DALLAS, Feb. 24, 2016 /PRNewswire/ -- RSP Permian,
Inc. ("RSP" or the "Company") (NYSE: RSPP) today reported financial
and operating results for the quarter and year ended December 31, 2015, year-end 2015 proved reserves
and 2016 capital plan and guidance. In addition, the Company
will file its Annual Report on Form 10-K for the year ended
December 31, 2015 with the Securities
and Exchange Commission (the "SEC") and posted an updated
presentation on its website at www.rsppermian.com.
Highlights
- 4Q15 production increased by 50% to 24.3 MBoe/d (75% oil) as
compared to 4Q14 and increased 1% as compared to 3Q15. Full-year
2015 production increased by 77% to 21.0 MBoe/d (75% oil) as
compared to 2014 pro forma amounts.
- Production in 4Q15 was negatively impacted 1.4 MBoe/d, due to a
fire at the Company's Cross Bar Ranch production facility in
November and by a winter storm in December. The facility was
repaired and production fully restored in early 1Q16.
- 4Q15 adjusted EBITDAX increased by 12% to $74.4 million as compared to 4Q14 and decreased
5% as compared to 3Q15.
- 4Q15 net loss was $20.8 million,
or ($0.21) per share compared to pro
forma net income of $57.7 million, or
$0.74 per diluted share in 4Q14. Pro
forma information eliminates certain non-recurring expenses and tax
adjustments associated with our initial public offering. 4Q15 net
loss includes a $30.0 million
impairment of oil and gas properties. Adjusted net income for 4Q15,
which does not include that item, was $12.1
million, or $0.12 per diluted
share, compared to $12.6 million or
$0.16 per diluted share in 4Q14.
- 4Q15 cash operating expenses decreased by 33% to $9.98 per Boe as compared to 4Q14 and decreased
5% per Boe as compared to 3Q15. 4Q15 lease operating expenses of
$4.76 per Boe (before gathering and
transportation) and $5.18 per Boe
including gathering and transportation.
- Completed first four horizontal wells of a total of six drilled
in western Glasscock County with
early production results exceeding any RSP wells to date.
- First two wells drilled to an average lateral length of
approximately 9,900' and targeted the Wolfcamp A and Upper Wolfcamp
B zones, produced average IP-30s of 1,817 Boe/d (83% oil) and
average cumulative production after 60 days of approximately 93
MBoe per well.
- Second two wells were shorter laterals, drilled to an average
lateral length of approximately 4,950', and are still flowing
naturally and achieved average IP-30s of 987 Boe/d (83% oil).
- Two additional horizontal wells, with average lateral lengths
of 9,484', targeting the Lower Spraberry and Lower Wolfcamp B zones
were recently completed and in early flowback.
- 4Q15 total capex, excluding acquisitions, of $64.1 million and full-year 2015 capex, excluding
acquisitions, of $391.0 million.
- Total proved reserves at year end 2015 increased 50% to 159.2
MMBoe (70% oil, 16% natural gas liquids, 14% natural gas) as
compared to 2014, replacing 1,042% of 2015 production, 855%
organically, with a drilling finding and development ("F&D")
cost of $5.77 per Boe.
- Maintained a strong year-end liquidity position with
$142.7 million of cash and an undrawn
$600 million revolver.
- Rating agencies concluded review of RSP in 1Q16, S&P
upgraded RSP's senior notes to B+ and affirmed B+ corporate family
rating, Moody's affirmed RSP's B3 senior notes rating and B2
corporate family rating.
Recent Acquisitions
- As previously announced, RSP closed the acquisition of oil and
natural gas assets from Wolfberry Partners LLC ("WPR") for
approximately $137.0 million in 4Q15.
- Prior to closing the WPR acquisition, RSP completed an offering
of 8.7 million shares of common stock, resulting in approximately
$218.1 million of net proceeds.
- RSP has recently acquired $29.4
million of additional interests in WPR properties and other
properties the Company acquired during 2015. All acquired interests
are in top-tier horizontal acreage located in the core of our
operating areas in Midland,
Martin and Glasscock counties.
- These recent acquisitions added approximately 1,250 net acres,
115 Boe/d of production and 36 net horizontal locations.
- Approximately $0.8 million was
funded and closed prior to year-end and the remaining $28.6 million has closed in 1Q16.
Steve Gray, Chief Executive
Officer, stated, "We increased our production rate slightly in the
fourth quarter after growing it over 20% in the third quarter, even
though we lost 1.4 MBoe per day of production as a result of a fire
at Cross Bar Ranch and winter storms affecting our
operations. Despite these interruptions, we achieved our
increased production guidance for the year and with our reduced
completion pace, we were cash flow neutral in the fourth
quarter. I am also pleased to announce that our initial
horizontal wells in western Glasscock
County are record wells for RSP, generating the highest
production rates out of our entire horizontal portfolio and
highlighting the resource potential of this new core operating area
of RSP. We continue to test new spacing patterns and
completion designs so that we can achieve higher recoveries, cost
reductions and further expand our horizontal inventory."
Mr. Gray continued, "Although our capital efficiency and cost
structure are among the best in the U.S. E&P industry and
enable us to generate positive returns at current prices, we have
reduced our activity level while prices are depressed and recently
dropped to two horizontal rigs. We have budgeted to spend 40%
less than we did last year in our drilling program and will fund
this amount primarily with operating cash flow and our cash
position. If current oil prices continue into next year, we
intend to keep our two horizontal rig program and spend less in
2017 while maintaining our production rates and all of our core
leasehold positions. We will accelerate activity when pricing
improves, but we are well positioned for the current environment
with our premier asset base, efficient cost structure and a
management team that has navigated market cycles before."
2016 Capital Plan and Guidance
RSP began 2016 with three operated horizontal rigs and recently
released one of these rigs. The Company has two operated
horizontal rigs under contract for the remainder of 2016 with one
contract expiring in January 2017 and
the other contract expiring in April 2017. As a result of a
reduced completion pace in the fourth quarter of 2015, the Company
built an inventory of 18 drilled and uncompleted horizontal wells
at year end and 2 drilled and uncompleted vertical wells. The
Company intends to complete this inventory along with wells drilled
during the year to complete between 36 to 48 gross operated
horizontal wells and approximately 5 vertical wells. RSP's
capital budget in 2016 is $200 million to
$260 million, down 41% compared to the $391 million invested in 2015 (excluding
acquisitions), with $185 million to $235
million allocated to drilling and completion activities and
$15 million to $25 million allocated
to infrastructure and other. The Company expects non-operated
capital expenditures in 2016 to represent approximately 10% of
total capital expenditures.
|
|
2015
|
|
2016
|
2015 Actuals and
2016 Guidance
|
|
Actual
|
|
Guidance
|
|
|
|
|
|
Operated Horizontal
Completions
|
|
45
|
|
36 - 48
|
Operated Vertical
Completions
|
|
19
|
|
5
|
Total Capital
Expenditures (excluding acquisitions) ($ in MM)
|
|
$391
|
|
$200 -
$260
|
Average Daily
Production (Boe/d)
|
|
21,047
|
|
23,000 -
27,000
|
% Oil
|
|
75%
|
|
75% - 76%
|
% Natural
Gas
|
|
11%
|
|
10% - 11%
|
% NGLs
|
|
14%
|
|
13% - 14%
|
|
|
|
|
|
Operating
Costs
|
|
|
|
|
Lease operating
expenses (including workovers) ($/Boe)
|
|
$6.46
|
|
$5.00 -
$6.00
|
Gathering and
transportation ($/Boe)
|
|
$0.46
|
|
$0.45 -
$0.50
|
Exploration expenses
($/Boe)
|
|
$0.31
|
|
$0.25 -
$0.30
|
General and
administrative - cash component ($/Boe)
|
|
$2.33
|
|
$2.00 -
$2.50
|
General and
administrative - stock comp ($/Boe)
|
|
$1.03
|
|
$1.25 -
$1.50
|
Depreciation,
depletion, and amortization ($/Boe)
|
|
$20.05
|
|
$18.00 -
$20.00
|
Production and ad
valorem taxes (% of oil and gas revenues)
|
|
7.0%
|
|
7.0% -
8.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary Financial
Results
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
Actual
|
Pro
Forma
|
|
Actual
|
Pro
Forma
|
|
2015
|
2014
|
2014
|
|
2015
|
2014
|
|
|
(In thousands,
except for per share data)
|
|
|
|
|
|
|
|
|
|
Total
Revenues
|
73,508
|
|
79,458
|
|
79,458
|
|
|
283,992
|
|
281,925
|
|
286,909
|
|
Net Cash from
Derivative Instruments
|
23,122
|
|
9,379
|
|
9,379
|
|
|
92,118
|
|
5,943
|
|
5,943
|
|
Adjusted Total
Revenues
|
96,630
|
|
88,837
|
|
88,837
|
|
|
376,110
|
|
287,868
|
|
292,852
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAX
(1)
|
$
|
74,367
|
|
$
|
66,579
|
|
$
|
66,579
|
|
|
$
|
285,058
|
|
$
|
215,281
|
|
$
|
222,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
(1)
|
12,074
|
|
12,621
|
|
15,683
|
|
|
48,630
|
|
54,329
|
|
70,600
|
|
Adjusted Net
Income per Common Share - Diluted
|
0.12
|
|
0.16
|
|
0.20
|
|
|
0.56
|
|
0.75
|
|
0.94
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
$
|
(20,751)
|
|
$
|
89,503
|
|
$
|
57,738
|
|
|
$
|
(18,254)
|
|
$
|
2,498
|
|
$
|
116,121
|
|
Net Income
(loss) per Common Share - Diluted
|
$
|
(0.21)
|
|
$
|
1.15
|
|
$
|
0.74
|
|
|
$
|
(0.21)
|
|
$
|
0.03
|
|
$
|
1.55
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted EBITDAX and
adjusted net income are non-GAAP financial measures. For a
definition of Adjusted EBITDAX and adjusted net income and a
reconciliation of Adjusted EBITDAX and adjusted net income to net
income, see "Use of Non-GAAP financial measures" and our annual and
quarterly statements of operations at the end of this
release.
|
For the quarter ended December 31,
2015, total revenues, excluding the revenue impact from
realized derivative instruments, were $73.5
million, a 7% decrease over the prior year quarter of
$79.5 million. Adjusted total
revenues, including the net cash from derivative instruments, were
$96.6 million, an increase of 9% over
the prior year quarter of $88.8
million. Adjusted EBITDAX for the quarter ended was
$74.4 million, an increase of 12%
over the prior year of $66.6
million. Adjusted net income for the quarter ended was
$12.1 million, or $0.12 per diluted share, compared with adjusted
net income for the prior year of $12.6
million or $0.16 per diluted
share. Net loss for the fourth quarter of 2015 was
$20.8 million, or ($0.21) per diluted share, while net income for
the fourth quarter of 2014 was $89.5
million, or $1.15 per diluted
share. Pro forma net income for the fourth quarter of 2014
was $57.7 million, or $0.74 per diluted share.
For the year ended December 31,
2015, total revenues, excluding the revenue impact from
realized derivative instruments, were $284.0
million, a 1% increase over the prior year of $281.9 million. Adjusted total revenues,
including the net cash from derivative instruments, was
$376.1 million, an increase of 31%
over the prior year ended 2014 of $287.9
million. Adjusted EBITDAX for the year ended 2015 was
$285.1 million, an increase of 32%
over the prior year ended 2014 of $215.3
million. Adjusted net income for the year ended 2015
was $48.6 million, or $0.56 per diluted share, a 10% decrease from the
prior year ended 2014 of $54.3
million or $0.75 per diluted
share. Net loss for the year ended 2015 was $18.3 million, or ($0.21) per diluted share, while net income for
the year ended 2014 was $2.5 million,
or $0.03 per diluted share. Pro
forma net income for the year ended 2015 was $116.1 million, or $1.55 per diluted share.
Operational Update
The Company operated 3 horizontal drilling rigs during the
fourth quarter and drilled 10 operated horizontal wells. RSP
completed 8 operated horizontal wells (1 Lower Spraberry, 4
Wolfcamp A and 3 Wolfcamp B). The Company exited the year
with 20 drilled and uncompleted wells, 18 uncompleted horizontal
wells and 2 uncompleted vertical wells. During 2015, RSP
completed 45 operated horizontal wells (2 Middle Spraberry, 15
Lower Spraberry, 14 Wolfcamp A and 14 Wolfcamp B) and 19 operated
vertical wells in 2015.
|
|
4Q15
Wells
|
|
|
Drilled
|
Completed
|
Waiting On
Completion
|
|
|
|
|
|
|
|
4Q15
Wells
|
|
|
|
|
|
|
Operated
Wells
|
|
|
|
Horizontal
|
10
|
|
8
|
|
18
|
|
Vertical
|
|
1
|
|
—
|
|
2
|
|
|
|
|
|
|
Non-Operated
Wells
|
|
|
|
|
Horizontal
|
|
15
|
|
8
|
|
13
|
|
Vertical
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
Full-Year 2015
Wells
|
|
|
|
|
|
|
Operated
Wells
|
|
|
|
Horizontal
|
53
|
|
45
|
|
|
Vertical
|
|
12
|
|
19
|
|
|
|
|
|
|
|
Non-Operated
Wells
|
|
|
|
|
Horizontal
|
|
49
|
|
46
|
|
|
Vertical
|
|
4
|
|
5
|
|
|
Quarterly
Operational Results
|
|
|
Three Months Ended
December 31,
|
|
2015
|
|
2014
|
Production
data:
|
|
|
|
Oil
(MBbls)
|
1,683
|
|
1,080
|
Natural gas
(MMcf)
|
1,554
|
|
939
|
NGLs
(MBbls)
|
289
|
|
248
|
Total
(MBoe)
|
2,231
|
|
1,485
|
Average net daily
production (Boe/d)
|
24,250
|
|
16,141
|
Average prices
before effects of hedges (1) (2):
|
|
|
|
Oil (per
Bbl)
|
$40.00
|
|
$66.34
|
Natural gas (per
Mcf)
|
1.91
|
|
3.14
|
NGLs (per
Bbl)
|
11.13
|
|
19.60
|
Total (per
Boe)
|
$32.95
|
|
$53.51
|
Average realized
prices after effects of hedges (1) (2):
|
|
|
Oil (per
Bbl)
|
$53.74
|
|
$74.97
|
Natural gas (per
Mcf)
|
1.91
|
|
3.20
|
NGLs (per
Bbl)
|
11.13
|
|
19.60
|
Total (per
Boe)
|
$43.31
|
|
$59.82
|
Average costs (per
Boe):
|
|
|
|
Lease operating
expenses (excluding gathering and transportation)
|
$4.76
|
|
$7.01
|
Gathering and
transportation
|
0.42
|
|
0.54
|
Production and ad
valorem taxes
|
2.56
|
|
3.22
|
Depreciation,
depletion and amortization
|
17.88
|
|
20.71
|
General and
administrative - recurring cash component
|
2.24
|
|
4.21
|
General and
administrative - recurring stock comp (3)
|
0.93
|
|
0.58
|
General and
administrative - IPO stock comp (4)
|
0.15
|
|
2.54
|
|
|
(1)
|
Average prices shown
in the table reflect prices both before and after the effects of
our cash payments/receipts on our commodity derivative
transactions. Our calculation of such effects includes realized
gains or losses on cash settlements for commodity derivative
transactions and an adjustment to reflect premiums incurred
previously or upon settlement that are attributable to instruments
settled in the period, if applicable.
|
|
|
(2)
|
Average prices for
oil are net of transportation costs. Average prices for natural gas
do not include transportation costs; instead, transportation costs
related to our gas production and sales are included in gathering
and transportation which is included in lease operating expenses in
our consolidated statements of operations. No transportation costs
are associated with NGL production and sales.
|
|
|
(3)
|
Represents
compensation expense related to restricted stock awards and
performance share awards granted as part of the Company's ongoing
compensation and retention programs.
|
|
|
(4)
|
Includes compensation
expense related to the successful completion of the Company's
initial public offering ("IPO"). These costs include cash
bonuses, one-time restricted stock awards, and expense related to
performance units.
|
Production volumes for the quarter ended December 31, 2015 averaged 24,250 Boe/d or a
total of 2,231 MBoe, an increase of 50% over prior year's fourth
quarter of 16,141 Boe/d. Production for the fourth quarter of
2015 was comprised of 75% crude oil, 13% NGLs and 12% natural
gas. RSP's average realized commodity price per barrel of oil
equivalents for the fourth quarter of 2015, before the effects of
hedges, was $32.95. RSP's average
realized oil price for the fourth quarter of 2015, before the
effects of hedges, was $40.00 per
barrel, a negative $2.18 differential
compared to NYMEX WTI pricing for the same period, or 95% of NYMEX
WTI pricing. RSP's average realized natural gas price for the
fourth quarter of 2015, before the effects of hedges, was
$1.91 per MMBtu, a negative
$0.36 differential compared to NYMEX
Henry Hub pricing for the same period, or 84% of NYMEX Henry Hub
pricing. Per unit cash operating expenses excluding interest
expense but including lease operating expense, gathering and
transportation, production and ad valorem taxes and recurring cash
general and administrative expenses were $9.98 per Boe, a 33% decrease from prior year's
comparable quarter and a 5% decrease from the prior quarter.
Year-End
Operational Results
|
|
|
Twelve Months
Ended December 31,
|
|
2015
|
|
2014
|
Production
data:
|
|
|
|
Oil
(MBbls)
|
5,805
|
|
3,049
|
Natural gas
(MMcf)
|
4,991
|
|
2,974
|
NGLs
(MBbls)
|
1,045
|
|
718
|
Total
(MBoe)
|
7,682
|
|
4,263
|
Average net daily
production (Boe/d)
|
21,047
|
|
11,679
|
Average prices
before effects of hedges (1) (2):
|
|
|
|
Oil (per
Bbl)
|
$45.36
|
|
$83.10
|
Natural gas (per
Mcf)
|
2.11
|
|
3.55
|
NGLs (per
Bbl)
|
9.75
|
|
25.04
|
Total (per
Boe)
|
$36.97
|
|
$66.13
|
Average realized
prices after effects of hedges (1) (2):
|
|
|
Oil (per
Bbl)
|
$61.22
|
|
$85.01
|
Natural gas (per
Mcf)
|
2.11
|
|
3.59
|
NGLs (per
Bbl)
|
9.75
|
|
25.04
|
Total (per
Boe)
|
$48.96
|
|
$67.53
|
Average costs (per
Boe):
|
|
|
|
Lease operating
expenses (excluding gathering and transportation)
|
$6.46
|
|
$7.49
|
Gathering and
transportation
|
0.46
|
|
0.65
|
Production and ad
valorem taxes
|
2.60
|
|
4.63
|
Depreciation,
depletion and amortization
|
20.05
|
|
20.61
|
General and
administrative - recurring cash component
|
2.33
|
|
4.25
|
General and
administrative - recurring stock comp (3)
|
1.03
|
|
0.64
|
General and
administrative - IPO stock comp (4)
|
0.19
|
|
4.11
|
|
|
(1)
|
Average prices shown
in the table reflect prices both before and after the effects of
our cash payments/receipts on our commodity derivative
transactions. Our calculation of such effects includes realized
gains or losses on cash settlements for commodity derivative
transactions and an adjustment to reflect premiums incurred
previously or upon settlement that are attributable to instruments
settled in the period, if applicable.
|
|
|
(2)
|
Average prices for
oil are net of transportation costs. Average prices for natural gas
do not include transportation costs; instead, transportation costs
related to our gas production and sales are included in gathering
and transportation which is included in lease operating expenses in
our consolidated statements of operations. No transportation costs
are associated with NGL production and sales.
|
|
|
(3)
|
Represents
compensation expense related to restricted stock awards and
performance share awards granted as part of the Company's ongoing
compensation and retention programs.
|
|
|
(4)
|
Includes compensation
expense related to the successful completion of the Company's
IPO. These costs include cash bonuses, one-time restricted
stock awards, and expense related to performance units.
|
Production volumes for the year ended December 31, 2015 averaged 21,047 Boe/d or a
total of 7,682 MBoe, an increase of 80% over prior year's volume of
11,679 Boe/d. Production for 2015 was comprised of 75% crude
oil, 14% NGLs and 11% natural gas. RSP's average realized
commodity price per barrel of oil equivalents for 2015, before the
effects of hedges, was $36.97. RSP's
average realized oil price for 2015, before the effects of hedges,
was $45.36 per barrel, a negative
$3.44 differential compared to NYMEX
WTI pricing for the same period, or 93% of NYMEX WTI pricing. RSP's
average realized natural gas price for 2015, before the effects of
hedges, was $2.11 per MMBtu, a
negative $0.56 differential compared
to NYMEX Henry Hub pricing for the same period, or 79% of NYMEX
Henry Hub pricing. Per unit cash operating expenses excluding
interest expense but including lease operating expense, gathering
and transportation, production and ad valorem taxes and recurring
cash general and administrative expenses were $11.85 per Boe, a 30% decrease from prior
year.
Proved Reserves Summary
RSP's total proved reserves at December
31, 2015, audited by Netherland, Sewell, & Associates,
Inc., our independent petroleum engineers, increased 50% over the
prior year to 159.2 MMBoe. Oil reserves increased 60%
compared to prior year and totaled 111.1 MMBbls and combined with
NGLs of 25.8 MMBbls equaled 86% of total proved reserves with
natural gas of 133.5 MMcf making up the remaining 14% of total
proved reserves. Proved developed reserves increased 54%
compared to last year and were 64.6 MMBoe or 41% of total proved
reserves.
The following table presents our estimated net proved oil and
natural gas reserves as of December 31,
2015 and our net proved oil and natural gas reserves as of
December 31, 2014 and in each case,
prepared in accordance with the rules and regulations of the
SEC.
|
|
|
|
|
Natural
Gas
(MMcf)
|
|
Oil
(MBbls)
|
|
NGLs
(MBbls)
|
|
MBoe
|
Proved developed
and undeveloped reserves:
|
|
|
|
|
|
|
|
|
As of December 31,
2014
|
|
92,422
|
|
|
69,273
|
|
|
21,739
|
|
|
106,416
|
|
|
|
|
|
|
|
|
|
|
Revisions of previous
estimates
|
|
(20,205)
|
|
|
(12,886)
|
|
|
(4,251)
|
|
|
(20,505)
|
|
Extensions,
discoveries and other additions
|
|
55,313
|
|
|
50,375
|
|
|
6,971
|
|
|
66,565
|
|
Purchases of minerals
in place
|
|
10,968
|
|
|
10,178
|
|
|
2,373
|
|
|
14,379
|
|
Production
|
|
(4,991)
|
|
|
(5,805)
|
|
|
(1,045)
|
|
|
(7,682)
|
|
As of December 31,
2015
|
|
133,507
|
|
|
111,135
|
|
|
25,787
|
|
|
159,173
|
|
|
|
|
|
|
|
|
|
|
RSP's acquisitions and drilling program added 66.6 MMBoe in
2015, replacing 1,042% of 2015 production as calculated by the sum
of reserve extensions, discoveries, purchases and revisions
(excluding price revisions), divided by annual production.
The Company's drill-bit F&D costs were $5.77 per BOE calculated as costs incurred for
exploration and development divided by the sum of revisions of
previous estimates (excluding price revisions), extensions,
discoveries and other additions. See "Drill-Bit F&D and
Reserve Replacement Ratio" below for the calculations of the
reserve replacement ratio and drill-bit F&D costs.
Capital Expenditures
RSP's capital expenditures for the year ended December 31, 2015 totaled $391.0 million which included approximately
$354.0 million of drilling and
completion and $37.0 million of
infrastructure and other. Of the total capital spent,
approximately $66.1 million was on
non-operated properties and approximately $48.8 million was on drilling wells the Company
expects to complete in 2016.
Liquidity Update
As of December 31, 2015, the
Company had no borrowings on its revolving credit facility, which
has a $600 million borrowing base,
and had $142.7 million of cash on
hand, for total liquidity available of $742.7 million. Since the end of the third
quarter 2015 RSP has acquired $29.4
million of additional interests in the WPR properties and
other properties the Company acquired during 2015. Pro forma for
these additional acquisitions RSP had $114.1
million of cash at year-end and approximately $714.1 million of total liquidity available.
Hedging
For 2016, the Company has three way collars covering 555,000
barrels of oil production at a blended floor price of $55.00, a blended ceiling price of $74.08, and a short-put price of $45.00.
Description &
Production Period
|
|
Volume
(Bbls)
|
|
Weighted
Average
Floor price
($/Bbl) (1)
|
|
Weighted
Average
Ceiling price
($/Bbl) (1)
|
|
Weighted
Average
Short-Put price
($/Bbl) (1)
|
|
|
|
|
|
|
|
|
|
Crude Oil
Collars:
|
|
|
|
|
|
|
|
|
January 2016 - March
2016
|
|
75,000
|
|
$55.00
|
|
$72.00
|
|
$45.00
|
January 2016 -
December 2016
|
|
480,000
|
|
$55.00
|
|
$74.41
|
|
$45.00
|
|
|
(1)
|
The crude oil
derivative contracts are settled based on the month's average daily
NYMEX price of West Texas Intermediate Light Sweet
Crude.
|
Fourth Quarter and Year-End 2015 Earnings Release and
Conference Call
RSP will host a conference call for investors at 12:00 p.m. Central Time on Thursday, February 25, 2016 to discuss fourth
quarter 2015 results. Hosting the call will be Steve Gray, Chief Executive Officer,
Zane Arrott, Chief Operating Officer
and Scott McNeill, Chief Financial
Officer.
The call may be accessed live over the telephone by dialing
(877) 705-6003, or for international callers, (201) 493-6725.
A replay will be available shortly after the call and can be
accessed by dialing (877) 870-5176, or for international callers
(858) 384-5517. The passcode for the replay is 13629161. The
replay will be available until March 10,
2016. Interested parties may also listen to a simultaneous
webcast of the conference call by logging onto RSP's website at
www.rsppermian.com in the Investor Relations section. A replay of
the webcast will also be available following the call.
About RSP Permian, Inc.
RSP is an independent oil and natural gas company focused on the
acquisition, exploration, development and production of
unconventional oil and associated liquids-rich natural gas reserves
in the Permian Basin of West
Texas. The vast majority of our acreage is located on large,
contiguous acreage blocks in the core of the Midland Basin, a sub-basin of the Permian
Basin, primarily in the adjacent counties of Midland, Martin, Andrews, Glasscock, Dawson and Ector. The Company's common
stock is traded on the NYSE under the ticker symbol "RSPP."
For more information, visit www.rsppermian.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the federal securities laws. All statements, other than
historical facts, that address activities that RSP assumes, plans,
expects, believes, intends or anticipates (and other similar
expressions) will, should or may occur in the future are
forward-looking statements. Forward-looking statements are based on
management's current beliefs, based on currently available
information, as to the outcome and timing of future events. These
forward-looking statements involve certain risks and uncertainties
that could cause the results to differ materially from those
expected by the management of RSP. Information concerning these
risks and other factors can be found in RSP's filings with the SEC,
including its Form 10-K, which can be obtained free of charge on
the SEC's web site located at http://www.sec.gov. RSP undertakes no
obligation to update or revise any forward-looking statement.
Use of Non-GAAP Financial Measures
We define Adjusted EBITDAX as oil and gas revenues including net
cash receipts (payments) on settled derivative instruments and
premiums paid on put options that settled during the period, less
lease operating expenses, production and ad valorem taxes, and
general and administrative expenses excluding stock based
compensation. Adjusted net income deducts from Adjusted
EBITDAX depreciation, depletion, and amortization, accretion on
asset retirement obligations, exploration expenses, interest
expense, stock-based compensation and adjusted income tax
expense.
Management believes Adjusted EBITDAX and adjusted net income are
useful because they allow us to more effectively evaluate our
operating performance and compare the results of our operations
from period to period without regard to our financing methods or
capital structure. We exclude the items listed above in arriving at
Adjusted EBITDAX and adjusted net income because these amounts can
vary substantially from company to company within our industry
depending upon accounting methods and book values of assets,
capital structures and the method by which the assets were
acquired. Adjusted EBITDAX and adjusted net income should not be
considered as an alternative to, or more meaningful than, net
income as determined in accordance with GAAP or as an indicator of
our operating performance or liquidity. Certain items excluded from
Adjusted EBITDAX and adjusted net income are significant components
in understanding and assessing a company's financial performance,
such as a company's cost of capital and tax structure, as well as
the historic costs of depreciable assets, none of which are
components of Adjusted EBITDAX. Our computations of Adjusted
EBITDAX and adjusted net income may not be comparable to other
similarly titled measures of other companies.
The following statements of operations include a reconciliation
of the non-GAAP financial measures of Adjusted EBITDAX and Adjusted
Net Income to the GAAP financial measure of net income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
2015
Actual
|
|
2014
Actual
|
|
2014
Pro
Forma
|
|
2015
Actual
|
|
2014
Actual
|
|
2014
Pro
Forma
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
sales
|
$
|
67,318
|
|
|
$
|
71,646
|
|
|
$
|
71,646
|
|
|
$
|
263,286
|
|
|
$
|
253,371
|
|
|
$
|
257,830
|
|
Natural gas
sales
|
2,973
|
|
|
2,951
|
|
|
2,951
|
|
|
10,517
|
|
|
10,572
|
|
|
10,762
|
|
NGL
sales
|
3,217
|
|
|
4,861
|
|
|
4,861
|
|
|
10,189
|
|
|
17,982
|
|
|
18,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
73,508
|
|
|
79,458
|
|
|
79,458
|
|
|
283,992
|
|
|
281,925
|
|
|
286,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash from
derivative instruments
|
23,122
|
|
|
9,379
|
|
|
9,379
|
|
|
92,118
|
|
|
5,943
|
|
|
5,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Total
Revenues
|
$
|
96,630
|
|
|
$
|
88,837
|
|
|
$
|
88,837
|
|
|
$
|
376,110
|
|
|
$
|
287,868
|
|
|
$
|
292,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating expenses
|
11,546
|
|
|
11,222
|
|
|
11,222
|
|
|
53,124
|
|
|
34,704
|
|
|
35,398
|
|
Production and
ad valorem taxes
|
5,722
|
|
|
4,781
|
|
|
4,781
|
|
|
19,995
|
|
|
19,758
|
|
|
20,009
|
|
General and
administrative expenses
|
4,995
|
|
|
6,255
|
|
|
6,255
|
|
|
17,933
|
|
|
18,125
|
|
|
14,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses
|
$
|
22,263
|
|
|
$
|
22,258
|
|
|
$
|
22,258
|
|
|
$
|
91,052
|
|
|
$
|
72,587
|
|
|
$
|
70,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAX
(2)
|
$
|
74,367
|
|
|
$
|
66,579
|
|
|
$
|
66,579
|
|
|
$
|
285,058
|
|
|
$
|
215,281
|
|
|
$
|
222,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion, and amortization
|
39,887
|
|
|
30,758
|
|
|
30,758
|
|
|
154,039
|
|
|
87,844
|
|
|
91,477
|
|
Asset
retirement obligation accretion
|
84
|
|
|
38
|
|
|
38
|
|
|
336
|
|
|
142
|
|
|
151
|
|
Exploration
|
96
|
|
|
899
|
|
|
899
|
|
|
2,380
|
|
|
3,854
|
|
|
3,854
|
|
Interest
expense
|
13,175
|
|
|
9,517
|
|
|
9,517
|
|
|
43,538
|
|
|
14,031
|
|
|
14,031
|
|
Stock-based
compensation, net
|
2,409
|
|
|
4,634
|
|
|
862
|
|
|
9,384
|
|
|
20,232
|
|
|
2,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income
before income taxes
|
$
|
18,716
|
|
|
$
|
20,733
|
|
|
$
|
24,505
|
|
|
$
|
75,381
|
|
|
$
|
89,178
|
|
|
$
|
110,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income tax
expense
|
6,642
|
|
|
8,112
|
|
|
8,822
|
|
|
26,751
|
|
|
34,849
|
|
|
39,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (2)
|
$
|
12,074
|
|
|
$
|
12,621
|
|
|
$
|
15,683
|
|
|
$
|
48,630
|
|
|
$
|
54,329
|
|
|
$
|
70,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net income per common share - Basic
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
$
|
0.20
|
|
|
$
|
0.56
|
|
|
$
|
0.75
|
|
|
$
|
0.94
|
|
Adjusted
net income per common share - Diluted
|
$
|
0.12
|
|
|
$
|
0.16
|
|
|
$
|
0.20
|
|
|
$
|
0.56
|
|
|
$
|
0.75
|
|
|
$
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items
included in income before taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
(loss) on derivatives, net
|
$
|
(19,683)
|
|
|
$
|
70,143
|
|
|
$
|
70,143
|
|
|
$
|
(71,212)
|
|
|
$
|
75,527
|
|
|
$
|
75,527
|
|
Impairments
|
(30,031)
|
|
|
(4,344)
|
|
|
(4,344)
|
|
|
(34,269)
|
|
|
(4,344)
|
|
|
(4,344)
|
|
Gain (loss) on
asset sale
|
(302)
|
|
|
(15)
|
|
|
(15)
|
|
|
(306)
|
|
|
(13)
|
|
|
(13)
|
|
Other
income
|
242
|
|
|
(74)
|
|
|
(74)
|
|
|
469
|
|
|
(44)
|
|
|
(44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
$
|
(37,700)
|
|
|
$
|
78,331
|
|
|
$
|
81,393
|
|
|
$
|
(56,688)
|
|
|
$
|
125,455
|
|
|
$
|
141,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense
|
$
|
(16,949)
|
|
|
$
|
(11,172)
|
|
|
$
|
23,655
|
|
|
$
|
(38,434)
|
|
|
$
|
122,957
|
|
|
$
|
25,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
$
|
(20,751)
|
|
|
$
|
89,503
|
|
|
$
|
57,738
|
|
|
$
|
(18,254)
|
|
|
$
|
2,498
|
|
|
$
|
116,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per common share - Basic
|
$
|
(0.21)
|
|
|
$
|
1.15
|
|
|
$
|
0.74
|
|
|
$
|
(0.21)
|
|
|
$
|
0.03
|
|
|
$
|
1.55
|
|
Net income
(loss) per common share - Diluted
|
$
|
(0.21)
|
|
|
$
|
1.15
|
|
|
$
|
0.74
|
|
|
$
|
(0.21)
|
|
|
$
|
0.03
|
|
|
$
|
1.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
98,556
|
|
|
77,292
|
|
|
77,292
|
|
|
86,770
|
|
|
71,898
|
|
|
74,297
|
|
Diluted
|
98,556
|
|
|
77,292
|
|
|
77,292
|
|
|
86,770
|
|
|
71,898
|
|
|
74,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Information presented
in this table reflects actual results of RSP and its
predecessor. The IPO and related transactions affect the
comparability of each period presented in the table above.
2014 information represents information with respect to RSP's
predecessor for the first 22 days of 2014 plus that of RSP for the
remainder of the year.
|
|
|
(2)
|
Adjusted EBITDAX and
adjusted net income are non-GAAP financial measures. For a
definition of Adjusted EBITDAX and adjusted net income, see "Use of
Non-GAAP Financial Measures" above.
|
Summary Balance
Sheet
|
|
|
|
December 31,
2015
|
|
|
December 31,
2014
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
142,741
|
|
|
|
$
|
56,292
|
|
|
Other current
assets
|
|
44,799
|
|
|
|
117,450
|
|
|
Total current
assets
|
|
187,540
|
|
|
|
173,742
|
|
|
Property, plant and
equipment, net
|
|
2,758,630
|
|
|
|
2,094,618
|
|
|
Other long-term
assets
|
|
33,401
|
|
|
|
21,587
|
|
|
Total
assets
|
|
$
|
2,979,571
|
|
|
|
$
|
2,289,947
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
77,402
|
|
|
|
104,252
|
|
|
Long-term
debt
|
|
698,650
|
|
|
|
500,000
|
|
|
Other long-term
liabilities
|
|
344,935
|
|
|
|
359,924
|
|
|
Total
stockholders'/members' equity
|
|
1,858,584
|
|
|
|
1,325,771
|
|
|
Total liabilities and
stockholders'/members' equity
|
|
$
|
2,979,571
|
|
|
|
$
|
2,289,947
|
|
|
Drill-Bit F&D
and Reserve Replacement Ratio
|
|
|
|
|
2015
|
Production
(MBoe)
|
|
(A)
|
7,682
|
|
|
|
|
|
Proved Reserves
(MBoe)
|
|
|
|
Non-price revisions
(1)
|
|
(B)
|
(863)
|
|
Purchases
|
|
|
14,379
|
|
Extensions and
discoveries
|
|
(C)
|
66,565
|
|
Total
additions
|
|
(D)
|
80,081
|
|
|
|
|
|
Costs Incurred
(thousands)
|
|
|
|
Property acquisition
costs
|
|
|
|
Proved
|
|
|
104,532
|
|
Unproved
|
|
|
351,806
|
|
Exploration
|
|
(E)
|
—
|
|
Development
|
|
(F)
|
378,910
|
|
Total costs
incurred
|
|
(G)
|
$
|
835,248
|
|
|
|
|
|
Drill-bit F&D
($/Boe)
|
|
(E+F) /
(B+C)
|
5.77
|
|
All sources F&D
($/Boe)
|
|
(G) / (D)
|
10.43
|
|
Reserve replacement
ratio
|
|
(D) / (A)
|
1,042
|
%
|
|
|
|
|
|
|
|
|
(1)
|
Total revisions for
2014 were 1,529 MBoe, including 5,582 MBoe non-price related
revisions and negative revisions of 4,053 MBoe related to
price.
|
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/rsp-permian-inc-announces-fourth-quarter-and-year-end-2015-financial-and-operating-results-year-end-2015-proved-reserves-and-2016-capital-plan-and-guidance-300225853.html
SOURCE RSP Permian, Inc.