Berry Petroleum Company Reports Record Third-Quarter Earnings.Business Editors TAFT, Calif.--(BUSINESS WIRE)--Nov. 8, 2000 Berry Berry, former province, France Berry (bĕrē`), former province, central France. Bourges, the capital, and Châteauroux are the chief towns. Petroleum Company (NYSE NYSE See: New York Stock Exchange :BRY BRY could refer to:
Bry ) today announced record net income for the third quarter ended September September: see month. 30, 2000, of $9.6 million, or $.43 per share, on revenues of $32.8 million, up 57% from net income of $6.1 million, or $.28 per share, on revenues of $19.4 million for the third quarter of 1999. Average sales price 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 ) for the third quarter was $23.28 per barrel, up 60% from $14.58 in the third quarter of 1999, and up 15% from $20.19 in the second quarter of 2000. For the nine months ended September 30, 2000, net income was up 176% to a record $27.3 million, or $1.24 per share, on revenues of $85.6 million from $9.9 million, or $.45 per share, on revenues of $43.6 million earned in the same 1999 period. Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. V. Hoffman, chairman, president and chief executive officer, stated: "Our third-quarter earnings of $.43 per share marks the fifth consecutive quarter of record earnings for our company. We have also succeeded in increasing production from the company's core properties and averaged 15,244 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. for the third quarter and over 15,500 barrels per day so far in the fourth quarter. All these levels represent new records for Berry." Hoffman continued by stating: "Although the revenue and production trends continue to be very positive, maintaining low operating costs operating costs npl → gastos mpl operacionales is very challenging for Berry in an environment of extremely high natural gas costs such as we are experiencing in the current market. Even though some of the factors which caused higher operating costs in the third quarter of this year are beyond the company's control, we are taking steps to lower our operating costs in the coming quarters." Ralph J. Goehring, senior vice president and chief financial officer, added: "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 first nine months of 2000 was a record $46.8 million, 210% higher than $15.1 million for the same period in 1999. These results have been sufficient to fund all of Berry's capital projects of $17.4 million through September 30, 2000, repay $19 million in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , pay $6.6 million in dividends and purchase an oil property for $3 million. The company retired an additional $6 million in long-term debt in October 2000." An earnings conference call will be held Thursday, November 9, 2000, at 8 a.m. PT. Dial 800/837-9710 (passcode 2973819) to participate. For a digital replay, dial 888/843-8996 (passcode 2973819). Transcripts of this and previous calls may be viewed at www.bry.com/tele.htm. Berry Petroleum Company is a publicly traded independent oil and gas production and exploitation company with headquarters in Taft, Calif. For more information, including California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). heavy oil price postings, visit www.bry.com. "Safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995": With the exception of historical information, the matters discussed in this news release are 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. that involve risks and uncertainties. Although the company 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, but are not limited to, the timing and extent of changes in commodity prices for oil, gas and electricity, competition, environmental risks, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. uncertainties, drilling, development 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. , uncertainties about the estimates of reserves, the prices of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. , the availability of drilling rigs and other support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services , Y2k non-compliance by key vendors, customers, the company, etc., legislative and/or California Public Utilities Commission The California Public Utilities Commission (CPUC; also often commonly referred to as simply the PUC) [1] is a state Public Utilities Commission which regulates privately-owned utilities in the state of California, including electric power, decisions and government regulation.
CONDENSED INCOME STATEMENTS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
9/30/00 9/30/99 9/30/00 9/30/99
(unaudited) (unaudited)
Revenues:
Sales of oil and gas $ 32,731 $ 19,143 $ 85,235 $ 42,842
Interest and other
income, net 118 217 339 735
Total 32,849 19,360 85,574 43,577
Expenses:
Operating costs 14,177 5,887 29,166 15,439
Depreciation, depletion
& amortization 3,542 3,090 10,248 8,978
General and administrative 1,695 1,427 6,003 3,687
Interest 784 1,028 2,575 2,994
Total 20,198 11,432 47,992 31,098
Income before income taxes 12,651 7,928 37,582 12,479
Provision for income taxes 3,073 1,829 10,251 2,589
Net income $ 9,578 $ 6,099 $ 27,331 $ 9,890
Basic net income per share $ .43 $ .28 $ 1.24 $ .45
Diluted net income per share $ .43 $ .28 $ 1.23 $ .45
Cash dividends per share $ .10 $ .10 $ .30 $ .30
Weighted average common shares:
Basic 22,033 22,011 22,027 22,010
Diluted 22,313 22,104 22,239 22,048
-0-
CONDENSED BALANCE SHEETS
(In thousands)
9/30/00 12/31/99
(unaudited)
ASSETS
Current assets $ 27,853 $ 18,959
Property & equipment, net 197,361 186,519
Other assets 1,842 2,171
$ 227,056 $ 207,649
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities $ 23,973 $ 10,524
Long-term debt 33,000 52,000
Deferred taxes 32,917 28,912
Shareholders' equity 137,166 116,213
$ 227,056 $ 207,649
-0-
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
Nine Months Ended
9/30/00 9/30/99
(unaudited)
Cash flows from operations:
Net income $ 27,331 $ 9,890
Depreciation, depletion & amortization 10,248 8,978
Increase (decrease) in deferred income taxes 4,005 (97)
Other, net (102) (198)
Net changes in operating assets and liabilities 5,268 (3,449)
Net cash provided by operations 46,750 15,124
Net cash used in investing (20,431) (41,386)
Net cash provided by (used in) financing (25,610) 22,908
Net increase (decrease) in cash & cash equivalents 709 (3,354)
Cash & cash equivalents, beginning of year 980 7,058
Cash & cash equivalents, end of period $ 1,689 $ 3,704
Basic per share cash flow from operations $ 2.12 $ .69
-0-
COMPARATIVE OPERATING STATISTICS
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
2000 1999 Change 2000 1999 Change
Net production
-BOE per day 15,244 14,267 +7% 14,680 13,681 +7%
Per BOE:
Average sales price $23.28 $14.58 +60% $21.22 $11.46 +85%
Operating costs 9.67 4.01 +141% 6.80 3.49 +95%
Production taxes .43 .48 -10% .45 .55 -18%
Total operating costs 10.10 4.49 +125% 7.25 4.04 +79%
Depreciation & depletion 2.53 2.35 +8% 2.55 2.40 +6%
General & administrative
expenses 1.21 1.09 +11% 1.49 .99 +51%
Interest expense .56 .78 -28% .64 .80 -20%
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