Delaware
(State or other jurisdiction of
incorporation or organization)
|
|
46-5670947
(I.R.S. Employer
Identification No.)
|
|
|
|
9200 Oakdale Avenue, Suite 900
Los Angeles, California
(Address of principal executive offices)
|
|
91311
(Zip Code)
|
Shares of common stock outstanding as of June 30, 2016
|
41,100,276
|
|
Page
|
|
Part I
|
|
|
|
|
|
Item 1
|
Financial Statements (unaudited)
|
|
|
Consolidated Condensed Balance Sheets
|
|
|
Consolidated Condensed Statements of Operations
|
|
|
Consolidated Condensed Statements of Comprehensive Loss
|
|
|
Consolidated Condensed Statements of Cash Flows
|
|
|
Notes to Consolidated Condensed Financial Statements
|
|
Item 2
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
The Separation and Spin-off
|
|
|
Business Environment and Industry Outlook
|
|
|
Seasonality
|
|
|
Income Taxes
|
|
|
Operations
|
|
|
Fixed and Variable Costs
|
|
|
Financial and Operating Results
|
|
|
Recent Developments
|
|
|
Balance Sheet Analysis
|
|
|
Statement of Operations Analysis
|
|
|
Liquidity and Capital Resources
|
|
|
Cash Flow Analysis
|
|
|
2016 Capital Program
|
|
|
Subsequent Events
|
|
|
Lawsuits, Claims, Contingencies and Commitments
|
|
|
Significant Accounting and Disclosure Changes
|
|
|
Safe Harbor Statement Regarding Outlook and Forward-Looking Information
|
|
Item 3
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
Item 4
|
Controls and Procedures
|
|
|
|
|
Part II
|
|
|
|
|
|
Item 1
|
Legal Proceedings
|
|
Item 1A
|
Risk Factors
|
|
Item 5
|
Other Disclosures
|
|
Item 6
|
Exhibits
|
Item 1.
|
Financial Statements (unaudited)
|
|
June 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
|
|
|
|
||||
CURRENT ASSETS
|
|
|
|
||||
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2
|
|
|
$
|
12
|
|
Trade receivables, net
|
195
|
|
|
200
|
|
||
Inventories
|
62
|
|
|
58
|
|
||
Other current assets
|
127
|
|
|
227
|
|
||
Total current assets
|
386
|
|
|
497
|
|
||
|
|
|
|
||||
PROPERTY, PLANT AND EQUIPMENT
|
20,887
|
|
|
20,996
|
|
||
Accumulated depreciation, depletion and amortization
|
(14,814
|
)
|
|
(14,684
|
)
|
||
Total property, plant and equipment
|
6,073
|
|
|
6,312
|
|
||
|
|
|
|
||||
OTHER ASSETS
|
17
|
|
|
244
|
|
||
|
|
|
|
||||
TOTAL ASSETS
|
$
|
6,476
|
|
|
$
|
7,053
|
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
||||
|
|
|
|
||||
Current maturities of long-term debt
|
$
|
99
|
|
|
$
|
100
|
|
Accounts payable
|
187
|
|
|
257
|
|
||
Accrued liabilities
|
306
|
|
|
222
|
|
||
Current income taxes
|
—
|
|
|
26
|
|
||
Total current liabilities
|
592
|
|
|
605
|
|
||
|
|
|
|
||||
LONG-TERM DEBT - PRINCIPAL AMOUNT
|
5,843
|
|
|
6,043
|
|
||
|
|
|
|
||||
DEFERRED GAIN AND ISSUANCE COSTS, NET
|
456
|
|
|
491
|
|
||
|
|
|
|
||||
DEFERRED INCOME TAXES
|
45
|
|
|
—
|
|
||
|
|
|
|
||||
OTHER LONG-TERM LIABILITIES
|
585
|
|
|
830
|
|
||
|
|
|
|
||||
EQUITY
|
|
|
|
||||
|
|
|
|
||||
Preferred stock (20 million shares authorized at $0.01 par value) no shares outstanding at June 30, 2016 and December 31, 2015
|
—
|
|
|
—
|
|
||
Common stock (200 million shares authorized at $0.01 par value) outstanding shares (June 30, 2016 - 41,100,276 and December 31, 2015 - 38,818,048)
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
4,837
|
|
|
4,782
|
|
||
Accumulated deficit
|
(5,873
|
)
|
|
(5,683
|
)
|
||
Accumulated other comprehensive loss
|
(9
|
)
|
|
(15
|
)
|
||
|
|
|
|
||||
Total equity
|
(1,045
|
)
|
|
(916
|
)
|
||
|
|
|
|
||||
TOTAL LIABILITIES AND EQUITY
|
$
|
6,476
|
|
|
$
|
7,053
|
|
|
|
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
REVENUES AND OTHER
|
|
|
|
|
|
|
|
||||||||
Oil and natural gas net sales
|
$
|
404
|
|
|
$
|
621
|
|
|
$
|
733
|
|
|
$
|
1,167
|
|
Net derivative losses
|
(118
|
)
|
|
(17
|
)
|
|
(143
|
)
|
|
(18
|
)
|
||||
Other revenue
|
31
|
|
|
30
|
|
|
49
|
|
|
62
|
|
||||
Total revenues and other
|
317
|
|
|
634
|
|
|
639
|
|
|
1,211
|
|
||||
|
|
|
|
|
|
|
|
||||||||
COSTS AND OTHER
|
|
|
|
|
|
|
|
||||||||
Production costs
|
188
|
|
|
242
|
|
|
372
|
|
|
484
|
|
||||
General and administrative expenses
|
61
|
|
|
85
|
|
|
128
|
|
|
161
|
|
||||
Depreciation, depletion and amortization
|
138
|
|
|
251
|
|
|
285
|
|
|
504
|
|
||||
Taxes other than on income
|
42
|
|
|
53
|
|
|
81
|
|
|
108
|
|
||||
Exploration expense
|
5
|
|
|
7
|
|
|
10
|
|
|
24
|
|
||||
Interest and debt expense, net
|
74
|
|
|
83
|
|
|
148
|
|
|
162
|
|
||||
Other (income) expenses, net
|
(51
|
)
|
|
27
|
|
|
(117
|
)
|
|
51
|
|
||||
Total costs and other
|
457
|
|
|
748
|
|
|
907
|
|
|
1,494
|
|
||||
|
|
|
|
|
|
|
|
||||||||
LOSS BEFORE INCOME TAXES
|
(140
|
)
|
|
(114
|
)
|
|
(268
|
)
|
|
(283
|
)
|
||||
Income tax benefit
|
—
|
|
|
46
|
|
|
78
|
|
|
115
|
|
||||
NET LOSS
|
$
|
(140
|
)
|
|
$
|
(68
|
)
|
|
$
|
(190
|
)
|
|
$
|
(168
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net loss per share of common stock
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(3.51
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(4.85
|
)
|
|
$
|
(4.40
|
)
|
Diluted
|
$
|
(3.51
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(4.85
|
)
|
|
$
|
(4.40
|
)
|
|
|
|
|
|
|
|
|
||||||||
Dividends per common share
|
$
|
—
|
|
|
$
|
0.01
|
|
|
$
|
—
|
|
|
$
|
0.02
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net loss
|
$
|
(140
|
)
|
|
$
|
(68
|
)
|
|
$
|
(190
|
)
|
|
$
|
(168
|
)
|
Other comprehensive income (loss) items:
|
|
|
|
|
|
|
|
||||||||
Pension and postretirement losses
(a)
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||
Reclassification to income of realized losses on pension and postretirement
(b)
|
3
|
|
|
5
|
|
|
6
|
|
|
5
|
|
||||
Other comprehensive income (loss), net of tax
|
3
|
|
|
2
|
|
|
6
|
|
|
2
|
|
||||
Comprehensive loss
|
$
|
(137
|
)
|
|
$
|
(66
|
)
|
|
$
|
(184
|
)
|
|
$
|
(166
|
)
|
(a)
|
No associated tax for the three and six months ended
June 30, 2016
. Net of tax of
$2 million
for the three and six months ended June 30, 2015. See Note 9, Retirement and Postretirement Benefit Plans, for additional information.
|
(b)
|
No associated tax for the three and six months ended
June 30, 2016
. Net of tax of
$(3) million
for the three and six months ended June 30, 2015, respectively. See Note 9, Retirement and Postretirement Benefit Plans, for additional information.
|
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
CASH FLOW FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net loss
|
$
|
(190
|
)
|
|
$
|
(168
|
)
|
Adjustments to reconcile net loss to net cash provided by
operating activities:
|
|
|
|
||||
Depreciation, depletion and amortization
|
285
|
|
|
504
|
|
||
Deferred income tax expense (benefit)
|
(78
|
)
|
|
(115
|
)
|
||
Net derivative losses
|
143
|
|
|
18
|
|
||
Proceeds from settled derivatives
|
75
|
|
|
2
|
|
||
Other non-cash (gains) losses in income, net
|
(150
|
)
|
|
54
|
|
||
Dry hole expenses
|
—
|
|
|
7
|
|
||
Changes in operating assets and liabilities, net
|
(41
|
)
|
|
(70
|
)
|
||
Net cash provided by operating activities
|
44
|
|
|
232
|
|
||
|
|
|
|
||||
CASH FLOW FROM INVESTING ACTIVITIES
|
|
|
|
||||
Capital investments
|
(26
|
)
|
|
(228
|
)
|
||
Changes in capital investment accruals
|
(11
|
)
|
|
(203
|
)
|
||
Asset divestitures
|
19
|
|
|
—
|
|
||
Acquisitions and other
|
—
|
|
|
(9
|
)
|
||
Net cash used by investing activities
|
(18
|
)
|
|
(440
|
)
|
||
|
|
|
|
||||
CASH FLOW FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from revolving credit facility
|
743
|
|
|
1,164
|
|
||
Repayments of revolving credit facility
|
(701
|
)
|
|
(934
|
)
|
||
Payments on long-term debt
|
(61
|
)
|
|
—
|
|
||
Debt repurchase and amendment costs
|
(20
|
)
|
|
—
|
|
||
Issuance of common stock
|
3
|
|
|
5
|
|
||
Cash dividends paid
|
—
|
|
|
(4
|
)
|
||
Net cash (used) provided by financing activities
|
(36
|
)
|
|
231
|
|
||
(Decrease) increase in cash and cash equivalents
|
(10
|
)
|
|
23
|
|
||
Cash and cash equivalents—beginning of period
|
12
|
|
|
14
|
|
||
Cash and cash equivalents—end of period
|
$
|
2
|
|
|
$
|
37
|
|
NOTE 2
|
ACCOUNTING AND DISCLOSURE CHANGES
|
NOTE 3
|
OTHER INFORMATION
|
|
June 30,
2016
|
|
December 31,
2015
|
||||
|
(in millions)
|
||||||
Materials and supplies
|
$
|
58
|
|
|
$
|
55
|
|
Finished goods
|
4
|
|
|
3
|
|
||
Total
|
$
|
62
|
|
|
$
|
58
|
|
|
June 30,
2016
|
|
December 31,
2015
|
||||
|
(in millions)
|
||||||
Secured First Lien Bank Debt
|
|
|
|
||||
Revolving Credit Facility
|
$
|
781
|
|
|
$
|
739
|
|
Term Loan Facility
|
939
|
|
|
1,000
|
|
||
Senior Secured Second Lien Notes
|
|
|
|
||||
8% Notes Due 2022
|
2,250
|
|
|
2,250
|
|
||
Senior Unsecured Notes
|
|
|
|
||||
5% Notes Due 2020
|
392
|
|
|
433
|
|
||
5 ½% Notes Due 2021
|
755
|
|
|
829
|
|
||
6% Notes Due 2024
|
825
|
|
|
892
|
|
||
Total Debt - Principal Amount
|
5,942
|
|
|
6,143
|
|
||
Less Current Maturities of Long-Term Debt
|
(99
|
)
|
|
(100
|
)
|
||
Long-Term Debt - Principal Amount
|
$
|
5,843
|
|
|
$
|
6,043
|
|
|
2016
|
|
2017
|
|
2018
|
||||||||||
|
Q3
|
|
Q4
|
|
Q1 - Q4
|
|
Q1 - Q4
|
||||||||
Crude Oil
|
|
|
|
|
|
|
|
||||||||
Calls:
|
|
|
|
|
|
|
|
||||||||
Barrels per day
|
19,000
|
|
|
25,000
|
|
|
12,200
|
|
|
23,300
|
|
||||
Weighted-average price per barrel
|
$
|
55.08
|
|
|
$
|
53.62
|
|
|
$
|
55.91
|
|
|
$
|
57.99
|
|
|
|
|
|
|
|
|
|
||||||||
Puts:
|
|
|
|
|
|
|
|
||||||||
Barrels per day
|
28,000
|
|
|
3,000
|
|
|
4,300
|
|
|
—
|
|
||||
Weighted-average price per barrel
|
$
|
50.65
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Swaps:
|
|
|
|
|
|
|
|
||||||||
Barrels per day
|
1,000
|
|
|
29,000
|
|
|
—
|
|
|
—
|
|
||||
Weighted-average price per barrel
|
$
|
61.25
|
|
|
$
|
49.43
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Gas
|
|
|
|
|
|
|
|
||||||||
Swaps:
|
|
|
|
|
|
|
|
||||||||
Millions British Thermal Units (MMBTU) per day
|
330
|
|
|
5,500
|
|
|
—
|
|
|
—
|
|
||||
Weighted-average price per MMBTU
|
$
|
3.13
|
|
|
$
|
3.50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Forward Contracts:
|
|
|
|
|
|
|
|
||||||||
MMBTU per day
|
—
|
|
|
—
|
|
|
6,200
|
|
|
—
|
|
||||
Weighted-average price per MMBTU
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.53
|
|
|
$
|
—
|
|
|
June 30, 2016
|
||||||||||||
|
Balance Sheet Classification
|
|
Gross Amounts Recognized at Fair Value
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Fair Value Presented in the Balance Sheet
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Commodity Contracts
|
Other current assets
|
|
$
|
66
|
|
|
$
|
(48
|
)
|
|
$
|
18
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
||||||
Commodity Contracts
|
Accrued liabilities
|
|
(52
|
)
|
|
26
|
|
|
(26
|
)
|
|||
Commodity Contracts
|
Other long-term liabilities
|
|
(95
|
)
|
|
22
|
|
|
(73
|
)
|
|||
Total derivatives
|
|
|
$
|
(81
|
)
|
|
$
|
—
|
|
|
$
|
(81
|
)
|
|
December 31, 2015
|
||||||||||||
|
Balance Sheet Classification
|
|
Gross Amounts Recognized at Fair Value
|
|
Gross Amounts Offset in the Balance Sheet
|
|
Net Fair Value Presented in the Balance Sheet
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Commodity Contracts
|
Other current assets
|
|
$
|
87
|
|
|
$
|
—
|
|
|
$
|
87
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
||||||
Commodity Contracts
|
Accrued liabilities
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Total derivatives
|
|
|
$
|
86
|
|
|
$
|
—
|
|
|
$
|
86
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions, except per-share amounts)
|
||||||||||||||
Basic EPS calculation
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(140
|
)
|
|
$
|
(68
|
)
|
|
$
|
(190
|
)
|
|
$
|
(168
|
)
|
Net loss allocated to participating securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net loss available to common stockholders
|
$
|
(140
|
)
|
|
$
|
(68
|
)
|
|
$
|
(190
|
)
|
|
$
|
(168
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding - basic
|
39.9
|
|
|
38.3
|
|
|
39.2
|
|
|
38.2
|
|
||||
Basic EPS
|
$
|
(3.51
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(4.85
|
)
|
|
$
|
(4.40
|
)
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS calculation
|
|
|
|
|
|
|
|
||||||||
Net loss
|
$
|
(140
|
)
|
|
$
|
(68
|
)
|
|
$
|
(190
|
)
|
|
$
|
(168
|
)
|
Net loss allocated to participating securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net loss available to common stockholders
|
$
|
(140
|
)
|
|
$
|
(68
|
)
|
|
$
|
(190
|
)
|
|
$
|
(168
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding - basic
|
39.9
|
|
|
38.3
|
|
|
39.2
|
|
|
38.2
|
|
||||
Dilutive effect of potentially dilutive securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted-average common shares outstanding - diluted
|
39.9
|
|
|
38.3
|
|
|
39.2
|
|
|
38.2
|
|
||||
Diluted EPS
|
$
|
(3.51
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(4.85
|
)
|
|
$
|
(4.40
|
)
|
|
Three months ended June 30,
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
|
Pension
Benefit |
|
Postretirement
Benefit |
|
Pension
Benefit |
|
Postretirement
Benefit |
||||||||
|
(in millions)
|
||||||||||||||
Service cost
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Interest cost
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Expected return on plan assets
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Recognized actuarial loss
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Settlement loss
|
3
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Total
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
10
|
|
|
$
|
2
|
|
|
Six months ended June 30,
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
|
Pension
Benefit |
|
Postretirement
Benefit |
|
Pension
Benefit |
|
Postretirement
Benefit |
||||||||
|
(in millions)
|
||||||||||||||
Service cost
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Interest cost
|
1
|
|
|
2
|
|
|
2
|
|
|
2
|
|
||||
Expected return on plan assets
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Recognized actuarial loss
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Settlement loss
|
6
|
|
|
—
|
|
|
8
|
|
|
—
|
|
||||
Total
|
$
|
7
|
|
|
$
|
4
|
|
|
$
|
11
|
|
|
$
|
4
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Brent oil ($/Bbl)
|
$
|
46.97
|
|
|
$
|
63.50
|
|
|
$
|
41.03
|
|
|
$
|
59.33
|
|
WTI oil ($/Bbl)
|
$
|
45.59
|
|
|
$
|
57.94
|
|
|
$
|
39.52
|
|
|
$
|
53.29
|
|
NYMEX gas ($/Mcf)
|
$
|
1.97
|
|
|
$
|
2.74
|
|
|
$
|
2.02
|
|
|
$
|
2.90
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Net loss
|
$
|
(140
|
)
|
|
$
|
(68
|
)
|
|
$
|
(190
|
)
|
|
$
|
(168
|
)
|
Non-cash, unusual and infrequent items:
|
|
|
|
|
|
|
|
||||||||
Non-cash derivative losses
|
137
|
|
|
17
|
|
|
218
|
|
|
20
|
|
||||
Severance and other employee-related costs
|
4
|
|
|
10
|
|
|
18
|
|
|
10
|
|
||||
Plant turnaround and other costs
|
2
|
|
|
1
|
|
|
9
|
|
|
3
|
|
||||
Gain on retirement of notes
|
(44
|
)
|
|
—
|
|
|
(133
|
)
|
|
—
|
|
||||
Gain from asset divestitures
|
(31
|
)
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
||||
Valuation allowance for deferred tax assets
(a)
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
||||
Tax effects of these items
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(13
|
)
|
||||
Adjusted net loss
|
$
|
(72
|
)
|
|
$
|
(51
|
)
|
|
$
|
(172
|
)
|
|
$
|
(148
|
)
|
|
|
|
|
|
|
|
|
||||||||
Net loss per diluted share
|
$
|
(3.51
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
(4.85
|
)
|
|
$
|
(4.40
|
)
|
Adjusted net loss per diluted share
|
$
|
(1.80
|
)
|
|
$
|
(1.33
|
)
|
|
$
|
(4.39
|
)
|
|
$
|
(3.87
|
)
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Non-cash derivative losses
|
$
|
137
|
|
|
$
|
17
|
|
|
$
|
218
|
|
|
$
|
20
|
|
Proceeds from settled derivatives
|
(19
|
)
|
|
—
|
|
|
(75
|
)
|
|
(2
|
)
|
||||
Net derivative losses
|
$
|
118
|
|
|
$
|
17
|
|
|
$
|
143
|
|
|
$
|
18
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
General and administrative expenses
|
$
|
61
|
|
|
$
|
85
|
|
|
$
|
128
|
|
|
$
|
161
|
|
Severance and other employee-related costs
|
(4
|
)
|
|
(10
|
)
|
|
(18
|
)
|
|
(10
|
)
|
||||
Adjusted general and administrative expenses
|
$
|
57
|
|
|
$
|
75
|
|
|
$
|
110
|
|
|
$
|
151
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Oil (MBbl/d)
|
|
|
|
|
|
|
|
||||
San Joaquin Basin
|
56
|
|
|
67
|
|
|
58
|
|
|
67
|
|
Los Angeles Basin
|
29
|
|
|
31
|
|
|
31
|
|
|
33
|
|
Ventura Basin
|
5
|
|
|
6
|
|
|
5
|
|
|
6
|
|
Sacramento Basin
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
90
|
|
|
104
|
|
|
94
|
|
|
106
|
|
|
|
|
|
|
|
|
|
||||
NGLs (MBbl/d)
|
|
|
|
|
|
|
|
||||
San Joaquin Basin
|
15
|
|
|
17
|
|
|
16
|
|
|
17
|
|
Los Angeles Basin
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Ventura Basin
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Sacramento Basin
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
|
16
|
|
|
18
|
|
|
17
|
|
|
18
|
|
|
|
|
|
|
|
|
|
||||
Natural gas (MMcf/d)
|
|
|
|
|
|
|
|
||||
San Joaquin Basin
|
152
|
|
|
175
|
|
|
149
|
|
|
177
|
|
Los Angeles Basin
|
4
|
|
|
2
|
|
|
3
|
|
|
2
|
|
Ventura Basin
|
9
|
|
|
11
|
|
|
9
|
|
|
12
|
|
Sacramento Basin
|
37
|
|
|
46
|
|
|
38
|
|
|
47
|
|
Total
|
202
|
|
|
234
|
|
|
199
|
|
|
238
|
|
|
|
|
|
|
|
|
|
||||
Total Production (MBoe/d)
(a)
|
140
|
|
|
161
|
|
|
144
|
|
|
163
|
|
Note:
|
MBbl/d refers to thousands of barrels per day; MMcf/d refers to millions of cubic feet per day; MBoe/d refers to thousands of barrels of oil equivalent per day.
|
(a)
|
Natural gas volumes have been converted to Boe based on the equivalence of energy content between six Mcf of natural gas and one barrel of oil. Barrels of oil equivalence does not necessarily result in price equivalence. The price of natural gas on a barrel of oil equivalent basis is currently substantially lower than the corresponding price for oil and has been similarly lower for a number of years. For example, for the
six
months ended
June 30, 2016
, the average prices of Brent oil and NYMEX natural gas were
$41.03
per barrel and
$2.02
per Mcf, respectively, resulting in an oil-to-gas ratio of approximately
20
to 1.
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Oil prices with hedge ($ per Bbl)
|
$
|
43.70
|
|
|
$
|
56.73
|
|
|
$
|
39.90
|
|
|
$
|
51.51
|
|
|
|
|
|
|
|
|
|
||||||||
Oil prices without hedge ($ per Bbl)
|
$
|
41.41
|
|
|
$
|
56.73
|
|
|
$
|
35.52
|
|
|
$
|
51.48
|
|
NGLs prices ($ per Bbl)
|
$
|
22.54
|
|
|
$
|
20.47
|
|
|
$
|
19.35
|
|
|
$
|
21.00
|
|
Gas prices ($ per Mcf)
|
$
|
1.66
|
|
|
$
|
2.49
|
|
|
$
|
1.85
|
|
|
$
|
2.67
|
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Oil with hedge as a percentage of Brent
|
93
|
%
|
|
89
|
%
|
|
97
|
%
|
|
87
|
%
|
|
|
|
|
|
|
|
|
||||
Oil without hedge as a percentage of Brent
|
88
|
%
|
|
89
|
%
|
|
87
|
%
|
|
87
|
%
|
Oil without hedge as a percentage of WTI
|
91
|
%
|
|
98
|
%
|
|
90
|
%
|
|
97
|
%
|
Gas with hedge as a percentage of NYMEX
|
84
|
%
|
|
91
|
%
|
|
92
|
%
|
|
92
|
%
|
|
June 30,
2016
|
|
December 31,
2015
|
||||
|
(in millions)
|
||||||
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2
|
|
|
$
|
12
|
|
Trade receivables, net
|
$
|
195
|
|
|
$
|
200
|
|
Inventories
|
$
|
62
|
|
|
$
|
58
|
|
Other current assets
|
$
|
127
|
|
|
$
|
227
|
|
Property, plant and equipment, net
|
$
|
6,073
|
|
|
$
|
6,312
|
|
Other assets
|
$
|
17
|
|
|
$
|
244
|
|
Current maturities of long-term debt
|
$
|
99
|
|
|
$
|
100
|
|
Accounts payable
|
$
|
187
|
|
|
$
|
257
|
|
Accrued liabilities
|
$
|
306
|
|
|
$
|
222
|
|
Current income taxes
|
$
|
—
|
|
|
$
|
26
|
|
Long-term debt - principal amount
|
$
|
5,843
|
|
|
$
|
6,043
|
|
Deferred gain and issuance costs, net
|
$
|
456
|
|
|
$
|
491
|
|
Deferred income taxes
|
$
|
45
|
|
|
$
|
—
|
|
Other long-term liabilities
|
$
|
585
|
|
|
$
|
830
|
|
Equity
|
$
|
(1,045
|
)
|
|
$
|
(916
|
)
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Oil and gas net sales
|
$
|
404
|
|
|
$
|
621
|
|
|
$
|
733
|
|
|
$
|
1,167
|
|
Net derivative losses
|
(118
|
)
|
|
(17
|
)
|
|
(143
|
)
|
|
(18
|
)
|
||||
Other revenue
|
31
|
|
|
30
|
|
|
49
|
|
|
62
|
|
||||
Production costs
|
(188
|
)
|
|
(242
|
)
|
|
(372
|
)
|
|
(484
|
)
|
||||
General and administrative expenses
|
(61
|
)
|
|
(85
|
)
|
|
(128
|
)
|
|
(161
|
)
|
||||
Depreciation, depletion and amortization
|
(138
|
)
|
|
(251
|
)
|
|
(285
|
)
|
|
(504
|
)
|
||||
Taxes other than on income
|
(42
|
)
|
|
(53
|
)
|
|
(81
|
)
|
|
(108
|
)
|
||||
Exploration expense
|
(5
|
)
|
|
(7
|
)
|
|
(10
|
)
|
|
(24
|
)
|
||||
Interest and debt expense, net
|
(74
|
)
|
|
(83
|
)
|
|
(148
|
)
|
|
(162
|
)
|
||||
Other income (expenses), net
|
51
|
|
|
(27
|
)
|
|
117
|
|
|
(51
|
)
|
||||
Income tax benefit
|
—
|
|
|
46
|
|
|
78
|
|
|
115
|
|
||||
Net loss
|
$
|
(140
|
)
|
|
$
|
(68
|
)
|
|
$
|
(190
|
)
|
|
$
|
(168
|
)
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net loss
(a)
|
$
|
(72
|
)
|
|
$
|
(51
|
)
|
|
$
|
(172
|
)
|
|
$
|
(148
|
)
|
Adjusted EBITDAX
(b)
|
$
|
160
|
|
|
$
|
270
|
|
|
$
|
284
|
|
|
$
|
468
|
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate
|
—
|
%
|
|
40
|
%
|
|
29
|
%
|
|
41
|
%
|
(a)
|
See "Financial and Operating Results" above for our Non-GAAP reconciliation.
|
(b)
|
We define adjusted EBITDAX consistent with our Credit Facilities as earnings before interest expense; income taxes; depreciation, depletion and amortization; exploration expense; and other non-cash, unusual and infrequent items. Our management believes adjusted EBITDAX provides useful information in assessing our financial condition, results of operations and cash flows and is widely used by the industry and investment community. The amounts included in the calculation of adjusted EBITDAX were computed in accordance with GAAP. This measure is a material component of our financial covenants under our Credit Facilities and is provided in addition to, and not as an alternative for, income and liquidity measures calculated in accordance with GAAP. Certain items excluded from adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic cost of depreciable and depletable assets. Adjusted EBITDAX should be read in conjunction with the information contained in our financial statements prepared in accordance with GAAP.
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
(in millions)
|
||||||||||||||
Net loss
|
$
|
(140
|
)
|
|
$
|
(68
|
)
|
|
$
|
(190
|
)
|
|
$
|
(168
|
)
|
Interest and debt expense
|
74
|
|
|
83
|
|
|
148
|
|
|
162
|
|
||||
Income tax benefit
|
—
|
|
|
(46
|
)
|
|
(78
|
)
|
|
(115
|
)
|
||||
Depreciation, depletion and amortization
|
138
|
|
|
251
|
|
|
285
|
|
|
504
|
|
||||
Exploration expense
|
5
|
|
|
7
|
|
|
10
|
|
|
24
|
|
||||
Adjusted income items
(a)
|
68
|
|
|
28
|
|
|
81
|
|
|
33
|
|
||||
Other non-cash items
|
15
|
|
|
15
|
|
|
28
|
|
|
28
|
|
||||
Adjusted EBITDAX
|
$
|
160
|
|
|
$
|
270
|
|
|
$
|
284
|
|
|
$
|
468
|
|
(a)
|
For 2016, includes non-cash losses on outstanding hedges, severance and other employee-related costs, plant turnaround costs, gain on retirement of notes and gain from the sale of assets. For 2015, includes non-cash losses on outstanding hedges, severance and other employee-related costs and rig termination costs.
|
|
Three months ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Production costs
|
$
|
14.76
|
|
|
$
|
16.59
|
|
|
$
|
14.21
|
|
|
$
|
16.39
|
|
General and administrative expenses
|
$
|
0.71
|
|
|
$
|
1.03
|
|
|
$
|
0.73
|
|
|
$
|
0.95
|
|
Depreciation, depletion and amortization
|
$
|
10.21
|
|
|
$
|
16.72
|
|
|
$
|
10.28
|
|
|
$
|
16.60
|
|
Taxes other than on income
|
$
|
2.75
|
|
|
$
|
3.24
|
|
|
$
|
2.71
|
|
|
$
|
3.27
|
|
|
2016
|
|
2017
|
|
2018
|
||||||||||
|
Q3
|
|
Q4
|
|
Q1 - Q4
|
|
Q1 - Q4
|
||||||||
Crude Oil
|
|
|
|
|
|
|
|
||||||||
Calls:
|
|
|
|
|
|
|
|
||||||||
Barrels per day
|
19,000
|
|
|
25,000
|
|
|
10,500
|
|
|
21,500
|
|
||||
Weighted-average price per barrel
|
$
|
55.08
|
|
|
$
|
53.62
|
|
|
$
|
56.07
|
|
|
$
|
58.21
|
|
|
|
|
|
|
|
|
|
||||||||
Puts:
|
|
|
|
|
|
|
|
||||||||
Barrels per day
|
28,000
|
|
|
3,000
|
|
|
4,300
|
|
|
—
|
|
||||
Weighted-average price per barrel
|
$
|
50.65
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Swaps:
|
|
|
|
|
|
|
|
||||||||
Barrels per day
|
1,000
|
|
|
29,000
|
|
|
—
|
|
|
—
|
|
||||
Weighted-average price per barrel
|
$
|
61.25
|
|
|
$
|
49.43
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Gas
|
|
|
|
|
|
|
|
||||||||
Swaps:
|
|
|
|
|
|
|
|
||||||||
MMBTU per day
|
330
|
|
|
5,500
|
|
|
—
|
|
|
—
|
|
||||
Weighted-average price per MMBTU
|
$
|
3.13
|
|
|
$
|
3.50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Forward Contracts:
|
|
|
|
|
|
|
|
||||||||
MMBTU per day
|
—
|
|
|
—
|
|
|
6,200
|
|
|
—
|
|
||||
Weighted-average price per MMBTU
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.53
|
|
|
$
|
—
|
|
|
|
Six months ended June 30,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
(in millions)
|
||||||
Net cash flows provided by operating activities
|
|
$
|
44
|
|
|
$
|
232
|
|
Net cash flows used in investing activities
|
|
$
|
(18
|
)
|
|
$
|
(440
|
)
|
Net cash flows (used) provided by financing activities
|
|
$
|
(36
|
)
|
|
$
|
231
|
|
Adjusted EBITDAX
(a)
|
|
$
|
284
|
|
|
$
|
468
|
|
(a)
|
We define adjusted EBITDAX consistent with our Credit Facilities as earnings before interest expense; income taxes; depreciation, depletion and amortization; exploration expense; and other non-cash, unusual and infrequent items. Our management believes adjusted EBITDAX provides useful information in assessing our financial condition, results of operations and cash flows and is widely used by the industry and investment community. The amounts included in the calculation of adjusted EBITDAX were computed in accordance with GAAP. This measure is a material component of certain of our financial covenants under our Credit Facilities and is provided in addition to, and not as an alternative for, income and liquidity measures calculated in accordance with GAAP. Certain items excluded from adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic cost of depreciable and depletable assets. Adjusted EBITDAX should be read in conjunction with the information contained in our financial statements prepared in accordance with GAAP.
|
|
|
Six months ended June 30,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
(in millions)
|
||||||
Net cash provided by operating activities
|
|
$
|
44
|
|
|
$
|
232
|
|
Cash interest
|
|
180
|
|
|
149
|
|
||
Exploration expenditures
|
|
10
|
|
|
17
|
|
||
Other changes in operating assets and liabilities
|
|
41
|
|
|
67
|
|
||
Plant turnaround and other costs
|
|
9
|
|
|
3
|
|
||
Adjusted EBITDAX
|
|
$
|
284
|
|
|
$
|
468
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
2016
|
|
2017
|
|
2018
|
||||||||||
|
Q3
|
|
Q4
|
|
Q1 - Q4
|
|
Q1 - Q4
|
||||||||
Crude Oil
|
|
|
|
|
|
|
|
||||||||
Calls:
|
|
|
|
|
|
|
|
||||||||
Barrels per day
|
19,000
|
|
|
25,000
|
|
|
10,500
|
|
|
21,500
|
|
||||
Weighted-average price per barrel
|
$
|
55.08
|
|
|
$
|
53.62
|
|
|
$
|
56.07
|
|
|
$
|
58.21
|
|
|
|
|
|
|
|
|
|
||||||||
Puts:
|
|
|
|
|
|
|
|
||||||||
Barrels per day
|
28,000
|
|
|
3,000
|
|
|
4,300
|
|
|
—
|
|
||||
Weighted-average price per barrel
|
$
|
50.65
|
|
|
$
|
50.00
|
|
|
$
|
50.00
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Swaps:
|
|
|
|
|
|
|
|
||||||||
Barrels per day
|
1,000
|
|
|
29,000
|
|
|
—
|
|
|
—
|
|
||||
Weighted-average price per barrel
|
$
|
61.25
|
|
|
$
|
49.43
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Gas
|
|
|
|
|
|
|
|
||||||||
Swaps:
|
|
|
|
|
|
|
|
||||||||
MMBTU per day
|
330
|
|
|
5,500
|
|
|
—
|
|
|
—
|
|
||||
Weighted-average price per MMBTU
|
$
|
3.13
|
|
|
$
|
3.50
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Forward Contracts:
|
|
|
|
|
|
|
|
||||||||
MMBTU per day
|
—
|
|
|
—
|
|
|
6,200
|
|
|
—
|
|
||||
Weighted-average price per MMBTU
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3.53
|
|
|
$
|
—
|
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1.A.
|
Risk Factors
|
Item 5.
|
Other Disclosures
|
Item 6.
|
Exhibits
|
|
3.1
|
Amended and Restated Certificate of Incorporation of California Resources Corporation (incorporated by reference herein to Exhibit 3.1 to the Registrant’s Registration Statement on Form 8-K filed on June 3, 2016).
|
|
|
|
|
4.1*
|
Guarantor Supplemental Indenture dated as of March 4, 2016, among California Resources Corporation, California Resources Coles Levee, LLC, certain other guarantors and The Bank of New York Mellon Trust Company, N.A.,, as trustee.
|
|
|
|
|
4.2*
|
Guarantor Supplemental Indenture dated as of March 4, 2016, among California Resources Corporation, California Resources Coles Levee, L.P., certain other guarantors and The Bank of New York Mellon Trust Company, N.A.,, as trustee.
|
|
|
|
|
10.1
|
California Resources Corporation Long-Term Incentive Plan, as amended and restated effective May 4, 2016 (incorporated by reference herein to Annex B to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on March 23, 2016).
|
|
|
|
|
10.2
|
First Amendment to the California Resources Corporation 2014 Employee Stock Purchase Plan effective May 4, 2016 (incorporated by reference herein to Annex C-1 to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on March 23, 2016).
|
|
|
|
|
10.3
|
Fourth Amendment to Credit Agreement, dated April 22, 2016, among California Resources Corporation and JP Morgan Chase Bank, N.A., as Administrative Agent, A Swingline Lender and a Letter of Credit Issuer and Bank of America, N.A., as Syndication Agent, Swingline Lender and a Letter of credit Issuer (incorporated by reference herein Exhibit 99.1 to the Registrant’s Current Report on Form 8-K filed April 22, 2016).
|
|
|
|
|
10.4*
|
Guarantor Supplemental Indenture No. 2, dated as of April 29, 2016, among California Resources Corporation, California Resources Coles Levee, L.P. and California Resources Coles Levee, LLC, certain other guarantors and Wilmington Trust, National Association, as trustee.
|
|
|
|
|
10.5*
|
California Resources Corporation Long-Term Incentive Plan, 2016 Annual Incentive Award Summary.
|
|
|
|
|
10.6*
|
Form of California Resources Corporation Long-Term Incentive Plan Restricted Stock Unit Award Terms and Conditions.
|
|
|
|
|
12
|
Computation of Ratios of Earnings to Fixed Charges.
|
|
|
|
|
31.1
|
Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
31.2
|
Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
32.1
|
Certifications of CEO and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
101.INS
|
XBRL Instance Document.
|
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
CALIFORNIA RESOURCES CORPORATION
|
|
DATE:
|
August 4, 2016
|
/s/ Roy Pineci
|
|
|
|
Roy Pineci
|
|
|
|
Executive Vice President - Finance
|
|
|
|
(Principal Accounting Officer)
|
|
|
3.1
|
Amended and Restated Certificate of Incorporation of California Resources Corporation (incorporated by reference herein to Exhibit 3.1 to the Registrant’s Registration Statement on Form 8-K filed on June 3, 2016).
|
|
|
|
|
4.1*
|
Guarantor Supplemental Indenture dated as of March 4, 2016, among California Resources Corporation, California Resources Coles Levee, LLC, certain other guarantors and The Bank of New York Mellon Trust Company, N.A.,, as trustee.
|
|
|
|
|
4.2*
|
Guarantor Supplemental Indenture dated as of March 4, 2016, among California Resources Corporation, California Resources Coles Levee, L.P., certain other guarantors and The Bank of New York Mellon Trust Company, N.A.,, as trustee.
|
|
|
|
|
10.1
|
California Resources Corporation Long-Term Incentive Plan, as amended and restated effective May 4, 2016 (incorporated by reference herein to Annex B to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on March 23, 2016).
|
|
|
|
|
10.2
|
First Amendment to the California Resources Corporation 2014 Employee Stock Purchase Plan effective May 4, 2016 (incorporated by reference herein to Annex C-1 to the Registrant’s Definitive Proxy Statement on Schedule 14A filed on March 23, 2016).
|
|
|
|
|
10.3
|
Fourth Amendment to Credit Agreement, dated April 22, 2016, among California Resources Corporation and JP Morgan Chase Bank, N.A., as Administrative Agent, A Swingline Lender and a Letter of Credit Issuer and Bank of America, N.A., as Syndication Agent, Swingline Lender and a Letter of credit Issuer (incorporated by reference herein Exhibit 99.1 to the Registrant’s Current Report on Form 8-K filed April 22, 2016).
|
|
|
|
|
10.4*
|
Guarantor Supplemental Indenture No. 2, dated as of April 29, 2016, among California Resources Corporation, California Resources Coles Levee, L.P. and California Resources Coles Levee, LLC, certain other guarantors and Wilmington Trust, National Association, as trustee.
|
|
|
|
|
10.5*
|
California Resources Corporation Long-Term Incentive Plan, 2016 Annual Incentive Award Summary.
|
|
|
|
|
10.6*
|
Form of California Resources Corporation Long-Term Incentive Plan Restricted Stock Unit Award Terms and Conditions.
|
|
|
|
|
12
|
Computation of Ratios of Earnings to Fixed Charges.
|
|
|
|
|
31.1
|
Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
31.2
|
Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
32.1
|
Certifications of CEO and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
|
101.INS
|
XBRL Instance Document.
|
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
Dated: March 4, 2016
|
California Resources Corporation
,
a Delaware corporation
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary
|
|
|
|
|
California Resources Coles Levee, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary
|
|
|
|
|
California Heavy Oil, Inc.
|
|
|
California Resources Petroleum Corporation
|
|
|
California Resources Production Corporation
|
|
|
Southern San Joaquin Production, Inc.
|
|
|
Thums Long Beach Company
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary
|
|
California Resources Elk Hills, LLC
|
|
|
CRC Construction Services, LLC
|
|
|
CRC Services, LLC
|
|
|
Socal Holding, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary of California Resources Corporation, its Sole Member
|
|
|
|
|
California Resources Long Beach, Inc.
|
|
|
California Resources Tidelands, Inc.
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary
|
|
|
|
|
California Resources Wilmington, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Vice President, General Counsel and Corporate Secretary of California Resources Tidelands, Inc., its Sole Member
|
|
|
|
|
CRC Marketing, Inc.
|
|
|
|
|
|
By:
|
/s/ D. Adam Smith
|
|
|
Name: D. Adam Smith
|
|
|
Title: Assistant Secretary
|
|
|
|
|
Elk Hills Power, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary of California Resources Corporation, the Sole Member of California Resources Elk Hills, LLC, its Sole Member
|
|
|
|
|
Tidelands Oil Production Company
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Vice President, General Counsel and Corporate Secretary of California Resources Tidelands, Inc., its Managing Partner
|
|
The Bank of New York Mellon Trust Company, N.A.,
as Trustee
|
|
|
|
|
|
By:
|
/s/ Richard Tarnas
|
|
|
Name: Richard Tarnas
|
|
|
Title: Vice President
|
California Heavy Oil, Inc.
|
California Resources Elk Hills, LLC
|
California Resources Long Beach, Inc.
|
California Resources Petroleum Corporation
|
California Resources Production Corporation
|
California Resources Tidelands, Inc.
|
California Resources Wilmington, LLC
|
CRC Construction Services, LLC
|
CRC Marketing, Inc.
|
CRC Services, LLC
|
Elk Hills Power, LLC
|
Socal Holding, LLC
|
Southern San Joaquin Production, Inc.
|
Thums Long Beach Company
|
Tidelands Oil Production Company
|
Dated: March 4, 2016
|
California Resources Corporation
,
a Delaware corporation
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary
|
|
|
|
|
California Resources Coles Levee, L.P.
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary of California Resources Coles Levee, LLC, its General Partner
|
|
|
|
|
California Heavy Oil, Inc.
|
|
|
California Resources Petroleum Corporation
|
|
|
California Resources Production Corporation
|
|
|
Southern San Joaquin Production, Inc.
|
|
|
Thums Long Beach Company
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary
|
|
California Resources Elk Hills, LLC
|
|
|
CRC Construction Services, LLC
|
|
|
CRC Services, LLC
|
|
|
Socal Holding, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary of California Resources Corporation, its Sole Member
|
|
|
|
|
California Resources Long Beach, Inc.
|
|
|
California Resources Tidelands, Inc.
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Vice President, General Counsel and Corporate Secretary
|
|
|
|
|
California Resources Wilmington, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Vice President, General Counsel and Corporate Secretary of California Resources Tidelands, Inc., its Sole Member
|
|
|
|
|
CRC Marketing, Inc.
|
|
|
|
|
|
By:
|
/s/ D. Adam Smith
|
|
|
Name: D. Adam Smith
|
|
|
Title: Assistant Secretary
|
|
|
|
|
Elk Hills Power, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary of California Resources Corporation, the Sole Member of California Resources Elk Hills, LLC, its Sole Member
|
|
|
|
|
Tidelands Oil Production Company
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Vice President, General Counsel and Corporate Secretary of California Resources Tidelands, Inc., its Managing Partner
|
|
The Bank of New York Mellon Trust Company, N.A.,
as Trustee
|
|
|
|
|
|
By:
|
/s/ Richard Tarnas
|
|
|
Name: Richard Tarnas
|
|
|
Title: Vice President
|
|
|
|
California Heavy Oil, Inc.
|
California Resources Elk Hills, LLC
|
California Resources Long Beach, Inc.
|
California Resources Petroleum Corporation
|
California Resources Production Corporation
|
California Resources Tidelands, Inc.
|
California Resources Wilmington, LLC
|
CRC Construction Services, LLC
|
CRC Marketing, Inc.
|
CRC Services, LLC
|
Elk Hills Power, LLC
|
Socal Holding, LLC
|
Southern San Joaquin Production, Inc.
|
Thums Long Beach Company
|
Tidelands Oil Production Company
|
|
COMPANY
|
|
|
|
|
|
California Resources Corporation
,
a Delaware corporation
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary
|
|
|
|
|
NEW GUARANTORS
|
|
|
|
|
|
California Resources Coles Levee, L.P.
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary of California Resources Coles Levee, LLC, its General Partner
|
|
|
|
|
California Resources Coles Levee, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary
|
|
|
|
|
California Resources Wilmington, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Vice President, General Counsel and Corporate Secretary of California Resources Tidelands, Inc., its Sole Member
|
|
|
|
|
|
|
|
Wilmington Trust, National Association,
as Trustee
|
|
|
|
|
|
By:
|
/s/ Hallie E. Field
|
|
|
Name: Hallie E. Field
|
|
|
Title: Assistant Vice President
|
|
EXISTING GUARANTORS
|
|
|
|
|
|
California Heavy Oil, Inc.
|
|
|
California Resources Petroleum Corporation
|
|
|
California Resources Production Corporation
|
|
|
Southern San Joaquin Production, Inc.
|
|
|
Thums Long Beach Company
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary
|
|
|
|
|
California Resources Elk Hills, LLC
|
|
|
CRC Construction Services, LLC
|
|
|
CRC Services, LLC
|
|
|
Socal Holding, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title:
Executive Vice President, General Counsel and Corporate Secretary of California Resources Corporation, its Sole Member
|
|
|
|
|
California Resources Long Beach, Inc.
|
|
|
California Resources Tidelands, Inc.
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary
|
|
|
|
|
California Resources Wilmington, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Vice President, General Counsel and Corporate Secretary of California Resources Tidelands, Inc., its Sole Member
|
|
|
|
|
CRC Marketing, Inc.
|
|
|
|
|
|
By:
|
/s/ D. Adam Smith
|
|
|
Name: D. Adam Smith
|
|
|
Title: Assistant Secretary
|
|
Elk Hills Power, LLC
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Executive Vice President, General Counsel and Corporate Secretary of California Resources Corporation, the Sole Member of California Resources Elk Hills, LLC, its Sole Member
|
|
|
|
|
Tidelands Oil Production Company
|
|
|
|
|
|
By:
|
/s/ Michael L. Preston
|
|
|
Name: Michael L. Preston
|
|
|
Title: Vice President, General Counsel and Corporate Secretary of California Resources Tidelands, Inc., its Managing Partner
|
|
Wilmington Trust, National Association,
as Trustee
|
|
|
|
|
|
By:
|
/s/ Hallie E. Field
|
|
|
Name: Hallie E. Field
|
|
|
Title: Assistant Vice President
|
California Heavy Oil, Inc.
|
California Resources Elk Hills, LLC
|
California Resources Long Beach, Inc.
|
California Resources Petroleum Corporation
|
California Resources Production Corporation
|
California Resources Tidelands, Inc.
|
California Resources Wilmington, LLC
|
CRC Construction Services, LLC
|
CRC Marketing, Inc.
|
CRC Services, LLC
|
Elk Hills Power, LLC
|
Socal Holding, LLC
|
Southern San Joaquin Production, Inc.
|
Thums Long Beach Company
|
Tidelands Oil Production Company
|
Feature
|
Approved Terms
|
Award Type
|
Cash; Performance-Based Award under section 5.2 of the Company’s Long-Term Incentive Plan (the “LTIP”)
|
Grant Date
|
March 30, 2016
|
Target Incentive Amount
|
Individual amount as approved by the Compensation Committee on February 11, 2016, for each of the executive officers of the Company. In no event may the maximum amount payable with respect to any 2016 Annual Incentive Award exceed $1.65 million.
|
Performance Period
|
January 1, 2016 to December 31, 2016
|
Performance Goals
|
See Exhibit 1. Payout percentages for each performance measure will be linearly interpolated for results between threshold and target and between target and maximum.
|
Vesting Date
|
Award will vest upon certification by the committee appointed by the Board to administer the LTIP (the “Committee”) of attainment of Performance Goals following end of Performance Period.
|
Committee Negative Discretion Factor
|
Downward discretion may be applied, at the Committee’s sole discretion, to the bonus payouts to take into consideration factors such as, among others, the state of the industry and the Company’s financial health overall as well as the Company’s competitive relationship to its peer companies. The Committee does not have the discretion to increase bonus payouts.
|
Settlement
|
Payout of Target Incentive Amount (subject to proration as described below) times Total Performance Measure Result times Committee Negative Discretion Factor (if any) will be paid in cash as soon as administratively practicable following the Vesting Date, but in no event later than March 15, 2017.
|
Retirement with Consent of Company, Involuntary Termination by the Company without Cause (as determined by the Committee)
|
If such retirement or termination occurs after June 30, 2016, pro rata forfeiture of Target Incentive Amount and award, based on remaining time in Performance Period. Remaining Target Incentive Amount settles based on actual performance through end of Performance Period. If such retirement or termination occurs on or before June 30, 2016, then the entire Target Incentive Amount and award is forfeited.
|
Voluntary Termination (other than Retirement with Consent of Company), Termination by the Company for Cause (as determined by the Committee)
|
Forfeiture of entire Target Incentive Amount and award.
|
Death, Disability
|
Pro rata forfeiture of Target Incentive Amount and award, based on time remaining in the Performance Period. Remaining Target Incentive Amount settles based on actual performance through end of Performance Period.
|
Performance-Based Award
|
Payout of award amounts attributable to performance measures other than those identified as “Strategic and Individual” on Exhibit 1 are intended to qualify as performance-based compensation for purposes of Section 162(m) of the Internal Revenue Code.
|
Date of Grant:
|
May 27, 2016
|
Restricted Stock Units:
|
See Morgan Stanley StockPlan Connect “Restricted Stock/Restricted Stock & Cash Units/Awarded”
|
Vesting Date Schedule:
|
One-third of the Restricted Stock Units on May 26, 2017; One-third of the Restricted Stock Units on May 26, 2018; One-third of the Restricted Stock Units on May 26, 2019; (each being a “
Vesting Date
”)
|
|
|
|
|
EXHIBIT 12
|
|
|
Six months ended
June 30,
|
|
Year ended December 31,
|
||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
2015
|
|
2014
(a)
|
|
2013
|
|
2012
|
|
2011
|
||||||||||||||
(Loss) Income before income taxes
(b)(c)
|
|
$
|
(268
|
)
|
|
$
|
(283
|
)
|
|
$
|
(5,476
|
)
|
|
$
|
(2,421
|
)
|
|
$
|
1,447
|
|
|
$
|
1,181
|
|
|
$
|
1,641
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest expense and amortization of debt issuance costs and deferred gain
|
|
148
|
|
|
162
|
|
|
326
|
|
|
72
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Portion of lease rentals representative of the interest factor
|
|
2
|
|
|
1
|
|
|
4
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|||||||
(Loss) Earnings before fixed charges
|
|
$
|
(118
|
)
|
|
$
|
(120
|
)
|
|
$
|
(5,146
|
)
|
|
$
|
(2,346
|
)
|
|
$
|
1,451
|
|
|
$
|
1,185
|
|
|
$
|
1,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest expense and amortization of debt issuance costs and deferred gain, including capitalized interest
|
|
$
|
150
|
|
|
$
|
168
|
|
|
$
|
335
|
|
|
$
|
76
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Portion of lease rentals representative of the interest factor
|
|
2
|
|
|
1
|
|
|
4
|
|
|
3
|
|
|
4
|
|
|
4
|
|
|
3
|
|
|||||||
Total fixed charges
|
|
$
|
152
|
|
|
$
|
169
|
|
|
$
|
339
|
|
|
$
|
79
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ratio of earnings to fixed charges
(d)
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
363
|
|
|
296
|
|
|
548
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Insufficient coverage
|
|
$
|
270
|
|
|
$
|
289
|
|
|
$
|
5,485
|
|
|
$
|
2,425
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
Note: Had we been a stand-alone company for the full year 2014, and had the same level of debt throughout the year as we did on December 31, 2014, of approximately $6.4 billion, we would have incurred $314 million of pre-tax interest expense, on a pro-forma basis, for the year ended December 31, 2014, compared to the $72 million pre-tax interest expense reported on our statement of operations for the year then ended. Therefore, the insufficient coverage on a pro-forma basis would have been approximately $2,437 million.
|
(b)
|
The six months ended June 30, 2016 amount includes non-cash, unusual and infrequent items consisting of $218 million of non-cash derivative losses and net $27 million of other non-recurring charges, offset by $133 million of gains on the retirement of our notes and $31 million of gains from asset divestitures. Excluding these items, our loss before income taxes for the six months ended June 30, 2016 would have been approximately $187 million. Therefore, the insufficient coverage would have been approximately $189 million. The six months ended June 30, 2015 amount includes non-cash, unusual and infrequent items consisting of $20 million of non-cash derivative losses and net $13 million of other non-recurring charges. Excluding these items, our loss before income taxes for the six months ended June 30, 2015 would have been approximately $250 million. Therefore, the insufficient coverage would have been approximately $256 million.
|
(c)
|
The year ended December 31, 2015 amount includes non-cash, unusual and infrequent items consisting of $4.9 billion of asset impairments, $71 million of write-down of certain assets, $67 million of early retirement and severance costs, $11 million of rig termination and other costs and $8 million of debt transactions costs, partially offset by $52 million of non-cash derivative gains. Excluding these items, our loss before income taxes for the year ended December 31, 2015 would have been approximately $519 million. Therefore, the insufficient coverage would have been approximately $528 million. The December 31, 2014 amount includes non-cash, unusual and infrequent items consisting of $3.4 billion of asset impairments, $52 million of rig termination and other price-related costs, and $55 million of Spin-off and transition related costs. Excluding these items, our income before income taxes for the year ended December 31, 2014 would have been approximately $1.1 billion, and the ratio of earnings to fixed charges would have been 15.
|
(d)
|
The 2014 ratio takes into consideration interest on the debt associated with the Spin-off which we entered into during the last half of 2014.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of California Resources Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
/s/ Todd A. Stevens
|
|
|
Todd A. Stevens
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of California Resources Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
|
/s/ Marshall D. Smith
|
|
|
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Marshall D. Smith
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Senior Executive Vice President and
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Chief Financial Officer
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(Principal Financial Officer)
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Todd A. Stevens
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Name:
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Todd A. Stevens
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Title:
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President and Chief Executive Officer
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Date:
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August 4, 2016
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/s/ Marshall D. Smith
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Name:
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Marshall D. Smith
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Title:
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Senior Executive Vice President and Chief Financial Officer
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Date:
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August 4, 2016
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