Cobalt International Energy, Inc. Announces Fourth Quarter and Year-End 2015 Results and Provides Operational Update
As of
We expect capital expenditures to be approximately
Angola Sale Status
Cobalt also provided an update on the status of its sale of
Cost Reduction Efforts
Cobalt has aggressively sought to preserve value and protect its balance
sheet by working with its services and equipment providers to reduce the
costs of all goods and services associated with Cobalt’s operations.
Through these initial efforts, Cobalt has successfully captured
significant cost savings that effectively reduce the overall daily
spread rate for our operated drilling activities from approximately
With the pending transfer of Cobalt’s Angolan assets and its focus on
reducing costs, Cobalt is also in the process of restructuring its
organization to better align with its post-
Operational Update
Cobalt also announced that initial oil and gas production commenced from
the
Appraisal operations continued at North Platte, where earlier this
month, Cobalt reached objective depth in the North Platte #3 sidetrack
appraisal well. Cobalt is currently conducting logging and evaluation
operations and results to date indicate the well encountered
approximately 500 feet of net oil pay in what appears to be excellent
reservoir quality rock. Cobalt’s preliminary correlations indicate a
column height in excess of 2000 feet in the Inboard Lower Tertiary
reservoirs. While evaluation of the well results is ongoing,
pressures and fluid samples taken in the well indicate that the rock and
reservoir properties are among the best that Cobalt has seen in the
Inboard Lower Tertiary Trend. Along with the complete analysis of these
recent well results, additional appraisal and technical studies will be
required to confirm the commerciality of North Platte. Cobalt, as
operator, holds a 60% working interest in
Drilling operations commenced on the Anchor #3 appraisal well this
month. Anchor #3 is the second appraisal well on the Anchor Inboard
Lower Tertiary discovery. Cobalt announced the Anchor discovery in
At Shenandoah, following the success of the Shenandoah #4 appraisal sidetrack, which encountered more than 600 net feet of high quality oil pay, Cobalt and its partners successfully acquired more than 550 feet of whole core from the hydrocarbon-bearing reservoir interval. The Shenandoah #5 appraisal well is expected to commence during the first quarter of 2016, and is designed to confirm and extend the reservoir boundaries. Cobalt, as non-operator, holds a 20% working interest in Shenandoah.
In addition to these appraisal and development operations, Cobalt plans
to drill its
Conference Call
A conference call for investors will be held today at
The call can be accessed live over the telephone by dialing (877)
407-9039, or for international callers (201) 689-8470. 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 13630051. The replay will be available until
Interested parties may also listen to a simultaneous webcast of the conference call by accessing the Newsroom-Events & Speeches section of Cobalt’s website at www.cobaltintl.com. A replay of the webcast will also be available for approximately 30 days following the call.
About Cobalt
Cobalt is an independent exploration and production company active in
the deepwater U.S. Gulf of
Forward-Looking Statements
This press release includes “forward-looking statements” within the
meaning of the safe harbor provisions of the Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934 — that is, statements related to future, not past, events.
Forward-looking statements are based on current expectations and include
any statement that does not directly relate to a current or historical
fact. In this context, forward-looking statements often address Cobalt’s
expected future business and financial performance, and often contain
words such as “anticipate,” “believe,” “intend,” “expect,” “plan,”
“will” or other similar words. These forward-looking statements involve
certain risks and uncertainties that ultimately may not prove to be
accurate. Actual results and future events could differ materially from
those anticipated in such statements. For further discussion of risks
and uncertainties, individuals should refer to Cobalt’s
Consolidated Statement of Operations Information: |
|||||||||||||||||
Quarter Ending December 31, | Year Ending December 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
($ in thousands except per share data) | |||||||||||||||||
Oil and gas revenue |
$ |
- |
$ |
- |
$ |
- |
$ |
- |
|||||||||
Operating costs and expenses | |||||||||||||||||
Seismic and exploration | 9,593 | 23,251 | 45,318 | 41,431 | |||||||||||||
Dry hole expense and impairment | 270,650 | 62,189 | 308,960 | 133,223 | |||||||||||||
General and administrative | 34,035 | 34,074 | 87,031 | 72,090 | |||||||||||||
Accretion expense | 99 |
- |
99 |
- |
|||||||||||||
Depreciation and amortization | 278 | 416 | 1,403 | 1,694 | |||||||||||||
Total operating costs and expenses | 314,655 | 119,930 | 442,811 | 248,438 | |||||||||||||
Operating income (loss) | (314,655 | ) | (119,930 | ) | (442,811 | ) | (248,438 | ) | |||||||||
Other income (expense) | |||||||||||||||||
Gain on sale of assets | (1,077 | ) |
- |
1,555 |
- |
||||||||||||
Interest income | 1,499 | 1,683 | 6,087 | 5,958 | |||||||||||||
Interest expense | (10,811 | ) | (22,138 | ) | (63,376 | ) | (74,768 | ) | |||||||||
Total other income (expense) | (10,389 | ) | (20,455 | ) | (55,734 | ) | (68,810 | ) | |||||||||
Net income (loss) from continuing operations before income tax | (325,044 | ) | (140,385 | ) | (498,545 | ) | (317,248 | ) | |||||||||
Income tax expense |
- |
- |
- |
- |
|||||||||||||
Net income (loss) from continuing operations | (325,044 | ) | (140,385 | ) | (498,545 | ) | (317,248 | ) | |||||||||
Net income (loss) from discontinued operations | (161,830 | ) | (76,179 | ) | (195,881 | ) | (193,515 | ) | |||||||||
Net income (loss) | $ | (486,874 | ) | $ | (216,564 | ) | $ | (694,426 | ) | $ | (510,763 | ) | |||||
Basic and diluted income (loss) per share from continuing operations | $ | (0.80 | ) | $ | (0.34 | ) | $ | (1.22 | ) | $ | (0.78 | ) | |||||
Basic and diluted income (loss) per share from discontinued operations | $ | (0.39 | ) | $ | (0.19 | ) | $ | (0.48 | ) | $ | (0.47 | ) | |||||
Basic and diluted income (loss) per share | $ | (1.19 | ) | $ | (0.53 | ) | $ | (1.70 | ) | $ | (1.25 | ) | |||||
Weighted average common shares outstanding | 408,545,467 | 407,283,328 | 408,535,122 | 407,116,144 | |||||||||||||
Consolidated Balance Sheet Information: |
|||||||
December 31, | December 31, | ||||||
2015 | 2014 | ||||||
($ in thousands) | |||||||
Cash and cash equivalents | $ | 71,593 | $ | 246,704 | |||
Restricted cash and cash equivalents | 252,950 |
- |
|||||
Short-term investments | 885,994 | 1,530,206 | |||||
Current assets held for sale | 1,811,051 | 173,714 | |||||
Total current assets | 3,146,291 | 2,003,134 | |||||
Total property, plant and equipment | 895,936 | 714,654 | |||||
Long-term assets held for sale |
- |
1,327,661 | |||||
Total assets | 4,094,103 | 4,450,862 | |||||
Total current liabilities | 628,018 | 303,600 | |||||
Total long-term liabilities | 2,019,948 | 2,032,996 | |||||
Total stockholders’ equity (408,740,182 and 408,505,079 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively) | 1,446,137 | 2,114,266 | |||||
Total liabilities and stockholders’ equity | $ | 4,094,103 | $ | 4,450,862 | |||
Consolidated Statement of Cash Flows Information: |
||||||||
Year Ended December 31, | ||||||||
2015 | 2014 | |||||||
($ in thousands) | ||||||||
Net cash provided by (used in): | ||||||||
Operating activities – continuing operations | $ | (135,424 | ) | $ | 9,986 | |||
Investing activities – continuing operations | 496,572 | (779,375 | ) | |||||
Financing activities – continuing operations | (4,068 | ) | 1,269,180 | |||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160222005636/en/
Source:
Cobalt International Energy, Inc.
Investor Relations:
Rob
Cordray, +1 713-579-9126
Director, Investor Relations
or
Media
Relations:
Lynne L. Hackedorn, +1 713-579-9115
Vice President,
Government and Public Affairs