DALLAS, Aug. 8, 2016 /PRNewswire/ -- RSP Permian,
Inc. ("RSP" or the "Company") (NYSE: RSPP) today reported financial
and operating results for the quarter ended June 30, 2016 and updated its 2016 annual
guidance. In addition, the Company filed its Quarterly Report
on Form 10-Q for the quarter ended June 30,
2016 with the Securities and Exchange Commission (the "SEC")
and posted a presentation that supplements the information in this
release to its website at www.rsppermian.com.
Second Quarter 2016 Highlights
- Production increased by 33% to 26.4 MBoe/d as compared to 2Q15
and increased by 7% as compared to 1Q16
- Net loss of $9.8 million, or
($0.10) per diluted share.
Adjusted Net Loss, which does not include impairment, non-cash loss
on derivatives, and non-recurring, non-cash compensation among
other items, was $3.8 million, or
($0.04) per diluted share
- Adjusted EBITDAX increased by 64% to $58.5 million as compared to 1Q16
- Cash operating expenses were $9.99 per Boe, consistent with 1Q16
- Completed 11 operated horizontal wells (10 Lower Spraberry and
one Wolfcamp A) and one operated vertical well
- Completed four Lower Spraberry wells in the Johnson Ranch lease
in Martin County with combined
initial production rates exceeding 4,700 Boe/d (average lateral
length of ~7,100)
- RSP's previously announced first four horizontal wells
completed in western Glasscock
County, which had RSP record initial production rates,
continue to significantly outperform the Company's type
curves. The two Calverley area long laterals (~10,000')
exceed peer 1 MMBoe type curve and the two Woody area short
laterals (~5,000'), unadjusted for lateral length, are also
performing in-line with peer 1 MMBoe type curve with average
cumulative production after 210 days of 228 MBoe for the long
laterals and 133 MBoe for the short laterals
- Updated annual guidance: Expected 2016 average daily production
increased by 10% at the mid-point to 26,500 - 28,500 Boe/d,
primarily due to increased well productivity, and development
capital expenditure budget increased to $285
- $315 million. The incremental investment will
primarily impact the Company's 2017 production profile
- Enhanced oil hedge position to mitigate downside pricing risk
in 2H 2016 while leaving upside intact, with 67% of expected 2H
2016 oil production protected with $45.00 deferred premium puts
- Continued to block up core leasehold position, closing an
additional $14 million of bolt-on
acquisitions during the second quarter, bringing total year-to-date
acquisitions to $55 million through
July
- Maintained strong liquidity position, including $33 million of cash and an undrawn $600 million revolving credit facility at
quarter-end
Steve Gray, Chief Executive
Officer, stated, "Even with a moderated capex pace in the second
quarter, RSP increased production while maintaining a lean cost
structure and strong capital efficiency, and we generated more in
Adjusted EBITDAX than we spent in development capital. Due to
better than expected results and continuing improvement in well
productivity, we increased our annual production outlook for 2016
and raised our development capital budget for the remainder of the
year. The increased investment during the second half of 2016
will position us for a higher growth profile in
2017. While we have substantial organic growth
potential, with a deep inventory of horizontal drilling locations
targeting a tremendous resource base, we are focused on generating
economic returns over growth and have flexibility to alter our
operating plans to match the prevailing commodity price
environment."
Quarterly
Operational Results
|
|
|
|
Three Months Ended
June 30,
|
|
2016
|
|
2015
|
Production
data:
|
|
|
|
Oil
(MBbls)
|
1,760
|
|
1,377
|
Natural gas
(MMcf)
|
1,725
|
|
1,029
|
NGLs
(MBbls)
|
355
|
|
260
|
Total
(MBoe)
|
2,403
|
|
1,809
|
Average net daily
production (Boe/d)
|
26,407
|
|
19,879
|
Average prices
before effects of hedges (1) (2):
|
|
|
|
Oil (per
Bbl)
|
$42.50
|
|
$53.68
|
Natural gas (per
Mcf)
|
1.47
|
|
1.97
|
NGLs (per
Bbl)
|
11.69
|
|
9.69
|
Total (per
Boe)
|
$33.91
|
|
$43.37
|
Average realized
prices after effects of hedges (1) (2):
|
|
|
Oil (per
Bbl)
|
$43.05
|
|
$67.22
|
Natural gas (per
Mcf)
|
1.47
|
|
1.97
|
NGLs (per
Bbl)
|
11.69
|
|
9.69
|
Total (per
Boe)
|
$34.32
|
|
$53.68
|
Average costs (per
Boe):
|
|
|
|
Lease operating
expenses (excluding gathering and transportation)
|
$5.37
|
|
$7.63
|
Gathering and
transportation
|
0.49
|
|
0.49
|
Production and ad
valorem taxes
|
2.06
|
|
2.99
|
Depreciation,
depletion and amortization
|
19.68
|
|
21.90
|
General and
administrative - recurring cash component
|
2.06
|
|
2.47
|
General and
administrative - recurring stock comp (3)
|
1.46
|
|
1.14
|
General and
administrative - non-recurring stock comp (4)
|
0.28
|
|
0.19
|
|
|
(1)
|
Average prices shown
in the table reflect prices both before and after the effects of
our cash payments/receipts on our commodity derivative
transactions. Our calculation of such effects includes realized
gains or losses on cash settlements for commodity derivative
transactions and an adjustment to reflect premiums incurred
previously or upon settlement that are attributable to instruments
settled in the period, if applicable.
|
(2)
|
Average prices for
oil are net of transportation costs. Average prices for natural gas
do not include transportation costs; instead, transportation costs
related to our gas production and sales are included in gathering
and transportation which is included in lease operating expenses in
our consolidated statements of operations. No transportation costs
are associated with NGL production and sales.
|
(3)
|
Represents
compensation expense related to restricted stock awards and
performance share awards granted as part of the Company's ongoing
compensation and retention programs.
|
(4)
|
Non-recurring stock
comp in 2015 includes compensation expense related to the
successful completion of the Company's initial public offering and
related expenses associated with one-time restricted stock
awards. Non-recurring stock comp in 2016 is a one-time
compensation charge associated with the retirement of an officer of
the Company.
|
Production volumes for the quarter ended June 30, 2016 averaged 26,407 Boe/d or a total of
2,403 MBoe, an increase of 33% over prior year's second quarter of
19,879 Boe/d. Production for the second quarter of 2016 was
comprised of 73% crude oil, 12% natural gas and 15% NGLs.
RSP's average realized commodity price per barrel of oil
equivalents for the second quarter of 2016, before the effects of
hedges, was $33.91. RSP's
average realized oil price for the second quarter of 2016, before
the effects of hedges, was $42.50 per
barrel, a negative $3.09 differential
compared to average NYMEX WTI pricing of $45.59 per barrel for the same period, or 93% of
NYMEX WTI pricing. RSP's average realized natural gas price for the
second quarter of 2016, before the effects of hedges, was
$1.47 per Mcf, a negative
$0.48 differential compared to
average NYMEX Henry Hub pricing of $1.95 per MMBtu for the same period, or 75% of
NYMEX Henry Hub pricing. RSP's average realized NGL price for
the second quarter of 2016, before the effects of hedges, was
$11.69 per Bbl, or 26% of NYMEX WTI
pricing for the same time period. Per unit cash operating
expenses excluding interest expense but including lease operating
expense, gathering and transportation expense, production and ad
valorem taxes and recurring cash general and administrative
expenses were $9.99 per Boe, a 26%
decrease from prior year's comparable quarter.
Operational Update
The Company operated two horizontal drilling rigs during the
second quarter and one full-time completion crew. RSP drilled
10 operated horizontal wells and completed 11 operated horizontal
wells (10 Lower Spraberry and one Wolfcamp A). The Company
began the quarter with 20 operated horizontal drilled but
uncompleted wells ("DUCs") and exited the quarter with a total of
19 operated horizontal DUCs. On a non-operated basis, the
Company began the quarter with 20 non-operated horizontal DUCs and
exited the quarter with a total of 24 non-operated horizontal
DUCs.
|
|
2Q16
Wells
|
|
|
Drilled
|
|
Completed
|
|
Drilled but
Uncompleted
Wells (DUCs)
|
|
|
|
|
|
|
|
Operated
Wells
|
|
|
|
|
|
|
Horizontal
|
|
10
|
|
11
|
|
19
|
Vertical
|
|
—
|
|
1
|
|
—
|
Total Operated
|
|
10
|
|
12
|
|
19
|
|
|
|
|
|
|
Non-Operated
Wells
|
|
|
|
|
|
|
Horizontal
|
|
10
|
|
6
|
|
24
|
Vertical
|
|
—
|
|
—
|
|
—
|
Total
Non-Operated
|
|
10
|
|
6
|
|
24
|
|
|
|
|
|
|
|
Total
Wells
|
|
|
|
|
|
|
Horizontal
|
|
20
|
|
17
|
|
43
|
Vertical
|
|
—
|
|
1
|
|
—
|
Total Wells
|
|
20
|
|
18
|
|
43
|
Two of the drilled operated horizontal wells noted above were
included in a second quarter 2016 acquisition, in which the Company
purchased these wells after being drilled but prior to completion
activities. RSP took over as operator of the properties and
commenced completion activities.
Quarterly
Financial Results
|
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
March
31,
|
|
|
2016
|
2015
|
2016
|
|
|
(In thousands,
except for per share data)
|
|
|
|
|
|
Total
Revenues
|
$
|
81,485
|
|
$
|
78,465
|
|
$
|
55,815
|
|
|
Net Cash from
Derivative Instruments
|
974
|
|
18,646
|
|
1,950
|
|
|
Adjusted Total
Revenues
|
82,459
|
|
97,111
|
|
57,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
$
|
(9,801)
|
|
$
|
(5,453)
|
|
$
|
(17,416)
|
|
|
Net Loss per
Common Share - Diluted
|
(0.10)
|
|
(0.07)
|
|
(0.17)
|
|
|
|
|
|
|
|
Adjusted Net Income
(Loss) (1)
|
(3,758)
|
|
13,046
|
|
(16,231)
|
|
|
Adjusted Net
Income (Loss) per Common Share - Diluted
|
(0.04)
|
|
0.16
|
|
(0.16)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAX
(1)
|
$
|
58,453
|
|
$
|
72,552
|
|
$
|
35,610
|
|
|
|
|
(1)
|
Adjusted EBITDAX and
Adjusted Net Income are non-GAAP financial measures. For a
definition of Adjusted EBITDAX and Adjusted Net Income and a
reconciliation of Adjusted EBITDAX and Adjusted Net Income to Net
Income, see "Use of Non-GAAP financial measures" and our quarterly
statements of operations at the end of this release.
|
For the quarter ended June 30,
2016, total revenues, excluding the revenue impact from
realized derivative instruments, were $81.5
million, a 4% increase over the prior year quarter of
$78.5 million. Adjusted total
revenues, including the net cash from derivative instruments, were
$82.5 million, a 15% decrease from
the prior year quarter of $97.1
million. Net loss for the second quarter of 2016 was
$9.8 million, or ($0.10) per diluted share, while the net loss for
the prior year quarter was $5.5
million, or ($0.07) per
diluted share. Adjusted Net Loss for the second quarter of
2016 was $3.8 million, or
($0.04) per diluted share, compared
with Adjusted Net Income for the prior year quarter of $13.0 million or $0.16 per diluted share. Adjusted EBITDAX
was $58.5 million, a 19% decrease
from the prior year quarter of $72.6
million.
Capital Expenditures
RSP's development capital expenditures, which includes our
investment in drilling and completing wells, infrastructure,
capitalized workovers, and other, but excludes the cost of
acquisitions, for the quarter ended June 30,
2016 totaled $57.6 million
($56.5 million of drilling and
completion and $1.1 million of
infrastructure and other). Of the development capital,
approximately $11.2 million, or 19%,
was spent on non-operated properties. Additionally, the
Company closed $14.4 million of
acquisitions of oil and gas properties, bringing total capital
expenditures for the quarter to $72.0
million.
Liquidity
As of June 30, 2016, the Company
had no borrowings outstanding on its revolving credit facility,
which has a $600 million borrowing
base, and had $33 million of cash on
hand, for total liquidity available of $632
million after deducting outstanding letters of credit.
Hedging
RSP recently added additional deferred premium puts and
currently has hedging arrangements that cover 2,775,000 barrels of
oil production for the remainder of 2016. As noted in the
table below, the Company has outstanding three-way collars covering
240,000 barrels of oil production at a ceiling price of
$74.41 per barrel, a floor price of
$55.00 per barrel and a short-put
price of $45.00 per barrel, and has
deferred premium puts covering 2,535,000 barrels of oil production
at a floor price of $45.00 per barrel
($42.35 net of deferred premium).
Description &
Production Period
|
|
Volume
(Bbls)
|
|
Weighted
Average
Ceiling price
($/Bbl) (1)
|
|
Weighted
Average
Floor
price
($/Bbl)
(1)
|
|
Weighted
Average
Short-Put
price
($/Bbl)
(1)
|
|
Weighted
Average
Deferred
Premium
($/Bbl)
(2)
|
|
|
|
|
|
|
|
|
|
|
|
Three Way
Collars
|
|
|
|
|
|
|
|
|
|
|
3Q16
|
|
120,000
|
|
$74.41
|
|
$55.00
|
|
$45.00
|
|
NA
|
4Q16
|
|
120,000
|
|
$74.41
|
|
$55.00
|
|
$45.00
|
|
NA
|
Deferred Premium
Puts
|
|
|
|
|
|
|
|
|
|
|
3Q16
|
|
1,410,000
|
|
NA
|
|
$45.00
|
|
NA
|
|
$(2.59)
|
4Q16
|
|
1,125,000
|
|
NA
|
|
$45.00
|
|
NA
|
|
$(2.74)
|
|
|
(1)
|
The crude oil
derivative contracts are settled based on the month's average daily
NYMEX price of West Texas Intermediate Light Sweet
Crude.
|
(2)
|
The deferred premium
is not paid until expiration date, aligning cash inflows and
outflows with the settlement of the derivative contract.
|
2016 Annual
Guidance Update
|
|
|
|
|
|
|
|
|
|
1H
2016
Actual
|
|
Original
2016
Guidance
|
|
Updated
2016
Guidance
|
|
|
|
|
|
|
|
|
|
|
|
Completions
|
|
|
|
|
|
|
Operated Gross
Horizontal Completions
|
|
22
|
|
36 - 48
|
|
52 - 56
|
Operated Gross
Vertical Completions
|
|
3
|
|
5
|
|
5
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
Average Daily
Production (Boe/d)
|
|
25,505
|
|
23,000 -
27,000
|
|
26,500 -
28,500
|
%
Oil
|
|
75%
|
|
75% - 76%
|
|
75% - 76%
|
% Natural
Gas
|
|
11%
|
|
10% - 11%
|
|
10% - 11%
|
%
NGLs
|
|
14%
|
|
13% - 14%
|
|
13% - 14%
|
|
|
|
|
|
|
|
Development Capital
Expenditures ($ in MM)
|
|
|
|
|
|
|
Drilling and
Completion (D&C)
|
|
$122.1
|
|
$185 -
$235
|
|
$270 -
$290
|
Infrastructure,
Capitalized Workovers & Other
|
|
$3.4
|
|
$15 - $25
|
|
$15 - $25
|
Total Development
Capital Expenditures
|
|
$125.5
|
|
$200 -
$260
|
|
$285 -
$315
|
%
Non-Operated
|
|
18%
|
|
10%
|
|
10% - 15%
|
|
|
|
|
|
|
|
Income Statement
($/Boe)
|
|
|
|
|
|
|
Lease operating
expenses (including workovers)
|
|
$5.45
|
|
$5.00 -
$6.00
|
|
$5.00 -
$6.00
|
Gathering and
transportation
|
|
$0.40
|
|
$0.45 -
$0.50
|
|
$0.45 -
$0.50
|
Exploration
expenses
|
|
$0.10
|
|
$0.25 -
$0.30
|
|
$0.10 -
$0.15
|
General and
administrative - cash component
|
|
$2.12
|
|
$2.00 -
$2.50
|
|
$2.00 -
$2.25
|
General and
administrative - recurring stock comp
|
|
$1.42
|
|
$1.25 -
$1.50
|
|
$1.25 -
$1.50
|
Depreciation,
depletion, and amortization ($/Boe)
|
|
$19.79
|
|
$18.00 -
$20.00
|
|
$19.00 -
$21.00
|
Production and ad
valorem taxes (% of oil and gas revenues)
|
|
6.6%
|
|
7.0% -
8.0%
|
|
6.0% -
7.0%
|
Second Quarter 2016 Earnings Release and Conference
Call
RSP will host a conference call for investors at 10:00 AM Central Time on Tuesday, August 9, 2016, to discuss second
quarter 2016 results. Hosting the call will be Steve Gray, Chief Executive Officer,
Zane Arrott, Chief Operating Officer
and Scott McNeill, Chief Financial
Officer.
The call may be accessed live over the telephone by dialing
(877) 705-6003, or for international callers, (201) 493-6725.
A replay will be available shortly after the call and can be
accessed by dialing (877) 870-5176, or for international callers
(858) 384-5517. The passcode for the replay is 13638064. The
replay will be available until August 23,
2016. Interested parties may also listen to a simultaneous
webcast of the conference call by logging onto RSP's website at
www.rsppermian.com in the Investor Relations section. A replay of
the webcast will also be available following the call.
About RSP Permian, Inc.
RSP is an independent oil and natural gas company focused on the
acquisition, exploration, development and production of
unconventional oil and associated liquids-rich natural gas reserves
in the Permian Basin of West
Texas. The vast majority of our acreage is located on large,
contiguous acreage blocks in the core of the Midland Basin, a sub-basin of the Permian
Basin, primarily in the adjacent counties of Midland, Martin, Andrews, Glasscock, Dawson and Ector. The Company's common
stock is traded on the NYSE under the ticker symbol "RSPP."
For more information, visit www.rsppermian.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the federal securities laws. All statements, other than
historical facts, that address activities that RSP assumes, plans,
expects, believes, intends or anticipates (and other similar
expressions) will, should or may occur in the future are
forward-looking statements. Forward-looking statements are based on
management's current beliefs, based on currently available
information, as to the outcome and timing of future events. These
forward-looking statements involve certain risks and uncertainties
that could cause the results to differ materially from those
expected by the management of RSP. Information concerning these
risks and other factors can be found in RSP's filings with the SEC,
including its Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q, which can be obtained free of charge on the SEC's web
site located at http://www.sec.gov. RSP undertakes no obligation to
update or revise any forward-looking statement.
Statements of
Operations
(In thousands, except per share data)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Three Months
Ended
March 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Oil
sales
|
$
|
74,799
|
|
|
$
|
73,917
|
|
|
|
$
|
51,690
|
|
|
Natural gas
sales
|
2,537
|
|
|
2,028
|
|
|
|
2,403
|
|
|
NGL
sales
|
4,149
|
|
|
2,520
|
|
|
|
1,722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
81,485
|
|
|
78,465
|
|
|
|
55,815
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Lease
operating expenses
|
$
|
14,094
|
|
|
$
|
14,693
|
|
|
|
$
|
13,091
|
|
|
Production and
ad valorem taxes
|
4,960
|
|
|
5,402
|
|
|
|
4,153
|
|
|
Depreciation,
depletion, and amortization
|
47,296
|
|
|
39,620
|
|
|
|
44,558
|
|
|
Asset
retirement obligation accretion
|
123
|
|
|
84
|
|
|
|
113
|
|
|
Impairments
|
3,177
|
|
|
—
|
|
|
|
173
|
|
|
Exploration
|
405
|
|
|
889
|
|
|
|
64
|
|
|
General and
administrative expenses
|
9,135
|
|
|
6,865
|
|
|
|
8,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
79,190
|
|
|
67,553
|
|
|
|
70,157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
2,295
|
|
|
$
|
10,912
|
|
|
|
$
|
(14,342)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
Other income
(loss), net
|
$
|
104
|
|
|
$
|
(37)
|
|
|
|
$
|
173
|
|
|
Net gain
(loss) on derivative instruments
|
(3,684)
|
|
|
(12,962)
|
|
|
|
396
|
|
|
Interest
expense
|
(12,954)
|
|
|
(9,367)
|
|
|
|
(12,941)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense)
|
(16,534)
|
|
|
(22,366)
|
|
|
|
(12,372)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(14,239)
|
|
|
(11,454)
|
|
|
|
(26,714)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
4,438
|
|
|
6,001
|
|
|
|
9,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(9,801)
|
|
|
$
|
(5,453)
|
|
|
|
$
|
(17,416)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per common share - Basic
|
$
|
(0.10)
|
|
|
$
|
(0.07)
|
|
|
|
$
|
(0.17)
|
|
|
Net loss
per common share - Diluted
|
$
|
(0.10)
|
|
|
$
|
(0.07)
|
|
|
|
$
|
(0.17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
100,189
|
|
|
83,088
|
|
|
|
100,060
|
|
|
Diluted
|
100,189
|
|
|
83,088
|
|
|
|
100,060
|
|
|
Use of Non-GAAP Financial Measures
We define Adjusted EBITDAX as oil and gas revenues including net
cash receipts (payments) on settled derivative instruments and
premiums paid on put options that settled during the period, less
lease operating expenses, production and ad valorem taxes, and
general and administrative expenses excluding stock based
compensation. Adjusted Net Income deducts from Adjusted
EBITDAX depreciation, depletion, and amortization, accretion on
asset retirement obligations, exploration expenses, interest
expense, stock-based compensation and adjusted income tax expense.
Management believes Adjusted EBITDAX and Adjusted Net Income are
useful because they allow us to more effectively evaluate our
operating performance and compare the results of our operations
from period to period without regard to our financing methods or
capital structure. We exclude the items listed above in arriving at
Adjusted EBITDAX and Adjusted Net Income because these amounts can
vary substantially from company to company within our industry
depending upon accounting methods and book values of assets,
capital structures and the method by which the assets were
acquired. Adjusted EBITDAX and Adjusted Net Income should not be
considered as an alternative to, or more meaningful than, net
income as determined in accordance with GAAP or as an indicator of
our operating performance or liquidity. Certain items excluded from
Adjusted EBITDAX and Adjusted Net Income are significant components
in understanding and assessing a company's financial performance,
such as a company's cost of capital and tax structure, as well as
the historic costs of depreciable assets, none of which are
components of Adjusted EBITDAX. Our computations of Adjusted
EBITDAX and Adjusted Net Income may not be comparable to other
similarly titled measures of other companies.
The following tables include a reconciliation of the non-GAAP
financial measures of Adjusted EBITDAX and Adjusted Net Income to
the GAAP financial measure of net income.
Reconciliation of
Adjusted EBITDAX to Net Income
(In thousands)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Three Months
Ended
March 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(9,801)
|
|
|
$
|
(5,453)
|
|
|
|
$
|
(17,416)
|
|
|
Interest
expense
|
12,954
|
|
|
9,367
|
|
|
|
12,941
|
|
|
Income tax expense
(benefit)
|
(4,438)
|
|
|
(6,001)
|
|
|
|
(9,298)
|
|
|
Depreciation,
depletion, and amortization
|
47,296
|
|
|
39,620
|
|
|
|
44,558
|
|
|
Asset retirement
obligation accretion
|
123
|
|
|
84
|
|
|
|
113
|
|
|
Exploration
|
405
|
|
|
889
|
|
|
|
64
|
|
|
Impairments
|
3,177
|
|
|
—
|
|
|
|
173
|
|
|
Loss (gain) on
derivative instruments
|
3,684
|
|
|
12,962
|
|
|
|
(396)
|
|
|
Net cash payments on
settled derivative instruments
|
974
|
|
|
18,646
|
|
|
|
1,950
|
|
|
Stock-based
compensation, net
|
4,183
|
|
|
2,401
|
|
|
|
3,094
|
|
|
Other income,
net
|
(104)
|
|
|
37
|
|
|
|
(173)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
$
|
58,453
|
|
|
$
|
72,552
|
|
|
|
$
|
35,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted Net Income to Net Income
(In thousands)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Three Months
Ended
March 31,
|
|
2016
|
|
2015
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(9,801)
|
|
|
$
|
(5,453)
|
|
|
|
$
|
(17,416)
|
|
|
Impairments
|
3,177
|
|
|
—
|
|
|
|
173
|
|
|
Loss (gain) on
derivative instruments
|
3,684
|
|
|
12,962
|
|
|
|
(396)
|
|
|
Net cash payments on
settled derivative instruments
|
974
|
|
|
18,646
|
|
|
|
1,950
|
|
|
Stock-based
compensation - non-recurring
|
682
|
|
|
—
|
|
|
|
—
|
|
|
Other income,
net
|
(104)
|
|
|
37
|
|
|
|
(173)
|
|
|
Income tax expense
(benefit) for above items
|
(2,370)
|
|
|
(13,146)
|
|
|
|
(369)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income (Loss)
|
$
|
(3,758)
|
|
|
$
|
13,046
|
|
|
|
$
|
(16,231)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Balance
Sheet
(In thousands)
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
32,855
|
|
|
|
$
|
142,741
|
|
|
Other current
assets
|
|
40,006
|
|
|
|
44,799
|
|
|
Total current
assets
|
|
72,861
|
|
|
|
187,540
|
|
|
Property, plant and
equipment, net
|
|
2,835,851
|
|
|
|
2,758,630
|
|
|
Other long-term
assets
|
|
15,644
|
|
|
|
21,263
|
|
|
Total
assets
|
|
$
|
2,924,356
|
|
|
|
$
|
2,967,433
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
67,917
|
|
|
|
77,402
|
|
|
Long-term
debt
|
|
687,305
|
|
|
|
686,512
|
|
|
Other long-term
liabilities
|
|
333,099
|
|
|
|
344,935
|
|
|
Total stockholders'
equity
|
|
1,836,035
|
|
|
|
1,858,584
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
2,924,356
|
|
|
|
$
|
2,967,433
|
|
|
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SOURCE RSP Permian, Inc.