Carbon Energy Corporation Reports Financial and Operating Results for the Third Quarter of 2001 and the Nine Months Ending September 30, 2001.Business Editors DENVER--(BUSINESS WIRE)--Nov. 15, 2001 Carbon Energy Corporation (AMEX AMEX See: American Stock Exchange :CRB CRB See: Commodity Research Bureau. ): For the third quarter of 2001, Carbon Energy reported a net loss of $304,000 or $.05 per share (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. ) on revenues from oil and gas sales of $4.7 million, compared to net income of $172,000 or $.03 per share (diluted) on revenue from oil and gas sales of $4.4 million for the third quarter of 2000. The net loss for the third quarter of 2001 includes a $625,000 impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. for an outstanding account receivable account receivable Any amount owed to a business as the result of a purchase of goods or services from it on a credit basis. Although the firm making the sale receives no written promise of payment, it enters the amount due as a current asset in its books. from a purchaser of the Company's gas production, resulting in a net after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge to net income of $391,000. Without the charge, net income would have been $87,000 or $.01 per share. Net cash provided by operations was $3.2 million for the third quarter of 2001, compared to $1.4 million for the third quarter of 2000. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
For the nine months ended September September: see month. 30, 2001, Carbon Energy reported net income of $2.0 million or $.32 per share (diluted) on revenues from oil and gas sales of $19.9 million. Net income before the cumulative effect of a change in accounting principle was $3.5 million or $.56 per share (diluted). For the nine months ended September 30, 2000, net income was $520,000 or $.09 per share (diluted) on revenue from oil and gas sales of $11.4 million. Net cash provided by operations for the nine months ended September 30, 2001, was $10.7 million, compared to $1.1 million for the nine months ended September 30, 2000. EBITDA for the period was $9.5 million or $1.51 per share (diluted), compared to $5.6 million or $.97 per share (diluted) for the nine months ended September 30, 2000. United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Operations For the third quarter of 2001, natural gas production from the Company's U.S. subsidiary, Bonneville Fuels Corporation, decreased by 20% to an average of 7.9 million cubic feet (MMcf) of gas per day, compared to 9.9 MMcf of gas per day for the third quarter of 2000. The average realized natural gas price was $2.01 per thousand cubic feet (Mcf) for the third quarter of 2001, compared to $2.59 per Mcf for the similar period in 2000. U.S. oil and liquids production increased by 18% to an average of 227 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. for the third quarter of 2001, compared to an average of 192 barrels per day for the third quarter of 2000. Carbon's average realized oil and liquids price was $25.62 per barrel for the third quarter of 2001, compared to $23.83 for the similar period in 2000. In January January: see month. 2001 the Company sold its San Juan Basin The San Juan Basin is a drainage basin and geologic structural basin in the Four Corners region of the Southwestern United States; its main portion covers around 4,600 square miles, encompassing much of northwestern New Mexico, northeastern Arizona, and parts of Colorado and Utah. producing gas property. The sale accounted for substantially all of the decrease in U.S. natural gas production, compared to the third quarter of 2000. Production increases in the Piceance Basin The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. of Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. and Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. of New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). offset natural production declines in all operating areas. The increase in oil production for the third quarter of 2001 was due to successful drilling activities conducted in the Permian Basin during 2001, partially offset by natural production declines. For the nine months ended September 30, 2001, natural gas production for Bonneville Fuels Corporation decreased by 21% to an average of 7.3 MMcf of gas per day, compared to 9.2 MMcf of gas per day for the nine months ended September 30, 2000. The average realized natural gas price was $3.30 per Mcf for the nine months ended September 30, 2001, compared to $2.47 per Mcf for the similar period in 2000. U.S. oil and liquids production increased by 21% to an average of 227 barrels per day for the nine months ended September 30, 2001, compared to an average of 187 barrels per day for the nine months ended September 30, 2000. Carbon's average realized oil and liquids price was $27.10 per barrel for the nine months ended September 30, 2001, compared to $24.06 for the similar period in 2000. In January 2001 the Company sold its San Juan Basin producing gas property. The sale accounted for substantially all of the decrease in U.S. natural gas production, compared to the nine months ended September 30, 2000. Production increases in the Piceance and Permian Basins offset natural production declines in all operating areas. The increase in oil production for the nine months ended September 30, 2001, was due to successful drilling activities conducted in the Permian Basin during 2001, partially offset by natural production declines. Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Operations For the third quarter of 2001, natural gas production from the Company's Canadian subsidiary, CEC (Central Electronic Complex) The set of hardware that defines a mainframe, which includes the CPU(s), memory, channels, controllers and power supplies included in the box. Some CECs, such as IBM's Multiprise 2000 and 3000, include data storage devices as well. Resources, Ltd., increased by 69% to an average of 8.3 MMcf of gas per day, compared to 4.9 MMcf of gas per day for the third quarter of 2000. The average realized natural gas price was $3.03 per Mcf for the third quarter of 2001, compared to $2.89 per Mcf for the third quarter of 2000. Canadian oil and liquids production increased by 15% to an average of 224 barrels per day for the third quarter of 2001, compared to an average of 195 barrels per day for the third quarter of 2000. Carbon's average realized oil and liquids price was $19.37 per barrel for the third quarter of 2001, compared to $16.25 per barrel for the similar period in 2000. The increase in Canadian natural gas, oil and liquids production for the third quarter of 2001 was due to successful drilling and recompletion activities in the Carbon and Rowley Rowley may refer to geographical places:
Central Alberta is the most densely populated rural area in the province. Agriculture and energy make up an important part of the economy. . For the first nine months ended September 30, 2001, natural gas production from the Company's Canadian subsidiary, CEC Resources, Ltd., increased by 72% to an average of 8.6 MMcf of gas per day, compared to 5.0 MMcf of gas per day for the nine months ended September 30, 2000. The average realized natural gas price was $4.28 per Mcf for the nine months ended September 30, 2001, compared to $2.61 per Mcf for the nine months ended September 30, 2000. Canadian oil and liquids production increased by 28% to an average of 231 barrels per day for the nine months ended September 30, 2001, compared to an average of 180 barrels per day for the nine months ended September 30, 2000. Carbon's average realized oil and liquids price was $23.33 per barrel for the nine months ended September 30, 2001, compared to $20.44 per barrel for the similar period in 2000. The increase in Canadian natural gas, oil and liquids production for the first nine months of 2001 was due to successful drilling and recompletion activities in the Carbon and Rowley areas. Exploration and Production Operations Carbon's United States exploration and production operations are comprised of working interests in 252 producing oil and gas wells, of which 145 are operated by Carbon. Carbon has an interest in approximately 164,000 net acres of oil and gas leases located in the Piceance Basin of Colorado, the Uintah Basin The Uintah Basin is a geologic structural basin in eastern Utah, east of the Wasatch Mountains and south of the Uinta Mountains. The Uintas are one of the few major mountain ranges in the United States oriented from east to west, rather than north to south. of Utah, the Permian Basin of New Mexico and Texas and Southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
Kansas (kăn`zəs), midwestern state occupying the center of the coterminous United States. It is bordered by Missouri (E), Oklahoma (S), Colorado (W), and Nebraska (N). . Carbon's Canadian unit, CEC Resources, Ltd., owns working interests in 71 producing oil and natural gas wells located in Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. and Saskatchewan Saskatchewan, province, Canada Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. , of which 37 are operated by CEC. CEC has an interest in approximately 31,000 net acres of oil and gas leases. Carbon's focus is on the development of its extensive natural gas properties in the Rocky Mountain region The Rocky Mountain Region is a floristic region within the Holarctic Kingdom in western North America (Canada and the United States) delineated by Armen Takhtajan and Robert F. Thorne. of the United States and in Central Alberta, with emphasis on the Piceance and Uintah Basins and the Carbon and Rowley areas of Alberta. Comparisons of 2001 results with 2000 results for Carbon's U.S. and Canadian operations are for Bonneville Fuels Corporation and CEC Resources, Ltd., respectively. The Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statement of Operations See Income statement. for Carbon for the nine months ended September 30, 2000, includes activities of CEC Resources, Ltd. subsequent to February February: see month. 18, 2000. The operating data for CEC Resources for the nine months ended September 30, 2000, is a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma presentation, as if the acquisition of CEC Resources occurred on January 1, 2000. This press 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. " within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect the Company's operations, financial performance and other factors as discussed in the Company's filings with the Securities and Exchange Commission. Among the factors that could cause results to differ materially are those risks discussed in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2000.
CARBON ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per-share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2001 2000 2001 2000
---- ---- ---- ----
(unaudited)
Revenues:
Oil and gas sales $ 4,696 $ 4,384 $19,815 $11,413
Marketing and other, net (395) (21) 857 86
------ ------ ------ ------
4,301 4,363 20,672 11,499
Expenses:
Oil and gas production
costs 1,859 1,578 6,240 3,826
Depreciation, depletion
and amortization 1,564 1,517 4,400 4,034
General and adminis-
trative, net 1,051 748 3,365 2,054
Interest, net 195 323 605 783
------ ------ ------ ------
Total operating
expenses 4,669 4,166 14,610 10,697
Minority interest 1 4 26 11
------ ------ ------ ------
Income (loss) before income
taxes (369) 193 6,036 791
Income tax provision (benefit):
Current 184 75 1,672 240
Deferred (249) (54) 838 31
------ ------ ------ ------
Total taxes (65) 21 2,510 271
------ ------ ------ ------
Net income (loss) before
cumulative effect of
change in accounting
principle (304) 172 3,526 520
Cumulative effect of change
in accounting principle,
net of tax - - (1,510) -
------ ------ ------ ------
Net income (loss) $ (304) $ 172 $ 2,016 $ 520
====== ====== ====== ======
Average number of common
shares outstanding:
Basic 6,070 6,015 6,048 5,755
Diluted 6,070 6,075 6,291 5,801
Earnings (loss) per share
-- basic:
Net income (loss) before
cumulative effect of
change in accounting
principle $ (0.05) $ 0.03 $ 0.58 $ 0.09
Cumulative effect of
change in accounting
principle, net of tax - - (0.25) -
------ ------ ------ ------
$ (0.05) $ 0.03 $ 0.33 $ 0.09
====== ====== ====== ======
Earnings (loss) per share
-- diluted:
Net income (loss) before
cumulative effect of
change in accounting
principle $ (0.05) $ 0.03 $ 0.56 $ 0.09
Cumulative effect of
change in accounting
principle, net of tax - - (0.24) -
------ ------ ------ ------
$ (0.05) $ 0.03 $ 0.32 $ 0.09
====== ====== ====== ======
Earnings before interest,
taxes and dd&a
(EBITDA) $ 1,390 $ 2,033 $ 9,531 $ 5,608
Net cash provided by
operating activities $ 3,198 $ 1,429 $10,683 $ 1,085
CARBON ENERGY CORPORATION
OPERATING DATA
(dollars in thousands, except average price received)
United States Canada (1) Total
Three Months Three Months Three Months
Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30,
------------ ------------ ------------
2001 2000 2001 2000 2001 2000
---- ---- ---- ---- ---- ----
Daily Sales Volumes
Natural gas (MMcf) 7.9 9.9 8.3 4.9 16.2 14.8
Oil and liquids (Bbl) 227 192 224 195 451 387
Equivalent production
(Mmcfe)(6:1) 9.2 11.1 9.6 6.1 18.8 17.2
Revenues ($M)
Oil and gas
revenues $1,985 $2,785 $2,711 $1,599 $4,696 $4,384
Marketing and other,
net (395) 50 - (71) (395) (21)
----- ----- ----- ----- ----- -----
Total revenues $1,590 $2,835 $2,711 $1,528 $4,301 $4,363
Prices
Natural gas ($/Mcf) $ 2.01 $ 2.59 $ 3.03 $ 2.89 $ 2.53 $ 2.69
Oil and liquids
($/Bbl) $25.62 $23.83 $19.37 $16.25 $22.52 $20.01
Drilling activity
Gross 9.0 6.0 2.0 - 11.0 6.0
Net 6.9 1.1 2.0 - 8.9 1.1
United States Canada (1)(2) Total
Nine Months Nine Months Nine Months
Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30,
------------- ------------- ------------
2001 2000 2001 2000 2001 2000
---- ---- ---- ---- ---- ----
Daily Sales Volumes
Natural gas (MMcf) 7.3 9.2 8.6 5.0 15.9 14.2
Oil and liquids (Bbl) 227 187 231 180 458 367
Equivalent production
(Mmcfe)(6:1) 8.7 10.3 10.0 6.1 18.7 16.4
Revenues ($M)
Oil and gas revenues $8,255 $7,464 $11,560 $4,599 $19,815 $12,063
Marketing and other,
net 857 157 - (71) 857 86
----- ----- ----- ----- ----- -----
Total revenues $9,112 $7,621 $11,560 $4,528 $20,672 $12,149
Prices
Natural gas ($/Mcf) $ 3.30 $ 2.47 $ 4.28 $ 2.61 $ 3.83 $ 2.52
Oil and liquids
($/Bbl) $27.10 $24.06 $23.33 $20.44 $25.20 $22.29
Drilling activity
Gross 24.0 14.0 7.0 - 31.0 14.0
Net 14.8 6.8 7.0 - 21.8 6.8
(1) Sales volumes for Canadian operations are presented net before
royalty interests.
(2) Pro forma presentation, as if the acquisition of CEC Resources
occurred on January 1, 2000.
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