Clayton William’s 2015 oil, gas and NGL production per BOE decreased 16% in 4Q15, revenue down, but costs $87.6 million v.s $105.3 million in 2014
MIDLAND, Texas – Low oil prices took their toll on Clayton Williams Energy as the company posted a lost of $98 million for 2015.
Fiscal 2015 Results
- Oil and Gas Production of 15.8 MBOE/d
- Adjusted Net Loss (non-GAAP) of $70.4 million
- EBITDAX (non-GAAP) of $112.1 million
Year-End 2015 Reserves
- Total Proved Reserves of 46.6 MMBOE
- 61% of 2015 Production Replaced by Reserve Additions
- 83% Oil and NGL and 78% Proved Developed
Recent Financing Transactions
- New $350 million five-year 2nd lien term loan, fully funded at closing
- Proceeds to repay outstanding balance on revolver
- Reduces 1st lein bank facility to $100 million commitment
- Provides a dedicated source of liquidity
- Significantly eases financial covenants for three years
Balance Sheet and Liquidity
As of December 31, 2015, total long-term debt was $749.8 million, consisting of $150 million of secured debt under a revolving credit facility and $599.8 million of 7.75% Senior Notes due 2019. The borrowing base established by the banks under the credit facility and the aggregate lender commitment was $450 million at December 31, 2015. The Company had $298.1 million of availability under the facility after allowing for outstanding letters of credit of $1.9 million. Liquidity, consisting of cash plus funds available on the bank credit facility, totaled $305.9 million.
Reserves
The Company reported that its total estimated proved oil and gas reserves as of Dec 31, 2015 was 46.6 MMBOE, consisting of 33.1 million barrels of oil, 5.5 million barrels of NGL, and 48.1 Bcf of natural gas. On a BOE basis, oil and NGL comprised 83 per cent of total proved reserves at year-end 2015 and 2014. Proved developed reserves at year-end 2015 were 36.3 MMBOE, or 78 per cent of total proved reserves, versus 42.2 MMBOE, or 56 per cent of total proved reserves, at year-end 2014.
The present value of estimated future net cash flows from total proved reserves, before deductions for estimated future income taxes and asset retirement obligations, discounted at 10 per cent, totaled $0.4 billion at year-end 2015 versus $1.4 billion at year-end 2014.
The following table summarizes the changes in total proved reserves during 2015 on an MMBOE basis.
| MMBOE | |||||
| Total proved reserves, December 31, 2014 | 75.4 | ||||
| Extensions and discoveries | 3.5 | ||||
| Revisions | (26.1 | ) | |||
| Sales of reserves | (0.4 | ) | |||
| Production | (5.8 | ) | |||
| Total proved reserves, December 31, 2015 | 46.6 | ||||