The partnership believes the Non-GAAP financial measures described above are useful to investors because these measurements are used by many companies in its industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate the financial performance of the partnership and to compare the financial performance of the partnership with the performance of other publicly traded partnerships within its industry.
Adjusted EBITDA and Distributable Cash Flow should not be considered an alternative to net income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.
Adjusted EBITDA is defined as net income (loss)
- Income tax expense (benefit);
- Interest expense;
- Depreciation, depletion and amortization;
- Accretion of discount on asset retirement obligations;
- Unrealized losses on commodity derivative contracts;
- Impairment expenses;
- Dry hole costs and abandonments of unproved properties;
- Equity-based compensation; and
- Loss on sale of assets;
- Interest income;
- Unrealized gains on commodity derivative contracts; and
- Gain on sale of assets.
- Cash income taxes;
- Cash interest expense; and
- Estimated maintenance capital expenditures.
|Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow|
|Three Months Ended||Year Ended|
|December 31,||December 31,|
|Net income (loss)||$ 6,909||$ (2,984)||$ 29,862||$ 18,968|
|Depreciation, depletion and amortization||3,004||2,842||10,324||7,160|
|Accretion of discount on asset retirement obligations||34||23||126||78|
|Unrealized (gain) loss on derivatives, net||1,634||5,962||(2,004)||(3,437)|
|Impairment of proved oil and gas properties||41||--||1,296||--|
|Dry holes and abandonments of unproved properties||--||41||--||813|
|Gain on sale of assets||--||(61)||--||(1,621)|
|Adjusted EBITDA||$ 13,348||$ 5,966||$ 47,681||$ 23,994|
|Cash interest expense||$ 547||$ 196||$ 1,561||$ 535|
|Estimated maintenance capital expenditures||1,070||83||4,237||3,055|
|Distributable Cash Flow||$ 11,731||$ 5,687||$ 41,883||$ 20,404|
CONTACT: Jeff Olmstead President and Chief Financial Officer (972) 479-5980 email@example.com Matthew Lewis Associate (972) 479-5984 firstname.lastname@example.org