TO ALL:
1998 RESULTS RELEASE FOLLOWS:
> > >Harken Announces 1998 Financial Results
PR Newswire, Tuesday, March 09, 1999 at 10:48
DALLAS, March 9 /PRNewswire/ -- Harken Energy Corporation (AMEX:HEC)
("Harken") announced today positive EBITDA of $4.4 million for the year ended
December 31, 1998. The Company continues to generate positive cash flow in
spite of domestic oil and gas prices that were significantly lower than the
previous year's average prices by 34% and 23%, respectively. Working capital
and cash balances remained strong as of December 31, 1998 and were
$123.7 million and $141.5 million, respectively.
The Company took a non-cash write-down on its domestic U.S. properties of
approximately $50.5 million in 1998, primarily due to the continued decline in
U.S. oil and gas prices in the third and fourth quarters and other related
U.S. reserve volume revisions. No valuation allowance adjustment was required
for the Colombian operations. This domestic valuation allowance will have no
significant impact on operations, cash flow or working capital of the Company.
The results of operations for 1998 are as follows (in 000's, except for per
share and weighted share amounts):
Operations:
1998 1997
Total Revenues $19,770 $18,768
Earnings before interest, taxes, depreciation
and amortization (EBITDA) 4,378 6,965
Earnings (loss) before valuation allowance (1,938) 189
Non-cash valuation allowance
(domestic properties only) (50,518) ---
Net income (loss) (52,456) 189
Net income (loss) per common share $(0.42) $0.00
Basic weighted average common shares
outstanding 130,252,727 109,087,697
Summary of Financial Condition: December 31, December 31,
1998 1997
Working Capital $123,737 $110,640
Stockholders' Equity 179,942 157,881
Total Assets $304,538 $238,513
Mikel D. Faulkner, Harken's Chairman stated that, "We had a working
capital position in excess of $100 million at year end and almost tripled
proved reserves to nearly 50 million BOE during 1998. In addition, our
production should increase substantially in 1999. With crisis in our industry
due to historically low oil and gas prices, we are poised to take advantage of
opportunities to build value for our shareholders during 1999."
Harken Energy Corporation ("Harken") explores for, develops and produces
oil and gas reserves domestically and internationally. Certain statements in
this news release regarding future expectations and plans for international
oil and gas exploration and development may be regarded as "forward looking
statements" within the meaning of the Securities Litigation Reform Act. They
are subject to various risks, such as the inherent uncertainties in
interpreting engineering data related to underground accumulations of oil and
gas, timing and capital availability, discussed in detail in the Company's SEC
filings, including the Annual Report on Form 10-K for the year ended
December 31, 1998. Actual results may vary materially.
SOURCE Harken Energy Corporation
-0- 03/09/99
/CONTACT: J. Marc Lewis of Harken Energy Corporation, 972-753-6900, or
fax, 972-753-6972, or email, mlewis@harkenenergy.com/ < < <
Steve |
