Harvest Natural Resources Announces 2011 Third Quarter Results
HOUSTON, Nov. 9, 2011 /PRNewswire/ -- Harvest Natural Resources, Inc. (NYSE: HNR) today announced 2011 third quarter earnings and provided an operational update.
Harvest reported third quarter earnings of approximately $5.1 million, or $0.14 per diluted share, compared to a loss of $ 5.0 million, or $0.15 per diluted share, for the same period last year. The third quarter results include exploration charges of $1.6 million, or $0.04 per diluted share, and a loss from discontinued operations of $3.5 million, or $0.09 per diluted share, relating to an additional tax charge on the gain from the second quarter sale of the Utah assets. Adjusted for exploration charges and the loss related to discontinued operations, third quarter 2011 earnings would have been $10.2 million, or $0.27 per diluted share.
Petrodelta reported earnings during the third quarter of $57.0 million, $18.2 million net to Harvest's 32 percent interest, under International Financial Reporting Standards (IFRS). After adjustments to Petrodelta's IFRS earnings, primarily to conform to U.S. GAAP, Harvest's 32 percent share of Petrodelta's earnings was $15.7 million.
Highlights for the third quarter of 2011 include:
Venezuela
- Oil production from Petrodelta averaged 32,824 barrels of oil per day (BOPD), an increase of 36 percent over the same period in 2010. The current production rate from Petrodelta is approximately 32,500 BOPD;
- During the three months ended September 30, 2011, Petrodelta drilled and completed two development wells and one water injection well;
- Currently, Petrodelta is operating three drilling rigs in the El Salto, Temblador and Uracoa fields and two workover rigs;
Indonesia
- Drilled second exploration well, Karama-1 (KD-1), to approximately 11,800 feet and logged.
- Logging across Lower Miocene oil shows indicate poor reservoir quality sands.
- After setting a liner at the present depth, the well will be deepened and logged as a Harvest exclusive operation to a total depth of 14,400 feet;
Gabon
- Completed activities on the DRM-1 well resulting in Gamba and Dentale pre-salt oil discovery;
- Initiated reservoir characterization and conceptual engineering studies to determine the forward plan for the Dussafu block;
- Commenced 3-D seismic acquisition in a joint program with a third party on October 23, 2011. Up to 540 square kilometers of seismic could be acquired if environmental conditions permit;
Oman
- Spud the Mafraq South-A (MFS-A) exploration well on October 29, 2011, the first of a two-well exploratory drilling program utilizing the MB Petroleum Services LLC Rig #113 drilling unit;
- MFS-A well will test the Mafraq South structure, which is a large salt-supported high with stacked reservoir targets in the Barik, Miqrat and Amin reservoirs;
- Mean prospective resources for the targeted south segment total 1.25 trillion cubic feet (TCF) of gas with 46 million barrels (MMBBLS) of condensate;
- The second exploration well, the Al Ghubar North (AGN-A), is expected to spud during the first quarter of 2012.
Harvest President and Chief Executive Officer, James A. Edmiston, said: “In the third quarter, Harvest continued to make progress across all fronts. Petrodelta again recorded a sequential increase in production in spite of the late commencement of the third drilling rig which impacted volumes in the quarter. Further near-term production growth will depend not only on the rig count, but on further progress being made on the infrastructure side.”
“We continue our geoscience and engineering studies related to our Ruche discovery in Gabon. Further, we are participating in a joint 3-D seismic shoot with an adjoining operator which will provide valuable data inboard of the existing discoveries on the block. Finally, we expect to finalize the 2012 capital program before year end and look to commence further drilling activity in the first half of the year depending on rig availability.”
“In Indonesia, the KD-1 well in the Karama sub-basin has thus far failed to find commercial hydrocarbons in the secondary Miocene section. However, it is important to note that the well did find oil in poor reservoir quality sands in the early Miocene. Harvest is commencing deepening of the well to approximately 14,400 feet at its sole risk to further explore the KD structure in hopes of encountering Eocene age sediments.”
“Finally, our MFS-A well in Oman spud ahead of schedule and continues to progress ahead of the drilling curve. We expect to announce results of this well, as well as the results of the KD-1 deepening, before year-end.”
Venezuela
During the three months ended September 30, 2011, Petrodelta produced approximately 3.0 MMBBLS of oil and sold 0.6 billion cubic feet (BCF) of natural gas; the average daily oil production was 32,824 BOPD, an increase of 36 percent over the same period in 2010 and an increase of 7 percent over the previous quarter. Cash from Operations for the quarter was $56 million, or $26.80 per barrel of oil equivalent, an increase of 37 percent in Cash from Operations over the same period one year ago. Average price for the quarter was $100.62 per barrel, an increase of 35 percent over the same period one year ago.
During the third quarter of 2011, Petrodelta operated two drilling rigs and drilled and completed three wells, two of which were development wells drilled in the Uracoa and El Salto fields and one water injection well drilled in the El Salto field. Currently, Petrodelta is operating three drilling rigs and two workover rigs.
Petrodelta is continuing additional infrastructure enhancement projects in El Salto and Temblador.
EXPLORATION DRILLING ACTIVITIES
Indonesia – Budong-Budong PSC
The second exploratory well on the Budong PSC, the KD-1, spud on June 20, 2011. The KD-1 is located approximately 50 miles south of the Lariang-1 (LG-1). The KD-1 well is being drilled to test a thrusted anticline with stacked Miocene and Eocene targets. The well was initially drilled to a depth of 9,633 feet. Upon running in the hole after changing drill bits, the drill string became stuck at a depth of 8,390 feet. After multiple attempts to break free, the operator severed the drill string, set a cement plug at 7,347 feet and sidetracked the well. The well was sidetracked and has been drilled to a total depth of 11,800 feet and logged. The evaluation of cuttings, logs and sidewall cores demonstrate the presence of oil over a 200 feet low permeability and low porosity clastic section.
Plans are to drill ahead, as a Harvest exclusive operation, to a final total depth of approximately 14,400 feet to explore for the main Eocene objective, which has not yet been encountered in the well. These Eocene sands are considered more prospective as the depositional environment differs from the aforementioned Miocene sands.
The remaining work commitment for the current exploration phase on the Budong PSC is for geological and geophysical work to be completed in 2012 at a minimum of $0.5 million ($0.3 million net to our 64.4 percent interest).
Harvest owns a 64.4 percent non-operated working interest in the Budong-Budong Block PSC.
Gabon West Africa
Dussafu Project - Gabon (Dussafu PSC)
Operation activities during the three months ended September 30, 2011, included completion of drilling and appraisal activities of the Dussafu Ruche Marin-1 (DRM-1). The DRM-1 has been suspended pending further exploration and development activities. Reservoir and concept engineering studies have started with the aim of evaluating the commerciality of the discovered oil in Ruche and the optimum development options for the block. The DRM-1 information is also being used to refine the 3-D seismic depth model and improve our understanding for predicting the Gamba structure under the salt and defining potential resources in the nearby satellite structures for future drilling in 2012.
The partners in the Dussafu PSC began a 3-D seismic acquisition in a joint program. The program is operated by a third party, commenced on October 23, 2011, and is expected to be completed by mid-November 2011. If environmental conditions permit, up to 540 square kilometers of 3-D seismic could be acquired within the Dussafu PSC. The data is being acquired in an area between the existing 3-D surveys, where Harvest shot 2-D seismic in 2008, to define exploration targets within the pre-salt section. A seismic test line using the latest acquisition technology will be acquired over the Ruche discovery to see if the sub-salt image can be improved over the current data acquired in 1994.
Harvest operates the Dussafu PSC, holding a 66.667 percent interest.
Oman Block 64 EPSA
On October 29, 2011, Harvest spud the Mafraq South-A (MFS-A) exploration well on the Qarn Alam Block 64 onshore Oman. This is the first of a two-well exploratory program utilizing the MB Petroleum Services LLC Rig #113 drilling unit to explore for non-associated gas.
Mafraq is a large salt-supported high with stacked reservoir targets in the Barik, Miqrat and Amin reservoirs, in both the footwall and hanging wall fault blocks comprising four segments (north, west, south and east). The MFS-A well will test the Mafraq South fault block, which has mean prospective resources of 1.25 TCF of gas with 46 MMBBLS of condensate. In the event of success the additional fault bounded segments contain further potential. Mean prospective resources of the entire Greater Mafraq fault blocks is approximately 2.5 TCF of gas and 93 MMBBLS of condensate, with an upside of 4.3 TCF of gas and 169 MMBBLS of condensate. The geological chance of success for a discovery in the Barik at Mafraq South is estimated to be 28 percent. The MFS-A well will be drilled to a total vertical depth of approximately 12,000 feet to test coincident fault bounded dip closure at all three reservoirs. The dry hole cost for the well is estimated to be $8.45 million.
The second exploratory well, the Al Ghubar North (AGN-A), is projected to spud during the first quarter of 2012. This structure is a northeast-southwest trending fault block with stacked reservoir targets in the Barik, Miqrat and Amin Formations. Mean prospective resources of 960 BCF of gas and 54 MMBBLS of condensate in the Barik and 241 BCF of gas in the Miqrat have been calculated for the Al Ghubar North segment. The well will be drilled to approximately 10,300 feet to test coincident fault bounded dip closure at the three reservoir levels. The geological chance of success for a discovery in the Barik is estimated to be 23 percent. The dry hole cost for the well is estimated to be $8.11 million.
Thirteen prospects and leads have been identified in the license with combined mean prospective resources of 8.9 TCF of gas and 350 MMBBLS of condensate.
Harvest operates the Block 64 EPSA, holding an 80 percent interest.
Non-GAAP Financial Measures
In this press release, Petrodelta's EBITDA disclosure is not presented in accordance with accounting principals generally accepted in the United States (GAAP) and Petrodelta's financials are not intended to be used in lieu of GAAP presentations of net income or cash flows from operating activities. EBITDA is presented because we believe it provides additional information with respect to both the performance of our fundamental business activities as well as our ability to meet our future capital expenditures and working capital requirements. We also believe that financial analysts commonly use EBITDA to analyze Petrodelta's performance. Although we present selected items that we consider in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates and numerous other factors. These types of variations are not separately identified in this release, but will be discussed, as applicable, in management's discussion and analysis of operating results in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.
A reconciliation of EBITDA to net income and cash flows from operating activities for the periods presented is included in the tables attached to this release.
Conference call
Harvest will hold a conference call at 10:00 a.m. CST on Wednesday, November 9, 2011, during which management will discuss Harvest's 2011 third quarter results. The conference leader will be James A. Edmiston, President and Chief Executive Officer. To access the conference call, dial 719-325-2118 or 888-378-4380, five to ten minutes prior to the start time. At that time you will be asked to provide the conference number, which is 8693604. A recording of the conference call will also be available for replay at 719-457-0820, passcode 8693604, through November 14, 2011.
The conference call will also be transmitted over the internet through the Company's website at www.harvestnr.com. To listen to the live webcast, enter the website fifteen minutes before the call to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay of the webcast will be available beginning shortly after the call and will remain on the website for approximately 90 days.
About Harvest Natural Resources:
Harvest Natural Resources, Inc., headquartered in Houston, Texas, is an independent energy company with principal operations in Venezuela, exploration assets in Indonesia, West Africa, China and Oman and business development offices in Singapore and the United Kingdom. For more information visit the Company's website at www.harvestnr.com.
CONTACT:
Stephen C. Haynes
Vice President, Chief Financial Officer
(281) 899-5716
This press release may contain projections and other 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. They include estimates and timing of expected oil and gas production, oil and gas reserve projections of future oil pricing, future expenses, planned capital expenditures, anticipated cash flow and our business strategy. All statements other than statements of historical facts may constitute forward-looking statements. Although Harvest believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from Harvest's expectations as a result of factors discussed in Harvest's 2010 Annual Report on Form 10-K and other public filings.
Harvest may use certain terms such as resource base, contingent resources, prospective resources, probable reserves, possible reserves, non-proved reserves or other descriptions of volumes of reserves. These estimates are by their nature more speculative than estimates of proved reserves and accordingly, are subject to substantially greater risk of being actually realized by the Company.
HARVEST NATURAL RESOURCES, INC. |
||||||
CONSOLIDATED BALANCE SHEETS |
||||||
(in thousands, unaudited) |
||||||
September 30, |
December 31, |
|||||
2011 |
2010 |
|||||
ASSETS: |
||||||
CURRENT ASSETS: |
||||||
Cash and cash equivalents |
$ 98,044 |
$ 58,703 |
||||
Accounts and notes receivable, net |
||||||
Oil and gas revenue receivable |
- |
1,907 |
||||
Dividend receivable - equity affiliate |
12,200 |
- |
||||
Joint interest and other |
10,288 |
2,325 |
||||
Notes receivable |
3,335 |
3,420 |
||||
Advances to equity affiliate |
2,288 |
1,706 |
||||
Assets held for sale |
- |
88,774 |
||||
Prepaid expenses and other |
2,463 |
4,793 |
||||
Total current assets |
128,618 |
161,628 |
||||
OTHER ASSETS |
2,336 |
2,477 |
||||
INVESTMENT IN EQUITY AFFILIATES |
329,964 |
287,933 |
||||
PROPERTY AND EQUIPMENT, net |
91,730 |
36,206 |
||||
TOTAL ASSETS |
$ 552,648 |
$ 488,244 |
||||
LIABILITIES AND EQUITY: |
||||||
CURRENT LIABILITIES: |
||||||
Accounts payable, trade and other |
$ 9,763 |
$ 3,205 |
||||
Accounts payable - carry obligation |
3,596 |
8,395 |
||||
Accrued expenses |
15,436 |
15,087 |
||||
Liabilities held for sale |
- |
663 |
||||
Accrued Interest |
220 |
896 |
||||
Income taxes payable |
5,858 |
72 |
||||
Total current liabilities |
34,873 |
28,318 |
||||
OTHER LONG-TERM LIABILITIES |
958 |
1,834 |
||||
LONG-TERM DEBT |
32,000 |
81,237 |
||||
COMMITMENTS AND CONTINGENCIES |
- |
- |
||||
EQUITY: |
||||||
STOCKHOLDERS' EQUITY: |
||||||
Common stock and paid-in capital |
232,615 |
230,763 |
||||
Retained earnings |
237,525 |
141,584 |
||||
Treasury stock |
(66,104) |
(65,543) |
||||
Total Harvest stockholders' equity |
404,036 |
306,804 |
||||
Noncontrolling Interest |
80,781 |
70,051 |
||||
Total Equity |
484,817 |
376,855 |
||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 552,648 |
$ 488,244 |
||||
HARVEST NATURAL RESOURCES, INC. |
|||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
(in thousands except per share amounts, unaudited) |
|||||
Three Months Ended September 30, |
|||||
2011 |
2010 |
||||
EXPENSES: |
|||||
Depreciation and amortization |
$ 111 |
$ 119 |
|||
Exploration expense |
1,575 |
2,592 |
|||
General and administrative |
4,041 |
6,620 |
|||
Taxes other than on income |
250 |
218 |
|||
5,977 |
9,549 |
||||
LOSS FROM OPERATIONS |
(5,977) |
(9,549) |
|||
OTHER NON-OPERATING INCOME (EXPENSE) |
|||||
Investment earnings and other |
159 |
123 |
|||
Interest expense |
(806) |
(217) |
|||
Loss on extinguishment of debt |
- |
- |
|||
Other non-operating expenses |
(316) |
- |
|||
Loss on exchange rates |
(43) |
2 |
|||
(1,006) |
(92) |
||||
LOSS FROM CONSOLIDATED COMPANIES CONTINUING OPERATIONS |
|||||
BEFORE INCOME TAXES |
(6,983) |
(9,641) |
|||
Income tax expense (benefit) |
226 |
699 |
|||
LOSS FROM CONSOLIDATED COMPANIES CONTINUING OPERATIONS |
(7,209) |
(10,340) |
|||
Net income from unconsolidated equity affiliates |
19,613 |
6,148 |
|||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS |
12,404 |
(4,192) |
|||
DISCONTINUED OPERATIONS |
|||||
Income from discontinued operations |
- |
390 |
|||
Gain on sale of assets |
36 |
- |
|||
Income tax expense on gain |
(3,500) |
- |
|||
Income (loss) from discontinued operations |
(3,464) |
390 |
|||
NET INCOME (LOSS) |
8,940 |
(3,802) |
|||
Less: Net Income Attributable to Noncontrolling Interest |
3,819 |
1,189 |
|||
NET INCOME (LOSS) ATTRIBUTABLE TO HARVEST |
$ 5,121 |
$ (4,991) |
|||
Three months Ended |
|||||
September 30, 2011 |
September 30, 2010 |
||||
NET INCOME (LOSS) ATTRIBUTABLE TO HARVEST PER COMMON SHARE: |
Basic |
Dilutive |
Basic |
Dilutive |
|
Income (loss) from continuing operations |
8,585 |
8,585 |
(5,381) |
(5,381) |
|
Discontinued operations |
(3,464) |
(3,464) |
390 |
390 |
|
Net income (loss) attributable to Harvest |
5,121 |
5,121 |
(4,991) |
(4,991) |
|
Weighted average common shares outstanding |
34,174 |
34,174 |
33,596 |
33,596 |
|
Effect of dilutive shares |
2,403 |
- |
- |
||
Weighted average common shares including dilutive effect |
34,174 |
36,577 |
33,596 |
33,596 |
|
Per Share: |
|||||
Income (loss) from continuing operations |
$ 0.25 |
$ 0.23 |
$ (0.17) |
$ (0.17) |
|
Discontinued operations |
$ (0.10) |
$ (0.09) |
$ 0.02 |
$ 0.02 |
|
Net income (loss) attributable to Harvest |
$ 0.15 |
$ 0.14 |
$ (0.15) |
$ (0.15) |
|
HARVEST NATURAL RESOURCES, INC. |
|||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
(in thousands except per share amounts, unaudited) |
|||||
Nine Months Ended September 30, |
|||||
2011 |
2010 |
||||
EXPENSES: |
|||||
Depreciation and amortization |
$ 354 |
$ 362 |
|||
Exploration expense |
7,414 |
5,329 |
|||
General and administrative |
17,109 |
17,466 |
|||
Taxes other than on income |
906 |
716 |
|||
25,783 |
23,873 |
||||
LOSS FROM OPERATIONS |
(25,783) |
(23,873) |
|||
OTHER NON-OPERATING INCOME (EXPENSE) |
|||||
Investment earnings and other |
544 |
394 |
|||
Interest expense |
(4,722) |
(1,321) |
|||
Loss on extinguishment of debt |
(9,682) |
- |
|||
Other non-operating expenses |
(991) |
- |
|||
Loss on exchange rates |
(86) |
(1,549) |
|||
(14,937) |
(2,476) |
||||
LOSS FROM CONSOLIDATED COMPANIES CONTINUING OPERATIONS |
|||||
BEFORE INCOME TAXES |
(40,720) |
(26,349) |
|||
Income tax expense (benefit) |
708 |
832 |
|||
LOSS FROM CONSOLIDATED COMPANIES CONTINUING OPERATIONS |
(41,428) |
(27,181) |
|||
Net income from unconsolidated equity affiliates |
55,616 |
53,430 |
|||
NET INCOME FROM CONTINUING OPERATIONS |
14,188 |
26,249 |
|||
DISCONTINUED OPERATIONS |
|||||
Income (loss) from discontinued operations |
(2,786) |
3,208 |
|||
Gain on sale of assets |
103,969 |
- |
|||
Income tax expense on gain |
(8,700) |
- |
|||
Income from discontinued operations |
92,483 |
3,208 |
|||
NET INCOME |
106,671 |
29,457 |
|||
Less: Net Income Attributable to Noncontrolling Interest |
10,730 |
10,154 |
|||
NET INCOME ATTRIBUTABLE TO HARVEST |
$ 95,941 |
$ 19,303 |
|||
Nine Months Ended |
|||||
September 30, 2011 |
September 30, 2010 |
||||
NET INCOME ATTRIBUTABLE TO HARVEST PER COMMON SHARE: |
Basic |
Dilutive |
Basic |
Dilutive |
|
Income from continuing operations |
3,458 |
3,458 |
16,095 |
16,095 |
|
Discontinued operations |
92,483 |
92,483 |
3,208 |
3,208 |
|
Net income attributable to Harvest |
95,941 |
95,941 |
19,303 |
19,303 |
|
Weighted average common shares outstanding |
34,053 |
34,053 |
33,424 |
33,424 |
|
Effect of dilutive shares |
- |
5,592 |
- |
2,997 |
|
Weighted average common shares including dilutive effect |
34,053 |
39,645 |
33,424 |
36,421 |
|
Per Share: |
|||||
Income from continuing operations |
$ 0.10 |
$ 0.09 |
$ 0.47 |
$ 0.43 |
|
Discontinued operations |
$ 2.72 |
$ 2.33 |
$ 0.11 |
$ 0.10 |
|
Net income attributable to Harvest |
$ 2.82 |
$ 2.42 |
$ 0.58 |
$ 0.53 |
|
HARVEST NATURAL RESOURCES, INC. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(in thousands, unaudited) |
||||||||
Nine Months Ended September 30, |
||||||||
2011 |
2010 |
|||||||
Cash Flows From Operating Activities: |
||||||||
Net income |
$ 106,671 |
$ 29,457 |
||||||
Adjustments to reconcile net income to net cash |
||||||||
used in operating activities: |
||||||||
Depletion, depreciation and amortization |
1,164 |
2,566 |
||||||
Impairment of long-lived assets |
4,707 |
- |
||||||
Amortization of debt financing costs |
753 |
552 |
||||||
Amortization of discount on debt |
816 |
- |
||||||
Gain on sale of property and equipment |
(103,969) |
- |
||||||
Loss on early extinguishment of debt |
7,533 |
- |
||||||
Net income from unconsolidated equity affiliate |
(55,616) |
(53,430) |
||||||
Share-based compensation-related charges |
3,659 |
3,037 |
||||||
Changes in operating assets and liabilities: |
||||||||
Accounts and notes receivable |
(5,971) |
4,365 |
||||||
Advances to equity affiliate |
(582) |
2,952 |
||||||
Prepaid expenses and other |
2,330 |
(267) |
||||||
Accounts payable |
6,558 |
301 |
||||||
Accrued expenses |
(1,533) |
3,168 |
||||||
Accrued Interest |
(1,269) |
(5,345) |
||||||
Other liabilities |
(877) |
- |
||||||
Income taxes payable |
5,786 |
(213) |
||||||
Net Cash Used In Operating Activities |
(29,840) |
(12,857) |
||||||
Cash Flows From Investing Activities: |
||||||||
Proceeds from sale of property and equipment |
217,833 |
- |
||||||
Additions of property and equipment |
(58,474) |
(10,041) |
||||||
Additions to assets held for sale |
(31,422) |
(24,578) |
||||||
Proceeds from sale of equity affiliate |
1,385 |
- |
||||||
Increase in restricted cash |
- |
(1,000) |
||||||
Investment costs |
(876) |
(203) |
||||||
Net Cash Provided by (Used In) Investing Activities |
128,446 |
(35,822) |
||||||
Cash Flows From Financing Activities: |
||||||||
Net proceeds from issuances of common stock |
924 |
494 |
||||||
Proceeds from issuance of long-term debt |
- |
32,000 |
||||||
Payments of long-term debt |
(60,000) |
- |
||||||
Financing costs |
(189) |
(2,822) |
||||||
Net Cash Provided by (Used In) Financing Activities |
(59,265) |
29,672 |
||||||
Net Increase (Decrease) in Cash |
39,341 |
(19,007) |
||||||
Cash and Cash Equivalents at Beginning of Period |
58,703 |
32,317 |
||||||
Cash and Cash Equivalents at End of Period |
$ 98,044 |
$ 13,310 |
||||||
PETRODELTA, S. A. |
|||||
STATEMENTS OF OPERATIONS |
|||||
(in thousands except per BOE and per share amounts, unaudited) |
|||||
Three Months Ended |
Three Months Ended |
||||
Barrels of oil sold |
3,031 |
2,219 |
|||
MCF of gas sold |
594 |
457 |
|||
Total BOE |
3,130 |
2,295 |
|||
Total BOE - Net of 33% Royalty |
2,087 |
1,530 |
|||
Average price/barrel |
$ 100.62 |
$65.31 |
|||
Average price/mcf |
$1.54 |
$1.54 |
|||
$ |
$/BOE - net |
$ |
$/BOE - net |
||
REVENUES: |
|||||
Oil sales |
$ 304,969 |
144,917 |
|||
Gas sales |
917 |
705 |
|||
Royalties |
(98,013) |
(49,519) |
|||
207,873 |
99.61 |
96,103 |
62.81 |
||
EXPENSES: |
|||||
Operating expenses |
20,027 |
9.60 |
7,274 |
4.75 |
|
Workovers |
4,856 |
2.33 |
1,637 |
1.07 |
|
Depletion, depreciation, amortization |
15,687 |
7.52 |
11,146 |
7.29 |
|
General and administrative |
3,310 |
1.59 |
2,064 |
1.35 |
|
Windfall profits tax |
69,424 |
33.26 |
- |
- |
|
113,304 |
54.30 |
22,121 |
14.46 |
||
INCOME FROM OPERATIONS |
94,569 |
45.31 |
73,982 |
48.35 |
|
Gain on exchange rate |
- |
- |
(136) |
(0.09) |
|
Interest earnings and other |
161 |
0.08 |
5 |
- |
|
Interest expense |
(2,107) |
(1.01) |
(1,302) |
(0.85) |
|
Income before income tax |
92,623 |
44.38 |
72,549 |
47.41 |
|
Current income tax expense |
52,319 |
25.07 |
56,660 |
37.03 |
|
Deferred income tax expense (benefit) |
(16,709) |
(8.01) |
18,785 |
12.27 |
|
NET INCOME (LOSS) |
57,013 |
27.32 |
(2,896) |
(1.89) |
|
Adjustment to reconcile to reported Net Income (loss) from |
- |
||||
Unconsolidated Equity Affiliate: |
|||||
Deferred income tax (benefit) expense |
7,096 |
(18,953) |
|||
Net income equity affiliate |
49,917 |
16,057 |
|||
Equity interest in unconsolidated equity affiliate |
40% |
40% |
|||
Income before amortization of excess basis in equity affiliate |
19,967 |
6,423 |
|||
Amortization of excess basis in equity affiliate |
(496) |
(364) |
|||
Conform depletion expense to GAAP |
142 |
89 |
|||
Net income from unconsolidated equity affiliate |
$ 19,613 |
$ 6,148 |
|||
Non-GAAP Financial Measures: |
|||||
Reconcile NET INCOME as reported under IFRS to adjusted EBITDA: |
|||||
NET INCOME |
$ 57,013 |
27.32 |
$ (2,896) |
(1.89) |
|
Add back non-cash items: |
|||||
Depletion, depreciation and amortization |
15,687 |
7.52 |
11,146 |
7.29 |
|
Deferred income tax expense (benefit) |
(16,709) |
(8.01) |
18,785 |
12.27 |
|
Special Charges, net of tax |
- |
- |
13,810 |
9.03 |
|
CASH FROM OPERATIONS |
55,991 |
26.83 |
40,845 |
26.70 |
|
Investment earnings and other |
(161) |
(0.08) |
(5) |
- |
|
Interest expense |
2,107 |
1.01 |
1,302 |
0.85 |
|
Current income tax expense |
52,319 |
25.07 |
42,918 |
28.04 |
|
Adjusted EBITDA (IFRS) |
|||||
$ 110,256 |
52.83 |
$ 85,060 |
55.59 |
||
PETRODELTA, S. A. |
|||||
STATEMENTS OF OPERATIONS |
|||||
(in thousands except per BOE and per share amounts, unaudited) |
|||||
Nine Months Ended |
Nine Months Ended |
||||
Barrels of oil sold |
8,396 |
6,142 |
|||
MCF of gas sold |
1,504 |
1,780 |
|||
Total BOE |
8,647 |
6,439 |
|||
Total BOE - Net of 33% Royalty |
5,765 |
4,293 |
|||
Average price/barrel |
$97.02 |
$68.77 |
|||
Average price/mcf |
$1.54 |
$1.54 |
|||
$ |
$/BOE - net |
$ |
$/BOE - net |
||
REVENUES: |
|||||
Oil sales |
$ 814,557 |
$ 422,383 |
|||
Gas sales |
2,322 |
2,745 |
|||
Royalty |
(271,542) |
(143,896) |
|||
545,337 |
94.59 |
281,232 |
65.51 |
||
EXPENSES: |
|||||
Operating expenses |
52,993 |
9.19 |
27,949 |
6.51 |
|
Workovers |
18,352 |
3.18 |
1,637 |
0.38 |
|
Depletion, depreciation and amortization |
41,405 |
7.18 |
29,522 |
6.88 |
|
General and administrative |
6,162 |
1.07 |
8,123 |
1.89 |
|
Windfall profits tax |
161,895 |
28.08 |
2,915 |
0.68 |
|
280,807 |
48.70 |
70,146 |
16.34 |
||
INCOME FROM OPERATIONS |
264,530 |
45.89 |
211,086 |
49.17 |
|
Gain on exchange rate |
- |
- |
120,518 |
28.07 |
|
Investment earnings and other |
513 |
0.09 |
2,886 |
0.67 |
|
Interest expense |
(6,525) |
(1.14) |
(3,525) |
(0.82) |
|
Income before income tax |
258,518 |
44.84 |
330,965 |
77.09 |
|
Current income tax expense |
137,280 |
23.81 |
194,736 |
45.36 |
|
Deferred income tax expense (benefit) |
(44,984) |
(7.80) |
66,367 |
15.46 |
|
NET INCOME |
166,222 |
28.83 |
69,862 |
16.27 |
|
Adjustment to reconcile to reported Net Income from |
|||||
Unconsolidated Equity Affiliate: |
|||||
Deferred income tax (benefit) expense |
26,835 |
(66,441) |
|||
Net income equity affiliate |
139,387 |
136,303 |
|||
Equity interest in unconsolidated equity affiliate |
40% |
40% |
|||
Income before amortization of excess basis in equity affiliate |
55,755 |
54,521 |
|||
Amortization of excess basis in equity affiliate |
(1,369) |
(1,020) |
|||
Conform depletion expense to GAAP |
(155) |
(71) |
|||
Net income from unconsolidated equity affiliate |
$ 54,231 |
$ 53,430 |
|||
Non-GAAP Financial Measures: |
|||||
Reconcile NET INCOME as reported under IFRS to adjusted EBITDA: |
|||||
NET INCOME |
$ 166,222 |
28.83 |
$ 69,862 |
16.27 |
|
Add back non-cash items: |
|||||
Depletion, depreciation and amortization |
41,405 |
7.18 |
29,522 |
6.88 |
|
Deferred income tax expense (benefit) |
(44,984) |
(7.80) |
102,367 |
23.85 |
|
Special Charges, net of tax |
- |
- |
(52,433) |
(12.21) |
|
CASH FROM OPERATIONS |
162,643 |
28.21 |
149,318 |
34.79 |
|
Investment earnings and other |
(513) |
(0.09) |
(2,886) |
(0.67) |
|
Interest expense |
6,525 |
1.14 |
3,525 |
0.82 |
|
Current income tax expense |
137,280 |
23.81 |
91,552 |
21.33 |
|
Adjusted EBITDA (IFRS) |
$ 305,935 |
53.07 |
$ 241,509 |
56.27 |
|
SOURCE Harvest Natural Resources, Inc.
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