LAFAYETTE, La., Feb. 27, 2014 /PRNewswire/ -- PetroQuest Energy, Inc. (NYSE: PQ) announced today net income available to common stockholders for the quarter ended December 31, 2013 of $2,291,000, or $0.04 per share, compared to fourth quarter 2012 net loss available to common stockholders of $25,451,000, or $0.41 per share. For the year ended December 31, 2013, the Company reported net income available to common shareholders of $8,943,000, or $0.14 per share, compared to net loss available to common shareholders of $137,218,000, or $2.20 per share, for the year ended December 31, 2012. Net loss for the three and twelve months ended December 31, 2012 included ceiling test writedowns totaling $28,113,000 and $137,100,000, respectively.
During July 2013, the Company closed the acquisition of certain properties located in the Gulf of Mexico (the "Gulf of Mexico Acquisition") for an adjusted purchase price of approximately $189 million. These properties contributed 4.5 Bcfe to the Company's 2013 production. The acquisition was financed through the issuance of $200 million of 10% senior notes due 2017.
Discretionary cash flow for the fourth quarter of 2013 was $27,898,000 as compared to $20,393,000 for the comparable 2012 period. For the year ended December 31, 2013, discretionary cash flow was $93,056,000 compared to $77,448,000 for 2012. See the attached schedule for a reconciliation of net cash flow provided by operating activities to discretionary cash flow.
Oil and gas sales during the fourth quarter of 2013 were $53,174,000 as compared to $38,147,000 in the fourth quarter of 2012. For the year ended December 31, 2013, oil and gas sales increased 29% to $182,804,000 as compared to $141,433,000 for the year ended December 31, 2012. Production for the fourth quarter and year ended December 31, 2013 was higher by 15% and 12%, respectively, than production for the comparable periods of 2012. Stated on an Mcfe basis, unit prices received during the fourth quarter and the year ended December 31, 2012 were higher by 21% and 15%, respectively, as compared to the prices received during the comparable 2012 periods.
Lease operating expenses for the fourth quarter of 2013 were $1.23 per Mcfe as compared to $1.18 per Mcfe in the fourth quarter of 2012. Lease operating expenses totaled $1.15 per Mcfe for each of the years ended December 31, 2013 and 2012.
Depreciation, depletion and amortization ("DD&A") on oil and gas properties for the fourth quarter of 2013 was $2.07 per Mcfe as compared to $1.61 per Mcfe in the fourth quarter of 2012. For the year ended December 31, 2013, DD&A on oil and gas properties increased to $1.82 per Mcfe from $1.75 per Mcfe for the comparable period of 2012. DD&A on oil and gas properties was higher in the 2013 periods as a result of the Gulf of Mexico Acquisition.
Interest expense for the fourth quarter of 2013 increased to $7,835,000, as compared to $2,787,000 in the fourth quarter of 2012. For the year ended December 31, 2013, interest expense was $21,886,000 compared to $9,808,000 for 2012. The increase in interest expense was primarily a result of the debt incurred to finance the Gulf of Mexico Acquisition.
Fourth quarter of 2013 general and administrative expense was $897,000 higher than the comparable 2012 period. The fourth quarter 2013 costs included higher employee related compensation expenses and approximately $200,000 of costs related to the Gulf of Mexico Acquisition. For the year ended December 31, 2013, general and administrative expenses were $3,555,000 higher than 2012. The increase in general and administrative expenses for the year ended December 31, 2013 was due to approximately $4 million of transaction-related costs associated with the Gulf of Mexico Acquisition.
Production taxes for the fourth quarter of 2013 totaled $193,000, as compared to $773,000 in the fourth quarter of 2012. The decrease in production taxes for the fourth quarter of 2013 is primarily due to production tax refunds received from Texas. For the year ended December 31, 2013, production taxes were $3,950,000, as compared to $885,000 for the comparable period of 2012. Production taxes for the 2012 period included refunds of severance taxes paid on Oklahoma horizontal wells.
The following table sets forth certain information with respect to the oil and gas operations of the Company for the three and twelve months ended December 31, 2013 and 2012:
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
|
2013
|
2012
|
2013
|
2012
|
|
Production:
|
|
|
|
|
|
Oil (Bbls)
|
220,158
|
140,632
|
680,980
|
520,590
|
|
Gas (Mcf)
|
7,706,293
|
6,902,878
|
29,225,843
|
27,466,228
|
|
Ngl (Mcfe)
|
1,194,044
|
1,116,205
|
4,754,223
|
3,366,774
|
|
Total Production
(Mcfe)
|
10,221,285
|
8,862,875
|
38,065,946
|
33,956,542
|
|
Total Daily
Production (MMcfe)
|
111.1
|
96.3
|
104.3
|
92.8
|
|
|
|
|
|
|
Sales:
|
|
|
|
|
|
Total oil sales
|
$ 21,644,128
|
$ 15,008,184
|
$ 70,476,065
|
$ 56,635,786
|
|
Total gas sales
|
25,469,355
|
17,213,657
|
87,449,370
|
63,535,262
|
|
Total ngl sales
|
6,060,077
|
5,925,721
|
24,878,243
|
21,262,236
|
|
Total oil and gas sales
|
$ 53,173,560
|
$ 38,147,562
|
$182,803,678
|
$ 141,433,284
|
|
|
|
|
|
|
Average sales prices:
|
|
|
|
|
|
Oil (per Bbl)
|
$ 98.31
|
$ 106.72
|
$ 103.49
|
$ 108.79
|
|
Gas (per Mcf)
|
3.31
|
2.49
|
2.99
|
2.31
|
|
Ngl (per Mcfe)
|
5.08
|
5.31
|
5.23
|
6.32
|
|
Per Mcfe
|
5.20
|
4.30
|
4.80
|
4.17
|
|
|
|
|
|
The above sales and average sales prices include increases (reductions) to revenue related to the settlement of gas hedges of $676,000 and $(21,000), oil hedges of $452,000 and $676,000 and ngl hedges of $56,000 and $178,000 for the quarters ended December 31, 2013, and 2012, respectively. The above sales and average sales prices include increases (reductions) to revenue related to the settlement of gas hedges of $1,098,0000 and $6,846,000, oil hedges of $(232,000) and $1,529,000 and ngl hedges of $61,000 and $722,000 for the years ended December 31, 2013 and 2012, respectively.
The following initiates guidance for the first quarter of 2014:
|
Guidance for
|
|
Description
|
1st Quarter 2014
|
|
|
|
Production volumes (MMcfe/d)
|
112 - 117
|
|
|
|
Percent Gas
|
73%
|
|
Percent Oil
|
14%
|
|
Percent NGL
|
13%
|
|
|
|
Expenses:
|
|
|
Lease operating expenses (per Mcfe)
|
$1.15 - $1.25
|
|
Production taxes (per Mcfe)
|
$0.15 - $0.20
|
|
Depreciation, depletion and amortization (per Mcfe)
|
$2.05 - $2.15
|
|
General and administrative (in millions)*
|
$6.0 - $6.5
|
|
Interest expense (in millions)
|
$7.5 - $8.0
|
|
|
|
|
|
* Includes non-cash stock compensation estimate of $1.4 million
|
|
|
The following initiates guidance for 2014:
|
Guidance for
|
|
Description
|
2014
|
|
|
|
Production volumes (MMcfe/d)
|
125 - 140
|
|
|
|
Percent Gas
|
70%
|
|
Percent Oil
|
13%
|
|
Percent NGL
|
17%
|
|
|
|
Expenses:
|
|
|
Lease operating expenses (per Mcfe)
|
$1.10 - $1.20
|
|
Production taxes (per Mcfe)
|
$0.15 - $0.20
|
|
Depreciation, depletion and amortization (per Mcfe)
|
$1.95 - $2.05
|
|
General and administrative (in millions)*
|
$24 - $26
|
|
Interest expense (in millions)
|
$30 - $32
|
|
|
|
2014 Capital Expenditures (in millions)
|
$140 - $150
|
|
|
|
* Includes non-cash stock compensation estimate of $5.1 million
|
|
|
|
|
About the Company
PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in the Arkoma Basin, Texas, South Louisiana and the shallow waters of the Gulf of Mexico. PetroQuest's common stock trades on the New York Stock Exchange under the ticker PQ.
Forward-Looking Statements
This news release contains "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. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our ability to integrate our acquisitions with our operations and realize the anticipated benefits from the acquisitions, any unexpected costs or delays in connection with the integration of the acquisitions, our ability to find oil and natural gas reserves that are economically recoverable, the volatility of oil and natural gas prices, the uncertain economic conditions in the United States and globally, the declines in the values of our properties that have resulted in and may in the future result in additional ceiling test write-downs, our ability to replace reserves and sustain production, our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in prospect development and property acquisitions or dispositions and in projecting future rates of production or future reserves, the timing of development expenditures and drilling of wells, hurricanes and other natural disasters, changes in laws and regulations as they relate to our operations, including our fracing operations or our operations in the Gulf of Mexico, and the operating hazards attendant to the oil and gas business. In particular, careful consideration should be given to cautionary statements made in the various reports PetroQuest has filed with the Securities and Exchange Commission. PetroQuest undertakes no duty to update or revise these forward-looking statements.
Click here for more information: "http://www.petroquest.com/news.html?=BizID=1690&1=1"
|
PETROQUEST ENERGY, INC.
Consolidated Balance Sheets
(Amounts in Thousands)
|
|
|
December 31, 2013
|
|
December 31, 2012
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$ 9,153
|
|
$ 14,904
|
|
Revenue receivable
|
26,568
|
|
17,742
|
|
Joint interest billing receivable
|
26,556
|
|
42,238
|
|
Other receivable
|
—
|
|
9,208
|
|
Derivative asset
|
521
|
|
830
|
|
Prepaid drilling costs
|
477
|
|
1,698
|
|
Other current assets
|
8,132
|
|
2,964
|
|
Total current assets
|
71,407
|
|
89,584
|
|
Property and equipment:
|
|
|
|
|
Oil and gas properties:
|
|
|
|
|
Oil and gas properties, full cost method
|
2,035,899
|
|
1,734,477
|
|
Unevaluated oil and gas properties
|
98,387
|
|
71,713
|
|
Accumulated depreciation, depletion and amortization
|
(1,553,044)
|
|
(1,472,244)
|
|
Oil and gas properties, net
|
581,242
|
|
333,946
|
|
Other property and equipment
|
13,993
|
|
12,370
|
|
Accumulated depreciation of other property and equipment
|
(8,901)
|
|
(7,607)
|
|
Total property and equipment
|
586,334
|
|
338,709
|
|
Other assets, net of accumulated amortization of $5,689 and $4,240, respectively
|
9,449
|
|
5,110
|
|
Total assets
|
$ 667,190
|
|
$ 433,403
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable to vendors
|
$ 47,341
|
|
$ 58,960
|
|
Advances from co-owners
|
969
|
|
20,459
|
|
Oil and gas revenue payable
|
22,664
|
|
26,175
|
|
Accrued interest and preferred stock dividend
|
12,909
|
|
6,190
|
|
Asset retirement obligation
|
3,113
|
|
2,351
|
|
Derivative liability
|
1,617
|
|
233
|
|
Other accrued liabilities
|
8,924
|
|
6,535
|
|
Total current liabilities
|
97,537
|
|
120,903
|
|
Bank debt
|
75,000
|
|
50,000
|
|
10% Senior Notes
|
350,000
|
|
150,000
|
|
Asset retirement obligation
|
45,423
|
|
24,909
|
|
Other long-term liability
|
135
|
|
—
|
|
Commitments and contingencies
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
Preferred stock, $.001 par value; authorized 5,000 shares; issued and outstanding 1,495 shares
|
1
|
|
1
|
|
Common stock, $.001 par value; authorized 150,000 shares; issued and outstanding 63,664 and 62,768 shares, respectively
|
64
|
|
63
|
|
Paid-in capital
|
280,711
|
|
276,534
|
|
Accumulated other comprehensive income (loss)
|
(1,096)
|
|
521
|
|
Accumulated deficit
|
(180,585)
|
|
(189,528)
|
|
Total stockholders' equity
|
99,095
|
|
87,591
|
|
Total liabilities and stockholders' equity
|
$ 667,190
|
|
$ 433,403
|
|
|
|
|
|
PETROQUEST ENERGY, INC.
Consolidated Statements of Operations
(Amounts in Thousands, Except Per Share Data)
|
|
|
|
|
|
Three Months Ended,
|
|
Three Months Ended,
|
|
Twelve Months Ended
|
|
Twelve Months Ended
|
|
December 31, 2013
|
|
December 31, 2012
|
|
December 31, 2013
|
|
December 31, 2012
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Oil and gas sales
|
$ 53,174
|
|
$ 38,147
|
|
$ 182,804
|
|
$ 141,433
|
|
Gas gathering revenue
|
(2)
|
|
39
|
|
66
|
|
158
|
|
53,172
|
|
38,186
|
|
182,870
|
|
141,591
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Lease operating expenses
|
12,535
|
|
10,482
|
|
43,743
|
|
38,890
|
|
Production taxes
|
193
|
|
773
|
|
3,950
|
|
885
|
|
Depreciation, depletion and amortization
|
21,563
|
|
14,665
|
|
71,445
|
|
60,689
|
|
Ceiling test write-down
|
—
|
|
28,113
|
|
—
|
|
137,100
|
|
General and administrative
|
6,313
|
|
5,416
|
|
26,512
|
|
22,957
|
|
Accretion of asset retirement obligation
|
550
|
|
536
|
|
1,753
|
|
2,078
|
|
Interest expense
|
7,835
|
|
2,787
|
|
21,886
|
|
9,808
|
|
48,989
|
|
62,772
|
|
169,289
|
|
272,407
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Other income
|
156
|
|
77
|
|
588
|
|
606
|
|
Derivative income (expense)
|
31
|
|
482
|
|
233
|
|
(233)
|
|
187
|
|
559
|
|
821
|
|
373
|
|
Income (loss) from operations
|
4,370
|
|
(24,027)
|
|
14,402
|
|
(130,443)
|
|
Income tax expense
|
794
|
|
140
|
|
320
|
|
1,636
|
|
Net income (loss)
|
3,576
|
|
(24,167)
|
|
14,082
|
|
(132,079)
|
|
Preferred stock dividend
|
1,285
|
|
1,284
|
|
5,139
|
|
5,139
|
|
Net income (loss) available to common stockholders
|
$ 2,291
|
|
$ (25,451)
|
|
$ 8,943
|
|
$ (137,218)
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
Net income (loss) per share
|
$ 0.04
|
|
$ (0.41)
|
|
$ 0.14
|
|
$ (2.20)
|
|
Diluted
|
|
|
|
|
|
|
|
|
Net income (loss) per share
|
$ 0.04
|
|
$ (0.41)
|
|
$ 0.14
|
|
$ (2.20)
|
|
Weighted average number of common shares:
|
|
|
|
|
|
|
|
|
Basic
|
63,475
|
|
62,764
|
|
63,054
|
|
62,459
|
|
Diluted
|
63,588
|
|
62,764
|
|
63,208
|
|
62,459
|
|
|
|
|
|
|
|
|
|
PETROQUEST ENERGY, INC.
Consolidated Statements of Cash Flows
(Amounts in Thousands)
|
|
|
Twelve Months Ended,
|
|
Twelve Months Ended,
|
|
December 31, 2013
|
|
December 31, 2012
|
|
Cash flows from operating activities:
|
|
|
|
|
Net income (loss)
|
$ 14,082
|
|
$ (132,079)
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
Deferred tax expense
|
320
|
|
1,636
|
|
Depreciation, depletion and amortization
|
71,445
|
|
60,689
|
|
Ceiling test writedown
|
—
|
|
137,100
|
|
Accretion of asset retirement obligation
|
1,753
|
|
2,078
|
|
Share based compensation expense
|
4,216
|
|
6,910
|
|
Amortization costs and other
|
1,473
|
|
881
|
|
Non-cash derivative expense (benefit)
|
(233)
|
|
233
|
|
Payments to settle asset retirement obligations
|
(3,335)
|
|
(2,627)
|
|
Changes in working capital accounts:
|
|
|
|
|
Revenue receivable
|
(8,826)
|
|
(1,882)
|
|
Prepaid drilling and pipe costs
|
1,221
|
|
4,479
|
|
Joint interest billing receivable
|
15,685
|
|
3,981
|
|
Accounts payable and accrued liabilities
|
(12,865)
|
|
20,916
|
|
Advances from co-owners
|
(19,490)
|
|
(13,408)
|
|
Other
|
(5,592)
|
|
(316)
|
|
Net cash provided by operating activities
|
59,854
|
|
88,591
|
|
Cash flows used in investing activities:
|
|
|
|
|
Investment in oil and gas properties
|
(298,824)
|
|
(147,771)
|
|
Investment in other property and equipment
|
(1,679)
|
|
(1,743)
|
|
Sale of oil and gas properties
|
19,913
|
|
837
|
|
Sale of unevaluated oil and gas properties
|
487
|
|
8,889
|
|
Net cash used in investing activities
|
(280,103)
|
|
(139,788)
|
|
Cash flows used in financing activities:
|
|
|
|
|
Net payments for share based compensation
|
(38)
|
|
(981)
|
|
Deferred financing costs
|
(320)
|
|
(42)
|
|
Payment of preferred stock dividend
|
(5,139)
|
|
(5,139)
|
|
Proceeds from bank borrowings
|
73,000
|
|
102,500
|
|
Repayment of bank borrowings
|
(48,000)
|
|
(52,500)
|
|
Proceeds from issuance of 10% Senior Notes
|
200,000
|
|
—
|
|
Costs associated with issuance of 10% Senior Notes
|
(5,005)
|
|
—
|
|
Net cash provided by financing activities
|
214,498
|
|
43,838
|
|
Net decrease in cash and cash equivalents
|
(5,751)
|
|
(7,359)
|
|
Cash and cash equivalents, beginning of period
|
14,904
|
|
22,263
|
|
Cash and cash equivalents, end of period
|
$ 9,153
|
|
$ 14,904
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
Cash paid during the period for:
|
|
|
|
|
Interest
|
$ 20,101
|
|
$ 16,026
|
|
Income taxes
|
$ 12
|
|
$ 105
|
|
|
|
|
|
PETROQUEST ENERGY, INC.
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)
|
|
|
Three Months Ended
|
Years Ended
|
|
December 31,
|
December 31,
|
|
2013
|
2012
|
2013
|
2012
|
|
Net income (loss)
|
$ 3,576
|
$ (24,167)
|
$ 14,082
|
$ (132,079)
|
|
|
|
|
|
|
Reconciling items:
|
|
|
|
|
|
Deferred tax expense
|
794
|
140
|
320
|
1,636
|
|
Depreciation, depletion and amortization
|
21,563
|
14,665
|
71,445
|
60,689
|
|
Ceiling test writedown
|
-
|
28,113
|
-
|
137,100
|
|
Accretion of asset retirement obligation
|
550
|
536
|
1,753
|
2,078
|
|
Share based compensation expense
|
1,111
|
1,301
|
4,216
|
6,910
|
|
Non-cash derivative (income) expense
|
(31)
|
(482)
|
(233)
|
233
|
|
Amortization expense and other
|
335
|
287
|
1,473
|
881
|
|
Discretionary cash flow
|
27,898
|
20,393
|
93,056
|
77,448
|
|
Changes in working capital accounts
|
(168)
|
630
|
(30,002)
|
13,770
|
|
Settlement of asset retirement obligations
|
(920)
|
(108)
|
(3,335)
|
(2,627)
|
|
|
|
|
|
|
Net cash provided by operating activities
|
26,810
|
$20,915
|
$59,719
|
$88,591
|
|
|
|
|
|
|
|
|
Note:
|
Management believes that discretionary cash flow is relevant and useful information, which is commonly used by analysts, investors and other interested parties in the oil and gas industry as a financial indicator of an oil and gas company's ability to generate cash used to internally fund exploration and development activities and to service debt. Discretionary cash flow is not a measure of financial performance prepared in accordance with generally accepted accounting principles ("GAAP") and should not be considered in isolation or as an alternative to net cash flow provided by operating activities. In addition, since discretionary cash flow is not a term defined by GAAP, it might not be comparable to similarly titled measures used by other companies.
|
SOURCE PetroQuest Energy, Inc.