2014

Harvest Natural Resources Announces 2012 Second Quarter Results

HOUSTON, Aug. 9, 2012 /PRNewswire/ -- Harvest Natural Resources, Inc. (NYSE: HNR) today announced 2012 second quarter net income and provided an operational update.

Harvest reported second quarter net income of approximately $8.2 million, or $0.20 per diluted share, compared to earnings of $89.8 million, or $2.23 per diluted share, for the same period last year.  The second quarter 2012 results included exploration charges of $1.3 million, or $0.03 per diluted share, and $1.5 million, or $0.04 per diluted share, for transaction costs incurred related to the pending sale of our 32 percent interest in Petrodelta.  Additionally during the second quarter, Harvest incurred $1.6 million, or $0.04 per diluted share, in discontinued operations related to the settlement of all outstanding claims with a private third-party related to the Antelope project.  Excluding the exploration charges, transaction costs and settlement charges in discontinued operations, and net of the related tax benefits of $0.8 million, or $0.02 per diluted share, second quarter 2012 earnings would have been $11.8 million, or $0.29 per diluted share. 

The second quarter 2011 results included the sale of our Utah properties for a net gain of $98.7 million

Petrodelta reported net income during the second quarter of $72.0 million, as reported under International Financial Report Standards (IFRS), compared to $47.3 million for the same period in 2011.  Harvest's 32 percent share of Petrodelta's net income for the second quarter as reported under U.S. GAAP was $18.1 million, compared to $14.6 million, for the same period one year ago.

Highlights for the second quarter of 2012 include:

Venezuela

  • During the second quarter of 2012, Petrodelta drilled and completed two wells and sold approximately 3.31 million barrels of oil (MMBO) for a daily average of approximately 36,418 barrels of oil per day (BOPD), an increase of 19 percent over the same period in 2011;
  • The two new wells were successfully drilled in the El Salto field with current total production from this field of approximately 16,000 BOPD;
  • The ELS-45 was completed in the Lower Morichal formation producing 3,500 BOPD of 9.5 API oil, representing the highest well producing rate to date in El Salto;
  • Petrodelta's current production rate is approximately 39,000 BOPD;
  • Facility expansion work at the El Salto and Temblador fields is underway;
  • A third drilling rig, the new modular rig PDV-48, was assigned by PDVSA to Petrodelta and is on location in the Isleno field with the start of operations expected in September 2012;
  • 2012 projected average production rate of 40,300 BOPD with capital expenditures projected at $300 million;
  • On June 21, 2012, signed a Share Purchase Agreement (SPA) with PT Pertamina (Persero), the national oil company of Indonesia, to sell all of Harvest's interests in Venezuela for $725.0 million in an all-cash transaction.

Gabon

  • The Gabon government has agreed to extend the third exploration phase to four years until May 27, 2016;
  • Preparing for October 2012 spud of the Tortue prospect targeting stacked pre-salt reservoirs with the Scarabeo 3 semi-submersible drilling unit;
  • The Central 3-D Pre-Stack Time Migration (PSTM) was completed in July 2012.

Indonesia

  • License commitments fulfilled through January 16, 2013, and planning to request a four year extension;
  • Prospects and leads being matured in the Lariang and Karama Basins.

Oman

  • Work commitment fulfilled through March 2013;
  • Prospects and leads being matured for possible 2013 exploration well.

VENEZUELA

During the three months ended June 30, 2012, Petrodelta sold approximately 3.31 MMBO for a daily average of 36,418 BOPD, an increase of 19 percent over the same period in 2011 and 11 percent higher than the previous quarter.  Petrodelta sold 0.49 billion cubic feet (BCF) of natural gas for a daily average of 5.4 million cubic feet per day (MMCFD), an increase of 12 percent over the same period in 2011, and a decrease of 22 percent from the previous quarter.  Petrodelta's current production rate is approximately 39,000 BOPD.

During the second quarter of 2012, Petrodelta drilled and completed two development wells in the El Salto field.  The ELS-45 is a horizontal producer in the Lower Morichal formation, which contains the bulk of the oil in place in the El Salto field.  It is currently producing 3,500 BOPD of 9.5 API oil and no water, representing the highest producing well rate to date in El Salto.  Currently, Petrodelta is operating three drilling rigs and one workover rig and is continuing with infrastructure enhancement projects in the El Salto and Temblador fields.

A third drilling rig, the new modular rig PDV-48 is rigging up in the Isleno field and is expected to begin drilling operations in September 2012.  The current production from the Isleno field is approximately 1,900 BOPD and is being trucked to the Uracoa field.  Plans are underway to build a pipeline connection between the Isleno field and the main production facility at the Uracoa field.

Petrodelta's production for 2012 is projected to average approximately 40,300 BOPD.  The 2012 Petrodelta capital budget is expected to be approximately $300 million with a significant portion of that total related to infrastructure costs to support the further development of the Temblador and El Salto fields.  Petrodelta expects to drill 22 oil wells and two water injector wells, and is anticipating finishing this year with five rigs operating with three more new rigs arriving at the end of the third quarter.  The current plan is to retire one of the older rigs upon the arrival of the three new rigs so that four of the anticipated five drilling rigs will be new modular rigs that are fit-for-purpose for Petrodelta's operations.

The average sales price for crude oil produced during the quarter was approximately $96.10 per barrel compared to $101.72 per barrel during the second quarter of 2011.

On June 21, 2012, Harvest announced that its wholly-owned subsidiary, HNR Energia B.V., had signed a definitive SPA with PT Pertamina (Persero), the national oil company of Indonesia, to sell all of Harvest's interests in Venezuela for $725.0 million in an all-cash transaction.  Net proceeds from the sale are estimated to be approximately $525.0 million after deductions for transaction related costs and taxes. 

The Buyer will purchase Harvest's 32 percent interest in Petrodelta, S.A. by purchasing HNR Energia B.V.'s 80 percent interest in Harvest-Vinccler Dutch Holding B.V.  The effective date of the transaction is January 1, 2012.

The closing of the transaction is subject to, among other things, approval by the Government of the Bolivarian Republic of Venezuela, the Government of Indonesia in its capacity as the Buyer's sole shareholder and a majority of Harvest's stockholders.  If all of the conditions to closing are not satisfied or not waived on or before March 21, 2013, either the Buyer or Harvest may terminate the SPA.  The Boards of Directors of Harvest and Pertamina have each approved the transaction.

EXPLORATION AND OTHER ACTIVITIES

Dussafu Project - Gabon ("Dussafu PSC")

On April 27, 2012, Harvest submitted notification to the Direction Generale Des Hydrocarbures (DGH) of our intent to enter the third exploration phase of the Dussafu PSC with an effective date of May 28, 2012.  As stated in the Dussafu PSC, the third exploration phase of the Dussafu PSC has a $7.0 million ($4.7 million net to our 66.667 percent interest) work commitment over a two year period.  The DGH has agreed to extend the third exploration phase to four years until May 27, 2016.  Harvest paid a $1.0 million bonus ($0.7 million net to Harvest's 66.667 percent interest) to enter the third exploration phase.

Operational activities during the six months ended June 30, 2012, included processing of the 545 square kilometers of seismic which was acquired in the fourth quarter of 2011.  The 3-D Pre-Stack Time Migration (PSTM) was completed in July 2012.  Depth processing and reprocessing of the inboard 3D commenced and is scheduled to be completed in the second quarter of 2013.  Well planning is in progress to drill an exploration well in the fourth quarter of 2012 on the Tortue prospect to target stacked pre-salt Gamba and Dentale reservoirs as well as a secondary post-salt Madiela clastic reservoir.  The prospect has mean unrisked prospective resources of 62 MMBO.

Harvest Dussafu B.V. has secured the use of a semi-submersible drilling unit to drill the Tortue exploration well offshore Gabon.  The drilling unit, the Scarabeo 3, is owned and operated by Saipem S.p.A. and will be mobilized on location to spud the well in mid-October 2012.

Budong-Budong PSC – Indonesia

The license commitments have been fulfilled and the partners are planning to request a four year extension at the end of the initial six year term which expires on January 16, 2013.  Prospects and leads are being matured for both the Lariang and Karama Basins.  An exploration well is being planned for 2013.

Tately Budong-Budong N.V. is the operator of the Budong-Budong Block.  Harvest owns a 64.4 percent working interest in the Budong-Budong PSC.

Oman Block 64 EPSA

All work commitments have been completed and post well studies are being conducted.  A one year extension for the license has been granted until May 2013, at which time Harvest must decide whether to commit to the second phase of the license, which has a three year term and a one well commitment.

The remaining prospects and leads are being reviewed in light of the recent drilling results to mature possible drilling options in 2013.

Harvest has an 80 percent interest in Block 64 onshore Oman.  Block 64 has an area of 3,874 square kilometers and was extracted from a pre-existing block (PDO's Block 6) to accelerate exploration for gas and gas condensate by the Omani Ministry of Oil and Gas.  Harvest is evaluating other opportunities in the region.

Non-GAAP Financial Measures

These measures are included due to the significant nature of Petrodelta's earnings to Harvest.  In this press release, Petrodelta's adjusted EBITDA disclosure is not presented in accordance with accounting principles 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.  Adjusted 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 internally fund our future capital expenditures and working capital requirements.  We also believe that financial analysts commonly use adjusted EBITDA to analyze Petrodelta's performance. 

The Company defines Adjusted EBITDA as net income (loss) before interest expense, investment earnings, current income taxes, and certain non-cash items in the Company's statements of operations, including depreciation, depletion and amortization, accretion of asset retirement obligations, deferred income taxes, certain employee compensation charges and gains or losses from foreign exchange.  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 June 30, 2012.

A reconciliation of adjusted 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. Central Daylight Time on Thursday, August 9, 2012, during which management will discuss Harvest's 2012 second quarter results.  The conference leader will be James A. Edmiston, President and Chief Executive Officer.  To access the conference call, dial 888-256-9128 or 913-312-1472, five to ten minutes prior to the start time.  The conference identification number is 4576497.  A recording of the conference call will also be available for replay at 719-457-0820, passcode 4576497, through August 13, 2012.

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 web site 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 web site for approximately 90 days.

The Company intends to file its second quarter 2012 Form 10-Q with the Securities and Exchange Commission on Thursday, August 9, 2012.  A copy of the Form 10-Q will be available on the Company's website at www.harvestnr.com.

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, timing and certainty of future transactions 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 2011 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)

















June 30,

December 31,





2012

2011







ASSETS:









CURRENT ASSETS:




Cash and cash equivalents

$   28,746

$        58,946


Restricted cash

-

1,200


Accounts and notes receivable, net





Dividend receivable - equity affiliate

12,200

12,200



Joint interest and other

6,315

14,342



Notes receivable

-

3,335


Advances to equity affiliate

2,538

2,388


Deferred income taxes

2,628

2,628


Prepaid expenses and other

1,692

728



Total current assets

54,119

95,767







OTHER ASSETS

5,555

5,427







INVESTMENT IN EQUITY AFFILIATES

384,473

345,054







PROPERTY AND EQUIPMENT, net

71,226

66,799










TOTAL ASSETS

$ 515,373

$      513,047













LIABILITIES AND EQUITY:









CURRENT LIABILITIES:




Accounts payable, trade and other

$     1,044

$          7,381


Accounts payable -  carry obligation

-

3,596


Accrued expenses

8,896

15,247


Accrued Interest

1,008

1,372


Deferred tax liability

4,835

4,835


Income taxes payable

1,251

718


Current portion - long term debt

15,551

-



Total current liabilities

32,585

33,149







OTHER LONG-TERM LIABILITIES

956

908







LONG-TERM DEBT

-

31,535







COMMITMENTS AND CONTINGENCIES

-

-







EQUITY:




STOCKHOLDERS' EQUITY:




Common stock and paid-in capital

256,447

236,598


Retained earnings

200,051

193,283


Treasury stock

(66,145)

(66,104)



Total Harvest stockholders' equity 

390,353

363,777

Noncontrolling Interest

91,479

83,678


Total Equity

481,832

447,455

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 

$ 515,373

$      513,047

 

 

HARVEST NATURAL RESOURCES, INC.



CONSOLIDATED STATEMENTS OF OPERATIONS



(in thousands except per share amounts, unaudited)









Three months Ended June 30,



2012

2011








EXPENSES:





  Depreciation and amortization 

$    105

$      119



  Exploration expense

1,282

4,650



  Dry hole costs

71

-



  General and administrative

6,524

7,049




7,982

11,818



LOSS FROM OPERATIONS

(7,982)

(11,818)








OTHER NON-OPERATING INCOME (EXPENSE)





  Investment earnings and other

80

240



  Interest expense

(34)

(1,704)



  Debt conversion expense

20

-



  Loss on extinguishment of debt

-

(9,682)



  Other non-operating expenses

(1,467)

(244)



  Loss on exchange rates

(48)

(32)




(1,449)

(11,422)



LOSS FROM CONSOLIDATED COMPANIES CONTINUING OPERATIONS BEFORE INCOME TAXES 

 

(9,431)

 

(23,240)



 Income tax expense (benefit)

(426)

260



LOSS FROM CONSOLIDATED COMPANIES CONTINUING OPERATIONS

(9,005)

(23,500)



Net income from unconsolidated equity affiliates

22,661

18,246



NET INCOME (LOSS) FROM CONTINUING OPERATIONS

13,656

(5,254)



DISCONTINUED OPERATIONS





  Income (loss) from discontinued operations

(1,584)

65



  Gain on sale of assets

-

104,348



  Income tax (expense) benefit

595

(5,748)



      Income (loss) from discontinued operations

(989)

98,665



NET INCOME  

12,667

93,411



Less:  Net Income Attributable to Noncontrolling Interest

4,507

3,631



NET INCOME ATTRIBUTABLE TO HARVEST

$ 8,160

$ 89,780









 Three months Ended 


June 30, 2012

June 30, 2011

NET INCOME (LOSS) ATTRIBUTABLE TO HARVEST PER COMMON SHARE:

 Basic 

 Dilutive 

 Basic 

 Dilutive 

   Income (loss) from continuing operations 

9,149

9,149

(8,885)

(8,885)

   Discontinued operations

(989)

(989)

98,665

98,665

        Net income attributable to Harvest

8,160

8,160

89,780

89,780

   Weighted average common shares outstanding

37,375

37,375

34,039

34,039

   Effect of dilutive shares


3,424

-

6,221

        Weighted average common shares including dilutive effect

37,375

40,799

34,039

40,260






Per Share:





   Income (loss) from continuing operations

$   0.25

$     0.22

$ (0.26)

$  (0.22)

   Discontinued operations

$ (0.03)

$   (0.02)

$   2.90

$   2.45

        Net income attributable to Harvest

$   0.22

$     0.20

$   2.64

$   2.23






 

 

HARVEST NATURAL RESOURCES, INC.





CONSOLIDATED STATEMENTS OF OPERATIONS





(in thousands except per share amounts, unaudited)











Six months Ended June 30,




2012

2011








EXPENSES:





  Depreciation and amortization 

$    210

$      243



  Exploration expense

2,725

5,839



  Dry hole costs

5,617

-



  General and administrative

12,366

13,724




20,918

19,806



LOSS FROM OPERATIONS

(20,918)

(19,806)








OTHER NON-OPERATING INCOME (EXPENSE)





  Investment earnings and other

149

385



  Interest expense

(428)

(3,916)



  Debt conversion expense

(2,402)

-



  Loss on extinguishment of debt

-

(9,682)



  Other non-operating expenses

(1,723)

(675)



  Loss on exchange rates

(70)

(43)




(4,474)

(13,931)



LOSS FROM CONSOLIDATED COMPANIES CONTINUING OPERATIONS BEFORE INCOME TAXES 

 

(25,392)

 

(33,737)



 Income tax  expense (benefit)

(1,646)

482



LOSS FROM CONSOLIDATED COMPANIES CONTINUING OPERATIONS

(23,746)

(34,219)



Net income from unconsolidated equity affiliates

39,419

36,740



NET INCOME  FROM CONTINUING OPERATIONS

15,673

2,521



DISCONTINUED OPERATIONS





  Loss from discontinued operations

(1,699)

(3,201)



  Gain (Loss) on sale of assets

-

104,348



  Income tax (expense) benefit

595

(5,748)



      Income (loss) from discontinued operations

(1,104)

95,399



NET INCOME

14,569

97,920



Less:  Net Income Attributable to Noncontrolling Interest

7,801

7,058



NET INCOME  ATTRIBUTABLE TO HARVEST

$ 6,768

$ 90,862









Six Months Ended 


June 30, 2012

June 30, 2011

NET INCOME ATTRIBUTABLE TO HARVEST PER COMMON SHARE:

 Basic 

 Dilutive 

 Basic 

 Dilutive 

   Income (loss) from continuing operations 

7,872

7,872

(4,537)

(4,537)

   Discontinued operations

(1,104)

(1,104)

95,399

95,399

        Net income  attributable to Harvest

6,768

6,768

90,862

90,862

   Weighted average common shares outstanding

36,130

36,130

33,992

33,992

   Effect of dilutive shares

-

1,469

-

6,035

        Weighted average common shares including dilutive effect

36,130

37,599

33,992

40,027






Per Share:





   Income (loss) from continuing operations

$   0.22

$     0.21

$ (0.13)

$  (0.11)

   Discontinued operations

$ (0.03)

$   (0.03)

$   2.80

$   2.38

        Net income attributable to Harvest

$   0.19

$     0.18

$   2.67

$   2.27






 

 

 

HARVEST NATURAL RESOURCES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)









Six months Ended June 30,




2012

2011

Cash Flows From Operating Activities:




Net income

$ 14,569

$   97,920


Adjustments to reconcile net income  to net cash




  used in operating activities:





Depletion, depreciation and amortization

210

1,053



Dry hole costs

5,617

-



Impairment of long-lived assets

-

4,707



Amortization of debt financing costs

726

530



Amortization of discount on debt

-

816



Gain on sale of assets

-

(103,933)



Debt conversion expense

1,939

-



Allowance for account and note receivable

5,180

-



Writeoff of accounts payable, carry obligation

(3,596)

-



Loss on early extinguishment of debt

-

7,533



Net income from unconsolidated equity affiliate

(39,419)

(36,740)



Share-based compensation-related charges

2,124

2,673


Changes in operating assets and liabilities:





Accounts and notes receivable

6,182

(2,887)



Advances to equity affiliate

(150)

(296)



Prepaid expenses and other

(950)

3,061



Accounts payable

(6,337)

8,168



Accrued expenses

(2,177)

(2,469)



Accrued Interest

(971)

(418)



Other liabilities

48

(701)



Income taxes payable

533

6,061



Net Cash Used In Operating Activities

(16,472)

(14,922)

Cash Flows From Investing Activities:




Proceeds from sale of assets

-

217,833


Additions of property and equipment

(14,205)

(28,067)


Additions to assets held for sale

-

(31,742)


Proceeds from sale of equity affiliate

-

1,385


Restricted cash

1,200

(7,323)


Investment costs

(829)

(62)



Net Cash Provided by (Used In) Investing Activities

(13,834)

152,024

Cash Flows From Financing Activities:




Net proceeds from issuances of common stock

273

416


Payments on long term debt

-

(60,000)


Financing costs

(167)

(189)



Net Cash Provided by (Used In) Financing Activities

106

(59,773)



Net Increase (Decrease) in Cash 

(30,200)

77,329

Cash and Cash Equivalents at Beginning of Period

58,946

58,703

Cash and Cash Equivalents at End of Period

$ 28,746

$ 136,032

 

 

PETRODELTA, S. A.

STATEMENTS OF OPERATIONS

(in thousands except per BOE and per share amounts, unaudited)







Three months Ended
June 30, 2012

Three months Ended
June 30, 2011






Barrels of oil sold 

3,314


2,782


MCF of gas sold

494


440


      Total BOE 

3,396


2,855


      Total BOE - Net of 33% Royalty

2,264


1,904







Average price/barrel

$     96.10


$101.72


Average price/mcf

$1.54


$1.54








$

$/BOE - net

$

$/BOE - net

REVENUES:





  Oil sales

$ 318,474


282,975


  Gas sales

762


679


  Royalties

(106,097)


(96,214)



213,139

94.14

187,440

98.45

EXPENSES:





  Operating expenses

20,063

8.86

18,684

9.81

  Workovers

3,149

1.39

7,021

3.69

  Depletion, depreciation, amortization

21,718

9.59

13,231

6.95

  General and administrative

4,944

2.19

3,782

1.99

  Windfall profits tax

74,687

32.99

65,345

34.32


124,561

55.02

108,063

56.76

INCOME FROM OPERATIONS

88,578

39.12

79,377

41.69






Gain on exchange rate

-

-

-


Interest earnings and other

1

-

185

0.09

Interest expense

(2,690)

(1.18)

(3,146)

(1.65)






Income before income tax

85,889

37.94

76,416

40.13






  Current income tax expense

31,268

13.81

31,618

16.60

  Deferred income tax expense (benefit)

(17,394)

(7.68)

(2,513)

(1.32)

NET INCOME

72,015

31.81

47,311

24.85

Adjustment to reconcile to reported Net Income (loss) from

-




    Unconsolidated Equity Affiliate:





          Deferred income tax (benefit) expense

16,258


26


          Net income equity affiliate

55,757


47,285


Equity interest in unconsolidated equity affiliate

40%


40%


Income before amortization of excess basis in equity affiliate

22,303


18,914


    Conform depletion expense to GAAP 

896


(216)


    Amortization of excess basis in equity affiliate  

(538)


(452)


Net income from unconsolidated equity affiliate

$   22,661


$ 18,246







Non-GAAP Financial Measures:










Reconcile NET INCOME as reported under IFRS to adjusted EBITDA:





   NET INCOME

$   72,015

31.81

$ 47,311

24.85

   Add back non-cash items:





      Depletion, depreciation and amortization

21,718

9.59

13,231

6.95

      Deferred income tax expense (benefit)

(17,394)

(7.68)

(2,513)

(1.32)






 CASH FROM OPERATIONS

76,339

33.72

58,029

30.48






      Investment earnings and other

(1)

-

(185)

(0.09)

      Interest expense

2,690

1.18

3,146

1.65

      Current income tax expense

31,268

13.81

31,618

16.60






   Adjusted EBITDA

$ 110,296

48.71

$ 92,608

48.64






   Harvest 32% of Adjusted EBITDA

$   35,295

15.59

$ 29,635

15.56

 

 

 

PETRODELTA, S. A.

STATEMENTS OF OPERATIONS

(in thousands except per BOE and per share amounts, unaudited)







Six months Ended
June 30, 2012

Six months Ended
June 30, 2011






Barrels of oil sold 

6,298


5,365


MCF of gas sold

1,124


910


      Total BOE 

6,485


5,517


      Total BOE - Net of 33% Royalty

4,324


3,678







Average price/barrel

$102.09


$94.98


Average price/mcf

$1.54


$1.54








$

$/BOE - net

$

$/BOE - net

REVENUES:





  Oil sales

$ 642,971


$ 509,588


  Gas sales

1,734


1,405


  Royalty

(213,436)


(173,529)



431,269

99.74

337,464

91.75

EXPENSES:





  Operating expenses

41,644

9.63

32,966

8.96

  Workovers

9,057

2.09

13,496

3.67

  Depletion, depreciation and amortization

39,640

9.17

25,718

6.99

  General and administrative

9,927

2.30

2,852

0.78

  Windfall profits tax

159,425

36.87

92,471

25.14


259,693

60.06

167,503

45.54

INCOME FROM OPERATIONS

171,576

39.68

169,961

46.21






Investment earnings and other

2

-

352

0.09

Interest expense

(4,603)

(1.06)

(4,418)

(1.20)






Income before income tax

166,975

38.62

165,895

45.10






  Current income tax expense

73,338

16.96

84,961

23.10

  Deferred income tax benefit

(30,884)

(7.14)

(28,275)

(7.69)

NET INCOME 

124,521

28.80

109,209

29.69

Adjustment to reconcile to reported Net Income from





    Unconsolidated Equity Affiliate:





          Deferred income tax expense

28,299


17,897


          Net income equity affiliate

96,222


91,312


Equity interest in unconsolidated equity affiliate

40%


40%


Income before amortization of excess basis in equity affiliate

38,489


36,525


    Conform depletion expense to GAAP 

1,957


(297)


    Amortization of excess basis in equity affiliate  

(1,027)


(873)


Net income from unconsolidated equity affiliate

$   39,419


$   35,355







Non-GAAP Financial Measures:










Reconcile NET INCOME as reported under IFRS to adjusted EBITDA:





   NET INCOME

$ 124,521

28.80

$ 109,209

29.69

   Add back non-cash items:





      Depletion, depreciation and amortization

39,640

9.17

25,718

6.99

      Deferred income tax expense (benefit)

(30,884)

(7.14)

(28,275)

(7.69)






 CASH FROM OPERATIONS

133,277

30.83

106,652

28.99






      Investment earnings and other

(2)

-

(352)

(0.09)

      Interest expense

4,603

1.06

4,418

1.20

     Current income tax expense

73,338

16.96

84,961

23.10






   Adjusted EBITDA 

$ 211,216

48.85

$ 195,679

53.20






   Harvest 32% of Adjusted EBITDA

$   67,589

15.63

$   62,617

17.02

 

SOURCE Harvest Natural Resources



RELATED LINKS
http://www.harvestnr.com

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