HOUSTON, March 6, 2013 /PRNewswire/ -- Endeavour
International Corporation (NYSE: END) (LSE: ENDV) today reported
fourth quarter 2012 net loss, as adjusted of $7.7 million compared to a net loss, as adjusted
of $5.8 million for 2011. On a GAAP
basis, net loss for the fourth quarter of 2012 was $6.5 million as compared to net loss of
$44.6 million for the same quarter in
2011.
Sales volumes for the 2012 fourth quarter period were 11,541
boepd, compared to 4,253 boepd for the same quarter in the prior
year. Physical production for the fourth quarter of 2012 averaged
10,300 barrels of oil equivalent per day ("boepd") compared to
approximately 4,100 boepd for the same quarter of 2011,
representing a 151% increase.
Fourth Quarter highlights include:
- Finance:
- Completed an offering for an additional $54 million of the 12% First Priority Notes due
2018
- Fully redeemed the $25 million
12% Senior Subordinated Notes
- Operational:
- Proved reserves in the U.K. increased 186% year-over-year
- Drilling commenced and infrastructure substantially completed
on the Rochelle development
- Completed an exchange of Haynesville assets for Pennsylvania
Marcellus assets
Recent Events:
- Strategic Review Process:
- The Board of Directors initiated a process to explore a broad
range of strategic alternatives to further enhance shareholder
value
- Current business focus remains on executing the operational
plan
- Management and Board Developments:
- Catherine L. Stubbs named Chief
Financial Officer
- Ashok Nayyor resigns from the Board of Directors
- Finance:
- Received $22.5 million through
the forward sale of U.K. oil production
- Obtained an extension on the Revolving Credit Facility to
midyear 2014
- Replaced or extended the Reimbursement Agreements to midyear
2014
- Entered into a Monetary Production Payment for $107.5 million to be satisfied out of proceeds of
production from Endeavour's U.K. North Sea assets
- Established 2013 Capex budget in the U.K. of $140 million - $150 million
- North Sea:
- Drilling commenced at West
Rochelle after suspension of the East Rochelle production well
- Bacchus third production well expected to commence drilling in
March
- U.S. Onshore:
- Established a 23,000 acre Federal unit in Northwestern Colorado
"In 2012, the Company undertook two major development projects
and a sizable acquisition resulting in increased oil production and
reserves in the U.K. North Sea. Although the path to growth was
challenging, we were able to manage through a series of complex
business transactions to close on the additional working interest
at Alba and bring the Bacchus development on-line. We remain
confident that Rochelle production
will be on-line soon demonstrating the quality of this important
asset," said William L. Transier,
chairman, chief executive officer and president. "Our ability
to increase our liquidity quickly shows the perseverance of our
management team to handle unexpected events for the benefit of all
stakeholders."
Strategic Review Process
On February 14, 2013 Endeavour
announced the Board of Directors intent to review a broad range of
strategic alternatives. The primary motivation of the strategic
review is to accelerate the delevering of the balance sheet and
unlock the underlying value of the assets. The options under
consideration include:
- a sale, joint venture or partnership in respect of the
Company's activities in the North Sea;
- a sale of specific assets;
- a sale or merger of the Company; or
- continuing to execute on the Company's operational plan.
Tudor, Pickering, Holt & Co. and Lambert Energy Advisory
Ltd. have been engaged as the Company's financial advisors in this
process. There is no assurance that the strategic alternatives
review will result in Endeavour changing its current business plan
or completing any such transaction.
Management Developments
Catherine "Cathy" Stubbs was named Chief Financial Officer for
the Company on February 14, 2013. She
has over 20 years of experience in financial management in the
energy industry and eight years with Endeavour. Cathy has served in
various roles of increasing responsibility in corporate
development, accounting and financial controls, and treasury roles
since the inception of Endeavour and most recently served as the
senior vice president, finance.
Ashok Nayyor resigned from the Board of Directors effective
March 5, 2013. Mr. Nayyor joined the
Board in August of 2012 and he made a significant contribution
during his tenure as a board member.
Finance
Since year-end 2012, Endeavour has completed several
transactions to improve the Company's liquidity position and has
extended the maturities of its Revolving Credit Facility, as well
as the two Reimbursement Agreements to midyear 2014.
In January, the Company entered into a new reimbursement
arrangement to provide for a replacement Letter of Credit with an
unaffiliated third party for $33
million and terminated its previous Reimbursement Agreement
in the same amount. The new agreement, which secures the Company's
decommissioning obligations in connection with the specific assets
in the U.K. North Sea, matures in July of 2014.
In February, Endeavour entered into a forward sale agreement
with one of its established purchasers and received a payment of
approximately $22.5 million for a
specified volume of crude oil in excess of 200,000 barrels to be
delivered over a six month period from its U.K. North Sea
production.
In early March, the Company and its existing lenders agreed to
extensions on the Revolving Credit Facility and the $120 million Reimbursement Agreement.
$100 million of the $115 million outstanding on the Revolving Credit
Facility was extended from October 31,
2013 to June 30, 2014. The
full amount of the $120 million
Reimbursement Agreement was extended from December 31, 2013 to June
30, 2014.
Endeavour also entered into a Monetary Production Payment with a
group of investors for the purchase price amount of $107.5 million. Closing is subject to the
satisfaction of standard conditions, including regulatory approval
in the United Kingdom. The
Monetary Production Payment will be satisfied out of the production
from certain U.K. North Sea assets and is expected to be satisfied
over a two year period.
For 2013, the Company anticipates a direct oil and gas capital
expenditures budget in the U.K. of $140
million to $150 million. Approximately sixty percent of the
U.K. capital budget is being allocated to final drilling and
completion of the Rochelle
development, as well as the third development well at Bacchus.
Endeavour has also allocated $30 million to
$40 million of its capital budget for its U.S. acreage with
plans to spend approximately half of that capital in the
Pennsylvania Marcellus area for infrastructure expansion and well
completions. The U.S. spend is primarily discretionary and will be
evaluated once Rochelle production
is on-line and after the completion of the strategic review
process.
The completion of these recent financing activities are designed
to provide sufficient liquidity to bring the Rochelle development on line, drill the third
well at Bacchus and allow sufficient time for a thoughtful
and disciplined strategic review process.
Operational Update
United Kingdom
In mid-February, the Transocean Prospect rig moved to the
West Rochelle area and commenced
drilling of the production well. Estimated time to drill and
complete the well is approximately 120 days. At East
Rochelle, analysis and testing of the cause of the non-uniform hole
around the conductor pipe is on-going. Once the analysis is
concluded, the Company will be able to determine the optimal path
forward for the completion of the East
Rochelle well. Endeavour anticipates drilling
operations will re-commence at East
Rochelle following first production at West Rochelle. A majority of the Rochelle subsea infrastructure has been
installed at the field and the modification work to the Scott
platform is nearing completion.
At the Bacchus development, the operator announced plans to
commence drilling the third production well in March. In 2012, the
partnership drilled two of three planned production wells. Due to
the additional positive data gained from the second production
well, the Bacchus partners decided to observe field results before
proceeding forward with the third well. Endeavour has a 30% working
interest in the field.
At Alba production volumes continue to be impacted by water
handling issues. The matter is being dealt with by the operator and
it is anticipated that the asset will return to normal production
levels during the year.
United States Onshore
During 2012, Endeavour maintained a disciplined capital approach
in the U.S. For the year, two gross wells were drilled and
completed in the Louisiana Haynesville acreage, with all critical
acreage currently held by production. Net daily production averaged
10.6 MMCFe/D for the fourth quarter and 14.3 MMCFe/D for the full
year 2012.
In the fourth quarter of 2012, the Company closed an exchange of
Haynesville assets for Pennsylvania Marcellus assets and obtained
operatorship, while increasing the ownership to100% working
interest in 31,000 total net acres and all upstream and midstream
assets. In conjunction with the exchange, Endeavour secured an
off-take solution in Cameron
County for up to an additional 10 mmcf/d of production by
year-end 2013. The Company has three wells drilled and cased in the
area waiting on completion.
In the Montana Heath tight oil play, Endeavour deferred
horizontal re-entries of its vertical pilot wells to evaluate
drilling and production results from offset operators. In
Northwest Colorado, the Company
formed a 23,000 acre Federal unit with stacked Upper Cretaceous
targets and liquids-rich potential. An initial test well is planned
for later this year.
2012 Reserves
Year-over-year U.K. proved reserves increased 186%, with the
Company's total proved reserves increasing 13%. Oil
represented 54% of total proved reserves at December 31, 2012 up from 18% at the end of the
prior year due to the increased working interest in Alba and
additional reserves at the Bacchus field. Net proved and
probable reserves increased 4.7% from the prior year, with oil
representing 62% of the total up from 32% the year prior. There was
a decline in the U.S. gas reserves as a result of decreasing
natural gas prices.
|
Endeavour Historical
|
|
As of
December 31,
|
|
2010
(3)
|
2011
|
2012
|
Net 1P
reserves:
|
|
|
|
United
Kingdom:
|
|
|
|
Oil (MBbls)(1)
|
3,967
|
4,060
|
13,733
|
Gas (MMcf)
|
56,267
|
50,723
|
56,901
|
Oil equivalents (MBOE)(2)
|
13,345
|
12,514
|
23,217
|
United
States:
|
|
|
|
Oil (MBbls)(1)
|
59
|
41
|
6
|
Gas (MMcf)
|
31,777
|
60,978
|
14,690
|
Oil equivalents (MBOE)(2)
|
5,355
|
10,204
|
2,454
|
Total:
|
|
|
|
Oil (MBbls)(1)
|
4,026
|
4,101
|
13,739
|
Gas (MMcf)
|
88,044
|
111,701
|
71,591
|
Oil equivalents (MBOE)(2)
|
18,700
|
22,718
|
25,671
|
Percentage
oil
|
22%
|
18%
|
54%
|
Percentage
proved developed
|
19%
|
23%
|
32%
|
Net 2P
reserves:
|
|
|
|
Total:
|
|
|
|
Oil (MBbls)(1)
|
14,897
|
14,556
|
29,208
|
Gas (MMcf)
|
172,820
|
182,989
|
107,715
|
Oil equivalents (MBOE)(2)
|
43,700
|
45,054
|
47,161
|
Percentage
oil
|
34%
|
32%
|
62%
|
(1)
|
Includes
natural gas liquids.
|
(2)
|
One Bbl of
oil is equal to six Mcfe based on an approximate energy
equivalency. This is a physical correlation and does not reflect a
value or price relationship between the commodities.
|
(3)
|
Reserve
information includes the purchase of the additional 20%
(approximately 3.4 mmboe of 2P reserves) of the Bacchus field in
the North Sea, which closed in February 2011.
|
Earnings Conference Call, Wednesday,
March 6, 2013 at 9:00 a.m., Central
Time, 3:00 p.m. British
Time
Endeavour International will host a conference call and web cast
to discuss its 2012 fourth quarter and year-end financial and
operating results on Wednesday, March 6,
2013 at 9 a.m. Central Time,
3 p.m. British Time. A
supporting slide deck for the conference call is available on
Endeavour's website at www.endeavourcorp.com. To participate and
ask questions during the conference call, dial the local country
telephone number and the confirmation code
8741109. The toll-free numbers are
888-708-5695 in the United
States and 0-808-101-7548 in the United Kingdom. Other international callers
should dial 913-312-1520 (tolls apply). To
listen only to the live audio web cast access Endeavour's home page
at www.endeavourcorp.com. A replay will be available
beginning at 12:00 p.m. Central Time
on March 6, 2013 through 12:00 p.m. on March 12,
2013 by dialing toll free 888-203-1112 (U.S.)
or 719-457-0820 (international), confirmation code
8741109.
Endeavour International Corporation is an oil and gas
exploration and production company focused on the acquisition,
exploration and development of energy reserves in the North Sea and
the United States. For more
information, visit www.endeavourcorp.com.
Additional information for investors:
Certain statements in this news release should be regarded as
"forward-looking" statements within the meaning of the securities
laws. These statements speak only as of the date made.
Such statements are subject to assumptions, risk and
uncertainty. Actual results or events may vary
materially.
The Securities and Exchange Commission (SEC) permits oil and
gas companies, in their filings with the SEC, to disclose not only
proved reserves, but also probable reserves and possible reserves
that meet the SEC's definitions for such terms, and price and cost
sensitivities for such reserves, and prohibits disclosure of
resources that do not constitute such reserves. We use may
use certain terms in our news releases, such as "reserve
potential," that the SEC's guidelines strictly prohibit us from
including in filings with the SEC. These estimates are by their
nature more speculative than estimates of proved, probable and
possible reserves and accordingly are subject to substantially
greater risk of being actually realized. In addition, we do
not represent that the probable or possible reserves described
herein meet the recoverability thresholds established by the SEC in
its new definitions. Investors are urged to also
consider closely the disclosure in our filings with the SEC,
available from our website at
www.endeavourcorp.com. Endeavour is also subject to
the requirements of the London Stock Exchange and considers the
disclosures in this release to be appropriate and/or required under
the guidelines of that exchange.
Endeavour International Corporation
|
Condensed Consolidated Balance
Sheets
|
(Unaudited)
|
(Amounts
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
Assets
|
Current
Assets:
|
|
|
|
|
|
|
Cash and
cash equivalents
|
$
|
59,185
|
|
$
|
106,036
|
|
Restricted
cash
|
|
178
|
|
|
-
|
|
Accounts
receivable
|
|
46,003
|
|
|
8,649
|
|
Prepaid
expenses and other current assets
|
|
12,906
|
|
|
18,840
|
|
|
Total
Current Assets
|
|
118,272
|
|
|
133,525
|
|
|
|
|
|
|
|
|
Property
and Equipment, Net
|
|
1,003,441
|
|
|
549,196
|
Goodwill
|
|
262,764
|
|
|
211,886
|
Other
Assets
|
|
49,906
|
|
|
30,384
|
|
|
|
|
|
|
Total
Assets
|
$
|
1,434,383
|
|
$
|
924,991
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
Current
Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
60,153
|
|
$
|
62,275
|
|
Current
maturities of debt
|
|
15,713
|
|
|
12,350
|
|
Accrued
expenses and other
|
|
90,100
|
|
|
20,549
|
|
|
Total
Current Liabilities
|
|
165,966
|
|
|
95,174
|
|
|
|
|
|
|
|
|
Long-Term
Debt
|
|
843,793
|
|
|
455,028
|
Deferred
Taxes
|
|
133,798
|
|
|
115,759
|
Other
Liabilities
|
|
147,692
|
|
|
61,248
|
|
|
Total
Liabilities
|
|
1,291,249
|
|
|
727,209
|
|
|
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series C
Convertible Preferred Stock
|
|
43,703
|
|
|
43,703
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
99,431
|
|
|
154,079
|
|
|
|
|
|
|
|
|
Total
Liabilities and Stockholders' Equity
|
$
|
1,434,383
|
|
$
|
924,991
|
Endeavour International Corporation
|
Condensed Consolidated Statement of
Operations
|
(Unaudited)
|
(Amounts
in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenues
|
$
|
97,615
|
|
$
|
16,632
|
|
$
|
219,058
|
|
$
|
60,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
23,924
|
|
|
2,779
|
|
|
58,536
|
|
|
17,668
|
|
Depreciation, depletion and amortization
|
|
24,272
|
|
|
7,780
|
|
|
66,564
|
|
|
26,478
|
|
Impairment
of U.S. oil and gas properties
|
|
5,956
|
|
|
36,913
|
|
|
53,072
|
|
|
65,706
|
|
General
and administrative
|
|
5,705
|
|
|
3,328
|
|
|
21,085
|
|
|
17,853
|
|
Total
Expenses
|
|
59,857
|
|
|
50,800
|
|
|
199,257
|
|
|
127,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) From Operations
|
|
37,758
|
|
|
(34,168)
|
|
|
19,801
|
|
|
(67,614)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
gains (losses)
|
|
7,319
|
|
|
(2,719)
|
|
|
5,141
|
|
|
8,378
|
|
Interest
expense
|
|
(21,105)
|
|
|
(12,688)
|
|
|
(84,122)
|
|
|
(44,893)
|
|
Loss on
early extinguishment of debt
|
|
-
|
|
|
-
|
|
|
(21,661)
|
|
|
(402)
|
|
Letter of
credit fees
|
|
(9,461)
|
|
|
-
|
|
|
(21,903)
|
|
|
-
|
|
Interest
income and other
|
|
(3,313)
|
|
|
172
|
|
|
(9,254)
|
|
|
597
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Other Expense
|
|
(26,560)
|
|
|
(15,235)
|
|
|
(131,799)
|
|
|
(36,320)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(Loss) Before Income Taxes
|
|
11,198
|
|
|
(49,403)
|
|
|
(111,998)
|
|
|
(103,934)
|
Income Tax
Expense (Benefit)
|
|
17,652
|
|
|
(4,758)
|
|
|
14,228
|
|
|
27,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss
|
|
(6,454)
|
|
|
(44,645)
|
|
|
(126,226)
|
|
|
(130,995)
|
Preferred
Stock Dividends
|
|
456
|
|
|
455
|
|
|
1,823
|
|
|
1,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
to Common Stockholders
|
$
|
(6,910)
|
|
$
|
(45,100)
|
|
$
|
(128,049)
|
|
$
|
(132,969)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
per Common Share:
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
(0.15)
|
|
$
|
(1.15)
|
|
$
|
(3.01)
|
|
$
|
(3.70)
|
Weighted
Average Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
46,613
|
|
|
39,231
|
|
|
42,533
|
|
|
35,957
|
Endeavour International Corporation
|
Condensed Consolidated Statement of Cash
Flows
|
(Unaudited)
|
(Amounts
in thousands)
|
|
|
Year Ended
December 31,
|
|
|
|
|
2012
|
|
2011
|
Cash Flows
from Operating Activities:
|
|
|
|
|
|
|
Net
loss
|
$
|
(126,226)
|
|
$
|
(130,995)
|
|
Adjustments to reconcile net loss to net
cash
|
|
|
|
|
|
|
|
provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
66,564
|
|
|
26,478
|
|
|
Impairment
of oil and gas properties
|
|
53,072
|
|
|
65,706
|
|
|
Deferred
tax expense (benefit)
|
|
(17,594)
|
|
|
21,116
|
|
|
Unrealized
gains on derivatives
|
|
(5,141)
|
|
|
(8,378)
|
|
|
Amortization of non-cash compensation
|
|
4,401
|
|
|
3,697
|
|
|
Amortization of loan costs and discount
|
|
14,179
|
|
|
12,234
|
|
|
Non-cash
interest expense
|
|
8,684
|
|
|
12,811
|
|
|
Loss on
early extinguishment of debt
|
|
21,661
|
|
|
402
|
|
|
Other
|
|
15,365
|
|
|
1,518
|
|
|
Changes in
operating assets and liabilities
|
|
3,648
|
|
|
(43,932)
|
Net Cash
Provided by (Used in) Operating Activities
|
|
38,613
|
|
|
(39,343)
|
|
|
|
|
|
|
|
|
Cash Flows
From Investing Activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
(246,925)
|
|
|
(165,062)
|
|
Acquisitions
|
|
(238,854)
|
|
|
(33,075)
|
|
Proceeds
from sales, net of cash
|
|
1,407
|
|
|
-
|
|
(Increase)
decrease in restricted cash
|
|
(178)
|
|
|
31,726
|
Net Cash
Used in Investing Activities
|
|
(484,550)
|
|
|
(166,411)
|
|
|
|
|
|
|
|
|
|
Cash Flows
From Financing Activities:
|
|
|
|
|
|
|
(Repayments) borrowings under debt
agreements
|
|
379,394
|
|
|
106,775
|
|
Proceeds
from issuance of common stock
|
|
60,805
|
|
|
118,444
|
|
Dividends
paid
|
|
(1,665)
|
|
|
(1,816)
|
|
Payments
for early extinguishment of debt
|
|
(7,248)
|
|
|
-
|
|
Financing
costs paid
|
|
(32,204)
|
|
|
(11,401)
|
|
Other
financing
|
|
4
|
|
|
521
|
Net Cash
Provided by Financing Activities
|
|
399,086
|
|
|
212,523
|
|
|
|
|
|
|
|
|
|
Net
Increase (Decrease) in Cash and Cash Equivalents
|
|
(46,851)
|
|
|
6,769
|
Cash and
Cash Equivalents, Beginning of Period
|
|
106,036
|
|
|
99,267
|
|
|
|
|
|
|
|
|
|
Cash and
Cash Equivalents, End of Period
|
$
|
59,185
|
|
$
|
106,036
|
Endeavour International Corporation
|
Operating Statistics
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Sales
volume:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and
condensate sales (Mbbls):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
896
|
|
|
98
|
|
|
1,994
|
|
|
373
|
|
|
United
States
|
|
-
|
|
|
3
|
|
|
3
|
|
|
7
|
|
|
Total
|
|
896
|
|
|
101
|
|
|
1,997
|
|
|
380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas
sales (MMcf):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
22
|
|
|
16
|
|
|
91
|
|
|
94
|
|
|
United
States
|
|
972
|
|
|
1,728
|
|
|
5,206
|
|
|
5,033
|
|
|
Total
|
|
994
|
|
|
1,744
|
|
|
5,298
|
|
|
5,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
equivalent sales (MBOE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
899
|
|
|
101
|
|
|
2,009
|
|
|
388
|
|
|
United
States
|
|
163
|
|
|
290
|
|
|
871
|
|
|
846
|
|
|
Total
|
|
1,062
|
|
|
391
|
|
|
2,880
|
|
|
1,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
BOE per day
|
|
11,541
|
|
|
4,253
|
|
|
7,868
|
|
|
3,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical production volume (BOE per
day):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
8,533
|
|
|
925
|
|
|
5,494
|
|
|
1,095
|
|
|
United
States
|
|
1,767
|
|
|
3,158
|
|
|
2,379
|
|
|
2,319
|
|
|
Total
|
|
10,300
|
|
|
4,083
|
|
|
7,873
|
|
|
3,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized Prices:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and
condensate price ($ per Bbl)
|
$
|
105.76
|
|
$
|
110.93
|
|
$
|
103.56
|
|
$
|
109.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas price
($ per Mcf)
|
$
|
2.86
|
|
$
|
3.14
|
|
$
|
2.32
|
|
$
|
3.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equivalent
oil price ($ per BOE)
|
$
|
91.94
|
|
$
|
42.51
|
|
$
|
76.07
|
|
$
|
48.67
|
•
|
We record
oil revenues using the sales method, i.e. when delivery has
occurred. Actual production may differ based on the timing of
tanker liftings. We use the entitlements method to account
for sales of gas production.
|
•
|
The
average sales prices include gains and losses for derivative
contracts we utilize to manage price risk related to our future
cash flows.
|
Endeavour International Corporation
|
Reconciliation of GAAP to Non-GAAP
Measures
|
(Unaudited)
|
(Amounts
in thousands)
|
As
required under Regulation G of the Securities Exchange Act of 1934,
provided below are reconciliations of net income (loss) to the
following non-GAAP financial measures: net income, as adjusted and
Adjusted EBITDA. We use these non-GAAP measures as key metrics for
our management and to demonstrate our ability to internally fund
capital expenditures and service debt. The non-GAAP measures are
useful in comparisons of oil and gas exploration and production
companies as they exclude non-operating fluctuations in assets and
liabilities.
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year
Ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
Net
loss
|
$
|
(6,454)
|
|
$
|
(44,645)
|
|
$
|
(126,226)
|
|
$
|
(130,995)
|
Impairment
of U.S. oil and gas properties (net of tax)
(1)
|
|
5,956
|
|
|
36,913
|
|
|
53,072
|
|
|
65,706
|
Unrealized
(gain) loss on derivatives (net of tax) (2)
|
|
(7,383)
|
|
|
1,976
|
|
|
(7,326)
|
|
|
(10,269)
|
Loss on
early extinguishment of debt (net of tax) (3)
|
|
-
|
|
|
-
|
|
|
17,762
|
|
|
402
|
Deferred
tax expense due to U.K. tax law change
|
|
194
|
|
|
-
|
|
|
8,587
|
|
|
25,484
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss as Adjusted
|
$
|
(7,687)
|
|
$
|
(5,756)
|
|
$
|
(54,131)
|
|
$
|
(49,672)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(6,454)
|
|
$
|
(44,645)
|
|
$
|
(126,226)
|
|
$
|
(130,995)
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
(gain) loss on derivatives
|
|
(7,319)
|
|
|
2,719
|
|
|
(5,141)
|
|
|
(8,378)
|
Net
interest expense
|
|
21,083
|
|
|
12,547
|
|
|
83,872
|
|
|
44,781
|
Letter of
credit fees
|
|
9,461
|
|
|
-
|
|
|
21,903
|
|
|
-
|
Loss on
early extinguishment of debt
|
|
-
|
|
|
-
|
|
|
21,661
|
|
|
402
|
Depreciation, depletion and amortization
|
|
24,272
|
|
|
7,780
|
|
|
66,564
|
|
|
26,478
|
Impairment
of U.S. oil and gas properties
|
|
5,956
|
|
|
36,913
|
|
|
53,072
|
|
|
65,706
|
Income tax
expense (benefit)
|
|
17,652
|
|
|
(4,758)
|
|
|
14,228
|
|
|
27,061
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
64,651
|
|
$
|
10,556
|
|
$
|
129,933
|
|
$
|
25,055
|
(1)
|
Since the
impairments related to U.S. oil and gas properties, we recognized
no tax benefits as there was no assurance that we could generate
any U.S. taxable earnings.
|
(2)
|
Net of tax
benefit (expense) of $64 and $743 and $2,185 and $1,891,
respectively.
|
(3)
|
Net of tax
benefit of $3,899 for the year ended December 31, 2012.
|
SOURCE Endeavour International Corporation