Energen Corporation (NYSE: EGN) announced today that its earnings in the three months ended September 30, 2012, totaled $2.0 million, or $0.03 per diluted share. Excluding non-cash mark-to-market losses on certain financial commodity contracts, Energen’s adjusted net income (a non-GAAP measure) totaled $31.8 million, or $0.44 per diluted share, and compared with 3 rd quarter 2011 adjusted net income of $54.5 million, or $0.75 per diluted share.
Non-cash, mark-to-market revenue losses in the 3 rd quarter 2012 were $46.8 million ($29.7 million after tax, or $0.41 per diluted share). Non-cash, market-to-market revenue gains in the same period in 2011 totaled $53.2 million ($33.1 million after tax, or $0.46 per diluted share). [See “Non-GAAP Financial Measures” for more information and reconciliation.]
A 15 percent production increase in the third quarter of 2012 as compared with the same period a year ago was more than offset by significantly lower natural gas and natural gas liquids (NGL) prices, increased depreciation expense (DD&A), and higher lease operating expense (LOE). Realized oil prices in the third quarter were down 2 percent year-over-year, while oil production increased 33 percent.
Consolidated adjusted EBITDA (a non-GAAP measure) totaled $172.0 million and compared with $168.6 million in the prior-year third quarter. Energen’s oil and gas exploration and production company, Energen Resources Corporation, had adjusted EBITDA of $173.6 million in the third quarter of 2012 and $170.1 million in the same period a year ago. [ See “Non-GAAP Financial Measures” for more information and reconciliation.]2013 Capital, Production Outlook Energen Resources’ preliminary 2013 budget includes capital investment of $875 million to drill and develop its assets in the liquids-rich Permian Basin, including approximately $130 million for horizontal test drilling in the Midland and Delaware sub-basins. An additional $25 million is being allocated primarily for 40 pay-adds in the San Juan Basin. In response to continued low natural gas prices, the company does not plan to invest drilling capital in any of its dry gas basins.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV