Brigham Exploration Reports First Quarter 2000 Financial Results.Business Editors and Energy Writers 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 15, 2000 Brigham Brigham may refer to the following: Place:
Significant highlights of Brigham's financial performance during the first quarter include: -- Net equivalent production volumes increased 20% relative to the first quarter of 1999, after adjusting for the sale of producing reserves completed in mid- mid- pref. Middle: midbrain. 1999; -- Higher realized oil and gas sales prices contributed to production revenue growth of 41% in the current year quarter despite the mid-1999 producing property sales; and -- Year-over-year cash flow growth -- 90% higher 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 and 97% higher 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. -- due to improved realized sales prices and reduced unit operating costs operating costs npl → gastos mpl operacionales . FIRST QUARTER 2000 RESULTS Average net daily production volumes for the first quarter 2000 were 17 million cubic feet of equivalent natural gas (MMcfe MMcfe Millions of Cubic Feet Equivalent (Per Day; gas exploration) ), or an increase of 4% over volumes produced during the fourth quarter 1999. Excluding net production attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to properties sold in June June: see month. 1999, Brigham's average net daily production would have been 14.2 MMcfe for the first quarter 1999, resulting in comparable year-over-year production growth of 20% over those adjusted volumes. Drilling discoveries made late in 1999 are not expected to contribute a full quarter of production until the second quarter of 2000 and drilling success thus far this year will not contribute fully until the third quarter of 2000. The currently producing Palmer palmer: see pilgrim. State No. 2 well in the Home Run Field in Brooks County, Texas Brooks County is a county located in the U.S. state of Texas. As of 2000, the population is 7,976. Its county seat is Falfurrias6. Brooks is named for James Abijah Brooks, a Texas Ranger and legislator. Geography According to the U.S. , began flowing to sales from four commingled Lower Vicksburg Vicksburg, city (1990 pop. 20,908), seat of Warren co., W Miss., on bluffs above the Mississippi River at the mouth of the Yazoo; inc. 1825. An important port, it is the commercial, processing, and shipping center for a cotton, timber, and livestock area. intervals in late February February: see month. and is currently producing approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 9 MMcfe per day, or 2.6 MMcfe net to Brigham. Brigham's recently announced Springer springer a North American term commonly used to describe heifers close to term with their first calf. discovery in its 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. province began flowing to sales in early May at a rate of 4.9 MMcfe per day (2.7 MMcfe net) and is expected to be increased to over 7 MMcfe per day (3.9 MMcfe net) once pipeline capacity is increased. Lastly, the first development well to Brigham's late 1999 Home Run Field discovery, the Palmer State No. 3, is currently completing with commingled production from multiple Lower Vicksburg intervals expected some time in June. Natural gas and oil sales for the first quarter of 2000 were $4.5 million, or a 41% increase from the same period last year as significantly improved realized oil prices ($27.16 vs. $11.39 per Bbl) and 12% higher oil production offset lower realized natural gas prices ($1.93 vs. $2.09 per Mcf) and 10% lower natural gas production. Realized natural gas prices during the first quarter of 2000 were negatively impacted by losses on 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. transactions totaling $514,000, or $0.55 per Mcf, as compared with natural gas hedging gains of $559,000, or $0.53 per Mcf, in the prior 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) increased 90% to $3.2 million in the first quarter of 2000 from $1.7 million in the first quarter of 1999, while operating cash flow for the first quarter of 2000 was $2.5 million ($0.16 per share), an increase from $1.3 million ($0.09 per share) for the same period in 1999. Despite these significant improvements in cash flow, Brigham reported a net loss of $2.2 million ($0.14 per share) for the first quarter of 2000 compared to a net loss of $1.9 million ($0.15 per share) for the prior year period. The increased net loss in the current year period was primarily the result of: (i) higher net interest expenses, (ii) an increase in depletion of natural gas and oil properties, and (iii) expenses related to the change in fair market value of certain outstanding oil and natural gas hedging contracts. Lease 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. for the first quarter of 2000 were $459,000 ($0.30 per Mcfe), or 14% lower than the first quarter of 1999 and 21% lower than the fourth quarter of 1999. Also lower in the current year quarter, net general and administrative expenses were $740,000 ($0.48 per Mcfe) in the first quarter of 2000, or a 19% reduction from the first quarter of 1999 and a 4% reduction from the fourth quarter of 1999. Net capital expenditures incurred in exploration and development operations during the first quarter of 2000 totaled $4.4 million, including $2.7 million for drilling projects, $314,000 for land and G&G activities and $1.5 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. G&A and interest expenses. MANAGEMENT COMMENT Curtis Harrell Harrell can refer to: People
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 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. 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. The Company's actual capital expenditures in 2000 may differ from the estimates discussed herein. 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, availability of sufficient capital resources by the Company and its project participants, 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.
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) (unaudited)
Three Months Ended March 31,
----------------------------
1999 2000
---------- ----------
Revenues:
Natural gas and oil sales $3,191 $4,505
Workstation revenue 90 33
---------- ----------
3,281 4,538
Costs and expenses:
Lease operating 535 459
Production taxes 169 304
General and administrative 918 740
Depletion of natural gas and oil
properties 1,361 1,764
Depreciation and amortization 127 123
Amortization of stock compensation 58 12
---------- ----------
3,168 3,402
---------- ----------
Operating income 113 1,136
Interest expense, net (2,081) (2,775)
Interest income 24 37
Other expense (a) -- (596)
---------- ----------
Net loss before income taxes (1,944) (2,198)
Income tax expense -- --
---------- ----------
Net loss $(1,944) $(2,198)
========== ==========
Net loss per share:
Basic / Diluted $(0.15) $(0.14)
Wt. avg. common shares outstanding:
Basic / Diluted 13,317 15,279
(a) Includes $443,000 of non-cash expenses related to changes in the
fair market value of certain hedging contracts in the first
quarter 2000.
PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA
(unaudited)
Three Months Ended March 31,
----------------------------
1999 2000
---------- ----------
Avg. net daily production:
Natural gas (MMcf) 11.6 10.4
Oil (Bbls) 978 1,100
Equivalent natural gas
(MMcfe) (6:1) 17.5 17.0
Total net production:
Natural gas (MMcf) 1,047 940
Oil (MBbls) 88 99
Equivalent natural gas
(MMcfe) (6:1) 1,575 1,534
% Natural gas 66% 61%
Sales prices:
Natural gas ($/Mcf) (a) $2.09 $1.93
Oil ($/Bbl) (b) $11.39 $27.16
Equivalent natural gas
($/Mcfe) (6:1) $2.03 $2.94
Other financial data:
EBITDA ($000) (c) $1,683 $3,199
Operating cash flow ($000) (d) $1,256 $2,472
Operating cash flow per share (d) $0.09 $0.16
(a) Includes the effects of natural gas hedging gains of $559,000
($0.53 per Mcf) in the first quarter 1999, and losses of $514,000
($0.55 per Mcf) in the first quarter 2000.
(b) Includes the effects of oil hedging losses of $2,000 ($0.02 per
Bbl) in the first quarter 2000.
(c) Net income (loss) plus interest expense, DD&A expenses, deferred
income taxes and other non-cash items.
(d) 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)
Dec. 31, March 31,
1999 2000
---------- ----------
Assets:
Current assets $8,264 $7,212
Natural gas and oil properties,
at cost, net 112,066 114,675
Other property and equipment,
at cost, net 1,686 1,572
Other non-current assets 3,667 4,002
---------- ----------
Total assets $125,683 $127,461
========== ==========
Liabilities and stockholders' equity:
Current liabilities $17,744 $13,532
Notes payable 56,000 58,000
Senior subordinated notes, net 41,341 42,898
Other non-current liabilities 1,600 1,741
---------- ----------
Total liabilities 116,685 16,171
Stockholders' equity 8,998 11,290
---------- ----------
Total liabilities and stockholders'
equity $125,683 $127,461
========== ==========
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
Three Months Ended March 31,
----------------------------
1999 2000
---------- ----------
Cash flows from operating activities:
Net loss $(1,944) $(2,198)
Depletion, depreciation and
amortization 1,488 1,887
Interest paid through issuance of
add'l senior sub. notes 1,300 1,477
Amortization of deferred stock
compensation 58 12
Amortization of deferred loan fees 262 391
Amortization of discount on senior
subordinated notes 92 180
Amortization of deferred loss on
derivatives instruments -- 280
Market value adjustment for
derivatives instruments -- 443
Changes in deferred income tax
liability -- --
---------- ----------
Operating cash flow 1,256 2,472
Changes in working capital and
other items 3,844 (5,444)
---------- ----------
Cash flows provided (used) by operating
activities 5,100 (2,972)
Cash flows (used) provided by investing
activities (290) (4,157)
Cash flows (used) provided by financing
activities (361) 6,046
---------- ----------
Net increase (decrease) in cash and
cash equivalents $4,449 $(1,083)
========== ==========
SUMMARY PER MCFE DATA
(unaudited)
Three Months Ended March 31,
----------------------------
1999 2000
---------- ----------
Revenues:
Natural gas and oil sales $2.03 $2.94
Workstation revenue 0.06 0.02
---------- ----------
2.09 2.96
Costs and expenses:
Lease operating 0.34 0.30
Production taxes 0.11 0.20
General and administrative 0.58 0.48
Depletion of natural gas and oil
properties 0.86 1.15
Depreciation and amortization 0.08 0.08
Amortization of stock compensation 0.04 0.01
---------- ----------
2.01 2.22
---------- ----------
Operating income $0.08 $0.74
========== ==========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion