TMR Earnings:
The Meridian Resource Corporation Announces Record Third Quarter 1999 Financial Results
HOUSTON--(BUSINESS WIRE)--Oct. 25, 1999--The Meridian Resource
Corporation (NYSE: TMR) today announced record revenues, earnings and
cash flow for the 1999 Third Quarter period. For the quarter ending
September 30, 1999, the Company reported net income applicable to
common shareholders of $6.4 million, or $0.14 per share, compared to a
net loss of $6.5 million, or $0.14 per share, during the Third Quarter
of 1998. Production increased to 12.4 Bcfe from 11.2 Bcfe during the
Third Quarter of 1998. Revenues increased to $38.9 million from $23.2
million or 67.7% during the Third Quarter of 1998. The increases were
primarily a result of the continuing successful drilling activities on
the Company's properties, and improved crude oil and natural gas
prices. During the Third Quarter of 1999, the Company realized prices
of $20.21/Bbl and $2.80/Mcf, compared to realized prices of $12.84/Bbl
and $1.99/Mcf during the Third Quarter of 1998, representing an
increase of 57% and 41%, respectively, when compared to the same
period a year ago. Operating cash flow increased 128.4% to $20.1
million from $8.8 million when compared to the same period a year ago.
For the nine month period ended September 30, 1999, the Company
reported net income applicable to common shareholders of $2.8 million,
or $0.06 per share, compared to a net loss of $182.8 million, or $4.85
per share, during the same period a year ago. Production increased
73.8% to 37.2/Bcfe from 21.4/Bcfe and revenues increased 98.7% to
$93.2 million from $46.9 million during the first nine months of 1999,
primarily a result of including properties acquired from Shell Oil,
the successful exploitation of the Company's properties and the
improved crude oil and natural gas price environment. During the first
nine months of 1999, the Company realized prices of $16.00/Bbl and
$2.28/Mcf, compared to realized prices of $13.02/Bbl and $2.16/Mcf the
period a year ago, representing an increase of 22.9% and 5.6%,
respectively. Operating cash flow increased 119.4% to $41.9 million
from $19.1 million when compared to the same period in 1998.
For the Third Quarter of 1999, oil and gas operating expenses
were $3.9 million, or $0.31/Mcfe, compared to $5.5 million, or
$0.49/Mcfe, during the Third Quarter of 1998. The decrease represents
Meridian's continued cost reduction efforts on all of its operated
properties. Severance and ad valorem taxes for the Third Quarter of
1999 totaled $3.3 million, an increase of $1.9 million over the same
period in 1998, as a result of an increase in onshore production
(which is subject to severance taxes) and higher oil and natural gas
prices.
For the nine month period ended September 30, 1999, oil and gas
operating expenses were $12.1 million, or $0.32/Mcfe, compared to $8.9
million, or $0.41/Mcfe for the same period a year ago, reflecting the
addition of new properties. For the nine-month period, severance and
ad valorem taxes were $8.2 million, an increase of $6.0 million over
the same period in 1998, also a result of the increase in onshore
production and higher oil and natural gas prices.
Unit costs for Depletion, Depreciation and Amortization (DD&A),
per Mcfe, have declined to $1.10/Mcfe during the Third Quarter of 1999
compared to $1.36/Mcfe for the same period in 1998.
General and administrative expenses during the Third Quarter of
1999 totaled $4.1 million, an increase of $1.6 million over the Third
Quarter of 1998, related to the growth of the Company's asset base and
producing properties. For the current nine-month period, general and
administrative expenses totaled $10.0 million, an increase of $3.4
million over the same period in 1998, again related to the expanded
property base and exploration and production activities.
Capital expenditures during the Third Quarter of 1999 were $23.2
million and have totaled $69.1 million for the nine-month period
through September 30, 1999. These expenditures consisted primarily of
exploration and development expenditures at the Company's North Turtle
Bayou/Ramos Field, Weeks Island Field, Thornwell Field, Rockefeller
Refuge field, South Timbalier Block 290-291 and Eugene Island Block
304. The costs were financed by a combination of cash flow from
operations and borrowings under the Company's credit facility. For the
balance of 1999, Meridian's capital budget will be financed
internally, with an emphasis on development and exploitation projects,
concentrated at the Company's Weeks Island, North Turtle Bayou/Ramos,
Thornwell, Kings Bayou, East Cameron Blk 332 and South Timbalier Blk
139 producing fields.
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