Mr. Wil Saqueton reports
TRANSATLANTIC PETROLEUM ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR-END 2012
TransAtlantic Petroleum Ltd. has released its financial results for the quarter and year ended Dec. 31, 2012.
Filing delay summary
On March 18, 2013, the company announced that it needed additional time to file its annual report on Form 10-K for the year ended Dec. 31, 2012, due to its discovery of prior-period errors related to the allocation of well costs to the company's depletion schedules during the years 2009, 2010 and 2011 and the need to determine the impact of these errors on prior- and current-period financial statements. On April 2, 2013, the company announced that it had hired Pt Platinum Consulting LLC to provide staff augmentation resources to assist the company in reviewing certain accounting items and completing the remaining work needed to file the Form 10-K.
During the fourth quarter of 2012, the company completed its analysis and discovered errors related to prior periods that consisted mainly of overstatements of depreciation, depletion and amortization expense of approximately $4.7-million and deferred income tax expense of $1.5-million that were offset by understatements of exploration, abandonment and impairment expense of $4.5-million and unrealized foreign exchange loss of $2.0-million during the years ended Dec. 31, 2011, 2010 and 2009. The overall impact of these errors was not material to the prior-period-issued financial statements or to the financial statements for the year ended Dec. 31, 2012.
Fourth quarter financial results summary
Total revenues for the quarter ended Dec. 31, 2012, were $38.0-million, as compared with $34.8-million for the quarter ended Dec. 31, 2011.
Net loss for the quarter ended Dec. 31, 2012, was $12.2-million, as compared with a net loss of $71.7-million for the quarter ended Dec. 31, 2011.
Net loss from continuing operations for the quarter ended Dec. 31, 2012, was $13.9-million, as compared with a net loss from continuing operations of $59.0-million for the quarter ended Dec. 31, 2011.
Adjusted earnings before interest, taxes, depreciation and amortization from continuing operations for the quarter ended Dec. 31, 2012, were $22.2-million, as compared with $17.6-million for the quarter ended Dec. 31, 2011. Adjusted EBITDA is a non-generally accepted accounting principles financial measure that is defined and reconciled to net income later in this press release.
The fourth quarter of 2012 results were impacted by $28.2-million of impairment expense primarily related to dry holes on two high-risk exploration wells (Konak-1 and Durukoy-1) and impairment on several unproved natural gas properties. Additionally, the impact of the prior-period errors resulted in a decrease in the company's net loss for the fourth quarter of 2012 of approximately $3.6-million.
Year-end financial results summary
For the year ended Dec. 31, 2012, total revenues were $143.9-million, as compared with total revenues of $128.9-million for the year ended Dec. 31, 2011.
Net income for the year ended Dec. 31, 2012, totalled $16.2-million, as compared with a net loss of $120.9-million for the year ended Dec. 31, 2011.
Net loss from continuing operations for the year ended Dec. 31, 2012, was $6.4-million, as compared with a net loss from continuing operations of $77.6-million for the year ended Dec. 31, 2011.
Adjusted EBITDA from continuing operations for the year ended Dec. 31, 2012, was $87.4-million, as compared with $66.0-million for the year ended Dec. 31, 2011.
At Dec. 31, 2012, TransAtlantic had $14.8-million in cash and cash equivalents and $32.8-million in long-term debt.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(U.S. dollars in thousands, except per-share amounts)
For the three months For the 12 months
ended Dec. 31, ended Dec. 31,
2012 2011 2012 2011
(as adjusted) (as adjusted)
Revenues
Oil and natural gas sales $34,953 $33,055 $134,113 $124,162
Sales of purchased natural gas 2,336 1,255 7,882 2,668
Other 705 489 1,913 2,075
Total revenues 37,994 34,799 143,908 128,905
Costs and expenses
Production 5,334 6,439 17,804 18,475
Exploration, abandonment and impairment 28,210 45,165 39,993 60,952
Costs of purchased natural gas 2,196 1,177 7,694 2,645
Seismic and other exploration 2,639 3,743 5,040 11,542
Revaluation of contingent consideration -- 4,750 -- 6,000
General and administrative 8,646 8,791 33,947 36,305
Depreciation, depletion and amortization 1,517 16,395 28,215 39,008
Accretion of asset retirement obligation 131 249 710 1,142
Total costs and expenses 48,673 86,709 133,403 176,069
Operating (loss) income (10,679) (51,910) 10,505 (47,164)
Other (expense) income
Interest and other expense (1,977) (3,194) (8,340) (13,665)
Interest and other income 917 151 2,418 1,089
(Loss) on commodity derivative contracts (271) (5,729) (5,548) (8,426)
Foreign exchange (loss) gain (1,983) (2,767) 1,083 (11,973)
Total other expense (3,314) (11,539) (10,387) (32,975)
(Loss) income from continuing operations
before income taxes (13,993) (63,449) 118 (80,139)
Current income tax (expense) benefit (792) 306 (4,674) (2,386)
Deferred income tax benefit (expense) 843 4,178 (1,817) 4,951
Net (loss) from continuing operations (13,942) (58,965) (6,373) (77,574)
Net income (loss) from discontinued
operations, net of taxes 1,715 (12,774) 22,619 (43,369)
Net (loss) income (12,227) (71,739) 16,246 (120,943)
Other comprehensive income (loss) 4,574 (3,396) 22,224 (52,069)
Comprehensive (loss) income $(7,653) $(75,135) $38,470 $(173,012)
Basic and diluted net (loss) per common share
From continuing operations $(0.04) $(0.16) $(0.02) $(0.22)
From discontinued operations $0.00 $(0.03) $0.06 $(0.12)
We seek Safe Harbor.
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