Read Larry Connors' blog – Short Term Trading Strategies
3Q09 vs 3Q08: Energen Resources' substantial hedge position, 12 percent increase in production and 25 percent decrease in per-unit lease operating expense (LOE) helped offset the negative impact of significantly lower oil and gas prices, higher depreciation, depletion and amortization (DD&A) expense and a greater net earnings loss at Alagasco, the company's natural gas utility.
More than 70 percent of Energen Resources' third quarter 2009 production was hedged at above-market prices. As a result, the company was able to protect its earnings and cash flows from the full impact of the significant decline in the price of natural gas, oil and natural gas liquids (NGL). For the three months ended September 30, 2009, Energen Resources' average realized sales price declined 23 percent year-over-year; without hedges, Energen Resources' average realized sales prices would have declined some 56 percent.
-- 2010 EARNINGS GUIDANCE INITIATED
With more than 57 percent of its estimated 2010 production hedged at above-market prices, Energen is well-positioned to generate earnings and cash flow growth in 2010. Energen's initial earnings guidance range of $4.00-$4.40 per diluted share suggests the potential for double-digit earnings growth in 2010.
Energen's earnings outlook assumes that commodity prices applicable to its unhedged production will average $5.50 per thousand cubic feet (Mcf) for natural gas, $75 per barrel for oil and 81 cents per gallon for NGL. Total production in 2010 is estimated to increase approximately 3 percent to 114 billion cubic feet (Bcf) equivalent.
Energen has hedges in place in 2010 for 63 percent of its estimated natural gas production of 70 Bcf at an average NYMEX-equivalent price of $8.48 per Mcf as well as for 63 percent of its estimated oil production of 5.5 million barrels (MMBbl) at an average NYMEX-equivalent price of $85.42 per barrel. NGL production currently is unhedged.
Consolidated after-tax cash flows also are estimated to increase in 2010 and range from $623 million to $652 million. At Energen Resources, 2010 after-tax cash flows are estimated to range from $545 million to $574 million. These funds will be used to finance Energen Resources' identified capital spending of approximately $310 million. Together with an estimated $30 million of cash available at year-end 2009, Energen Resources is expected to have available for discretionary investment some $265 million to $294 million. Excess cash flows may be used to fund property acquisitions and other opportunities that may arise and/or pay down debt.
Capital spending at Energen Resources in 2010 is estimated to be approximately $310 million. This amount includes some $290 million for the development of existing properties and $15 million for exploration, including the drilling of a Conasauga shale well in Alabama. Approximately 75 percent of Energen Resources' 2010 estimated capital for existing properties' development will be invested in the Permian Basin in Texas, which is home to 98 percent of the company's estimated proved oil reserves. Activities in the Permian Basin in 2010 will focus on waterflood expansion, development of the Fuhrman-Mascho Field and drilling "Wolfberry" wells.
Alagasco's capital spending in 2010 is estimated to total $80 million, with some $50 million invested in normal system needs and $30 million in technology-related and other projects.
Work continues on Energen's 2010 budget, which is expected to be approved by the company's Board of Directors in early December; based on changing market conditions, the budget could differ from the current model upon which guidance is based.
For more information on Energen's 2010 earnings guidance, see pages 9-11.
-- 2009 EARNINGS GUIDANCE RANGE INCREASED AND NARROWED
Energen today increased and narrowed its 2009 earnings guidance range to $3.45-$3.65 per diluted share (prior guidance was $3.10-$3.50 per diluted share). This guidance assumes that commodity prices applicable to the company's unhedged natural gas volumes for the open months of November and December will average approximately $5.50 per Mcf for gas (NYMEX); oil and NGL prices for October-December are estimated to average some $78.75 per barrel of oil (NYMEX) and $1.02 per gallon, respectively.
Production in 2009 is now estimated to total 111 billion cubic feet (Bcf) equivalent, reflecting an 8 percent increase from 2008. Approximately 75 percent of the company's estimated fourth quarter production of 28 Bcf equivalent (Bcfe) is hedged; as a result, earnings and cash flows are not materially sensitive to commodity price changes.
Capital spending at Energen Resources in 2009 is now estimated to be $450 million, including $190 million for property acquisitions and $245 million in property development in 2009; this increase from earlier estimates reflects, in part, accelerated development of its Fuhrman-Mascho Field along with waterflood expansion in the Permian Basin in the last half of 2009.
-- CHATTANOOGA WELL NEARS COMPLETION STAGE
Energen Resources expects to begin completion of its Chattanooga shale well within the week. The 1,500-foot horizontal leg of the Cain 6-6 #1 is at a vertical depth of approximately 7,800 feet. The company plans to perform a three-stage nitrogen frac. Well results may be several weeks away. The Cain well is located in Tuscaloosa County, southwest of the city of Tuscaloosa.
In the event this well is unsuccessful, the company would expect to record a loss of approximately 17 cents per diluted share in the fourth quarter of 2009 associated with well costs and the non-cash write-off of capitalized unproved leasehold.
THIRD QUARTER 2009 RESULTS
For the three months ended September 30, 2009, Energen's net income totaled $47.1 million, or $0.65 per diluted share, and compares with third quarter 2008 net income of $73.1 million, or $1.01 per diluted share. Included in the current-year third quarter results for Energen and Energen Resources is a one-time gain of $3.1 million, or $0.04 per diluted share, from the sale of a small, non-operated Permian Basin property.
Energen Resources Corporation
Energen Resources generated third quarter net income of $59.0 million in 2009 as compared with $79.6 million in the same period last year. The independent producers' substantial hedge position, 12 percent increase in production and 25 percent decrease in per-unit LOE helped offset the negative impact of significantly lower oil and gas prices and higher DD&A expense.
Average Realized Sales Prices, Third Quarter Comparison
Commodity 3Q09 3Q08 Change Natural Gas (per Mcf) $ 6.10 $ 8.42 (28)% Oil (per barrel) $64.03 $78.08 (18)% NGL (per gallon) $ 0.88 $ 1.03 (15)%
Production, Third Quarter Comparison
Commodity 3Q09 3Q08 Change Natural Gas (Bcf) 18.9 17.3 9% Oil (MBbl) 1,253 1,055 19% NGL (MMgal) 20.0 17.8 12% Total (Bcfe) 29.3 26.1 12%
Production By Area (Bcfe), Third Quarter Comparison
Area 3Q09 3Q08 Change San Juan Basin 14.3 12.7 13 % Permian Basin 9.2 7.4 24 % Black Warrior Basin 3.6 3.5 3 % N. LA/E. TX/Other 2.1 2.5 (16)%
The year-over-year production increase in the Permian basin in the third quarter of 2009 largely reflects the acquisition of Range Resources' interests in the Fuhrman-Mascho Field as well as pay adds and workovers. Increases in the San Juan Basin largely reflect new well development and better-than-expected performance in some of the Fruitland Coal wells in the San Juan Basin.
Total per-unit LOE in the third quarter of 2009 declined 25 percent from the prior-year third quarter to $1.86 per Mcf equivalent (Mcfe). Base LOE and marketing and transportation expenses totaled $1.55 per Mcfe, reflecting a decline of approximately 8 percent largely due to lower ad valorem taxes and lower field service costs. The biggest decline in per-unit LOE came from commodity price-driven production taxes, which fell 61 percent on a per-unit basis.
DD&A expense per unit in the third quarter of 2009 increased 25 percent over the same period last year to $1.63 per Mcfe largely due to higher development costs and lower year-end 2008 reserve prices.
Per-unit net G&A expense in the third quarter of 2009 increased 51 percent over the same period in 2008 to 53 cents per Mcfe largely due to increased benefits related to the company's performance-based compensation plans and increased litigation reserves.
Alabama Gas Corporation
Energen's natural gas utility reported a net loss of $10.7 million in the third quarter of 2009 as compared with a net loss of $5.8 million in the third quarter of 2008. In the current-year quarter, Alagasco recognized a $0.9 million after-tax reduction in revenues designed to keep the utility earning within its allowed range of return on average equity at the end of the 2009 rate year. The major reasons for the decrease in third quarter earnings, however, were non-recurring items in the prior-year third quarter. These items included a $1.8 million after-tax benefit from having maintained its expenses below the inflation-based cost control measurement feature of its rate-setting mechanism; in addition, Alagasco used its Enhanced Stability Reserve (ESR) in the third quarter of 2008 to help compensate for industrial and commercial load loss during the rate year. The ESR draw was $2.5 million after tax.
YEAR-TO-DATE RESULTS
For the nine months ended September 30, 2009, Energen's net income totaled $197.7 million, or $2.75 per diluted share. This compares with net income of $256.6 million, or $3.56 per diluted share, in the first nine months of 2008. Included in the 2009 year-to-date results of Energen and Energen Resources is a one-time gain of $3.1 million, or $0.04 per diluted share, generated by the sale of a small, non-operated Permian Basin property; prior-period results included a $6.4 million, or $0.09 cents per diluted share, gain from a Permian Basin property sale.
Energen Resources Corporation
Energen Resources' year-to-date net income totaled $161.0 million in 2009 as compared with $222.6 million in the first nine months of 2008. Energen Resources' substantial hedge position, 10 percent increase in production and 23 percent decrease in per-unit LOE helped offset the negative impact of significantly lower oil and gas prices and higher DD&A expense.
Average Realized Sales Prices, Year-to-Date Comparison
Commodity YTD09 YTD08 Change Natural Gas (per Mcf) $ 6.30 $ 8.22 (23)% Oil (per barrel) $59.19 $73.69 (20)% NGL (per gallon) $ 0.86 $ 1.06 (19)%
Production, Year-to-Date Comparison
Commodity YTD09 YTD08 Change Natural Gas (Bcf) 54.5 50.1 9% Oil (MBbl) 3,456 3,005 15% NGL (MMgal) 55.9 52.7 6% Total (Bcfe) 83.3 75.6 10%
Production By Area (Bcfe), Year-to-Date Comparison
Area YTD09 YTD08 Change San Juan Basin 41.3 37.2 11 % Permian Basin 24.9 21.2 17 % Black Warrior Basin 10.8 10.5 3 % N. LA/E. TX/Other 6.3 6.8 (7)%
The year-over-year production increase in the Permian Basin largely reflects the cumulative effect of accelerated drilling in 2007 and 2008, the Fuhrman-Mascho acquisition and current-year pay adds and workovers. Increased production in the San Juan Basin largely reflects the cumulative effect of accelerated drilling in 2007 and 2008 as well as better-than-expected performance in the current year from some of the Fruitland Coal wells.
Total per-unit LOE in the first nine months of 2009 declined approximately 23 percent from the same period a year ago to $1.91 per Mcfe. Base LOE and marketing and transportation expenses fell approximately 5 percent in response to lower field service costs. The biggest decline in per-unit LOE came from commodity price-driven production taxes, which fell 63 percent on a per-unit basis.
DD&A expense per unit in year-to-date 2009 increased 26 percent over the same period last year to $1.58 per Mcfe largely due to higher development costs and lower year-end 2008 reserve prices.
Per-unit net G&A expense in year-to-date 2009 declined 2 percent over the same period in 2008 to 45 cents per Mcfe.
Alabama Gas Corporation
Energen's natural gas utility generated net income of $37.6 million in the first nine months of 2009 as compared with $34.8 million in the same period in 2008. This increase primarily was due to the utility's earning on a higher level of equity.
TRAILING 12-MONTHS RESULTS
For the 12 months ended September 30, 2009, Energen's net income totaled $263.0 million, or $3.66 per diluted share, and compared with $336.0 million, or $4.66 per diluted share, for the same period a year ago. Included in the 2009 year-to-date results of Energen and Energen Resources is a one-time gain of $3.1 million, or $0.04 per diluted share, generated by the sale of a small, non-operated Permian Basin property; prior-period results included a $6.4 million, or $0.09 cents per diluted share, gain from a Permian Basin property sale.
Energen Resources Corporation
Energen Resources' net income for the trailing 12 months totaled $221.0 million as compared with $296.5 million in the same period a year ago.
Average Realized Sales Prices, T12M Comparison
Commodity 2009 2008 Change Natural Gas (per Mcf) $ 6.50 $ 8.09 (20)% Oil (per barrel) $60.48 $73.14 (17)% NGL (per gallon) $ 0.82 $ 1.04 (21)%
Production, T12M Comparison
Commodity 2009 2008 Change Natural Gas (Bcf) 72.0 66.6 8% Oil (MBbl) 4,565 3,986 15% NGL (MMgal) 73.9 72.3 2% Total (Bcfe) 110.0 100.9 9%
Per-unit LOE totaled $1.89 per Mcfe in the 12 months ending September 30, 2009, reflecting a decrease of 20 percent from $2.36 per Mcfe in the 12 months ended September 30, 2008; this decrease largely was due to a 66 percent decline in commodity price-driven production taxes.
DD&A expense per unit in the 12 months ended September 30, 2009, increased 27 percent over the same period last year to $1.58 per Mcfe largely due to higher development costs and a price-driven, downward revision of year-end 2008 proved reserves.
Per-unit net G&A expense in the trailing 12-months period declined 15 percent over the same period in 2008 to 41 cents per Mcfe largely due to lower benefits related to the company's performance-based compensation plans.
Alabama Gas Corporation
Alagasco generated net income in the 12 months ended September 30, 2009, of $43.0 million as compared with $40.4 million in the same period a year ago and largely reflects the utility earning within its allowed range of return on a higher level of equity. Alagasco's return on average equity for the rate year ended September 30, 2009, was 13.3 percent on 13-month average equity of $323.4 million.
2010 EARNINGS GUIDANCE INITIATED
Energen today initiated earnings guidance for 2010 with a range of $4.00-$4.40 per diluted share. Key assumptions included in the guidance include:
-- A hedge position that covers approximately 57 percent of estimated production;
-- Annual production of approximately 114 Bcfe;
-- Capital spending of $390 million, including approximately $310 million by Energen Resources (ERC) and $80 million by Alagasco;
-- An average DD&A rate at ERC of $1.83 per Mcfe;
-- LOE, including production taxes, at ERC of $2.21 per Mcfe (base LOE and marketing and transportation costs of $1.74 per Mcfe);
-- General and administrative expense at ERC of 47 cents per Mcfe;
-- Alagasco's earning within its allowed range of return on estimated average equity of $330 million;
-- Average diluted shares outstanding of 72.0 million.
Energen's earnings guidance does not include potential benefits from unidentified property acquisitions, Alabama shales exploration or stock repurchases. The guidance also makes no assumption related to the potential impairment of $41 million of capitalized unproved leasehold related to Alabama shales.
2010 Hedge Position Summary
Energen Resources' hedge position for 2010 is as follows:
Commodity Hedge Volumes Est. Production Hedge % NYMEXe Price Natural Gas 44.4 Bcf 70.0 Bcf 63% $8.48/Mcf Oil 3.5 MMBbl 5.5 MMBbl 63% $85.42/barrel NGL a^' 74.8 MMgal a^' a^'
Energen Resources' natural gas and oil hedge positions by hedge type for 2010 are as follows:
Natural Gas Hedges Volumes (Bcf) Assumed Differential NYMEXe Price San Juan Basin 29.4 $0.50 per Mcf $8.38 per Mcf NYMEX 14.9 -- $8.68 per Mcf Oil Hedges Volumes (MBbl) Assumed Differential NYMEXe Price Sour Oil (WTS) 2,383 $3.00 per barrel $89.74 per barrel NYMEX 1,082 -- $75.91 per barrel
Average realized oil and gas prices for Energen Resources' production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. Average realized NGL prices will be net of transportation and fractionation fees.
For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price. Energen typically hedges basis differentials where applicable. In the tables above, the basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources' assumed basis differentials.
Energen Resources' estimated 2010 production and hedge position by region and commodity are shown below.
Commodity San Juan Basin Permian Basin Black Warrior N. LA/E. TX/Other
Vols % Hedged Vols % Hedged Vols % Hedged Vols % Hedged
Gas (Bcf) 47.2 62% 4.0 -- 13.0 80% 5.8 79%
Oil (MMBbl) 0.07 -- 5.4 64% -- -- 0.03 --
NGL (MMgal) 55.1 -- 19.7 -- -- -- -- --
Total (Bcfe) 55.5 53% 39.4 53% 13.0 80% 5.9 76%
SENSITIVITY OF EARNINGS, CASH FLOWS TO COMMODITY PRICES CHANGES
Given Energen Resources' current hedge position for 2010 and using the price assumptions given above for the company's unhedged production, changes in commodity prices are estimated to have the following impact on Energen's 2010 earnings and cash flows:
-- Every 10-cent change in the average NYMEX price of gas from $5.50 represents an estimated net income impact of approximately $1.1 million (1.5 cents per diluted share).
-- Every $1.00 change in the average NYMEX price of oil from $75 per barrel represents an estimated net income impact of approximately $1.1 million (1.5 cents per diluted share).
-- Every 1-cent change in the average price of liquids from $0.81 per gallon represents an estimated net income impact of approximately $0.4 million (0.6 cent per diluted share).
Price-related events such as substantial basis differential changes could cause earnings sensitivities to be materially different from those outlined above.
2009 EARNINGS GUIDANCE RANGE INCREASED
Energen today raised and narrowed its 2009 earnings guidance range to $3.45-$3.65 per diluted share. Key assumptions included in the guidance include:
-- Results of the year-to-date;
-- A hedge position that covers approximately 75 percent of estimated production for the remainder of the year;
-- Annual production of approximately 111 Bcfe (approximately 28 Bcfe in the last three months of 2009);
-- Capital spending of $525 million, including approximately $260 million by Energen Resources (ERC), $190 million for property acquisitions, and $75 million by Alagasco;
-- An average DD&A rate at ERC of $1.65 per Mcfe;
-- LOE, including production taxes, at ERC of $2.00 per Mcfe;
-- General and administrative expense at ERC of 46 cents per Mcfe;
-- Alagasco's earning within its allowed range of return on estimated average equity of $325 million;
-- Average diluted shares outstanding of 71.9 million.
Energen's earnings guidance does not include potential benefits from unidentified property acquisitions, Alabama shales exploration or stock repurchases. The guidance also makes no assumption related to the potential impairment of capitalized unproved leasehold related to Alabama shales.
2009 Hedge Position Summary
Energen Resources' hedge position for the remaining three months of 2009 is as follows:
Commodity Hedge Volumes Est. Production Hedge % NYMEXe Price Natural Gas 13.1 Bcf 17.3 Bcf 76% $7.59/Mcf Oil 1.0 MMBbl 1.3 MMBbl 77% $69.63/barrel NGL 10.8 MMgal 17.6 MMgal 62% $1.15/gallon
NOTE: October actuals included where known
Energen Resources' natural gas and oil hedge positions by hedge type for the remainder of the year are as follows:
Natural Gas Hedges Volumes (Bcf) Assumed Differential NYMEXe Price San Juan Basin 8.8 $0.40 per Mcf $7.40 per Mcf Permian Basin 0.3 $0.30 per Mcf $7.95 per Mcf NYMEX 4.1 -- $7.98 per Mcf Oil Hedges Volumes (MBbl) Assumed Differential NYMEXe Price Sour Oil (WTS) 754 $2.65 per barrel $66.13 per barrel NYMEX 276 -- $79.18 per barrel
NOTE: October actuals included where known
Average realized oil and gas prices for Energen Resources' production associated with NYMEX contracts as well as for unhedged production will reflect the impact of basis differentials. Average realized NGL prices will be net of transportation and fractionation fees.
For production associated with basin-specific contracts, Energen Resources will receive the contracted hedge price. Energen typically hedges basis differentials where applicable. In the tables above, the basin-specific contract prices were converted for comparability purposes to a NYMEX-equivalent price by adding to them Energen Resources' assumed basis differentials.
Energen Corporation is a diversified energy holding company with headquarters in Birmingham, AL. Its two lines of business are the acquisition, development and exploration of domestic, onshore natural gas, oil and NGL reserves and natural gas distribution in central and north Alabama. Energen Resources has approximately 3.4 trillion cubic feet equivalent of proved, probable and possible reserves in the San Juan, Permian and Black Warrior basins. Alabama Gas Corporation is the largest distributor of natural gas in Alabama. More information is available at http://www.energen.com.
This release contains statements expressing expectations of future plans, objectives and performance that constitute forward-looking statements made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. Except as otherwise disclosed, the Company's forward-looking statements do not reflect the impact of possible or pending acquisitions, divestitures or restructurings. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. All statements based on future expectations rather than on historical facts are forward-looking statements that are dependent on certain events, risks and uncertainties that could cause actual results to differ materially from those anticipated. In addition, the Company cannot guarantee the absence of errors in input data, calculations and formulas used in its estimates, assumptions and forecasts. A more complete discussion of risks and uncertainties that could affect future results of Energen and its subsidiaries is included in the Company's periodic reports filed with the Securities and Exchange Commission.
Non-GAAP Financial Measures
The United States Securities and Exchange Commission requires
public companies, such as Energen Corporation (the Company), to
reconcile Non-GAAP (GAAP refers to generally accepted accounting
principles) financial measures to related GAAP
measures.After-tax Cash Flows and Adjusted Cash Flows from
Operations Excluding Alabama Gas Corporation (Alagasco) are
Non-GAAP financial measures.Energen believes after-tax cash
flows are relevant because they are a measure of cash available to
fund the Company's capital expenditures, dividends, debt
reduction, and other investments. Similarly, Adjusted Cash Flows
from Operations Excluding Alagasco reflect comparable information
specific to the Company's non-regulated activities.
Reconciliation To GAAP Information
($ in millions)
Years Ended 12/31
2008 Actual 2009 Estimate(e) 2010 Estimate(e)
Net Income (GAAP) 322 248 - 262 288 - 317
Depreciation, depletion and amortization 188 238 - 238 266 - 266
Deferred income taxes, net 188 99 - 99 69 - 69
After-tax Cash Flows (Non-GAAP) 698 585 - 599 623 - 652
Changes in assets and liabilities and other adjustments (130 ) 29 - 29 3 - 3
Net Cash Provided by Operating Activities (GAAP) 568 614 - 628 626 - 655
Reconciliation To GAAP Information
($ in millions)
Years Ended 12/31
2008 Actual 2009 Estimate(e) 2010 Estimate(e)
Net Cash Provided by Operating Activities (GAAP) 568 614 - 628 626 - 655
Changes in assets and liabilities and other adjustments 130 (29 ) - (29 ) (3 ) - (3 )
After-tax Cash Flow (Non-GAAP) 698 585 - 599 623 - 652
Less: AGC cash flows from operations and other (133 ) (124 ) (124 ) (78 ) - (78 )
Adj. Cash Flows from Operations Excluding Alagasco (Non-GAAP) 565 461 - 475 545 - 574
(e) This estimate is a "forward-looking statement" as defined by
the Securities and Exchange Commission.All statements based on
future expectations rather than on historical facts are
forward-looking statements that are dependent on certain events,
risks and uncertainties that could cause actual results to differ
materially from those anticipated.In addition, the Company
cannot guarantee the absence of errors in input data, calculations
and formulas used in its estimates, assumptions and forecasts.A
discussion of risks and uncertainties, which could affect future
results of Energen and its subsidiaries, is included in the
Company's periodic reports filed with the Securities and Exchange
Commission.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 3 months ending September 30, 2009 and 2008
3rd Quarter
(in thousands, except per share data) 2009 2008 Change
Operating Revenues
Oil and gas operations $ 218,501 $ 247,753 $ (29,252 )
Natural gas distribution 68,788 82,452 (13,664 )
Total operating revenues 287,289 330,205 (42,916 )
Operating Expenses
Cost of gas 29,377 35,901 (6,524 )
Operations and maintenance 97,963 88,168 9,795
Depreciation, depletion and amortization 61,323 47,111 14,212
Taxes, other than income taxes 15,471 27,266 (11,795 )
Accretion expense 1,306 1,081 225
Total operating expenses 205,440 199,527 5,913
Operating Income 81,849 130,678 (48,829 )
Other Income (Expense)
Interest expense (10,017 ) (10,319 ) 302
Other income 2,536 725 1,811
Other expense (229 ) (2,009 ) 1,780
Total other expense (7,710 ) (11,603 ) 3,893
Income Before Income Taxes 74,139 119,075 (44,936 )
Income tax expense 27,018 46,011 (18,993 )
Net Income $ 47,121 $ 73,064 $ (25,943 )
Diluted Earnings Per Average Common Share $ 0.65 $ 1.01 $ (0.36 )
Basic Earnings Per Average Common Share $ 0.66 $ 1.02 $ (0.36 )
Diluted Avg. Common Shares Outstanding 71,996 72,116 (120 )
Basic Avg. Common Shares Outstanding 71,651 71,590 61
Dividends Per Common Share $ 0.125 $ 0.12 $ 0.005
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 9 months ending September 30, 2009 and 2008
Year-to-date
(in thousands, except per share data) 2009 2008 Change
Operating Revenues
Oil and gas operations $ 606,158 $ 704,428 $ (98,270 )
Natural gas distribution 471,457 488,689 (17,232 )
Total operating revenues 1,077,615 1,193,117 (115,502 )
Operating Expenses
Cost of gas 232,283 253,159 (20,876 )
Operations and maintenance 274,850 268,147 6,703
Depreciation, depletion and amortization 172,308 133,641 38,667
Taxes, other than income taxes 57,099 92,039 (34,940 )
Accretion expense 3,605 3,181 424
Total operating expenses 740,145 750,167 (10,022 )
Operating Income 337,470 442,950 (105,480 )
Other Income (Expense)
Interest expense (29,586 ) (31,699 ) 2,113
Other income 4,058 1,455 2,603
Other expense (589 ) (3,057 ) 2,468
Total other expense (26,117 ) (33,301 ) 7,184
Income Before Income Taxes 311,353 409,649 (98,296 )
Income tax expense 113,649 153,019 (39,370 )
Net Income $ 197,704 $ 256,630 $ (58,926 )
Diluted Earnings Per Average Common Share $ 2.75 $ 3.56 $ (0.81 )
Basic Earnings Per Average Common Share $ 2.76 $ 3.58 $ (0.82 )
Diluted Avg. Common Shares Outstanding 71,878 72,129 (251 )
Basic Avg. Common Shares Outstanding 71,641 71,604 37
Dividends Per Common Share $ 0.375 $ 0.36 $ 0.015
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the 12 months ending September 30, 2009 and 2008
Trailing 12 Months
(in thousands, except per share data) 2009 2008 Change
Operating Revenues
Oil and gas operations $ 815,862 $ 924,208 $ (108,346 )
Natural gas distribution 637,546 620,364 17,182
Total operating revenues 1,453,408 1,544,572 (91,164 )
Operating Expenses
Cost of gas 330,898 319,004 11,894
Operations and maintenance 361,463 350,579 10,884
Depreciation, depletion and amortization 227,080 176,834 50,246
Taxes, other than income taxes 72,665 116,700 (44,035 )
Accretion expense 4,714 4,208 506
Total operating expenses 996,820 967,325 29,495
Operating Income 456,588 577,247 (120,659 )
Other Income (Expense)
Interest expense (39,866 ) (43,144 ) 3,278
Other income 2,394 1,727 667
Other expense (2,454 ) (3,390 ) 936
Total other expense (39,926 ) (44,807 ) 4,881
Income Before Income Taxes 416,662 532,440 (115,778 )
Income tax expense 153,673 196,396 (42,723 )
Net Income $ 262,989 $ 336,044 $ (73,055 )
Diluted Earnings Per Average Common Share $ 3.66 $ 4.66 $ (1.00 )
Basic Earnings Per Average Common Share $ 3.67 $ 4.69 $ (1.02 )
Diluted Avg. Common Shares Outstanding 71,874 72,141 (267 )
Basic Avg. Common Shares Outstanding 71,640 71,626 14
Dividends Per Common Share $ 0.495 $ 0.475 $ 0.02
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 3 months ending September 30, 2009 and 2008
3rd Quarter
(in thousands, except sales price data) 2009 2008 Change
Oil and Gas Operations
Operating revenues
Natural gas $ 115,227 $ 145,283 $ (30,056 )
Oil 80,225 82,375 (2,150 )
Natural gas liquids 17,496 18,404 (908 )
Other 5,553 1,691 3,862
Total $ 218,501 $ 247,753 $ (29,252 )
Production volumes
Natural gas (MMcf) 18,881 17,258 1,623
Oil (MBbl) 1,253 1,055 198
Natural gas liquids (MMgal) 20.0 17.8 2.2
Total production volumes (MMcfe) 29,253 26,134 3,119
Revenue per unit of production including effects of all derivative
instruments
Natural gas (Mcf) $ 6.10 $ 8.42 $ (2.32 )
Oil (barrel) $ 64.03 $ 78.08 $ (14.05 )
Natural gas liquids (gallon) $ 0.88 $ 1.03 $ (0.15 )
Other data
Lease operating expense (LOE)
LOE and other $ 45,480 $ 43,890 $ 1,590
Production taxes 9,050 20,610 (11,560 )
Total $ 54,530 $ 64,500 $ (9,970 )
Depreciation, depletion and amortization $ 48,473 $ 34,849 $ 13,624
General and administrative expense $ 15,390 $ 9,147 $ 6,243
Capital expenditures $ 37,596 $ 122,597 $ (85,001 )
Exploration expenditures $ 1,120 $ 906 $ 214
Operating income $ 97,682 $ 137,270 $ (39,588 )
Natural Gas Distribution
Operating revenues
Residential $ 36,371 $ 38,347 $ (1,976 )
Commercial and industrial 20,834 24,121 (3,287 )
Transportation 12,043 10,816 1,227
Other (460 ) 9,168 (9,628 )
Total $ 68,788 $ 82,452 $ (13,664 )
Gas delivery volumes (MMcf)
Residential 1,498 1,505 (7 )
Commercial and industrial 1,235 1,390 (155 )
Transportation 10,504 10,706 (202 )
Total 13,237 13,601 (364 )
Other data
Depreciation and amortization $ 12,850 $ 12,262 $ 588
Capital expenditures $ 21,133 $ 15,959 $ 5,174
Operating loss $ (15,237 ) $ (5,891 ) $ (9,346 )
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 9 months ending September 30, 2009 and 2008
Year-to-date
(in thousands, except sales price data) 2009 2008 Change
Oil and Gas Operations
Operating revenues
Natural gas $ 343,684 $ 411,453 $ (67,769 )
Oil 204,587 221,402 (16,815 )
Natural gas liquids 48,212 55,915 (7,703 )
Other 9,675 15,658 (5,983 )
Total $ 606,158 $ 704,428 $ (98,270 )
Production volumes
Natural gas (MMcf) 54,532 50,081 4,451
Oil (MBbl) 3,456 3,005 451
Natural gas liquids (MMgal) 55.9 52.7 3.2
Total production volumes (MMcfe) 83,259 75,639 7,620
Revenue per unit of production including effects of all derivative
instruments
Natural gas (Mcf) $ 6.30 $ 8.22 $ (1.92 )
Oil (barrel) $ 59.19 $ 73.69 $ (14.5 )
Natural gas liquids (gallon) $ 0.86 $ 1.06 $ (0.20 )
Other data
Lease operating expense (LOE)
LOE and other $ 134,723 $ 128,627 $ 6,096
Production taxes 24,160 58,739 (34,579 )
Total $ 158,883 $ 187,366 $ (28,483 )
Depreciation, depletion and amortization $ 134,189 $ 97,240 $ 36,949
General and administrative expense $ 37,830 $ 34,574 $ 3,256
Capital expenditures $ 353,424 $ 295,507 $ 57,917
Exploration expenditures $ 1,374 $ 4,215 $ (2,841 )
Operating income $ 270,277 $ 377,852 $ (107,575 )
Natural Gas Distribution
Operating revenues
Residential $ 305,663 $ 301,633 $ 4,030
Commercial and industrial 126,128 133,004 (6,876 )
Transportation 39,268 37,825 1,443
Other 398 16,227 (15,829 )
Total $ 471,457 $ 488,689 $ (17,232 )
Gas delivery volumes (MMcf)
Residential 15,784 16,247 (463 )
Commercial and industrial 7,613 8,349 (736 )
Transportation 29,775 36,267 (6,492 )
Total 53,172 60,863 (7,691 )
Other data
Depreciation and amortization $ 38,119 $ 36,401 $ 1,718
Capital expenditures $ 57,107 $ 44,955 $ 12,152
Operating income $ 68,844 $ 67,125 $ 1,719
SELECTED BUSINESS SEGMENT DATA (UNAUDITED)
For the 12 months ending September 30, 2009 and 2008
Trailing 12 Months
(in thousands, except sales price data) 2009 2008 Change
Oil and Gas Operations
Operating revenues
Natural gas $ 468,514 $ 539,423 $ (70,909 )
Oil 276,093 291,511 (15,418 )
Natural gas liquids 60,513 75,462 (14,949 )
Other 10,742 17,812 (7,070 )
Total $ 815,862 $ 924,208 $ (108,346 )
Production volumes
Natural gas (MMcf) 72,024 66,649 5,375
Oil (MBbl) 4,565 3,986 579
Natural gas liquids (MMgal) 73.9 72.3 1.6
Total production volumes (MMcfe) 109,974 100,895 9,079
Revenue per unit of production including effects of all derivative
instruments
Natural gas (Mcf) $ 6.50 $ 8.09 $ (1.59 )
Oil (barrel) $ 60.48 $ 73.14 $ (12.66 )
Natural gas liquids (gallon) $ 0.82 $ 1.04 $ (0.22 )
Other data
Lease operating expense (LOE)
LOE and other $ 180,223 $ 163,671 $ 16,552
Production taxes 27,973 73,969 (45,996 )
Total $ 208,196 $ 237,640 $ (29,444 )
Depreciation, depletion and amortization $ 176,488 $ 128,398 $ 48,090
General and administrative expense $ 44,996 $ 48,777 $ (3,781 )
Capital expenditures $ 507,488 $ 420,191 $ 87,297
Exploration expenditures $ 6,455 $ 5,438 $ 1,017
Operating income $ 375,013 $ 499,747 $ (124,734 )
Natural Gas Distribution
Operating revenues
Residential $ 412,310 $ 383,613 $ 28,697
Commercial and industrial 170,843 167,629 3,214
Transportation 52,559 50,571 1,988
Other 1,834 18,551 (16,717 )
Total $ 637,546 $ 620,364 $ 17,182
Gas delivery volumes (MMcf)
Residential 21,169 20,609 560
Commercial and industrial 10,198 10,569 (371 )
Transportation 40,297 49,318 (9,021 )
Total 71,664 80,496 (8,832 )
Other data
Depreciation and amortization $ 50,592 $ 48,436 $ 2,156
Capital expenditures $ 75,472 $ 58,221 $ 17,251
Operating income $ 83,675 $ 80,133 $ 3,542
SOURCE: Energen Corporation
Energen Corporation Julie S. Ryland, 205-326-8421
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.