Plains Exploration & Production Company announces 2012 full-year results

Thursday, February 21, 2013
  • Total revenues were $869.2 million, a 68% increase compared to fourth-quarter 2011.
  • Total revenues were $2.6 billion, a 31% increase compared to full-year 2011.
  • Proved reserves increased 7% to 440.4 million BOE.

Plains Exploration & Production Company (NYSE: PXP) announces 2012 fourth-quarter and full-year financial and operating results. These results reflect the one month benefit of the Gulf of Mexico assets acquired on November 30, 2012.

FOURTH-QUARTER HIGHLIGHTS

  • Total revenues were $869.2 million, a 68% increase compared to fourth-quarter 2011.
  • Total daily sales volumes averaged approximately 132.9 thousand barrels of oil equivalent ("BOE"), a 35% increase per diluted share, or a 62% increase per diluted share pro forma for the December 2011 asset sales, compared to fourth-quarter 2011.
  • Oil daily sales volumes averaged 93.0 thousand barrels, a 91% increase per diluted share, or 115% per diluted share pro forma for the December 2011 asset sales, compared to fourth-quarter 2011.
  • Net cash provided by operating activities was $284.2 million, a 51% increase over fourth-quarter 2011.
  • Operating cash flow (a non-GAAP measure) was $536.2 million, an 89% increase over fourth-quarter 2011.
  • Income from operations was $177.0 million, a 73% increase over fourth-quarter 2011.
  • Net income attributable to common stockholders was $218.6 million, or $1.65 per diluted share compared to fourth-quarter 2011 net income attributable to common stockholders of $97.7 million, or $0.69 per diluted share.
  • Adjusted net income attributable to common stockholders (a non-GAAP measure) was $54.8 million, or $0.41 per diluted share, compared to fourth-quarter 2011 adjusted net income attributable to common stockholders of $28.6 million, or $0.20 per diluted share. The adjusted fourth-quarter results include an increase in stock-based compensation expense which resulted in a $0.05 after-tax decrease in earnings per diluted share. Stock-based compensation increased due to the 30% increase in PXP stock price following the Freeport-McMoRan Copper & Gold Inc. merger announcement in December. Also included in the adjusted quarterly results was an increase in the oil and gas depreciation, depletion and amortization ("DD&A") rate which resulted in a $0.29 after-tax decrease in earnings per diluted share. The higher DD&A rate primarily reflects the impact of lower sustained natural gas prices on gas reserves and our Gulf of Mexico acquisition.

FULL-YEAR HIGHLIGHTS

  • Total revenues were $2.6 billion, a 31% increase compared to full-year 2011.
  • Total daily sales volumes averaged approximately 106.2 thousand BOE, a 16% increase per diluted share, or a 42% increase per diluted share pro forma for the December 2011 asset sales, compared to full-year 2011.
  • Oil daily sales volumes averaged 66.6 thousand barrels, a 47% increase per diluted share, or 67% per diluted share pro forma for the December 2011 asset sales, compared to full-year 2011.
  • Net cash provided by operating activities was $1.3 billion, a 20% increase over full-year 2011.
  • Operating cash flow (a non-GAAP measure) was $1.6 billion, a 42% increase over full-year 2011.
  • Income from operations was $615.7 million, a 4% increase over full-year 2011.
  • Net income attributable to common stockholders was $306.4 million, or $2.32 per diluted share compared to full-year 2011 net income attributable to common stockholders of $205.3 million, or $1.44 per diluted share.
  • Adjusted net income attributable to common stockholders (a non-GAAP measure) was $229.2 million, or $1.74 per diluted share, compared to full-year 2011 adjusted net income attributable to common stockholders of $223.0 million, or $1.56 per diluted share. Included in the adjusted results was an increase in the oil and gas DD&A rate which resulted in a $1.11 after-tax decrease in earnings per diluted share. The higher DD&A rate primarily reflects the impact of lower sustained natural gas prices on gas reserves.

2012 RESERVES

  • Proved reserves increased 7% to 440.4 million BOE.
  • Probable reserves are 193.8 million BOE.
  • The Company estimates possible reserves to be 157.0 million BOE and resource potential to be 2,817.0 million BOE.
  • 100% of proved reserve volumes and 99% of probable reserve volumes are based upon reserve reports prepared by independent petroleum engineers. 1% of probable reserve volumes, possible reserve volumes and resource potential were prepared by PXP, which were not audited by an independent petroleum engineer.
  • Standardized measure of discounted future net cash flows for proved reserves is $10.0 billion compared to $5.1 billion in 2011.
  • PV-10 value for proved reserves (a non-GAAP measure) is $13.7 billion compared to $7.9 billion in 2011.
  • Proved developed reserves are 63% of total proved reserves.
  • Proved oil reserves as a percentage of proved reserves are 82%.
  • Reserve replacement for proved reserves (a non-GAAP measure) is 181%.

FINANCIAL SUMMARY

PXP reported fourth-quarter revenues of $869.2 million and net income attributable to common stockholders of $218.6 million, or $1.65 per diluted share, compared to revenues of $517.5 million and net income attributable to common stockholders of $97.7 million, or $0.69 per diluted share, for the fourth-quarter 2011. The fourth-quarter net income attributable to common stockholders includes certain items affecting the comparability of operating results. Those items consist of realized and unrealized gains and losses on our mark-to-market derivative contracts resulting in a net loss of $15.5 million due in large part to increased crude oil forward prices, a $298.9 million unrealized gain on investment in McMoRan Exploration Co. ("McMoRan") common stock, acquisition, merger and related financing costs of $70.5 million, and other items. When considering these items, PXP reports adjusted net income attributable to common stockholders of $54.8 million, or $0.41 per diluted share (a non-GAAP measure), compared to $28.6 million, or $0.20 per diluted share, for the same period in 2011.

For the full-year, PXP reports revenues of $2.6 billion and net income attributable to common stockholders of $306.4 million, or $2.32 per diluted share, compared to revenues of $2.0 billion and net income attributable to common stockholders of $205.3 million, or $1.44 per diluted share, for the same period in 2011. These results include certain items affecting comparability of operating results. These items consist of realized and unrealized gains and losses on our mark-to-market derivative contracts, an unrealized gain on investment in McMoRan common stock, acquisition, merger and related financing costs and other items. When considering these items, adjusted net income attributable to common stockholders for the full-year of 2012 was $229.2 million, or $1.74 per diluted share (a non-GAAP measure), compared to $223.0 million, or $1.56 per diluted share, for the same period in 2011.

A reconciliation of non-GAAP financial measures used in this release to comparable GAAP financial measures is included with the financial tables.

OPERATIONAL UPDATE

PXP's 2012 fourth-quarter daily sales volumes averaged 132.9 thousand BOE per day, a 35% increase per diluted share and a 62% increase per diluted share pro forma for the December 2011 asset sales compared to fourth-quarter 2011.

Crude oil sales volumes averaged 85.4 thousand barrels per day, compared to fourth-quarter 2011 average volumes of 46.4 thousand barrels per day. The robust volume growth is driven primarily by one month contribution from the deepwater Gulf of Mexico assets acquired in November 2012, continued strength in the Eagle Ford Field, and steady, consistent performance in California.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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