Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending March 31, 2015 and 2014
1st Quarter | ||||||||||||
(in thousands, except per share data) | 2015 | 2014 | Change | |||||||||
Revenues | ||||||||||||
Oil, natural gas liquids and natural gas sales | $ | 187,822 | $ | 350,822 | $ | (163,000 | ) | |||||
Gain (loss) on derivative instruments, net | 34,036 | (53,391 | ) | 87,427 | ||||||||
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Total revenues | 221,858 | 297,431 | (75,573 | ) | ||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 67,754 | 67,444 | 310 | |||||||||
Production and ad valorem taxes | 19,065 | 27,324 | (8,259 | ) | ||||||||
Depreciation, depletion and amortization | 134,381 | 124,220 | 10,161 | |||||||||
Asset impairment | 6,583 | 1,246 | 5,337 | |||||||||
Exploration | 763 | 11,568 | (10,805 | ) | ||||||||
General and administrative | 32,055 | 32,173 | (118 | ) | ||||||||
Accretion of discount on asset retirement obligations | 2,010 | 1,843 | 167 | |||||||||
(Gain) loss on sale of assets and other | (28,344 | ) | 153 | (28,497 | ) | |||||||
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Total costs and expenses | 234,267 | 265,971 | (31,704 | ) | ||||||||
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Operating Income (Loss) | (12,409 | ) | 31,460 | (43,869 | ) | |||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (11,758 | ) | (7,888 | ) | (3,870 | ) | ||||||
Other income | 46 | 323 | (277 | ) | ||||||||
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Total other expense | (11,712 | ) | (7,565 | ) | (4,147 | ) | ||||||
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Income (Loss) From Continuing Operations Before Income Taxes | (24,121 | ) | 23,895 | (48,016 | ) | |||||||
Income tax expense (benefit) | (8,701 | ) | 8,248 | (16,949 | ) | |||||||
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Income (Loss) From Continuing Operations | (15,420 | ) | 15,647 | (31,067 | ) | |||||||
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Discontinued Operations, net of tax | ||||||||||||
Income from discontinued operations | — | 38,719 | (38,719 | ) | ||||||||
Loss on disposal of discontinued operations | — | (1,050 | ) | 1,050 | ||||||||
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Income From Discontinued Operations | — | 37,669 | (37,669 | ) | ||||||||
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Net Income (Loss) | $ | (15,420 | ) | $ | 53,316 | $ | (68,736 | ) | ||||
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Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | (0.21 | ) | $ | 0.21 | $ | (0.42 | ) | ||||
Discontinued operations | — | 0.52 | (0.52 | ) | ||||||||
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Net Income (Loss) | $ | (0.21 | ) | $ | 0.73 | $ | (0.94 | ) | ||||
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Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | (0.21 | ) | $ | 0.21 | $ | (0.42 | ) | ||||
Discontinued operations | — | 0.52 | (0.52 | ) | ||||||||
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Net Income (Loss) | $ | (0.21 | ) | $ | 0.73 | $ | (0.94 | ) | ||||
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Diluted Avg. Common Shares Outstanding | 72,830 | 73,045 | (215 | ) | ||||||||
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Basic Avg. Common Shares Outstanding | 72,830 | 72,629 | 201 | |||||||||
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Dividends Per Common Share | $ | 0.02 | $ | 0.15 | $ | (0.13 | ) | |||||
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1
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of March 31, 2015 and December 31, 2014
(in thousands) | March 31, 2015 | December 31, 2014 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 1,530 | $ | 1,852 | ||||
Short-term investments | 309,000 | — | ||||||
Accounts receivable, net of allowance | 137,720 | 157,678 | ||||||
Inventories | 17,763 | 14,251 | ||||||
Assets held for sale | — | 395,797 | ||||||
Derivative instruments | 272,675 | 322,337 | ||||||
Prepayments and other | 18,009 | 27,445 | ||||||
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Total current assets | 756,697 | 919,360 | ||||||
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Property, Plant and Equipment | ||||||||
Oil and natural gas properties, net | 5,410,933 | 5,152,748 | ||||||
Other property and equipment, net | 46,248 | 46,389 | ||||||
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Total property, plant and equipment, net | 5,457,181 | 5,199,137 | ||||||
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Other assets | 14,865 | 19,761 | ||||||
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TOTAL ASSETS | $ | 6,228,743 | $ | 6,138,258 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 97,563 | $ | 101,453 | ||||
Accrued taxes | 17,199 | 5,530 | ||||||
Accrued wages and benefits | 16,089 | 21,553 | ||||||
Accrued capital costs | 159,026 | 207,461 | ||||||
Revenue and royalty payable | 66,761 | 72,047 | ||||||
Liabilities related to assets held for sale | — | 24,230 | ||||||
Pension liabilities | 29,442 | 24,609 | ||||||
Deferred income taxes | 53,867 | 79,164 | ||||||
Derivative instruments | 12,870 | 988 | ||||||
Other | 17,658 | 23,288 | ||||||
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Total current liabilities | 470,475 | 560,323 | ||||||
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Long-term debt | 1,238,569 | 1,038,563 | ||||||
Asset retirement obligations | 97,315 | 94,060 | ||||||
Deferred income taxes | 1,010,770 | 1,000,486 | ||||||
Noncurrent derivative instruments | 1,018 | — | ||||||
Other long-term liabilities | 11,419 | 30,222 | ||||||
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Total liabilities | 2,829,566 | 2,723,654 | ||||||
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Total Shareholders’ Equity | 3,399,177 | 3,414,604 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 6,228,743 | $ | 6,138,258 | ||||
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2
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending March 31, 2015 and 2014
1st Quarter | ||||||||||||
(in thousands, except sales price and per unit data) | 2015 | 2014 | Change | |||||||||
Operating and production data from continuing operations | ||||||||||||
Oil, natural gas liquids and natural gas sales | ||||||||||||
Oil | $ | 142,028 | $ | 253,759 | $ | (111,731 | ) | |||||
Natural gas liquids | 10,834 | 28,203 | (17,369 | ) | ||||||||
Natural gas | 34,960 | 68,860 | (33,900 | ) | ||||||||
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Total | $ | 187,822 | $ | 350,822 | $ | (163,000 | ) | |||||
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Open non-cash mark-to-market gains (losses) on derivative instruments | ||||||||||||
Oil | $ | (51,769 | ) | $ | (21,464 | ) | $ | (30,305 | ) | |||
Natural gas liquids | — | 287 | (287 | ) | ||||||||
Natural gas | (7,882 | ) | (12,504 | ) | 4,622 | |||||||
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Total | $ | (59,651 | ) | $ | (33,681 | ) | $ | (25,970 | ) | |||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | 77,483 | $ | (14,802 | ) | $ | 92,285 | |||||
Natural gas liquids | — | 196 | (196 | ) | ||||||||
Natural gas | 16,204 | (5,104 | ) | 21,308 | ||||||||
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Total | $ | 93,687 | $ | (19,710 | ) | $ | 113,397 | |||||
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Total revenues | $ | 221,858 | $ | 297,431 | $ | (75,573 | ) | |||||
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Production volumes | ||||||||||||
Oil (MBbl) | 3,235 | 2,751 | 484 | |||||||||
Natural gas liquids (MMgal) | 36.2 | 37.9 | (1.7 | ) | ||||||||
Natural gas (MMcf) | 13,278 | 14,124 | (846 | ) | ||||||||
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Total production volumes (MBOE) | 6,309 | 6,008 | 301 | |||||||||
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Average daily production volumes | ||||||||||||
Oil (MBbl/d) | 35.9 | 30.6 | 5.3 | |||||||||
Natural gas liquids (MMgal/d) | 0.4 | 0.4 | 0.0 | |||||||||
Natural gas (MMcf/d) | 147.5 | 156.9 | (9.4 | ) | ||||||||
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Total average daily production volumes (MBOE/d) | 70.1 | 66.8 | 3.3 | |||||||||
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Average realized prices excluding effects of open non-cash mark-to-market derivative instruments | ||||||||||||
Oil (per barrel) | $ | 67.86 | $ | 86.86 | $ | (19.00 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.30 | $ | 0.75 | $ | (0.45 | ) | |||||
Natural gas (per Mcf) | $ | 3.85 | $ | 4.51 | $ | (0.66 | ) | |||||
Average realized prices excluding effects of all derivative instruments | ||||||||||||
Oil (per barrel) | $ | 43.90 | $ | 92.24 | $ | (48.34 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.30 | $ | 0.74 | $ | (0.44 | ) | |||||
Natural gas (per Mcf) | $ | 2.63 | $ | 4.88 | $ | (2.25 | ) | |||||
Costs per BOE | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 10.74 | $ | 11.23 | $ | (0.49 | ) | |||||
Production and ad valorem taxes | $ | 3.02 | $ | 4.55 | $ | (1.53 | ) | |||||
Depreciation, depletion and amortization | $ | 21.30 | $ | 20.68 | $ | 3.04 | ||||||
Exploration expense | $ | 0.12 | $ | 1.93 | $ | (1.81 | ) | |||||
General and administrative | $ | 5.08 | $ | 5.36 | $ | (0.28 | ) | |||||
Net capital expenditures | $ | 375,827 | $ | 271,696 | $ | 104,131 | ||||||
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3