66
under the Royalty Agreement could be calculated, including, without limitation, outstanding issues related to the RSA Economic
Model, the amount of any such payment that could be owed to Whitton upon consummation of the Angola Transaction is uncertain,
but may be significant. Resolution of any such payment may include an expert determination of such cash value payment. We can
make no assurance that any results from an expert determination process will be favorable to us. Please see “Item 1A. Risk Factors—
We may be required to pay a material cash sum to Whitton Petroleum Services Limited (“Whitton”) in connection with the closing of
the sale of our interests in Blocks 20 and 21 offshore Angola.”
Cash Flows from continuing operations
Year Ended December 31.
2015
2014
2013
($ in thousands)
Net cash provided by (used in):
Operating Activities ............................................................ $ (135,424) $ 9,986 $ (139,922)
Investing Activities .............................................................
496,572
(779,375) (807,690)
Financing Activities ............................................................
(4,068) 1,269,180
(992)
Operating activities.
Net cash of $135.4 million used in operating activities during 2015, $10.0 million provided by operating
activities during 2014 and $139.9 million used in operating activities during 2013 were primarily related to cash payments for seismic
expenses, exploration expenses and inventory.
Investing activities.
Net cash provided by investing activities in 2015 was approximately $496.6 million, compared with net
cash used in investing activities of approximately $779.4 million and $807.7 million in 2014 and 2013, respectively. The net cash
provided in 2015 primarily relates to capital expenditures incurred for the Shenandoah #3 appraisal well, Shenandoah #3 appraisal
well by-pass, Shenandoah #4 appraisal well, initial Anchor appraisal well and bypass operation and North Platte #3 appraisal well and
the Heidelberg development project in the deepwater U.S. Gulf of Mexico, and maturities of investments of $1.9 billion. The net cash
used in 2014 primarily relates to capital expenditures incurred for the Shenandoah #3 appraisal well, Shenandoah #3 appraisal well by-
pass, Anchor #1, Anchor #2 and Yucatan #2 exploration wells and the Heidelberg development project in the deepwater U.S. Gulf of
Mexico, and purchase of investment securities from the net proceeds of the 3.125% convertible senior notes due 2024. The net cash
used in 2013 primarily relates to capital expenditures relating to the Ardennes #1 and Aegean #1 exploration wells in the deepwater
U.S. Gulf of Mexico and the Diaman #1B exploration well offshore Gabon.
Financing activities.
Net cash used in financing activities in 2015 was approximately $4.1 million, compared with net cash provided
by financing activities in 2014 of approximately $1.3 billion and net cash used in financing activities of approximately $1.0 million in 2013.
The $4.1 million net cash used in financing activities relates to the debt issuance costs paid during 2015. The $1.3 billion in net cash provided
by financing activities in 2014 relates to net proceeds we received from the issuance of our 3.125% convertible senior notes due 2024 in May
2014. The $1.0 million net cash used in financing activities relates to the debt issuance costs paid during 2013.
Contractual Obligations
The following table summarizes by period the payments due for our estimated contractual obligations as of December 31, 2015:
Payments Due By Year
2016
2017
2018
2019
2020 Thereafter
Total
($ in thousands)
Drilling Rig and Related Contracts; midstream
agreements .......................................................... $245,726 $246,464 $ 26,236 $ 7,175 $ 5,907 $ 10,133 $ 541,641
Operating Leases................................................. 2,263
2,309
2,369
2,405 2,454
3,172
14,972
Lease Rentals(1).................................................. 5,578
5,220
2,839
2,446 2,341
7,182
25,606
Long-term Debt Obligations(2):
—
Principal.........................................................
—
—
— 1,380,000
— 1,300,000 2,680,000
Interest ........................................................... 76,850 76,850 76,850
76,850 40,625 131,241 479,266
Total
...................................................................
$330,417 $330,843 $108,294 $1,468,876 $ 51,327 $1,451,728 $3,741,485
(1) Relates to the annual delay rental payments payable to the Office of Natural Resources Revenue within the U.S. Department of the
Interior with respect to our U.S. Gulf of Mexico leases. These annual payments are required to maintain the leases from year to
year.
