Benton Oil and Gas Company Reports First Quarter 1999 Earnings and Delta Centro Update.CARPINTERIA, Calif.--(BUSINESS WIRE)--May 12, 1999-- 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 reported financial and operating results for its first quarter ended March 31, 1999. The Company reported a consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net loss for the first quarter of $8.7 million, or $0.29 per share on a 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. basis, compared to a net loss of $21.0 million, or $0.71 on a diluted basis, during the same 1998 period, which included a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $16.0 million (net of income tax and minority interest effects). Revenues from sale of produced oil for the first quarter 1999 totaled $18.0 million, as compared to $28.5 million for the quarter ended March 31, 1998. The lower first quarter 1999 revenue results on a quarter to quarter comparison were due to a combination of lower production volumes and the significantly reduced oil price realizations associated with a prevailing weak commodity environment earlier this year. 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 working capital changes was a negative $2.7 million, or negative nine cents per diluted share, for the quarter ended March 31, 1999, compared to cash flow from operations of $6.1 million, or 21 cents per diluted share, for the quarter ended March 31, 1998. Cash flow from operations before working capital changes on a comparable quarter comparison were also negatively impacted by the combination of weak commodity prices and lower production volumes. Average production for the quarter of 33,166 barrels of oil per day was down 21% from the comparable first quarter 1998 average of 41,891 barrels of oil per day. Earnings before interest, taxes, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able , depreciation and amortization ("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 ") were $3.4 million for the quarter ended March 31, 1999, versus EBITDA of $12.3 million for the same 1998 period. In other operational news, Benton reports that the first exploratory well on the Delta Centro Centro (Portuguese and Spanish for center) may refer to: Places:
 nz),n. were encountered during drilling of the well, Benton and its partners have concluded that the well is non-commercial A non-commercial enterprise is work that values other considerations above and beyond that of making a profit. It differs from a non-profit enterprise in that seeking a profit is a part of their business, just not the main part. . Currently, the partners are reevaluating the block for any future potential. Benton's net share of the costs associated with this well are expected to total between $6 million and $7 million. In light of the status of the Company's previously announced review of strategic alternatives, the Company and its advisors have determined that an investor conference call remains inappropriate inappropriate Medtalk adjective A diagnostic or therapeutic procedure proven to be unnecessary for the efficient management of a particular Pt. See Appropriateness, Canadian plan, Practice guidelines Neurology adjective Referring to a response or behavior at this time. Inquiries concerning this press release may be directed to James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. M. Whipkey at the telephone number specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. below. 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 operations worldwide. 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 and Section 21E of the Exchange Act. All statements other than statements of historical facts included in this release may constitute forwarding-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 economical factors. -0-
BENTON OIL AND GAS COMPANY
CONSOLIDATED BALANCE SHEETS
($ millions)
March 31, December 31,
1999 1998
ASSETS:
CURRENT ASSETS:
Cash and equivalents $ 12.4 $ 18.1
Marketable securities 29.8 41.2
Accounts receivable, net 27.4 29.8
Prepaid expenses and other 3.7 3.7
Total current assets 73.3 92.8
RESTRICTED CASH 65.8 65.7
OTHER ASSETS 11.4 11.7
DEFERRED INCOME TAXES 3.0 3.0
INVESTMENTS IN AND ADVANCES
TO AFFILIATED COMPANY 18.6 11.9
PROPERTY AND EQUIPMENT, net 164.0 153.5
TOTAL ASSETS $336.1 $338.6
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Accounts payable $ 8.7 $ 10.0
Accrued interest 11.8 5.5
Accrued expenses 20.6 19.3
Income taxes payable 2.3 1.9
Current portion of long term debt 0.1 0.2
Total current liabilities 43.5 36.9
LONG TERM DEBT 287.6 288.2
MINORITY INTEREST 0.6 0.5
STOCKHOLDERS' EQUITY:
Common stock and paid-in capital 147.4 147.4
Retained deficit (140.2) (131.6)
Treasury stock (0.7) (0.7)
Employee notes receivable, net (2.1) (2.1)
Total stockholders' equity 4.4 13.0
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $336.1 $338.6
BENTON OIL AND GAS COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per BOE and per share amounts)
THREE MONTHS ENDED: March 31, 1999 March 31, 1998
Barrels of oil sold: 2,992 3,773
Mcf of gas sold:
Barrel of oil equivalents
(BOE) sold: 2,992 3,773
Average price/barrel $6.01 $7.55
$ $/BOE $ $/BOE
REVENUES:
Oil sales $17,971 $6.01 $28,501 $7.55
Net gain on exchange rates 1,415 0.47 613 0.16
Investment earnings and other 2,654 0.89 4,144 1.10
22,040 7.37 33,258 8.81
EXPENSES:
Lease operating costs 10,805 3.61 12,923 3.43
Production taxes 326 0.11 318 0.08
Depletion 4,867 1.63 10,790 2.86
Write-down and impairment
of oil and gas properties 17,500 4.64
Depreciation and amortization 500 0.17 276 0.07
General and administrative 5,567 1.86 5,406 1.43
Interest 7,843 2.62 8,080 2.14
29,908 10.00 55,293 14.65
LOSS BEFORE INCOME TAXES AND
MINORITY INTEREST (7,868) (2.63) (22,035) (5.84)
Income tax expense (benefit) 640 0.21 (670) (0.18)
LOSS BEFORE MINORITY INTEREST (8,508) (2.84) (21,365) (5.66)
Minority interest in Venezuela 155 0.05 (379) (0.10)
NET LOSS ($8,663)($2.89) ($20,986)($5.56)
NET LOSS PER COMMON SHARE:
Basic ($0.29) ($0.71)
Diluted ($0.29) ($0.71)
CASH FLOW FROM OPERATIONS,
BEFORE WORKING CAPITAL CHANGES ($2,710)($0.91) $6,072 $1.61
CASH FLOW FROM OPERATIONS,
BEFORE WORKING CAPITAL CHANGES,
Per Share ($0.09) $0.21
Weighted average shares
outstanding:
Basic 29.6 million 29.5 million
Diluted 29.6 million 29.5 million
EBITDA $3,423 $12,334
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