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Jones Energy, Inc. Announces 2015 Fourth Quarter and Full Year Financial and Operating Results
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, 2015.
Highlights
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Production for the full year 2015 of 9.2 MMBoe (25.1 MBoe/d), up 8%
from 2014
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EBITDAX for the full year 2015 of $268.4 million
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Adjusted net income for the fourth quarter 2015 of $0.6 million, or
$0.03 per share
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Repurchased $171 million in face value of senior notes for $74 million
(43% of par), resulting in a $97 million decline in total debt
outstanding and $12.5 million in expected annual interest expense
savings
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Mark-to-market hedge value of $261 million incorporating strip pricing
as of February 29, 2016
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Initial capital budget of $25 million, primarily for workovers
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Proved reserves at year-end 2015 were 101.7 MMBoe based on SEC pricing1;
Cleveland proved reserves were 80.6 MMBoe
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Leased over 10,000 net acres in the Cleveland in 2015 for
approximately $3 million
Jonny Jones, the Company’s Founder, Chairman and CEO, commented, “2015
was a tough year for the oil and gas industry, but I am extremely proud
of what our team was able to accomplish. We had one of our best years
ever from an operating perspective. We were able to grow production
while cutting spending significantly and becoming more efficient with
every dollar spent.” Mr. Jones went on to say, “2016 will be a defining
year for the oil and gas industry. It is sure to bring many challenges,
but also opportunities. Our team is focused on taking advantage of those
opportunities, and we will be creative, yet deliberate in our approach.
I am confident in our ability to create value for our stakeholders and
firmly believe that Jones Energy’s future is bright.”
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SEC prices for 2015 year-end proved reserves were $50.25 per barrel
for oil and $2.59 per MMBtu for natural gas based on the average of
such prices for 2015.
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Financial Results
Total operating revenues for the three months ended December 31, 2015
were $38.2 million as compared to $75.6 million for the three months
ended December 31, 2014. For the full year 2015, operating revenues were
$197.4 million as compared to $380.6 million for the full year 2014,
reflecting lower prices for all commodities partially offset by
increased production volumes. Total revenues including current period
settlements of matured derivative contracts were $347.2 million for the
full year 2015 as compared to $385.1 million for the full year 2014.
Total operating expenses for the three months ended December 31, 2015
were $66.9 million as compared to $63.4 million for the three months
ended December 31, 2014. For the full year 2015, operating expenses were
$303.9 million as compared to $272.0 million for the full year 2014,
with higher well count and increased production volumes driving the
year-over-year increase.
For the quarter ended December 31, 2015, the Company reported adjusted
net income of $0.6 million as compared to adjusted net income of $15.7
million for the three months ended December 31, 2014. Adjusted net
income for the full year 2015 was $2.2 million as compared to $68.8
million for the full year 2014, with significantly lower commodity
prices offsetting higher production volumes.
Operational Results
Cleveland
For the full year 2015, the Company spud 51 wells, completed 70 wells
and brought on first production from 77 wells, all in the Cleveland. The
Company has not spud any wells thus far in 2016.
Daily net production in the Cleveland was 17.7 MBoe/d in the fourth
quarter of 2015 as compared to 17.2 MBoe/d in the fourth quarter of
2014. Full year 2015 production in the Cleveland was 18.4 MBoe/d for
2015, an 8% increase from 2014 full year production of 17.0 MBoe/d.
Capital Expenditures
During the fourth quarter of 2015, the Company spent $14.1 million on
capital expenditures, of which $8.0 million was related to drilling and
completing operated wells, representing 57% of the total capital
expenditures in the quarter. The remaining $6.1 million was primarily
related to field maintenance and leasing.
For the full year 2015, the Company spent $200.1 million on capital
expenditures, of which $173.2 million was related to drilling and
completing operated wells, representing 87% of the total capital
expenditures in the year. This compares to revised 2015 capital
expenditure guidance of $210 million.
2016 Capital Budget and Operating Plan
The Company has established an initial capital budget of $25 million for
2016, with the majority dedicated to capital workovers and field
optimization activities. The Company will continue to monitor market
conditions and may determine at a later date to spend additional capital
which may include redeploying rigs to resume drilling activities or
leasing. At present, the Company continues to negotiate with vendors
regarding service costs and does not plan on resuming its drilling
program until well costs create acceptable rates of return at strip
prices.
2016 Guidance
We are reiterating our 2016 guidance for the first quarter and full year
and project 2016 average daily production of 15,500 to 17,000 Boe per
day. A table has been provided below with full year and first quarter
2016 guidance by category. The Company’s average production for the
fourth quarter of 2016 is expected to be between 13.0 MBoe/d and 14.4
MBoe/d, which is approximately 40% below the average production rate of
23.6 MBoe/d for the fourth quarter of 2015. All guidance figures are
reflective of the initial 2016 capital expenditure budget and current
activity levels and do not account for any potential changes based upon
evolving market conditions.
A table has been provided below with full year and first quarter 2016
guidance by category:
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2016 Guidance
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2016E
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1Q16E
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Total Production (MMBoe)
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5.6 – 6.2
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1.75 – 1.85
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Average Daily Production (MBoe/d)
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15.5 – 17.0
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19.3 – 20.3
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Crude Oil (MBbl/d)
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3.6 – 3.9
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4.6 – 4.9
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Natural Gas (MMcf/d)
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41.7 – 45.9
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51.7 – 54.1
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NGLs (MBbl/d)
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4.9 – 5.4
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6.1 – 6.4
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Lease Operating Expense ($mm)
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$35.0 – $38.0
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Production Taxes (% of Unhedged Revenue)*
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4.5% – 5.5%
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Ad Valorem Taxes ($mm)*
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$1.5 – $1.7
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Cash G&A Expense ($mm)
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$18.0 – $20.0
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Total Capital Expenditures ($mm)
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$25.0
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*
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Production and ad valorem taxes are included as one line item on the
Company’s Consolidated Statements of Operations.
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Liquidity and Hedging
As of December 31, 2015, the Company had $400 million undrawn on its
revolving credit facility (with $110 million in outstanding borrowings)
and approximately $22 million in cash.
In January and February 2016, through several open market and privately
negotiated purchases, the Company purchased an aggregate principal
amount of $170.5 million of its senior unsecured notes. As of February
29, 2016, the Company had purchased $70.5 million principal amount of
its 6.75% senior unsecured notes due 2022 for $27.1 million, and $100
million principal amount of its 9.25% senior unsecured notes due 2023
for $46.5 million, in each case excluding accrued interest and including
any associated fees. The Company used cash on hand and borrowings from
its revolver to fund the note purchases. As a result of these purchases,
as of February 29, 2016, the Company had aggregate principal amount of
senior unsecured notes outstanding of $579.5 million, outstanding
borrowings under its revolving credit facility of $185 million, $325
million undrawn on its revolving credit facility, and $46 million in
cash.
As a result of the Company’s reduced drilling activity and its
expectation of recognizing a gain associated with the debt repurchases,
the Company is likely to generate taxable income in 2016.
The estimated mark-to-market value of the Company’s commodity price
hedges in 2016 and beyond was $261 million incorporating strip pricing
as of February 29, 2016. In recent months, the Company has 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:
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Fiscal Year Ending December 31,
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2016
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2017
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2018
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1H19
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Oil, Natural Gas and NGL Swaps
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Oil (MBbl)
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1,419
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1,004
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803
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339
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Natural Gas (MMcf)
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16,470
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12,300
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10,240
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4,410
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Ethane (MBbl)
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53
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-
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-
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-
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Propane (MBbl)
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627
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-
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-
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-
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Iso Butane (MBbl)
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76
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7
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-
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-
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Butane (MBbl)
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218
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17
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-
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-
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Natural Gasoline (MBbl)
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227
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18
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-
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-
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Total NGLs (MBbl)
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1,201
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42
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-
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-
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Weighted Average Prices
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Oil ($ / Bbl)
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$
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99.87
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$
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80.01
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$
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77.47
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$
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64.65
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Natural Gas ($ / Mcf)
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$
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4.49
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$
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4.29
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$
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4.19
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$
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3.53
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Ethane ($ / Gal)
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$
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0.21
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-
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-
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-
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Propane ($ / Gal)
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$
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0.55
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-
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-
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-
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Iso Butane ($ / Gal)
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$
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0.75
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$
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1.42
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-
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-
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Butane ($ / Gal)
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$
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0.72
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$
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1.37
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-
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-
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Natural Gasoline ($ / Gal)
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$
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1.46
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$
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1.73
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-
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-
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Conference Call Details
Jones Energy will host a conference call for investors and analysts to
discuss its results on Tuesday, March 8, 2015 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 31543671. 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 redeployment of rigs (if any), the
initial 2016 capital budget and operating plan, the incurrence of
taxable income, the ability to take advantage of opportunities in the
oil and gas industry, the ability to attain additional cost savings from
the Company’s service providers, and projections regarding total
production, average daily production, the potential to repurchase
additional senior unsecured notes in the future, lease operating
expenses, production taxes as a percentage of revenue, cash G&A expenses
and capital expenditure levels for 2016. 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, 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.
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Jones Energy, Inc.
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Consolidated Statement of Operations
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Three Months Ended December 31,
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Twelve Months Ended December 31,
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(in thousands of dollars except per share data)
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2015
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2014
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2015
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2014
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Operating revenues
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Oil and gas sales
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$
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37,600
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$
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75,031
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$
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194,555
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$
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378,401
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Other revenues
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634
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586
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2,844
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2,196
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Total operating revenues
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38,234
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75,617
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197,399
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380,597
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Operating costs and expenses
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Lease operating
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8,097
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7,454
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41,027
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37,760
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Production taxes
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2,838
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4,308
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12,130
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22,556
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Exploration
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367
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175
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6,551
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3,453
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Depletion, depreciation and amortization
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49,347
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44,179
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205,498
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181,669
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Accretion of ARO liability
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477
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197
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1,087
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770
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General and administrative
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5,816
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7,040
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33,388
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25,763
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Other operating
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-
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-
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4,188
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-
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Total operating expenses
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66,942
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63,353
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303,869
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271,971
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Operating income (loss)
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(28,708
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)
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12,264
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(106,470
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)
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108,626
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Other income (expense)
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|
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Interest expense
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(16,102
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)
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(10,981
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)
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(61,289
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)
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(38,805
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)
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Net gain (loss) on commodity derivatives
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47,039
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199,426
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158,753
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189,641
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Other income (expense)
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1,145
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(886
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)
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(2,852
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)
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(7,624
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)
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Other income (expense), net
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32,082
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187,559
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94,612
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143,212
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Income (loss) before income tax
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3,374
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199,823
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(11,858
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)
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251,838
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Income tax provision (benefit)
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1,809
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20,482
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(2,781
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)
|
|
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26,218
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Net income (loss)
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1,565
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|
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179,341
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(9,077
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)
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|
225,620
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Net income (loss) attributable to non-controlling interests
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|
929
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146,649
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(6,696
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)
|
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|
184,484
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Net income (loss) attributable to controlling interests
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$
|
636
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$
|
32,692
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$
|
(2,381
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)
|
|
$
|
41,136
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|
|
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|
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Earnings (loss) per share:
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Basic
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$
|
0.02
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$
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2.60
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$
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(0.09
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)
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$
|
3.28
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Diluted
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$
|
0.02
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$
|
2.60
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$
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(0.09
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$
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3.28
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Weighted average shares outstanding:
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Basic
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30,452
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|
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12,526
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26,816
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|
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12,526
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Diluted
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30,452
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|
|
12,535
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|
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26,816
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|
|
12,535
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|
|
|
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Jones Energy, Inc.
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Consolidated Balance Sheet
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December 31,
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December 31,
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(in thousands of dollars)
|
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|
2015
|
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|
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2014
|
|
|
|
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Assets
|
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|
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|
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Current assets
|
|
|
|
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|
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Cash
|
|
|
|
|
$
|
21,893
|
|
|
$
|
13,566
|
|
|
|
Restricted cash
|
|
|
330
|
|
|
|
149
|
|
|
|
Accounts receivable, net
|
|
|
|
|
|
|
|
Oil and gas sales
|
|
|
19,292
|
|
|
|
51,482
|
|
|
|
|
Joint interest owners
|
|
|
11,314
|
|
|
|
41,761
|
|
|
|
|
Other
|
|
|
|
15,170
|
|
|
|
12,512
|
|
|
|
Commodity derivative assets
|
|
|
124,207
|
|
|
|
121,519
|
|
|
|
Other current assets
|
|
|
2,298
|
|
|
|
3,374
|
|
|
|
|
|
|
|
Total current assets
|
|
|
194,504
|
|
|
|
244,363
|
|
|
Oil and gas properties, net, at cost
|
|
|
|
|
|
under the successful efforts method
|
|
|
1,635,766
|
|
|
|
1,638,860
|
|
|
Other property, plant and equipment, net
|
|
|
3,873
|
|
|
|
4,048
|
|
|
Commodity derivative assets
|
|
|
93,302
|
|
|
|
87,055
|
|
|
Other assets
|
|
|
17,967
|
|
|
|
20,352
|
|
|
Deferred tax assets
|
|
|
-
|
|
|
|
171
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,945,412
|
|
|
$
|
1,994,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Trade accounts payable
|
|
$
|
7,467
|
|
|
$
|
136,337
|
|
|
|
Oil and gas sales payable
|
|
|
32,408
|
|
|
|
70,469
|
|
|
|
Accrued liabilities
|
|
|
27,341
|
|
|
|
19,401
|
|
|
|
Commodity derivative liabilities
|
|
|
11
|
|
|
|
-
|
|
|
|
Asset retirement obligations
|
|
|
679
|
|
|
|
3,074
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
67,906
|
|
|
|
229,281
|
|
|
Long-term debt
|
|
|
847,912
|
|
|
|
860,000
|
|
|
Deferred revenue
|
|
|
11,417
|
|
|
|
13,377
|
|
|
Commodity derivative liabilities
|
|
|
-
|
|
|
|
28
|
|
|
Asset retirement obligations
|
|
|
20,301
|
|
|
|
10,536
|
|
|
Liability under tax receivable agreement
|
|
|
38,052
|
|
|
|
803
|
|
|
Deferred tax liabilities
|
|
|
22,972
|
|
|
|
27,474
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
1,008,560
|
|
|
|
1,141,499
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
|
Class A common stock, $0.001 par value; 30,573,509 shares issued and
30,550,907 shares outstanding at December 31, 2015 and 12,672,260
shares issued and 12,649,658 shares outstanding at December 31, 2014
|
|
|
31
|
|
|
|
13
|
|
|
|
Class B common stock, $0.001 par value; 31,273,130 shares issued and
outstanding at December 31, 2015 and 36,719,499 shares issued and
outstanding at December 31, 2014
|
|
|
31
|
|
|
|
37
|
|
|
|
Treasury stock, at cost: 22,602 shares at December 31, 2015 and
December 31, 2014
|
|
|
(358
|
)
|
|
|
(358
|
)
|
|
|
Additional paid-in-capital
|
|
|
363,723
|
|
|
|
178,763
|
|
|
|
Retained earnings (deficit)
|
|
|
36,569
|
|
|
|
38,950
|
|
|
Stockholders' equity
|
|
|
399,996
|
|
|
|
217,405
|
|
|
Non-controlling interest
|
|
|
536,856
|
|
|
|
635,945
|
|
|
Total stockholders' equity
|
|
|
936,852
|
|
|
|
853,350
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
1,945,412
|
|
|
$
|
1,994,849
|
|
|
|
|
|
|
|
|
|
|
|
|
Jones Energy, Inc.
|
|
Consolidated Statement of Cash Flow Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31,
|
|
(in thousands of dollars)
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
Net income (loss)
|
|
$
|
(9,077
|
)
|
|
$
|
225,620
|
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities
|
|
|
|
|
|
|
Depletion, depreciation, and amortization
|
|
|
205,498
|
|
|
|
181,669
|
|
|
|
Exploration expense
|
|
|
5,250
|
|
|
|
2,952
|
|
|
|
Accretion of ARO liability
|
|
|
1,087
|
|
|
|
770
|
|
|
|
Amortization of debt issuance costs
|
|
|
6,043
|
|
|
|
6,878
|
|
|
|
Stock compensation expense
|
|
|
7,562
|
|
|
|
4,040
|
|
|
|
Other non-cash compensation expense
|
|
|
455
|
|
|
|
758
|
|
|
|
Amortization of deferred revenue
|
|
|
(1,960
|
)
|
|
|
(1,154
|
)
|
|
|
(Gain) loss on commodity derivatives
|
|
|
(158,753
|
)
|
|
|
(189,641
|
)
|
|
|
(Gain) loss on sales of assets
|
|
|
3
|
|
|
|
(297
|
)
|
|
|
Deferred income tax provision
|
|
|
(2,892
|
)
|
|
|
26,165
|
|
|
|
Other - net
|
|
|
(961
|
)
|
|
|
376
|
|
|
|
Changes in assets and liabilities
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
64,510
|
|
|
|
(2,453
|
)
|
|
|
|
Other assets
|
|
|
(251
|
)
|
|
|
(565
|
)
|
|
|
|
Accrued interest expense
|
|
|
7,050
|
|
|
|
7,823
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
(54,534
|
)
|
|
|
2,482
|
|
|
|
|
|
|
|
Net cash provided by operations
|
|
|
69,030
|
|
|
|
265,423
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
Additions to oil and gas properties
|
|
|
(311,305
|
)
|
|
|
(474,619
|
)
|
|
Net adjustments to purchase price of properties acquired
|
|
|
-
|
|
|
|
15,709
|
|
|
Proceeds from sales of assets
|
|
|
41
|
|
|
|
448
|
|
|
Acquisition of other property, plant and equipment
|
|
|
(1,101
|
)
|
|
|
(1,683
|
)
|
|
Current period settlements of matured derivative contracts
|
|
|
144,145
|
|
|
|
(3,654
|
)
|
|
Change in restricted cash
|
|
|
(181
|
)
|
|
|
(104
|
)
|
|
|
|
|
|
|
Net cash used in investing
|
|
|
(168,401
|
)
|
|
|
(463,903
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
|
85,000
|
|
|
|
170,000
|
|
|
Repayment under long-term debt
|
|
|
(335,000
|
)
|
|
|
(468,000
|
)
|
|
Proceeds from senior notes
|
|
|
236,475
|
|
|
|
500,000
|
|
|
Payment of debt issuance costs
|
|
|
(1,556
|
)
|
|
|
(13,416
|
)
|
|
Proceeds from sale of common stock
|
|
|
122,779
|
|
|
|
-
|
|
|
Purchases of treasury stock
|
|
|
-
|
|
|
|
(358
|
)
|
|
|
|
|
|
|
Net cash provided by financing
|
|
|
107,698
|
|
|
|
188,226
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
|
|
|
8,327
|
|
|
|
(10,254
|
)
|
|
Cash
|
|
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
13,566
|
|
|
|
23,820
|
|
|
End of period
|
|
$
|
21,893
|
|
|
$
|
13,566
|
|
|
Supplemental disclosure of cash flow information
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
52,796
|
|
|
$
|
29,560
|
|
|
Cash paid for income taxes
|
|
|
(155
|
)
|
|
|
155
|
|
|
Change in accrued additions to oil and gas properties
|
|
|
(111,210
|
)
|
|
|
49,025
|
|
|
Current additions to ARO
|
|
|
6,349
|
|
|
|
1,995
|
|
|
|
|
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,
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Change
|
|
|
2015
|
|
|
2014
|
|
Change
|
|
Revenues (in thousands of dollars):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and gas sales
|
|
$
|
37,600
|
|
$
|
75,031
|
|
$
|
(37,431
|
)
|
|
$
|
194,555
|
|
$
|
378,401
|
|
$
|
(183,846
|
)
|
|
|
|
Other revenues
|
|
|
634
|
|
|
586
|
|
|
48
|
|
|
|
2,844
|
|
|
2,196
|
|
|
648
|
|
|
|
|
Current period settlements of matured derivative contracts
|
|
|
41,809
|
|
|
17,086
|
|
|
24,723
|
|
|
|
149,801
|
|
|
4,476
|
|
|
145,325
|
|
|
|
|
|
Total revenues including derivative impact
|
|
|
80,043
|
|
|
92,703
|
|
|
(12,660
|
)
|
|
|
347,200
|
|
|
385,073
|
|
|
(37,873
|
)
|
|
Net production volumes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbls)
|
|
|
552
|
|
|
606
|
|
|
(54
|
)
|
|
|
2,583
|
|
|
2,475
|
|
|
108
|
|
|
|
|
Natural gas (MMcf)
|
|
|
5,667
|
|
|
5,551
|
|
|
116
|
|
|
|
23,839
|
|
|
21,922
|
|
|
1,917
|
|
|
|
|
NGLs (MBbls)
|
|
|
672
|
|
|
612
|
|
|
60
|
|
|
|
2,618
|
|
|
2,345
|
|
|
273
|
|
|
|
|
|
Total (MBoe)
|
|
|
2,169
|
|
|
2,143
|
|
|
25
|
|
|
|
9,174
|
|
|
8,474
|
|
|
701
|
|
|
|
|
|
Average net (Boe/d)
|
|
|
23,576
|
|
|
23,293
|
|
|
283
|
|
|
|
25,134
|
|
|
23,216
|
|
|
1,918
|
|
|
Average sales price, unhedged:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (per Bbl), unhedged
|
|
$
|
37.03
|
|
$
|
67.80
|
|
$
|
(30.77
|
)
|
|
$
|
44.15
|
|
$
|
88.93
|
|
$
|
(44.78
|
)
|
|
|
|
Natural gas (per Mcf), unhedged
|
|
|
1.52
|
|
|
3.41
|
|
|
(1.89
|
)
|
|
|
1.91
|
|
|
3.78
|
|
|
(1.87
|
)
|
|
|
|
NGLs (per Bbl), unhedged
|
|
|
12.69
|
|
|
24.53
|
|
|
(11.84
|
)
|
|
|
13.36
|
|
|
32.14
|
|
|
(18.78
|
)
|
|
|
|
|
Combined (per Boe), unhedged
|
|
|
17.34
|
|
|
35.01
|
|
|
(17.67
|
)
|
|
|
21.21
|
|
|
44.65
|
|
|
(23.44
|
)
|
|
Average sales price, hedged:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (per Bbl), hedged
|
|
$
|
80.73
|
|
$
|
83.53
|
|
$
|
(2.80
|
)
|
|
$
|
76.35
|
|
$
|
88.16
|
|
$
|
(11.81
|
)
|
|
|
|
Natural gas (per Mcf), hedged
|
|
|
3.26
|
|
|
3.92
|
|
|
(0.66
|
)
|
|
|
3.35
|
|
|
4.02
|
|
|
(0.67
|
)
|
|
|
|
NGLs (per Bbl), hedged
|
|
|
24.35
|
|
|
32.23
|
|
|
(7.88
|
)
|
|
|
25.73
|
|
|
32.60
|
|
|
(6.87
|
)
|
|
|
|
|
Combined (per Boe), hedged
|
|
|
36.61
|
|
|
42.97
|
|
|
(6.36
|
)
|
|
|
37.54
|
|
|
45.18
|
|
|
(7.64
|
)
|
|
Average costs (per Boe):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating
|
|
$
|
3.73
|
|
$
|
3.48
|
|
$
|
0.25
|
|
|
$
|
4.47
|
|
$
|
4.46
|
|
$
|
0.01
|
|
|
|
|
Production and ad valorem taxes
|
|
|
1.31
|
|
|
2.01
|
|
|
(0.70
|
)
|
|
|
1.32
|
|
|
2.66
|
|
|
(1.34
|
)
|
|
|
|
Depletion, depreciation and amortization
|
|
|
22.75
|
|
|
20.62
|
|
|
2.13
|
|
|
|
22.40
|
|
|
21.44
|
|
|
0.96
|
|
|
|
|
General and administrative
|
|
|
2.68
|
|
|
3.29
|
|
|
(0.61
|
)
|
|
|
3.64
|
|
|
3.04
|
|
|
0.60
|
|
|
|
|
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 our consolidated financial statements,
such as industry analysts, investors, lenders and rating agencies.
We define 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 our operating
performance and compare the results of our operations from period to
period and against our peers without regard to our financing methods or
capital structure. We exclude the items listed above from net income in
arriving at EBITDAX because these amounts can vary substantially from
company to company within our 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 our 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. Our
presentation of EBITDAX should not be construed as an inference that our
results will be unaffected by unusual or non-recurring items and should
not be viewed as a substitute for GAAP. Our 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)
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDAX to net income
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
1,565
|
|
|
$
|
179,341
|
|
|
$
|
(9,077
|
)
|
|
$
|
225,620
|
|
|
|
Interest expense
|
|
|
16,102
|
|
|
|
10,981
|
|
|
|
61,289
|
|
|
|
38,805
|
|
|
|
Exploration expense
|
|
|
367
|
|
|
|
175
|
|
|
|
6,551
|
|
|
|
3,453
|
|
|
|
Income taxes
|
|
|
1,809
|
|
|
|
20,482
|
|
|
|
(2,781
|
)
|
|
|
26,218
|
|
|
|
Amortization of deferred financing costs
|
|
|
803
|
|
|
|
740
|
|
|
|
3,169
|
|
|
|
3,070
|
|
|
|
Depreciation and depletion
|
|
|
49,347
|
|
|
|
44,179
|
|
|
|
205,498
|
|
|
|
181,669
|
|
|
|
Accretion of ARO liability
|
|
|
477
|
|
|
|
197
|
|
|
|
1,087
|
|
|
|
770
|
|
|
|
Reduction of TRA liability
|
|
|
(1,984
|
)
|
|
|
-
|
|
|
|
(1,984
|
)
|
|
|
-
|
|
|
|
Other non-cash charges
|
|
|
(155
|
)
|
|
|
135
|
|
|
|
1,023
|
|
|
|
376
|
|
|
|
Stock compensation expense
|
|
|
2,275
|
|
|
|
1,333
|
|
|
|
7,562
|
|
|
|
4,040
|
|
|
|
Other compensation expense
|
|
|
129
|
|
|
|
378
|
|
|
|
455
|
|
|
|
758
|
|
|
|
Net (gain) loss on derivative contracts
|
|
|
(47,039
|
)
|
|
|
(199,426
|
)
|
|
|
(158,753
|
)
|
|
|
(189,641
|
)
|
|
|
Current period settlements of matured derivative contracts
|
|
|
41,809
|
|
|
|
17,086
|
|
|
|
149,801
|
|
|
|
4,476
|
|
|
|
Amortization of deferred revenue
|
|
|
(439
|
)
|
|
|
(292
|
)
|
|
|
(1,960
|
)
|
|
|
(1,154
|
)
|
|
|
(Gain) loss on sale of assets
|
|
|
13
|
|
|
|
(200
|
)
|
|
|
3
|
|
|
|
(297
|
)
|
|
|
Stand-by rig costs
|
|
|
-
|
|
|
|
-
|
|
|
|
4,188
|
|
|
|
-
|
|
|
|
Financing expenses and other loan fees
|
|
|
23
|
|
|
|
346
|
|
|
|
2,346
|
|
|
|
4,851
|
|
|
|
EBITDAX
|
|
$
|
65,102
|
|
|
$
|
75,455
|
|
|
$
|
268,417
|
|
|
$
|
303,014
|
|
|
|
|
Jones Energy, Inc.
|
|
Non-GAAP Financial Measures and Reconciliations
|
|
|
Adjusted Net Income is a supplemental non-GAAP financial measure that is
used by management and external users of the Company’s consolidated
financial statements. We define Adjusted Net Income as net income
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. We believe adjusted net income and adjusted earnings
per share are useful to investors because they provide readers with a
more meaningful measure of our 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 our 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 of dollars except per share data)
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
1,565
|
|
|
$
|
179,341
|
|
|
$
|
(9,077
|
)
|
|
$
|
225,620
|
|
|
|
Net (gain) loss on derivative contracts
|
|
|
(47,039
|
)
|
|
|
(199,426
|
)
|
|
|
(158,753
|
)
|
|
|
(189,641
|
)
|
|
|
Current period settlements of matured derivative contracts
|
|
|
41,809
|
|
|
|
17,086
|
|
|
|
149,801
|
|
|
|
4,476
|
|
|
|
Exploration
|
|
|
367
|
|
|
|
175
|
|
|
|
6,551
|
|
|
|
3,453
|
|
|
|
Non-cash stock compensation expense
|
|
|
2,275
|
|
|
|
1,333
|
|
|
|
7,562
|
|
|
|
4,040
|
|
|
|
Other non-cash compensation expense
|
|
|
129
|
|
|
|
378
|
|
|
|
455
|
|
|
|
758
|
|
|
|
Stand-by rig costs
|
|
|
-
|
|
|
|
-
|
|
|
|
4,188
|
|
|
|
-
|
|
|
|
Financing expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
2,250
|
|
|
|
3,761
|
|
|
|
Reduction of TRA liability
|
|
|
(1,984
|
)
|
|
|
-
|
|
|
|
(1,984
|
)
|
|
|
-
|
|
|
|
Tax impact of adjusting items (1)
|
|
|
1,127
|
|
|
|
16,801
|
|
|
|
(1,106
|
)
|
|
|
16,357
|
|
|
|
Change in valuation allowance
|
|
|
2,333
|
|
|
|
-
|
|
|
|
2,333
|
|
|
|
-
|
|
|
Adjusted net income (loss)
|
|
|
582
|
|
|
|
15,688
|
|
|
|
2,220
|
|
|
|
68,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss) attributable to non-controlling interests
|
|
|
(291
|
)
|
|
|
12,991
|
|
|
|
1,275
|
|
|
|
56,208
|
|
|
Adjusted net income (loss) attributable to controlling interests
|
|
$
|
873
|
|
|
$
|
2,697
|
|
|
$
|
945
|
|
|
$
|
12,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate on net income attributable to controlling
interests
|
|
|
|
|
|
|
38.9
|
%
|
|
|
35.7
|
%
|
|
|
|
|
|
(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. We define 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. We believe adjusted earnings per share is
useful to investors because it provides readers with a more meaningful
measure of our 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 our
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,
|
|
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share (basic and diluted)
|
|
$
|
0.02
|
|
|
$
|
2.60
|
|
|
$
|
(0.09
|
)
|
|
$
|
3.28
|
|
|
|
Net (gain) loss on derivative contracts
|
|
|
(0.77
|
)
|
|
|
(4.02
|
)
|
|
|
(2.68
|
)
|
|
|
(3.85
|
)
|
|
|
Current period settlements of matured
|
|
|
|
|
|
|
|
|
|
|
|
derivative contracts
|
|
|
0.68
|
|
|
|
0.34
|
|
|
|
2.48
|
|
|
|
0.09
|
|
|
|
Exploration
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.12
|
|
|
|
0.07
|
|
|
|
Non-cash stock compensation expense
|
|
|
0.04
|
|
|
|
0.03
|
|
|
|
0.13
|
|
|
|
0.08
|
|
|
|
Other non-cash compensation expense
|
|
|
-
|
|
|
|
0.01
|
|
|
|
0.01
|
|
|
|
0.02
|
|
|
|
Stand-by rig costs
|
|
|
-
|
|
|
|
-
|
|
|
|
0.06
|
|
|
|
-
|
|
|
|
Financing expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
0.03
|
|
|
|
0.08
|
|
|
|
Reduction of TRA liability
|
|
|
(0.07
|
)
|
|
|
-
|
|
|
|
(0.07
|
)
|
|
|
-
|
|
|
|
Tax impact of adjusting items (1)
|
|
|
0.04
|
|
|
|
1.25
|
|
|
|
(0.04
|
)
|
|
|
1.24
|
|
|
|
Change in valuation allowance
|
|
|
0.08
|
|
|
|
-
|
|
|
|
0.09
|
|
|
|
-
|
|
|
Adjusted earnings (loss) per share (basic and diluted)
|
|
$
|
0.03
|
|
|
$
|
0.21
|
|
|
$
|
0.04
|
|
|
$
|
1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares (Basic)
|
|
|
30,452
|
|
|
|
12,598
|
|
|
|
26,816
|
|
|
|
12,526
|
|
|
Shares (Diluted)
|
|
|
30,452
|
|
|
|
12,598
|
|
|
|
26,816
|
|
|
|
12,535
|
|
|
|
|
|
|
(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.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160307006254/en/ Copyright Business Wire 2016
Source: Business Wire
(March 7, 2016 - 4:16 PM EST)
News by QuoteMedia
www.quotemedia.com
|
