PetroQuest Energy, Inc. Announces First-Quarter Results

Production Increases 87% Year-Over-Year

LAFAYETTE, La.--(BUSINESS WIRE)--May 1, 2002--PetroQuest Energy, Inc. (Nasdaq:PQUE - news) announced today a net loss for the quarter ended March 31, 2002, of $364,000, or $(0.01) per share, as compared to first-quarter 2001 net income of $4,141,000, or $0.13 per share.

Net cash flow from operations before working capital changes for the first quarter of 2002 was $6,745,000, or $0.18 per share, as compared to $10,277,000, or $0.31 per share for the comparable 2001 period.

On a thousand cubic feet equivalent (Mcfe) basis, first-quarter 2002 production volumes equaled 3,792,012 Mcfe, an 87% increase over first-quarter 2001 production volumes of 2,024,958 Mcfe. This is primarily the result of the Company's 77% drilling success rate during 2001.

Oil and gas sales during the first quarter of 2002 decreased 15% to $10,509,000 as compared to the first quarter of 2001. This is the result of significantly lower product prices partially offset by the production increase discussed above. Stated on an Mcfe basis, unit prices received during the first quarter of 2002 were 55% lower than the prices received during the comparable 2001 period.

All inclusive cash costs (lease operating expenses, production taxes, cash general and administrative expense and interest expense) for the first quarter of 2002 decreased to $1.02 per Mcfe from $1.30 per Mcfe in the comparable period of 2001.

The following table sets forth certain information with respect to the oil and gas operations of the Company for the three-month periods ended March 31, 2002 and 2001. 

                                       Three Months Ended
                                             March 31,
                                     2002              2001
                                     ----              ----
Production:
 Oil (Bbls)                         234,508           139,080
 Gas (Mcf)                        2,384,964         1,190,478
 Total Production (Mcfe)          3,792,012         2,024,958

Sales:
 Total Oil Sales                $ 4,853,441       $ 3,894,810
 Total Gas Sales                $ 5,655,498       $ 8,450,214

Average sales prices:
 Oil (per Bbl)                  $     20.70       $     28.00
 Gas (per Mcf)                  $      2.37       $      7.10
 Per Mcfe                       $      2.77       $      6.10

The Company will hold its 2002 first-quarter earnings conference call on Wednesday, May 1, at 9:00 a.m. Central Daylight Time. To listen to the live webcast, please log on to the Company's website at www.petroquest.com and follow the webcast links.

The following initiates guidance for the second quarter of 2002 and updates guidance for the full year of 2002: 

                              Guidance for             Guidance for
Description                 2nd Quarter 2002               2002
-----------                 ----------------               ----

Production volumes (MMcfe/d)   42.5 - 44.0                44 - 47

Percent gas                        60%                      60%

Expenses:
 Lease operating expenses
  (per Mcfe)                   $.60 - $.65              $.60 - $.65
 Production taxes (per Mcfe)   $.05 - $.08              $.05 - $.08
 Depreciation, depletion and
  amortization (per Mcfe)     $1.70 - $1.80            $1.70 - $1.80
 General and administrative
  (in millions)                $1.3 - $1.5              $6.0 - $6.5
 Interest expense
  (in millions)               $.125 - $.175            $.900 - $1.100

Effective tax rate
 (all deferred)                    35%                      35%

PetroQuest Energy Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in the Gulf Coast Basin, both onshore and in shallow waters offshore.

This press release contains "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. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in estimating quantities of proved oil and natural gas reserves, in prospect development and property acquisitions and in projecting future rates of production, the timing of development expenditures and drilling of wells, and the operating hazards attendant to the oil and gas business. In particular, careful consideration should be given to cautionary statements made in the various reports PetroQuest has filed with the Securities and Exchange Commission. PetroQuest undertakes no duty to update or revise these forward-looking statements. 

                        PETROQUEST ENERGY, INC.
                 Consolidated Statements of Operations
             (Amounts In Thousands, Except Per-Share Data)

                                         Three Months Ended
                                             March 31,
                                         2002          2001
                                         ----          ----
                                            (unaudited)
Revenues:
 Oil and gas sales                     $10,509       $12,345
 Interest and other income                 (12)          208
                                        ------        ------
                                        10,497        12,553
                                        ------        ------
Expenses:
 Lease operating expenses                2,349         1,248
 Production taxes                          202           262
 Depreciation, depletion and
  amortization                           7,094         3,342
 General and administrative              1,200           661
 Interest expense                          211           466
                                        ------        ------
                                        11,056         5,979
                                        ------        ------

Income (loss) from operations             (559)        6,574

   Income tax expense (benefit)           (195)        2,433
                                        ------        ------

Net income (loss)                      $  (364)      $ 4,141
                                        ======        ======

Earnings per common share:
 Basic                                 $ (0.01)      $  0.14
                                        ======        ======
 Diluted                               $ (0.01)      $  0.13
                                        ======        ======

Weighted average common shares
 Basic                                  34,724        30,505
                                        ======        ======
 Diluted                                34,724        32,714
                                        ======        ======

Contact: 
     PetroQuest Energy, Inc., Lafayette
     Robert R. Brooksher, 337/232-7028

 

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