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Sabine Oil & Gas LLC Announces Fourth Quarter and Full Year 2013 Financial and Operational Results

HOUSTON, March 31, 2014 /PRNewswire/ -- Sabine Oil & Gas LLC ("Sabine" or the "Company") today reported its fourth quarter and full year 2013 financial and operating results.

(Logo: http://photos.prnewswire.com/prnh/20130325/MM83201LOGO)

Key 2013 Results and Events:

  • Increased average daily production by 31% year-over-year to 175 MMcfe/d in 2013, up from 133 MMcfe/d in 2012. Oil production was 3,846 Bbl/d, a 343% increase over the prior year of 869 Bbl/d.
  • Oil and natural gas liquids (collectively "liquids") production volumes comprised 54% of revenues and 31% of total production, (increase of 219% and 252%, respectively, over 2012).
  • Adjusted EBITDA for the year ended December 31, 2013 was $296.1 million, representing a 52% increase over 2012.
  • Added approximately 25,000 net acres in the Eagle Ford through acquisitions, joint ventures and grassroots leasing, resulting in a year end Eagle Ford position of approximately 34,000 net acres.
  • In the Eagle Ford Shale, completed two four-well  pad in the Sugarkane block in southern DeWitt County, with an average rate per well of over 2,300 BOEPD for a 30-day period ("IP30"), with 18% oil and 56% liquids.
  • Also in the Eagle Ford Shale, completed ten wells in the Shiner Area in northern DeWitt County and southern Lavaca County, which averaged an IP30 of over 1,200 BOEPD, with 51% oil and 77% liquids.
  • In East Texas, completed five Cotton Valley horizontal wells which had an average IP30 of over 10 MMcfe/d, with 29% liquids. 
  • Also in East Texas, completed seven of the fifteen Haynesville Shale wells covered under a joint development agreement which averaged IP30 of over 9 MMcf/d.  Plan is to complete the remaining eight wells during 2014.
  • In North Texas, completed five Granite Wash wells which had an average IP30 of over 1,100 BOEPD, with 67% oil and 77% liquids.
  • Closed on the sale of our interests in our Cleveland Sand assets for an adjusted price of approximately $177 million. The sale closed in December and was accounted for as an adjustment to the full cost pool with no gain or loss recognized.

Commenting on the yearly results Sabine's Chief Executive Officer David Sambrooks noted: "In 2013, we delivered exceptional well results in all of our core operating areas. Excluding the Cleveland Sand asset which we sold at year-end, we completed a total of 35 wells in 2013, and achieved an overall average of 1,590 BOEPD IP 30, with 48% liquids. These outstanding well results drove down our total debt/ Adjusted EBITDA ratio from 6.2x in 4th quarter 2012 to 3.4x in 4th quarter 2013 (in each case, on an annualized basis), demonstrating the excellent financial results of our overall capital program. Sabine continues to achieve some of the best well results in the industry across all of our operating areas".   

Results of the Fourth Quarter 2013

Production volumes during the three months ended December 31, 2013 were 19.4 Bcfe, an increase of 8.4 Bcfe or approximately 77% from fourth quarter 2012 production. The increase in production is primarily due to an increase in oil and natural gas liquids production attributable to our North Texas and South Texas acquisitions and our active and successful development program in these regions.

Revenues from production of oil, natural gas liquids and natural gas increased from $48.4 million in the fourth quarter of 2012 to $109.3 million in the fourth quarter of 2013, an increase of 126%. This increase of $60.9 million was a result of an increase in production of 77%, coupled with an increase in average prices per Mcfe of 28%.

During the fourth quarter of 2013, the Company's realized average price for natural gas including hedges was $4.69 per Mcf, or $1.07 per Mcf higher than the Company's unhedged realized average price of $3.62 per Mcf. The Company's realized average price of oil including hedges was $87.01 per Bbl, or $3.24 per Bbl lower than the Company's unhedged realized average price of $90.25 per Bbl. In the fourth quarter of 2013, our hedged volumes were approximately 69% and 79% of both our natural gas and oil volumes, respectively. The Company realized gain on such derivative instruments for the fourth quarter of 2013 of $12.2 million. In the fourth quarter of 2012, our hedged volumes were approximately 77% and 32% of our natural gas and oil volumes, respectively, which resulted in a realized gain on such derivative instruments of $21.7 million.

Lease operating expenses increased from $8.7 million in the fourth quarter of 2012 to $11.8 million in the fourth quarter of 2013, an increase of 36%. The increase in lease operating expense of $3.1 million is primarily due to our 2012 acquired properties. Lease operating expenses decreased on a per unit basis from $0.79 per Mcfe in the fourth quarter of 2012 to $0.61 per Mcfe in the fourth quarter of 2013. The decrease of $0.18 per Mcfe is primarily due to the commencement of lower cost production in South Texas and North Texas following our December 2012 acquisitions in these areas as well as a lower realized cost on our higher volume East Texas 2013 completions.

Marketing, gathering, transportation and other expenses increased from $4.3 million in the fourth quarter of 2012 to $5.0 million in the fourth quarter of 2013, an increase of 18%. Marketing, gathering, transportation and other expenses decreased on a per unit basis from $0.39 per Mcfe in the fourth quarter of 2012 to $0.26 per Mcfe in the fourth quarter of 2013. The decrease of $0.13 per Mcfe is primarily associated with our South Texas and North Texas regions resulting from our 2012 acquisitions and current year development activities, as well as a reduction in fees on a per unit of production basis attributable to volumes from our  2013 completions in East Texas.

Production and ad valorem taxes increased from $(0.7) million in the fourth quarter of 2012 to $5.3 million in the fourth quarter of 2013, an increase of 898%. The increase is primarily related to increased production in our South Texas and North Texas regions which are incurring higher production taxes on oil and natural gas liquids production, and reduced tax credits attributed to high cost gas exemptions. The Company expects to experience continued variability in its production taxes as a result of well types and amount, and timing of approval, of high cost gas tax exemptions.

General and administrative expenses increased from $6.1 million in the fourth quarter of 2012 to $8.6 million in the fourth quarter of 2013, an increase of $2.5 million, or 41%. This increase is primarily related to an increase in overhead and internal costs associated with our expanding business. General and administrative expenses decreased on a per unit basis from $0.56 per Mcfe in the fourth quarter of 2012 to $0.45 per Mcfe in the fourth quarter of 2013.

DD&A increased from $23.2 million in the fourth quarter of 2012 to $42.9 million in the fourth quarter of 2013, an increase of $19.6 million. Depletion, depreciation, and amortization increased on a per unit basis from $2.12 per Mcfe in the fourth quarter of 2012 to $2.21 per Mcfe in the fourth quarter of 2013.The increase in the DD&A expense is principally due to the increase in production volumes quarter over quarter.

In the fourth quarter of 2012, there were non-cash impairment charges related to oil and natural gas properties of $41.3 million and impairments related to other assets of $0.5 million. In the fourth quarter of 2013, the Company recorded an impairment charge related to other assets for $1.1 million.

Interest expense increased from $14.9 million for the fourth quarter of 2012 to $25.8 million for the fourth quarter of 2013, an increase of $10.9 million, primarily as a result of the Term Loan. Additionally, as required under GAAP, we capitalized $2.9 million and $1.0 million of interest expense for the three months ended December 31, 2013 and 2012, respectively.

The Company recognized a loss on derivative contracts of $19.5 million and $10.7 million for the fourth quarter of 2013 and 2012, respectively. The amount of future gain or loss recognized on derivative instruments is dependent upon future commodity prices.

Results of the Year ended December 31, 2013

Production volumes during the year ended December 31, 2013 were 63.8 Bcfe, an increase of 15.1 Bcfe or 31% compared to production of 48.6 Bcfe during the year ended December 31, 2012. The increase in production is primarily due to our North Texas and South Texas acquisitions and our active and successful development program in these regions.

Revenues from production of oil, natural gas liquids and natural gas increased from $177.4 million in 2012 to $354.2 million in 2013, an increase of 100%. This increase of $176.8 million was a result of an increase in average prices per Mcfe of 52%, coupled with an increase in production of 31%.

The Company's realized average price for natural gas including hedges was $4.82 per Mcf, or $1.16 per Mcf higher than the Company's unhedged realized average price of $3.66 per Mcf. The Company's realized average price of oil including hedges was $90.59 per Bbl, or $3.82 per Bbl lower than the Company's unhedged realized average price of $94.41 per Bbl.  In 2013, our hedged volumes were approximately 80% of natural gas volumes and 71% of oil volumes, which resulted in a realized gain on such derivative instruments for $46.2 million. In 2012, our hedged volumes were approximately 69% and 40% of our natural gas and oil volumes, respectively, which resulted in a realized gain on such derivative instruments of $104.9 million.

Lease operating expenses increased from $41.0 million in 2012 to $42.5 million in 2013, an increase of 4%. The increase in lease operating expense of $1.5 million is primarily due to our December 2012 acquired properties. Lease operating expenses decreased on a per unit basis from $0.84 per Mcfe in 2012 to $0.67 per Mcfe in 2013. The decrease of $0.17 per Mcfe is primarily due to the commencement of lower cost production in South Texas and North Texas following our December 2012 acquisitions in these areas as well as a lower realized cost on our higher volume East Texas 2013 completions.

Marketing, gathering, transportation and other expenses increased from $17.5 million in 2012 to $17.6 million in 2013. Marketing, gathering, transportation and other expense decreased on a per unit basis from $0.36 per Mcfe in 2012 to $0.28 per Mcfe in 2013. The per unit basis decrease is primarily associated with our North Texas and South Texas regions resulting from our 2012 acquisitions and current year development activities, as well as a reduction in fees on a per unit of production basis attributable to our 2012 sales of our Rockies assets and volumes from our 2013 completions in East Texas Production and ad valorem taxes increased from $4.4 million in 2012 to $17.8 million in 2013, an increase of 305%.

Production and ad valorem taxes increased on a per unit basis from $0.09 per Mcfe in 2012 to $0.28 per Mcfe in 2013. The increase is primarily related to increased production in our North Texas and South Texas regions which are incurring higher production taxes on oil and natural gas liquids production, and not earning much of the tax credits attributed to high cost gas exemptions for our wells in 2013 compared to 2012. The Company expects to experience continued variability in its production taxes as a result of well types and amount, and timing of approval, of high cost gas tax exemptions. Production taxes as a percentage of natural gas and oil revenues were 5% and 3% for 2013 and 2012, respectively.

General and administrative expenses increased from $21.4 million in 2012 to $27.5 million in 2013, an increase of $6.1 million, or 28%, as a result of increased legal and consulting fees related to various current year projects and higher overhead associated with our growing business. General and administrative expenses decreased on a per unit basis from $0.44 per Mcfe in 2012 to $0.43 per Mcfe in 2013.

DD&A increased from $91.4 million in 2012 to $137.1 million in 2013, an increase of $45.7 million and 50%. Depletion, depreciation, and amortization increased on a per unit basis from $1.88 per Mcfe in 2012 to $2.15 per Mcfe in 2013. The increase in the DD&A expense is primarily the result of increase production volumes as a result of our drilling program and our December 2012 acquisitions.

In 2012, there were non-cash impairment charges related to oil and natural gas properties of $641.8 million, impairment charges for gas gathering and processing equipment of $21.4 million and impairment charges for other assets of $1.2 million. In 2013, there were impairment charges related to other assets of $1.1 million. There were no impairments related to oil and natural gas properties recognized in 2013 as a result of favorable average unweighted first day of the month pricing for the year ended December 31, 2012 of $2.76 per MMbtu versus $3.67 per MMbtu as of December 31, 2013 as well as favorable performance from our 2013 development activities.

Interest expense increased from $49.4 million in 2012 to $99.5 million in 2013, an increase of $50.1 million, or 101%, primarily as a result of the Term Loan. Additionally, as required under GAAP, we capitalized $13.0 million and $4.3 million of interest expense for the years ended December 31, 2013 and 2012, respectively.

The Company recognized a loss on derivative contracts of $46.5 million and $75.7 million for the year ended December 31, 2013 and 2012, respectively. The amount of future gain or loss recognized on derivative instruments is dependent upon future commodity prices.

Change in Auditors and Restatements of previously issued financial statements

On December 19, 2013, the Company dismissed PricewaterhouseCoopers LLP ("PwC") as the Company's independent registered public accounting firm effective immediately. Contemporaneous with the determination to dismiss PwC, the Company engaged Deloitte & Touche LLP ("D&T") as the Company's independent registered public accounting firm for the year ended December 31, 2013. Additionally, D&T was engaged to re-audit the Company's consolidated financial statements as of and for the year ended December 31, 2012 and PwC will be reissuing their audit opinion covering the Company's consolidated financial statements as of and for the year ended December 31, 2011.

The reports of PwC on the Company's consolidated financial statements as of and for the years ended December 31, 2012 and 2011 did not contain an adverse opinion or a disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles. During the years ended December 31, 2012 and 2011, and through December 19, 2013, there were no (a) disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to PwC's satisfaction, would have caused PwC to make reference to the subject matter thereof in connection with its reports for such years; or (b) reportable events, as described under Item 304(a)(1)(v) of Regulation S-K.

In conjunction with the completion of the independent audit by D&T of the Company as of and for the year ended December 31, 2013 and the re-audit of 2012, the Company will be restating its previously issued consolidated financial statements as of and for the years ended December 31, 2012 and 2011, principally to make adjustments with respect to the accounting for certain derivative financial transactions that were previously accounted for as cash flow hedges in both years and to reverse the Gain on bargain purchase recorded in 2012.  The net impact to the 2012 and 2011 Consolidated Statement of Operations is an increase to Net Loss of $1MM for 2012 and an increase to Net Income for 2011 of $58MM. In addition, the Company's previously reported quarterly consolidated financial statements for March 31, 2013, June 30, 2013 and the year to date period for September 30, 2013 were also adjusted to reflect the prior year restatement treatment of the accounting for derivative financial transactions. The expected net impact to the Consolidated Statement of Operations for these periods is $15MM additional loss, $7MM additional income and $14MM additional loss, respectively. During the second quarter of 2013, the election was made to de-designate the Company's derivative financial transactions and report all valuation changes to the derivative financial transactions on a mark-to-market basis thus all future reporting of the Company's financial results will be consistent with the restated periods.

The adjustments described for 2013, 2012 and 2011 have no impact to Adjusted EBITDA or cash flows from operating, investing or financing activities as the adjustments are all non-cash entries. After giving effect to the adjustments, the Company continues to be in compliance with all financial covenants contained within the Company's first lien credit facility.

The restatement of 2011, the re-audit of 2012 and audit of 2013 will be included in the Company's annual report for the year ended 2013.

Debt/Liquidity

The Company exited the year with $250 million drawn on its First Lien Credit Facility, providing $370 million of available liquidity as the Company entered 2014. The Company's borrowing base is currently at $620 million. As of March 31, 2014, the Company has drawn an additional $130 million, has repaid $25 million and had an outstanding balance of $355 million. The Company's borrowing base is currently being re-determined and is expected to be increased from $620 million to $700 million effective April 2, 2014.

Hedging

As of March 31, 2014, the Company has NYMEX hedges in place for the calendar year of 2014 on approximately 135,000 MMbtu/d of its projected natural gas production, at a weighted average price of $4.28/ MMBtu, and 3,980 Bbl/day of oil production at a weighted average price of $92.16/bbl.  For the calendar year of 2015, the Company has hedge contracts in place for 115,000 MMbtu/d of its projected natural gas production at a weighted average price of $4.18/MMbtu, and 2,190 Bbl/day of oil production at a weighted average price of $90.26/Bbl.

Year-End Reserves:

Year-end 2013 proved reserves, as determined by the Company's independent reserve engineers and calculated pursuant to SEC guidelines, declined by 14% from 981 Bcfe to 839 Bcfe. The changes in proved reserves from 2012 proved reserves include the sale of 168 Bcfe of reserves associated with the previously mentioned Cleveland Sand asset sale, upward revisions of approximately 19 Bcfe and 6 Bcfe that resulted from favorable pricing and performance revisions, respectively, and downward revisions of 82 Bcfe due to a decrease in proved undeveloped locations booked by the Company in 2013 versus 2012. The downward revision is predominantly due to reducing our booked Cotton Valley Sand inventory from 47 locations year end 2012 to 27 locations year end 2013, or roughly three years of drilling activity at our current level of one rig. Booked locations for our Cotton Valley Sand inventory, as well as our inventory in other plays, is largely dependent on activity level due to SEC reserve rules. The Company added approximately 148 Bcfe of proved reserves in 2013 as a result of our drilling program, representing a 234% production replacement ratio.

Proved reserves consisted of 588.3 Bcf of natural gas, and 16.9 Mbbls of oil and 25.0 Mbbls of natural gas liquids. The pre-tax present value ("PV 10") of the Company's proved reserves discounted at 10% and using the year end SEC pricing was $1,351 million, which is an increase of $441 million compared to the PV 10 at year-end 2012 of $910 million.

The following table reflects the changes in the proved reserves estimates from year-end 2012 to 2013:


Oil (Mbbls)

NGLS (Mbbls)

Gas (Bcf)

Total (Bcfe)

Proved Reserves, December 31, 2012

16.0

29.4

709.0

980.8

Revisions of previous estimates

0.1

-

(58.3)

(57.4)

Extensions and discoveries 

6.9

5.4

73.7

147.5

Production

(1.4)

(1.8)

(44.0)

(63.4)

Sales of minerals in place

(4.7)

(7.9)

(92.1)

(168.2)

Proved Reserves, December 31, 2013

16.9

25.0

588.3

839.3

Sabine Oil & Gas LLC is an independent energy company engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the United States. Our current operations are principally located in the Eagle Ford Shale in South Texas, the Cotton Valley and Haynesville Shale in East Texas, and the Granite Wash in the Texas Panhandle.

This press release includes "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include, but are not limited to forward-looking statements about plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, hedging activities, capital expenditure levels and other guidance. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating natural gas and oil reserves and in projecting future rates of production, cash flow, access to capital and the timing of development expenditures.  For a detailed list of the Company's risk factors, please consult the Company's Annual Report, subsequent quarterly reports and other press releases posted at www.sabineoil.com.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

Sabine Oil & Gas LLC

Operational and Financial Statistics (unaudited)










Three Months Ended


Year Ended


December 31,


December 31,


2013


2012


2013


2012

Oil, natural gas and NGL sales by product (in thousands):








Oil

$42,109


$9,284


$132,513


$30,343

NGL

20,785


8,599


59,772


36,957

Natural gas

46,443


30,473


161,938


110,122

Total

$ 109,337


$ 48,356


$ 354,223


$ 177,422









Production data:








Oil (MBbl)

466.60


101.86


1,403.62


317.07

NGL (MBbl)

627.93


241.31


1,842.47


931.26

Natural gas (Bcf)

12.84


8.92


44.29


41.12

Combined (Bcfe)(1)

19.41


10.98


63.77


48.61









Average prices before effects of economic hedges (2):








Oil (per Bbl)

$90.25


$91.15


$94.41


$95.70

NGL (per Bbl)

$33.10


$35.63


$32.44


$39.68

Natural gas (per Mcf)

$3.62


$3.42


$3.66


$2.68

Combined (per Mcfe)(1)

$5.63


$4.40


$5.55


$3.65









Average realized prices after effects of economic hedges (2):








Oil (per Bbl)

$87.01


$91.15


$90.59


$95.79

NGL (per Bbl)

$33.10


$35.63


$32.44


$39.68

Natural gas (per Mcf)

$4.69


$5.84


$4.82


$5.23

Combined (per Mcfe)(1)

$6.27


$6.38


$6.28


$5.81









Average costs (per Mcfe)(1):








Lease operating 

$0.61


$0.79


$0.67


$0.84

Workover 

$0.06


$0.08


$0.03


$0.05

Marketing, gathering, transportation and other

$0.26


$0.39


$0.28


$0.36

Production and ad valorem taxes

$0.27


($0.06)


$0.28


$0.09

General and administrative

$0.45


$0.56


$0.43


$0.44

Depletion, depreciation and amortization

$2.21


$2.12


$2.15


$1.88



(1)

Oil production was converted at six Mcf per Bbl to calculate combined production and per Mcfe amounts.

(2)

Average prices shown in the table reflect prices both before and after the effects of our realized commodity hedging transactions. Our calculation of such effects includes realized gains or losses on cash settlements for commodity derivatives.

 

Sabine Oil & Gas LLC

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)












Three Months Ended

December 31,


Year Ended

December 31,






2013


2012


2013


2012



(in thousands)










Revenues









Oil, natural gas and natural gas liquids sales

$109,337


$48,355


$354,223


$177,422


Other 

128


77


755


24

Total revenues

109,465


48,432


354,978


177,446










Operating expenses









Lease operating 

11,767


8,707


42,491


41,011


Workover 

1,082


881


2,160


2,638


Marketing, gathering, transportation and other

5,061


4,274


17,567


17,491


Production and ad valorem taxes

5,260


(659)


17,824


4,400


General and administrative 

8,657


6,142


27,469


21,434


Depletion, depreciation and amortization

42,889


23,246


137,068


91,353


Accretion

296


182


952


862


Impairments

1,119


41,806


1,125


664,438

Total operating expenses

76,131


84,579


246,656


843,627

Other income (expenses)









Interest expense

(25,846)


(14,931)


(99,471)


(49,387)


Gain (loss) on derivative instruments

(6,963)


10,962


814


29,267


Other income (expenses)

791


(206)


912


(498)

Total other expenses

(32,018)


(4,175)


(97,745)


(20,618)

Net income (loss) including noncontrolling interests

1,316


(40,322)


10,577


(686,799)

Less:  Net income applicable to noncontrolling interests

-


-


-


17










Net income (loss) applicable to controlling interests

$   1,316


$(40,322)


$ 10,577


$(686,782)

 

Sabine Oil & Gas LLC

ADJUSTED EBITDA (unaudited)










Three Months Ended


Year Ended 


December 31,


December 31,


2013


2012


2013


2012


(in thousands)









Net income (loss) applicable to controlling interests

$  1,316


$(40,322)


$  10,577


$(686,782)









Reconciliation to derive Adjusted EBITDA (1):








Interest, net of capitalized interest

25,846


14,931


99,471


49,387

Depletion, depreciation and amortization

42,889


23,246


137,068


91,353

Impairments

1,119


41,806


1,125


664,438

Other

1,738


266


1,739


599

Amortization of deferred rent

(27)


(133)


(249)


(532)

Accretion 

296


182


952


862

Loss on derivative instruments

19,482


10,721


46,545


75,734

Option premium amortization

(295)


(14)


(1,171)


(56)

Net income applicable to noncontrolling interests

-


-


-


(17)

Adjusted EBITDA (1)

$ 92,364


$  50,683


$ 296,057


$  194,986









Pro forma adjustments (2)

(6,518)


16,956


(37,476)


73,712









Adjusted Pro forma EBITDA (1) (2)

$ 85,846


$  67,639


$ 258,581


$  268,698



1.

Adjusted EBITDA and Adjusted Pro Forma EBITDA are non-GAAP financial measures. We use Adjusted EBITDA and Adjusted Pro Forma EBITDA as supplemental financial measures. These measures are calculated in a manner consistent with the indenture governing our 2017 Notes and our senior secured revolving credit facility as net income (loss) before interest, taxes, depreciation and amortization, as further adjusted to include other adjustments, such as impairment, accretion expense, non-cash hedge gains or losses and other non-cash charges and pro forma adjustments for acquisitions and divestitures that may not be comparable to similarly titled measures, employed by other companies. Adjusted EBITDA and Adjusted Pro Forma EBITDA should not be considered in isolation or as a substitute for operating income, net income or loss, cash flows provided by operating, investing and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDA and Adjusted Pro Forma EBITDA provide no information regarding a company's capital structure, borrowings, interest costs, capital expenditures, and working capital movement or tax position. Adjusted EBITDA and Adjusted Pro Forma EBITDA do not represent funds available for discretionary use because those funds are required for debt service, capital expenditures, working capital, and other commitments and obligations. However, our management team believes that these measures are useful to an investor in evaluating our company because these measures:

are widely used by investors in the natural gas and oil industry to measure a company's operating performance without regard to items excluded from the calculation of such term, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired, among other factors;

help investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital structure from our operating structure; and

are used by our management team for various purposes, including strategic planning and forecasting. Adjusted EBITDA is also the basis for covenants under the indenture governing our 2017 Notes regulating future debt issuance and restricted payments and pursuant to maintenance covenants under our senior secured revolving credit facility.

2.

Pro forma adjustments reflect the impact of net revenues and expenses of our recent acquisitions and divestment as they have occurred as of the beginning of the fiscal year of acquisitions or divesture.

 

Sabine Oil & Gas LLC

Selected Balance Sheet Data (unaudited)



December 31,


December 31,


2013


2012


(in thousands)

Assets:




    Total current assets

$          93,921


$          98,371

    Total property plant and equipment, net

1,380,042


1,256,210

    Other non-current assets

204,756


205,978

Total assets

$      1,678,719


$      1,560,559





Liabilities and member's capital:




    Total current liabilities

$        209,327


$          85,920

    Credit facility

250,000


405,000

    Term loan

645,272


490,127

    Senior notes

348,040


347,411

    Other non-current liabilities

25,070


31,668

Total Liabilities 

1,477,709


1,360,126





    Member's capital

201,010


200,433





Total Liabilities and member's capital

$      1,678,719


$      1,560,559









Selected Cash Flow Data (unaudited)





Year Ended December 31,


2013


2012


(in thousands)

Net cash provided by operating activities

$        217,198


$        144,166

Net cash used in investing activities

(193,809)


(687,385)

Net cash provided by (used in) financing activities

(17,761)


545,106

Net increase in cash and cash equivalents

5,628


1,887





Cash and cash equivalents, beginning of period

6,193


4,306

Cash and cash equivalents, end of period

$          11,821


$            6,193

SOURCE Sabine Oil & Gas LLC

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The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, will explore the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences betwee...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
18th Cloud Expo, taking place June 7-9, 2016, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Isomorphic Software will exhibit at SYS-CON's [email protected] at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, high-productivity enterprise web applications for any device. SmartClient couples the industry’s broadest, deepest UI component set with a java server framework to deliver an end-...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty ...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...