Last buy ARD 28.58 +.18 on super earnings imho: Arena Resources Announces Record Financial and Operational Results for Fourth Quarter and Year End 2005
Friday March 17, 9:30 am ET
TULSA, Okla.--(BUSINESS WIRE)--March 17, 2006--Arena Resources Inc. (AMEX: ARD - News)
2005 Revenues Increase 205%
2005 Net Income Increases 286%
Arena Resources Inc. (AMEX: ARD - News; "Arena") announced today financial results for the fourth quarter and year ended Dec. 31, 2005. Arena had net income of $3,014,884, a 249% increase, on oil and gas revenues of $9,362,003, a 215% increase, for the fourth quarter compared to net income of $865,097 on revenues of $2,972,346 for the fourth quarter ended Dec. 31, 2004. For the year ended Dec. 31, 2005, Arena had net income of $9,460,683, a 286% increase, on revenues of $25,843,077, a 205% increase, as compared to net income of $2,451,652 on revenues of $8,482,130 for the year ended Dec. 31, 2004. Income attributable to common shares for the fourth quarter was $0.22 per diluted share compared to $0.09 for the fourth quarter ended Dec. 31, 2004. For the year ended Dec. 31, 2005, income attributable to common shares was $0.75 per diluted share compared to $0.28 per diluted share for the year ended Dec. 31, 2004. The increase in revenue is attributed to an increase in production, primarily due to development and acquisition activities, and an increase in commodity prices. Net income for the fourth quarter and the year 2005 included a pre-tax non-cash charge of $597,773 for warrants issued as part of a financing in July 2005.
Cash provided by operating activities, before changes in working capital, increased to $18,594,370 or $1.48 per diluted share for the year ended Dec. 31, 2005, from $5,085,918, or $0.59 per diluted share for the year ended Dec. 31, 2004. Earnings before interest, taxes, depletion and other non-cash items ("Adjusted EBITDA") was $18,823,994, as compared to $5,241,854 in 2004. (See accompanying table for a reconciliation of net income to adjusted EBITDA.)
Total net production for the fourth quarter of 2005 was 172,386 BOE, as compared to 72,965 BOE for the same period in 2004, an increase of 136%. Net production for the full year 2005 was 508,430 BOE, compared to 223,333 BOE in 2004, an increase of 127%. The company's average net daily production in December 2005 was approximately 2,050 BOE per day.
Proved reserves totaled approximately 30.2 million barrels of oil equivalents (BOE), a 42% increase over the 21.2 million BOE for the previous year. Future net revenues before income taxes, discounted at 10%, based on $55.00 per barrel of oil and $8.20 per Mcf of gas, were $682.9 million at year-end 2005. This compared to $302.4 million, using average prices of $39.00 per barrel of oil and $5.19 per Mcf of gas, for year-end 2004.
"2005 proved to be a tremendous year for us," said Tim Rochford, president and chief executive officer. "This truly was a year of growth through the internal development of our existing properties. We expect our own drilling rig to be in place and operational very soon. We currently have identified over 540 drilling locations on 50,000 acres and continue to look for acquisitions that either complement our existing properties or create new core areas."
Arena Resources Inc. is an oil and gas exploration, development and production company with current operations in Oklahoma, Texas, Kansas and New Mexico.
This release contains forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve a wide variety of risks and uncertainties, including, without limitations, statements with respect to the company's strategy and prospects. Readers and investors are cautioned that the company's actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the company's ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the company, and other factors that may be more fully described in additional documents set forth by the company.
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