Evergreen Resources Reports First Quarter 2000 Net Income.Business Editors DENVER--(BUSINESS WIRE)--May 4, 2000 EVERGREEN evergreen, term commonly used as synonymous with conifer and applied also to all those broad-leaved plants that bear green leaves throughout the year. Of the latter, most are plants of the tropics, subtropics, and other areas where the growing season is prolonged (e. RESOURCES, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (Nasdaq:EVER) today reported first quarter earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $1.9 million, or 12 cents per 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. share, compared to $.5 million, or 5 cents per diluted share, in the first quarter of 1999. Due to increased production and a higher gas price realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. , natural gas revenues in the first quarter increased to $7.4 million, up 62% from 1999's first quarter total of $4.6 million. Cash flow in the first quarter totaled $4.4 million, which compared to $2.2 million in the first quarter of 1999. Net gas sales in the first quarter averaged 41 million cubic feet (MMcf) per day, up 21% from the 34-MMcf-per-day average in the corresponding 1999 period. Evergreen had 269 net gas wells connected to pipeline at March 31, 2000, several of which were in various stages of de-watering. At March 31, 1999, Evergreen was producing natural gas from a total of 178 net gas wells. Evergreen drilled 25 wells in the Raton Basin The Raton Basin is a geologic structural basin in southern Colorado and northern New Mexico. It takes its name from Raton Pass and the town of Raton, New Mexico. In extent, the basin is approximately 50 miles east-west, and 90 miles north-south, in Huerfano and Las Animas Counties, during the first quarter, on pace with its estimated year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. total of 100 wells. Lease operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the three months ended March 31, 2000, were $1.5 million or 42 cents per thousand cubic feet (Mcf) of gas, compared to $1 million or 33 cents per Mcf for the same period in 1999. The increase in lease operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. for the first three months of 2000 as compared to 1999's first quarter was due to the increase in the number of producing wells and compressors, an increase in water handling costs, additional field personnel, workover costs related to well repairs and maintenance costs for compressors. Production taxes for the three months ended March 31, 2000 increased to 8 cents per Mcf, as compared to 6 cents per Mcf in the first quarter of 1999, due to higher natural gas prices. Evergreen has begun drilling operations on its coal bed methane methane (mĕth`ān), CH4, colorless, odorless, gaseous saturated hydrocarbon; the simplest alkane. It is less dense than air, melts at −184°C;, and boils at −161.4°C;. gas properties in the United Kingdom. The Sealand Sealand may refer to: Places
Major division of Upper Carboniferous (323–290 million years ago) rocks and time in Great Britain. The Coal Measures account for much of England's coal production. . The well is being drilled approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 20 miles south of Liverpool Liverpool, city (1991 pop. 448,300), NW England, on the Mersey River near its mouth. It is one of Britain's largest cities. A large center for food processing (especially flour and sugar), Liverpool has a variety of industries, including the manufacture of electrical , England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. with an Evergreen-owned, purpose-built purpose-built Adjective made to serve a specific purpose Adj. 1. purpose-built - designed and constructed to serve a particular purpose purpose-made rig. In addition to the three-well pilot program, Evergreen also plans to drill two other coal bed methane wells, along with an additional seven mine gas or "gob" gas wells to be drilled in or near underground abandoned coal mines. Evergreen holds a 100% working interest and a 100% net revenue interest in about 500,000 acres in the U.K. Financial statements follow. This press release contains 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 federal securities laws, including forward-looking statements regarding Evergreen's drilling plans. These statements are subject to various uncertainties. Actual results could differ materially from these forward-looking statements as a result of a variety of risks, including, among others, risks that drilling plans change due to gas price fluctuations or other factors. Accordingly, there can be no assurance that actual results will be as projected in these forward-looking statements.
Evergreen Resources, Inc. - Financial Highlights
Consolidated Statements of Income
(in 000's except per-share and per Mcf amounts)
Three Months Ended
March 31, March 31,
2000 1999
------------ ----------
Revenues:
Natural gas revenues $ 7,395 $ 4,572
Interest and other 41 51
------- -------
Total revenues 7,436 4,623
------- -------
Expenses:
Lease operating expense 1,535 1,012
Production taxes 285 189
Depreciation, depletion and
amortization 1,224 1,161
General and administrative
expenses 982 563
Interest expense 307 790
Other 51 32
------- -------
Total expenses 4,384 3,747
------- -------
Income from continuing
operations before income taxes 3,052 876
Income tax provision - deferred 1,190 341
------- -------
Income from continuing
operations 1,862 535
Discontinued operations:
Gain on disposal of
discontinued operations, net -- 452
------- -------
Net Income $ 1,862 $ 987
======= =======
Basic income per common share:
From continuing operations $ 0.13 $ 0.05
From discontinued operations -- 0.04
------- -------
Basic income per common share $ 0.13 $ 0.09
------- -------
Diluted income per common share:
From continuing operations $ 0.12 $ 0.05
From discontinued operations -- 0.03
------- -------
Diluted income per common share $ 0.12 $ 0.08
------- -------
Natural gas sales volume (MMcf) 3,685 3,044
Average gas price per Mcf $ 2.01 $ 1.50
Average lease operating
expense per Mcf $ 0.42 $ 0.33
Average production tax
expense per Mcf $ 0.08 $ 0.06
General and administrative
cost per Mcf $ 0.27 $ 0.19
Depreciation, depletion and
amortization per Mcf $ 0.33 $ 0.38
Weighted average shares
outstanding:
Basic 14,868 11,203
Diluted 15,506 11,775
Condensed Consolidated Balance Sheets
(in 000's)
March 31, December 31,
2000 1999
-------- -----------
Assets
Current assets $ 6,923 $ 6,421
Net property and equipment 191,277 174,334
Other assets 4,150 3,614
======== ========
$202,350 $184,369
======== ========
Liabilities and Equity
Current liabilities $ 8,444 $ 6,483
Other long-term 10,637 8,876
Notes payable 22,500 15,500
Stockholders' equity 160,769 153,510
-------- --------
$202,350 $184,369
======== ========
Condensed Consolidated Statements of Cash Flows
Three Months Ended
March 31,
2000 1999
-------- --------
Operating Activities:
Net Income $ 1,862 $ 987
Adjustments to reconcile net
income to cash provided
by operating activities:
Depreciation, depletion
and amortization 1,224 1,230
Deferred income taxes 1,190 341
Gain on disposal of
discontinued operations, net -- (452)
Other 120 128
-------- --------
Cash flow from operating
activities prior to
changes in operating
assets and liabilities 4,396 2,235
Changes in operating
assets and liabilities (826) (59)
-------- --------
Net cash provided by operating
activities 3,570 2,175
-------- --------
Cash flow from investing
activities:
Investment in property
and equipment, net (10,182) (12,849)
Other (79) (556)
-------- --------
Net cash used in investing
activities (10,261) (13,405)
-------- --------
Cash flow from financing
activities:
Net proceeds from notes
payable 7,000 13,617
Principal payments on
capital lease obligations -- (374)
Proceeds from issuance of
common stock, net 146 342
Other 508 (1,565)
-------- --------
Net cash provided in financing
activities 7,654 12,020
-------- --------
Effect of exchange rate
changes on cash (2) 15
-------- --------
Increase in cash and cash
equivalents 962 805
Cash and cash equivalents,
beginning of period 652 1,334
-------- --------
Cash and cash equivalents,
end of period $ 1,614 $ 2,139
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