HAMILTON, Bermuda, May 15, 2013 (GLOBE NEWSWIRE) -- TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE-MKT:TAT) (the "Company" or "TransAtlantic") today reported its financial results for the quarter and year ended December 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 December 31, 2012 (the "Form 10-K") 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 December 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 December 31, 2012.
Fourth Quarter Financial Results Summary
Total revenues for the quarter ended December 31, 2012 were $38.0 million, as compared to $34.8 million for the quarter ended December 31, 2011.
Net loss for the quarter ended December 31, 2012 was $12.2 million, as compared to a net loss of $71.7 million for the quarter ended December 31, 2011.
Net loss from continuing operations for the quarter ended December 31, 2012 was $13.9 million, as compared to a net loss from continuing operations of $59.0 million for the quarter ended December 31, 2011.
Adjusted EBITDAX from continuing operations for the quarter ended December 31, 2012 was $22.2 million, as compared to $17.6 million for the quarter ended December 31, 2011. Adjusted EBITDAX is a non-GAAP 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 our net loss for the fourth quarter of 2012 of approximately $3.6 million.
Year-End Financial Results Summary
For the year ended December 31, 2012, total revenues were $143.9 million, as compared to total revenues of $128.9 million for the year ended December 31, 2011.
Net income for the year ended December 31, 2012 totaled $16.2 million, as compared to a net loss of $120.9 million for the year ended December 31, 2011.
Net loss from continuing operations for the year ended December 31, 2012 was $6.4 million, as compared to a net loss from continuing operations of $77.6 million for the year ended December 31, 2011.
Adjusted EBITDAX from continuing operations for the year ended December 31, 2012 was $87.4 million, as compared to $66.0 million for the year ended December 31, 2011.
At December 31, 2012, TransAtlantic had $14.8 million in cash and cash equivalents and $32.8 million in long-term debt.
|
|
|
|
| TransAtlantic Petroleum Ltd. |
| Consolidated Statements of Comprehensive Income (Loss) |
| |
|
| For the Three Months Ended Dec. 31, | For the Twelve Months Ended Dec. 31, |
| (U.S. Dollars and shares in thousands, except per share amounts) | 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 in |
(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) |
|
Basic weighted average number of shares outstanding |
368,708 |
365,729 |
367,415 |
355,971 |
|
Diluted weighted average number of shares outstanding |
368,708 |
365,729 |
367,415 |
355,971 |
|
|
|
|
| TransAtlantic Petroleum Ltd. |
| Summary Consolidated Statements of Cash Flows |
| |
|
| For the Twelve Months Ended |
| (U.S. Dollars in thousands) | Dec. 31, 2012 | Dec. 31, 2011 |
|
|
|
(as adjusted) |
|
Net cash provided by operating activities from continuing operations |
$51,970 |
$51,007 |
|
Net cash used in investing activities from continuing operations |
(52,532) |
(66,976) |
|
Net cash provided by (used in) financing activities from continuing operations |
(125,697) |
18,455 |
|
Net cash provided by (used in) discontinued operations |
125,331 |
(20,431) |
|
Effect of exchange rate changes on cash and cash equivalents |
580 |
(1,615) |
|
Net decrease in cash and cash equivalents |
$(348) |
$(19,560) |
|
|
|
|
| TransAtlantic Petroleum Ltd. |
| Summary Consolidated Balance Sheets |
| |
|
| As of |
| (U.S. Dollars in thousands) | December 31, 2012 | December 31, 2011 |
|
ASSETS |
|
(as adjusted) |
|
Current assets: |
|
|
|
Cash and cash equivalents |
$14,768 |
$15,116 |
|
Accounts receivable |
52,769 |
51,636 |
|
Prepaid and other current assets |
2,339 |
4,142 |
|
Deferred income taxes |
1,895 |
2,124 |
|
Assets held for sale |
1,619 |
127,168 |
|
Total current assets |
73,390 |
200,186 |
|
Property and equipment, net |
256,152 |
235,429 |
|
Other |
28,716 |
13,187 |
|
Total assets |
$358,258 |
$448,802 |
|
|
|
|
|
LIABILITIES & SHAREHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$28,779 |
$26,178 |
|
Short term debt |
-- |
80,732 |
|
Accrued liabilities and other |
30,509 |
28,135 |
|
Derivative liabilities |
3,908 |
3,716 |
|
Liabilities held for sale |
8,416 |
25,864 |
|
Total current liabilities |
71,612 |
164,625 |
|
Total liabilities |
144,431 |
277,529 |
|
Total shareholders' equity |
213,827 |
171,273 |
|
Total liabilities and shareholders' equity |
$358,258 |
$448,802 |
|
|
| Reconciliation of Net Loss to Adjusted EBITDAX |
| |
|
| For the Three Months Ended December 31, | For the Twelve Months Ended December 31, |
| (U.S. Dollars in thousands) | 2012 | 2011 | 2012 | 2011 |
|
|
|
(as adjusted) |
|
(as adjusted) |
|
Net loss from continuing operations |
$(13,942) |
$(58,965) |
$(6,373) |
$(77,574) |
|
Adjustments: |
|
|
|
|
|
Interest and other, net |
1,060 |
3,043 |
5,922 |
12,576 |
|
Income tax (benefit) expense |
(51) |
(4,484) |
6,491 |
(2,565) |
|
Exploration, abandonment, and impairment |
28,210 |
45,165 |
39,993 |
60,952 |
|
Seismic and other exploration |
2,391 |
1,897 |
4,291 |
7,572 |
|
Foreign exchange loss (gain) |
1,983 |
2,767 |
(1,083) |
11,973 |
|
Share-based compensation |
1,053 |
333 |
2,559 |
1,679 |
|
Unrealized derivative (gain) loss |
(458) |
4,791 |
1,719 |
3,572 |
|
Accretion of asset retirement obligation |
131 |
249 |
710 |
1,142 |
|
Depreciation, depletion, and amortization |
1,517 |
16,395 |
28,215 |
39,008 |
|
Revaluation of contingent consideration |
-- |
4,750 |
-- |
6,000 |
|
Other |
311 |
1,688 |
4,960 |
1,688 |
|
Adjusted EBITDAX from continuing operations |
$22,205 |
$17,629 |
$87,404 |
$66,023 |
Adjusted EBITDAX is a non-GAAP financial measure that represents earnings from continuing operations before income taxes, interest, depreciation, depletion, amortization, impairment, abandonment, and exploration expenses, unrealized derivative losses and non-cash share-based compensation expense.
The Company believes Adjusted EBITDAX assists management and investors in comparing the Company's performance and ability to fund capital expenditures and working capital requirements on a consistent basis without regard to depreciation, depletion and amortization, impairment of natural gas and oil properties, exploration expenses, and other non-cash charges which can vary significantly from period to period. In addition, management uses Adjusted EBITDAX as a financial measure to evaluate the Company's operating performance. Adjusted EBITDAX is also widely used by investors and rating agencies.
Adjusted EBITDAX 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. Net income, income from operations, or cash flow provided by operating activities may vary materially from Adjusted EBITDAX. Investors should carefully consider the specific items included in the computation of Adjusted EBITDAX. The Company has disclosed Adjusted EBITDAX to permit a comparative analysis of its operating performance and debt servicing ability relative to other companies.
About TransAtlantic
TransAtlantic Petroleum Ltd. is an international energy company engaged in the acquisition, development, exploration and production of oil and natural gas. The Company holds interests in developed and undeveloped oil and natural gas properties in Turkey and Bulgaria.
(NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)
Forward-Looking Statements
This news release contains statements regarding expectations, plans, goals, objectives, assumptions or information about future events, conditions, results of operations or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, the ability of the Company to continue to develop and exploit attractive foreign initiatives.
Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include but are not limited to market prices for natural gas, natural gas liquids and oil products; estimates of reserves and economic assumptions; the ability to produce and transport natural gas, natural gas liquids and oil; the results of exploration and development drilling and related activities; economic conditions in the countries and provinces in which the Company carries on business, especially economic slowdowns; actions by governmental authorities, receipt of required approvals, increases in taxes, legislative and regulatory initiatives relating to fracture stimulation activities, changes in environmental and other regulations, and renegotiations of contracts; political uncertainty, including actions by insurgent groups or other conflict; the negotiation and closing of material contracts; shortages of drilling rigs, equipment or oilfield services.
The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
CONTACT: Wil Saqueton
VP & CFO
(214) 220-4323
http://www.transatlanticpetroleum.com
16803 Dallas Parkway, Suite 200
Addison, Texas 75001
© 2026 Canjex Publishing Ltd. All rights reserved.