Berry Petroleum Reports a 10 Percent Increase in 1997 Net Income and a 28 Percent Increase in Production.TAFT, Calif.--(BUSINESS WIRE)--Feb. 9, 1998--Berry Petroleum Co. (NYSE NYSE See: New York Stock Exchange :BRY BRY could refer to:
Bry ) Monday Monday: see week. announced net income of $19.3 million, or 88 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 $69 million for the year ended Dec. 31, 1997, up 10 percent from net income of $17.5 million on revenues of $57.3 million for the year ended Dec. 31, 1996. 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 company achieved record operating results and a 20 percent increase in revenues in 1997 by maintaining its low cost structure and, at the same time, reaching the highest production levels in the company's history. "Our average production increased 28 percent from 9,762 B/D in 1996 to 12,465 B/D in 1997 with current production over 13,000 B/D. Exclusive of production taxes, our lifting costs declined $.20 per barrel barrel: see English units of measurement. , or 5 percent, to $4.24 in 1997 from $4.44 in 1996. These record results were accomplished despite a 4 percent reduction in 1997 average crude price to $14.71 per barrel." Hoffman added: "Unfortunately, since the 1997 fourth quarter, worldwide crude oil prices have declined severely, and our current heavy oil posting is $9.50 per barrel. Berry Berry, former province, France Berry (bĕrē`), former province, central France. Bourges, the capital, and Châteauroux are the chief towns. has reacted by deferring approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 25 percent of its 1998 $13.4 million capital program until at least the latter part of 1998 or until crude prices recover. "In addition, expenses such as steam, contractor contractor n. 1) a person or entity that enters into a contract. 2) commonly, a person or entity that agrees to construct a building or to provide or install specialized portions of the construction. services and overhead have been reduced. Because of our existing low-cost structure, our company is in an excellent position to weather low crude-price periods and prosper at higher crude-price levels." For the fourth quarter ended Dec. 31, 1997, the company earned $4.7 million, or 22 cents per share, on revenues of $17.5 million, down 11 percent from the 1996 fourth quarter earnings of $5.3 million, or 24 cents per share, on revenues of $16.9 million. Average oil prices in the fourth quarter were $14.41 per barrel, down $2.23 or 13 percent, from $16.64 in 1996. Fourth-quarter production increased from 10,678 B/D in 1996 to 13,036 B/D in 1997, an increase of 2,358 B/D, or 22 percent. Total production for 1997 was 4.6 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 ), up 28 percent from 3.6 million BOE produced in 1996. Year- end 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. were 101.1 million BOE, down from 102.1 million BOE at Dec. 31, 1996. Reserve replacement represented 78 percent of 1997 production. Ralph Goehring Goehring may refer to:
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 a record $31.4 million, or $1.43 per share, up $2.2 million, or 8 percent from $29.2 million, or $1.33 per share, in 1996. "During the year, the company was able to retire retire v. 1) to stop working at one's occupation. 2) to pay off a promissory note, and thus "retire" the loan. 3) for a jury to go into the jury room to decide on a verdict after all evidence, argument and jury instructions have been completed. a total of $10.9 million of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. notes payable and 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. incurred in our 1996 acquisitions, as well as implement an $18.6 million capital program and return $8.8 million to our shareholders in cash dividends. These acquisitions were successfully integrated into our operations and contributed strongly to our record 1997 results. "Our goal in 1998 and beyond is to accelerate our production to achieve higher cash flows, maintain our low-cost structure and pursue value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: opportunities." Berry Petroleum is a publicly traded independent oil and gas production and exploration company with its headquarters in Taft. -0-
Condensed Statement of Operations
(In thousands, except per-share data)
(unaudited)
Three Months Ended Year Ended
12/31/97 12/31/96 12/31/97 12/31/96
Operating revenues $17,339 $16,410 $67,172 $55,264
Operating expenses:
Operating costs 6,301 5,350 22,407 17,658
Depreciation, depletion
& amortization 2,589 2,199 10,138 7,323
Total operating expenses 8,890 7,549 32,545 24,981
Operating Income 8,449 8,861 34,627 30,283
General & administrative
expenses 1,698 1,198 5,907 4,820
Interest expense 539 178 2,302 178
Other income 177 494 1,823 2,009
Net income before
income taxes 6,389 7,979 28,241 27,294
Income tax expense 1,733 2,704 8,981 9,748
Net income $ 4,656 $ 5,275 $19,260 $17,546
Net income per share:
Basic $ .22 $ .24 $ .88 $ .80
Fully diluted $ .21 $ .24 $ .87 $ .80
Weighted average
common shares:
Basic 21,984 21,943 21,976 21,939
Fully diluted 21,998 21,963 22,165 21,964
-0-
Condensed Balance Sheets
(In thousands)
Dec. 31, 1997 Dec. 31, 1996
ASSETS
Current assets $ 19,443 $ 26,252
Property & equipment, net 157,441 149,510
Other assets 840 641
$ 177,724 $ 176,403
LIABILITIES & SHAREHOLDERS'
EQUITY
Current liabilities $ 7,944 $ 18,402
Long-term debt 32,000 36,000
Deferred taxes 25,909 20,992
Shareholders' equity 111,871 101,009
$ 177,724 $ 176,403
Condensed Statements of Cash Flows
(In thousands)
Year Ended
12/31/97 12/31/96
Cash flows from operations:
Net income $ 19,260 $ 17,546
Depreciation, depletion & amortization 10,138 7,323
Increase in deferred income taxes 4,917 4,024
Gain on disposition of assets, net (1,093) --
Other, net (302) (258)
Net changes in operating assets and liabilities (1,519) 547
Net cash provided by operations 31,401 29,182
Net cash used in investing (14,199) (72,274)
Net cash provided by (used in) financing (19,416) 34,303
Net decrease in cash & cash equivalents (2,214) (8,789)
Cash & cash equivalents, beginning of period 9,970 18,759
Cash & cash equivalents, end of period $ 7,756 $ 9,970
Comparative Operating Statistics
Three Months Ended
12/31/97 12/31/96 Change
Net production-BOE per day 13,036 10,678 +22%
Per BOE:
Average sales price $ 14.41 $ 16.64 -13%
Operating costs (a) 4.52 4.98 - 9%
Production taxes .74 .51 +45%
Total operating costs 5.26 5.49 - 4%
Depreciation/depletion 2.16 2.24 - 4%
General & administrative expenses $ 1.42 $ 1.22 +16%
Year Ended
12/31/97 12/31/96 Change
Net production-BOE per day 12,465 9,762 +28%
Per BOE:
Average sales price $ 14.71 $ 15.36 - 4%
Operating costs (a) 4.24 4.44 - 5%
Production taxes .68 .48 +42%
Total operating costs 4.92 4.92 -
Depreciation/depletion 2.23 2.05 + 9%
General & administrative expenses $ 1.30 $ 1.35 - 4%
(a) Excluding production taxes
-0- 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 and gas prices, competition, 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 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. CONTACT: Berry Petroleum Co., Taft Jerry V. Hoffman or Ralph J. Goehring, 805/769-8811 805/769-8960 (fax) www.bry.com (Web site) |
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