Berry Petroleum Reports Record First Quarter 2000 Results; Net Earnings Up Over Sixteen-Fold
TAFT, Calif.--(BUSINESS WIRE)--May 9, 2000--Berry Petroleum
Company (NYSE:BRY) today announced record net income for the first
quarter ended March 31, 2000 of $8.9 million, or $.40 per share, on
record revenues of $26.1 million, up from $.5 million or $.02 per
share, on revenues of $9.7 million for the first quarter of 1999.
Earnings before interest, taxes, depreciation, depletion and
amortization (EBITDA) for the first quarter of 2000 were $16.7
million, up 307% from $4.1 million in the first quarter of 1999.
Jerry Hoffman, chairman, president and chief executive officer,
stated, "Berry had an excellent quarter as crude oil prices were up
sharply from a year ago -- our realized price per barrel improved by
$11.98 to $19.99 from a historic low $8.01 in the first quarter of
1999. Our current expectations are for a continued strong oil price
environment for the remainder of this year and continuing into 2001,
thus, we are accelerating our development projects through our $22
million 2000 capital program.
"Our production rate of 14,297 barrels of oil equivalent per day
(BOEPD) in the first quarter was up 12% from our 1999 first quarter of
12,778 BOEPD, but off slightly from 14,736 BOEPD in the 1999 fourth
quarter. Our production levels are improving as we increase our steam
injection and as production from our development program begins. We
are adding a second drilling rig this month to accelerate our
development projects."
Hoffman added, "Our operating costs rose to $5.15/bbl which
reflects our increased well work, but also includes approximately
$.54/bbl related to a six square mile 3-D seismic survey run on our
South Midway-Sunset non-producing acreage. We expect to have the
processed seismic data from this survey in mid-2000."
In April, Berry entered into a three-year agreement to sell most
of its crude oil to one company, and while actual realizations above
average postings may vary significantly from month to month, the
company anticipates averaging at least $.50/bbl above postings over
the term of the agreement.
General and administrative expenses rose to $2.08/bbl from
$.97/bbl in the 1999 first quarter. Approximately $.70/bbl are
non-recurring expenses related to litigation which concluded in the
first quarter.
Ralph Goehring, senior vice president and chief financial officer,
added, "Cash from operations surged to $17.5 million, from a negative
$.5 million in the year earlier period. During the first quarter, the
company funded $4.1 million of capital expenditures, $3.0 million in
property acquisitions, distributed $2.2 million in dividends, and
repaid $8 million of long-term debt. With record earnings, increasing
cash flow and over $100 million in borrowing capacity on our credit
facility, Berry continues to maintain excellent financial
flexibility."
Berry Petroleum Company is a publicly traded independent oil and
gas production and exploitation company with its headquarters in Taft,
California.
CONDENSED INCOME STATEMENTS
(In thousands, except per share data)
(unaudited)
Three Months Ended
3/31/00 3/31/99
Revenues:
Sales of oil and gas $26,026 $ 9,225
Interest and other income, net 111 432
Total 26,137 9,657
Expenses:
Operating costs 6,705 4,462
Depreciation, depletion & amortization 3,312 2,843
General and administrative 2,710 1,112
Interest 935 927
Total 13,662 9,344
Income before income taxes 12,475 313
Provision (benefit) for income taxes
3,616 (231)
Net income $ 8,859 $ 544
Basic and diluted net income per share $ .40 $ .02
Cash dividends per share $ .10 $ .10
Weighted average common shares:
Basic 22,018 22,009
Diluted 22,198 22,019
CONDENSED BALANCE SHEETS
(In thousands)
(unaudited)
March 31, 2000 December 31, 1999
ASSETS
Current assets $ 21,775 $ 18,959
Property & equipment, net 190,426 186,519
Other assets 2,076 2,171
$ 214,277 $ 207,649
LIABILITIES & SHAREHOLDERS'
EQUITY
Current liabilities $ 16,995 $ 10,524
Long-term debt 44,000 52,000
Deferred taxes 30,300 28,912
Shareholders' equity 122,982 116,213
$ 214,277 $ 207,649
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Three Months Ended
3/31/00 3/31/99
Cash flows from operations:
Net income $ 8,859 $ 544
Depreciation, depletion & amortization 3,312 2,843
Other, net 1,318 (98)
Net changes in operating assets
and liabilities 4,059 (3,802)
Net cash provided by (used in)
operations 17,548 (513)
Net cash used in investing activities (7,075) (37,262)
Net cash (used in) provided by
financing activities (10,070) 32,401
Net increase (decrease) in cash &
cash equivalents 403 (5,374)
Cash & cash equivalents, beginning of year 980 7,058
Cash & cash equivalents, end of period $ 1,383 $ 1,684
COMPARATIVE OPERATING STATISTICS
Three Months Ended
3/31/00 3/31/99 Change
Net production-BOE per day 14,297 12,778 + 12%
Per BOE:
Average sales price $19.99 $ 8.01 +150%
Operating costs 4.70 3.21 +46%
Production taxes .45 .67 -33%
Total operating costs 5.15 3.88 +33%
Depreciation & depletion 2.48 2.47 -
General & administrative expenses 2.08 .97 +114%
Interest Expense per BOE .72 .81 -11%
*T
Note: Interested parties may participate in the company's
conference call, scheduled for May 10 at 8:00 a.m. Pacific Time, by
dialing 1-800-837-5682 using access code 2315480. A digital replay
will be available until May 17. Dial 1-888-843-8996 and use access
code 2315480 to listen to the digital replay.
Except for actual operating results, this news release includes
forward-looking statements that involve risks and uncertainties which
may cause future results to differ materially from forecasted results.
These risks include, among other things, volatility of oil, gas, and
electricity prices, competition, year 2000 issues, environmental
risks, litigation uncertainties, government regulation, and drilling,
development and operating risks which can affect the ability of the
company to meet its goals. These and other risks are described in the
company's reports on Forms 10-K, 10-Q, and other filings with the
Securities and Exchange Commission.
--30--ojm/la* kb/la
CONTACT:
Berry Petroleum Company
Jerry V. Hoffman or Ralph J. Goehring,
661/769-8811
Fax: 661/769-8960
Email: ir@bry.com
Internet: www.bry.com |
