Exhibit 99.2
PETROLEUM DEVELOPMENT CORPORATION | ||||||
Consolidated Statements of Cash Flows | ||||||
(unaudited; in thousands) | ||||||
Year Ended December 31, | 2007 | 2006 | 2005 | |||
Cash flows from operating activities: | ||||||
Net income | $ 33,209 | $ 237,772 | $ 41,452 | |||
Adjustments to net income to reconcile to net cash | ||||||
provided by operating activities: | ||||||
Deferred income taxes | 12,201 | 86,431 | 3,351 | |||
Depreciation, depletion and amortization | 70,844 | 33,735 | 21,116 | |||
Amortization of debt issuance costs | 394 | - | - | |||
Impairment of oil and gas properties | 1,485 | 1,519 | - | |||
Accretion of asset retirement obligation | 999 | 515 | 465 | |||
Exploratory dry hole costs | 1,775 | 1,790 | 11,115 | |||
Gain from sale of leaseholds | (33,291) | (328,000) | (7,669) | |||
(Gain) loss from sale of assets | (31) | 9 | (207) | |||
Expired and abandoned leases | 1,786 | 2,169 | 48 | |||
Stock based compensation | 2,286 | 1,516 | 660 | |||
Unrealized losses (gains) on derivative transactions | 4,642 | (7,620) | 3,226 | |||
Excess tax benefits from stock-based compensation | (673) | (70) | - | |||
Changes in current assets and liabilities: | ||||||
(Increase) decrease in restricted cash | (14,254) | 982 | (836) | |||
(Increase) in accounts receivable | (16,456) | (9,935) | (11,811) | |||
(Increase) in accounts receivable - affiliates | (2,302) | (194) | (5,319) | |||
Decrease (increase) in inventories | 1,285 | 1,987 | (3,398) | |||
Decrease (increase) in other current assets | 4,839 | (2,106) | 3,482 | |||
Increase (decrease) in production tax liability | 10,802 | (261) | 3,317 | |||
(Decrease) increase in accounts payable and accrued expenses | (10,869) | 13,010 | 19,440 | |||
(Decrease) increase in accounts payable - affiliates | (3,099) | 6,116 | 112 | |||
Increase in advances for future drilling contracts | 13,645 | 4,773 | 7,502 | |||
(Decrease) increase in federal and state income taxes payable | (27,124) | 19,950 | 8,473 | |||
Increase (decrease) in funds held for future distribution | 7,488 | (575) | 18,505 | |||
Other | 723 | 3,877 | (652) | |||
Net cash provided by operating activities | 60,304 | 67,390 | 112,372 | |||
Cash flows from investing activities: | ||||||
Capital expenditures | (238,988) | (146,180) | (97,390) | |||
Acquisition of oil and gas properties, net of cash acquired | (255,661) | (18,512) | - | |||
Investment in drilling partnerships | - | (7,151) | (7,160) | |||
Exploration costs | - | (765) | (1,918) | |||
Decrease (increase) in restricted/designated cash | 191,156 | (192,416) | - | |||
Proceeds from sale of leases to partnerships | 1,371 | 1,798 | 2,829 | |||
Proceeds from sale of leaseholds/assets | 34,701 | 353,600 | 9,597 | |||
Net cash used in investing activities | (267,421) | (9,626) | (94,042) | |||
Cash flows from financing activities: | ||||||
Proceeds from debt | 352,000 | 302,000 | 91,000 | |||
Proceeds from short-term debt | - | 20,000 | - | |||
Payment of long-term debt | (254,000) | (209,000) | (88,000) | |||
Payment of debt issuance costs | (1,468) | (160) | (423) | |||
Proceeds from issuance of stock | 183 | 31 | 12 | |||
Excess tax benefits from stock-based compensation | 673 | 70 | - | |||
Minority interest investment | 800 | - | - | |||
Purchase of treasury stock | (646) | (66,489) | (7,879) | |||
Net cash provided by (used in) financing activities | 97,542 | 46,452 | (5,290) | |||
Net (decrease) increase in cash and cash equivalents | (109,575) | 104,216 | 13,040 | |||
Cash and cash equivalents, beginning of period | 194,326 | 90,110 | 77,070 | |||
Cash and cash equivalents, end of period | $ 84,751 | $ 194,326 | $ 90,110 |