Well, folks, MEXP will be $5 by Christmas. The question is, which year, and will $5 buy you a bottle of water then?
Not surprised at the results, still a long-termer here:
Sunday May 11, 06:45 PM Eastern time
Company Press Release
SOURCE:
Miller Exploration Company Announces 1st Quarter 2000 Financial Results And Operational Update
HOUSTON, May 11 /PRNewswire/ -- Miller Exploration Company (Nasdaq: MEXP), the "Company" or "Miller" today announced 1st quarter 2000 financial results and operational update.
First quarter highlights include: * Oil & natural gas revenues increased 14%
* Operating expenses decreased 24%
* General & Administrative expenses decreased 19%
* Average bank balance decreased 43%
* Cash flow per share increased 30% FIRST QUARTER 2000 FINANCIAL RESULTS Oil and natural gas revenues for the three months ended March 31, 2000
increased 14 to 5.5 million from 4.8 million for the comparable period in the prior year. The revenues for the three months ended March 31, 2000 and 1999 include approximately 0.06 million and 0.4 million of hedging gains, respectively. In 1999, the Company sold substantially all of its producing properties in Texas, Louisiana and the Antrim Shale properties in Michigan. These property sales and the resultant lost production represent the primary reason why production volumes for the three months ended March 31, 2000 decreased 24 to 1,925.2 Mmcfe from 2,516.9 Mmcfe for the comparable period of the prior year. Average realized oil prices increased 149 to 23.16 per barrel from the significantly depressed price of 9.30 per barrel experienced during the comparable period of 1999. Realized natural gas prices for the three months ended March 31, 2000 increased 35 to 2.69 per Mcf from 2.00 per Mcf for the comparable period of the prior year.
Lease operating expenses and production taxes for the three months ended March 31, 2000 decreased 24 to 0.46 million from 0.60 million for the comparable period in the prior year. Lease operating expenses decreased due to the reduction in expenses attributable to the sale of producing properties in Texas, Louisiana and Michigan in 1999. The lease operating expenses and production taxes on a per unit of production basis for the three months ended March 31, 2000, of 0.24 per Mcfe was unchanged from the same period of 1999.
Depreciation, depletion and amortization ("DD&A") expense for the three months ended March 31, 2000 increased 29 to 4.4 million from 3.4 million for the comparable period in the prior year. The higher depletion expense was the combined result of an increase in costs subject to depletion and an increased depletion rate due to a reduction in estimated proved oil and gas reserves from sales of proved reserves in 1999.
General and administrative expenses for the three months ended March 31, 2000 decreased 19 to 0.7 million from 0.9 million for the comparable period in the prior year. Legal and professional fees decreased 19 for the three months ended March 31, 2000 compared to the same period of 1999. Salaries, wages and related fringe benefits dropped by 28 for the three months ended March 31, 2000 after removal of the following non-cash items for both periods: 1) employer matching 401(k) contributions which were made with Company common stock and 2) salaries and wages expense for the vested portion of restricted stock issued in February 1998, in connection with the Initial Public Offering. This decrease in salaries, wages and fringe benefits is due to a reduction in staff level by ten employees and certain salary reductions implemented in May 1999. The Company expects the lower level of general and administrative expenses to continue for the remainder of 2000.
Interest expense for the three months ended March 31, 2000 increased 43 to 0.8 million from 0.6 million for the comparable period in the prior year, as a result of the prime plus 3.5 interest rate that became effective with the Second Amendment to the Credit Facility dated April 14, 1999 and interest expense associated with the Veritas Note Payable agreement dated April 14, 1999. The average bank balance during 1st quarter 2000 decreased approximately 16 million or 43 from 1st quarter 1999.
Net loss for the three months ended March 31, 2000 increased to 0.4 million from 0.3 million for the comparable period in the prior year, as a result of the factors described above.
Cash flow for the three months ended March 31, 2000 and 1999 was 4.0 million or .31 per basic share and 3.0 million or .24 per basic share, respectively. As of March 31, 2000, the Company has outstanding natural gas hedge contracts totaling 1.1 Bcfe covering periods through September 2000 at average prices of 2.85 per Mmbtu or equivalent.
OPERATIONAL UPDATE Moselle Dome, Jones County, Mississippi:
The Allar 32-6 #1 continues to produce to sales at sustained rates
averaging 815 barrels of oil per day. Miller has approximately an 11 working interest in this well.
Kola Dome, Covington County, Mississippi:
Pipeline construction is nearing completion and facilities have been completed for the Miller Langston 1. First production is still anticipated for June 1, 2000. A second well is being planned to test the Hosston formation updip to the Langston 1. Miller has approximately a 17 working interest in this well.
Richmond Dome, Covington County, Mississippi:
Production facilities are being constructed for the Miller Fairchild 1. This well will be completed as a pumping oil well at anticipated rates of approximately 75 barrels of oil per day. Miller has approximately a 25 working interest in this well.
Eminence Dome, Covington County, Mississippi:
The Crosby 1 well was spud on May 9, 2000 and is being drilled as a test to the Hosston and Cotton Valley formations at Eminence Dome. It is anticipated that drilling to total projected depth will take at least 70 days. Remington Oil and Gas Corporation will operate the Crosby 1 and has significant experience in salt dome drilling operations. Miller has approximately a 23 working interest in this well. This prospect is also supported by 3-D seismic.
Chenier Perdue Prospect, Cameron Parish, Louisiana:
In Cameron Parish, Louisiana, Miller is participating in the Ballard Exploration operated Miami Corporation B 1 well. This well is a 3-D controlled prospect being drilled to test the multiple pay potential in the Camerina Sands and will be drilled to a total depth of approximately 13,000 feet. The well is scheduled to spud on or about May 24, 2000. Miller has approximately a 14.7 working interest in this well.
OTHER MATTERS Blackfeet Project:
On May 1, 2000, Miller Exploration filed a lawsuit in the United States
District Court for the District of Montana against K2 America Corporation and K2 Energy Corporation (hereinafter collectively referred to as "K2"). Miller's lawsuit includes certain claims of relief and allegations by Miller against K2, including breach of contract arising from failure by K2 to agree to escrow, repudiation, and rescission specific performance declaratory relief partition of K2 lands that are subject to the K2/Blackfeet IMDA negligence and tortuous interference with contract. The lawsuit is on file with the United States District Court for the District of Montana, Great Falls Division and is not subject to protective order.
On May 1, 2000, Miller Exploration gave notice to the Blackfeet Tribal Business Council demanding arbitration of all disputes as provided for under the Indian Mineral Development Act (IMDA) agreement between Miller and the Blackfeet (the "Miller/Blackfeet IMDA") dated February 19, 1999, and pursuant to the IMDA agreement between K2 and the Blackfeet ("K2/Blackfeet IMDA") dated May 30, 1997.
The disputes for which Miller demands arbitration include but are not limited to the unreasonable withholding of a consent to a drilling extension as provided in the Miller/Blackfeet IMDA, as well as a determination by the Blackfeet dated March 16, 2000, that certain wells which Miller proposed to drill "would not satisfy the mandatory drilling obligations" under the K2/Blackfeet IMDA. Miller contends the K2/Blackfeet IMDA, gives it as lessee, and not the Blackfeet, the exclusive right to select drill sites and well depths.
Miller is an independent oil and gas exploration and production company with established exploration efforts concentrated primarily in the Mississippi Salt Basin and the Blackfeet Indian Reservation of Northwest Montana. Miller emphasizes the use of 3-D seismic data analysis and imaging, as well as other emerging technologies, to explore for and develop oil and natural gas in its core exploration areas. Miller is the successor to the independent oil and natural gas exploration and production business first established in Michigan by members of the Miller family in 1925. Miller's common shares trade on the NASDAQ under the symbol MEXP.
Except for the historical data herein, the matters discussed in this press release are opinions, forward looking statements, assumptions, and estimates that are subject to a wide range of risks and uncertainties, and there is no assurance that the Company's goals, estimates and expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward looking statements, including but not limited to the volatility of oil and gas prices and changes in oil and gas drilling and acquisition programs, operating risks, production rates, reserve replacement, reserve estimates, the effect of the Company's hedging activities, the actions of our customers and competitors, government regulations, changes in general economic conditions, and the state of domestic capital markets and uncertainties more fully described in the Company's Annual Report on Form 10-K for the year ended December 31, 1999 as filed with the Securities and Exchange Commission.
Miller Exploration Company management will host a conference call to discuss the Company's 1st quarter 2000 financial and operational results with interested parties on Friday, May 12, 2000 at 10 a.m. Eastern Standard Time.
To participate in the call, please dial 1-800-491-4331 and ask for the Miller Exploration conference call, conference identification number 724236.
The host of the call will be Kelly Miller, President and CEO of Miller Exploration Company.
Miller Exploration Company
Consolidated Statement of Operations
(In thousands, except per share data)
(unaudited)
For the Three Months
Ended March 31,
2000 1999
REVENUES
Natural gas $4,417 $4,119
Crude oil and condensate 1,093 716
Other operating revenues 213 145
Total operating revenues 5,723 4,980 OPERATING EXPENSES
Lease operating expenses and
production taxes 458 602
Depreciation, depletion and
amortization 4,371 3,392
General and administrative 709 878
Total operating expenses 5,538 4,872 OPERATING INCOME 185 108 INTEREST EXPENSE 848 594 INCOME(LOSS) BEFORE INCOME TAXES (663) (486) INCOME TAX PROVISION (225) (198) NET INCOME(LOSS) $(438) $(288) Earnings(Loss) per Share
Basic $(0.03) $(0.02)
Diluted $(0.03) $(0.02) Shares Basic 12,699 12,553
Shares Diluted 12,699 12,553 Gas Production (Mmcf) 1,642 2,055
Oil Production (Mbo) 47 77
Equivalent Production (Mmcfe) 1,925 2,517 Unit Price Gas $2.69 $2.00
Unit Price Oil $23.16 $9.30
Unit Price Mcfe $2.86 $1.92 Average Costs ($ per Mcfe)
Lease operating expenses and
production taxes $0.24 $0.24
Depletion, depreciation and
amortization $2.27 $1.35
General and administrative $0.37 $0.35 EBITDA $4,556 $3,500
Cash Flow $3,997 $2,956
Cash Flow/Basic Shares $0.31 $0.24
Cash Flow/Diluted Shares $0.31 $0.24
SOURCE Miller Exploration Company
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