Carbon Energy Corporation Reports Natural Gas Production Increase of 36% in United States, Financial and Operating Results for the First Quarter of 2002.Business Editors DENVER--(BUSINESS WIRE)--May 15, 2002 For the first quarter of 2002, Carbon Energy Corporation (AMEX AMEX See: American Stock Exchange :CRB CRB See: Commodity Research Bureau. ) reported a net loss of $532,000, or $.09 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 $3.5 million compared to net income of $1.0 million, or $.16 per share (diluted), on revenue from oil and gas sales of $7.6 million for the first quarter of 2001. Net cash used in operations was $1.1 million compared to net cash provided by operations of $4.3 million in the first quarter of 2001. 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: "We are extremely pleased with the increase in natural gas production 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. as a result of success from Carbon's 2001 drilling program. We hope to add additional natural gas production in the United States and 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 through our 2002 drilling program. United States Operations Natural gas production from the Company's U.S. subsidiary, Bonneville Fuels Corporation, increased by 36% to an average of 9.1 million cubic feet (MMcf) of gas per day for the first quarter of 2002 compared to 6.7 MMcf of gas per day for the first quarter of 2001. The average realized natural gas price was $1.84 per thousand cubic feet (Mcf) for the first quarter of 2002 compared to $5.23 per Mcf for the similar period in 2001. U.S. oil and liquids production increased by 3% to an average of 247 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 2002 compared to an average of 239 barrels per day for the first quarter of 2001. Carbon's average realized oil and liquids price was $17.91 per barrel for the first quarter of 2002 compared to $28.97 for the similar period in 2001. The increase in oil, liquids and gas production was due to successful drilling activities conducted during 2001 in the Piceance and Permian Basins 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. , partially offset by natural production declines in all areas. 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., decreased by 10% to an average of 6.2 MMcf of gas per day for the first quarter of 2002 compared to 6.9 MMcf of gas per day for the first quarter of 2001. The average realized natural gas price was $2.56 per Mcf for the first quarter of 2002 compared to $5.44 per Mcf for the similar period in 2001. Canadian oil and liquids production decreased by 9% to an average of 155 barrels per day for the first quarter of 2002 compared to an average of 171 barrels per day for the first quarter of 2001. Carbon's average realized oil and liquids price was $15.58 per barrel for the first quarter of 2002 compared to $28.15 per barrel for the similar period in 2001. The decrease in Canadian natural gas, oil and liquids production was primarily due to comparatively large first-quarter 2001 production volumes related to the initial production from the Company's fourth-quarter 2000 drilling program and natural production declines in all operating areas, partially offset by successful drilling 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. . Exploration and Production Operations Carbon's United States exploration and production operations are comprised of working interests in 263 producing oil and gas wells, of which 151 are operated by Carbon. Carbon has an interest in approximately 192,000 net acres of oil and gas leases located 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. , 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 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). and in Texas, Montana Montana (mŏntăn`ə), Rocky Mt. state in the NW United States. It is bounded by North Dakota and South Dakota (E), Wyoming (S), Idaho (W), and the Canadian provinces of British Columbia, Alberta, and Saskatchewan (N). , Wyoming Wyoming, city, United States Wyoming, city (1990 pop. 63,891), Kent co., W Mich., in the greater Grand Rapids metropolitan area, on the Grand River; settled 1832, inc. 1959. and 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). . CEC Resources Ltd. owns working interests in 79 producing oil and natural gas wells located in Alberta and Saskatchewan, of which 42 are operated by CEC. CEC has an interest in approximately 37,000 net acres of oil and gas leases. Carbon is involved in 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 Canada, with emphasis on the Piceance and Uintah Basins and the Carbon and Rowley areas of Central Alberta. 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, 2001.
CARBON ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share data)
(unaudited)
Three Months
Ended
March 31,
---------------------
2002 2001
-------- --------
Revenues:
Oil and gas sales $ 3,548 $ 7,616
Marketing and other, net 78 687
-------- --------
3,626 8,303
Expenses:
Oil and gas production costs 1,185 1,368
Depreciation, depletion and amortization 1,740 1,388
General and administrative, net 1,329 1,096
Interest, net 193 186
-------- --------
Total operating expenses 4,447 4,038
Minority interest - 22
-------- --------
Income (loss) before income taxes (821) 4,243
Income tax provision (benefit):
Current 27 719
Deferred (316) 998
-------- --------
Total taxes (289) 1,717
Net income (loss) before cumulative effect of
change in accounting principle (532) 2,526
Cumulative effect of change in accounting
principle, net of tax - (1,510)
-------- --------
Net income (loss) $ (532) $ 1,016
======== ========
Average number of common shares outstanding:
Basic 6,086 6,026
Diluted 6,086 6,246
Earnings (loss) per share -- basic:
Net income (loss) before cumulative effect
of change in accounting principle $ (0.09) $ 0.42
Cumulative effect of change in accounting
principle, net of tax - (0.25)
-------- --------
$ (0.09) $ 0.17
======== ========
Earnings (loss) per share -- diluted:
Net income (loss) before cumulative effect
of change in accounting principle $ (0.09) $ 0.40
Cumulative effect of change in accounting
principle, net of tax - (0.24)
-------- --------
$ (0.09) $ 0.16
======== ========
Earnings before interest, taxes and
dd&a (EBITDA) $ 1,112 $ 4,307
Net cash provided by (used in) operating
activities $ (1,097) $ 4,322
CARBON ENERGY CORPORATION
OPERATING DATA
(dollars in thousands, except average price received)
United States Canada Total
Three Months Three Months Three Months
Ended Ended Ended
March 31, March 31, March 31,
--------------- ---------------- ----------------
2002 2001 2002 2001 2002 2001
------- ------- ------- ------- ------- -------
Daily Sales Volumes
Natural gas (MMcf) 9.1 6.7 6.2 6.9 15.3 13.6
Oil and liquids (Bbl) 247 239 155 171 402 410
Equivalent production
(MMcfe) (6:1) 10.6 8.1 7.1 7.9 17.7 16.0
Revenues
Oil and gas
revenues $ 1,899 $ 3,801 $ 1,649 $ 3,815 $ 3,548 $ 7,616
Marketing and
other, net 78 687 - - 78 687
------- ------- ------- ------- ------- -------
Total revenues $ 1,977 $ 4,488 $ 1,649 $ 3,815 $ 3,626 $ 8,303
Prices
Natural gas ($/Mcf) $ 1.84 $ 5.23 $ 2.56 $ 5.44 $ 2.13 $ 5.34
Oil and liquids
($/Bbl) 17.91 28.97 15.58 28.15 17.01 28.63
Drilling activity:
Gross 2.0 9.0 3.0 3.0 5.0 12.0
Net 0.1 5.3 2.0 3.0 2.1 8.3
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