2015 ANNUAL REPORT: A DECADE OF DISCOVERY
—5—
2015 FINANCIAL HIGHLIGHTS
OUR SIGNIFICANT COST SAVINGS AND EFFICIENCY IMPROVEMENTS
Results of Operations from Continuing Operations
We operate our business in the U.S. Gulf of Mexico and Gabon, West Africa. The discussion of the results of operations and the period-
to-period comparisons presented below for consolidated operations analyzes our historical results and does not include any results of
operations from our Angola assets, which are currently classified as assets held for sale pending the closing of the Angola Transaction.
The following discussion may not be indicative of future results.
Fiscal Year ended December 31, 2015 as compared to year ended December 31, 2014:
Year Ended December 31,
Increase
Percentage
2015
2014
(Decrease)
Change
($ in thousands)
Consolidated Operations:
Oil and gas revenue
$
—
$
—
$
—
—%
Operating costs and expenses
Seismic and exploration
45,318
41,431
3,887
9%
Dry hole expense and impairment
308,960
133,223
175,737
132%
General and administrative
87,031
72,090
14,941
21%
Accretion expense
99
—
99
100%
Depreciation and amortization
1,403
1,694
(291)
(17)%
Total operating costs and expenses
442,811
248,438
194,373
78%
Operating income (loss)
(442,811)
(248,438)
(194,373)
78%
Other income (expense)
Gain (loss) on sale of assets
1,555
—
1,555
100%
Interest income
6,087
5,958
129
2%
Interest expense
(63,376)
(74,768)
11,392
(15)%
Total other income (expense)
(55,734)
(68,810)
13,076
(19)%
Net income (loss) from continuing operations
before income tax
(498,545)
(317,248)
(181,297)
57%
Income tax expense (benefit)
—
—
—
—
Net income (loss) from continuing operations
$
(498,545)
$
(317,248)
$
(181,297)
57%
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Substantial well cost and drilling efficiency improvements realized to date
• ~25% reduction in non-rig rate drilling costs in the Gulf of Mexico
• Improved drilling efficiency; North Platte sidetrack coming in at ~60%
of pre-drill cost estimate
• General and Administrative to benefit from organizational restructuring
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Continued focus on further improvements as costs become better aligned
with lower oil prices
