Brigham Exploration Announces Q1 1999 Financial Results.AUSTIN Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas--(BUSINESS WIRE)--May 11, 1999-- Brigham Brigham may refer to the following: Place:
Average net daily production volumes for the first quarter 1999 were 17.5 MMcfe MMcfe Millions of Cubic Feet Equivalent (Per Day; gas exploration) , an increase of 10% from the first quarter 1998. Natural gas and oil sales for the first quarter 1999 were $3.2 million compared to $3.1 million for the same period last year, a 2% increase despite an 8% lower average equivalent sales price received in the current year period. 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 ) increased 11% to $1.7 million in the first quarter 1999 from $1.5 million in the first quarter 1998, while operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. for the first quarter 1999 was $520,000 ($0.04 per 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. share), a decrease from $622,000 ($0.05 per diluted share) for the same period in 1998. The Company reported a net loss of $2.7 million ($0.20 per diluted share) for the first quarter 1999 compared to a net loss of $632,000 ($0.05 per diluted share) for the prior year period. FIRST QUARTER 1999 RESULTS Brigham's net equivalent production volumes in the first quarter 1999 totaled 1.6 Bcfe as compared with volumes of 1.4 Bcfe in the first quarter 1998. Net natural gas production in the first quarter 1999 was 1.1 Bcf, or a 42% increase over the same period in 1998, while net oil production in the current year quarter was 88 MBbls, or a 24% decrease from the prior year quarter. The decrease in net oil production volumes was primarily due to the natural decline of existing producing oil wells coupled with the Company's strategic decision to reduce its drilling for new oil prospects during 1998 and the curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. of certain producing oil wells, both in response to low oil prices. Natural gas comprised 66% of Brigham's equivalent first quarter 1999 production volumes as compared with 52% for the prior year period. Partially offsetting the growth in year-over-year production volumes, the Company's average realized natural gas and oil equivalent sales price declined 8% in the first quarter 1999 as compared to the average realized sales price in the prior year quarter. Brigham's average natural gas sales price for the first quarter 1999 was $2.09 per Mcf compared to $2.05 per Mcf in the first quarter 1998 (a 2% increase), while the Company's average oil sales price for the first quarter 1999 was $11.39 per Bbl compared to $14.15 per Bbl in the prior year period (a 20% decrease). Natural gas hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. gains of $559,220, or $0.53 per Mcf, contributed significantly to the Company's average realized natural gas sales prices during the first quarter 1999. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased 2% in the first quarter 1999 from those incurred during the prior year quarter, primarily due to the combined impacts of (i) a 20% reduction in net general and administrative expenses ($0.58 vs. $0.81 per Mcfe), (ii) 10% lower production taxes and (iii) a slightly improved depletion rate ($0.86 vs. $0.89 per Mcfe), partially offset by an increase in lease operating expenses ($0.34 vs. $0.29 per Mcfe). Net interest expense increased to $2.8 million in the first quarter 1999 from $1.0 million in the prior year period as a result of increased borrowings and higher effective interest rates. The Company noted that total interest expense reported for the first quarter 1999 of $2.8 million consisted of $1.1 million of cash interest expense and $1.7 million of non-cash interest expense related to the payment of interest on its senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes through the issuance of additional notes in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. cash and the amortization of deferred financing costs and debt discounts. Capital costs incurred during the first quarter 1999 totaled $11.9 million, including $6.9 million for drilling, $2.1 million for acreage leasing, $1.9 million for seismic activities (principally processing of data acquired during 1998 and the payment of acquisition obligations incurred prior to 1999), and $1.0 million for capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. overhead costs overhead costs see fixed costs. . Offsetting these capital costs incurred, Brigham received $11.5 million in cash proceeds from the sales of interests in certain of its 3-D seismic projects during the first quarter 1999. MANAGEMENT COMMENT Bud Brigham, the Company's Chairman, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and President, stated, "Late in 1998 and early in 1999 our Company embarked on a number of strategic initiatives to improve our profitability and liquidity in the low commodity price environment. Key elements of this strategy include (1) focusing our resources on the drilling of our highest grade prospects among our extensive inventory of 3-D defined locations, (2) significantly reducing our non-drilling capital expenditures, and (3) cost-effectively raising capital to fund our continuing exploration program. As we previously disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). , we have completed several promising natural gas discoveries in our Anadarko Basin The Anadarko Basin is one of the most prolific natural gas reserves in North America, with ultimate gas production in excess of 100 trillion cubic feet of gas.[1] External links
References 1. and Gulf Coast provinces to date in 1999 that are not only expected to add reserves and production, but also further bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz our confidence in our high-graded, ready-to-drill 3-D prospect portfolio. We are also pleased with the progress that we have made thus far in the execution of our capital raising initiatives, including the sale of equity interests in our 3-D projects for $11.5 million and the issuance of $3.5 million of common stock valued at $3.50 per share to extinguish Extinguish Retire or pay off debt. certain seismic acquisition and processing obligations due in 1999. We are continuing to work diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d to accomplish our stated objectives for 1999 and are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that we can continue to access the capital necessary to fund our planned exploration activity." ABOUT BRIGHAM EXPLORATION Brigham Exploration Company ( www.bexp3d.com ) is an independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. domestic natural gas and oil provinces. FORWARD LOOKING STATEMENTS DISCLOSURE Except for the historical information contained herein, the matters discussed in this news release are forward looking statements that are based upon current expectations. Important factors that could cause actual results to differ materially from those in the forward looking statements include risks inherent in exploratory drilling activities, the timing and extent of changes in commodity prices, unforeseen engineering and mechanical or technological difficulties in drilling wells, availability of drilling rigs, land issues, federal and state regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. developments and other risks more fully described in the company's filings with the Securities and Exchange Commission. -0-
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) (unaudited)
Three Months Ended March 31,
---------------------------------
1998 1999
-------------- --------------
Revenues:
Natural gas and oil sales $ 3,143 $ 3,191
Workstation revenue 114 90
-------------- --------------
3,257 3,281
Costs and expenses:
Lease operating 414 535
Production taxes 188 169
General and administrative 1,154 918
Depletion of natural gas and oil
properties 1,270 1,350
Depreciation and amortization 83 127
Amortization of stock compensation 117 58
-------------- --------------
3,226 3,157
-------------- --------------
Operating income 31 124
Interest expense, net (985) (2,793)
-------------- --------------
Net loss before income taxes (954) (2,669)
Income tax benefit 322 -
-------------- --------------
Net loss $ (632) $ (2,669)
============== ==============
Net loss per share:
Basic $ (0.05) $ (0.20)
Diluted $ (0.05) $ (0.20)
Wt. avg. common shares outstanding:
Basic 12,254 13,317
Diluted 12,451 13,319
PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA
(unaudited)
Three Months Ended March 31,
---------------------------------
1998 1999
-------------- --------------
Avg. net daily production:
Natural gas (MMcf) 8.2 11.6
Oil (Bbls) 1,280 978
Equivalent natural gas (MMcfe)(6:1) 15.9 17.5
Total net production:
Natural gas (MMcf) 740 1,047
Oil (MBbls) 115 88
Equivalent natural gas (MMcfe)(6:1) 1,431 1,575
% Natural gas 52% 66%
Sales prices:
Natural gas ($/Mcf)(a) $ 2.05 $ 2.09
Oil ($/Bbl) $14.15 $11.39
Equivalent natural gas ($/Mcfe)(6:1) $ 2.20 $ 2.03
Other financial data:
EBITDA ($000) $1,501 $1,659
Operating cash flow ($000)(b) $ 622 $ 520
Operating cash flow per diluted
share(b) $ 0.05 $ 0.04
(a) Includes the effects of natural gas hedging gains of $559,220, or
$0.53 per Mcf, in the three months ended March 31, 1999.
(b) Net income (loss) plus DD&A expenses, deferred income taxes and
other non-cash items.
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands) (unaudited)
December 31, March 31,
1998 1999
-------------- --------------
Assets:
Current assets $ 10,797 $ 11,874
Natural gas and oil properties,
at cost, net 134,317 133,283
Other property and equipment,
at cost, net 2,014 1,953
Other non-current assets 3,388 4,123
-------------- --------------
Total assets $ 150,516 $ 151,233
============== ==============
Liabilities and stockholders' equity:
Current liabilities $ 23,513 $ 23,838
Notes payable 59,000 59,000
Senior subordinated notes, net 35,786 36,699
Other non-current liabilities 7,536 5,573
-------------- --------------
Total liabilities 125,835 125,110
Stockholders' equity 24,681 26,123
-------------- --------------
Total liabilities and stockholders'
equity $ 150,516 $ 151,233
============== ==============
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
Three Months Ended March 31,
---------------------------------
1998 1999
-------------- --------------
Cash flows from operating activities:
Net loss $ (632) $ (2,669)
Depletion, depreciation and
amortization 1,353 1,477
Interest paid through the issuance of
additional senior subordinated notes - 1,300
Amortization of deferred stock
compensation 117 58
Amortization of deferred loan fees 106 262
Amortization of discount on senior
subordinated notes - 92
Changes in deferred income tax
liability (322) -
-------------- --------------
Operating cash flow 622 520
Changes in working capital and other
items (3,418) 3,844
-------------- --------------
Cash flows (used) provided by
operating activities (2,796) 4,364
Cash flows (used) provided by
investing activities (13,136) 446
Cash flows (used) provided by
financing activities 16,031 (361)
-------------- --------------
Net increase in cash and cash
equivalents $ 99 $ 4,449
============== ==============
SUMMARY PER MCFE DATA
(unaudited)
Three Months Ended March 31,
---------------------------------
1998 1999
-------------- --------------
Revenues:
Natural gas and oil sales $ 2.20 $ 2.03
Workstation revenue 0.08 0.06
-------------- --------------
2.28 2.09
Costs and expenses:
Lease operating 0.29 0.34
Production taxes 0.13 0.11
General and administrative 0.81 0.58
Depletion of natural gas and oil
properties 0.89 0.86
Depreciation and amortization 0.06 0.08
Amortization of stock compensation 0.08 0.04
-------------- --------------
2.26 2.01
-------------- --------------
Operating income $ 0.02 $ 0.08
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