Correcting special note pertaining to the Summary of Operations table.HOUSTON--(BUSINESS WIRE)--Jan. 22, 1997--Vastar Resources, Inc. (NYSE NYSE See: New York Stock Exchange : VRI VRI Vacation Register International VRI Video Relay Interpreting VRI Vehicle Research Institute (Western Washington University, Bellingham, Washington) VRI Venture Research Institute (Lake Forest, California) ) today announced record earnings of $220.0 million, or $2.26 per share, an increase of 114 percent from the $102.6 million ($1.06 per share) in 1995. Fourth quarter net income of $69.1 million ($.71 per share) also set a quarterly net income record, and compares to $38.4 million ($.39 per share) in 1995. Discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. increased to $676 million in 1996, up from $480 million last year. For the fourth quarter 1996, discretionary cash flow totaled $206 million, compared to $160 million in 1995. "1996 was an outstanding year for Vastar Vastar is a 1983's arcade game released by Sesame Japan Corporation. History In the year 2956 A.D., a fighting robot named Vastar was developed by scientists in order to protect Earth from the Galaxy Empire. ," said Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Michael Wiley Michael Wiley may refer to:
Contraction of we are. we're we are particularly pleased with our operational performance and with the important steps we took in 1996 to create further growth opportunities. Complementing our operations, strong commodity prices played a significant role in our financial results." -0-
In 1996 the company:
o Increased its average annual net production of natural gas,
crude oil and natural gas liquids to 1,165 million cubic
feet equivalent per day (MMcfed), an eight percent increase
over 1995;
o Replaced 144 percent of its 1996 production at a
replacement cost of $.93 per thousand cubic feet
equivalent (Mcfe);
o Established a significant position in the Gulf of Mexico
deepwater play, acquiring an inventory of high quality
prospects and securing a three-year commitment for a
drilling rig to operate in 5,000 foot water depths. The
rig is currently being upgraded, with modifications
expected to be complete by the fourth quarter 1997;
o Expanded its 3D seismic database, adding over one
thousand square miles of data onshore and nearly 800 blocks
of data offshore, including over 420 deepwater blocks; and
increased its substantial land position by acquiring
undeveloped leasehold acreage both offshore and onshore;
o Maintained a leading low-cost position with cash production
costs (operating costs; selling, general and administrative
expenses; & production-related taxes) of $.56 per Mcfe; and
o Grew its marketed volumes of natural gas to an annual
average 2.9 billion cubic feet per day (Bcfd), with the
fourth quarter averaging 3.4 Bcfd.
Capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. in 1996 totaled $567 million, including $259 million for exploration, $257 million for development, and $51 million for acquisition of producing assets. Expenditures for seismic and undeveloped 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. accounted for approximately $113 million, of which $38 million (excludes related staff costs) was invested to lay the foundation for Vastar's Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east deepwater Deepwater or Deep Water may refer to:
In 1996, Vastar added 632 billion cubic feet equivalent (Bcfe) of 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. (623 Bcfe net of divestitures) at a replacement cost of $.93 per Mcfe. Exclusive of acquisitions, the company added 503 Bcfe of proved reserves. From all sources, Vastar replaced 144 percent of production. Production replaced through the drill bit was 114 percent. The company more than replaced production in all products--natural gas, crude and condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. , and natural gas liquids. Vastar ended the year with 2.916 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. cubic feet equivalent (Tcfe) of proved reserves (80 percent developed), compared to 2.725 Tcfe at year end 1995. The fourth quarter 1996 posted record net income of $69.1 million and record discretionary cash flow of $206 million. Highlights of the quarter included a greater than 15 percent increase in 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. coal seam Noun 1. coal seam - a seam of coal seam, bed - a stratum of ore or coal thick enough to be mined with profit; "he worked in the coal beds" coalface - the part of a coal seam that is being cut gas production compared to the fourth quarter of 1995; the late fourth quarter start-up Start-up The earliest stage of a new business venture. of Vastar's 1995 Bastian Bastian, as a surname, may refer to:
n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. start-up of the Norphlet well in Mobile 904. Vastar's wellhead well·head n. 1. The source of a well or stream. 2. A principal source; a fountainhead. 3. The structure built over a well. wellhead Noun 1. prices for natural gas and realized prices for liquids were up significantly versus last year's fourth quarter, also contributing to the strong financial performance. Partially offsetting these benefits were increased exploration expenses which were driven by higher capital investment and the higher costs of rigs and related services, primarily in the Gulf of Mexico. Vastar Resources, Inc., headquartered in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , finds, develops, produces and markets natural gas and liquid hydrocarbons hydrocarbons (hīˈ·drō·kärˑ·b  nz),n. . -0-
VASTAR RESOURCES, INC.
SUMMARY OF OPERATIONS
(Unaudited)
(Millions of dollars except per share amounts)
For the three months For the year
ended December 31, ended December 31,
-------------------- ------------------
1996 1995 1996 1995
-------- -------- -------- --------
REVENUES
Sales and other operating
revenues $1,121.6 $ 588.6 $3,381.8 $1,993.4
Other revenues 2.4 19.3 20.8 36.8
-------- -------- -------- --------
Gross revenues 1,124.0 607.9 3,402.6 2,030.2
Less: Purchases (823.6) (383.4) (2,372.6) (1,246.4)
Delivery expenses (16.3) (12.3) (63.4) (44.3)
-------- -------- -------- --------
Net revenues 284.1 212.2 966.6 739.5
EXPENSES
Operating expenses 34.7 31.8 136.1 127.9
Dry hole costs 35.3 12.2 82.6 69.0
Other exploration expenses 20.0 16.2 76.8 55.2
Undeveloped leasehold
amortization 6.9 6.7 27.0 27.0
Depreciation, depletion and
amortization 70.9 83.0 275.9 263.3
Selling, general and
administrative expenses 19.0 9.8 62.0 51.2
Taxes other than income taxes 11.4 6.9 41.2 32.7
Interest expense 13.4 15.0 52.3 57.0
-------- -------- -------- --------
Total expenses 211.6 181.6 753.9 683.3
-------- -------- -------- --------
Income before income taxes 72.5 30.6 212.7 56.2
Income tax provision (benefit) 3.4 (7.8) (7.3) (46.4)
-------- -------- -------- --------
Net income $ 69.1 $ 38.4 $ 220.0 $ 102.6
======== ======== ======== ========
Earned per share(a) $ 0.71 $ 0.39 $ 2.26 $ 1.06
(a) The average number of shares outstanding for the three months
and year ended Dec. 31, 1996, were 97,259,943 and 97,255,970,
respectively.
VASTAR RESOURCES, INC.
SUMMARY OF OPERATIONS
(Unaudited)
For the three months For the year
ended Dec. 31, ended Dec. 31,
------------------ ------------------
1996 1995 1996 1995
------- ------- ------- -------
Operations
----------
Total production
(MMcfed-net) 1,147 1,089 1,165 1,082
Natural gas:
Production (MMcfd-net) 852 832 872 810
Average wellhead
price (per Mcf) $ 2.28 $ 1.58 $ 1.81 $ 1.38
Crude oil:
Production (Mbd-net) 33.3 31.6 34.2 32.7
Avg. realized price
(per barrel) $ 24.63 $ 18.43 $ 21.49 $ 18.43
Natural gas liquids:
Production (Mbd-net) 15.8 11.2 14.6 12.6
Avg. realized price
(per barrel) $ 18.77 $ 11.38 $ 15.01 $ 11.39
Discretionary Cash
Flow (a) ($ millions) $ 205.9 $ 160.3 $ 676.3 $ 480.3
Natural Gas Marketing
---------------------
Sales (MMcfd-net) 3,436 2,388 2,940 2,140
Average sales price
(per Mcf) $ 2.77 $ 1.92 $ 2.34 $ 1.63
Margin (b)
($ millions) $ 10.0 $ 11.1 $ 46.8 $ 38.8
(a) Discretionary cash flow is derived by adjusting net income for the
pre-tax effects of exploration expenses, depreciation, depletion
and amortization, and the change in deferred income taxes.
Discretionary cash flow is not a term as defined by generally
accepted accounting principles and should not be considered as an
alternative to net cash provided by operating activities.
(b) Margin reflects the pretax income from gas marketing activities
before related staff and support costs.
CONTACT: Vastar Resources (Media): Lisa Marshall, 281/584-3448 (Financial): Barbara Fitzgerald, 281/584-3477 |
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