Energen Corporation (NYSE: EGN) has tested four new Wolfcamp A wells in the Permian Basin during the third quarter of 2013. All produced at attractive initial rates, and oil accounted for more than 50 percent of the product stream in each well. The Bodacious C7-19 #1H in eastern Reeves County produced at a peak 24-hour rate of 2,229 boepd, which is the highest initial production (IP) rate for a southern Delaware Wolfcamp well to have been publicly disclosed to date.
[See locator maps at www.energen.com ] “We are very pleased with our latest Wolfcamp results and increasingly excited about the potential success of this play not only in the Midland Basin but in the southern Delaware Basin, as well,” said James McManus, Energen’s chairman and chief executive officer. “We are looking forward in 2014 to accelerating the pace of Wolfcamp development in the Midland Basin, where we are seeing great consistency in Wolfcamp A results in Glasscock County, and to continuing the delineation of our sizeable acreage position in the southern Delaware Basin. With approximately 180,000 net Permian acres identified as having Wolfcamp potential, Energen’s unrisked drilling inventory could approach 5,300 locations (based on 80-acre spacing and 4,400-foot lateral lengths) if the play is successful on a large-scale basis.”
Non-Core Assets Held-for-Sale Energen has classified its non-core North Louisiana/East Texas properties as held-for-sale effective September 30, 2013. At year-end 2012, proved reserves associated with these properties totaled 20.4 billion cubic feet equivalent (Bcfe), of which more than 98 percent are natural gas.
As a result, included in third quarter and year-to-date 2013 financial results is a write down of the book value of the North Louisiana/East Texas assets to the estimated fair value. This non-cash impairment charge is $24.6 million ($15.7 million after taxes, or $0.22 per diluted share) and is included in discontinued operations on the company’s income statement along with income from these properties and the company’s recently sold Black Warrior Basin assets.
Third Quarter Earnings
For the three months ended September 30, 2013, Energen reported a consolidated net loss of $19.3 million, or $0.27 per diluted share. Excluding non-cash items, Energen’s adjusted income from all operations (a non-GAAP measure) totaled $36.1 million, or $0.50 per diluted share, in the third quarter of 2013; in the same period last year, adjusted income from all operations was $31.8 million, or $0.44 per diluted share.
Non-cash items in the current-year third quarter were mark-to-market revenue losses of $63.6 million ($39.7 million after tax, or $0.55 per diluted share) and a write-down of North Louisiana/East Texas assets totaling $24.6 million ($15.7 million after tax, or $0.22 per diluted share). In the third quarter of 2012, mark-to-market revenue losses totaled $46.8 ($29.7 million after tax, or $0.41 per diluted share).
[See “Non-GAAP Financial Measures” beginning on pp. 15 for more information and reconciliation.] After excluding income from discontinued operations (Black Warrior Basin and North Louisiana/East Texas), Energen’s adjusted income from continuing operations in the third quarter 2013 totaled $34.2 million, or $0.47 per diluted share in 2013, as compared with $28.2 million, or $0.39 per diluted share, in 2012.
[See “Non-GAAP Financial Measures” beginning on pp. 15 for more information and reconciliation.] The impact of a 15 percent increase in production from continuing operations, including a 21 percent increase in oil volumes, and higher realized oil and natural gas prices was partially offset by increased depreciation, depletion and amortization expense (DD&A), lease operating expense including production taxes (LOE), and administrative expense.
Relative to the company’s budget, third quarter 2013 adjusted income from all operations ($0.50 per diluted share) was below expectations largely due to higher stock-based compensation expense ($0.04 per diluted share) and increased exploration expense ($0.07 per diluted share) primarily associated with the write-off of approximately 4,200 miscellaneous acres of unproved leasehold.
Reconciliation of Consolidated GAAP Net Income to Adjusted Income from Continuing Operations
[
See “Non-GAAP Financial Measures” beginning on pp. 15 for more information] | | | | | | | | |
| | | | | 3Q13 | | | 3Q12 |
| | | | | $MM | | | $/dil. sh. | | | $MM | | | $/dil. sh. |
| Net Income All Operations (GAAP) | | | | $ | (19,298 | ) | | | $ | (0.27 | ) | | | $ | 2,046 | | | | $ | 0.03 | |
| Less: Non-cash Mark-to-Market gain/(loss) | | | | | (39,674 | ) | | | | (0.55 | ) | | | | (29,734 | ) | | | | (0.41 | ) |
| Adjusted Net Income All Operations (Non-GAAP) | | | | $ | 20,376 | | | | $ | 0.28 | | | | $ | 31,780 | | | | $ | 0.44 | |
| Less: Discontinued Operations | | | | | | | | | | | | | |
| Non-cash North Louisiana Asset Impairment | | | | | (15,678 | ) | | | | (0.22 | ) | | | | -- | | | | | -- | |
| Adj. Income All Operations (ex non-cash) | | | | $ | 36,054 | | | | | 0.50 | | | | $ | 31,780 | | | | $ | 0.44 | |
| Income from Discontinued Operations | | | | | 1,866 | | | | | 0.03 | | | | | 3,551 | | | | | 0.05 | |
| Adj. Income Continuing Operations (Non-GAAP) | | | | $ | 34,188 | | | | $ | 0.47 | | | | $ | 28,229 | | | | $ | 0.39 | |
| | | | | | | | | | | | | | |
Energen’s adjusted EBITDA from all operations (excluding non-cash items) totaled $210.1 million in the third quarter of 2013 and compared with $162.3 million in the prior-year third quarter. The company’s oil and gas exploration and production unit, Energen Resources Corporation, had adjusted EBITDA from all operations (excluding non-cash items) of $209.9 million in the third quarter of 2013 and $163.9 million in the same period a year ago.
[See “Non-GAAP Financial Measures” beginning on pp. 15 for more information and reconciliation.] Energen’s adjusted EBITDA from continuing operations (excluding mark-to-market) totaled $208.3 million in the third quarter of 2013 and compared with $158.8 million in the prior-year third quarter. Energen Resources had adjusted EBITDA from continuing operations (excluding mark-to-market) of $208.1 million in the third quarter of 2013 and $160.4 million in the same period a year ago.
[See “Non-GAAP Financial Measures” beginning on pp. 15 for more information and reconciliation.] Wolfcamp Shale Exploration Results (Locator map available at www. Energen.com) | |
| MIDLAND BASIN WOLFCAMP |
| Well | | | County | | | TargetZone | | | Laterallength | | | Stimulation/Frac Stages | | | Peak 24-Hour IP | | | Peak 30-day Average |
| | | | | | | | | | | Boepd | | | Oil(Bopd) | | | NGL(Bpd) | | | Gas(Mcfd) | | | Boepd | | | Oil(Bopd) | | | NGL(Bpd) | | | Gas(Mcfd) |
| Llano 8-8A 101H | | | Glasscock | | | A | | | 4,250’ | | | Slick water/17 | | | 784 | | | 538 | | | 136 | | | 662 | | | 683 | | | 446 | | | 131 | | | 638 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The early performance of the Llano 8-8A 101H, which was drilled in Glasscock County approximately 4 miles northwest of the Lavaca 38-101 #1H that was tested last quarter, was consistent with the Lavaca well. The Llano 8-8A 101H tested at peak 24-hour IP rate of 784 boepd (69% oil, 17% NGL, and 14% gas). The peak 30-day rate was 683 boepd (65% oil 19% NGL, and 16% gas).
Energen plans to drill 7 gross (7 net) Wolfcamp wells in Glasscock County this year. Three wells currently are in various stages of drilling and completion: one is an A-bench well with a 5,300 foot lateral, and two are B-bench wells with 6,700-foot laterals. Two spuds previously slated for December are now expected to be drilled in January.
| |
| DELAWARE BASIN |
| Well | | | County | | | TargetZone | | | Laterallength | | | Stimulation/Frac Stages | | | Peak 24-Hour IP | | | Peak 30-day Average |
| | | | | | | | | | | Boepd | | | Oil(Bopd) | | | NGL(Bpd) | | | Gas(Mcfd) | | | Boepd | | | Oil(Bopd) | | | NGL(Bpd) | | | Gas(Mcfd) |
| BodaciousC7-19 #1H | | | Reeves | | | A | | | 4,500’ | | | Slick water/19 | | | 2,229 | | | 1,375 | | | 458 | | | 2,375 | | | 1,671 | | | 1,015 | | | 352 | | | 1,824 |
| University25-17 #1H | | | Ward | | | A | | | 4,000’ | | | Slick water/17 | | | 1,079 | | | 760 | | | 167 | | | 914 | | | 769 | | | 500 | | | 141 | | | 771 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Well | | | County | | | TargetZone | | | Laterallength | | | Stimulation/Frac Stages | | | Peak 24-Hour IP | | | Peak 20-day Average |
| | | | | | | | | | | Boepd | | | Oil(Bopd) | | | NGL(Bpd) | | | Gas(Mcfd) | | | Boepd | | | Oil(Bopd) | | | NGL(Bpd) | | | Gas(Mcfd) |
| Benton3-12 #1H | | | Reeves | | | A | | | 4,700 | | | Slick water/19 | | | 1,462 | | | 812 | | | 306 | | | 2,069 | | | 1,163 | | | 632 | | | 250 | | | 1,690 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Energen’s second Reeves County Wolfcamp A well was drilled further east in the southern Delaware Basin. The Bodacious C7-19 #1H, tested at an outstanding peak 24-hour IP rate of 2,229 boepd; this 3-stream rate was 62% oil, 20% NGL, and 18% gas. The peak 30-day average rate (3-stream) was 1,671 boepd (61% oil, 21% NGL, 18% gas).
Also in Reeves County, close to the Pecos River near the intersection of Loving, Ward, and Reeves counties, Energen drilled the Benton 3-12 #1H that tested at a peak 24-hour IP rate of 1,462 boepd. This 3-stream rate was 56% oil, 21% NGL, and 23% gas. The peak 20-day average rate (3- stream) was 1,163 boepd (54% oil, 21% NGL, and 25% gas).
The University 25-17 #1H in Ward County produced at a peak 24-hour initial rate (3-stream) of 1,079 boepd (70% oil, 16% NGL, 14% gas); the peak 30-day average rate (3-stream) was 769 boepd (65% oil, 18% NGL, and 17% gas).
Energen expects to drill a total of 10 gross (9 net) Wolfcamp wells in the basin this year. Three wells in Reeves County, including two B-bench wells, currently are in various stages of drilling, completion, and flow-back.
Permian Basin Development Results Vertical Wolfberry Wells Continue Strong Performance Energen Resources’ vertical Wolfberry wells continued to generate strong results in the third quarter. Forty-five gross (42 net) wells tested at an average peak 24-hour initial production rate (2-stream) of 129 boepd (68% oil). The peak 30-day average rate (2-stream) was 122 boepd (69% oil).
Energen has drilled 116 gross (106 net) Wolfberry wells through the first nine months of the year and plans to drill another 21 gross (20 net) wells in the fourth quarter. Energen estimates that its 26,700 net undeveloped Wolfberry acres in the Midland Basin support 668 net drilling locations on 40-acre spacing.
3 rd Bone Spring Development Wells Continue Solid Performance In the company’s horizontal 3rd Bone Spring program in the southern Delaware Basin, Energen Resources tested 9 gross (9 net) wells in the third quarter of 2013 that had an average 24-hour peak rate (2-stream) of 1,153 boepd (66% oil). The 30-day average production rate (2-stream) of 8 gross (8 net) wells tested was 642 boepd (69% oil).
Energen plans to drill another 11 gross (10 net) wells in the fourth quarter – 4 net wells more than originally planned. On the east side of the Pecos River, the company’s core 3 rd Bone Spring holdings total approximately 30,000 net acres, of which 5,700 remain undeveloped. Energen Resources estimates that it has 36 potential locations remaining to be drilled on 160-acre spacing in this core area.
Third Quarter 2013 Financial & Operating Results ENERGEN RESOURCES Excluding non-cash items, Energen Resources’ adjusted income from all operations totaled $45.1 million in the third quarter of 2013 and $42.1 million in the same period a year ago. Energen Resources’ adjusted income from continuing operations totaled $43.3 million in the third quarter of 2013 and $38.6 million in the same period a year ago.
Production from continuing operations in the third quarter increased 15 percent year-over-year. Oil and natural gas liquids (NGL) volumes increased 27 percent, reflecting the company’s focus on its assets in the liquids-rich Permian Basin. Third quarter production in the Permian Basin grew 36 percent year-over-year, including 62 percent in the Midland Basin and 78 percent in the Delaware Basin.
| | | | | | | | | | | |
| Production (MBOE) | | | | | | | | | | |
| Commodity | | | | 3Q13 | | | 3Q12 | | | Change |
| Continuing Operations | | | | | | | | | | |
| Oil | | | | 2,764 | | | 2,275 | | | 21 | % |
| NGL | | | | 874 | | | 600 | | | 46 | % |
| Natural Gas | | | | 2,478 | | | 2,437 | | | 2 | % |
| Total Continuing Operations | | | | 6,116 | | | 5,312 | | | 15 | % |
| Total Discontinued Operations | | | | 642 | | | 714 | | | (10 | )% |
| Total All Operations | | | | 6,758 | | | 6,026 | | | 12 | % |
| | | | | | | | | | | | |
| |
| Production from Continuing Operations by Area (MBOE) |
| Area | | | | 3Q13 | | | 3Q12 | | | Change |
| Midland Basin | | | | 1,407 | | | 871 | | | 62 | % |
| Delaware Basin | | | | 1,301 | | | 732 | | | 78 | % |
| Central Basin Platform | | | | 1,106 | | | 1,207 | | | (8 | )% |
| Total Permian Basin | | | | 3,814 | | | 2,810 | | | 36 | % |
| San Juan Basin/Other | | | | 2,302 | | | 2,502 | | | (8 | )% |
| Total Continuing Operations | | | | 6,116 | | | 5,312 | | | 15 | % |
| | | | | | | | | | | | |
| |
| Average Realized Sales Prices from Continuing Operations |
| Commodity | | | | 3Q13 | | | 3Q12 | | | Change |
| Oil (per barrel) | | | | $ | 89.67 | | | $ | 82.76 | | | 8 | % |
| NGL (per gallon) | | | | $ | 0.75 | | | $ | 0.78 | | | (4 | )% |
| Natural Gas (per Mcf) | | | | $ | 4.06 | | | $ | 3.66 | | | 11 | % |
| | | | | | | | | | | | | | |
Per-unit LOE from continuing operations in the third quarter of 2013 increased approximately 8 percent from the same period a year ago to $14.39 per barrel of oil equivalent (BOE). Base LOE and marketing and transportation expenses increased approximately 4.5 percent to $11.29 per BOE largely due to increased workovers and repairs and gathering and water disposal expenses, partially offset by lower expected ad valorem taxes. Commodity price-driven production taxes increased approximately 22 percent on a per-unit basis to $3.10 per unit.
Per-unit DD&A expense from continuing operations in the 3rd quarter of 2013 totaled $20.27 per BOE, increasing approximately 26 percent from the same period last year largely due to year-over-year increases in development costs and production and to the impact of reduced year-end 2012 natural gas reserves resulting from lower commodity prices.
Per-unit net G&A expense increased approximately 39 percent in the third quarter of 2013 to $4.84 per BOE primarily due to increased compensation expense tied to Energen’s stock price.
ALAGASCO Energen’s utility operations under Alagasco generated a seasonal net loss of $9.0 million in the third quarter of 2013 as compared with a net loss of $10.0 million in the same period a year ago.
Year-to-Date 2013 Financial & Operating Results CONSOLIDATED For the nine months ended September 30, 2013, Energen’s consolidated net income totaled $120.5 million, or $1.67 per diluted share. Excluding non-cash items, Energen’s year-to-date adjusted income from all operations (a non-GAAP measure) totaled $166.9 million, or $2.31 per diluted share; in the same period last year, adjusted income from all operations was $182.2 million, or $2.52 per diluted share.
Non-cash items in the current year-to-date period were mark-to-market revenue losses of $48.5 million ($30.7 million after tax, or $0.43 per diluted share) and a write-down of assets being held for sale in North Louisiana/East Texas totaling $24.6 million ($15.7 million after tax, or $0.22 per diluted share). In the same period in 2012, mark-to-market revenue gains totaled $34.0 ($22.0 million after tax, or $0.30 per diluted share) and a commodity price-driven write-down of East Texas assets totaled $21.5 million ($13.4 million, or 19 cents per diluted share).
[See “Non-GAAP Financial Measures” beginning on pp. 15 for more information and reconciliation.] After excluding income from discontinued operations (Black Warrior Basin and North Louisiana/East Texas), Energen’s adjusted income from continuing operations in the year-to-date 2013 totaled $160.6 million, or $2.22 per diluted share in 2013, as compared with $172.7 million, or $2.39 per diluted share, in 2012.
[See “Non-GAAP Financial Measures” beginning on pp. 15 for more information and reconciliation.] Energen’s adjusted EBITDA from all operations (excluding non-cash items) totaled $675.6 million in the first nine months of 2013 and compared with $605.5 million in the same period last year. Energen Resources’ adjusted EBITDA from all operations (excluding non-cash items) was $571.3 million in the first nine months of 2013 and $502.8 million in the same period a year ago.
[See “Non-GAAP Financial Measures” beginning on pp. 15 for more information and reconciliation.] Energen’s adjusted EBITDA from continuing operations (excluding mark-to-market) totaled $669.3 million in the year-to-date period 2013 and compared with $596.1 million in the same period a year ago. Energen Resources had adjusted EBITDA from continuing operations (excluding mark-to-market) of $565.0 million in the year-to-date period 2013 and $493.3 million in the same period a year ago.
[See “Non-GAAP Financial Measures” beginning on pp. 15 for more information and reconciliation.] | |
| Reconciliation of GAAP Net Income to Adjusted Income from Continuing Operations |
| [See “Non-GAAP Financial Measures” on pp. 15 for more information] |
| |
| | | | | YTD13 | | | YTD12 |
| | | | | $MM | | | $/dil. sh. | | | $MM | | | $/dil. sh. |
| Net Income All Operations (GAAP) | | | | $ | 120,461 | | | | $ | 1.67 | | | | $ | 190,739 | | | | $ | 2.64 | |
| Less: Non-cash Mark-to-Market gain/(loss) | | | | | (30,733 | ) | | | | (0.43 | ) | | | | 21,987 | | | | | 0.30 | |
| Adjusted Net Income All Operations (Non-GAAP) | | | | $ | 151,194 | | | | $ | 2.09 | | | | $ | 168,752 | | | | $ | 2.33 | |
| Less: Discontinued Operations | | | | | | | | | | | | | |
| Non-cash Asset Impairment | | | | | (15,678 | ) | | | | (0.22 | ) | | | | (13,416 | ) | | | | (0.19 | ) |
| Adj. Income All Operations (ex non-cash) | | | | $ | 166,872 | | | | | 2.31 | | | | $ | 182,168 | | | | $ | 2.52 | |
| Income from Discontinued Operations | | | | | 6,269 | | | | | 0.09 | | | | | 9,432 | | | | | 0.13 | |
| Adj. Income Continuing Operations (Non-GAAP) | | | | $ | 160,603 | | | | $ | 2.22 | | | | $ | 172,736 | | | | $ | 2.39 | |
| | | | | | | | | | | | | | |
ENERGEN RESOURCES Excluding non-cash items, Energen Resources’ adjusted income from all operations totaled $128.9 million through the first nine months of 2013 and $145.0 million in the same period a year ago. Energen Resources’ adjusted income from continuing operations totaled $122.6 million in the current year-to-date period and $135.6 million in the same period a year ago.
Year-to-date 2013 production from continuing operations increased 10 percent year-over-year. Oil and NGL volumes increased 21 percent, reflecting the company’s focus on its assets in the liquids-rich Permian Basin. In the Permian Basin, year-to-date production grew 28 percent year-over-year, including 40 percent in the Midland Basin and 82 percent in the Delaware Basin.
| |
| Production (MBOE) |
| Commodity | | | | YTD13 | | | YTD12 | | | Change |
| Continuing Operations | | | | | | | | | | |
| Oil | | | | 7,670 | | | 6,414 | | | 20 | % |
| NGL | | | | 2,345 | | | 1,881 | | | 25 | % |
| Natural Gas | | | | 7,238 | | | 7,346 | | | (1 | )% |
| Total Continuing Operations | | | | 17,253 | | | 15,641 | | | 10 | % |
| Total Discontinued Operations | | | | 1,906 | | | 2,209 | | | (14 | )% |
| Total All Operations | | | | 19,159 | | | 17,850 | | | 7 | % |
| | | | | | | | | | | | |
| |
| Production from Continuing Operations by Area (MBOE) |
| Area | | | | YTD13 | | | YTD12 | | | Change |
| Midland Basin | | | | 3,615 | | | 2,589 | | | 40 | % |
| Delaware Basin | | | | 3,443 | | | 1,891 | | | 82 | % |
| Central Basin Platform | | | | 3,328 | | | 3,635 | | | (8 | )% |
| Total Permian Basin | | | | 10,386 | | | 8,115 | | | 28 | % |
| San Juan Basin/Other | | | | 6,867 | | | 7,526 | | | (9 | )% |
| Total Continuing Operations | | | | 17,253 | | | 15,641 | | | 10 | % |
| | | | | | | | | | | | |
| |
| Average Realized Sales Prices from Continuing Operations |
| Commodity | | | | YTD13 | | | YTD12 | | | Change |
| Oil (per barrel) | | | | $ | 87.59 | | | $ | 84.47 | | | 4 | % |
| NGL (per gallon) | | | | $ | 0.74 | | | $ | 0.80 | | | (8 | )% |
| Natural Gas (per Mcf) | | | | $ | 4.14 | | | $ | 3.64 | | | 14 | % |
| | | | | | | | | | | | | | |
Per-unit LOE from continuing operations in the first nine months of 2013 increased approximately 18 percent from the same period a year ago to $15.07 per BOE. Base LOE and marketing and transportation expenses increased approximately 20 percent to $12.20 per BOE largely due to increased workovers and repairs, equipment rental, water disposal and gathering costs, and environmental compliance. Commodity price-driven production taxes increased approximately 13 percent on a per-unit basis to $2.87 per unit.
Per-unit DD&A expense from continuing operations in the first nine months of 2013 totaled $19.10 per BOE, increasing approximately 23 percent from the same period last year largely due to year-over-year increases in development costs and production and to the impact of reduced year-end 2012 natural gas reserves resulting from lower commodity prices.
Per-unit net G&A expense in the 2013 year-to-date period increased approximately 31 percent from the same period last year to $4.73 per BOE. This largely was due to increased stock-based compensation.
ALAGASCO Alagasco generated net income of $37.6 million through the first nine months of 2013. In the same period last year. The utility’s net income in the same period a year ago totaled $37.2 million.
2013 Guidance Energen’s guidance range for production from continuing operations for 2013 is 23.4-23.8 MMBOE, which is slightly below prior guidance for all operations after adjusting for 2.0 MMBOE of estimated discontinued operations. (Energen’s prior guidance for production from all operations was 25.7-26.1 MMBOE, issued on August 28; adjusting for discontinued operations, the prior guidance equated to production from continuing operations of 23.7-24.1 MMBOE).
The decrease in the production guidance range largely reflects lower gas and NGL volumes in the San Juan Basin, lower NGL production in the Permian Basin, and less oil production in the Delaware Basin. In the San Juan Basin, production is less than expected largely due to unanticipated workovers on some high-volume wells, unscheduled third-party plant downtime, pipeline imbalances, and delays/reduction in scheduled pay-adds. Most of these impacts were felt in the 3
rd quarter. Lower NGL production in the Permian Basin is due to drier gas being produced by some 3
rd Bone Spring wells and price-driven ethane rejection in the Midland Basin; the impact of these factors was felt in the 3
rd quarter and expected to continue for the remainder of the year. In the Delaware Basin, oil production is being hampered by interference issues in highly fractured areas in the 3
rd Bone Spring play.
Drilling capital in 2013 is estimated to be $1.08 billion in 2013, up $80 million from the prior estimate. The increase largely is due to increased drilling costs (largely related to mechanical drilling challenges in the company’s exploratory program and to overages in some development drilling), additional working interest (primarily in the Midland Basin), and a net increase in costs associated with program changes; the latter includes four additional 3
rd Bone Spring wells, additional facilities in the Delaware Basin, and increased non-operated projects partially offset by a reduction in testing, exploratory spuds, and lower drill-and-complete costs on numerous 3
rd Bone Spring wells.
| |
| Production (MMBOE) |
| Commodity | | | | 2013e ProductionMidpoint | | | 2012 |
| Oil | | | | 10.5 | | | 8.8 |
| NGL | | | | 3.3 | | | 2.6 |
| Natural Gas | | | | 9.8 | | | 9.8 |
| Production from Continuing Operations | | | | 23.4-23.8 | | | 21.2 |
| Production from Discontinued Operations | | | | 2.0 | | | 2.9 |
| | | | | | | | |
| |
| 2013e Revised Drilling and Production Summary |
| | | | | Operated Wells DrilledGross (Net) | | | Production Midpoint |
| | | | | | | | |
| Midland Basin | | | | 144 (133 | ) | | | 5.3 |
| Wolfberry | | | | 137 (126 | ) | | | 5.2 |
| Wolfcamp | | | | 7 (7 | ) | | | 0.1 |
| | | | | | | | |
| Delaware Basin | | | | 49 (46 | ) | | | 4.8 |
| 3(rd) Bone Spring | | | | 38 (36 | ) | | | 4.3 |
| Wolfcamp | | | | 10 (9 | ) | | | 0.5 |
| Wolfbone | | | | 1 (1 | ) | | | |
| | | | | | | | |
| Other Permian* | | | | 81 (78 | ) | | | 4.4 |
| | | | | | | | |
| San Juan Basin/Other | | | | (0 | ) | | | 9.1 |
| | | | | | | | |
| Production from Continuing Operations | | | | | | | | 23.6 |
| | | | | | | | |
| Production from Discontinued Operations | | | | | | | 2.0 |
| * Includes 2 gross (2 net) injector wells |
| |
| |
| 2013e Capital Summary |
| Basin | | | | Capital ($MM) |
| | | | | |
| Midland Basin | | | | $ | 500 |
| Delaware Basin | | | | $ | 470 |
| Other Permian | | | | $ | 85 |
| San Juan Basin/Other | | | | $ | 25 |
| Total | | | | $ | 1,080 |
| | | | | | |
Energen’s revised guidance range for 2013 consolidated after-tax cash flows (excluding disposal gains or losses) is $889-$904 million. Energen Resources’ after-tax cash flows are estimated to be $788-$803 million, and Alagasco is expected to generate after-tax cash flows of approximately $101 million. In addition, the company has received net proceeds of approximately $150 million from the October sale of its Black Warrior Basin assets; these proceeds have been used to reduce short-term debt.
[See “Non-GAAP Financial Measures” beginning on pp 15 for more information and reconciliation.] Energen narrowed and lowered its range of guidance for 2013 income from all operations (excluding mark-to-market and disposal gains or losses) to $3.10-$3.30 per diluted share to reflect increased stock-based compensation, increased exploration expense for 3
rd quarter leasehold write-off, and lower production. Income from continuing operations in 2013 is estimated to be $3.05-$3.25 per diluted share.
In addition to the mark-to-market gains or losses recognized quarterly on derivative instruments, we expect a net gain on the disposal of assets in 2013. This is the result of a gain of $35.0 million ($23.2 million after tax) to be booked in the 4
th quarter for the October 2013 sale of the company’s Black Warrior Basin assets. Because this gain will more than offset the loss on the impairment of North Louisiana/East Texas assets that was recognized in the third quarter, the resulting net gain (after tax) on disposal for 2013 will be $7.5 million.
Energen Resources’ estimated exploration and production expenses from continuing operations per BOE in 2013 are:
| Lease Operating expense | | | | | | |
| Base, marketing, and transportation | | | | $ | 11.55 | | - $ 11.75 |
| Production taxes | | | | $ | 2.75 | | - $ 2.95 |
| DD&A expense | | | | $ | 19.05 | | - $ 19.25 |
| General & Administrative expense, net | | | | $ | 4.65 | | - $ 4.85 |
| Interest expense | | | | $ | 2.15 | | - $ 2.35 |
Approximately 78 percent of the company’s total estimated production for the remainder of 2013 is hedged. Assumed prices applicable to Energen Resources’ unhedged volumes for the remainder of the year are $90.00 per barrel of oil, $0.86 per gallon of NGL, and $4.00 per Mcf of natural gas.
Hedges also are in place that limit the company’s exposure to the Midland to Cushing differential to approximately 30 percent of its estimated oil production for the remainder of 2013. Energen Resources has hedged the WTS Midland to WTI Cushing (sour oil) differential for 0.9 million barrels of oil production at an average price of $2.99 per barrel and the WTI Midland to WTI Cushing differential for 1.1 million barrels at an average price of $1.00 per barrel.
Energen’s 2013 guidance includes assumed prices applicable to Energen Resources’ unhedged oil basis differentials for the remainder of the year. They are $4.25 per barrel (sour oil) and $3.00 per barrel (WTI Midland to WTI Cushing). Energen estimates that approximately 68 percent of its oil production for the remainder of 2013 is sweet.
The company’s current hedge position for the last quarter of 2013 is as follows:
| | | | | | | | | | | | | | |
| Commodity | | | | Hedge Volumes | | | 2013e Production(Contg Ops) Midpoint | | | Hedge % | | | NYMEX Price |
| | | | | | | | | | | | | | |
| Oil | | | | 2.4 MMBO | | | 2.8 MMBO | | | 86 | % | | | $ 91.44 per barrel |
| | | | | | | | | | | | | | | |
| NGL | | | | 12.0 MMgal | | | 40.9 MMgal | | | 29 | % | | | $ 1.02 per gallon |
| | | | | | | | | | | | | | | |
| Natural Gas | | | | 13.5 Bcf | | | 15.3 Bcf | | | 89 | % | | | $ 4.62 per Mcf |
| Note: Known actuals included |
| |
In the table above, basin-specific contract prices for natural gas have been converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources' assumed San Juan and Permian basis differentials of $0.19 per Mcf.
Average realized oil and gas prices for Energen Resources' production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials; average realized oil prices also will reflect oil transportation charges of approximately $2.50 per barrel for the remainder of 2013; and average realized NGL prices will be net of transportation and fractionation fees that are estimated to average $0.11-$0.17 per gallon for the remainder of 2013. The company also has basin-specific natural gas contracts whereby Energen Resources will receive the contracted hedge price.
Given Energen’s hedge position for the remainder of the year, changes in commodity prices are not expected to have a significant impact on Energen's 2013 cash flows. Every $1.00 change in the average NYMEX price of oil from $90 per barrel represents an estimated net impact of $175,000; every 1-cent change in the average price of liquids from $0.86 per gallon represents an estimated net impact of approximately $210,000; and every 10-cent change in the average NYMEX price of gas from $4.00 represents an estimated net impact of $30,000.
Price-related events such as substantial basis differential changes could cause earnings sensitivities to be different from those outlined above.
At the end of September 2013, Alagasco was on track to earn within its allowed range of return on average equity of $375-$380 million.
ENERGEN HEDGE POSITION STRONG IN 2014 Energen has built a strong hedge position in 2014 and has already started establishing its hedge position in 2015.
The company’s 2014 hedges are as follows:
| | | | | | | | |
| Commodity | | | | Hedge Volumes | | | NYMEX Price |
| | | | | | | | |
| Oil | | | | 9.8 MMBO | | | $ 92.64 per barrel |
| | | | | | | | |
| Natural Gas | | | | 51.8 Bcf | | | $ 4.59 per Mcf |
| | | | | | | | |
The company’s 2015 hedges are as follows:
| | | | | | | | |
| Commodity | | | | Hedge Volumes | | | NYMEX Price |
| | | | | | | | |
| Oil | | | | 5.8 MMBO | | | $ 88.85 per barrel |
| | | | | | | | |
| Natural Gas | | | | 6.0 Bcf | | | $ 4.26 per Mcf |
| | | | | | | | |
Basin-specific contract prices for natural gas have been converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources' assumed San Juan and Permian basis differentials of $0.19 per Mcf in 2014 and 2015.
Average realized oil and gas prices for Energen Resources' production associated with NYMEX contracts and unhedged production will reflect the impact of basis differentials; average realized oil prices also will reflect transportation charges; and average realized NGL prices will be net of transportation and fractionation fees.
CONFERENCE CALL Energen will hold its quarterly conference call today, Wednesday, October 30, at 10:30 a.m. EDT. Members of the investment community may participate by calling 1-866-939-3921. A live audio Webcast of the program as well as a replay may be accessed through Web site,
www.energen.com.
Energen Corporation is an oil and gas exploration and production company with headquarters in Birmingham, Alabama. Through Energen Resources Corporation, the company has approximately 750 million barrels of oil-equivalent proved, probable, and possible reserves. These all-domestic reserves are located mainly in the Permian and San Juan basins. For more information, go to http://www.energen.com . FORWARD LOOKING STATEMENT: This release contains statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Except as otherwise disclosed, the Company's forward-looking statements do not reflect the impact of possible or pending acquisitions, divestitures or restructurings. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A more complete discussion of risks and uncertainties that could affect future results of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission. Financial, operating, and support data pertaining to all reporting periods included in this release are unaudited and subject to revision. Non-GAAP Financial Measures Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes certain non-cash mark-to-market derivative financial instruments and asset impairments of natural gas properties. Adjusted Net Income from continuing operations further excludes income from discontinued operations. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.
| | | | | |
| | | | | Quarter Ended 9/30/2013 |
| Consolidated Net Income ($ in millions except per share data) | | | | Net Income | | | Per DilutedShare |
| Net Income (GAAP) | | | | (19.3 | ) | | | (0.27 | ) |
| Non-cash mark-to-market losses (net of $23.9 tax) | | | | 39.7 | | | | 0.55 | |
| Non-cash impairment charge (net of $8.9 tax) (1) | | | | 15.7 | | | | 0.22 | |
| Adjusted Net Income from All Operations, excluding non-cash items (Non-GAAP) | | | | 36.1 | | | | 0.50 | |
| Income from discontinued operations (net of $1.1 tax) | | | | (1.9 | ) | | | (0.03 | ) |
| Adjusted Net Income from Continuing Operations (Non-GAAP) | | | | 34.2 | | | | 0.47 | |
| | | | | | | | |
| | | | | | | | |
| | | | | Quarter Ended 9/30/2012 |
| Consolidated Net Income ($ in millions except per share data) | | | | Net Income | | | Per DilutedShare |
| Net Income (GAAP) | | | | 2.0 | | | | 0.03 | |
| Non-cash mark-to-market losses (net of $17.1 tax) | | | | 29.7 | | | | 0.41 | |
| Adjusted Net Income from All Operations, excluding non-cash items (Non-GAAP) | | | | 31.8 | | | | 0.44 | |
| Income from discontinued operations (net of $2.0 tax) | | | | (3.6 | ) | | | (0.05 | ) |
| Adjusted Net Income from Continuing Operations (Non-GAAP) | | | | 28.2 | | | | 0.39 | |
| | | | | | | | |
| | | | | | | | |
| | | | | Year-to-Date Ended 9/30/2013 |
| Consolidated Net Income ($ in millions except per share data) | | | | Net Income | | | Per DilutedShare |
| Net Income (GAAP) | | | | 120.5 | | | | 1.67 | |
| Non-cash mark-to-market losses (net of $17.8 tax) | | | | 30.7 | | | | 0.43 | |
| Non-cash impairment charge (net of $8.9 tax) (1) | | | | 15.7 | | | | 0.22 | |
| Adjusted Net Income from All Operations, excluding non-cash items (Non-GAAP) | | | | 166.9 | | | | 2.31 | |
| Income from discontinued operations (net of $1.1 tax) | | | | (6.3 | ) | | | (0.09 | ) |
| Adjusted Net Income from Continuing Operations (Non-GAAP) | | | | 160.6 | | | | 2.22 | |
| | | | | | | | |
| | | | | | | | |
| | | | | Year-to-Date Ended 9/30/2012 |
| Consolidated Net Income ($ in millions except per share data) | | | | Net Income | | | Per DilutedShare |
| Net Income (GAAP) | | | | 190.7 | | | | 2.64 | |
| Non-cash mark-to-market gains (net of $12.0 tax) | | | | (22.0 | ) | | | (0.30 | ) |
| Non-cash write-down of natural gas properties (net of $8.1 tax) (2) | | | | 13.4 | | | | 0.19 | |
| Adjusted Net Income from All Operations, excluding non-cash items (Non-GAAP) | | | | 182.2 | | | | 2.52 | |
| Income from discontinued operations (net of $2.0 tax) | | | | (9.4 | ) | | | (0.13 | ) |
| Adjusted Net Income from Continuing Operations (Non-GAAP) | | | | 172.7 | | | | 2.39 | |
| | | | | | | | |
| Note: Amounts may not sum due to rounding |
| | | | | | | | |
| (1) Current year-to-date and quarter-to-date loss on impairment ($15.7) included in gain (loss) on disposal of discontinued operations on the income statement |
| (2) Prior year-to-date write down of natural gas properties ($13.4) included in income (loss) from discontinued operations on the income statement |
| |
Non-GAAP Financial Measures Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Adjusted EBITDA from all operations reflects EBITDA adjusted for certain non-cash mark-to-market derivative financial instruments and asset impairments. Adjusted EBITDA from continuing operations further excludes income from discontinued operations. Energen believes these measures allow analysts and investors to understand the financial performance of the company from core business operations, without including the effects of capital structure, tax rates and depreciation. Further, this measure is useful in comparing the company and other oil and gas producing companies.
| | |
| Reconciliation To GAAP Information | | | | Year-to-Date Ended 9/30 | | | Quarter Ended 9/30 |
| ($ in millions) | | | | 2012 | | | 2013 | | | 2012 | | | 2013 |
| | | | | | | | | | | | | | |
| Consolidated Net Income (GAAP) | | | | 190.7 | | | | 120.5 | | | 2.0 | | | | (19.3 | ) |
| Interest expense | | | | 48.4 | | | | 51.8 | | | 17.2 | | | | 17.7 | |
| Income tax expense | | | | 110.5 | | | | 73.9 | | | (0.3 | ) | | | (3.6 | ) |
| Depreciation, depletion and amortization | | | | 276.5 | | | | 365.4 | | | 96.6 | | | | 136.1 | |
| Adjustment for asset impairment, net of tax (1) | | | | 13.4 | | | | 15.7 | | | - | | | | 15.7 | |
| Adjustment for mark-to-market (gains) losses | | | | (34.0 | ) | | | 48.5 | | | 46.8 | | | | 63.6 | |
| Consolidated Adjusted EBITDA from All Operations, excluding non-cash items (Non-GAAP) | | | | 605.5 | | | | 675.6 | | | 162.3 | | | | 210.1 | |
| Adjustment for income from discontinued operations, net of tax | | | | 9.4 | | | | 6.3 | | | 3.6 | | | | 1.9 | |
| Consolidated Adjusted EBITDA from Continuing Operations (Non-GAAP) | | | | 596.1 | | | | 669.3 | | | 158.8 | | | | 208.3 | |
| | | | | | | | | | | | | | |
| Reconciliation To GAAP Information | | | | Year-to-Date Ended 9/30 | | | Quarter Ended 9/30 |
| ($ in millions) | | | | 2012 | | | 2013 | | | 2012 | | | 2013 |
| | | | | | | | | | | | | | |
| Energen Resources Net Income (GAAP) | | | | 153.6 | | | | 82.4 | | | 12.4 | | | | (10.2 | ) |
| Interest expense | | | | 36.8 | | | | 40.5 | | | 13.3 | | | | 14.0 | |
| Income tax expense | | | | 88.1 | | | | 51.5 | | | 5.4 | | | | 1.8 | |
| Depreciation, depletion and amortization | | | | 244.9 | | | | 332.7 | | | 86.1 | | | | 125.1 | |
| Adjustment for asset impairment, net of tax (1) | | | | 13.4 | | | | 15.7 | | | - | | | | 15.7 | |
| Adjustment for mark-to-market (gains) losses | | | | (34.0 | ) | | | 48.5 | | | 46.8 | | | | 63.6 | |
| Energen Resources Adjusted EBITDA from All Operations, excluding non-cash items (Non-GAAP) | | | | 502.8 | | | | 571.3 | | | 163.9 | | | | 209.9 | |
| Adjustment for income from discontinued operations, net of tax | | | | 9.4 | | | | 6.3 | | | 3.6 | | | | 1.9 | |
| Energen Resources Adjusted EBITDA from Continuing Operations (Non-GAAP) | | | | 493.3 | | | | 565.0 | | | 160.4 | | | | 208.1 | |
| | | | | | | | | | | | | | |
| Note: Amounts may not sum due to rounding | |
| | | | | | | | | | | | | | |
| (1) Current year-to-date and quarter-to-date loss on impairment ($15.7) included in gain (loss) on disposal of discontinued operations on the income statement. Prior year-to-date write down of natural gas properties ($13.4) included in income (loss) from discontinued operations on the income statement. |
| |
Non-GAAP Financial Measures Adjusted Net Income is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes certain non-cash mark-to-market derivative financial instruments and asset impairments of natural gas properties. Adjusted Net Income from continuing operations further excludes income from discontinued operations. Energen believes that excluding the impact of these items is more useful to analysts and investors in comparing the results of operations and operational trends between reporting periods and relative to other oil and gas producing companies.
| |
| | | | | | | | | | | | |
| Energen Resources Net Income ($ in millions) | | | | Quarter Ended9/30/2013 | | | Year-to-date9/30/2013 |
| Net Income (GAAP) | | | | (10.2 | ) | | | 82.4 | |
| Non-cash mark-to-market losses (net of $23.9 and $17.8 tax) | | | | 39.7 | | | | 30.7 | |
| Non-cash impairment charge (net of $8.9 and $8.9 tax) (1) | | | | 15.7 | | | | 15.7 | |
| Adjusted Net Income from All Operations, excluding non-cash items (Non-GAAP) | | | | 45.1 | | | | 128.9 | |
| Income from discontinued operations (net of $1.1 and $3.7 tax) | | | | (1.9 | ) | | | (6.3 | ) |
| Adjusted Net Income from Continuing Operations (Non-GAAP) | | | | 43.3 | | | | 122.6 | |
| | | | | | | | | | | |
| | | | | | | | |
| Energen Resources Net Income ($ in millions) | | | | Quarter Ended9/30/2012 | | | Year-to-date9/30/2012 |
| Net Income (GAAP) | | | | 12.4 | | | | 153.6 | |
| Non-cash mark-to-market losses (gains) (net of $17.1 and ($12.0) tax) | | | | 29.7 | | | | (22.0 | ) |
| Non-cash write down of natural gas properties (net of $8.1 tax) (2) | | | | - | | | | 13.4 | |
| Adjusted Net Income from All Operations, excluding non-cash items (Non-GAAP) | | | | 42.1 | | | | 145.0 | |
| Income from discontinued operations (net of ($2.0) and $2.0 tax) | | | | (3.6 | ) | | | (9.4 | ) |
| Adjusted Net Income from Continuing Operations (Non-GAAP) | | | | 38.6 | | | | 135.6 | |
| | | | | | | | | | | |
| Note: Amounts may not sum due to rounding |
| | | | | | | | | | | |
| (1) Current year-to-date and quarter-to-date loss on impairment ($15.7) included in gain (loss) on disposal of discontinued operations on the income statement |
| (2) Prior year-to-date write down of natural gas properties ($13.4) included in income (loss) from discontinued operations on the income statement |
| |
Non-GAAP Financial Measures After-tax Cash Flows is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes after-tax cash flows are relevant because they are a measure of cash available to fund the Company's capital expenditures, dividends, debt reduction, and other investments. Adjusted after-tax cash flows excluding Alagasco provides a measure of cash flows available to fund the Company's exploration and production activities.
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Reconciliation To GAAP Information | | | | Years Ended 12/31 |
| ($ in millions) | | | | 2011 Actual | | | 2012 Actual | | | 2013 Estimate (e) |
| | | | | | | | | | | | | | |
| Consolidated Net Income (GAAP) | | | | 260 | | | | 254 | | | | 225 | | | | 240 | |
| Depreciation, depletion and amortization | | | | 284 | | | | 441 | | | | 530 | | | | 530 | |
| Deferred income taxes | | | | 129 | | | | 124 | | | | 109 | | | | 109 | |
| Exploratory expense | | | | 11 | | | | 17 | | | | - | | | | - | |
| Other | | | | 53 | | | | (34 | ) | | | 25 | | | | 25 | |
| After-tax Cash Flows (Non-GAAP) | | | | 737 | | | | 802 | | | | 889 | | | | 904 | |
| Changes in assets and liabilities and other adjustments | | | | 25 | | | | (66 | ) | | | 27 | | | | 27 | |
| Net Cash Provided by Operating Activities (GAAP) | | | | 762 | | | | 736 | | | | 916 | | | | 931 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Reconciliation To GAAP Information | | | | Years Ended 12/31 |
| ($ in millions) | | | | 2011 Actual | | | 2012 Actual | | | 2013 Estimate (e) |
| | | | | | | | | | | | | | |
| Net Cash Provided by Operating Activities (GAAP) | | | | 762 | | | | 736 | | | | 916 | | | | 931 | |
| Changes in assets and liabilities and other adjustments | | | | (25 | ) | | | 66 | | | | (27 | ) | | | (27 | ) |
| After-tax Cash Flow (Non-GAAP) | | | | 737 | | | | 802 | | | | 889 | | | | 904 | |
| Less: AGC cash flows from operations and other | | | | (115 | ) | | | (103 | ) | | | (101 | ) | | | (101 | ) |
| Adj. After-tax Cash Flows Excluding Alagasco (Non-GAAP) | | | | 622 | | | | 699 | | | | 788 | | | | 803 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| (e) This estimate is a "forward-looking statement" as defined by the Securities and Exchange Commission. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A discussion of risks and uncertainties, which could affect future results of Energen and its subsidiaries, is included in the Company's periodic reports filed with the Securities and Exchange Commission. |
| |
| |
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
| For the 3 months ending September 30, 2013 and 2012 |
| |
| | | | | 3rd Quarter | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (in thousands, except per share data) | | | | | | | 2013 | | | | | | 2012 | | | | | | Change |
| | | | | | | | | | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | | | | | | | | |
| Oil and gas operations | | | | $ | | | 272,038 | | | | $ | | | 214,620 | | | | $ | | | 57,418 | |
| Natural gas distribution | | | | | | | 48,368 | | | | | | | 61,809 | | | | | | | (13,441 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Total operating revenues | | | | | | | 320,406 | | | | | | | 276,429 | | | | | | | 43,977 | |
| | | | | | | | | | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | | | | | | | | |
| Cost of gas | | | | | | | 20,435 | | | | | | | 20,924 | | | | | | | (489 | ) |
| Operations and maintenance | | | | | | | 141,271 | | | | | | | 123,730 | | | | | | | 17,541 | |
| Depreciation, depletion and amortization | | | | | | | 136,123 | | | | | | | 96,634 | | | | | | | 39,489 | |
| Taxes, other than income taxes | | | | | | | 24,858 | | | | | | | 19,572 | | | | | | | 5,286 | |
| Accretion expense | | | | | | | 1,771 | | | | | | | 1,605 | | | | | | | 166 | |
| | | | | | | | | | | | | | | | | | | | |
| Total operating expenses | | | | | | | 324,458 | | | | | | | 262,465 | | | | | | | 61,993 | |
| | | | | | | | | | | | | | | | | | | | |
| Operating Income (Loss) | | | | | | | (4,052 | ) | | | | | | 13,964 | | | | | | | (18,016 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Other Income (Expense) | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | | | | | (17,689 | ) | | | | | | (17,195 | ) | | | | | | (494 | ) |
| Other income | | | | | | | 13,062 | | | | | | | 1,488 | | | | | | | 11,574 | |
| Other expense | | | | | | | (434 | ) | | | | | | (84 | ) | | | | | | (350 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Total other expense | | | | | | | (5,061 | ) | | | | | | (15,791 | ) | | | | | | 10,730 | |
| | | | | | | | | | | | | | | | | | | | |
| Income (Loss) from Continuing Operations Before Income Taxes | | | | | | | (9,113 | ) | | | | | | (1,827 | ) | | | | | | (7,286 | ) |
| Income tax expense (benefit) | | | | | | | (3,627 | ) | | | | | | (322 | ) | | | | | | (3,305 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Income (Loss) from Continuing Operations | | | | | | | (5,486 | ) | | | | | | (1,505 | ) | | | | | | (3,981 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Discontinued Operations, Net of Taxes | | | | | | | | | | | | | | | | | | | |
| Income (loss) from discontinued operations | | | | | | | 1,866 | | | | | | | 3,551 | | | | | | | (1,685 | ) |
| Gain (loss) on disposal | | | | | | | (15,678 | ) | | | | | | ─ | | | | | | (15,678 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Income (Loss) from Discontinued Operations | | | | | | | (13,812 | ) | | | | | | 3,551 | | | | | | | (17,363 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | | | $ | | | (19,298 | ) | | | $ | | | 2,046 | | | | $ | | | (21,344 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Diluted Earnings Per Average Common Share | | | | | | | | | | $ | | | | | | $ | | | |
| Continuing operations | | | | | | | (0.08 | ) | | | | | | (0.02 | ) | | | | | | (0.06 | ) |
| Discontinued operations | | | | | | | (0.19 | ) | | | | | | 0.05 | | | | | | | (0.24 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | | | $ | | | (0.27 | ) | | | $ | | | 0.03 | | | | $ | | | (0.30 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Basic Earnings Per Average Common Share | | | | $ | | | | | | $ | | | | | | $ | | | |
| Continuing operations | | | | | | | (0.08 | ) | | | | | | (0.02 | ) | | | | | | (0.06 | ) |
| Discontinued operations | | | | | | | (0.19 | ) | | | | | | 0.05 | | | | | | | (0.24 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | | | $ | | | (0.27 | ) | | | $ | | | 0.03 | | | | $ | | | (0.30 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Diluted Avg. Common Shares Outstanding | | | | | | | 72,346 | | | | | | | 72,316 | | | | | | | 30 | |
| | | | | | | | | | | | | | | | | | | | |
| Basic Avg. Common Shares Outstanding | | | | | | | 72,346 | | | | | | | 72,130 | | | | | | | 216 | |
| | | | | | | | | | | | | | | | | | | | |
| Dividends Per Common Share | | | | $ | | | 0.145 | | | | $ | | | 0.14 | | | | $ | | | 0.005 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| |
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
| For the 9 months ending September 30, 2013 and 2012 |
| | | | | | | | | | | |
| | | | | Year-to-date | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (in thousands, except per share data) | | | | | | | 2013 | | | | | | 2012 | | | | | | Change |
| | | | | | | | | | | | | | | | | | | | |
| Operating Revenues | | | | | | | | | | | | | | | | | | | |
| Oil and gas operations | | | | $ | | | 875,350 | | | | $ | | | 799,339 | | | | $ | | | 76,011 | |
| Natural gas distribution | | | | | | | 390,567 | | | | | | | 327,183 | | | | | | | 63,384 | |
| | | | | | | | | | | | | | | | | | | | |
| Total operating revenues | | | | | | | 1,265,917 | | | | | | | 1,126,522 | | | | | | | 139,395 | |
| | | | | | | | | | | | | | | | | | | | |
| Operating Expenses | | | | | | | | | | | | | | | | | | | |
| Cost of gas | | | | | | | 163,448 | | | | | | | 94,179 | | | | | | | 69,269 | |
| Operations and maintenance | | | | | | | 413,401 | | | | | | | 336,568 | | | | | | | 76,833 | |
| Depreciation, depletion and amortization | | | | | | | 365,355 | | | | | | | 276,465 | | | | | | | 88,890 | |
| Taxes, other than income taxes | | | | | | | 77,955 | | | | | | | 64,314 | | | | | | | 13,641 | |
| Accretion expense | | | | | | | 5,187 | | | | | | | 4,691 | | | | | | | 496 | |
| | | | | | | | | | | | | | | | | | | | |
| Total operating expenses | | | | | | | 1,025,346 | | | | | | | 776,217 | | | | | | | 249,129 | |
| | | | | | | | | | | | | | | | | | | | |
| Operating Income (Loss) | | | | | | | 240,571 | | | | | | | 350,305 | | | | | | | (109,734 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Other Income (Expense) | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | | | | | (51,751 | ) | | | | | | (48,447 | ) | | | | | | (3,304 | ) |
| Other income | | | | | | | 15,578 | | | | | | | 3,678 | | | | | | | 11,900 | |
| Other expense | | | | | | | (631 | ) | | | | | | (305 | ) | | | | | | (326 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Total other expense | | | | | | | (36,804 | ) | | | | | | (45,074 | ) | | | | | | 8,270 | |
| | | | | | | | | | | | | | | | | | | | |
| Income (Loss) from Continuing Operations Before Income Taxes | | | | | | | 203,767 | | | | | | | 305,231 | | | | | | | (101,464 | ) |
| Income tax expense (benefit) | | | | | | | 73,897 | | | | | | | 110,508 | | | | | | | (36,611 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Income (Loss) from Continuing Operations | | | | $ | | | 129,870 | | | | $ | | | 194,723 | | | | $ | | | (64,853 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Discontinued Operations, Net of Taxes | | | | | | | | | | | | | | | | | | | |
| Income (loss) from operations | | | | | | | 6,269 | | | | | | | (3,984 | ) | | | | | | 10,253 | |
| Gain (loss) on disposal | | | | | | | (15,678 | ) | | | | | | ─ | | | | | | (15,678 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Income (Loss) from Discontinued Operations | | | | | | | (9,409 | ) | | | | | | (3,984 | ) | | | | | | (5,425 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | | | | | | 120,461 | | | | | | | 190,739 | | | | | | | (70,278 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Diluted Earnings Per Average Common Share | | | | $ | | | | | | $ | | | | | | $ | | | |
| Continuing operations | | | | | | | 1.80 | | | | | | | 2.69 | | | | | | | (0.89 | ) |
| Discontinued operations | | | | | | | (0.13 | ) | | | | | | (0.05 | ) | | | | | | (0.08 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | | | $ | | | 1.67 | | | | $ | | | 2.64 | | | | $ | | | (0.97 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Basic Earnings Per Average Common Share | | | | $ | | | | | | $ | | | | | | $ | | | |
| Continuing operations | | | | | | | 1.80 | | | | | | | 2.70 | | | | | | | (0.90 | ) |
| Discontinued operations | | | | | | | (0.13 | ) | | | | | | (0.06 | ) | | | | | | (0.07 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Net Income (Loss) | | | | $ | | | 1.67 | | | | $ | | | 2.64 | | | | $ | | | (0.97 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Diluted Avg. Common Shares Outstanding | | | | | | | 72,272 | | | | | | | 72,301 | | | | | | | (29 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Basic Avg. Common Shares Outstanding | | | | | | | 72,220 | | | | | | | 72,121 | | | | | | | 99 | |
| | | | | | | | | | | | | | | | | | | | |
| Dividends Per Common Share | | | | $ | | | 0.435 | | | | $ | | | 0.42 | | | | $ | | | 0.015 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
| As of September 30, 2013 and December 31, 2012 |
| |
| (in thousands) | | | | September 30, 2013 | | | December 31, 2012 |
| | | | | | | | |
| | | | | | | | |
| ASSETS | | | | | | | |
| Current Assets | | | | | | | |
| Cash and cash equivalents | | | | $ | 12,413 | | | $ | 9,704 |
| Accounts receivable, net of allowance | | | | | 200,043 | | | | 277,900 |
| Inventories | | | | | 61,684 | | | | 63,994 |
| Regulatory asset | | | | | 11,213 | | | | 45,515 |
| Assets held for sale | | | | | 183,862 | | | ─ |
| Other | | | | | 63,371 | | | | 28,007 |
| | | | | | | | |
| Total current assets | | | | | 532,586 | | | | 425,120 |
| | | | | | | | |
| Property, Plant and Equipment | | | | | | | |
| Oil and gas properties, net | | | | | 4,997,661 | | | | 4,673,886 |
| Utility plant, net | | | | | 876,570 | | | | 842,643 |
| Other property, net | | | | | 29,733 | | | | 25,107 |
| | | | | | | | |
| Total property, plant and equipment, net | | | | | 5,903,964 | | | | 5,541,636 |
| Other Assets | | | | | | | |
| Regulatory asset | | | | | 89,004 | | | | 110,566 |
| Long-term derivative instruments | | | | | 12,786 | | | | 40,577 |
| Other | | | | | 76,532 | | | | 57,991 |
| | | | | | | | |
| Total other assets | | | | | 178,322 | | | | 209,134 |
| | | | | | | | |
| | | | | | | | |
| TOTAL ASSETS | | | | $ | 6,614,872 | | | $ | 6,175,890 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | |
| Current Liabilities | | | | | | | |
| Long-term debt due within one year | | | | $ | 125,000 | | | $ | 50,000 |
| Notes payable to banks | | | | | 901,000 | | | | 643,000 |
| Accounts payable | | | | | 256,109 | | | | 257,579 |
| Regulatory liability | | | | | 40,168 | | | | 45,116 |
| Other | | | | | 219,012 | | | | 164,087 |
| | | | | | | | |
| Total current liabilities | | | | | 1,541,289 | | | | 1,159,782 |
| | | | | | | | |
| Long-term debt | | | | | 1,028,509 | | | | 1,103,528 |
| | | | | | | | |
| Deferred Credits and Other Liabilities | | | | | | | |
| Regulatory liability | | | | | 81,414 | | | | 80,404 |
| Deferred income taxes | | | | | 979,898 | | | | 905,601 |
| Long-term derivative instruments | | | | | 1,961 | | | | 11,305 |
| Other | | | | | 212,135 | | | | 238,580 |
| | | | | | | | |
| Total deferred credits and other liabilities | | | | | 1,275,408 | | | | 1,235,890 |
| | | | | | | | |
| Total Shareholders’ Equity | | | | | 2,769,666 | | | | 2,676,690 |
| | | | | | | | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | $ | 6,614,872 | | | $ | 6,175,890 |
| | | | | | | | | | |
| |
| SELECTED BUSINESS SEGMENT DATA (UNAUDITED) |
| For the 3 months ending September 30, 2013 and 2012 |
| |
| | | | | 3rd Quarter | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| (in thousands, except sales price data) | | | | 2013 | | | | | 2012 | | | | | Change |
| | | | | | | | | | | | | | | | | | |
| Oil and Gas Operations (GAAP) | | | | | | | | | | | | | | | | | |
| Operating revenues from continuing operations | | | | | | | | | | | | | | | | | |
| Natural gas | | | | $ | | | 62,073 | | | $ | | | 49,422 | | | $ | | | 12,651 | |
| Oil | | | | | | | 183,950 | | | | | | 147,710 | | | | | | 36,240 | |
| Natural gas liquids | | | | | | | 26,292 | | | | | | 17,566 | | | | | | 8,726 | |
| Other | | | | | | | (277 | ) | | | | | (78 | ) | | | | | (199 | ) |
| | | | | | | | | | | | | | | | | | |
| Total (GAAP) | | | | $ | | | 272,038 | | | $ | | | 214,620 | | | $ | | | 57,418 | |
| | | | | | | | | | | | | | | | | | |
| Oil and Gas Operations excluding mark-to-market (Non-GAAP) | | | | | | | | | | | | | | | | | |
| Operating revenues from continuing operations | | | | | | | | | | | | | | | | | |
| Natural gas | | | | $ | | | 60,389 | | | $ | | | 53,581 | | | $ | | | 6,808 | |
| Oil | | | | | | | 247,839 | | | | | | 188,279 | | | | | | 59,560 | |
| Natural gas liquids | | | | | | | 27,647 | | | | | | 19,590 | | | | | | 8,057 | |
| Other | | | | | | | (277 | ) | | | | | (78 | ) | | | | | (199 | ) |
| | | | | | | | | | | | | | | | | | |
| Total (Non-GAAP)* | | | | $ | | | 335,598 | | | $ | | | 261,372 | | | $ | | | 74,226 | |
| | | | | | | | | | | | | | | | | | |
| Production volumes | | | | | | | | | | | | | | | | | |
| Natural gas (MMcf) | | | | | | | 14,868 | | | | | | 14,622 | | | | | | 246 | |
| Oil (MBbl) | | | | | | | 2,764 | | | | | | 2,275 | | | | | | 489 | |
| Natural gas liquids (MMgal) | | | | | | | 36.7 | | | | | | 25.2 | | | | | | 11.5 | |
| | | | | | | | | | | | | | | | | | |
| Total production volumes (MMcfe) | | | | | | | 36,696 | | | | | | 31,872 | | | | | | 4,824 | |
| Total production volumes (MBOE) | | | | | | | 6,116 | | | | | | 5,312 | | | | | | 804 | |
| | | | | | | | | | | | | | | | | | |
| Revenue per unit of production including effects of designated cash flow hedges | | | | | | | | | | | | | | | | | |
| Natural gas (Mcf) | | | | $ | | | 4.06 | | | $ | | | 3.66 | | | $ | | | 0.40 | |
| Oil (barrel) | | | | $ | | | 89.67 | | | $ | | | 82.76 | | | $ | | | 6.91 | |
| Natural gas liquids (gallon) | | | | $ | | | 0.75 | | | $ | | | 0.78 | | | $ | | | (0.03 | ) |
| | | | | | | | | | | | | | | | | | |
| Revenue per unit of production excluding effects of all derivative instruments | | | | | | | | | | | | | | | | | |
| Natural gas (Mcf) | | | | $ | | | 3.39 | | | $ | | | 2.69 | | | $ | | | 0.70 | |
| Oil (barrel) | | | | $ | | | 103.22 | | | $ | | | 86.55 | | | $ | | | 16.67 | |
| Natural gas liquids (gallon) | | | | $ | | | 0.68 | | | $ | | | 0.68 | | | $ | | | ─ |
| | | | | | | | | | | | | | | | | | |
| Other data | | | | | | | | | | | | | | | | | |
| Lease operating expense (LOE) | | | | | | | | | | | | | | | | | |
| LOE and other | | | | $ | | | 69,086 | | | $ | | | 57,397 | | | $ | | | 11,689 | |
| Production taxes | | | | | | | 18,939 | | | | | | 13,531 | | | | | | 5,408 | |
| | | | | | | | | | | | | | | | | | |
| Total | | | | $ | | | 88,025 | | | $ | | | 70,928 | | | $ | | | 17,097 | |
| | | | | | | | | | | | | | | | | | |
| Depreciation, depletion and amortization | | | | $ | | | 125,060 | | | $ | | | 86,062 | | | $ | | | 38,998 | |
| General and administrative expense | | | | $ | | | 29,626 | | | $ | | | 18,468 | | | $ | | | 11,158 | |
| Capital expenditures | | | | $ | | | 257,759 | | | $ | | | 323,037 | | | $ | | | (65,278 | ) |
| Exploration expenditures | | | | $ | | | 8,949 | | | $ | | | 10,644 | | | $ | | | (1,695 | ) |
| Operating income | | | | $ | | | 18,607 | | | $ | | | 26,913 | | | $ | | | (8,306 | ) |
| | | | | | | | | | | | | | | | | | |
| *Operating revenues excluding mark-to-market losses of $63,560 and $46,752 in third quarter 2013 and 2012, respectively. |
| |
| Natural Gas Distribution | | | | | | | | | | | | | | | | |
| Operating revenues | | | | | | | | | | | | | | | | |
| Residential | | | $ | | | 31,201 | | | $ | | | 30,658 | | | $ | | | 543 | |
| Commercial and industrial | | | | | | 18,194 | | | | | | 17,695 | | | | | | 499 | |
| Transportation | | | | | | 13,197 | | | | | | 13,505 | | | | | | (308 | ) |
| Other | | | | | | (14,224 | ) | | | | | (49 | ) | | | | | (14,175 | ) |
| | | | | | | | | | | | | | | | | |
| Total | | | $ | | | 48,368 | | | $ | | | 61,809 | | | $ | | | (13,441 | ) |
| | | | | | | | | | | | | | | | | |
| Gas delivery volumes (MMcf) | | | | | | | | | | | | | | | | |
| Residential | | | | | | 1,384 | | | | | | 1,378 | | | | | | 6 | |
| Commercial and industrial | | | | | | 1,272 | | | | | | 1,246 | | | | | | 26 | |
| Transportation | | | | | | 11,237 | | | | | | 11,252 | | | | | | (15 | ) |
| | | | | | | | | | | | | | | | | |
| Total | | | | | | 13,893 | | | | | | 13,876 | | | | | | 17 | |
| | | | | | | | | | | | | | | | | |
| Other data | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | $ | | | 11,063 | | | $ | | | 10,572 | | | $ | | | 491 | |
| Capital expenditures | | | $ | | | 20,980 | | | $ | | | 18,813 | | | $ | | | 2,167 | |
| Operating income (loss) | | | $ | | | (22,544 | ) | | $ | | | (12,743 | ) | | $ | | | (9,801 | ) |
| |
| SELECTED BUSINESS SEGMENT DATA (UNAUDITED) |
| For the 9 months ending September 30, 2013 and 2012 |
| | | | | | | | | | | |
| | | | | Year-to-date | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (in thousands, except sales price data) | | | | | | | 2013 | | | | | | 2012 | | | | | | Change |
| | | | | | | | | | | | | | | | | | | | |
| Oil and Gas Operations (GAAP) | | | | | | | | | | | | | | | | | | | |
| Operating revenues from continuing operations | | | | | | | | | | | | | | | | | | | |
| Natural gas | | | | $ | | | 196,311 | | | | $ | | | 156,308 | | | | $ | | | 40,003 | |
| Oil | | | | | | | 607,975 | | | | | | | 578,167 | | | | | | | 29,808 | |
| Natural gas liquids | | | | | | | 71,556 | | | | | | | 64,970 | | | | | | | 6,586 | |
| Other | | | | | | | (492 | ) | | | | | | (106 | ) | | | | | | (386 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Total (GAAP) | | | | $ | | | 875,350 | | | | $ | | | 799,339 | | | | $ | | | 76,011 | |
| | | | | | | | | | | | | | | | | | | | |
| Oil and Gas Operations excluding mark-to-market (Non-GAAP) | | | | | | | | | | | | | | | | | | | |
| Operating revenues from continuing operations | | | | | | | | | | | | | | | | | | | |
| Natural gas | | | | $ | | | 179,701 | | | | $ | | | 160,429 | | | | $ | | | 19,272 | |
| Oil | | | | | | | 671,836 | | | | | | | 541,812 | | | | | | | 130,024 | |
| Natural gas liquids | | | | | | | 72,764 | | | | | | | 63,169 | | | | | | | 9,595 | |
| Other | | | | | | | (492 | ) | | | | | | (106 | ) | | | | | | (386 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Total (Non-GAAP)* | | | | $ | | | 923,809 | | | | $ | | | 765,304 | | | | $ | | | 158,505 | |
| | | | | | | | | | | | | | | | | | | | |
| Production volumes | | | | | | | | | | | | | | | | | | | |
| Natural gas (MMcf) | | | | | | | 43,428 | | | | | | | 44,076 | | | | | | | (648 | ) |
| Oil (MBbl) | | | | | | | 7,670 | | | | | | | 6,414 | | | | | | | 1,256 | |
| Natural gas liquids (MMgal) | | | | | | | 98.5 | | | | | | | 79.0 | | | | | | | 19.5 | |
| | | | | | | | | | | | | | | | | | | | |
| Total production volumes (MMcfe) | | | | | | | 103,518 | | | | | | | 93,846 | | | | | | | 9,672 | |
| Total production volumes (MBOE) | | | | | | | 17,253 | | | | | | | 15,641 | | | | | | | 1,612 | |
| | | | | | | | | | | | | | | | | | | | |
| Revenue per unit of production including effects of designated cash flow hedges | | | | | | | | | | | | | | | | | | | |
| Natural gas (Mcf) | | | | $ | | | 4.14 | | | | $ | | | 3.64 | | | | $ | | | 0.50 | |
| Oil (barrel) | | | | $ | | | 87.59 | | | | $ | | | 84.47 | | | | $ | | | 3.12 | |
| Natural gas liquids (gallon) | | | | $ | | | 0.74 | | | | $ | | | 0.80 | | | | $ | | | (0.06 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Revenue per unit of production excluding effects of all derivative instruments | | | | | | | | | | | | | | | | | | | |
| Natural gas (Mcf) | | | | $ | | | 3.51 | | | | $ | | | 2.51 | | | | $ | | | 1.00 | |
| Oil (barrel) | | | | $ | | | 92.69 | | | | $ | | | 89.92 | | | | $ | | | 2.77 | |
| Natural gas liquids (gallon) | | | | $ | | | 0.65 | | | | $ | | | 0.78 | | | | $ | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Other data | | | | | | | | | | | | | | | | | | | |
| Lease operating expense (LOE) | | | | | | | | | | | | | | | | | | | |
| LOE and other | | | | $ | | | 210,455 | | | | $ | | | 159,052 | | | | $ | | | 51,403 | |
| Production taxes | | | | | | | 49,598 | | | | | | | 39,882 | | | | | | | 9,716 | |
| | | | | | | | | | | | | | | | | | | | |
| Total | | | | $ | | | 260,053 | | | | $ | | | 198,934 | | | | $ | | | 61,119 | |
| | | | | | | | | | | | | | | | | | | | |
| Depreciation, depletion and amortization | | | | $ | | | 332,690 | | | | $ | | | 244,914 | | | | $ | | | 87,776 | |
| General and administrative expense | | | | $ | | | 81,570 | | | | $ | | | 56,521 | | | | $ | | | 25,049 | |
| Capital expenditures | | | | $ | | | 892,691 | | | | $ | | | 957,913 | | | | $ | | | (65,222 | ) |
| Exploration expenditures | | | | $ | | | 13,902 | | | | $ | | | 13,382 | | | | $ | | | 52 | |
| Operating income | | | | $ | | | 181,948 | | | | $ | | | 280,897 | | | | $ | | | (98,949 | ) |
| |
| * Operating revenues excluding mark-to-market loss of $48,459 and gain of $34,035 in 2013 and 2012, respectively. |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Natural Gas Distribution | | | | | | | | | | | | | | | | | | | |
| Operating revenues | | | | | | | | | | | | | | | | | | | |
| Residential | | | | $ | | | 259,492 | | | | $ | | | 201,537 | | | | $ | | | 57,955 | |
| Commercial and industrial | | | | | | | 103,419 | | | | | | | 84,889 | | | | | | | 18,530 | |
| Transportation | | | | | | | 45,261 | | | | | | | 42,765 | | | | | | | 2,496 | |
| Other | | | | | | | (17,605 | ) | | | | | | (2,008 | ) | | | | | | (15,597 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Total | | | | $ | | | 390,567 | | | | $ | | | 327,183 | | | | $ | | | 63,384 | |
| | | | | | | | | | | | | | | | | | | | |
| Gas delivery volumes (MMcf) | | | | | | | | | | | | | | | | | | | |
| Residential | | | | | | | 15,379 | | | | | | | 11,601 | | | | | | | 3,778 | |
| Commercial and industrial | | | | | | | 7,434 | | | | | | | 6,137 | | | | | | | 1,297 | |
| Transportation | | | | | | | 34,733 | | | | | | | 34,835 | | | | | | | (102 | ) |
| | | | | | | | | | | | | | | | | | | | |
| Total | | | | | | | 57,546 | | | | | | | 52,573 | | | | | | | 4,973 | |
| | | | | | | | | | | | | | | | | | | | |
| Other data | | | | | | | | | | | | | | | | | | | |
| Depreciation and amortization | | | | $ | | | 32,665 | | | | $ | | | 31,551 | | | | $ | | | 1,114 | |
| Capital expenditures | | | | $ | | | 67,790 | | | | $ | | | 51,786 | | | | $ | | | 16,004 | |
| Operating income | | | | $ | | | 58,968 | | | | $ | | | 70,265 | | | | $ | | | (11,297 | ) |
| | | | | | | | | | | | | | | | | | | | |
