Annual report pursuant to Section 13 and 15(d)

Selected Quarterly Financial Data (Tables)

v2.4.0.8
Selected Quarterly Financial Data (Tables)
12 Months Ended
Dec. 31, 2013
Quarterly Financial Data

Unaudited quarterly financial data are as follows (in thousands, except per share amounts):

 

 

  

1st
Quarter

 

  

2nd
Quarter

 

  

3rd
Quarter

 

 

4th
Quarter

 

Year Ended December 31, 2013 (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

259,222

 

 

$

235,383

 

 

$

244,555

 

 

$

244,928

 

Operating income

 

 

60,321

 

 

 

53,823

 

 

 

31,965

 

 

 

622

 

Net income (loss)

 

 

26,618

 

 

 

22,396

 

 

 

14,194

 

 

 

(11,886

)

Basic and diluted earnings (loss) per common share (2)

 

 

0.35

 

 

 

0.29

 

 

 

0.19

 

 

 

(0.16

)

Year Ended December 31, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

235,886

 

 

$

215,513

 

 

$

185,946

 

 

$

237,146

 

Operating income

 

 

15,913

 

 

 

99,100

 

 

 

7,560

 

 

 

46,737

 

Net income

 

 

3,218

 

 

 

53,567

 

 

 

(1,471

)

 

 

16,670

 

Basic and diluted earnings (loss) per common share (2)

 

 

0.04

 

 

 

0.70

 

 

 

(0.02

)

 

 

0.21

 

 

(1)

In January 2014, we identified that we had been receiving an erroneous million British thermal unit (“MMBtu”) conversion factor from a third party that had the effect of understating natural gas production at our Viosca Knoll 783 field (Tahoe).  The incorrect conversion factor had been used on all natural gas production from the field since we acquired it in 2011.  The use of the incorrect conversion factor did not affect revenues, operating cash flows or royalty payments to the federal government but did impact reported natural gas production and the calculation of depletion expense.  We performed an analysis of the information, assessing both quantitative and qualitative factors, and determined that the impact on our net income reported for prior annual periods, as well as the impact to our earnings trend, was not material to 2011 and 2012 results, thus the adjustment was recognized in the fourth quarter of 2013.  

 

The fourth quarter of 2013 reflects a one-time increase in natural gas production volumes of 2.6 Bcf (with no corresponding increase in revenue) by using the correct conversion factor for the annual periods of 2011 and 2012, and the first three quarters of 2013, which increased DD&A by $7.1 million and decreased net income by $4.6 million.  

(2)

The sum of the individual quarterly earnings per share may not agree with year-to-date earnings per share because each quarterly calculation is based on the income for that quarter and the weighted average number of shares outstanding during that quarter.