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Share Name | Share Symbol | Market | Type |
---|---|---|---|
EP Energy Corp. Class A | NYSE:EPE | NYSE | Ordinary Share |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.16 | 0.00 | 01:00:00 |
|
|
|
|
Delaware
|
46-3472728
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
1001 Louisiana Street
Houston, Texas
|
77002
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
|
|
Caption
|
Page
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
/d
|
=
|
per day
|
Bbl
|
=
|
barrel
|
Boe
|
=
|
barrel of oil equivalent
|
Gal
|
=
|
gallons
|
LLS
|
=
|
light Louisiana sweet crude oil
|
MBoe
|
=
|
thousand barrels of oil equivalent
|
MBbls
|
=
|
thousand barrels
|
Mcf
|
=
|
thousand cubic feet
|
MMBtu
|
=
|
million British thermal units
|
MMBbls
|
=
|
million barrels
|
MMcf
|
=
|
million cubic feet
|
MMGal
|
=
|
million gallons
|
Mt. Belvieu
|
=
|
Mont Belvieu natural gas liquids pricing index
|
NGLs
|
=
|
natural gas liquids
|
NYMEX
|
=
|
New York Mercantile Exchange
|
TBtu
|
=
|
trillion British thermal units
|
WTI
|
=
|
West Texas intermediate
|
|
Quarter ended June 30,
|
|
Six months ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil
|
$
|
202
|
|
|
$
|
165
|
|
|
$
|
406
|
|
|
$
|
294
|
|
Natural gas
|
27
|
|
|
25
|
|
|
57
|
|
|
67
|
|
||||
NGLs
|
22
|
|
|
15
|
|
|
45
|
|
|
26
|
|
||||
Financial derivatives
|
45
|
|
|
(105
|
)
|
|
115
|
|
|
(63
|
)
|
||||
Total operating revenues
|
296
|
|
|
100
|
|
|
623
|
|
|
324
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil and natural gas purchases
|
1
|
|
|
3
|
|
|
2
|
|
|
7
|
|
||||
Transportation costs
|
28
|
|
|
24
|
|
|
57
|
|
|
54
|
|
||||
Lease operating expense
|
39
|
|
|
38
|
|
|
79
|
|
|
80
|
|
||||
General and administrative
|
26
|
|
|
32
|
|
|
46
|
|
|
70
|
|
||||
Depreciation, depletion and amortization
|
124
|
|
|
97
|
|
|
250
|
|
|
210
|
|
||||
Gain on sale of assets
|
—
|
|
|
(82
|
)
|
|
—
|
|
|
(82
|
)
|
||||
Impairment charges
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Exploration and other expense
|
1
|
|
|
1
|
|
|
4
|
|
|
2
|
|
||||
Taxes, other than income taxes
|
15
|
|
|
14
|
|
|
34
|
|
|
28
|
|
||||
Total operating expenses
|
235
|
|
|
127
|
|
|
473
|
|
|
369
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating income (loss)
|
61
|
|
|
(27
|
)
|
|
150
|
|
|
(45
|
)
|
||||
Gain (loss) on extinguishment of debt
|
13
|
|
|
162
|
|
|
(40
|
)
|
|
358
|
|
||||
Interest expense
|
(82
|
)
|
|
(73
|
)
|
|
(165
|
)
|
|
(157
|
)
|
||||
(Loss) income before income taxes
|
(8
|
)
|
|
62
|
|
|
(55
|
)
|
|
156
|
|
||||
Income tax benefit
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
||||
Net (loss) income
|
$
|
(3
|
)
|
|
$
|
62
|
|
|
$
|
(50
|
)
|
|
$
|
156
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net (loss) income per common share
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net (loss) income
|
$
|
(0.01
|
)
|
|
$
|
0.25
|
|
|
$
|
(0.20
|
)
|
|
$
|
0.64
|
|
Basic weighted average common shares outstanding
|
246
|
|
|
245
|
|
|
246
|
|
|
244
|
|
||||
Diluted net (loss) income per common share
|
|
|
|
|
|
|
|
||||||||
Net (loss) income
|
$
|
(0.01
|
)
|
|
$
|
0.25
|
|
|
$
|
(0.20
|
)
|
|
$
|
0.64
|
|
Diluted weighted average common shares outstanding
|
246
|
|
|
245
|
|
|
246
|
|
|
246
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
ASSETS
|
|
|
|
|
|
||
Current assets
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
44
|
|
|
$
|
20
|
|
Accounts receivable
|
|
|
|
|
|
||
Customer, net of allowance of less than $1 in 2017 and 2016
|
126
|
|
|
133
|
|
||
Other, net of allowance of $1 in 2017 and 2016
|
40
|
|
|
16
|
|
||
Income tax receivable
|
5
|
|
|
—
|
|
||
Materials and supplies
|
14
|
|
|
16
|
|
||
Derivative instruments
|
87
|
|
|
58
|
|
||
Prepaid assets
|
4
|
|
|
5
|
|
||
Total current assets
|
320
|
|
|
248
|
|
||
Property, plant and equipment, at cost
|
|
|
|
|
|
||
Oil and natural gas properties
|
7,465
|
|
|
7,194
|
|
||
Other property, plant and equipment
|
86
|
|
|
85
|
|
||
|
7,551
|
|
|
7,279
|
|
||
Less accumulated depreciation, depletion and amortization
|
3,020
|
|
|
2,781
|
|
||
Total property, plant and equipment, net
|
4,531
|
|
|
4,498
|
|
||
Other assets
|
|
|
|
|
|
||
Derivative instruments
|
27
|
|
|
4
|
|
||
Unamortized debt issue costs - revolving credit facility
|
9
|
|
|
10
|
|
||
Other
|
1
|
|
|
1
|
|
||
|
37
|
|
|
15
|
|
||
Total assets
|
$
|
4,888
|
|
|
$
|
4,761
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
LIABILITIES AND EQUITY
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
||
Accounts payable
|
|
|
|
|
|
||
Trade
|
$
|
70
|
|
|
$
|
63
|
|
Other
|
111
|
|
|
113
|
|
||
Derivative instruments
|
—
|
|
|
4
|
|
||
Accrued interest
|
65
|
|
|
43
|
|
||
Short-term debt, net of debt issue costs
|
121
|
|
|
—
|
|
||
Other accrued liabilities
|
93
|
|
|
98
|
|
||
Total current liabilities
|
460
|
|
|
321
|
|
||
|
|
|
|
||||
Long-term debt, net of debt issue costs
|
3,825
|
|
|
3,789
|
|
||
Other long-term liabilities
|
|
|
|
|
|
||
Derivative instruments
|
—
|
|
|
1
|
|
||
Asset retirement obligations
|
40
|
|
|
40
|
|
||
Other
|
4
|
|
|
4
|
|
||
Total non-current liabilities
|
3,869
|
|
|
3,834
|
|
||
|
|
|
|
||||
Commitments and contingencies (Note 8)
|
|
|
|
|
|
||
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
|
|
||
Class A shares, $0.01 par value; 550 million shares authorized; 255 million shares issued and outstanding at June 30, 2017; 251 million shares issued and outstanding at December 31, 2016
|
3
|
|
|
2
|
|
||
Class B shares, $0.01 par value; 0.7 million and 0.8 million shares authorized, issued and outstanding at June 30, 2017 and December 31, 2016
|
—
|
|
|
—
|
|
||
Preferred stock, $0.01 par value; 50 million shares authorized; no shares issued or outstanding
|
—
|
|
|
—
|
|
||
Treasury stock (at cost); 0.7 million shares at June 30, 2017 and 0.5 million shares at December 31, 2016
|
(3
|
)
|
|
(3
|
)
|
||
Additional paid-in capital
|
3,549
|
|
|
3,546
|
|
||
Accumulated deficit
|
(2,990
|
)
|
|
(2,939
|
)
|
||
Total stockholders’ equity
|
559
|
|
|
606
|
|
||
Total liabilities and equity
|
$
|
4,888
|
|
|
$
|
4,761
|
|
|
Six months ended
June 30, |
||||||
|
2017
|
|
2016
|
||||
Cash flows from operating activities
|
|
|
|
|
|
||
Net (loss) income
|
$
|
(50
|
)
|
|
$
|
156
|
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities
|
|
|
|
|
|
||
Depreciation, depletion and amortization
|
250
|
|
|
210
|
|
||
Gain on sale of assets
|
—
|
|
|
(82
|
)
|
||
Impairment charges
|
1
|
|
|
—
|
|
||
Loss (gain) on extinguishment of debt
|
40
|
|
|
(358
|
)
|
||
Other non-cash income items
|
14
|
|
|
17
|
|
||
Asset and liability changes
|
|
|
|
|
|
||
Accounts receivable
|
(17
|
)
|
|
88
|
|
||
Accounts payable
|
(7
|
)
|
|
(32
|
)
|
||
Derivative instruments
|
(57
|
)
|
|
434
|
|
||
Accrued interest
|
22
|
|
|
(10
|
)
|
||
Other asset changes
|
(3
|
)
|
|
4
|
|
||
Other liability changes
|
(12
|
)
|
|
(21
|
)
|
||
Net cash provided by operating activities
|
181
|
|
|
406
|
|
||
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
|
|
||
Cash paid for capital expenditures
|
(266
|
)
|
|
(258
|
)
|
||
Proceeds from the sale of assets
|
—
|
|
|
390
|
|
||
Net cash (used in) provided by investing activities
|
(266
|
)
|
|
132
|
|
||
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
|
|
||
Proceeds from issuance of long-term debt
|
1,385
|
|
|
575
|
|
||
Repayments and repurchases of long-term debt
|
(1,253
|
)
|
|
(1,097
|
)
|
||
Debt issue costs
|
(20
|
)
|
|
(1
|
)
|
||
Other
|
(3
|
)
|
|
(2
|
)
|
||
Net cash provided by (used in) financing activities
|
109
|
|
|
(525
|
)
|
||
|
|
|
|
||||
Change in cash and cash equivalents
|
24
|
|
|
13
|
|
||
Cash and cash equivalents
|
|
|
|
|
|
||
Beginning of period
|
20
|
|
|
26
|
|
||
End of period
|
$
|
44
|
|
|
$
|
39
|
|
|
Class A Stock
|
|
Class B Stock
|
|
Treasury Stock
|
|
Additional
Paid-in Capital
|
|
Accumulated Deficit
|
|
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
Total
|
|||||||||||||||||
Balance at December 31, 2016
|
251
|
|
|
$
|
2
|
|
|
0.8
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
3,546
|
|
|
$
|
(2,939
|
)
|
|
$
|
606
|
|
Cumulative effect of accounting change
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
||||||
Balance at January 1, 2017
|
251
|
|
|
$
|
2
|
|
|
0.8
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
3,547
|
|
|
$
|
(2,940
|
)
|
|
$
|
606
|
|
Share-based compensation
|
4
|
|
|
1
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
3
|
|
||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
(50
|
)
|
||||||
Balance at June 30, 2017
|
255
|
|
|
$
|
3
|
|
|
0.7
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
3,549
|
|
|
$
|
(2,990
|
)
|
|
$
|
559
|
|
|
Quarter ended
June 30, 2016 |
|
Six months ended
June 30, 2016 |
||||
Operating revenues
|
$
|
6
|
|
|
$
|
26
|
|
|
|
|
|
||||
Operating expenses
|
|
|
|
|
|||
Transportation costs
|
2
|
|
|
7
|
|
||
Lease operating expense
|
—
|
|
|
1
|
|
||
Depreciation, depletion and amortization
|
—
|
|
|
16
|
|
||
Other expense
|
1
|
|
|
5
|
|
||
Total operating expenses
|
3
|
|
|
29
|
|
||
Gain on sale of assets
|
83
|
|
|
83
|
|
||
Income before income taxes
|
$
|
86
|
|
|
$
|
80
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
|
(in millions)
|
||||||||||||||
Short-term debt
|
$
|
122
|
|
|
$
|
92
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Long-term debt (see Note 7)
|
$
|
3,877
|
|
|
$
|
3,034
|
|
|
$
|
3,856
|
|
|
$
|
3,637
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
114
|
|
|
$
|
114
|
|
|
$
|
57
|
|
|
$
|
57
|
|
|
Level 2
|
||||||||||||||||||||||||||||||
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||||||||||||||||||
|
Gross
Fair Value
|
|
|
|
Balance Sheet Location
|
|
Gross
Fair Value
|
|
|
|
Balance Sheet Location
|
||||||||||||||||||||
|
|
Impact of
Netting
|
|
Current
|
|
Non-
current
|
|
|
Impact of
Netting
|
|
Current
|
|
Non-
current
|
||||||||||||||||||
|
(in millions)
|
|
(in millions)
|
||||||||||||||||||||||||||||
June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
120
|
|
|
$
|
(6
|
)
|
|
$
|
87
|
|
|
$
|
27
|
|
|
$
|
(6
|
)
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
$
|
79
|
|
|
$
|
(17
|
)
|
|
$
|
58
|
|
|
$
|
4
|
|
|
$
|
(22
|
)
|
|
$
|
17
|
|
|
$
|
(4
|
)
|
|
$
|
(1
|
)
|
|
June 30, 2017
|
|
December 31, 2016
|
|||||
|
(in millions)
|
|||||||
Proved
|
|
|
|
|||||
Eagle Ford
|
$
|
3,118
|
|
|
$
|
3,001
|
|
|
Wolfcamp
|
2,571
|
|
|
2,415
|
|
|||
Altamont
|
1,665
|
|
|
1,624
|
|
|||
Total Proved
|
7,354
|
|
|
7,040
|
|
|||
Unproved
|
|
|
|
|||||
Wolfcamp
|
50
|
|
|
94
|
|
|||
Altamont
|
61
|
|
|
60
|
|
|||
Total Unproved
|
111
|
|
|
154
|
|
|||
Less accumulated depletion
|
2,964
|
|
|
2,731
|
|
|||
Net capitalized costs for oil and natural gas properties
|
$
|
4,501
|
|
|
$
|
4,463
|
|
|
2017
|
||
|
(in millions)
|
||
Net asset retirement liability at January 1
|
$
|
41
|
|
Liabilities settled
|
(1
|
)
|
|
Accretion expense
|
2
|
|
|
Net asset retirement liability at June 30
|
$
|
42
|
|
|
Interest Rate
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
|
|
(in millions)
|
||||||
RBL credit facility - due May 24, 2019
(1)
|
Variable
|
|
$
|
400
|
|
|
$
|
370
|
|
Senior secured term loans:
|
|
|
|
|
|
||||
Due May 24, 2018
(2)(4)
|
Variable
|
|
21
|
|
|
21
|
|
||
Due April 30, 2019
(3)(4)
|
Variable
|
|
8
|
|
|
8
|
|
||
Due June 30, 2021
(5)
|
Variable
|
|
—
|
|
|
580
|
|
||
Senior secured notes:
|
|
|
|
|
|
||||
Due November 29, 2024
|
8.00%
|
|
500
|
|
|
500
|
|
||
Due February 15, 2025
|
8.00%
|
|
1,000
|
|
|
—
|
|
||
Senior unsecured notes:
|
|
|
|
|
|
||||
Due May 1, 2020
|
9.375%
|
|
1,269
|
|
|
1,576
|
|
||
Due September 1, 2022
|
7.75%
|
|
250
|
|
|
250
|
|
||
Due June 15, 2023
|
6.375%
|
|
551
|
|
|
551
|
|
||
Total debt
|
|
|
3,999
|
|
|
3,856
|
|
||
Less short-term debt, net of debt issue costs of $1 million
|
|
|
(121
|
)
|
|
—
|
|
||
Total long-term debt
|
|
|
3,878
|
|
|
3,856
|
|
||
Less non-current portion of unamortized debt issue costs
|
|
|
(53
|
)
|
|
(67
|
)
|
||
Total long-term debt, net
|
|
|
$
|
3,825
|
|
|
$
|
3,789
|
|
|
(1)
|
Carries interest at a specified margin over
LIBOR
of
2.50%
to
3.50%
, based on borrowing utilization.
|
(5)
|
As of
December 31, 2016
, the effective interest rate for the term loan was
9.75%
.
|
|
|
Number of Shares
|
|
Weighted Average
Grant Date Fair Value
per Share
|
|||
Non-vested at December 31, 2016
|
|
6,326,788
|
|
|
$
|
7.69
|
|
Granted
|
|
5,100,511
|
|
|
$
|
4.29
|
|
Vested
|
|
(2,139,233
|
)
|
|
$
|
8.28
|
|
Forfeited
|
|
(596,633
|
)
|
|
$
|
7.45
|
|
Non-vested at June 30, 2017
|
|
8,691,433
|
|
|
$
|
5.56
|
|
|
Number of Awards
|
|
Weighted Average
Fair Value
|
|||
Non-vested at December 31, 2016
|
78,900
|
|
|
$
|
97.77
|
|
Granted
(1)
|
40,470
|
|
|
$
|
36.57
|
|
Vested
|
(22,302
|
)
|
|
$
|
159.92
|
|
Forfeited
|
(12,000
|
)
|
|
$
|
159.92
|
|
Non-vested at June 30, 2017
|
85,068
|
|
|
$
|
70.63
|
|
|
(1)
|
Grant date fair value at March 16, 2017 is based on: (i) an expected term of 3 years, (ii) expected volatility of
96.71%
, which is based upon the historical stock price volatility and (iii) a risk-free interest rate of
1.57%
, based upon the yield on U.S. Treasury STRIPS over the expected term as of the grant date.
|
|
|
2017
|
|
2018
|
|
2019
|
|||||||||||||||
|
|
Volumes
(1)
|
|
Average
Price
(1)
|
|
Volumes
(1)
|
|
Average
Price
(1)
|
|
Volumes
(1)
|
|
Average
Price
(1)
|
|||||||||
Oil
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fixed Price Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
WTI
|
|
552
|
|
|
$
|
58.05
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Three Way Collars
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ceiling - WTI
|
|
4,453
|
|
|
$
|
70.37
|
|
|
8,859
|
|
|
$
|
68.15
|
|
|
—
|
|
|
$
|
—
|
|
Floors - WTI
(2)(3)
|
|
4,453
|
|
|
$
|
60.62
|
|
|
8,859
|
|
|
$
|
60.00
|
|
|
—
|
|
|
$
|
—
|
|
Basis Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
LLS vs. Brent
(4)
|
|
1,840
|
|
|
$
|
(3.14
|
)
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Midland vs. Cushing
(5)
|
|
1,288
|
|
|
$
|
(0.81
|
)
|
|
2,190
|
|
|
$
|
(1.10
|
)
|
|
—
|
|
|
$
|
—
|
|
Natural Gas
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Fixed Price Swaps
|
|
12
|
|
|
$
|
3.25
|
|
|
26
|
|
|
$
|
3.04
|
|
|
7
|
|
|
$
|
2.97
|
|
Ceiling
|
|
5
|
|
|
$
|
3.67
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Floors
|
|
5
|
|
|
$
|
3.35
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Basis Swaps
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
WAHA vs. Henry Hub
(6)
|
|
7
|
|
|
$
|
(0.34
|
)
|
|
15
|
|
|
$
|
(0.46
|
)
|
|
7
|
|
|
$
|
(0.39
|
)
|
NGLs
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Fixed Price Swaps - Ethane
|
|
31
|
|
|
$
|
0.27
|
|
|
62
|
|
|
$
|
0.30
|
|
|
—
|
|
|
$
|
—
|
|
Fixed Price Swaps - Propane
|
|
19
|
|
|
$
|
0.67
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
(1)
|
Volumes presented are MBbls for oil, TBtu for natural gas and MMGal for NGLs. Prices presented are per Bbl of oil, MMBtu of natural gas and Gal for NGLs.
|
(2)
|
If market prices settle at or below
$46.24
in 2017, we will receive a “locked-in” cash settlement of the market price plus
$14.38
per Bbl.
|
(3)
|
If market prices settle at or below
$50.00
in 2018, we will receive a “locked-in” cash settlement of the market price plus
$10.00
per Bbl.
|
(4)
|
EP Energy receives Brent plus the basis spread listed and pays LLS. These positions listed do not include offsetting LLS vs. Brent basis swaps on our 1.84 MBbls LLS vs. Brent with an average of $(0.46) per barrel of oil.
|
(5)
|
EP Energy receives Cushing plus the basis spread listed and pays Midland.
|
(6)
|
EP Energy receives Henry Hub plus the basis spread listed and pays WAHA.
|
|
2017
|
|
2016
|
||
Equivalent Volumes (MBoe/d)
|
|
|
|
|
|
Wolfcamp Shale
|
26.4
|
|
|
18.0
|
|
Eagle Ford Shale
|
39.6
|
|
|
47.9
|
|
Altamont
|
17.7
|
|
|
15.9
|
|
Other
(1)
|
—
|
|
|
12.5
|
|
Total
|
83.7
|
|
|
94.3
|
|
|
|
|
|
||
Oil (MBbls/d)
|
48.0
|
|
|
47.9
|
|
Natural Gas (MMcf/d)
(1)
|
126
|
|
|
193
|
|
NGLs (MBbls/d)
|
14.8
|
|
|
14.2
|
|
|
(1)
|
Primarily consists of Haynesville Shale which was sold in May 2016. For the
six
months ended
June 30
, 2016, natural gas volumes included
75
MMcf/d from the Haynesville Shale.
|
•
|
Wolfcamp Shale
—Our Wolfcamp Shale equivalent volumes
increased
8.4
MBoe/d (approximately
47%
) and oil production
increased
by
3.6
MBbls/d (approximately
52%
) for the
six
months ended
June 30, 2017
compared to the same period in
2016
. During the
six
months ended
June 30, 2017
, we completed
32
additional operated wells, for a total of 303 net operated wells as of
June 30, 2017
.
|
•
|
Eagle Ford Shale
—Our Eagle Ford Shale equivalent volumes
decreased
by
8.3
MBoe/d (approximately
17%
) and oil production
decreased
by
4.6
MBbls/d (approximately
15%
) for the
six
months ended
June 30, 2017
compared to the same period in
2016
. During the
six
months ended
June 30, 2017
, we completed
39
additional operated wells in the Eagle Ford, for a total of 636 net operated wells as of
June 30, 2017
.
|
•
|
Altamont
—Our Altamont equivalent volumes
increased
1.8
MBoe/d (approximately
11%
) and oil production
increased
by
1.1
MBbls/d (approximately
10%
) for the
six
months ended
June 30, 2017
compared to the same period in
2016
. During the
six
months ended
June 30, 2017
, we completed
eight
additional operated oil wells, for a total of 378 net operated wells as of
June 30, 2017
.
|
|
Quarter ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in millions)
|
||||||||||||||
Operating revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil
|
$
|
202
|
|
|
$
|
165
|
|
|
$
|
406
|
|
|
$
|
294
|
|
Natural gas
|
27
|
|
|
25
|
|
|
57
|
|
|
67
|
|
||||
NGLs
|
22
|
|
|
15
|
|
|
45
|
|
|
26
|
|
||||
Total physical sales
|
251
|
|
|
205
|
|
|
508
|
|
|
387
|
|
||||
Financial derivatives
|
45
|
|
|
(105
|
)
|
|
115
|
|
|
(63
|
)
|
||||
Total operating revenues
|
296
|
|
|
100
|
|
|
623
|
|
|
324
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil and natural gas purchases
|
1
|
|
|
3
|
|
|
2
|
|
|
7
|
|
||||
Transportation costs
|
28
|
|
|
24
|
|
|
57
|
|
|
54
|
|
||||
Lease operating expense
|
39
|
|
|
38
|
|
|
79
|
|
|
80
|
|
||||
General and administrative
|
26
|
|
|
32
|
|
|
46
|
|
|
70
|
|
||||
Depreciation, depletion and amortization
|
124
|
|
|
97
|
|
|
250
|
|
|
210
|
|
||||
Gain on sale of assets
|
—
|
|
|
(82
|
)
|
|
—
|
|
|
(82
|
)
|
||||
Impairment charges
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Exploration and other expense
|
1
|
|
|
1
|
|
|
4
|
|
|
2
|
|
||||
Taxes, other than income taxes
|
15
|
|
|
14
|
|
|
34
|
|
|
28
|
|
||||
Total operating expenses
|
235
|
|
|
127
|
|
|
473
|
|
|
369
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Operating income (loss)
|
61
|
|
|
(27
|
)
|
|
150
|
|
|
(45
|
)
|
||||
Gain (loss) on extinguishment of debt
|
13
|
|
|
162
|
|
|
(40
|
)
|
|
358
|
|
||||
Interest expense
|
(82
|
)
|
|
(73
|
)
|
|
(165
|
)
|
|
(157
|
)
|
||||
(Loss) income before income taxes
|
(8
|
)
|
|
62
|
|
|
(55
|
)
|
|
156
|
|
||||
Income tax benefit
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
||||
Net (loss) income
|
$
|
(3
|
)
|
|
$
|
62
|
|
|
$
|
(50
|
)
|
|
$
|
156
|
|
|
Quarter ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in millions)
|
||||||||||||||
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil
|
$
|
202
|
|
|
$
|
165
|
|
|
$
|
406
|
|
|
$
|
294
|
|
Natural gas
|
27
|
|
|
25
|
|
|
57
|
|
|
67
|
|
||||
NGLs
|
22
|
|
|
15
|
|
|
45
|
|
|
26
|
|
||||
Total physical sales
|
251
|
|
|
205
|
|
|
508
|
|
|
387
|
|
||||
Financial derivatives
|
45
|
|
|
(105
|
)
|
|
115
|
|
|
(63
|
)
|
||||
Total operating revenues
|
$
|
296
|
|
|
$
|
100
|
|
|
$
|
623
|
|
|
$
|
324
|
|
|
|
|
|
|
|
|
|
||||||||
Volumes:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil (MBbls)
|
4,452
|
|
|
4,100
|
|
|
8,671
|
|
|
8,724
|
|
||||
Natural gas (MMcf)
(1)
|
11,353
|
|
|
13,954
|
|
|
22,818
|
|
|
35,104
|
|
||||
NGLs (MBbls)
|
1,386
|
|
|
1,265
|
|
|
2,682
|
|
|
2,582
|
|
||||
Equivalent volumes (MBoe)
(1)
|
7,730
|
|
|
7,691
|
|
|
15,156
|
|
|
17,157
|
|
||||
Total MBoe/d
(1)
|
84.9
|
|
|
84.5
|
|
|
83.7
|
|
|
94.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Prices per unit
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average realized price on physical sales ($/Bbl)
(3)
|
$
|
45.27
|
|
|
$
|
40.13
|
|
|
$
|
46.81
|
|
|
$
|
33.64
|
|
Average realized price, including financial derivatives ($/Bbl)
(3)(4)
|
$
|
51.83
|
|
|
$
|
77.45
|
|
|
$
|
53.33
|
|
|
$
|
74.95
|
|
Natural gas
|
|
|
|
|
|
|
|
|
|
|
|||||
Average realized price on physical sales ($/Mcf)
(3)
|
$
|
2.40
|
|
|
$
|
1.60
|
|
|
$
|
2.45
|
|
|
$
|
1.73
|
|
Average realized price, including financial derivatives ($/Mcf)
(3)(4)
|
$
|
2.49
|
|
|
$
|
1.90
|
|
|
$
|
2.48
|
|
|
$
|
1.95
|
|
NGLs
|
|
|
|
|
|
|
|
|
|
|
|||||
Average realized price on physical sales ($/Bbl)
|
$
|
16.00
|
|
|
$
|
11.90
|
|
|
$
|
16.79
|
|
|
$
|
10.03
|
|
Average realized price, including financial derivatives ($/Bbl)
(4)
|
$
|
16.56
|
|
|
$
|
12.06
|
|
|
$
|
17.14
|
|
|
$
|
10.34
|
|
|
(1)
|
For the quarter ended
June 30, 2016
, Haynesville Shale production volumes were 3,437 MMcf of natural gas and 573 MBoe (6.3 MBoe/d) of equivalent volumes. For the
six
months ended
June 30, 2016
, Haynesville Shale production volumes were 13,563 MMcf of natural gas and 2,260 MBoe (12.4 MBoe/d) of equivalent volumes.
|
(2)
|
Natural gas prices for the
quarter and six
months ended
June 30, 2017
reflect operating revenues for natural gas reduced by approximately $1 million and $2 million, respectively, for natural gas purchases associated with managing our physical sales. Natural gas prices for the
quarter and six
months ended
June 30, 2016
reflect operating revenues for natural gas reduced by approximately $3 million and $7 million, respectively, for natural gas purchases associated with managing our physical sales. Oil prices for the
quarter and six
months ended
June 30, 2016
reflect operating revenues for oil reduced by less than $1 million and approximately $1 million, respectively, for oil purchases associated with managing our physical sales.
|
(3)
|
Changes in realized oil and natural gas prices reflect the effects of unfavorable unhedged locational or basis differentials, unhedged volumes and contractual deductions between the commodity price index and the actual price at which we sold our oil and natural gas.
|
(4)
|
The quarters ended
June 30, 2017
and
2016
, include approximately $30 million and $153 million, respectively, of cash received for the settlement of crude oil derivative contracts and approximately $1 million and $4 million of cash received, respectively, for the settlement of natural gas financial derivatives. The
six
months ended
June 30, 2017
and
2016
, include approximately $57 million and $360 million, respectively, of cash received for the settlement of crude oil derivative contracts and approximately $1 million and $8 million of cash received, respectively, for the settlement of natural gas financial derivatives. The quarters ended
June 30, 2017
and
2016
each include less than $1 million of cash received for the settlement of NGLs derivative contracts. The
six
months ended
June 30, 2017
and
2016
, each include approximately $1 million of cash received for the settlement of NGLs derivative contracts.
|
|
Quarter ended
|
||||||||||||||
|
Oil
|
|
Natural gas
|
|
NGLs
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
June 30, 2016 sales
|
$
|
165
|
|
|
$
|
25
|
|
|
$
|
15
|
|
|
$
|
205
|
|
Change due to prices
|
23
|
|
|
8
|
|
|
6
|
|
|
37
|
|
||||
Change due to volumes
|
14
|
|
|
(6
|
)
|
|
1
|
|
|
9
|
|
||||
June 30, 2017 sales
|
$
|
202
|
|
|
$
|
27
|
|
|
$
|
22
|
|
|
$
|
251
|
|
|
Six months ended
|
||||||||||||||
|
Oil
|
|
Natural gas
|
|
NGLs
|
|
Total
|
||||||||
|
(in millions)
|
||||||||||||||
June 30, 2016 sales
|
$
|
294
|
|
|
$
|
67
|
|
|
$
|
26
|
|
|
$
|
387
|
|
Change due to prices
|
114
|
|
|
14
|
|
|
18
|
|
|
146
|
|
||||
Change due to volumes
|
(2
|
)
|
|
(24
|
)
|
|
1
|
|
|
(25
|
)
|
||||
June 30, 2017 sales
|
$
|
406
|
|
|
$
|
57
|
|
|
$
|
45
|
|
|
$
|
508
|
|
|
Quarter ended June 30,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Oil
(Bbl)
|
|
Natural gas
(MMBtu)
|
|
Oil
(Bbl)
|
|
Natural gas
(MMBtu)
|
||||||||
Differentials and deducts
|
$
|
(3.16
|
)
|
|
$
|
(0.79
|
)
|
|
$
|
(5.36
|
)
|
|
$
|
(0.34
|
)
|
NYMEX
|
$
|
48.29
|
|
|
$
|
3.19
|
|
|
$
|
45.59
|
|
|
$
|
1.95
|
|
Net back realization %
|
93.5
|
%
|
|
75.2
|
%
|
|
88.2
|
%
|
|
82.6
|
%
|
|
Six months ended June 30,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Oil
(Bbl)
|
|
Natural gas
(MMBtu)
|
|
Oil
(Bbl)
|
|
Natural gas
(MMBtu)
|
||||||||
Differentials and deducts
|
$
|
(3.52
|
)
|
|
$
|
(0.80
|
)
|
|
$
|
(5.82
|
)
|
|
$
|
(0.30
|
)
|
NYMEX
|
$
|
50.10
|
|
|
$
|
3.25
|
|
|
$
|
39.52
|
|
|
$
|
2.02
|
|
Net back realization %
|
93.0
|
%
|
|
75.4
|
%
|
|
85.3
|
%
|
|
85.1
|
%
|
|
Quarter ended June 30,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Total
|
|
Per Unit
(1)
|
|
Total
|
|
Per Unit
(1)
|
||||||||
|
(in millions, except per unit costs)
|
||||||||||||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Oil and natural gas purchases
|
$
|
1
|
|
|
$
|
0.09
|
|
|
$
|
3
|
|
|
$
|
0.38
|
|
Transportation costs
|
28
|
|
|
3.66
|
|
|
24
|
|
|
3.19
|
|
||||
Lease operating expense
|
39
|
|
|
5.07
|
|
|
38
|
|
|
4.93
|
|
||||
General and administrative
(2)
|
26
|
|
|
3.43
|
|
|
32
|
|
|
4.20
|
|
||||
Depreciation, depletion and amortization
|
124
|
|
|
15.99
|
|
|
97
|
|
|
12.67
|
|
||||
Gain on sale of assets
|
—
|
|
|
—
|
|
|
(82
|
)
|
|
(10.77
|
)
|
||||
Impairment charges
|
1
|
|
|
0.05
|
|
|
—
|
|
|
—
|
|
||||
Exploration and other expense
|
1
|
|
|
0.20
|
|
|
1
|
|
|
0.12
|
|
||||
Taxes, other than income taxes
|
15
|
|
|
1.97
|
|
|
14
|
|
|
1.75
|
|
||||
Total operating expenses
|
$
|
235
|
|
|
$
|
30.46
|
|
|
$
|
127
|
|
|
$
|
16.47
|
|
|
|
|
|
|
|
|
|
||||||||
Total equivalent volumes (MBoe)
|
7,730
|
|
|
|
|
|
7,691
|
|
|
|
|
|
Six months ended June 30,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Total
|
|
Per Unit
(1)
|
|
Total
|
|
Per Unit
(1)
|
||||||||
|
(in millions, except per unit costs)
|
||||||||||||||
Operating expenses
|
|
|
|
|
|
|
|
||||||||
Oil and natural gas purchases
|
$
|
2
|
|
|
$
|
0.12
|
|
|
$
|
7
|
|
|
$
|
0.42
|
|
Transportation costs
|
57
|
|
|
3.75
|
|
|
54
|
|
|
3.15
|
|
||||
Lease operating expense
|
79
|
|
|
5.21
|
|
|
80
|
|
|
4.63
|
|
||||
General and administrative
(2)
|
46
|
|
|
3.05
|
|
|
70
|
|
|
4.11
|
|
||||
Depreciation, depletion and amortization
|
250
|
|
|
16.48
|
|
|
210
|
|
|
12.27
|
|
||||
Gain on sale of assets
|
—
|
|
|
—
|
|
|
(82
|
)
|
|
(4.81
|
)
|
||||
Impairment charges
|
1
|
|
|
0.04
|
|
|
—
|
|
|
—
|
|
||||
Exploration and other expense
|
4
|
|
|
0.29
|
|
|
2
|
|
|
0.11
|
|
||||
Taxes, other than income taxes
|
34
|
|
|
2.28
|
|
|
28
|
|
|
1.64
|
|
||||
Total operating expenses
|
$
|
473
|
|
|
$
|
31.22
|
|
|
$
|
369
|
|
|
$
|
21.52
|
|
|
|
|
|
|
|
|
|
||||||||
Total equivalent volumes (MBoe)
|
15,156
|
|
|
|
|
|
17,157
|
|
|
|
|
|
(1)
|
Per unit costs are based on actual amounts rather than the rounded totals presented.
|
(2)
|
For the quarter and
six
months ended
June 30, 2017
, amount includes approximately
$6 million
or
$0.80
per Boe and
$2 million
or
$0.14
per Boe, respectively, of non-cash compensation expense. For the quarter and
six
months ended
June 30, 2016
, amount includes approximately
$2 million
or
$0.25
per Boe and
$10 million
or
$0.57
per Boe, respectively, of transition and severance costs related to workforce reductions and
$3 million
or
$0.35
per Boe and
$7 million
or
$0.39
per Boe, respectively, of non-cash compensation expense.
|
|
Quarter ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Depreciation, depletion and amortization ($/Boe)
|
$
|
15.99
|
|
|
$
|
12.67
|
|
|
$
|
16.48
|
|
|
$
|
12.27
|
|
|
Quarter ended
June 30, |
|
Six months ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
(in millions)
|
||||||||||||||
Net (loss) income
|
$
|
(3
|
)
|
|
$
|
62
|
|
|
$
|
(50
|
)
|
|
$
|
156
|
|
Income tax benefit
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
||||
Interest expense, net of capitalized interest
|
82
|
|
|
73
|
|
|
165
|
|
|
157
|
|
||||
Depreciation, depletion and amortization
|
124
|
|
|
97
|
|
|
250
|
|
|
210
|
|
||||
Exploration expense
|
1
|
|
|
1
|
|
|
4
|
|
|
2
|
|
||||
EBITDAX
|
199
|
|
|
233
|
|
|
364
|
|
|
525
|
|
||||
Mark-to-market on financial derivatives
(1)
|
(45
|
)
|
|
105
|
|
|
(115
|
)
|
|
63
|
|
||||
Cash settlements and cash premiums on financial derivatives
(2)
|
31
|
|
|
157
|
|
|
59
|
|
|
369
|
|
||||
Non-cash portion of compensation expense
(3)
|
6
|
|
|
3
|
|
|
2
|
|
|
7
|
|
||||
Transition, severance and other costs
(4)
|
—
|
|
|
2
|
|
|
—
|
|
|
10
|
|
||||
Gain on sale of assets
(5)
|
—
|
|
|
(82
|
)
|
|
—
|
|
|
(82
|
)
|
||||
(Gain) loss on extinguishment of debt
|
(13
|
)
|
|
(162
|
)
|
|
40
|
|
|
(358
|
)
|
||||
Impairment charges
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Adjusted EBITDAX
|
$
|
179
|
|
|
$
|
256
|
|
|
$
|
351
|
|
|
$
|
534
|
|
|
(1)
|
Represents the income statement impact of financial derivatives.
|
(2)
|
Represents actual cash settlements related to financial derivatives. No cash premiums were received or paid for the quarters or
six
months ended
June 30, 2017
and 2016.
|
(3)
|
For the six months ended
June 30, 2017
, the non-cash portion of compensation expense includes cash payments of approximately $4 million. For both the
quarter and six
months ended
June 30, 2016
, cash payments were approximately $3 million.
|
(4)
|
Reflects transition and severance costs related to workforce reductions.
|
(5)
|
Represents the gain on the sale of our Haynesville Shale assets sold in May 2016.
|
|
Capital
Expenditures
(1)
(in millions)
|
|
Average Drilling
Rigs
|
|||
Eagle Ford Shale
|
$
|
122
|
|
|
1.0
|
|
Wolfcamp Shale
|
113
|
|
|
2.0
|
|
|
Altamont
|
45
|
|
|
1.6
|
|
|
Total
|
$
|
280
|
|
|
4.6
|
|
|
|
Six months ended
June 30, |
||||||
|
2017
|
|
2016
|
||||
Cash Inflows
|
|
|
|
|
|
||
Operating activities
|
|
|
|
|
|
||
Net (loss) income
|
$
|
(50
|
)
|
|
$
|
156
|
|
Gain on sale of assets
|
—
|
|
|
(82
|
)
|
||
Loss (gain) on extinguishment of debt
|
40
|
|
|
(358
|
)
|
||
Other income adjustments
|
265
|
|
|
227
|
|
||
Changes in assets and liabilities
|
(74
|
)
|
|
463
|
|
||
Total cash flow from operations
|
$
|
181
|
|
|
$
|
406
|
|
|
|
|
|
||||
Investing activities
|
|
|
|
|
|
||
Proceeds from the sale of assets
|
—
|
|
|
390
|
|
||
Cash inflows from investing activities
|
$
|
—
|
|
|
$
|
390
|
|
|
|
|
|
|
|
||
Financing activities
|
|
|
|
|
|
||
Proceeds from issuance of long-term debt
|
1,385
|
|
|
575
|
|
||
Cash inflows from financing activities
|
$
|
1,385
|
|
|
$
|
575
|
|
|
|
|
|
||||
Total cash inflows
|
$
|
1,566
|
|
|
$
|
1,371
|
|
|
|
|
|
||||
Cash Outflows
|
|
|
|
|
|
||
Investing activities
|
|
|
|
|
|
||
Capital expenditures
|
$
|
266
|
|
|
$
|
258
|
|
|
|
|
|
|
|
||
Financing activities
|
|
|
|
|
|
||
Repayments and repurchases of long-term debt
|
$
|
1,253
|
|
|
$
|
1,097
|
|
Debt issue costs
|
20
|
|
|
1
|
|
||
Other
|
3
|
|
|
2
|
|
||
|
$
|
1,276
|
|
|
$
|
1,100
|
|
|
|
|
|
||||
Total cash outflows
|
$
|
1,542
|
|
|
$
|
1,358
|
|
|
|
|
|
||||
Net change in cash and cash equivalents
|
$
|
24
|
|
|
$
|
13
|
|
|
2017
|
|
2018- 2019
|
|
2020 - 2021
|
|
Thereafter
|
|
Total
|
||||||||||
|
|
|
|
|
(in millions)
|
|
|
|
|
||||||||||
Financing obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Principal
|
$
|
—
|
|
|
$
|
429
|
|
|
$
|
1,269
|
|
|
$
|
2,301
|
|
|
$
|
3,999
|
|
Interest
|
156
|
|
|
613
|
|
|
388
|
|
|
431
|
|
|
1,588
|
|
|||||
Operating leases
|
4
|
|
|
10
|
|
|
10
|
|
|
22
|
|
|
46
|
|
|||||
Other contractual commitments and purchase obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Volume and transportation commitments
|
33
|
|
|
126
|
|
|
109
|
|
|
47
|
|
|
315
|
|
|||||
Other obligations
|
16
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|||||
Total contractual obligations
|
$
|
209
|
|
|
$
|
1,218
|
|
|
$
|
1,776
|
|
|
$
|
2,801
|
|
|
$
|
6,004
|
|
•
|
Volume and Transportation Commitments.
Included in these amounts are commitments for demand charges for firm access to natural gas transportation, volume deficiency contracts and firm oil capacity contracts.
|
•
|
Other Obligations.
Included in these amounts are commitments for drilling, completion and seismic
|
|
|
|
Oil, Natural Gas and NGLs Derivatives
|
||||||||||||||||
|
|
|
10 Percent Increase
|
|
10 Percent Decrease
|
||||||||||||||
|
Fair Value
|
|
Fair Value
|
|
Change
|
|
Fair Value
|
|
Change
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Price impact
(1)
|
$
|
114
|
|
|
$
|
64
|
|
|
$
|
(50
|
)
|
|
$
|
155
|
|
|
$
|
41
|
|
|
|
|
Oil, Natural Gas and NGLs Derivatives
|
||||||||||||||||
|
|
|
1 Percent Increase
|
|
1 Percent Decrease
|
||||||||||||||
|
Fair Value
|
|
Fair Value
|
|
Change
|
|
Fair
Value
|
|
Change
|
||||||||||
|
(in millions)
|
||||||||||||||||||
Discount rate
(2)
|
$
|
114
|
|
|
$
|
113
|
|
|
$
|
(1
|
)
|
|
$
|
115
|
|
|
$
|
1
|
|
Credit rate
(3)
|
$
|
114
|
|
|
$
|
112
|
|
|
$
|
(2
|
)
|
|
$
|
114
|
|
|
$
|
—
|
|
|
(1)
|
Presents the hypothetical sensitivity of our commodity-based derivatives to changes in fair values arising from changes in oil, natural gas and NGLs prices.
|
(2)
|
Presents the hypothetical sensitivity of our commodity-based derivatives to changes in the discount rates we used to determine the fair value of our derivatives.
|
(3)
|
Presents the hypothetical sensitivity of our commodity-based derivatives to changes in credit risk of our counterparties.
|
•
|
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;
|
•
|
may have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
|
•
|
may apply standards of materiality in a way that is different from what may be viewed as material to certain investors; and
|
•
|
were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.
|
|
EP ENERGY CORPORATION
|
|
|
|
|
Date: August 3, 2017
|
/s/ Kyle A. McCuen
|
|
Kyle A. McCuen
|
|
Vice President, Interim Chief Financial Officer and Treasurer
|
|
(Principal Financial Officer)
|
|
|
|
|
Date: August 3, 2017
|
/s/ Francis C. Olmsted III
|
|
Francis C. Olmsted III
|
|
Vice President and Chief Accounting Officer
|
|
(Principal Accounting Officer)
|
Exhibit
Number
|
|
Description
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
*101.INS
|
|
XBRL Instance Document.
|
|
|
|
*101.SCH
|
|
XBRL Schema Document.
|
|
|
|
*101.CAL
|
|
XBRL Calculation Linkbase Document.
|
|
|
|
*101.DEF
|
|
XBRL Definition Linkbase Document.
|
|
|
|
*101.LAB
|
|
XBRL Labels Linkbase Document.
|
|
|
|
*101.PRE
|
|
XBRL Presentation Linkbase Document.
|
1 Year EP ENERGY CORP Chart |
1 Month EP ENERGY CORP Chart |
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