Third Quarter Revenues and Expenses
Total revenues for the third quarter of 2013 increased 19% to $153.0 million from the $128.8 million generated in the third quarter of 2012. This increase is primarily attributable to higher oil and NGL production volumes along with higher natural gas prices.
Depreciation, depletion and amortization expense (“DD&A”) of $21.90 per barrel of oil equivalent (“Boe”) in the third quarter of 2013 increased 7% from $20.52 per Boe of that measure in the comparable period in 2012 due to a higher depletable base partially offset by the addition of reserves.
Lease operating expenses, excluding transportation and processing expense and before severance and ad valorem taxes, were $7.55 per Boe in the third quarter 2013, a 3% decrease on a per unit basis compared to the same period of 2012 due to increased production volumes. Overall costs increased due to higher lease operator and compressor costs in South Texas associated with the increased production volumes, partially offset by lower salt water disposal costs.
Severance and ad valorem taxes increased to $3.83 per Boe in the third quarter 2013 from $3.72 per Boe in the third quarter of 2012.
General and administrative expenses decreased to $3.65 per Boe during the third quarter of 2013, down from $4.16 per Boe in the same period in 2012 as a result of lower overall compensation costs. Interest expense increased to $5.72 per Boe in the third quarter of 2013 compared to $4.79 per Boe for the same period in 2012 due to additional long term debt issued during the fourth quarter of 2012.
Third Quarter Pricing
The Company realized an aggregate average price of $50.72 per Boe during the quarter, an increase from the $44.51 per Boe average price received in the third quarter of 2012 and slightly higher than the $50.71 per Boe average price received in the second quarter of 2013.