Canadian Hunter finacials & a conference call.
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FULL TEXT-Canadian Hunter yearend results
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(Full text of press release from Canada NewsWire)
Canadian Hunter Announces 1998
Financial and Operating Results
Canadian Hunter Exploration Ltd. (Canadian Hunter'') announces summary
financial and operating results for the fiscal year ended December 31,
1998.
CALGARY, Jan. 25 /CNW/ -
Effective December 31, 1998, the oil and gas operations of Noranda Inc.
were established as a new separate public company, Canadian Hunter
Exploration Ltd. Pro-forma financial and operating results are presented
for the years ended December 31, 1998 and 1997. A complete year end
report is expected to be released in March, 1999.
------------------------------------------------------------------------
Canadian Hunter Exploration Ltd. today reported 1998 earnings of $27
million ($0.45 per share) and cash flow from operations of $156 million ($2.62
per share).
Overall natural gas, natural gas liquids and oil production volumes for
1998 rose to 370 mmcfe/d, representing a 5% increase over 1997. Fourth
quarter 1998 production increased to 402 mmcfe/d, a 19% improvement over the
same period in 1997. Specifically, fourth quarter 1998 natural gas production
increased as a result of contributions from a high productivity/high decline
well at Wapiti, combined with the tying in of new production at Parkland and
in central Alberta.
Exploration and development capital expenditures rose to $196 million for
the year ended December 31, 1998 compared to $166 million for 1997. These
increased expenditures are the result of Canadian Hunter's growth strategy
initiated in late 1997.
Steve Savidant, Canadian Hunter's President and Chief Executive Officer
said, We are pleased with our 1998 results. Based on proven reserves,
Canadian Hunter's capital program resulted in the Company replacing 183% of
the reserves produced during 1998 at a satisfying finding and development cost
of $0.79/thousand cubic feet of gas equivalent. Our high quality asset base
with its focus on natural gas, combined with our strong balance sheet make us
well positioned to continue adding to shareholder value''.
Natural gas prices improved 8% in 1998 to $2.07/mcf (plant gate). Fourth
quarter prices rose to $2.41/mcf, a 12% increase over 1997's comparable
period.
Operating costs in 1998 rose $0.04/mcfe to $0.29/mcfe. The increase was
partly the result of fourth quarter 1998 costs of $0.34/mcfe. The fourth
quarter increases are due to startup and third party gas processing costs
associated with new sour gas production in central Alberta, combined with a
large one-time processing charge at Parkland. Operating costs for the year
were also higher due to increased compression requirements at Ring Border and
Elmworth.
Pro-forma cash provided from operations for the full year 1998 was $156
million compared to $161 million for the full year 1997. Cash flow for the
fourth quarter of 1998 and the year reflects approximately $7 million of cash
taxes and $5 million of one-time transaction costs associated with the process
of going public.
Earnings for 1998 were also impacted by costs of going public and pro
forma interest and income tax charges.
Canadian Hunter's growth strategy is also reflected in the Company's 1998
drilling activity, which was up 21% to 169 gross wells (112.5 net). Success
rates for 1998 also improved, rising from 78% in 1997 to 82% in 1998.
Looking forward to 1999, Western Canada exploration and development
capital expenditures are planned to be $215 million. Total production for
1999 is anticipated to average 405 mmcfe/day, assuming continuation of
reasonable gas prices.
<<
Schedule A
Pro-Forma Operating Highlights
-----------------------------------------------------------------------
Twelve months ended Three months ended
December 31, December 31,
1998 1997 1998 1997
-----------------------------------------
Production
Natural gas (mmcf/d) 288 272 321 255
Crude oil (bbls/d) 2577 2997 2101 2869
Natural gas liquids (bbls/d) 5661 5088 5947 5383
Total (mmcfe/d)(1) 370 353 402 338
Average sales price
Natural gas ($/mcf - plantgate) 2.07 1.92 2.41 2.15
Crude oil ($/bbl - wellhead) 22.88 29.19 22.32 31.18
Natural gas liquids
($/bbl - wellhead) 13.22 20.38 11.67 20.57
Total ($/mcfe)(2) 1.97 2.02 2.21 2.22
Operating costs ($/mcfe) 0.29 0.25 0.34 0.25
Proven Reserves additions
- E&D(bcfe)(3) 247 217 - -
Finding and Development Costs
($/mcfe) 0.79 0.77 - -
Proven Reserve Replacement Ratio
- E&D(% of production) 183 168 - -
------------------------------------------------------------------------
(1) mmcfe'' means million cubic feet equivalent (10:1).
(2) mcfe'' means thousand cubic feet equivalent (10:1).
(3) bcfe'' means billion cubic feet equivalent (10:1).
Schedule B
Drilling Statistics
------------------------------------------------------------------------
Year ended Year ended
December 31, 1997 December 31, 1997
Gross Net Gross Net
-----------------------------------------
Exploration
Gas 68 50.8 38 29.3
Oil 1 0.4 4 3.4
Dry 19 12.7 26 20.7
--------------------------------------
Total 88 63.9 68 53.4
--------------------------------------
Development
Gas 64 40.5 60 36.0
Oil 5 2.7 6 4.5
Dry 12 5.4 5 3.9
--------------------------------------
Total 81 48.6 71 44.4
--------------------------------------
Total Wells 169 112.5 139 97.8
--------------------------------------
Success Ratio 82% 84% 78% 75%
------------------------------------------------------------------------
Schedule C
Pro-Forma Financial Highlights
------------------------------------------------------------------------
Year Three Months
Ended Ended
December 31, December 31,
($ million except per share amounts) 1998 1997 1998 1997
------------------------------------------------------------------------
Petroleum and natural gas sales 266 260 82 69
Cash provided by operations 156 161 40 45
Net earnings 27 29 5 9
Capital expenditures
Exploration and Development 196 166 56 49
Net Acquisitions(Dispositions)
and Midstream 15 (131) 2 (35)
Per common share
Cash provided by operations 2.62 2.70 0.66 0.75
Net earnings 0.45 0.49 0.09 0.16
Estimated Shares outstanding (000's) 59564 59564 59564 59564
------------------------------------------------------------------------
Schedule D
Year End 1998 Balance Sheet
Condensed Consolidated
Balance Sheet ($ millions)
-------------------------------
December 31,
1998
------------
Current Assets 47
Fixed Assets, Net 758
------------
805
------------
------------
Current Liabilities 58
Deferred Liabilities 71
Deferred Taxes 179
Long Term Debt 150
Shareholders' Equity 347
------------
805
------------
------------
>>
Canadian Hunter will be hosting a telephone conference call at 6:30 a.m.
MST on Tuesday, January 26, 1999. The conference call dial-in numbers are
416-695-5806 / 1-800-273-9672. In addition, an instant replay of the call can
be accessed until February 2, 1999 at 416-695-5800 / 1-800-408-3053, pass code
241842.
Canadian Hunter is a Western Canadian based natural gas, natural gas
liquids, and oil exploration and production company, with a primary focus on
natural gas. Canadian Hunter is listed on The Toronto Stock Exchange under the
symbol HTR''.
/For further information: please contact one of the following: Mr. Gabriel
Ollivier, Manager, Investor Relations, (403) 260-1838; or Mr. Stephen B.
Soules, Vice President and C.F.O., (403) 260-1006; or Mr. Stephen J. Savidant,
President and C.E.O., (403) 260-1849, Canadian Hunter Exploration Ltd., (403)
260-1000, or (888) 397-1190, Fax: (403) 260-1156, E-mail:
investor.relations(at)chel.com/ |
