Arena Resources Announces 2003 Financial and Operating Results.Business Editors TULSA Tulsa (tŭl`sə), city (1990 pop. 367,302), seat of Tulsa co., NE Okla., on the Arkansas River east of its junction with the Cimarron; inc. 1898. , Okla.--(BUSINESS WIRE)--Feb. 5, 2004 Arena Resources Inc. (AMEX AMEX See: American Stock Exchange : ARD Ard (ärd), in the Bible. 1 Son of Benjamin. 2 Benjamite, perhaps the same as (1.) An alternate form is Addar. ) ("Arena") announced today financial results for the year ended Dec. 31, 2003. Arena had net income of $824,322 on oil and gas revenues of $3,665,477 for the year compared to net income of $402,694 on revenues of $1,657,037 for the year ended Dec. 31, 2002. Income attributable to common shares for the year was $0.12 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared to a loss of $395,324 or $(0.09) per diluted share, after preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends of $798,018, for the year ended Dec. 31, 2002. Cash provided by operating activities increased to $1,652,950 for the year ended Dec. 31, 2003 from $570,748 for the year ended Dec. 31, 2002. Proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. totaled approximately 9.5 million barrels of oil equivalents (BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip ), a 45 percent increase over the 6.5 million BOE for the previous year. Future net revenues, discounted 10 percent, based on $29.25 per barrel of oil and $3.43 per Mcf, were $91.9 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2003. This compares to $62.9 million, using average prices of $24.00 for oil and $3.43 per Mcf, for year-end 2002. The company is in the process of preparing its Form 10-KSB for timely filing. Arena Resources Inc. is an oil and gas exploration, development and production company with current operations in Oklahoma Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). , Texas, Kansas Kansas, state, United States Kansas (kăn`zəs), midwestern state occupying the center of the coterminous United States. It is bordered by Missouri (E), Oklahoma (S), Colorado (W), and Nebraska (N). and New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). . This release contains 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 the "safe-harbor" provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that involve a wide variety of risks and uncertainties, including, without limitations, statements with respect to the company's strategy and prospects. Readers and investors are cautioned that the company's actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the company's ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the company, and other factors that may be more fully described in additional documents set forth by the company.
SELECTED FINANCIAL INFORMATION
INCOME STATEMENT DATA
For the Years Ended
Dec. 31,
2003 2002
---- ----
Oil and Gas Revenues $3,665,477 $1,657,037
Costs and Operating Expenses
Oil and gas production costs 1,149,136 594,863
Oil and gas production taxes 269,563 117,164
Depreciation, depletion and amortization 338,157 127,847
General and administrative expense 557,576 248,018
Total Costs and Operating Expenses 2,314,432 1,087,892
Other Income (Expense)
Gain from change in fair value of put
options 47,699 36,665
Accretion expense (32,212) -
Interest expense (38,798) (15,923)
Net Other Expense (23,311) 20,742
Income Before Provision for Income Taxes and
Cumulative Effect of Change in Accounting
Principle 1,327,734 589,887
Provision for Deferred Income Taxes 491,599 187,193
Income Before Cumulative Effect of Change
in Accounting Principle 836,135 402,694
Cumulative Effect of Change in Accounting
Principle 11,813 -
Net Income 824,322 402,694
Preferred Stock Dividends - 798,018
Income (Loss) Attributable to Common Shares $ 824,322 $ (395,324)
Basic Income (Loss) Per Common Share $ 0.12 $ (0.09)
Diluted Income (Loss) Per Common Share $ 0.12 $ (0.09)
Basic Weighted-Average Common Shares
Outstanding 6,759,858 4,556,921
Diluted Weighted-Average Common Shares
Outstanding 7,234,499 4,556,921
OTHER FINANCIAL INFORMATION
Cash provided by operating activities $1,652,950 $ 570,748
Dec. 31, Dec. 31,
2003 2002
BALANCE SHEET DATA ---- ----
Total Assets $10,018,731 $6,050,493
Long-Term Debt $ 400,000 $ 400,000
Total Stockholders' Equity $ 8,088,899 $5,124,837
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