EARNINGS / Denbury Resources reports 1st 3 months Results
DALLAS and CALGARY, Alberta, May 6 /CNW/ -- Denbury Resources Inc.
(NYSE: DNR) ("Denbury" or the "Company") is pleased to report its quarterly
operating and financial results for the first quarter of 1998 with
comparatives. All dollar amounts are in U.S. dollars and production volumes
and dollars are expressed on a net revenue interest basis with gas volumes
converted to equivalent barrels at 6:1 ("BOE").
FINANCIAL HIGHLIGHTS
(Amounts in thousands of U.S. dollars)
Three months ended
March 31, Percentage
1998 1997 Change
Revenues:
Oil sales 16,173 12,877 + 26%
Gas sales 9,015 8,264 + 9%
Interest and other income 367 512 - 28%
Total revenues 25,555 21,653 + 18%
Expenses:
Production 7,854 5,053 + 55%
General and administrative 1,776 1,521 + 17%
Interest 4,391 79 + 5,458%
Depletion and depreciation 12,387 6,625 + 87%
Franchise taxes 200 97 + 106%
Total expenses 26,608 13,375 + 99%
Income (loss) before income taxes (1,053) 8,278 - 113%
Provision for income taxes 373 (3,063) - 112%
NET INCOME (LOSS) (680) 5,215 - 113%
Net income (loss) per common share:
Basic (0.03) 0.26 - 112%
Fully diluted (0.03) 0.24 - 113%
Average common shares outstanding 23,425 20,094 + 17%
Three months ended
March 31, Percentage
1998 1997 Change
Production (daily - net of royalties)
Oil (barrels) 14,728 7,143 + 106%
Gas (mcf) 40,275 30,674 + 31%
BOE (6:1) 21,441 12,256 + 75%
Unit sales price
Oil (per barrel) 12.20 20.03 - 39%
Gas (per mcf) 2.49 2.99 - 17%
Cash flow from operations (A) 11,455 14,922 - 23%
Cash flow per common share:
Primary (B) 0.49 0.74 - 34%
Fully diluted (C) 0.46 0.68 - 32%
Oil & gas capital investments 26,410 15,142 + 74%
Total assets 459,334 175,256 + 162%
Total debt 165,017 168 + 98,124%
Shareholders' equity 252,888 148,192 + 71%
BOE data (6:1)
Revenue 13.05 19.17 - 32%
Production expenses (4.07) (4.58) - 11%
Production netback 8.98 14.59 - 38%
General and administrative (1.02) (1.47) - 30%
Interest (2.02) 0.41 - 593%
Cash flow (A) 5.94 13.53 - 56%
(A) Exclusive of the net change in non-cash working capital balances.
(B) Cash flow from operations excluding change in working capital
balances divided by average common shares outstanding.
(C) Assumes conversion or exercise of all securities as of beginning of
period and investment of any pro forma proceeds.
Denbury posted strong operating results for the first quarter of 1998 with
its twentieth consecutive quarterly increase in production and significant
reductions in its operating and administrative expenses (on a BOE basis).
Production for the first quarter averaged 21,441 BOE/d, an increase of 75%
from the first quarter of 1997 and an increase of 35% from the 15,922 BOE/d
average in the fourth quarter of 1997. The properties included in the Chevron
Acquisition contributed approximately 2,990 BOE per day ("BOE/d") to the
increase during the first quarter of 1998 with the remainder of the increase
almost solely as a result of internal development. The Company also
recognized savings by lowering operating expenses 11% (on a BOE basis) and by
lowering administrative expenses 30% (on a BOE basis) when compared to the
first quarter of 1997. These savings were achieved due to efficiencies
achieved from higher overall and per well production volumes even though the
Company had a higher percentage of oil production in 1998 (69%), as compared
to 1997 (58%), which typically has a higher operating cost per BOE.
The financial results were significantly impacted by the 32% drop in oil
and gas product prices (on a BOE basis) between the two periods consisting of
a $7.83 per Bbl drop in oil prices (39%) and a $0.50 per Mcf drop in gas
prices (17%). The Company also incurred $2.02 of interest expense per BOE in
the first quarter of 1998 as a result of the debt incurred to finance the
$202 million acquisition from Chevron. This compares to net interest income
of $0.41 per BOE in the first quarter of 1997.
In response to the lower oil prices, the Company's 1998 capital
expenditure program has been reduced to approximately $75 million from its
initial level of $95 million. The Company hopes to spend this difference of
$20 million on acquisitions around its core properties.
Denbury is a rapidly growing independent oil and gas company with its
primary operations in the states of Louisiana and Mississippi.
The New York Stock Exchange, The Toronto Stock Exchange and the SEC have
neither approved nor disapproved the information contained herein. The
Company plans to release its second quarter results on August 5, 1998 and its
third quarter results on November 5, 1998.
|
