Denbury Resources Inc. (NYSE:DNR) (“Denbury” or the “Company”)
today announced a net loss of $25 million, or $0.06 per diluted
share, for the third quarter of 2016. Excluding special
items, the Company reported adjusted net income(1) (a non-GAAP
measure) for the quarter of $1 million, or $0.00(1)(2) per diluted
share. Adjusted net income(1) for the third quarter of 2016
differs from the quarter’s GAAP net loss due to the exclusion of
(1) a $76 million ($48 million after tax) full cost pool ceiling
test write-down, (2) a $29 million ($18 million after tax) gain due
to noncash fair value adjustments on commodity derivatives(1) (a
non-GAAP measure) and (3) an $8 million ($5 million after tax) gain
on debt extinguishment, with the GAAP and non-GAAP measures
reconciled in tables beginning on page 7.
Sequential and year-over-year comparisons of
selected quarterly financial items are shown in the following
table:
| |
|
Quarter Ended |
| ($ in
millions, except per-share and unit data) |
|
Sept. 30, 2016 |
|
June 30, 2016 |
|
Sept. 30, 2015 |
| Net loss |
|
$ |
(25 |
) |
|
$ |
(381 |
) |
|
$ |
(2,244 |
) |
| Adjusted net income(1)
(non-GAAP measure) |
|
1 |
|
|
29 |
|
|
63 |
|
| Net loss per diluted
share |
|
(0.06 |
) |
|
(1.03 |
) |
|
(6.41 |
) |
| Adjusted net income per
diluted share(1)(2) (non-GAAP measure) |
|
0.00 |
|
|
0.08 |
|
|
0.18 |
|
| Cash flows from
operations |
|
96 |
|
|
61 |
|
|
273 |
|
| Adjusted cash flows
from operations(1)(3) (non-GAAP measure) |
|
62 |
|
|
93 |
|
|
243 |
|
| |
|
|
|
|
|
|
| Revenues |
|
$ |
246 |
|
|
$ |
253 |
|
|
$ |
300 |
|
| Receipt (payment) on
settlements of commodity derivatives |
|
(7 |
) |
|
52 |
|
|
161 |
|
| Total |
|
$ |
239 |
|
|
$ |
305 |
|
|
$ |
461 |
|
| |
|
|
|
|
|
|
| Average realized oil
price per barrel (excluding derivative settlements) |
|
$ |
43.45 |
|
|
$ |
43.38 |
|
|
$ |
45.74 |
|
| Average realized oil
price per barrel (including derivative settlements) |
|
42.12 |
|
|
52.61 |
|
|
71.32 |
|
| Lease operating
expenses per BOE(4) |
|
18.82 |
|
|
17.04 |
|
|
17.34 |
|
| |
|
|
|
|
|
|
| Total production
(BOE/d) |
|
61,533 |
|
|
64,506 |
|
|
71,410 |
|
| Total continuing
production (BOE/d)(5) |
|
60,714 |
|
|
62,976 |
|
|
69,453 |
|
| |
|
|
|
|
|
|
|
|
|
(1) A non-GAAP measure. See accompanying
schedules that reconcile GAAP to non-GAAP measures along with a
statement indicating why the Company believes the non-GAAP measures
provide useful information for investors.(2)
Calculated using average diluted shares outstanding of 390.2
million, 372.4 million, and 350.9 million for the three months
ended September 30, 2016, June 30, 2016 and September 30, 2015,
respectively.(3) Adjusted cash flows from
operations reflects cash flows from operations before working
capital changes. Adjusted cash flow from operations for the
three-month period ended June 30, 2016 includes a $28 million
payment to Evolution in connection with our settlement agreement to
resolve all outstanding disputes and claims. Excluding these
payments, adjusted cash flows from operations would have totaled
$121 million for the three months ended June 30,
2016.(4) Lease operating expenses for the three
months ended September 30, 2016, include repair costs at Thompson
Field following the weather-related impacts during the second
quarter, and for the three months ended September 30, 2015, include
a reimbursement for a retroactive utility rate adjustment ($10
million) and an insurance reimbursement for previous well control
costs ($4 million). Excluding these items, lease operating
expenses per BOE would have averaged $18.23 and $19.43 for the
three months ended September 30, 2016 and 2015,
respectively.(5) Total continuing production
excludes production from the Williston Basin sold during the third
quarter of 2016 and other minor property divestitures.
MANAGEMENT COMMENT
Phil Rykhoek, Denbury’s CEO, commented, “In the
third quarter of 2016, we continued to execute on our plan of
optimizing our business and reducing costs, preserving cash and
liquidity and reducing leverage. Even though realized oil
prices were in the low $40s for the third quarter of 2016, we
generated positive cash flow and slightly positive adjusted net
income. On a sequential basis, our adjusted cash flow and
income decreased as the remaining portion of our most favorable
hedges ended in the second quarter of 2016, which reduced our
average realized price per barrel (including hedges) by
approximately $10. Although our cash costs per barrel of oil
equivalent (“BOE”) increased slightly this quarter as a result of
lower production and the expense of repairs at Thompson Field
following the weather-related flooding during the second quarter,
many of the cost savings achieved throughout 2016 will be
sustainable as oil prices improve and have become a permanent part
of our business going forward.
“While our third quarter production was slightly
below our expectations due to unexpected downtime at multiple
fields during the quarter, production has largely been restored at
these fields and we expect our fourth quarter production to be
essentially flat, or decline slightly, compared to our total third
quarter production. Therefore, we still expect to be within
our original guidance range, as adjusted for property sales.
“We made additional progress during the quarter
on our goal to reduce debt. The sale of our non-core
Williston assets, which closed at the end of August, provided
liquidity which enabled us to repurchase $30 million face amount of
our senior subordinated notes in the open market for $21
million. In addition, we reduced the outstanding balance on
our bank credit facility by $60 million from the end of the second
quarter. While these debt reductions are smaller in nature
than those during the first half of the year, when added to our
open-market repurchases in the first quarter and the debt exchange
in the second quarter, we have reduced our debt principal by $562
million this year. With the recent announcement that our
lender group reaffirmed our borrowing base and lender commitments
at $1.05 billion in our semiannual borrowing base redetermination,
our bank line continues to provide us with significant flexibility
as we move into 2017, with over $700 million of credit available to
us.”
PRODUCTION
Denbury’s continuing production averaged 60,714
BOE per day (“BOE/d”) during the third quarter of 2016, including
37,199 barrels per day (“Bbls/d”) from tertiary properties and
23,515 BOE/d from non-tertiary properties. Continuing
production excludes production from assets in the Williston Basin
(the “Williston Assets”) which were sold during the third quarter
of 2016 and other minor property divestitures, which combined
volumes totaled 819 BOE/d during the third quarter of 2016,
compared to 1,530 BOE/d during the second quarter of 2016 and 1,957
BOE/d during the third quarter of 2015. Third quarter of 2016
production was 96% oil, similar to that in the prior-year
period. Continuing production in the third quarter of 2016
decreased 4% sequentially and 13% compared to the third quarter of
2015. As discussed in the Company’s second quarter earnings
release, third quarter of 2016 production continued to be impacted
by the weather-related downtime at Thompson and Conroe fields due
to flooding and damage caused by strong thunderstorms in the
Houston area during April and May this year; however, both fields
were largely returned to full production by the end of September,
and combined production from these two fields was up slightly
sequentially. Most of the sequential quarterly production
decline was related to the Company’s tertiary production, which was
impacted to some degree by unplanned downtime at some fields and a
planned facility turnaround at Tinsley Field. This production
decline was offset in part by continued tertiary production growth
at Delhi Field.
In analyzing the 13% decline in continuing
production from the third quarter of 2015, approximately half of
the production decline was due to weather-related shut-in
production at Thompson and Conroe fields, production that was
shut-in due to economics, the planned downtime at Tinsley Field and
unplanned downtime at other fields. The remaining decline is
largely due to natural production declines based on the Company’s
lower capital spending level, offset in part by continued tertiary
production growth at the Company’s Delhi and Bell Creek fields.
The Company estimates that its production
decline for the full year will be in line with its anticipated
decline after adjusting for the asset sales and weather related
impacts, and it currently estimates that its full-year 2016
production will range between 64,000 BOE/d and 65,000 BOE/d, with
production for the remainder of the year anticipated to be
relatively flat or slightly lower than the total production levels
during the third quarter of 2016. As of September 30, 2016,
the Company estimates that approximately 2,000 BOE/d of production
remained shut in attributable to uneconomic wells, a reduction of
approximately 600 BOE/d from similar estimates as of June 30, 2016,
primarily due to the Williston Asset sale.
REVIEW OF FINANCIAL RESULTS
Denbury’s average realized oil price per Bbl,
excluding derivative settlements, was $43.45 in the third quarter
of 2016, compared to $43.38 in the second quarter of 2016 and
$45.74 in the prior-year third quarter. Including derivative
settlements, Denbury’s average realized oil price per Bbl was
$42.12 in the third quarter of 2016, compared to $52.61 in the
second quarter of 2016 and $71.32 in the prior-year third
quarter. The oil price realized relative to NYMEX oil prices
(the Company’s NYMEX oil price differential) in the third quarter
of 2016 was $1.57 per Bbl below NYMEX prices, compared to a
differential of $2.18 per Bbl below NYMEX in the second quarter of
2016 and $0.96 per Bbl below NYMEX in the third quarter of
2015.
The Company’s total lease operating expenses in
the third quarter of 2016 were $107 million, a decrease of 6% on an
absolute-dollar basis when compared to the third quarter of
2015. When normalized to exclude reimbursements of $14
million in the prior-year third quarter ($10 million for a
retroactive utility rate adjustment and $4 million for an insurance
reimbursement), lease operating expenses decreased 17% compared to
the third quarter of 2015. These reductions were due to cost
decreases in most lease operating expense categories, the most
significant of which included (1) a decrease in workover costs and
repairs primarily as a result of reduced failures, (2) lower power
costs due to lower usage and rates, (3) lower CO2 expense resulting
from a decrease in CO2 injection volumes, and (4) lower Company
labor costs resulting from a reduction in force. During the
third quarter of 2016, the Company’s CO2 use further declined to
458 million cubic feet per day, a decrease of 32% when compared to
the third quarter of 2015. Sequentially, lease operating
expenses increased 7% on an absolute-dollar basis and 10% on a
per-BOE basis between the second and third quarters of 2016.
The increase on an absolute-dollar basis was primarily due to
increased repair costs at Thompson Field following the
weather-related events of the second quarter of 2016.
Adjusting for the weather-related cost impacts at Thompson Field,
lease operating expenses per BOE of $18.82 would have been $18.23
for the three months ended September 30, 2016.
Taxes other than income, which includes ad
valorem, production, and franchise taxes, decreased $5 million from
the prior-year third quarter level due primarily to lower ad
valorem taxes in 2016 and a decrease in severance taxes due to
lower oil and natural gas revenues.
General and administrative expenses were $25
million in the third quarter of 2016, decreasing $8 million, or
25%, from the prior-year third quarter level. This reduction
was primarily due to a reduction in headcount, which has resulted
in lower employee compensation and related costs.
Interest expense, net of capitalized interest,
decreased to $25 million in the third quarter of 2016, compared to
$39 million in the third quarter of 2015. As a result of the
Company’s debt exchange transactions completed in May 2016,
interest expense in the third quarter of 2016 excludes
approximately $13 million of interest on the Company’s new 9%
Senior Secured Second Lien Notes due 2021 because it is recorded as
debt for financial reporting purposes and is therefore not
reflected as interest expense. Cash interest, including the
portion of interest recorded as debt, decreased approximately $2
million from the prior-year quarter.
As a result of the continued decrease in average
commodity pricing compared to 2015 levels, the Company recognized a
full cost pool ceiling test write-down of $76 million during the
third quarter of 2016, compared to $479 million during the second
quarter of 2016 and $1.8 billion during the third quarter of
2015. In determining these write-downs, the Company is
required to use the average rolling first-day-of-the-month NYMEX
oil and natural gas prices for the preceding 12 months, adjusted
for market differentials by field. The preceding 12-month
NYMEX prices averaged $41.68 per Bbl for crude oil for the period
ended September 30, 2016, down from $43.12 per Bbl for the period
ended June 30, 2016 and $59.21 per Bbl for the period ended
September 30, 2015.
Denbury’s overall depletion, depreciation, and
amortization (“DD&A”) rate was $9.72 per BOE in the third
quarter of 2016, compared to $18.48 per BOE in the prior-year third
quarter and $11.34 per BOE in the second quarter of 2016, with the
decreases primarily driven by a reduction in depletable costs
resulting from the full cost pool ceiling test write-downs
recognized during 2015 and the first half of 2016, as well as an
overall reduction in future development costs and lower production
volumes, partially offset by reductions in proved oil and natural
gas reserve quantities.
Payments on settlements of oil and natural gas
derivative contracts were $7 million in the third quarter of 2016,
compared to receipts of $52 million in the second quarter of 2016
and receipts of $161 million in the prior-year third quarter.
These settlements resulted in a decrease in average net realized
prices of $1.29 per BOE in the third quarter of 2016, compared to
increases of $8.86 per BOE in the second quarter of 2016 and $24.46
per BOE in the third quarter of 2015.
Denbury’s effective tax rate for the third
quarter of 2016 was 37.2%, consistent with the Company’s statutory
rate of 38%, and up from 24.6% in the prior-year third quarter.
BANK CREDIT FACILITY AND OTHER LONG-TERM
DEBT
As previously disclosed, the Company’s borrowing
base under its senior secured bank credit facility (the “Facility”)
was reaffirmed at the previously existing amount of $1.05 billion
during the fall 2016 semiannual borrowing base redetermination, the
same amount committed by the banks to loan under the
Facility. A total of $260 million of borrowings were
outstanding under the Facility as of September 30, 2016, a decrease
of $60 million from the level outstanding as of June 30,
2016. There were no changes to the terms or conditions of the
Facility, and the next regularly scheduled borrowing base
redetermination is set to occur on or about May 1, 2017.
During the third quarter of 2016, the Company
repurchased approximately $30 million principal amount of its
outstanding senior subordinated notes in open-market transactions
for approximately $21 million.
2016 CAPITAL BUDGET
The Company’s 2016 capital budget, excluding
acquisitions and capitalized interest, remains unchanged from the
previously estimated amount of approximately $200 million.
The capital budget consists of approximately $145 million of
tertiary, non-tertiary, and CO2 supply and pipeline projects, plus
approximately $55 million of estimated capitalized costs (including
capitalized internal acquisition, exploration and development costs
and pre-production tertiary startup costs). Of this combined
capital expenditure amount, approximately $146 million (73%) has
been incurred through the third quarter of 2016.
CONFERENCE CALL INFORMATION
Denbury management will host a conference call
to review and discuss third quarter 2016 financial and operating
results, as well as financial and operating guidance for the
remainder of 2016, today, Thursday, November 3, at 10:00 A.M.
(Central). Additionally, Denbury has published presentation
materials on its website which will be referenced during the
conference call. Individuals who would like to participate
should dial 800.230.1093 or 612.332.0226 ten minutes before the
scheduled start time. To access a live webcast of the
conference call and accompanying slide presentation, please visit
the investor relations section of the Company’s website at
www.denbury.com. The webcast will be archived on the website,
and a telephonic replay will be accessible for at least one month
after the call by dialing 800.475.6701 or 320.365.3844 and entering
confirmation number 361970.
Denbury is an independent oil and natural gas
company with operations focused in two key operating areas: the
Gulf Coast and Rocky Mountain regions. The Company’s goal is
to increase the value of its properties through a combination of
exploitation, drilling and proven engineering extraction practices,
with the most significant emphasis relating to CO2 enhanced oil
recovery operations. For more information about Denbury,
please visit www.denbury.com.
This press release, other than historical
financial information, contains forward-looking statements that
involve risks and uncertainties including estimated 2016 production
and capital expenditures and other risks and uncertainties detailed
in the Company’s filings with the Securities and Exchange
Commission, including Denbury’s most recent report on Form
10-K. These risks and uncertainties are incorporated by this
reference as though fully set forth herein. These statements
are based on engineering, geological, financial and operating
assumptions that management believes are reasonable based on
currently available information; however, management’s assumptions
and the Company’s future performance are both subject to a wide
range of business risks, and there is no assurance that these goals
and projections can or will be met. Actual results may vary
materially. In addition, any forward-looking statements
represent the Company’s estimates only as of today and should not
be relied upon as representing its estimates as of any future
date. Denbury assumes no obligation to update its
forward-looking statements.
FINANCIAL AND STATISTICAL DATA TABLES
AND RECONCILIATION SCHEDULES
Following are unaudited financial highlights for
the comparative three and nine month periods ended September 30,
2016 and 2015 and the three month period ended June 30, 2016.
All production volumes and dollars are expressed on a net revenue
interest basis with gas volumes converted to equivalent barrels at
6:1.
DENBURY RESOURCES
INC.CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
The following information is based on GAAP
reported earnings (along with additional required disclosures)
included or to be included in the Company’s periodic reports:
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30, |
|
June 30, |
|
September 30, |
| In
thousands, except per-share data |
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
| Revenues and
other income |
|
|
|
|
|
|
|
|
|
|
| Oil sales |
|
$ |
237,053 |
|
|
$ |
285,742 |
|
|
$ |
244,572 |
|
|
$ |
666,441 |
|
|
$ |
939,744 |
|
| Natural gas sales |
|
2,877 |
|
|
4,646 |
|
|
2,096 |
|
|
7,960 |
|
|
15,005 |
|
| CO2 sales and transportation
fees |
|
6,253 |
|
|
9,144 |
|
|
6,622 |
|
|
19,147 |
|
|
23,268 |
|
| Interest income and other
income |
|
7,802 |
|
|
4,068 |
|
|
1,858 |
|
|
10,429 |
|
|
9,926 |
|
| Total revenues and other
income |
|
253,985 |
|
|
303,600 |
|
|
255,148 |
|
|
703,977 |
|
|
987,943 |
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
| Lease operating expenses |
|
106,522 |
|
|
113,902 |
|
|
100,019 |
|
|
308,988 |
|
|
387,156 |
|
| Marketing and plant operating
expenses |
|
14,452 |
|
|
14,458 |
|
|
12,999 |
|
|
40,645 |
|
|
40,358 |
|
| CO2 discovery and operating
expenses |
|
861 |
|
|
1,017 |
|
|
1,071 |
|
|
2,539 |
|
|
2,909 |
|
| Taxes other than income |
|
20,401 |
|
|
25,607 |
|
|
19,504 |
|
|
59,997 |
|
|
85,841 |
|
| General and administrative
expenses |
|
24,643 |
|
|
32,907 |
|
|
22,545 |
|
|
81,089 |
|
|
117,134 |
|
| Interest, net of amounts
capitalized of $6,875, $8,081, $6,289, $18,944 and $25,228,
respectively |
|
24,778 |
|
|
39,225 |
|
|
36,058 |
|
|
103,007 |
|
|
119,187 |
|
| Depletion, depreciation, and
amortization |
|
55,012 |
|
|
121,406 |
|
|
66,541 |
|
|
198,919 |
|
|
419,304 |
|
| Commodity derivatives expense
(income) |
|
(21,224 |
) |
|
(92,028 |
) |
|
98,209 |
|
|
99,811 |
|
|
(126,178 |
) |
| Gain on debt extinguishment |
|
(7,826 |
) |
|
— |
|
|
(12,278 |
) |
|
(115,095 |
) |
|
— |
|
| Write-down of oil and natural gas
properties |
|
75,521 |
|
|
1,760,600 |
|
|
479,400 |
|
|
810,921 |
|
|
3,612,600 |
|
| Impairment of goodwill |
|
— |
|
|
1,261,512 |
|
|
— |
|
|
— |
|
|
1,261,512 |
|
| Other expenses |
|
— |
|
|
— |
|
|
34,688 |
|
|
36,232 |
|
|
— |
|
| Total expenses |
|
293,140 |
|
|
3,278,606 |
|
|
858,756 |
|
|
1,627,053 |
|
|
5,919,823 |
|
| Loss before
income taxes |
|
(39,155 |
) |
|
(2,975,006 |
) |
|
(603,608 |
) |
|
(923,076 |
) |
|
(4,931,880 |
) |
| Income tax provision
(benefit) |
|
|
|
|
|
|
|
|
|
|
| Current income taxes |
|
(1,046 |
) |
|
1,184 |
|
|
— |
|
|
(1,051 |
) |
|
1,063 |
|
| Deferred income taxes |
|
(13,519 |
) |
|
(732,064 |
) |
|
(222,940 |
) |
|
(331,574 |
) |
|
(1,432,572 |
) |
| Net
loss |
|
$ |
(24,590 |
) |
|
$ |
(2,244,126 |
) |
|
$ |
(380,668 |
) |
|
$ |
(590,451 |
) |
|
$ |
(3,500,371 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| Net loss per
common share |
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
(0.06 |
) |
|
$ |
(6.41 |
) |
|
$ |
(1.03 |
) |
|
$ |
(1.60 |
) |
|
$ |
(10.01 |
) |
| Diluted |
|
$ |
(0.06 |
) |
|
$ |
(6.41 |
) |
|
$ |
(1.03 |
) |
|
$ |
(1.60 |
) |
|
$ |
(10.01 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| Dividends
declared per common share |
|
$ |
— |
|
|
$ |
0.0625 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.1875 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Weighted
average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
| Basic |
|
388,572 |
|
|
350,052 |
|
|
370,566 |
|
|
368,863 |
|
|
349,787 |
|
| Diluted |
|
388,572 |
|
|
350,052 |
|
|
370,566 |
|
|
368,863 |
|
|
349,787 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DENBURY RESOURCES
INC.SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Reconciliation of net loss (GAAP measure) to
adjusted net income (non-GAAP measure)
Adjusted net income is a non-GAAP measure
provided as a supplement to present an alternative net loss measure
which excludes expense and income items (and their related tax
effects) not directly related to the Company’s ongoing
operations. Management believes that adjusted net income may
be helpful to investors by eliminating the impact of noncash and/or
special or unusual items not indicative of our performance from
period to period, and is widely used by the investment community,
while also being used by management, in evaluating the
comparability of the Company’s ongoing operational results and
trends. Adjusted net income should not be considered in
isolation, as a substitute for, or more meaningful than, net loss
or any other measure reported in accordance with GAAP, but rather
to provide additional information useful in evaluating the
Company’s operational trends and performance.
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30, |
|
June 30, |
|
September 30, |
| In
thousands, except per-share data |
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
| Net loss (GAAP
measure) |
|
$ |
(24,590 |
) |
|
$ |
(2,244,126 |
) |
|
$ |
(380,668 |
) |
|
$ |
(590,451 |
) |
|
$ |
(3,500,371 |
) |
| Adjustments to
reconcile to adjusted net income (non-GAAP measure) |
|
|
|
|
|
|
|
|
|
|
| Noncash
fair value adjustments on commodity derivatives (1) |
|
(28,519 |
) |
|
68,649 |
|
|
150,235 |
|
|
216,769 |
|
|
307,115 |
|
| Lease
operating expenses – special items (2) |
|
— |
|
|
(13,715 |
) |
|
— |
|
|
— |
|
|
(13,715 |
) |
|
Write-down of oil and natural gas properties (3) |
|
75,521 |
|
|
1,760,600 |
|
|
479,400 |
|
|
810,921 |
|
|
3,612,600 |
|
|
Impairment of goodwill (4) |
|
— |
|
|
1,261,512 |
|
|
— |
|
|
— |
|
|
1,261,512 |
|
| Gain on
debt extinguishment (5) |
|
(7,826 |
) |
|
— |
|
|
(12,278 |
) |
|
(115,095 |
) |
|
— |
|
| Legal
settlements included in other expenses (6) |
|
— |
|
|
— |
|
|
30,250 |
|
|
30,250 |
|
|
— |
|
| Write-off
of debt issuance costs included in interest expense (7) |
|
— |
|
|
— |
|
|
4,509 |
|
|
5,553 |
|
|
— |
|
|
Severance-related payments included in general and administrative
expenses (8) |
|
— |
|
|
— |
|
|
— |
|
|
9,315 |
|
|
— |
|
|
Transaction costs and other (9) |
|
— |
|
|
— |
|
|
4,531 |
|
|
5,638 |
|
|
— |
|
| Estimated
income taxes on above adjustments to net loss and other discrete
tax items (10) |
|
(13,322 |
) |
|
(769,497 |
) |
|
(247,178 |
) |
|
(351,932 |
) |
|
(1,533,374 |
) |
| Adjusted net
income (non-GAAP measure) |
|
$ |
1,264 |
|
|
$ |
63,423 |
|
|
$ |
28,801 |
|
|
$ |
20,968 |
|
|
$ |
133,767 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Adjusted net income per
common share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.00 |
|
|
$ |
0.18 |
|
|
$ |
0.08 |
|
|
$ |
0.06 |
|
|
$ |
0.38 |
|
|
Diluted |
|
$ |
0.00 |
|
|
$ |
0.18 |
|
|
$ |
0.08 |
|
|
$ |
0.06 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The net change between
periods of the fair market values of open commodity derivative
positions, excluding the impact of settlements on commodity
derivatives during the period.(2) Insurance and
other reimbursements, comprised of a reimbursement for a
retroactive utility rate adjustment ($9.6 million) and an insurance
reimbursement for previous well control costs ($4.1 million) during
the three and nine months ended September 30,
2015.(3) Full cost pool ceiling test write-downs
related to the Company’s oil and natural gas
properties.(4) Charge to fully impair the
carrying value of the Company’s goodwill.(5) Gain
on extinguishment related to open market debt purchases during the
three and nine months ended September 30, 2016, and the debt
exchange during the three months ended June 30, 2016 and nine
months ended September 30, 2016.(6) Settlements
related to previously outstanding litigation, the most significant
of which pertaining to a $28 million payment to Evolution in
connection with the settlement resolving all outstanding disputes
and claims.(7) Write-off of debt issuance costs
associated with the Company’s senior secured bank credit facility,
related to reductions in the Company’s lender commitments resulting
from (1) the February 2016 amendment and (2) the May 2016
redetermination.(8) Severance-related payments
associated with the Company’s February-2016 workforce
reduction.(9) Transaction costs related to the
Company’s debt exchange during the three months ended June 30, 2016
and nine months ended September 30, 2016 and a loss on sublease
during the nine months ended September 30, 2016.(10) The
estimated income tax impacts on adjustments to net loss are
generally computed based upon a statutory rate of 38%, applicable
to all periods presented, with the exception of the write-down on
oil and natural gas properties, which are computed individually
based upon the Company’s effective tax rate. In addition,
recorded valuation allowances of $30.5 million have been adjusted
for the nine months ended September 30, 2015.
DENBURY RESOURCES
INC.SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Reconciliation of cash flows from operations
(GAAP measure) to adjusted cash flows from operations (non-GAAP
measure)
Adjusted cash flows from operations is a
non-GAAP measure that represents cash flows provided by operations
before changes in assets and liabilities, as summarized from the
Company’s Unaudited Condensed Consolidated Statements of Cash
Flows. Adjusted cash flows from operations measures the cash
flows earned or incurred from operating activities without regard
to the collection or payment of associated receivables or
payables. Management believes that it is important to
consider this additional measure, along with cash flows from
operations, as it believes the non-GAAP measure can often be a
better way to discuss changes in operating trends in its business
caused by changes in production, prices, operating costs and
related factors, without regard to whether the earned or incurred
item was collected or paid during that period.
| |
|
Three Months Ended |
|
Nine Months Ended |
| In thousands |
|
September 30, |
|
June 30, |
|
September 30, |
| |
2016 |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
| Net loss (GAAP
measure) |
|
$ |
(24,590 |
) |
|
$ |
(2,244,126 |
) |
|
$ |
(380,668 |
) |
|
$ |
(590,451 |
) |
|
$ |
(3,500,371 |
) |
| Adjustments to
reconcile to adjusted cash flows from operations |
|
|
|
|
|
|
|
|
|
|
|
Depletion, depreciation, and amortization |
|
55,012 |
|
|
121,406 |
|
|
66,541 |
|
|
198,919 |
|
|
419,304 |
|
| Deferred
income taxes |
|
(13,519 |
) |
|
(732,064 |
) |
|
(222,940 |
) |
|
(331,574 |
) |
|
(1,432,572 |
) |
|
Stock-based compensation |
|
5,560 |
|
|
7,670 |
|
|
3,263 |
|
|
9,682 |
|
|
22,637 |
|
| Noncash
fair value adjustments on commodity derivatives |
|
(28,519 |
) |
|
68,649 |
|
|
150,235 |
|
|
216,769 |
|
|
307,115 |
|
| Gain on
debt extinguishment |
|
(7,826 |
) |
|
— |
|
|
(12,278 |
) |
|
(115,095 |
) |
|
— |
|
|
Write-down of oil and natural gas properties |
|
75,521 |
|
|
1,760,600 |
|
|
479,400 |
|
|
810,921 |
|
|
3,612,600 |
|
|
Impairment of goodwill |
|
— |
|
|
1,261,512 |
|
|
— |
|
|
— |
|
|
1,261,512 |
|
|
Other |
|
(59 |
) |
|
(1,129 |
) |
|
9,439 |
|
|
12,270 |
|
|
(647 |
) |
| Adjusted cash
flows from operations (non-GAAPmeasure)
(1) |
|
61,580 |
|
|
242,518 |
|
|
92,992 |
|
|
211,441 |
|
|
689,578 |
|
| Net
change in assets and liabilities relating to operations |
|
34,835 |
|
|
30,158 |
|
|
(32,077 |
) |
|
(52,082 |
) |
|
9,819 |
|
| Cash flows from
operations (GAAP measure) |
|
$ |
96,415 |
|
|
$ |
272,676 |
|
|
$ |
60,915 |
|
|
$ |
159,359 |
|
|
$ |
699,397 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The three-month period
ended June 30, 2016 and the nine-month period ended September 30,
2016 include a $28 million payment to Evolution in connection with
our settlement agreement to resolve all outstanding disputes and
claims. The nine-month period ended September 30, 2016 also
includes severance-related payments associated with the 2016
workforce reduction of approximately $9 million. Excluding
these payments, adjusted cash flows from operations would have
totaled $121 million for the three months ended June 30, 2016 and
$248 million for the nine months ended September 30, 2016.
DENBURY RESOURCES
INC.SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES
(UNAUDITED)
Reconciliation of commodity derivatives income
(expense) (GAAP measure) to noncash fair value adjustments on
commodity derivatives (non-GAAP measure)
Noncash fair value adjustments on commodity
derivatives is a non-GAAP measure and is different from “Commodity
derivatives expense (income)” in the Unaudited Condensed
Consolidated Statements of Operations in that the noncash fair
value adjustments on commodity derivatives represents only the net
change between periods of the fair market values of open commodity
derivative positions, and excludes the impact of settlements on
commodity derivatives during the period. Management believes
that noncash fair value adjustments on commodity derivatives is a
useful supplemental disclosure to “Commodity derivatives expense
(income)” because the GAAP measure also includes settlements on
commodity derivatives during the period; the non-GAAP measure is
widely used within the industry and by securities analysts, banks
and credit rating agencies in calculating EBITDA and in adjusting
net income to present those measures on a comparative basis across
companies, as well as to assess compliance with certain debt
covenants.
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30, |
|
June 30, |
|
September 30, |
| In
thousands |
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
| Receipt (payment) on
settlements of commodity derivatives |
|
$ |
(7,295 |
) |
|
$ |
160,677 |
|
|
$ |
52,026 |
|
|
$ |
116,958 |
|
|
$ |
433,293 |
|
| Noncash fair value
adjustments on commodity derivatives (non-GAAP measure) |
|
28,519 |
|
|
(68,649 |
) |
|
(150,235 |
) |
|
(216,769 |
) |
|
(307,115 |
) |
| Commodity
derivatives income (expense) (GAAP measure) |
|
$ |
21,224 |
|
|
$ |
92,028 |
|
|
$ |
(98,209 |
) |
|
$ |
(99,811 |
) |
|
$ |
126,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DENBURY RESOURCES
INC.OPERATING HIGHLIGHTS (UNAUDITED)
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
| Production
(daily – net of royalties) |
|
|
|
|
|
|
|
|
|
|
| Oil
(barrels) |
|
59,297 |
|
|
67,900 |
|
|
61,952 |
|
|
62,451 |
|
|
69,424 |
|
| Gas
(mcf) |
|
13,416 |
|
|
21,066 |
|
|
15,328 |
|
|
15,995 |
|
|
22,357 |
|
| BOE
(6:1) |
|
61,533 |
|
|
71,410 |
|
|
64,506 |
|
|
65,117 |
|
|
73,150 |
|
| Unit sales
price (excluding derivative settlements) |
|
|
|
|
|
|
|
|
|
|
| Oil (per
barrel) |
|
$ |
43.45 |
|
|
$ |
45.74 |
|
|
$ |
43.38 |
|
|
$ |
38.95 |
|
|
$ |
49.58 |
|
| Gas (per
mcf) |
|
2.33 |
|
|
2.40 |
|
|
1.50 |
|
|
1.82 |
|
|
2.46 |
|
| BOE
(6:1) |
|
42.38 |
|
|
44.20 |
|
|
42.02 |
|
|
37.80 |
|
|
47.81 |
|
| Unit sales
price (including derivative settlements) |
|
|
|
|
|
|
|
|
|
|
| Oil (per
barrel) |
|
$ |
42.12 |
|
|
$ |
71.32 |
|
|
$ |
52.61 |
|
|
$ |
45.78 |
|
|
$ |
72.31 |
|
| Gas (per
mcf) |
|
2.33 |
|
|
2.87 |
|
|
1.50 |
|
|
1.82 |
|
|
2.89 |
|
| BOE
(6:1) |
|
41.09 |
|
|
68.66 |
|
|
50.88 |
|
|
44.35 |
|
|
69.51 |
|
| NYMEX
differentials |
|
|
|
|
|
|
|
|
|
|
| Gulf
Coast region |
|
|
|
|
|
|
|
|
|
|
| Oil (per
barrel) |
|
$ |
(0.77 |
) |
|
$ |
0.92 |
|
|
$ |
(1.22 |
) |
|
$ |
(1.55 |
) |
|
$ |
0.88 |
|
| Gas (per
mcf) |
|
(0.28 |
) |
|
(0.22 |
) |
|
(0.69 |
) |
|
(0.46 |
) |
|
(0.18 |
) |
| Rocky
Mountain region |
|
|
|
|
|
|
|
|
|
|
| Oil (per
barrel) |
|
$ |
(3.08 |
) |
|
$ |
(4.73 |
) |
|
$ |
(3.98 |
) |
|
$ |
(4.29 |
) |
|
$ |
(6.33 |
) |
| Gas (per
mcf) |
|
(0.72 |
) |
|
(0.55 |
) |
|
(0.80 |
) |
|
(0.63 |
) |
|
(0.52 |
) |
| Total
company |
|
|
|
|
|
|
|
|
|
|
| Oil (per
barrel) |
|
$ |
(1.57 |
) |
|
$ |
(0.96 |
) |
|
$ |
(2.18 |
) |
|
$ |
(2.51 |
) |
|
$ |
(1.52 |
) |
| Gas (per
mcf) |
|
(0.47 |
) |
|
(0.34 |
) |
|
(0.73 |
) |
|
(0.53 |
) |
|
(0.30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DENBURY RESOURCES
INC.OPERATING HIGHLIGHTS (UNAUDITED)
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30, |
|
June 30, |
|
September 30, |
|
Average Daily Volumes (BOE/d) (6:1) |
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
| Tertiary oil
production |
|
|
|
|
|
|
|
|
|
|
| Gulf Coast
region |
|
|
|
|
|
|
|
|
|
|
| Mature
properties (1) |
|
8,653 |
|
|
10,946 |
|
|
9,415 |
|
|
9,242 |
|
|
10,973 |
|
|
Delhi |
|
4,262 |
|
|
3,676 |
|
|
3,996 |
|
|
4,077 |
|
|
3,617 |
|
|
Hastings |
|
4,729 |
|
|
5,114 |
|
|
4,972 |
|
|
4,922 |
|
|
5,054 |
|
|
Heidelberg |
|
5,000 |
|
|
5,600 |
|
|
5,246 |
|
|
5,197 |
|
|
5,836 |
|
| Oyster
Bayou |
|
4,767 |
|
|
5,962 |
|
|
5,088 |
|
|
5,115 |
|
|
5,920 |
|
|
Tinsley |
|
6,756 |
|
|
7,311 |
|
|
7,335 |
|
|
7,328 |
|
|
8,320 |
|
| Total
Gulf Coast region |
|
34,167 |
|
|
38,609 |
|
|
36,052 |
|
|
35,881 |
|
|
39,720 |
|
| Rocky Mountain
region |
|
|
|
|
|
|
|
|
|
|
| Bell
Creek |
|
3,032 |
|
|
2,225 |
|
|
3,160 |
|
|
3,071 |
|
|
2,025 |
|
| Total
Rocky Mountain region |
|
3,032 |
|
|
2,225 |
|
|
3,160 |
|
|
3,071 |
|
|
2,025 |
|
| Total tertiary oil
production |
|
37,199 |
|
|
40,834 |
|
|
39,212 |
|
|
38,952 |
|
|
41,745 |
|
| Non-tertiary
oil and gas production |
|
|
|
|
|
|
|
|
|
|
| Gulf Coast
region |
|
|
|
|
|
|
|
|
|
|
|
Mississippi |
|
963 |
|
|
1,157 |
|
|
1,017 |
|
|
884 |
|
|
1,133 |
|
|
Texas |
|
4,234 |
|
|
6,508 |
|
|
4,104 |
|
|
4,826 |
|
|
6,434 |
|
|
Other |
|
538 |
|
|
846 |
|
|
456 |
|
|
515 |
|
|
919 |
|
| Total
Gulf Coast region |
|
5,735 |
|
|
8,511 |
|
|
5,577 |
|
|
6,225 |
|
|
8,486 |
|
| Rocky Mountain
region |
|
|
|
|
|
|
|
|
|
|
| Cedar
Creek Anticline |
|
16,017 |
|
|
17,515 |
|
|
16,325 |
|
|
16,704 |
|
|
18,038 |
|
|
Other |
|
1,763 |
|
|
2,593 |
|
|
1,862 |
|
|
1,898 |
|
|
2,855 |
|
| Total
Rocky Mountain region |
|
17,780 |
|
|
20,108 |
|
|
18,187 |
|
|
18,602 |
|
|
20,893 |
|
| Total non-tertiary
production |
|
23,515 |
|
|
28,619 |
|
|
23,764 |
|
|
24,827 |
|
|
29,379 |
|
| Total
continuing production |
|
60,714 |
|
|
69,453 |
|
|
62,976 |
|
|
63,779 |
|
|
71,124 |
|
| Property
sales |
|
|
|
|
|
|
|
|
|
|
| Williston
Assets (2) |
|
819 |
|
|
1,522 |
|
|
1,267 |
|
|
1,149 |
|
|
1,575 |
|
| Other
property divestitures |
|
— |
|
|
435 |
|
|
263 |
|
|
189 |
|
|
451 |
|
| Total
production |
|
61,533 |
|
|
71,410 |
|
|
64,506 |
|
|
65,117 |
|
|
73,150 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Total mature properties include Brookhaven, Cranfield, Eucutta,
Little Creek, Lockhart Crossing, Mallalieu, Martinville, McComb and
Soso fields.
- Includes non-tertiary production in the Rocky Mountain region
related to the sale of remaining non-core assets in the Williston
Basin of North Dakota and Montana, which closed in the third
quarter of 2016.
DENBURY RESOURCES
INC.PER-BOE DATA (UNAUDITED)
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30, |
|
June 30, |
|
September 30, |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
| Oil and natural gas
revenues |
|
$ |
42.38 |
|
|
$ |
44.20 |
|
|
$ |
42.02 |
|
|
$ |
37.80 |
|
|
$ |
47.81 |
|
| Receipt (payment) on
settlements of commodity derivatives |
|
(1.29 |
) |
|
24.46 |
|
|
8.86 |
|
|
6.55 |
|
|
21.70 |
|
| Lease operating
expenses – excluding special items |
|
(18.82 |
) |
|
(19.43 |
) |
|
(17.04 |
) |
|
(17.32 |
) |
|
(20.08 |
) |
| Lease operating
expenses – special items |
|
— |
|
|
2.09 |
|
|
— |
|
|
— |
|
|
0.69 |
|
| Production and ad
valorem taxes |
|
(3.18 |
) |
|
(3.19 |
) |
|
(2.90 |
) |
|
(2.93 |
) |
|
(3.69 |
) |
| Marketing expenses, net
of third-party purchases, and plant operating expenses |
|
(1.99 |
) |
|
(1.91 |
) |
|
(1.85 |
) |
|
(1.89 |
) |
|
(1.75 |
) |
|
Production netback |
|
17.10 |
|
|
46.22 |
|
|
29.09 |
|
|
22.21 |
|
|
44.68 |
|
| CO2 sales, net of
operating and exploration expenses |
|
0.95 |
|
|
1.24 |
|
|
0.95 |
|
|
0.93 |
|
|
1.02 |
|
| General and
administrative expenses |
|
(4.35 |
) |
|
(5.01 |
) |
|
(3.84 |
) |
|
(4.54 |
) |
|
(5.87 |
) |
| Interest expense,
net |
|
(4.38 |
) |
|
(5.97 |
) |
|
(6.14 |
) |
|
(5.77 |
) |
|
(5.97 |
) |
| Other |
|
1.56 |
|
|
0.43 |
|
|
(4.22 |
) |
|
(0.98 |
) |
|
0.67 |
|
| Changes in assets and
liabilities relating to operations |
|
6.15 |
|
|
4.59 |
|
|
(5.46 |
) |
|
(2.92 |
) |
|
0.49 |
|
| Cash
flows from operations |
|
17.03 |
|
|
41.50 |
|
|
10.38 |
|
|
8.93 |
|
|
35.02 |
|
| DD&A |
|
(9.72 |
) |
|
(18.48 |
) |
|
(11.34 |
) |
|
(11.15 |
) |
|
(21.00 |
) |
| Write-down of oil and
natural gas properties |
|
(13.34 |
) |
|
(267.99 |
) |
|
(81.67 |
) |
|
(45.45 |
) |
|
(180.90 |
) |
| Impairment of
goodwill |
|
— |
|
|
(192.02 |
) |
|
— |
|
|
— |
|
|
(63.17 |
) |
| Deferred income
taxes |
|
2.39 |
|
|
111.43 |
|
|
37.98 |
|
|
18.58 |
|
|
71.74 |
|
| Gain on debt
extinguishment |
|
1.38 |
|
|
— |
|
|
2.09 |
|
|
6.45 |
|
|
— |
|
| Noncash fair value
adjustments on commodity derivatives |
|
5.04 |
|
|
(10.45 |
) |
|
(25.59 |
) |
|
(12.14 |
) |
|
(15.38 |
) |
| Other noncash
items |
|
(7.12 |
) |
|
(5.57 |
) |
|
3.30 |
|
|
1.69 |
|
|
(1.59 |
) |
| Net
loss |
|
$ |
(4.34 |
) |
|
$ |
(341.58 |
) |
|
$ |
(64.85 |
) |
|
$ |
(33.09 |
) |
|
$ |
(175.28 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURE SUMMARY (UNAUDITED)
(1)
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30, |
|
June 30, |
|
September 30, |
| In
thousands |
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
| Capital expenditures by
project |
|
|
|
|
|
|
|
|
|
|
| Tertiary
oil fields |
|
$ |
26,494 |
|
|
$ |
36,845 |
|
|
$ |
31,934 |
|
|
$ |
90,392 |
|
|
$ |
133,439 |
|
|
Non-tertiary fields |
|
8,366 |
|
|
22,620 |
|
|
4,903 |
|
|
19,142 |
|
|
75,199 |
|
|
Capitalized internal costs (2) |
|
9,729 |
|
|
16,309 |
|
|
11,314 |
|
|
35,516 |
|
|
50,220 |
|
| Oil and
natural gas capital expenditures |
|
44,589 |
|
|
75,774 |
|
|
48,151 |
|
|
145,050 |
|
|
258,858 |
|
| CO2
pipelines |
|
338 |
|
|
3,839 |
|
|
135 |
|
|
473 |
|
|
10,135 |
|
| CO2
sources |
|
335 |
|
|
7,204 |
|
|
— |
|
|
335 |
|
|
17,686 |
|
|
Other |
|
3 |
|
|
559 |
|
|
9 |
|
|
20 |
|
|
603 |
|
|
Capital expenditures, before acquisitions and capitalized
interest |
|
45,265 |
|
|
87,376 |
|
|
48,295 |
|
|
145,878 |
|
|
287,282 |
|
| Acquisitions of oil and
natural gas properties |
|
9,984 |
|
|
796 |
|
|
680 |
|
|
10,888 |
|
|
22,755 |
|
|
Capital expenditures, before capitalized
interest |
|
55,249 |
|
|
88,172 |
|
|
48,975 |
|
|
156,766 |
|
|
310,037 |
|
| Capitalized
interest |
|
6,875 |
|
|
8,081 |
|
|
6,289 |
|
|
18,944 |
|
|
25,228 |
|
|
Capital expenditures, total |
|
$ |
62,124 |
|
|
$ |
96,253 |
|
|
$ |
55,264 |
|
|
$ |
175,710 |
|
|
$ |
335,265 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Capital expenditure amounts include accrued capital.
- Includes capitalized internal acquisition, exploration and
development costs and pre-production tertiary startup costs.
DENBURY RESOURCES
INC.INTEREST AND FINANCING EXPENSES
(UNAUDITED)
| |
|
Three Months Ended |
|
Nine Months Ended |
| |
|
September 30, |
|
June 30, |
|
September 30, |
| In
thousands |
|
2016 |
|
2015 |
|
2016 |
|
2016 |
|
2015 |
| Cash interest (1) |
|
$ |
42,718 |
|
|
$ |
44,996 |
|
|
$ |
43,148 |
|
|
$ |
130,511 |
|
|
$ |
137,605 |
|
| Interest on 2021 Senior
Secured Notes not reflected as interest for financial reporting
purposes (1) |
|
(12,533 |
) |
|
— |
|
|
(7,036 |
) |
|
(19,569 |
) |
|
— |
|
| Noncash interest
expense |
|
1,468 |
|
|
2,310 |
|
|
6,235 |
|
|
11,009 |
|
|
6,810 |
|
| Less: capitalized
interest |
|
(6,875 |
) |
|
(8,081 |
) |
|
(6,289 |
) |
|
(18,944 |
) |
|
(25,228 |
) |
| Interest
expense, net |
|
$ |
24,778 |
|
|
$ |
39,225 |
|
|
$ |
36,058 |
|
|
$ |
103,007 |
|
|
$ |
119,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Cash interest is presented on an accrual basis, and includes
interest on the Company’s new 2021 Senior Secured Notes (interest
on which is to be paid semiannually May 15 and November 15 of each
year, beginning November 15, 2016), which are accounted for as debt
and not reflected as interest for financial reporting
purposes.
SELECTED BALANCE SHEET AND CASH FLOW
DATA (UNAUDITED)
| |
|
September 30, |
|
December 31, |
| In
thousands |
|
2016 |
|
2015 |
| Cash and cash
equivalents |
|
$ |
3,273 |
|
|
$ |
2,812 |
|
| Total assets |
|
4,816,801 |
|
|
5,885,533 |
|
| |
|
|
|
|
| Borrowings under senior
secured bank credit facility |
|
$ |
260,000 |
|
|
$ |
175,000 |
|
| Borrowings under senior
secured second lien notes (principal only) (1) |
|
614,919 |
|
|
— |
|
| Borrowings under senior
subordinated notes (principal only) |
|
1,612,603 |
|
|
2,852,250 |
|
| Financing and capital
leases |
|
260,397 |
|
|
283,090 |
|
| Total
debt (principal only) |
|
$ |
2,747,919 |
|
|
$ |
3,310,340 |
|
| |
|
|
|
|
| Total stockholders’
equity |
|
$ |
847,344 |
|
|
$ |
1,248,912 |
|
| |
|
|
|
|
|
|
|
|
- Excludes $255 million of future interest payable on the notes
as of September 30, 2016, accounted for as debt for financial
reporting purposes.
| |
|
Nine Months Ended |
| |
|
September 30, |
| In
thousands |
|
2016 |
|
2015 |
| Cash provided by (used
in) |
|
|
|
|
| Operating
activities |
|
$ |
159,359 |
|
|
$ |
699,397 |
|
| Investing
activities |
|
(134,007 |
) |
|
(427,540 |
) |
| Financing
activities |
|
(24,891 |
) |
|
(282,798 |
) |
| |
|
|
|
|
| Cash dividends
paid |
|
$ |
478 |
|
|
$ |
65,422 |
|
| |
|
|
|
|
|
|
|
|
DENBURY CONTACTS:
Mark C. Allen, Senior Vice President and Chief Financial Officer, 972.673.2000
John Mayer, Investor Relations, 972.673.2383
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