HOUSTON, March 5, 2014 /PRNewswire/ -- Endeavour
International Corporation (NYSE: END) (LSE: ENDV) today reported
fourth quarter 2013 net loss, as adjusted of $24.7 million compared to a net loss, as adjusted
of $7.7 million for the same period
in 2012. On a GAAP basis, net loss for the fourth quarter was
$27.7 million as compared to net loss
of $6.5 million for the same quarter
in 2012.
Sales volumes for the fourth quarter of 2013 were 13,648 barrels
of oil equivalent per day ("boepd"), compared to 11,541 boepd for
the same quarter in the prior year. Physical production for the
fourth quarter of 2013 averaged 12,422 boepd compared to 10,300
boepd for the same quarter of 2012. Year-over-year average daily
physical production increased 121%.
Fourth Quarter highlights include:
- Achieved first production at the Rochelle field
- Closed on the sale of a 50% interest in the Pennsylvania
Marcellus
- Completed an additional $25
million of Monetary Production Payment
Recent Events:
- Refinanced the Revolving Credit Facility and replaced two LC
reimbursement agreements
- Resolved the stuck valve issue at Rochelle, resuming production at the
field
- Completed a private placement for $25
million
- Amended the Decommissioning Securities Agreement for the Alba
field, reducing security requirements
- Consolidated the U.K. offices in Aberdeen, Scotland
- Announced a capital expenditure budget for 2014 of $60 million – $80
million
- Completed the year-end 2013 reserves evaluation
"With the Rochelle situation
resolved, we will continue our focus on reducing cost of capital
and deleveraging our balance sheet. The reorganization and
consolidation of our UK offices completed last year, combined with
the reduced cost of capital from our refinancing effort in January,
result in over $30 million in annual
cash savings," said William L.
Transier, chairman, chief executive officer and president.
"Now with our core assets online in the North Sea, we should expect
improved production and cash flow on a comparative basis so we can
move forward prudently in the exploitation of our portfolio for the
benefit of our stakeholders."
Operational Update
North Sea
At Rochelle, the East (E2) and
West (W1) development wells at Rochelle, a gas-condensate field, were fully
completed and tied-in to the production manifolds in January.
During the restart of production, a valve was discovered stuck in
the 'shut' position on the outlet side of the Rochelle production manifold. An attempt to
open the valve manually was unsuccessful and the operator secured
an intervention vessel to open the valve. The valve was reopened on
February 26th and the E2
well commenced first production on February
28th. The E2 production is ramping up and the W1
well is expected to be online in the next few days. When both wells
are fully operational, the production from the Rochelle field is expected to exceed the
available production capacity at the Scott Platform. Endeavour has
a 44% working interest in the Rochelle development.
The Bacchus field continues to perform in line with
expectations. The 2013 production exit rate at the field was over
10,000 barrels of oil per day ("bopd") gross. Consistent with the
original development plans, the first well drilled (B3Y) is
expected to be turned into a water injector during the second
quarter of 2014. This will provide pressure support to help sustain
the field's production rate and increase its overall recovery. A
new 3D seismic survey was shot in 2013 and the results are being
processed to define additional field development opportunities.
Endeavour has a 30% working interest in the field.
Water handling and other operational issues at the Alba
production facilities were addressed during the period up to and
including the extended shutdown period last year. Subsequently, a
problem occurred in the subsea water injection pipeline supplying
pressure to the Southern area of the field. This has resulted in a
portion of the Southern area being shut-in. The Alba 2013 exit rate
was 18,500 bopd gross, below the levels expected from the field.
Remedial action is currently being taken to reinstate partial water
injection to offset some of this reduction and the permanent
replacement of the pipeline is targeted for late 2014. Production
will be improved by the first 2014 development well, which was
recently brought online. An additional two development wells are
scheduled to be drilled during the year. Endeavour has a 25.68%
working interest in the field.
North America
During the fourth quarter in the Pennsylvania Marcellus area,
the Company closed on a purchase and sale agreement covering 50% of
its upstream and midstream assets to Samson Exploration LLC. The
transaction provides for the joint development of the Marcellus
assets, including the capital necessary for the next phase of
development in the core Daniel Field area in Cameron County, Pennsylvania. Initially, the
partnership plans to complete three previously drilled and cased
horizontal Marcellus wells. These wells will be tied into a new
third-party pipeline being constructed by EQT Corporation that
allows firm capacity of up to 10 MMCF/D, with potential for future
expansion. Endeavour will operate this initial phase of activity,
which is expected to be completed by mid-year 2014.
In the Piceance Basin Rim play in Northwest Colorado, Endeavour has two projects
targeting liquids-rich Niobrara and Frontier objectives. The
Company has formed two federal units and has plans to drill initial
horizontal tests in the Niobrara target zone by mid-year 2014.
Endeavour has leasehold and drilling options on 40,000 gross acres
and 27,000 net acres.
Finance
In December, the Company completed an additional $25 million expansion to the Monetary Production
Payment (MPP), bringing the total to $175
million outstanding. The MPP has a two-year term and will be
satisfied out of the production from the Alba, Bacchus and Rochelle fields. Repayment of the MPP began in
July 2013 under its terms and the
current outstanding balance is approximately $162 million.
In January 2014, Endeavour closed
on a $255 million senior secured
first lien term loan with an interest rate of 8.25% (Libor + 700
basis points). The first lien note is a strip facility consisting
of a $125 million Secured Term Loan
and a $130 million LC Procurement
Facility. The Company has used the net proceeds from the offering
to refinance its 13% $115 million
Revolving Credit Facility and replace its two reimbursement
agreements ($120 million at 13% and
$33 million at 9%, interest rates,
respectively). The facility is due in November 2017.
Due to a change in the U.K. tax treatment for decommissioning,
Endeavour has amended its Decommissioning Securities Agreement for
the Alba field. The new tax law, which allows companies to treat
decommissioning on an after-tax basis (including Petroleum Revenue
Tax (PRT)), enables Endeavour to reduce its current Letter of
Credit (LC) amount on the Alba field from $120 million to approximately $55 million. The reduced LC requirements as a
result of the new U.K. decommissioning tax treatment, combined with
the refinancing activities done in January, is expected to generate
an annual cash savings of approximately $17
million to the Company.
On March 3rd, the
Company completed a private placement for $25 million. The transaction was comprised of the
issuance of 2.9 million shares at $4.28/share with the issuance of 729,000 warrants
with a strike price of $5.29. In
addition, the transaction involved the issuance of 6.5% convertible
notes, with a conversion price of $4.66. The notes have a four year maturity. The
transaction also includes an option for an additional $30 million and normal registration rights.
In the fourth quarter, Endeavour completed the consolidation of
its U.K. offices in Aberdeen,
Scotland. Annual cash savings are anticipated to be in the
range of $15 million – $20 million.
First Quarter Production Guidance
With the unanticipated downtime at the Rochelle field and continued restricted rates
at Alba, average daily production volumes are expected to be in the
range of 9,000 – 10,000 boepd for the first quarter of 2014.
2014 Capital Expenditure Program
Endeavour's direct capital expenditure program in 2014 is
expected to be in the range of $60
million – $80 million. Having
completed the work on the Company's large North Sea development
projects, Endeavour expects to spend approximately $45 million in the U.K., the majority on the Alba
field for infill drilling, 4D seismic and the replacement of the
subsea water injection line. The capital spend for the U.S.
drilling program is expected to be in the range of $20 million – $25
million.
Decommissioning costs during the year are expected to be
approximately $50 million for the
IVRR, Renee and Rubie fields.
2013 Reserves
Year-over-year, the Company added 1.5MMboe of proved reserves,
which represents a reserves replacement ratio of 41%. Oil
represented 52% of total proved reserves at December 31, 2013 down slightly from 54% at the
end of the prior year. Net proved and probable reserves (2P) were
40.1 million in 2013 compared to 47.2 million in the previous year,
with oil representing 61% of the total. The reduction in 2P
reserves was due to the 2013 production, a slightly shorter Alba
field life due to lower SEC pricing, minor revisions in
Rochelle reserves following
development drilling and lack of new drilling activities in the
U.S.
Earnings Conference Call, Wednesday,
March 5, 2014 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 2013 fourth quarter and year-end financial and
operating results on Wednesday, March 5,
2014 at 9:00 a.m. Central
Time, 3:00 p.m. British Time.
A supporting slide deck for the conference call is available on the
home page of Endeavour's website at www.endeavourcorp.com and under
the Investor Relations section in conjunction with the details for
the conference call. To participate and ask questions during the
conference call, dial the local country telephone number and the
confirmation code 5131878. The toll-free numbers are
888-684-1281 in the United
States and 0-808-101-7548 in the United Kingdom. Other international callers
should dial 913-312-1453 (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 5, 2014 through 12:00 p.m. on March 11,
2014 by dialing toll free 888-203-1112 (U.S.)
or 719-457-0820 (international), confirmation code
5131878.
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 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,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
34,742
|
|
$
|
59,185
|
|
Accounts
receivable
|
|
65,171
|
|
|
46,181
|
|
Prepaid expenses and other
current assets
|
|
35,920
|
|
|
20,995
|
|
Total Current
Assets
|
|
135,833
|
|
|
126,361
|
|
|
|
|
|
|
|
|
Property and Equipment,
Net
|
|
1,072,151
|
|
|
1,003,441
|
|
Goodwill
|
|
259,238
|
|
|
262,764
|
|
Other Assets
|
|
33,223
|
|
|
49,906
|
|
|
|
|
|
|
|
|
Total Assets
|
$
|
1,500,445
|
|
$
|
1,442,472
|
|
|
|
|
|
|
|
|
Liabilities
and Stockholders' Equity
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
$
|
38,033
|
|
$
|
60,153
|
|
Current maturities of
debt
|
|
-
|
|
|
15,713
|
|
Deferred
revenue
|
|
20,965
|
|
|
-
|
|
Monetary production
payment, current
|
|
74,167
|
|
|
-
|
|
Accrued expenses and
other
|
|
88,625
|
|
|
90,100
|
|
Total Current
Liabilities
|
|
221,790
|
|
|
165,966
|
|
|
|
|
|
|
|
|
Long-Term Debt
|
|
870,878
|
|
|
843,793
|
|
Deferred Taxes
|
|
121,816
|
|
|
141,887
|
|
Other Liabilities
|
|
223,870
|
|
|
147,692
|
|
Total
Liabilities
|
|
1,438,354
|
|
|
1,299,338
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Series C Convertible Preferred
Stock
|
|
43,703
|
|
|
43,703
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
18,388
|
|
|
99,431
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
1,500,445
|
|
$
|
1,442,472
|
|
|
|
|
|
|
|
| |
|
|
Endeavour
International Corporation
|
|
Condensed
Consolidated Statement of Operations
|
|
(Unaudited)
|
|
(Amounts in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Revenues
|
$
|
116,926
|
|
$
|
97,615
|
|
$
|
337,664
|
|
$
|
219,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
33,493
|
|
|
23,924
|
|
|
105,444
|
|
|
58,536
|
|
Depreciation, depletion
and amortization
|
|
49,582
|
|
|
24,272
|
|
|
143,048
|
|
|
66,564
|
|
Impairment of oil and gas
properties
|
|
-
|
|
|
5,956
|
|
|
9,566
|
|
|
53,072
|
|
General and
administrative
|
|
4,847
|
|
|
5,705
|
|
|
19,124
|
|
|
21,085
|
|
Total Expenses
|
|
87,922
|
|
|
59,857
|
|
|
277,182
|
|
|
199,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income From
Operations
|
|
29,004
|
|
|
37,758
|
|
|
60,482
|
|
|
19,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains (losses)
on derivatives
|
|
(3,001)
|
|
|
7,319
|
|
|
(1,843)
|
|
|
5,141
|
|
Interest
expense
|
|
(32,171)
|
|
|
(21,105)
|
|
|
(104,516)
|
|
|
(84,122)
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(21,661)
|
|
Letter of credit
fees
|
|
(7,643)
|
|
|
(9,461)
|
|
|
(33,425)
|
|
|
(21,903)
|
|
Unrealized foreign
currency gains (losses)
|
|
(3,154)
|
|
|
12,266
|
|
|
(3,116)
|
|
|
8,080
|
|
Other expense
|
|
(2,114)
|
|
|
(15,579)
|
|
|
(6,619)
|
|
|
(17,334)
|
|
Total Other Expense
|
|
(48,083)
|
|
|
(26,560)
|
|
|
(149,519)
|
|
|
(131,799)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income
Taxes
|
|
(19,079)
|
|
|
11,198
|
|
|
(89,037)
|
|
|
(111,998)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense
|
|
8,583
|
|
|
17,652
|
|
|
6,442
|
|
|
14,228
|
|
Net Loss
|
|
(27,662)
|
|
|
(6,454)
|
|
|
(95,479)
|
|
|
(126,226)
|
|
Preferred Stock
Dividends
|
|
456
|
|
|
456
|
|
|
1,823
|
|
|
1,823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss to Common
Stockholders
|
$
|
(28,118)
|
|
$
|
(6,910)
|
|
$
|
(97,302)
|
|
$
|
(128,049)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss per Common
Share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
|
(0.60)
|
|
$
|
(0.15)
|
|
$
|
(2.07)
|
|
$
|
(3.01)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of
Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
47,111
|
|
|
46,613
|
|
|
47,089
|
|
|
42,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Endeavour
International Corporation
|
|
Condensed
Consolidated Statement of Cash Flows
|
|
(Unaudited)
|
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
Cash Flows from Operating
Activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(95,479)
|
|
$
|
(126,226)
|
|
|
Adjustments to reconcile
net loss to net
|
|
|
|
|
|
|
|
provided by (used in)
operating activities:
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization
|
|
143,048
|
|
|
66,564
|
|
|
Impairment of oil and gas
properties
|
|
9,566
|
|
|
53,072
|
|
|
Deferred tax
benefit
|
|
(14,255)
|
|
|
(17,594)
|
|
|
Unrealized (gains) losses
on derivatives
|
|
1,843
|
|
|
(5,141)
|
|
|
Amortization of non-cash
compensation
|
|
3,294
|
|
|
4,401
|
|
|
Amortization of loan costs
and discount
|
|
22,359
|
|
|
14,179
|
|
|
Non-cash interest
expense
|
|
7,082
|
|
|
8,684
|
|
|
Loss on early
extinguishment of debt
|
|
-
|
|
|
21,661
|
|
|
Other
|
|
16,329
|
|
|
15,365
|
|
|
Changes in operating
assets and liabilities
|
|
(42,450)
|
|
|
3,648
|
|
|
Net Cash Provided by Operating
Activities
|
|
51,337
|
|
|
38,613
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing
Activities:
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(223,656)
|
|
|
(246,925)
|
|
|
Acquisitions, net of cash
acquired
|
|
(2,787)
|
|
|
(238,854)
|
|
|
Proceeds from sales, net
of cash
|
|
6,774
|
|
|
1,407
|
|
|
Increase in restricted
cash
|
|
-
|
|
|
(178)
|
|
|
Net Cash Used in Investing
Activities
|
|
(219,669)
|
|
|
(484,550)
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing
Activities:
|
|
|
|
|
|
|
|
Repayments of
borrowings
|
|
-
|
|
|
(274,629)
|
|
|
Borrowings under debt
agreements, net of debt discount
|
|
-
|
|
|
654,023
|
|
|
Proceeds from issuance of
common stock
|
|
-
|
|
|
60,805
|
|
|
Proceeds from issuance of
monetary production payments
|
|
175,000
|
|
|
-
|
|
|
Repayment of monetary
production payments
|
|
(8,333)
|
|
|
-
|
|
|
Payments for early
extinguishment of debt
|
|
-
|
|
|
(7,248)
|
|
|
Financing costs
paid
|
|
(21,198)
|
|
|
(32,204)
|
|
|
Other financing
|
|
(1,580)
|
|
|
(1,661)
|
|
|
Net Cash Provided by Financing
Activities
|
|
143,889
|
|
|
399,086
|
|
|
|
|
|
|
|
|
|
|
Net Decrease in Cash and Cash
Equivalents
|
|
(24,443)
|
|
|
(46,851)
|
|
|
Cash and Cash Equivalents,
Beginning of Period
|
|
59,185
|
|
|
106,036
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End
of Period
|
$
|
34,742
|
|
$
|
59,185
|
|
|
|
|
|
|
|
|
|
| |
|
|
Endeavour
International Corporation
|
|
Operating
Statistics
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
December
31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
Sales volume:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and
condensate sales (Mbbls):
|
|
|
|
|
|
|
|
|
|
|
|
|
United Kingdom
|
|
977
|
|
|
896
|
|
|
3,017
|
|
|
1,994
|
|
United States
|
|
-
|
|
|
-
|
|
|
1
|
|
|
3
|
|
Total
|
|
977
|
|
|
896
|
|
|
3,018
|
|
|
1,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas sales
(MMcf):
|
|
|
|
|
|
|
|
|
|
|
|
|
United Kingdom
|
|
1,159
|
|
|
22
|
|
|
1,194
|
|
|
91
|
|
United States
|
|
509
|
|
|
972
|
|
|
2,636
|
|
|
5,207
|
|
Total
|
|
1,668
|
|
|
994
|
|
|
3,830
|
|
|
5,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
equivalent sales (MBOE):
|
|
|
|
|
|
|
|
|
|
|
|
|
United Kingdom
|
|
1,171
|
|
|
899
|
|
|
3,216
|
|
|
2,009
|
|
United States
|
|
85
|
|
|
163
|
|
|
441
|
|
|
871
|
|
Total
|
|
1,256
|
|
|
1,062
|
|
|
3,657
|
|
|
2,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total BOE
per day
|
|
13,648
|
|
|
11,541
|
|
|
10,017
|
|
|
7,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical production volume (BOE
per day):
|
|
|
|
|
|
|
|
|
|
|
|
|
United Kingdom
|
|
11,441
|
|
|
8,533
|
|
|
8,665
|
|
|
5,494
|
|
United States
|
|
981
|
|
|
1,767
|
|
|
1,257
|
|
|
2,379
|
|
Total
|
|
12,422
|
|
|
10,300
|
|
|
9,922
|
|
|
7,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized Price, before and after
derivatives :
|
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and condensate price
($ per Bbl)
|
$
|
103.70
|
|
$
|
105.73
|
|
$
|
104.40
|
|
$
|
103.56
|
|
Gas price ($ per
Mcf)
|
$
|
12.12
|
|
$
|
7.95
|
|
$
|
12.00
|
|
$
|
7.41
|
|
Equivalent oil price ($
per BOE)
|
$
|
98.51
|
|
$
|
105.57
|
|
$
|
102.39
|
|
$
|
103.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and condensate price
($ per Bbl)
|
|
-
|
|
$
|
44.00
|
|
|
120.00
|
|
|
94.67
|
|
Gas price ($ per
Mcf)
|
$
|
3.04
|
|
$
|
2.74
|
|
$
|
3.13
|
|
$
|
2.23
|
|
Equivalent oil price ($
per BOE)
|
$
|
18.41
|
|
$
|
16.63
|
|
$
|
18.98
|
|
$
|
13.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and condensate price
($ per Bbl)
|
$
|
103.71
|
|
$
|
105.76
|
|
$
|
104.40
|
|
$
|
103.56
|
|
Gas price ($ per
Mcf)
|
$
|
9.35
|
|
$
|
2.86
|
|
$
|
5.89
|
|
$
|
2.32
|
|
Equivalent oil price ($
per BOE)
|
$
|
93.09
|
|
$
|
91.94
|
|
$
|
92.36
|
|
$
|
76.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
•
|
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.
|
|
|
|
| |
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
thousands)
|
Fourth
Quarter
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Net loss
|
$
|
(27,662)
|
|
$
|
(6,454)
|
|
$
|
(95,479)
|
|
$
|
(126,226)
|
|
Impairment of oil and gas
properties (net of tax) (1)
|
|
-
|
|
|
5,956
|
|
|
9,566
|
|
|
53,072
|
|
Unrealized gains (losses) on
derivatives (net of tax) (2)
|
|
3,001
|
|
|
(7,383)
|
|
|
1,843
|
|
|
(7,326)
|
|
Loss on early extinguishment of
debt (net of tax) (3)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
17,662
|
|
Deferred tax expense related to
U.K. tax rate change
|
|
-
|
|
|
194
|
|
|
-
|
|
|
8,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss as Adjusted
|
$
|
(24,661)
|
|
$
|
(7,687)
|
|
$
|
(84,070)
|
|
$
|
(54,231)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(27,662)
|
|
$
|
(6,454)
|
|
$
|
(95,479)
|
|
$
|
(126,226)
|
|
Unrealized gains (losses) on
derivatives
|
|
3,001
|
|
|
(7,319)
|
|
|
1,843
|
|
|
(5,141)
|
|
Net interest expense
|
|
32,163
|
|
|
21,083
|
|
|
104,452
|
|
|
83,872
|
|
Letter of credit fees
|
|
7,643
|
|
|
9,461
|
|
|
33,425
|
|
|
21,903
|
|
Loss on early extinguishment of
debt
|
|
-
|
|
|
-
|
|
|
-
|
|
|
21,661
|
|
Depreciation, depletion and
amortization
|
|
49,582
|
|
|
24,272
|
|
|
143,048
|
|
|
66,564
|
|
Impairment of oil and gas
properties
|
|
-
|
|
|
5,956
|
|
|
9,566
|
|
|
53,072
|
|
Income tax expense
|
|
8,583
|
|
|
17,652
|
|
|
6,442
|
|
|
14,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
73,310
|
|
$
|
64,651
|
|
$
|
203,297
|
|
$
|
129,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
(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 of none, $64,
none, $2,185 for the three months ended December 31, 2013 and 2012,
year ended December 31, 2013 and 2012, respectively.
|
|
(3)
|
Net of tax benefit of $3,899 for
the year ended December 31, 2012.
|
|
|
|
|
|
|
|
Endeavour
International Corporation
|
|
2013 Reserve
Information
|
|
|
|
|
|
|
|
|
|
Endeavour
Historical
|
|
|
As of
December 31,
|
|
|
2011
|
2012
|
2013
|
|
Net 1P
reserves:
|
|
|
|
|
United Kingdom:
|
|
|
|
|
Oil (MBbls)(1)
|
4,060
|
13,733
|
12,340
|
|
Gas (MMcf)(3)
|
50,723
|
56,901
|
55,398
|
|
Oil equivalents
(MBOE)(2)
|
12,514
|
23,217
|
21,573
|
|
United States:
|
|
|
|
|
Oil (MBbls)(1)
|
41
|
6
|
3
|
|
Gas (MMcf)
|
60,978
|
14,690
|
11,775
|
|
Oil equivalents
(MBOE)(2)
|
10,204
|
2,454
|
1,965
|
|
Total:
|
|
|
|
|
Oil (MBbls)(1)
|
4,101
|
13,739
|
12,343
|
|
Gas (MMcf)
|
111,701
|
71,591
|
67,173
|
|
Oil equivalents
(MBOE)(2)
|
22,718
|
25,671
|
23,538
|
|
Percentage oil
|
18%
|
54%
|
52%
|
|
Percentage proved
developed
|
23%
|
32%
|
49%
|
|
Net 2P
reserves:
|
|
|
|
|
Total:
|
|
|
|
|
Oil (MBbls)(1)
|
14,556
|
29,208
|
24,552
|
|
Gas (MMcf)(3)
|
182,989
|
107,715
|
93,370
|
|
Oil equivalents
(MBOE)(2)
|
45,054
|
47,161
|
40,114
|
|
Percentage oil
|
32%
|
62%
|
61%
|
|
|
|
|
|
|
| |
|
|
|
|
|
(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)
|
Gas prices in the U.K. have been
in the range of $9.50 - $11.00 an Mcf during 2013.
|
|
|
|
| |