Jones Energy, Inc. (NYSE:JONE) (“Jones Energy” or “the Company”)
today announced financial and operating results for the quarter and
full year ended December 31, 2016.
Highlights
- Initial operated Merge wells the BENNETT 24-11-6 1WH and HARDY
25-11-6 1WH both successfully completed and on initial flowback.
Completion operations on third operated well, the BELYEU 33-9-5 1WH
are underway. Drilling on the fourth well has commenced.
- Added approximately 3,290 net acres in the Merge to date since
initial acquisition of Merge acreage in September 2016. The
Company’s Merge position is currently approximately 21,300 net
acres.
- Net loss for the fourth quarter 2016 of $52.2 million, or a
loss of $0.53 per share. Non-GAAP adjusted net loss of $5.3
million, or a loss of $0.07 per share.
- Net loss for the full year 2016 of $84.8 million and EBITDAX
for the full year 2016 of $188 million1.
- Production for the full year 2016 of 7.0 MMBoe (19.2
MBoe/d).
- Proved reserves at year-end 2016 were 105.2 MMBoe based on SEC
pricing2; Cleveland proved reserves were 82.1 MMBoe and Merge
proved reserves were 2.4 MMBoe.
Jonny Jones, the Company’s Founder, Chairman and CEO commented,
“2016 was a transformative year for our Company and I am extremely
proud of what our team was able to accomplish in challenging
circumstances. We were both creative and deliberate in our
approach, capturing the opportunity to enter the Merge and cut
costs dramatically across the portfolio. The result has made Jones
Energy a formidable pure-play Anadarko Basin Company that remains a
low-cost leader.” Mr. Jones went on to say, “2017 will be a
transitional year for our Company. As we grow our
operatorship in the Merge and build out the rig program, I see
enormous potential for this new asset in the next few years. I see
opportunity to highgrade the portfolio through additional Merge
leasing, attractive M&A opportunities, and optimizing our
operations. The Cleveland asset will continue to protect our
production base, and be a source of steady execution as it competes
for capital in today’s environment. Our task in 2017 is execution,
and I am confident we can continue to deliver outstanding
operational results across our asset base. I believe that our
future is bright, and that we remain committed to building our
Merge position and executing our goals.”
Financial Results
Total operating revenues for the three months ended December 31,
2016 were $39.5 million as compared to $38.2 million for the three
months ended December 31, 2015. For the full year 2016,
operating revenues were $127.8 million as compared to $197.4
million for the full year 2015, primarily a result of lower
commodity prices. Total revenues including current period
settlements of matured derivative contracts were $251.1 million for
the full year 2016 as compared to $347.2 million for the full year
2015.
Total operating expenses for the three months ended December 31,
2016 were $62.3 million as compared to $66.9 million for the three
months ended December 31, 2015. For the full year 2016,
operating expenses were $232.1 million as compared to $303.9
million for the full year 2015.
For the fourth quarter ended December 31, 2016, the Company
reported a net loss of $52.2 million, or a net loss of $0.53 per
share, compared to fourth quarter of 2015 net income of $1.6
million, or net income of $0.02 per share. For the full year 2016
the Company reported a net loss of $84.8 million, or a net loss of
$1.13 per share compared to full year 2015 net loss of $9.1
million, or a net loss of $0.09 per share.
Excluding, on a tax-adjusted basis, certain items that the
Company does not view as indicative of its ongoing financial
performance, and adjusting for non-controlling interest, the
Company had an adjusted net loss3 for the fourth quarter 2016
of $5.3 million, or an adjusted net loss of $0.07 per share, as
compared to adjusted net income of $0.6 million, or $0.03 per share
for the three months ended December 31, 2015. Adjusted net
loss for the full year 2016 was $15.5 million, or an adjusted net
loss of $0.21 per share as compared to adjusted net income of $2.2
million, or $0.04 per share for the full year 2015.
Earnings before interest, income taxes, depreciation,
amortization, and exploration expense (“EBITDAX”) for the fourth
quarter and full year 2016 was $43.8 million and $188.0 million,
respectively4. This compares to fourth quarter and full year 2015
EBITDAX of $65.1 million and $268.4 million, respectively.
Full year 2016 lease operating expense (“LOE”) of $32.6 million
was approximately 20.5% below the Company’s full year 2015 LOE of
$41.0 million. Fourth quarter LOE of $8.6 million was approximately
6% higher than fourth quarter 2015 LOE of $8.1 million. On a dollar
per boe basis, full year 2016 LOE was $4.64 per boe compared to
full year 2015 LOE which was $4.47 per boe, prior to the addition
of 137 wells purchased and 37 wells completed in the 2016 program.
Capital Expenditures
During the fourth quarter of 2016, the Company spent $52.1
million on non-acquisition capital expenditures, of which $31.2
million was related to drilling and completing operated wells,
representing 60% of the total capital expenditures in the quarter.
The remaining $20.9 million was primarily related to field
maintenance and leasing.
For the full year 2016, the Company spent $105.8 million on
capital expenditures, of which $72.2 million was related to
drilling and completing operated wells, representing 68% of the
total capital expenditures in the year. This compares to
revised 2016 capital expenditure guidance of $110
million.
Operational Results and Update
Cleveland
For the full year 2016, the Company spud 44 wells and completed
37 wells in the Cleveland. Approximately seven wells scheduled for
4Q16 were carried into 2017 for completion as a result of
previously disclosed weather and mechanical slowdowns. To date in
the first quarter of 2017, Jones Energy has completed all of these
and anticipates completing a total of 20 wells during the first
quarter in its Cleveland operations. Since many of these
completions occurred towards the end of the quarter, they are not
expected to significantly impact first quarter production. As such,
the Company is reiterating its 1Q17 production guidance of 17 – 18
MBoe/d.
Daily net production in the Cleveland was 14.6 MBoe/d in the
fourth quarter of 2016 as compared to 17.7 MBoe/d in the fourth
quarter of 2015, a decline of approximately 17.5%. Full year
2016 production in the Cleveland was 13.9 MBoe/d, compared 2015
full year production of 18.4 MBoe/d, a decline of approximately
24.5%. Year over year declines are the result of the Company’s
decision to suspend the drilling program in October 2015.
Merge
Drilling commenced on the Company’s first 2-well pad in December
2016 following the closing of its initial acquisition in September.
To date in the first quarter of 2017, Jones Energy has successfully
completed its first two Merge wells, the BENNETT 24-11-6 1WH and
the HARDY 25-11-6 1WH, both of which target the Woodford formation,
are on initial flowback. Jones Energy has a 90% working interest in
the HARDY 25-11-6 1WH, and a 78% working interest in the BENNETT
24-11-6 1WH. Completion operations on the third well, the BELYEU
33-9-5 1WH, which is also a Woodford target, are underway. Drilling
on the fourth well has commenced.
Jones Energy is currently running one rig in the Merge, which
has moved to the next pad location, where we are drilling two wells
including a Woodford target and the Company’s first Sycamore well.
As a reminder, the Sycamore is a local name in the Merge area,
however the rock is the same as the Meramec, and industry tests
have extended the Meramec play to the south. The Company’s 2017
drilling program expects up to one third to be Meramec targets and
the remaining to be Woodford targets.
Jones Energy continues to aggressively seek opportunities to
enhance its position in the Merge, increasing its leasehold
position from the initial acquisition footprint of approximately
18,000 net acres to approximately 21,300 net acres as of March 8,
2017 (an increase of approximately 18%) through leasing
efforts.
2017 Capital Budget and Operating Plan
The Company has established an initial capital budget of $275
million for 2017, comprised of $232 million for drilling
and completion capital expenditures and the remainder allocated to
leasing, workovers and field maintenance projects. Of the total
drilling and completion budget, 47% is dedicated to ongoing
drilling activity in the Merge. The Company intends to build
operational momentum in the Merge throughout the year, adding a
second rig in July and likely a third rig to follow by year end.
Due to the timing of pad drilling and batch completions, initial
production impact from the Merge is weighted towards year end 2017
and 2018, which is accounted for in Company guidance. The Company
also plans to maintain a three-rig program in the Cleveland, which
supports the current production base.
As previously disclosed, well cost inflation is assumed in the
2017 budget, however, the Company’s year-to-date AFE’s continue to
remain below the budgeted drilling and completion inflation factor
of 15%. The Company continues to work closely with vendors to
monitor service costs and expects that increased activity will most
likely result in some service cost inflation in the near term. As
such, the Company reiterates its Merge drilling and completion
capital of $110 million ($22 million of which is non-operated) and
Cleveland drilling and completion capital of $122 million.
2017 Guidance
Jones Energy reiterates its 2017 guidance for the first quarter
and full year, and projects average daily production of 20,700 to
23,000 Boe per day. A table has been provided below with full
year and first quarter 2017 guidance by category.
2017 Guidance |
|
|
|
|
2017E |
|
1Q17E |
Total Production
(MMBoe) |
7.6 – 8.4 |
|
1.6 – 1.7 |
Average Daily
Production (MBoe/d) |
20.7 – 23.0 |
|
17.0 – 18.0 |
|
|
|
|
Crude Oil
(MBbl/d) |
5.7 – 6.3 |
|
|
Natural Gas
(MMcf/d) |
51 – 57 |
|
|
NGLs
(MBbl/d) |
6.5 – 7.2 |
|
|
|
|
|
|
Lease Operating Expense
($mm) |
$45.0 – $50.0 |
|
|
Production Taxes (% of
Unhedged Revenue) * |
4.5% – 5.5% |
|
|
Ad Valorem Taxes ($mm)
* |
$2.7 – $3.0 |
|
|
Cash G&A Expense
($mm) |
$23 – $25 |
|
|
|
|
|
|
Capital
Expenditures ($mm) |
|
|
|
Merge Drilling
and Completion (D&C) |
|
|
|
JONE Operated
D&C |
$88 |
|
|
Non-Operated
D&C and Other |
|
22 |
|
|
Total
Merge D&C |
$110 |
|
|
Merge Leasing
and Pooling |
|
20 |
|
|
Total Merge
Capital Expenditures |
$130 |
|
|
|
|
|
|
Cleveland
D&C |
$122 |
|
|
Cleveland
Leasing |
|
5 |
|
|
Total Cleveland
Capital Expenditures |
$127 |
|
|
|
|
|
|
Other |
$18 |
|
|
Total Capital Expenditures |
$275 |
|
|
*Production and ad valorem taxes are included as one line item
on the Company’s Consolidated Statements of Operations.
Liquidity and Hedging
As of December 31, 2016, the Company had $247 million undrawn on
its revolving credit facility (with $178 million in outstanding
borrowings) and approximately $35 million in cash.
The estimated mark-to-market value of the Company’s commodity
price hedges in 2017 and beyond was $64.7 million incorporating
strip pricing as of March 3, 2017. In 2016, the Company
entered into offsetting transactions in order to lock in gains
associated with hedge volumes above projected production. The
following table summarizes the Company’s commodity derivative
contracts outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ending December 31, |
|
(As of
Friday, March 3, 2017) |
|
1Q17 |
2Q17 |
3Q17 |
4Q17 |
|
|
2017 |
2018 |
2019 |
|
Oil Hedges |
|
|
|
|
|
|
|
|
|
|
|
|
Swaps Sold
(MBbl) |
|
|
428 |
|
465 |
|
525 |
|
480 |
|
|
|
1,898 |
|
2,057 |
|
219 |
|
Price
($/Bbl) |
|
$68.44 |
$66.28 |
$62.48 |
$63.43 |
|
|
$65.00 |
$61.83 |
$64.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Offset Swaps Purchased (MBbl)[1] |
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
803 |
|
219 |
|
Price ($/Bbl) |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
$46.83 |
$48.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collars
(MBbl) |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
- |
|
810 |
|
Floor
($/Bbl) |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
- |
$48.52 |
|
Ceiling
($/Bbl) |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
- |
$59.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas
Hedges |
|
|
|
|
|
|
|
|
|
|
|
Swaps Sold
(MMcf) |
|
|
4,240 |
|
4,530 |
|
5,070 |
|
5,010 |
|
|
|
18,850 |
|
29,840 |
|
3,750 |
|
Price
($/Mcf) |
|
$3.99 |
$3.89 |
$3.72 |
$3.70 |
|
|
$3.66 |
$3.38 |
$3.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Offset Swaps Purchased (MMcf)[1] |
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
9,900 |
|
3,750 |
|
Price ($/Mcf) |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
$2.81 |
$2.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collars
(MMcf) |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
- |
|
11,890 |
|
Floor
($/Mcf) |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
- |
$2.55 |
|
Ceiling
($/Mcf) |
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
- |
$3.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGL Swaps
(MBbl) |
|
|
|
|
|
|
|
|
|
|
|
Ethane |
|
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
- |
|
- |
|
Propane |
|
|
|
197 |
|
224 |
|
231 |
|
227 |
|
|
|
879 |
|
- |
|
- |
|
Iso Butane |
|
|
|
27 |
|
27 |
|
25 |
|
24 |
|
|
|
103 |
|
- |
|
- |
|
Butane |
|
|
|
66 |
|
66 |
|
66 |
|
66 |
|
|
|
264 |
|
- |
|
- |
|
Natural
Gasoline |
|
|
63 |
|
83 |
|
93 |
|
93 |
|
|
|
332 |
|
- |
|
- |
|
Total
NGLs |
|
|
353 |
|
400 |
|
415 |
|
410 |
|
|
|
1,578 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGL Swap
Prices ($/Gal) |
|
|
|
|
|
|
|
|
|
|
|
Ethane |
|
|
|
- |
|
- |
|
- |
|
- |
|
|
|
- |
|
- |
|
- |
|
Propane |
|
|
$0.44 |
$0.46 |
$0.47 |
$0.47 |
|
|
$0.46 |
|
- |
|
- |
|
Iso Butane |
|
|
|
0.66 |
|
0.66 |
|
0.60 |
|
0.57 |
|
|
|
0.63 |
|
- |
|
- |
|
Butane |
|
|
|
0.63 |
|
0.61 |
|
0.59 |
|
0.59 |
|
|
|
0.60 |
|
- |
|
- |
|
Natural
Gasoline |
|
|
1.02 |
|
1.05 |
|
1.04 |
|
1.04 |
|
|
|
1.04 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Swaps
purchased to crystalize $45 million gain |
Conference Call Details
Jones Energy will host a conference call for investors and
analysts to discuss its results on Thursday, March 9, 2017 at 10:30
a.m. ET (9:30 a.m. CT). The conference call can be accessed
via webcast through the Investor Relations section of Jones
Energy’s website, www.jonesenergy.com, or by dialing (877) 201-0168
(for domestic U.S.) or (647) 788-4901 (International) and entering
conference code 61121644. If you are not able to participate
in the conference call, the webcast replay and a downloadable audio
file will be available shortly following the call through the
Investor Relations section of the Company’s website,
www.jonesenergy.com.
About Jones Energy
Jones Energy, Inc. is an independent oil and natural gas company
engaged in the development and acquisition of oil and natural gas
properties in the Anadarko and Arkoma basins of Texas and
Oklahoma. Additional information about Jones Energy may be
found on the Company’s website at: www.jonesenergy.com.
Forward-Looking Statements
This press release contains 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, included in this press
release that address activities, events or developments that the
Company expects, believes or anticipates will or may occur in the
future are forward-looking statements. Without limiting the
generality of the foregoing, forward-looking statements contained
in this press release specifically include the expectations of
plans, strategies, objectives and anticipated financial and
operating results of the Company, including guidance regarding the
deployment of rigs in the Company’s areas of operation and the
anticipated drilling schedule, the initial 2017 capital budget and
operating plan, drilling, completion and leasing capital
expenditures in the Company’s areas of operation, the anticipated
costs of the Company’s service providers, timing of production
impacts, and projections regarding total production, average daily
production, lease operating expenses, production taxes, cash
G&A expenses and capital expenditure levels for 2017.
These statements are based on certain assumptions made by the
Company based on management’s experience and perception of
historical trends, current conditions, anticipated future
developments and other factors believed to be appropriate. Such
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company,
which may cause actual results to differ materially from those
implied or expressed by the forward-looking statements. These
include, but are not limited to, changes in oil and natural gas
prices, weather and environmental conditions, the timing and amount
of planned capital expenditures, uncertainties in estimating proved
reserves and forecasting production results, operational factors
affecting the commencement or maintenance of producing wells,
covenants in the Company’s debt documents and their potential
effect on the ability to engage in certain transactions, the
condition of the capital markets generally, as well as the
Company’s ability to access them, ability to fund growth
opportunities, the proximity to and capacity of transportation
facilities, non-performance by third parties of contractual
obligations, and uncertainties regarding environmental regulations
or litigation and other legal or regulatory developments affecting
the Company’s business and other important factors that could cause
actual results to differ materially from those projected as
described in the Company’s reports filed with the SEC.
Any forward-looking statement speaks only as of the date on
which such statement is made and the Company undertakes no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
Jones Energy, Inc.Consolidated Statements of
Operations
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
(in thousands of dollars except per share data) |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Oil and
gas sales |
|
$ |
38,817 |
|
|
$ |
37,600 |
|
|
$ |
124,877 |
|
|
$ |
194,555 |
|
Other
revenues |
|
|
675 |
|
|
|
634 |
|
|
|
2,970 |
|
|
|
2,844 |
|
Total
operating revenues |
|
|
39,492 |
|
|
|
38,234 |
|
|
|
127,847 |
|
|
|
197,399 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating |
|
|
8,613 |
|
|
|
8,097 |
|
|
|
32,640 |
|
|
|
41,027 |
|
Production and ad valorem taxes |
|
|
2,707 |
|
|
|
2,838 |
|
|
|
7,768 |
|
|
|
12,130 |
|
Exploration |
|
|
5,436 |
|
|
|
367 |
|
|
|
6,673 |
|
|
|
6,551 |
|
Depletion, depreciation and amortization |
|
|
37,481 |
|
|
|
49,347 |
|
|
|
153,930 |
|
|
|
205,498 |
|
Accretion of ARO liability |
|
|
350 |
|
|
|
477 |
|
|
|
1,263 |
|
|
|
1,087 |
|
General
and administrative |
|
|
7,562 |
|
|
|
5,816 |
|
|
|
29,640 |
|
|
|
33,388 |
|
Other
operating |
|
|
199 |
|
|
|
— |
|
|
|
199 |
|
|
|
4,188 |
|
Total
operating expenses |
|
|
62,348 |
|
|
|
66,942 |
|
|
|
232,113 |
|
|
|
303,869 |
|
Operating
income (loss) |
|
|
(22,856 |
) |
|
|
(28,708 |
) |
|
|
(104,266 |
) |
|
|
(106,470 |
) |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense |
|
|
(12,730 |
) |
|
|
(16,905 |
) |
|
|
(53,127 |
) |
|
|
(64,458 |
) |
Gain on
debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
99,530 |
|
|
|
— |
|
Net gain
(loss) on commodity derivatives |
|
|
(32,495 |
) |
|
|
47,039 |
|
|
|
(51,264 |
) |
|
|
158,753 |
|
Other
income (expense) |
|
|
285 |
|
|
|
1,948 |
|
|
|
536 |
|
|
|
317 |
|
Other
income (expense), net |
|
|
(44,940 |
) |
|
|
32,082 |
|
|
|
(4,325 |
) |
|
|
94,612 |
|
Income
(loss) before income tax |
|
|
(67,796 |
) |
|
|
3,374 |
|
|
|
(108,591 |
) |
|
|
(11,858 |
) |
Income tax provision (benefit) |
|
|
|
|
|
|
|
|
|
|
|
|
Total
income tax provision (benefit) |
|
|
(15,552 |
) |
|
|
1,809 |
|
|
|
(23,786 |
) |
|
|
(2,781 |
) |
Net
income (loss) |
|
|
(52,244 |
) |
|
|
1,565 |
|
|
|
(84,805 |
) |
|
|
(9,077 |
) |
Net
income (loss) attributable to non-controlling interests |
|
|
(23,879 |
) |
|
|
929 |
|
|
|
(42,253 |
) |
|
|
(6,696 |
) |
Net income (loss) attributable to controlling
interests |
|
$ |
(28,365 |
) |
|
$ |
636 |
|
|
$ |
(42,552 |
) |
|
$ |
(2,381 |
) |
Dividends and accretion on preferred stock |
|
|
(1,904 |
) |
|
|
— |
|
|
|
(2,669 |
) |
|
|
— |
|
Net income (loss) attributable to common
shareholders |
|
$ |
(30,269 |
) |
|
$ |
636 |
|
|
$ |
(45,221 |
) |
|
$ |
(2,381 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.53 |
) |
|
$ |
0.02 |
|
|
$ |
(1.13 |
) |
|
$ |
(0.09 |
) |
Diluted |
|
$ |
(0.53 |
) |
|
$ |
0.02 |
|
|
$ |
(1.13 |
) |
|
$ |
(0.09 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
57,009 |
|
|
|
30,452 |
|
|
|
40,009 |
|
|
|
26,816 |
|
Diluted |
|
|
57,009 |
|
|
|
30,452 |
|
|
|
40,009 |
|
|
|
26,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jones Energy, Inc.Consolidated Balance
Sheets
|
|
December 31, |
|
December 31, |
(in thousands of dollars) |
|
2016 |
|
2015 |
Assets |
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash |
|
$ |
34,642 |
|
|
$ |
21,893 |
|
Accounts
receivable, net |
|
|
|
|
|
|
Oil and
gas sales |
|
|
26,568 |
|
|
|
19,292 |
|
Joint
interest owners |
|
|
5,267 |
|
|
|
11,314 |
|
Other |
|
|
6,061 |
|
|
|
15,170 |
|
Commodity
derivative assets |
|
|
24,100 |
|
|
|
124,207 |
|
Other
current assets |
|
|
2,684 |
|
|
|
2,298 |
|
Total
current assets |
|
|
99,322 |
|
|
|
194,174 |
|
Oil and
gas properties, net, at cost under the successful efforts
method |
|
|
1,743,588 |
|
|
|
1,635,766 |
|
Other
property, plant and equipment, net |
|
|
2,996 |
|
|
|
3,873 |
|
Commodity derivative assets |
|
|
34,744 |
|
|
|
93,302 |
|
Other
assets |
|
|
6,050 |
|
|
|
8,039 |
|
Total
assets |
|
$ |
1,886,700 |
|
|
$ |
1,935,154 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Trade
accounts payable |
|
$ |
36,527 |
|
|
$ |
7,467 |
|
Oil and
gas sales payable |
|
|
28,339 |
|
|
|
32,408 |
|
Accrued
liabilities |
|
|
25,707 |
|
|
|
27,011 |
|
Commodity
derivative liabilities |
|
|
14,650 |
|
|
|
11 |
|
Other
current liabilities |
|
|
2,584 |
|
|
|
679 |
|
Total
current liabilities |
|
|
107,807 |
|
|
|
67,576 |
|
Long-term debt |
|
|
724,009 |
|
|
|
837,654 |
|
Deferred
revenue |
|
|
7,049 |
|
|
|
11,417 |
|
Commodity derivative liabilities |
|
|
1,209 |
|
|
|
— |
|
Asset
retirement obligations |
|
|
19,458 |
|
|
|
20,301 |
|
Liability under tax receivable agreement |
|
|
43,045 |
|
|
|
38,052 |
|
Other liabilities |
|
|
792 |
|
|
|
330 |
|
Deferred
tax liabilities |
|
|
2,905 |
|
|
|
22,972 |
|
Total
liabilities |
|
|
906,274 |
|
|
|
998,302 |
|
Commitments and contingencies |
|
|
|
|
|
|
Mezzanine equity |
|
|
|
|
|
|
Series A
preferred stock, $0.001 par value; 1,840,000 shares issued and
outstanding at December 31, 2016 and no shares issued and
outstanding at December 31, 2015 |
|
|
88,975 |
|
|
|
— |
|
Stockholders' equity |
|
|
|
|
|
|
Class A
common stock, $0.001 par value; 57,048,076 shares issued and
57,025,474 shares outstanding at December 31, 2016 and
30,573,509 shares issued and 30,550,907 shares outstanding at
December 31, 2015 |
|
|
57 |
|
|
|
31 |
|
Class B
common stock, $0.001 par value; 29,832,098 shares issued and
outstanding at December 31, 2016 and 31,273,130 shares
issued and outstanding at December 31, 2015 |
|
|
30 |
|
|
|
31 |
|
Treasury
stock, at cost: 22,602 shares at December 31, 2016 and
December 31, 2015 |
|
|
(358 |
) |
|
|
(358 |
) |
Additional paid-in-capital |
|
|
447,137 |
|
|
|
363,723 |
|
Retained
(deficit) / earnings |
|
|
(8,652 |
) |
|
|
36,569 |
|
Stockholders' equity |
|
|
438,214 |
|
|
|
399,996 |
|
Non-controlling interest |
|
|
453,237 |
|
|
|
536,856 |
|
Total
stockholders’ equity |
|
|
891,451 |
|
|
|
936,852 |
|
Total
liabilities and stockholders' equity |
|
$ |
1,886,700 |
|
|
$ |
1,935,154 |
|
|
|
|
|
|
|
|
Jones Energy,
Inc. Consolidated Statements of Cash
Flows
(in thousands of dollars) |
|
Twelve Months Ended December 31, |
|
|
2016 |
|
2015 |
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net
income (loss) |
|
$ |
(84,805 |
) |
|
$ |
(9,077 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
operating activities |
|
|
|
|
|
|
Depletion, depreciation, and amortization |
|
|
153,930 |
|
|
|
205,498 |
|
Exploration (dry hole and lease abandonment) |
|
|
6,261 |
|
|
|
5,250 |
|
Accretion
of ARO liability |
|
|
1,263 |
|
|
|
1,087 |
|
Amortization of debt issuance costs |
|
|
4,060 |
|
|
|
6,043 |
|
Stock
compensation expense |
|
|
7,425 |
|
|
|
7,562 |
|
Deferred
and other non-cash compensation expense |
|
|
804 |
|
|
|
455 |
|
Amortization of deferred revenue |
|
|
(2,384 |
) |
|
|
(1,960 |
) |
(Gain)
loss on commodity derivatives |
|
|
51,264 |
|
|
|
(158,753 |
) |
(Gain)
loss on sales of assets |
|
|
(14 |
) |
|
|
3 |
|
(Gain) on
debt extinguishment |
|
|
(99,530 |
) |
|
|
— |
|
Deferred
income tax provision |
|
|
(27,767 |
) |
|
|
(2,892 |
) |
Other -
net |
|
|
418 |
|
|
|
(961 |
) |
Changes
in operating assets and liabilities |
|
|
|
|
|
|
Accounts
receivable |
|
|
2,276 |
|
|
|
64,510 |
|
Other
assets |
|
|
(675 |
) |
|
|
(432 |
) |
Accrued
interest expense |
|
|
(4,727 |
) |
|
|
7,050 |
|
Accounts
payable and accrued liabilities |
|
|
17,901 |
|
|
|
(54,534 |
) |
Net cash
provided by operations |
|
|
25,700 |
|
|
|
68,849 |
|
Cash flows from investing activities |
|
|
|
|
|
|
Additions to oil and gas properties |
|
|
(264,462 |
) |
|
|
(311,305 |
) |
Net
adjustments to purchase price of properties acquired |
|
|
— |
|
|
|
— |
|
Proceeds
from sales of assets |
|
|
1,645 |
|
|
|
41 |
|
Acquisition of other property, plant and equipment |
|
|
(310 |
) |
|
|
(1,101 |
) |
Current
period settlements of matured derivative contracts |
|
|
132,265 |
|
|
|
144,145 |
|
Net cash
(used in) investing |
|
|
(130,862 |
) |
|
|
(168,220 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
Proceeds
from issuance of long-term debt |
|
|
130,000 |
|
|
|
85,000 |
|
Repayment under long-term debt |
|
|
(62,000 |
) |
|
|
(335,000 |
) |
Proceeds
from senior notes |
|
|
— |
|
|
|
236,475 |
|
Purchase
of senior notes |
|
|
(84,589 |
) |
|
|
— |
|
Payment
of debt issuance costs |
|
|
— |
|
|
|
(1,556 |
) |
Payment
of dividends on preferred stock |
|
|
(1,615 |
) |
|
|
— |
|
Net
distributions paid to JEH unitholders |
|
|
(17,319 |
) |
|
|
— |
|
Proceeds
from sale of common stock |
|
|
65,446 |
|
|
|
122,779 |
|
Proceeds
from sale of preferred stock |
|
|
87,988 |
|
|
|
— |
|
Purchases of treasury stock |
|
|
— |
|
|
|
— |
|
Net cash
provided by financing |
|
|
117,911 |
|
|
|
107,698 |
|
Net
increase (decrease) in cash |
|
|
12,749 |
|
|
|
8,327 |
|
Cash |
|
|
|
|
|
|
Beginning of period |
|
|
21,893 |
|
|
|
13,566 |
|
End of
period |
|
$ |
34,642 |
|
|
$ |
21,893 |
|
Supplemental disclosure of cash flow
information |
|
|
|
|
|
|
Cash
paid for interest |
|
$ |
53,816 |
|
|
$ |
52,796 |
|
Cash
paid for income taxes |
|
|
— |
|
|
|
(155 |
) |
Change
in accrued additions to oil and gas properties |
|
|
9,325 |
|
|
|
(111,210 |
) |
Asset
retirement obligations incurred, including changes in estimate |
|
|
(1,276 |
) |
|
|
6,371 |
|
|
|
|
|
|
|
|
Jones Energy, Inc. Selected Financial and
Operating Statistics
The following table sets forth summary data regarding revenues,
production volumes, average prices and average production costs
associated with our sale of oil and natural gas for the periods
indicated:
|
|
Three Months Ended
December 31, |
|
Twelve Months Ended December
31, |
|
|
2016 |
|
2015 |
|
Change |
|
2016 |
|
2015 |
|
Change |
Revenues (in
thousands of dollars): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and
gas sales |
|
|
38,817 |
|
|
37,600 |
|
|
1,217 |
|
|
|
124,877 |
|
|
194,555 |
|
|
(69,678 |
) |
Other
revenues |
|
|
675 |
|
|
634 |
|
|
41 |
|
|
|
2,970 |
|
|
2,844 |
|
|
126 |
|
Current
period settlements of matured derivative contracts |
|
|
21,630 |
|
|
41,809 |
|
|
(20,179 |
) |
|
|
123,249 |
|
|
149,801 |
|
|
(26,552 |
) |
Total
operating revenues |
|
|
61,122 |
|
|
80,043 |
|
|
(18,921 |
) |
|
|
251,096 |
|
|
347,200 |
|
|
(96,104 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net production
volumes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
(MBbls) |
|
|
414 |
|
|
552 |
|
|
(138 |
) |
|
|
1,685 |
|
|
2,583 |
|
|
(898 |
) |
Natural
gas (MMcf) |
|
|
4,712 |
|
|
5,667 |
|
|
(955 |
) |
|
|
18,842 |
|
|
23,839 |
|
|
(4,997 |
) |
NGLs
(MBbls) |
|
|
571 |
|
|
672 |
|
|
(101 |
) |
|
|
2,204 |
|
|
2,618 |
|
|
(414 |
) |
Total
(MBoe) |
|
|
1,770 |
|
|
2,169 |
|
|
(398 |
) |
|
|
7,029 |
|
|
9,174 |
|
|
(2,145 |
) |
Average
net (Boe/d) |
|
|
19,239 |
|
|
23,576 |
|
|
(4,337 |
) |
|
|
19,205 |
|
|
25,134 |
|
|
(5,929 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales
price, unhedged: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (per
Bbl), unhedged |
|
$ |
44.68 |
|
$ |
37.03 |
|
$ |
7.65 |
|
|
$ |
37.83 |
|
$ |
44.15 |
|
$ |
(6.32 |
) |
Natural
gas (per Mcf), unhedged |
|
|
2.16 |
|
|
1.52 |
|
|
0.64 |
|
|
|
1.67 |
|
|
1.91 |
|
|
(0.24 |
) |
NGLs (per
Bbl), unhedged |
|
|
17.73 |
|
|
12.69 |
|
|
5.04 |
|
|
|
13.48 |
|
|
13.36 |
|
|
0.12 |
|
Combined
(per Boe), unhedged |
|
|
21.93 |
|
|
17.34 |
|
|
4.59 |
|
|
|
17.77 |
|
|
21.21 |
|
|
(3.44 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales
price, hedged: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (per
Bbl), hedged |
|
$ |
79.94 |
|
$ |
80.73 |
|
$ |
(0.79 |
) |
|
$ |
84.71 |
|
$ |
76.35 |
|
$ |
8.36 |
|
Natural
gas (per Mcf), hedged |
|
|
3.26 |
|
|
3.26 |
|
|
— |
|
|
|
3.45 |
|
|
3.35 |
|
|
0.10 |
|
NGLs (per
Bbl), hedged |
|
|
16.82 |
|
|
24.35 |
|
|
(7.53 |
) |
|
|
17.25 |
|
|
25.73 |
|
|
(8.48 |
) |
Combined
(per Boe), hedged |
|
|
32.79 |
|
|
36.61 |
|
|
(3.82 |
) |
|
|
34.96 |
|
|
37.54 |
|
|
(2.58 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average costs
(per BOE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating |
|
$ |
4.87 |
|
$ |
3.73 |
|
$ |
1.14 |
|
|
$ |
4.64 |
|
$ |
4.47 |
|
$ |
0.17 |
|
Production and ad valorem taxes |
|
|
1.53 |
|
|
1.31 |
|
|
0.22 |
|
|
|
1.11 |
|
|
1.32 |
|
|
(0.21 |
) |
Depletion, depreciation and amortization |
|
|
21.18 |
|
|
22.75 |
|
|
(1.57 |
) |
|
|
21.90 |
|
|
22.40 |
|
|
(0.50 |
) |
General
and administrative |
|
|
4.27 |
|
|
2.68 |
|
|
1.59 |
|
|
|
4.22 |
|
|
3.64 |
|
|
0.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jones Energy, Inc.
Non-GAAP Financial Measures and Reconciliations
EBITDAX is a supplemental non-GAAP financial
measure that is used by management and external users of the
Company’s consolidated financial statements, such as industry
analysts, investors, lenders and rating agencies.
The Company defines EBITDAX as earnings before
interest expense, income taxes, depreciation, depletion and
amortization, exploration expense, gains and losses from
derivatives less the current period settlements of matured
derivative contracts, and the other items described below.
EBITDAX is not a measure of net income as determined by United
States generally accepted accounting principles, or GAAP.
Management believes EBITDAX is useful because it allows them to
more effectively evaluate the Company’s operating performance and
compare the results of its operations from period to period and
against its peers without regard to its financing methods or
capital structure. The Company excludes the items listed
above from net income in arriving at EBITDAX because these amounts
can vary substantially from company to company within its industry
depending upon accounting methods and book values of assets,
capital structures and the method by which the assets were
acquired. EBITDAX has limitations as an analytical tool and
should not be considered as an alternative to, or more meaningful
than, net income as determined in accordance with GAAP or as an
indicator of the Company’s liquidity. Certain items excluded from
EBITDAX are significant components in understanding and assessing a
company’s financial performance, such as a company’s cost of
capital and tax structure, as well as the historical costs of
depreciable assets. The Company’s presentation of EBITDAX
should not be construed as an inference that its results will be
unaffected by unusual or non-recurring items and should not be
viewed as a substitute for GAAP. The Company’s computations
of EBITDAX may not be comparable to other similarly titled measures
of other companies.
The following table sets forth a reconciliation
of net income (loss) as determined in accordance with GAAP to
EBITDAX for the periods indicated:
|
|
Three Months Ended
December 31, |
|
|
Twelve Months Ended December 31, |
(in thousands of dollars) |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Reconciliation
of EBITDAX to net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) |
|
$ |
(52,244 |
) |
|
$ |
1,565 |
|
|
$ |
(84,805 |
) |
|
$ |
(9,077 |
) |
Interest
expense |
|
|
12,730 |
|
|
|
16,905 |
|
|
|
53,127 |
|
|
|
64,458 |
|
Exploration expense |
|
|
5,436 |
|
|
|
367 |
|
|
|
6,673 |
|
|
|
6,551 |
|
Income
taxes |
|
|
(15,552 |
) |
|
|
1,809 |
|
|
|
(23,786 |
) |
|
|
(2,781 |
) |
Depreciation and depletion |
|
|
37,481 |
|
|
|
49,347 |
|
|
|
153,930 |
|
|
|
205,498 |
|
Impairment of oil and natural gas properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Accretion
of ARO liability |
|
|
350 |
|
|
|
477 |
|
|
|
1,263 |
|
|
|
1,087 |
|
Reduction
of TRA liability |
|
|
(362 |
) |
|
|
(1,984 |
) |
|
|
(784 |
) |
|
|
(1,984 |
) |
Other
non-cash charges |
|
|
(25 |
) |
|
|
(155 |
) |
|
|
1,202 |
|
|
|
1,023 |
|
Stock
compensation expense |
|
|
2,156 |
|
|
|
2,275 |
|
|
|
7,425 |
|
|
|
7,562 |
|
Deferred
and other non-cash compensation expense |
|
|
190 |
|
|
|
129 |
|
|
|
804 |
|
|
|
455 |
|
Net
(gain) loss on derivative contracts |
|
|
32,495 |
|
|
|
(47,039 |
) |
|
|
51,264 |
|
|
|
(158,753 |
) |
Current
period settlements of matured derivative contracts |
|
|
21,630 |
|
|
|
41,809 |
|
|
|
123,249 |
|
|
|
149,801 |
|
Amortization of deferred revenue |
|
|
(556 |
) |
|
|
(439 |
) |
|
|
(2,384 |
) |
|
|
(1,960 |
) |
(Gain)
loss on sale of assets |
|
|
54 |
|
|
|
13 |
|
|
|
(14 |
) |
|
|
3 |
|
(Gain) on
debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
(99,530 |
) |
|
|
— |
|
Stand-by
rig costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,188 |
|
Financing
expenses and other loan fees |
|
|
23 |
|
|
|
23 |
|
|
|
321 |
|
|
|
2,346 |
|
EBITDAX |
|
$ |
43,806 |
|
|
$ |
65,102 |
|
|
$ |
187,955 |
|
|
$ |
268,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jones Energy, Inc. Non-GAAP Financial Measures
and Reconciliations
Adjusted net income (loss) is a supplemental non-GAAP financial
measure that is used by management and external users of the
Company’s consolidated financial statements. The Company
defines Adjusted net income (loss) as net income (loss) excluding
the impact of certain non-cash items including gains or losses on
commodity derivative instruments not yet settled, impairment of oil
and gas properties, non-cash compensation expense, and the other
items described below. The Company believes adjusted net
income and adjusted earnings per share are useful to investors
because they provide readers with a more meaningful measure of its
profitability before recording certain items for which the timing
or amount cannot be reasonably determined. However, these
measures are provided in addition to, not as an alternative for,
and should be read in conjunction with, the information contained
in the Company’s financial statements prepared in accordance with
GAAP. The following table provides a reconciliation of net
income (loss) as determined in accordance with GAAP to adjusted net
income for the periods indicated:
|
|
Three Months Ended
December 31, |
|
Twelve Months Ended December 31, |
|
(in thousands except per share data) |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
Net income (loss) |
|
$ |
(52,244 |
) |
|
$ |
1,565 |
|
|
$ |
(84,805 |
) |
|
$ |
(9,077 |
) |
|
Net
(gain) loss on derivative contracts |
|
|
32,495 |
|
|
|
(47,039 |
) |
|
|
51,264 |
|
|
|
(158,753 |
) |
|
Current
period settlements of matured derivative contracts |
|
|
21,630 |
|
|
|
41,809 |
|
|
|
123,249 |
|
|
|
149,801 |
|
|
Impairment of oil and gas properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Exploration |
|
|
5,436 |
|
|
|
367 |
|
|
|
6,673 |
|
|
|
6,551 |
|
|
Non-cash
stock compensation expense |
|
|
2,156 |
|
|
|
2,275 |
|
|
|
7,425 |
|
|
|
7,562 |
|
|
Deferred
and other non-cash compensation expense |
|
|
190 |
|
|
|
129 |
|
|
|
804 |
|
|
|
455 |
|
|
(Gain) on
debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
(99,530 |
) |
|
|
— |
|
|
Stand-by
rig costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,188 |
|
|
Financing
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,250 |
|
|
Change in
TRA liability |
|
|
(362 |
) |
|
|
(1,984 |
) |
|
|
(784 |
) |
|
|
(1,984 |
) |
|
Tax
impact of adjusting items (1) |
|
|
(15,069 |
) |
|
|
1,127 |
|
|
|
(20,774 |
) |
|
|
(1,106 |
) |
|
Change in
valuation allowance |
|
|
452 |
|
|
|
2,333 |
|
|
|
950 |
|
|
|
2,333 |
|
|
Adjusted
net income (loss) |
|
|
(5,316 |
) |
|
|
582 |
|
|
|
(15,528 |
) |
|
|
2,220 |
|
|
Adjusted
net income (loss) attributable to non-controlling interests |
|
|
(3,221 |
) |
|
|
(291 |
) |
|
|
(9,861 |
) |
|
|
1,275 |
|
|
Adjusted
net income (loss) attributable to controlling interests |
|
|
(2,095 |
) |
|
|
873 |
|
|
|
(5,667 |
) |
|
|
945 |
|
|
Dividends and accretion on preferred stock |
|
|
(1,904 |
) |
|
|
— |
|
|
|
(2,669 |
) |
|
|
— |
|
|
Adjusted
net income (loss) attributable to common shareholders |
|
$ |
(3,999 |
) |
|
$ |
873 |
|
|
$ |
(8,336 |
) |
|
$ |
945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate on net income (loss) attributable to controlling
interests |
|
|
|
|
|
|
|
|
35.2 |
|
% |
|
38.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In arriving at adjusted net income, the tax impact of the
adjustments to net income is determined by applying the appropriate
tax rate to each adjustment and then allocating the tax impact
between the controlling and non-controlling interests.
Jones Energy, Inc. Non-GAAP Financial Measures
and Reconciliations
Adjusted Earnings per Share is a supplemental non-GAAP financial
measure that is used by management and external users of the
Company’s consolidated financial statements. The Company
defines Adjusted Earnings per Share as earnings per share plus that
portion of the components of adjusted net income allocated to the
controlling interests divided by weighted average shares
outstanding. The Company believes adjusted earnings per share
is useful to investors because it provides readers with a more
meaningful measure of its profitability before recording certain
items for which the timing or amount cannot be reasonably
determined. However, these measures are provided in addition
to, not as an alternative for, and should be read in conjunction
with, the information contained in the Company’s financial
statements prepared in accordance with GAAP. The following
table provides a reconciliation of earnings per share to adjusted
earnings per share for the period indicated:
|
|
Three Months Ended
December 31, |
|
Twelve Months Ended December 31, |
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (basic and diluted) |
|
$ |
(0.53 |
) |
|
$ |
0.02 |
|
|
$ |
(1.13 |
) |
|
$ |
(0.09 |
) |
Net
(gain) loss on derivative contracts |
|
|
0.37 |
|
|
|
(0.77 |
) |
|
|
0.76 |
|
|
|
(2.68 |
) |
Current
period settlements of matured derivative contracts |
|
|
0.25 |
|
|
|
0.68 |
|
|
|
1.67 |
|
|
|
2.48 |
|
Impairment of oil and gas properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Exploration |
|
|
0.06 |
|
|
|
0.01 |
|
|
|
0.11 |
|
|
|
0.12 |
|
Non-cash
stock compensation expense |
|
|
0.02 |
|
|
|
0.04 |
|
|
|
0.10 |
|
|
|
0.13 |
|
Deferred
and other non-cash compensation expense |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
(Gain) on
debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
(1.23 |
) |
|
|
— |
|
Stand-by
rig costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
Financing
expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
Change in
TRA liability |
|
|
(0.01 |
) |
|
|
(0.07 |
) |
|
|
(0.02 |
) |
|
|
(0.07 |
) |
Tax
impact of adjusting items (1) |
|
|
(0.24 |
) |
|
|
0.04 |
|
|
|
(0.50 |
) |
|
|
(0.04 |
) |
Change in
valuation allowance |
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.02 |
|
|
|
0.09 |
|
Adjusted
earnings per share (basic and diluted) |
|
$ |
(0.07 |
) |
|
$ |
0.03 |
|
|
$ |
(0.21 |
) |
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average Class A shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
57,009 |
|
|
|
30,452 |
|
|
|
40,009 |
|
|
|
26,816 |
|
Diluted |
|
|
57,009 |
|
|
|
30,452 |
|
|
|
40,009 |
|
|
|
26,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) In arriving at adjusted net income, the tax impact of the
adjustments to net income is determined by applying the appropriate
tax rate to each adjustment and then allocating the tax impact
between the controlling and non-controlling interests.
1 EBITDAX is a supplemental non-GAAP financial measure that
is used by management and external users of the Company’s
consolidated financial statements, such as industry analysts,
investors, lenders and rating agencies.
2 SEC prices for 2016 year-end proved reserves were $42.75
per barrel for oil and $2.46 per MMBtu for natural gas based on the
first-of-the-month prices for 2016.
3 Adjusted net loss, adjusted net loss per share and
EBITDAX are supplemental non-GAAP financial measures that are used
by management and external users of our consolidated financial
statements, such as industry analysts, investors, lenders and
rating agencies. For additional information, including
reconciliations to the most comparable GAAP financial measures,
please see “Non-GAAP Financial Measures and Reconciliations”
below.
4 EBITDAX is a supplemental non-GAAP
financial measure that is used by management and external users of
the Company’s consolidated financial statements, such as industry
analysts, investors, lenders and rating agencies.
Investor Contacts:
Page Portas, 512-493-4834
Investor Relations Associate
Or
Robert Brooks, 512-328-2953
Executive Vice President & CFO