Energen Corporation Reports Unaudited Consolidated Earnings and Production Results for the Third Quarter and Nine Months Ended September 30, 2016; Provides Earnings and Production Guidance for the Fourth Quarter and Full Year of 2016; Reports Asset Impairments for the Third Quarter Ended September 30, 2016; Provides Capital Spending Guidance for 2017
For the nine months, total revenues were $418,369,000 against $685,755,000 a year ago. Operating loss was $142,634,000 against $522,301,000 a year ago. Loss before income taxes was $169,912,000 against of $555,244,000 a year ago. Net loss was $113,043,000 or $1.21 per basic and diluted share against $354,925,000 or $4.71 per basic and diluted share a year ago. Capital expenditures were $428,443,000 compared to $918,798,000 for the same period a year ago.
For the quarter, total production volumes were 5,298 MBOE against 5,893 MBOE a year ago. Total average daily production volumes were 57.6 MBOE/d against 64.1 MBOE/d a year ago.
For the nine months, total production volumes were 16,719 MBOE against 18,055 MBOE a year ago. Total average daily production volumes were 61.0 MBOE/d against 66.1 MBOE/d a year ago.
For the fourth quarter of 2016, the company expects interest expense to be in the range of $8.9 million to $9.1 million. The company expects effective tax rate to be in the range of 33% to 35%, exploration expense (seismic, delay rentals, etc.) of $0.95 million -$1.05 million, FF&E depreciation of $1.2 million- $1.4 million.
For the full year of 2016, the company expected interest expense to be in the range of $36.5 million to $37.5 million. The company expects effective tax rate to be in the range of 33% to 35%, exploration expense (seismic, delay rentals, etc.) of $0.30 million - $0.35 million, FF&E depreciation of $4.8 million- $5.0 million. The company estimates that capital investment associated with drilling and development activity in 2016 could range from $440 million - $485 million depending on the number of new drills and completions.
For the fourth quarter of 2016, the company expects total production guidance in the midpoint of 52.2 mboepd.
For the full year of 2016, the company expects total production guidance in the midpoint of 54.3 mboepd.
For the third quarter of 2016, the company reported asset impairments of $587,394,000 against $399,394 a year ago.
The company estimates that it will invest $700 million - $800 million in 2017 to complete its YE2016 DUC inventory, run 5-7 horizontal rigs in the Midland and Delaware basins, and generate 20%, year-over-year production growth.