Crestwood Equity Partners LP
Company Summary
Description
Crestwood Equity Partners LP (NYSE: CEQP) is a publicly traded master limited partnership that owns and operates midstream assets located primarily in the Marcellus Shale, Bakken Shale, Delaware Permian Basin, PRB Niobrara Shale, Barnett Shale and Fayetteville Shale. OurWebsite
http://www.crestwoodlp.com/home/default.aspxFinancial Data:
NYSE:CEQP from Google FinanceTickers:
-
CEQP - New York Stock Exchange
Related Entities
Recent news
- 11/3/2023 - Energy Transfer... (subscriber access)
- 9/26/2023 - Energy Transfer's... (subscriber access)
- 8/16/2023 - Energy Transfer... (subscriber access)
- 2/22/2023 - Crestwood & Brookfield... (subscriber access)
- 1/13/2023 - Crestwood Anticipates... (subscriber access)
Investor Presentations
- Crestwood EIC Investor Presentation May 2022
- UBS Conference - January 2017 (subscriber access)
Company Transactions
Date: 5/15/2023
Type: Acquisition
SELLERS:
Crestwood Equity Partners LP
TRES PALACIOS GAS STORAGE LLC
Brookfield Infrastructure Partners
ASSETS:
Tres Palacios Gas Storage
DETAILS:
COST: 335 $MM
NOTES:
Crestwood & Brookfield Infrastructure have signed an agreement to sell Tres Palacios Gas Storage for $335 million. Crestwood will receive $168 million for its 50% stake in the storage asset, and they intend to direct all proceeds to reduce borrowings on the revolving credit facility. Closing is targeted for 2Q23.
Crestwood & Brookfield Infrastructure have signed an agreement to sell Tres Palacios Gas Storage for $335 million. Crestwood will receive $168 million for its 50% stake in the storage asset, and they intend to direct all proceeds to reduce borrowings on the revolving credit facility. Closing is targeted for 2Q23.
Date: 11/15/2022
Type: Acquisition
NOTES:
Antero Midstream has agreed to proceed with a bolt-on acquisition from Crestwood Equity that would enhance their Marcellus Shale gas gathering and compression performance. The transaction increases their compression capacity by 20% and gathering pipeline mileage by 15%, while also granting them access to 425 undeveloped drilling locations and 120,000 dedicated acres, primarily in Harrison County, West Virginia.
Antero Midstream has agreed to proceed with a bolt-on acquisition from Crestwood Equity that would enhance their Marcellus Shale gas gathering and compression performance. The transaction increases their compression capacity by 20% and gathering pipeline mileage by 15%, while also granting them access to 425 undeveloped drilling locations and 120,000 dedicated acres, primarily in Harrison County, West Virginia.
REGIONS:
Appalachia
Date: 9/30/2022
Type: Acquisition
BUYERS:
Crestwood Equity Partners LP
SELLERS:
Sendero Midstream Partners, LP
DETAILS:
COST: 600 $MM
VOLUMES: -1
NOTES:
Crestwood Equity Partners has signed a deal to acquire Sendero Midstream Partners for $600 million in cash. The deal includes Eddy County, New Mexico, assets such as 350 Mmcf/d in processing capacity, 140 miles of gas gathering lines and 53,000 hp of field gathering compression.
Crestwood Equity Partners has signed a deal to acquire Sendero Midstream Partners for $600 million in cash. The deal includes Eddy County, New Mexico, assets such as 350 Mmcf/d in processing capacity, 140 miles of gas gathering lines and 53,000 hp of field gathering compression.
REGIONS:
Permian Basin
Date: 9/30/2022
Type: Acquisition
NOTES:
Crestwood Equity Partners has signed a deal to divest their non-core Barnett Shale assets to EnLink Midstream for $275 million in cash. The deal includes the Alliance System, the Lake Arlington System and the Cowtown System, and marks a full exit from the basin.
Crestwood Equity Partners has signed a deal to divest their non-core Barnett Shale assets to EnLink Midstream for $275 million in cash. The deal includes the Alliance System, the Lake Arlington System and the Cowtown System, and marks a full exit from the basin.
REGIONS:
Barnett Shale
Date: 9/30/2022
Type: Acquisition
NOTES:
Crestwood Equity Partners has signed a deal to acquire the remaining 50% equity interest in Crestwood Permian Basin Holdings LLC from First Reserve for $320 million. As part of the deal, First Reserve will fund $75 million into the JV to pay down asset-level debt and fund a portion of Crestwood's cash due to acquire Sendero Midstream. Concurrently, Crestwood will issue First Reserve 11.3MM common units, representing the full transaction value. This will equate to First Reserve owning 10% of Crestwood's common units. Crestwood will also assume $75 million in debt at the JV level.
Crestwood Equity Partners has signed a deal to acquire the remaining 50% equity interest in Crestwood Permian Basin Holdings LLC from First Reserve for $320 million. As part of the deal, First Reserve will fund $75 million into the JV to pay down asset-level debt and fund a portion of Crestwood's cash due to acquire Sendero Midstream. Concurrently, Crestwood will issue First Reserve 11.3MM common units, representing the full transaction value. This will equate to First Reserve owning 10% of Crestwood's common units. Crestwood will also assume $75 million in debt at the JV level.
REGIONS:
Permian Basin
Date: 3/31/2022
Type: Acquisition
NOTES:
Crestwood Equity Partners has entered into a merger agreement to acquire Oasis Midstream for $1.8 billion, including the assumption of debt. The deal will be primarily equity financing, with the issuance of 33.87 million new Crestwood common units and just $160 million in cash. They are also assuming $660 million in debt.
Crestwood Equity Partners has entered into a merger agreement to acquire Oasis Midstream for $1.8 billion, including the assumption of debt. The deal will be primarily equity financing, with the issuance of 33.87 million new Crestwood common units and just $160 million in cash. They are also assuming $660 million in debt.
REGIONS:
Delaware Basin
Williston Basin
Date: 7/12/2021
Type: Acquisition
BUYERS:
Kinder Morgan, Inc.
ASSETS:
Stagecoach Natural Gas Storage Facility
Steuben Gas Storage Company
Seneca Lake Gas Storage
Thomas Corners Gas Storage
Marc I Pipeline
DETAILS:
COST: 1.225 $B
VOLUMES: 41 Bcf
NOTES:
Kinder Morgan has signed a deal with Consolidated Edison and Crestwood Equity to acquire their joint-venture Stagecoach Gas Services for $1.225 billion. The deal includes four gas storage facilities with 41 Bcf in working gas capacity and 185-miles of gas pipelines.
Kinder Morgan has signed a deal with Consolidated Edison and Crestwood Equity to acquire their joint-venture Stagecoach Gas Services for $1.225 billion. The deal includes four gas storage facilities with 41 Bcf in working gas capacity and 185-miles of gas pipelines.
REGIONS:
Northeast
Date: 8/15/2018
Type: Acquisition
ASSETS:
Crestwood West Coast Fractionator
Crestwood West Coast Gathering & Processing System
Crestwood West Coast Rail & Truck Terminals
DETAILS:
NOTES:
The sale included a small gas gathering and processing system, fractionator, butamer and rail & truck terminal and storage facilities. The sold assets generated $7 million in earnings over the last 12-months.
The sale included a small gas gathering and processing system, fractionator, butamer and rail & truck terminal and storage facilities. The sold assets generated $7 million in earnings over the last 12-months.
REGIONS:
West
Date: 7/24/2018
Type: Acquisition
SELLERS:
EPIC Y Grade Pipeline, LP
DETAILS:
VOLUMES: 80 M Bbls/d
NOTES:
Crestwood Permian Basin Holdings has acquired an undivided stake in the first phase of the EPIC NGL Pipeline Project, which runs from the Orla Natural Gas Plant to Benedum, Texas. Crestwood controls 80 Mbbl/d in NGL transport capacity.
Crestwood Permian Basin Holdings has acquired an undivided stake in the first phase of the EPIC NGL Pipeline Project, which runs from the Orla Natural Gas Plant to Benedum, Texas. Crestwood controls 80 Mbbl/d in NGL transport capacity.
REGIONS:
Permian Basin
Date: 10/15/2017
Type: Acquisition
NOTES:
On August 1, Shell Midstream Partners exercised the option to purchase 50% equity interest in a Permian gas gathering system for approximately $47.0 million.
On August 1, Shell Midstream Partners exercised the option to purchase 50% equity interest in a Permian gas gathering system for approximately $47.0 million.
REGIONS:
Permian Basin
Date: 6/21/2017
Type: Joint Venture
NOTES:
Crestwood Equity Partners announced that it will be dropping down its Willow Lake Gathering assets in the Delaware Basin into a 50/50 joint-venture with First Reserve, Crestwood Permian Basin Holdings. The drop-down, valued at $151 million, will count towards Crestwood's share of capital spending on the joint venture.
Crestwood Equity Partners announced that it will be dropping down its Willow Lake Gathering assets in the Delaware Basin into a 50/50 joint-venture with First Reserve, Crestwood Permian Basin Holdings. The drop-down, valued at $151 million, will count towards Crestwood's share of capital spending on the joint venture.
REGIONS:
Delaware Basin
News & Press Releases
Criterion News
- 11/3/2023 - Energy Transfer... (subscriber access)
- 9/26/2023 - Energy Transfer's... (subscriber access)
- 8/16/2023 - Energy Transfer... (subscriber access)
- 2/22/2023 - Crestwood & Brookfield... (subscriber access)
- 1/13/2023 - Crestwood Anticipates... (subscriber access)
- 1/12/2023 - Crestwood Announces 4Q22... (subscriber access)
- 11/3/2022 - Crestwood Closed on... (subscriber access)
- 9/13/2022 - Antero Midstream Agrees... (subscriber access)
- 7/27/2022 - Crestwood Ends 2Q22 with... (subscriber access)
- 7/27/2022 - Crestwood Updates 2Q22... (subscriber access)
- 7/27/2022 - Crestwood Revises 2022... (subscriber access)
- 5/26/2022 - Crestwood Equity... (subscriber access)
- 5/26/2022 - Crestwood Equity... (subscriber access)
- 5/26/2022 - Crestwood Equity... (subscriber access)
- 4/27/2022 - Crestwood Expects to... (subscriber access)
- 4/20/2022 - Cheniere & Midstream... (subscriber access)
- 2/23/2022 - Crestwood Reports 4Q21... (subscriber access)
- 2/23/2022 - Crestwood Reports 4Q21... (subscriber access)
- 10/26/2021 - Crestwood Equity... (subscriber access)
- 7/28/2021 - Crestwood Issues 2Q21... (subscriber access)
- 7/28/2021 - Crestwood Issues 2Q21... (subscriber access)
- 7/28/2021 - Crestwood Issues 2Q21... (subscriber access)
- 7/12/2021 - Kinder Morgan Closes on... (subscriber access)
- 6/1/2021 - Kinder Morgan Acquiring... (subscriber access)
- 4/27/2021 - Crestwood's Delaware... (subscriber access)
- 4/27/2021 - Crestwood Prepared to... (subscriber access)
- 4/27/2021 - Crestwood 1Q21 Bakken... (subscriber access)
- 3/26/2021 - Crestwood Reaches Deal... (subscriber access)
- 3/26/2021 - Crestwood Gas Services... (subscriber access)
- 10/27/2020 - Crestwood 3Q20 Delaware... (subscriber access)
Press Releases
- Enhanced operating and capital efficiencies drive 2016 third quarter average production of 638,100 boe per day
- Oil production of 86,600 barrels per day lower sequentially after divestiture impacts of 8,200 barrels per day in the 2016 third quarter; 2016 fourth quarter oil production projected to be 90,000 to 95,000 barrels per day
- Decrease in production expenses of $0.25 per boe sequentially, resulting in lower full-year 2016 and 2017 production expense guidance
- Improved financial flexibility following refinancing of near and mid-term maturities through new offerings and subsequent tender offers
- Enhanced operating flexibility through Barnett Shale exit, Mid-Continent and Rockies gathering agreement restructuring and significant reductions of future midstream commitments
- Total liquidity following Barnett Shale closing of approximately $3.7 billion
- Over 60% and 50% of projected natural gas and oil production, respectively, hedged in 2017
- Exit rate production, driven by oil volumes, poised to grow significantly in 2017 and 2018
Cushing® Asset Management and Swank Capital Announce a Constituent Change to The Cushing® MLP High Income Index
Source: PR Newswire
DALLAS, June 8, 2020 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce an upcoming interim change to constituents of The Cushing® MLP High Income Index (the "Index"). On February 26, 2020, Index constituent EQM Midstream Partners, LP (NYSE: EQM) entered into an Agreement and Plan of Merger ("Merger Agreement") with Equitrans Midstream Corporation (NYSE: ETRN) and affiliated companies that would result in EQM common shares ceasing to be publicly traded, subject to the approval of the holders of EQM common units and ETRN common shares. Special meetings of EQM limited partners and ETRN shareholders will be held on June 15, 2020, for the purpose of voting on the Merger Agreement. Per the Index's methodology guide, this event will result in a constituent replacement. Accordingly, after the market closes on June 15, 2020, and effective on June 16, 2020, Crestwood Equity Partners LP (NYSE: CEQP) will replace EQM as a constituent of the Index at EQM's then-current weight.
There will be no changes to the remaining constituents of the Index due to this event.
ABOUT THE CUSHING® MLP HIGH INCOME INDEX
The Cushing® MLP High Income Index provides a benchmark that is designed to track the performance of 30 higher-yielding publicly traded midstream energy infrastructure companies, including master limited partnerships (MLPs) and non-MLP energy midstream corporations (each, a "Midstream Company" and collectively, "Midstream Companies"). Constituents are chosen according to a three-tiered proprietary weighting system developed by Cushing® Asset Management, LP. The Cushing® MLP High Income Index is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "MLPY".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts, providing active management in markets where inefficiencies exist.
Cushing is also dedicated to serving the needs of MLP and energy income investors by sponsoring a variety of industry benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX) and The Cushing® MLP Market Cap Index (Bloomberg Ticker: CMCI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Jon Abel
214-692-6334
www.cushingasset.com
The Cushing® MLP High Income Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing® Asset Management, LP, which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to maintain and calculate the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Swank Capital, LLC, and Cushing® Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones S&P nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-a-constituent-change-to-the-cushing-mlp-high-income-index-301071571.html
SOURCE Cushing® Asset Management, LP and Swank Capital, LLC
Article Date
6/8/2020Alerian Reports June 30, 2019 Index Linked Product Positions
Source: PR Newswire
DALLAS, Aug. 9, 2019 /PRNewswire/ -- Alerian reported, as of June 28, 2019, total products directly tied to and tracking the Alerian indices was $13.7 billion.
Exchange traded funds, exchange traded notes, return of capital notes, and variable insurance portfolios represent $12.7 billion of the total $13.7 billion. Below is a list of energy master limited partnership (MLP) positions, as of June 28, 2019, in the $12.7 billion of such assets tracking Alerian's indices.
Ticker | Exposure in Alerian Linked-Products ($) | Exposure in Alerian Linked-Products (Units) | Ticker | Exposure in Alerian Linked-Products ($) | Exposure in Alerian Linked-Products (Units) | |
AM | 2,402,831 | 209,671 | HESM | 7,694,422 | 394,586 | |
AMID | 4,919,211 | 951,492 | MMLP | 5,598,671 | 784,128 | |
ANDX | 403,075,523 | 11,094,840 | MMP | 1,276,581,260 | 19,946,582 | |
BPL | 782,332,474 | 19,058,038 | MPLX | 1,273,711,451 | 39,568,545 | |
BPMP | 18,205,543 | 1,176,069 | NBLX | 89,522,800 | 2,691,606 | |
CEQP | 220,495,699 | 6,164,263 | NGL | 214,053,630 | 14,492,460 | |
CNXM | 14,513,491 | 1,032,989 | NS | 331,580,260 | 12,217,401 | |
CQP | 214,074,794 | 5,075,268 | OMP | 5,663,726 | 263,429 | |
DCP | 329,731,673 | 11,253,641 | PAA | 1,305,749,277 | 53,624,200 | |
DKL | 6,791,101 | 212,222 | PAGP | 7,638,294 | 305,899 | |
ENBL | 153,164,680 | 11,171,749 | PBFX | 16,284,545 | 770,319 | |
ENLC | 327,210,823 | 32,429,219 | PSXP | 342,743,828 | 6,945,164 | |
EPD | 1,277,755,891 | 44,258,950 | SHLX | 319,209,192 | 15,405,849 | |
EQM | 462,044,829 | 10,341,200 | SMLP | 7,589,588 | 1,020,106 | |
ET | 1,262,122,882 | 89,639,409 | TCP | 253,540,259 | 6,739,507 | |
GEL | 298,090,775 | 13,611,451 | TGE | 419,509,147 | 19,872,532 | |
GPP | 3,882,098 | 277,293 | USDP | 3,861,679 | 342,044 | |
HEP | 156,422,759 | 5,688,100 | WES | 773,416,245 | 25,135,400 |
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of June 28, 2019, nearly $14 billion of products, including exchange traded funds and notes, are directly tied to and tracking the Alerian Index Series. Visit alerian.com to learn more.
View original content:http://www.prnewswire.com/news-releases/alerian-reports-june-30-2019-index-linked-product-positions-300899499.html
SOURCE Alerian
Article Date
8/9/20192/21/2019 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Utility Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Utility Index
Source: PR Newswire
DALLAS, Feb. 21, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Utility Index (the "Index") as part of normal index operations. After the markets close on February 28, 2019, the constituents of the Index will be rebalanced, and the following changes will become effective on March 1, 2019:
Constituents added:
Genesis Energy, L.P. (NYSE: GEL)
EnLink Midstream, LLC (NYSE: ENLC)
Tallgrass Energy, LP (NYSE: TGE)
Sunoco LP (NYSE: SUN)
Atmos Energy Corporation (NYSE: ATO)
Constituents removed:
Alliance Resource Partners, L.P. (NASDAQ: ARLP)
Andeavor Logistics LP (NYSE: ANDX)
Crestwood Equity Partners LP (NYSE: CEQP)
MPLX LP (NYSE: MPLX)
ABOUT THE CUSHING® UTILITY INDEX
The Cushing® Utility Index tracks the performance of widely held companies engaged in electric, gas and water utility services as well as master limited partnerships (MLPs) engaged in storage and transportation of oil, natural gas, coal and consumable fuels. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CUTI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of midstream energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI) and The Cushing® Transportation Index (Bloomberg Ticker: CTRI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® Utility Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CUTI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-utility-index-300799539.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
2/21/20192/21/2019 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Index
Source: PR Newswire
DALLAS, Feb. 21, 2019 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Energy Index (the "Index") as part of normal index operations. After the markets close on February 28, 2019, the constituents of the Index will be rebalanced, and the following changes will become effective on March 1, 2019:
Constituents added:
Genesis Energy, L.P. (NYSE: GEL)
EnLink Midstream, LLC (NYSE: ENLC)
Tallgrass Energy, LP (NYSE: TGE)
Sunoco LP (NYSE: SUN)
Constituents removed:
Alliance Resource Partners, L.P. (NASDAQ: ARLP)
Andeavor Logistics LP (NYSE: ANDX)
Crestwood Equity Partners LP (NYSE: CEQP)
MPLX LP (NYSE: MPLX)
ABOUT THE CUSHING® ENERGY INDEX
The Cushing® Energy Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, and storage and transportation of oil, natural gas, coal and consumable fuels, as well as oil and natural gas equipment and services companies. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CENI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of midstream energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Brian Atwood
214-692-6334
www.cushingasset.com
The Cushing® Energy Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CENI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-energy-index-300799547.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
2/21/201912/21/2018 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Index
Source: PR Newswire
DALLAS, Dec. 21, 2018 /PRNewswire/ -- Cushing® Asset Management, LP, and Swank Capital, LLC, announce today the upcoming rebalancing of The Cushing® Energy Index (the "Index") as part of normal index operations. After the markets close on December 31, 2018, the constituents of the Index will be rebalanced, and the following changes will become effective on January 2, 2019:
Constituents added:
CNX Midstream Partners LP (NYSE: CNXM)
Crestwood Equity Partners LP (NYSE: CEQP)
Shell Midstream Partners, L.P. (NYSE: SHLX)
Cimarex Energy Co. (NYSE: XEC)
Constituents removed:
AmeriGas Partners, L.P. (NYSE: APU)
Dominion Energy Midstream Partners, LP (NYSE: DM)
EnLink Midstream Partners, LP (NYSE: ENLK)
ABOUT THE CUSHING® ENERGY INDEX
The Cushing® Energy Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, and storage and transportation of oil, natural gas, coal and consumable fuels, as well as oil and natural gas equipment and services companies. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CENI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of midstream energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
Source: Cushing® Asset Management, LP, and Swank Capital, LLC
The Cushing® Energy Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-energy-index-300770032.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
12/21/201812/21/2018 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Supply Chain Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Energy Supply Chain Index
Source: PR Newswire
DALLAS, Dec. 21, 2018 /PRNewswire/ -- Swank Capital, LLC, and Cushing® Asset Management, LP, announce today the upcoming rebalancing of The Cushing® Energy Supply Chain Index (the "Index") as part of normal index operations. After the markets close on December 31, 2018, the constituents of the Index will be rebalanced, and the following changes will become effective on January 2, 2019:
Constituents added:
CNX Midstream Partners LP (NYSE: CNXM)
Crestwood Equity Partners LP (NYSE: CEQP)
Shell Midstream Partners, L.P. (NYSE: SHLX)
FMC Corporation (NYSE: FMC)
Noble Energy, Inc. (NYSE: NBL)
Hess Corporation (NYSE: HES)
Constituents removed:
AmeriGas Partners, L.P. (NYSE: APU)
Dominion Energy Midstream Partners, LP (NYSE: DM)
EnLink Midstream Partners, LP (NYSE: ENLK)
ConocoPhillips (NYSE: COP)
Ecolab Inc. (NYSE: ECL)
ABOUT THE CUSHING® ENERGY SUPPLY CHAIN INDEX
The Cushing® Energy Supply Chain Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, or storage and transportation of oil, natural gas, coal and consumable fuels; oil and natural gas equipment and services companies; and companies that extract and/or manufacture materials. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CSCI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of midstream energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® Energy Supply Chain Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CSCI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-energy-supply-chain-index-300770030.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
12/21/201812/21/2018 - Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Utility Index
Cushing® Asset Management and Swank Capital Announce Rebalancing of The Cushing® Utility Index
Source: PR Newswire
DALLAS, Dec. 21, 2018 /PRNewswire/ -- Swank Capital, LLC, and Cushing® Asset Management, LP, announce today the upcoming rebalancing of The Cushing® Utility Index (the "Index") as part of normal index operations. After the markets close on December 31, 2018, the constituents of the Index will be rebalanced, and the following changes will become effective on January 2, 2019:
Constituents added:
CNX Midstream Partners LP (NYSE: CNXM)
Crestwood Equity Partners LP (NYSE: CEQP)
Shell Midstream Partners, L.P. (NYSE: SHLX)
Constituents removed:
AmeriGas Partners, L.P. (NYSE: APU)
Dominion Energy Midstream Partners, LP (NYSE: DM)
EnLink Midstream Partners, LP (NYSE: ENLK)
SCANA Corporation (NYSE: SCG)
ABOUT THE CUSHING® UTILITY INDEX
The Cushing® Utility Index tracks the performance of widely held companies engaged in electric, gas and water utility services as well as master limited partnerships (MLPs) engaged in storage and transportation of oil, natural gas, coal and consumable fuels. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CUTI".
ABOUT CUSHING® ASSET MANAGEMENT AND SWANK CAPITAL
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of midstream energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI) and The Cushing® Transportation Index (Bloomberg Ticker: CTRI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® Utility Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CUTI
View original content:http://www.prnewswire.com/news-releases/cushing-asset-management-and-swank-capital-announce-rebalancing-of-the-cushing-utility-index-300770022.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
12/21/20189/21/2018 - Swank Capital and Cushing® Asset Management Announce Rebalancing of The Cushing® Energy Index
Swank Capital and Cushing® Asset Management Announce Rebalancing of The Cushing® Energy Index
Source: PR Newswire
DALLAS, Sept. 21, 2018 /PRNewswire/ -- Swank Capital, LLC, and Cushing® Asset Management, LP, announce today the upcoming rebalancing of The Cushing® Energy Index (the "Index") as part of normal index operations. After the markets close on September 28, 2018, the constituents of the Index will be rebalanced, and the following changes will become effective on October 1, 2018:
Cushing® Energy Index constituents, effective October 1, 2018: | |||
Company Name | Ticker | Index Weight | Status |
The Williams Companies, Inc. | WMB | 6.00% | Existing |
ONEOK, Inc. | OKE | 5.97% | Existing |
Kinder Morgan, Inc. | KMI | 5.51% | Existing |
Helmerich & Payne, Inc. | HP | 5.41% | Existing |
Occidental Petroleum Corporation | OXY | 4.94% | Existing |
Exxon Mobil Corporation | XOM | 4.87% | Existing |
Chevron Corporation | CVX | 4.71% | Existing |
Schlumberger N.V. (Schlumberger Limited) | SLB | 4.11% | Existing |
Phillips 66 | PSX | 3.68% | Existing |
Valero Energy Corporation | VLO | 3.67% | Existing |
Marathon Petroleum Corporation | MPC | 2.87% | Existing |
Baker Hughes, A GE Company | BHGE | 2.75% | Existing |
Apache Corporation | APA | 2.68% | Existing |
HollyFrontier Corporation | HFC | 2.53% | Existing |
Halliburton Company | HAL | 2.26% | Existing |
TechnicFMC plc | FTI | 2.11% | Existing |
Energy Transfer Partners, L.P. | ETP | 2.00% | Existing |
AmeriGas Partners, L.P. | APU | 2.00% | NEW |
EnLink Midstream Partners, LP | ENLK | 2.00% | Existing |
Western Gas Partners, L.P. | WES | 2.00% | Existing |
Andeavor Logistics LP | ANDX | 2.00% | Existing |
DCP Midstream, LP | DCP | 2.00% | Existing |
Dominion Energy Midstream Partners, LP | DM | 2.00% | Existing |
Enable Midstream Partners, LP | ENBL | 2.00% | Existing |
EQT Midstream Partners, LP | EQM | 2.00% | Existing |
MPLX LP | MPLX | 2.00% | Existing |
Energy Transfer Equity, L.P. | ETE | 2.00% | Existing |
Alliance Resource Partners, L.P. | ARLP | 2.00% | Existing |
Andeavor | ANDV | 1.97% | Existing |
Anadarko Petroleum Corporation | APC | 1.94% | Existing |
ConocoPhillips | COP | 1.90% | Existing |
Hess Corporation | HES | 1.81% | Existing |
Noble Energy, Inc. | NBL | 1.80% | Existing |
Cabot Oil & Gas Corporation | COG | 1.35% | Existing |
Marathon Oil Corporation | MRO | 1.16% | Existing |
Constituents removed, effective October 1, 2018: | |
Company Name | Ticker |
Crestwood Equity Partners LP | CEQP |
ABOUT THE CUSHING® ENERGY INDEX
The Cushing® Energy Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, and storage and transportation of oil, natural gas, coal and consumable fuels, as well as oil and natural gas equipment and services companies. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CENI."
ABOUT SWANK CAPITAL AND CUSHING® ASSET MANAGEMENT
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of midstream energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® Energy Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CENI
View original content:http://www.prnewswire.com/news-releases/swank-capital-and-cushing-asset-management-announce-rebalancing-of-the-cushing-energy-index-300716629.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
9/21/20189/21/2018 - Swank Capital and Cushing® Asset Management Announce Rebalancing of The Cushing® Energy Supply Chain Index
Swank Capital and Cushing® Asset Management Announce Rebalancing of The Cushing® Energy Supply Chain Index
Source: PR Newswire
DALLAS, Sept. 21, 2018 /PRNewswire/ -- Swank Capital, LLC, and Cushing® Asset Management, LP, announce today the upcoming rebalancing of The Cushing® Energy Supply Chain Index (the "Index") as part of normal index operations. After the markets close on September 28, 2018, the constituents of the Index will be rebalanced, and the following changes will become effective on October 1, 2018:
Cushing® Energy Supply Chain Index constituents, effective October 1, 2018: | |||
Company Name | Ticker | Index Weight | Status |
LyondellBasell Industries N.V. | LYB | 3.75% | Existing |
International Paper Company | IP | 3.37% | Existing |
The Williams Companies, Inc. | WMB | 3.29% | Existing |
ONEOK, Inc. | OKE | 3.24% | Existing |
Kinder Morgan, Inc. | KMI | 2.99% | Existing |
Helmerich & Payne, Inc. | HP | 2.94% | Existing |
WestRock Company | WRK | 2.92% | Existing |
Occidental Petroleum Corporation | OXY | 2.68% | Existing |
Exxon Mobil Corporation | XOM | 2.65% | Existing |
Packaging Corporation of America | PKG | 2.58% | Existing |
Chevron Corporation | CVX | 2.56% | Existing |
Air Products and Chemicals, Inc. | APD | 2.50% | Existing |
Nucor Corporation | NUE | 2.26% | Existing |
Schlumberger N.V. (Schlumberger Limited) | SLB | 2.23% | Existing |
Eastman Chemical Company | EMN | 2.19% | Existing |
CF Industries Holdings, Inc. | CF | 2.17% | Existing |
DowDuPont Inc. | DWDP | 2.13% | Existing |
International Flavors & Fragrances Inc. | IFF | 2.04% | Existing |
Energy Transfer Partners, L.P. | ETP | 2.00% | Existing |
AmeriGas Partners, L.P. | APU | 2.00% | NEW |
EnLink Midstream Partners, LP | ENLK | 2.00% | Existing |
Western Gas Partners, L.P. | WES | 2.00% | Existing |
Andeavor Logistics LP | ANDX | 2.00% | Existing |
DCP Midstream, LP | DCP | 2.00% | Existing |
Dominion Energy Midstream Partners, LP | DM | 2.00% | Existing |
Enable Midstream Partners, LP | ENBL | 2.00% | Existing |
EQT Midstream Partners, LP | EQM | 2.00% | Existing |
MPLX LP | MPLX | 2.00% | Existing |
Energy Transfer Equity, L.P. | ETE | 2.00% | Existing |
Phillips 66 | PSX | 2.00% | Existing |
Alliance Resource Partners, L.P. | ARLP | 2.00% | Existing |
Valero Energy Corporation | VLO | 1.99% | Existing |
Praxair, Inc. | PX | 1.93% | Existing |
Avery Dennison Corporation | AVY | 1.79% | Existing |
Newmont Mining Corporation | NEM | 1.71% | Existing |
PPG Industries, Inc. | PPG | 1.61% | Existing |
Marathon Petroleum Corporation | MPC | 1.56% | Existing |
Baker Hughes, A GE Company | BHGE | 1.50% | Existing |
Sealed Air Corporation | SEE | 1.48% | Existing |
Apache Corporation | APA | 1.46% | Existing |
HollyFrontier Corporation | HFC | 1.38% | Existing |
Freeport-McMoRan Inc. | FCX | 1.35% | Existing |
Halliburton Company | HAL | 1.23% | Existing |
Albemarle Corporation | ALB | 1.22% | Existing |
TechnicFMC plc | FTI | 1.15% | Existing |
Andeavor | ANDV | 1.07% | Existing |
Anadarko Petroleum Corporation | APC | 1.05% | NEW |
ConocoPhillips | COP | 1.03% | Existing |
Ecolab Inc. | ECL | 1.00% | Existing |
Constituents removed, effective October 1, 2018: | |
Company Name | Ticker |
Ball Corporation | BLL |
Crestwood Equity Partners LP | CEQP |
Hess Corporation | HES |
ABOUT THE CUSHING® ENERGY SUPPLY CHAIN INDEX
The Cushing® Energy Supply Chain Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, or storage and transportation of oil, natural gas, coal and consumable fuels; oil and natural gas equipment and services companies; and companies that extract and/or manufacture materials. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CSCI".
ABOUT SWANK CAPITAL AND CUSHING® ASSET MANAGEMENT
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of midstream energy infrastructure companies and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Index (Bloomberg Ticker: CENI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® Energy Supply Chain Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CSCI
View original content:http://www.prnewswire.com/news-releases/swank-capital-and-cushing-asset-management-announce-rebalancing-of-the-cushing-energy-supply-chain-index-300716597.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
9/21/2018Alerian Reports June 30, 2018 Index Linked Product Positions
Source: PR Newswire
DALLAS, Aug. 1, 2018 /PRNewswire/ -- Alerian reported index linked product positions of $15.0 billion as of June 30, 2018. Linked products include exchange-traded funds, exchange-traded notes, return of capital notes, variable insurance portfolios, and mutual funds.
Below is a full list of energy master limited partnership (MLP) positions, as of June 30, 2018, in products linked to the Alerian Index Series.
|
Ticker |
Exposure in |
Exposure in |
Ticker |
Exposure in |
Exposure in | |
|
AM |
305,257,484 |
10,340,701 |
HEP |
151,911,915 |
5,375,510 | |
|
AMGP |
1,164,270 |
61,732 |
MMP |
1,501,453,809 |
21,735,000 | |
|
ANDX |
446,822,576 |
10,506,056 |
MPLX |
1,162,174,520 |
34,041,433 | |
|
APU |
58,778,057 |
1,392,185 |
NBLX |
22,166,701 |
434,130 | |
|
ARLP |
25,591,033 |
1,394,607 |
NGL |
165,162,738 |
13,213,019 | |
|
BPL |
604,497,037 |
17,197,640 |
NS |
210,933,016 |
9,312,716 | |
|
BPMP |
20,189,424 |
961,859 |
NSH |
239,822 |
19,340 | |
|
BWP |
170,678,160 |
14,688,310 |
PAA |
1,177,071,579 |
49,791,522 | |
|
CEQP |
183,499,246 |
5,779,504 |
PAGP |
3,213,393 |
134,395 | |
|
CQP |
173,601,824 |
4,828,980 |
PSXP |
318,554,875 |
6,238,834 | |
|
CVRR |
20,028,626 |
896,135 |
RMP |
147,346,450 |
8,657,253 | |
|
DCP |
421,401,442 |
10,654,904 |
SEP |
341,382,494 |
9,638,128 | |
|
DM |
13,475,016 |
990,810 |
SHLX |
322,823,077 |
14,554,692 | |
|
EEP |
277,227,481 |
25,363,905 |
SMLP |
12,744,536 |
827,567 | |
|
ENBL |
176,973,526 |
10,343,280 |
SPH |
28,830,596 |
1,227,356 | |
|
ENLC |
853,859 |
51,906 |
SUN |
27,065,571 |
1,084,358 | |
|
ENLK |
303,905,691 |
19,568,943 |
TCP |
165,868,659 |
6,391,856 | |
|
EPD |
1,503,782,388 |
54,347,032 |
TEGP |
386,005,955 |
17,419,041 | |
|
EQGP |
355,540 |
15,123 |
TGP |
18,444,324 |
1,094,619 | |
|
EQM |
356,373,011 |
6,907,792 |
USAC |
16,751,289 |
995,323 | |
|
ETE |
6,023,303 |
349,177 |
VLP |
17,131,051 |
449,988 | |
|
ETP |
1,481,856,983 |
77,828,623 |
VNOM |
25,953,041 |
813,320 | |
|
GEL |
281,851,288 |
12,864,048 |
WES |
571,788,034 |
11,816,244 | |
|
GLOP |
14,609,467 |
612,556 |
WGP |
826,761 |
23,126 | |
|
GMLP |
15,169,006 |
981,178 |
WPZ |
1,218,967,796 |
30,031,234 | |
|
HCLP |
18,789,000 |
1,592,288 |
||||
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of June 30, 2018, over $15 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/alerian-reports-june-30-2018-index-linked-product-positions-300690263.html
SOURCE Alerian
Article Date
8/1/20186/8/2018 - Swank Capital and Cushing® Asset Management Announce Rebalancing of The Cushing® Energy Index
Swank Capital and Cushing® Asset Management Announce Rebalancing of The Cushing® Energy Index
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, June 8, 2018 /PRNewswire/ -- Swank Capital, LLC and Cushing® Asset Management, LP, announce today an upcoming interim rebalancing of The Cushing® Energy Index (the "Index"). Per the Index's methodology guide, the removal of an Index constituent from a Sub-Index without a named direct replacement necessitates the rebalancing of the Index. The Cushing® 30 MLP Index (the "Sub-Index") announced today that Index constituents Spectra Energy Partners, LP (NYSE: SEP) and Tallgrass Energy GP, LP (NYSE: TEGP) will be removed from the Sub-Index after the markets close on June 15, 2018, and effective on June 18, 2018. Replacements named for the removed constituents are not direct replacements. After the markets close on June 15, 2018, the constituents of the Index will be rebalanced, and the changes in the table below will become effective on June 18, 2018.
Cushing® Energy Index constituents, effective June 18, 2018:
|
Company Name |
Ticker |
Index Weight |
Status |
|
The Williams Companies, Inc. |
WMB |
6.00% |
Existing |
|
Kinder Morgan, Inc. |
KMI |
6.00% |
Existing |
|
ONEOK, Inc. |
OKE |
6.00% |
Existing |
|
Helmerich & Payne, Inc. |
HP |
5.78% |
Existing |
|
Exxon Mobil Corporation |
XOM |
5.22% |
Existing |
|
Chevron Corporation |
CVX |
4.74% |
Existing |
|
Occidental Petroleum Corporation |
OXY |
4.65% |
Existing |
|
Schlumberger N.V. (Schlumberger Limited) |
SLB |
3.79% |
Existing |
|
Phillips 66 |
PSX |
3.58% |
Existing |
|
Valero Energy Corporation |
VLO |
3.45% |
Existing |
|
Apache Corporation |
APA |
3.30% |
Existing |
|
Marathon Petroleum Corporation |
MPC |
3.05% |
Existing |
|
Baker Hughes, A GE Company |
BHGE |
2.72% |
Existing |
|
ConocoPhillips |
COP |
2.19% |
Existing |
|
Andeavor |
ANDV |
2.14% |
Existing |
|
TechnicFMC plc |
FTI |
2.13% |
Existing |
|
Hess Corporation |
HES |
2.12% |
Existing |
|
Dominion Energy Midstream Partners, LP |
DM |
2.00% |
NEW |
|
Alliance Resource Partners, L.P. |
ARLP |
2.00% |
Existing |
|
Andeavor Logistics LP |
ANDX |
2.00% |
Existing |
|
Tallgrass Energy Partners, LP |
TEP |
2.00% |
Existing |
|
EnLink Midstream Partners, LP |
ENLK |
2.00% |
Existing |
|
DCP Midstream, LP |
DCP |
2.00% |
Existing |
|
Enable Midstream Partners, LP |
ENBL |
2.00% |
NEW |
|
EQT Midstream Partners, LP |
EQM |
2.00% |
NEW |
|
Western Gas Partners, L.P. |
WES |
2.00% |
Existing |
|
Crestwood Equity Partners LP |
CEQP |
2.00% |
NEW |
|
Energy Transfer Equity, L.P. |
ETE |
2.00% |
Existing |
|
Energy Transfer Partners, L.P. |
ETP |
2.00% |
NEW |
|
Halliburton Company |
HAL |
1.95% |
Existing |
|
Anadarko Petroleum Corporation |
APC |
1.88% |
Existing |
|
Noble Energy, Inc. |
NBL |
1.67% |
Existing |
|
Cabot Oil & Gas Corporation |
COG |
1.37% |
Existing |
|
Marathon Oil Corporation |
MRO |
1.26% |
Existing |
|
Devon Energy Corporation |
DVN |
1.01% |
Existing |
Constituents removed, effective June 18, 2018:
|
Company Name |
Ticker |
|
MPLX LP |
MPLX |
|
Spectra Energy Partners, LP |
SEP |
|
Sunoco LP |
SUN |
|
Tallgrass Energy GP, LP |
TEGP |
|
Williams Partners L.P. |
WPZ |
ABOUT THE CUSHING® ENERGY INDEX
The Cushing® Energy Index tracks the performance of widely held companies engaged in exploration and production, refining and marketing, and storage and transportation of oil, natural gas, coal and consumable fuels, as well as oil and natural gas equipment and services companies. Constituents of the Index are weighted based on current yield. The Index price level is calculated by S&P Dow Jones Indices and reported on a real-time basis under the Bloomberg ticker "CENI".
ABOUT SWANK CAPITAL AND CUSHING® ASSET MANAGEMENT
Cushing® Asset Management, LP ("Cushing"), a subsidiary of Swank Capital, LLC, is an SEC-registered investment adviser headquartered in Dallas, Texas. Cushing serves as investment adviser to affiliated funds and managed accounts which invest primarily in securities of MLPs and other natural resource companies.
Cushing is also dedicated to serving the needs of investors by sponsoring a variety of benchmarks, including The Cushing® 30 MLP Index (Bloomberg Ticker: MLPX), The Cushing® 30 MLP Market Cap Index (Bloomberg Ticker: CMCI), The Cushing® MLP High Income Index (Bloomberg Ticker: MLPY), The Cushing® Energy Supply Chain Index (Bloomberg Ticker: CSCI), The Cushing® Transportation Index (Bloomberg Ticker: CTRI) and The Cushing® Utility Index (Bloomberg Ticker: CUTI). For more information, please visit http://www.cushingasset.com/indices.
Contact:
Judson Redmond
214-692-6334
www.cushingasset.com
The Cushing® Energy Index (the "Index") is the exclusive property of Swank Capital, LLC, and Cushing Asset Management, LP, which have contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) ("S&P Dow Jones Indices") to calculate and maintain the Index. S&P® is a registered trademark of Standard & Poor's Financial Services LLC ("SPFS"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and, these trademarks have been licensed to S&P Dow Jones Indices. "Calculated by S&P Dow Jones Indices" and its related stylized mark(s) have been licensed for use by Swank Capital, LLC, and Cushing Asset Management, LP. Neither S&P Dow Jones Indices, SPFS, Dow Jones nor any of their affiliates sponsor and promote the Index and none shall be liable for any errors or omissions in calculating the Index.
CUSH-CENI
View original content:http://www.prnewswire.com/news-releases/swank-capital-and-cushing-asset-management-announce-rebalancing-of-the-cushing-energy-index-300662241.html
SOURCE Cushing Asset Management, LP; Swank Capital, LLC
Article Date
6/8/2018Alerian Reports December 31, 2017 Index Linked Product Positions
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
DALLAS, Feb. 21, 2018 /PRNewswire/ -- Alerian reported index linked product positions of $16.3 billion as of December 31, 2017. Linked products include exchange-traded funds, exchange-traded notes, return of capital notes, variable insurance portfolios, and mutual funds.
Below is a full list of energy master limited partnership (MLP) positions, as of December 31, 2017, in products linked to the Alerian Index Series.
|
Ticker |
Exposure in |
Exposure in |
Ticker |
Exposure in |
Exposure in | |
|
AM |
318,072,149 |
10,952,898 |
MMP |
1,644,568,414 |
23,182,526 | |
|
AMGP |
754,587 |
38,265 |
MPLX |
1,279,929,181 |
36,084,837 | |
|
ANDX |
516,099,522 |
11,173,404 |
NBLX |
21,404,873 |
428,097 | |
|
APU |
76,556,528 |
1,655,992 |
NGL |
195,952,022 |
13,946,763 | |
|
ARLP |
20,166,275 |
1,023,669 |
NS |
296,565,295 |
9,902,013 | |
|
BPL |
908,164,717 |
18,328,249 |
NSH |
236,356 |
15,055 | |
|
BWP |
201,509,203 |
15,608,769 |
PAA |
1,085,692,515 |
52,601,382 | |
|
CEQP |
30,317,020 |
1,175,078 |
PAGP |
3,567,709 |
162,538 | |
|
CQP |
30,774,953 |
1,038,291 |
PSXP |
303,822,210 |
5,803,672 | |
|
DCP |
411,714,791 |
11,332,639 |
RMP |
197,598,050 |
9,203,449 | |
|
DM |
186,044,367 |
6,109,831 |
SEP |
397,826,315 |
10,061,364 | |
|
EEP |
372,358,764 |
26,962,981 |
SHLX |
369,468,507 |
12,389,957 | |
|
ENBL |
30,305,242 |
2,131,170 |
SMLP |
20,113,987 |
981,170 | |
|
ENLC |
1,134,945 |
64,485 |
SPH |
35,347,307 |
1,459,426 | |
|
ENLK |
317,615,016 |
20,664,607 |
SUN |
36,559,156 |
1,287,294 | |
|
EPD |
1,672,410,145 |
63,086,011 |
TCP |
350,896,258 |
6,608,216 | |
|
EQGP |
315,059 |
11,712 |
TEGP |
1,533,669 |
59,583 | |
|
EQM |
536,502,790 |
7,339,299 |
TEP |
269,478,027 |
5,877,383 | |
|
ETE |
6,574,648 |
380,918 |
TGP |
26,220,374 |
1,301,259 | |
|
ETP |
1,669,396,449 |
93,158,284 |
VLP |
23,823,578 |
535,361 | |
|
GEL |
300,264,393 |
13,434,648 |
VNOM |
20,179,418 |
864,956 | |
|
GLOP |
17,814,465 |
719,776 |
WES |
604,184,334 |
12,563,617 | |
|
GMLP |
26,442,305 |
1,159,750 |
WGP |
664,201 |
17,874 | |
|
HEP |
168,157,229 |
5,175,661 |
WPZ |
1,231,920,496 |
31,766,903 |
About Alerian
Alerian equips investors to make informed decisions about Master Limited Partnerships (MLPs) and energy infrastructure. Its benchmarks, including the flagship Alerian MLP Index (AMZ), are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of December 31, 2017, over $16 billion was directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. For more information, including index values and constituents, research content, and announcements regarding rebalancings, please visit alerian.com.
View original content:http://www.prnewswire.com/news-releases/alerian-reports-december-31-2017-index-linked-product-positions-300602316.html
SOURCE Alerian
Article Date
2/21/201811/3/2016 - Chesapeake Energy Corporation Reports 2016 Third Quarter Financial And Operational Results
Chesapeake Energy Corporation Reports 2016 Third Quarter Financial And Operational Results
Source: PR Newswire
OKLAHOMA CITY, Nov. 3, 2016 /PRNewswire/ -- Chesapeake Energy Corporation (NYSE: CHK) today reported financial and operational results for the 2016 third quarter plus other recent developments. Highlights include:
Doug Lawler, Chesapeake's Chief Executive Officer, commented, "We continue to make progress in reducing leverage, decreasing total cash costs and improving future midstream expenses. Our achievements in these areas, particularly in regard to our balance sheet, provide a stronger foundation for improving profitability and enhanced returns from our capital program in 2017 and beyond. As we have previously stated, our large resource base and significant inventory of high-return drilling opportunities offer long-term growth and flexibility for our shareholders."
2016 Third Quarter Results
For the 2016 third quarter, Chesapeake's revenues declined by 33% year over year due to a decrease in the average realized commodity prices received for its production, lower production volumes and a decrease in the volumes sold and prices received by the company's marketing affiliate on behalf of third-party producers. Average daily production for the 2016 third quarter of approximately 638,100 barrels of oil equivalent (boe) consisted of approximately 86,600 barrels (bbls) of oil, 2.914 billion cubic feet (bcf) of natural gas and 65,700 bbls of natural gas liquids (NGL).
Chesapeake's operating expenses continue to decline. Average production expenses during the 2016 third quarter were $2.80 per boe, while G&A expenses (including stock-based compensation) during the 2016 third quarter were $1.08 per boe. Combined production and G&A expenses (including stock-based compensation) during the 2016 third quarter were $3.88 per boe, a decrease of 20% year over year and 5% from the 2016 second quarter. A summary of the company's production and operating cost guidance for 2016 and 2017 is provided in the Outlook dated November 3, 2016, beginning on Page 20.
Chesapeake reported a net loss available to common stockholders of $1.197 billion, or $1.54 per share, while the company's ebitda for the 2016 third quarter was a loss of $801 million. The primary drivers of the net loss were Barnett Shale exit costs of approximately $616 million and a noncash impairment of the carrying value of Chesapeake's oil and natural gas properties of approximately $433 million, largely resulting from decreases in the trailing 12-month average first-day-of-the-month oil and natural gas prices as of September 30, 2016, as compared to June 30, 2016. Adjusting for these and other items that are typically excluded by securities analysts, the 2016 third quarter adjusted net income available to common stockholders was $27 million, or $0.09 per common share, while the company's adjusted ebitda was $421 million in the 2016 third quarter. These adjusted results include a recorded gain of $146 million of proceeds related to the sale of a long-term natural gas supply contract which was sold in the 2016 third quarter and reflected in the company's marketing, gathering and compression revenues. Reconciliations of financial measures calculated in accordance with generally accepted accounting principles (GAAP) to non-GAAP measures are provided on pages 12 – 18 of this release.
Capital Spending Overview
Chesapeake's total capital investments were approximately $412 million during the 2016 third quarter, compared to approximately $623 million in the 2015 third quarter, as summarized in the table below. A summary of the company's capital expenditure guidance for 2016 and 2017 is provided in the Outlook dated November 3, 2016, beginning on Page 20.
|
2016 |
2016 |
2015 | |||||||
|
Operated activity comparison |
Q3 |
Q2 |
Q3 | ||||||
|
Average rig count |
11 |
9 |
18 | ||||||
|
Gross wells completed |
80 |
131 |
84 | ||||||
|
Gross wells spud |
63 |
49 |
81 | ||||||
|
Gross wells connected |
105 |
141 |
112 | ||||||
|
Type of cost ($ in millions) |
|||||||||
|
Drilling and completion costs |
$ |
332 |
$ |
337 |
$ |
467 |
|||
|
Exploration costs, leasehold and additions to other PP&E |
21 |
56 |
57 |
||||||
|
Subtotal capital expenditures |
$ |
353 |
$ |
393 |
$ |
524 |
|||
|
Capitalized interest |
59 |
63 |
99 |
||||||
|
Total guided capital expenditures |
$ |
412 |
$ |
456 |
$ |
623 |
|||
Balance Sheet and Liquidity
As of September 30, 2016, Chesapeake's debt principal balance was approximately $8.7 billion, including approximately $240 million of borrowings outstanding on the company's revolving credit facility, compared to $9.7 billion as of December 31, 2015, and $11.7 billion as of September 30, 2015.
During the 2016 third quarter, the company entered into a $1.5 billion secured five-year term loan facility. Chesapeake used the net proceeds from this term loan to purchase and retire $898 million principal amount of its senior notes and $708 million principal amount of its contingent convertible senior notes for $1.5 billion pursuant to tender offers.
In October 2016, Chesapeake issued in a private placement $1.25 billion principal amount of unsecured 5.5% Convertible Senior Notes due 2026. The company intends to use the net proceeds for general corporate purposes, which may include debt repurchases and the repayment of borrowings under its credit facility and senior notes with near-term maturities as they become due. Additionally, the company completed private exchanges in aggregate of approximately 110.3 million shares of its common stock for 134,000 shares of 5.00% Cumulative Convertible Preferred Stock (Series 2005B), 606,271 shares of 5.75% Cumulative Convertible Preferred Stock and 553,007 shares of 5.75% Cumulative Convertible Preferred Stock (Series A). This amount of preferred stock represents approximately $1.2 billion of liquidation value, which was exchanged at a discount of approximately 40%. The company also repurchased in the open market approximately $105 million principal amount of its outstanding debt scheduled to mature or that could be put to the company in 2017 and 2018 for $106 million.
Since September 30, 2015, Chesapeake has significantly reduced its near-term debt maturities. As of November 2, 2016, Chesapeake's principal debt maturities by year, including debt that could be put to the company, are as follows:
|
Principal Amount | ||||||
|
11/2/2016 |
9/30/2015 | |||||
|
2016 |
$ |
— |
$ |
500 |
||
|
2017 |
625 |
2,212 |
||||
|
2018 |
599 |
1,016 |
||||
|
2019 |
504 |
1,500 |
||||
|
2020-2026 (a) |
7,894 |
6,496 |
||||
|
Total |
$ |
9,622 |
$ |
11,724 |
||
|
(a) Includes $1.25 billion principal amount of unsecured 5.5% Convertible Senior Notes issued on October 5, 2016. | ||||||
Asset Acquisitions and Divestitures Update
In the 2016 third quarter, the company entered into an agreement to convey its interests in the Barnett Shale operating area located in North Texas to Total S.A. (NYSE: TOT) and simultaneously terminate future commitments associated with this asset. The transaction closed on October 31, 2016, and Chesapeake paid $334 million to terminate an existing gathering agreement with Williams Partners L.P. (NYSE: WPZ) ("Williams").
Also in the 2016 third quarter, the company entered into a purchase and sale agreement to sell the majority of its upstream and midstream assets in the Devonian Shale located in West Virginia and Kentucky, which includes approximately 882,000 net acres and approximately 5,600 wells along with related gathering assets, as well as other property, plant and equipment. Chesapeake will retain deep drilling rights in the area after the anticipated disposition. In connection with this divestiture, the company expects to repurchase one of its two remaining volumetric production payment (VPP) transactions. All of the acquired interests will be conveyed in the divestiture and the company will no longer have any future obligations related to this VPP. After the repurchase of this VPP, the company expects net cash proceeds from this disposition to be nominal.
In the 2016 third quarter, Chesapeake purchased additional working interests in certain of its operated properties in its Haynesville Shale operating area for approximately $85 million, adding approximately 72,500 net acres to its net acreage position and approximately 55 million cubic feet (mmcf) per day of net natural gas production.
The company continues to focus on select asset divestitures and is currently planning to sell additional properties by year-end 2016, including a portion of its Haynesville Shale properties.
Midstream Update
In addition to the gas gathering agreement termination with Williams in the Barnett Shale, Chesapeake renegotiated its existing cost-of-service gas gathering agreement with Williams in the Mid-Continent operating area to a fixed-fee arrangement in exchange for a $66 million payment in the 2016 third quarter. This new agreement became effective July 1, 2016.
The company also accelerated the value of a long-term natural gas supply contract in the 2016 third quarter by selling rights under a long-term gas supply agreement for $146 million in cash proceeds. In connection with this sale, the company reversed a $280 million derivative asset which was reflected as an unrealized hedging loss during the current quarter.
In October 2016, Chesapeake announced that it signed a letter of intent to restructure its natural gas gathering and service agreement in its Powder River Basin operating area with Williams and Crestwood Equity Partners L.P. (NYSE: CEQP). The restructured services are expected to replace the current cost-of-service arrangement and improve economics which support increased development across an expanded area of dedication in the region. Subject to board approvals from all three companies of the definitive agreement, the restructured services are to become effective January 1, 2017, for a 20-year term.
Operations Update
Chesapeake's average daily production for the 2016 third quarter was approximately 638,100 boe and is further detailed in the table below. For the 2016 fourth quarter, the company expects its average daily production to range between 550,000 and 570,000 boe (including approximately one month of production from the Barnett Shale assets). With average daily oil production of approximately 91,000 barrels per day for the month of October 2016, the company expects its average daily oil production to range between 90,000 and 95,000 barrels per day for the 2016 fourth quarter.
Chesapeake currently expects its exit rate production to grow significantly over the next two years. The company is currently projecting an exit-to-exit increase in total production from the fourth quarter of 2016 to the fourth quarter of 2017 of approximately 7%, adjusted for asset sales. More importantly, the company is projecting an exit-to-exit increase in its oil production from the fourth quarter of 2016 to the fourth quarter of 2017 of approximately 10%. For 2018, the company is currently projecting an increase in its total production from the fourth quarter of 2017 to the fourth quarter of 2018 of approximately 15%, primarily driven by an exit-to-exit increase in its oil production from the fourth quarter of 2017 to the fourth quarter of 2018 of approximately 20%. Chesapeake's projected growth rates are preliminary and its flexible capital expenditure program will be adjusted based on prevailing market conditions and are subject to final capital allocation decisions for 2017 and 2018.
|
2016 |
2016 |
2015 | ||||
|
Operating area net production (mboe/day) |
Q3 |
Q2 |
Q3 | |||
|
Eagle Ford |
101 |
92 |
108 |
|||
|
Haynesville |
139 |
126 |
106 |
|||
|
Marcellus |
134 |
134 |
135 |
|||
|
Utica |
127 |
137 |
106 |
|||
|
Mid-Continent |
55 |
78 |
118 |
|||
|
Powder River Basin |
14 |
16 |
21 |
|||
|
Barnett |
59 |
65 |
63 |
|||
|
Other |
9 |
9 |
10 |
|||
|
Total production |
638 |
657 |
667 |
|||
Chesapeake is currently utilizing 11 drilling rigs across its operating areas, three of which are located in the Eagle Ford Shale, three in the Haynesville Shale, three in the Mid-Continent area and two rigs in the Utica Shale. Chesapeake plans to utilize its existing rigs through year-end and plans to drill 50 to 60 wells and place approximately 100 to 110 wells on production in the 2016 fourth quarter.
Key Financial and Operational Results
The table below summarizes Chesapeake's key financial and operational results during the 2016 third quarter as compared to results in prior periods.
|
Three Months Ended | |||||||||||||||||||||||
|
09/30/16 |
06/30/16 |
09/30/15 | |||||||||||||||||||||
|
Oil equivalent production (in mmboe) |
59 |
60 |
61 |
||||||||||||||||||||
|
Oil production (in mmbbls) |
8 |
8 |
11 |
||||||||||||||||||||
|
Average realized oil price ($/bbl)(a) |
45.24 |
44.31 |
66.04 |
||||||||||||||||||||
|
Natural gas production (in bcf) |
268 |
269 |
263 |
||||||||||||||||||||
|
Average realized natural gas price ($/mcf)(a) |
2.13 |
1.97 |
2.51 |
||||||||||||||||||||
|
NGL production (in mmbbls) |
6 |
7 |
7 |
||||||||||||||||||||
|
Average realized NGL price ($/bbl)(a) |
13.70 |
12.88 |
10.90 |
||||||||||||||||||||
|
Production expenses ($/boe) |
(2.80) |
(3.05) |
(4.09) |
||||||||||||||||||||
|
Gathering, processing and transportation expenses ($/boe) |
(8.07) |
(8.04) |
(7.88) |
||||||||||||||||||||
|
Oil - ($/bbl) |
(3.67) |
(3.64) |
(3.35) |
||||||||||||||||||||
|
Natural Gas - ($/mcf) |
(1.47) |
(1.48) |
(1.49) |
||||||||||||||||||||
|
NGL - ($/bbl) |
(8.13) |
(7.61) |
(8.03) |
||||||||||||||||||||
|
Production taxes ($/boe) |
(0.29) |
(0.32) |
(0.42) |
||||||||||||||||||||
|
General and administrative expenses ($/boe)(b) |
(0.90) |
(0.86) |
(0.64) |
||||||||||||||||||||
|
Stock-based compensation ($/boe) |
(0.18) |
(0.16) |
(0.15) |
||||||||||||||||||||
|
DD&A of oil and natural gas properties ($/boe) |
(4.35) |
(4.43) |
(7.95) |
||||||||||||||||||||
|
DD&A of other assets ($/boe) |
(0.42) |
(0.48) |
(0.51) |
||||||||||||||||||||
|
Interest expenses ($/boe)(a) |
(1.20) |
(1.00) |
(1.41) |
||||||||||||||||||||
|
Marketing, gathering and compression net margin ($ in millions)(c) |
(162) |
(25) |
58 |
||||||||||||||||||||
|
Operating cash flow ($ in millions)(d) |
209 |
176 |
476 |
||||||||||||||||||||
|
Operating cash flow ($/boe) |
3.56 |
2.94 |
7.76 |
||||||||||||||||||||
|
Adjusted ebitda ($ in millions)(e) |
421 |
252 |
560 |
||||||||||||||||||||
|
Adjusted ebitda ($/boe) |
7.17 |
4.21 |
9.12 |
||||||||||||||||||||
|
Net loss available to common stockholders ($ in millions) |
(1,197) |
(1,792) |
(4,695) |
||||||||||||||||||||
|
Loss per share – diluted ($) |
(1.54) |
(2.48) |
(7.08) |
||||||||||||||||||||
|
Adjusted net income (loss) available to common stockholders ($ in millions)(f) |
27 |
(145) |
(83) |
||||||||||||||||||||
|
Adjusted income (loss) per share ($)(g) |
0.09 |
(0.14) |
(0.06) |
||||||||||||||||||||
|
(a) |
Includes the effects of realized gains (losses) from hedging, but excludes the effects of unrealized gains (losses) from hedging. | ||||||||||||||||||||||
|
(b) |
Excludes expenses associated with stock-based compensation and restructuring and other termination costs. | ||||||||||||||||||||||
|
(c) |
Includes revenue, operating expenses and unrealized gains (losses) on supply contract derivatives, but excludes depreciation and amortization of other assets. For the three months ended September 30, 2016, June 30, 2016 and September 30, 2015, unrealized gains (losses) were ($280 million), ($37 million) and $70 million, respectively. Additionally, the three months ended September 30, 2016 includes $146 million of proceeds related to the sale of the supply contract. | ||||||||||||||||||||||
|
(d) |
Defined as cash flow provided by operating activities before changes in assets and liabilities. | ||||||||||||||||||||||
|
(e) |
Defined as net income before interest expense, income taxes and depreciation, depletion and amortization expense, as adjusted to remove the effects of certain items detailed on page 18. | ||||||||||||||||||||||
|
(f) |
Defined as net income available to common stockholders, as adjusted to remove the effects of certain items detailed on page 12. | ||||||||||||||||||||||
|
(g) |
We have revised our presentation of adjusted loss per share to exclude shares considered antidilutive when calculating earnings per share in accordance with GAAP. | ||||||||||||||||||||||
2016 Third Quarter Financial and Operational Results Conference Call Information
A conference call to discuss this release has been scheduled on Thursday, November 3, 2016, at 9:00 am EDT. The telephone number to access the conference call is 913-312-6668 or toll-free 888-609-5667. The passcode for the call is 2510197. The number to access the conference call replay is 719-457-0820 or toll-free 888-203-1112 and the passcode for the replay is 2510197. The conference call will be webcast and can be found at www.chk.com in the "Investors" section of the company's website. The webcast of the conference will be available on the website for one year.
Headquartered in Oklahoma City, Chesapeake Energy Corporation's (NYSE: CHK) operations are focused on discovering and developing its large and geographically diverse resource base of unconventional oil and natural gas assets onshore in the United States. The company also owns oil and natural gas marketing and natural gas gathering and compression businesses. Further information is available at www.chk.com where Chesapeake routinely posts announcements, updates, events, investor information, presentations and news releases.
This news release and the accompanying Outlook include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements other than statements of historical fact. They include statements that give our current expectations or forecasts of future events, production and well connection forecasts, estimates of operating costs, anticipated capital and operational efficiencies, planned development drilling and expected drilling cost reductions, general and administrative expenses, capital expenditures, the timing of anticipated noncore asset sales and proceeds to be received therefrom, projected cash flow and liquidity, our ability to enhance our cash flow and financial flexibility, plans and objectives for future operations (including our ability to optimize base production and execute gas gathering agreements), the ability of our employees, portfolio strength and operational leadership to create long-term value, and the assumptions on which such statements are based. Although we believe the expectations and forecasts reflected in the forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. They can be affected by inaccurate or changed assumptions or by known or unknown risks and uncertainties.
Factors that could cause actual results to differ materially from expected results include those described under "Risk Factors" in Item 1A of our annual report on Form 10-K and any updates to those factors set forth in Chesapeake's subsequent quarterly reports on Form 10-Q or current reports on Form 8-K (available at http://www.chk.com/investors/sec-filings). These risk factors include the volatility of oil, natural gas and NGL prices; the limitations our level of indebtedness may have on our financial flexibility; our inability to access the capital markets on favorable terms or at all; the availability of cash flows from operations and other funds to finance reserve replacement costs or satisfy our debt obligations; a further downgrade in our credit rating requiring us to post more collateral under certain commercial arrangements; write-downs of our oil and natural gas asset carrying values due to low commodity prices; our ability to replace reserves and sustain production; uncertainties inherent in estimating quantities of oil, natural gas and NGL reserves and projecting future rates of production and the amount and timing of development expenditures; our ability to generate profits or achieve targeted results in drilling and well operations; leasehold terms expiring before production can be established; commodity derivative activities resulting in lower prices realized on oil, natural gas and NGL sales; the need to secure derivative liabilities and the inability of counterparties to satisfy their obligations; adverse developments or losses from pending or future litigation and regulatory proceedings, including royalty claims; charges incurred in response to market conditions and in connection with our ongoing actions to reduce financial leverage and complexity; drilling and operating risks and resulting liabilities; effects of environmental protection laws and regulation on our business; legislative and regulatory initiatives further regulating hydraulic fracturing; our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used; impacts of potential legislative and regulatory actions addressing climate change; federal and state tax proposals affecting our industry; potential OTC derivatives regulation limiting our ability to hedge against commodity price fluctuations; competition in the oil and gas exploration and production industry; a deterioration in general economic, business or industry conditions; negative public perceptions of our industry; limited control over properties we do not operate; pipeline and gathering system capacity constraints and transportation interruptions; terrorist activities and cyber-attacks adversely impacting our operations; potential challenges of our spin-off of Seventy Seven Energy Inc. (SSE) in connection with SSE's recently completed bankruptcy under Chapter 11 of the U.S. Bankruptcy Code; an interruption in operations at our headquarters due to a catastrophic event; the continuation of suspended dividend payments on our common stock and preferred stock; certain anti-takeover provisions that affect shareholder rights; and our inability to increase or maintain our liquidity through debt repurchases, capital exchanges, asset sales, joint ventures, farmouts or other means.
In addition, disclosures concerning the estimated contribution of derivative contracts to our future results of operations are based upon market information as of a specific date. These market prices are subject to significant volatility. Our production forecasts are also dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Expected asset sales may not be completed in the time frame anticipated or at all. We caution you not to place undue reliance on our forward-looking statements, which speak only as of the date of this news release, and we undertake no obligation to update any of the information provided in this release or the accompanying Outlook, except as required by applicable law.
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INVESTOR CONTACT: |
MEDIA CONTACT: |
|
Brad Sylvester, CFA |
Gordon Pennoyer |
|
(405) 935-8870 |
(405) 935-8878 |
|
CHESAPEAKE ENERGY CORPORATION | ||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
|
($ in millions, except per share data) | ||||||||
|
(unaudited) | ||||||||
|
Three Months Ended | ||||||||
|
2016 |
2015 | |||||||
|
REVENUES: |
||||||||
|
Oil, natural gas and NGL |
$ |
1,177 |
$ |
1,363 |
||||
|
Marketing, gathering and compression |
1,099 |
2,013 |
||||||
|
Total Revenues |
2,276 |
3,376 |
||||||
|
OPERATING EXPENSES: |
||||||||
|
Oil, natural gas and NGL production |
164 |
251 |
||||||
|
Oil, natural gas and NGL gathering, processing and transportation |
473 |
483 |
||||||
|
Production taxes |
17 |
25 |
||||||
|
Marketing, gathering and compression |
1,261 |
1,955 |
||||||
|
General and administrative |
63 |
49 |
||||||
|
Restructuring and other termination costs |
— |
53 |
||||||
|
Provision for legal contingencies |
8 |
— |
||||||
|
Oil, natural gas and NGL depreciation, depletion and amortization |
255 |
488 |
||||||
|
Depreciation and amortization of other assets |
25 |
31 |
||||||
|
Impairment of oil and natural gas properties |
433 |
5,416 |
||||||
|
Impairments of fixed assets and other |
751 |
79 |
||||||
|
Net gains on sales of fixed assets |
— |
(1) |
||||||
|
Total Operating Expenses |
3,450 |
8,829 |
||||||
|
LOSS FROM OPERATIONS |
(1,174) |
(5,453) |
||||||
|
OTHER INCOME (EXPENSE): |
||||||||
|
Interest expense |
(73) |
(88) |
||||||
|
Losses on investments |
(1) |
(33) |
||||||
|
Gains on purchases or exchanges of debt |
87 |
— |
||||||
|
Other income (expense) |
7 |
(2) |
||||||
|
Total Other Income (Expense) |
20 |
(123) |
||||||
|
LOSS BEFORE INCOME TAXES |
(1,154) |
(5,576) |
||||||
|
INCOME TAX BENEFIT: |
||||||||
|
Current income taxes |
— |
— |
||||||
|
Deferred income taxes |
— |
(937) |
||||||
|
Total Income Tax Benefit |
— |
(937) |
||||||
|
NET LOSS |
(1,154) |
(4,639) |
||||||
|
Net income attributable to noncontrolling interests |
(1) |
(13) |
||||||
|
NET LOSS ATTRIBUTABLE TO CHESAPEAKE |
(1,155) |
(4,652) |
||||||
|
Preferred stock dividends |
(42) |
(43) |
||||||
|
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS |
$ |
(1,197) |
$ |
(4,695) |
||||
|
LOSS PER COMMON SHARE: |
||||||||
|
Basic |
$ |
(1.54) |
$ |
(7.08) |
||||
|
Diluted |
$ |
(1.54) |
$ |
(7.08) |
||||
|
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): |
||||||||
|
Basic |
777 |
663 |
||||||
|
Diluted |
777 |
663 |
||||||
|
CHESAPEAKE ENERGY CORPORATION | ||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
|
($ in millions, except per share data) | ||||||||
|
(unaudited) | ||||||||
|
Nine Months Ended | ||||||||
|
2016 |
2015 | |||||||
|
REVENUES: |
||||||||
|
Oil, natural gas and NGL |
$ |
2,610 |
$ |
4,122 |
||||
|
Marketing, gathering and compression |
3,241 |
5,993 |
||||||
|
Total Revenues |
5,851 |
10,115 |
||||||
|
OPERATING EXPENSES: |
||||||||
|
Oil, natural gas and NGL production |
552 |
826 |
||||||
|
Oil, natural gas and NGL gathering, processing and transportation |
1,436 |
1,429 |
||||||
|
Production taxes |
54 |
87 |
||||||
|
Marketing, gathering and compression |
3,410 |
5,751 |
||||||
|
General and administrative |
172 |
174 |
||||||
|
Restructuring and other termination costs |
3 |
39 |
||||||
|
Provision for legal contingencies |
112 |
359 |
||||||
|
Oil, natural gas and NGL depreciation, depletion and amortization |
791 |
1,773 |
||||||
|
Depreciation and amortization of other assets |
83 |
100 |
||||||
|
Impairment of oil and natural gas properties |
2,331 |
15,407 |
||||||
|
Impairments of fixed assets and other |
795 |
167 |
||||||
|
Net (gains) losses on sales of fixed assets |
(5) |
3 |
||||||
|
Total Operating Expenses |
9,734 |
26,115 |
||||||
|
LOSS FROM OPERATIONS |
(3,883) |
(16,000) |
||||||
|
OTHER INCOME (EXPENSE): |
||||||||
|
Interest expense |
(197) |
(210) |
||||||
|
Losses on investments |
(3) |
(57) |
||||||
|
Loss on sale of investment |
(10) |
— |
||||||
|
Gains on purchases or exchanges of debt |
255 |
— |
||||||
|
Other income |
13 |
3 |
||||||
|
Total Other Income (Expense) |
58 |
(264) |
||||||
|
LOSS BEFORE INCOME TAXES |
(3,825) |
(16,264) |
||||||
|
INCOME TAX BENEFIT: |
||||||||
|
Current income taxes |
— |
(6) |
||||||
|
Deferred income taxes |
— |
(3,808) |
||||||
|
Total Income Tax Benefit |
— |
(3,814) |
||||||
|
NET LOSS |
(3,825) |
(12,450) |
||||||
|
Net income attributable to noncontrolling interests |
(1) |
(50) |
||||||
|
NET LOSS ATTRIBUTABLE TO CHESAPEAKE |
(3,826) |
(12,500) |
||||||
|
Preferred stock dividends |
(127) |
(128) |
||||||
|
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS |
$ |
(3,953) |
$ |
(12,628) |
||||
|
LOSS PER COMMON SHARE: |
||||||||
|
Basic |
$ |
(5.47) |
$ |
(19.07) |
||||
|
Diluted |
$ |
(5.47) |
$ |
(19.07) |
||||
|
WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING (in millions): |
||||||||
|
Basic |
722 |
662 |
||||||
|
Diluted |
722 |
662 |
||||||
|
CHESAPEAKE ENERGY CORPORATION | ||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
|
($ in millions) | ||||||||
|
(unaudited) | ||||||||
|
September 30, 2016 |
December 31, 2015 | |||||||
|
Cash and cash equivalents |
$ |
4 |
$ |
825 |
||||
|
Other current assets |
1,063 |
1,655 |
||||||
|
Total Current Assets |
1,067 |
2,480 |
||||||
|
Property and equipment, (net) |
11,051 |
14,298 |
||||||
|
Other assets |
405 |
536 |
||||||
|
Total Assets |
$ |
12,523 |
$ |
17,314 |
||||
|
Current liabilities |
$ |
3,606 |
$ |
3,685 |
||||
|
Long-term debt, net |
9,022 |
10,311 |
||||||
|
Other long-term liabilities |
827 |
921 |
||||||
|
Total Liabilities |
13,455 |
14,917 |
||||||
|
Preferred stock |
3,036 |
3,062 |
||||||
|
Noncontrolling interests |
259 |
259 |
||||||
|
Common stock and other stockholders' equity |
(4,227) |
(924) |
||||||
|
Total Equity |
(932) |
2,397 |
||||||
|
Total Liabilities and Equity |
$ |
12,523 |
$ |
17,314 |
||||
|
Common shares outstanding (in millions) |
776 |
663 |
||||||
|
Principal amount of debt outstanding |
$ |
8,717 |
$ |
9,706 |
||||
|
CHESAPEAKE ENERGY CORPORATION | ||||||||||||||||||
|
SUPPLEMENTAL DATA – OIL, NATURAL GAS AND NGL PRODUCTION, SALES AND INTEREST EXPENSE | ||||||||||||||||||
|
(unaudited) | ||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||
|
Net Production: |
||||||||||||||||||
|
Oil (mmbbl) |
8 |
11 |
25 |
32 |
||||||||||||||
|
Natural gas (bcf) |
268 |
263 |
814 |
802 |
||||||||||||||
|
NGL (mmbbl) |
6 |
7 |
19 |
21 |
||||||||||||||
|
Oil equivalent (mmboe) |
59 |
61 |
180 |
187 |
||||||||||||||
|
Oil, natural gas and NGL Sales ($ in millions): |
||||||||||||||||||
|
Oil sales |
$ |
342 |
$ |
469 |
$ |
952 |
$ |
1,549 |
||||||||||
|
Oil derivatives – realized gains (losses)(a) |
18 |
224 |
102 |
641 |
||||||||||||||
|
Oil derivatives – unrealized gains (losses)(a) |
23 |
(100) |
(217) |
(444) |
||||||||||||||
|
Total Oil Sales |
383 |
593 |
837 |
1,746 |
||||||||||||||
|
Natural gas sales |
622 |
590 |
1,545 |
1,937 |
||||||||||||||
|
Natural gas derivatives – realized gains (losses)(a) |
(50) |
70 |
192 |
341 |
||||||||||||||
|
Natural gas derivatives – unrealized gains (losses)(a) |
131 |
33 |
(204) |
(198) |
||||||||||||||
|
Total Natural Gas Sales |
703 |
693 |
1,533 |
2,080 |
||||||||||||||
|
NGL sales |
84 |
77 |
247 |
296 |
||||||||||||||
|
NGL derivatives – realized gains (losses)(a) |
(2) |
— |
(5) |
— |
||||||||||||||
|
NGL derivatives – unrealized gains (losses)(a) |
9 |
— |
(2) |
— |
||||||||||||||
|
Total NGL Sales |
91 |
77 |
240 |
296 |
||||||||||||||
|
Total Oil, Natural Gas and NGL Sales |
$ |
1,177 |
$ |
1,363 |
$ |
2,610 |
$ |
4,122 |
||||||||||
|
Average Sales Price – excluding gains (losses) on derivatives: |
||||||||||||||||||
|
Oil ($ per bbl) |
$ |
42.94 |
$ |
44.60 |
$ |
38.21 |
$ |
47.90 |
||||||||||
|
Natural gas ($ per mcf) |
$ |
2.32 |
$ |
2.25 |
$ |
1.90 |
$ |
2.41 |
||||||||||
|
NGL ($ per bbl) |
$ |
13.93 |
$ |
10.90 |
$ |
12.90 |
$ |
14.06 |
||||||||||
|
Oil equivalent ($ per boe) |
$ |
17.86 |
$ |
18.52 |
$ |
15.27 |
$ |
20.21 |
||||||||||
|
Average Sales Price –including realized gains (losses) on derivatives: |
||||||||||||||||||
|
Oil ($ per bbl) |
$ |
45.24 |
$ |
66.04 |
$ |
42.31 |
$ |
67.73 |
||||||||||
|
Natural gas ($ per mcf) |
$ |
2.13 |
$ |
2.51 |
$ |
2.13 |
$ |
2.84 |
||||||||||
|
NGL ($ per bbl) |
$ |
13.70 |
$ |
10.90 |
$ |
12.66 |
$ |
14.06 |
||||||||||
|
Oil equivalent ($ per boe) |
$ |
17.30 |
$ |
23.33 |
$ |
16.88 |
$ |
25.47 |
||||||||||
|
Interest Expense ($ in millions): |
||||||||||||||||||
|
Interest(b) |
$ |
74 |
$ |
88 |
$ |
199 |
$ |
222 |
||||||||||
|
Interest rate derivatives – realized (gains) losses(c) |
(3) |
(2) |
(9) |
(4) |
||||||||||||||
|
Interest rate derivatives – unrealized (gains) losses(c) |
2 |
2 |
7 |
(8) |
||||||||||||||
|
Total Interest Expense |
$ |
73 |
$ |
88 |
$ |
197 |
$ |
210 |
||||||||||
|
(a) |
Realized gains and losses include the following items: (i) settlements of nondesignated derivatives related to current period production revenues, (ii) prior period settlements for option premiums and for early-terminated derivatives originally scheduled to settle against current period production revenues, and (iii) gains and losses related to de-designated cash flow hedges originally designated to settle against current period production revenues. Unrealized gains and losses include the change in fair value of open derivatives scheduled to settle against future period production revenues offset by amounts reclassified as realized gains and losses during the period. Although we no longer designate our derivatives as cash flow hedges for accounting purposes, we believe these definitions are useful to management and investors in determining the effectiveness of our price risk management program. | |||||||||||||||||
|
(b) |
Net of amounts capitalized. | |||||||||||||||||
|
(c) |
Realized (gains) losses include settlements related to the current period interest accrual and the effect of (gains) losses on early termination trades. Unrealized (gains) losses include changes in the fair value of open interest rate derivatives offset by amounts reclassified to realized (gains) losses during the period. | |||||||||||||||||
|
CHESAPEAKE ENERGY CORPORATION | ||||||||||||||||||||||
|
CONDENSED CONSOLIDATED CASH FLOW DATA | ||||||||||||||||||||||
|
($ in millions) | ||||||||||||||||||||||
|
(unaudited) | ||||||||||||||||||||||
|
THREE MONTHS ENDED: |
September 30, |
September 30, | ||||||||||||||||||||
|
Beginning cash |
$ |
4 |
$ |
2,051 |
||||||||||||||||||
|
Net cash provided by operating activities |
376 |
318 |
||||||||||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||||||||
|
Drilling and completion costs(a) |
(339) |
(528) |
||||||||||||||||||||
|
Acquisitions of proved and unproved properties(b) |
(157) |
(141) |
||||||||||||||||||||
|
Proceeds from divestitures of proved and unproved properties |
24 |
174 |
||||||||||||||||||||
|
Additions to other property and equipment(c) |
(7) |
(21) |
||||||||||||||||||||
|
Proceeds from sales of other property and equipment |
— |
73 |
||||||||||||||||||||
|
Decrease in restricted cash |
— |
52 |
||||||||||||||||||||
|
Other |
(1) |
(2) |
||||||||||||||||||||
|
Net cash used in investing activities |
(480) |
(393) |
||||||||||||||||||||
|
Net cash provided by (used in) financing activities |
104 |
(217) |
||||||||||||||||||||
|
Change in cash and cash equivalents |
— |
(292) |
||||||||||||||||||||
|
Ending cash |
$ |
4 |
$ |
1,759 |
||||||||||||||||||
|
(a) |
Includes capitalized interest of $1 million and $3 million for the three months ended September 30, 2016 and 2015, respectively. | |||||||||||||||||||||
|
(b) |
Includes capitalized interest of $56 million and $93 million for the three months ended September 30, 2016 and 2015, respectively. | |||||||||||||||||||||
|
(c) |
Includes capitalized interest of a nominal amount and $1 million for the three months ended September 30, 2016 and 2015, respectively. | |||||||||||||||||||||
|
CHESAPEAKE ENERGY CORPORATION | ||||||||||||||||||||||
|
CONDENSED CONSOLIDATED CASH FLOW DATA | ||||||||||||||||||||||
|
($ in millions) | ||||||||||||||||||||||
|
(unaudited) | ||||||||||||||||||||||
|
NINE MONTHS ENDED: |
September 30, |
September 30, 2015 | ||||||||||||||||||||
|
Beginning cash |
$ |
825 |
$ |
4,108 |
||||||||||||||||||
|
Net cash provided by operating activities |
50 |
1,055 |
||||||||||||||||||||
|
Cash flows from investing activities: |
||||||||||||||||||||||
|
Drilling and completion costs(a) |
(948) |
(2,696) |
||||||||||||||||||||
|
Acquisitions of proved and unproved properties(b) |
(583) |
(407) |
||||||||||||||||||||
|
Proceeds from divestitures of proved and unproved properties |
988 |
188 |
||||||||||||||||||||
|
Additions to other property and equipment(c) |
(32) |
(114) |
||||||||||||||||||||
|
Proceeds from sales of other property and equipment |
70 |
80 |
||||||||||||||||||||
|
Cash paid for title defects |
(69) |
— |
||||||||||||||||||||
|
Additions to investments |
— |
(1) |
||||||||||||||||||||
|
Decrease in restricted cash |
— |
52 |
||||||||||||||||||||
|
Other |
(5) |
(7) |
||||||||||||||||||||
|
Net cash used in investing activities |
(579) |
(2,905) |
||||||||||||||||||||
|
Net cash used in financing activities |
(292) |
(499) |
||||||||||||||||||||
|
Change in cash and cash equivalents |
(821) |
(2,349) |
||||||||||||||||||||
|
Ending cash |
$ |
4 |
$ |
1,759 |
||||||||||||||||||
|
(a) |
Includes capitalized interest of $5 million and $21 million for the nine months ended September 30, 2016 and 2015, respectively. | |||||||||||||||||||||
|
(b) |
Includes capitalized interest of $179 million and $305 million for the nine months ended September 30, 2016 and 2015, respectively. | |||||||||||||||||||||
|
(c) |
Includes capitalized interest of $1 million and $3 million for the nine months ended September 30, 2016 and 2015, respectively. | |||||||||||||||||||||
|
CHESAPEAKE ENERGY CORPORATION | ||||||||||||||||||||||||||||||||||||||
|
RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | ||||||||||||||||||||||||||||||||||||||
|
(in millions, except per share data) | ||||||||||||||||||||||||||||||||||||||
|
(unaudited) | ||||||||||||||||||||||||||||||||||||||
|
THREE MONTHS ENDED: |
September 30, 2016 | |||||||||||||||||||||||||||||||||||||
|
$ |
Shares(a) |
$/Share(c) (d) | ||||||||||||||||||||||||||||||||||||
|
Net loss available to common stockholders |
$ |
(1,197) |
777 |
$ |
(1.54) | |||||||||||||||||||||||||||||||||
|
Adjustments: |
||||||||||||||||||||||||||||||||||||||
|
Unrealized gains on commodity derivatives |
(163) |
(0.21) | ||||||||||||||||||||||||||||||||||||
|
Unrealized losses on supply contract derivatives |
280 |
0.36 | ||||||||||||||||||||||||||||||||||||
|
Provision for legal contingencies |
8 |
0.01 | ||||||||||||||||||||||||||||||||||||
|
Impairment of oil and natural gas properties |
433 |
0.56 | ||||||||||||||||||||||||||||||||||||
|
Impairments of fixed assets and other |
751 |
0.97 | ||||||||||||||||||||||||||||||||||||
|
Gains on purchases or exchanges of debt |
(87) |
(0.11) | ||||||||||||||||||||||||||||||||||||
|
Other |
2 |
— | ||||||||||||||||||||||||||||||||||||
|
Tax effect of above items(b) |
— |
— | ||||||||||||||||||||||||||||||||||||
|
Adjusted net income available to common stockholders(c) (Non-GAAP) |
27 |
0.04 | ||||||||||||||||||||||||||||||||||||
|
Preferred stock dividends |
42 |
0.05 | ||||||||||||||||||||||||||||||||||||
|
Total adjusted net income attributable to Chesapeake(c) (d) (Non-GAAP) |
$ |
69 |
$ |
0.09 | ||||||||||||||||||||||||||||||||||
|
(a) |
Weighted average common and common equivalent shares outstanding do not include 113 million shares that were considered antidilutive for calculating earnings per share in accordance with GAAP. | |||||||||||||||||||||||||||||||||||||
|
(b) |
Our effective tax rate in the three months ended September 30, 2016 was 0%; thus, there is no tax effect on the reconciling adjustments. | |||||||||||||||||||||||||||||||||||||
|
(c) |
Adjusted net income and adjusted earnings per common share are not measures of financial performance under accounting principles generally accepted in the United States (GAAP), and should not be considered as an alternative to net income available to common stockholders or earnings per share. Adjusted net income available to common stockholders and adjusted earnings per share exclude certain items that management believes affect the comparability of operating results. The company believes these adjusted financial measures are a useful adjunct to earnings calculated in accordance with GAAP because: | |||||||||||||||||||||||||||||||||||||
|
(i) |
Management uses adjusted net income available to common stockholders to evaluate the company's operational trends and performance relative to other oil and natural gas producing companies. | |||||||||||||||||||||||||||||||||||||
|
(ii) |
Adjusted net income available to common stockholders is more comparable to earnings estimates provided by securities analysts. | |||||||||||||||||||||||||||||||||||||
|
(iii) |
Items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items. | |||||||||||||||||||||||||||||||||||||
|
(d) |
We have revised our presentation of adjusted loss per share to exclude shares considered antidilutive when calculating earnings per share in accordance with GAAP. | |||||||||||||||||||||||||||||||||||||
|
CHESAPEAKE ENERGY CORPORATION | |||||||||||||||
|
RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | |||||||||||||||
|
(in millions, except per share data) | |||||||||||||||
|
(unaudited) | |||||||||||||||
|
THREE MONTHS ENDED: |
September 30, 2015 | ||||||||||||||
|
$ |
Shares(a) |
$/Share(c) (d) | |||||||||||||
|
Net loss available to common stockholders |
$ |
(4,695) |
663 |
$ |
(7.08) |
||||||||||
|
Adjustments: |
|||||||||||||||
|
Unrealized losses on commodity derivatives |
67 |
0.10 |
|||||||||||||
|
Unrealized gains on supply contract derivatives |
(70) |
(0.10) |
|||||||||||||
|
Restructuring and other termination costs |
53 |
0.08 |
|||||||||||||
|
Impairment of oil and natural gas properties |
5,416 |
8.17 |
|||||||||||||
|
Impairments of fixed assets and other |
79 |
0.12 |
|||||||||||||
|
Net gains on sales of fixed assets |
(1) |
— |
|||||||||||||
|
Tax effect of above items(b) |
(932) |
(1.41) |
|||||||||||||
|
Adjusted net loss available to common stockholders(c) (Non-GAAP) |
(83) |
(0.12) |
|||||||||||||
|
Preferred stock dividends |
43 |
0.06 |
|||||||||||||
|
Total adjusted net loss attributable to Chesapeake(c) (d) (Non-GAAP) |
$ |
(40) |
$ |
(0.06) |
|||||||||||
|
(a) |
Weighted average common and common equivalent shares outstanding do not include 113 million shares that were considered antidilutive for calculating earnings per share in accordance with GAAP. | ||||||||||||||
|
(b) |
Our effective tax rate in the three months ended September 30, 2015 was 16.8%. | ||||||||||||||
|
(c) |
Adjusted net income and adjusted earnings per common share are not measures of financial performance under accounting principles generally accepted in the United States (GAAP), and should not be considered as an alternative to net income available to common stockholders or earnings per share. Adjusted net income available to common stockholders and adjusted earnings per share exclude certain items that management believes affect the comparability of operating results. The company believes these adjusted financial measures are a useful adjunct to earnings calculated in accordance with GAAP because: | ||||||||||||||
|
(i) |
Management uses adjusted net income available to common stockholders to evaluate the company's operational trends and performance relative to other oil and natural gas producing companies. | ||||||||||||||
|
(ii) |
Adjusted net income available to common stockholders is more comparable to earnings estimates provided by securities analysts. | ||||||||||||||
|
(iii) |
Items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items. | ||||||||||||||
|
(d) |
We have revised our presentation of adjusted loss per share to exclude shares considered antidilutive when calculating earnings per share in accordance with GAAP. | ||||||||||||||
|
CHESAPEAKE ENERGY CORPORATION | |||||||||||||||||||||||
|
RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | |||||||||||||||||||||||
|
(in millions, except per share data) | |||||||||||||||||||||||
|
(unaudited) | |||||||||||||||||||||||
|
NINE MONTHS ENDED: |
September 30, 2016 | ||||||||||||||||||||||
|
$ |
Shares(a) |
$/Share(c) (d) | |||||||||||||||||||||
|
Net loss available to common stockholders |
$ |
(3,953) |
722 |
$ |
(5.47) |
||||||||||||||||||
|
Adjustments: |
|||||||||||||||||||||||
|
Unrealized losses on commodity derivatives |
423 |
0.58 |
|||||||||||||||||||||
|
Unrealized losses on supply contract derivatives |
297 |
0.41 |
|||||||||||||||||||||
|
Restructuring and other termination costs |
3 |
— |
|||||||||||||||||||||
|
Provision for legal contingencies |
112 |
0.16 |
|||||||||||||||||||||
|
Impairment of oil and natural gas properties |
2,331 |
3.23 |
|||||||||||||||||||||
|
Impairments of fixed assets and other |
795 |
1.10 |
|||||||||||||||||||||
|
Net gains on sales of fixed assets |
(5) |
(0.01) |
|||||||||||||||||||||
|
Loss on sale of investment |
10 |
0.01 |
|||||||||||||||||||||
|
Gains on purchases or exchanges of debt |
(255) |
(0.35) |
|||||||||||||||||||||
|
Tax rate adjustment |
— |
— |
|||||||||||||||||||||
|
Other |
8 |
0.01 |
|||||||||||||||||||||
|
Tax effect of above items(b) |
— |
— |
|||||||||||||||||||||
|
Adjusted net loss available to common stockholders(c) (Non-GAAP) |
(234) |
(0.33) |
|||||||||||||||||||||
|
Preferred stock dividends |
127 |
0.18 |
|||||||||||||||||||||
|
Total adjusted net loss attributable to Chesapeake(c) (d) (Non-GAAP) |
$ |
(107) |
$ |
(0.15) |
|||||||||||||||||||
|
(a) |
Weighted average common and common equivalent shares outstanding do not include 113 million shares that were considered antidilutive for calculating earnings per share in accordance with GAAP. | ||||||||||||||||||||||
|
(b) |
Our effective tax rate in the nine months ended September 30, 2016 was 0%; thus, there is no tax effect on the reconciling adjustments. | ||||||||||||||||||||||
|
(c) |
Adjusted net income and adjusted earnings per share are not measures of financial performance under accounting principles generally accepted in the United States (GAAP), and should not be considered as an alternative to net income available to common stockholders or earnings per share. Adjusted net income available to common stockholders and adjusted earnings per share exclude certain items that management believes affect the comparability of operating results. The company believes these adjusted financial measures are a useful adjunct to earnings calculated in accordance with GAAP because: | ||||||||||||||||||||||
|
(i) |
Management uses adjusted net income available to common stockholders to evaluate the company's operational trends and performance relative to other oil and natural gas producing companies. | ||||||||||||||||||||||
|
(ii) |
Adjusted net income available to common stockholders is more comparable to earnings estimates provided by securities analysts. | ||||||||||||||||||||||
|
(iii) |
Items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items. | ||||||||||||||||||||||
|
(d) |
We have revised our presentation of adjusted loss per share to exclude shares considered antidilutive when calculating earnings per share in accordance with GAAP. | ||||||||||||||||||||||
|
CHESAPEAKE ENERGY CORPORATION |
|||||||||||||||||||||||
|
RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS |
|||||||||||||||||||||||
|
(in millions, except per share data) |
|||||||||||||||||||||||
|
(unaudited) |
|||||||||||||||||||||||
|
NINE MONTHS ENDED: |
September 30, 2015 | ||||||||||||||||||||||
|
$ |
Shares(a) |
$/Share(c) (d) | |||||||||||||||||||||
|
Net loss available to common stockholders |
$ |
(12,628) |
662 |
$ |
(19.07) |
||||||||||||||||||
|
Adjustments: |
|||||||||||||||||||||||
|
Unrealized losses on commodity derivatives |
642 |
0.97 | |||||||||||||||||||||
|
Unrealized gains on supply contract derivatives |
(290) |
(0.44) | |||||||||||||||||||||
|
Restructuring and other termination costs |
39 |
0.06 | |||||||||||||||||||||
|
Provision for legal contingencies |
359 |
0.54 | |||||||||||||||||||||
|
Impairment of oil and natural gas properties |
15,407 |
23.27 | |||||||||||||||||||||
|
Impairments of fixed assets and other |
167 |
0.25 | |||||||||||||||||||||
|
Net losses on sales of fixed assets |
3 |
— | |||||||||||||||||||||
|
Tax rate adjustment |
(17) |
(0.02) | |||||||||||||||||||||
|
Other |
(17) |
(0.02) | |||||||||||||||||||||
|
Tax effect of above items(b) |
(3,827) |
(5.78) | |||||||||||||||||||||
|
Adjusted net loss available to common stockholders(c) (Non-GAAP) |
(162) |
(0.24) | |||||||||||||||||||||
|
Preferred stock dividends |
128 |
0.19 | |||||||||||||||||||||
|
Total adjusted net loss attributable to Chesapeake(c) (d) (Non-GAAP) |
$ |
(34) |
(0.05) | ||||||||||||||||||||
|
(a) |
Weighted average common and common equivalent shares outstanding do not include 115 million shares that were considered antidilutive for calculating earnings per share in accordance with GAAP. | ||||||||||||||||||||||
|
(b) |
Our effective tax rate in the nine months ended September 30, 2015 was 23.5%. | ||||||||||||||||||||||
|
(c) |
Adjusted net income and adjusted earnings per common share are not measures of financial performance under accounting principles generally accepted in the United States (GAAP), and should not be considered as an alternative to net income available to common stockholders or earnings per share. Adjusted net income available to common stockholders and adjusted earnings per share exclude certain items that management believes affect the comparability of operating results. The company believes these adjusted financial measures are a useful adjunct to earnings calculated in accordance with GAAP because: | ||||||||||||||||||||||
|
(i) |
Management uses adjusted net income available to common stockholders to evaluate the company's operational trends and performance relative to other oil and natural gas producing companies. | ||||||||||||||||||||||
|
(ii) |
Adjusted net income available to common stockholders is more comparable to earnings estimates provided by securities analysts. | ||||||||||||||||||||||
|
(iii) |
Items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items. | ||||||||||||||||||||||
|
(d) |
We have revised our presentation of adjusted loss per share to exclude shares considered antidilutive when calculating earnings per share in accordance with GAAP. | ||||||||||||||||||||||
|
CHESAPEAKE ENERGY CORPORATION | ||||||||
|
RECONCILIATION OF OPERATING CASH FLOW AND EBITDA | ||||||||
|
($ in millions) | ||||||||
|
(unaudited) | ||||||||
|
THREE MONTHS ENDED: |
September 30, 2016 |
September 30, 2015 | ||||||
|
CASH PROVIDED BY OPERATING ACTIVITIES |
$ |
376 |
$ |
318 |
||||
|
Changes in assets and liabilities |
(167) |
158 |
||||||
|
OPERATING CASH FLOW(a) |
$ |
209 |
$ |
476 |
||||
|
THREE MONTHS ENDED: |
September 30, |
September 30, | ||||||
|
NET LOSS |
$ |
(1,154) |
$ |
(4,639) |
||||
|
Interest expense |
73 |
88 |
||||||
|
Income tax benefit |
— |
(937) |
||||||
|
Depreciation and amortization of other assets |
25 |
31 |
||||||
|
Oil, natural gas and NGL depreciation, depletion and amortization |
255 |
488 |
||||||
|
EBITDA(b) |
$ |
(801) |
$ |
(4,969) |
||||
|
THREE MONTHS ENDED: |
September 30, |
September 30, | |||||||||||
|
CASH PROVIDED BY OPERATING ACTIVITIES |
$ |
376 |
$ |
318 |
|||||||||
|
Changes in assets and liabilities |
(167) |
158 |
|||||||||||
|
Interest expense, net of unrealized gains (losses) on derivatives |
71 |
86 |
|||||||||||
|
Gains on commodity derivatives, net |
129 |
227 |
|||||||||||
|
Gains (losses) on supply contract derivatives, net |
(134) |
70 |
|||||||||||
|
Cash receipts on commodity and supply contract derivative settlements, net |
(101) |
(223) |
|||||||||||
|
Amendment of natural gas gathering contract |
66 |
— |
|||||||||||
|
Stock-based compensation |
(15) |
(18) |
|||||||||||
|
Restructuring and other termination costs |
1 |
(53) |
|||||||||||
|
Provision for legal contingencies |
27 |
— |
|||||||||||
|
Impairment of oil and natural gas properties |
(433) |
(5,416) |
|||||||||||
|
Impairments of fixed assets and other |
(751) |
(79) |
|||||||||||
|
Net gains on sales of fixed assets |
— |
1 |
|||||||||||
|
Investment activity |
(1) |
(33) |
|||||||||||
|
Gains on purchases or exchanges of debt |
87 |
— |
|||||||||||
|
Other items |
44 |
(7) |
|||||||||||
|
EBITDA(b) |
$ |
(801) |
$ |
(4,969) |
|||||||||
|
(a) |
Operating cash flow represents net cash provided by operating activities before changes in assets and liabilities. Operating cash flow is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Operating cash flow is widely accepted as a financial indicator of an oil and natural gas company's ability to generate cash that is used to internally fund exploration and development activities and to service debt. This measure is widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies within the oil and natural gas exploration and production industry. Operating cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities as an indicator of cash flows, or as a measure of liquidity. | ||||||||||||
|
(b) |
Ebitda represents net income before interest expense, income taxes, and depreciation, depletion and amortization expense. Ebitda is presented as a supplemental financial measurement in the evaluation of our business. We believe that it provides additional information regarding our ability to meet our future debt service, capital expenditures and working capital requirements. This measure is widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies. Ebitda is also a financial measurement that, with certain negotiated adjustments, is reported to our lenders pursuant to our bank credit agreements and is used in the financial covenants in our bank credit agreements. Ebitda is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net income, income from operations or cash flow provided by operating activities prepared in accordance with GAAP. | ||||||||||||
|
CHESAPEAKE ENERGY CORPORATION | ||||||||
|
RECONCILIATION OF OPERATING CASH FLOW AND EBITDA | ||||||||
|
($ in millions) | ||||||||
|
(unaudited) | ||||||||
|
NINE MONTHS ENDED: |
September 30, |
September 30, | ||||||
|
CASH PROVIDED BY OPERATING ACTIVITIES |
$ |
50 |
$ |
1,055 |
||||
|
Changes in assets and liabilities |
598 |
877 |
||||||
|
OPERATING CASH FLOW(a) |
$ |
648 |
$ |
1,932 |
||||
|
NINE MONTHS ENDED: |
September 30, |
September 30, | ||||||
|
NET LOSS |
$ |
(3,825) |
$ |
(12,450) |
||||
|
Interest expense |
197 |
210 |
||||||
|
Income tax benefit |
— |
(3,814) |
||||||
|
Depreciation and amortization of other assets |
83 |
100 |
||||||
|
Oil, natural gas and NGL depreciation, depletion and amortization |
791 |
1,773 |
||||||
|
EBITDA(b) |
$ |
(2,754) |
$ |
(14,181) |
||||
|
NINE MONTHS ENDED: |
September 30, |
September 30, | |||||||||||
|
CASH PROVIDED BY OPERATING ACTIVITIES |
$ |
50 |
$ |
1,055 |
|||||||||
|
Changes in assets and liabilities |
598 |
877 |
|||||||||||
|
Interest expense, net of unrealized gains (losses) on derivatives |
190 |
218 |
|||||||||||
|
Gains (losses) on commodity derivatives, net |
(134) |
340 |
|||||||||||
|
Gains (losses) on supply contract derivatives, net |
(151) |
290 |
|||||||||||
|
Cash receipts on commodity and supply contract derivative settlements, net |
(487) |
(859) |
|||||||||||
|
Amendment of natural gas gathering contract |
66 |
— |
|||||||||||
|
Stock-based compensation |
(40) |
(61) |
|||||||||||
|
Restructuring and other termination costs |
(1) |
(39) |
|||||||||||
|
Provision for legal contingencies |
(77) |
(359) |
|||||||||||
|
Impairment of oil and natural gas properties |
(2,331) |
(15,407) |
|||||||||||
|
Impairments of fixed assets and other |
(785) |
(159) |
|||||||||||
|
Net gains (losses) on sales of fixed assets |
5 |
(3) |
|||||||||||
|
Investment activity |
(13) |
(57) |
|||||||||||
|
Gains on purchases or exchanges of debt |
255 |
— |
|||||||||||
|
Other items |
101 |
(17) |
|||||||||||
|
EBITDA(b) |
$ |
(2,754) |
$ |
(14,181) |
|||||||||
|
(a) |
Operating cash flow represents net cash provided by operating activities before changes in assets and liabilities. Operating cash flow is presented because management believes it is a useful adjunct to net cash provided by operating activities under GAAP. Operating cash flow is widely accepted as a financial indicator of an oil and natural gas company's ability to generate cash that is used to internally fund exploration and development activities and to service debt. This measure is widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies within the oil and natural gas exploration and production industry. Operating cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing or financing activities as an indicator of cash flows, or as a measure of liquidity. | ||||||||||||
|
(b) |
Ebitda represents net income before interest expense, income taxes, and depreciation, depletion and amortization expense. Ebitda is presented as a supplemental financial measurement in the evaluation of our business. We believe that it provides additional information regarding our ability to meet our future debt service, capital expenditures and working capital requirements. This measure is widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies. Ebitda is also a financial measurement that, with certain negotiated adjustments, is reported to our lenders pursuant to our bank credit agreements and is used in the financial covenants in our bank credit agreements. Ebitda is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net income, income from operations or cash flow provided by operating activities prepared in accordance with GAAP. | ||||||||||||
|
CHESAPEAKE ENERGY CORPORATION | ||||||||
|
RECONCILIATION OF ADJUSTED EBITDA | ||||||||
|
($ in millions) | ||||||||
|
(unaudited) | ||||||||
|
THREE MONTHS ENDED: |
September 30, |
September 30, | ||||||
|
EBITDA |
$ |
(801) |
$ |
(4,969) |
||||
|
Adjustments: |
||||||||
|
Unrealized (gains) losses on commodity derivatives |
(163) |
67 |
||||||
|
Unrealized (gains) losses on supply contract derivatives |
280 |
(70) |
||||||
|
Restructuring and other termination costs |
— |
53 |
||||||
|
Provision for legal contingencies |
8 |
— |
||||||
|
Impairment of oil and natural gas properties |
433 |
5,416 |
||||||
|
Impairments of fixed assets and other |
751 |
79 |
||||||
|
Net gains on sales of fixed assets |
— |
(1) |
||||||
|
Gains on purchases or exchanges of debt |
(87) |
— |
||||||
|
Net income attributable to noncontrolling interests |
(1) |
(13) |
||||||
|
Other |
1 |
(2) |
||||||
|
Adjusted EBITDA(a) |
$ |
421 |
$ |
560 |
||||
|
CHESAPEAKE ENERGY CORPORATION | |||||||||||||
|
RECONCILIATION OF ADJUSTED EBITDA | |||||||||||||
|
($ in millions) | |||||||||||||
|
(unaudited) | |||||||||||||
|
NINE MONTHS ENDED: |
September 30, |
September 30, | |||||||||||
|
EBITDA |
$ |
(2,754) |
$ |
(14,181) |
|||||||||
|
Adjustments: |
|||||||||||||
|
Unrealized losses on commodity derivatives |
423 |
642 |
|||||||||||
|
Unrealized (gains) losses on supply contract derivatives |
297 |
(290) |
|||||||||||
|
Restructuring and other termination costs |
3 |
39 |
|||||||||||
|
Provision for legal contingencies |
112 |
359 |
|||||||||||
|
Impairment of oil and natural gas properties |
2,331 |
15,407 |
|||||||||||
|
Impairments of fixed assets and other |
795 |
167 |
|||||||||||
|
Net (gains) losses on sales of fixed assets |
(5) |
3 |
|||||||||||
|
Loss on sale of investment |
10 |
— |
|||||||||||
|
Gains on purchases or exchanges of debt |
(255) |
— |
|||||||||||
|
Net income attributable to noncontrolling interests |
(1) |
(50) |
|||||||||||
|
Other |
(1) |
(9) |
|||||||||||
|
Adjusted EBITDA(a) |
$ |
955 |
$ |
2,087 |
|||||||||
|
(a) |
Adjusted ebitda excludes certain items that management believes affect the comparability of operating results. The company believes these non-GAAP financial measures are a useful adjunct to ebitda because: | ||||||||||||
|
(i) |
Management uses adjusted ebitda to evaluate the company's operational trends and performance relative to other oil and natural gas producing companies. | ||||||||||||
|
(ii) |
Adjusted ebitda is more comparable to estimates provided by securities analysts. | ||||||||||||
|
(iii) |
Items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the company generally excludes information regarding these types of items. | ||||||||||||
|
Accordingly, adjusted EBITDA should not be considered as a substitute for net income, income from operations or cash flow provided by operating activities prepared in accordance with GAAP. | |||||||||||||
CHESAPEAKE ENERGY CORPORATION
RECONCILIATION OF PV-9 AND PV-10 TO STANDARDIZED MEASURE
($ in millions)
(unaudited)
PV-9 is a non-GAAP metric used in the determination of the value of collateral under Chesapeake's credit facility. PV-10 is a non-GAAP metric used by the industry, investors and analysts to estimate the present value, discounted at 10% per annum, of estimated future cash flows of the company's estimated proved reserves before income tax and asset retirement obligations. The following table shows the reconciliation of PV-9 and PV-10 to the company's standardized measure of discounted future net cash flows, the most directly comparable GAAP measure, for the year ended December 31, 2015 and for the interim period ended September 30, 2016. Management believes that PV-9 provides useful information to investors regarding the company's collateral position and that PV-10 provides useful information to investors because it is widely used by professional analysts and sophisticated investors in evaluating oil and natural gas companies. Because there are many unique factors that can impact an individual company when estimating the amount of future income taxes to be paid, management believes the use of a pre-tax measure is valuable for evaluating the company. Neither PV-9 nor PV-10 should be considered as an alternative to the standardized measure of discounted future net cash flows as computed under GAAP. With respect to PV-9 and PV-10 calculated as of an interim date, it is not practical to calculate taxes for the related interim period because GAAP does not provide for disclosure of standardized measure on an interim basis.
|
PV-9 – September 30, 2016 @ NYMEX Strip |
$ |
11,847 |
|
|
Less: Change in discount factor from 9 to 10 |
(743) |
||
|
PV-10 – September 30, 2016 @ NYMEX Strip |
11,104 |
||
|
Less: Change in pricing assumption from NYMEX Strip to SEC |
(7,284) |
||
|
PV-10 – September 30, 2016 @ SEC |
3,820 |
||
|
Plus: Change in PV-10 from 12/31/15 to 9/30/16 |
908 |
||
|
PV-10 – December 31, 2015 @ SEC |
4,728 |
||
|
Less: Present value of future income tax discounted at 10% |
(34) |
||
|
Standardized measure of discounted future cash flows – December 31, 2015 |
$ |
4,694 |
|
CHESAPEAKE ENERGY CORPORATION
MANAGEMENT'S OUTLOOK AS OF NOVEMBER 3, 2016
Chesapeake periodically provides guidance on certain factors that affect the company's future financial performance. Changes from the company's August 9, 2016 Outlook are italicized bold below.
|
Year Ending | ||||||
|
Adjusted Production Growth(a) |
0% to 3% | |||||
|
Absolute Production |
||||||
|
Liquids - mmbbls |
56 - 60 | |||||
|
Oil - mmbbls |
33 - 35 | |||||
|
NGL - mmbbls |
23 - 25 | |||||
|
Natural gas - bcf |
1,020 - 1,040 | |||||
|
Total absolute production - mmboe |
226 - 233 | |||||
|
Absolute daily rate - mboe |
617 - 637 | |||||
|
Estimated Realized Hedging Effects(b) (based on 11/1/16 strip prices): |
||||||
|
Oil - $/bbl |
$3.13 | |||||
|
Natural gas - $/mcf |
$0.16 | |||||
|
NGL - $/bbl |
($0.33) | |||||
|
Estimated Basis to NYMEX Prices: |
||||||
|
Oil - $/bbl |
$2.55 - $2.65 | |||||
|
Natural gas - $/mcf |
$0.35 - $0.45 | |||||
|
NGL - $/bbl |
$4.80 - $5.00 | |||||
|
Operating Costs per Boe of Projected Production: |
||||||
|
Production expense |
$3.00 - $3.20 | |||||
|
Gathering, processing and transportation expenses |
$7.60 - $8.10 | |||||
|
Oil - $/bbl |
$3.75 - $3.95 | |||||
|
Natural Gas - $/mcf |
$1.40 - $1.50 | |||||
|
NGL - $/bbl |
$7.60 - $7.85 | |||||
|
Production taxes |
$0.35 - $0.45 | |||||
|
General and administrative(c) |
$0.80 - $0.90 | |||||
|
Stock-based compensation (noncash) |
$0.10 - $0.20 | |||||
|
DD&A of natural gas and liquids assets |
$3.50 - $4.50 | |||||
|
Depreciation of other assets |
$0.40 - $0.50 | |||||
|
Interest expense(d) |
$1.20 - $1.30 | |||||
|
Marketing, gathering and compression net margin(e) |
$90 - $100 | |||||
|
Book Tax Rate |
0% | |||||
|
Capital Expenditures ($ in millions)(f) |
$1,400 - $1,500 | |||||
|
Capitalized Interest ($ in millions) |
$250 | |||||
|
Total Capital Expenditures ($ in millions) |
$1,650 - $1,750 | |||||
|
(a) |
Based on 2015 production of 550 mboe per day, adjusted for 2015 and 2016 sales. | |||||
|
(b) |
Includes expected settlements for commodity derivatives adjusted for option premiums. For derivatives closed early, settlements are reflected in the period of original contract expiration. | |||||
|
(c) |
Excludes expenses associated with stock-based compensation. | |||||
|
(d) |
Excludes unrealized gains (losses) on interest rate derivatives. | |||||
|
(e) |
Includes revenue and operating expenses. Excludes depreciation and amortization of other assets and unrealized gains (losses) on supply contract derivatives. | |||||
|
(f) |
Includes capital expenditures for drilling and completion, leasehold, geological and geophysical costs, rig termination payments and other property and plant and equipment. Excludes approximately $259 million for the repurchase of overriding royalty interests associated with the sale of certain of the company's properties and any additional proved property acquisitions. | |||||
CHESAPEAKE ENERGY CORPORATION
MANAGEMENT'S PRELIMINARY OUTLOOK FOR 2017 AS OF NOVEMBER 3, 2016
Chesapeake periodically provides guidance on certain factors that affect the company's future financial performance. Changes from the company's August 9, 2016 Outlook are italicized bold below.
|
Year Ending 12/31/2017 | ||||||
|
Adjusted Production Growth(a) |
(5%) to 0% | |||||
|
Absolute Production |
||||||
|
Liquids - mmbbls |
51 - 55 | |||||
|
Oil - mmbbls |
33 - 35 | |||||
|
NGL - mmbbls |
18 - 20 | |||||
|
Natural gas - bcf |
860 - 900 | |||||
|
Total absolute production - mmboe |
194 - 205 | |||||
|
Absolute daily rate - mboe |
532 - 562 | |||||
|
Operating Costs per Boe of Projected Production: |
||||||
|
Production expense, production taxes and general and administrative expenses(b) |
$4.00 - $4.50 | |||||
|
Gathering, processing and transportation expenses |
$7.00 - $7.50 | |||||
|
Oil - $/bbl |
$4.25 - $4.45 | |||||
|
Natural Gas - $/mcf |
$1.25 - $1.35 | |||||
|
NGL - $/bbl |
$8.10 - $8.30 | |||||
|
Marketing, gathering and compression net margin(c) |
($80) - ($60) | |||||
|
Capital Expenditures ($ in millions)(d) |
$1,600 - $2,400 | |||||
|
Capitalized Interest ($ in millions) |
$220 | |||||
|
Total Capital Expenditures ($ in millions) |
$1,820 - $2,620 | |||||
|
(a) |
Based on 2016 production of 548 mboe per day, adjusted for 2016 sales. | |||||
|
(b) |
Includes expenses associated with stock-based compensation. | |||||
|
(c) |
Includes revenue and operating expenses. Excludes depreciation and amortization of other assets. | |||||
|
(d) |
Includes capital expenditures for drilling and completion, leasehold, geological and geophysical costs, rig termination payments and other property and plant and equipment. | |||||
Oil, Natural Gas and Natural Gas Liquids Hedging Activities
Chesapeake enters into commodity derivative transactions in order to mitigate a portion of its exposure to adverse changes in market prices. Please see the quarterly reports on Form 10-Q and annual reports on Form 10-K filed by Chesapeake with the SEC for detailed information about derivative instruments the company uses, its quarter-end derivative positions and accounting for oil, natural gas and natural gas liquids derivatives.
As of November 1, 2016, the company had downside protection, through open swaps, on a portion of its remaining 2016 oil production at an average price of $46.84 per bbl. The company had downside price protection, through open swaps and two-way collars, on a portion of its remaining 2016 natural gas production at an average price of $2.86 per mcf. Chesapeake also had downside price protection, through open swaps, on a portion of its remaining 2016 ethane and propane production at an average price of $0.17 per gallon and $0.46 per gallon, respectively. In addition, the company had downside protection, through open swaps, on a portion of its 2017 oil production at an average price of $49.68 per bbl. The company had downside price protection, through open swaps and two-way collars, on a portion of its 2017 natural gas production at an average price of $3.07 per mcf.
The company's crude oil hedging positions as of November 1, 2016 were as follows:
|
Open Crude Oil Swaps; Gains from Closed | |||||||||
|
Crude Oil Trades and Call Option Premiums | |||||||||
|
Open Swaps (mbbls) |
Avg. NYMEX Price of Open Swaps |
Total Gains from Closed Trades and Premiums for Call Options ($ in millions) | |||||||
|
Q4 2016 (a) |
6,072 |
$ |
46.84 |
$ |
10 |
||||
|
Q1 2017 |
4,500 |
$ |
49.47 |
$ |
22 |
||||
|
Q2 2017 |
4,550 |
$ |
49.61 |
23 |
|||||
|
Q3 2017 |
4,232 |
$ |
49.77 |
23 |
|||||
|
Q4 2017 |
4,232 |
$ |
49.89 |
23 |
|||||
|
Total 2017 |
17,514 |
$ |
49.68 |
$ |
91 |
||||
|
Total 2018 – 2022 |
$ |
(13) |
|||||||
|
(a) |
Certain hedging arrangements include a sold option to extend at an average price of $53.67 per bbl covering 0.7 mmbbls in 2016. Sold options are included with net written call options. | ||||||||
|
Crude Oil Net Written Call Options | ||||
|
Call Options (mbbls) |
Avg. NYMEX Strike Price | |||
|
Q4 2016 |
3,489 |
$ |
87.25 |
|
|
Q1 2017 |
1,305 |
$ |
83.50 |
|
|
Q2 2017 |
1,320 |
$ |
83.50 |
|
|
Q3 2017 |
1,334 |
$ |
83.50 |
|
|
Q4 2017 |
1,334 |
$ |
83.50 |
|
|
Total 2017 |
5,293 |
$ |
83.50 |
|
The company's natural gas hedging positions as of November 1, 2016 were as follows:
|
Open Natural Gas Swaps; Losses from Closed | |||||||||
|
Natural Gas Trades and Call Option Premiums | |||||||||
|
Open Swaps (bcf) |
Avg. NYMEX Price of Open Swaps |
Total Losses from Closed Trades and Premiums for Call Options ($ in millions) | |||||||
|
Q4 2016 (a) |
155 |
$ |
2.85 |
$ |
(28) |
||||
|
Q1 2017 |
134 |
$ |
3.23 |
$ |
(3) |
||||
|
Q2 2017 |
135 |
$ |
2.95 |
(1) |
|||||
|
Q3 2017 |
136 |
$ |
3.00 |
(2) |
|||||
|
Q4 2017 |
129 |
$ |
3.10 |
(3) |
|||||
|
Total 2017 |
534 |
$ |
3.07 |
$ |
(9) |
||||
|
Total 2018 – 2022 |
51 |
$ |
2.97 |
$ |
(69) |
||||
|
(a) |
Certain hedging arrangements include a sold option to extend at an average price of $2.80 per mmbtu covering 26 bcf in 2016. Sold options are included with net written call options. | ||||||||
|
Natural Gas Two-Way Collars | |||||||
|
Open Collars (bcf) |
Avg. NYMEX Bought Put Price |
Avg. NYMEX Sold Call Price | |||||
|
Q4 2016 |
15 |
$ |
3.00 |
$ |
3.48 |
||
|
Q1 2017 |
23 |
$ |
3.00 |
$ |
3.48 |
||
|
Natural Gas Net Written Call Options | ||||
|
Call Options (bcf) |
Avg. NYMEX Strike Price | |||
|
Q4 2016 |
46 |
$ |
5.27 |
|
|
Q1 2017 |
12 |
$ |
9.43 |
|
|
Q2 2017 |
12 |
$ |
9.43 |
|
|
Q3 2017 |
12 |
$ |
9.43 |
|
|
Q4 2017 |
12 |
$ |
9.43 |
|
|
Total 2017 |
48 |
$ |
9.43 |
|
|
Total 2018 – 2022 |
66 |
$ |
12.00 |
|
|
Natural Gas Basis Protection Swaps | ||||
|
Volume (bcf) |
Avg. NYMEX plus/(minus) | |||
|
Q4 2016 |
12 |
$ |
0.05 |
|
|
Q1 2017 |
13 |
$ |
0.35 |
|
|
Q2 2017 |
6 |
$ |
(0.46) |
|
|
Q3 2017 |
6 |
$ |
(0.46) |
|
|
Q4 2017 |
6 |
$ |
(0.46) |
|
|
Total 2017 |
31 |
$ |
(0.11) |
|
|
Total 2018 - 2022 |
1 |
$ |
(0.98) |
|
The company's natural gas liquids hedging positions as of November 1, 2016 were as follows:
|
Open Ethane Swaps | ||||
|
Volume (mmgal) |
Avg. NYMEX Price of Open Swaps | |||
|
Q4 2016 |
20 |
$ |
0.17 |
|
|
Open Propane Swaps | ||||
|
Volume (mmgal) |
Avg. NYMEX Price of Open Swaps | |||
|
Q4 2016 |
17 |
$ |
0.46 |
|
SOURCE Chesapeake Energy Corporation
Article Date
11/3/2016Projects & Assets
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