Cobalt International Energy, Inc. (“Cobalt”) (NYSE:CIE) today announced a net loss of $39 million, or $0.10 per basic and diluted share, for the third quarter of 2012, compared to a net loss of $47 million, or $0.12 per basic and diluted share, for the third quarter of 2011.
Total expenditures (excluding changes in working capital) for the quarter ending September 30, 2012 were approximately $129 million. These expenditures are consistent with previously announced 2012 estimated total expenditures of between $550 and $650 million. Cobalt’s cash, cash equivalents, and investments position at the end of the third quarter was approximately $1.5 billion. This included about $485 million designated for future operations held in escrow and collateralizing letters of credit, but excluded approximately $110 million in the TOTAL drilling fund for the U.S. Gulf of Mexico. Cobalt continues to have no outstanding debt.
A conference call for investors will be held today at 10 a.m. Central Time (11 a.m. Eastern Time) to discuss Cobalt’s third quarter results. Hosting the call will be Joseph H. Bryant, Chairman and Chief Executive Officer and John P. Wilkirson, Chief Financial Officer.
Due to the current storm on the East Coast the dial-in information has changed. The call can be accessed live over the telephone by dialing (888) 846-5003, or for international callers, (480) 629-9856. A replay will be available shortly after the call and can be accessed by dialing (877) 870-5176, or for international callers, (858) 384-5517. The passcode for the replay is 4573722. The replay will be available until November 13, 2012.
Interested parties may also listen to a simultaneous webcast of the conference call by accessing the Investors-Presentations and Publications section of Cobalt’s website at www.cobaltintl.com. A replay of the webcast will also be available for approximately 30 days following the call.
Cobalt is an independent oil exploration and production company focusing on the deepwater U.S. Gulf of Mexico and offshore Angola and Gabon. Cobalt was formed in 2005 and is headquartered in Houston, Texas.
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 — that is, statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address Cobalt’s expected future business and financial performance, and often contain words such as “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words. These forward-looking statements involve certain risks and uncertainties that ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. For further discussion of risks and uncertainties, individuals should refer to Cobalt’s SEC filings. Cobalt undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release, other than as required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Consolidated Statement of Operations Information (Unaudited):
For Three Months Ended
For Nine Months Ended
|($ in thousands except per share data)|
|Oil and gas revenue||$||—||$||—||$||—||$||—|
|Operating costs and expenses:|
|Seismic and exploration||6,327||4,757||35,682||12,010|
|Dry hole expense and impairment||15,041||31,840||131,720||36,859|
|General and administrative||18,916||11,459||52,239||36,115|
|Depreciation and amortization||269||186||782||549|
|Total operating costs and expenses||40,553||48,242||220,423||85,533|
|Operating income (loss)||(40,553||)||(48,242||)||(220,423||)||(85,533||)|
|Other income (expense):|
|Interest income (expense), net||1,339||1,255||3,955||3,010|
|Total other income (expense)||1,339||1,255||3,955||3,010|
|Net income (loss) before income tax||(39,214||)||(46,987||)||(216,468||)||(82,523||)|
|Income tax expense||—||—||—||—|
|Net income (loss)||$||(39,214||)||$||(46,987||)||$||(216,468||)||$||(82,523||)|
|Basic and diluted income (loss) per share||$||(0.10||)||$||(0.12||)||$||(0.54||)||$||(0.22||)|
|Weighted average common shares outstanding||406,543,628||386,826,845||402,272,534||373,073,307|
Consolidated Balance Sheet Information:
|($ in thousands)|
|Cash and cash equivalents||$||126,770||$||292,546|
|Short-term restricted funds||90,280||69,009|
|Total current assets||1,253,010||1,335,094|
|Total property, plant and equipment||1,026,124||863,326|
|Long-term restricted funds||394,453||270,235|
|Total current liabilities||150,884||238,069|
|Total long-term obligations||168,238||210,961|
|Total stockholders’ equity (406,559,153 and 387,531,630 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively)||2,368,510||2,078,914|
|Total liabilities and stockholders’ equity||2,689,209||2,527,944|
Consolidated Statement of Cash Flows Information (Unaudited):
|Nine Months Ending September 30,|
|($ in thousands)|
|Net cash provided by (used in):|