Net loss attributable to
Adjusted earnings before interest, income taxes, depreciation, depletion and amortization ("adjusted EBITDA") for the third quarter of 2016 was
Excluding the impact of the
We had hedges in place covering approximately 61% of our oil and condensate production, 57% of our natural gas production and 56% of our NGLs production for the third quarter of 2016. Commodity derivative contracts settled during the period resulted in a
We continue to maintain an active hedging program covering a portion of estimated future production for
Average daily production for the third quarter of 2016 was 5,900 barrels of oil equivalent ("Boe") per day ("Boe/d") as compared to 13,600 Boe/d in the third quarter of 2015 and 6,400 Boe/d in the second quarter of 2016. Third quarter 2015 and second quarter 2016 includes average daily production of 7,900 Boe/d and 194 Boe/d, respectively, attributable to our properties in the
The following table provides a summary of
For the Three |
For the Nine |
|||||||||||||||
2016(1) |
2015 |
2016(1) |
2015 |
|||||||||||||
(In thousands, except per unit amounts) |
||||||||||||||||
Net Production: |
||||||||||||||||
Oil and condensate (MBbl) |
242 |
330 |
837 |
1,066 |
||||||||||||
Natural gas (MMcf) |
1,009 |
3,490 |
5,232 |
10,360 |
||||||||||||
NGLs (MBbl) |
128 |
338 |
616 |
854 |
||||||||||||
Total net production (MBoe) |
539 |
1,249 |
2,325 |
3,646 |
||||||||||||
|
||||||||||||||||
Oil and condensate (MBbl/d) |
2.6 |
3.6 |
3.1 |
3.9 |
||||||||||||
Natural gas (MMcf/d) |
11.0 |
37.9 |
19.1 |
37.9 |
||||||||||||
NGLs (MBbl/d) |
1.4 |
3.7 |
2.2 |
3.1 |
||||||||||||
Total net daily production (MBoe/d) |
5.9 |
13.6 |
8.5 |
13.4 |
||||||||||||
Average sales price per unit: |
||||||||||||||||
Oil and condensate per Bbl, including impact of hedging activities (2) |
$ |
47.19 |
$ |
44.84 |
$ |
43.85 |
$ |
48.30 |
||||||||
Oil and condensate per Bbl, excluding impact of hedging activities |
$ |
42.55 |
$ |
38.89 |
$ |
36.41 |
$ |
42.94 |
||||||||
Natural gas per Mcf, including impact of hedging activities (2) |
$ |
2.76 |
$ |
1.57 |
$ |
1.86 |
$ |
1.93 |
||||||||
Natural gas per Mcf, excluding impact of hedging activities |
$ |
2.48 |
$ |
0.99 |
$ |
1.60 |
$ |
1.36 |
||||||||
NGLs per Bbl, including impact of hedging activities (2) |
$ |
15.01 |
$ |
10.64 |
$ |
10.55 |
$ |
14.32 |
||||||||
NGLs per Bbl, excluding impact of hedging activities |
$ |
13.22 |
$ |
2.35 |
$ |
8.28 |
$ |
5.94 |
||||||||
Average sales price per Boe, including impact of hedging activities (2) |
$ |
29.96 |
$ |
19.11 |
$ |
22.77 |
$ |
22.95 |
||||||||
Average sales price per Boe, excluding impact of hedging activities |
$ |
26.92 |
$ |
13.68 |
$ |
18.91 |
$ |
17.81 |
(1) |
The three and nine months ended |
(2) |
The impact of hedging includes only the gain (loss) on commodity derivative contracts settled during the periods presented. |
Lease operating expenses ("LOE") were
Depreciation, depletion and amortization ("DD&A") expense was
General and administrative ("G&A") expense was
Operations Review and Update
Mid-Continent
The following table provides a summary of
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||
Mid-Continent |
2016(1) |
2015 |
2016(1) |
2015 |
||||||||||||
Net Production: |
||||||||||||||||
Oil and condensate (MBbl) |
242 |
274 |
790 |
875 |
||||||||||||
Natural gas (MMcf) |
997 |
805 |
2,917 |
2,491 |
||||||||||||
NGLs (MBbl) |
128 |
111 |
380 |
320 |
||||||||||||
Total net production (MBoe) |
537 |
520 |
1,656 |
1,611 |
||||||||||||
Net Daily Production: |
||||||||||||||||
Oil and condensate (MBbl/d) |
2.6 |
3.0 |
2.9 |
3.2 |
||||||||||||
Natural gas (MMcf/d) |
10.8 |
8.7 |
10.6 |
9.1 |
||||||||||||
NGLs (MBbl/d) |
1.4 |
1.2 |
1.4 |
1.2 |
||||||||||||
Total net daily production (MBoe/d) |
5.8 |
5.6 |
6.0 |
5.9 |
||||||||||||
Average sales price per unit(1): |
||||||||||||||||
Oil and condensate (per Bbl) |
$ |
42.56 |
$ |
44.45 |
$ |
37.87 |
$ |
48.54 |
||||||||
Natural gas (per Mcf) |
$ |
2.48 |
$ |
2.67 |
$ |
2.06 |
$ |
2.76 |
||||||||
NGLs (per Bbl) |
$ |
13.22 |
$ |
10.28 |
$ |
12.79 |
$ |
13.16 |
||||||||
Average sales price per Boe(1) |
$ |
26.98 |
$ |
29.80 |
$ |
24.63 |
$ |
33.27 |
(1) |
Excludes the impact of hedging activities. |
Third quarter 2016 net production from the Mid-Continent area increased 3% compared to the third quarter 2015 and was down 5% when compared to the second quarter of 2016. Third quarter 2016 Mid-Continent production consisted of approximately 45% oil, 31% natural gas and 24% NGLs.
On
"In order to meet these objectives, we have entered into a Development Agreement whereby the investor earns only an interest in the well bores drilled, with
"We have already drilled the first five wells of the initial 20 well tranche and by year end we could have up to seven Drilling Program wells drilled and completed. We also plan to increase our operated drilling activity outside the Drilling Program area to test the STACK formations. We have one
We currently have two rigs operating on our Mid-Continent acreage under the Development Agreement. We have now drilled and completed a third operated
As of
Current Production Averages(3) |
||||||||||||||||||||||||||||
Well |
Current Working Interest(1) |
Approx. Lateral Length (in feet) |
Peak Production Rates(2) (BOE/d) |
BOE/d |
% Oil |
Date of First Production or Status |
Approx. Gross Costs to Drill & Complete ($ millions) |
Included in | ||||||||||||||||||||
Meramec Completions |
||||||||||||||||||||||||||||
|
78.3% |
4,300 |
654 |
508 |
75% |
|
$ |
4.1 |
No | |||||||||||||||||||
Ingle 29-1H(4) |
82.5% |
4,800 |
N/A |
N/A |
N/A |
|
$ |
4.5 |
Yes | |||||||||||||||||||
Geis 31-1H(4) |
53.7% |
4,600 |
N/A |
N/A |
N/A |
WOC |
$ |
4.5 |
Yes | |||||||||||||||||||
Katy 21-1H(4) |
67.9% |
4,900 |
N/A |
N/A |
N/A |
WOC |
$ |
4.5 |
Yes | |||||||||||||||||||
Lily 28-1H(4)(5) |
61.3% |
4,700 |
N/A |
N/A |
N/A |
Drilling |
$ |
4.5 |
Yes | |||||||||||||||||||
Mott 19-1H(4) |
44.3% |
4,200 |
N/A |
N/A |
N/A |
Drilling |
$ |
4.5 |
Yes | |||||||||||||||||||
Osage Completions |
||||||||||||||||||||||||||||
McGee 29-1H(5) |
81.0% |
4,200 |
N/A |
N/A |
N/A |
|
$ |
4.4 |
No | |||||||||||||||||||
Oswego Completions |
||||||||||||||||||||||||||||
Tomahawk 7-1H |
79.3% |
4,200 |
N/A |
N/A |
N/A |
|
$ |
2.7 |
No | |||||||||||||||||||
(1) |
Current estimated working interest. Working interest subject to change based on final force pooling orders or Development Agreement activity. |
(2) |
Represents highest daily gross Boe rate. N/A indicates that the well has not yet reached its peak production rate. |
(3) |
Represents average gross production for the most current five days through |
(4) |
Working interest reflected is our total current working interest before Development Agreement impact. |
(5) |
Excludes one-time fishing or coring costs. |
To further assess the potential of other Mid-Continent STACK Play formations, to date in 2016 we have participated in the completion of four gross (0.5 net) non-operated
In the Mid-Continent,
For the remainder of 2016,
The following table provides a summary of
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||
2016(1) |
2015 |
2016(1) |
2015 |
|||||||||||||
|
||||||||||||||||
Net Production: |
||||||||||||||||
Oil and condensate (MBbl) |
— |
56 |
47 |
191 |
||||||||||||
Natural gas (MMcf) |
12 |
2,685 |
2,315 |
7,869 |
||||||||||||
NGLs (MBbl) |
— |
226 |
236 |
533 |
||||||||||||
Total net production (MBoe) |
2 |
730 |
669 |
2,035 |
||||||||||||
Net Daily Production: |
||||||||||||||||
Oil and condensate (MBbl/d) |
— |
0.6 |
0.2 |
0.7 |
||||||||||||
Natural gas (MMcf/d) |
0.1 |
29.2 |
8.4 |
28.8 |
||||||||||||
NGLs (MBbl/d) |
— |
2.5 |
0.9 |
2.0 |
||||||||||||
Total net daily production (MBoe/d) |
— |
7.9 |
2.4 |
7.5 |
||||||||||||
Average sales price per unit (2): |
||||||||||||||||
Oil and condensate (per Bbl) |
$ |
— |
$ |
11.64 |
$ |
11.73 |
$ |
17.24 |
||||||||
Natural gas (per Mcf) |
$ |
2.10 |
$ |
0.49 |
$ |
1.03 |
$ |
0.92 |
||||||||
NGLs (per Bbl) |
$ |
— |
$ |
(1.56) |
$ |
1.00 |
$ |
1.60 |
||||||||
Average sales price per Boe (2) |
$ |
13.00 |
$ |
2.20 |
$ |
4.74 |
$ |
5.58 |
||||||||
(1) |
The three and nine months ended |
(2) |
Excludes the impact of hedging activities. |
Liquidity
At
We were in compliance with all financial covenants under the revolving credit facility at
Upon closing of the sale of the South STACK Acreage, we expect our liquidity to support our cash requirements for the remainder of 2016 and through 2017, subject to our ability to extend maturities or refinance our long-term debt by the fourth quarter of 2017, as described below. In light of our approaching maturities of our revolving credit facility in
Guidance for Fourth Quarter and Full-Year 2016
Our guidance for the fourth quarter of and full-year 2016 is provided in the table below and represents the Company's best estimate of the range of likely future results. Guidance could be affected by the factors described below in "Forward Looking Statements."
Production |
Fourth Quarter 2016 |
Full-Year 2016 | ||
Net average daily (MBoe/d) |
5.3 - 5.7 |
7.5 - 7.9 | ||
Liquids percentage |
70% - 74% |
63% - 67% | ||
Cash Operating Expenses |
||||
Production taxes (% of production revenues) |
2.4% - 2.6% |
3.9% - 4.1% | ||
Lease operating ($/Boe) |
|
| ||
Transportation, treating & gathering ($/Boe) |
|
| ||
Cash general & administrative ($/Boe) |
|
|
Conference Call
By Phone: |
Dial 1-412-902-0030 at least 10 minutes before the call. A telephone replay will be available through |
By Webcast: |
Visit the Investor Relations page of |
For more information, please contact Donna Washburn at Dennard-Lascar Associates at 713-529-6600 or e-mail dwashburn@dennardlascar.com.
About
Forward Looking Statements
This news release includes "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements give our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward looking words including "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "will," "should," and certain of the other foregoing statements may be deemed forward-looking statements. Although Gastar believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. These include risks
inherent in natural gas and oil drilling and production activities, including risks with respect to continued low or further declining prices for natural gas and oil that could result in further downward revisions to the value of proved reserves or otherwise cause
Targeted expectations and guidance for the fourth quarter and full year of 2016 are based upon the current 2016 planned capital expenditures budget, which may be subject to revision and reevaluation dependent upon future developments, including drilling results, our liquidity position, a further decline in commodity prices, availability of crews, supplies and production capacity, weather delays and significant changes in drilling costs.
Unless otherwise stated herein, equivalent volumes of production are based upon an energy equivalent ratio of six Mcf of natural gas to each barrel of liquids (oil, condensate and NGLs), which ratio is not reflective of relative value. Our NGLs are sold as part of our wet gas subject to an incremental NGLs pricing formula based upon a percentage of NGLs extracted from our wet gas production. Our reported production volumes reflect incremental post-processing NGLs volumes and residual gas volumes with which we are credited under our sales contracts.
Contacts:
713-739-1800 / mgerlich@gastar.com
Investor Relations Counsel:
713-529-6600 / lelliott@dennardlascar.com
- Financial Tables Follow -
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
For the Three Months |
For the Nine Months |
|||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||
REVENUES: |
||||||||||||||||
Oil and condensate |
$ |
10,306 |
$ |
12,835 |
$ |
30,464 |
$ |
45,772 |
||||||||
Natural gas |
2,500 |
3,459 |
8,394 |
14,109 |
||||||||||||
NGLs |
1,695 |
791 |
5,100 |
5,071 |
||||||||||||
Total oil, condensate, natural gas and NGLs revenues |
14,501 |
17,085 |
43,958 |
64,952 |
||||||||||||
(Loss) gain on commodity derivatives contracts |
(1,498) |
11,301 |
(3,991) |
19,734 |
||||||||||||
Total revenues |
13,003 |
28,386 |
39,967 |
84,686 |
||||||||||||
EXPENSES (BENEFIT): |
||||||||||||||||
Production taxes |
400 |
655 |
1,469 |
2,317 |
||||||||||||
Lease operating expenses |
5,166 |
5,214 |
15,829 |
18,475 |
||||||||||||
Transportation, treating and gathering |
338 |
615 |
1,346 |
1,654 |
||||||||||||
Depreciation, depletion and amortization |
5,223 |
15,394 |
24,543 |
45,945 |
||||||||||||
Impairment of oil and natural gas properties |
— |
181,966 |
48,497 |
282,118 |
||||||||||||
Accretion of asset retirement obligation |
92 |
131 |
286 |
387 |
||||||||||||
General and administrative expense |
3,925 |
4,683 |
15,872 |
13,352 |
||||||||||||
Litigation settlement benefit |
(10,100) |
— |
(10,100) |
— |
||||||||||||
Total expenses |
5,044 |
208,658 |
97,742 |
364,248 |
||||||||||||
INCOME (LOSS) FROM OPERATIONS |
7,959 |
(180,272) |
(57,775) |
(279,562) |
||||||||||||
OTHER INCOME (EXPENSE): |
||||||||||||||||
Interest expense |
(8,178) |
(7,933) |
(26,739) |
(22,430) |
||||||||||||
Investment income and other (expense) |
41 |
4 |
(2) |
10 |
||||||||||||
LOSS BEFORE PROVISION FOR INCOME TAXES |
(178) |
(188,201) |
(84,516) |
(301,982) |
||||||||||||
Provision for income taxes |
— |
— |
— |
— |
||||||||||||
NET LOSS |
(178) |
(188,201) |
(84,516) |
(301,982) |
||||||||||||
Dividends on preferred stock |
(3,618) |
(3,618) |
(10,855) |
(10,855) |
||||||||||||
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
(3,796) |
$ |
(191,819) |
$ |
(95,371) |
$ |
(312,837) |
||||||||
NET LOSS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO COMMON STOCKHOLDERS: |
||||||||||||||||
Basic |
$ |
(0.03) |
$ |
(2.47) |
$ |
(0.92) |
$ |
(4.04) |
||||||||
Diluted |
$ |
(0.03) |
$ |
(2.47) |
$ |
(0.92) |
$ |
(4.04) |
||||||||
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: |
||||||||||||||||
Basic |
129,301,817 |
77,628,120 |
104,125,317 |
77,453,251 |
||||||||||||
Diluted |
129,301,817 |
77,628,120 |
104,125,317 |
77,453,251 |
CONSOLIDATED BALANCE SHEETS |
||||||||
|
|
|||||||
2016 |
2015 |
|||||||
(Unaudited) |
||||||||
(in thousands, except share data) |
||||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ |
46,739 |
$ |
50,074 |
||||
Accounts receivable, net of allowance for doubtful accounts of |
8,476 |
14,302 |
||||||
Commodity derivative contracts |
5,240 |
15,534 |
||||||
Prepaid expenses |
4,694 |
5,056 |
||||||
Total current assets |
65,149 |
84,966 |
||||||
PROPERTY, PLANT AND EQUIPMENT: |
||||||||
Oil and natural gas properties, full cost method of accounting: |
||||||||
Unproved properties, excluded from amortization |
109,267 |
92,609 |
||||||
Proved properties |
1,242,667 |
1,286,373 |
||||||
Total oil and natural gas properties |
1,351,934 |
1,378,982 |
||||||
Furniture and equipment |
2,615 |
3,068 |
||||||
Total property, plant and equipment |
1,354,549 |
1,382,050 |
||||||
Accumulated depreciation, depletion and amortization |
(1,125,881) |
(1,053,116) |
||||||
Total property, plant and equipment, net |
228,668 |
328,934 |
||||||
OTHER ASSETS: |
||||||||
Commodity derivative contracts |
3,915 |
9,335 |
||||||
Deferred charges, net |
616 |
985 |
||||||
Advances to operators and other assets |
498 |
331 |
||||||
Other |
1,121 |
4,944 |
||||||
Total other assets |
6,150 |
15,595 |
||||||
TOTAL ASSETS |
$ |
299,967 |
$ |
429,495 |
||||
LIABILITIES AND STOCKHOLDERS' DEFICIT |
||||||||
CURRENT LIABILITIES: |
||||||||
Accounts payable |
$ |
4,585 |
$ |
2,029 |
||||
Revenue payable |
5,667 |
5,985 |
||||||
Accrued interest |
10,517 |
3,730 |
||||||
Accrued drilling and operating costs |
5,250 |
2,010 |
||||||
Advances from non-operators |
110 |
167 |
||||||
Commodity derivative contracts |
102 |
— |
||||||
Commodity derivative premium payable |
1,750 |
3,194 |
||||||
Asset retirement obligation |
89 |
89 |
||||||
Other accrued liabilities |
7,296 |
6,764 |
||||||
Total current liabilities |
35,366 |
23,968 |
||||||
LONG-TERM LIABILITIES: |
||||||||
Long-term debt |
418,620 |
516,476 |
||||||
Commodity derivative contracts |
— |
451 |
||||||
Commodity derivative premium payable |
1,427 |
2,788 |
||||||
Asset retirement obligation |
5,626 |
5,997 |
||||||
Total long-term liabilities |
425,673 |
525,712 |
||||||
Commitments and contingencies |
||||||||
STOCKHOLDERS' DEFICIT: |
||||||||
Preferred stock, 40,000,000 shares authorized |
||||||||
Series A Preferred stock, par value |
41 |
41 |
||||||
Series B Preferred stock, par value |
21 |
21 |
||||||
Common stock, par value |
132 |
80 |
||||||
Additional paid-in capital |
626,379 |
571,947 |
||||||
Accumulated deficit |
(787,645) |
(692,274) |
||||||
Total stockholders' deficit |
(161,072) |
(120,185) |
||||||
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT |
$ |
299,967 |
$ |
429,495 |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
For the Nine Months Ended |
||||||||
2016 |
2015 |
|||||||
(in thousands) |
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net loss |
$ |
(84,516) |
$ |
(301,982) |
||||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
Depreciation, depletion and amortization |
24,543 |
45,945 |
||||||
Impairment of oil and natural gas properties |
48,497 |
282,118 |
||||||
Stock-based compensation |
3,145 |
3,927 |
||||||
Mark to market of commodity derivatives contracts: |
||||||||
Total loss (gain) on commodity derivatives contracts |
3,991 |
(19,734) |
||||||
Cash settlements of matured commodity derivatives contracts, net |
10,690 |
17,913 |
||||||
Cash premiums paid for commodity derivatives contracts |
(565) |
(45) |
||||||
Amortization of deferred financing costs |
3,812 |
2,652 |
||||||
Accretion of asset retirement obligation |
286 |
387 |
||||||
Settlement of asset retirement obligation |
(87) |
(80) |
||||||
Loss on sale of furniture and equipment |
97 |
- |
||||||
Changes in operating assets and liabilities: |
||||||||
Accounts receivable |
3,861 |
22,552 |
||||||
Prepaid expenses |
362 |
1,472 |
||||||
Accounts payable and accrued liabilities |
7,656 |
(289) |
||||||
Net cash provided by operating activities |
21,772 |
54,836 |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Development and purchase of oil and natural gas properties |
(43,175) |
(121,074) |
||||||
Reimbursements from (advances to) operators |
211 |
(2,325) |
||||||
Acquisition of oil and natural gas properties - refund |
1,149 |
— |
||||||
Proceeds from sale of oil and natural gas properties |
77,499 |
47,866 |
||||||
Payments to non-operators |
(57) |
(1,820) |
||||||
Proceeds from sale (purchase) of furniture and equipment |
80 |
(51) |
||||||
Net cash provided by (used in) investing activities |
35,707 |
(77,404) |
||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Proceeds from revolving credit facility |
- |
75,000 |
||||||
Repayment of revolving credit facility |
(100,370) |
(40,000) |
||||||
Proceeds from issuance of common stock, net of issuance costs |
44,815 |
— |
||||||
Dividends on preferred stock |
(3,618) |
(10,855) |
||||||
Deferred financing charges |
(930) |
(804) |
||||||
Tax withholding related to restricted stock and performance based unit award vestings |
(711) |
(1,430) |
||||||
Net cash (used in) provided by financing activities |
(60,814) |
21,911 |
||||||
|
(3,335) |
(657) |
||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
50,074 |
11,008 |
||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
46,739 |
$ |
10,351 |
NON-GAAP FINANCIAL INFORMATION AND RECONCILIATION
We use both GAAP and certain non-GAAP financial measures to assess performance. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Our management believes that these non-GAAP measures provide useful supplemental information to investors in order that they may evaluate our financial performance using the same measures as management. These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. A reconciliation is provided below outlining the differences between these non-GAAP measures and their most directly comparable financial measure calculated in accordance with GAAP.
Reconciliation of Net Loss to Net Loss Excluding Special Items: | ||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
(3,796) |
$ |
(191,819) |
$ |
(95,371) |
$ |
(312,837) |
||||||||
SPECIAL ITEMS: |
||||||||||||||||
Losses (gains) related to the change in mark to market value for outstanding commodity derivatives contracts |
3,134 |
(4,511) |
12,974 |
(986) |
||||||||||||
Impairment of oil and natural gas properties |
— |
181,966 |
48,497 |
282,118 |
||||||||||||
Non-recurring general and administrative costs related to acquisition of assets |
71 |
481 |
470 |
481 |
||||||||||||
Non-recurring severance costs related to property divestments |
— |
— |
677 |
— |
||||||||||||
Allowance for bad debt |
— |
— |
1,953 |
— |
||||||||||||
Litigation settlement benefit |
(10,100) |
— |
(10,100) |
— |
||||||||||||
ADJUSTED NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
(10,691) |
$ |
(13,883) |
$ |
(40,900) |
$ |
(31,224) |
||||||||
ADJUSTED NET LOSS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO COMMON STOCKHOLDERS: |
||||||||||||||||
Basic |
$ |
(0.08) |
$ |
(0.18) |
$ |
(0.39) |
$ |
(0.40) |
||||||||
Diluted |
$ |
(0.08) |
$ |
(0.18) |
$ |
(0.39) |
$ |
(0.40) |
||||||||
WEIGHTED AVERAGE SHARES OF COMMON STOCK |
||||||||||||||||
Basic |
129,301,817 |
77,628,120 |
104,125,317 |
77,453,251 |
||||||||||||
Diluted |
129,301,817 |
77,628,120 |
104,125,317 |
77,453,251 |
Reconciliation of Cash Flows before Working Capital Changes |
||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||||||||||
Net loss |
$ |
(178) |
$ |
(188,201) |
$ |
(84,516) |
$ |
(301,982) |
||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||||||||||
Depreciation, depletion and amortization |
5,223 |
15,394 |
24,543 |
45,945 |
||||||||||||
Impairment of oil and natural gas properties |
— |
181,966 |
48,497 |
282,118 |
||||||||||||
Stock-based compensation |
810 |
1,154 |
3,145 |
3,927 |
||||||||||||
Mark to market of commodity derivatives contracts: |
||||||||||||||||
Total loss (gain) on commodity derivatives contracts |
1,498 |
(11,301) |
3,991 |
(19,734) |
||||||||||||
Cash settlements of matured commodity derivatives contracts, net |
1,109 |
6,505 |
10,690 |
17,913 |
||||||||||||
Cash premiums paid for commodity derivatives contracts |
— |
— |
(565) |
(45) |
||||||||||||
Amortization of deferred financing costs |
987 |
916 |
3,812 |
2,652 |
||||||||||||
Accretion of asset retirement obligation |
92 |
131 |
286 |
387 |
||||||||||||
Settlement of asset retirement obligation |
(87) |
— |
(87) |
(80) |
||||||||||||
Loss on sale of assets |
— |
— |
97 |
— |
||||||||||||
Cash flows from operations before working capital changes |
9,454 |
6,564 |
9,893 |
31,101 |
||||||||||||
Dividends on preferred stock |
— |
(3,618) |
(3,618) |
(10,855) |
||||||||||||
Non-recurring general and administrative costs related to acquisition of assets |
71 |
481 |
470 |
481 |
||||||||||||
Non-recurring severance costs related to property divestments |
— |
— |
677 |
— |
||||||||||||
Allowance for bad debt |
— |
— |
1,953 |
— |
||||||||||||
Litigation settlement benefit |
(10,100) |
— |
(10,100) |
— |
||||||||||||
Adjusted cash flows from operations |
$ |
(575) |
$ |
3,427 |
$ |
(725) |
$ |
20,727 |
Reconciliation of Net Loss to Adjusted Earnings Before Interest, Income Taxes, Depreciation, Depletion |
||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS |
$ |
(3,796) |
$ |
(191,819) |
$ |
(95,371) |
$ |
(312,837) |
||||||||
Interest expense |
8,178 |
7,933 |
26,739 |
22,430 |
||||||||||||
Depreciation, depletion and amortization |
5,223 |
15,394 |
24,543 |
45,945 |
||||||||||||
Impairment of oil and natural gas properties |
— |
181,966 |
48,497 |
282,118 |
||||||||||||
EBITDA |
9,605 |
13,474 |
4,408 |
37,656 |
||||||||||||
Dividends on preferred stock |
3,618 |
3,618 |
10,855 |
10,855 |
||||||||||||
Accretion of asset retirement obligation |
92 |
131 |
286 |
387 |
||||||||||||
Losses (gains) related to the change in mark to market value for outstanding commodity derivatives contracts |
3,134 |
(4,511) |
12,974 |
(986) |
||||||||||||
Non-cash stock compensation expense |
810 |
1,154 |
3,145 |
3,927 |
||||||||||||
Investment income and other |
(41) |
(4) |
2 |
(10) |
||||||||||||
Non-recurring general and administrative costs related to acquisition of assets |
71 |
481 |
470 |
481 |
||||||||||||
Non-recurring severance costs related to property divestments |
— |
— |
677 |
— |
||||||||||||
Allowance for bad debt |
— |
— |
1,953 |
— |
||||||||||||
Litigation settlement benefit |
(10,100) |
— |
(10,100) |
— |
||||||||||||
ADJUSTED EBITDA |
$ |
7,189 |
$ |
14,343 |
$ |
24,670 |
$ |
52,310 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/gastar-exploration-announces-third-quarter-2016-results-300357130.html
SOURCE
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