Financial and Production Results for the Twelve Months Ended December 31, 2012
Magnum Hunter reported an increase in revenues of 138% to $271.0 million for the twelve months ended December 31, 2012 compared to $113.7 million for the twelve months ended December 31, 2011. This increase in revenues was driven principally by the increases in our oil and natural gas production as a result of acquisitions, expanded drilling completed throughout the year in our unconventional resource plays and an increased focus on oil/liquids capital expenditures.
The Company reported a net loss of $167.4 million attributable to common shareholders or ($1.07) per basic and diluted common shares outstanding for the twelve months ended December 31, 2012, compared to a net loss of $90.7 million or ($0.80) per basic and diluted common shares outstanding during the twelve months ended December 31, 2011. The Company's net loss attributable to common shareholders for the twelve months ended December 31, 2012 was $16.5 million or ($0.11) per basic and diluted common shares outstanding when adjusted for non-cash and non-recurring expenses of $150.9 million (see Non-GAAP Financial Measures and Reconciliations below).
For the twelve months ended December 31, 2012, Magnum Hunter's Adjusted EBITDAX was $168.6 million. Operating margins increased due to increased production as a result of acquisitions and our increased upstream capital budget focused on oil/liquids drilling. Operating margins also improved as lease operating expenses per Boe declined from $13.10 per Boe to $10.67 per Boe, primarily due to the addition of new unconventional production, tighter controls on overall field operating expenses; and recurring cash general and administrative costs were $7.43 per Boe (see Non-GAAP Financial Measures and Reconciliations below).
Oil and gas production increased 139% for the twelve months ended December 31, 2012 to 4.814 MMBoe or 13,152 Boepd (49% oil/liquids) as compared to the 2.011 MMBoe or 5,510 Boepd reported for the twelve months ended December 31, 2011. The increase in production is primarily attributable to acquisitions as well as organic growth due to the Company's expanded drilling program focused on oil/liquids drilling.
Proved Reserves Overview
The Company's proved reserves as of December 31, 2012, which were disclosed in the Company's previously released reserve update on January 23, 2013, remain unchanged. As of December 31, 2012, the Company had approximately 73.1 MMBoe of estimated proved reserves, of which approximately 63% was oil and natural gas liquids and approximately 52% was classified as proved developed producing reserves. After giving effect to the completion in April 2013 of our Eagle Ford Shale properties sale, the Company had total proved reserves as of December 31, 2012 of approximately 61.6 MMBoe, of which approximately 57% was oil and natural gas liquids and approximately 56% was classified as proved developed producing reserves.
The Company recorded approximately $74.7 million of non-cash charges for impairment to its unproved properties and proved properties for the twelve months ended December 31, 2012. Specifically, the Company recorded a $70.6 million unproved property and $4.1 million proved property impairment charge, which compares to the estimate of $87.0 million that we previously provided in our Form 8-K dated April 16, 2013. The unproved impairment charge was primarily due to the large acreage position we initially acquired and results to date in the area, which led us to focus on other areas; thereby, impairing certain acreage that will expire in the future. Below is a detailed breakdown of the impairments by division.
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