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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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@ThingsExpo Stories
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...
Innodisk is a service-driven provider of industrial embedded flash and DRAM storage products and technologies, with a focus on the enterprise, industrial, aerospace, and defense industries. Innodisk is dedicated to serving their customers and business partners. Quality is vitally important when it comes to industrial embedded flash and DRAM storage products. That’s why Innodisk manufactures all of their products in their own purpose-built memory production facility. In fact, they designed and built their production center to maximize manufacturing efficiency and guarantee the highest quality of our products.
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. Over the summer Gartner released its much anticipated annual Hype Cycle report and the big news is that Internet of Things has now replaced Big Data as the most hyped technology. Indeed, we're hearing more and more about this fascinating new technological paradigm. Every other IT news item seems to be about IoT and its implications on the future of digital business.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. Download Slide Deck: ▸ Here
BSQUARE is a global leader of embedded software solutions. We enable smart connected systems at the device level and beyond that millions use every day and provide actionable data solutions for the growing Internet of Things (IoT) market. We empower our world-class customers with our products, services and solutions to achieve innovation and success. For more information, visit www.bsquare.com.
With the iCloud scandal seemingly in its past, Apple announced new iPhones, updates to iPad and MacBook as well as news on OSX Yosemite. Although consumers will have to wait to get their hands on some of that new stuff, what they can get is the latest release of iOS 8 that Apple made available for most in-market iPhones and iPads. Originally announced at WWDC (Apple’s annual developers conference) in June, iOS 8 seems to spearhead Apple’s newfound focus upon greater integration of their products into everyday tasks, cross-platform mobility and self-monitoring. Before you update your device, here is a look at some of the new features and things you may want to consider from a mobile security perspective.