Supplemental Non-GAAP Financial Measures
EBITDAX and discretionary cash flow are presented herein, and reconciled to the generally accepted accounting principle (“GAAP”) measures of net income and net cash provided by operating activities because of their wide acceptance by the investment community as financial indicators of a company’s ability to internally fund exploration and development activities and to service or incur debt. EBITDAX and discretionary cash flow should not be considered as alternatives to net income or net cash provided by operating activities, as defined by GAAP.
Depletion, depreciation and amortization 103,534
Exploration and abandonments 24,516
Accretion of discount on asset retirement obligations 1,327
Gain on disposition of assets, net (46)
Commodity hedge related amortization (18,132)
Other noncash items 1,598
Less: Cash interest expense (27,993)
Current income taxes (3,796)
Discretionary cash flow 196,138
Less: Cash operating exploration expense (8,839)
Changes in operating assets and liabilities 35,166
Net cash provided by operating activities $ 222,465