Benton Oil and Gas Company Announces Improved 2000 Financial Results.Business Editors CARPINTERIA, Calif.--(BUSINESS WIRE)--April 2, 2001 Benton Benton, city (1990 pop. 18,177), seat of Saline co., central Ark.; founded 1836. Once a significant aluminum producer, the city manufactures fabricated-metal and wood products. Oil and Gas Company (NYSE NYSE See: New York Stock Exchange :BNO BNO Beroepsorganisatie Nederlandse Ontwerpers BNO Boys' Night Out (band) BNO Boyz Nite Out BNO Big Night Out (band) BNO Bau- und Nutzungsordnung BNO Baksan Neutrino Observatory ) today announced improved financial results for 2000 compared with 1999. Revenues increased 57 percent to $140 million, 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 increased over 160 percent to $81 million, 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. increased over 600 percent to $47 million, and net income was $20 million compared with a loss of $32 million for 1999. On a share basis, 2000 EBITDA was $2.61 per share (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. ) compared with $1.01 per share for 1999; discretionary cash flow was $1.53 per share compared with $0.23 per share and 2000 net income was $0.66 per share (diluted) compared with a loss for 1999 of $1.09 per share. The Company's South Monagas “Monagas” redirects here. For other uses, see Monagas (disambiguation). Estado Monagas is one of the 23 states (estados) into which Venezuela is divided. Unit (SMU SMU Southern Methodist University SMU Solid (Waste) Management Unit SMU Saint Mary's University (Halifax, Nova Scotia; Philippines) SMU Singapore Management University SMU Saint Mary's University of Minnesota ) in Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. produced an average of 25,600 barrels of oil per day (BOPD BOPD Barrels of Oil Per Day BOPD Bataan Ocean Petroleum Depot ) during 2000, compared with 26,500 BOPD during 1999. As a result of the 2000 drilling program, daily production increased throughout the year to a level over 30,000 BOPD by January January: see month. 2001, compared with 23,900 at the start of January 2000. The average price received for the Company's SMU production in 2000 was $14.94 per barrel barrel: see English units of measurement. , compared with the $9.21 per barrel received for 1999. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. per barrel of oil equivalent The barrel of oil equivalent (bboe, sometimes BOE) is a unit of energy based on the approximate energy released by burning one barrel of crude oil. The US Internal Revenue Service defines it as equal to 5.8 × 106 BTU [1]. 5. (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 ) produced increased to $5.82 per BOE (before impairments), compared with $0.35 per BOE (before impairments) for 1999. Benton's share of Geoilbent production in 2000 increased nine percent to 4,500 BOPD, compared with 4,100 for 1999. First production from Arctic Arctic area of constant cold. [Geography: WB, A:600] See : Coldness (language, music) Arctic - A real-time functional language, used for music synthesis. ["Arctic: A Functional Language for Real-Time Control", R.B. Gas commenced in January 2000 of which Benton's share averaged 300 BOPD for the full year 2000, ending the year at 550 BOPD. Dr. Peter J. Hill, Benton's President and Chief Executive Officer, said, "Last year's operating performance and crude oil price environment enabled Benton to return to profitability, while at the same time the Company underwent several major changes. Several strategic actions were taken during the year that will have a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. impact. Importantly, we reconstituted our Board of Directors, added key senior management executives and redefined our strategic priorities to focus on balance sheet restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and asset value growth. Second, we began to accelerate Venezuelan cash flow and increase the value of our Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. assets. In Venezuela, we suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. development drilling pending a major review of SMU field operations and concentrated on maximizing max·i·mize tr.v. max·i·mized, max·i·miz·ing, max·i·miz·es 1. To increase or make as great as possible: production from existing wells. We expect to average approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 28,500 BOPD for the first quarter 2001. The field study will result in a revised and more efficient Field Development Plan, with development drilling expected to resume in July July: see month. . In Russia Russia, officially the Russian Federation, Rus. Rossiya, republic (2005 est. pop. 143,420,000), 6,591,100 sq mi (17,070,949 sq km). , Geoilbent is generating sufficient cash to fund its capital expenditures and debt service requirements, and expects to start paying dividends to shareholders in 2001. Arctic Gas booked 41 MMSTBOE of net proven reserves in 2000. We intend to pursue loans to allow the early delivery of natural gas sales as well as increase our oil production. Lastly, our debt has fallen from $265 million to $213 million as a result of several financial transactions completed during the year." Dr. Hill continued, "We continue to aggressively explore alternatives to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. shareholder value based on the belief that we have significant unexploited and unrecognized value in our world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. assets in Venezuela and Russia. We continue to be burdened by significant debt which impairs our ability to exploit opportunities. Accordingly, we have reviewed various strategic alternatives with our advisor, Dresdner Kleinwort Dresdner Kleinwort (DKIB) is the investment bank of Dresdner Bank AG, part of Allianz since July 2001. Headquartered in London and Frankfurt and with an international network including offices in the financial centres of New York and Tokyo, Dresdner Kleinwort provides a wide range Wasserstein Was·ser·stein , Wendy Born 1950. American playwright noted for her comedies, such as The Heidi Chronicles (1988), for which she won a Pulitzer Prize. , including, but not limited to, selling all or part of our existing assets in Venezuela and Russia, debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: , some combination thereof, or the sale of the Company. We look forward to the rest of this year during which the Company intends to deliver the program laid out in earlier press releases, meet our debt service payments and act on the financial restructuring of our balance sheet. However, at this time we cannot give any assurance that any of these steps can be successfully completed."
Following is a summary of fourth quarter and annual operating and
financial results:
Fourth Quarter Annual
2000 1999 2000 1999
Production (BOPD) 27,000 24,700 25,600 26,500
Average Price ($/Bbl) $15.58 $12.36 $14.95 $9.21
Revenue ($MM) $38.7 $28.1 $140.3 $89.1
EBITDA ($MM) 22.9 9.9 80.6 29.9
Per Share 0.69 0.34 2.61 1.01
Discretionary Cash Flow ($MM) 23.7 7.1 47.3 6.7
Per Share 0.71 0.24 1.53 0.23
Net Income (Loss) ($MM) 8.8 (1.9) 20.5 (32.3)
Per Share $0.26 $(0.07) $0.66 $(1.09)
Benton Oil and Gas Company, headquartered in Carpinteria, California Carpinteria is a small oceanside city located in the southeastern extremity of Santa Barbara County, California, east of Santa Barbara and northwest of Ventura. The population was 14,194 at the 2000 census. , is an independent oil and gas exploration and development company with principal operations in Venezuela and Russia. This press release may contain "Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this release may constitute forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Actual results may differ materially from the Company's expectations due to changes in operating performance, project schedules, oil and gas demands and prices, and other technical and economic factors.
BENTON OIL AND GAS COMPANY
CONSOLIDATED BALANCE SHEETS
($ millions)
December 31, December 31,
2000 1999
ASSETS:
CURRENT ASSETS:
Cash and equivalents $ 15.1 $ 21.2
Marketable securities 1.3 4.5
Accounts receivable, net 44.8 32.3
Prepaid expenses and other 2.4 1.6
Total current assets 63.6 59.6
RESTRICTED CASH 10.9 46.5
OTHER ASSETS 5.9 10.6
DEFERRED INCOME TAXES 4.3 12.2
INVESTMENTS IN AND ADVANCES TO
AFFILIATED COMPANIES 77.7 61.3
PROPERTY AND EQUIPMENT, net 124.0 86.1
TOTAL ASSETS $286.4 $276.3
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT):
CURRENT LIABILITIES:
Accounts payable $ 12.8 $ 3.3
Accrued expenses 25.1 17.1
Accrued interest 3.7 4.7
Income taxes payable 3.9 2.4
Short-term borrowings 5.7 -
Total current liabilities 51.2 27.5
LONG TERM DEBT 213.0 264.6
COMMITMENTS AND CONTINGENCIES -- --
MINORITY INTEREST 9.3 1.4
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock and paid-in capital 157.0 147.4
Retained deficit (143.4) (163.9)
Treasury stock (0.7) (0.7)
Total stockholders' equity (deficit) 12.9 (17.2)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT) $286.4 $276.3
BENTON OIL AND GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per BOE and per share amounts)
THREE MONTHS ENDED: December 31, 2000 December 31, 1999
Barrels of oil sold 2,486 2,269
MCF of Gas Sold 7 --
Total BOE 2,487 2,269
Average price/barrel $ 15.58 $ 12.36
Average price/mcf $ 5.85 --
$ $/BOE $ $/BOE
REVENUES:
Oil sales $ 38,728 $15.58 $ 28,054 $12.36
Gas sales 40 5.85 -- --
38,768 15.59 28,054 12.36
EXPENSES:
Operating expenses 12,663 5.09 9,773 4.30
Depletion, depreciation
and amortization 5,521 2.22 3,768 1.66
Impairments 277 0.11 11,569 5.10
General and administrative 4,415 1.78 9,117 4.02
Taxes other than on income 930 0.37 1,362 0.60
23,806 9.57 35,589 15.68
INCOME (LOSS) FROM OPERATIONS 14,962 6.02 (7,535) (3.32)
OTHER NON-OPERATING INCOME
(EXPENSE)
Investment income and other 1,997 0.80 1,980 0.87
Interest expense (6,745) (2.71) (7,211) (3.18)
Net gain (loss) on
exchange rates 126 0.05 132 0.06
(4,622) (1.86) (5,099) (2.25)
INCOME (LOSS) FROM CONSOLIDATED
COMPANIES BEFORE INCOME TAXES
AND MINORITY INTERESTS 10,340 4.16 (12,634) (5.57)
Income tax expense (benefit) 723 0.29 (9,608) (4.24)
INCOME (LOSS) BEFORE MINORITY
INTERESTS 9,617 3.87 (3,026) (1.33)
Minority interest in consoli-
dated subsidiary companies 2,891 1.16 404 0.18
INCOME (LOSS) FROM CONSOLIDATED
COMPANIES 6,726 2.71 (3,430) (1.51)
Equity in net earnings of
affiliated companies 1,196 0.48 1,494 0.66
NET INCOME (LOSS) BEFORE
EXTRAORDINARY INCOME 7,922 3.19 (1,936) (0.85)
Extraordinary income on debt
repurchase, net of tax of $0 865 0.34
NET INCOME (LOSS) $ 8,787 $ 3.53 $ (1,936) $(0.85)
NET INCOME (LOSS) PER COMMON SHARE
BASIC:
Income (loss) per share
before extraordinary income $ 0.24 $ (0.07)
Extraordinary income on
debt repurchase 0.02 --
Net income (loss) $ 0.26 $ (0.07)
DILUTED:
Income (loss) per share
before extraordinary income $ 0.24 $ (0.07)
Extraordinary income on
debt repurchase 0.02 --
Net income (loss) $ 0.26 $ (0.07)
DISCRETIONARY CASH FLOW $ 23,724 $ 9.54 $ 7,073 $ 3.12
DISCRETIONARY CASH FLOW,
per share $ 0.71 $ 0.24
Weighted average shares
outstanding:
Basic 33.3 million 29.6 million
Diluted 33.3 million 29.6 million
EBITDA $ 22.9 million $ 9.9 million
BENTON OIL AND GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per BOE and per share amounts)
YEAR ENDED: December 31, 2000 December 31, 1999
Barrels of oil sold 9,371 9,667
MCF of Gas Sold 43 --
Total BOE 9,378 9,667
Average price/barrel $ 14.95 $ 9.21
Average price/mcf $ 4.63 --
$ $/BOE $ $/BOE
REVENUES:
Oil sales $140,085 $14.95 $ 89,060 $ 9.21
Gas sales 199 4.63 -- --
140,284 14.96 89,060 9.21
EXPENSES:
Operating expenses 47,430 5.06 39,393 4.07
Depletion, depreciation
and amortization 17,175 1.83 16,519 1.71
Impairments 1,346 0.14 25,891 2.68
General and administrative 16,739 1.78 25,969 2.69
Taxes other than on income 4,390 0.47 3,813 0.39
87,080 9.29 111,585 11.54
INCOME (LOSS) FROM OPERATIONS 53,204 5.67 (22,525) (2.33)
OTHER NON-OPERATING INCOME
(EXPENSE)
Investment income and other 8,559 0.91 8,986 0.93
Interest expense (28,973) (3.08) (29,247) (3.03)
Net gain on exchange rates 326 0.03 1,044 0.11
(20,088) (2.14) (19,217) (1.99)
INCOME (LOSS) FROM CONSOLIDATED
COMPANIES BEFORE INCOME TAXES
AND MINORITY INTERESTS 33,116 3.53 (41,742) (4.32)
Income tax expense (benefit) 14,032 1.50 (7,526) (0.78)
INCOME (LOSS) BEFORE MINORITY
INTERESTS 19,084 2.03 (34,216) (3.54)
Minority interest in consoli-
dated subsidiary companies 7,869 0.84 937 0.10
INCOME (LOSS) FROM CONSOLIDATED
COMPANIES 11,215 1.19 (35,153) (3.64)
Equity in net earnings of
affiliated companies 5,313 0.57 2,869 0.30
NET INCOME (LOSS) BEFORE
EXTRAORDINARY INCOME 16,528 1.76 (32,284) (3.34)
Extraordinary income on debt
repurchase, net of tax of $0 3,960 0.42 -- 0.00
NET INCOME (LOSS) $ 20,488 $ 2.18 $(32,284) $(3.34)
NET INCOME (LOSS) PER COMMON SHARE
BASIC:
Income (loss) per share
before extraordinary income $ 0.54 $ (1.09)
Extraordinary income on
debt repurchase 0.13 --
Net income (loss) $ 0.67 $ (1.09)
DILUTED:
Income (loss per share before
extraordinary income $ 0.53 $ (1.09)
Extraordinary income on
debt repurchase 0.13 --
Net income (loss) $ 0.66 $ (1.09)
DISCRETIONARY CASH FLOW $ 47,264 $ 5.04 $ 6,655 $ 0.69
DISCRETIONARY CASH FLOW,
per share $ 1.53 $ 0.23
Weighted average shares
outstanding:
Basic 30.7 million 29.6 million
Diluted 30.9 million 29.6 million
EBITDA $ 80.6 million $ 29.9 million
BENTON OIL AND GAS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
Cash Flows From Operating
Activities:
Net income (loss) $ 8,787 $ (1,936) $ 20,488 $(32,284)
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depletion, depreciation
and amortization 5,521 3,768 17,175 16,519
Write-down and impairment
of oil & gas properties 277 11,569 1,346 25,891
Amortization of financing
costs 328 349 1,375 1,396
Loss on disposition
of assets 40 5 60 44
Equity in earnings of
affiliated companies (1,196) (1,494) (5,313) (2,869)
Allowance and write off of
employee notes and
accounts receivable 84 3,363 331 6,231
Minority interest in
undistributed earnings
of subsidiaries 2,891 404 7,869 937
Extraordinary income from
repurchase of debt (865) -- (3,960) --
Deferred income taxes 7,857 (8,955) 7,893 (9,210)
Changes in operating assets
and liabilities:
Accounts and notes
receivable (4,026) (2,996) (12,780) (6,414)
Prepaid expenses and other (1,779) 1,211 (769) 1,750
Accounts payable 1,445 (125) 9,487 (3,142)
Accrued interest payable (5,965) (5,705) (953) (711)
Accrued expenses 286 (1,920) 7,997 (166)
Income taxes payable (8,497) (340) 1,517 636
Net Cash Provided By (Used
In) Operating Activities 5,188 (2,802) 51,763 (1,392)
Cash Flows From Investing
Activities:
Proceeds from sale of
property and equipment 800 100 800 15,100
Additions of property
and equipment (17,069) (7,554) (57,196) (36,984)
Investment in and advances
to affiliated companies (3,980) (2,529) (11,071) (13,052)
Increase in restricted cash (72) (1) (271) (214)
Decrease in restricted cash 34,575 863 35,800 19,435
Purchases of marketable
securities 1,012 (2,407) (12,638) (29,173)
Maturities of marketable
securities (248) 14,272 15,804 65,877
Net Cash Provided By (Used
In) Investing Activities 15,018 2,744 (28,772) 20,989
Cash Flows From Financing
Activities:
Net proceeds from exercise of
stock options and warrants 70 22 330 24
Proceeds from issuance of
short-term borrowings and
notes payable 15,087 -- 15,087 --
Payments on short-term
borrowings and notes payable (43,949) (367) (47,488) (15,439)
(Increase) decrease in
other assets 2,602 16 3,065 (233)
Net Cash Used in Financing
Activities (26,190) (329) (29,006) (15,648)
Net Increase (Decrease)
in Cash (5,984) (387) (6,015) 3,949
Cash and Cash Equivalents at
Beginning of Period 21,116 21,534 21,147 17,198
Cash and Cash Equivalents at
End of Period $ 15,132 $ 21,147 $ 15,132 $ 21,147
Discretionary Cash Flow $ 23,724 $ 7,073 $ 47,264 $ 6,655
Discretionary Cash Flow,
per share $ 0.71 $ 0.24 $ 1.53 $ 0.23
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