Remington Oil and Gas Announces Financial Results for the Fourth Quarter And Full Year 2002
PR NEWSWIRE - March 24, 2003 18:27
DALLAS, Mar 24, 2003 /PRNewswire-FirstCall via COMTEX/ -- Remington Oil and Gas Corporation (NYSE: REM) announced the following fourth quarter and year to date total revenues and earnings:
Fourth Quarter Ended Years Ended
December 31, December 31,
2002 2001 2002 2001
Total revenues $27,434 $19,143 $104,186 $116,068
Net income (loss) $856 $(7,936) $11,332 $8,344
Basic net income (loss)
per share $0.03 $(0.35) $0.45 $0.38
Diluted income (loss)
per share $0.03 $(0.35) $0.42 $0.35
Cash flow provided by
operations before changes
in working capital accounts $21,819 $11,206 $76,359 $74,727
Production Bcfe 6.3 7.3 27.8 28.8
Total revenues for the fourth quarter of 2002 increased by $8.3 million or 43% primarily due to increased prices and increased oil production, partially offset by lower gas production. Total revenues for the full year in 2002 decreased by $11.9 million, or 10% due to lower gas revenues partially offset by higher oil revenues. Oil production from the Gulf of Mexico (which accounted for approximately 80% of total oil production) increased by 96,000 barrels, or 41%, during the fourth quarter and by 574,000 barrels or 71% during the full year of 2002 compared to the prior year periods. The increase came from several new properties that began producing in 2002. Gas production from the Gulf of Mexico (which accounted for 92% of total gas production) decreased by 0.9 Bcf, or 20%, during the fourth quarter and by 3.0 Bcf, or 16%, during the full year of 2002 compared to the same periods in 2001, primarily due to numerous weather delays and poorer than anticipated production at certain fields, partially offset by added production from new properties. The average oil price increased from $22.93 per barrel in 2001 to $24.04 per barrel during 2002 and from $17.86 during the fourth quarter of 2001 to $25.71 during the fourth quarter of 2002. The average gas price decreased from $3.99 per Mcf in 2001 to $3.33 per Mcf during 2002 but increased from $2.40 per Mcf during the fourth quarter of 2001 to $4.42 per Mcf during the fourth quarter of 2002.
Net income for the fourth quarter increased to $856,000 ($0.03 per share basic and diluted) compared to a net loss of $7.9 million ($0.35 per share basic and diluted) in 2001 primarily because of higher total revenues and lower impairment, DD&A, and G&A costs during the quarter. Remington uses the successful efforts method of accounting. Under this method, we evaluate the need for impairment on our oil and gas properties on a field by field basis. In the fourth quarter, we took impairments totaling pretax $6.7 million at East Cameron 305, High Island 86/87 and several small onshore Mississippi properties. This impairment reduced income by $4.4 million or $0.17 per share basic and $0.16 per share diluted. Net income for the full year 2002 increased to $11.3 million ($0.45 per share basic and $0.42 per share diluted) compared to $8.3 million ($0.38 per share basic and $0.35 per share diluted) for 2001 due to lower settlement costs related to Philips Petroleum, partially offset by lower total revenues.
Cash flow from operations before changes in working capital for the fourth quarter of 2002 increased by $10.6 million, or 95%, primarily because of increased oil and gas revenues. Cash flow from operations before changes in working capital for the full year 2002 increased by $1.6 million, or 2%, compared to 2001 primarily because of lower costs and expenses. Operating costs were $15.4 million in both 2002 and 2001, but were $0.56/Mcfe during 2002 versus $0.53/Mcfe during 2001. Fourth quarter 2002 operating costs were $3.7 million, or $0.59/Mcfe, compared to $3.8 million, or $0.53/Mcfe. Exploration expenses increased during the fourth quarter and full year because of higher dry hole costs during 2002. Depreciation, depletion and amortization for 2002 increased to $1.38/Mcfe compared to $1.33/Mcfe in 2001, as a result of increased production from higher cost properties.
G&A expenses decreased slightly to $5.3 million, or $0.19/Mcfe, in 2002 compared to $5.7 million, or $0.20/Mcfe for 2001. For the fourth quarter of 2002 G&A expenses were $1.2 million, or $0.19/Mcfe compared to $2.2 million, or $0.29/Mcfe in 2001. Interest and financing expenses decreased during the fourth quarter and full year of 2002 compared to the same periods in the prior year because of lower total outstanding debt and lower interest rates. Income tax expense increased due to the increase in income before taxes.
James A. Watt, President and Chief Executive Officer said, "During 2002 we dramatically improved our balance sheet by decreasing bank debt from $71 million at year-end 2001 to $37 million year-end 2002. In 2003, we anticipate a 25% increase in production volumes and continued reserve growth from our exploration efforts. Our program will be funded primarily from anticipated cash flow." |
