Toreador Reports Fourth Quarter 2005 Financial Results and Provides Operational Update.DALLAS Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. -- Toreador Resources Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : TRGL): --EBITDAX (a non-GAAP financial measure reconciled below) of $3.2 million, up 19% from $2.7 million in the fourth quarter of 2004 --Operating income of $109 thousand, compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $619 thousand in the same period of 2004 --Total revenues of $8.5 million, up 33% from the fourth quarter of 2004 Toreador Resources Corporation (NASDAQ: TRGL) today announced financial results for the fourth quarter of 2005. For the fourth quarter of 2005, Toreador reported income available to common shares of $2.4 million, or $0.15 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 a loss of $362 thousand in the fourth quarter of 2004, or a loss of $0.03 per diluted share. Diluted weighted average shares outstanding in the fourth quarter of 2005 were 16.8 million, compared to 9.7 million diluted weighted average shares outstanding in the fourth quarter of 2004. 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. in the fourth quarter of 2005 was $109 thousand, compared to an operating loss of $619 thousand in the fourth quarter of 2004. Total revenues for the three months ended December December: see month. 31, 2005 were $8.5 million, compared to $6.4 million for the same period in 2004. The average realized price in the fourth quarter of 2005 was $52.92 per barrel of oil equivalent The barrel of oil equivalent (bboe, sometimes BOE) is a unit of energy based on the approximate energy released by burning one barrel of crude oil. The US Internal Revenue Service defines it as equal to 5.8 × 106 BTU [1]. 5. (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 ), compared to $39.55 per BOE in the fourth quarter of 2004. Earnings before interest, taxes, depreciation, amortization and exploration expense (EBITDAX Earnings Before Interest, Taxes, Depreciation, Depletion, Amortization, and Exploration Expenses - EBITDAX An indicator of a company's financial performance calculated as: , a non-GAAP financial measure reconciled below) was $3.2 million in the three months ended December 31, 2005 compared to $2.7 million for the three months ended December 31, 2004. "Toreador is entering a period of significant growth," said G. Thomas Graves
Admiral Sir Thomas Graves KB RN (1747?–1814), admiral, third son of the Rev. III, President and Chief Executive Officer of Toreador. "We began 2006 with a production rate of approximately 1,600 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. equivalent. During the first quarter we added roughly 500 barrels of oil per day of production in France, and by the end of the quarter should add another 1,100 barrels per day equivalent of production in Romania Romania (rōmān`ēə, –yə) or Rumania (r  –), republic (v), 91,699 sq mi (237,500 sq km), SE Europe. , which we believe will be the first ever sales
of natural gas produced by a foreign company in that country. At that
point, our production rate will be approximately twice the rate we
started with at the beginning of 2006 . When the first phase of
production from the South Akcakoca Sub-basin offshore Turkey is brought
on-line in the second half of the year, our share of the production
should be approximately 3,500 barrels per day equivalent of natural gas.
By the end of the year we expect to have grown our production rate by
nearly four times from the rate at the beginning of the year."In the fourth quarter of 2005, Toreador's oil and gas production was approximately 163 thousand barrels of oil equivalent (MBOE MBOE Thousands of Barrels of Oil Equivalent MBOE Milford Board of Education ) compared to 165 MBOE during the same period last year. The average realized price of oil in the fourth quarter of 2005 was $53.04 per barrel compared to $40.33 per barrel in the fourth quarter of 2004, an increase of 32%. The average realized price of natural gas in the quarter ended December 31, 2005 was $8.73 per thousand cubic feet (Mcf), compared to $5.85 per Mcf for the same period last year, an increase of 59%. At year end, 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 approximately 15.0 million barrels of oil equivalent (MMBOE MMBOE Million Barrels of Oil Equivalent (energy and petroleum industry) ) compared to 13.8 MMBOE at December 31, 2004, an increase of 9%. The discounted present value at 10% (pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ) of reserves at year end (a non-GAAP financial measure reconciled below) was $224.8 million compared to $115.1 million at December 31, 2004, an increase of 95%. An average realized oil price of $56.24 per barrel and an average realized natural gas price of $6.98 per Mcf were used to calculate reserves at December 31, 2005. FULL YEAR RESULTS For the full year of 2005 Toreador reported income applicable to common shares of $6.3 million or $0.42 per diluted share, compared to income available to common shares of $24.3 million, or $1.97 per diluted share, for the same period last year. In 2004 we sold our U.S. producing and non-producing mineral and royalty portfolio which resulted in income from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $17.5 million, or $1.37 per diluted share. Operating income in 2005 was $4.7 million, up 194% compared to $1.6 million in 2004. Total revenues in 2005 were $30.9 million, up 47% compared to $21.0 million in 2004. EBITDAX (a non-GAAP financial measure reconciled below) was $14.1 million, up 66% compared to $8.5 million in 2004 In 2005, Toreador's oil and gas production was approximately 624 MBOE compared to approximately 634 MBOE in 2004. The average realized price of oil in 2005 was $50.17 per barrel, compared to $35.24 per barrel in 2004, an increase of 42%. The average realized price of natural gas in 2005 was $7.56 per Mcf compared to $5.65 per Mcf in 2004, an increase of 34%. OPERATIONAL UPDATE Turkey Offshore Turkey, the Akkaya-2 well has been drilled through the Eocene-age Kusuri formation, and has confirmed the presence of natural gas on the northern flank flank (flank) the side of the body between ribs and ilium. flank n. 1. The side of the body between the pelvis or hip and the last rib; the side. 2. of the Akkaya structure. Logs indicate approximately 21 meters of net pay from 1,040 meters to 1,120 meters, which was in line with expectations. The well will be tested next week and results will be released when work is completed. In extended testing of the Dogu Ayazli-1 well, the production rate from the bottom 10 meters of pay improved to over 9.0 million cubic feet of gas per day (MMcfd) from an initial rate of 7.3 MMcfd as previously reported. The Prometheus jackup rig has finished operations on the Dogu Ayazli-1 and has spudded the Dogu Ayazli-2, which is being drilled towards the northwest flank of the Dogu Ayazli structure. Atwood At·wood , Margaret Eleanor Born 1939. Canadian writer of novels, poetry, and children's books known especially for her feminist novels, including The Edible Woman (1969) and The Handmaid's Tale (1985). Oceanics has informed the company that the operator currently employing the Southern Cross has scheduled a well that will be longer in duration than originally anticipated. As a result of this unexpected event, the arrival of the Southern Cross is now estimated to be late in the third quarter, when it will be used to drill two wells for Toreador and its partners before drilling two wells for another company in Bulgaria Bulgaria (bŭlgâr`ēə), Bulgarian Balgarija, officially Republic of Bulgaria, republic (2005 est. pop. 7,450,000), 42,823 sq mi (110,912 sq km), SE Europe, on the E Balkan Peninsula. , and then returning to Turkish waters to drill an additional well. The delayed arrival will have no effect on the delivery of first production in the second half of 2006 from the South Akcakoca Sub-basin. Romania Construction of the production facility for the Fauresti rehabilitation rehabilitation: see physical therapy. permit is complete and the facility is undergoing final testing for operations. It is expected that the necessary permits to begin selling natural gas will be granted in the coming weeks, and that production will begin by the end of March. Initial production rates are expected to be approximately 6 MMcfd of natural gas and 50 barrels of 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. per day. Hungary Hungary, Hung. Magyarország, officially Republic of Hungary, republic (2005 est. pop. 10,007,000), 35,919 sq mi (93,030 sq km), central Europe. In Hungary, Toreador plans to drill its first exploration well in the northern part of the Szolnok Szolnok (sôl`nôk), city (1991 est. pop. 78,700), E central Hungary, at the confluence of the Tisza and Zagyva rivers. It is a river port and a road and rail junction. Manufactures include furniture, textiles, chemicals, and paper. block. The spud date is scheduled to be in May. The well will be drilled in the Kenderes Kenderes (IPA: [ˈkɛndɛrɛʃ]) is a town in Jász-Nagykun-Szolnok county, Hungary. It is located at around . area to test a potential gas-bearing Tertiary-age Pannonian turbidite tur·bi·dite n. A sedimentary deposit formed by a turbidity current. turbidite A sedimentary deposit formed by a turbidity current. at approximately 1,700 meters depth. CONFERENCE CALL A conference call to discuss fourth quarter 2005 results and operational activities will be held today at 10:00 am Central, 11:00 am Eastern time. Active participants who wish to ask questions during the conference call should dial toll free 800-798-2884 (international dial 1-617-614-6207), passcode 64205225 approximately 10 minutes before the scheduled call time to access the call. Those who wish only to listen to the live audio webcast may access the webcast via Toreador's internet home page at www.toreador.net by selecting the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " link on the home page and then selecting the "Conference Calls" link. Those unable to participate in the live call may hear a rebroadcast for up to twelve months after the conference call at www.toreador.net by selecting the "Investor Relations" link on the home page and then selecting the "Conference Calls" link or may dial toll-free 888-286-8010 (international dial 1-617-801-6888), passcode 74657356 to listen to a replay of the call. Phone replays will be available for 14 days after the call. ABOUT TOREADOR Toreador Resources Corporation is an independent international energy company engaged in the acquisition, development, exploration and production of natural gas, crude oil and other income-producing minerals. The company holds interests in developed and undeveloped oil and gas properties in France, Hungary, Romania, Turkey and Trinidad Trinidad (trēnēthäth`), town (1983 est. pop. 43,500), Sancti Spíritus prov., central Cuba. Tobacco processing is the chief industry, although other agricultural processing has been developed. . In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Toreador primarily owns working interests in five states. More information about Toreador may be found at the company's web site, www.toreador.net. Explanation and Reconciliation of Non-GAAP Financial Measures Earnings before interest, taxes, depreciation, amortization and exploration expense (EBITDAX) is presented because of its acceptance as an indicator of an oil and gas exploration and production company's ability to internally fund exploration and development activities and to service or incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. additional debt. EBITDAX should not be considered in isolation or as a substitute for operating income prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . Table 1 below reconciles EBITDAX with income 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 as derived from the company's financial information.
Table 1: Reconciliation of EBITDAX to Income from continuing
operations
Three months ended Year ended
December 31, December 31,
($ thousands) 2005 2004 2005 2004
-------- ------- ------- -------
Income from continuing operations $ 2,424 $ 626 $ 6,905 $ 7,480
Income tax (benefit) provision (2,427) (2,680) (1,768) (3,576)
Interest expense 1,327 290 1,632 1,611
Interest and other (income) loss (1,117) (183) (1,706) (396)
Foreign currency exchange (gains)
losses 7 (233) (148) (5,044)
Turkish currency remeasurement - 1,140 - 1,140
(Gain) loss on sale of properties - 381 (12) 336
Equity in (gains) losses of
unconsolidated subsidiaries (105) 39 (222) 18
Depletion, depreciation and
amortization 1,362 970 4,243 3,538
Impairment of oil and gas properties 926 - 2,308 -
Exploration and acquisition cost 793 2,418 2,830 3,402
-------- ------- ------- -------
$ 3,190 $ 2,768 $14,062 $ 8,509
======== ======= ======= =======
The discounted present value at 10% (pretax) of reserves represents the discounted future cash flows attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to our proved oil and natural gas reserves before income tax, discounted at 10%. Although it is a non-GAAP measure, we believe that the presentation of the discounted present value is relevant and useful to our investors because it presents the discounted future net cash flows attributable to our proved reserves prior to taking into account corporate future income taxes and our current tax structure. We use this measure when assessing the potential return on investment related to our oil and natural gas properties. Table 2 below compares the discounted present value at 10% (pretax) of reserves with the standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. measure of discounted future net cash flows, which represents the present value of future cash flows attributable to our proved oil and natural gas reserves after income tax, discounted at 10%.
Table 2: Discounted present value at 10% (pretax) of proved reserves
at December 31, 2005, compared to standardized measure of
proved reserves
At December 31,
---------------------
($ thousands) 2005 2004
---------------------
Discounted present value at 10% (pretax) $ 224,794 $ 115,142
Standardized measure of proved reserves $ 152,820 $ 75,112
Safe-Harbor Statement -- Except for the historical information contained herein, the matters set forth in this news release are "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 Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Toreador intends that all such statements be subject to the "safe-harbor" provisions of those Acts. Many important risks, factors and conditions may cause Toreador's actual results to differ materially from those discussed in any such forward-looking statement. These risks include, but are not limited to, estimates of reserves, estimates of production, future commodity prices, exchange rates, interest rates, geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. and political risks, drilling risks, product demand, transportation restrictions, the ability of Toreador to obtain additional capital, and other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. The historical results achieved by Toreador are not necessarily indicative of its future prospects. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
TOREADOR RESOURCES CORPORATION
(in thousands, except as noted)
Three Months Twelve Months
Ended Ended
December 31 December 31
---------------- -----------------
SELECTED FINANCIAL RESULTS 2005 2004 2005 2004
---------------- -----------------
Revenues:
Oil and natural gas sales $ 8,508 $ 6,387 $ 30,856 $21,014
Other revenues - 14 - 14
------- ------- -------- -------
Total revenues 8,508 6,401 30,856 21,028
Costs and expenses:
Lease operating 3,604 1,837 9,976 6,873
Exploration and acquisition 1,719 2,418 5,138 3,402
Depreciation, depletion, and
amortization 1,362 970 4,243 3,538
General and administrative 1,714 1,795 6,818 5,646
------- ------- -------- -------
Total costs and expenses 8,399 7,020 26,175 19,459
------- ------- -------- -------
Operating income (loss) 109 (619) 4,681 1,569
Other income (expense) (112) (1,434) 456 2,335
Provision for (benefit from) income
taxes (2,427) (2,680) (1,768) (3,576)
------- ------- -------- -------
Income from continuing operations 2,424 627 6,905 7,480
Income (loss)from discontinued
operations, net of tax 22 (815) 47 17,539
------- ------- -------- -------
Net income 2,446 (188) 6,952 25,019
Dividends on preferred shares 40 174 684 714
------- ------- -------- -------
Income (loss) applicable to common
shares $ 2,406 $ (362) $ 6,268 $24,305
======= ======= ======== =======
Basic earnings per share $ 0.16 $ (0.04) $ 0.44 $ 2.54
======= ======= ======== =======
Diluted earnings per share $ 0.15 $ (0.03) $ 0.42 $ 1.97
======= ======= ======== =======
Weighted average shares outstanding:
Basic 15,540 9,775 14,274 9,571
Diluted 16,830 10,862 15,207 12,817
SELECTED OPERATING RESULTS
Production
Oil production (MBbl) 134 141 529 539
Natural gas production (MMcf) 174 147 569 566
Equivalent production (MBOE) 163 165 624 634
Prices
Average oil price per Bbl $ 53.04 $ 40.33 $ 50.17 $ 35.24
Average natural gas price per Mcf 8.73 5.85 7.56 5.65
Average equivalent price per BOE 52.92 39.55 49.44 35.00
December 31
----------------
2005 2004
----------------
SELECTED BALANCE SHEET INFORMATION
Cash $ 92,507 $ 4,977
Long-term debt 92,060 9,022
Stockholders' equity 133,184 63,258
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