3
2014 Annual Report
2014 Financial Highlights:
Results of Operations
We operate our business in two geographic segments: the U.S. Gulf of Mexico and West Africa. The discussion of the results of operations
and the period-to-period comparisons presented below for each operating segment and our consolidated operations analyzes our
historical results. The following discussion may not be indicative of future results.
Fiscal Year ended December 31, 2014 as compared to year ended December 31, 2013:
Year Ended December 31,
Increase
Percentage
2014
2013
(Decrease)
Change
($ in thousands)
U.S. Gulf of Mexico Segment:
Oil and gas revenue
$
—
$
—
$
—
—%
Operating costs and expenses
Seismic and exploration
31,531
48,688
(17,157)
(35)%
Dry hole expense and impairment
133,223
207,039
(73,816)
(36)%
General and administrative
71,767
72,777
(1,010)
(1)%
Depreciation and amortization
1,693
1,328
365
27%
Total operating costs and expenses
238,214
329,832
(91,618)
28%
Operating income (loss)
(238,214)
(329,832)
(91,618 )
28%
West Africa Segment:
Oil and gas revenue
$
—
$
—
$
—
—%
Operating costs and expenses
Seismic and exploration
54,036
25,525
28,511
112%
Dry hole expense and impairment
103,707
144,011
(40,304)
(28)%
General and administrative
43,093
32,770
10,323
32%
Depreciation and amortization
2,891
546
2,345
429%
Total operating costs and expenses
203,727
202,852
875
0%
Operating income (loss)
(203,727)
(202,852)
875
0%
Consolidated Operations:
Oil and gas revenue
$
—
$
—
$
—
—%
Operating costs and expenses
Seismic and exploration
85,567
74,213
11,354
15%
Dry hole expense and impairment
236,930
351,050
(114,120)
(33)%
General and administrative
114,860
105,547
9,313
9%
Depreciation and amortization
4,584
1,874
2,710
145%
Total operating costs and expenses
441,941
532,684
(90,743)
(17)%
Operating income (loss)
(441,941)
(532,684)
(90,743)
(17)%
Other income (expense)
Gain (loss) on sale of assets
(12)
2,993
(3,005)
(100)%
Interest income
5,958
6,043
(85)
(1)%
Interest expense
(74,768)
(65,376)
9,392
14%
Total other income (expense)
(68,822)
(56,340)
12,482
22%
Net income (loss) before income tax
(510,763)
(589,024)
(78,261)
(13)%
Income tax expense (benefit)
—
—
—
—
Net income (loss)
$
(510,763)
$ (589,024)
$
(78,261)
(13)%
