HOUSTON, April 25 /PRNewswire/ -- Ocean Energy, Inc. (NYSE: OEI) today
announced first quarter income of $43 million or $0.25 per fully diluted share
on revenues of $246 million. This compares to a net loss of $81 million or
$0.79 per fully diluted share on revenues of $106 million for the first
quarter of 1999. The Company's 1999 results included one-time charges related
to last year's merger with Seagull Energy and the sale of Ocean's Canadian
subsidiary.
"Our positive results in the first quarter reflect both the impact of
continuing to execute our long-term plans and the favorable commodity prices
that the industry is experiencing," said James T. Hackett, Chairman, President
and Chief Executive Officer.
Cash flow for the first quarter before changes in operating assets and
liabilities was $148 million, compared to $33 million for the same period in
1999. The increase in cash flow was primarily attributable to higher realized
oil and gas prices, increased production, and decreased interest expense.
Average daily production for the period was 416.8 million cubic feet of
gas (MMCF) and 72,995 barrels of oil, for an average of 142,467 barrels of oil
equivalent (BOE). This compares to daily production of 116,762 BOE in the
first quarter of 1999.
For the first quarter of 2000, average realized oil prices increased to
$22.99 per barrel, compared to $10.04 per barrel in the same period of 1999.
Natural gas prices averaged $2.46 per thousand cubic feet of natural gas (MCF)
during the quarter, compared to $1.68 per MCF of gas in the same three months
last year.
Operational accomplishments for the first quarter included:
-- The reservoir encountered in the initial Nansen discovery well on East
Breaks Block 602 was successfully extended more than two miles with
the drilling of an appraisal well that logged approximately 200 feet
of net oil and gas pay. In addition, the partnership has approved the
development plan for the area that includes a spar and associated
facilities with a designed daily production capacity of 40,000 barrels
of oil and 200 MMCF of gas. Ocean Energy holds a 50 percent working
interest in Nansen.
-- Record production was set in the Zafiro Field in Equatorial Guinea
Block B with volumes increasing to a gross daily average of 101,500
barrels of oil. The installation of the Jade Platform was also
completed on the block, and the first platform development well is
expected to begin production in May.
-- The sale of the East Bay Field in the Gulf of Mexico was completed for
$86 million.
Ocean Energy, Inc. is an independent energy company engaged in the
exploration, development, production, and acquisition of crude oil and natural
gas. North American operations are focused in the shelf and deepwater areas
of the Gulf of Mexico, the Permian Basin, Mid-continent and Rocky Mountain
regions. Internationally, Ocean explores for and produces oil and gas in West
Africa (Cote d'Ivoire and Equatorial Guinea), Egypt, Russia and Indonesia.
Ocean Energy also has exploration programs underway in Angola, Pakistan and
Yemen.
On March 30, 1999, Ocean Energy, Inc. merged with and into Seagull Energy
Corporation and the resulting company was renamed Ocean Energy, Inc. The
merger was treated for accounting purposes as an acquisition of Seagull by
Ocean Energy in a purchase business transaction. As such, the financial
results presented here for first quarter 1999 represent Ocean Energy, Inc. on
a stand-alone basis.
Certain statements in this news release regarding future expectations,
plans for acquisitions, dispositions, and oil and gas reserves, exploration,
development, production and pricing may be regarded as "forward-looking
statements" within the meaning of the Securities Litigation Reform Act. They
are subject to various risks, such as operating hazards, drilling risks, the
inherent uncertainties in interpreting engineering data relating to
underground accumulations of oil and gas, as well as other risks discussed in
detail in the Company's SEC filings, including the Annual Report on Form 10-K
for the year ended December 31, 1999. Actual results may vary materially.
Ocean Energy, Inc.
Condensed Consolidated Statements of Operations
(Amounts in Thousands Except Per Share Data)
(Unaudited)
Three Months Ended
March 31,
2000 1999
Revenues $246,068 $105,694
Costs of Operations:
Operations and maintenance 56,820 45,160
Depreciation, depletion and amortization 80,080 58,608
Impairment of oil and gas properties --- 28,500
General and administrative 9,122 4,576
146,022 136,844
Operating Profit (Loss) 100,046 (31,150)
Other (Income) Expense:
Interest expense 19,228 25,170
Merger and integration costs 3,273 40,652
Interest income and other (739) (483)
21,762 65,339
Income (Loss) Before Income Taxes 78,284 (96,489)
Income Tax Expense (Benefit) 35,306 (15,438)
Net Income (Loss) 42,978 (81,051)
Preferred Stock Dividend 813 801
Net Income (Loss) Available to
Common Shareholders $42,165 $(81,852)
Earnings (Loss) Per Share:
Basic $0.25 $(0.79)
Diluted $0.25 $(0.79)
Weighted Average Number of
Common Shares Outstanding:
Basic 167,031 103,192
Diluted 174,550 103,192
Ocean Energy, Inc.
Condensed Consolidated Balance Sheets
(Amounts in Thousands)
(Unaudited)
March 31, December 31,
2000 1999
Assets:
Current Assets $300,545 $289,950
Property, Plant and Equipment, net 2,156,474 2,203,010
Other Assets 259,442 290,183
Total Assets $2,716,461 $2,783,143
Liabilities And Shareholders' Equity:
Current Liabilities $261,752 $368,290
Current Maturities of Long-Term Debt 11,119 13,651
Total Current Liabilities 272,871 381,941
Long-Term Debt 1,306,765 1,333,410
Other Noncurrent Liabilities 146,357 120,097
Shareholders' Equity 990,468 947,695
Total Liabilities and Shareholders' Equity $2,716,461 $2,783,143
Ocean Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands)
(Unaudited)
Three Months Ended
March 31,
2000 1999
Operating Activities:
Net income (loss) $42,978 $(81,051)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation, depletion and amortization 80,080 58,608
Impairment of oil and gas properties --- 28,500
Deferred income taxes 28,245 (17,361)
Merger and integration costs not yet paid --- 40,652
Other (3,158) 3,309
148,145 32,657
Changes in operating assets and
liabilities, net of acquisitions (58,500) 43,113
Net Cash Provided by Operating Activities 89,645 75,770
Investing Activities:
Capital expenditures (123,484) (51,726)
Acquisition costs, net of cash acquired (286) (1,841)
Proceeds from sales of property,
plant and equipment 90,226 39,564
Net Cash Used in Investing Activities (33,544) (14,003)
Financing Activities:
Net proceeds (payments) from revolver
and other borrowings (48,157) (32,522)
Deferred financing costs --- (6,370)
Other 56 (791)
Net Cash Used in Financing Activities (48,101) (39,683)
Increase in Cash and Cash Equivalents 8,000 22,084
Cash and Cash Equivalents at Beginning of Period 64,889 10,706
Cash and Cash Equivalents at End of Period $72,889 $32,790
Ocean Energy, Inc.
Operational Information (A)
(Unaudited)
Three Months Ended
March 31,
2000 1999
Financial Data (Dollars in Thousands):
Operating Profit (Loss):
Oil and Gas Operations $110,750 $(25,137)
Corporate (10,704) (6,013)
Depreciation, Depletion and Amortization:
Oil and Gas Operations $78,498 $57,171
Corporate 1,582 1,437
Operations Data:
Net Daily Natural Gas Production (MMcf):
Domestic 374.3 251.5
Cote d'Ivoire 32.5 23.5
Egypt .6 ---
Other International (B) 9.4 36.0
Total 416.8 311.0
Average Natural Gas Prices ($ per Mcf) (C):
Domestic $2.43 $1.65
Cote d'Ivoire $2.01 $1.83
Egypt $5.06 $---
Other International (B) $3.35 $1.54
Weighted Average $2.42 $1.65
Average Natural Gas Prices including
Hedging Activities ($ per Mcf) $2.46 $1.68
Net Daily Oil and NGL Production (Bbl):
Domestic 32,808 39,811
Equatorial Guinea 21,300 19,400
Cote d'Ivoire 4,568 4,489
Egypt 9,446 ---
Other International (B) 4,873 1,233
Total 72,995 64,933
Average Oil and NGL Prices ($ per Bbl) (C):
Domestic $27.85 $11.03
Equatorial Guinea $26.35 $11.28
Cote d'Ivoire $23.74 $9.88
Egypt $26.16 $---
Other International (B) $18.36 $11.10
Weighted Average $26.30 $11.03
Average Oil and NGL Prices including
Hedging Activities ($ per Bbl) $22.99 $10.04
(A) The Company's Egyptian operations, certain international operations,
and portions of its domestic and Cote d'Ivoire operations were
acquired as a result of the merger on March 30, 1999.
(B) Other International includes primarily Russia and Indonesia at
March 31, 2000 and Canada at March 31, 1999.
(C) All price information excludes the results of hedging activities,
unless otherwise stated.
SOURCE Ocean Energy, Inc.
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Related links:
http://www.oceanenergy.com
Company News On-Call:
http://www.prnewswire.com/comp/913463.html or fax,
800-758-5804, ext. 913463
CONTACT:
financial, Bruce Busmire, 713-265-6161, or
media, Janice Aston White, 713-265-6164, both of Ocean Energy,
Inc.
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