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PetroQuest Energy Announces Third Quarter ResultsLAFAYETTE, La., Nov. 6 /PRNewswire-FirstCall/ -- PetroQuest Energy, Inc
(Nasdaq: PQUE
- News) announced today
net income for the quarter ended September 30, 2003 of $229,000 or
$0.01 per share, compared to third quarter 2002 net income of $950,000
or $0.02 per share. Net cash flow provided by operating activities
for the third quarter of 2003 was $3,817,000 as compared to $12,557,000
for the comparable 2002 period. Net cash flow provided by operating
activities before working capital changes for the third quarter of
2003 was $5,788,000, as compared to $7,694,000 for the comparable
2002 period. For the first nine months of 2003, the Company reported
net income of $1,524,000 or $0.03 per share. Net income for the first
nine 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 net income
of $841,000 or $0.02 per share for the first nine months of 2002.
For the first nine months of 2003, net cash flow provided by operating
activities was $16,868,000 and net cash flow provided by operating
activities before working capital changes was $22,836,000. Net cash
flow provided by operating activities and net cash flow provided by
operating activities before working capital changes for the first
nine months of 2002 were $26,725,000 and $21,829,000, 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 third quarter of 2003 decreased 13% to $9,800,000 as compared to $11,220,000 in the third quarter of 2002. For the first nine months of 2003, sales increased 6% to $35,014,000 from $33,085,000 in the first nine months of 2002. Stated on an Mcfe basis, unit prices received during the third quarter and first nine months of 2003 were 24% and 49% higher, respectively, than the prices received during the comparable 2002 periods. During the third quarter the well at the Company's East Cameron 222 Knight Prospect (24% net revenue interest) began producing and is currently at a gross rate of approximately 10,000 Mcfe per day. In addition, PetroQuest drilled wells at its Pinot Grigio, Trout and Riesling Prospects. Pinot Grigio, located in Ship Shoal 72 Field, (46% net revenue interest) began producing in October and is currently at a gross rate of approximately 11,000 Mcfe per day. The Trout Prospect well, located in Terrebonne Parish, (29% net revenue interest) began producing last week at a gross rate of approximately 4,500 Mcfe per day and is expected to move up to approximately 10,000 Mcfe per day. The well at the Riesling Prospect, located in Ship Shoal 72 Field, (47% net revenue interest) is expected to begin production in the next several days and reach a gross rate of approximately 3,000 Mcfe per day. The following table sets forth certain information with respect to the oil and gas operations of the Company for the three and nine-month periods ended September 30, 2003 and 2002: Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Production:
Oil (Bbls) 166,385 237,167 584,249 688,801
Gas (Mcf) 1,031,679 1,461,924 3,483,927 5,763,714
Total Production
(Mcfe) 2,029,989 2,884,923 6,989,421 9,896,520
Sales:
Total oil sales $4,552,094 $6,339,813 $16,801,189 $16,732,483
Total gas sales $5,247,711 $4,879,750 $18,212,501 $16,352,614
Average sales prices:
Oil (per Bbl) $27.36 $26.73 $28.76 $24.29
Gas (per Mcf) $5.09 $3.34 $5.23 $2.84
Per Mcfe $4.83 $3.89 $5.01 $3.36
The following initiates guidance for the fourth quarter of 2003:
Guidance for
Description 4th Quarter 2003
Production volumes (MMcfe/d) 21.5-23.5
Percent gas 60%
Expenses:
Lease operating expenses (per Mcfe) $1.15-$1.25
Production taxes (per Mcfe) $0.11-$0.12
Depreciation, depletion and
amortization (per Mcfe) $2.90-$3.00
General and administrative (in millions) $1.15-$1.35
Interest expense (in millions) $0.075-$0.100
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 Nine Months
Ended Ended
September 30, September 30,
2003 2002 2003 2002
Revenues:
Oil and gas sales $9,800 $11,220 $35,014 $33,085
Interest and other income 57 30 108 68
9,857 11,250 35,122 33,153
Expenses:
Lease operating expenses 2,235 2,487 7,501 7,240
Production taxes 289 119 623 441
Depreciation, depletion and
amortization 6,197 5,916 20,549 19,638
General and administrative 1,171 1,016 3,519 3,758
Accretion of asset retirement
obligation 169 --- 445 ---
Interest expense 30 25 283 252
Derivative expense (586) 226 1,163 530
9,505 9,789 34,083 31,859
Income from operations 352 1,461 1,039 1,294
Income tax expense 123 511 364 453
Income before cumulative effect of
change in accounting principle $229 $950 $675 $841
Cumulative effect of change in
accounting principle --- --- 849 ---
Net income $229 $950 $1,524 $841
Earnings per common share:
Basic
Income before cumulative effect
of change in accounting
principle $0.01 $0.03 $0.02 $0.02
Cumulative effect of change in
accounting principle --- --- 0.02 ---
Net income $0.01 $0.03 $0.04 $0.02
Diluted
Income before cumulative effect
of change in accounting
principle $0.01 $0.02 $0.01 $0.02
Cumulative effect of change in
accounting principle --- --- 0.02 ---
Net income $0.01 $0.02 $0.03 $0.02
Weighted average number of common
shares:
Basic 44,333 37,852 43,366 36,815
Diluted 44,729 39,820 44,167 38,575
PETROQUEST ENERGY, INC.
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)
Three Months Nine Months
Ended Ended
September 30, September 30,
2003 2002 2003 2002
Net cash flow provided by operating
activities $3,817 $12,557 $16,868 $26,725
Changes in working capital accounts 1,971 (4,863) 5,968 (4,896)
Net cash flow provided by operations
before working capital changes $5,788 $7,694 $22,836 $21,829
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. |
