beat the street
Announces First Quarter 2001 Earnings of $14.7 Million
PR NEWSWIRE - May 07, 2001 11:49
DALLAS, May 7, 2001 /PRNewswire via COMTEX/ -- Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) announced the following first quarter financial information:
Three Months Ended March 31, 2001 2000 (In thousands, except volumes and per share data)
Revenues $39,988 $16,442
Net income $14,657 $3,784
Basic income per share $0.68 $0.18
Diluted income per share $0.60 $0.18
EBITDAX $35,604 $12,717
Production (Bcfe) 7.0 4.9
Total revenues, net income, and EBITDAX during the first quarter of 2001 increased dramatically because of higher production from new discoveries and higher average oil and gas prices. Gas volumes were up 65% from the first quarter of 2000, and gas prices increased 126% resulting in a 272% increase in gas revenue to $31.2 million. Oil volumes were up 4% from the first quarter of 2000, and oil prices increased 3% resulting in a 7% increase in oil revenue to $8 million.
Operating costs including transportation and net profits expense were $0.43 per Mcfe compared to $0.49 per Mcfe in 2000. Exploration expenses increased primarily because we purchased additional 3-D seismic data during the first quarter of 2001. Depreciation, depletion, and amortization were $1.25 per Mcfe, reflecting our low finding costs over the last several years. General and administrative expenses including legal fees did not change significantly.
In June 1999, the Board of Directors approved a contingent stock grant to our employees and directors. In order for the grant to be effective, the price of our common stock had to increase from $4.19 per share and close at or above $10.42 per share for 20 consecutive trading days. The required increase in the stock price represented the equivalent of a compounded annual rate of return of 20% for five years. Recipients of the grant must remain an employee or director during the vesting schedules (one through five years) in order to receive the shares. When the stock grant became effective, we recorded $8.1 million as restricted common stock, $5.7 million as unearned compensation reported as a separate reduction in stockholders' equity on the balance sheet, and $2.4 million as stock based compensation expense. The $5.7 million unearned compensation expense will be amortized quarterly over the next five years as the shares vest.
Interest and financing costs increased to $1.3 million from $1.0 million due to increased weighted average rates and an increase in the total debt outstanding. Since the end of the quarter the total bank debt has been reduced to a current level of $24.5 million from 27.4 million at the end of the quarter. During the first quarter of 2001, we recorded income tax expense totaling $7.0 million, of which an estimated $6.3 million is deferred. We began to record this expense during this quarter after we fully utilized our net deferred income tax benefit.
At the end of the first quarter, our cash and cash equivalents balance was $44.4 million including $9 million collateral for the $20.4 million bond for the Phillips litigation. This is an increase of $14.7 million over year-end 2000.
James A. Watt, President and Chief Executive Officer said, "This has been an excellent quarter both from an operational and financial perspective. We will continue to focus on keeping our cost structure low while investing our cash flow in new opportunities to economically grow our reserves and continue to increase shareholder value."
James A. Watt, President and CEO, will host a conference call and webcast on Tuesday, May 8, 2001, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). The webcast and slide presentation can be accessed at www.remoil.net. The teleconference can be joined at 1-877-548-0717. This event will last approximately 30 minutes. The webcast will be available for one week following the event. A replay of the call will be available for 48 hours by dialing 1-800-642-1687, conference code 48807. |
