Bellwether Exploration Company Reports 2000 Second Quarter and Six Months Results.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Aug. 11, 2000 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. Exploration Company (Nasdaq:BELW) today announced the following financial and operating results for the second quarter and six months of 2000: -- Revenues for the second quarter were $25.9 million compared to revenues of $15.3 million for the second quarter of 1999. Revenues for the first six months of 2000 were $50.5 million compared to revenues of $28.5 million for the first six months of 1999. -- 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 second quarter of 2000 was $16.2 million or $1.12 per share. EBITDA for the same period of 1999 was $8.8 million or $0.63 per share. EBITDA for the first six months of 2000 was $32.6 million or $2.29 per share compared to an EBITDA of $15.0 million or $1.08 per share for the first six months of 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 for the second quarter, before changes in working capital, was $12.7 million, or $.88 per share, compared to $6.1 million, or $.44 per share for the same period in 1999. For the first six months of 2000, cash flow from operations was $25.8 million or $1.82 per share, compared to $9.7 million or $.70 per share for the same period in 1999. -- Net income was $3.0 million, or $0.21 per share, for the second quarter of 2000 compared to net income of $123,000 or $0.01 per share for the second quarter 1999. Net income for the first six months of 2000 was $26.4 million, or $1.86 per share, compared to a net loss of $1.2 million, or $0.08 per share for the same period in 1999. In the second quarter of 2000, the Company reflected a one time general and administration charge of $800,000 in reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. costs. Almost three quarters of such amount, or $580,000, was non-cash and was associated with the pricing of options. In the first quarter of 2000, as a result of anticipated increased future earnings, the Company was able to recognize the balance of a $17.8 million net tax asset which had previously been impaired See assistive technology. . The Company's production for the second quarter of 2000 averaged 6,297 barrels of oil per day ("Bopd") and 51.5 million cubic feet of gas per day ("MMcfgpd"), or 89.3 million cubic feet of gas equivalent per day ("MMcfed"). For the same period in 1999, the Company's production averaged 5,505 Bopd and 46.1 MMcfgpd, or 79.1 MMcfed. Production for the first six months of 2000 averaged 6,236 Bopd and 53.3 MMcfgpd or 90.7 MMcfed compared to 5,641 Bopd and 49.6 MMcfgpd or 83.5 MMcfed for the same period in 1999. The average realized oil price for the second quarter was $20.37 per barrel barrel: see English units of measurement. ("Bbl"), compared to $11.61 per Bbl for the same period last year. For the first six months of 2000, the average realized oil price was $19.85 per Bbl, compared to $10.46 for the same period in 1999. Natural gas prices averaged $2.81 per thousand cubic feet ("Mcf") for the second quarter compared to $1.96 per Mcf for the same period of 1999. For the first six months of 2000, natural gas prices averaged $2.68 per Mcf, compared to $1.79 for the corresponding period in 1999. Capital expenditures, for the second quarter were $28.8 million compared to $17.0 million, for the same period last year. Capital expenditures for the first six months of 2000 were $50.3 million compared to $24.8 million for the same period in 1999. Total spending for the six month period was comprised of $8.0 million for exploration, $30.2 million for United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. development, $1.8 million for Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. development, and $10.3 million for land, seismic or acquisitions. The Company plans to spend approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $75 million in 2000, of which $23 million will be provided by the previously announced divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of two non-core property packages that should close within the next 60 days. During the second quarter Bellwether participated in 31 total wells, 11 of which were completed at the end of the quarter and 20 were in progress (18 in the U.S. and 2 in Ecuador Ecuador (ĕk`wədôr) [Span., = equator], officially Republic of Ecuador, republic (2005 est. pop. 13,364,000), 109,483 sq mi (283,561 sq km), W South America. ). Of the eleven completed wells, ten (91%) were successful and one was unsuccessful. Of the ten successful wells, four are located in Southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: The Company will hold a teleconference call Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , August 11, 2000 at 10:00 a.m. Central Standard Time to review the 2000 second quarter results. If you would like to participate, please call 212/346-6380. Bellwether Exploration Company is an independent oil and gas exploration and production Company headquartered in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; . Bellwether employs a program of producing property acquisitions and technology-driven development and exploration to increase its reserves, cash flow and net asset value. The Company's principal areas of activity are Southeastern south·east n. 1. Abbr. SE The direction or point on the mariner's compass halfway between due south and due east, or 135° east of due north. 2. An area or region lying in the southeast. 3. New Mexico, 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 Texas/Louisiana Gulf Coast and Ecuador. 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 and 10-K for 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. 1999 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 Six Months Ended
June 30, June 30,
----------------- -----------------
2000 1999 2000 1999
------- ------- ------- -------
REVENUES:
Oil revenues $11,670 $5,818 $22,527 $10,681
Gas revenues 13,156 8,206 25,966 16,070
Gas plant revenues, net 737 254 1,391 475
Interest and other income 342 986 566 1,269
------- ------- ------- -------
25,905 15,264 50,450 28,495
------- ------- ------- -------
COSTS AND EXPENSES:
Production expenses 7,021 5,013 13,335 10,625
Depreciation, depletion and
amortization 6,886 5,764 14,176 10,444
General and administrative
expenses 3,239 1,474 5,115 2,868
Interest expense 3,748 2,890 7,157 5,719
------- ------- ------- -------
20,894 15,141 39,783 29,656
------- ------- ------- -------
NET INCOME (LOSS) BEFORE TAXES 5,011 123 10,667 (1,161)
Income taxes (benefit)
Current (33) -- 39 --
Deferred 2,015 -- (15,791) --
------- ------- ------- -------
1,982 -- (15,752) --
------- ------- ------- -------
NET INCOME (LOSS) $3,029 $123 $26,419 $(1,161)
======= ======= ======= =======
Earnings (Loss) Per Share $0.22 $0.01 $1.90 ($0.08)
Earnings (Loss) Per Share
- Diluted (a) $0.21 $0.01 $1.86 ($0.08)
Cash Flow Per Share $0.92 $0.44 $1.86 $0.70
Cash Flow Per Share
- Diluted (a) $0.88 $0.44 $1.82 $0.70
EBITDA Per Share $1.17 $0.63 $2.35 $1.08
EBITDA Per Share
- Diluted (a) $1.12 $0.63 $2.29 $1.08
Common Shares Outstanding 13,883 13,854 13,871 13,854
Common Shares Outstanding
- Diluted 14,429 13,894 14,214 13,870
Cash Flow from Operations $12,740 $6,091 $25,841 $9,693
EBITDA $16,226 $8,777 $32,581 $15,002
(a) Due to a potential antidilutive effect in loss periods, Common
Shares Outstanding were used for periods with a loss.
BELLWETHER EXPLORATION COMPANY
CONDENSED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
June 30, December 31,
2000 1999
-------- --------
ASSETS:
Current assets $25,462 $22,017
Property, plant and equipment, net 171,185 136,573
Leasehold, furniture and equipment, net 2,007 364
Investment in outside companies 4,554 4,554
Notes receivable 281 --
Deferred tax asset 18,596 2,739
Other assets 5,397 5,514
-------- --------
$227,482 $171,761
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $35,660 $18,247
Long-term debt 140,900 130,000
Other long-term liabilities 200 200
Stockholders' equity 50,722 23,314
-------- --------
$227,482 $171,761
======== ========
BELLWETHER EXPLORATION COMPANY
SUMMARY OPERATING INFORMATION
Three Months Six Months
Ended June 30, Ended June 30,
-------------- --------------
2000 1999 2000 1999
------ ------ ------ ------
AVERAGE REALIZED SALES PRICE:
Oil and condensate ($/Bbl) (b) $20.37 $11.61 $19.85 $10.46
Gas ($/Mcf) (b) $2.81 $1.96 $2.68 $1.79
Equivalent ($/Boe) $18.34 $11.68 $17.63 $10.62
Equivalent ($/Mcfe) $3.06 $1.95 $2.94 $1.77
AVERAGE DAILY PRODUCTION:
Oil and condensate (Bbls) 6,297 5,505 6,236 5,641
Gas (Mcf) 51,484 46,110 53,258 49,619
Equivalent (Boe) 14,878 13,190 15,112 13,911
Equivalent (Mcfe) 89,266 79,140 90,674 83,465
TOTAL PRODUCTION:
Oil and condensate (MBbls) 573 501 1,135 1,021
Gas (Mmcf) 4,685 4,196 9,693 8,981
Equivalent (MBoe) 1,354 1,200 2,751 2,518
Equivalent (Mmcfe) 8,123 7,202 16,503 15,107
OPERATING COSTS PER BOE:
Production expenses $5.19 $4.18 $4.85 $4.22
General and administrative
expenses $2.39 $1.23 $1.86 $1.14
Depreciation, depletion, and
amortization (c) $4.82 $4.54 $4.88 $3.90
OPERATING COSTS PER Mcfe:
Production expenses $0.86 $0.70 $0.81 $0.70
General and administrative
expenses $0.40 $0.20 $0.31 $0.19
Depreciation, depletion, and
amortization (c) $0.80 $0.76 $0.81 $0.65
(b) Average sales prices include the effect of hedges, which decreased
revenues by $4,269,000 and $5,422,000 in the three and six month
periods in 2000, respectively, and decreased revenues by
$1,643,000 and $1,631,000 in the three and six month periods in
1999.
(c) Depreciation of gas plants and other assets is excluded.
BELLWETHER EXPLORATION COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Six Months Ended June 30,
------------------------
2000 1999
------------------------
OPERATING ACTIVITIES:
Net income (loss) $26,419 $(1,161)
Adjustments to reconcile
net loss to net cash provided
by operating activities:
Depreciation, depletion
and amortization 14,632 10,854
Stock option expense
amortization 581 --
Deferred taxes (15,791) --
-------- --------
Cash flow from operations
before changes in operating
assets and liabilities 25,841 9,693
Net changes in operating
assets and liabilities 11,244 4,189
-------- --------
Net cash provided by
operating activities 37,085 13,882
INVESTING ACTIVITIES:
Acquisition of oil
and gas properties (6,413) (14,269)
Capital expenditures (44,070) (10,573)
Leasehold, furniture
and equipment (1,856) (43)
Notes receivable (281) --
Proceeds from sales
of properties 2,547 256
-------- --------
Net cash used in
investing activities (50,073) (24,629)
FINANCING ACTIVITIES:
Net proceeds from
equity activities 343 --
Proceeds from bank
borrowings 28,900 23,500
Payments of long-term debt (18,000) (11,500)
Purchase of treasury shares -- (1)
-------- --------
Net cash provided by
financing activities 11,243 11,999
-------- --------
Net (decrease) increase
in cash and cash equivalents (1,745) 1,252
Cash and cash equivalents
at beginning of period 6,101 10
-------- --------
Cash and cash equivalents
at end of period $4,356 $1,262
======== ========
BELLWETHER EXPLORATION COMPANY
STATISTICS
(Amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended
----------------------
June 30, March 31,
2000 2000
------- --------
Total revenues 25,905 24,545
Production expenses (LOE) 7,021 6,314
Depreciation, depletion and
amortization (DD&A) 6,886 7,290
General and administrative
expenses (G&A) 3,239 1,876
Cash interest expense 3,520 3,181
Net income 3,029 23,390
Cash flow from
operations (CFFO) 12,740 13,101
EBITDA 16,226 16,355
Net income per share
-- diluted $0.21 $1.67
Cash flow per share
-- diluted $0.88 $0.93
EBITDA per share
-- diluted $1.12 $1.17
Common market value 115,699 96,190
Long term debt (LTD) 140,900 134,900
Total enterprise value (TEV) 256,599 231,090
Equity as a percentage
of TEV 0.45 0.42
Working capital (10,198) (1,189)
Property, plant and
equipment, net (PP&E) 171,185 150,916
Leasehold, furniture and
equipment, net 2,007 925
Investment in outside
companies 4,554 4,554
Note receivables 281 663
Deferred tax asset 18,596 20,545
Stockholders' equity 50,722 46,739
Total assets 227,482 202,462
LTD/ EBITDA (LTM) 2.4 2.6
EBITDA (LTM)/ Cash
interest (LTM) 4.8 4.5
LTD/ Total capitalization 0.7 0.7
PV-10/Debt 1.5 1.5
Total production
Oil and condensate (MBbls) 573 562
Gas (Mmcf) 4,685 5,008
Equivalent (MBoe) 1,354 1,397
Equivalent (Mmcfe) 8,123 8,380
Daily production
Oil and condensate (Bbls) 6,297 6,176
Gas (Mcf) 51,484 55,033
Equivalent (Boe) 14,878 15,348
Equivalent (Mcfe) 89,266 92,089
LOE per Boe $5.19 $4.52
G&A per Boe $2.39 $1.34
Operating cash flow per Boe $10.76 $11.08
Cash interest expense per Boe $2.60 $2.28
DD&A per Boe $4.82 $4.95
Capital expenditures 28,789 21,520
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