DALLAS, Nov. 6 /PRNewswire/ -- Remington Oil and Gas Corporation (Nasdaq: ROIL; PCX: REM.P) announced earnings for the third quarter of 2001 of $383,000 or $0.02 per basic share and $0.02 per diluted share. Production for the quarter increased 42% over the third quarter of 2000 to 7.2 Bcfe. The following table highlights the unaudited results of the third quarter and first nine months of 2001 compared to 2000:
Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, except volumes and per share data)
2001 2000 2001 2000
Revenues $22,757 $35,509 $96,926 $71,566
Net income $383 $22,704 $16,280 $34,248
Basic income per share $0.02 $1.06 $0.75 $1.60
Diluted income per share $0.02 $0.99 $0.68 $1.53
EBITDAX* $17,185 $17,297 $68,290 $41,500
Production Bcfe 7.2 5.1 21.6 15.1
*Earnings Before Interest, Taxes, Depreciation, Amortization and
Exploration
Net income decreased during the three and nine months ended September 30, 2001, primarily because of lower oil and gas prices, and increased exploration expenses including dry hole costs. We sold certain South Texas properties during the third quarter of 2000 recognizing a non-recurring gain of $12.5 million. In addition, net income for the nine months ended September 30, 2001, is lower because of the one time pre-tax charge of $13.5 million in connection with the settlement of the Phillips litigation in May 2001 and $7.9 million of income tax liability.
Gas sales revenues increased by 17% during the third quarter of 2001 and by 124% for the nine months ended September 30, 2001, when compared to the same periods in the prior year attributable to a 70% increase in gas production for both periods. Average gas prices for the nine months ended September 30, 2001, were $1.09 higher than for the nine months ended September 30, 2000. However, for the third quarter of 2001 lower average prices partially offset revenue from increased production.
Oil sales revenue decreased by 21% and 8% for the three and nine months ended September 30, 2001 compared to the same periods in the prior year because of lower average prices and slightly lower oil production.
Operating costs including transportation and net profits expense for the third quarter of 2001 were $0.67 per Mcfe compared to $0.47 per Mcfe in 2000 and for the nine months ended September 30, 2001 were $0.54 per Mcfe compared to $0.56 per Mcfe in 2000. The increase in operating expenses per Mcfe during the third quarter of 2001 is primarily due to a successful repair of a tubing leak at our East Cameron 344 #A-2 well, at a cost of $1.1 million.
Higher dry hole costs and new proprietary onshore Mississippi 3-D seismic purchases were the primary reasons for increased exploration expenses for the third quarter and first nine months of 2001 compared to the prior year. Depreciation, depletion, and amortization were $1.30 per Mcfe for the third quarter of 2001 and $1.28 per Mcfe for the first nine 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 recorded a one time pre-tax charge of $13.5 million as additional settlement expense. During the prior year we reached settlements with the Minerals Management Service concerning royalties due on offshore Gulf of Mexico properties.
Lower interest rates applicable to our outstanding debt and the fact that we are no longer accruing interest on the Phillips judgment decreased interest and financing costs during the three and nine months ended September 30, 2001, compared to the same periods in the prior year. During the first nine months of 2001 we recorded income tax expense totaling $7.9 million, all of which we estimate is deferred.
James A. Watt, President and Chief Executive Officer said, "We will continue to concentrate on maintaining a low controllable cost structure to accommodate fluctuations in commodity prices and will aggressively pursue new exploration opportunities to add value for our shareholders." |
