Berry Petroleum Reports Record First Quarter 2000 Results; Net Earnings Up Over Sixteen-Fold.Business Editors TAFT, Calif.--(BUSINESS WIRE)--May 9, 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 first quarter ended March 31, 2000 of $8.9 million, or $.40 per share, on record revenues of $26.1 million, up from $.5 million or $.02 per share, on revenues of $9.7 million for the first quarter of 1999. Earnings before interest, taxes, depreciation, 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 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 ) for the first quarter of 2000 were $16.7 million, up 307% from $4.1 million in the first quarter of 1999. 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, "Berry had an excellent quarter as crude oil prices were up sharply from a year ago -- our realized price per barrel barrel: see English units of measurement. improved by $11.98 to $19.99 from a historic low $8.01 in the first quarter of 1999. Our current expectations are for a continued strong oil price environment for the remainder of this year and continuing into 2001, thus, we are accelerating our development projects through our $22 million 2000 capital program. "Our production rate of 14,297 barrels of oil equivalent per day (BOEPD BOEPD Barrels of Oil Equivalent Per Day ) in the first quarter was up 12% from our 1999 first quarter of 12,778 BOEPD, but off slightly from 14,736 BOEPD in the 1999 fourth quarter. Our production levels are improving as we increase our steam injection and as production from our development program begins. We are adding a second drilling rig this month to accelerate our development projects." Hoffman added, "Our operating costs operating costs npl → gastos mpl operacionales rose to $5.15/bbl which reflects our increased well work, but also includes approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $.54/bbl related to a six square mile 3-D seismic survey run on our South Midway-Sunset non-producing acreage. We expect to have the processed seismic data from this survey in mid- mid- pref. Middle: midbrain. 2000." In April, Berry entered into a three-year agreement to sell most of its crude oil to one company, and while actual realizations above average postings may vary significantly from month to month, the company anticipates averaging at least $.50/bbl above postings over the term of the agreement. General and administrative expenses rose to $2.08/bbl from $.97/bbl in the 1999 first quarter. Approximately $.70/bbl are non-recurring expenses related to 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. which concluded in the first quarter. Ralph Goehring Goehring may refer to:
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. . With record earnings, increasing cash flow and over $100 million in borrowing capacity on our credit facility, Berry continues to maintain excellent financial flexibility." Berry Petroleum Company is a publicly traded independent oil and gas production and exploitation Exploitation See also Opportunism. Barnum, P. T. (1810–1891) circus impressario famous for his saying, “Never give a sucker an even break.” [Am. Hist. company with its headquarters in Taft, California Taft is a city in Kern County, California, United States. The population was 6,400 at the 2000 census. Adjoining the town to the north is the unincorporated area called Ford City. On the south end of Taft's municipal border is another unincorporated area known as South Taft. .
CONDENSED INCOME STATEMENTS
(In thousands, except per share data)
(unaudited)
Three Months Ended
3/31/00 3/31/99
Revenues:
Sales of oil and gas $26,026 $ 9,225
Interest and other income, net 111 432
Total 26,137 9,657
Expenses:
Operating costs 6,705 4,462
Depreciation, depletion & amortization 3,312 2,843
General and administrative 2,710 1,112
Interest 935 927
Total 13,662 9,344
Income before income taxes 12,475 313
Provision (benefit) for income taxes
3,616 (231)
Net income $ 8,859 $ 544
Basic and diluted net income per share $ .40 $ .02
Cash dividends per share $ .10 $ .10
Weighted average common shares:
Basic 22,018 22,009
Diluted 22,198 22,019
CONDENSED BALANCE SHEETS
(In thousands)
(unaudited)
March 31, 2000 December 31, 1999
-------------- -----------------
ASSETS
Current assets $ 21,775 $ 18,959
Property & equipment, net 190,426 186,519
Other assets 2,076 2,171
----------- -----------
$ 214,277 $ 207,649
=========== ===========
LIABILITIES & SHAREHOLDERS'
EQUITY
Current liabilities $ 16,995 $ 10,524
Long-term debt 44,000 52,000
Deferred taxes 30,300 28,912
Shareholders' equity 122,982 116,213
----------- -----------
$ 214,277 $ 207,649
=========== ===========
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Three Months Ended
3/31/00 3/31/99
Cash flows from operations:
Net income $ 8,859 $ 544
Depreciation, depletion & amortization 3,312 2,843
Other, net 1,318 (98)
Net changes in operating assets
and liabilities 4,059 (3,802)
Net cash provided by (used in)
operations 17,548 (513)
Net cash used in investing activities (7,075) (37,262)
Net cash (used in) provided by
financing activities (10,070) 32,401
Net increase (decrease) in cash &
cash equivalents 403 (5,374)
Cash & cash equivalents, beginning of year 980 7,058
Cash & cash equivalents, end of period $ 1,383 $ 1,684
COMPARATIVE OPERATING STATISTICS
Three Months Ended
3/31/00 3/31/99 Change
Net production-BOE per day 14,297 12,778 + 12%
Per BOE:
Average sales price $19.99 $ 8.01 +150%
Operating costs 4.70 3.21 +46%
Production taxes .45 .67 -33%
Total operating costs 5.15 3.88 +33%
Depreciation & depletion 2.48 2.47 -
General & administrative expenses 2.08 .97 +114%
Interest Expense per BOE .72 .81 -11%
Note: Interested parties may participate in the company's conference call, scheduled for May 10 at 8:00 a.m. Pacific Time, by dialing 1-800-837-5682 using access code 2315480. A digital replay will be available until May 17. Dial 1-888-843-8996 and use access code 2315480 to listen to the digital replay. 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 which 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, gas, and electricity prices, competition, year 2000 issues, environmental risks, litigation uncertainties, government regulation, and 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. which can affect 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. |
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