Toreador Reports Significant Improvement in First Quarter 2006 Operating Results.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): --Income available to common shares up 20% from first quarter of 2005 --EBITDAX(1) up 92% from the same period last year --Total revenues up 53% from last year
($ millions, except where noted) Q1 Q1 CHANGE CHANGE
2006 2005 ($) (%)
------ ------ ------- -------
Revenue $9.8 $6.4 3.4 53%
Operating income 0.8 1.2 (0.4) -33%
EBITDAX(1) 4.8 2.5 2.3 92%
Income available to common shares 1.2 1.0 0.2 20%
Basic income per share ($/share) $0.08 $0.08 - 0%
Diluted income per share ($/share) $0.08 $0.08 - 0%
Production (MBOE) 176 149 27 18%
Toreador Resources Corporation (NASDAQ: TRGL) today announced financial results for the first quarter of 2006. For the first quarter of 2006, Toreador reported income available to common shares of $1.2 million, or $0.08 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 $1.0 million in the first quarter of 2005, or $0.08 per diluted share. Diluted weighted average shares outstanding in the first quarter of 2006 were 16.3 million, compared to 14.1 million diluted weighted average shares outstanding in the first quarter of 2005. 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: )(1) was $4.8 million in the three months ended March 31, 2006 compared to $2.5 million for the same period last year. Total revenues for the three months ended March 31, 2006 were $9.8 million, compared to $6.4 million for the same period in 2005. 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 first quarter of 2006 was $0.8 million, compared to $1.2 million in the first quarter of 2005. A non-cash loss contingency contingency n. an event that might not occur. of $1.5 million was recorded on an insurance receivable related to the previously announced re-drilling of two wells in the Ayazli structure. This is a required reserve in the event that the insurance carrier does not pay the full amount of claims. However, management believes the full amount will ultimately be recovered. "Operating results for this quarter improved significantly compared to last year," 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, "as we begin to see some positive effects from our planned production growth this year. During the quarter we had good success with the drill bit in Turkey and will soon begin an exploration well in 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. . During the course of the year we will have active exploration programs in all of our core portfolio holdings while we simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics bring on new production from Romania Romania (rōmān`ēə, –yə) or Rumania (r  –), republic (v), 91,699 sq mi (237,500 sq km), SE Europe. ,
Hungary and Turkey. We are at the beginning of a period of fundamental
change in our reserve base and production profile as we concentrate on
executing our growth plans."In the first quarter of 2006, Toreador's oil and gas production was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 176 thousand barrels of oil equivalent (MBOE MBOE Thousands of Barrels of Oil Equivalent MBOE Milford Board of Education ) compared to 149 MBOE during the same period last year. The average realized price on a 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 basis in the first quarter of 2006 was $55.11 per BOE compared to $42.59 per BOE in the first quarter of 2005. The average realized price of oil in the first quarter of 2006 was $57.42 per barrel barrel: see English units of measurement. compared to $43.49 per barrel in the first quarter of 2005. The average realized price of natural gas in the quarter ended March 31, 2006 was $6.12 per thousand cubic feet (Mcf), compared to $6.17 per Mcf for the same period last year. OPERATIONAL UPDATE Turkey Offshore Turkey in the Black Sea, the Akkaya-2 development well tested 6.2 million cubic feet per day of dry gas through a 32/64" choke (jargon) choke - To fail to process input or, more generally, to fail at any endeavor. E.g. "NULs make System V's "lpr(1)" choke." See barf, gag. at a flowing wellhead well·head n. 1. The source of a well or stream. 2. A principal source; a fountainhead. 3. The structure built over a well. wellhead Noun 1. pressure of 1,077 psi PSI - Portable Scheme Interpreter . The production test was from two zones totaling approximately 16 meters (53 feet) out of 21 meters (69 feet) of net pay in the well. The Akkaya-3 development well encountered approximately 23 meters (75 feet) of net pay in 3 zones from 843 meters (2,166 feet) to 1,212 meters (3,977 feet) true vertical depth, in line with expectations, and will be tested as soon as operations on the Akkaya-2 well are finished. The Akkaya-3 was drilled to a bottom hole location approximately 1,150 meters (3, 774 feet) east of the Akkaya-1A well. The Bayhanli-1 exploratory well was spudded during the second week in April, and is expected to reach total depth in the next two to three weeks. The well is testing a prospect to the east of the Dogu Ayazli structure located along the same thrust fault trend in the South Akcakoca Sub-basin project area. CONFERENCE CALL A conference call to discuss first quarter 2006 results and operational activities will be held today at 8:30 am Central, 9:30 am Eastern time. Active participants who wish to ask questions during the conference call should dial toll free 866-272-9941 (international dial 1-617-213-8895), passcode 27986478 approximately 10 minutes before the scheduled call time to access the call. Those who wish to listen only 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 50155785 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. (1) Explanation and Reconciliation of Non-GAAP Financial Measures Earnings before interest, taxes, depreciation, amortization and exploration expense (EBITDAX) is a non-GAAP measure presented because of its acceptance as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. 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 de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the company's financial information.
Table 1: Reconciliation of EBITDAX to Income from continuing
operations
Three months ended
March 31,
($ thousands) 2006 2005
-------------------
Income from continuing operations $1,284 $1,553
Income tax provision 377 62
Interest expense 1,265 (69)
Interest and other income (940) (245)
Foreign currency exchange gains (630) (13)
Gain on sale of assets (471) -
Equity in earnings of unconsolidated
subsidiaries (96) (89)
Depletion, depreciation and amortization 1,471 917
Exploration and acquisition cost 1,053 374
Loss contingency on insurance receivable 1,500 -
-------------------
EBITDAX $4,813 $2,490
===================
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, actual recoveries of insurance proceeds, 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 indicative: see mood. 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 per share amounts)
Three Months Ended
March 31,
------------------
SELECTED FINANCIAL RESULTS 2006 2005
------------------
Oil and natural gas sales revenues $9,769 $6,414
Costs and expenses:
Lease operating 2,435 2,120
Exploration and acquisition 1,053 374
Depreciation, depletion, and amortization 1,471 917
Loss contingency on insurance receivable 1,500 -
General and administrative 2,521 1,804
------------------
Total costs and expenses 8,980 5,215
------------------
Operating income 789 1,199
Other income (expense):
Equity in earnings of unconsolided investments 96 89
Gain on sale of assets 471 -
Foreign currency gain 630 13
Interest and other income 940 245
Interest expense (1,265) 69
------------------
Total other income 872 416
Provision for income taxes 377 62
------------------
Income from continuing operations 1,284 1,553
Income from discontinued operations, net of tax - 10
------------------
Net income 1,284 1,563
Dividends on preferred shares 41 563
------------------
Income available to common shares $1,243 $1,000
==================
Basic earnings per share $0.08 $0.08
==================
Diluted earnings per share $0.08 $0.08
==================
Weighted average shares outstanding:
Basic 15,507 12,801
Diluted 16,338 14,142
SELECTED OPERATING RESULTS
Production
Oil production (MBbl) 156 128
Natural gas production (MMcf) 118 125
Equivalent production (MBOE) 176 149
Prices
Average oil price per Bbl $57.42 $43.49
Average natural gas price per Mcf 6.12 6.17
Average equivalent price per BOE 55.11 42.59
March 31, December 31,
2006 2005
------------------
SELECTED BALANCE SHEET INFORMATION
Cash and cash equivalents $78,264 $92,507
Total assets 265,165 263,180
Long-term liabilities 104,278 104,739
Stockholders' equity 136,787 134,244
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