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PetroQuest Energy Announces First Quarter ResultsLAFAYETTE, La., May 9 /PRNewswire-FirstCall/ -- PetroQuest Energy, Inc. (Nasdaq: PQUE - News) announced today net income for the quarter ended March 31, 2005 of $4,187,000 or $0.09 per share, compared to first quarter 2004 net income of $3,172,000 or $0.07 per share. Net cash flow provided by operating activities before working capital changes for the first quarter of 2005 was $15,512,000, as compared to $13,470,000 for the comparable 2004 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 2005 increased 20% to $21,672,000 as compared to $18,133,000 in the first quarter of 2004. Production for the first quarter of 2005 was 3% higher than production for the comparable period of 2004. Stated on an Mcfe basis, unit prices received during the first quarter were 16% higher than the prices received during the comparable 2004 period. Lease operating expenses for the first quarter of 2005 were $1.16 per Mcfe as compared to $0.84 per Mcfe in the first quarter of 2004. In addition, depreciation, depletion and amortization on oil and gas properties for the first quarter of 2005 was essentially unchanged from the first quarter of 2004.
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,
2005 and 2004:
Three Months Ended
March 31,
2005 2004
Production:
Oil (Bbls) 181,399 178,479
Gas (Mcf) 2,249,113 2,161,740
Total Production (Mcfe) 3,337,507 3,232,614
Sales:
Total oil sales $7,872,569 $5,803,603
Total gas sales 13,798,937 12,328,973
Total oil and gas sales 21,671,506 18,132,576
Average sales prices:
(Including hedges)
Oil (per Bbl) $43.40 $32.52
Gas (per Mcf) 6.14 5.70
Per Mcfe 6.49 5.61
The following updates guidance for the second quarter of 2005:
Guidance for
Description 2nd Quarter 2005
Production volumes (MMcfe/d) 47 - 52
Percent gas 65%
Expenses:
Lease operating expenses (per Mcfe) $1.20 - $1.30
Production taxes (per Mcfe) $0.09 - $0.11
Depreciation, depletion and amortization (per Mcfe) $2.50 - $2.60
General and administrative (in millions) $1.55 - $1.65
Interest expense (in millions) $5.5 - $6.0 (A)
Effective tax rate (all deferred) 35%
(A) Includes a possible $3 million pre-tax, non-cash charge related to
the write-off of deferred financing costs if we repay borrowings
under our credit facilities as previously disclosed.
The following updates guidance for the year ended December 31, 2005:
Guidance for
Description Full year 2005
Production volumes (MMcfe/d) 52.0 - 57.5
Percent gas 70%
Expenses:
Lease operating expenses (per Mcfe) $1.00 - $1.10
Production taxes (per Mcfe) $0.12 - $0.14
Depreciation, depletion and amortization (per Mcfe) $2.50 - $2.60
General and administrative (in millions) $6 - $7
Interest expense (in millions) $13 - $14 (A)
Effective tax rate (all deferred) 35%
(A) Includes a possible $3 million pre-tax, non-cash charge related to
the write-off of deferred financing costs if we repay borrowings
under our credit facilities as previously disclosed.
About the Company
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, Texas and Oklahoma. PetroQuest trades on the Nasdaq National Market under the ticker symbol "PQUE". Forward-Looking Statements 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 Income
(unaudited)
(Amounts in Thousands, Except Per Share Data)
Three Months Ended
March 31,
2005 2004
Revenues:
Oil and gas sales $21,672 $18,133
Interest and other income 71 70
21,743 18,203
Expenses:
Lease operating expenses 3,882 2,722
Production taxes 374 444
Depreciation, depletion and amortization 8,195 7,942
General and administrative 1,689 1,294
Accretion of asset retirement obligation 200 231
Interest expense 962 681
Derivative expense --- 9
15,302 13,323
Income from operations 6,441 4,880
Income tax expense 2,254 1,708
Net income $4,187 $3,172
Earnings per common share:
Basic $0.09 $0.07
Diluted $0.09 $0.07
Weighted average number of common shares:
Basic 45,338 44,558
Diluted 47,475 45,721
PETROQUEST ENERGY, INC.
Consolidated Balance Sheets
(unaudited)
(Amounts in Thousands)
March 31, December 31,
2005 2004
ASSETS
Current assets:
Cash and cash equivalents $1,839 $1,529
Oil and gas revenue receivable 11,446 9,392
Joint interest billing receivable 9,708 3,655
Other current assets 1,605 1,017
Total current assets 24,598 15,593
Oil and gas properties:
Oil and gas properties, full cost method 387,322 363,756
Unevaluated oil and gas properties 17,385 16,380
Accumulated depreciation,
depletion and amortization (176,545) (168,453)
Oil and gas properties, net 228,162 211,683
Other assets, net of accumulated
depreciation and amortization
of $6,532 and $5,967, respectively 3,896 4,341
Total assets $256,656 $231,617
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable to vendors $25,098 $24,176
Advances from co-owners 7,508 2,265
Hedging liability 8,416 4,536
Other accrued liabilities 9,967 9,045
Total current liabilities 50,989 40,022
Long-term debt 51,000 38,500
Long-term hedging liability 2,847 1,974
Asset retirement obligation 14,090 15,238
Deferred income taxes 15,197 14,606
Commitments and contingencies --- ---
Stockholders' equity:
Common stock, $.001 par value;
authorized 75,000 shares; issued and
outstanding 46,270 and 44,685 shares,
respectively 46 45
Paid-in capital 112,545 112,387
Accumulated other comprehensive loss (7,321) (4,231)
Retained earnings 17,263 13,076
Total stockholders' equity 122,533 121,277
Total liabilities and stockholders' equity $256,656 $231,617
PETROQUEST ENERGY, INC.
Consolidated Statements of Cash Flows
(unaudited)
(Amounts in Thousands)
Three Months Ended
March 31,
2005 2004
Cash flows from operating activities:
Net income $4,187 $3,172
Adjustments to reconcile net income
to net cash provided by
operating activities:
Deferred tax expense 2,254 1,708
Depreciation, depletion and amortization 8,195 7,942
Accretion of asset retirement obligation 200 231
Amortization of debt issuance costs 463 409
Compensation expense 213 57
Derivative mark to market --- (49)
Changes in working capital accounts:
Accounts receivable (2,054) 1,124
Joint interest billing receivable (6,053) (568)
Other assets (625) (221)
Accounts payable and accrued liabilities (584) (3,997)
Advances from co-owners 5,243 646
Net cash provided by operating activities 11,439 10,454
Cash flows from investing activities:
Investment in oil and gas properties (23,673) (8,313)
Net cash used in investing activities (23,673) (8,313)
Cash flows from financing activities:
Proceeds from exercise of options 127 64
Deferred financing costs (83) (234)
Proceeds from borrowings 12,500 4,000
Repayment of debt --- (5,500)
Net cash provided by (used in) financing
activities 12,544 (1,670)
Net increase in cash and cash equivalents 310 471
Cash balance and cash equivalents,
beginning of period 1,529 779
Cash balance and cash equivalents,
end of period $1,839 $1,250
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $679 $379
Income taxes $--- $---
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)
Three Months Ended
March 31,
2005 2004
Net cash flow provided by operating
activities $11,439 $10,454
Changes in working capital accounts 4,073 3,016
Net cash flow provided by operating
activities before working capital changes $15,512 $13,470
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.
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