Spyglass Resources Corp. Announces Earnings and Production Results for the Fourth Quarter and Full Year Ended December 31, 2014
Capital expenditures (prior to dispositions) for 2014 were $77.5 million which included successfully drilling 20 (16.3 net) horizontal light oil wells in Southern and Central Alberta, 1 (1 net) natural gas well at Noel in northeast British Columbia and remediation of the Dixonville property following the pipeline incidents in 2014. Funds flow from operations in 2014 totaled $58.9 million or $0.46 per share compared to $60.6 million or $0.54 per share in 2013. The 2014 results were impacted by downtime at Dixonville that resulted in approximately $15 million less cash flow contributed by the Dixonville property than in 2013. Net loss of $155.8 million in 2014 is driven by non-cash impairment charges of $126.6 million and a valuation allowance taken against the deferred tax asset of $49.3 million; both charges reflecting the significant decline in commodity price forecasts. Net debt at December 31, 2014 was $193.8 million, comprised of $174.7 million in long-term bank debt and a $19.1 million working capital deficit, lower by $107 million as compared to net debt of $300.5 million at December 31, 2013. Loss per share was $1.22 against income of $0.39 a year ago.
Production for the fourth quarter of 2014 averaged 12,666 boe/d (45% oil and liquids), incorporating the impact of successful non-core asset dispositions (approximately 1,400 boe/d) and Dixonville downtime (approximately 850 boe/d) as compared to the same period in 2013.
Production for 2014 averaged 13,798 boe/d, a decrease from 15,215 boe/d in 2013 reflecting the company's 2014 disposition program and downtime at Dixonville partially offset by the successful light oil and natural gas drilling and optimization program.