Coastal Energy Announces Second Quarter 2013 Financial Results & Operations Update
Q2 2013 Financial Highlights
· The Company reported Q2 total production of 23,843 boe/d, up 10% from year ago levels of 21,713 boe/d. Offshore production totaled 21,095 bbl/d, a 9% increase from year ago levels of 20,778 bbl/d. Offshore production was affected by mechanical downtime on two horizontal wells at Bua Ban North due to problems with a new completion technology. One of these wells has since been repaired and is performing in line with expectations. Onshore production was 2,748 boe/d, up 16% from 2,362 boe/d in the same period last year due to stronger natural gas demand in Thailand.
· EBITDAX for Q2 2013 was $83.3 million, a 36% decline from the $130.2 million recorded in Q2 2012. The decrease in EBITDAX was driven entirely by the timing of crude oil sales, as the Company recorded an increase in crude oil inventory of 526,017 bbl during the second quarter, the revenue from which will be recognized in the third quarter.
· Cash flow from operations per fully diluted share was $0.82, a decrease from the year ago level of $1.18, also driven by crude oil sales timing and the inventory build.
· After normalizing revenue to a production basis, rather than based on lifting volumes, Q2 2013 revenue would have been $188.6 million, a 3% increase over year ago levels, driven by a 9% increase in production volumes and offset by a 5% decline in commodity pricing.
Operations Update
The Company has completed repair work on the first of two horizontal wells at Bua Ban North that experienced issues with the “swelling packer” completion. The repair work on the second well will be completed with a hydraulic workover unit later in August. The Company also drilled two additional water injection wells at Bua Ban North B for pressure maintenance in two separate fault blocks. The Manta drilling rig is currently being mobilized to Malaysia to begin the work program at the Kapal field.
The Company has begun to build on the success of its pilot hydraulic fracturing program which was completed in the first quarter. A total of five wells at Bua Ban Main have been sidetracked and the new wellbores have been designed to optimize fracture completion results. The frac equipment is expected to arrive in mid-August and the first frac well is expected to be onstream by early September.
Offshore production averaged 20,290 bbl/d for the month of July. Offshore production was affected by 3 days of downtime at the Bua Ban North B platform in July to bring the newly drilled water injectors onstream. Onshore production for July averaged 2,012 boe/d, lower than previous months due to normal seasonal maintenance at the Nam Phong plant, bringing total Company production to 22,302 boe/d for the month.
Randy Bartley, President & CEO of Coastal Energy commented:
“The first half of 2013 has met us with both continued success along with some operational headwinds. Total Company production for the second quarter increased 10% year over year, but offshore production has been affected by some operational and mechanical issues. Our previously expected offshore production ramp up has been further delayed by damage that was sustained to the two Mobile Offshore Production Units (”MOPUs") which were scheduled to be placed in service by the beginning of the third quarter. This has delayed initial production in Malaysia and the start-up of Songkhla H production in the Gulf of Thailand by approximately one quarter. Onshore production remains strong and has grown 16% year over year, and we expect onshore production levels to remain elevated.
"During the second quarter the Company re-initiated its Normal Course Issuer Bid to repurchase up to 5% of the Company's outstanding shares. Management believes that this is an effective and accretive use of free cash flow at current market prices. The Company has already repurchased 259,800 shares at an average price of C$15.30.
“Although the Company has encountered some operational challenges in the first half of 2013, these have largely been resolved and we expect continued growth as we continue to develop and explore our asset base.”
The following financial statements for the Company are abbreviated versions. The Company‘s complete financial statements for the three and six months ended June 30, 2013 with the notes thereto and the related Management Discussion and Analysis can be found either on Coastal’s website at www.CoastalEnergy.com or on SEDAR at www.sedar.com. All amounts are in US$ thousands, except share and per share amounts.
Three months ended Six months ended
June 30, June 30,
2013 2012 2013 2012
Revenues and Other Income
Oil sales 136,904 194,639 363,704 383,718
Royalties (14,037) (20,514) (40,347) (40,757)
Oil sales, net of royalties 122,867 174,125 323,357 342,961
Reimbursement of expenses under Malaysia risk service contract 4,486 -- 6,771 --
Other income (Note 12) (1,015) 9,778 (754) (393)
126,338 183,903 329,374 342,568
Expenses
Production 35,601 41,164 78,534 77,374
Malaysia risk service contract 4,486 -- 6,771 --
Depreciation and depletion (Note 7) 13,878 18,590 37,183 38,634
Net profits interest (Note 13) (7) 869 1,919 869
General and administrative 8,269 7,057 16,050 15,384
Exploration (Note 6) 13,230 286 13,230 286
Debt financing fees 1,045 351 1,573 632
Finance 132 195 1,347 1,201
(Gain) loss on property, plant and equipment 15 -- (4) --
76,649 68,512 156,603 134,380
Net income before income taxes, share of earnings from Apico LLC 49,689 115,391 172,771 208,188
Share of earnings from Apico LLC (Note 8) 5,391 5,497 10,609 9,504
Net income before income taxes 55,080 120,888 183,380 217,692
Income taxes (Note 15)
Current (2,062) 45,289 43,003 81,897
Deferred 37,185 32,095 67,424 43,798
35,123 77,384 110,427 125,695
Net income and comprehensive income 19,957 43,504 72,953 91,997
Net income and total comprehensive income attributable to:
Shareholders of Coastal Energy 18,905 42,150 70,984 90,285
Non-controlling interest 1,052 1,354 1,969 1,712
19,957 43,504 72,953 91,997
Net income per share:
Basic (Note 14) 0.17 0.37 0.62 0.79
Diluted (Note 14) 0.16 0.36 0.61 0.76
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
June 30 December 31,
As at 2013 2012
$ $
Assets
Current Assets
Cash 39,022 63,897
Restricted cash (Note 4) 6,442 6,452
Accounts receivable (Note 5) 33,897 56,848
Derivative asset (Note 11) 84 132
Crude oil inventory 21,754 15,611
Marine fuel inventory 5,682 5,245
Prepaids and other current assets 3,969 628
Total current assets 110,850 148,813
Non-Current Assets
Exploration and evaluation assets (Note 6) 66,849 118,350
Property, plant and equipment (Note 7) 711,503 560,493
Investment in Apico LLC (Note 8) 65,806 60,266
Deposits and other assets 6,265 6,271
Total non-current assets 850,423 745,380
Total Assets 961,273 894,193
Liabilities
Current Liabilities
Accounts payable and accrued liabilities (Note 9) 139,799 217,757
Current portion of long-term debt (Note 11) 22 34
Current portion of derivative liabilities (Note 11) 181 1,372
Total current liabilities 140,002 219,163
Non-Current Liabilities
Long-term debt (Note 11) 95,933 95,066
Non-current portion of derivative liabilities (Note 11) 14 502
Derivative liability - warrants (Note 10) 2,396 3,784
Deferred tax liabilities 165,847 98,423
Decommissioning liabilities 45,599 46,726
Total non-current liabilities 309,789 244,501
Shareholders' Equity (Note 14)
Common shares 215,141 213,260
Contributed surplus 22,292 18,940
Warrants
Retained earnings 264,807 193,877
Total Shareholders' Equity 502,240 426,077
Non-controlling interest 9,242 4,452
Total equity 511,482 430,529
Total liabilities and equity 961,273 894,193
Commitments and contingencies (Note 17)
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
Three months ended Six months ended
June 30, June 30,
2013 2012 2013 2012
Operating activities
Net income 19,957 43,504 72,953 91,997
Adjustments:
Share of earnings from Apico LLC (5,391) (5,497) (10,609) (9,504)
Unrealized gain on derivative instruments (1,414) (15,892) (1,631) (11,885)
Depletion and depreciation 13,878 18,590 37,183 38,634
Finance expense 132 195 1,347 1,201
Amortisation of debt financing fees 339 351 867 632
Share-based compensation 1,383 1,645 3,867 4,636
Deferred income taxes 37,185 32,095 67,424 43,798
Unrealized foreign exchange (gain) loss 616 (158) (404) (66)
Gains (losses) on disposal of
property, plant and equipment 15 -- (4) --
Exploration expense 13,230 286 13,230 286
Income taxes paid (71,733) (129) (78,717) (129)
Interest received 8 1 35 3
Interest paid (1,043) (531) (2,161) (1,252)
Dividends received from Apico LLC 2,729 -- 5,069 --
9,891 74,460 108,449 158,351
Change in non-cash working capital:
Accounts receivable 111,813 4,306 22,951 (11,231)
Inventory (13,490) 3,584 (6,580) (1,892)
Prepaids and other current assets (2,412) (710) (3,341) 38
Accounts payable and accrued liabilities (7,628) 11,124 (14,565) (8,233)
Current income taxes payable (2,062) 45,160 43,003 81,768
Cash flow provided by operating activities 96,112 137,924 149,917 218,801
Financing Activities
Issuance of common shares, net of issuance costs -- 1,034 1,288 2,026
Cash settlement of restricted stock units -- -- (156) --
Repurchase of shares -- (15,033) -- (15,033)
Borrowings under long-term debt -- -- 15,000 --
Repayment of long-term debt -- -- (15,000) (30,000)
Loan arrangement fees (12) (222) (12) (968)
Distributions to non-controlling interest (1,326) (1,792) (2,619) (1,792)
Contributions from non-controlling interest 3,451 -- 5,440 --
Cash flow provided by (used in) financing activities 2,113 (16,013) 3,941 (45,767)
Investing Activities
Decrease in restricted cash 42 18 10 22,054
Expenditure on property, plant and equipment (80,997) (45,698) (176,969) (90,927)
Acquisition of increased ownership interest in Apico LLC -- -- -- (9,250)
Proceeds from disposal of property, plant and equipment -- -- 533 --
Deposits and other assets -- 131 -- 131
Cash flow used in investing activities (80,955) (45,549) (176,426) (77,992)
Effect of exchange rate changes on cash (1,797) (616) (2,307) (1,391)
(Decrease) increase in cash 15,473 75,746 (24,875) 93,651
Cash - Beginning of period 23,549 40,900 63,897 22,995
Cash - End of period 39,022 116,646 39,022 116,646
The accompanying notes are an integral part of these condensed interim consolidated financial statements.
Randy Bartley, President and Chief Executive Officer of the Company and a member of the Society of Petroleum Engineering and Jerry Moon, Vice President, Technical & Business Development, a member of the American Association of Petroleum Geologists, a Licensed Professional Geoscientist and a Certified Petroleum Geologist in the state of Texas, have reviewed the contents of this announcement.
Additional information, including the Company‘s complete competent person’s report may be found on the Company's website at www.CoastalEnergy.com or may be found in documents filed on SEDAR at www.sedar.com.
This statement contains ‘forward-looking statements’ as defined by the applicable securities legislation. Statements relating to current and future drilling results, existence and recoverability of potential hydrocarbon reserves, production amounts or revenues, forward capital expenditures, operation costs, oil and gas price forecasts and similar matters are based on current data and information and should be viewed as forward-looking statements. Such statements are not guarantees of future results and are subject to risks and uncertainties beyond Coastal Energy's control. Actual results may differ substantially from the forward-looking statements.
Website: http://www.CoastalEnergy.com
Contact
Coastal Energy Company
Send Email
+1 (713) 877-6793
Strand Hanson Limited (Nominated Adviser)
Rory Murphy / Andrew Emmott
+44 (0) 20 7409 3494
Macquarie Capital (Europe) Limited (Broker)
Steve Baldwin/Andrew Jones
+44 (0) 20 3037 2000
FirstEnergy Capital LLP (Broker)
Hugh Sanderson / Travis Inlow
+44 (0) 20 7448 0200
Buchanan
Tim Thompson / Ben Romney
+44 (0) 20 7466 5000
This news is a press release provided by Coastal Energy Company.
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2014년 1월 19일 12:36
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2014년 1월 7일 08:40