The Corporation's capital expenditures were financed by cash flow from operations and borrowings under the Corporation's credit facilities. On September 6, 2012, the Corporation entered into a new loan agreement with a bank syndicate. Under the terms of the agreement, the Corporation now has access to credit facilities aggregating to approximately $130 million for a term of three years. As at December 31, 2012, the Corporation carried long-term debt of $80 million and working capital of $45.5 million.
The 2013 capital expenditure budget has been approved by the Board of Directors and is projected to be $30.4 million.
For the year ended December 31, 2012, the Corporation paid dividends of $0.66 per share to its shareholders (2011 - $0.48 per share), or $18.6 million (2011 - $12.5 million). PHX Energy ended 2012 with a cash dividend payout ratio of 37 percent (cash dividends paid divided by funds from operations).
Financial Highlights
(Stated in thousands of dollars except per share amounts, percentages and shares outstanding)
Three-month periods ended Years ended December 31, December 31, % % 2012 2011 Change 2012 2011 Change--------------------------------------------------------------------------------------------------------------------------------------------------------Operating Results (unaudited)(unaudited)Revenue 79,473 73,606 8 301,720 260,063 16Net earnings 4,537 5,284 (14) 17,707 18,328 (3)Earnings per share - diluted 0.16 0.19 (16) 0.63 0.65 (3)EBITDA (1) 13,575 13,566 - 48,837 45,007 9EBITDA per share - diluted (1) 0.48 0.48 - 1.73 1.59 9----------------------------------------------------------------------------Cash FlowCash flows from operating activities 13,748 19,376 (29) 33,070 23,224 42Funds from operations (1) 13,890 13,182 5 50,621 44,233 14Funds from operations per share - diluted (1) 0.49 0.47 4 1.79 1.56 15Dividends paid 5,080 3,165 61 18,595 12,474 49Dividends per share (2) 0.18 0.12 50 0.66 0.48 38Capital expenditures 5,334 15,012 (64) 51,452 49,280 4--------------------------------------------------------------------------------------------------------------------------------------------------------Financial Position, December 31,Working capital 45,480 44,868 1Long-term debt 80,000 56,000 43Shareholders' equity 115,095 113,868 1Common shares outstanding 28,241,371 28,091,062 1--------------------------------------------------------------------------------------------------------------------------------------------------------
(1) Refer to non-GAAP measures section.
(2) Dividends made by the Corporation on a per share basis in the period.
Non-GAAP Measures
PHX Energy uses certain performance measures throughout this document that are not recognizable under Canadian generally accepted accounting principles ("GAAP"). These performance measures include earnings before interest, taxes, depreciation and amortization ("EBITDA"), EBITDA per share, funds from operations and funds from operations per share. Management believes that these measures provide supplemental financial information that is useful in the evaluation of the Corporation's operations and are commonly used by other oil and natural gas service companies. Investors should be cautioned, however, that these measures should not be construed as alternatives to measures determined in accordance with GAAP as an indicator of PHX Energy's performance. The Corporation's method of calculating these measures may differ from that of other organizations, and accordingly, these may not be comparable. Please refer to the non-GAAP measures section.
