DENVER, CO -- (Marketwired) -- 05/14/13 -- Venoco, Inc. today reported financial and operational results for the first quarter 2013. The company reported a net loss of $4.2 million for the quarter on total revenues of $87.3 million.
Adjusted Earnings, which adjusts for unrealized derivative gains and losses and certain other items, were $4.8 million for the quarter. Adjusted EBITDA was $40.4 million in the first quarter of 2013, compared to $40.7 million in the fourth quarter of 2012. 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 957 thousand barrels of oil equivalent (MBOE) for the quarter, or 10,628 BOE per day (BOE/d); excluding volumes contributed by Sacramento Basin properties held in escrow, production for the quarter was 855 MBOE or 9,501 BOE/d.
•Daily oil volumes in the first quarter of 2013 were up 8% over the fourth quarter 2012 and up 28% over first quarter 2012.
•Entered into an amendment to the revolving credit agreement which increased the borrowing base of the facility. The company repaid the second lien term loan with proceeds from the amended facility.
•Production from the first well completed at South Ellwood in 2013 averaged more than 1,500 gross BOE per day in March and has averaged approximately 1,400 gross BOE per day over the last 30 days.
"With the amendment of our revolving credit facility, repayment of our second lien term loan and the completion of our first well of 2013 at South Ellwood during the first quarter, we have had a very eventful start to the year," said Ed O'Donnell, Venoco's CEO. "Being able to get these milestones behind us early in the year clears the path for us to execute on our capital plan and access some of the extensive value that we have in our oily Southern California assets."
Sacramento Basin Sale Update
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. Portions of the proceeds from the sale were held in escrow pending receipt of consents regarding the transfer of ownership of certain assets. As of May 1, all proceeds have been released from escrow and received by Venoco.
As title for the properties held in escrow did not transfer to the purchaser until the consents regarding the transfer of ownership were obtained, the company's reported production of 10,628 BOE/d for the first quarter of 2013 includes 1,127 BOE/d of production from the affected Sacramento Basin properties.
First Quarter Production
Pro forma for the sale of the Sacramento Basin assets, production in the first quarter of 2013 was 9,501 BOE/d compared to 8,718 BOE/d in the fourth quarter of 2012 and 7,455 BOE/d in the first quarter of 2012. Daily oil production in the first quarter 2013 of 9,011 Bbls/d was up 8% compared to 8,348 Bbls/d in the fourth quarter of 2012, primarily as a result of production from the 3242-4RD well at South Ellwood which was completed in late February 2013. The well contributed nearly 500 BOE/d to the first quarter net production and over the last 30 days, has produced at an average rate of about 1,400 gross BOE/d. Additionally, during the fourth quarter 2012, we performed scheduled annual maintenance at the South Ellwood field which negatively impacted fourth quarter 2012 production by an estimated 400 - 450 BOE/d. First quarter 2013 oil production of 9,011 Bbls/d was up 28% over oil production of 7,044 Bbls/d in the first quarter of 2012, primarily as a result of successful drilling at the company's South Ellwood and West Montalvo fields during 2012 and early 2013.
Most Popular Stories
- 15 Myths That Could Ruin Your Hispanic Ad Campaign
- General Motors Names Mary Barra as First Female CEO
- Cold Dis-comfort: Antarctica Set Record of -135.8
- Obama Delivers Speech at Mandela Memorial: Transcript
- Uruguay Gets Ready for Legal Marijuana
- Oldaker Takes Center Stage at Entrepreneur Awards
- Slow Week Ahead of December FOMC Meeting
- Hispanics Seek to Grow School Board Members
- Russia Says Nyet to Canada North Pole Claim
- 'Knockout Game': Myth or Menace?