Berry Petroleum Reports 1998 Results.TAFT, Calif.--(BUSINESS WIRE)--Feb. 12, 1999--Berry Petroleum Co. (NYSE NYSE See: New York Stock Exchange :BRY BRY could refer to:
Bry ) Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant announced net income of $3.9 million, or 18 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , on revenues of $39.9 million for the year ended Dec. 31, 1998, down 80 percent from net income of $19.3 million on revenues of $69 million for the year ended Dec. 31, 1997. For the fourth quarter ended Dec. 31, 1998, the company reported a net loss of $1.1 million, or 5 cents per share, on revenues of $8.7 million, compared with 1997 fourth-quarter earnings of $4.7 million, or 22 cents per share, on revenues of $17.5 million. In addition to reducing total revenues, the decline in oil prices resulted in a $1.8 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , noncash property 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. charge. Excluding the impairment charge, the company had break-even earnings in the fourth quarter and earnings of $5 million, or 23 cents per share, for the year ended Dec. 31, 1998. Average oil prices in the fourth quarter were $8.09 per barrel, down $6.32, or 44 percent, from $14.41 in 1997. Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. Hoffman, chairman, president and chief executive officer, stated: "The crude price decline of 38 percent from our average 1997 crude price of $14.71 per barrel to $9.05 in 1998 was especially harsh on Verb 1. harsh on - criticize harshly; "the teacher keeps harshing on the same kid" criticise, criticize, pick apart, knock - find fault with; express criticism of; point out real or perceived flaws; "The paper criticized the new movie"; "Don't knock the food--it's the company's profitability and cash flow. Nevertheless, we remained faithful to our strategy of diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d controlling our costs, deferring capital expenditures to a better price environment and pursuing select, quality acquisitions. "While our average production declined 3 percent from 12,465 B/D in 1997 to 12,053 B/D in 1998, we are targeting our 1999 production, which includes our recent acquisition of the Placerita oilfield, to exceed 14,500 B/D. "Our production declined primarily due to our early 1998 decision to decrease our steam injection volumes and reduce our capital expenditures to $7 million from our preliminary budget of $13.5 million. These actions were successful in reducing our operating costs operating costs npl → gastos mpl operacionales by 87 cents per barrel, or 18 percent, to $4.05 in 1998 from $4.92 in 1997. "In addition, we successfully executed our strategy of acquiring high-quality heavy oil properties with two acquisitions. The first was a small acquisition of four properties adjacent to our core South Midway-Sunset holdings in August 1998, and included approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1 million barrels of 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. . " The second, which closed today, was the acquisition of the Placerita oilfield with proved reserves of approximately 20 million barrels." Hoffman added: "In looking forward, 1999 appears to be another challenging year in which we must maintain strict cost control and conserve our cash flow. Our 1999 capital budget is $5.3 million and includes only 9 new development wells, 13 well workovers and some required facility work. We continue to defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. a number of quality development projects until crude-oil prices improve." Total production for 1998 was 4.4 million barrels of oil equivalent (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 ), down 3 percent from 4.55 million BOE produced in 1997. 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 were 92.6 million BOE, down from 101.1 million BOE at Dec. 31, 1997, due to the above production and the loss of 5 million barrels deemed uneconomic due to low oil prices at year end. The company's current proved reserves are approximately 112 million barrels, which includes the just-completed acquisition of the Placerita oilfield, adding 20 million barrels. Berry Berry, former province, France Berry (bĕrē`), former province, central France. Bourges, the capital, and Châteauroux are the chief towns. paid $35 million for the Placerita oilfield, which includes a 42 megawatt meg·a·watt n. Abbr. MW One million watts. meg  a·watt cogeneration cogenerationIn power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. facility that provides steam for enhanced oil-recovery operations. Ralph Goehring Goehring may refer to:
"In addition to an 18 percent decline on our operating cost per barrel, we also achieved a 31 percent decline in our G&A cost per barrel from $1.30 in 1997 to 90 cents in 1998. This was accomplished by staff and salary reductions, as well as the diligent dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d efforts by our employees in attacking costs. "Due to extremely low oil prices at year end, our pre-tax PV-10 SEC standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. measure of the company's reserves decreased by 70 percent to $114 million from $376 million at year-end 1997. "These estimated cash flows are discounted at 10 percent using the year-end average oil sales price of $7.05 and $12.19 per barrel unescalated for 1998 and 1997, respectively. Our 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 was $19.9 million, down 37 percent from our record $31.4 million achieved in 1997." Except for actual operating results, 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. that involve risks and uncertainties that may cause future results to differ materially from forecasted results. These risks include, among other things, volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of oil and gas prices, competition, year-2000 issues, 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. that can effect the ability of the company to meet its goals. These and other risks are described in the company's reports on Forms 10-K, 10-Q and other filings with the Securities and Exchange Commission. -0-
Berry Petroleum Co.
Condensed Statement of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31,
1998 1997 1998 1997
Revenues:
Sales of oil and gas $ 8,654 $17,384 $39,858 $67,172
Interest and other
income, net 93 132 41 1,823
Total 8,747 17,516 39,899 68,995
Expenses:
Operating costs 4,543 6,302 17,828 22,407
Depreciation, depletion
and amortization 2,527 2,589 10,080 10,138
Impairment of oil properties 1,827 -- 1,827 --
General & administrative 863 1,698 3,975 5,907
Interest 475 539 1,939 2,302
Total 10,235 11,128 35,649 40,754
Income (loss) before
income taxes (1,488) 6,388 4,250 28,241
Provision (benefit) for
income taxes (404) 1,733 371 8,981
Net income (loss) $(1,084) $ 4,655 $ 3,879 $19,260
Basic net income (loss)
per share (5 cents) 22 cents 18 cents 88 cents
Diluted net income (loss)
per share (5 cents) 21 cents 18 cents 87 cents
Cash dividends per share 10 cents 10 cents 40 cents 40 cents
Weighted average common shares:
Basic 22,009 21,984 22,007 21,976
Diluted 22,036 21,998 22,037 22,165
Berry Petroleum Co.
Condensed Balance Sheets
(In thousands)
Dec. 31, 1998 Dec. 31, 1997
ASSETS
Current assets $ 17,312 $ 19,443
Property & equipment, net 155,571 157,441
Other assets 921 840
$ 173,804 $ 177,724
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities $ 8,231 $ 7,944
Long-term debt 30,000 32,000
Deferred taxes 28,649 25,909
Shareholders' equity 106,924 111,871
$ 173,804 $ 177,724
Berry Petroleum Co.
Condensed Statements of Cash Flows
(In thousands)
Year Ended
Dec. 31, Dec. 31,
1998 1997
Cash flows from operations:
Net income $ 3,879 $19,260
Depreciation, depletion & amortization 10,080 10,138
Asset dispositions/impairment 1,772 (1,093)
Increase in deferred income taxes 2,740 4,917
Other, net (260) (302)
Net changes in operating assets and liabilities 1,713 (1,519)
Net cash provided by operations 19,924 31,401
Net cash used in investing (9,854) (14,199)
Net cash used in financing (10,768) (19,416)
Net decrease in cash & cash equivalents (698) (2,214)
Cash & cash equivalents, beginning of period 7,756 9,970
Cash & cash equivalents, end of period $ 7,058 $ 7,756
Basic per share cash flow from operations 91 cents $ 1.43
Berry Petroleum Co.
Comparative Operating Statistics
Three Months Ended
Dec. 31, Dec. 31,
1998 1997 Change
Net production - BOE per day 11,602 13,036 -11%
Per BOE:
Average sales price $ 8.09 $14.41 -44%
Operating costs(a) 3.79 4.52 -16%
Production taxes 47 cents 74 cents -36%
Total operating costs 4.26 5.26 -19%
Depreciation/depletion 2.37 2.16 +10%
General & administrative expenses 81 cents $ 1.42 -43%
Year Ended
Dec. 31, Dec. 31,
1998 1997 Change
Net production - BOE per day 12,053 12,465 -3%
Per BOE:
Average sales price $ 9.05 $14.71 -38%
Operating costs(a) 3.46 4.24 -18%
Production taxes 59 cents 68 cents -13%
Total operating costs 4.05 4.92 -18%
Depreciation/depletion 2.29 2.23 +3%
General & administrative expenses 90 cents $ 1.30 -31%
(a) Excluding production taxes
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion