Didn't see this posted or the link:
Evergreen Resources Reports First Quarter 2000 Net Income
DENVER--(BUSINESS WIRE)--May 4, 2000--EVERGREEN RESOURCES, INC.
(Nasdaq:EVER) today reported first quarter earnings from continuing
operations of $1.9 million, or 12 cents per diluted share, compared to
$.5 million, or 5 cents per diluted share, in the first quarter of
1999.
Due to increased production and a higher gas price realization,
natural gas revenues in the first quarter increased to $7.4 million,
up 62% from 1999's first quarter total of $4.6 million. Cash flow in
the first quarter totaled $4.4 million, which compared to $2.2 million
in the first quarter of 1999.
Net gas sales in the first quarter averaged 41 million cubic feet
(MMcf) per day, up 21% from the 34-MMcf-per-day average in the
corresponding 1999 period. Evergreen had 269 net gas wells connected
to pipeline at March 31, 2000, several of which were in various stages
of de-watering. At March 31, 1999, Evergreen was producing natural gas
from a total of 178 net gas wells. Evergreen drilled 25 wells in the
Raton Basin during the first quarter, on pace with its estimated
year-end total of 100 wells.
Lease operating expenses for the three months ended March 31,
2000, were $1.5 million or 42 cents per thousand cubic feet (Mcf) of
gas, compared to $1 million or 33 cents per Mcf for the same period in
1999. The increase in lease operating expense for the first three
months of 2000 as compared to 1999's first quarter was due to the
increase in the number of producing wells and compressors, an increase
in water handling costs, additional field personnel, workover costs
related to well repairs and maintenance costs for compressors.
Production taxes for the three months ended March 31, 2000
increased to 8 cents per Mcf, as compared to 6 cents per Mcf in the
first quarter of 1999, due to higher natural gas prices.
Evergreen has begun drilling operations on its coal bed methane
gas properties in the United Kingdom. The Sealand No. 2, the first
well of a three-well pilot project, is projected to a total depth of
2,600 feet to test the Westphalian Coal Measures.
The well is being drilled approximately 20 miles south of
Liverpool, England with an Evergreen-owned, purpose-built rig. In
addition to the three-well pilot program, Evergreen also plans to
drill two other coal bed methane wells, along with an additional seven
mine gas or "gob" gas wells to be drilled in or near underground
abandoned coal mines. Evergreen holds a 100% working interest and a
100% net revenue interest in about 500,000 acres in the U.K.
Financial statements follow.
This press release contains forward-looking statements within the
meaning of federal securities laws, including forward-looking
statements regarding Evergreen's drilling plans. These statements are
subject to various uncertainties. Actual results could differ
materially from these forward-looking statements as a result of a
variety of risks, including, among others, risks that drilling plans
change due to gas price fluctuations or other factors. Accordingly,
there can be no assurance that actual results will be as projected in
these forward-looking statements.
Evergreen Resources, Inc. - Financial Highlights
Consolidated Statements of Income
(in 000's except per-share and per Mcf amounts)
Three Months Ended
March 31, March 31,
2000 1999
Revenues:
Natural gas revenues $ 7,395 $ 4,572
Interest and other 41 51
Total revenues 7,436 4,623
Expenses:
Lease operating expense 1,535 1,012
Production taxes 285 189
Depreciation, depletion and
amortization 1,224 1,161
General and administrative
expenses 982 563
Interest expense 307 790
Other 51 32
Total expenses 4,384 3,747
Income from continuing
operations before income taxes 3,052 876
Income tax provision - deferred 1,190 341
Income from continuing
operations 1,862 535
Discontinued operations:
Gain on disposal of
discontinued operations, net -- 452
Net Income $ 1,862 $ 987
Basic income per common share:
From continuing operations $ 0.13 $ 0.05
From discontinued operations -- 0.04
Basic income per common share $ 0.13 $ 0.09
Diluted income per common share:
From continuing operations $ 0.12 $ 0.05
From discontinued operations -- 0.03
Diluted income per common share $ 0.12 $ 0.08
Natural gas sales volume (MMcf) 3,685 3,044
Average gas price per Mcf $ 2.01 $ 1.50
Average lease operating
expense per Mcf $ 0.42 $ 0.33
Average production tax
expense per Mcf $ 0.08 $ 0.06
General and administrative
cost per Mcf $ 0.27 $ 0.19
Depreciation, depletion and
amortization per Mcf $ 0.33 $ 0.38
Weighted average shares
outstanding:
Basic 14,868 11,203
Diluted 15,506 11,775
Condensed Consolidated Balance Sheets
(in 000's)
March 31, December 31,
2000 1999
Assets
Current assets $ 6,923 $ 6,421
Net property and equipment 191,277 174,334
Other assets 4,150 3,614
$202,350 $184,369
Liabilities and Equity
Current liabilities $ 8,444 $ 6,483
Other long-term 10,637 8,876
Notes payable 22,500 15,500
Stockholders' equity 160,769 153,510
$202,350 $184,369
Condensed Consolidated Statements of Cash Flows
Three Months Ended
March 31,
2000 1999
Operating Activities:
Net Income $ 1,862 $ 987
Adjustments to reconcile net
income to cash provided
by operating activities:
Depreciation, depletion
and amortization 1,224 1,230
Deferred income taxes 1,190 341
Gain on disposal of
discontinued operations, net -- (452)
Other 120 128
Cash flow from operating
activities prior to
changes in operating
assets and liabilities 4,396 2,235
Changes in operating
assets and liabilities (826) (59)
-------- --------
Net cash provided by operating
activities 3,570 2,175
Cash flow from investing
activities:
Investment in property
and equipment, net (10,182) (12,849)
Other (79) (556)
-------- --------
Net cash used in investing
activities (10,261) (13,405)
-------- --------
Cash flow from financing
activities:
Net proceeds from notes
payable 7,000 13,617
Principal payments on
capital lease obligations -- (374)
Proceeds from issuance of
common stock, net 146 342
Other 508 (1,565)
-------- --------
Net cash provided in financing
activities 7,654 12,020
Effect of exchange rate
changes on cash (2) 15
Increase in cash and cash
equivalents 962 805
Cash and cash equivalents,
beginning of period 652 1,334
Cash and cash equivalents,
end of period $ 1,614 $ 2,139
*T
CONTACT:
Evergreen Resources
John B. Kelso, Manager of Investor Relations
Kevin R. Collins, VP Finance & CFO
Mark S. Sexton, President & CEO
303/298-8100 |
