DENVER, CO -- (Marketwired) -- 08/02/13 -- Venoco, Inc. ("Venoco" or the "company") today reported financial and operational results for the second quarter 2013. The company reported net income of $41.2 million for the quarter on total revenues of $82.4 million.
Adjusted Earnings, which adjusts for unrealized derivative gains and losses and certain other items, were $15.1 million for the quarter up from $4.8 million in the first quarter of 2013. Adjusted EBITDA was $48.6 million in the second quarter of 2013, compared to $40.4 million in the first quarter. 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 897 thousand barrels of oil equivalent (MBOE) for the quarter, or 9,852 BOE per day (BOE/d).
•Daily oil volumes in the second quarter of 2013 were up 4% over the first quarter 2013 and up 23% over second quarter 2012.
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, subject to customary post-closing adjustments. 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.
Second Quarter Production
Production in the second quarter of 2013 was 9,852 BOE/d compared to 9,501 BOE/d in the first quarter of 2013 and 7,944 BOE/d in the second quarter of 2012, both of which are pro forma for the sale of the Sacramento Basin assets. Daily oil production in the second quarter of 2013 of 9,363 Bbls/d was up 4% compared to 9,011Bbls/d in the first quarter of 2013, primarily as a result of production from the company's 3242-4RD well at South Ellwood, which was completed late in the first quarter of 2013. Second quarter 2013 oil production was up 23% over oil production of 7,604 Bbls/d in the second quarter of 2012, primarily as a result of successful drilling at the company's South Ellwood and West Montalvo fields during 2012 and first half of 2013.
"The 3242-4RD well at South Ellwood was placed on production in late February and produced at a rate that averaged approximately 1,500 BOE per day gross in March. Now that the production has stabilized, the well appears to have settled in at around 800 to 850 BOE per day gross, which makes for a highly economic well," stated Ed O'Donnell, Venoco's CEO. "With respect to our West Montalvo and Beverly Hills fields, we experienced mechanical issues on multiple wells in June, which continued into July and resulted in lower production from the fields in the latter part of the second quarter. The majority of these issues have now been resolved and the fields are back up and operating at the levels we expect."
The following table details the company's daily production by region (BOE(1)/d):
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