DALLAS, Aug. 1 /PRNewswire/ -- Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) announced earnings for the second quarter of 2001 of $10.0 million or $0.46 per primary share and $0.41 per diluted share, excluding the $13.5 million pre-tax charge for final settlement of the long-standing litigation with Phillips Petroleum Company. Earnings including the Phillips settlement were $1.2 million or $0.06 per primary share and $0.05 per diluted share. Production for the quarter increased to 7.3 Bcfe or a 43% increase over the second quarter of 2000 and a 4% sequential increase over the first quarter of 2001. The following table highlights the results of the first half:
Three Months Ended Six Months Ended
June 30, June 30,
(In thousands, except volumes and
per share data)
2001 2000 2001 2000
Revenues $34,181 $19,617 $74,169 $36,057
Income excluding Phillips
Settlement $10,031 $7,759 $24,688 $11,543
Net income $1,241 $7,759 $15,898 $11,543
Basic income per share $0.06 $0.36 $0.73 $0.54
Diluted income per share $0.05 $0.35 $0.66 $0.53
EBITDAX* excluding Phillips
Settlement $28,929 $14,615 $64,534 $24,115
EBITDAX* $15,405 $14,615 $51,010 $24,115
*Earnings Before Interest,
Taxes, Depreciation,
Amortization and
Exploration
Production Bcfe 7.3 5.1 14.4 10.0
Excluding the Phillips Settlement, EBITDAX was $28.9 million or $1.33 per share (basic) and $1.18 per share (diluted) for the second quarter and $64.5 million or $2.98 per share (basic) and $2.64 per share (diluted) for the first six months of 2001.
Gas production for the second quarter of 2001 increased by 73% compared to the second quarter of 2000, and gas production for the first six months of 2001 increased by 69% compared to the same period in the prior year. The increased production added $10.9 and $23.2 million to gas revenues, respectively. Gas prices for the three and six months ended June 30, 2001 increased by 40% and by 78% compared to the three and six months ended June 30, 2000. Both oil production and oil prices decreased slightly during 2001 compared to 2000.
Operating costs including transportation and net profits expense for the second quarter of 2001 were $0.50 per Mcfe compared to $0.72 per Mcfe in 2000 and for the six months ended June 30, 2001 were $0.47 per Mcfe compared to $0.60 per Mcfe in 2000. Exploration expenses for the second quarter and first half of 2001 increased because we purchased additional 3-D seismic data and incurred higher dry hole costs than in the prior year. Depreciation, depletion, and amortization were $1.29 per Mcfe for the second quarter of 2001 and $1.27 per Mcfe for the first six months of 2001, reflecting our low finding costs over the last several years.
On May 22, 2001, we settled the long-standing litigation with Phillips Petroleum Company and acquired Phillips' Net Profits Interest in South Pass block 89, offshore Louisiana. We paid $21.25 million cash and issued 1,189,344 shares of our common stock as consideration for the settlement and acquisition of the net profits interest. Of the total $42.5 million settlement, we had previously recorded $20.2 million as an accrued liability. We recorded $12.3 of the remaining $22.3 million as additional settlement expense and capitalized $10.0 million as the cost for our purchase of the net profits interest. In addition, we charged the remaining $1.2 million deferred net profits expense related to a royalty settlement in 2000 to the settlement expense, bringing the total charges for the Phillips settlement to $13.5 million. Except for 33,900 shares sold in the open market by Phillips, the 1,189,344 shares issued to Phillips are considered temporary equity and not counted in any per-share calculations. To date we have purchased 600,000 of the shares issued to Phillips. If the stock price remains below $17.867 per share, we expect to purchase the remaining shares issued to Phillips by the end of the third quarter.
Interest and financing costs decreased during the second quarter of 2001 compared to 2000 because of lower average debt outstanding during the second quarter of 2001. Interest and financing expense for the first six months of 2001 did not increase significantly. During the first half of 2001, we recorded income tax expense totaling $7.7 million, of which an estimated $7.1 million is deferred. We began to record this expense during this year after we fully utilized our net deferred income tax benefit.
James A. Watt, President and Chief Executive Officer said, "Production volumes continue to increase from recent discoveries. We are actively developing several new discoveries that will add new volumes in 2002. In spite of the recent commodity price decreases, we will continue our cost effective exploration program in the offshore to continue to enhance shareholder value." |
