Flores & Rucks, Inc. Announces Record Earnings and Cash Flow For 1996.BATON ROUGE Baton Rouge (băt`ən r  zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. , La.--(BUSINESS WIRE)--Flores & Rucks, Inc.
("FNR FNR False Negative RateFnR Find and Replace FNR Ford Nuclear Reactor FNR Future Net Revenue FNR For No Reason FNR Flexible Numbering Register FNR Fixed Network Reconfiguration FNR Frequency Normalization Response ") today announced earnings of $21.0 million, or $1.07 per share, for the year ended December December: see month. 31, 1996. This represents a 112% increase in earnings as compared to $9.9 million, or $0.65 per share, for the comparable 1995 period. 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. was $112.5 million, or $5.73 per share, an 83% increase as compared to 1995 discretionary cash flow of $61.4 million, or $4.05 per share. Production for 1996 averaged 28.1 thousand barrels of oil equivalent per day ("MBOEPD MBOEPD Thousand Barrels of Oil Equivalents Per Day ") net to the Company, a 26% increase as compared to 22.3 MBOEPD in the prior year. James C. Flores Flores, town, Guatemala Flores (flōrəs), town (1990 est. pop. 2,200), capital of Petén department, N Guatemala. Flores was built on an island in the southern part of Lake Petén Itzá and on the site of the , Chairman 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. , stated, "1996 was a banner year for Flores & Rucks, as we posted record earnings, cash flow and production. Our excellent financial results reflect the soundness of our ongoing operational policy which focuses on growing production and reducing unit 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. . As we turn towards 1997, we are well positioned for continued growth with a $200 million drilling budget from which we plan to drill 36 potentially high impact exploratory wells in addition to over 60 development projects." Other indicators of FNR's solid financial performance include a 66% increase in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. ) to $129.1 million for the year end December 31, 1996 as compared to $77.6 million for the comparable 1995 period. Oil and gas revenues for 1996 increased 47% from 1995 to $188.5 million. Lease operating expenses per BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip decreased 5% to $3.52 in 1996 as compared to $3.70 in 1995. As of December 31, 1996, FNR's estimated 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. were 75.0 million barrels of oil equivalent (68% oil, 32% gas), with an estimated present value of future net revenues of $693.5 million. Certain statements in this news release regarding future expectations, plans for acquisitions, dispositions, and oil and gas exploration, development, production and pricing may be regarded as "forward looking statements" within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act. They are subject to various risks, such as operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc underground accumulations of oil and gas, as well as other risks discussed in detail in the Company's SEC filings, including the Annual Report and 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, 1995. Actual results may vary materially. Flores & Rucks, Inc. is an independent energy company engaged in the exploration, development, production, and acquisition of crude oil and natural gas. For further information, please contact Michael O. Aldridge, V.P. - Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. at (504) 927-1450 or mail requests to Investor Relations Investor relations The process by which the corporation communicates with its investors. , 8440 Jefferson Highway
The Jefferson Highway , Suite 420, Baton Rouge, LA 70809. Additional information on FNR is located in the "Corporate News on the Net" section of Business Wire's home page (http:/www.businesswire.com). -0-
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Operating revenues $ 71,780 $ 37,489 $ 188,451 $ 127,970
Operating expenses:
Lease operating expenses 11,261 7,243 36,192 30,024
Severance taxes 2,195 2,691 10,906 10,023
Depreciation, depletion,
and amortization 26,175 15,539 74,652 54,084
General and
administrative expense 6,207 3,064 16,154 11,312
Total operating
expenses 45,838 28,537 137,904 105,443
Operating income 25,942 8,952 50,547 22,527
Other expense (income):
Interest expense 5,925 4,620 17,954 17,620
Other expense (income) (221) (77) (395) (303)
Total other expenses 5,704 4,543 17,559 17,317
Net income before
income taxes 20,238 4,409 32,988 5,210
Income tax expense
(benefit) 6,986 (4,692) 12,037 (4,692)
Net income $ 13,252 $ 9,101 $ 20,951 $ 9,902
Earnings per share -
primary $ 0.63 $ 0.60 $ 1.07 $ 0.65
Common shares
outstanding - primary 20,873,201 15,215,985 19,639,942 15,158,514
Earnings per share -
fully diluted $ 0.63 $ 0.59 $ 1.05 $ 0.65
Common shares
outstanding - fully
diluted 20,949,157 15,330,743 19,901,461 15,329,740
CONDENSED BALANCE SHEETS
(In thousands)
Year Ended
December 31,
1996 1995
Assets
Current assets $ 83,859 $ 19,093
Property and
equipment, net 359,985 182,284
Other assets 16,866 14,080
$ 460,710 $ 215,457
Liabilities and
Stockholders' Equity
Current liabilities $ 64,917 $ 22,919
Long-term debt 284,142 171,692
Deferred taxes and
other non current
liabilities 6,498 870
Stockholders' equity 105,153 19,976
$ 460,710 $ 215,457
OTHER FINANCIAL DATA
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Discretionary cash
flow $ 47,114 $ 20,556 $ 112,545 $ 61,396
Discretionary cash
flow per share -
primary 2.26 1.35 5.73 4.05
Discretionary cash
flow per share -
fully diluted 2.25 1.34 5.66 4.01
EBITDA $ 52,710 $ 24,825 $ 129,100 $ 77,645
PRODUCTION AND PRICING DATA
(In thousands, except pricing data)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Oil production (Bbls) 2,232 1,717 7,149 6,057
Average price per Bbl
(a) $ 22.44 $ 17.45 $ 19.70 $ 17.27
Gas production (Mcf) 7,047 3,414 18,720 12,393
Average price per
Mcf (a) $ 3.01 $ 2.20 $ 2.50 $ 1.84
BOE production 3,406 2,286 10,269 8,123
(a) Includes results of hedging activities.
RESERVE DATA
(In thousands)
Year Ended
December 31,
1996 1995
Net proved reserves
Oil (Bbls) 50,776 33,829
Gas (Mcf) 145,359 87,204
BOE 75,003 48,363
Estimated future net
revenues $ 881,774 $ 279,830
Present value of future
net revenues discounted
at 10% $ 693,515 $ 234,735
CONTACT: Flores & Rucks Inc., Baton Rouge Michael O. Aldridge, 504/927-1450 |
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