For the three-month period ended June 30, 2010, Mariner Energy,
Inc. (NYSE: ME) reported net income of $1.7 million, which equates
to basic and fully-diluted earnings per share of $0.02. This
compares with net income of $17.2 million, or $0.19 per basic and
fully-diluted share, for the same three-month period in the prior
year.
Net production for second quarter 2010 was 4,764 Mboe (thousand
barrels of oil equivalent), compared with 5,481 Mboe for second
quarter 2009. Total natural gas net production for second quarter
2010 was 17.7 billion cubic feet (Bcf), compared with 23.8 Bcf for
the same period in the prior year. Total net oil production for
second quarter 2010 was 1.3 million barrels (MMBbls), compared with
1.2 MMBbls for the same period in 2009. Natural gas liquids (NGL)
net production for second quarter 2010 was 0.5 MMBbls, compared
with 0.3 MMBbls for second quarter 2009.
For second quarter 2010, Mariner's average realized natural gas
price was $5.23 per thousand cubic feet (Mcf) compared with $5.98
per Mcf for the same period in 2009. Mariner's average realized oil
price was $73.98 per barrel (Bbl) for second quarter 2010, compared
with $66.91 per Bbl for second quarter 2009. The average realized
NGL price was $39.28 per Bbl for second quarter 2010, compared with
$24.68 per Bbl for the same period in 2009. Average realized prices
reflect settlements during the period under Mariner's hedging
program.
OPERATIONAL UPDATE
Offshore
Mariner drilled six offshore wells in the second quarter 2010,
five of which were successful:
Working Water
Well Name Operator Interest Depth (Ft) Location
--------- -------- -------- ---------- ----------------------
South Marsh Island 11
#58 Mariner 100% 73 Conventional Shelf
West Cameron 112 A-2 Mariner 55% 43 Conventional Shelf
De Soto Canyon 4 #1 Murphy 13% 5,822 Conventional Deepwater
Keathley Canyon 875 #2 Anadarko 17% 6,840 Deepwater Subsalt
High Island 206 B-3 Mariner 100% 55 Conventional Shelf
As of June 30, 2010 no offshore wells were drilling.
Onshore
In second quarter 2010, Mariner drilled 21 development wells and
nine extension wells in the Permian Basin, all of which were
successful. The company also drilled three wells on other onshore
properties, all of which were successful. As of June 30, 2010,
Mariner has seven rigs working on its Permian Basin properties and
one on other onshore properties.
About Mariner Energy, Inc.
Mariner Energy is an independent oil and gas exploration,
development, and production company headquartered in Houston,
Texas, with principal operations in the Permian Basin, Gulf Coast
and Gulf of Mexico. For more information about Mariner, visit the
company's website at www.mariner-energy.com.
MARINER ENERGY, INC.
SELECTED OPERATING DATA
(Unaudited)
Net Production, Realized Pricing and Operating Costs
Three Months Ended
June 30,
2010 2009
--------- ---------
Net production:
Natural gas (Bcf) 17.7 23.8
Oil (MMBbls) 1.3 1.2
Natural gas liquids (MMBbls) 0.5 0.3
Total production (Mboe) 4,764 5,481
Realized prices (net of hedging):
Natural gas ($/Mcf) $ 5.23 $ 5.98
Oil ($/Bbl) 73.98 66.91
Natural gas liquids ($/Bbl) 39.28 24.68
Operating costs per Boe:
Lease operating expense $ 12.53 $ 8.59
Severance and ad valorem taxes 1.28 0.68
Transportation expense 0.92 0.83
General and administrative expense 5.01 3.85
Depreciation, depletion and amortization 19.76 18.30
MARINER ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
2010 2009
----------- -----------
Revenues:
Natural gas sales $ 92,414 $ 142,363
Oil sales 96,496 78,954
Natural gas liquids sales 20,166 8,193
Other revenues 1,696 2,460
----------- -----------
Total revenues 210,772 231,970
Cost and Expenses:
Lease operating expense 59,710 47,092
Severance and ad valorem taxes 6,101 3,730
Transportation expense 4,401 4,575
General and administrative expense 23,859 21,122
Depreciation, depletion and amortization 94,127 100,282
Other miscellaneous expense 807 2,758
----------- -----------
Total costs and expenses 189,005 179,559
----------- -----------
OPERATING INCOME (LOSS) 21,767 52,411
Other Income (Expense):
Interest income 634 302
Interest expense, net of capitalized amounts (19,885) (16,972)
----------- -----------
Income (Loss) before taxes 2,516 35,741
(Provision) Benefit for income taxes (812) (18,528)
----------- -----------
Net income (loss) $ 1,704 $ 17,213
=========== ===========
Earnings per share:
Net income (loss) per share-basic $ 0.02 $ 0.19
Net income (loss) per share-diluted $ 0.02 $ 0.19
Weighted average shares outstanding-basic 101,371,705 91,798,761
Weighted average shares outstanding-diluted 102,631,715 92,152,933
MARINER ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
June 30, December 31,
2010 2009
----------- -----------
Current Assets
Cash and cash equivalents $ 7,656 $ 8,919
Receivables, net of allowances 135,486 148,725
Insurance receivables 7,681 8,452
Derivative financial instruments 25,792 2,239
Intangible assets 12,676 22,615
Prepaid expenses and other 27,126 11,667
Deferred income tax - 9,704
----------- -----------
Total current assets 216,417 212,321
Property and Equipment
Proved oil and gas properties, full-cost method 5,420,608 5,117,273
Unproved properties, not subject to amortization 439,604 292,237
----------- -----------
Total oil and gas properties 5,860,212 5,409,510
Other property and equipment 56,202 55,695
Accumulated depreciation, depletion and
amortization:
Proved oil and gas properties (3,059,123) (2,884,411)
Other property and equipment (10,039) (8,235)
----------- -----------
Total accumulated depreciation, depletion and
amortization (3,069,162) (2,892,646)
----------- -----------
Total property and equipment, net 2,847,252 2,572,559
Derivative financial instruments 19,154 902
Deferred income tax - 12,491
Other assets, net of amortization 83,772 68,932
----------- -----------
TOTAL ASSETS $ 3,166,595 $ 2,867,205
=========== ===========
Current Liabilities
Accounts payable $ 8,805 $ 3,579
Accrued liabilities 139,923 137,206
Accrued capital costs 139,404 140,941
Deferred income tax 6,447 -
Abandonment liability 86,799 54,915
Accrued interest 8,171 8,262
Derivative financial instruments 7,606 27,708
----------- -----------
Total current liabilities 397,155 372,611
Long-Term Liabilities
Abandonment liability 308,443 362,972
Deferred income tax 10,306 -
Derivative financial instruments - 15,017
Long-term debt 1,458,564 1,194,850
Other long-term liabilities 35,475 38,800
----------- -----------
Total long-term liabilities 1,812,788 1,611,639
Stockholders' Equity
Common stock, $.0001 par value; 180,000,000
shares authorized; 103,140,173 shares issued
and outstanding at June 30, 2010; 180,000,000
shares authorized, 101,806,825 shares issued
and outstanding at December 31, 2009 10 10
Additional paid-in capital 1,266,081 1,257,526
Accumulated other comprehensive income/(loss) 22,220 (25,955)
Accumulated deficit (331,659) (348,626)
----------- -----------
Total stockholders' equity 956,652 882,955
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,166,595 $ 2,867,205
=========== ===========
MARINER ENERGY, INC.
SELECTED CASH FLOW INFORMATION
(In thousands)
(Unaudited)
Six Months Ended
June 30,
2010 2009
---------- ----------
Operating cash flow (1) $ 236,140 $ 280,532
Changes in operating assets and liabilities (37,907) 57,199
---------- ----------
Net cash provided by operating activities $ 198,233 $ 337,731
========== ==========
Net cash used in investing activities $ (455,556) $ (319,241)
========== ==========
Net cash provided by financing activities $ 256,060 $ 11,949
========== ==========
Increase (decrease) in cash and cash equivalents $ (1,263) $ 30,439
========== ==========
(1) See below for reconciliation of this non-GAAP measure.
Important Information Concerning Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical facts, that address activities
that Mariner assumes, plans, expects, believes, projects, estimates
or anticipates (and other similar expressions) will, should or may
occur in the future are forward-looking statements. Our
forward-looking statements generally are accompanied by words such
as "may," "will," "estimate," "project," "predict," "believe,"
"expect," "anticipate," "potential," "plan," "goal," or other words
that convey the uncertainty of future events or outcomes.
Forward-looking statements provided in this press release are based
on Mariner's current belief based on currently available
information as to the outcome and timing of future events and
assumptions that Mariner believes are reasonable. Mariner does not
undertake to update its guidance, estimates or other
forward-looking statements as conditions change or as additional
information becomes available. Estimated reserves are related to
hydrocarbon prices. Hydrocarbon prices used in estimating reserves
may vary significantly from actual future prices. Therefore,
volumes of reserves actually recovered may differ significantly
from such estimates. Mariner cautions that its forward-looking
statements are subject to all of the risks and uncertainties
normally incident to the exploration for and development,
production and sale of oil and natural gas. These risks include,
but are not limited to, price volatility or inflation,
environmental risks, drilling and other operating risks, regulatory
changes, the uncertainty inherent in estimating future oil and gas
production or reserves, and other risks described in Mariner's
latest Annual Report on Form 10-K and other documents filed by
Mariner with the Securities and Exchange Commission (SEC). Any of
these factors could cause Mariner's actual results and plans of
Mariner to differ materially from those in the forward-looking
statements. Investors are urged to read Mariner's latest Annual
Report on Form 10-K and other documents filed by Mariner with the
SEC.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities of Mariner.
Reconciliation of Non-GAAP Measure: Operating Cash Flow
Operating cash flow (OCF) is not a financial or operating
measure under generally accepted accounting principles in the
United States of America (GAAP). The table below reconciles OCF to
related GAAP information. Mariner believes that OCF is a widely
accepted financial indicator that provides additional information
about its ability to meet its future requirements for debt service,
capital expenditures and working capital, but OCF should not be
considered in isolation or as a substitute for net income,
operating income, net cash provided by operating activities or any
other measure of financial performance presented in accordance with
GAAP or as a measure of a company's profitability or liquidity.
Six Months Ended
June 30,
2010 2009
--------- ----------
(In thousands)
(Unaudited)
Net cash provided by operating activities $ 198,233 $ 337,731
Less: Changes in operating assets and liabilities (37,907) 57,199
--------- ----------
Operating cash flow (non-GAAP) $ 236,140 $ 280,532
========= ==========
Mariner Energy Inc. (NYSE:ME)
Historical Stock Chart
From May 2024 to Jun 2024
Mariner Energy Inc. (NYSE:ME)
Historical Stock Chart
From Jun 2023 to Jun 2024
