Exhibit 99.2
CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 3 months ending September 30, 2015 and 2014
| 3rd Quarter | ||||||||||||
(in thousands, except per share data) | 2015 | 2014 | Change | |||||||||
Revenues | ||||||||||||
Oil, natural gas liquids and natural gas sales | $ | 188,398 | $ | 350,773 | $ | (162,375 | ) | |||||
Gain on derivative instruments, net | 107,173 | 147,735 | (40,562 | ) | ||||||||
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Total revenues | 295,571 | 498,508 | (202,937 | ) | ||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 54,598 | 67,720 | (13,122 | ) | ||||||||
Production and ad valorem taxes | 13,366 | 25,729 | (12,363 | ) | ||||||||
Depreciation, depletion and amortization | 149,781 | 139,104 | 10,677 | |||||||||
Asset impairment | 399,394 | 178,912 | 220,482 | |||||||||
Exploration | 493 | 8,417 | (7,924 | ) | ||||||||
General and administrative | 23,631 | 27,784 | (4,153 | ) | ||||||||
Accretion of discount on asset retirement obligations | 1,700 | 1,924 | (224 | ) | ||||||||
Loss on sale of assets and other | 822 | 747 | 75 | |||||||||
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Total costs and expenses | 643,785 | 450,337 | 193,448 | |||||||||
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Operating Income (Loss) | (348,214 | ) | 48,171 | (396,385 | ) | |||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (10,084 | ) | (11,522 | ) | 1,438 | |||||||
Other income | 56 | 37 | 19 | |||||||||
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Total other expense | (10,028 | ) | (11,485 | ) | 1,457 | |||||||
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Income (Loss) From Continuing Operations Before Income Taxes | (358,242 | ) | 36,686 | (394,928 | ) | |||||||
Income tax expense (benefit) | (130,338 | ) | 16,055 | (146,393 | ) | |||||||
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Income (Loss) From Continuing Operations | (227,904 | ) | 20,631 | (248,535 | ) | |||||||
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Discontinued Operations, net of tax | ||||||||||||
Loss from discontinued operations | — | (3,485 | ) | 3,485 | ||||||||
Gain on disposal of discontinued operations | — | 440,105 | (440,105 | ) | ||||||||
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Income From Discontinued Operations | — | 436,620 | (436,620 | ) | ||||||||
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Net Income (Loss) | $ | (227,904 | ) | $ | 457,251 | $ | (685,155 | ) | ||||
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Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | (2.89 | ) | $ | 0.28 | $ | (3.17 | ) | ||||
Discontinued operations | — | 5.94 | (5.94 | ) | ||||||||
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Net Income (Loss) | $ | (2.89 | ) | $ | 6.22 | $ | (9.11 | ) | ||||
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Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | (2.89 | ) | 0.28 | $ | (3.17 | ) | |||||
Discontinued operations | — | 5.98 | (5.98 | ) | ||||||||
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Net Income (Loss) | $ | (2.89 | ) | $ | 6.26 | $ | (9.15 | ) | ||||
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Diluted Avg. Common Shares Outstanding | 78,742 | 73,507 | 5,235 | |||||||||
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Basic Avg. Common Shares Outstanding | 78,742 | 73,093 | 5,649 | |||||||||
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Dividends Per Common Share | $ | 0.02 | $ | 0.15 | $ | (0.13 | ) | |||||
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CONSOLIDATED STATEMENTSOF INCOME (UNAUDITED)
For the 9 months ending September 30, 2015 and 2014
| Year-to-date | ||||||||||||
(in thousands, except per share data) | 2015 | 2014 | Change | |||||||||
Revenues | ||||||||||||
Oil, natural gas liquids and natural gas sales | $ | 595,510 | $ | 1,057,447 | $ | (461,937 | ) | |||||
Gain on derivative instruments, net | 90,245 | 9,498 | 80,747 | |||||||||
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Total revenues | 685,755 | 1,066,945 | (381,190 | ) | ||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 175,933 | 199,861 | (23,928 | ) | ||||||||
Production and ad valorem taxes | 45,783 | 81,102 | (35,319 | ) | ||||||||
Depreciation, depletion and amortization | 434,005 | 399,568 | 34,437 | |||||||||
Asset impairment | 466,390 | 181,500 | 284,890 | |||||||||
Exploration | 12,274 | 21,218 | (8,944 | ) | ||||||||
General and administrative | 94,338 | 93,499 | 839 | |||||||||
Accretion of discount on asset retirement obligations | 5,379 | 5,650 | (271 | ) | ||||||||
(Gain) loss on sale of assets and other | (26,046 | ) | 1,809 | (27,855 | ) | |||||||
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Total costs and expenses | 1,208,056 | 984,207 | 223,849 | |||||||||
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Operating Income (Loss) | (522,301 | ) | 82,738 | (605,039 | ) | |||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (33,086 | ) | (27,374 | ) | (5,712 | ) | ||||||
Other income | 143 | 1,047 | (904 | ) | ||||||||
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Total other expense | (32,943 | ) | (26,327 | ) | (6,616 | ) | ||||||
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Income (Loss) From Continuing Operations Before Income Taxes | (555,244 | ) | 56,411 | (611,655 | ) | |||||||
Income tax expense (benefit) | (200,319 | ) | 23,287 | (223,606 | ) | |||||||
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Income (Loss) From Continuing Operations | (354,925 | ) | 33,124 | (388,049 | ) | |||||||
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Discontinued Operations, net of tax | ||||||||||||
Income from discontinued operations | — | 30,435 | (30,435 | ) | ||||||||
Gain on disposal of discontinued operations | — | 439,055 | (439,055 | ) | ||||||||
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Income From Discontinued Operations | — | 469,490 | (469,490 | ) | ||||||||
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Net Income (Loss) | $ | (354,925 | ) | $ | 502,614 | $ | (857,539 | ) | ||||
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Diluted Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | (4.72 | ) | $ | 0.45 | $ | (5.17 | ) | ||||
Discontinued operations | — | 6.41 | (6.41 | ) | ||||||||
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Net Income (Loss) | $ | (4.72 | ) | $ | 6.86 | $ | (11.58 | ) | ||||
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Basic Earnings Per Average Common Share | ||||||||||||
Continuing operations | $ | (4.72 | ) | $ | 0.45 | $ | (5.17 | ) | ||||
Discontinued operations | — | 6.45 | (6.45 | ) | ||||||||
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Net Income (Loss) | $ | (4.72 | ) | $ | 6.90 | $ | (11.62 | ) | ||||
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Diluted Avg. Common Shares Outstanding | 75,125 | 73,238 | 1,887 | |||||||||
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Basic Avg. Common Shares Outstanding | 75,125 | 72,861 | 2,264 | |||||||||
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Dividends Per Common Share | $ | 0.06 | $ | 0.45 | $ | (0.39 | ) | |||||
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of September 30, 2015 and December 31, 2014
(in thousands) | September 30, 2015 | December 31, 2014 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 701 | $ | 1,852 | ||||
Accounts receivable, net of allowance | 99,297 | 157,678 | ||||||
Inventories | 18,184 | 14,251 | ||||||
Assets held for sale | — | 395,797 | ||||||
Derivative instruments | 153,816 | 322,337 | ||||||
Prepayments and other | 12,667 | 27,445 | ||||||
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Total current assets | 284,665 | 919,360 | ||||||
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Property, Plant and Equipment | ||||||||
Oil and natural gas properties, net | 5,182,497 | 5,152,748 | ||||||
Other property and equipment, net | 48,739 | 46,389 | ||||||
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Total property, plant and equipment, net | 5,231,236 | 5,199,137 | ||||||
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Other assets | 15,646 | 19,761 | ||||||
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TOTAL ASSETS | $ | 5,531,547 | $ | 6,138,258 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 79,623 | $ | 101,453 | ||||
Accrued taxes | 27,555 | 5,530 | ||||||
Accrued wages and benefits | 25,103 | 21,553 | ||||||
Accrued capital costs | 101,486 | 207,461 | ||||||
Revenue and royalty payable | 58,480 | 72,047 | ||||||
Liabilities related to assets held for sale | — | 24,230 | ||||||
Pension liabilities | 29,789 | 24,609 | ||||||
Deferred income taxes | 9,908 | 79,164 | ||||||
Derivative instruments | 3,079 | 988 | ||||||
Other | 13,513 | 23,288 | ||||||
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Total current liabilities | 348,536 | 560,323 | ||||||
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Long-term debt | 750,081 | 1,038,563 | ||||||
Asset retirement obligations | 100,781 | 94,060 | ||||||
Deferred income taxes | 853,360 | 1,000,486 | ||||||
Noncurrent derivative instruments | 2,924 | — | ||||||
Other long-term liabilities | 10,968 | 30,222 | ||||||
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Total liabilities | 2,066,650 | 2,723,654 | ||||||
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Total Shareholders’ Equity | 3,464,897 | 3,414,604 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,531,547 | $ | 6,138,258 | ||||
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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending September 30, 2015 and 2014
| 3rd 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 | $ | 160,531 | $ | 260,447 | $ | (99,916 | ) | |||||
Natural gas liquids | 11,001 | 31,259 | (20,258 | ) | ||||||||
Natural gas | 16,866 | 59,067 | (42,201 | ) | ||||||||
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Total | $ | 188,398 | $ | 350,773 | $ | (162,375 | ) | |||||
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Open non-cash mark-to-market gains (losses) on derivative instruments | ||||||||||||
Oil | $ | 5,760 | $ | 128,346 | $ | (122,586 | ) | |||||
Natural gas liquids | — | 1,276 | (1,276 | ) | ||||||||
Natural gas | (6,924 | ) | 17,665 | (24,589 | ) | |||||||
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Total | $ | (1,164 | ) | $ | 147,287 | $ | (148,451 | ) | ||||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | 98,072 | $ | (6,012 | ) | $ | 104,084 | |||||
Natural gas liquids | — | 873 | (873 | ) | ||||||||
Natural gas | 10,265 | 5,587 | 4,678 | |||||||||
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Total | $ | 108,337 | $ | 448 | $ | 107,889 | ||||||
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Total revenues | $ | 295,571 | $ | 498,508 | $ | (202,937 | ) | |||||
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Production volumes | ||||||||||||
Oil (MBbl) | 3,610 | 3,017 | 593 | |||||||||
Natural gas liquids (MMgal) | 44.4 | 46.5 | (2.1 | ) | ||||||||
Natural gas (MMcf) | 7,362 | 15,156 | (7,794 | ) | ||||||||
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Total production volumes (MBOE) | 5,893 | 6,651 | (758 | ) | ||||||||
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Average daily production volumes | ||||||||||||
Oil (MBbl/d) | 39.2 | 32.8 | 6.4 | |||||||||
Natural gas liquids (MMgal/d) | 0.5 | 0.5 | — | |||||||||
Natural gas (MMcf/d) | 80.0 | 164.7 | (84.7 | ) | ||||||||
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Total average daily production volumes (MBOE/d) | 64.1 | 72.3 | (8.2 | ) | ||||||||
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Average realized prices excluding effects of open non-cash mark-to-market derivative instruments | ||||||||||||
Oil (per barrel) | $ | 71.64 | $ | 84.33 | $ | (12.69 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.25 | $ | 0.69 | $ | (0.44 | ) | |||||
Natural gas (per Mcf) | $ | 3.69 | �� | $ | 4.27 | $ | (0.58 | ) | ||||
Average realized prices excluding effects of all derivative instruments | ||||||||||||
Oil (per barrel) | $ | 44.47 | $ | 86.33 | $ | (41.86 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.25 | $ | 0.67 | $ | (0.42 | ) | |||||
Natural gas (per Mcf) | $ | 2.29 | $ | 3.90 | $ | (1.61 | ) | |||||
Costs per BOE | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 9.26 | $ | 10.18 | $ | (0.92 | ) | |||||
Production and ad valorem taxes | $ | 2.27 | $ | 3.87 | $ | (1.60 | ) | |||||
Depreciation, depletion and amortization | $ | 25.42 | $ | 20.91 | $ | 4.51 | ||||||
Exploration expense | $ | 0.08 | $ | 1.27 | $ | (1.19 | ) | |||||
General and administrative* | $ | 4.01 | $ | 4.18 | $ | (0.17 | ) | |||||
Net capital expenditures | $ | 230,900 | $ | 356,725 | $ | (125,825 | ) | |||||
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| * | Includes pension and pension settlement expenses of $0.16 and $0.53 for the three months ended September 30, 2015 and 2014, respectively. |
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 9 months ending September 30, 2015 and 2014
| Year-to-date | ||||||||||||
(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 | $ | 491,158 | $ | 776,952 | $ | (285,794 | ) | |||||
Natural gas liquids | 36,616 | 90,625 | (54,009 | ) | ||||||||
Natural gas | 67,736 | 189,870 | (122,134 | ) | ||||||||
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Total | $ | 595,510 | $ | 1,057,447 | $ | (461,937 | ) | |||||
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Open non-cash mark-to-market gains (losses) on derivative instruments | ||||||||||||
Oil | $ | (149,743 | ) | $ | 40,710 | $ | (190,453 | ) | ||||
Natural gas liquids | — | 1,603 | (1,603 | ) | ||||||||
Natural gas | (27,939 | ) | 11,672 | (39,611 | ) | |||||||
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Total | $ | (177,682 | ) | $ | 53,985 | $ | (231,667 | ) | ||||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | 230,885 | $ | (46,568 | ) | $ | 277,453 | |||||
Natural gas liquids | — | 1,228 | (1,228 | ) | ||||||||
Natural gas | 37,042 | 853 | 36,189 | |||||||||
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Total | $ | 267,927 | $ | (44,487 | ) | $ | 312,414 | |||||
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Total revenues | $ | 685,755 | $ | 1,066,945 | $ | (381,190 | ) | |||||
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Production volumes | ||||||||||||
Oil (MBbl) | 10,439 | 8,601 | 1,838 | |||||||||
Natural gas liquids (MMgal) | 125.5 | 129.2 | (3.7 | ) | ||||||||
Natural gas (MMcf) | 27,774 | 43,956 | (16,182 | ) | ||||||||
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Total production volumes (MBOE) | 18,055 | 19,003 | (948 | ) | ||||||||
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Average daily production volumes | ||||||||||||
Oil (MBbl/d) | 38.2 | 31.5 | 6.7 | |||||||||
Natural gas liquids (MMgal/d) | 0.5 | 0.5 | — | |||||||||
Natural gas (MMcf/d) | 101.7 | 161.0 | (59.30 | ) | ||||||||
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Total average daily production volumes (MBOE/d) | 66.1 | 69.6 | (3.50 | ) | ||||||||
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Average realized prices excluding effects of open non-cash mark-to-market derivative instruments | ||||||||||||
Oil (per barrel) | $ | 69.17 | $ | 84.92 | $ | (15.75 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.29 | $ | 0.71 | $ | (0.42 | ) | |||||
Natural gas (per Mcf) | $ | 3.77 | $ | 4.34 | $ | (0.57 | ) | |||||
Average realized prices excluding effects of all derivative instruments | ||||||||||||
Oil (per barrel) | $ | 47.05 | $ | 90.33 | $ | (43.28 | ) | |||||
Natural gas liquids (per gallon) | $ | 0.29 | $ | 0.70 | $ | (0.41 | ) | |||||
Natural gas (per Mcf) | $ | 2.44 | $ | 4.32 | $ | (1.88 | ) | |||||
Costs per BOE | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 9.75 | $ | 10.52 | $ | (0.77 | ) | |||||
Production and ad valorem taxes | $ | 2.54 | $ | 4.27 | $ | (1.73 | ) | |||||
Depreciation, depletion and amortization | $ | 24.04 | $ | 21.03 | $ | 3.01 | ||||||
Exploration expense | $ | 0.68 | $ | 1.12 | $ | (0.44 | ) | |||||
General and administrative* | $ | 5.23 | $ | 4.92 | $ | 0.31 | ||||||
Net capital expenditures | $ | 891,491 | $ | 950,993 | $ | (59,502 | ) | |||||
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| * | Includes pension and pension settlement expenses of $0.28 and $0.71 for the nine months ended September 30, 2015 and 2014, respectively. |