Clayton Williams Energy Announces 2006 Third Quarter Results.MIDLAND, Texas Midland is the county seat of Midland CountyGR6 located on the Southern Plains of the western area of the U.S. State of Texas. As of the 2006 U.S. Census estimate, the city had a total population of 102,073. -- Clayton Williams Clayton Wheat Williams, Jr. (b. 1931), a businessman from Midland, Texas, was the unsuccessful Republican gubernatorial nominee in 1990 against the Democratic State Treasurer Dorothy Ann Willis Richards even though he initially led in opinion polls by twenty points. Energy, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CWEI CWEI Combat Warfare Electronic Intelligence ) reported net income for the third quarter of 2006 of $5.3 million, or $.48 per share, as compared to a net loss of $2 million, or $.19 per share, for the third quarter of 2005. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for the third quarter of 2006 was $39.4 million, as compared to $50.4 million during the same period in 2005. For the nine months ended September 30, 2006, the Company reported net income of $26.7 million, or $2.38 per share, as compared to a net loss of $1.1 million, or $.10 per share, for the same period in 2005. Cash flow from operations for the nine-month period in 2006 was $116.5 million, as compared to $126.6 million during the same period in 2005. Oil and gas sales for the third quarter of 2006 totaled $61.5 million compared to $65.7 million for the same quarter in 2005. Of the $4.2 million decrease in oil and gas sales, lower oil and gas prices accounted for a decrease of $2.2 million and lower oil and gas production volumes accounted for the remaining $2 million decrease. Oil production for the third quarter of 2006 dropped slightly to 532,000 barrels, or 5,783 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. , from 537,000 barrels, or 5,837 barrels per day in the 2005 quarter. Gas production decreased 4% to 3.7 Bcf, or 40,630 Mcf per day, from 3.9 Bcf, or 42,359 Mcf per day in the 2005 quarter. Average realized oil prices in the third quarter of 2006 increased 12% from $59.95 to $67.27 per barrel, while gas prices decreased 22% from $7.98 to $6.26 per Mcf. Average realized prices for 2006 and 2005 exclude the effects of any gains or losses realized on commodity hedging transactions since those derivatives were not designated as cash flow hedges A cash flow hedge is a hedge of the exposure to the variability of cash flow that
For the third quarter of 2006, the Company reported a $26.7 million net gain on derivatives, consisting of a $28.4 million non-cash gain to mark the Company's derivative positions to their fair value on September 30, 2006 and a $1.7 million charge for cash settlements during the quarter. For the same period in 2005, the Company reported a $28.8 million net loss on derivatives, consisting of a $20.8 million non-cash mark-to-market loss and an $8 million charge for cash settlements. Exploration costs related to abandonments and impairments were $19.7 million during the third quarter of 2006, of which $8.1 million was attributable to the Apache Apache (əpăch`ē), Native North Americans of the Southwest composed of six culturally related groups. They speak a language that has various dialects and belongs to the Athabascan branch of the Nadene linguistic stock (see Native American Louisiana Minerals 73-1 (Abigail) in South Louisiana, $5.9 million was attributable to two exploratory wells on the Focus Ranch unit in Colorado, $2.9 million was primarily due to acreage impairments in West Texas and $2.1 million was attributable to the Weyerhaeuser #1 (Frazier Creek) in North Louisiana North Louisiana, also known as Sportsman's Paradise, is a region in the U.S. state of Louisiana. The region has two metropolitan areas: Monroe and Shreveport-Bossier City. . The Company's exploration costs were $13.9 million in the third quarter of 2005. The Company recorded a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. during the third quarter of 2006 of $12.9 million for an 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. of proved properties pursuant to Statement of Financial Accounting Standards No. 144 "Accounting for Impairment or Disposal of Long-Lived Assets." The impairment, which applied to two areas in West Texas and one area in South Louisiana, was required to reduce the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of these proved properties to their estimated fair market value. The Company will host a conference call to discuss these results and other forward-looking items today, November 9th at 1:30 pm CT (2:30 pm ET). The dial-in conference number is: 800-901-5213, passcode 59083952. The replay will be available for one week at 888-286-8010, passcode 12038883. To access the conference call via Internet webcast, please go to the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website at www.claytonwilliams.com and click on "Live Webcast." Following the live webcast, the call will be archived for a period of 90 days on the Company's website. Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas. Except for historical information, statements made in this release are 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 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, exploration risks, uncertainties about estimates of reserves, competition, government regulation, costs and results of drilling new projects, and mechanical and other inherent risks associated with oil and gas production. These risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements. TABLES AND SUPPLEMENTAL INFORMATION FOLLOW . . . [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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