DALLAS, March 9 /PRNewswire-FirstCall/ -- National Energy Group, Inc.
(OTC Bulletin Board: NEGI) today announced results for the fourth quarter
and year ended December 31, 2006.
Results of Operations
The Company reported total revenues of $120.7 million for the three
month period ended December 31, 2006 compared to $16.7 million for the
three months ended December 31, 2005. Net income was $73.8 million for the
three months ended December 31, 2006 compared to $10.9 million for the
comparable period in 2005. For the year ended December 31, 2006, the
Company reported total revenues of $176.8 million compared to total
revenues of $59.0 million in 2005. The Company recognized net income of
$103.5 million for the year ended December 31, 2006 compared to $25.3
million in 2005. 2006 results included a pre-tax gain of $112.2 million
(approximately $79.7 million after tax) from the previously reported sale
of the Company's non-controlling membership interest in NEG Holding LLC,
which occurred on November 21, 2006.
In connection with the sale of its interest in NEG Holding LLC, the
Company paid its debt obligations in full, terminated its management
agreements with NEG Operating LLC, National Onshore LP and National
Offshore LP and terminated the employment of the majority of its employees.
Subsequent to November 21, 2006, the Company has no business operations
and its principal asset consists of its cash balances (approximately $51.2
million as of February 15, 2007 following the payment of a one-time cash
dividend of $3.31 per share, or $37.0 million in the aggregate). As a
result, the Company's historical financial information is not indicative of
future results.
The Company's results of operations for the three month period and year
ended December 31, 2006 are more fully described in the financial
statements and the accompanying notes and other information included in the
Company's Annual Report on Form 10-K for the year ended December 31, 2006
filed with the Securities and Exchange Commission on March 6, 2007.
Investors are urged to review the Form 10-K, including the risk factors
applicable to the Company's current operations and status as a shell
company as defined in Rule 12b-2 under the Securities Exchange Act of 1934,
as amended.
The Company
Subsequent to November 21, 2006, the Company is a shell company as
defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended.
The Company's Board of Directors intends to consider the appropriate
application of our remaining cash balances, including but not limited to
the possible acquisition of producing oil and gas properties and related
businesses and assets or the equity in another entity which owns such
properties, businesses and assets. There can be no assurance that the
Company's Board of Directors will authorize any such transaction or, if so
authorized, that it will successfully identify or complete the acquisition
of appropriate assets or businesses.
Forward Looking Statements
This press release includes "forward-looking statements" within the
meaning of various provisions of the Securities Act of 1933, as amended,
and the Securities Exchange Act of 1934, as amended. The words
"anticipate," "expect," "estimate," "predict," "believe," and similar
expressions and variations thereof are intended to identify forward-looking
statements. All statements, other than statements of historical facts,
included in this press release that address activities, events, or
developments that we expect or anticipate will or may occur in the future
relating to the operations of National Energy Group, Inc., our business
strategy and measures to implement our strategy, goals, plans, references
to future success, references to intentions as to future matters and other
such matters are forward-looking statements and include statements
regarding the interest, belief or current expectations of our management,
directors, or our officers regarding such matters. These statements are
based on certain assumptions and analyses made by us in light of our
experience and our perception of historical trends, current conditions and
expected future developments as well as other factors we believe are
appropriate under the circumstances. However, whether actual results and
developments will conform with our expectations and predictions is subject
to a number of risks and uncertainties, including the risk factors (see
Item 1A-Risk Factors included in the Company's Annual Report on Form 10-K
filed with the Securities and Exchange on March 6, 2007), the opportunities
(or lack thereof) that may be presented to and pursued by us, competitive
actions by other companies, changes in laws or regulations, and other
factors, many of which are beyond our control. Consequently, all of the
forward- looking statements made in this document are qualified by these
cautionary statements and there can be no assurance that the actual results
or developments anticipated will be realized or, even if substantially
realized, that they will have the expected consequences to or effects on
our Company or our business or operations. Such statements are not
guarantees of future performance and actual results or developments may
differ materially from those projected in the forward-looking statements.
We undertake no obligation to publicly update or revise any forward-looking
statements.
SOURCE National Energy Group, Inc.
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Related links:
http://www.negx.com
CONTACT:
Bob Alexander of National Energy Group, Inc.,
+1-214-692-9211
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