PDC Energy reported 2015 year-end results. Net loss for 2015 was $68.3 million, or $1.74 per diluted share.
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This compares to net income of $155.4 million, or $4.24 per diluted share, for 2014.
The year-over-year difference was primarily attributable to lower commodity prices and a year-over-year decrease in commodity price risk management gains.
Net loss in 2015 and net income in 2014 included $161.6 and $167.3 million, respectively, of impairments primarily related to the Company's Utica Shale asset as a result of low commodity prices.
Adjusted net loss, a non-GAAP measure, was $46.1 million, or $1.18 per diluted share in 2015 compared to $37.7 million, or $1.03 per diluted share in 2014. Adjusted net income for 2015, excluding the Utica impairment was $44.2 million, or $1.13 per diluted share.
Net cash from operating activities was $411.1 million for 2015, compared to $236.7 million for 2014. Adjusted cash flows from operations, a non-GAAP financial measure defined below, were $420.8 million for 2015, compared to $250.2 million in 2014. The increase in 2015 cash flows is primarily a result of increased production.
Crude oil, natural gas and NGLs sales, excluding net settlements on derivatives, decreased 20% to $378.7 million in 2015, compared to $471.4 million in 2014.
The crude oil equivalent sales price, excluding net settlements on derivatives, decreased 51% to $24.64 in 2015 compared to $50.72 in 2014. Including the settlements on derivatives, crude oil, natural gas and NGLs revenues increased 31% to $617.6 million in 2015 from $470.6 million in 2014.
Net commodity price risk management activities for 2015 resulted in a gain of $203.2 million. The gain was comprised of $238.9 million in net settlements and a $35.7 million decrease in fair value of unsettled derivatives.
Production costs for 2015, which include lease operating expenses ("LOE"), production taxes and transportation, gathering and processing expenses, were $85.6 million, or $5.57 per Boe, approximately 29% less on a per Boe basis compared to $72.6 million, or $7.81 per Boe, for 2014.
The decrease in production costs on a per Boe basis in 2015 was primarily related to increased production volumes.
LOE on a per Boe basis was $3.71 for 2015, approximately 19% less than 2014 levels of $4.56. Overhead and other production expenses, formerly included in production costs, has been reclassified as general and administrative expense ("G&A") and impairment to more closely align with standard industry practice.
G&A was $90.0 million for 2015 compared to $123.6 million in 2014. G&A reclassified from production costs was approximately $9.0 million in 2015 and $7.7 million in 2014 as shown in the table below.
The decrease in G&A in 2015 was primarily due to $40.3 million of litigation expenses incurred in 2014 partially offset by an incremental increase of $8.2 million in payroll and benefits and non-cash stock-based charges.
G&A, net of the one-time litigation expenses, decreased 35% on a per Boe basis to $5.86 for 2015, compared to $8.96 per Boe for 2014, due to the increase in production volumes. ■