4.27 | $ | 4.06 | $ | 0.21 | ||||||
Average realized prices excluding derivative instruments | ||||||||||||
Oil (per barrel) | $ | 86.33 | $ | 103.22 | $ | (16.89 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.67 | $ | 0.68 | $ | (0.01 | ) | |||||
Natural gas (per Mcf) | $ | 3.90 | $ | 3.39 | $ | 0.51 | ||||||
Other costs per BOE from continuing operations | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 10.18 | $ | 10.76 | $ | (0.58 | ) | |||||
Production and ad valorem taxes | $ | 3.87 | $ | 3.63 | $ | 0.24 | ||||||
Depreciation, depletion and amortization | $ | 20.71 | $ | 20.27 | $ | 0.44 | ||||||
Exploration expense | $ | 1.24 | $ | 1.46 | $ | (0.22 | ) | |||||
General and administrative | $ | 4.18 | $ | 5.06 | $ | (0.88 | ) | |||||
Capital expenditures | $ | 356,725 | $ | 257,759 | $ | 98,966 |
4
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 9 months ending September 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 | $ | 776,952 | $ | 710,937 | $ | 66,015 | ||||||
Natural gas liquids | 90,625 | 64,311 | 26,314 | |||||||||
Natural gas | 189,870 | 152,498 | 37,372 | |||||||||
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Total | 1,057,447 | 927,746 | 129,701 | |||||||||
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Loss on sale of assets and other | $ | (1,809 | ) | $ | (492 | ) | $ | (1,317 | ) | |||
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Open non-cash mark-to-market gains (losses) on derivative instruments | ||||||||||||
Oil | $ | 40,710 | $ | (63,861 | ) | $ | 104,571 | |||||
Natural gas liquids | 1,603 | (1,208 | ) | 2,811 | ||||||||
Natural gas | 11,672 | 16,610 | (4,938 | ) | ||||||||
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Total | $ | 53,985 | $ | (48,459 | ) | $ | 102,444 | |||||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | (46,568 | ) | $ | (39,101 | ) | $ | (7,467 | ) | |||
Natural gas liquids | 1,228 | 8,453 | (7,225 | ) | ||||||||
Natural gas | 853 | 27,203 | (26,350 | ) | ||||||||
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Total | $ | (44,487 | ) | $ | (3,445 | ) | $ | (41,042 | ) | |||
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Total Revenues | $ | 1,065,136 | $ | 875,350 | $ | 189,786 | ||||||
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Production volumes from continuing operations | ||||||||||||
Oil (MBbl) | 8,601 | 7,670 | 931 | |||||||||
Natural gas liquids (MMgal) | 129.2 | 98.5 | 30.7 | |||||||||
Natural gas (MMcf) | 43,956 | 43,428 | 528 | |||||||||
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Production volumes from continuing operations(MBOE) | 19,003 | 17,253 | 1,750 | |||||||||
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Total production volumes (MBOE) | 19,168 | 19,159 | 9 | |||||||||
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Average realized prices excluding effects of open non-cash mark-to-market derivative instruments | ||||||||||||
Oil (per barrel) | $ | 84.92 | $ | 87.59 | $ | (2.67 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.71 | $ | 0.74 | $ | (0.03 | ) | |||||
Natural gas (per Mcf) | $ | 4.34 | $ | 4.14 | $ | 0.20 | ||||||
Average realized prices excluding derivative instruments | ||||||||||||
Oil (per barrel) | $ | 90.33 | $ | 92.69 | $ | (2.36 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.70 | $ | 0.65 | $ | 0.05 | ||||||
Natural gas (per Mcf) | $ | 4.32 | $ | 3.51 | $ | 0.81 | ||||||
Other costs per BOE from continuing operations | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 10.52 | $ | 11.07 | $ | (0.55 | ) | |||||
Production and ad valorem taxes | $ | 4.27 | $ | 4.00 | $ | 0.27 | ||||||
Depreciation, depletion and amortization | $ | 20.85 | $ | 19.10 | $ | 1.75 | ||||||
Exploration expense | $ | 1.24 | $ | 0.81 | $ | 0.43 | ||||||
General and administrative | $ | 4.92 | $ | 5.03 | $ | (0.11 | ) | |||||
Capital expenditures | $ | 950,993 | $ | 862,691 | $ | 88,302 |
5