LAFAYETTE, La., May 8 /PRNewswire-FirstCall/ -- PetroQuest Energy, Inc.
(Nasdaq:
PQUE
-
News) announced
today net income for the quarter ended March 31, 2003 of $2,993,000
or $0.07 per share, as compared to first quarter 2002 net
loss of $364,000 or $(0.01) per share. First quarter 2003
net income includes an after-tax gain of $849,000 for the
cumulative effect of a change in accounting principle related
to the adoption of Statement of Accounting Standards No. 143,
"Accounting For Asset Retirement Obligations." Net cash flow
provided by operating activities for the first quarter of
2003 was $6,688,000, as compared to $4,067,000 for the comparable
2002 period. Net cash flow provided by operating activities
before working capital changes for the first quarter of 2003
was $12,002,000, as compared to $6,745,000 for the comparable
2002 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 2003 increased
54% to $16,154,000 as compared to the first quarter of 2002.
This increase is the result of higher product prices. Stated
on a Mcfe basis, unit prices received during the first quarter
of 2003 were 94% higher than the prices received during
the comparable 2002 period.
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, 2003 and 2002:
Three Months Ended
March 31,
2003 2002
Production:
Oil (Bbls) 234,830 234,508
Gas (Mcf) 1,606,318 2,384,964
Total Production (Mcfe) 3,015,298 3,792,012
Sales:
Total Oil Sales $7,235,119 $4,853,441
Total Gas Sales $8,918,569 $5,655,498
Average sales prices:
Oil (per Bbl) $30.81 $20.70
Gas (per Mcf) $5.55 $2.37
Per Mcfe $5.36 $2.77
The following initiates guidance for the second quarter of 2003:
Guidance for
Description 2nd Quarter 2003
Production volumes (MMcfe/d) 21 - 23
Percent gas 50%
Expenses:
Lease operating expenses (per Mcfe) $1.20 - $1.30
Production taxes (per Mcfe) $0.06 - $0.08
Depreciation, depletion and amortization (per Mcfe) $2.80 - $2.90
General and administrative (in millions) $1.2 - $1.4
Interest expense (in millions) $.100 - $.125
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 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,
2003 2002
Revenues:
Oil and gas sales $16,154 $10,509
Interest and other income (24) (12)
16,130 10,497
Expenses:
Lease operating expenses 2,762 2,349
Production taxes 210 202
Depreciation, depletion and amortization 8,473 7,094
General and administrative 1,223 1,200
Accretion of asset retirement obligation 140 ---
Interest expense 23 211
12,831 11,056
Income from operations 3,299 (559)
Income tax expense 1,155 (195)
Income (loss) before cumulative
effect of change in accounting principle $2,144 $(364)
Cumulative effect of change in
accounting principle 849 ---
Net income (loss) $2,993 $(364)
Earnings (loss) per common share:
Basic
Income (loss) before cumulative effect of
change in accounting principle $0.05 $(0.01)
Cumulative effect of change in
accounting principle 0.02 ---
Net income (loss) $0.07 $(0.01)
Diluted
Income (loss) before cumulative effect of
change in accounting principle $0.05 $(0.01)
Cumulative effect of change in
accounting principle 0.02 ---
Net income (loss) $0.07 $(0.01)
Weighted average number of common shares:
Basic 42,852 34,724
Diluted 44,168 34,724
PETROQUEST ENERGY, INC.
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)
Three Months Ended
March 31,
2003 2002
Net cash provided by operating activities $6,688 $4,067
Changes in working capital accounts 5,314 2,678
Net cash flow provided by operations
before working capital changes $12,002 $6,745
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.
