Energen Corporation (NYSE: EGN) announced today that its earnings in the three months ended June 30, 2013, totaled $83.1 million, or $1.15 per diluted share. Excluding non-cash items, Energen’s adjusted net income (a non-GAAP measure) totaled $47.6 million, or $0.66 per diluted share, in the second quarter of 2013; in the same period last year, adjusted net income was $52.8 million, or $0.73 per diluted share.
Non-cash, mark-to-market revenue gains in the second quarter of 2013 were $56.1 million ($35.5 million after tax, or $0.49 per diluted share). In the second quarter of 2012, mark-to-market revenue gains totaled $121.5 ($78.5 million after tax, or $1.09 per diluted share).
[See “Non-GAAP Financial Measures” for more information and reconciliation.]
A 7 percent increase in total production, including an 18 percent increase in oil volumes, and higher realized natural gas and oil prices benefited Energen’s second quarter earnings in 2013 as compared to the same period a year ago. More than offsetting these gains were increased depreciation, depletion, and amortization expense (DD&A), lease operating expense (LOE) and production taxes, and administrative expense.
Consolidated adjusted EBITDA (a non-GAAP measure) totaled $223.1 million in the second quarter of 2013 and compared with $201.2 million in the prior-year second quarter. The company’s oil and gas exploration and production unit, Energen Resources Corporation, had adjusted EBITDA of $209.5 million in the second quarter of 2013 and $186.4 million in the same period a year ago. [
See “Non-GAAP Financial Measures” for more information and reconciliation.]
Second Quarter 2013
Excluding non-cash items, Energen Resources reported adjusted net income of $48.4 million in the second quarter of 2013 and $53.2 million in the same period a year ago. Production in the second quarter increased 7 percent year-over-year. Oil and natural gas liquids (NGL) volumes increased 19 percent, reflecting the company’s focus on its assets in the oil-rich Permian Basin; production in the basin grew 26 percent in the second quarter of 2013 from the same period last year.