The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Business Wire

Cobalt International Energy, Inc. Announces Third Quarter 2012 Results

Tuesday, October 30, 2012

Cobalt International Energy, Inc. Announces Third Quarter 2012 Results07:00 EDT Tuesday, October 30, 2012 HOUSTON (Business Wire) -- 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. Conference Call 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 A replay of the webcast will also be available for approximately 30 days following the call. About Cobalt 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. Forward-Looking Statements 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 EndedSeptember 30,   For Nine Months EndedSeptember 30,   2012       2011     2012       2011   ($ 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:   September 30,2012(Unaudited)   December 31,2011(Audited)($ in thousands) Cash and cash equivalents $ 126,770 $ 292,546 Short-term restricted funds 90,280 69,009 Short-term investments 885,394 858,293 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 Long-term investments 12,853 47,232 Total assets 2,689,209 2,527,944 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,   2012       2011   ($ in thousands)Net cash provided by (used in): Operating activities $ (134,647 ) $ (35,544 ) Investing activities (520,543 ) (552,740 ) Financing activities 489,414 478,204 Cobalt International Energy, Inc.Investor Relations:Richard A. Smith, +1 713-579-9141Vice President, Investor Relations and PlanningorMedia Relations:Lynne L. Hackedorn, +1 713-579-9115Vice President, Government and Public Affairs