Exhibit 99.2
CONSOLIDATED STATEMENTSOF OPERATIONS (UNAUDITED)
For the 3 months ending September 30, 2018 and 2017
3rd Quarter | ||||||||||||
(in thousands, except per share data) | 2018 | 2017 | Change | |||||||||
Revenues | ||||||||||||
Oil, natural gas liquids and natural gas sales | $ | 380,884 | $ | 249,114 | $ | 131,770 | ||||||
Loss on derivative instruments, net | (154,628 | ) | (57,610 | ) | (97,018 | ) | ||||||
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Total revenues | 226,256 | 191,504 | 34,752 | |||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 55,078 | 44,549 | 10,529 | |||||||||
Production and ad valorem taxes | 25,204 | 15,326 | 9,878 | |||||||||
Depreciation, depletion and amortization | 134,177 | 131,756 | 2,421 | |||||||||
Asset impairment | 178 | 100 | 78 | |||||||||
Exploration | 963 | 625 | 338 | |||||||||
General and administrative(including stock-based compensation of $5,076 and $4,713 for the three months ended September 30, 2018 and 2017, respectively) | 29,566 | 21,590 | 7,976 | |||||||||
Accretion of discount on asset retirement obligations | 1,604 | 1,473 | 131 | |||||||||
Gain on sale of assets and other, net | (191 | ) | (5,977 | ) | 5,786 | |||||||
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Total operating costs and expenses | 246,579 | 209,442 | 37,137 | |||||||||
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Operating Loss | (20,323 | ) | (17,938 | ) | (2,385 | ) | ||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (11,550 | ) | (9,985 | ) | (1,565 | ) | ||||||
Other income | 1 | 231 | (230 | ) | ||||||||
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Total other expense | (11,549 | ) | (9,754 | ) | (1,795 | ) | ||||||
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Loss Before Income Taxes | (31,872 | ) | (27,692 | ) | (4,180 | ) | ||||||
Income tax benefit | (5,300 | ) | (9,206 | ) | 3,906 | |||||||
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Net Loss | $ | (26,572 | ) | $ | (18,486 | ) | $ | (8,086 | ) | |||
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Diluted Earnings Per Average Common Share | $ | (0.27 | ) | $ | (0.19 | ) | $ | (0.08 | ) | |||
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Basic Earnings Per Average Common Share | $ | (0.27 | ) | $ | (0.19 | ) | $ | (0.08 | ) | |||
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Diluted Average Common Shares Outstanding | 97,485 | 97,198 | 287 | |||||||||
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Basic Average Common Shares Outstanding | 97,485 | 97,198 | 287 | |||||||||
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CONSOLIDATED STATEMENTSOF OPERATIONS (UNAUDITED)
For the 9 months ending September 30, 2018 and 2017
Year-to-date | ||||||||||||
(in thousands, except per share data) | 2018 | 2017 | Change | |||||||||
Revenues | ||||||||||||
Oil, natural gas liquids and natural gas sales | $ | 1,110,317 | $ | 644,212 | $ | 466,105 | ||||||
Gain (loss) on derivative instruments, net | (188,242 | ) | 45,037 | (233,279 | ) | |||||||
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Total revenues | 922,075 | 689,249 | 232,826 | |||||||||
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Operating Costs and Expenses | ||||||||||||
Oil, natural gas liquids and natural gas production | 165,671 | 129,746 | 35,925 | |||||||||
Production and ad valorem taxes | 72,505 | 41,364 | 31,141 | |||||||||
Depreciation, depletion and amortization | 392,398 | 352,957 | 39,441 | |||||||||
Asset impairment | 428 | 1,589 | (1,161 | ) | ||||||||
Exploration | 3,420 | 6,259 | (2,839 | ) | ||||||||
General and administrative(including stock-based compensation of $13,839 and $11,101 for the nine months ended September 30, 2018 and 2017, respectively) | 73,756 | 62,014 | 11,742 | |||||||||
Accretion of discount on asset retirement obligations | 4,704 | 4,330 | 374 | |||||||||
Gain on sale of assets and other, net | (34,027 | ) | (6,980 | ) | (27,047 | ) | ||||||
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Total operating costs and expenses | 678,855 | 591,279 | 87,576 | |||||||||
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Operating Income | 243,220 | 97,970 | 145,250 | |||||||||
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Other Income (Expense) | ||||||||||||
Interest expense | (32,601 | ) | (28,210 | ) | (4,391 | ) | ||||||
Other income | 693 | 1,006 | (313 | ) | ||||||||
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Total other expense | (31,908 | ) | (27,204 | ) | (4,704 | ) | ||||||
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Income Before Income Taxes | 211,312 | 70,766 | 140,546 | |||||||||
Income tax expense | 50,695 | 26,368 | 24,327 | |||||||||
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Net Income | $ | 160,617 | $ | 44,398 | $ | 116,219 | ||||||
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Diluted Earnings Per Average Common Share | $ | 1.64 | $ | 0.45 | $ | 1.19 | ||||||
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Basic Earnings Per Average Common Share | $ | 1.65 | $ | 0.46 | $ | 1.19 | ||||||
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Diluted Average Common Shares Outstanding | 98,013 | 97,678 | 335 | |||||||||
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Basic Average Common Shares Outstanding | 97,413 | 97,176 | 237 | |||||||||
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CONSOLIDATED BALANCE SHEETS (UNAUDITED)
As of September 30, 2018 and December 31, 2017
(in thousands) | September 30, 2018 | December 31, 2017 | ||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 17,057 | $ | 439 | ||||
Accounts receivable, net | 183,816 | 158,787 | ||||||
Inventories, net | 28,652 | 13,177 | ||||||
Derivative instruments | 4,226 | — | ||||||
Income tax receivable | 6,762 | 6,905 | ||||||
Prepayments and other | 5,999 | 12,085 | ||||||
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Total current assets | 246,512 | 191,393 | ||||||
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Property, Plant and Equipment | ||||||||
Oil and natural gas properties, net | 5,351,637 | 4,718,939 | ||||||
Other property and equipment, net | 43,471 | 44,581 | ||||||
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Total property, plant and equipment, net | 5,395,108 | 4,763,520 | ||||||
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Other postretirement assets | 2,590 | 2,646 | ||||||
Noncurrent income tax receivable, net | 70,716 | 70,716 | ||||||
Other assets | 9,112 | 5,620 | ||||||
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TOTAL ASSETS | $ | 5,724,038 | $ | 5,033,895 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 129,602 | $ | 75,167 | ||||
Accrued taxes | 23,509 | 2,631 | ||||||
Accrued wages and benefits | 15,416 | 26,170 | ||||||
Accrued capital costs | 150,600 | 74,909 | ||||||
Revenue and royalty payable | 65,023 | 54,072 | ||||||
Derivative instruments | 172,772 | 71,379 | ||||||
Other | 12,635 | 17,916 | ||||||
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Total current liabilities | 569,557 | 322,244 | ||||||
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Long-term debt | 953,173 | 782,861 | ||||||
Asset retirement obligations | 94,722 | 88,378 | ||||||
Noncurrent derivative instruments | 57,457 | 8,886 | ||||||
Deferred income taxes | 435,848 | 387,807 | ||||||
Other long-term liabilities | 5,398 | 5,262 | ||||||
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Total liabilities | 2,116,155 | 1,595,438 | ||||||
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Total Shareholders’ Equity | 3,607,883 | 3,438,457 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 5,724,038 | $ | 5,033,895 | ||||
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SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending September 30, 2018 and 2017
3rd Quarter | ||||||||||||
(in thousands, except sales price and per unit data) | 2018 | 2017 | Change | |||||||||
Operating and production data |
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Oil, natural gas liquids and natural gas sales | ||||||||||||
Oil | $ | 316,059 | $ | 203,281 | $ | 112,778 | ||||||
Natural gas liquids | 49,407 | 25,508 | 23,899 | |||||||||
Natural gas | 15,418 | 20,325 | (4,907 | ) | ||||||||
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Total | $ | 380,884 | $ | 249,114 | $ | 131,770 | ||||||
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Opennon-cashmark-to-market gains (losses) on derivative instruments |
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Oil | $ | (127,642 | ) | $ | (46,395 | ) | $ | (81,247 | ) | |||
Natural gas liquids | (15,386 | ) | (15,765 | ) | 379 | |||||||
Natural gas | (558 | ) | (105 | ) | (453 | ) | ||||||
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Total | $ | (143,586 | ) | $ | (62,265 | ) | $ | (81,321 | ) | |||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | (1,567 | ) | $ | 5,388 | $ | (6,955 | ) | ||||
Natural gas liquids | (10,355 | ) | (1,923 | ) | (8,432 | ) | ||||||
Natural gas | 880 | 1,190 | (310 | ) | ||||||||
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Total | $ | (11,042 | ) | $ | 4,655 | $ | (15,697 | ) | ||||
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Total revenues | $ | 226,256 | $ | 191,504 | $ | 34,752 | ||||||
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Production volumes | ||||||||||||
Oil (MBbl) | 5,562 | 4,510 | 1,052 | |||||||||
Natural gas liquids (MMgal) | 81.4 | 60.6 | 20.8 | |||||||||
Natural gas (MMcf) | 11,934 | 9,174 | 2,760 | |||||||||
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Total production volumes (MBOE) | 9,489 | 7,483 | 2,006 | |||||||||
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Average daily production volumes | ||||||||||||
Oil (MBbl/d) | 60.5 | 49.0 | 11.5 | |||||||||
Natural gas liquids (MMgal/d) | 0.9 | 0.7 | 0.2 | |||||||||
Natural gas (MMcf/d) | 129.7 | 99.7 | 30.0 | |||||||||
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Total average daily production volumes (MBOE/d) | 103.1 | 81.3 | 21.8 | |||||||||
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Average realized prices excluding effects of opennon-cashmark-to-market derivative instruments |
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Oil (per barrel) | $ | 56.54 | $ | 46.27 | $ | 10.27 | ||||||
Natural gas liquids (per gallon) | $ | 0.48 | $ | 0.39 | $ | 0.09 | ||||||
Natural gas (per Mcf) | $ | 1.37 | $ | 2.35 | $ | (0.98 | ) | |||||
Average realized prices excluding effects of all derivative instruments |
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Oil (per barrel) | $ | 56.82 | $ | 45.07 | $ | 11.75 | ||||||
Natural gas liquids (per gallon) | $ | 0.61 | $ | 0.42 | $ | 0.19 | ||||||
Natural gas (per Mcf) | $ | 1.29 | $ | 2.22 | $ | (0.93 | ) | |||||
Costs per BOE | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 5.80 | $ | 5.95 | $ | (0.15 | ) | |||||
Production and ad valorem taxes | $ | 2.66 | $ | 2.05 | $ | 0.61 | ||||||
Depreciation, depletion and amortization | $ | 14.14 | $ | 17.61 | $ | (3.47 | ) | |||||
Exploration expense | $ | 0.10 | $ | 0.08 | $ | 0.02 | ||||||
General and administrative | $ | 3.12 | $ | 2.89 | $ | 0.23 | ||||||
Capital expenditures (including acquisitions) | $ | 396,931 | $ | 251,621 | $ | 145,310 |
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 9 months ending September 30, 2018 and 2017
Year-to-date | ||||||||||||
(in thousands, except sales price and per unit data) | 2018 | 2017 | Change | |||||||||
Operating and production data |
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Oil, natural gas liquids and natural gas sales | ||||||||||||
Oil | $ | 936,136 | $ | 532,652 | $ | 403,484 | ||||||
Natural gas liquids | 125,591 | 59,776 | 65,815 | |||||||||
Natural gas | 48,590 | 51,784 | (3,194 | ) | ||||||||
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Total | $ | 1,110,317 | $ | 644,212 | $ | 466,105 | ||||||
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Opennon-cashmark-to-market gains (losses) on derivative instruments |
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Oil | $ | (110,258 | ) | $ | 42,730 | $ | (152,988 | ) | ||||
Natural gas liquids | (24,203 | ) | (4,148 | ) | (20,055 | ) | ||||||
Natural gas | (305 | ) | 8,856 | (9,161 | ) | |||||||
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Total | $ | (134,766 | ) | $ | 47,438 | $ | (182,204 | ) | ||||
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Closed gains (losses) on derivative instruments | ||||||||||||
Oil | $ | (35,247 | ) | $ | (470 | ) | $ | (34,777 | ) | |||
Natural gas liquids | (20,585 | ) | (3,468 | ) | (17,117 | ) | ||||||
Natural gas | 2,356 | 1,537 | 819 | |||||||||
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Total | $ | (53,476 | ) | $ | (2,401 | ) | $ | (51,075 | ) | |||
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Total revenues | $ | 922,075 | $ | 689,249 | $ | 232,826 | ||||||
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Production volumes | ||||||||||||
Oil (MBbl) | 15,710 | 11,608 | 4,102 | |||||||||
Natural gas liquids (MMgal) | 228.1 | 146.0 | 82.1 | |||||||||
Natural gas (MMcf) | 33,414 | 22,500 | 10,914 | |||||||||
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Total production volumes (MBOE) | 26,709 | 18,833 | 7,876 | |||||||||
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Average daily production volumes | ||||||||||||
Oil (MBbl/d) | 57.5 | 42.5 | 15.0 | |||||||||
Natural gas liquids (MMgal/d) | 0.8 | 0.5 | 0.3 | |||||||||
Natural gas (MMcf/d) | 122.4 | 82.4 | 40.0 | |||||||||
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Total average daily production volumes (MBOE/d) | 97.8 | 69.0 | 28.8 | |||||||||
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Average realized prices excluding effects of opennon-cashmark-to-market derivative instruments |
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Oil (per barrel) | $ | 57.34 | $ | 45.85 | $ | 11.49 | ||||||
Natural gas liquids (per gallon) | $ | 0.46 | $ | 0.39 | $ | 0.07 | ||||||
Natural gas (per Mcf) | $ | 1.52 | $ | 2.37 | $ | (0.85 | ) | |||||
Average realized prices excluding effects of all derivative instruments |
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Oil (per barrel) | $ | 59.59 | $ | 45.89 | $ | 13.7 | ||||||
Natural gas liquids (per gallon) | $ | 0.55 | $ | 0.41 | $ | 0.14 | ||||||
Natural gas (per Mcf) | $ | 1.45 | $ | 2.30 | $ | (0.85 | ) | |||||
Costs per BOE | ||||||||||||
Oil, natural gas liquids and natural gas production expenses | $ | 6.20 | $ | 6.89 | $ | (0.69 | ) | |||||
Production and ad valorem taxes | $ | 2.71 | $ | 2.20 | $ | 0.51 | ||||||
Depreciation, depletion and amortization | $ | 14.69 | $ | 18.74 | $ | (4.05 | ) | |||||
Exploration expense | $ | 0.13 | $ | 0.33 | $ | (0.20 | ) | |||||
General and administrative | $ | 2.76 | $ | 3.29 | $ | (0.53 | ) | |||||
Capital expenditures (including acquisitions) | $ | 991,853 | $ | 971,867 | $ | 19,986 |