HOUSTON, April 25 /PRNewswire/ -- Ocean Energy, Inc. (NYSE: OEI) today
announced its fourth consecutive quarter of record income with first quarter
earnings of $123 million or $0.70 per fully diluted share on revenues of
$403 million. This compares to net income of $43 million or $0.25 per fully
diluted share on revenues of $251 million for the first quarter of 2000.
"We continue to benefit from a growing production base and strong
commodity prices," said James T. Hackett, chairman, president and chief
executive officer. "This is the third consecutive quarter that production has
increased, with an almost four percent rise in natural gas production over
last quarter. The company also continues to implement one of the industry's
most aggressive deepwater drilling programs, balancing our exploitation
capabilities with significant exploration potential."
Discretionary cash flow for the first quarter was $292 million, compared
to $156 million for the same period in 2000 and to $209 million in the
previous quarter. Discretionary cash flow per diluted share for the first
quarter was $1.65 compared to $0.90 for the same period in 2000 and to
$1.19 for the previous quarter. The increase in cash flow was primarily
attributable to increased production and higher realized gas prices.
Average daily production for the quarter was 143,000 barrels of oil
equivalent (MBOEPD). Production increased nine percent as compared to the
first three months of 2000, excluding production from the sale of the East Bay
assets on March 31, 2000. Compared to the fourth quarter 2000 production of
139 MBOEPD, first quarter production increased three percent.
Operational accomplishments included:
-- The expansion of the deepwater drilling programs in West Africa and
the Gulf of Mexico. Currently, the company has five deepwater wells
underway, including the Semba prospect on Block 24 off the coast of
Angola in West Africa in partnership with ExxonMobil, the Ponza
prospect in the Keithley Canyon area of the Gulf of Mexico in
partnership with Unocal, and a delineation well on its Magnolia
discovery in Garden Banks Block 783 in the Gulf of Mexico in
partnership with Conoco. Drilling operations on these three wells
are expected to be concluded during the second quarter. In the
Nansen and Boomvang development program, four Nansen and three
Boomvang wells were drilled and two more are underway, and the
results continue to meet or exceed expectations.
-- The completion of a deepwater Gulf of Mexico exploration agreement
that establishes Ocean as one of the leading independents in terms
of deepwater leasehold acreage. The company acquired an average
working interest of approximately 43 percent in 181 undeveloped
deepwater blocks within several proven trends in the Gulf of Mexico.
Ocean will serve as operator for at least 25 percent of the first
15 exploratory wells in the multi-year drilling program. Including
this agreement, Ocean will hold interests in approximately
1.5 million gross acres in the Gulf, covering 274 blocks.
-- The integration of the Texoil, Inc. acquisition. The transaction
added estimated proved reserves of approximately 150 billion cubic
feet of natural gas equivalent, of which 57 percent are gas
reserves. Ocean now serves as operator of 80 percent of the newly
acquired assets, which complement its core assets in South Texas and
strong position in Louisiana.
-- The signing of a definitive agreement to purchase the assets of
EnSight Resources, L.L.C. The assets are situated in and around
existing Ocean Energy-operated properties. The transaction will add
estimated proved reserves of approximately 104 billion cubic feet of
natural gas equivalents, of which 88 percent are gas reserves. Upon
closing, Ocean will operate 42 percent of the assets, representing
66 percent of the value of the properties.
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 holds a leading position among U.S.
independents in West Africa with oil and gas activities in Equatorial Guinea,
Cote d'Ivoire and Angola. The company also conducts operations in the
republics of Egypt, Russia, Pakistan, and Indonesia.
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, 2000. 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,
2001 2000
Revenues $403,255 $251,409
Costs of Operations:
Operating expenses 74,564 62,161
Depreciation, depletion and amortization 82,455 80,080
General and administrative 6,141 9,122
163,160 151,363
Operating Profit 240,095 100,046
Other (Income) Expense:
Interest expense 16,944 19,228
Merger and integration costs --- 3,273
Interest income and other (1,182) (739)
Income Before Income Taxes 224,333 78,284
Income Tax Expense 100,949 35,306
Net Income 123,384 42,978
Preferred Stock Dividend 813 813
Net Income Available to Common Shareholders $122,571 $42,165
Earnings Per Share:
Basic $0.73 $0.25
Diluted $0.70 $0.25
Cash Dividends Declared Per Common Share $0.04 ---
Weighted Average Number of Common
Shares Outstanding:
Basic 168,279 167,031
Diluted 177,011 174,550
Ocean Energy, Inc.
Condensed Consolidated Balance Sheets
(Amounts in Thousands)
(Unaudited)
March 31, December 31,
2001 2000
Assets:
Current Assets $338,066 $324,554
Property, Plant and Equipment, Net 2,663,140 2,367,950
Other Assets 81,494 197,896
Total Assets $3,082,700 $2,890,400
Liabilities And Shareholders' Equity:
Current Liabilities $389,079 $393,857
Long-Term Debt 1,102,262 1,032,564
Other Noncurrent Liabilities 309,058 311,291
Shareholders' Equity 1,282,301 1,152,688
Total Liabilities and Shareholders' Equity $3,082,700 $2,890,400
Ocean Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands)
(Unaudited)
Three Months Ended
March 31,
2001 2000
Operating Activities:
Net income $123,384 $42,978
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and amortization 82,455 80,080
Deferred income taxes 75,707 28,245
Other 10,184 1,800
Changes in operating assets and liabilities,
net of acquisitions (42,833) (63,458)
Net Cash Provided by Operating Activities 248,897 89,645
Investing Activities:
Capital expenditures (186,299) (123,484)
Acquisition costs, net of cash acquired (120,362) (286)
Proceeds from sales of property, plant and
equipment (68) 90,226
Net Cash Used in Investing Activities (306,729) (33,544)
Financing Activities:
Net proceeds from (payments on) borrowings 60,374 (48,157)
Proceeds from exercise of common stock options 18,825 1,738
Other (6,855) (1,682)
Net Cash Provided by (Used in) Financing
Activities 72,344 (48,101)
Increase in Cash and Cash Equivalents 14,512 8,000
Cash and Cash Equivalents at Beginning of Period 23,039 64,889
Cash and Cash Equivalents at End of Period $37,551 $72,889
Ocean Energy, Inc.
Operational Information
(Unaudited)
Three Months Ended
March 31,
2001 2000
Financial Data (Dollars in Thousands):
Operating Profit (Loss):
Oil and Gas Operations $248,092 $110,750
Corporate (7,997) (10,704)
Depreciation, Depletion and Amortization:
Oil and Gas Operations 80,599 78,498
Corporate 1,856 1,582
Operations Data:
Wells Drilled:
Gross 99 44
Net 32 19
Success Rate 90% 91%
Net Daily Natural Gas Production (MMcf):
Domestic 403 374
Cote d'Ivoire 20 33
Other International 8 10
Total 431 417
Average Natural Gas Prices ($ per Mcf) (*):
Domestic $7.37 $2.57
Cote d'Ivoire $2.40 $2.01
Other International $5.51 $3.46
Weighted Average $7.11 $2.55
Average Natural Gas Prices Including the
Impact of Financial Derivatives ($ per Mcf) $7.01 $2.59
Net Daily Oil and NGL Production (MBbl):
Domestic 27 33
Equatorial Guinea 27 21
Cote d'Ivoire 4 5
Egypt 8 9
Other International 5 5
Total 71 73
Average Oil and NGL Prices ($ per Bbl) (*):
Domestic $26.73 $26.31
Equatorial Guinea $21.85 $26.35
Cote d'Ivoire $22.29 $23.74
Egypt $23.38 $26.16
Other International $16.26 $18.36
Weighted Average $23.51 $25.61
Average Oil and NGL Prices Including the
Impact of Financial Derivatives ($ per Bbl) $20.44 $23.06
(*) All price information excludes the impact of financial derivatives,
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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