Carbon Energy Corporation Reports Increases in Financial and Operating Results for the First Quarter of 2001; Natural Gas Production of Canadian Unit Increases By 79%.Business Editors DENVER--(BUSINESS WIRE)--May 16, 2001 Carbon Energy Corporation (AMEX AMEX See: American Stock Exchange :CRB CRB See: Commodity Research Bureau. ), announced its financial and operating results for the first quarter ended March 31, 2001. For the first quarter of 2001, Carbon Energy reported net income of $1,016,000, or $.16 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 $8.8 million compared to net income of $230,000, or $.04 per share (diluted), on revenue from oil and gas sales of $3.2 million for the first quarter of 2000. Net cash provided by operations was $4.3 million compared to net cash used in operations of $503,000 in the first 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.
Patrick R. McDonald, President and Chief Executive officer, said: "Carbon's exploration and development drilling programs in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and in the 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. in the fourth quarter of 2000 and first quarter of 2001 have begun to contribute to production volumes and cash flow. During the balance of 2001, Carbon will continue to develop its extensive land holdings and natural gas properties in Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. and Utah and continue the development of the Carbon Field area of Central Alberta Central Alberta (also named Alberta's Heartland) is a region located in the Canadian province of Alberta. Central Alberta is the most densely populated rural area in the province. Agriculture and energy make up an important part of the economy. ." United States Operations Natural gas production from the Company's U.S. subsidiary, Bonneville Fuels Corporation, decreased by 28% to an average of 6.7 million cubic feet (MMcf) of gas per day for the first quarter of 2001 compared to 9.3 MMcf of gas per day for the first quarter of 2000. The average realized natural gas price was $5.24 per thousand cubic feet (Mcf) for the first quarter of 2001 compared to $2.40 per Mcf for the similar period in 2000. U.S. oil and liquids production increased by 32% to an average of 239 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 first quarter of 2001 compared to an average of 179 barrels per day for the first quarter of 2000. Carbon's average realized oil and liquids price was $28.94 per barrel for the first quarter of 2001 compared to $24.86 for the similar period in 2000. In January January: see month. 2001, the Company divested its entire working interests and related leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. rights in the 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. . This accounted for more than 50% of the decrease in U.S. natural gas production compared to 2000. The remainder of the decline is primarily due to natural production declines in all areas. The decrease in natural gas production was partially offset by successful natural gas drilling activity 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, which commenced production in March 2001. The increase in oil production was due to successful drilling activities conducted in the 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). during the fourth quarter of 2000 and the first quarter of 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 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 79% to an average of 8.8 MMcf of gas per day for the first quarter of 2001 compared to 4.9 MMcf of gas per day for the first quarter of 2000. The average realized natural gas price was $5.55 per Mcf for the first quarter of 2001 compared to $2.31 per Mcf for the similar period in 2000. Canadian oil and liquids production increased by 43% to an average of 243 barrels per day for the first quarter of 2001 compared to an average of 168 barrels per day for the first quarter of 2000. Carbon's average realized oil and liquids price was $26.56 per barrel for the first quarter of 2001 compared to $24.01 per barrel for the similar period in 2000. The increase in Canadian natural gas and oil and liquids production was due primarily to successful drilling and recompletion activities in the Carbon and Rowley Rowley may refer to geographical places:
At year end 2000, the net proved oil and natural gas reserves after royalties in the United States and Canada were estimated by independent petroleum engineering firms to be 56.7 billion cubic feet of natural gas equivalent ("Bcfe" where one barrel of oil is equivalent to six thousand cubic feet of gas). Carbon's net proved natural gas reserves totaled 50.9 Bcf of gas compared to 43.6 Bcf at year end 1999, an increase of 7.3 Bcf or 17%. Crude oil and natural gas liquids ("Ngl") at year end 2000 totaled 968,000 barrels compared to 588,000 barrels at year end 1999, an increase of 380,000 barrels or 65%. Proved developed reserves were approximately 83% of the total 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. . At a currency translation rate of $C 1.00 to $US .67, the pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern net present value of Carbon's proved reserves using year end prices and costs held constant discounted at 10% was $US 265 million. Year end 2000 reserve estimates include values for a property which was sold by the Company in January 2001. That property at year end 2000 was estimated to have net proved reserves of 5.6 Bcf of gas, 38,000 barrels of oil and a pretax net present value using year end prices and costs held constant discounted at 10% of $US 24 million. Exploration and Production Operations Carbon's United States exploration and production operations are comprised of working interests in 236 producing oil and gas wells, of which 133 are operated by Carbon. Carbon has an interest in over 162,000 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 the Hugoton Basin of Southwest Kansas Kansas, state, United States 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 70 producing oil and natural gas wells located in Alberta and Saskatchewan, of which 36 are operated by CEC. CEC has an interest in approximately 24,000 net acres of oil and gas leases. Carbon's focus is on the continued 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. Results of operations for Carbon for the three months ended March 31, 2000, include activities of CEC Resources Ltd. subsequent to February 18, 2000. 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 operating data for CEC Resources for the three months ended March 31, 2000, is a proforma Proforma A financial projection based on assumptions. 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 31, 2000.
CARBON ENERGY CORPORATION
Comparative Earnings Statements
(in thousands, except per share data)
Three Months Ended
March 31,
2001 2000 (1)
-------- --------
Revenues:
Oil and gas sales $ 8,794 $ 3,177
Marketing and other, net 687 56
-------- --------
9,481 3,233
Expenses:
Oil and gas production costs 2,546 1,022
Depreciation, depletion and amortization 1,388 1,150
General and administrative expense, net 1,096 551
Interest expense, net 186 195
-------- --------
Total operating expenses 5,216 2,918
Minority interest 22 3
-------- --------
Income before income taxes 4,243 312
Income taxes:
Current 719 58
Deferred 998 24
-------- --------
Total taxes 1,717 82
-------- --------
Net income before cumulative effect of
accounting change 2,526 230
Cumulative effect of accounting change,
net of tax (1,510) -
-------- --------
Net income $ 1,016 $ 230
======== ========
Earnings before interest, taxes, and
dd&a (EBITDA) $ 4,307 $ 1,657
Net cash provided by (used in) operating
activities $ 4,322 $ (503)
Earning per share:
Basic $ 0.17 $ 0.04
Diluted 0.16 0.04
Average shares of common shares outstanding:
Basic 6,026 5,237
Diluted 6,246 5,274
(1) For 2000, the results for the Company include the activities
of CEC Resources subsequent to its acquisition by the Company on
February 18, 2000.
CARBON ENERGY CORPORATION
OPERATING DATA
United States Canada Total
Three Months Three Months Three Months
Ended Ended Ended
March 31, March 31, March 31,
2001 2000 2001 2000 2001 2000
(1)(2)
------ ------- ------- ------- ------- -------
Production (1):
Natural gas production
(MMcf) 607 845 795 445 1,402 1,290
Oil and liquids
production (Bbls) 21,490 16,252 21,914 15,284 43,404 31,536
Equivalent production
(MMcfe) (6:1) 736 943 926 537 1,662 1,480
Daily average production
(MMcf) 6.7 9.3 8.8 4.9 15.5 14.2
Daily average production
(Bbls) 239 179 243 168 482 347
Daily average production
(MMcfe) 8.2 10.4 10.3 5.9 18.5 16.3
Sales:
Natural gas sales
($M) $ 3,179 $ 2,026 $ 4,411 $ 1,030 $ 7,590 $ 3,056
Oil and liquids sales
($M) 622 404 582 367 1,204 771
Prices:
Average gas price
($/Mcf) $ 5.24 $ 2.40 $ 5.55 $ 2.31 $ 5.41 $ 2.37
Average oil and liquids
price ($/Bbl) $ 28.94 $ 24.86 $ 26.56 $ 24.01 $ 27.74 $ 24.45
Wells Drilled:
Gross 9.0 4.0 3.0 0.0 12.0 4.0
Net 5.3 2.6 3.0 0.0 8.3 2.6
(1) Canadian production figures are presented net before royalty
interests.
(2) Proforma presentation, as if the acquisition of CEC Resources
occurred on January 1, 2000.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion