DALLAS, May 2, 2017
/PRNewswire/ -- RSP Permian, Inc. ("RSP" or the "Company") (NYSE:
RSPP) today reported financial and operating results for the
quarter ended March 31, 2017. In addition, the Company
filed its Quarterly Report on Form 10-Q 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.
First Quarter 2017 Highlights
- Production increased 84% to 45.2 MBoe/d (75% oil, 88% liquids),
compared to 1Q16 and increased 26% compared to 4Q16
- Net income of $38.9 million, or
$0.26 per diluted share. Adjusted net
income, which does not include certain items, was $24.2 million, or $0.16 per diluted share
- Adjusted EBITDAX increased to $124.5
million, a 249% increase compared to 1Q16 and a 37% increase
compared to 4Q16
- Development capital expenditures (drilling, completion,
infrastructure and other) of $115.6
million
- Cash operating expenses of $10.49
per Boe, including lease operating expenses of $5.40 (before gathering and transportation) and
$6.25 per Boe including gathering and
transportation
- On March 1, 2017, closed
previously announced SHEP II acquisition for approximately
$646 million of cash and 16.0 million
shares of RSP common stock
- Maintained strong liquidity position, with $54 million of cash and no borrowings outstanding
under revolving credit facility ($1.1
billion borrowing base, $900
million Company-elected commitment)
Recent Well Results
- Drilled and completed first horizontal well in the Delaware Basin. The Crockett Reese St #2403H,
a 6,900' lateral well that targeted the lower interval of the
Wolfcamp A, has established a peak 7-day average rate of 1,882
boe/d (71% oil), still cleaning up with ~2,500 psi of flowing
pressure
- Drilled and completed the furthest west Wolfcamp A horizontal
well on our Midland Basin properties, located in Ector County. The Parks Bell 3924H, a 7,000'
lateral well that targeted the Wolfcamp A, has established a peak
30-day average rate of 1,552 Boe/d (83% oil)
- Reported one of RSP's best performing Midland Basin wells to
date, on a per lateral foot basis. The Spanish Trail 344 1H, a
6,500' lateral well that targeted the Wolfcamp A, and had a peak
30-day average rate of 1,940 Boe/d (83% oil), produced
147 MBoe in 90 days
Steve Gray, Chief Executive
Officer, commented, "I'm pleased to report solid quarterly results,
particularly given we only recently closed SHEP II and assumed full
operational control over our Delaware Basin assets. The second
quarter will include the full contribution of these assets to our
operating and financial results. Our operations team has made
significant progress enhancing efficiency and coordinating
infrastructure additions on the Delaware assets to accommodate higher activity
levels during the second half of this year. We have
accelerated the build-out of infrastructure projects in the second
quarter on these properties and we anticipate adding a
third horizontal rig in the Delaware Basin in May, bringing our total
operated rig count to seven."
Mr. Gray continued, "We recently placed our first RSP-drilled
and completed Delaware Basin
horizontal well on production, which achieved a strong initial
rate. This well, along with recent non-operated and offset
wells, highlight the robust potential of our Delaware properties. We also reported an
excellent result from the furthest west Wolfcamp A well drilled on
our Midland Basin properties to date, in an area where we did not
previously hold Wolfcamp wells in our drilling inventory.
Although recent market attention has been focused on our newly
acquired Delaware assets, the
strong and consistent well results from our Midland Basin portfolio
continue to generate attractive rates of return and capital
efficient growth at current commodity prices."
Operational Results
|
Three Months Ended
March 31,
2017
|
|
2017
|
|
2016
|
Production
data:
|
|
|
|
Oil
(MBbls)
|
3,032
|
|
|
1,703
|
|
Natural gas
(MMcf)
|
2,926
|
|
|
1,465
|
|
NGLs
(MBbls)
|
547
|
|
|
293
|
|
Total
(MBoe)
|
4,067
|
|
|
2,240
|
|
Average net daily
production (Boe/d)
|
45,189
|
|
|
24,615
|
|
Average prices
before effects of hedges (1) (2):
|
|
|
|
Oil (per
Bbl)
|
$
|
50.01
|
|
|
$
|
30.35
|
|
Natural gas (per
Mcf)
|
2.52
|
|
|
1.64
|
|
NGLs (per
Bbl)
|
19.96
|
|
|
5.88
|
|
Total (per
Boe)
|
$
|
41.78
|
|
|
$
|
24.92
|
|
Average realized
prices after effects of hedges (1) (2):
|
|
|
|
Oil (per
Bbl)
|
$
|
49.02
|
|
|
$
|
31.50
|
|
Natural gas (per
Mcf)
|
2.59
|
|
|
1.64
|
|
NGLs (per
Bbl)
|
19.96
|
|
|
5.88
|
|
Total (per
Boe)
|
$
|
41.09
|
|
|
$
|
25.79
|
|
Average costs (per
Boe):
|
|
|
|
Lease operating
expenses (excluding gathering and transportation)
|
$
|
5.40
|
|
|
$
|
5.54
|
|
Gathering and
transportation
|
0.85
|
|
|
0.31
|
|
Production and ad
valorem taxes
|
2.33
|
|
|
1.85
|
|
Depreciation,
depletion and amortization
|
15.01
|
|
|
19.89
|
|
General and
administrative - recurring cash component
|
1.91
|
|
|
2.19
|
|
General and
administrative - recurring stock comp (3)
|
0.96
|
|
|
1.38
|
|
|
|
(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 natural 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.
|
Production volumes for the quarter ended March 31, 2017
averaged 45,189 Boe/d, or a total of 4,067 MBoe, an increase of 84%
over prior year's first quarter of 24,615 Boe/d. Production
for the first quarter of 2017 was comprised of 75% crude oil, 12%
natural gas and 13% NGLs. RSP's average realized oil price
for the first quarter of 2017, before the effects of hedges, was
$50.01 per barrel, a negative
$1.90 differential compared to
average NYMEX WTI pricing of $51.91
per barrel for the same period, or 96% of NYMEX WTI pricing. RSP's
average realized natural gas price for the first quarter of 2017,
before the effects of hedges, was $2.52 per Mcf, a negative $0.80 differential compared to average NYMEX
Henry Hub pricing of $3.32 per MMBtu
for the same period, or 76% of NYMEX Henry Hub pricing. RSP's
average realized NGL price for the first quarter of 2017, before
the effects of hedges, was $19.96 per
Bbl, or 38% of NYMEX WTI pricing for the same time period.
RSP's average realized commodity price per barrel of oil equivalent
for the first quarter of 2017, before the effects of hedges, was
$41.78. 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 $10.49 per Boe.
Operational Update
The Company operated four horizontal rigs in the Midland Basin
during the majority of the first quarter of 2017, adding a fourth
rig in January. In the Delaware Basin, the Company added a second
horizontal rig upon closing the SHEP II acquisition on March 1, 2017. RSP utilized one full-time
completion crew during the first quarter in the Midland Basin and a
part-time crew in the Delaware Basin. RSP drilled 21 operated
horizontal wells and completed 14 operated horizontal wells
(Midland: two Lower Spraberry, five Wolfcamp A, five Wolfcamp B;
Delaware: one Wolfcamp A, one
Wolfcamp XY). The Company began the quarter with 11 operated
horizontal drilled but uncompleted wells ("DUCs") and exited the
quarter with a total of 18 operated horizontal DUCs.
Financial Results
|
Three Months
Ended
|
|
|
March
31,
|
December
31,
|
|
|
2017
|
2016
|
2016
|
|
|
(In thousands,
except for per share data)
|
|
|
|
|
|
Total
Revenues
|
$
|
169,931
|
|
$
|
55,815
|
|
$
|
122.934
|
|
|
Net Cash from
Derivative Instruments
|
(2,812)
|
|
1,950
|
|
(2,398)
|
|
|
Adjusted Total
Revenues
|
167,119
|
|
57,765
|
|
120,536
|
|
|
|
|
|
|
|
Net Income
(Loss)
|
$
|
38,934
|
|
$
|
(17,416)
|
|
$
|
1,381
|
|
|
Net Income
(Loss) per Common Share - Diluted
|
0.26
|
|
(0.17)
|
|
0.01
|
|
|
|
|
|
|
|
Adjusted Net Income
(Loss) (1)
|
$
|
24,212
|
|
$
|
(16,231)
|
|
$
|
13,395
|
|
|
Adjusted Net
Income (Loss) per Common Share - Diluted
|
0.16
|
|
(0.16)
|
|
0.10
|
|
|
|
|
|
|
|
Adjusted EBITDAX
(1)
|
$
|
124,451
|
|
$
|
35,610
|
|
$
|
90,529
|
|
|
|
|
(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 March 31, 2017, total revenues,
excluding the revenue impact from realized derivative instruments,
were $169.9 million, a 204% increase
over the prior year quarter of $55.8
million. Adjusted total revenues, including the net
cash from derivative instruments, were $167.1 million, a 189% increase from the prior
year quarter of $57.8 million.
Net income for the first quarter of 2017 was $38.9 million, or $0.26 per diluted share, while net loss for the
prior year quarter was $17.4 million,
or negative $0.17 per diluted
share. Adjusted net income for the first quarter of 2017 was
$24.2 million, or $0.16 per diluted share, compared to an Adjusted
net loss for the prior year quarter of $16.2
million or negative $0.16 per
diluted share. Adjusted EBITDAX was $124.5 million, a 249% increase from the prior
year quarter of $35.6
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 March
31, 2017 totaled $115.6
million ($110.5 million of
drilling and completion and $5.1
million of infrastructure and other). Of the
development capital, approximately $11.6
million, or 10%, was spent on non-operated properties.
Additionally, during the first quarter of 2017 the Company
acquired $16.5 million of oil and gas
properties, exclusive of the SHEP II acquisition, along with
$18.8 million of water infrastructure
assets which service the Delaware
Basin properties.
Liquidity
As of March 31 2017, the Company
had $54.3 million of cash and no
borrowings outstanding on its revolving credit facility, which has
a $1.1 billion borrowing base and a
$900 million Company-elected
commitment.
Hedging
The summary below includes all hedges in place for the remainder
of 2017 and for 2018, as of May 2,
2017.
|
(Bbl,
$/Bbl)
|
|
Q2
2017
|
|
Q3
2017
|
|
Q4
2017
|
|
2018
|
Three-Way
Collars(1)
|
|
|
|
|
|
|
|
|
3,160,000
|
|
Ceiling
|
|
|
|
|
|
|
|
$
|
65.06
|
|
Floor
|
|
|
|
|
|
|
|
$
|
50.00
|
|
Short Put
|
|
|
|
|
|
|
|
$
|
40.00
|
|
|
|
|
|
|
|
|
|
|
Costless
Collars(1)
|
|
|
1,137,500
|
|
|
|
1,150,000
|
|
|
|
1,150,000
|
|
|
|
Ceiling
|
|
$
|
60.05
|
|
|
$
|
60.05
|
|
|
$
|
60.05
|
|
|
|
Floor
|
|
$
|
45.00
|
|
|
$
|
45.00
|
|
|
$
|
45.00
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Premium
Puts(1)
|
|
|
910,000
|
|
|
|
920,000
|
|
|
920,000
|
|
|
|
Floor
|
|
$
|
48.50
|
|
|
$
|
48.50
|
|
|
$
|
48.50
|
|
|
|
Deferred
Premium(2)
|
|
$
|
(4.00)
|
|
|
$
|
(4.00)
|
|
|
$
|
(4.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Hedge
Volumes
|
|
|
2,047,500
|
|
|
|
2,070,000
|
|
|
|
2,070,000
|
|
|
|
3,160,000
|
|
Weighted Average
Floor(3)
|
|
|
44.78
|
|
|
|
44.78
|
|
|
|
44.78
|
|
|
$
|
50.00
|
|
|
|
|
|
|
|
|
|
|
Mid-Cush
Differential Swaps:
|
|
|
2,548,000
|
|
|
|
920,000
|
|
|
|
276,000
|
|
|
|
Swap(4)
|
|
$
|
(0.11)
|
|
|
$
|
(0.38)
|
|
|
$
|
(0.50)
|
|
|
|
|
|
(1)
|
The crude oil
derivative contracts are settled based on the arithmetic average of
the closing settlement price for the front month contract 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.
|
(3)
|
Weighted average
floor assumes the long put in three way collars and put spreads and
reflects the impact of premiums paid
|
(4)
|
The Mid-Cush swap
contracts are settled based on the difference in the arithmetic
average during the calculation period of WTI MIDLAND ARGUS and WTI
ARGUS prices in the Argus Americas Crude publication for the
relevant period.
|
Natural Gas
Hedges
|
(MMBtu,
$/MMBtu)
|
|
Q2
2017
|
|
Q3
2017
|
|
Q4
2017
|
Costless
Collars(1)
|
|
2,366,000
|
|
|
2,422,000
|
|
|
2,545,000
|
|
Ceiling
|
|
$
|
3.86
|
|
|
$
|
3.86
|
|
|
$
|
3.86
|
|
Floor
|
|
$
|
3.00
|
|
|
$
|
3.00
|
|
|
$
|
3.00
|
|
|
|
(1)
|
The natural gas
derivative contracts are settled based on the last trading day's
closing price for the front month contract relevant to each
period.
|
2017 Annual Guidance
|
|
First Quarter
2017
Actual Results
|
|
2017
Guidance
|
|
Completions
|
|
|
|
|
|
Operated Gross
Horizontal Completions
|
|
14
|
|
85 - 95
|
|
Operated
Average Working Interest
|
|
83%
|
|
88%
|
|
Midland Basin
Average Lateral Length
|
|
~8,200'
|
|
~8,500'
|
|
Delaware Basin
Average Lateral Length
|
|
~6,700'
|
|
~6,250'
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
Average Daily
Production (Boe/d)
|
|
45,189
|
|
53,000 -
57,000
|
|
%
Oil
|
|
75%
|
|
71% - 73%
|
|
% Natural
Gas
|
|
12%
|
|
11% - 13%
|
|
%
NGLs
|
|
13%
|
|
15% - 17%
|
|
|
|
|
|
|
|
Development Capital
Expenditures ($ in MM)
|
|
|
|
|
|
Drilling and
Completion (D&C)
|
|
$110.5
|
|
$575 -
$625
|
|
Infrastructure,
Capitalized Workovers & Other
|
|
$5.1
|
|
$50 - $75
|
|
Total Development
Capital Expenditures
|
|
$115.6
|
|
$625 -
$700
|
|
% Midland
Basin
|
|
80%
|
|
60% - 70%
|
|
% Delaware
Basin
|
|
20%
|
|
30% - 40%
|
|
%
Non-Operated
|
|
10%
|
|
5% - 10%
|
|
|
|
|
|
|
|
Income Statement
($/Boe)
|
|
|
|
|
|
Lease operating
expenses (including workovers)
|
|
$5.40
|
|
$4.50 -
$5.50
|
|
Gathering and
transportation
|
|
$0.85
|
|
$1.10 -
$1.40
|
|
Exploration
expenses
|
|
$0.63
|
|
$0.40 -
$0.60
|
|
General and
administrative - recurring cash component
|
|
$1.91
|
|
$1.25 -
$1.75
|
|
General and
administrative - recurring stock comp
|
|
$0.96
|
|
$0.70 -
$0.90
|
|
Depreciation,
depletion, and amortization
|
|
$15.01
|
|
$14.00 -
$16.00
|
|
Production and ad
valorem taxes (% of oil and gas revenues)
|
|
5.6%
|
|
6.0% -
8.0%
|
|
First Quarter 2017 Earnings Release and Conference
Call
RSP will host a conference call for investors at 1:00 PM Central Time on Wednesday, May 3, 2017, to discuss first quarter
2017 results. Hosting the call will be Steve Gray, Chief Executive Officer,
Scott McNeill, Chief Financial
Officer and other members of RSP's management team.
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 (844) 512-2921, or for international callers
(412) 317-6671. The passcode for the replay is 13659950. The
replay will be available until May 17,
2017. 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 and Delaware
Basins, sub-basins of the Permian Basin. 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 March 31,
|
|
Three Months
Ended December 31,
|
|
2017
|
|
2016
|
|
2016
|
Revenues:
|
|
|
|
|
|
Oil
sales
|
$
|
151,637
|
|
|
$
|
51,690
|
|
|
$
|
110,376
|
|
Natural gas
sales
|
7,378
|
|
|
2,403
|
|
|
5,103
|
|
NGL
sales
|
10,916
|
|
|
1,722
|
|
|
7,455
|
|
|
|
|
|
|
|
Total revenues
|
169,931
|
|
|
55,815
|
|
|
122,934
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Lease
operating expenses
|
$
|
25,411
|
|
|
$
|
13,091
|
|
|
$
|
16,419
|
|
Production and
ad valorem taxes
|
9,469
|
|
|
4,153
|
|
|
6,630
|
|
Depreciation,
depletion, and amortization
|
61,040
|
|
|
44,558
|
|
|
52,484
|
|
Asset
retirement obligation accretion
|
153
|
|
|
113
|
|
|
118
|
|
Impairments
|
125
|
|
|
173
|
|
|
579
|
|
Exploration
|
2,580
|
|
|
64
|
|
|
265
|
|
General and
administrative expenses
|
11,712
|
|
|
8,005
|
|
|
10,173
|
|
Acquisition
Costs
|
4,052
|
|
|
—
|
|
|
6,374
|
|
|
|
|
|
|
|
Total operating expenses
|
$
|
114,542
|
|
|
$
|
70,157
|
|
|
$
|
93.042
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
55,389
|
|
|
$
|
(14,342)
|
|
|
$
|
29,892
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
Other income,
net
|
$
|
720
|
|
|
$
|
173
|
|
|
$
|
1,246
|
|
Net gain
(loss) on derivative instruments
|
17,121
|
|
|
396
|
|
|
(17,538)
|
|
Interest
expense
|
(19,224)
|
|
|
(12,941)
|
|
|
(13,683)
|
|
|
|
|
|
|
|
Total other income (expense)
|
(1,383)
|
|
|
(12,372)
|
|
|
(29,975)
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
54,006
|
|
|
(26,714)
|
|
|
(83)
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
(15,072)
|
|
|
9,298
|
|
|
1,464
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
38,934
|
|
|
$
|
(17,416)
|
|
|
$
|
1,381
|
|
|
|
|
|
|
|
Net income
(loss) per common share - Basic
|
$
|
0.27
|
|
|
$
|
(0.17)
|
|
|
$
|
0.01
|
|
Net income
(loss) per common share - Diluted
|
$
|
0.26
|
|
|
$
|
(0.17)
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
Basic
|
146,054
|
|
|
100,060
|
|
|
128,811
|
|
Diluted
|
147,005
|
|
|
100,060
|
|
|
128,811
|
|
Summary Balance
Sheet
|
|
(In
thousands)
|
|
|
March 31,
2017
|
December 31,
2016
|
|
|
|
|
Cash and cash
equivalents
|
$
|
54,260
|
|
$
|
690,776
|
Other current
assets
|
91,817
|
|
85,486
|
Total current
assets
|
146,077
|
|
776,262
|
Property, plant and
equipment, net
|
5,529,103
|
|
4,129,635
|
Other long-term
assets
|
50,694
|
|
90,530
|
Total
assets
|
$
|
5,725,874
|
|
$
|
4,996,427
|
|
|
|
|
Current
liabilities
|
113,169
|
|
108,269
|
Long-term
debt
|
1,132,358
|
|
1,132,275
|
Other long-term
liabilities
|
363,920
|
|
338,571
|
Total stockholders'
equity
|
4,116,427
|
|
3,417,312
|
Total liabilities and
stockholders' equity
|
$
|
5,725,874
|
|
$
|
4,996,427
|
|
|
|
|
|
|
|
|
|
|
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, acquisition costs 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
Net Income (Loss) to Adjusted EBITDAX
|
|
(In
thousands)
|
|
|
Three Months
Ended
March 31,
|
|
Three Months
Ended
December 31,
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
Net income
(loss)
|
38,934
|
|
|
(17,416)
|
|
|
$
|
1,381
|
|
Interest
expense
|
19,224
|
|
|
12,941
|
|
|
13,683
|
|
Income tax expense
(benefit)
|
15,072
|
|
|
(9,298)
|
|
|
(1,464)
|
|
Depreciation,
depletion, and amortization
|
61,040
|
|
|
44,558
|
|
|
52,484
|
|
Asset retirement
obligation accretion
|
153
|
|
|
113
|
|
|
118
|
|
Exploration
|
2,580
|
|
|
64
|
|
|
265
|
|
Acquisition
Costs
|
4,052
|
|
|
—
|
|
|
6,374
|
|
Impairments
|
125
|
|
|
173
|
|
|
579
|
|
Loss (gain) on
derivative instruments
|
(17,121)
|
|
|
(396)
|
|
|
17,538
|
|
Net Settled
Derivative Instruments
|
(2,812)
|
|
|
1,950
|
|
|
(2,398)
|
|
Stock-based
compensation, net
|
3,924
|
|
|
3,094
|
|
|
3,215
|
|
Other income,
net
|
(720)
|
|
|
(173)
|
|
|
(1,246)
|
|
Adjusted
EBITDAX
|
$
|
124,451
|
|
|
$
|
35,610
|
|
|
$
|
90,529
|
|
Reconciliation of
Net Income (Loss) to Adjusted Net Income (Loss)
|
|
(In
thousands)
|
|
|
Three Months
Ended
March 31,
|
|
Three Months
Ended
December 31,
|
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
38,934
|
|
|
$
|
(17,416)
|
|
|
$
|
1,381
|
|
Acquisition
Costs
|
4,052
|
|
|
—
|
|
|
6,374
|
|
Impairments
|
125
|
|
|
173
|
|
|
579
|
|
Loss (gain) on
derivative instruments
|
(17,121)
|
|
|
(396)
|
|
|
17,538
|
|
Net Settled
Derivative Instruments
|
(2,812)
|
|
|
1,950
|
|
|
(2,398)
|
|
Other income,
net
|
(720)
|
|
|
(173)
|
|
|
(1,246)
|
|
Income tax benefit
(expense) for above items
|
1,754
|
|
|
(369)
|
|
|
(8,833)
|
|
Adjusted Net
Income (Loss)
|
$
|
24,212
|
|
|
$
|
(16,231)
|
|
|
$
|
13,395
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/rsp-permian-inc-announces-first-quarter-2017-financial-and-operating-results-300450048.html
SOURCE RSP Permian, Inc.