LAFAYETTE, La., July 30 /PRNewswire-FirstCall/ -- PetroQuest Energy,
Inc. (Nasdaq:
PQUE
-
News) announced today
a net loss for the quarter ended June 30, 2003 of $1,698,000 or $(0.04)
per share, compared to second quarter 2002 net income of $255,000
or $0.01 per share. Net cash flow provided by operating activities
for the second quarter of 2003 was $6,363,000 as compared to $10,101,000
for the comparable 2002 period. Net cash flow provided by operating
activities before working capital changes for the second quarter of
2003 was $5,046,000, as compared to $7,390,000 for the comparable
2002 period. For the first six months of 2003, the Company reported
net income of $1,295,000 or $0.03 per share. Net income for the first
six months of 2003 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." The Company reported a net loss
of $109,000 or $0.00 per share for the first six months of 2002. For
the first six months of 2003, net cash flow provided by operating
activities was $13,051,000 and net cash flow provided by operating
activities before working capital changes was $17,048,000. Net cash
flow provided by operating activities and net cash flow provided by
operating activities before working capital changes for the first
six months of 2002 were $14,168,000 and $14,135,000, respectively.
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 second quarter of 2003 decreased 20%
to $9,060,000 as compared to $11,357,000 in the second quarter of
2002. For the first six months of 2003, sales increased 15% to $25,214,000
from $21,866,000 in the first six months of 2002. Stated on an Mcfe
basis, unit prices received during the second quarter and first
six months of 2003 were 32% and 63% higher, respectively, than the
prices received during the comparable 2002 periods.
The following table sets forth certain information with respect
to the oil and gas operations of the Company for the three and six-month
periods ended June 30, 2003 and 2002:
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Production:
Oil (Bbls) 183,034 217,126 417,864 451,634
Gas (Mcf) 845,931 1,916,825 2,452,248 4,301,791
Total Production
(Mcfe) 1,944,135 3,219,581 4,959,432 7,011,595
Sales:
Total oil sales $5,013,976 $5,539,229 $12,249,095 $10,392,670
Total gas sales $4,046,220 $5,817,365 $12,964,789 $11,472,862
Average sales prices:
Oil (per Bbl) $27.39 $25.51 $29.31 $23.01
Gas (per Mcf) $4.78 $3.03 $5.29 $2.67
Per Mcfe $4.66 $3.53 $5.08 $3.12
The following initiates guidance for the third quarter of 2003:
Guidance for
Description 3rd Quarter 2003
Production volumes (MMcfe/d) 19.5-21.5
Percent gas 50%
Expenses:
Lease operating expenses (per Mcfe) $1.25-$1.35
Production taxes (per Mcfe) $0.12-$0.13
Depreciation, depletion and
amortization (per Mcfe) $2.95-$3.05
General and administrative (in millions) $1.10-$1.30
Interest expense (in millions) $.075-$1.00
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
(unaudited)
(Amounts In Thousands, Except Per Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Revenues:
Oil and gas sales $9,060 $11,357 $25,214 $21,866
Interest and other income 41 15 52 36
9,101 11,372 25,266 21,902
Expenses:
Lease operating expenses 2,504 2,404 5,266 4,752
Production taxes 125 120 335 322
Depreciation, depletion and
amortization 5,878 6,627 14,351 13,722
General and administrative 1,126 1,542 2,348 2,743
Accretion of asset retirement
obligation 136 --- 276 ---
Interest expense 230 17 254 227
Derivative effects 1,714 270 1,749 304
11,713 10,980 24,579 22,070
Income (loss) from operations (2,612) 392 687 (168)
Income tax expense (benefit) (914) 137 241 (59)
Income (loss) before cumulative effect
of change in accounting principle $(1,698) $255 $446 $(109)
Cumulative effect of change in
accounting principle --- --- 849 ---
Net income (loss) $(1,698) $255 $1,295 $(109)
Earnings (loss) per common share:
Basic
Income (loss) before cumulative
effect of change in accounting
principle $(0.04) $0.01 $0.01 $---
Cumulative effect of change in
accounting principle --- --- 0.02 ---
Net income (loss) $(0.04) $0.01 $0.03 $---
Diluted
Income (loss) before cumulative
effect of change in accounting
principle $(0.04) $0.01 $0.01 $---
Cumulative effect of change in
accounting principle --- --- 0.02 ---
Net income (loss) $(0.04) $0.01 $0.03 $---
Weighted average number of common
shares:
Basic 42,895 37,883 42,874 36,287
Diluted 42,895 40,188 43,880 36,287
PETROQUEST ENERGY, INC.
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Net cash flow provided by operating
activities $6,363 $10,101 $13,051 $14,168
Changes in working capital accounts (1,317) (2,711) 3,997 (33)
Net cash flow provided by operations
before working capital changes $5,046 $7,390 $17,048 $14,135
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.
