
• 
The average Company natural gas price differential including the impact of basis hedges for the fourth quarter was ($0.37) per mcf, which is unchanged from the prior year. The fourth quarter average natural gas price, before all hedging settlements, increased to $2.62 per mcf as compared to $1.90 per mcf in the prior year. NYMEX natural gas financial hedges increased realizations $0.31 per mcf in the fourth quarter of 2016. 

• 
Prehedge NGL realizations improved to 29% of West Texas Intermediate (“WTI”) in fourth quarter 2016, compared to 22% of WTI in the previous year. Total NGL pricing per barrel including ethane and processing expenses after realized cashsettled hedging improved to $17.20 for the fourth quarter compared to $11.23 per barrel in the prior year. Hedging increased NGL prices by $2.70 per barrel in the fourth quarter compared to $2.12 per barrel in the prior year. 

• 
Crude oil and condensate price realizations, before realized hedges, for the fourth quarter averaged $44.61 per barrel, or $4.66 below WTI, compared to $13.52 below WTI in the prior year. Hedging added $16.69 per barrel compared to hedge gains of $50.92 in the prior year. 
Full Year 2016
GAAP revenues for 2016 totaled $1.1 billion (31% decrease compared to 2015), GAAP net cash provided from operating activities including changes in working capital was $387 million, compared to $691 million in 2015, and GAAP earnings were a loss of $521 million ($2.75 per diluted share) versus a loss of $714 million ($4.29 per diluted share) in 2015. Full year 2016 results included a loss of $7 million from asset sales compared to a loss of $407 million in 2015, $261 million in derivative losses due to increases in future commodity prices compared to a $416 million gain in the prior year and a $43 million impairment of proved property compared to a $590 million impairment of a nonMarcellus property in the prior year.
NonGAAP revenues for 2016 totaled $1.7 billion, unchanged from 2015 and cash flow from operations before changes in working capital, a nonGAAP measure, was $569 million, compared to $740 million in 2015. Adjusted net income comparable to analysts’ estimates, a nonGAAP measure, was $4.9 million ($0.03 per diluted share), compared to $80 million ($0.48 per diluted share) in 2015. The Company’s cost structure continued to improve as total unit costs decreased by $0.17 per mcfe, or 6%, compared to the prior year, as shown below.








Expenses 

Full Year 2016
(per mcfe) 

Full Year 2015
(per mcfe) 


Increase (Decrease) 








Direct operating 

$ 0.17 

$ 0.26 


(35%) 
Transportation, gathering,
processing and compression 

1.00 

0.78 


28% 
Production and ad valorem taxes 

0.05 

0.07 


(29%) 
General and administrative 

0.23 

0.27 


(15%) 
Interest expense 

0.30 

0.33 


(9%) 
Total cash unit costs 

1.75 

1.71 


2% 
Depletion, depreciation and
amortization 

0.93 

1.14 


(18%) 
Total unit costs 

$ 2.68 

$ 2.85 


(6%) 
The Company announced its full year 2016 natural gas, NGLs and oil price realizations (including the impact of cashsettled hedges and derivative settlements which correspond to analysts’ estimates), which averaged $2.74 per
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