HOUSTON, Aug. 5, 2014 /PRNewswire/ -- Endeavour
International Corporation (NYSE: END) (LSE: ENDV) today reported
physical production for the quarter that exceeded the Company's
revised guidance range of 10,500 – 11,500 barrels of oil equivalent
per day ("boepd") previously announced on June 10, 2014. Physical production for the
second quarter of 2014 averaged 12,900 boepd compared to 9,500
boepd for the same quarter of 2013. Sales volumes for the second
quarter of 2014 were 7,400 boepd, compared to 14,500 boepd for the
same quarter in the prior year.
The Company did not have a lifting of production at the Alba
field during the quarter, so revenues were significantly lower than
would have been if based on physical production. Physical
production for the quarter produced but not lifted is recorded as
deferred revenue on the balance sheet. Endeavour estimates that
there will be three to four liftings per year at the Alba field.
The most recent lifting occurred on July 4,
2014 and the associated revenues of approximately
$50 million will be reflected in the
Company's third quarter results. A similar situation occurred in
the third quarter of 2013, when there was no lifting at the Alba
field.
The Company reported a second quarter 2014 net loss, as adjusted
of $38.7 million compared to a net
loss, as adjusted of $12.6 million
for the same period in 2013. On a GAAP basis, net loss for the
second quarter was $36.7 million as
compared to net loss of $13.9 million
for the same quarter in 2013.
Recent Events:
- Rochelle field fully
operational with both wells producing during the quarter
- Settled and received $12.6
million in proceeds for the Rochelle E1Y well insurance claim
- Executed a forward sale for $22.5
million
- Successfully finished the hydraulic fracture stimulation of a
third Pennsylvania Marcellus well
"During the quarter we were able to establish production from
both wells at the Rochelle field.
We experienced periods during the quarter where production rates
exceeded 100 million cubic feet of gas per day ("mmcfd") and 4,000
boepd. This confirms our confidence in the Rochelle field's potential," said William L. Transier, chairman, chief executive
officer and president. "However, we continue to be challenged by
unexpected downtime and lower production efficiency rates which are
directly attributable to the production facilities we do not
control. We are working with the operators at Alba and Rochelle to improve ongoing performance."
Operational Update
North Sea
At Rochelle, the West Rochelle (W1) development well was
returned to production in mid-May. The E2 and W1 wells produced
together during the quarter and achieved production rates greater
than 100 million cubic feet equivalent per day ("mmcfed") for 32
days during the second quarter. The Scott Platform began its
planned shutdown period on July 27,
2014 and so the Rochelle Field is expected to be shut-in for
three weeks until the Scott Platform goes back into service. The
shutdown at the Scott Platform is being executed to coincide with
the previously announced maintenance work occurring on the Forties
Pipeline System. Endeavour has a 44% working interest in
Rochelle.
At Alba, the A69 well is being completed and is expected to
start production this month. Progress was made in the southern part
of the field with partial water injection being reinstated.
Installation of the replacement pipeline is planned early in the
first quarter of 2015, with start-up expected in the second
quarter. The partial reinstatement of water injection in the
southern part of the field has sustained production throughout the
second quarter. Well A69 is expected to increase overall production
rates in the third quarter. Endeavour has a 25.68% working interest
in Alba.
Bacchus continues to perform at rates above the Company's
expectations. The B3Y well has not, as expected, been turned into a
water injector because of certain technical issues. Future options
for the B3Y well continue to be evaluated. Endeavour has a 30%
working interest in the field.
North America
In the Pennsylvania Marcellus, Endeavour successfully completed
hydraulic fracture stimulation of the C-13 horizontal well, the
third completion this year in the Daniel Field. The Company's
operated activity included more than double the number of frac
stages on the longest laterals to date relative to previous wells.
Following these successful well completions, operatorship of the
Marcellus assets was transferred to Samson Exploration, LLC. Later
this year, the wells will be tied into a new third-party pipeline
being commissioned by EQT Corporation that allows firm capacity of
up to 10 mmcfd, with potential for future expansion.
In the Piceance Basin Rim play in Northwest Colorado, Endeavour has two projects
targeting liquids-rich Niobrara and Frontier objectives. At
present, a rig has commenced drilling an initial horizontal
Niobrara test at the Company's Wiley prospect. Endeavour has
leasehold and drilling options on 40,000 gross acres and 27,000 net
acres.
Finance
In May, Endeavour entered into a third forward sale agreement
receiving a payment of $22.5 million.
This effectively hedged a portion of production by locking in
pricing for in excess of 200,000 barrels of oil, over a six-month
delivery period. The forward sale is expected to be fulfilled in
November 2014. The first forward sale
commitment was fulfilled in June 2013
and the second in March 2014.
In January of this year, the Company refinanced its revolving
credit facility ($115 million at 13%)
and two reimbursement agreements ($120
million at 13% and $33 million
at 9% interest) into a new senior secured first lien term loan with
an interest rate of 8.25% (libor + 700 basis points). During the
second quarter, the first full quarter reflecting the refinancing
impact, Endeavour realized cash interest expense savings of
$4 million ($16 million on annualized basis). In addition,
gross general and administrative expenses were reduced, as a result
of the previously announced consolidation of the Company's U.K.
offices, headcount reductions and other cost reduction
initiatives.
Also during the quarter, the Company settled an insurance claim
for the Rochelle E1Y well, which
was damaged in early 2013, for £7.5 million (approximately
$12.6 million). The proceeds from the
settlement were received in June.
Third Quarter Production Guidance and Maintenance
Downtime
In the U.K. North Sea, the third quarter is typically the time
to perform maintenance and other tasks on infrastructure. During
2014, Endeavour anticipates that all of its producing fields will
be modestly impacted. These shutdowns will be less invasive than
those experienced in 2013, but will still have an impact on third
quarter physical production.
At present, there is a 16 day shutdown on the Forties Pipeline
System planned in August that will affect oil production from
Bacchus and Rochelle. Currently
underway is a three week Rochelle
shutdown which coincides with the work being done at Forties. At
Alba during August, a short shutdown of three days is planned to
test the emergency systems. Average daily physical production
volumes are expected to be in the range of 9,500 – 10,500 boepd for
the third quarter of 2014.
Earnings Conference Call, Tuesday,
August 5, 2014 at 9:00 a.m., Central
Time, 3:00 p.m. British Summer
Time
Endeavour International will host a conference call and web cast
to discuss its 2014 second quarter financial and operating results
on Tuesday, August 5, 2014 at
9:00 a.m. Central Time, 3:00 p.m. British Summer 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 3569591. The toll-free
numbers are 888-221-3886 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 August 5, 2014 through
12:00 p.m. on August 11, 2014 by dialing toll free
888-203-1112 (U.S.) or 719-457-0820
(international), confirmation code 3569591.
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
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
83,209
|
|
$
|
34,742
|
Accounts
receivable
|
|
46,992
|
|
|
65,171
|
Prepaid expenses and
other current assets
|
|
103,550
|
|
|
60,318
|
Total Current
Assets
|
|
233,751
|
|
|
160,231
|
|
|
|
|
|
|
Property and
Equipment, Net
|
|
1,032,281
|
|
|
1,072,151
|
Goodwill
|
|
259,238
|
|
|
259,238
|
Other
Assets
|
|
30,455
|
|
|
33,222
|
|
|
|
|
|
|
Total
Assets
|
$
|
1,555,725
|
|
$
|
1,524,842
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
32,907
|
|
$
|
38,033
|
Current maturities of
debt
|
|
2,131
|
|
|
-
|
Deferred
revenue
|
|
57,811
|
|
|
20,965
|
Monetary production
payment, current
|
|
125,833
|
|
|
74,167
|
Accrued expenses and
other
|
|
94,748
|
|
|
88,625
|
Total Current
Liabilities
|
|
313,430
|
|
|
221,790
|
|
|
|
|
|
|
Long-Term
Debt
|
|
894,122
|
|
|
870,878
|
Deferred
Taxes
|
|
183,501
|
|
|
146,213
|
Other
Liabilities
|
|
162,457
|
|
|
223,870
|
Total
Liabilities
|
|
1,553,510
|
|
|
1,462,751
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Series C Convertible
Preferred Stock
|
|
43,703
|
|
|
43,703
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
(41,488)
|
|
|
18,388
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
1,555,725
|
|
$
|
1,524,842
|
|
|
Endeavour
International Corporation
|
Condensed
Consolidated Statement of Operations
|
(Unaudited)
|
(Amounts in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues
|
$
|
44,857
|
|
$
|
126,165
|
|
$
|
139,021
|
|
$
|
183,837
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
6,847
|
|
|
38,103
|
|
|
34,017
|
|
|
55,593
|
Depreciation, depletion
and amortization
|
|
32,251
|
|
|
51,923
|
|
|
77,220
|
|
|
74,870
|
Impairment of oil and
gas properties
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,534
|
General and
administrative
|
|
5,240
|
|
|
4,882
|
|
|
10,089
|
|
|
10,364
|
Total
Expenses
|
|
44,338
|
|
|
94,908
|
|
|
121,326
|
|
|
144,361
|
|
|
|
|
|
|
|
|
|
|
|
|
Income From
Operations
|
|
519
|
|
|
31,257
|
|
|
17,695
|
|
|
39,476
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains
(losses) on derivatives
|
|
2,010
|
|
|
(1,277)
|
|
|
4,669
|
|
|
303
|
Interest
expense
|
|
(31,431)
|
|
|
(24,447)
|
|
|
(62,908)
|
|
|
(45,885)
|
Letter of credit
fees
|
|
(2,270)
|
|
|
(7,128)
|
|
|
(6,059)
|
|
|
(18,508)
|
Loss on early
extinguishment of financing agreements
|
|
-
|
|
|
-
|
|
|
(3,543)
|
|
|
-
|
Litigation settlement
expense
|
|
-
|
|
|
-
|
|
|
(19,034)
|
|
|
-
|
Unrealized gain (loss)
on foreign currency exchange
|
|
(4,511)
|
|
|
1,072
|
|
|
(5,784)
|
|
|
10,831
|
Other
expense
|
|
(1,402)
|
|
|
(2,081)
|
|
|
(3,423)
|
|
|
(1,960)
|
Total Other
Expense
|
|
(37,604)
|
|
|
(33,861)
|
|
|
(96,082)
|
|
|
(55,219)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Before Income
Taxes
|
|
(37,085)
|
|
|
(2,604)
|
|
|
(78,387)
|
|
|
(15,743)
|
|
|
|
|
|
|
|
|
|
|
|
|
Petroleum Revenue Tax
("PRT") Expense
|
|
2,243
|
|
|
7,012
|
|
|
3,968
|
|
|
7,208
|
Corporate Tax Expense
(Benefit)
|
|
(2,655)
|
|
|
4,269
|
|
|
(811)
|
|
|
4,981
|
Total Tax
Expense
|
|
(412)
|
|
|
11,281
|
|
|
3,157
|
|
|
12,189
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
(36,673)
|
|
|
(13,885)
|
|
|
(81,544)
|
|
|
(27,932)
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock
Dividends
|
|
456
|
|
|
456
|
|
|
911
|
|
|
911
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss to Common
Stockholders
|
$
|
(37,129)
|
|
$
|
(14,341)
|
|
$
|
(82,455)
|
|
$
|
(28,843)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
|
(0.72)
|
|
$
|
(0.30)
|
|
$
|
(1.63)
|
|
$
|
(0.61)
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Number of Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
51,580
|
|
|
47,092
|
|
|
50,591
|
|
|
47,076
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Endeavour
International Corporation
|
Condensed
Consolidated Statement of Cash Flows
|
(Unaudited)
|
(Amounts in
thousands)
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
June 30,
|
|
2014
|
|
2013
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
Net loss
|
$
|
(81,544)
|
|
$
|
(27,932)
|
Adjustments to
reconcile net loss to net cash
|
|
|
|
|
|
provided by operating
activities:
|
|
|
|
|
|
Depreciation, depletion
and amortization
|
|
77,220
|
|
|
74,870
|
Impairment of oil and
gas properties
|
|
-
|
|
|
3,534
|
Deferred tax
benefit
|
|
(7,951)
|
|
|
(2,457)
|
Unrealized gains on
derivatives
|
|
(4,669)
|
|
|
(303)
|
Amortization of
non-cash compensation
|
|
2,123
|
|
|
1,632
|
Amortization of loan
costs and discount
|
|
13,376
|
|
|
8,695
|
Non-cash interest
expense
|
|
3,812
|
|
|
3,454
|
Loss on early
extinguishment of financing agreements
|
|
6,856
|
|
|
-
|
Litigation settlement
expense
|
|
14,034
|
|
|
-
|
Other
|
|
6,605
|
|
|
(2,444)
|
Changes in operating
assets and liabilities
|
|
30,068
|
|
|
12,562
|
Net Cash Provided by
Operating Activities
|
|
59,930
|
|
|
71,611
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
Capital
expenditures
|
|
(39,302)
|
|
|
(108,786)
|
Acquisitions, net of
cash acquired
|
|
-
|
|
|
-
|
Proceeds from sales,
net of cash
|
|
1,352
|
|
|
-
|
Proceeds from insurance
settlement
|
|
12,606
|
|
|
|
Increase in restricted
cash
|
|
(2,521)
|
|
|
-
|
Net Cash Used in
Investing Activities
|
|
(27,865)
|
|
|
(108,786)
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
Repayments of
borrowings
|
|
(115,699)
|
|
|
-
|
Borrowings under debt
agreements, net of debt discount
|
|
140,625
|
|
|
-
|
Proceeds from issuance
of common stock
|
|
12,336
|
|
|
-
|
Proceeds from issuance
of monetary production payment
|
|
-
|
|
|
125,000
|
Repayments of monetary
production payment
|
|
(10,833)
|
|
|
-
|
Financing costs
paid
|
|
(9,193)
|
|
|
(15,804)
|
Other
financing
|
|
(834)
|
|
|
(416)
|
Net Cash Provided by
Financing Activities
|
|
16,402
|
|
|
108,780
|
|
|
|
|
|
|
Net Increase in Cash
and Cash Equivalents
|
|
48,467
|
|
|
71,605
|
Cash and Cash
Equivalents, Beginning of Period
|
|
34,742
|
|
|
59,185
|
|
|
|
|
|
|
Cash and Cash
Equivalents, End of Period
|
$
|
83,209
|
|
$
|
130,790
|
|
|
Endeavour
International Corporation
|
Operating
Statistics
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June 30,
|
|
|
June 30,
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
Sales volume:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Oil and condensate
sales (mbbls):
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
255
|
|
|
1,205
|
|
|
1,087
|
|
|
1,713
|
United
States
|
|
-
|
|
|
1
|
|
|
-
|
|
|
1
|
Total
|
|
255
|
|
|
1,206
|
|
|
1,087
|
|
|
1,714
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas sales
(mmcf):
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
2,109
|
|
|
15
|
|
|
2,694
|
|
|
26
|
United
States
|
|
415
|
|
|
667
|
|
|
846
|
|
|
1,489
|
Total
|
|
2,524
|
|
|
682
|
|
|
3,540
|
|
|
1,515
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil equivalent sales
(mboe):
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
606
|
|
|
1,207
|
|
|
1,536
|
|
|
1,717
|
United
States
|
|
70
|
|
|
112
|
|
|
141
|
|
|
249
|
Total
|
|
676
|
|
|
1,319
|
|
|
1,677
|
|
|
1,966
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
boed
|
|
7,424
|
|
|
14,497
|
|
|
9,269
|
|
|
10,862
|
|
|
|
|
|
|
|
|
|
|
|
|
Physical
production volume (boed): (1)
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom
|
|
12,079
|
|
|
8,083
|
|
|
10,351
|
|
|
7,973
|
United
States
|
|
800
|
|
|
1,415
|
|
|
818
|
|
|
1,454
|
Total
|
|
12,879
|
|
|
9,498
|
|
|
11,169
|
|
|
9,427
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized Price,
before and after derivatives :
|
|
|
|
|
|
|
|
|
|
|
|
United
Kingdom:
|
|
|
|
|
|
|
|
|
|
|
|
Oil
and condensate price ($ per bbl)
|
$
|
106.34
|
|
$
|
102.68
|
|
$
|
104.19
|
|
$
|
104.37
|
Gas
price ($ per mcf)
|
$
|
7.62
|
|
$
|
8.19
|
|
$
|
8.19
|
|
$
|
8.06
|
Equivalent
oil price ($ per boe)
|
$
|
71.17
|
|
$
|
102.57
|
|
$
|
88.10
|
|
$
|
104.23
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States:
|
|
|
|
|
|
|
|
|
|
|
|
Oil
and condensate price ($ per bbl)
|
$
|
97.33
|
|
$
|
85.46
|
|
|
98.67
|
|
|
88.19
|
Gas
price ($ per mcf)
|
$
|
4.07
|
|
$
|
3.40
|
|
$
|
4.30
|
|
$
|
3.22
|
Equivalent
oil price ($ per boe)
|
$
|
24.85
|
|
$
|
20.72
|
|
$
|
26.01
|
|
$
|
19.49
|
|
|
|
|
|
|
|
|
|
|
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
Oil
and condensate price ($ per bbl)
|
$
|
106.32
|
|
$
|
102.67
|
|
$
|
104.19
|
|
$
|
104.37
|
Gas
price ($ per mcf)
|
$
|
7.03
|
|
$
|
3.50
|
|
$
|
7.26
|
|
$
|
3.30
|
Equivalent
oil price ($ per boe)
|
$
|
66.40
|
|
$
|
95.64
|
|
$
|
82.87
|
|
$
|
93.51
|
|
|
(1)
|
We record oil
revenues when deliveries have occurred and legal ownership of the
oil transfers to the customer. Physical production may differ
from sales volumes based on the timing of tanker liftings for our
international sales.
|
|
|
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 loss to the following non-GAAP financial
measures: net income (loss), 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)
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net loss
|
$
|
(36,673)
|
|
$
|
(13,885)
|
|
$
|
(81,544)
|
|
$
|
(27,932)
|
Impairment of oil and
gas properties (net of tax) (1)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,534
|
Unrealized gains
(losses) on derivatives (net of tax) (2)
|
|
(2,010)
|
|
|
1,277
|
|
|
(4,669)
|
|
|
(303)
|
Loss on early
extinguishment of financing agreements (net of tax) (3)
|
|
-
|
|
|
-
|
|
|
1,220
|
|
|
-
|
Litigation settlement
expense (net of tax) (1)
|
|
-
|
|
|
-
|
|
|
19,034
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss as
Adjusted
|
$
|
(38,683)
|
|
$
|
(12,608)
|
|
$
|
(65,959)
|
|
$
|
(24,701)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(36,673)
|
|
$
|
(13,885)
|
|
$
|
(81,544)
|
|
$
|
(27,932)
|
Unrealized gains on
derivatives
|
|
(2,010)
|
|
|
1,277
|
|
|
(4,669)
|
|
|
(303)
|
Net interest
expense
|
|
31,425
|
|
|
24,427
|
|
|
62,892
|
|
|
45,849
|
Letter of credit
fees
|
|
2,270
|
|
|
7,128
|
|
|
6,059
|
|
|
18,508
|
Depreciation,
depletion and amortization
|
|
32,251
|
|
|
51,923
|
|
|
77,220
|
|
|
74,870
|
Impairment of oil and
gas properties
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,534
|
Loss on early
extinguishment of financing agreements
|
|
-
|
|
|
-
|
|
|
3,543
|
|
|
-
|
Litigation settlement
expense
|
|
-
|
|
|
-
|
|
|
19,034
|
|
|
-
|
Income tax expense
(benefit)
|
|
(412)
|
|
|
11,281
|
|
|
3,157
|
|
|
12,189
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
|
26,851
|
|
$
|
82,151
|
|
$
|
85,692
|
|
$
|
126,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We recognized no tax
benefits as there was no assurance that we could generate any U.S.
taxable earnings.
|
(2)
|
Since the unrealized
gains on derivatives were related to liabilities other than the
U.K., we recognized no tax benefits as there was no assurance that
we could generate any taxable earnings.
|
(3)
|
Net of tax benefit of
none, none, $2,323 and none, respectively.
|