|
Clayton Williams Energy Announces Third Quarter 2015 Financial Results
Clayton Williams Energy, Inc. (the “Company”) (NYSE:CWEI) today reported
its financial results for the third quarter 2015.
Summary
-
Oil and gas production of 15.6 MBOE/d
-
Adjusted net loss1 (non-GAAP) of $14.9
million
-
EBITDAX2 (non-GAAP) of $28.7 million
-
Core drilling suspended pending improvement in oil prices
-
Sold South Louisiana assets for $11.8 million in September 2015
-
Terminated VPP covering 277 MBOE in August 2015 for $13.7 million
Financial Results for the Third Quarter of 2015
The Company reported a net loss for the third quarter of 2015 (“3Q15”)
of $9.4 million, or $0.77 per share, as compared to net income of $27.4
million, or $2.25 per share, for the third quarter of 2014 (“3Q14”).
Adjusted net loss1 (non-GAAP) for 3Q15 was $14.9 million, or
$1.23 per share, as compared to adjusted net income1 (non-GAAP)
of $17.4 million, or $1.43 per share, for 3Q14. Cash flow from
operations for 3Q15 was $26.4 million as compared to $86.7 million for
3Q14. EBITDAX2 (non-GAAP) for 3Q15 was $28.7 million as
compared to $78.1 million for 3Q14.
For the nine months ended September 30, 2015, net loss attributable to
Company stockholders was $51 million, or $4.19 per share, as compared to
net income of $48.1 million, or $3.96 per share, for the same period in
2014. Adjusted net loss1 (non-GAAP) for the nine-month period
in 2015 was $48.5 million, or $3.99 per share, as compared to adjusted
net income1 (non-GAAP) of $52.1 million, or $4.28 per share,
for the same period in 2014. Cash flow from operations for the
nine-month period in 2015 was $55 million as compared to $211.7 million
during the same period in 2014. EBITDAX2 (non-GAAP) for the
nine-month period in 2015 was $91.4 million as compared to $236.5
million for the same period in 2014.
The key factors affecting the comparability of financial results for
3Q15 versus 3Q14 were:
-
The downturn in commodity prices continues to have a significant
impact on our business and results of operations. After resuming
limited drilling activities in July 2015, the Company drilled two
Eagle Ford wells and one Wolfcamp A well before temporarily suspending
drilling operations in September 2015 due to another decline in
commodity prices.
-
Oil and gas sales for 3Q15, excluding amortized deferred revenues,
decreased $55 million compared to 3Q14. Price variances accounted for
a $54.2 million decrease and production variances accounted for a $0.8
million decrease. Average realized oil prices were $43.26 per barrel
in 3Q15 versus $90.73 per barrel in 3Q14, average realized gas prices
were $2.71 per Mcf in 3Q15 versus $4.14 per Mcf in 3Q14, and average
realized natural gas liquids (“NGL”) prices were $11.01 per barrel in
3Q15 versus $31.73 per barrel in 3Q14. Oil and gas sales in 3Q15
includes $0.8 million of amortized deferred revenue compared to $1.9
million in 3Q14 attributable to a volumetric production payment
(“VPP”). In August 2015, the Company terminated the VPP covering 277
MBOE of oil and gas production from August 2015 through December 2019
for $13.7 million. Reported production and related average realized
sales prices exclude volumes associated with the VPP through July 2015.
-
Oil, gas and NGL production per barrel of oil equivalent (“BOE”)
decreased less than 1% in 3Q15 as compared to 3Q14, with oil
production decreasing 1% to 11,152 barrels per day, gas production
increasing 6% to 17,283 Mcf per day, and NGL production decreasing 1%
to 1,543 barrels per day. Oil and NGL production accounted for
approximately 82% of the Company’s total BOE production in 3Q15 versus
83% in 3Q14. See accompanying tables for additional information
about the Company’s oil and gas production.
-
Production costs in 3Q15 were $20.7 million versus $25.9 million in
3Q14 due primarily to reductions in production taxes associated with a
decrease in oil and gas sales. Production costs on a BOE basis,
excluding production taxes, decreased 11% to $12.68 per BOE in 3Q15
versus $14.19 per BOE in 3Q14.
-
Gain on derivatives for 3Q15 was $18.1 million (including a $6.4
million gain on settled contracts) versus a gain on derivatives in
3Q14 of $9.6 million (net of a $0.2 million loss on settled
contracts). See accompanying tables for additional information
about the Company’s accounting for derivatives.
-
Lower commodity prices negatively impacted the Company’s results of
operations due to asset impairments. The Company recorded an
impairment of proved properties of $3.1 million related primarily to
non-core prospects in the Permian Basin. Also, the Company recorded a
charge to other operating expenses for a mark-to-market valuation of
its tubular inventory.
-
General and administrative expenses for 3Q15 were $4.6 million versus
$0.8 million for 3Q14. Changes in compensation expense attributable to
the Company’s APO reward plans accounted for a net increase of $3.7
million ($2 million credit in 3Q15 versus $5.7 million credit in 3Q14).
1 See “Computation of Adjusted Net Income (Loss) (non-GAAP)”
below for an explanation of how the Company calculates and uses adjusted
net income (loss) (non-GAAP) and for a reconciliation of net income
(loss) (GAAP) to adjusted net income (loss) (non-GAAP).
2 See “Computation of EBITDAX (non-GAAP)” below for an
explanation of how the Company calculates and uses EBITDAX (non-GAAP)
and for a reconciliation of net income (loss) (GAAP) to EBITDAX
(non-GAAP).
Balance Sheet and Liquidity
As of September 30, 2015, total long-term debt was $749.7 million,
consisting of $150 million of secured debt under a revolving credit
facility and $599.7 million of 7.75% Senior Notes due 2019. The
borrowing base established by the banks under the credit facility and
the aggregate lender commitment was $500 million at September 30, 2015.
The Company had $348.1 million of availability under the facility after
allowing for outstanding letters of credit of $1.9 million. Liquidity,
consisting of cash plus funds available on the bank credit facility,
totaled $356.8 million.
Scheduled Conference Call
The Company will host a conference call to discuss these results and
other forward-looking items Thursday, November 5th at 10:30 a.m. CT
(11:30 a.m. ET).
A live webcast for investors and analysts will be available on the
Company’s website at www.claytonwilliams.com
under the “Investors” section. The webcast will be archived on the site
for 30 days following the call.
Participants should call (877) 868-1835 and indicate 64931765 as the
conference passcode. A replay will be available from 1:30 p.m. CT (2:30
p.m. ET) on November 5th until November 12th. To listen to the replay
dial (855) 859-2056 and enter passcode 64931765.
Clayton Williams Energy, Inc. is an independent energy company located
in Midland, Texas.
This 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 or current facts, that address activities,
events, outcomes and other matters that we plan, expect, intend, assume,
believe, budget, predict, forecast, project, estimate or anticipate (and
other similar expressions) will, should or may occur in the future are
forward-looking statements. These forward-looking statements are
based on management's current belief, based on currently available
information, as to the outcome and timing of future events. The
Company cautions that its future natural gas and liquids production,
revenues, cash flows, liquidity, plans for future operations, expenses,
outlook for oil and natural gas prices, timing of capital expenditures
and other forward-looking statements are subject to all of the risks and
uncertainties, many of which are beyond our control, incident to the
exploration for and development, production and marketing of oil and gas.
These risks include, but are not limited to, the possibility of
unsuccessful exploration and development drilling activities, our
ability to replace and sustain production, commodity price volatility,
domestic and worldwide economic conditions, the availability of capital
on economic terms to fund our capital expenditures and acquisitions, our
level of indebtedness, the impact of the current economic recession on
our business operations, financial condition and ability to raise
capital, declines in the value of our oil and gas properties resulting
in a decrease in our borrowing base under our credit facility and
impairments, the ability of financial counterparties to perform or
fulfill their obligations under existing agreements, the uncertainty
inherent in estimating proved oil and gas reserves and in projecting
future rates of production and timing of development expenditures,
drilling and other operating risks, lack of availability of goods and
services, regulatory and environmental risks associated with drilling
and production activities, the adverse effects of changes in applicable
tax, environmental and other regulatory legislation, and other risks and
uncertainties are described in the Company's filings with the Securities
and Exchange Commission. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.
|
|
|
CLAYTON WILLIAMS ENERGY, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
(In thousands, except per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and gas sales
|
|
|
$
|
51,307
|
|
|
|
$
|
107,480
|
|
|
|
|
$
|
178,539
|
|
|
|
$
|
331,369
|
|
|
Midstream services
|
|
|
|
1,500
|
|
|
|
|
1,883
|
|
|
|
|
|
4,714
|
|
|
|
|
5,336
|
|
|
Drilling rig services
|
|
|
|
—
|
|
|
|
|
7,066
|
|
|
|
|
|
23
|
|
|
|
|
22,438
|
|
|
Other operating revenues
|
|
|
|
1,774
|
|
|
|
|
2,854
|
|
|
|
|
|
8,678
|
|
|
|
|
14,640
|
|
|
Total revenues
|
|
|
|
54,581
|
|
|
|
|
119,283
|
|
|
|
|
|
191,954
|
|
|
|
|
373,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
|
|
|
|
20,665
|
|
|
|
|
25,927
|
|
|
|
|
|
67,188
|
|
|
|
|
77,006
|
|
|
Exploration:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Abandonments and impairments
|
|
|
|
874
|
|
|
|
|
2,026
|
|
|
|
|
|
5,005
|
|
|
|
|
8,752
|
|
|
Seismic and other
|
|
|
|
239
|
|
|
|
|
247
|
|
|
|
|
|
1,210
|
|
|
|
|
1,955
|
|
|
Midstream services
|
|
|
|
406
|
|
|
|
|
624
|
|
|
|
|
|
1,339
|
|
|
|
|
1,648
|
|
|
Drilling rig services
|
|
|
|
922
|
|
|
|
|
4,630
|
|
|
|
|
|
4,418
|
|
|
|
|
14,968
|
|
|
Depreciation, depletion and amortization
|
|
|
|
36,861
|
|
|
|
|
37,037
|
|
|
|
|
|
121,636
|
|
|
|
|
112,242
|
|
|
Impairment of property and equipment
|
|
|
|
3,089
|
|
|
|
|
—
|
|
|
|
|
|
5,620
|
|
|
|
|
3,406
|
|
|
Accretion of asset retirement obligations
|
|
|
|
1,001
|
|
|
|
|
936
|
|
|
|
|
|
2,936
|
|
|
|
|
2,723
|
|
|
General and administrative
|
|
|
|
4,631
|
|
|
|
|
811
|
|
|
|
|
|
25,102
|
|
|
|
|
33,980
|
|
|
Other operating expenses
|
|
|
|
5,632
|
|
|
|
|
1,480
|
|
|
|
|
|
8,479
|
|
|
|
|
2,220
|
|
|
Total costs and expenses
|
|
|
|
74,320
|
|
|
|
|
73,718
|
|
|
|
|
|
242,933
|
|
|
|
|
258,900
|
|
|
Operating income (loss)
|
|
|
|
(19,739
|
)
|
|
|
|
45,565
|
|
|
|
|
|
(50,979
|
)
|
|
|
|
114,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(13,565
|
)
|
|
|
|
(12,609
|
)
|
|
|
|
|
(40,451
|
)
|
|
|
|
(37,975
|
)
|
|
Gain (loss) on derivatives
|
|
|
|
18,099
|
|
|
|
|
9,650
|
|
|
|
|
|
10,431
|
|
|
|
|
(3,715
|
)
|
|
Other
|
|
|
|
743
|
|
|
|
|
385
|
|
|
|
|
|
2,307
|
|
|
|
|
2,274
|
|
|
Total other income (expense)
|
|
|
|
5,277
|
|
|
|
|
(2,574
|
)
|
|
|
|
|
(27,713
|
)
|
|
|
|
(39,416
|
)
|
|
Income (loss) before income taxes
|
|
|
|
(14,462
|
)
|
|
|
|
42,991
|
|
|
|
|
|
(78,692
|
)
|
|
|
|
75,467
|
|
|
Income tax (expense) benefit
|
|
|
|
5,039
|
|
|
|
|
(15,562
|
)
|
|
|
|
|
27,705
|
|
|
|
|
(27,319
|
)
|
|
NET INCOME (LOSS)
|
|
|
$
|
(9,423
|
)
|
|
|
$
|
27,429
|
|
|
|
|
$
|
(50,987
|
)
|
|
|
$
|
48,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.77
|
)
|
|
|
$
|
2.25
|
|
|
|
|
$
|
(4.19
|
)
|
|
|
$
|
3.96
|
|
|
Diluted
|
|
|
$
|
(0.77
|
)
|
|
|
$
|
2.25
|
|
|
|
|
$
|
(4.19
|
)
|
|
|
$
|
3.96
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
12,170
|
|
|
|
|
12,166
|
|
|
|
|
|
12,170
|
|
|
|
|
12,166
|
|
|
Diluted
|
|
|
|
12,170
|
|
|
|
|
12,166
|
|
|
|
|
|
12,170
|
|
|
|
|
12,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLAYTON WILLIAMS ENERGY, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(In thousands)
|
|
|
|
ASSETS
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2015
|
|
|
2014
|
|
CURRENT ASSETS
|
|
|
(Unaudited)
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
8,742
|
|
|
|
$
|
28,016
|
|
|
Accounts receivable:
|
|
|
|
|
|
|
|
Oil and gas sales
|
|
|
|
21,418
|
|
|
|
|
36,526
|
|
|
Joint interest and other, net
|
|
|
|
4,436
|
|
|
|
|
14,550
|
|
|
Affiliates
|
|
|
|
237
|
|
|
|
|
322
|
|
|
Inventory
|
|
|
|
35,865
|
|
|
|
|
42,087
|
|
|
Deferred income taxes
|
|
|
|
8,452
|
|
|
|
|
6,911
|
|
|
Fair value of derivatives
|
|
|
|
5,846
|
|
|
|
|
—
|
|
|
Prepaids and other
|
|
|
|
3,743
|
|
|
|
|
4,208
|
|
|
|
|
|
|
88,739
|
|
|
|
|
132,620
|
|
|
PROPERTY AND EQUIPMENT
|
|
|
|
|
|
|
|
Oil and gas properties, successful efforts method
|
|
|
|
2,591,408
|
|
|
|
|
2,684,913
|
|
|
Pipelines and other midstream facilities
|
|
|
|
59,880
|
|
|
|
|
59,542
|
|
|
Contract drilling equipment
|
|
|
|
123,876
|
|
|
|
|
122,751
|
|
|
Other
|
|
|
|
20,307
|
|
|
|
|
20,915
|
|
|
|
|
|
|
2,795,471
|
|
|
|
|
2,888,121
|
|
|
Less accumulated depreciation, depletion and amortization
|
|
|
|
(1,511,164
|
)
|
|
|
|
(1,539,237
|
)
|
|
Property and equipment, net
|
|
|
|
1,284,307
|
|
|
|
|
1,348,884
|
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS
|
|
|
|
|
|
|
|
Debt issue costs, net
|
|
|
|
10,593
|
|
|
|
|
12,712
|
|
|
Investments and other
|
|
|
|
16,011
|
|
|
|
|
16,669
|
|
|
|
|
|
|
26,604
|
|
|
|
|
29,381
|
|
|
|
|
|
$
|
1,399,650
|
|
|
|
$
|
1,510,885
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
CURRENT LIABILITIES
|
|
|
|
|
|
|
|
Accounts payable:
|
|
|
|
|
|
|
|
Trade
|
|
|
$
|
31,186
|
|
|
|
$
|
93,650
|
|
|
Oil and gas sales
|
|
|
|
25,936
|
|
|
|
|
41,328
|
|
|
Affiliates
|
|
|
|
266
|
|
|
|
|
717
|
|
|
Accrued liabilities and other
|
|
|
|
30,137
|
|
|
|
|
20,658
|
|
|
|
|
|
|
87,525
|
|
|
|
|
156,353
|
|
|
NON-CURRENT LIABILITIES
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
749,743
|
|
|
|
|
704,696
|
|
|
Deferred income taxes
|
|
|
|
138,435
|
|
|
|
|
164,599
|
|
|
Asset retirement obligations
|
|
|
|
48,279
|
|
|
|
|
45,697
|
|
|
Deferred revenue from volumetric production payment
|
|
|
|
5,755
|
|
|
|
|
23,129
|
|
|
Accrued compensation under non-equity award plans
|
|
|
|
22,720
|
|
|
|
|
17,866
|
|
|
Other
|
|
|
|
386
|
|
|
|
|
751
|
|
|
|
|
|
|
965,318
|
|
|
|
|
956,738
|
|
|
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Preferred stock, par value $.10 per share
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Common stock, par value $.10 per share
|
|
|
|
1,216
|
|
|
|
|
1,216
|
|
|
Additional paid-in capital
|
|
|
|
152,686
|
|
|
|
|
152,686
|
|
|
Retained earnings
|
|
|
|
192,905
|
|
|
|
|
243,892
|
|
|
Total stockholders' equity
|
|
|
|
346,807
|
|
|
|
|
397,794
|
|
|
|
|
|
$
|
1,399,650
|
|
|
|
$
|
1,510,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLAYTON WILLIAMS ENERGY, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
$
|
(9,423
|
)
|
|
|
$
|
27,429
|
|
|
|
|
$
|
(50,987
|
)
|
|
|
$
|
48,148
|
|
|
Adjustments to reconcile net income (loss) to cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
36,861
|
|
|
|
|
37,037
|
|
|
|
|
|
121,636
|
|
|
|
|
112,242
|
|
|
Impairment of property and equipment
|
|
|
|
3,089
|
|
|
|
|
—
|
|
|
|
|
|
5,620
|
|
|
|
|
3,406
|
|
|
Abandonments and impairments
|
|
|
|
874
|
|
|
|
|
2,026
|
|
|
|
|
|
5,005
|
|
|
|
|
8,752
|
|
|
(Gain) loss on sales of assets and impairment of inventory, net
|
|
|
|
3,414
|
|
|
|
|
400
|
|
|
|
|
|
(835
|
)
|
|
|
|
(9,069
|
)
|
|
Deferred income tax expense (benefit)
|
|
|
|
(5,039
|
)
|
|
|
|
15,562
|
|
|
|
|
|
(27,705
|
)
|
|
|
|
27,319
|
|
|
Non-cash employee compensation
|
|
|
|
(2,679
|
)
|
|
|
|
(6,395
|
)
|
|
|
|
|
4,405
|
|
|
|
|
9,979
|
|
|
(Gain) loss on derivatives
|
|
|
|
(18,099
|
)
|
|
|
|
(9,650
|
)
|
|
|
|
|
(10,431
|
)
|
|
|
|
3,715
|
|
|
Cash settlements of derivatives
|
|
|
|
6,352
|
|
|
|
|
(186
|
)
|
|
|
|
|
4,585
|
|
|
|
|
(4,777
|
)
|
|
Accretion of asset retirement obligations
|
|
|
|
1,001
|
|
|
|
|
936
|
|
|
|
|
|
2,936
|
|
|
|
|
2,723
|
|
|
Amortization of debt issue costs and original issue discount
|
|
|
|
746
|
|
|
|
|
685
|
|
|
|
|
|
2,241
|
|
|
|
|
2,329
|
|
|
Amortization of deferred revenue from volumetric production payment
|
|
|
|
(1,680
|
)
|
|
|
|
(1,898
|
)
|
|
|
|
|
(5,181
|
)
|
|
|
|
(5,855
|
)
|
|
Other
|
|
|
|
265
|
|
|
|
|
—
|
|
|
|
|
|
669
|
|
|
|
|
—
|
|
|
Changes in operating working capital:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
4,280
|
|
|
|
|
(1,868
|
)
|
|
|
|
|
25,307
|
|
|
|
|
(1,434
|
)
|
|
Accounts payable
|
|
|
|
(5,846
|
)
|
|
|
|
8,566
|
|
|
|
|
|
(32,057
|
)
|
|
|
|
3,539
|
|
|
Other
|
|
|
|
12,260
|
|
|
|
|
14,034
|
|
|
|
|
|
9,788
|
|
|
|
|
10,728
|
|
|
Net cash provided by operating activities
|
|
|
|
26,376
|
|
|
|
|
86,678
|
|
|
|
|
|
54,996
|
|
|
|
|
211,745
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property and equipment
|
|
|
|
(30,413
|
)
|
|
|
|
(127,750
|
)
|
|
|
|
|
(155,680
|
)
|
|
|
|
(311,968
|
)
|
|
Proceeds from volumetric production payment
|
|
|
|
1,003
|
|
|
|
|
258
|
|
|
|
|
|
1,510
|
|
|
|
|
810
|
|
|
Termination of volumetric production payment
|
|
|
|
(13,703
|
)
|
|
|
|
—
|
|
|
|
|
|
(13,703
|
)
|
|
|
|
—
|
|
|
Proceeds from sales of assets
|
|
|
|
14,744
|
|
|
|
|
30,861
|
|
|
|
|
|
47,484
|
|
|
|
|
104,634
|
|
|
(Increase) decrease in equipment inventory
|
|
|
|
103
|
|
|
|
|
(1,868
|
)
|
|
|
|
|
1,130
|
|
|
|
|
9,655
|
|
|
Other
|
|
|
|
(2
|
)
|
|
|
|
(192
|
)
|
|
|
|
|
(11
|
)
|
|
|
|
(325
|
)
|
|
Net cash used in investing activities
|
|
|
|
(28,268
|
)
|
|
|
|
(98,691
|
)
|
|
|
|
|
(119,270
|
)
|
|
|
|
(197,194
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt
|
|
|
|
3,000
|
|
|
|
|
7,000
|
|
|
|
|
|
45,000
|
|
|
|
|
29,522
|
|
|
Repayments of long-term debt
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
(40,000
|
)
|
|
Proceeds from exercise of stock options
|
|
|
|
—
|
|
|
|
|
130
|
|
|
|
|
|
—
|
|
|
|
|
130
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
3,000
|
|
|
|
|
7,130
|
|
|
|
|
|
45,000
|
|
|
|
|
(10,348
|
)
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
|
1,108
|
|
|
|
|
(4,883
|
)
|
|
|
|
|
(19,274
|
)
|
|
|
|
4,203
|
|
|
CASH AND CASH EQUIVALENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
7,634
|
|
|
|
|
35,709
|
|
|
|
|
|
28,016
|
|
|
|
|
26,623
|
|
|
End of period
|
|
|
$
|
8,742
|
|
|
|
$
|
30,826
|
|
|
|
|
$
|
8,742
|
|
|
|
$
|
30,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLAYTON WILLIAMS ENERGY, INC.
|
|
COMPUTATION OF ADJUSTED NET INCOME (LOSS) (NON-GAAP)
|
|
(Unaudited)
|
|
(In thousands, except per share)
|
|
|
|
Adjusted net income (loss) is presented as a supplemental non-GAAP
financial measure because of its wide acceptance by financial
analysts, investors, debt holders, banks, rating agencies and other
financial statement users as a tool for operating trends analysis
and industry comparisons. Adjusted net income (loss) is not an
alternative to net income (loss) presented in conformity with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company defines adjusted net income (loss) as net income (loss)
before changes in fair value of derivatives, abandonments and
impairments, impairments of property and equipment, net (gain) loss
on sales of assets and impairment of inventory, amortization of
deferred revenue from volumetric production payment, certain
non-cash and unusual items and the impact on taxes of the
adjustments for each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table is a reconciliation of net income (loss)
(GAAP) to adjusted net income (loss) (non-GAAP):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
Net income (loss)
|
|
|
$
|
(9,423
|
)
|
|
|
$
|
27,429
|
|
|
|
|
$
|
(50,987
|
)
|
|
|
$
|
48,148
|
|
|
(Gain) loss on derivatives
|
|
|
|
(18,099
|
)
|
|
|
|
(9,650
|
)
|
|
|
|
|
(10,431
|
)
|
|
|
|
3,715
|
|
|
Cash settlements of derivatives
|
|
|
|
6,352
|
|
|
|
|
(186
|
)
|
|
|
|
|
4,585
|
|
|
|
|
(4,777
|
)
|
|
Abandonments and impairments
|
|
|
|
874
|
|
|
|
|
2,026
|
|
|
|
|
|
5,005
|
|
|
|
|
8,752
|
|
|
Impairment of property and equipment
|
|
|
|
3,089
|
|
|
|
|
—
|
|
|
|
|
|
5,620
|
|
|
|
|
3,406
|
|
|
Net (gain) loss on sales of assets and impairment of inventory
|
|
|
|
3,414
|
|
|
|
|
400
|
|
|
|
|
|
(835
|
)
|
|
|
|
(9,069
|
)
|
|
Amortization of deferred revenue from volumetric production payment
|
|
|
|
(1,680
|
)
|
|
|
|
(1,898
|
)
|
|
|
|
|
(5,181
|
)
|
|
|
|
(5,855
|
)
|
|
Non-cash employee compensation
|
|
|
|
(2,679
|
)
|
|
|
|
(6,395
|
)
|
|
|
|
|
4,405
|
|
|
|
|
9,979
|
|
|
Other
|
|
|
|
265
|
|
|
|
|
—
|
|
|
|
|
|
669
|
|
|
|
|
—
|
|
|
Tax impact (a)
|
|
|
|
2,945
|
|
|
|
|
5,684
|
|
|
|
|
|
(1,351
|
)
|
|
|
|
(2,227
|
)
|
|
Adjusted net income (loss)
|
|
|
$
|
(14,942
|
)
|
|
|
$
|
17,410
|
|
|
|
|
$
|
(48,501
|
)
|
|
|
$
|
52,072
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$
|
(1.23
|
)
|
|
|
$
|
1.43
|
|
|
|
|
$
|
(3.99
|
)
|
|
|
$
|
4.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
12,170
|
|
|
|
|
12,166
|
|
|
|
|
|
12,170
|
|
|
|
|
12,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rates
|
|
|
|
34.8
|
%
|
|
|
|
36.2
|
%
|
|
|
|
|
35.2
|
%
|
|
|
|
36.2
|
%
|
|
_______
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The tax impact is computed utilizing the Company’s effective
tax rate on the adjustments for each period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLAYTON WILLIAMS ENERGY, INC.
|
|
COMPUTATION OF EBITDAX (NON-GAAP)
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
EBITDAX is presented as a supplemental non-GAAP financial measure
because of its wide acceptance by financial analysts, investors,
debt holders, banks, rating agencies and other financial statement
users as an indication of an entity's ability to meet its debt
service obligations and to internally fund its exploration and
development activities. EBITDAX is not an alternative to net income
(loss) or cash flow from operating activities, or any other measure
of financial performance presented in conformity with GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company defines EBITDAX as net income (loss) before interest
expense, income taxes, exploration costs, net (gain) loss on sales
of assets and impairment of inventory, and all non-cash items in the
Company's statements of operations, including depreciation,
depletion and amortization, impairment of property and equipment,
accretion of asset retirement obligations, amortization of deferred
revenue from volumetric production payment, certain employee
compensation, changes in fair value of derivatives and certain
non-cash and unusual items.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles net income (loss) to EBITDAX:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
Net income (loss)
|
|
|
$
|
(9,423
|
)
|
|
|
$
|
27,429
|
|
|
|
|
$
|
(50,987
|
)
|
|
|
$
|
48,148
|
|
|
Interest expense
|
|
|
|
13,565
|
|
|
|
|
12,609
|
|
|
|
|
|
40,451
|
|
|
|
|
37,975
|
|
|
Income tax expense (benefit)
|
|
|
|
(5,039
|
)
|
|
|
|
15,562
|
|
|
|
|
|
(27,705
|
)
|
|
|
|
27,319
|
|
|
Exploration:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Abandonments and impairments
|
|
|
|
874
|
|
|
|
|
2,026
|
|
|
|
|
|
5,005
|
|
|
|
|
8,752
|
|
|
Seismic and other
|
|
|
|
239
|
|
|
|
|
247
|
|
|
|
|
|
1,210
|
|
|
|
|
1,955
|
|
|
Net (gain) loss on sales of assets and impairment of inventory
|
|
|
|
3,414
|
|
|
|
|
400
|
|
|
|
|
|
(835
|
)
|
|
|
|
(9,069
|
)
|
|
Depreciation, depletion and amortization
|
|
|
|
36,861
|
|
|
|
|
37,037
|
|
|
|
|
|
121,636
|
|
|
|
|
112,242
|
|
|
Impairment of property and equipment
|
|
|
|
3,089
|
|
|
|
|
—
|
|
|
|
|
|
5,620
|
|
|
|
|
3,406
|
|
|
Accretion of asset retirement obligations
|
|
|
|
1,001
|
|
|
|
|
936
|
|
|
|
|
|
2,936
|
|
|
|
|
2,723
|
|
|
Amortization of deferred revenue from volumetric production payment
|
|
|
|
(1,680
|
)
|
|
|
|
(1,898
|
)
|
|
|
|
|
(5,181
|
)
|
|
|
|
(5,855
|
)
|
|
Non-cash employee compensation
|
|
|
|
(2,679
|
)
|
|
|
|
(6,395
|
)
|
|
|
|
|
4,405
|
|
|
|
|
9,979
|
|
|
(Gain) loss on derivatives
|
|
|
|
(18,099
|
)
|
|
|
|
(9,650
|
)
|
|
|
|
|
(10,431
|
)
|
|
|
|
3,715
|
|
|
Cash settlements of derivatives
|
|
|
|
6,352
|
|
|
|
|
(186
|
)
|
|
|
|
|
4,585
|
|
|
|
|
(4,777
|
)
|
|
Other
|
|
|
|
265
|
|
|
|
|
—
|
|
|
|
|
|
669
|
|
|
|
|
—
|
|
|
EBITDAX (a)
|
|
|
$
|
28,740
|
|
|
|
$
|
78,117
|
|
|
|
|
$
|
91,378
|
|
|
|
$
|
236,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table reconciles net cash provided by operating
activities to EBITDAX:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
26,376
|
|
|
|
$
|
86,678
|
|
|
|
|
$
|
54,996
|
|
|
|
$
|
211,745
|
|
|
Changes in operating working capital
|
|
|
|
(10,694
|
)
|
|
|
|
(20,732
|
)
|
|
|
|
|
(3,038
|
)
|
|
|
|
(12,833
|
)
|
|
Seismic and other
|
|
|
|
239
|
|
|
|
|
247
|
|
|
|
|
|
1,210
|
|
|
|
|
1,955
|
|
|
Cash interest expense
|
|
|
|
12,819
|
|
|
|
|
11,924
|
|
|
|
|
|
38,210
|
|
|
|
|
35,646
|
|
|
|
|
|
$
|
28,740
|
|
|
|
$
|
78,117
|
|
|
|
|
$
|
91,378
|
|
|
|
$
|
236,513
|
|
|
______
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) In March 2014, the company sold interests in certain non-core
Austin Chalk/Eagle Ford assets. Revenue, net of direct expenses,
associated with the sold properties was $2.5 million for the nine
months ended September 30, 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLAYTON WILLIAMS ENERGY, INC.
|
|
SUMMARY PRODUCTION AND PRICE DATA
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
2015
|
|
|
2014
|
|
Oil and Gas Production Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls)
|
|
|
|
1,026
|
|
|
|
1,040
|
|
|
|
|
|
3,330
|
|
|
|
3,093
|
|
|
Gas (MMcf)
|
|
|
|
1,590
|
|
|
|
1,500
|
|
|
|
|
|
4,458
|
|
|
|
4,293
|
|
|
Natural gas liquids (MBbls)
|
|
|
|
142
|
|
|
|
144
|
|
|
|
|
|
418
|
|
|
|
434
|
|
|
Total (MBOE)
|
|
|
|
1,433
|
|
|
|
1,434
|
|
|
|
|
|
4,491
|
|
|
|
4,243
|
|
|
Total (BOE/d)
|
|
|
|
15,576
|
|
|
|
15,586
|
|
|
|
|
|
16,451
|
|
|
|
15,541
|
|
|
Average Realized Prices (a) (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil ($/Bbl)
|
|
|
$
|
43.26
|
|
|
$
|
90.73
|
|
|
|
|
$
|
46.93
|
|
|
$
|
93.45
|
|
|
Gas ($/Mcf)
|
|
|
$
|
2.71
|
|
|
$
|
4.14
|
|
|
|
|
$
|
2.65
|
|
|
$
|
4.53
|
|
|
Natural gas liquids ($/Bbl)
|
|
|
$
|
11.01
|
|
|
$
|
31.73
|
|
|
|
|
$
|
13.09
|
|
|
$
|
34.35
|
|
|
Gain (Loss) on Settled Derivative Contracts (b):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands, except per unit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash settlements received (paid)
|
|
|
$
|
6,352
|
|
|
$
|
(186
|
)
|
|
|
|
$
|
4,585
|
|
|
$
|
(4,777
|
)
|
|
Per unit produced ($/Bbl)
|
|
|
$
|
6.19
|
|
|
$
|
(0.18
|
)
|
|
|
|
$
|
1.38
|
|
|
$
|
(1.54
|
)
|
|
Average Daily Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (Bbls):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian Basin Area:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware Basin
|
|
|
|
3,175
|
|
|
|
2,990
|
|
|
|
|
|
3,561
|
|
|
|
3,390
|
|
|
Other
|
|
|
|
3,221
|
|
|
|
3,205
|
|
|
|
|
|
3,141
|
|
|
|
3,325
|
|
|
Austin Chalk (c)
|
|
|
|
1,806
|
|
|
|
1,917
|
|
|
|
|
|
1,884
|
|
|
|
2,074
|
|
|
Eagle Ford Shale (c)
|
|
|
|
2,634
|
|
|
|
2,716
|
|
|
|
|
|
3,269
|
|
|
|
2,106
|
|
|
Other
|
|
|
|
316
|
|
|
|
476
|
|
|
|
|
|
343
|
|
|
|
435
|
|
|
Total
|
|
|
|
11,152
|
|
|
|
11,304
|
|
|
|
|
|
12,198
|
|
|
|
11,330
|
|
|
Natural Gas (Mcf):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian Basin Area:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware Basin
|
|
|
|
2,766
|
|
|
|
2,336
|
|
|
|
|
|
3,036
|
|
|
|
2,690
|
|
|
Other
|
|
|
|
6,771
|
|
|
|
6,795
|
|
|
|
|
|
6,653
|
|
|
|
6,839
|
|
|
Austin Chalk (c)
|
|
|
|
1,708
|
|
|
|
1,754
|
|
|
|
|
|
1,737
|
|
|
|
1,786
|
|
|
Eagle Ford Shale (c)
|
|
|
|
451
|
|
|
|
482
|
|
|
|
|
|
540
|
|
|
|
362
|
|
|
Other
|
|
|
|
5,587
|
|
|
|
4,937
|
|
|
|
|
|
4,364
|
|
|
|
4,048
|
|
|
Total
|
|
|
|
17,283
|
|
|
|
16,304
|
|
|
|
|
|
16,330
|
|
|
|
15,725
|
|
|
Natural Gas Liquids (Bbls):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian Basin Area:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware Basin
|
|
|
|
408
|
|
|
|
451
|
|
|
|
|
|
417
|
|
|
|
477
|
|
|
Other
|
|
|
|
814
|
|
|
|
803
|
|
|
|
|
|
794
|
|
|
|
812
|
|
|
Austin Chalk (c)
|
|
|
|
179
|
|
|
|
176
|
|
|
|
|
|
169
|
|
|
|
184
|
|
|
Eagle Ford Shale (c)
|
|
|
|
121
|
|
|
|
95
|
|
|
|
|
|
126
|
|
|
|
91
|
|
|
Other
|
|
|
|
21
|
|
|
|
40
|
|
|
|
|
|
25
|
|
|
|
26
|
|
|
Total
|
|
|
|
1,543
|
|
|
|
1,565
|
|
|
|
|
|
1,531
|
|
|
|
1,590
|
|
|
BOE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian Basin Area:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delaware Basin
|
|
|
|
4,044
|
|
|
|
3,830
|
|
|
|
|
|
4,484
|
|
|
|
4,315
|
|
|
Other
|
|
|
|
5,164
|
|
|
|
5,141
|
|
|
|
|
|
5,044
|
|
|
|
5,277
|
|
|
Austin Chalk (c)
|
|
|
|
2,270
|
|
|
|
2,385
|
|
|
|
|
|
2,343
|
|
|
|
2,556
|
|
|
Eagle Ford Shale (c)
|
|
|
|
2,830
|
|
|
|
2,891
|
|
|
|
|
|
3,485
|
|
|
|
2,257
|
|
|
Other
|
|
|
|
1,268
|
|
|
|
1,339
|
|
|
|
|
|
1,095
|
|
|
|
1,136
|
|
|
Total
|
|
|
|
15,576
|
|
|
|
15,586
|
|
|
|
|
|
16,451
|
|
|
|
15,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and Gas Costs ($/BOE Produced):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production costs
|
|
|
$
|
14.42
|
|
|
$
|
18.08
|
|
|
|
|
$
|
14.96
|
|
|
$
|
18.15
|
|
|
Production costs (excluding production taxes)
|
|
|
$
|
12.68
|
|
|
$
|
14.19
|
|
|
|
|
$
|
12.99
|
|
|
$
|
14.16
|
|
|
Oil and gas depletion
|
|
|
$
|
23.26
|
|
|
$
|
23.78
|
|
|
|
|
$
|
24.60
|
|
|
$
|
24.31
|
|
|
______
|
|
(a)
|
|
Oil and gas sales includes $0.8 million for the three months ended
September 30, 2015, $1.9 million for the three months ended
September 30, 2014, $4.3 million for the nine months ended September
30, 2015 and $5.9 million for the nine months ended September 30,
2014 of amortized deferred revenue attributable to a volumetric
production payment (“VPP”) transaction effective March 1, 2012. In
August 2015, the Company terminated the VPP covering 277 MBOE of oil
and gas production from August 2015 through December 2019 for $13.7
million. The calculation of average realized sales prices excludes
production of 7,371 barrels of oil and 4,898 Mcf of gas for the
three months ended September 30, 2015, 25,122 barrels of oil and
10,987 Mcf of gas for the three months ended September 30, 2014,
53,026 barrels of oil and 35,735 Mcf of gas for the nine months
ended September 30, 2015 and 77,543 barrels of oil and 33,608 Mcf of
gas for the nine months ended September 30, 2014 associated with the
VPP.
|
|
|
|
(b)
|
|
Hedging gains/losses are only included in the determination of the
Company's average realized prices if the underlying derivative
contracts are designated as cash flow hedges under applicable
accounting standards. The Company did not designate any of its 2015
or 2014 derivative contracts as cash flow hedges. This means that
the Company's derivatives for 2015 and 2014 have been
marked-to-market through its statement of operations as other
income/expense instead of through accumulated other comprehensive
income on the Company's balance sheet. This also means that all
realized gains/losses on these derivatives are reported in other
income/expense instead of as a component of oil and gas sales.
|
|
|
|
(c)
|
|
Following is a recap of the average daily production related to
interests in producing properties sold by the Company effective
March 2014.
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
Average Daily Production:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Austin Chalk/Eagle Ford:
|
|
|
|
|
|
|
|
Oil (Bbls)
|
|
|
—
|
|
|
125
|
|
Natural gas (Mcf)
|
|
|
—
|
|
|
15
|
|
NGL (Bbls)
|
|
|
—
|
|
|
4
|
|
Total (BOE)
|
|
|
—
|
|
|
132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLAYTON WILLIAMS ENERGY, INC.
|
|
SUMMARY OF OPEN COMMODITY DERIVATIVES
|
|
(Unaudited)
|
|
|
The following summarizes information concerning the Company’s net
positions in open commodity derivatives applicable to periods subsequent
to September 30, 2015. The settlement prices of commodity derivatives
are based on NYMEX futures prices.
Swaps:
|
|
|
|
Oil
|
|
|
|
|
MBbls
|
|
|
Price
|
|
Production Period:
|
|
|
|
|
|
|
|
4th Quarter 2015
|
|
|
592
|
|
|
$
|
55.65
|
|
|
|
|
592
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151104006933/en/ Copyright Business Wire 2015
Source: Business Wire
(November 4, 2015 - 5:22 PM EST)
News by QuoteMedia
www.quotemedia.com
|
