Harvest Natural Resources Announces 2014 Second Quarter Results
HOUSTON, Aug. 11, 2014 /PRNewswire/ -- Harvest Natural Resources, Inc. (NYSE: HNR) (Harvest or the Company) today announced 2014 second quarter earnings and provided an operational update.
Harvest reported a second quarter net loss of approximately $1.7 million, compared with a net loss of $4.5 million for the same period last year. The second quarter results included exploration charges of $1.6 million and non-recurring charges of $3.2 million in impairment costs related to the Budong Budong block. Adjusted for exploration charges and non-recurring items, Harvest would have posted second quarter net income of approximately $3.1 million, or $0.07 per diluted share, before any adjustment for income taxes.
Petrodelta, S.A. (Petrodelta), Harvest's Venezuelan affiliate, reported second quarter operating income, before taxes and non-operating items, of $35.0 million ($7.14 million net to Harvest's equity, under IFRS). Petrodelta reported net income for the second quarter of $42.3 million ($8.63 million net to Harvest's equity interest, under IFRS). After adjustments to Petrodelta's IFRS earnings, primarily to conform to US GAAP, Harvest's equity interest in Petrodelta's earnings was $8.2 million, compared to $6.1 million for the same period during 2013.
Highlights for the second quarter of 2014 include:
Venezuela
- During the second quarter of 2014, Petrodelta drilled and completed four development wells and sold approximately 4.1 million barrels of oil (MMBO) for a daily average of approximately 45,073 barrels of oil per day (BOPD), an increase of 18 percent over the same period in 2013;
- Petrodelta's current production rate is approximately 40,840 BOPD and the 2014 expected average production rate is 45,000 BOPD with capital expenditures projected at $350 million;
Gabon
- On March 26, 2014, the joint venture partners resolved that the four discovered fields in the Ruche cluster are commercial;
- On June 3, 2014, the Director General of Hydrocarbons (DGH) of Gabon and the joint venture partners signed a Declaration of Commerciality (DOC);
- On July 17, 2014, Gabon awarded an 850.5 square kilometer Exclusive Exploitation Authorization (EEA) for the development and exploitation of certain oil discoveries on the Dussafu Block;
- On July 18, 2014, the Ruche cluster Field Development Plan was submitted to the DGH;
- Continued processing the 3D survey acquired in the fourth quarter of 2013, which provides the first 3D coverage over the outboard portion of the block. The new 3D seismic data should also enhance the placement of future development wells in the Ruche and Tortue development program;
Indonesia
- In June of 2014, the joint interest partners decided to relinquish their interest in Budong;
China
- On July 3, 2014, the Company sold its entire interest in the WAB-21 block in the South China Sea for $3 million in cash.
VENEZUELA
During the second quarter ended June 30, 2014, Petrodelta sold approximately 4.1 MMBO for a daily average of 45,073 BOPD, an increase of 18 percent over the same period in 2013. Petrodelta also sold 0.68 billion cubic feet (BCF) of natural gas for a daily average of 7.5 million cubic feet per day (MMCFD). Petrodelta's current production rate is approximately 40,840 BOPD.
During the second quarter ended June 30, 2014, Petrodelta drilled and completed one development well in the Isleno Field, two development wells in the Temblador Field and one development well in the El Salto Field. Currently, Petrodelta is operating six drilling rigs and one workover rig and is continuing with infrastructure enhancement projects in the El Salto and Temblador Fields.
Petrodelta's production for 2014 is projected to be approximately 45,000 BOPD. The 2014 Petrodelta capital expenditures are expected to be approximately $350 million. Petrodelta expects to drill 19 oil wells during 2014.
The average sales price for crude oil produced during the quarter was approximately $88.77 per barrel.
EXPLORATION AND OTHER ACTIVITIES
Dussafu Project - Gabon (Dussafu PSC)
Operational activities during the six months ended June 30, 2014 included continuation of planning for development of the Ruche cluster and preparation of a field development plan. Field development options have been evaluated and key and long-lead equipment has been identified. Geoscience, reservoir engineering and economic studies have progressed, and the joint venture partners resolved that the four discovered fields (Ruche, Tortue, Moubenga and Walt Whitman) are commercial at an operating committee meeting on March 26, 2014. A DOC was signed with the Gabonese Republic (Gabon) pertaining to these four oil discoveries on the Dussafu Block on June 3, 2014. Furthermore, on July 17, 2014, Gabon awarded an EEA for the development and exploitation of the oil resources within the EEA area which covers 850.5 square kilometers.
The Company began reviewing the first high quality seismic data from the 1,260 square kilometer of 3D seismic survey during the fourth quarter of 2013. The survey provides the first 3D coverage over the outboard portion of the block where significant pre-salt prospectivity has been already recognized on 2D seismic data. The pre-salt is currently the focus of deep water exploration activity offshore Gabon, and seven new exploration licenses close to Dussafu were awarded by Gabon on August 8, 2014. The new 3D seismic data should also enhance the placement of development wells in the Ruche and Tortue development program and the development of numerous undrilled structures identified within the EEA.
Budong Budong PSC - Indonesia
In June 2014, we and our joint interest partner decided to relinquish our interest in Budong. We are working with the Indonesian government to complete the relinquishment which may take several months. As a result of these actions, the Company recognized a further charge of $3.2 million during the three months ended June 30, 2014, related to drilling obligations incurred in connection with the December 2012 acquisition of an additional 7.1 percent interest from our joint interest partner.
Conference Call
Harvest will hold a conference call at 10:00 a.m. CDT on Monday, August 11, 2014, during which management will discuss Harvest's 2014 second quarter results. The conference leader will be James A. Edmiston, President and Chief Executive Officer. To access the conference call, dial 719-325-2491 or 888-481-2844, five to ten minutes prior to the start time. At that time you will be asked to provide the conference number, which is 5523692. A recording of the conference call will also be available for replay at 719-457-0820 or 888-203-1112, passcode 5523692, through August 18, 2014.
The conference call will also be transmitted over the internet through the Company's website at www.harvestnr.com. To listen to the live webcast, enter the website fifteen minutes before the call to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay of the webcast will be available beginning shortly after the call and will remain on the website for approximately 90 days.
About Harvest Natural Resources:
Harvest Natural Resources, Inc., headquartered in Houston, Texas, is an independent energy company with principal operations in Venezuela and Gabon, and a business development office in Singapore. For more information visit the Company's website at www.harvestnr.com.
CONTACT:
Stephen C. Haynes
Vice President, Chief Financial Officer
(281) 899-5716
This press release may contain projections and other 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. They include estimates and timing of expected oil and gas production, oil and gas reserve projections of future oil pricing, future expenses, planned capital expenditures, anticipated cash flow and our business strategy. All statements other than statements of historical facts may constitute forward-looking statements. Although Harvest believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from Harvest's expectations as a result of factors discussed in Harvest's 2013 Annual Report on Form 10-K and other public filings.
| HARVEST NATURAL RESOURCES, INC. AND SUBSIDIARIES |
||||||
| CONSOLIDATED CONDENSED BALANCE SHEETS |
||||||
| (in thousands, except per share data) |
||||||
| June 30, |
December 31, |
|||||
| 2014 |
2013 |
|||||
| (Unaudited) |
||||||
| ASSETS |
||||||
| CURRENT ASSETS: |
||||||
| Cash and cash equivalents |
$ |
8,111 |
$ |
120,897 |
||
| Restricted cash |
25 |
148 |
||||
| Accounts receivable, net |
524 |
1,962 |
||||
| Deferred income taxes |
81 |
81 |
||||
| Prepaid expenses and other |
1,000 |
2,030 |
||||
| TOTAL CURRENT ASSETS |
9,741 |
125,118 |
||||
| LONG-TERM RECEIVABLE – EQUITY AFFILIATE |
13,891 |
15,097 |
||||
| INVESTMENT IN EQUITY AFFILIATE |
520,350 |
485,401 |
||||
| PROPERTY AND EQUIPMENT: |
||||||
| Oil and gas properties (successful efforts method) |
103,873 |
108,013 |
||||
| Other administrative property, net |
255 |
378 |
||||
| TOTAL PROPERTY AND EQUIPMENT, NET |
104,128 |
108,391 |
||||
| OTHER ASSETS |
881 |
873 |
||||
| TOTAL ASSETS |
$ |
648,991 |
$ |
734,880 |
||
| LIABILITIES AND EQUITY |
||||||
| CURRENT LIABILITIES: |
||||||
| Accounts payable, trade and other |
$ |
1,402 |
$ |
4,398 |
||
| Accrued expenses |
12,647 |
22,659 |
||||
| Accrued interest |
74 |
380 |
||||
| Income taxes payable |
45 |
2,178 |
||||
| Current deferred tax liability |
38,282 |
43,162 |
||||
| Current portion – long term debt |
— |
77,480 |
||||
| Note payable to noncontrolling interest owner |
6,109 |
6,109 |
||||
| Warrant derivative liability |
1,953 |
— |
||||
| Other current liabilities |
158 |
419 |
||||
| TOTAL CURRENT LIABILITIES |
60,670 |
156,785 |
||||
| LONG-TERM DEFERRED TAX LIABILITY |
33,597 |
29,787 |
||||
| WARRANT DERIVATIVE LIABILITY |
— |
1,953 |
||||
| OTHER LONG-TERM LIABILITIES |
108 |
558 |
||||
| COMMITMENTS AND CONTINGENCIES |
||||||
| EQUITY |
||||||
| STOCKHOLDERS' EQUITY: |
||||||
| Preferred stock, par value $0.01 a share; authorized 5,000 shares; outstanding, none |
— |
— |
||||
| Common stock, par value $0.01 a share; authorized 80,000 shares at June 30, 2014 (December 31, 2013: 80,000 shares); issued 48,666 shares at June 30, 2014 (December 31, 2013: 48,666 shares) |
487 |
487 |
||||
| Additional paid-in capital |
277,672 |
276,083 |
||||
| Retained earnings |
82,623 |
92,282 |
||||
| Treasury stock, at cost, 6,572 shares at June 30, 2014 (December 31, 2013: 6,551 shares) |
(66,316) |
(66,222) |
||||
| TOTAL HARVEST STOCKHOLDERS' EQUITY |
294,466 |
302,630 |
||||
| NONCONTROLLING INTERESTS |
260,150 |
243,167 |
||||
| TOTAL EQUITY |
554,616 |
545,797 |
||||
| TOTAL LIABILITIES AND EQUITY |
$ |
648,991 |
$ |
734,880 |
||
| — |
— |
|||||
| HARVEST NATURAL RESOURCES, INC. AND SUBSIDIARIES |
||||||||||||
| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) |
||||||||||||
| (in thousands, except per share data) |
||||||||||||
| (Unaudited) |
||||||||||||
| Three Months Ended |
Six Months Ended |
|||||||||||
| June 30, |
June 30, |
|||||||||||
| 2014 |
2013 |
2014 |
2013 |
|||||||||
| EXPENSES: |
||||||||||||
| Depreciation and amortization |
$ |
58 |
$ |
87 |
$ |
134 |
$ |
174 |
||||
| Exploration expense |
1,648 |
2,007 |
3,481 |
3,737 |
||||||||
| Impairment expense |
3,150 |
— |
7,610 |
— |
||||||||
| General and administrative |
4,903 |
7,559 |
11,204 |
10,913 |
||||||||
| 9,759 |
9,653 |
22,429 |
14,824 |
|||||||||
| LOSS FROM OPERATIONS |
(9,759) |
(9,653) |
(22,429) |
(14,824) |
||||||||
| OTHER NON-OPERATING INCOME (EXPENSE): |
||||||||||||
| Investment earnings and other |
— |
118 |
4 |
164 |
||||||||
| Loss on sale of interest in Harvest Holding |
(391) |
— |
(1,357) |
— |
||||||||
| Unrealized gain on derivatives |
— |
— |
— |
3,785 |
||||||||
| Interest expense |
(15) |
(1,067) |
(62) |
(2,265) |
||||||||
| Loss on extinguishment of debt |
— |
— |
(4,749) |
— |
||||||||
| Foreign currency transaction gains (losses) |
259 |
(183) |
(210) |
(91) |
||||||||
| Other non-operating expenses |
— |
(141) |
(220) |
(613) |
||||||||
| (147) |
(1,273) |
(6,594) |
980 |
|||||||||
| LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES |
(9,906) |
(10,926) |
(29,023) |
(13,844) |
||||||||
| INCOME TAX BENEFIT |
(88) |
(1,415) |
(1,042) |
(1,376) |
||||||||
| LOSS FROM CONTINUING OPERATIONS BEFORE EARNINGS FROM EQUITY AFFILIATE |
(9,818) |
(9,511) |
(27,981) |
(12,468) |
||||||||
| EARNINGS FROM EQUITY AFFILIATE |
16,062 |
7,602 |
34,949 |
57,073 |
||||||||
| INCOME (LOSS) FROM CONTINUING OPERATIONS |
6,244 |
(1,909) |
6,968 |
44,605 |
||||||||
| DISCONTINUED OPERATIONS |
(230) |
(1,006) |
(361) |
(1,491) |
||||||||
| NET INCOME (LOSS) |
6,014 |
(2,915) |
6,607 |
43,114 |
||||||||
| LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
7,665 |
1,551 |
16,266 |
11,483 |
||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO HARVEST [COMPREHENSIVE INCOME (LOSS)] |
$ |
(1,651) |
$ |
(4,466) |
$ |
(9,659) |
$ |
31,631 |
||||
| BASIC EARNINGS (LOSS) PER SHARE: |
||||||||||||
| Income (loss) from continuing operations |
$ |
(0.03) |
$ |
(0.09) |
$ |
(0.22) |
$ |
0.85 |
||||
| Discontinued operations |
(0.01) |
(0.03) |
(0.01) |
(0.04) |
||||||||
| Basic earnings (loss) per share |
$ |
(0.04) |
$ |
(0.12) |
$ |
(0.23) |
$ |
0.81 |
||||
| DILUTED EARNINGS (LOSS) PER SHARE: |
||||||||||||
| Income (loss) from continuing operations |
$ |
(0.03) |
$ |
(0.09) |
$ |
(0.22) |
$ |
0.84 |
||||
| Discontinued operations |
(0.01) |
(0.03) |
(0.01) |
(0.04) |
||||||||
| Diluted earnings (loss) per share |
$ |
(0.04) |
$ |
(0.12) |
$ |
(0.23) |
$ |
0.80 |
||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: |
||||||||||||
| Basic |
41,861 |
39,238 |
41,854 |
39,238 |
||||||||
| Diluted |
41,861 |
39,238 |
41,854 |
39,349 |
||||||||
| HARVEST NATURAL RESOURCES, INC. AND SUBSIDIARIES |
||||||
| CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS |
||||||
| (in thousands) |
||||||
| (Unaudited) |
||||||
| Six Months Ended June 30, |
||||||
| 2014 |
2013 |
|||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||
| Net income |
$ |
6,607 |
$ |
43,114 |
||
| Adjustments to reconcile net income to net cash used in operating activities: |
||||||
| Depreciation and amortization |
134 |
188 |
||||
| Impairment expense |
7,610 |
— |
||||
| Amortization of debt financing costs |
— |
724 |
||||
| Amortization of discount on debt |
— |
1,285 |
||||
| Loss on sale of interest in Harvest Holding |
1,357 |
— |
||||
| Foreign currency transaction loss |
1,468 |
436 |
||||
| Loss on extinguishment of debt |
4,749 |
— |
||||
| Earnings from equity affiliate |
(34,949) |
(57,073) |
||||
| Share-based compensation-related charges |
1,589 |
1,269 |
||||
| Unrealized gain on derivatives |
— |
(3,785) |
||||
| Changes in operating assets and liabilities: |
||||||
| Accounts and notes receivable |
1,438 |
(374) |
||||
| Prepaid expenses and other |
(249) |
355 |
||||
| Other assets |
(8) |
397 |
||||
| Accounts payable |
(2,996) |
(1,279) |
||||
| Accrued expenses |
(11,229) |
(7,175) |
||||
| Accrued interest |
(306) |
(253) |
||||
| Income taxes payable |
(2,133) |
(3) |
||||
| Deferred tax asset and liabilities |
(1,070) |
— |
||||
| Other current liabilities |
(261) |
(1,560) |
||||
| Other long-term liabilities |
(450) |
(705) |
||||
| NET CASH USED IN OPERATING ACTIVITIES |
(28,699) |
(24,439) |
||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||
| Transaction costs from sale of interest in Harvest Holding |
(3,540) |
— |
||||
| Additions of property and equipment |
(521) |
(37,888) |
||||
| Advances to equity affiliate |
(262) |
(248) |
||||
| (Increase) decrease in restricted cash |
123 |
(212) |
||||
| NET CASH USED IN INVESTING ACTIVITIES |
(4,200) |
(38,348) |
||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||
| Debt repayment |
(79,750) |
— |
||||
| Debt extinguishment costs |
(760) |
— |
||||
| Contributions from noncontrolling interest owners |
717 |
— |
||||
| Net proceeds from issuances of common stock |
— |
122 |
||||
| Treasury stock purchases |
(94) |
— |
||||
| Financing costs |
— |
(195) |
||||
| NET CASH USED IN FINANCING ACTIVITIES |
(79,887) |
(73) |
||||
| NET DECREASE IN CASH AND CASH EQUIVALENTS |
(112,786) |
(62,860) |
||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
120,897 |
72,627 |
||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
8,111 |
$ |
9,767 |
||
| PETRODELTA, S. A. |
||||||||||||
| STATEMENTS OF OPERATIONS |
||||||||||||
| (in thousands except per BOE and price amounts) |
||||||||||||
| Three Months Ended June 30, |
||||||||||||
| 2014 |
2013 |
|||||||||||
| $/BOE - net |
$/BOE - net |
|||||||||||
| Barrels of oil sold |
4,102 |
3,477 |
||||||||||
| MCF of gas sold |
682 |
597 |
||||||||||
| Total BOE |
4,216 |
3,577 |
||||||||||
| Total BOE - Net of 33% Royalty |
2,811 |
2,384 |
||||||||||
| Average price/barrel |
$ |
88.77 |
$ |
90.33 |
||||||||
| Average price/mcf |
$ |
1.54 |
$ |
1.54 |
||||||||
| REVENUES: |
||||||||||||
| Oil sales |
$ |
364,144 |
$ |
314,088 |
||||||||
| Gas sales |
1,050 |
922 |
||||||||||
| Royalty |
(121,421) |
(104,229) |
||||||||||
| 243,773 |
$ |
86.72 |
210,781 |
$ |
88.42 |
|||||||
| EXPENSES: |
||||||||||||
| Operating expenses |
60,542 |
21.54 |
36,136 |
15.16 |
||||||||
| Workovers |
5,454 |
1.94 |
5,389 |
2.26 |
||||||||
| Depletion, depreciation and amortization |
32,364 |
11.51 |
20,869 |
8.75 |
||||||||
| General and administrative |
3,080 |
1.10 |
4,703 |
1.97 |
||||||||
| Windfall profits tax |
52,123 |
18.54 |
51,928 |
21.78 |
||||||||
| Windfall profits credit reversal |
55,168 |
19.63 |
— |
— |
||||||||
| 208,731 |
74.26 |
119,025 |
49.92 |
|||||||||
| INCOME FROM OPERATIONS |
35,042 |
12.46 |
91,756 |
38.50 |
||||||||
| Gain (loss) on exchange rate |
223 |
0.08 |
(5,335) |
(2.24) |
||||||||
| Investment earnings and other |
301 |
0.11 |
2 |
— |
||||||||
| Interest expense |
(8,295) |
(2.95) |
(3,175) |
(1.33) |
||||||||
| Income before income tax |
27,271 |
9.70 |
83,248 |
34.93 |
||||||||
| Current income tax expense (benefit) |
(5,558) |
(1.98) |
62,925 |
26.39 |
||||||||
| Deferred income tax benefit |
(9,460) |
(3.37) |
(44,488) |
(18.66) |
||||||||
| NET INCOME UNDER IFRS |
42,289 |
$ |
15.05 |
64,811 |
$ |
27.20 |
||||||
| Adjustments to increase (decrease) net income under IFRS: |
||||||||||||
| Deferred income tax expense |
(30,359) |
(33,973) |
||||||||||
| Depletion expense |
(5,026) |
(7,948) |
||||||||||
| Windfall profits tax credit reversal |
55,168 |
— |
||||||||||
| Sports law over (under) accrual |
689 |
(1,463) |
||||||||||
| Net income under U.S. GAAP |
62,761 |
21,427 |
||||||||||
| Equity interest in equity affiliate |
40% |
40% |
||||||||||
| Income before amortization of excess basis in equity affiliate |
25,104 |
8,571 |
||||||||||
| Amortization of excess basis in equity affiliate |
(1,163) |
(969) |
||||||||||
| Earnings from equity affiliate excluded from results of operations |
(7,879) |
— |
||||||||||
| Earnings from equity affiliate included in income |
$ |
16,062 |
$ |
7,602 |
||||||||
| PETRODELTA, S. A. |
||||||||||||
| STATEMENTS OF OPERATIONS |
||||||||||||
| (in thousands except per BOE and price amounts) |
||||||||||||
| (unaudited) |
||||||||||||
| Six Months Ended June 30, |
||||||||||||
| 2014 |
2013 |
|||||||||||
| $/BOE - net |
$/BOE - net |
|||||||||||
| Barrels of oil sold |
7,980 |
6,838 |
||||||||||
| MCF of gas sold |
1,244 |
1,375 |
||||||||||
| Total BOE |
8,187 |
7,067 |
||||||||||
| Total BOE - Net of 33% Royalty |
5,458 |
4,712 |
||||||||||
| Average price/barrel |
$ |
86.44 |
$ |
92.34 |
||||||||
| Average price/mcf |
$ |
1.54 |
$ |
1.54 |
||||||||
| REVENUES: |
||||||||||||
| Oil sales |
$ |
689,798 |
$ |
631,412 |
||||||||
| Gas sales |
1,916 |
2,123 |
||||||||||
| Royalty |
(230,505) |
(209,762) |
||||||||||
| 461,209 |
$ |
84.50 |
423,773 |
$ |
89.94 |
|||||||
| EXPENSES: |
||||||||||||
| Operating expenses |
105,606 |
19.35 |
62,669 |
13.30 |
||||||||
| Workovers |
13,806 |
2.53 |
8,453 |
1.79 |
||||||||
| Depletion, depreciation and amortization |
58,676 |
10.75 |
41,334 |
8.78 |
||||||||
| General and administrative |
9,645 |
1.77 |
13,483 |
2.86 |
||||||||
| Windfall profits tax |
98,425 |
18.03 |
117,974 |
25.04 |
||||||||
| Windfall profits tax (credit) and reversal of credit |
55,168 |
10.11 |
(55,168) |
(11.71) |
||||||||
| 341,326 |
62.54 |
188,745 |
40.06 |
|||||||||
| INCOME FROM OPERATIONS |
119,883 |
21.96 |
235,028 |
49.88 |
||||||||
| Gain on exchange rate |
168 |
0.03 |
181,386 |
38.49 |
||||||||
| Investment earnings and other |
614 |
0.11 |
1,402 |
0.30 |
||||||||
| Interest expense |
(15,851) |
(2.90) |
(5,925) |
(1.25) |
||||||||
| Income before income tax |
104,814 |
19.20 |
411,891 |
87.42 |
||||||||
| Current income tax expense |
46,760 |
8.57 |
200,534 |
42.56 |
||||||||
| Deferred income tax benefit |
(32,698) |
(5.99) |
(41,110) |
(8.72) |
||||||||
| NET INCOME UNDER IFRS |
90,752 |
16.62 |
252,467 |
53.58 |
||||||||
| Adjustments to increase (decrease) net income under IFRS: |
||||||||||||
| Deferred income tax expense |
(24,048) |
(38,823) |
||||||||||
| Depletion expense |
(9,897) |
(12,178) |
||||||||||
| Windfall profits tax credit and (reversal) of credit |
55,168 |
(55,168) |
||||||||||
| Sports law over accrual |
740 |
188 |
||||||||||
| Net income under U.S. GAAP |
112,715 |
146,486 |
||||||||||
| Equity interest in equity affiliate |
40% |
40% |
||||||||||
| Income before amortization of excess basis in equity affiliate |
45,086 |
58,595 |
||||||||||
| Amortization of excess basis in equity affiliate |
(2,258) |
(1,522) |
||||||||||
| Earnings from equity affiliate excluded from results of operations |
(7,879) |
— |
||||||||||
| Earnings from equity affiliate included in income |
$ |
34,949 |
$ |
57,073 |
||||||||
SOURCE Harvest Natural Resources, Inc.
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