Warren Resources Inc fka WRESQ

[Dallas66]

Warren Resources Announces 4th Quarter and Year-end 2015 Financial and Operating Results
Warren Resources, Inc.
March 17, 2016 7:48 PM


DENVER, March 17, 2016 (GLOBE NEWSWIRE) --

Warren Resources, Inc. (WRES) (“Warren”) today reported its 4th quarter and full year 2015 financial and operating results.

Lower commodity prices in 2015 versus 2014 were the primary driver for all results recorded in 2015. The average sales price for oil in 2015 was $41.14 per barrel versus $86.02 per barrel in 2014, a 52% reduction. The average sales price for gas in 2015 was $1.55 per thousand cubic feet versus $3.06 in 2014, a 49% reduction. Oil production for 2015 was 980.3 MBbl versus 1,118.3 MBbl in 2014 or a 12% decline. Gas production in 2015 was 28.0 Bcf versus 16.1 Bcf in 2014. This 74% increase was primarily the result of a full year of Marcellus production in 2015 versus only approximately 5 months of Marcellus production in 2014.

Oil, gas and transportation revenues were $88.4 million in 2015 versus $150.7 million in 2014 reflecting costs and volumes detailed above.

Lease Operating Expenses were $49.6 million in 2015 versus $48.4 million in 2014. DD&A was $66.2 million in 2015 versus $56.5 million in 2014. Impairment expense was $578.3 million in 2015 as compared to no impairment in 2014. This impairment was related to a ceiling test write down of oil and gas properties and other long lived assets primarily associated with the decline in commodity prices in 2015. G&A expenses were $17.7 million in 2015 versus $15.3 in 2014. The primary increase was related to severance costs for closing the New York and Roswell, New Mexico offices and resultant personnel reductions. Non cash stock based compensation included in the above G&A expenses were $2.2 million in 2015 and $1.6 million in 2014. Interest expense in 2014 was $30.4 million versus $9.6 million reflecting the increased debt level in 2015 for the Marcellus acquisition in the third quarter of 2014. Derivative gains of $20.1 million were recorded in 2015 versus $7.4 million in 2014 reflecting the effectiveness of our hedging program. Realized gain in 2015 was $13 million.

Net loss for the year was $619.9 million or $7.55 per share, driven in large part by the $578.3 million impairment expense. Net gain for 2014 was $24.0 million or $0.31 per share.

James A. Watt, President and Chief Executive Officer of the Company stated, “Last year was a very difficult year for Warren and the majority of the oil and gas industry. Our current focus is on restructuring our balance sheet. We are currently in negotiations with all our debt holders in this effort. We will attempt to accomplish this restructuring out of court, however, there can be no guarantee that we can accomplish the necessary restructuring without the benefit of the protection of the courts.”

On March 17, 2016 Warren filed its annual report on Form 10-K (the “Form 10-K”) with the Securities and Exchange Commission. Warren makes available free of charge through its website, www.warrenresources.com, the Form 10-K and all amendments to the Form 10-K as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC at www.sec.gov. Warren will furnish a hard copy of the Form 10-K to stockholders free of charge upon request made to Warren’s principal office at 1331 17th Street, Suite 720, Denver, Colorado 80202.