|
|
|
|
|
|
|
|
|
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
In thousands | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Weighted average common shares — basic
|
246,084 | 243,623 | 245,830 | 243,189 | ||||||||||||
Potentially dilutive securities:
|
||||||||||||||||
Stock options and SARs
|
— | 7,389 | — | 8,043 | ||||||||||||
Restricted stock
|
— | 1,389 | — | 1,371 | ||||||||||||
|
||||||||||||||||
Weighted average common shares -
diluted
|
246,084 | 252,401 | 245,830 | 252,603 | ||||||||||||
|
|
|
Six Months Ended | ||||
In thousands | June 30, 2009 | |||
Balance, beginning of period
|
$ | 45,064 | ||
Liabilities incurred and assumed during period
|
2,638 | |||
Revisions in estimated retirement obligations
|
857 | |||
Liabilities settled during period
|
(1,511 | ) | ||
Accretion expense
|
1,637 | |||
Sales
|
(838 | ) | ||
|
||||
Balance, end of period
|
$ | 47,847 | ||
|
|
June 30, | December 31, | |||||||
In thousands | 2009 | 2008 | ||||||
9.75% Senior Subordinated Notes due 2016
|
$ | 426,350 | $ | — | ||||
Discount on Senior Subordinated Notes due 2016
|
(28,566 | ) | — | |||||
7.5% Senior Subordinated Notes due 2015
|
300,000 | 300,000 | ||||||
Premium on Senior Subordinated Notes due 2015
|
556 | 599 | ||||||
7.5% Senior Subordinated Notes due 2013
|
225,000 | 225,000 | ||||||
Discount on Senior Subordinated Notes due 2013
|
(728 | ) | (826 | ) | ||||
NEJD financing — Genesis
|
172,163 | 173,618 | ||||||
Free State financing — Genesis
|
78,260 | 76,634 | ||||||
Senior bank loan
|
45,000 | 75,000 | ||||||
Capital lease obligations — Genesis
|
4,171 | 4,544 | ||||||
Capital lease obligations
|
2,484 | 2,705 | ||||||
|
||||||||
Total
|
1,224,690 | 857,274 | ||||||
Less current obligations
|
4,586 | 4,507 | ||||||
|
||||||||
Long-term debt and capital lease obligations
|
$ | 1,220,104 | $ | 852,767 | ||||
|
|
|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
In thousands | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Receipt (payment) on settlements of derivative contracts — oil
|
$ | 42,002 | $ | (12,131 | ) | $ | 127,838 | $ | (19,523 | ) | ||||||
Receipt (payment) on settlements of derivative contracts — gas
|
— | (16,463 | ) | — | (17,119 | ) | ||||||||||
Fair value adjustments to derivative contracts — expense
|
(194,791 | ) | (30,223 | ) | (301,142 | ) | (68,956 | ) | ||||||||
|
||||||||||||||||
Commodity derivative expense
|
$ | (152,789 | ) | $ | (58,817 | ) | $ | (173,304 | ) | $ | (105,598 | ) | ||||
|
Estimated Fair Value | ||||||||||||||||||||||||
NYMEX Contract Prices Per Bbl | Asset (Liability) | |||||||||||||||||||||||
Collar Prices | June 30, | December 31, | ||||||||||||||||||||||
Type of Contract and Period | Bbls/d | Swap Price | Floor | Ceiling | 2009 | 2008 | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Collar Contracts
|
||||||||||||||||||||||||
July 2009 - Dec. 2009
|
30,000 | — | $ | 75.00 | $ | 115.00 | $ | 39,279 | $ | 249,746 | ||||||||||||||
April 2010 - June 2010
|
5,000 | — | 50.00 | 76.00 | (3,089 | ) | — | |||||||||||||||||
April 2010 - June 2010
|
10,000 | — | 50.00 | 73.15 | (7,416 | ) | — | |||||||||||||||||
April 2010 - June 2010
|
5,000 | — | 50.00 | 76.40 | (3,009 | ) | — | |||||||||||||||||
April 2010 - June 2010
|
5,000 | — | 50.00 | 74.30 | (3,447 | ) | — | |||||||||||||||||
July 2010 - Sept. 2010
|
2,500 | — | 55.00 | 80.10 | (1,145 | ) | — | |||||||||||||||||
July 2010 - Sept. 2010
|
10,000 | — | 55.00 | 80.00 | (4,616 | ) | — | |||||||||||||||||
July 2010 - Sept. 2010
|
7,500 | — | 60.00 | 80.40 | (2,588 | ) | — | |||||||||||||||||
July 2010 - Sept. 2010
|
5,000 | — | 60.00 | 81.05 | (1,613 | ) | — | |||||||||||||||||
|
||||||||||||||||||||||||
Swap Contracts
|
||||||||||||||||||||||||
Jan. 2010 - March 2010
|
6,667 | $ | 52.50 | — | — | (12,369 | ) | — | ||||||||||||||||
Jan. 2010 - March 2010
|
3,333 | 52.20 | — | — | (6,270 | ) | — | |||||||||||||||||
Jan. 2010 - March 2010
|
5,000 | 52.10 | — | — | (9,449 | ) | — | |||||||||||||||||
Jan. 2010 - March 2010
|
5,000 | 50.90 | — | — | (9,969 | ) | — | |||||||||||||||||
Jan. 2010 - March 2010
|
5,000 | 51.45 | — | — | (9,731 | ) | — |
Estimated Fair Value | ||||||||||||||||
NYMEX Contract | Asset (Liability) | |||||||||||||||
Prices Per MMBtu | June 30, | December 31, | ||||||||||||||
Type of Contract and Period | MMBtu/d | Swap Price | 2009 | 2008 | ||||||||||||
(In thousands) | ||||||||||||||||
Swap Contracts
|
||||||||||||||||
Jan. 2010 - Dec. 2010
|
42,000 | $ | 5.67 | $ | (5,514 | ) | $ | — | ||||||||
Jan. 2011 - Dec. 2011
|
10,000 | 6.27 | (1,980 | ) | — | |||||||||||
Jan. 2011 - Dec. 2011
|
10,000 | 6.25 | (2,027 | ) | — | |||||||||||
Jan. 2011 - Dec. 2011
|
9,000 | 6.16 | (2,095 | ) | — |
Estimated Fair Value | ||||||||||
Asset (Liability) | ||||||||||
June 30, | December 31, | |||||||||
Type of Contract | Balance Sheet Location | 2009 | 2008 | |||||||
(In thousands) | ||||||||||
Derivatives not
designated as
hedging instruments:
|
||||||||||
|
||||||||||
Derivative Asset
|
||||||||||
Crude Oil contracts
|
Derivative assets - current | $ | 39,279 | $ | 249,746 | |||||
|
||||||||||
Derivative Liability
|
||||||||||
Crude Oil contracts
|
Derivative liability - current | (64,750 | ) | — | ||||||
Natural Gas contracts
|
Derivative liability - current | (205 | ) | — | ||||||
Crude Oil contracts
|
Derivative liability - long-term | (9,962 | ) | — | ||||||
Natural Gas contracts
|
Derivative liability - long-term | (11,410 | ) | — | ||||||
|
||||||||||
Total derivatives not
designated as hedging
instruments
|
$ | (47,048 | ) | $ | 249,746 | |||||
|
Amount of Gain / (Loss) | Amount of Gain / (Loss) | |||||||||||||||||||
Recognized in Income For | Recognized in Income For | |||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
Location of Gain/(Loss) | June 30, | June 30, | June 30, | June 30, | ||||||||||||||||
Type of Contract | Recognized in Income | 2009 | 2008 | 2009 | 2008 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Derivatives not
designated as hedging instruments:
|
||||||||||||||||||||
|
||||||||||||||||||||
Commodity Contracts
|
||||||||||||||||||||
Crude Oil Contracts
|
Commodity derivative expense | $ | (147,316 | ) | $ | (19,688 | ) | $ | (157,341 | ) | $ | (24,442 | ) | |||||||
Natural Gas Contracts
|
Commodity derivative expense | (5,473 | ) | (39,129 | ) | (15,963 | ) | (81,156 | ) | |||||||||||
|
||||||||||||||||||||
Total derivatives not
designated as hedging
instruments
|
$ | (152,789 | ) | $ | (58,817 | ) | $ | (173,304 | ) | $ | (105,598 | ) | ||||||||
|
|
Fair Value Measurements at June 30, 2009 Using: | ||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices | Other | Significant | ||||||||||||||
in Active | Observable | Unobservable | ||||||||||||||
Markets | Inputs | Inputs | ||||||||||||||
In thousands | (Level 1) | (Level 2) | (Level 3) | Total | ||||||||||||
Assets:
|
||||||||||||||||
Oil derivative contracts
|
$ | — | $ | 39,279 | $ | — | $ | 39,279 | ||||||||
Liabilities:
|
||||||||||||||||
Oil and natural gas derivative contracts
|
— | (86,327 | ) | — | (86,327 | ) | ||||||||||
|
||||||||||||||||
Total
|
$ | — | $ | (47,048 | ) | $ | — | $ | (47,048 | ) | ||||||
|
June 30, 2009 | December 31, 2008 | |||||||||||||||
Carrying | Estimated | Carrying | Estimated | |||||||||||||
In thousands | Amount | Fair Value | Amount | Fair Value | ||||||||||||
9.75% Senior Subordinated Notes due 2016
|
$ | 397,784 | $ | 438,075 | $ | — | $ | — | ||||||||
7.5% Senior Subordinated Notes due 2015
|
300,556 | 285,000 | 300,599 | 213,000 | ||||||||||||
7.5% Senior Subordinated Notes due 2013
|
224,272 | 214,875 | 224,174 | 171,000 | ||||||||||||
Senior Bank Loan
|
45,000 | 41,128 | 75,000 | 64,000 |
|
June 30, 2009 | ||||||||||||||||||||
Denbury | Denbury | |||||||||||||||||||
Resources Inc. | Onshore, LLC | Denbury | ||||||||||||||||||
(Parent and Co- | (Issuer and Co- | Guarantor | Resources Inc. | |||||||||||||||||
In thousands | Obligor) | Obligor) | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets
|
||||||||||||||||||||
Current assets
|
$ | 453,561 | $ | 256,901 | $ | 17,236 | $ | (466,337 | ) | $ | 261,361 | |||||||||
Property and equipment
|
— | 3,215,096 | 111,650 | — | 3,326,746 | |||||||||||||||
Investment in subsidiaries (equity method)
|
1,268,178 | — | 1,212,347 | (2,480,525 | ) | — | ||||||||||||||
Other assets
|
747,393 | 204,921 | 56,205 | (738,028 | ) | 270,491 | ||||||||||||||
|
||||||||||||||||||||
Total assets
|
$ | 2,469,132 | $ | 3,676,918 | $ | 1,397,438 | $ | (3,684,890 | ) | $ | 3,858,598 | |||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||
Current liabilities
|
$ | 15,857 | $ | 698,317 | $ | 122,762 | $ | (466,337 | ) | $ | 370,599 | |||||||||
Long-term liabilities
|
698,340 | 1,766,254 | 6,498 | (738,028 | ) | 1,733,064 | ||||||||||||||
Stockholders’ equity
|
1,754,935 | 1,212,347 | 1,268,178 | (2,480,525 | ) | 1,754,935 | ||||||||||||||
|
||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 2,469,132 | $ | 3,676,918 | $ | 1,397,438 | $ | (3,684,890 | ) | $ | 3,858,598 | |||||||||
|
December 31, 2008 | ||||||||||||||||||||
Denbury | Denbury | |||||||||||||||||||
Resources Inc. | Onshore, LLC | Denbury | ||||||||||||||||||
(Parent and Co- | (Issuer and Co- | Guarantor | Resources Inc. | |||||||||||||||||
In thousands | Obligor) | Obligor) | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets
|
||||||||||||||||||||
Current assets
|
$ | 458,051 | $ | 408,940 | $ | 14,992 | $ | (466,784 | ) | $ | 415,199 | |||||||||
Property and equipment
|
— | 2,973,947 | 28,250 | — | 3,002,197 | |||||||||||||||
Investment in subsidiaries (equity method)
|
1,371,347 | — | 1,313,656 | (2,685,003 | ) | — | ||||||||||||||
Other assets
|
312,239 | 114,372 | 56,002 | (310,335 | ) | 172,278 | ||||||||||||||
|
||||||||||||||||||||
Total assets
|
$ | 2,141,637 | $ | 3,497,259 | $ | 1,412,900 | $ | (3,462,122 | ) | $ | 3,589,674 | |||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||
Current liabilities
|
$ | 970 | $ | 810,476 | $ | 41,405 | $ | (466,784 | ) | $ | 386,067 | |||||||||
Long-term liabilities
|
300,599 | 1,373,127 | 148 | (310,335 | ) | 1,363,539 | ||||||||||||||
Stockholders’ equity
|
1,840,068 | 1,313,656 | 1,371,347 | (2,685,003 | ) | 1,840,068 | ||||||||||||||
|
||||||||||||||||||||
Total liabilties and stockholders’ equity
|
$ | 2,141,637 | $ | 3,497,259 | $ | 1,412,900 | $ | (3,462,122 | ) | $ | 3,589,674 | |||||||||
|
Three Months Ended June 30, 2009 | ||||||||||||||||||||
Denbury | Denbury | |||||||||||||||||||
Resources Inc. | Onshore, LLC | Denbury | ||||||||||||||||||
(Parent and Co- | (Issuer and Co- | Guarantor | Resources Inc. | |||||||||||||||||
In thousands | Obligor) | Obligor) | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues
|
$ | 15,862 | $ | 215,538 | $ | 1,854 | $ | (15,862 | ) | $ | 217,392 | |||||||||
Expenses
|
17,380 | 354,224 | 2,318 | (15,862 | ) | 358,060 | ||||||||||||||
|
||||||||||||||||||||
Income (loss) before the following:
|
(1,518 | ) | (138,686 | ) | (464 | ) | — | (140,668 | ) | |||||||||||
Equity in net earnings of subsidiaries
|
(85,722 | ) | — | (85,015 | ) | 170,737 | — | |||||||||||||
|
||||||||||||||||||||
Income before income taxes
|
(87,240 | ) | (138,686 | ) | (85,479 | ) | 170,737 | (140,668 | ) | |||||||||||
Income tax provision (benefit)
|
— | (53,671 | ) | 243 | — | (53,428 | ) | |||||||||||||
|
||||||||||||||||||||
Net income
(loss)
|
$ | (87,240 | ) | $ | (85,015 | ) | $ | (85,722 | ) | $ | 170,737 | $ | (87,240 | ) | ||||||
|
Three Months Ended June 30, 2008 | ||||||||||||||||||||
Denbury | Denbury | |||||||||||||||||||
Resources Inc. | Onshore, LLC | Denbury | ||||||||||||||||||
(Parent and Co- | (Issuer and Co- | Guarantor | Resources Inc. | |||||||||||||||||
In thousands | Obligor) | Obligor) | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues
|
$ | 5,625 | $ | 417,218 | $ | 767 | $ | (5,625 | ) | $ | 417,985 | |||||||||
Expenses
|
5,746 | 233,361 | 828 | (5,625 | ) | 234,310 | ||||||||||||||
|
||||||||||||||||||||
Income (loss) before the following:
|
(121 | ) | 183,857 | (61 | ) | — | 183,675 | |||||||||||||
Equity in net earnings of subsidiaries
|
114,171 | — | 114,449 | (228,620 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Income before income taxes
|
114,050 | 183,857 | 114,388 | (228,620 | ) | 183,675 | ||||||||||||||
Income tax provision (benefit)
|
(3 | ) | 69,408 | 217 | — | 69,622 | ||||||||||||||
|
||||||||||||||||||||
Net income
|
$ | 114,053 | $ | 114,449 | $ | 114,171 | $ | (228,620 | ) | $ | 114,053 | |||||||||
|
Six Months Ended June 30, 2009 | ||||||||||||||||||||
Denbury | Denbury | |||||||||||||||||||
Resources Inc. | Onshore, LLC | Denbury | ||||||||||||||||||
(Parent and Co- | (Issuer and Co- | Guarantor | Resources Inc. | |||||||||||||||||
In thousands | Obligor) | Obligor) | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues
|
$ | 26,720 | $ | 387,598 | $ | 3,553 | $ | (26,720 | ) | $ | 391,151 | |||||||||
Expenses
|
29,053 | 553,188 | 5,273 | (26,720 | ) | 560,794 | ||||||||||||||
|
||||||||||||||||||||
Income (loss) before the following:
|
(2,333 | ) | (165,590 | ) | (1,720 | ) | — | (169,643 | ) | |||||||||||
Equity in net earnings of subsidiaries
|
(103,204 | ) | — | (101,345 | ) | 204,549 | — | |||||||||||||
|
||||||||||||||||||||
Income before income taxes
|
(105,537 | ) | (165,590 | ) | (103,065 | ) | 204,549 | (169,643 | ) | |||||||||||
Income tax provision (benefit)
|
— | (64,245 | ) | 139 | — | (64,106 | ) | |||||||||||||
|
||||||||||||||||||||
Net income
(loss)
|
$ | (105,537 | ) | $ | (101,345 | ) | $ | (103,204 | ) | $ | 204,549 | $ | (105,537 | ) | ||||||
|
Six Months Ended June 30, 2008 | ||||||||||||||||||||
Denbury | Denbury | |||||||||||||||||||
Resources Inc. | Onshore, LLC | Denbury | ||||||||||||||||||
(Parent and Co- | (Issuer and Co- | Guarantor | Resources Inc. | |||||||||||||||||
In thousands | Obligor) | Obligor) | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues
|
$ | 11,250 | $ | 734,462 | $ | 858 | $ | (11,250 | ) | $ | 735,320 | |||||||||
Expenses
|
11,491 | 433,883 | 1,632 | (11,250 | ) | 435,756 | ||||||||||||||
|
||||||||||||||||||||
Income (loss) before the following:
|
(241 | ) | 300,579 | (774 | ) | — | 299,564 | |||||||||||||
Equity in net earnings of subsidiaries
|
187,275 | — | 188,254 | (375,529 | ) | — | ||||||||||||||
|
||||||||||||||||||||
Income before income taxes
|
187,034 | 300,579 | 187,480 | (375,529 | ) | 299,564 | ||||||||||||||
Income tax provision (benefit)
|
(21 | ) | 112,325 | 205 | — | 112,509 | ||||||||||||||
|
||||||||||||||||||||
Net income
|
$ | 187,055 | $ | 188,254 | $ | 187,275 | $ | (375,529 | ) | $ | 187,055 | |||||||||
|
Six Months Ended June 30, 2009 | ||||||||||||||||||||
Denbury | Denbury | |||||||||||||||||||
Resources Inc. | Onshore, LLC | Denbury | ||||||||||||||||||
(Parent and Co- | (Issuer and Co- | Guarantor | Resources Inc. | |||||||||||||||||
In thousands | Obligor) | Obligor) | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flow from operations
|
$ | — | $ | 260,548 | $ | 241 | $ | — | $ | 260,789 | ||||||||||
Cash flow from investing activities
|
(388,391 | ) | (574,840 | ) | — | 388,391 | (574,840 | ) | ||||||||||||
Cash flow from financing activities
|
388,391 | 356,941 | — | (388,391 | ) | 356,941 | ||||||||||||||
|
||||||||||||||||||||
Net increase in cash
|
— | 42,649 | 241 | — | 42,890 | |||||||||||||||
Cash, beginning of period
|
24 | 16,898 | 147 | — | 17,069 | |||||||||||||||
|
||||||||||||||||||||
Cash, end of period
|
$ | 24 | $ | 59,547 | $ | 388 | $ | — | $ | 59,959 | ||||||||||
|
Six Months Ended June 30, 2008 | ||||||||||||||||||||
Denbury | Denbury | |||||||||||||||||||
Resources Inc. | Onshore, LLC | Denbury | ||||||||||||||||||
(Parent and Co- | (Issuer and Co- | Guarantor | Resources Inc. | |||||||||||||||||
In thousands | Obligor) | Obligor) | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Cash flow from operations
|
$ | (10 | ) | $ | 370,325 | $ | 14 | $ | — | $ | 370,329 | |||||||||
Cash flow from investing activities
|
(23,757 | ) | (384,797 | ) | 2,725 | 23,757 | (382,072 | ) | ||||||||||||
Cash flow from financing activities
|
23,757 | 98,645 | — | (23,757 | ) | 98,645 | ||||||||||||||
|
||||||||||||||||||||
Net increase (decrease) in cash
|
(10 | ) | 84,173 | 2,739 | — | 86,902 | ||||||||||||||
Cash, beginning of period
|
34 | 58,343 | 1,730 | — | 60,107 | |||||||||||||||
|
||||||||||||||||||||
Cash, end of period
|
$ | 24 | $ | 142,516 | $ | 4,469 | $ | — | $ | 147,009 | ||||||||||
|
|