- In April 2013, the Company sold 95% of its oil and gas reserves, leasehold interests and facilities located in Andrews County, Texas for $215.2 million, subject to customary closing adjustments, with $26.5 million being placed in escrow pending resolution of certain title requirements which the Company believes will be cured. As a result, reported oil and gas production, revenues and operating costs for the quarter and nine months ended September 30, 2013 are not comparable to reported amounts for periods in 2012.
- Oil and gas sales, excluding amortized deferred revenues, increased $2.7 million in 3Q13 versus 3Q12. Price variances accounted for a $13.3 million increase, and production variances accounted for a $10.6 million decrease. Average realized oil prices were $103.75 per barrel in 3Q13 versus $89.48 per barrel in 3Q12, and average realized gas prices were $3.49 per Mcf in 3Q13 versus $3.29 per Mcf in 3Q12. Oil and gas sales in 3Q13 also include $2.2 million of amortized deferred revenue versus $2.5 million in 3Q12 attributable to a volumetric production payment ("VPP"). Reported production and related average realized sales prices exclude volumes associated with the VPP.
- Oil, gas and natural gas liquids ("NGL") production per barrel of oil equivalent ("BOE") declined 12% in 3Q13 as compared to 3Q12, with oil production decreasing 10% to 9,674 barrels per day, gas production decreasing 24% to 16,598 Mcf per day, and NGL production increasing 9% to 1,359 barrels per day. Oil and NGL production accounted for approximately 80% of the Company's total BOE production in 3Q13 versus 77% in 3Q12. See accompanying tables for additional information about the Company's oil and gas production.
- After giving effect to the Andrews sale discussed above, oil and gas production per BOE increased 4% in 3Q13 as compared to 3Q12, with oil production increasing 587 barrels per day, gas production decreasing 3,511 Mcf per day and NGL production increasing 500 barrels per day.
- Production costs decreased 21% to $25.7 million in 3Q13 from $32.6 million in 3Q12. After giving effect to the Andrews sale, production costs declined $1.8 million, or 6%, due primarily to lower salt water disposal costs and other cost savings resulting from infrastructure improvements in the Reeves County Wolfbone area.
- Loss on derivatives for 3Q13 was $8.3 million ($7.8 million non-cash mark-to-market loss and $455,000 realized loss on settled contracts) versus a loss in 3Q12 of $21.9 million ($20.5 million non-cash mark-to-market loss and $1.4 million realized loss on settled contracts). See accompanying tables for additional information about the Company's accounting for derivatives.
- General and administrative ("G&A") expenses were $10 million in 3Q13 versus $5.8 million in 3Q12. G&A expenses in 3Q12 related to accrued compensation expense from the Company's APO reward plans included a non-cash reversal of previously accrued compensation expense totaling $2.2 million as compared to a charge of $1.2 million in 3Q13.
Clayton Williams Energy Announces Third Quarter 2013 Financial Results And Operations Update
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