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PetroQuest Energy, Inc. Announces First Quarter ResultsThursday May 6, 8:00 am ET
LAFAYETTE, La., May 6 /PRNewswire-FirstCall/ -- PetroQuest Energy, Inc.
(Nasdaq: PQUE
- News) announced
today net income for the quarter ended March 31, 2004 of $3,172,000
or $0.07 per share, as compared to first quarter 2003 net income of
$2,933,000 or $0.07 per share. First quarter 2003 net income included
an after-tax gain of $849,000 for the cumulative effect of a change
in accounting principle related to the adoption of Statement of Financial
Accounting Standards No. 143, "Accounting For Asset Retirement Obligations."
Net cash flow provided by operating activities before working capital
changes for the first quarter of 2004 was $13,470,000, as compared
to $12,002,000 for the comparable 2003 period. See the attached schedule
for a reconciliation of net cash flow provided by operating activities
to net cash flow provided by operating activities before working capital
changes.
Oil and gas sales during the first quarter of 2004 increased 12% to $18,133,000 as compared to the first quarter of 2003. This increase is the result of both higher production and product prices. Production for the first quarter of 2004 increased 7% over production for the first quarter of 2003. Stated on a Mcfe basis, unit prices received during the first quarter of 2004 were 5% higher than the prices received during the comparable 2003 period. Lease operating expenses for the first quarter of 2004 decreased 9% to $0.84 per Mcfe from $0.92 per Mcfe in the first quarter of 2003. In addition, depreciation, depletion and amortization in the first quarter of 2004 decreased 12% to $2.46 per Mcfe, as compared to $2.81 per Mcfe in the first quarter of 2003. Drilling activity during the quarter included wells at the Andouille, Eagle and Tasso prospects. The well at the Company's Andouille Prospect, located at East Cameron 222, has been drilled to a total depth of 7,100 feet. It logged 79 feet (TVD) of net productive sands. The platform is under construction and should be ready for completion of the well in August. First production is planned for late August at an anticipated gross rate of 7,500 Mcfe per day. PetroQuest has an approximate 55% net revenue interest in this well. The second well at the Eagle Prospect, located at Main Pass 72, has been drilled and completed. It reached a total depth of 10,800 feet and encountered 67 feet (TVD) of net productive sands. The well began producing in late April and is currently producing at a gross rate of approximately 7,800 Mcfe per day. The Company has an approximate 49% net revenue interest in this well. At its approximate 7.5% net revenue interest owned Tasso Prospect at High Island 201, the Company has drilled to a total depth of 12,700 feet encountering 100+ feet (TVD) of net productive sands. The well is expected to begin producing in October at an anticipated gross rate of approximately 20,000 Mcfe per day. In addition, the flow line has been completed for the discovery at the Dolcetto Prospect in the Ship Shoal 72 Field. It began producing in mid-April at a gross rate of 8,000 Mcfe per day. The Company has an approximate 45% net revenue interest in this well. 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, 2004 and 2003: Three Months Ended
March 31,
2004 2003
Production:
Oil (Bbls) 178,479 234,830
Gas (Mcf) 2,161,740 1,606,318
Total Production (Mcfe) 3,232,614 3,015,298
Sales:
Total Oil Sales $5,803,603 $7,235,119
Total Gas Sales $12,328,973 $8,918,569
Total Oil and Gas Sales $18,132,576 $16,153,688
Average sales prices:
(Including hedging effects)
Oil (per Bbl) $32.52 $30.81
Gas (per Mcf) $5.70 $5.55
Per Mcfe $5.61 $5.36
The following initiates guidance for the second quarter of 2004:
Guidance for
Description 2nd Quarter 2004
Production volumes (MMcfe/d) 35.5 - 37.5
Percent gas 60%
Expenses:
Lease operating expenses (per Mcfe) $0.75 - $0.85
Production taxes (per Mcfe) $0.10 - $0.12
Depreciation, depletion and amortization (per Mcfe) $2.40 - $2.50
General and administrative (in millions) $1.25 - $1.45
Interest expense (in millions) $0.75 - $0.85
Effective tax rate (all deferred) 35%
PetroQuest Energy, Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in East Texas, South Louisiana and the shallow waters of the Gulf of Mexico. 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,
2004 2003
Revenues:
Oil and gas sales $18,133 $16,154
Interest and other income 70 11
18,203 16,165
Expenses:
Lease operating expenses 2,722 2,762
Production taxes 444 210
Depreciation, depletion and amortization 7,942 8,473
General and administrative 1,294 1,223
Accretion of asset retirement obligation 231 140
Interest expense 681 23
Derivative expense 9 35
13,323 12,866
Income from operations 4,880 3,299
Income tax expense 1,708 1,155
Income before cumulative effect of change
in accounting principle $3,172 $2,144
Cumulative effect of change in accounting
principle --- 849
Net income $3,172 $2,993
Earnings per common share:
Basic
Income before cumulative effect of
change in accounting principle $0.07 $0.05
Cumulative effect of change in
accounting principle --- 0.02
Net income $0.07 $0.07
Diluted
Income before cumulative effect of
change in accounting principle $0.07 $0.05
Cumulative effect of change in
accounting principle --- 0.02
Net income $0.07 $0.07
Weighted average number of common shares:
Basic 44,558 42,852
Diluted 45,721 44,168
PETROQUEST ENERGY, INC.
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)
Three Months Ended
March 31,
2004 2003
Net cash provided by operating activities $10,220 $6,688
Changes in working capital accounts 3,250 5,314
Net cash flow provided by operations
before working capital changes $13,470 $12,002
Note: Management believes that net cash flow provided by operating
activities before working capital changes is relevant and useful
information, which is commonly used by analysts, investors and
other interested parties in the oil and gas industry as a
financial indicator of an oil and gas company's ability to
generate cash used to internally fund exploration and development
activities and to service debt. Net cash flow provided by
operating activities before working capital changes is not a
measure of financial performance prepared in accordance with
generally accepted accounting principles ("GAAP") and should not
be considered in isolation or as an alternative to net cash flow
provided by operating activities. In addition, since net cash
flow provided by operating activities before working capital
changes is not a term defined by GAAP, it might not be comparable
to similarly titled measures used by other companies.
Source: PetroQuest Energy, Inc.
Contact: PetroQuest Energy Inc. |
