Belco Oil & Gas Corp. Announces Fourth Quarter and 1997 Results.NEW YORK--(BUSINESS WIRE)--Feb. 24, 1998--Belco Oil & Gas Corp. (NYSE NYSE See: New York Stock Exchange :BOG bog, very old lake without inlet or outlet that becomes acid and is gradually overgrown with a characteristic vegetation (see swamp). Peat moss, or sphagnum, grows around the edge of the open water of a bog (peat is obtained from old bogs) and out on the surface. ) announced today its financial results for the fourth quarter and calendar year 1997. Fourth quarter oil and gas revenues increased 51% to $41.4 million from $27.4 million for the comparable period in 1996. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income for the quarter increased 32% to $12.3 million or $0.39 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. common share (including commodity price risk management activities and excluding the previously announced non-cash full cost ceiling test provision principally related to the acquisition of Coda Energy, Inc.) compared to $9.6 million or $0.30 per diluted common share in the prior year. The Company generated $29.5 million in discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. or $0.93 per share in the fourth quarter of 1997 compared to $30.7 million or $1.02 per share in 1996. For the year ended December December: see month. 31, 1997, total revenues increased 9% to $126.8 million compared to $116.4 million for 1996. Net income for 1997 was $40.6 million or $1.29 per diluted common share, excluding the effects of the fourth quarter non-cash full cost ceiling test provision. For 1996, pro forma net income was $42.6 million or $1.42 per diluted common share excluding a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. non-cash deferred tax charge of $30.1 million recognized as a result of the combination consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. on March 29, 1996 in connection with the Company's Initial Public Offering. The decrease in net income, exclusive of the non-cash full cost ceiling test provision, is primarily due to additional operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , including a higher DD&A rate, offset in part by higher overall revenues. After giving effect to the previously announced $150 million non-cash full cost ceiling test provision ($97.5 million after tax), primarily related to the acquisition of Coda in November November: see month. , 1997 and the related SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 109 and purchase accounting compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds). , the Company incurred a net loss of $56.9 million, or $(1.80) per diluted common share. Discretionary cash flow for 1997 totaled $106.0 million or $3.36 per share compared to $108.7 million or $3.63 per share realized in 1996. Weighted average shares outstanding at year-end 1997 and 1996 were 31.6 million and 30.0 million, respectively. Oil production for 1997 increased by 63% over 1996 to 1,295,000 barrels, while gas production declined 3% to 49.7 BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter compared to 1996. Belco Enters 1998 "Balanced for Growth" with $170 Million Budget In addition to significantly lengthening lengthening (lengkˑ·the·ning), n the use of various massage or muscle energy techniques to relax and stretch muscle and connective tissue. Belco's reserve life and balancing the Company's natural gas/oil reserve mix, the acquisition of Coda positioned Belco as a company with four distinct core areas in the Rocky Mountain region The Rocky Mountain Region is a floristic region within the Holarctic Kingdom in western North America (Canada and the United States) delineated by Armen Takhtajan and Robert F. Thorne. , Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. , Mid-Continent region and the Austin Chalk Trend. Year-end estimated 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. of 604 BCFE BCFE Boundary Committee for England BCFE Ballyfermot College of Further Education (Dublin, Ireland) BCFE Board Certified Forensic Examiner Bcfe Billions of Cubic Feet Equivalent (Per Day; Gas Exploration) were divided approximately 22% Rocky Mountain region, 29% Permian Basin, 29% Mid-Continent region, 18% Austin Chalk Trend and 2% Other. The current 1998 capital expenditure budget is estimated to total approximately $170 million (including $10 million for acreage and seismic) which will be spent primarily on drilling and acquisitions in the Company's four core areas. Belco Oil & Gas Corp. is an independent energy company engaged in the exploration, development, acquisition and production of natural gas and oil. This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although BOG 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 in the forward looking statements herein include the timing and extent of changes in commodity prices for oil and gas, the need to develop and replace reserves, environmental risks, drilling 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, competition, government regulation and the ability of the Company to meet its stated business goals. -0-
BELCO OIL & GAS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31,
1997 1996 1997 1996
REVENUES:
Oil and gas sales 40,252 $ 35,780 $ 129,994 $ 119,710
Commodity Price Risk
Management Activities
Realized Settlements (5,164) (4,180) (13,060) (1,767)
Mark-to-Market(b)
(Non-Cash) 6,359 (4,200) 6,581 (4,200)
Interest and other 920 804 3,246 2,653
Total revenues 42,367 28,204 126,760 116,396
COSTS AND EXPENSES:
Oil and gas operating
expenses 6,102 2,021 12,758 7,847
Depreciation, depletion
and amortization 14,494 11,013 46,684 40,904
General and administrative 1,437 615 3,913 3,059
Interest expenses 1,668 0 1,668 0
Impairment of oil and gas
properties 150,000 0 150,000 0
Total costs and expenses 173,701 13,649 215,023 51,810
INCOME (LOSS) BEFORE
INCOME TAXES (131,334) 14,555 (88,263) 64,586
PROVISION BENEFIT FOR
INCOME TAXES (46,091) 5,261 (31,355) 46,404(a)
NET INCOME (LOSS) $ (85,243) $ 9,294 $ (56,908) $ 18,182(a)
PRO FORMA NET INCOME
Income (loss) before
income taxes $(131,334) $ 14,555 $ (88,263) $ 64,586
Pro forma provision
(benefit) for income
taxes (46,091) 4,939 (31,355) 21,950
Pro forma net
income (loss) $ (85,243) $ 9,616 $ (56,908) $ 42,636
PRO FORMA NET INCOME
(LOSS) PER COMMON SHARE $ (2.70) $ 0.30 $ (1.80) $ 1.42
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 31,582 31,500 31,582 29,986
(a) Includes a one-time non-cash deferred tax charge of $30.1
million recognized as a result of the Combination consummated on March
29, 1996 in connection with the Company's Initial Public Offering and
discussed in the Belco Oil & Gas Corp. Prospectus dated March 25,
1996. Historical net income per share, including the deferred tax
charge, was $0.61 for the year ended December 31, 1996. The pro forma
amounts present the Company as if a taxable corporation for all
periods and is based on the average number of shares outstanding
during the period assuming the Combination.
(b) Includes cash premiums received and non-cash accruals.
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The following table sets forth certain operations data of the
Company for the periods presented:
Three Months Ended Years Ended
December 31, December 31,
1997 1996 1997 1996
Oil and Gas Sales (1) $41,447 $27,400 $123,515 $113,743
Weighted Average Sales Prices
(Unhedged):
Oil (per Bbl) $18.48 $23.39 $19.28 $21.30
Gas (per Mcf) 2.32 2.39 2.11 2.00
Net Production Data:
Oil (MBbl) 578 219 1,295 794
Gas (MMcf) 12,737 12,037 49,710 51,289
Gas equivalent (Mmcfe) 16,210 13,351 57,479 56,053
Data per Mcfe:
Oil and gas sales revenues
(Unhedged) $2.48 $2.68 $2.26 $2.14
Commodity Price Risk Management
Activities -
Realized Settlements (0.32) (0.31) (0.23) 0.06
Mark-to-market 0.39 (0.31) 0.11 (0.17)
Oil and gas operating
expenses (0.38) (0.14) (0.22) (0.14)
General and administrative (0.09) (0.06) (0.07) (0.06)
Depreciation, depletion and
amortization (0.89) (0.82) (0.81) (0.73)
Pre-tax operating profit(2) $1.19 $1.04 $1.04 $1.10
Gross cash margin $1.69 $2.17 $1.74 $2.00
_____________________________
(1)Includes net results of commodity price risk management activities.
(2)Excludes interest income and interest expense.
CONTACT: Belco Oil & Gas Corp., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Dominick J. Golio, 212/508-9513 |
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