| Selected Quarterly Financial Information (Unaudited) |
SELECTED QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
Our unaudited quarterly results for years ended December 31, 2015 and 2014 were prepared in accordance with accounting principles generally accepted in the United States of America, and reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results. These adjustments are of a normal recurring nature. Quarterly income per share is based on the weighted average number of shares outstanding during the quarter. Because of changes in the number of shares outstanding during the quarters due to the exercise of stock options and issuance of common stock, the sum of quarterly earnings per share may not equal earnings per share for the year.
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Three Month Ended
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March 31,
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June 30,
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September 30,
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December 31,
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(in thousands of dollars except per share information)
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2015:
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Total revenues
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$
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18,239
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(1)
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$
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27,137
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(1)
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$
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17,546
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(1)
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$
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17,523
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(1)
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Total operating costs and expenses
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53,857
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(2)
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28,225
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(2)
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49,667
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(2)
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89,301
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(2)
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Operating income (loss)
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(35,278)
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(1,030)
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(32,121)
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(75,124)
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Net income (loss)
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(39,005)
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(5,204)
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(33,668)
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(80,779)
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Basic net income (loss) per share
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$
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(0.67)
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$
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(0.09)
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$
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(0.58)
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$
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(1.38)
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Diluted net income (loss) per share
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$
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(0.67)
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$
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(0.09)
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$
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(0.58)
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$
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(1.38)
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2014:
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Total revenues
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$
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28,071
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(1)
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$
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52,098
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(1)
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$
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24,486
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(1)
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$
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23,037
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(1)
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Total operating costs and expenses
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28,721
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18,270
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17,799
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117,308
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(2)
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Operating income (loss)
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(650)
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33,828
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6,687
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(94,270)
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Net income (loss)
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(7,038)
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24,711
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3,109
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(98,332)
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Basic net income (loss) per share
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$
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(0.12)
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$
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0.43
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$
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0.05
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$
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(1.70)
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Diluted net income (loss) per share
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$
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(0.12)
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$
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0.43
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$
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0.05
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$
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(1.70)
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(1)As discussed in Note 3 to the consolidated financial statements an error was identified the prepaid royalty account that caused previous periods to be misstated. Total revenues were corrected through an out of period adjustment in the fourth quarter of 2015 with reduction of $2.3 million, overstating operating loss and net loss by $2.3 million.
(2)Significant cost and expense items that caused total operating costs and expenses to vary among the quarters are impairments of proved properties and undeveloped leasehold costs, dry hole costs, bad debt expense and inventory write-offs.
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·
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Impairments of proved properties for the first through fourth quarters of 2015 and the fourth quarter of 2014 were of $5.4 million, $5.8 million, $18.0 million, $52.1 million and $98.3 million. As discussed in Note 3 to the consolidated financial statements, an error was identified in previous periods’ impairment calculations, which caused a related, partially offsetting error in depletion. A net impairment increase of $3.6 million was recorded in the third quarter of 2015 as an out of period adjustment to correct for the previous periods, overstating operating loss and net loss by $3.6 million in the quarter. Impairments of undeveloped leasehold costs for the first through fourth quarters of 2015 were $2.7 million, $0.6 million, zero and $8.8 million and were $0.8 million, $0.8 million, zero and $2.3 million for the first through fourth quarters of 2014.
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·
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Dry hole costs were $24.5 million and $9.0 million in the first and third quarters of 2015 and were $9.7 million and $2.0 million in the first and second quarters of 2014.
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·
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Bad debt expense was $2.7 million in the third quarter of 2015 and was $1.8 million and $0.6 million in the third and fourth quarters of 2014.
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·
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Equipment write-offs were $3.4 million in the fourth quarter of 2015.
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