Endeavour International Corp. (END, Financial) filed Quarterly Report for the period ended 2011-06-30.
Endeavour International Corp. has a market cap of $355.72 million; its shares were traded at around $10.28 with a P/E ratio of 10.3 and P/S ratio of 4.96.
For the second quarter of 2011, operating expenses increased to $6.4 million as compared to $3.5 million for the same period in 2010. For the six months ended June 30, 2011, operating expenses increased to $11.4 million as compared to $6.3 million for the same period in 2010. The increase in operating expense from 2010 to 2011 is primarily related to increased workover expense and increases in transportation expense and production taxes as a result of increased U.S. sales volumes. Operating costs per BOE increased from $8.13 per BOE for the second quarter of 2010 to $21.18 per BOE for the same period in 2011. Operating costs per BOE increased from $8.79 per BOE for the six months ended June 30, 2010, to $19.99 per BOE for the six months ended June 30, 2011. The significant increases in operating costs per BOE are due to the impact of both the increases in the dollar levels of operating expenses and the decreased volumes discussed above.
Depreciation, depletion and amortization (DD&A) expense decreased to $7.0 million from $7.9 million for the second quarter of 2011 and 2010, respectively, as a result of the decreased sales volumes discussed previously. DD&A also decreased to $13.3 million from $13.6 million for the six months ended June 30, 2011 and 2010, respectively, also as a result of the decreased sales volumes discussed previously.
For the second quarter of 2011, the prices used in the full cost ceiling test for our U.S. properties were $90.27 per barrel for oil and $4.24 per Mcf for gas. For the second quarter of 2011, the prices used in the full cost ceiling test for our U.K. properties were $95.90 per barrel for oil and $8.26 per Mcf for gas. We have not recorded any impairment during 2011. The risk that we will be required to record impairments of our oil and gas properties, through the application of the full cost ceiling test in subsequent periods, increases when oil and gas prices are low or volatile.
General and administrative (G&A) expenses increased slightly to $4.9 million during the second quarter of 2011 as compared to $4.2 million for the corresponding period in 2010. G&A expenses increased to $9.7 million during the six months ended June 30, 2011 as compared to $8.6 million for the corresponding period in 2010. These increases primarily resulted from higher compensation expense and other costs. Components of G&A expenses for these periods are as follows:
Interest expense increased by $2.2 million to $7.8 million for the second quarter of 2011 as compared to $5.6 million for the corresponding period in 2010. Interest expense increased by $9.1 million to $20.4 million for the six months ended June 30, 2011 as compared to $11.3 million for the corresponding period in 2010. These increases were primarily due to increased interest costs related to the Senior Term Loan, partially offset by the corresponding absence of interest in 2011 from our previously existing senior and junior debt which were repaid concurrently with the issuance of the Senior Term Loan. For the six months ended June 30, 2011 and 2010, we had non-cash interest expense, including amortization of loan costs and discount, of $12.5 million and $6.7 million, respectively.
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Endeavour International Corp. has a market cap of $355.72 million; its shares were traded at around $10.28 with a P/E ratio of 10.3 and P/S ratio of 4.96.
Highlight of Business Operations:
Adjusted EBITDA decreased to $11.7 million for the six months ended June 30, 2011 from $22.8 million for the same period in 2010, primarily due to decreased revenue related to the loss of production after the shut-in of our Goldeneye field and increased operating and other expenses. Adjusted EBITDA decreased to $7.6 million for the second quarter June 30, 2011 from $13.1 million for the same period in 2010 due to similar reasons as the six month decline. For definitions of Net Income (Loss) as Adjusted and Adjusted EBITDA, and a reconciliation of each to the nearest comparable GAAP measure, please see Reconciliation of Non-GAAP Measures.For the second quarter of 2011, operating expenses increased to $6.4 million as compared to $3.5 million for the same period in 2010. For the six months ended June 30, 2011, operating expenses increased to $11.4 million as compared to $6.3 million for the same period in 2010. The increase in operating expense from 2010 to 2011 is primarily related to increased workover expense and increases in transportation expense and production taxes as a result of increased U.S. sales volumes. Operating costs per BOE increased from $8.13 per BOE for the second quarter of 2010 to $21.18 per BOE for the same period in 2011. Operating costs per BOE increased from $8.79 per BOE for the six months ended June 30, 2010, to $19.99 per BOE for the six months ended June 30, 2011. The significant increases in operating costs per BOE are due to the impact of both the increases in the dollar levels of operating expenses and the decreased volumes discussed above.
Depreciation, depletion and amortization (DD&A) expense decreased to $7.0 million from $7.9 million for the second quarter of 2011 and 2010, respectively, as a result of the decreased sales volumes discussed previously. DD&A also decreased to $13.3 million from $13.6 million for the six months ended June 30, 2011 and 2010, respectively, also as a result of the decreased sales volumes discussed previously.
For the second quarter of 2011, the prices used in the full cost ceiling test for our U.S. properties were $90.27 per barrel for oil and $4.24 per Mcf for gas. For the second quarter of 2011, the prices used in the full cost ceiling test for our U.K. properties were $95.90 per barrel for oil and $8.26 per Mcf for gas. We have not recorded any impairment during 2011. The risk that we will be required to record impairments of our oil and gas properties, through the application of the full cost ceiling test in subsequent periods, increases when oil and gas prices are low or volatile.
General and administrative (G&A) expenses increased slightly to $4.9 million during the second quarter of 2011 as compared to $4.2 million for the corresponding period in 2010. G&A expenses increased to $9.7 million during the six months ended June 30, 2011 as compared to $8.6 million for the corresponding period in 2010. These increases primarily resulted from higher compensation expense and other costs. Components of G&A expenses for these periods are as follows:
Interest expense increased by $2.2 million to $7.8 million for the second quarter of 2011 as compared to $5.6 million for the corresponding period in 2010. Interest expense increased by $9.1 million to $20.4 million for the six months ended June 30, 2011 as compared to $11.3 million for the corresponding period in 2010. These increases were primarily due to increased interest costs related to the Senior Term Loan, partially offset by the corresponding absence of interest in 2011 from our previously existing senior and junior debt which were repaid concurrently with the issuance of the Senior Term Loan. For the six months ended June 30, 2011 and 2010, we had non-cash interest expense, including amortization of loan costs and discount, of $12.5 million and $6.7 million, respectively.
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