Coastal Energy Announces Third Quarter 2012 Financial Results & Operations Update
Press Release: Coastal Energy Company – 10 hours ago
finance.yahoo.com
HOUSTON, Nov. 12, 2012 (GLOBE NEWSWIRE) -- Coastal Energy Company (the "Company" or "Coastal Energy") ( CEN.TO) ( CEO.L), an independent exploration and production company with assets in Thailand, announces the financial results for the three and nine months ended September 30, 2012. The functional and reporting currency of the Company is the United States dollar.
Third Quarter 2012 Highlights
Total Company production increased to 21,798 boe/d in the third quarter from 12,028 boe/d in the same period last year. The Company's offshore production was 19,626 bbl/d compared to 10,191 bbl/d in Q3 2011, with the increase due to the inclusion of production from both platforms at Bua Ban North. Offshore production was impacted by downtime at Bua Ban North and Songkhla during rig moves as well as the MOPU replacement at Bua Ban North. Onshore production of 2,172 boe/d increased from Q3 2011 levels of 1,837 boe/d as natural gas demand continued to recover following the flooding in Thailand in late 2011.
EBITDAX for Q3 2012 was $114.6 million, 157% higher than the $44.7 million recorded in Q3 2011. Revenue and EBITDAX were driven higher by increased oil liftings and commodity prices. Crude oil inventory was 577,863 barrels at September 30, 2012, the revenue from which will be recognized in the fourth quarter. The Company saw closing inventory increase by 121,445 barrels (approximately 27%) during Q3 2012.
The Company announced successful drilling results in the Songkhla A field. The A-10 well, drilled in the eastern most fault block of the field, encountered a record amount of net pay for the basin and exhibited very favorable reservoir characteristics in the Lower Oligocene interval. In late September 2012, the well was brought on production at approximately 4,000 bbl/d. Subsequently, the Company drilled the A-13 well in the previously untested northeast fault block and encountered 67 feet of net pay in the Lower Oligocene. Successful results from the A-13 provide the opportunity for an additional well (Songkhla A-19) higher up structure to add additional pay thickness.
The Company completed the conversion of the Richmond mobile offshore production unit (MOPU). Subsequently, in October 2012, the Richmond was installed at the Bua Ban North B field, increasing production capabilities to 55,000 bbl/d. The previous MOPU in the Bua Ban North B field was purchased by the Company and reinstalled at Bua Ban South.
The Company signed a contract with a subsidiary of Atwood Oceanics, Inc. for the Manta jackup drilling rig. The rig is scheduled to be delivered by late November and will conduct drilling operations for the Company in the Gulf of Thailand and offshore Malaysia.
The Company upsized and amended its senior secured revolving credit facility with BNP Paribas and Commonwealth Bank of Australia. The facility has been increased from $100 million to $200 million and includes two additional banks, Standard Bank and Standard Chartered Bank.
The Company is approximately 60% complete with the acquisition of new 3D seismic data being shot over the entire Songkhla basin. Current expectations are for delivery of the processed data in Q1 2013.
The following financial statements for the Company are abbreviated versions. The Company's complete financial statements for the three and nine months ended September 30, 2012 with the notes thereto and the related Management Discussion and Analysis can be found either on Coastal's website at www.CoastalEnergy.com or on SEDAR at www.sedar.com. All amounts are in US$ thousands, except share and per share amounts.
| Three months ended | Nine months ended |
| September 30, | September 30, |
| 2012 | 2011 | 2012 | 2011 |
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| | Revenues and Other Income |
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| | Oil sales | 170,894 | 81,670 | 554,612 | 218,854 | | Royalties | (18,305) | (6,295) | (59,062) | (17,158) | | Oil sales, net of royalties | 152,589 | 75,375 | 495,550 | 201,696 | | Other income (Note 11) | (5,122) | 10,717 | (5,515) | (12,394) |
| 147,467 | 86,092 | 490,035 | 189,302 |
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| | Expenses |
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| | Production | 32,718 | 27,148 | 110,092 | 66,490 | | Depreciation and depletion (Note 6) | 14,778 | 13,308 | 53,412 | 38,292 | | Net profits interest (Note 12) | 39 | -- | 908 | -- | | General and administrative | 9,125 | 7,802 | 24,509 | 19,522 | | Exploration (Note 5) | 7,191 | 345 | 7,477 | 6,829 | | Debt financing fees | 501 | 258 | 1,133 | 523 | | Finance expenses | 1,940 | 913 | 3,141 | 3,276 | | Gains on disposal, property, plant and equipment | (252) | (873) | (252) | (873) |
| 66,040 | 48,901 | 200,420 | 134,059 |
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| | Net income before income taxes and share of |
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| | net income from Apico LLC | 81,427 | 37,191 | 289,615 | 55,243 |
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| | Share of net income from Apico LLC (Note 7) | 4,537 | 4,436 | 14,041 | 11,964 | | Net income before income taxes | 85,964 | 41,627 | 303,656 | 67,207 |
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| | Income taxes (Note 14) |
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| | Current | 42,135 | 135 | 124,032 | 135 | | Deferred | 2,778 | 22,493 | 46,576 | 37,681 |
| 44,913 | 22,628 | 170,608 | 37,816 |
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| | Net income and comprehensive income | 41,051 | 18,999 | 133,048 | 29,391 |
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| | Net income and total comprehensive income attributable to: |
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| | Shareholders of Coastal Energy | 40,100 | 19,013 | 130,385 | 28,467 | | Non-controlling interest | 951 | (14) | 2,663 | 924 |
| 41,051 | 18,999 | 133,048 | 29,391 |
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| | Net income per share: |
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| | Basic (Note 13) | 0.35 | 0.17 | 1.15 | 0.25 | | Diluted (Note 13) | 0.34 | 0.16 | 1.10 | 0.25 |
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| | The accompanying notes are an integral part of these condensed interim consolidated financial statements. |
| September 30 | December 31, | | As at | 2012 | 2011 |
| $ | $ |
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| | Assets |
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| | Current Assets |
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| | Cash | 29,267 | 22,995 | | Restricted cash (Note 3) | 6,413 | 28,447 | | Accounts receivable (Note 4) | 77,236 | 16,939 | | Derivative asset (Note 10) | 167 | 59 | | Crude oil inventory | 12,962 | 11,304 | | Marine fuel inventory | 4,416 | 2,857 | | Prepaids and other current assets | 950 | 1,094 | | Total current assets | 131,411 | 83,695 |
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| | Non-Current Assets |
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| | Exploration and evaluation assets (Note 5) | 82,711 | 31,881 | | Property, plant and equipment (Note 6) | 511,736 | 355,052 | | Investment in and advances to Apico LLC (Note 7) | 61,046 | 47,698 | | Deposits and other assets | 6,274 | 405 | | Total non-current assets | 661,767 | 435,036 | | Total Assets | 793,178 | 518,731 |
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| | Liabilities |
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| | Current Liabilities |
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| | Accounts payable and accrued liabilities (Note 8) | 157,513 | 59,471 | | Current portion of long-term debt (Note 10) | 342 | 55,662 | | Current portion of derivative liabilities (Note 10) | 3,910 | 14,557 | | Derivative liability - Warrants (Note 9) | 3,486 | 2,853 | | Total current liabilities | 165,251 | 132,543 |
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| | Non-Current Liabilities |
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| | Long-term debt (Note 10) | 94,714 | 22,156 | | Non-current portion of derivative liabilities (Note 10) | 506 | 1,274 | | Deferred tax liabilities | 116,343 | 69,767 | | Decommissioning liabilities | 46,915 | 42,124 | | Total Non-Current Liabilities | 258,478 | 135,321 |
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| | Shareholders' Equity (Note 13) |
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| | Common shares | 212,500 | 211,554 | | Contributed surplus | 20,116 | 16,401 | | Retained earnings | 131,754 | 17,630 | | Total Shareholders' Equity | 364,370 | 245,585 | | Non-controlling interest | 5,079 | 5,282 | | Total equity | 369,449 | 250,867 | | Total liabilities and equity | 793,178 | 518,731 |
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| | Commitments and contingencies (Note 16) |
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| | The accompanying notes are an integral part of these condensed interim consolidated financial statements. |
| Three months ended | Nine months ended |
| September 30, | September 30, |
| 2012 | 2011 | 2012 | 2011 | | Operating activities |
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| | Net income | 41,051 | 18,999 | 133,048 | 29,391 | | Adjustments: |
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| | Share of net income from Apico LLC | (4,537) | (4,436) | (14,041) | (11,964) | | Unrealized (gain) loss on derivative instruments | 362 | (15,019) | (11,523) | (4,506) | | Depletion and depreciation | 14,778 | 13,308 | 53,412 | 38,292 | | Finance expenses | 1,940 | 913 | 3,141 | 3,276 | | Amortisation of debt financing fees | 147 | 248 | 779 | 513 | | Share-based compensation | 5,531 | 1,941 | 10,167 | 7,687 | | Deferred income taxes | 2,778 | 22,493 | 46,576 | 37,681 | | Unrealized foreign exchange (gain) loss | 17 | (577) | (49) | (120) | | Exploration expense | 7,191 | 345 | 7,477 | 6,829 | | Gains on property, plant and equipment | (252) | (873) | (252) | (873) | | Income taxes paid | (63,527) | (86) | (63,656) | (86) | | Interest received | 2 | 2 | 5 | 4 | | Interest paid | (318) | (405) | (1,570) | (2,699) | | Earnings Distributions from Apico LLC | 9,943 | 7,588 | 9,943 | 9,756 |
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| | Change in non-cash working capital: |
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| | Accounts receivable | (49,066) | (4,802) | (60,297) | (6,595) | | Inventory | (1,325) | 840 | (3,217) | (3,472) | | Prepaids and other current assets | 106 | 96 | 144 | 576 | | Accounts payable and accrued liabilities | 6,348 | 5,421 | (1,885) | 6,311 | | Current income taxes payable | 45,520 | -- | 127,288 | -- | | Cash flow provided by operating activities | 16,689 | 45,996 | 235,490 | 110,001 |
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| | Financing Activities |
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| | Issuance of common shares, net of issuance costs | 727 | 666 | 2,753 | 6,108 | | Repurchase of shares | (3,712) | -- | (18,745) | -- | | Borrowings under long-term debt | 50,000 | -- | 50,000 | 6,275 | | Repayment of long-term debt | -- | -- | (30,000) | -- | | Loan arrangement fees | (2,915) | (71) | (3,883) | (419) | | Distributions to non-controlling interest | (1,074) | (450) | (2,866) | -- | | Other | -- | (131) | -- | (506) | | Cash flow (used in) provided by financing activities | 43,026 | 14 | (2,741) | 11,458 |
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| | Investing Activities |
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| | Decrease (increase) in restricted cash | (20) | 6,347 | 22,034 | 1,844 | | Expenditure on property, plant and equipment | (140,551) | (45,576) | (231,478) | (115,468) | | Acquisition of increased ownership interest in Apico LLC | -- | -- | -- | (1,446) | | Advances to Apico LLC | -- | -- | (9,250) | 250 | | Proceeds from disposal of property, plant and equipment | 352 | 250 | 352 | (125) | | Deposits and other assets - Payments | (6,000) | (122) | (6,000) | (606) | | Deposits and other assets - Refunds | -- | -- | 131 | -- | | Cash flow used in investing activities | (146,219) | (39,101) | (224,211) | (115,551) |
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| | Effect of exchange rate changes on cash | (875) | (501) | (2,266) | (1,198) |
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| | Increase (decrease) in cash | (87,379) | 6,408 | 6,272 | 4,710 | | Cash - Beginning of period | 116,646 | 2,186 | 22,995 | 3,884 | | Cash - End of period | 29,267 | 8,594 | 29,267 | 8,594 |
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| | The accompanying notes are an integral part of these condensed interim consolidated financial statements. |
| 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.
The Coastal Energy Company logo is available at globenewswire.com
Contact:
Enquiries:
Coastal Energy Company
Email: investor@CoastalEnergy.com
+1 (713) 877-6793
Strand Hanson Limited (Nominated Adviser)
+44 (0) 20 7409 3494
Rory Murphy / Scott McGregor
Macquarie Capital (Europe) Limited (Broker)
+44 (0) 20 3037 2000
Paul Connolly / Jeffrey Auld
FirstEnergy Capital LLP (Broker)
Hugh Sanderson / Travis Inlow
+44 (0) 20 7448 0200
Buchanan
Tim Thompson / Ben Romney
+44 (0) 20 7466 5000 |
