3TEC Energy Corporation Reports First Quarter 2000 Financial and Operating Results.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--May 16, 2000 3TEC Energy Corporation ("3TEC") (Nasdaq:TTEN TTEN Thermoanaerobacter Tengcongensis ) announced today financial and operating results for the quarter ended March 31, 2000. 3TEC reported net income for the first quarter of 2000 of $2,856,000 ($.35 per fully-diluted share) compared to a net loss of $1,048,000 ($.37 per fully-diluted share) for the prior year period. For the quarter ended March 31, 2000, 3TEC reported cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses before changes in working capital of $8,688,000 ($.93 per fully-diluted share) compared to $60,000 ($.02 per fully-diluted share) in the same period of 1999. Total revenue increased 431% to $17,253,000 in the first quarter of 2000, compared to $3,249,000 in the first quarter of 1999. During the first quarter of 2000, 3TEC produced 3,578 MMCF MMCF Million Cubic Feet MMCF Multimedia Communications Forum MMCF Mint Mocha Chip Frappuccino MMCF Multi Media Communication Forum of gas and 308 thousand barrels of oil. These volumes represent an increase of 285% and 114%, respectively, over the comparable period. On a gas equivalent basis, 3TEC produced 5,426 MMCFE in the first quarter of 2000, an increase of 202% over the first quarter of 1999. The increases were primarily due to production from the Floyd Floyd is a variant spelling of the Welsh name Lloyd, which means grey, and may refer to: Places
The price received on gas sold in the first quarter of 2000 of $2.56 per MCF MCF malignant catarrhal fever. was 59% higher than the $1.61 per MCF received in the comparable period. Oil prices in 2000 of $24.94 per barrel barrel: see English units of measurement. were 153% higher than the $9.87 per barrel received in the first quarter of 1999. The primary reasons for the improved results were higher product prices, increased production volumes and lower per MCFE MCFE MATLAB Central File Exchange costs for lease operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. , general and administrative expense and depreciation, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and amortization. Comparison of First Quarter 2000 to Fourth Quarter 1999 3TEC's revenues increased $8,199,000 or 91%, cash flow from operations increased $5,652,000 or 186% and net income increased $3,278,000. Production of gas and oil increased 83% and 86%, respectively. Gas and oil prices increased 6% and 14%, respectively. The quarter ended March 31, 2000 is the first full quarter reflecting the ownership of the Floyd Oil Company properties, which were acquired November 23, 1999. Operational Update 3TEC participated in the drilling of fifteen wells in the first quarter. Fourteen have been completed as producers and one is currently waiting on pipeline hook-up hook-up Noun the linking of broadcasting equipment or stations to transmit a special programme . Four of the wells are in the Rosewood rosewood, popular name for the ornamental wood of several species of tropical trees, especially for the heartwood of certain leguminous trees of the genus Dalbergia of the family Leguminosae (pulse family). Brazilian rosewood, or jacaranda (D. field in East Texas. Currently, 3TEC is drilling two operated wells on the properties acquired in the Magellan A disk management utility for PCs from Lotus that had its heyday in the late 1980s. Believed by many to be one of the top 10 utility programs of all time, Magellan searched for file names and indexed the text content of the PC's hard drive at lightning speed. Exploration, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control transaction, which closed in February February: see month. 2000. At Breton Sound Breton Sound is a sound and a part of the coastline of the U.S. state of Louisiana; it is near Lake Pontchartrain. Two ships in the United States Navy have been named the USS Breton after this area. , drilling operations are at 12,166 feet on the State Lease 14217 No. 1 well. In the Garden City field, the Amy Aycock Aycock is a surname, and may refer to:
No. 1 is drilling at 12,206 feet. 3TEC has a 50% and 75% working interest in these two wells, respectively. Both wells are expected to reach total depth in the second quarter. 3TEC Energy Corporation is engaged in the acquisition, development, production and exploration of oil and natural gas, with properties geographically ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge concentrated in East Texas and the Gulf Coast region. 3TEC also owns significant properties in the Permian and San Juan basins The San Juan Basin is a drainage basin and geologic structural basin in the Four Corners region of the Southwestern United States; its main portion covers around 4,600 square miles, encompassing much of northwestern New Mexico, northeastern Arizona, and parts of Colorado and Utah. and in the Mid-Continent regions. The information contained in this press release may contain projections, estimates and other forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, environmental risks, drilling, producing and operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. , risks related to exploration and development, uncertainties about the estimates of reserves, government regulation, competition and the ability of the Company to meet its stated business goals.
3TEC Energy Corporation
Summary Consolidated Statements of Operations
(in thousands, except per share data)
For the Three Months
Ended March 31,
(unaudited)
2000 1999
------------------------
Revenues
Oil and gas sales
and plant income $16,915 $3,072
Gain on sale of
properties 9 74
Other 329 103
------------------------
Total Revenues 17,253 3,249
------------------------
Costs and Expenses
Lease operating, production
taxes and plant costs 4,581 1,559
Geological and geophysical 125 69
Dry hole 12 62
Depreciation, depletion
and amortization 3,921 1,350
Interest 2,085 512
General and administrative 1,697 1,022
Other 68 0
------------------------
Total Costs and Expenses 12,489 4,574
------------------------
Income (Loss) Before Income
Tax Expense (Benefit),
Minority Int., Pref. Div 4,764 (1,325)
Minority Interest 42 (10)
Income Tax Expense (Benefit) 1,606 (409)
------------------------
Net Income (Loss) 3,116 (906)
------------------------
Dividends to Preferred
Stockholders (260) (142)
------------------------
Net Income (Loss) Available
to Common Stockholders $2,856 ($1,048)
========================
Net Income (Loss)
Per Common Share:
Basic $0.48 ($0.37)
Diluted $0.35 ($0.37)
Weighted Average Common
Shares Outstanding:
Basic 6,013 2,844
Diluted 9,343 2,844
3TEC Energy Corporation
Summary Consolidated Balance Sheets
(dollars in thousands)
Mar. 31, Dec. 31,
2000 1999
(unaudited) (audited)
-------------------------
Assets
Current Assets $14,616 $15,771
Property, Plant and
Equipment, Net 151,510 131,775
Other Assets 1,734 1,698
-------------------------
Total Assets $167,860 $149,244
-------------------------
Liabilities and Stockholders'
Equity
Current Liabilities $8,749 $8,770
Long Term Debt 83,500 87,500
Subordinated Convertible
Notes 13,224 13,224
Deferred Income Taxes 1,896 291
Other Liabilities 210 257
Minority Interest 1,164 1,089
Stockholders' Equity 59,117 38,113
-------------------------
Total Liabilities and
Stockholders' Equity $167,860 $149,244
-------------------------
Selected Operating Data For the Three Months
Ended March 31,
(unaudited)
2000 1999
-----------------------
Oil Production (Mbbls) 308 144
Gas Production (Mmcf) 3,578 930
Gas Equivalents (Mmcfe) 5,426 1,794
Average Oil Price
Per Barrel $24.94 $9.87
Average Gas Price
Per Mcf $2.56 $1.61
Cash Flow From Operations
Before Working Capital
Changes -- M$ $8,688 $60
Cash Flow From Operations
Before Working Capital
Changes -- Per Share
(Diluted) $0.93 $0.02
EBITDAX -- M$ $10,750 $654
EBITDAX -- Per Share (Diluted) $1.15 $0.23
Margin Analysis ($ Mcfe):
Average Equivalent Sales
Price $3.11 $1.63
Lease Operating Expenses
and Production Taxes $0.84 $0.87
General and Administrative
Expense $0.31 $0.57
Operating Margin $1.96 $0.19
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