Belco Oil & Gas Corp. Reports First Quarter 1999 Results.NEW YORK--(BUSINESS WIRE)--April 29, 1999-- 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. ) today announced its results for the first quarter 1999. FIRST QUARTER First quarter 1999 average daily production increased from 163 to 165 million cubic feet equivalent (MMcfe MMcfe Millions of Cubic Feet Equivalent (Per Day; gas exploration) ) when compared to the fourth quarter of 1998. Prior year first quarter average daily production was 179 MMcfe. Oil and gas related revenues declined by 26% from $33.1 million to $24.5 million (including the effects of commodity price risk management activities) when compared to the first quarter of 1998. This decline is primarily related to lower realized oil and gas prices. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with current accounting rules, the revenue decline includes a non-cash $7.5 million reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. commodity price risk management gains reported in the fourth quarter of 1998 when oil and gas prices were at unusually low levels. Excluding the impact of this non-cash reversal, oil and gas related revenues would have declined by only 1% when compared to the prior year first quarter. First quarter 1999 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 was $15.9 million or $0.45 per basic common share after payment of preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) compared to $0.53 in the first quarter of 1998. Cash flow from operations includes pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income (loss) plus non-cash expense Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) items. Unhedged average oil prices realized declined by 21% to $11.37 per barrel barrel: see English units of measurement. during the quarter, compared to $14.44 per barrel realized in the prior year comparable period while average natural gas prices realized declined by 22% to $1.57 per Mcf compared to $2.01 per Mcf realized in the prior year first quarter. First quarter 1999 net loss per common share was $0.16 compared to $1.90 loss per share in the prior year comparable quarter which included non-cash impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. provisions for oil and gas properties and securities. Without the mark-to-market commodity price risk management reversal, first quarter 1999 net income per share would have been $0.00 or break-even. Basic common shares outstanding were 31.5 and 31.6 million shares for 1999 and 1998, respectively. Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. A. Belfer commented, "In light of extremely weak oil and gas prices during the first quarter, Belco elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. a significant portion of our budgeted first quarter capital expenditures. As commodity prices have improved in the second quarter, additional drilling projects have been initiated which should have a positive impact on future production levels. In particular, we are pleased with our ongoing success in developing the high impact gas-prone Brenham Dome dome, a roof circular or (rarely) elliptical in plan and usually hemispherical in form, placed over a circular, square, oblong, or polygonal space. Domes have been built with a wide variety of outlines and of various materials. area of the Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum Chalk horizontal play in Texas. We are also excited to have a 12.5% working interest in the Rock Island 4-H successful exploratory well recently announced by the operator, Union Pacific Resources Group, Inc. This deep horizontal well, located in Wyoming's Greater Green River Basin, flowed at over 12 million cubic feet of natural gas per day during production tests and is expected to be put on production in mid-May n. 1. the middle part of May. Noun 1. mid-May - the middle part of May period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" . An offset well is expected to be drilled in the third quarter of 1999 to help define the limits of this potentially large gas field." 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.
BELCO OIL & GAS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
1999 1998
---- ----
REVENUES:
Oil and gas sales $24,985 $34,833
Commodity Price Risk Management Activities
- cash settlements (a) 7,034 (3,098)
- non-cash mark-to-market (7,494) 1,331
Interest and other 200 285
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Total revenues 24,725 33,351
COSTS AND EXPENSES:
Oil and gas operating expenses 9,701 9,480
Depreciation, depletion and amortization 13,332 14,461
General and administrative 1,258 1,125
Interest expenses 5,375 4,120
Impairment of oil and gas properties -- 80,000
Impairment on Equity Securities -- 10,100
-------- -------
Total costs and expenses 29,666 119,286
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INCOME (LOSS) BEFORE INCOME TAXES (4,941) (85,935)
PROVISION BENEFIT FOR INCOME TAXES (1,729) (26,542)
------- ----------
NET INCOME (LOSS) $(3,212) $(59,393)
PREFERRED STOCK DIVIDENDS (1,753) (592)
--------- ----------
NET INCOME APPLICABLE TO COMMON STOCK $(4,965) $(59,985)
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NET INCOME (LOSS) PER SHARE OF COMMON STOCK,
Basic and fully diluted $(0.16) $(1.90)
======= =======
AVERAGE NUMBER OF COMMON SHARES USED IN
COMPUTATION, Basic and fully diluted 31,529 31,583
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(a) Includes cash premiums received.
The following table sets forth certain operations data of the
Company for the periods presented:
Three Months Ended
March 31,
March 31,
1999 1998
---- ----
Oil and Gas Sales (1) $24,525 $33,066
Weighted Average Sales Prices (Unhedged):
Oil (per Bbl) $11.37 $14.44
Gas (per Mcf) $1.57 $2.01
Net Production Data:
Oil (MBbl) 886 1,074
Gas (MMcf) 9,494 9,622
Gas equivalent (MMcfe) 14,813 16,068
Data per Mcfe:
Oil and gas sales revenues (Unhedged) $1.69 $2.17
Commodity Price Risk Management Activities (1) (0.03) (0.10)
Oil and gas operating expenses (0.65) (0.59)
General and administrative (0.08) (0.07)
Depreciation, depletion and amortization (0.90) (0.90)
------ ------
Pre-tax operating profit (2) $0.03 $0.51
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(1) Includes net results of commodity price risk management activities (cash and non-cash). (2) Excludes ceiling test and other impairment provisions, interest income and interest expense. |
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