Brigham Exploration Reports Second Quarter 2000 Financial Results.Business Editors & 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)--Aug. 3, 2000 Brigham Brigham may refer to the following: Place:
Significant highlights of Brigham's financial performance during the second quarter include: -- Net equivalent production volumes increased 25% relative to the second quarter of 1999, after adjusting for the sale of producing reserves in mid- mid- pref. Middle: midbrain. 1999; -- Accelerating production volume growth leading into the third quarter -- June 2000 average production rate of 21 MMcfe MMcfe Millions of Cubic Feet Equivalent (Per Day; gas exploration) per day, a 45% increase over April 2000; -- Higher realized oil prices contributed to production revenue growth of 30% in the current year quarter despite significant 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. losses and the mid-1999 producing property sales; and -- Year-over-year cash flow growth -- 32% 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 due to reduced unit operating costs operating costs npl → gastos mpl operacionales and improved realized sales prices. Second Quarter 2000 Results Average net daily production volumes for the second quarter 2000 were 17.6 million cubic feet of equivalent natural gas (MMcfe), or an increase of 2% over volumes produced during the first quarter 2000. Excluding net production attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to properties sold in June 1999, Brigham's average net daily production would have been 14.1 MMcfe for the second quarter 1999, resulting in comparable year-over-year production growth of 25% over those adjusted volumes. Although production was relatively flat to first quarter 2000 volumes, several recently announced discoveries in the 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 Texas Gulf Coast should contribute a full quarter of production beginning in the third quarter of this year. In addition, the currently completing Palmer palmer: see pilgrim. State No. 3 well at Home Run Field and the Dinn No. 2 well in Brigham's Caliente Caliente means "hot" in Spanish in regards to temperature and sometimes with a sexual connotation. The word may refer to:
adj. 1. Almost exact or correct: the approximate time of the accident. 2. 21 MMcfe per day in June and currently expects net production volumes to reach 25 MMcfe per day by September September: see month. . Natural gas and oil sales for the second quarter of 2000 were $4.6 million, a 30% increase from the same period last year as significantly improved realized oil prices ($28.71 vs. $16.24 per Bbl) more than offset lower realized natural gas prices ($1.98 vs. $2.07 per Mcf) on relatively flat production volumes. Realized natural gas prices during the second quarter of 2000 were negatively impacted by losses on natural gas hedging transactions totaling $1.7 million ($1.66 per Mcf), as compared with natural gas hedging gains of $7,000 ($0.01 per Mcf) in the prior year period. Brigham has fixed price natural gas swap hedges covering a total of 15,000 MMBtu (or approximately 13.6 MMcf) per day at an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. average NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). price of $2.19 per MMBtu from July July: see month. 2000 through April 2001. 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 32% to $2.6 million in the second quarter of 2000 from $2.0 million in the second quarter of 1999, and decreased 19% from $3.2 million in the first quarter of 2000. The decrease in EBITDA in the second quarter relative to the first quarter 2000 was primarily attributable to an increase in monthly settlements related to a crude oil hedging contract on 600 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. at a fixed NYMEX swap price of $22.00 per barrel barrel: see English units of measurement. . Settlements under this contract were accounted for as other expense rather than as a reduction in revenues on the income statement. This crude oil hedging contract expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. in June and will therefore have no impact on future financial performance. Brigham has a crude oil collar Collar 1. A protective options strategy that is implemented after a long position in a stock has experienced substantial gains. It is created by purchasing an out of the money put option while simultaneously writing an out of the money call option. 2. hedging contract on 600 barrels per day from July 2000 through December December: see month. 2000 with a NYMEX price cap of $31.75 per barrel and a NYMEX price floor of $18.00 per barrel. 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 second quarter of 2000 was $1.6 million ($0.10 per share), an increase from $1.4 million ($0.10 per share) for the same period in 1999. Despite this improvement in cash flow, Brigham reported a net loss of $4.3 million ($0.26 per share) for the second quarter of 2000 compared to a net loss of $14.8 million ($1.04 per share) for the prior year period. The net loss in the current year period was primarily the result of (i) $1.9 million in non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) related to the change in fair market value of certain outstanding oil and natural gas hedging contracts, (ii) higher net interest expenses ($3.0 million vs. $2.4 million), (iii) $2.2 million in aggregate cash settlements on natural gas and oil hedging contracts, and (iv) an increase in depletion of natural gas and oil properties ($1.8 million vs. $1.5 million). The net loss in the prior year period included a $12.2 million ($0.85 per share) non-cash loss on the sale of oil and natural gas properties completed in June 1999. 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 second quarter of 2000 were $502,000 ($0.32 per Mcfe), or 19% lower than the second quarter of 1999. Also lower in the current year quarter, net general and administrative expenses were $708,000 ($0.45 per Mcfe), or a 21% reduction from the second quarter of 1999 and a 4% reduction from the first quarter of 2000. Net capital expenditures incurred in exploration and development operations during the second quarter of 2000 totaled $7.5 million, including $3.7 million for drilling projects, $1.8 million 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
Contraction of we have. we've have been frustrated frus·trate tr.v. frus·trat·ed, frus·trat·ing, frus·trates 1. a. To prevent from accomplishing a purpose or fulfilling a desire; thwart: by the delays in adding production from a few of our recent discoveries, this additional production should be flowing to sales early in the third quarter. "Fortunately, we have added new production volumes from our 2000 drilling program and ended the quarter on a strong note by achieving an average net production rate of 21 MMcfe per day in June. Wells currently completing should further increase our volumes to 25 MMcfe per day by September, and an exciting inventory of drilling projects scheduled for the third quarter should further contribute to production volume growth during the remainder of 2000." Harrell further stated, "With our current and expected third quarter production volume growth, we are now positioned to benefit from improved natural gas prices for the first time in 2000. Higher price realizations, growing production volumes and a lower cost structure should all contribute to improved financial performance in the third quarter of 2000." Conference Call Information Management will host a conference call to discuss Brigham's financial and operational results for the second quarter 2000 with investors, analysts and other interested parties on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , Aug. 4, at 9:00 a.m. Central time. To participate in the call, please dial 800/675-9347 and ask for the Brigham Exploration conference call (conference identification number 15787752). A replay of the conference call will be available to interested parties at www.streetevents.com through 5:00 p.m. Central time on Friday, Aug. 11. 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 Six Months Ended
June 30, June 30,
------------------ ------------------
1999 2000 1999 2000
------------------ ------------------
Revenues:
Natural gas and oil sales $ 3,553 $ 4,635 $ 6,744 $ 9,140
Workstation revenue 71 16 161 49
-------- -------- -------- --------
3,624 4,651 6,905 9,189
Costs and expenses:
Lease operating 619 502 1,154 961
Production taxes 216 395 385 699
General and administrative 891 708 1,809 1,448
Depletion of natural gas
and oil properties 1,514 1,820 2,875 3,584
Depreciation and
amortization 139 124 266 247
Amortization of stock
compensation 55 24 113 36
-------- -------- -------- --------
3,434 3,573 6,602 6,975
-------- -------- -------- --------
Operating income 190 1,078 303 2,214
Interest expense, net (2,377) (3,031) (4,458) (5,806)
Interest income 70 19 94 56
Loss on sale of natural gas
and oil properties (12,195) -- (12,195) --
Other expense (a) (527) (2,394) (527) (2,990)
-------- -------- -------- --------
Net loss before
income taxes (14,839) (4,328) (16,783) (6,526)
Income tax expense -- -- -- --
-------- -------- -------- --------
Net loss $(14,839) $ (4,328) $(16,783) $ (6,526)
======== ======== ======== ========
Net loss per share:
Basic / Diluted $ (1.04) $ (0.26) $ (1.21) $ (0.41)
Wt. avg. common shares
outstanding:
Basic / Diluted 14,309 16,713 13,816 15,996
(a) Includes non-cash expenses related to changes in the fair market
value of certain hedging contracts of $529,000 and $1.9 million in
the first quarter 1999 and 2000, respectively, and $529,000 and
$2.4 million in the first six months 1999 and 2000, respectively.
PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
1999 2000 1999 2000
---------------- ----------------
Avg. net daily production:
Natural gas (MMcf) 11.2 11.6 11.4 11.0
Oil (Bbls) 1,005 992 992 1,046
Equivalent natural gas
(MMcfe) (6:1) 17.2 17.6 17.4 17.3
Total net production:
Natural gas (MMcf) 1,005 1,047 2,053 1,987
Oil (MBbls) 90 89 178 188
Equivalent natural gas
(MMcfe) (6:1) 1,548 1,582 3,123 3,116
% Natural gas 65% 66% 66% 64%
Sales prices:
Natural gas ($/Mcf) (a) $ 2.07 $ 1.98 $ 2.08 $ 1.96
Oil ($/Bbl) (a) $16.24 $28.71 $13.85 $27.89
Equivalent natural gas
($/Mcfe) (6:1) $ 2.30 $ 2.93 $ 2.16 $ 2.93
Other financial data:
EBITDA ($000) (b) $1,970 $2,595 $3,653 $5,794
Operating cash flow
($000) (c) $1,437 $1,625 $2,693 $4,097
Operating cash flow
per share (c) $ 0.10 $ 0.10 $ 0.19 $ 0.26
(a) Includes the effects of
hedging gains (losses) of:
Natural gas ($/Mcf) $0.01 ($1.66) $0.28 ($1.13)
Oil ($/Bbl) $0.00 $0.00 $0.00 ($0.01)
(b) Net income (loss) plus interest expense, DD&A expenses, deferred
income taxes and other non-cash items.
(c) 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, June 30,
1999 2000
--------- --------
Assets:
Current assets $ 8,264 $ 7,308
Natural gas and oil properties,
at cost, net 112,066 120,320
Other property and equipment,
at cost, net 1,686 1,487
Other non-current assets 3,667 3,543
-------- --------
Total assets $125,683 $132,658
======== ========
Liabilities and stockholders' equity:
Current liabilities $ 17,744 $ 10,706
Notes payable 56,000 65,000
Senior subordinated notes, net 41,341 44,437
Other non-current liabilities 1,600 5,523
-------- --------
Total liabilities 116,685 125,666
Stockholders' equity 8,998 6,992
-------- --------
Total liabilities and stockholders' equity $125,683 $132,658
======== ========
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ------------------
1999 2000 1999 2000
-------------------- ------------------
Cash flows from operating
activities:
Net loss $(14,839) $ (4,328) $(16,783) $ (6,526)
Depletion, depreciation
and amortization 1,653 1,944 3,141 3,831
Interest paid through
issuance of add'l
senior sub. notes 1,342 1,526 2,642 3,003
Amortization of deferred
stock compensation 55 24 113 36
Amortization of deferred
loan fees 366 298 628 689
Amortization of discount
on senior subordinated
notes 136 237 228 417
Amortization of deferred
loss on derivatives
instruments -- -- -- 280
Market value adjustment
for derivatives
instruments 529 1,924 529 2,367
Loss on sale of natural
gas and oil properties 12,195 -- 12,195 --
Changes in deferred
income tax liability -- -- -- --
-------- -------- -------- --------
Operating cash flow 1,437 1,625 2,693 4,097
Changes in working
capital and other items (5,465) (2,420) (2,357) (7,864)
-------- -------- -------- --------
Cash flows provided
(used) by operating
activities (4,028) (795) 336 (3,767)
Cash flows (used) provided
by investing activities 10,759 (7,519) 11,205 (11,676)
Cash flows (used) provided
by financing activities (10,997) 6,728 (11,358) 12,774
-------- -------- -------- --------
Net increase (decrease) in
cash and cash equivalents $ (4,266) $ (1,586) $ 183 $ (2,669)
======== ======== ======== ========
SUMMARY PER MCFE DATA
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
1999 2000 1999 2000
------------------- -------------------
Revenues:
Natural gas and oil sales $ 2.29 $ 2.93 $ 2.16 $ 2.93
Workstation revenue 0.05 0.01 0.05 0.02
-------- -------- -------- --------
2.34 2.94 2.21 2.95
Costs and expenses:
Lease operating 0.40 0.32 0.37 0.31
Production taxes 0.14 0.25 0.12 0.22
General and
administrative 0.58 0.45 0.58 0.46
Depletion of natural gas
and oil properties 0.98 1.15 0.92 1.15
Depreciation and
amortization 0.09 0.08 0.09 0.08
Amortization of stock
compensation 0.04 0.02 0.04 0.01
-------- -------- -------- --------
2.23 2.27 2.12 2.23
-------- -------- -------- --------
Operating income $ 0.11 $ 0.67 $ 0.09 $ 0.72
======== ======== ======== ========
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