| Quarterly Financial Data |
Unaudited quarterly financial data are as follows (in thousands, except per share amounts):
|
|
1st
Quarter |
|
|
2nd
Quarter |
|
|
3rd
Quarter |
|
|
4th
Quarter |
|
Year Ended December 31, 2013 (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
259,222 |
|
|
$ |
235,383 |
|
|
$ |
244,555 |
|
|
$ |
244,928 |
|
Operating income |
|
|
60,321 |
|
|
|
53,823 |
|
|
|
31,965 |
|
|
|
622 |
|
Net income (loss) |
|
|
26,618 |
|
|
|
22,396 |
|
|
|
14,194 |
|
|
|
(11,886 |
) |
Basic and diluted earnings (loss) per common share (2) |
|
|
0.35 |
|
|
|
0.29 |
|
|
|
0.19 |
|
|
|
(0.16 |
) |
Year Ended December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
235,886 |
|
|
$ |
215,513 |
|
|
$ |
185,946 |
|
|
$ |
237,146 |
|
Operating income |
|
|
15,913 |
|
|
|
99,100 |
|
|
|
7,560 |
|
|
|
46,737 |
|
Net income |
|
|
3,218 |
|
|
|
53,567 |
|
|
|
(1,471 |
) |
|
|
16,670 |
|
Basic and diluted earnings (loss) per common share (2) |
|
|
0.04 |
|
|
|
0.70 |
|
|
|
(0.02 |
) |
|
|
0.21 |
|
(1) |
In January 2014, we identified that we had been receiving an erroneous million British thermal unit (“MMBtu”) conversion factor from a third party that had the effect of understating natural gas production at our Viosca Knoll 783 field (Tahoe). The incorrect conversion factor had been used on all natural gas production from the field since we acquired it in 2011. The use of the incorrect conversion factor did not affect revenues, operating cash flows or royalty payments to the federal government but did impact reported natural gas production and the calculation of depletion expense. We performed an analysis of the information, assessing both quantitative and qualitative factors, and determined that the impact on our net income reported for prior annual periods, as well as the impact to our earnings trend, was not material to 2011 and 2012 results, thus the adjustment was recognized in the fourth quarter of 2013. |
|
The fourth quarter of 2013 reflects a one-time increase in natural gas production volumes of 2.6 Bcf (with no corresponding increase in revenue) by using the correct conversion factor for the annual periods of 2011 and 2012, and the first three quarters of 2013, which increased DD&A by $7.1 million and decreased net income by $4.6 million. |
(2) |
The sum of the individual quarterly earnings per share may not agree with year-to-date earnings per share because each quarterly calculation is based on the income for that quarter and the weighted average number of shares outstanding during that quarter. |
|