DENVER, Nov. 9, 2010 /PRNewswire-FirstCall/ -- Delta
Petroleum Corporation (the "Company" or "Delta") (Nasdaq: DPTR), an
independent oil and gas exploration and development company, today
announced its financial and operating results for the third quarter
of 2010.
Carl Lakey, Delta's President and
CEO, stated, "During the third quarter we closed on the previously
announced $130 million Wapiti
transaction. The remaining proceeds that were held in escrow
pending receipt of third party consents were received subsequent to
the third quarter and used to further reduce our borrowings and
fund capital expenditures, which will be reflected in our fourth
quarter results. We completed four wells with our redesigned
fracture stimulation in the third quarter. Each of these
wells is performing as well as, or better than, expected. We
have continued to take steps to improve our operating results.
We have reduced personnel and associated overhead expenses.
We continue to execute on our planned completion program for
the fourth quarter, which includes nine wells. We are
experiencing meaningful improvements in initial production rates
and well recoveries from our redesigned completion technique.
We believe this will add materially to the incremental upside
of the entire Vega Area."
RESULTS FOR THE THIRD QUARTER
The Company reported third quarter net income attributable to
common stockholders of $13.9 million,
or $0.05 per diluted share, compared
with a net loss attributable to common stockholders of
($96.8 million), or ($0.35) per diluted share, in the third quarter
of 2009.
For the quarter ended September 30,
2010, the Company reported total production of 3.65 billion
cubic feet equivalents ("Bcfe"). The decrease in production
when compared to the same period of 2009 is primarily the result of
the asset sale to Wapiti on July 30,
2010.
Total revenue increased 65% to $35.4
million in the quarter, versus revenue of $21.4 million in the quarter ended September 30, 2009. The increase is
primarily related to a $12.7 million
increase in contract drilling and trucking fees from improved third
party rig utilization. For the quarter ended September 30, 2010, oil and gas sales increased
6% to $20.2 million, as compared to
$19.1 million for the prior year
period. The increase was primarily the result of a 79%
increase in natural gas prices and a 12% increase in oil prices,
partially offset by a 23% decrease in production from continuing
operations. The average natural gas price received during the
quarter ended September 30, 2010
increased to $4.52 per thousand cubic
feet ("Mcf") compared to $2.52 per
Mcf for the prior year period. The average oil price received
during the quarter ended September 30,
2010 increased to $69.13 per
barrel ("Bbl") compared to $61.89 per
Bbl for the prior year period.
THIRD QUARTER PRODUCTION VOLUMES, UNIT PRICES AND
COSTS
Production volumes, average prices received and cost per
equivalent Mcf for the three months ended September 30, 2010 and 2009 are as follows:
|
Three Months
Ended
|
|
|
September
30,
|
|
|
2010
|
2009
|
|
Production – Continuing
Operations:
|
|
|
|
Oil (Mbbl)
|
116
|
171
|
|
Gas (Mmcf)
|
2,694
|
3,370
|
|
Total Production (Mmcfe) –
Continuing Operations
|
3,392
|
4,396
|
|
|
|
|
|
Average Price – Continuing
Operations:
|
|
|
|
Oil (per
barrel)
|
$69.13
|
$61.89
|
|
Gas (per Mcf)
|
$4.52
|
$2.52
|
|
|
|
|
|
Costs (per Mcfe) – Continuing
Operations:
|
|
|
|
Lease operating
expense
|
$1.76
|
$1.55
|
|
Transportation
expense
|
$1.00
|
$0.46
|
|
Production
taxes
|
$0.29
|
$0.16
|
|
Depletion
expense
|
$4.02
|
$4.40
|
|
|
|
|
|
Realized derivative gains
(losses) (per Mcfe)
|
$(0.12)
|
$0.08
|
|
|
|
|
Lease Operating Expense. Lease operating expenses
for the three months ended September 30,
2010 decreased to $6.0 million
from $6.8 million in the year earlier
period primarily due to lower water handling costs in the Vega area
as a result of the resumption of development activities and due to
the Wapiti sale. Lease operating expense per Mcfe for the
three months ended September 30, 2010
increased to $1.76 per Mcfe from
$1.55 per Mcfe. The
quarter-over-quarter increase on a per unit basis was primarily due
to the effect of fixed costs spread over a 23% decline in
production volumes.
Transportation Expense. Transportation expense for
the three months ended September 30,
2010 increased to $3.4 million
from $2.0 million in the prior year.
Transportation expense per Mcfe for the three months ended
September 30, 2010 increased 117% to
$1.00 per Mcfe from $0.46 per Mcfe. The increase on a per unit
basis is primarily the result of changes to the Company's Vega gas
marketing contract that went into effect in October 2009 whereby its gas is processed through
a higher efficiency plant. The Vega gas marketing contract
has resulted in higher revenues in the Vega area from improved
natural gas liquids recoveries and a greater percentage of liquids
proceeds retained.
Depreciation, Depletion, Amortization and Accretion – Oil and
Gas. Depreciation, depletion and amortization expense
decreased 28% to $14.4 million for
the three months ended September 30,
2010, as compared to $20.1
million for the comparable year earlier period. Depletion
expense for the three months ended September
30, 2010 decreased to $13.6
million from $19.3 million for
the three months ended September 30,
2009 due to lower production volumes and a decrease in the
per unit depletion rate. The Company's depletion rate decreased
from $4.40 per Mcfe for the three
months ended September 30, 2009 to
$4.02 per Mcfe for the current year
period primarily due to the effect of impairments recorded during
late 2009 on high depletion rate properties.
General and Administrative Expense. General and
administrative expense increased 3% to $10.3
million for the three months ended September 30, 2010, as compared to $10.0 million for the comparable prior year
period. The increase in general and administrative expenses is
attributed to costs associated with the strategic alternatives
evaluation process and $1.4 million
of allowance for doubtful accounts recorded by DHS, partially
offset by decreased non-cash stock compensation expense related to
restricted stock granted in December
2009 and by reduced staffing as a result of reductions in
force during the third quarter of 2010 resulting in lower cash
compensation expense.
RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010
The Company reported a nine month net loss attributable to
common stockholders of ($148.6
million), or ($0.54) per
diluted share, compared with a net loss attributable to common
stockholders of ($294.7 million), or
($1.55) per diluted share, in the
nine months ended September 30, 2009.
The net loss attributable to common stockholders for the nine
months ended September 30, 2010
includes dry hole and impairment costs of $30.9 million as compared to $161.5 million for the year earlier period.
For the nine months ended September 30,
2010, the Company reported total production of 13.4 Bcfe.
Approximately 2.0 Bcfe of production for the nine month
period was from assets sold in the Wapiti Transaction, which is
accounted for under "Discontinued Operations". The following
discussion is on a "Continuing Operations" basis.
Total revenue increased 13% to $110.4
million for the nine months ended September 30, 2010, versus revenue of
$97.3 million in the nine months
ended September 30, 2009. The
increase is mostly related to a $17.9
million period-over-period increase in oil and gas sales and
a $26.8 million increase in contract
drilling and trucking fees, due to improved third party rig
utilization. For the nine months ended September 30, 2010, oil and gas sales increased
32% to $74.7 million, as compared to
$56.8 million for the prior year
period. The increase was primarily the result of a 95%
increase in natural gas prices and a 46% increase in oil prices,
partially offset by a 22% decrease in production from continuing
operations, due to the asset sale with Wapiti. The average
natural gas price received during the nine months ended
September 30, 2010 increased to
$5.12 per Mcf compared to
$2.62 per Mcf for the year earlier
period. The average oil price received during the nine months
ended September 30, 2010 increased to
$70.16 per Bbl compared to
$47.93 per Bbl for the year earlier
period.
NINE MONTHS ENDED PRODUCTION VOLUMES, UNIT PRICES AND
COSTS
Production volumes, average prices received and cost per
equivalent Mcf for the nine months ended September 30, 2010 and 2009 are as follows:
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
2010
|
2009
|
|
Production – Continuing
Operations:
|
|
|
|
Oil (Mbbl)
|
413
|
573
|
|
Gas (Mmcf)
|
8,931
|
11,186
|
|
Total Production (Mmcfe) –
Continuing Operations
|
11,409
|
14,624
|
|
|
|
|
|
Average Price – Continuing
Operations:
|
|
|
|
Oil (per
barrel)
|
$70.16
|
$47.93
|
|
Gas (per Mcf)
|
$5.12
|
$2.62
|
|
|
|
|
|
Costs (per Mcfe) – Continuing
Operations:
|
|
|
|
Lease operating
expense
|
$1.83
|
$1.45
|
|
Transportation
expense
|
$0.98
|
$0.45
|
|
Production
taxes
|
$0.33
|
$0.22
|
|
Depletion
expense
|
$3.80
|
$4.16
|
|
|
|
|
|
Realized derivative gains
(losses) (per Mcfe)
|
$(0.45)
|
$0.03
|
|
|
|
|
Lease Operating Expense. Lease operating expenses
for the nine months ended September 30,
2010 of $20.9 million was
comparable to $21.3 million in the
year earlier period due in part to the Wapiti sale. Lease
operating expense per Mcfe for the nine months ended September 30, 2010 increased to $1.83 per Mcfe from $1.45 per Mcfe for the comparable year earlier
period. The increase on a per unit basis was primarily due to
the effect of fixed costs spread over a 22% decline in production
volumes.
Transportation Expense. Transportation expense for
the nine months ended September 30,
2010 increased to $11.2
million from $6.7 million in
the prior year. Transportation expense per Mcfe for the nine
months ended September 30, 2010
increased to $0.98 per Mcfe from
$0.45 per Mcfe. The increase on
a per unit basis is primarily the result of changes to the
Company's Vega gas marketing contract that went into effect in
October 2009 whereby its gas is
processed through a higher efficiency plant. The Vega gas
marketing contract has resulted in higher revenues in the Vega area
from improved natural gas liquids recoveries and a greater
percentage of liquids proceeds retained.
Depreciation, Depletion, Amortization and Accretion – Oil and
Gas. Depreciation, depletion and amortization expense
decreased 28% to $45.5 million for
the nine months ended September 30,
2010, as compared to $63.0
million for the comparable year earlier period. Depletion
expense for the nine months ended September
30, 2010 was $43.3 million
compared to $60.8 million for the
nine months ended September 30, 2009.
The Company's depletion rate decreased from $4.16 per Mcfe for the nine months ended
September 30, 2009 to $3.80 per Mcfe for the current year period
primarily due to the effect of impairments recorded during late
2009 on high depletion rate properties and Vega area proved
undeveloped reserves added as a result of higher Piceance gas
prices.
General and Administrative Expense. General and
administrative expense increased 6% to $33.4
million for the nine months ended September 30, 2010, as compared to $31.5 million for the comparable prior year
period. The increase in general and administrative expenses is
attributed to costs associated with the strategic alternatives
evaluation process, $1.4 million of
allowance for doubtful accounts recorded by DHS and by increased
non-cash stock compensation expense, partially offset by reduced
staffing as a result of reductions in force during both the first
half of 2009 and the third quarter of 2010 resulting in lower cash
compensation expense.
LIQUIDITY UPDATE
At September 30, 2010, the Company
held approximately $14.2 million in
cash and $13.5 million was available
for borrowing under the current credit facility. The Company
is limited to capital expenditures of $18.5
million for the quarter ending December 31, 2010, based on the original
limitation of $10 million and
$8.5 million carried forward from the
quarter ended September 30, 2010.
The Company was in compliance with its covenants under its
credit facility as of September 30,
2010. The Company continues to move forward with
potential lenders to replace its existing facility prior to its
maturity.
ADDITIONAL FINANCIAL INFORMATION
The following table summarizes the Company's open derivative
contracts at September 30, 2010:
|
|
|
Remaining
|
|
|
Commodity
|
Volume
|
Fixed
Price
|
Term
|
Index
Price
|
|
|
|
|
|
|
|
Crude
oil
|
1,000 Bbls /
Day(1)
|
$52.25
|
Oct '10 -
Dec '10
|
NYMEX –
WTI
|
|
Crude
oil
|
500 Bbls /
Day
|
$57.70
|
Jan '11 -
Dec '11
|
NYMEX –
WTI
|
|
Natural
gas
|
6,000 MMBtu
/ Day
|
$5.720
|
Oct '10 -
Dec '10
|
NYMEX –
HHUB
|
|
Natural
gas
|
15,000 MMBtu
/ Day
|
$4.105
|
Oct '10 -
Dec '10
|
CIG
|
|
Natural
gas
|
5,367 MMBtu
/ Day
|
$3.973
|
Oct '10 -
Dec '10
|
CIG
|
|
Natural
gas
|
12,000 MMBtu
/ Day
|
$5.150
|
Jan '11 -
Dec '11
|
CIG
|
|
Natural
gas
|
3,253 MMBtu
/ Day
|
$5.040
|
Jan '11 -
Dec '11
|
CIG
|
|
|
|
|
|
|
|
(1) As a result of the
closing of the Wapiti Transaction, for the period from
October to December 2010, derivative contract volumes were
anticipated to exceed physical production volumes in certain
months. Accordingly, in October 2010, the Company partially
terminated its November and December 2010 derivatives for a cost of
$729,000 to reduce the hedged volume from 1,000 barrels per day to
625 barrels per day.
|
|
|
|
|
|
|
OPERATIONS UPDATE
Total Company net production for October was 34 Mmcfe/d.
During the third quarter 2010 the Company completed four
wells in the Vega area. Two of the four wells completions
were up-hole completions in the upper-most section of the gas
column. The other two completions were of the entire gas
column. From the remaining uncompleted well inventory, the
Company completed four wells in October and plans on completing an
additional five wells by the end of the year.
2010 CAPITAL EXPENDITURES AND PRODUCTION GUIDANCE
In the fourth quarter of 2010, the Company intends to focus
capital expenditures on completing nine previously drilled wells
and is drilling a deeper well to evaluate potential below the
Williams Fork formation in the Vega Area. Production for the
fourth quarter is expected to be in line with previously provided
guidance and range between 3.25 Bcfe and 3.55 Bcfe.
INVESTOR CONFERENCE CALL
The Company will host an investor conference call Tuesday, November 9, 2010 at 12:00 noon Eastern Time (10:00
am Mountain Time) to discuss financial and operating results
for the third quarter 2010.
Shareholders and other interested parties may participate in the
conference call by dialing 877-317-6789 (international callers dial
412-317-6789) and referencing the ID code "Delta Petroleum call," a
few minutes before 12:00 noon Eastern
Time on November 9, 2010.
The call will also be broadcast live and can be accessed
through the Company's website at
http://www.deltapetro.com/eventscalendar.html. A replay of
the conference call will be available one hour after the completion
of the conference call from November 9,
2010 until November 17, 2010
by dialing 877-344-7529 (international callers dial 412-317-0088)
and entering the conference ID 445714.
ABOUT DELTA PETROLEUM CORPORATION
Delta Petroleum Corporation is an oil and gas exploration and
development company based in Denver,
Colorado. The Company's core area of operation is the Rocky
Mountain Region, where the majority of its proved reserves,
production and long-term growth prospects are located. Its
common stock is listed on the NASDAQ Global Market System under the
symbol "DPTR."
FORWARD-LOOKING STATEMENTS
Forward-looking statements in this announcement are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Readers are cautioned that all
forward-looking statements are based on management's present
expectations, estimates and projections, but involve risks and
uncertainty, including without limitation the effects of oil and
natural gas prices, availability of capital to fund required
payments on our credit facility and our projected capital
development and working capital needs, as well as general market
conditions, competition and pricing, the increase in supply and
contraction in demand for natural gas in the United States, lack of availability of
third party services including frac crews, the impact of current
economic and financial conditions on our ability to raise capital,
availability of borrowings under our credit facility and the
ability to obtain a new or replacement credit facility prior to the
maturity in January 2011 of our
existing credit facility, uncertainties in the projection of future
rates of production, unanticipated recovery or production problems,
unanticipated results from wells being drilled or completed, the
effects of delays in completion of gas gathering systems, pipelines
and processing facilities, as well as general market
conditions, competition and pricing. Please refer to the
Company's report on Form 10-K for the year ended December 31, 2009 and subsequent reports on Forms
10-Q and 8-K as filed with the Securities and Exchange Commission
for additional information. The Company is under no
obligation (and expressly disclaims any obligation) to update or
alter its forward-looking statements, whether as a result of new
information, future events or otherwise.
For further information contact the Company at (303) 293-9133 or
via email at investorrelations@deltapetro.com.
DELTA PETROLEUM
CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
|
|
|
September
30,
|
|
December
31,
|
|
|
2010
|
|
2009
|
|
ASSETS
|
(In
thousands, except share data)
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$14,197
|
|
$61,918
|
|
Short-term restricted
deposits
|
100,000
|
|
100,000
|
|
Trade accounts receivable,
net of allowance for doubtful accounts of $2,348 and $100,
respectively
|
15,594
|
|
16,654
|
|
Property sale purchase
price receivable
|
17,750
|
|
-
|
|
Deposits and prepaid
assets
|
945
|
|
3,103
|
|
Inventories
|
3,965
|
|
5,588
|
|
Derivative
instruments
|
1,165
|
|
-
|
|
Other current
assets
|
3,385
|
|
5,189
|
|
Total current
assets
|
157,001
|
|
192,452
|
|
|
|
|
|
|
Property and
equipment:
|
|
|
|
|
Oil and gas properties,
successful efforts method of accounting:
|
|
|
|
|
Unproved
|
235,612
|
|
280,844
|
|
Proved
|
867,036
|
|
1,379,920
|
|
Drilling and trucking
equipment
|
174,445
|
|
177,762
|
|
Pipeline and gathering
systems
|
97,696
|
|
92,064
|
|
Other
|
15,573
|
|
16,154
|
|
Total property and
equipment
|
1,390,362
|
|
1,946,744
|
|
Less accumulated
depreciation and depletion
|
(512,677)
|
|
(800,501)
|
|
Net property and
equipment
|
877,685
|
|
1,146,243
|
|
|
|
|
|
|
Long-term assets:
|
|
|
|
|
Long-term restricted
deposit
|
100,000
|
|
100,000
|
|
Investments in
unconsolidated affiliates
|
3,208
|
|
7,444
|
|
Deferred financing
costs
|
2,109
|
|
3,017
|
|
Other long-term
assets
|
6,352
|
|
8,329
|
|
Total long-term
assets
|
111,669
|
|
118,790
|
|
|
|
|
|
|
Total
assets
|
$1,146,355
|
|
$1,457,485
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Credit facility –
Delta
|
$21,500
|
|
$-
|
|
Credit facility –
DHS
|
71,590
|
|
83,268
|
|
Installment payable on
property acquisition
|
99,785
|
|
97,874
|
|
Accounts
payable
|
32,410
|
|
44,225
|
|
Offshore litigation
payable
|
-
|
|
13,877
|
|
Other accrued
liabilities
|
17,510
|
|
13,459
|
|
Derivative
instruments
|
-
|
|
19,497
|
|
Total current
liabilities
|
242,795
|
|
272,200
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
Installment payable on
property acquisition, net of current portion
|
97,244
|
|
95,381
|
|
7% Senior notes
|
149,666
|
|
149,609
|
|
3 3/4% Senior convertible
notes
|
107,431
|
|
104,008
|
|
Credit facility –
Delta
|
-
|
|
124,038
|
|
Asset retirement
obligations
|
3,942
|
|
7,654
|
|
Derivative
instruments
|
65
|
|
7,475
|
|
Total long-term
liabilities
|
358,348
|
|
488,165
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
Preferred stock, $.01 par
value:
|
|
|
|
|
authorized
3,000,000 shares, none issued
|
-
|
|
-
|
|
Common stock, $.01 par
value: authorized 600,000,000 shares, issued 285,637,000 shares at
September 30, 2010 and 282,548,000 shares at December 31,
2009
|
2,856
|
|
2,825
|
|
Additional paid-in
capital
|
1,630,357
|
|
1,625,035
|
|
Treasury stock at cost;
33,000 shares at September 30, 2010 and 42,000 shares at December
31, 2009
|
(31)
|
|
(268)
|
|
Accumulated
deficit
|
(1,087,616)
|
|
(939,010)
|
|
Total Delta
stockholders' equity
|
545,566
|
|
688,582
|
|
Non-controlling
interest
|
(354)
|
|
8,538
|
|
Total
equity
|
545,212
|
|
697,120
|
|
|
|
|
|
|
Total liabilities
and equity
|
$1,146,355
|
|
$1,457,485
|
|
|
|
|
|
DELTA PETROLEUM
CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(In
thousands, except per share amounts)
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Oil and gas
sales
|
$20,233
|
|
$19,059
|
|
$74,734
|
|
$56,786
|
|
Contract drilling and
trucking fees
|
15,204
|
|
2,538
|
|
36,200
|
|
9,425
|
|
Gain (loss) on offshore
litigation award and property sales, net
|
(1)
|
|
(150)
|
|
(539)
|
|
31,054
|
|
Total
revenue
|
35,436
|
|
21,447
|
|
110,395
|
|
97,265
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Lease operating
expense
|
5,969
|
|
6,809
|
|
20,903
|
|
21,273
|
|
Transportation
expense
|
3,388
|
|
2,028
|
|
11,195
|
|
6,653
|
|
Production
taxes
|
996
|
|
717
|
|
3,760
|
|
3,217
|
|
Exploration
expense
|
368
|
|
891
|
|
952
|
|
2,422
|
|
Dry hole costs and
impairments
|
(262)
|
|
53,407
|
|
30,859
|
|
161,471
|
|
Depreciation, depletion,
amortization and accretion – oil and gas
|
14,410
|
|
20,065
|
|
45,540
|
|
62,992
|
|
Drilling and trucking
operating expenses
|
12,041
|
|
2,818
|
|
28,053
|
|
10,416
|
|
Depreciation and
amortization – drilling and trucking
|
4,801
|
|
5,545
|
|
15,599
|
|
17,512
|
|
General and
administrative
|
10,345
|
|
9,953
|
|
33,372
|
|
31,545
|
|
Executive severance
expense, net
|
(674)
|
|
-
|
|
(674)
|
|
3,739
|
|
Total
operating expenses
|
51,382
|
|
102,233
|
|
189,559
|
|
321,240
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
(15,946)
|
|
(80,786)
|
|
(79,164)
|
|
(223,975)
|
|
|
|
|
|
|
|
|
|
|
Other income and
(expense):
|
|
|
|
|
|
|
|
|
Interest expense and
financing costs, net
|
(9,310)
|
|
(9,706)
|
|
(29,426)
|
|
(41,907)
|
|
Other income (expense),
net
|
(36)
|
|
220
|
|
(207)
|
|
1,630
|
|
Realized gain (loss) on
derivative instruments, net
|
(418)
|
|
370
|
|
(5,132)
|
|
370
|
|
Unrealized gain (loss) on
derivative instruments, net
|
7,124
|
|
(5,923)
|
|
28,072
|
|
(27,034)
|
|
Income (loss) from
unconsolidated affiliates
|
(90)
|
|
(454)
|
|
893
|
|
(3,324)
|
|
|
|
|
|
|
|
|
|
|
Total other
expense
|
(2,730)
|
|
(15,493)
|
|
(5,800)
|
|
(70,265)
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations
before income taxes and discontinued operations
|
(18,676)
|
|
(96,279)
|
|
(84,964)
|
|
(294,240)
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
86
|
|
265
|
|
564
|
|
(53)
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
(18,762)
|
|
(96,544)
|
|
(85,528)
|
|
(294,187)
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from results
of operations and sale of discontinued operations, net of
tax
|
29,495
|
|
(4,429)
|
|
(72,212)
|
|
(16,702)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
10,733
|
|
(100,973)
|
|
(157,740)
|
|
(310,889)
|
|
|
|
|
|
|
|
|
|
|
Less net loss attributable
to non-controlling interest
|
3,209
|
|
4,146
|
|
9,134
|
|
16,191
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to Delta common stockholders
|
$13,942
|
|
$(96,827)
|
|
$(148,606)
|
|
$(294,698)
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable to Delta
common stockholders:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$(15,553)
|
|
$(92,398)
|
|
$(76,394)
|
|
$(277,996)
|
|
Income (loss) from
discontinued operations, net of tax
|
29,495
|
|
(4,429)
|
|
(72,212)
|
|
(16,702)
|
|
Net income
(loss)
|
$13,942
|
|
$(96,827)
|
|
$(148,606)
|
|
$(294,698)
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) attributable
to Delta common stockholders per common share:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$(0.06)
|
|
$(0.34)
|
|
$(0.28)
|
|
$(1.47)
|
|
Discontinued
operations
|
0.11
|
|
(0.01)
|
|
(0.26)
|
|
(0.08)
|
|
Net income
(loss)
|
$0.05
|
|
$(0.35)
|
|
$(0.54)
|
|
$(1.55)
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss)
attributable to Delta common stockholders per common
share:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
$(0.05)
|
|
$(0.34)
|
|
$(0.28)
|
|
$(1.47)
|
|
Discontinued
operations
|
0.10
|
|
(0.01)
|
|
(0.26)
|
|
(0.08)
|
|
Net income
(loss)
|
$0.05
|
|
$(0.35)
|
|
$(0.54)
|
|
$(1.55)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
275,306
|
|
275,465
|
|
275,437
|
|
189,740
|
|
Diluted
|
282,063
|
|
275,465
|
|
275,437
|
|
189,740
|
|
|
|
|
|
|
|
|
|
DELTA PETROLEUM
CORPORATION
AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP
MEASURES
(Unaudited)
|
|
($ in
thousands)
|
|
THREE MONTHS ENDED
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
CASH USED IN OPERATING
ACTIVITIES
|
$(2,685)
|
|
$(12,690)
|
|
Changes in assets and
liabilities
|
1,901
|
|
10,173
|
|
Exploration costs
|
368
|
|
891
|
|
Discretionary cash flow
(deficiency)*
|
$(416)
|
|
$(1,626)
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS ENDED
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
|
$(25,958)
|
|
$20,159
|
|
Changes in assets and
liabilities
|
29,172
|
|
(1,113)
|
|
Less net proceeds from offshore
litigation award
|
-
|
|
(48,701)
|
|
Exploration costs
|
952
|
|
2,422
|
|
Discretionary cash flow
(deficiency)*
|
$4,166
|
|
$(27,233)
|
|
|
|
|
|
*
|
Discretionary cash flow
represents net cash provided by (used in) operating activities
before changes in assets and liabilities, net proceeds from
offshore litigation award and exploration costs.
Discretionary cash flow is presented as a supplemental
financial measurement in the evaluation of our business. We
believe that it provides additional information regarding our
ability to meet our future debt service, capital expenditures and
working capital requirements. This measure is widely used by
investors and rating agencies in the valuation, comparison, rating
and investment recommendations of companies. Discretionary
cash flow is not a measure of financial performance under GAAP.
Accordingly, it should not be considered as a substitute for
cash flows from operating, investing or financing activities as an
indicator of cash flows, or as a measure of liquidity.
|
|
|
|
THREE MONTHS ENDED
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
Net income (loss)
|
$10,733
|
|
$(100,973)
|
|
Minority interest
|
3,209
|
|
4,146
|
|
Income tax expense
|
86
|
|
265
|
|
Interest expense and financing
costs, net
|
9,310
|
|
9,706
|
|
Depletion, depreciation and
amortization
|
20,680
|
|
31,260
|
|
(Gain) loss on offshore
litigation award, property sales and other
|
(15)
|
|
211
|
|
Gain on discontinued
operations
|
(28,372)
|
|
-
|
|
Unrealized (gain) loss on
derivative instruments, net
|
(7,124)
|
|
5,923
|
|
Exploration, dry hole and
impairment costs
|
106
|
|
54,298
|
|
EBITDAX**
|
$8,613
|
|
$4,836
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
CASH USED IN OPERATING
ACTIVITIES
|
$(2,685)
|
|
$(12,690)
|
|
Changes in assets and
liabilities
|
1,901
|
|
10,173
|
|
Interest net of financing
costs
|
5,595
|
|
5,522
|
|
Exploration costs
|
368
|
|
891
|
|
Other non-cash items
|
3,434
|
|
940
|
|
EBITDAX**
|
$8,613
|
|
$4,836
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS ENDED
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
Net loss
|
$(157,740)
|
|
$(310,889)
|
|
Minority interest
|
9,134
|
|
16,191
|
|
Income tax expense
(benefit)
|
564
|
|
(53)
|
|
Interest expense and financing
costs, net
|
29,426
|
|
41,907
|
|
Depletion, depreciation and
amortization
|
76,412
|
|
99,981
|
|
(Gain) loss on offshore
litigation award, property sales and other
|
786
|
|
(32,717)
|
|
Gain on discontinued
operations
|
(28,372)
|
|
-
|
|
Unrealized (gain) loss on
derivative instruments, net
|
(28,072)
|
|
27,034
|
|
Exploration, dry hole and
impairment costs
|
123,973
|
|
163,893
|
|
EBITDAX**
|
$26,111
|
|
$5,347
|
|
|
|
|
|
NINE MONTHS ENDED
|
September
30,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
CASH USED IN OPERATING
ACTIVITIES
|
$(25,958)
|
|
$20,159
|
|
Changes in assets and
liabilities
|
29,172
|
|
(1,113)
|
|
Less net proceeds from offshore
litigation award
|
-
|
|
(48,701)
|
|
Interest net of financing
costs
|
18,496
|
|
26,296
|
|
Exploration costs
|
952
|
|
2,422
|
|
Other non-cash items
|
3,449
|
|
6,284
|
|
EBITDAX**
|
$26,111
|
|
$5,347
|
|
|
|
|
|
**
|
EBITDAX represents net income
(loss) before minority interest, income tax expense (benefit),
interest expense and financing costs, net, depreciation, depletion
and amortization expense, gain and loss on sale of oil and gas
properties, offshore litigation and other investments, net, gain on
discontinued operations, unrealized gains and losses on derivative
contracts and exploration and impairment and dry hole costs.
EBITDAX is presented as a supplemental financial measurement
in the evaluation of our business. We believe that it
provides additional information regarding our ability to meet our
future debt service, capital expenditures and working capital
requirements. This measure is widely used by investors and
rating agencies in the valuation, comparison, rating and investment
recommendations of companies. EBITDAX is also a financial
measurement that, with certain negotiated adjustments, is reported
to our lenders pursuant to our bank credit agreement and is used in
the financial covenants in our bank credit agreement and our senior
note indentures. EBITDAX is not a measure of financial
performance under GAAP. Accordingly, it should not be
considered as a substitute for net income, income from operations,
or cash flow provided by (used in) operating activities prepared in
accordance with GAAP.
|
|
|
|
SOURCE Delta Petroleum Corporation