PERTH, Western Australia, Feb. 27, 2013 /CNW/ - Aurora Oil & Gas Limited
(TSX: AEF) (ASX: AUT) today released financial results for the fourth
quarter and year ended December 31, 2012. All figures are reported in
US dollars unless otherwise noted.
Financial highlights for the 2012 year:
-
Revenue US$295 million up 293%
-
EBITDAX US$167 million up 320%
-
Funds from operations US$140 million ($0.32 per share) up 251%
-
Operating netback US$46.72/boe
4th quarter 2012 compared to the 3rd quarter 2012:
-
Revenue US$112 million up 32%, 94% generated from liquids
-
Funds from operations US$54 million up 31%
-
Production up 35% to average of 16,907 boe/d
|
|
|
|
|
Year ended
|
|
|
|
Dec 31,
2012
|
Dec 31,
2011
|
|
Increase
%
|
Financial
|
|
|
|
|
(US$ thousands unless otherwise stated)
|
|
|
|
|
|
|
|
|
|
Production revenue - Pre royalty
|
294,812
|
75,079
|
|
293%
|
EBITDAX(1)
|
167,472
|
39,796
|
|
320%
|
|
Per boe - (US$/boe)(1)
|
42.85
|
38.15
|
|
12%
|
Funds from operations(1)
|
139,888
|
39,815
|
|
251%
|
|
Per share - basic (US cents per share)(1)
|
32.34
|
9.88
|
|
227%
|
|
Per boe - (US$/boe)(1)
|
35.79
|
38.17
|
|
(6%)
|
Net profit before tax
|
96,202
|
32,227
|
|
198%
|
Net profit after tax(2)
|
58,846
|
30,584
|
|
92%
|
|
Per share - basic (US cents per share)
|
13.60
|
7.49
|
|
82%
|
|
Per boe - (US$/boe)
|
15.06
|
29.32
|
|
(49%)
|
Adjusted net profit after tax(1)
|
63,044
|
27,573
|
|
129%
|
|
Per share - basic (US cents per share)
|
14.57
|
6.75
|
|
116%
|
Net capital expenditures (including acquisitions)
|
700,855
|
131,217
|
|
434%
|
|
|
|
|
|
Weighted average common shares outstanding (million)
|
|
|
|
|
|
Basic
|
432.6
|
408.5
|
|
6%
|
|
Diluted
|
439.4
|
415.0
|
|
6%
|
(1)
|
These financial measures are identified and defined below under
"Non-IFRS Financial Measures"
|
|
|
(2)
|
The income tax expense for the year ended December 31, 2012 of $37
million reflects the annualized
accounting deferred income tax expense for the year. No current income
tax is due for payment for the 2012 year.
|
|
|
(3)
|
Boe conversion is on a 6:1 basis, as explained below under "Cautionary
and Forward-Looking Statements."
|
|
|
|
|
|
Year ended
|
|
|
|
Dec 31,
2012
|
Dec 31,
2011
|
|
Increase
%
|
Operating
|
|
|
|
|
Production - Pre royalties
|
|
|
|
|
|
Natural gas (mscf/d)
|
11,548
|
3,951
|
|
192%
|
|
Light/medium oil (bbls/d)
|
5,198
|
1,252
|
|
315%
|
|
Condensate (bbls/d)
|
2,034
|
627
|
|
224%
|
|
NGL (bbls/d)
|
1,522
|
321
|
|
374%
|
|
|
Total oil equivalent (boe/d)
|
10,678
|
2,858
|
|
274%
|
|
|
|
|
|
|
|
|
|
|
Average Product prices achieved
|
|
|
|
|
|
Natural gas (US$/mscf)
|
2.90
|
4.06
|
|
(28%)
|
|
Light/medium oil (US$/bbl)
|
100.21
|
92.35
|
|
8%
|
|
Condensate (US$/bbl)
|
98.43
|
92.35
|
|
6%
|
|
NGL (US$/bbl)
|
32.71
|
56.96
|
|
(42%)
|
|
|
|
|
|
|
|
|
|
|
Netbacks
|
|
|
|
|
|
Production revenue (US$/boe)
|
75.43
|
71.97
|
|
5%
|
|
Royalties (US$/boe)
|
(19.86)
|
(19.24)
|
|
3%
|
|
Production taxes (US$/boe)
|
(2.58)
|
(2.71)
|
|
(5%)
|
|
Operating expenses (US$/boe)
|
(6.27)
|
(3.75)
|
|
67%
|
|
Operating netback (US$/boe)
|
46.72
|
46.28
|
|
1%
|
|
|
|
|
|
|
Depletion, depreciation and amortisation (US$/boe)
|
(10.02)
|
(4.19)
|
|
139%
|
|
General and administrative expenses (US$/boe)
|
(3.87)
|
(8.42)
|
|
(54%)
|
|
Finance costs (US$/boe)
|
(7.17)
|
(0.13)
|
|
5,415%
|
|
|
|
|
|
(1)These financial measures are identified and defined below under
"Non-IFRS Financial Measures"
|
|
(2)The income tax expense for the year ended December 31, 2012 of $37
million reflects the annualized
accounting deferred income tax expense for the year. No current income
tax is due for payment for the 2012 year.
|
|
(3)Boe conversion is on a 6:1 basis, as explained below under
"Cautionary and Forward-Looking Statements."
|
Outlook
Looking forward to 2013, the Company is well funded for the planned
development program at the Sugarkane field.
Based on the current drilling program for 2013 and current commodity
prices, management expect growth in production, revenue and
profitability to continue through 2013.
This growth is expected to be funded by a combination of the increasing
cash flow generated from production sales and the Company's credit
facility. The amount able to be drawn from this facility was recently
increased from US$ 150 million to US$ 275 million.
The increase in the level of funding available exceeds forecast working
capital requirements and provides capacity for capital expenditure
programs in excess of that presently forecast for the Sugarkane field.
The selected financial and operational information outlined above should
be read in conjunction with Aurora's audited annual financial report
and related Management's Discussion and Analysis for the year ended
December 31, 2012, which will be filed on SEDAR and will be available
for review at www.sedar.com and on our website at www.auroraoag.com.au. Aurora's audited annual financial report and the financial information
contained in this announcement were prepared in accordance with
Australian equivalents to International Financial Reporting Standards
(AIFRS). Compliance with AIFRS ensures compliance with International
Financial Reporting Standards (IFRS).
Briefing Conference Call
Aurora will host a 2012 annual results briefing conference call on the
following date:
February 27, 2013 at 6.30 p.m. Eastern Time (Canada)
February 28, 2013 at 7.30 a.m. Western Time (Australia)
Presentation PDF File
Aurora has filed a presentation to accompany the briefing conference
call. Please access the presentation from the Corporate Presentations
page of Aurora's website using the link below.
http://www.auroraoag.com.au/irm/content/corporate-presentations.aspx?RID=201
Call-in Details
To access either briefing call by telephone, please use one of the
following numbers
From the USA: Operator Assisted Toll-Free Dial-In Number: 1 (888)
231-8191
From outside the USA International Dial-In #: +1 (647) 427-7450
Conference ID #: 98998323
Toll Free International Numbers:
Australia
|
1-800-287-011
|
Austria
|
0-800-297-216
|
China, North
|
10-800-714-1191
|
China, South
|
10-800-140-1195
|
France
|
0-800-917-449
|
Germany
|
0-800-183-0171
|
Hong Kong
|
800-901-563
|
Ireland
|
1-800-760-620
|
Japan
|
00-53-11-60-858
|
Korea (South)
|
003-0813-1987
|
Netherlands
|
0-800-022-1164
|
Norway
|
800-105-67
|
Singapore
|
800-101-2564
|
Switzerland
|
0-800-835-354
|
Taiwan
|
00-801-127-130
|
United Kingdom
|
0-800-051-7107
|
Please connect approximately ten minutes prior to the beginning of the
call to ensure participation.
A recording of each briefing conference call will also be available on
the Company's website following the briefing at http://www.auroraoag.com.au
About Aurora
Aurora is an Australian and Toronto listed oil and gas company active in
the over pressured liquids rich region of the Eagle Ford Shale in
Texas, United States. The Company is engaged in the development and
production of oil, condensate and natural gas in Karnes, Live Oak and
Atascosa counties in South Texas. Aurora participates in approximately
77,000 highly contiguous gross acres in the heart of the trend,
including approximately 19,100 net acres within the liquids rich zones
of the Eagle Ford.
Cautionary and Forward-Looking Statements
Statements in this press release reflect management's expectations
relating to, among other things, target dates, Aurora's expected
drilling program and the ability to fund development are
forward-looking statements, and can generally be identified by words
such as "will", "expects", "intends", "believes", "estimates",
"anticipates" or similar expressions. In addition, any statements that
refer to expectations, projections or other characterizations of future
events or circumstances are forward-looking statements. Statements
relating to "reserves" are deemed to be forward-looking statements as
they involve the implied assessment, based on certain estimates and
assumptions that some or all of the reserves described can be
profitably produced in the future. These statements are not historical
facts but instead represent management's expectations, estimates and
projections regarding future events.
Although management believes the expectations reflected in such
forward-looking statements are reasonable, forward-looking statements
are based on the opinions, assumptions and estimates of management at
the date the statements are made, and are subject to a variety of risks
and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. These factors include risks related to:
exploration, development and production; oil and gas prices, markets
and marketing; acquisitions and dispositions; competition; additional
funding requirements; reserve estimates being inherently uncertain;
incorrect assessments of the value of acquisitions and exploration and
development programs; environmental concerns; availability of, and
access to, drilling equipment; reliance on key personnel; title to
assets; expiration of licences and leases; credit risk; hedging
activities; litigation; government policy and legislative changes;
unforeseen expenses; negative operating cash flow; contractual risk;
and management of growth. In addition, if any of the assumptions or
estimates made by management prove to be incorrect, actual results and
developments are likely to differ, and may differ materially, from
those expressed or implied by the forward-looking statements contained
in this document. Such assumptions include, but are not limited to,
general economic, market and business conditions and corporate
strategy. Accordingly, investors are cautioned not to place undue
reliance on such statements.
All of the forward-looking information in this press release is
expressly qualified by these cautionary statements. Forward-looking
information contained herein is made as of the date of this document
and Aurora disclaims any obligation to update any forward-looking
information, whether as a result of new information, future events or
results or otherwise, except as required by law.
Non - IFRS Financial Measures
References are made in this Annual Report to certain financial measures
that do not have any standardized meanings prescribed by International
Financial Reporting Standards ("IFRS"). Such measures are neither
required by, nor calculated in accordance with IFRS, and therefore are
considered Non-IFRS financial measures. Non-IFRS financial measures may
not be comparable with the calculation of similar measures by other
companies. Funds from operations, EBITDAX, net operating income,
operating netback and adjusted net profit after tax are commonly used
in the oil and gas industry.
EBITDAX
EBITDAX represents net income (loss) for the period before income tax
expense or benefit, gains and losses attributable to the disposal of
projects, finance costs, depletion, depreciation and amortization
expense, other non-cash charges, expenses or income, one-off or
non-recurring fees, expenses and charges and exploration and evaluation
expenses.
The following table reconciles net profit after tax to EBITDAX:
|
Dec-12
|
Dec-11
|
|
US$'000
|
US$'000
|
|
|
|
Net profit after tax
|
58,846
|
30,584
|
Adjustments:
|
|
|
|
Share based payment expense
|
4,398
|
4,052
|
|
Depletion, depreciation and amortisation expense
|
39,161
|
4,367
|
|
Interest income
|
(247)
|
(649)
|
|
Finance costs
|
28,027
|
136
|
|
Net foreign exchange (gain)
|
(3,042)
|
(989)
|
|
(Gain) on foreign currency derivatives not qualifying as hedges
|
(1,167)
|
-
|
|
Net (gain) on sale of available for sale assets
|
(770)
|
-
|
|
Other income
|
(29)
|
-
|
|
Income tax expense
|
37,356
|
1,643
|
|
Exploration and evaluation costs
|
4,939
|
652
|
EBITDAX
|
167,472
|
39,796
|
Funds from Operations
Funds from operations represent funds provided by operating activities
before changes in non-cash working capital.
The following table reconciles net profit after tax to funds from
operations:
|
Dec-12
|
Dec-11
|
|
US$'000
|
US$'000
|
|
|
|
Net profit after tax
|
58,846
|
30,584
|
Add/(less) non-cash items:
|
|
|
|
Depletion, depreciation and amortisation expense
|
39,161
|
4,367
|
|
Amortisation of borrowing costs and discount/premium of financial
instrument
|
2,927
|
66
|
|
Share based payment expense
|
4,398
|
4,052
|
|
Income tax expense
|
37,356
|
1,643
|
|
Net foreign exchange (gain)
|
(3,042)
|
(989)
|
|
Employee benefit provision
|
242
|
92
|
Funds from operations
|
139,888
|
39,815
|
The Company considers funds from operations and EBITDAX as key measures
as both assist in demonstrating the ability of the business to generate
the cash flow necessary to fund future growth through capital
investment. Neither should be considered as an alternative to, or more
meaningful than net income or cash provided by operating activities (or
any other IFRS financial measure) as an indicator of the Company's
performance. Because EBITDAX excludes some, but not all, items that
affect net income, the EBITDAX presented by the Company may not be
comparable to similarly titled measures of other companies.
Adjusted Net Profit After Tax
Adjusted net profit after tax represents net profit after tax before
non-recurring items.
The following table reconciles net profit after tax to adjusted net
profit after tax:
|
Dec-12
|
Dec-11
|
|
US$'000
|
US$'000
|
|
|
|
Net profit after tax
|
58,846
|
30,584
|
Adjustments for non-recurring items:
|
|
|
|
Income tax expense - change in estimated provision for the year ended
December 31, 2011
|
3,011
|
(3,011)
|
|
(Gain) on foreign currency derivatives not qualifying as hedges
|
(1,167)
|
-
|
|
Net (gain) on sale of available for sale assets
|
(770)
|
-
|
|
Exploration and evaluation costs - Eureka Energy Limited
|
3,124
|
-
|
Adjusted net profit after tax
|
63,044
|
27,573
|
Management also uses certain industry benchmarks such as net operating
income and operating netback to analyse financial and operating
performance.
Net Operating Income
Net operating income represents net oil and gas revenue attributable to
Aurora after distribution to royalty holders.
Operating Netback
Operating netback as presented, represents revenue from production less
royalties, state taxes, transportation and operating expenses
calculated on a boe basis. Management considers operating netback an
important measure to evaluate its operational performance as it
demonstrates its field level profitability relative to current
commodity prices.
Defined Reserves and Resource Terms
-
"boe" means barrels of oil equivalent and have been calculated using
liquid volumes of oil, condensate and NGLs and treated volumes of gas
converted using a ratio of 6 mscf to 1 bbl of liquid equivalent unless
otherwise stated.
-
"scf" means standard cubic feet.
-
"btu" means British thermal units.
-
"m" or "M" prefix means thousand.
-
"mm" or "MM" prefix means million.
-
"b" or "B" prefix means billion.
-
"/d" suffix means per day.
Boe may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 mscf:1 bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. Given the value ratio
based on the current price of crude oil as compared to natural gas is
significantly different from the energy equivalency of 6 mscf:1 bbl,
utilising a conversion ratio of 6 mscf:1 bbl may be misleading. Unless
stated otherwise, all per boe references are a reference to Aurora's
per boe production on a working interest basis before deduction of
royalties.
SOURCE: Aurora Oil & Gas Limited
Level 20, 77 St. Georges Terrace, Perth, Western Australia 6000, GPO Box 2530 Perth, Western Australia 6001, T+61 8 9440 2626, F +61 8 9440 2699, E info@auroraoag.com.au, W www.auroraoag.com.au