This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Clayton Williams Energy Announces Third Quarter 2013 Financial Results And Operations Update

Clayton Williams Energy, Inc. (the “Company”) (NASDAQ:CWEI) today reported its financial results for the third quarter 2013.

Financial Results for the Third Quarter of 2013

Net income attributable to Company stockholders for the third quarter of 2013 (“3Q13”) was $11 million, or $0.90 per share, as compared to a net loss of $7.2 million, or $0.59 per share, for the third quarter of 2012 (“3Q12”). Cash flow from operations for 3Q13 was $71 million as compared to $60.6 million for 3Q12.

For the nine-months ended September 30, 2013, net loss attributable to Company stockholders was $31.3 million, or $2.57 per share, as compared to net income of $33.4 million, or $2.75 per share, for the same period in 2012. Cash flow from operations for the nine-month period in 2013 was $153.9 million as compared to $157.9 million during the same period in 2012. The 2013 period included non-cash, pre-tax charges totaling $89.8 million to write down the carrying value of certain proved properties to their estimated fair value. The Company's adjusted net income, excluding the non-recurring charge, was $27.1 million.

The key factors affecting the comparability of financial results for 3Q13 versus 3Q12 were:
  • 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.

Capitalization and Liquidity

In September 2013, we issued an additional $250 million of aggregate principal amount of 7.75% Senior Notes due 2019. The notes were sold at 100% of par to yield 7.75% to maturity. The offering closed on October 1, 2013. The new notes and the 7.75% Senior Notes due 2019 originally issued on March 16, 2011 and April 29, 2011 will be treated as a single class of debt securities under the same indenture. The net proceeds from the offering was used to repay borrowings under our revolving credit facility.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,839.85 +27.66 0.16%
S&P 500 2,090.63 +1.49 0.07%
NASDAQ 5,114.0660 +11.2580 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs