NON-GAAP RECONCILIATIONS
We use EBITDA, Adjusted Cash Flow from Operations and Net Income Excluding Fair Value Gains and Losses on Derivative Contracts as performance measurements in our presentations to analysts. These measurements are not recognized under generally accepted accounting principles. The reconciliations below demonstrate how we calculate such measurements from our financial statements. EBITDA is a widely accepted measure of profitability that we believe may be used to measure our ability to service our debt. Adjusted cash flow from operations measures our cash flow generated from operations excluding the timing effects related to the collection or payment of our receivables and payables which we believe reflects the available cash generated from our operating activities. Net income excluding fair value gains and losses on derivative contracts represents our net income without regard to the fair value gains and losses on our oil and natural gas derivative contracts. The Company believes that it is important to consider this measure separately as it reflects the economic value of these contracts on our financial statements as a result of actual cash settlements without regards to changes in the market value of the contracts during the period.
Annual:
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EBITDA |
2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 |
|
Income before income taxes |
$ 81,374 | $ 70,315 | $ 80,153 | $121,840 | $248,041 | $329,574 | $393,414 | $624,228 | ($122,189) |
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Interest expense, net of capitalized interest |
22,335 | 26,833 | 40,830 | 19,468 | 17,978 | 23,575 | 30,830 | 32,596 | 47,430 |
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DD&A and writedown of oil and gas properties |
96,509 | 94,236 | 94,708 | 97,527 | 98,802 | 149,165 | 195,900 | 447,792 | 238,323 |
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Amortization of hedging contracts & fair value changes |
7,816 | (3,093) | (3,578) | 1,270 | 12,201 | (25,130) | 39,077 | (257,606) | 382,960 |
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Interest Income and other |
(1,178) | (800) | (749) | (994) | (2,288) | (4,210) | (2,590) | (9,561) | (9,010) |
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EBITDA |
$206,856 | $187,491 | $211,364 | $239,111 | $374,734 | $472,974 | $656,631 | $837,449 | $537,514 |
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Adjusted Cash Flow from Operations |
2001 |
2002 |
2003 |
2004 | 2005 | 2006 | 2007 | 2008 | 2009 |
|
Cash flow from operations (GAAP measure) |
$185,047 | $159,600 | $197,615 | $168,652 | $360,960 | $461,810 | $570,214 | $774,519 | $530,599 |
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Sum of changes in assets and liabilities relating to operations* |
1,754 | 4,965 | (7,813) | 31,541 | (17,577) | (13,396) | 38,303 | 5,290 | 9,438 |
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Adjusted cash flow from operations |
$186,801 | $164,565 | $189,802 | $200,193 | $343,383 | $448,414 | $608,517 | $779,809 | $540,037 |
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Quarter Ended: |
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Adjusted Cash Flow from Operations |
03/31/10 | 03/31/09 | 6/30/10 | 6/30/09 | 9/30/09 | 9/30/08 | 12/31/09 | 12/31/08 | |
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Cash flow from operations (GAAP measure) |
$113,168 | $112,619 | $265,872 | $148,170 | $145,645 | $262,442 | $124,165 | $141,748 | |
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Sum of changes in assets and liabilities relating to operations* |
(47,198) | 30,541 | (24,972) | (39,966) | (8,635) | (51,273) | 27,498 | (18,974) | |
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Adjusted cash flow from operations |
$65,970 | $143,160 |
$240,900 | $108,204 | $137,010 | $211,169 | $151,663 | $122,774 | |
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Year to Date Ended: |
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Adjusted Cash Flow from Operations |
6/30/10 | 6/30/09 | 9/30/09 | 9/30/08 | 12/31/09 | 12/31/08 | |||
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Cash flow from operations (GAAP measure) |
$379,040 | $260,789 | $406,434 | $632,771 | $530,599 | $774,519 | |||
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Sum of changes in assets and liabilities relating to operations* |
(72,170) | (9,425) | (18,060) | 24,264 | 9,438 | 5,290 | |||
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Adjusted cash flow from operations |
$306,870 | $251,364 | $388,374 | $657,035 | $540,037 | $779,809 | |||
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*Calculated from Statement of Cash Flows included in the Company's filings with the SEC. |
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Quarter Ended: |
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Net Income Excluding Non-Cash Fair Value Charge on Derivative Contracts and Other Special Charges |
3/31/10 | 3/31/09 | 6/30/10 | 6/30/09 | 9/30/09 | 9/30/08 | 12/31/09 | 12/31/08 | |
|
Net income (loss) (GAAP Measure) |
$96,888 | $(18,297) | $135,367 | $(87,240) | $26,885 | $157,548 | $3,496 | $43,793 | |
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Non-cash fair value charge on derivative contracts (net of taxes) |
(62,636) | 65.938 | (78,041) | 120,770 | 13,816 | (53,368) | 36,911 | (149,099) | |
|
Gain on sale of interest in Genesis (net of taxes) |
(62,972) | --- | --- | --- | --- | --- | --- | --- | |
|
Interest on newly issued debt one month prior to merger (net of taxes) |
4,263 | --- | --- |
--- | --- | --- | --- | --- | |
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Transaction Costs - Encore merger (net of taxes) |
30,752 | --- | 14,126 | --- | --- | --- | --- | --- | |
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Abandoned acquisition costs (net of taxes) |
--- | --- | --- |
--- | --- | --- | --- | --- | |
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Deferred tax adjustment results from rate increases |
10,033 | --- | (2,961) | --- | --- | --- | --- | --- | |
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Adjustments attributable to non-controlling interests |
1,039 | --- | 4,368 | --- | --- | --- | --- | --- | |
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Founder's retirement compensation (net of taxes) |
--- | --- | --- | 6,200 | --- | --- | --- | --- | |
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Write down of oil and gas properties (net of taxes) |
--- | --- | --- | --- | --- | --- | --- | 140,120 | |
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Adjusted net income excluding non-cash fair value charge on derivative contracts and special charges |
$17,367 | $47,641 | $72,859 | $39,730 | $40,701 | $104,180 | $40,407 | $34,814 | |
