DENVER, CO -- (Marketwired) -- 04/15/13 -- Venoco, Inc. today reported financial and operational results for the fourth quarter and full-year 2012. The company reported a net loss for the year of $47 million on total revenues of $357 million.
Adjusted Earnings, which adjusts for unrealized derivative gains and losses and certain one-time charges, were $54 million for the year. Adjusted EBITDA was $239 million in 2012, up 9% from $219 million in 2011. Please see the end of this release for definitions of Adjusted Earnings and Adjusted EBITDA and a reconciliation of those measures to net income/loss.
Highlights include the following:
•Production of 6.3 million barrels of oil equivalent (MMBOE) for the year, or 17,336 BOE per day (BOE/d). •Oil production of 2.9 million barrels for the year, or 8,033 barrels per day (Bbls/d), a 20% increase over 2011 oil production. •Proved reserves of 52.2 MMBOE as of December 31, 2012, compared to 49.7 MMBOE in 2011, pro forma for the sales of the Sacramento Basin and Santa Clara Avenue properties. PV-10 was $1.5 billion as of December 31, 2012. Please see the end of this release for a definition of PV-10 and a reconciliation of this measure to standardized measure of discounted future cash flows. •Sale of Sacramento Basin properties and certain onshore Monterey acreage on December 31, 2012 for $250 million.
Effective December 31, 2012, the Company sold all of its producing properties in the Sacramento Basin as well as its prospective onshore Monterey acreage in the San Joaquin basin, excluding the Sevier field, to an unrelated third party for $250 million, subject to customary adjustments. As of April 15, 2013, the Company has received $242 million of the proceeds from the sale. The remaining $8 million is currently held in escrow and will be released upon the receipt of consents regarding the transfer of ownership of certain assets. The Company expects to receive those consents and the related proceeds from escrow prior to June 30, 2013.
"Throughout 2012 we concentrated our efforts and capital on our oily, Southern California legacy assets given our bearish outlook on natural gas prices for the short and mid-term period. Although we had great assets in the Sacramento Basin, the depressed natural gas price environment relative to oil prices precluded us from developing the assets to their full potential," said Ed O'Donnell, Venoco's CEO. "The price we received from the sale of our Sacramento Basin assets was highly favorable and allowed us to pay down a significant amount of the debt we took on in the going private transaction."
Fourth Quarter and Full-Year Production
Production in the fourth quarter of 2012 was 16,939 BOE/d compared to 17,899 BOE/d in the third quarter of 2012 and 17,810 BOE/d in the fourth quarter of 2011. Full year production for 2012 was 17,336 BOE/d compared to 17,612 BOE/d in 2011. Oil production in the fourth quarter of 2012 of 8,348 Bbls/d was down compared to 9,120 Bbls/d in the third quarter of 2012 primarily as a result of scheduled annual maintenance at the company's South Ellwood field and well work at the company's West Montalvo field. Fourth quarter 2012 oil production was up 24% over oil production of 6,739 Bbls/d in the fourth quarter of 2011. Oil production was up 20% for the full year 2012 to 8,033 Bbls/d from 6,688 Bbls/d in 2011, primarily as a result of successful drilling at the company's South Ellwood and West Montalvo fields during 2012.
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