Flores & Rucks reports 1st quarter financial results.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)--May 11, 1995--Flores & Rucks,
Inc. (FNRI FNRI Food and Nutrition Research Institute (Philippines) ) reported 1995 first quarter results, including a 76%
increase in 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.
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. , and a 32% increase in production as compared to the same period in 1994. EBITDA for the first quarter of 1995 increased 76% to $14.2 million, or $0.94 per share, while the net loss for this period was $1.1 million or $0.07 per share. A 51% increase in operating revenues contributed to the higher EBITDA, growing to $26.0 million from $17.2 million for the same period a year ago. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. improved to $3.3 million as opposed to a loss of $0.5 million one year ago. Discretionary cash flow, at $9.1 million or $0.61 per share, increased 45% in comparison to the first quarter of 1994. As the Company's discretionary cash flow increases, FNRI's management plans to continue to reinvest these funds in future exploration, development, and acquisition activities. 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. , Bill Rucks, stated, "The improved performance of the Company during the first quarter of 1995 clearly demonstrates the positive effect that the successful implementation of our business plan and capital expenditures program have on our financial results. This is the first step towards the Company's objective of significantly increasing production, revenues and continued financial growth." 1ST QUARTER PRODUCTION & RESERVE INCREASES FNRI has achieved a 32% production increase for the first quarter of 1995 as compared to the same period a year ago due to its successful 1994 and 1995 drilling and acquisition programs. Production for the first quarter of 1995 was 1.7 million net barrels of oil equivalent (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 ) or 18.9 thousand BOE per day. This increase in production has contributed to cost efficiencies in operations, with 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. (LOE LOE Ley Orgánica de Educación (Spanish) LOE Level Of Effort LOE Limited Objective Experiment LOE Letter of Explanation LOE Language Other than English. ) per BOE for the period dropping to $3.99 from $4.20 for the same period in 1994. As of March 31, 1995, FNRI estimated its 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. at 42.6 MMBOE MMBOE Million Barrels of Oil Equivalent (energy and petroleum industry) , with an associated pre-tax present value discounted at 10% of $212.8 million. By reserve category, the Company's proved reserves are comprised of 90% proved developed and 10% proved undeveloped. The Company's proved reserves are 81% oil. DRILLING UPDATE "High Five" Prospect - Producing The SL 1007 No. 44 develocat well was drilled to a total depth of 10,080 feet and encountered 27 feet of net oil and gas pay. The well was completed in the O2 and Q sands and is currently producing at a rate of 893 BOE per day. "High Five 2" Prospect - Producing The SL 1007 No. 40ST develocat well was drilled to a total depth of 10,375 feet and encountered 51 feet of net oil and gas pay in the O2, P and R sands. The well was completed in the R sand and is currently producing at a rate of 1478 BOE per day. "Big Kahuna (person) kahuna - /k*-hoo'n*/ (From the Hawaiian title for a shaman) An IBM synonym for wizard or guru. 2" Prospect - Completion in Progress The SL 1007 No. 45 develocat well was drilled to a total depth of 9,341 feet and encountered 61 feet of net oil and gas pay in the N2, O2, P and P2 sands. The well is currently being dual completed in the O2 and P2 sands and is expected to be on line in June. "High Five 3" Prospect - Completion in Progress The SL 1007 No. 46 development well was drilled to a total depth of 9,347 feet and encountered 64 feet of net oil and gas pay in the N2, O and O2 sands. The well is currently being dual completed in the O and O2 sands and is expected to be on line in June. "Claw 2" Prospect - Waiting on Completion The OCS OCS - Object Compatibility Standard 694 No. 16 S/T S/T Such That S/T Self-Titled (also seen as ST) S/T Short Ton(s) develocat well was drilled to a total depth of 11,662 feet and encountered 240 feet of net oil and gas pay primarily in the M2, No, N1a, O1, O1b, and P sands. The well is currently being dual completed in the O1b and P sands and is expected to be on line in June. "Best of Show" Prospect - Operations Suspended Operations on the SL 1007 No. 43 well, which was found gas productive in the high pressured "U" sand, have been suspended due to sand control problems in perforations from 12,382 to 12,426. The company will continue to evaluate the economic viability of this well as new gravel pack completion technology or other sand control methods become available for high pressured environments. Drilling operations are presently underway on the Company's "White Sands" and "Channel" horizontal wells located in the East Bay Fields. Capital expenditures for the quarter totaled $17 million as compared to $1 million for the same period in 1994. FNRI has budgeted approximately $57 million for exploitation, development, leasehold and other facility enhancements primarily in its Main Pass 69 and East Bay Fields for 1995. The Company has also budgeted approximately $4 million for 3-D seismic to evaluate its South Pass 24 field and further identify additional drilling opportunities within this already highly productive field. Management anticipates that this 55 mile survey will be completed and integrated with existing field information by year end and used to further refine FNRI's 1996 drilling program. 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 & Rucks, Inc. is an independent energy company engaged in the acquisition, exploration, development and production of crude oil and natural gas. For further information, please contact Investor Relations Investor relations The process by which the corporation communicates with its investors. at (504) 928-6222 or mail requests to 8440 Jefferson Highway, Suite 420, Baton Rouge, LA 70809. -0-
FINANCIAL DATA - QUARTER ENDED 3/31/95 & 3/31/94
(In thousands, except per share, production and pricing data)
Quarter Ended Quarter Ended
3/31/95 3/31/94
Operating revenue $26,034 $17,234 Operating income (loss) 3,256 (469) Net income (loss) (1,062) (703) Earnings (loss) per share (0.07) N.M. EBITDA 14,155 8,022 EBITDA per share 0.94 N.M. Discretionary cash flow 9,116 6,306 Discretionary cash flow per share 0.61 N.M.
Weighted average shares of
common stock outstanding 15,040 N.M.
PRODUCTION AND PRICING DATA Oil production (barrels) 1,232,279 999,882 Average price per barrel 17.26 13.30 Gas production (mcf) 2,795,489 1,734,080 Average price per mcf 1.65 2.46 CONTACT: Flores & Rucks, Inc., Baton Rouge William Rucks, IV, 318/989-5900 Bob Belk, 504/927-1450 |
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