PetroQuest Energy, Inc. Announces 2000 Year-End and Fourth-Quarter Results Production, Net Income and Cash Flow Improve Significantly LAFAYETTE, La.--(BUSINESS WIRE)--March 6, 2001--PetroQuest Energy, Inc. (Nasdaq:PQUE - news) announced today net income for the quarter ended December 31, 2000, of $5,239,000 or $0.17 per share, an increase of 612% as compared to fourth-quarter 1999 net income of $736,000 or $0.03 per share. Net cash flow from operations before working capital changes for the fourth quarter of 2000 increased to $6,914,000 or $ 0.22 per share, an increase of 222% as compared to $2,150,000 or $0.10 per share for the comparable 1999 period. For the year ended December 31, 2000, net income was $9,924,000 or $0.35 per share and net cash flow from operations before working capital changes totaled $15,702,000 or $0.56 per share. Net loss and net cash flow from operations before working capital changes for the year ended December 31, 1999, were $(310,000) or $(0.01) per share, and $4,162,000 or $0.19 per share, respectively. Net income for the quarter and year ended December 31, 2000, included a non-cash deferred tax benefit of $850,000 from the reversal of a tax asset valuation allowance that had been previously provided. On a thousand cubic feet equivalent (Mcfe) basis, fourth-quarter 2000 production volumes equaled 1,580,000 Mcfe, a 33% increase over fourth-quarter 1999 production volumes. For the year ended December 31, 2000, production volumes increased from 3,459,000 Mcfe in 1999 to 4,948,000 Mcfe or 43%. This is the result of the Company's successful exploration program, which added six wells to production since the fourth quarter of 1999. Currently, the Company's average net daily production is approximately 25 million cubic feet of gas equivalent per day. Oil and gas sales during the fourth quarter of 2000 increased 190% to $9,330,000 as compared to the fourth quarter of 1999. For the year ended December 31, 2000, sales increased 161% to $22,267,000 from $8,516,000 for the year ended December 31, 1999. In addition to the production increases discussed above, product prices increased significantly. Prices received during the fourth quarter of 2000 averaged $30.14 per barrel of oil and $6.11 per Mcf of gas, as compared to averages of $24.61 per barrel and $2.47 per Mcf received in the 1999 period. For the year ended December 31, 2000, prices averaged $29.94 per barrel of oil and $4.38 per Mcf of gas, as compared to $18.45 per barrel and $2.33 per Mcf received in the same period of 1999. Stated on a Mcfe basis, unit prices received during the fourth quarter and year ended December 31, 2000, were 118% and 83% higher, respectively, than the prices received during the comparable 1999 periods. ``PetroQuest has experienced significantly improved operating results in the year 2000. We have seen meaningful increases in production, revenue, cash flow, net income and related per-share amounts,'' said Charles Goodson, PetroQuest's Chairman and Chief Executive Officer. ``We expect to continue these operating results through 2001. Our budget for direct capital expenditures for new projects in 2001 is approximately $45,000,000. This represents twenty-one projects exposing the Company to 200 Bcfe of net unrisked reserve potential. ``The Jaguar Prospect at Eugene Island Block 147 is scheduled to begin producing early in the second quarter at approximately 4,500-5,000 Mcfe per day net to the Company. From the Ship Shoal 72 Field, we plan to add approximately 7,000 Mcfe per day in the second quarter and approximately 7,000 Mcfe per day in the third quarter net to the Company from our development opportunities. From an exploration standpoint, the well at our Tiger Prospect in the Valentine Field is currently drilling and is expected to be followed by a minimum of three additional wells in this field this year. The CL&F no. 16 in the Turtle Bayou Field is expected to begin drilling in the second quarter.'' The following table sets forth certain information with respect to the oil and gas operations of the Company for the three-month periods and years ended December 31, 2000, and 1999. Three Months Ended Twelve Months Ended December 31, December 31, 2000 1999 2000 1999 ---- ---- ---- ---- Production: Oil (Bbls) 50,016 29,655 160,631 104,761 Gas (Mcf) 1,279,731 1,009,029 3,984,461 2,830,803 Total Production (Mcfe) 1,579,826 1,186,957 4,948,246 3,459,369 Sales: Total Oil Sales $1,507,486 $ 729,890 $4,809,382 $1,933,192 Total Gas Sales $7,822,169 $2,490,885 $17,457,307 $6,583,026 Average sales prices: Oil (per Bbl) $30.14 $24.61 $29.94 $18.45 Gas (per Mcf) $ 6.11 $ 2.47 $ 4.38 $ 2.33 Per Mcfe $ 5.91 $ 2.71 $ 4.50 $ 2.46 PetroQuest Energy, Inc. is an independent oil and gas exploration and production company primarily focused on growing its reserves and shareholder value through a combination of drilling development locations and high-potential exploration prospects along the coast of and in the Gulf of Mexico. This press release includes certain statements that may be deemed to be ``forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future, including drilling of wells, reserve estimates, future production of oil and gas, future cash flows and other such matters are forward-looking statements. Such forward-looking statements are subject to certain risks, uncertainties and other factors, which could cause actual results to differ materially from those currently anticipated. These factors include, without limitation, uncertainties inherent in estimating proven oil and gas reserves, future rates of production and timing of development expenditures; results of exploratory and development drilling; operating hazards attendant to the oil and gas business; the successful identification, acquisition and development of properties; and changes in the price received for oil and/or gas which may effect results of operations and cash flows. Readers are cautioned that any such statements are not guarantees of future performance and the company can give no assurances that actual results or developments will not differ materially from those projected in the forward-looking statements. PETROQUEST ENERGY, INC. Consolidated Statements of Operations (amounts in thousands, except per-share amounts) Three Months Ended Twelve Months Ended December 31, December 31, 2000 1999 2000 1999 ---- ---- ---- ---- (unaudited) Revenues: Oil and gas sales $ 9,330 $ 3,221 $ 22,267 $ 8,516 Interest income 90 32 294 91 ------ ------ ------ ------ 9,420 3,253 22,561 8,607 ------ ------ ------ ------ Expenses: Lease operating expenses 994 861 2,831 2,638 Production taxes 318 144 944 406 Depreciation, depletion and amortization 2,399 1,414 6,386 4,472 General and administrative 1,255 570 3,248 1,625 Revenue in dispute - (145) - (145) Interest expense 65 (305) 78 - Other Income - (22) - (79) ------ ------ ------ ------ 5,031 2,517 13,487 8,917 ------ ------ ------ ------ Income (loss) from operations 4,389 736 9,074 (310) Deferred income tax benefit 850 - 850 - ------ ------ ------ ------ Net income (loss) $5,239 $ 736 $9,924 $(310) ====== ====== ====== ====== Earnings per common share: Basic $ 0.17 $ 0.03 $ 0.37 $ (0.01) ====== ====== ====== ====== Diluted $ 0.17 $ 0.03 $ 0.35 $ (0.01) ====== ====== ====== ====== Weighted average common shares: Basic 30,126 21,486 26,919 21,528 Diluted 31,498 21,774 28,249 21,528 Contact: PetroQuest Energy, Inc., Lafayette Robert R. Brooksher, 337/232-7028