Bellwether Exploration Company Reports 1998 Fourth Quarter and Annual Results.HOUSTON--(BUSINESS WIRE)--March 2, 1999--Bellwether Exploration Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BELW) today announced the following financial and operating results for the fourth quarter and year-ended December December: see month. 31, 1998: -- Revenues for the fourth quarter of 1998 were $15.9 million compared to revenues of $24.4 million for the fourth quarter of 1997. For the full year 1998, revenues totaled $75.8 million compared to revenues of $76.4 million for 1997. -- Earnings before interest, taxes and depreciation EBITD is an initialism or acronym for Earnings Before Interest, Taxes and Depreciation. See EBITDA. Some people find it useful to know this value for a business. ("EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ") for the fourth quarter of 1998 were $7.9 million or $0.57 per share. EBITDA for the same period in 1997 was $15.3 million, or $1.05 per share. EBITDA for the full year totaled $41.9 million, or $2.95 per share compared to EBITDA of $47.9 million, or $3.65 per share for 1997. -- 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, for the fourth quarter was $5.2 million, or $0.38 per share, compared to $12.0 million, or $0.83 per share for the same period in 1997. For 1998, cash flow from operations was $30.4 million, or $2.13 per share, compared to $38.1 million, or $2.91 per share in 1997. -- The Company incurred a net loss of $76.9 million, or $5.55 per share, for the fourth quarter of 1998 compared to net income of $2.7 million, or $0.19 per share for the same period last year. The net loss for the current year was $77.3 million, or $5.50 per share versus earnings of $6.5 million, or $0.49 per share in 1997. The loss for the quarter and annual period included a $73.9 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge ($71.6 after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) to impair im·pair tr.v. im·paired, im·pair·ing, im·pairs To cause to diminish, as in strength, value, or quality: an injury that impaired my hearing; a severe storm impairing communications. the carrying value of oil and gas properties. The 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. was caused primarily by lower oil and gas prices and reflects the continued decline in gas prices subsequent to year end. The Company's financial performance has been adversely impacted by a significant decline in oil and natural gas prices in 1998 as compared to 1997. The average realized oil price for the fourth quarter of 1998 was $9.83 per barrel barrel: see English units of measurement. ("Bbl"), compared to $17.58 per Bbl for the same period last year. For the year, the average realized oil price was $11.34 per Bbl in 1998, compared to $16.41 per Bbl for 1997. Natural gas prices averaged $2.07 per thousand cubic feet ("Mcf") for the fourth quarter of 1998 compared to $2.93 per Mcf in 1997. For the year, natural gas prices averaged $2.05 per Mcf in 1998, compared to $2.43 for 1997. -- Production for the fourth quarter of 1998 averaged 5,849 barrels of oil per day ("Bopd") and 48.2 million cubic feet of gas per day ("MMcfgpd"), or 83.3 million cubic feet of gas equivalent per day ("MMcfepd"). For the same period in 1997, the Company's production averaged 4,785 Bopd and 62.3 MMcfgpd, or 91.0 MMcfepd. Production for all of 1998 averaged 6,295 Bopd and 58.4 MMcfgpd or 96.1 MMcfepd compared to 1997 production of 4,836 Bopd and 51.9 MMcfgpd or 80.9 MMcfepd. -- The Company estimates its 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. 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. to be 171,954 MMcfe MMcfe Millions of Cubic Feet Equivalent (Per Day; gas exploration) at December 31, 1998 compared to 214,814 MMcfe at December 31, 1997. Year-end reserve quantities were adversely impacted by downward revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 26,970 MMcfe resulting largely from declines in oil and gas prices. Prior to such revisions, the Company replaced 55% of its production during the year. -- Capital expenditures for the fourth quarter of 1998 totaled $8.1 million, compared to $11.7 million for the same period in 1997. For 1998 capital expenditures, which totaled $40.9 million, included spending of $16.1 million for exploration, $14.1 million for development and $10.7 million for the acquisition of undeveloped leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. , seismic data and producing properties. In comparison, 1997 capital expenditures totaled $170.0 million and included spending of $4.0 million for exploration, $19.7 million for development and $146.3 million for the acquisition of undeveloped leasehold, seismic data and producing properties. Capital expenditures for 1998 financed the drilling of 22 exploratory wells, 16 of which were successful. In addition, the Company participated in 72 development wells, of which 68 were successful. J. Darby Darby, borough (1990 pop. 11,140), Delaware co., SE Pa., a suburb adjacent to Philadelphia; settled by Quakers 1682, inc. 1853. Although residential, it has some manufactures. One of the oldest settlements in the state, it retains many colonial landmarks. Sere, the Company's Chief Executive Officer, stated, "While 1998 was a difficult year with disappointing results, Bellwether Bellwether A leading indicator of trends. Notes: A bellwether stock is a stock that is used to gauge the performance of the market in general. General Motors was an example of a bellwether stock, hence the saying "What's good for GM is good for America. is well positioned for growth in 1999. The Company has an inventory of high quality exploration projects, financial capacity in a developing favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. property acquisition market and the talent and resources to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. current industry weakness. Although our exploration and development budget has been reduced below 1998 levels, this decrease should be offset by lower drilling and oilfield services expenses." The Company will hold a teleconference call Tuesday Tuesday: see week. , March 2, 1999 at 11:00 a.m. Eastern Standard Time to review the 1998 fourth quarter and annual financial and operating results. If you would like to participate, please call 212/896-6086. Bellwether Exploration Company is an independent oil and gas exploration and production company headquartered in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the . Bellwether employs a balanced program of strategic acquisitions and technology-driven exploration and exploitation Exploitation See also Opportunism. Barnum, P. T. (1810–1891) circus impressario famous for his saying, “Never give a sucker an even break.” [Am. Hist. to increase its reserves, cash flow and net asset value. The Company's principal area of activity is the Texas/Louisiana Gulf Coast, both onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. and offshore. To review Bellwether's financial statements and financial/operating statistics, please visit the Company's web site at www.bellwetherexp.com. This news release includes 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 assurances that forecasted results will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein are referenced in the Company's annual report, 1997 transition period 10K and current reports and registration statements filed with the Securities and Exchange Commission.
BELLWETHER EXPLORATION COMPANY
STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
1998 1997 1998 1997
---- ---- ---- -----
REVENUES:
Oil revenues $5,379 $7,900 $26,756 $29,186
Gas revenues 9,809 15,737 46,461 44,198
Gas plant revenues,
net 285 410 1,203 2,082
Interest and other
income 470 352 1,347 919
-------- -------- -------- --------
15,943 24,399 75,767 76,385
-------- -------- -------- --------
COSTS AND EXPENSES:
Production expenses 6,211 7,209 25,381 22,212
Depreciation, depletion
and amortization 14,072 7,995 39,688 27,759
Impairment expense 73,899 - 73,899 -
General and administrative
expenses 1,819 1,936 8,459 6,338
Interest expense 2,754 2,972 11,660 9,935
-------- -------- -------- --------
98,755 20,112 159,087 66,244
-------- -------- -------- --------
INCOME (LOSS) BEFORE
TAXES (82,812) 4,287 (83,320) 10,141
Income taxes
Current 139 497 750 483
Deferred (6,032) 1,099 (6,819) 3,198
-------- -------- -------- --------
NET INCOME (LOSS) $(76,919) $2,691 $(77,251) $6,460
======== ======== ======== ========
Earnings (Loss) Per
Share ($5.55) $0.19 ($5.50) $0.51
Earnings (Loss) Per
Share - Diluted(a) ($5.55) $0.19 ($5.50) $0.49
Cash Flow Per Share $0.38 $0.86 $2.16 $3.02
Cash Flow Per Share -
Diluted $0.38 $0.83 $2.13 $2.91
EBITDA Per Share $0.57 $1.10 $2.99 $3.80
EBITDA Per Share -
Diluted $0.57 $1.05 $2.95 $3.65
Common Shares
Outstanding 13,851 13,888 14,039 12,600
Common Shares
Outstanding - Diluted 13,874 14,474 14,242 13,112
Cash Flow from
Operations $5,235 $11,968 $30,372 $38,100
EBITDA $7,921 $15,255 $41,948 $47,857
(a) Due to a potential antidilutive effect in Loss periods, Common
Shares Outstanding were used for such periods.
BELLWETHER EXPLORATION COMPANY
CONDENSED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
December 31, December 31,
1998 1997
------------ ------------
ASSETS:
Current assets $18,184 $28,877
Property, plant and equipment, net 108,216 180,133
Other assets 4,796 5,747
-------- --------
$131,196 $214,757
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $12,107 $14,913
Long-term debt 104,400 100,000
Other long-term liabilities 200 1,069
Deferred taxes - 7,106
Stockholders' equity 14,489 91,669
-------- --------
$131,196 $214,757
======== ========
BELLWETHER EXPLORATION COMPANY
SUMMARY OPERATING INFORMATION
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
1998 1997 1998 1997
---- ---- ---- ----
AVERAGE REALIZED SALES PRICE:
Oil and condensate ($/Bbl)(a) $9.83 $17.58 $11.34 $16.41
Gas ($/Mcf)(a) $2.07 $2.93 $2.05 $2.43
Equivalent ($/Mcfe) $1.89 $2.93 $1.98 $2.54
AVERAGE DAILY PRODUCTION:
Oil and condensate (Bbls) 5,849 4,785 6,295 4,836
Gas (Mcf) 48,226 62,333 58,362 51,866
Equivalent (Mcfe) 83,320 91,043 96,132 80,882
TOTAL PRODUCTION:
Oil and condensate (MBbls) 538 440 2,298 1,765
Gas (Mmcf) 4,437 5,735 21,302 18,931
Equivalent (Mcfe) 7,665 8,375 35,090 29,521
OPERATING COSTS PER Mcfe:
Production expenses $0.81 $0.86 $0.72 $0.75
General and administrative
expenses $0.24 $0.23 $0.24 $0.21
Depreciation, depletion,
and amortization(b) $1.80 $0.92 $1.10 $0.91
(a) Average sales prices exclude the effect of hedges, which
increased revenues by $732,000 and $3,571,000 in the three and
twelve month periods in 1998, respectively, and decreased
revenues by $900,000 and $1,551,000 in the three and twelve month
periods in 1997, respectively.
(b) Gas plant depreciation and oil and gas property impairments are
excluded from this calculation.
BELLWETHER EXPLORATION COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Twelve Months Ended December 31,
--------------------------------
1998 1997
---- ----
OPERATING ACTIVITIES:
Net income (loss) $(77,251) $6,460
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation, depletion and
amortization 40,543 28,444
Impairment expense 73,899 -
Other (6,819) 3,196
--------- --------
Cash flow from operations before
changes in operating assets and
liabilities 30,372 38,100
Net changes in operating assets and
liabilities 3,329 2,039
--------- --------
Net cash provided by operating
activities 33,701 40,139
INVESTING ACTIVITIES:
Capital expenditures (excluding
impairment) (40,956) (184,284)
Proceeds from sales of properties 421 22,472
--------- --------
Net cash used in investing activities (40,535) (161,812)
FINANCING ACTIVITIES:
Net proceeds from equity activities 1,649 34,922
Proceeds from bank borrowings 4,900 145,800
Repayment of bank borrowings (500) (56,800)
Purchase of treasury shares (1,904) -
--------- --------
Net cash provided by financing
activities 4,145 123,922
--------- --------
Net increase in cash and cash
equivalents (2,689) 2,249
Cash and cash equivalents at beginning
of period 2,699 450
--------- --------
Cash and cash equivalents at end of
period $10 $ 2,699
========= ========
BELLWETHER EXPLORATION COMPANY
STATISTICS
(Amounts in thousands, except per share amounts)
(Unaudited)
Twelve
Months Ended Three Months Ended
------------- --------------------------------------
Dec. 31, Dec. 31, Sept. 30, June 30, March 31,
1998 1998 1998 1998 1998
------------- -------- --------- -------- --------
Total revenues 75,767 15,943 19,034 20,953 19,837
Production expenses
(LOE) 25,381 6,211 6,277 6,760 6,133
Depreciation, depletion
and amortization
(DD&A) 39,688 14,072 8,057 8,821 8,738
Impairment expense 73,899 73,899 - - -
General and administrative
expenses (G&A) 8,459 1,819 2,032 1,997 2,611
Interest expense 10,825 2,546 2,745 2,768 2,766
Net income (loss) (77,251) (76,919) (187) 247 (392)
Cash flow from operations
(CFFO) 30,372 5,235 8,067 9,067 8,003
EBITDA 41,948 7,921 10,729 12,198 11,100
Net income (loss) per
share - diluted ($5.50) ($5.55) ($0.01) $0.02 ($0.03)
Cash flow per share -
diluted $2.13 $0.38 $0.57 $0.63 $0.56
EBITDA per share -
diluted $2.95 $0.57 $0.75 $0.85 $0.77
Working capital 6,077 6,077 5,402 9,173 13,740
Property, plant and
equipment, net
(PP&E) 108,216 108,216 187,299 185,618 180,972
Long term debt (LTD) 104,400 104,400 100,000 100,000 100,000
Stockholders' equity 14,489 14,489 91,796 93,341 92,769
Total assets 131,196 131,196 214,924 219,847 220,617
LTD/ EBITDA (LTM) 2.49 2.49 2.03 1.95 1.86
EBITDA/ Interest 3.88 3.11 3.91 4.41 4.01
LTD/ Total
capitalization 0.88 0.88 0.52 0.52 0.52
Total production
Oil and condensate
(MBbls) 2,298 538 583 605 572
Gas (Mmcf) 21,302 4,437 5,109 6,025 5,731
Equivalent (Mcfe) 35,090 7,665 8,607 9,655 9,163
Daily production
Oil and condensate
(Bbls) 6,295 5,849 6,334 6,643 6,359
Gas (Mcf) 58,362 48,226 55,535 66,207 63,680
Equivalent (Mcfe) 96,132 83,320 93,539 106,065 101,834
LOE per Mcfe $0.72 $0.81 $0.73 $0.70 $0.67
G&A per Mcfe $0.24 $0.24 $0.24 $0.21 $0.28
Operating cash flow per
Mcfe $1.12 $0.93 $1.16 $1.20 $1.17
Interest expense per
Mcfe $0.31 $0.33 $0.32 $0.29 $0.30
DD&A per Mcfe $1.13 $1.84 $0.94 $0.91 $0.95
Capital expenditures 40,868 8,067 9,093 13,840 9,868
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