St. Mary Reports Results for the Full Year and Fourth Quarter 2006.DENVER -- St. Mary Land & Exploration Company (NYSE NYSE See: New York Stock Exchange : SM) today reports earnings for the year ended 2006 of $190.0 million, or $2.94 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. Tony Best, President, commented, "2006 was a record-setting year for the Company on several fronts, and we also set the table for significant future growth. We achieved record annual net income, 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. , and production, both in absolute terms (Alg.) such as are known, or which do not contain the unknown quantity. See also: Absolute and on a per share basis. We exited 2006 with the highest quarterly production in our history for both oil and natural gas. We also ended 2006 with 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. of 927.6 BCFE BCFE Boundary Committee for England BCFE Ballyfermot College of Further Education (Dublin, Ireland) BCFE Board Certified Forensic Examiner Bcfe Billions of Cubic Feet Equivalent (Per Day; Gas Exploration) , a 17 percent increase year on year. Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , our activities in 2006 set up opportunities for growth in 2007 and beyond. We acquired oil and gas properties in the Sweetie Peck Field in the Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. which provide another multi-year drilling program for the Company. We also advanced our cornerstone programs in the horizontal Arkoma, at Hanging Woman Basin, at Elm Grove Elm Grove may refer to:
adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. percentage of production." FULL YEAR AND FOURTH QUARTER EARNINGS St. Mary announces full year 2006 earnings of $190.0 million or $2.94 per diluted share. Full year 2005 earnings were $151.9 million or $2.33 per diluted share. Earnings for the 2006 period include a non-cash, after-tax gain of $4.4 million, or $0.07 per diluted share, related to the exchange of oil and gas properties that closed in the second quarter of 2006. The non-cash, after-tax charge related to the change in the Company's Net Profits Plan liability was $15.2 million, or $0.23 per diluted share, for 2006, as compared to $68.0 million, or $1.02 per diluted share, in 2005. The direction and magnitude of the change in the Net Profits Plan liability reflect commodity price movements during each respective measurement period. Revenues for the year were $787.7 million compared to $739.6 million for 2005. Discretionary cash flow(1) increased to $525.1 million in 2006 from $462.0 million in 2005. Net cash provided by operating activities was $467.7 million in 2006 compared to $409.4 million in the prior year. Daily oil and gas production during 2006 averaged 254 million cubic feet of gas equivalent (MMCFE), an increase from 239 MMCFE/D in 2005. Average realized prices, inclusive of inclusive of prep. Taking into consideration or account; including. hedging activities, during the year were $7.37 per Mcf and $56.60 per barrel. The realized prices were 7 percent lower and 11 percent higher, respectively, than the realized prices in 2005. Average prices excluding hedging activities were $6.58 per Mcf and $59.33 per barrel during the year, which were 19 percent lower and 12 percent higher, respectively, than last year. Earnings for the fourth quarter of 2006 were $43.5 million, down from $51.2 million for the same period the preceding year. The non-cash, after-tax charge related to the change in the Company's Net Profits Plan liability was $4.1 million, or $0.06 per diluted share, for the fourth quarter of 2006. The fourth quarter 2005 charge, net of tax, for the Net Profits Plan was $22.4 million, or $0.33 per diluted share. Revenues for the quarter were $202.7 million compared to $227.9 million for the corresponding period in 2005. Discretionary cash flow(1) decreased to $126.4 million in the fourth quarter of 2006 from $141.0 million in the same period of the preceding year. Net cash provided by operating activities was $150.2 million in the fourth quarter of 2006 compared to $107.2 million in the same period of the prior year. Daily oil and gas production during the fourth quarter averaged 273 MMCFE, driven by record production for both natural gas and oil, an increase from 238 MMCFE/D in the fourth quarter of 2005. The Company has increased production each successive quarter over the last year. Average realized prices for the quarter, inclusive of hedging activities, were $7.20 per Mcf and $51.57 per barrel, 33 percent and 4 percent lower, respectively, than the realized prices in the fourth quarter of 2005. Average prices excluding hedging activities in the fourth quarter were $6.25 per Mcf and $52.39 per barrel, which are 46 percent and 6 percent lower, respectively, than the same period of last year. Operational updates for the fourth quarter 2006 were provided in the January 25, 2007 press release. EARNINGS CONFERENCE CALL As previously announced, the St. Mary fourth quarter earnings teleconference call is scheduled for February 23, 2007 at 8:00 am (MST See micro systems technology. ). The call participation number is 888-424-5231. A replay of the conference call will be available two hours after the completion of the call, 24 hours a day through March 9 at 800-642-1687, conference number 6342865. International participants can dial 706-634-6088 to take part in the conference call, and can access a replay of the call at 706-645-9291, conference number 6342865. In addition the call will be broadcast live at St. Mary's website at www.stmaryland.com and this press release and financial highlights attachment will be available before the call at www.stmaryland.com under "News--Press Releases." An audio recording of the conference call will be available at that site through March 9. INFORMATION ABOUT 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. This release contains forward-looking statements within the meaning of securities laws, including forecasts and projections. The words "will," "believe," "budget," "anticipate," "intend," "estimate," "forecast," "plan," and "expect" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, which may cause St. Mary's actual results to differ materially from results expressed or implied by the forward-looking statements. These risks include such factors as the volatility and level of oil and natural gas prices, the uncertain nature of the expected benefits from the acquisition of oil and gas properties and the ability to successfully integrate acquisitions, the potential effects of increased levels of debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay , the imprecise im·pre·cise adj. Not precise. im  pre·cise ly adv. nature of estimating oil and gas reserves, the
availability of additional economically attractive exploration,
development, and property acquisition opportunities for future growth
and any necessary financings, and other such matters discussed in the
"Risk Factors" section of St. Mary's 2005 Annual Report
on Form 10-K Form 10-KA report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the SEC, the 2006 Annual Report on Form 10-K expected to be filed with the SEC on or about February 23, 2007, and subsequent Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. to be filed with the SEC. Although St. Mary may from time to time voluntarily update its prior forward-looking statements, it disclaims any commitment to do so except as required by securities laws. (1) Discretionary cash flow is computed as net income plus depreciation, depletion, amortization, ARO accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the , impairments, deferred taxes, exploration expense, stock-based compensation expense, and non-cash changes in the Net Profits Plan liability less the effect of unrealized derivative loss. See the attached financial highlights for a reconciliation of discretionary cash flow to net cash provided by operating activities, a presentation of other cash flow information, and a statement indicating why management believes the presentation of the non-GAAP measure of discretionary cash flow provides useful information to investors. [TABLE OMITTED] |
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