LEXINGTON, Ky., May 17 /PRNewswire-FirstCall/ -- Daugherty Resources, Inc.
(Nasdaq: NGAS) today reported net income of $767,241 for the first quarter of
2004 on total revenues of $15,565,882, up 76% from revenues of $8,830,854 in
the same quarter last year. Earnings per share were $0.06 for the current
quarter on 12,052,183 weighted average basic shares outstanding, compared to
$0.33 per share on 5,862,502 weighted average basic shares outstanding for the
first quarter of 2003. Highlights for the current reported quarter include:
- 53 gross (19.9380 net) natural gas wells drilled, all successfully
- Contract drilling revenues increase to $14,326,125, up 78% from Q1 in
2003
- Production revenues reach $791,289, up 50% from Q1 in 2003, with 30%
gain in production volumes
- Average price for natural gas production up 19% to $5.51 per Mcf,
compared to $4.62 in Q1 of 2003
- Pre-tax profit of $1,320,379, compared to $1,929,212 in Q1 of 2003
"Our successful drilling continued at a record pace," said William S.
Daugherty, President and CEO of Daugherty Resources. "We were 100 percent
successful in our 53 natural gas wells drilled in the first quarter, including
15 new wells on our Leatherwood Prospect. Our profitability was impacted by
drilling expenses that were up sharply from deeper average wells and higher
steel casing costs. We expect to see these expenses normalized as a
percentage of contract drilling revenue later in the year as adjustments in
our turnkey drilling contracts are implemented."
A conference call will be held at 2 p.m. (EDT) today to discuss first
quarter results. The conference call will be a live simulcast on the
Internet and can be accessed by logging
onto http://www.firstcallevents.com/service/ajwz406206132gf12.html or the
company's web site at http://www.ngas.com . Daugherty Resources will have a
slide presentation available to augment management's formal presentation,
which will be accessible at http://www.ngas.com . A replay of the conference
call will be available at the company's web site for 60 days.
Daugherty Resources is a natural resources company focused on natural gas
development drilling and reserve growth. Based in Lexington, Kentucky, the
Company specializes in developing its own geological prospects concentrated in
the Appalachian Basin. Quarterly financial information for the Company is
provided below. Additional information, including the Company's report on
Form 10-QSB for the first quarter of 2004, can be accessed on its website
at http://www.ngas.com .
This release includes forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act relating to matters such as
anticipated operating and financial performance and prospects. Actual
performance and prospects may differ materially from anticipated results due
to economic conditions and other risks, uncertainties and circumstances partly
or totally outside the control of the company, including risks of production
variances from expectations, volatility of product prices, the level of
capital expenditures required to fund ongoing drilling initiatives and the
ability of the company to implement its business strategy. These and other
risks are described in the company's periodic reports filed with the United
States Securities and Exchange Commission.
DAUGHERTY RESOURCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2004 2003
ASSETS (Unaudited)
Current assets:
Cash $15,388,208 $22,594,993
Subscriptions receivable -- 2,335,009
Accounts receivable 759,048 503,177
Prepaid expenses and
other current assets 812,702 773,415
Loans to related parties 140,780 140,780
Total current assets 17,100,738 26,347,374
Bonds and deposits 99,000 99,000
Oil and gas properties 22,460,993 16,369,859
Property and equipment 2,103,234 2,054,088
Loans to related parties 482,741 517,940
Investments 119,081 119,081
Deferred financing costs 106,713 247,923
Goodwill 313,177 313,177
Total assets $42,785,677 $46,068,442
LIABILITIES
Current liabilities:
Accounts payable 2,257,275 1,445,603
Accrued liabilities 3,676,596 2,865,045
Income taxes payable 184,866 144,450
Customers' drilling deposits 2,987,600 10,162,600
Long term debt, current
portion 401,932 397,722
Total current liabilities 9,508,269 15,015,420
Future income taxes 700,369 257,647
Long term debt 3,162,788 4,739,387
Total liabilities 13,371,426 20,012,454
SHAREHOLDERS' EQUITY
Capital stock
Authorized:
5,000,000 Preferred shares, non-cumulative, convertible
100,000,000 Common shares
Issued:
2,736,905 Common
(12/31/03 - 10,676,030) 44,142,617 36,244,623
21,100 Common held in
treasury, at cost (23,630) (23,630)
Paid-in capital-options
and warrants 1,150,145 1,140,321
To be issued:
140,744 Common
(12/31/03 - 1,403,335) 601,162 5,917,958
45,870,294 43,279,272
Deficit (16,456,043) (17,223,284)
Total shareholders' equity 29,414,251 26,055,988
Total liabilities and
shareholders' equity $42,785,677 $46,068,442
DAUGHERTY RESOURCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
2004 2003
REVENUE
Contract drilling $14,326,125 $8,033,000
Oil and gas production 791,289 529,004
Gas transmission and
compression 448,468 268,850
Total revenue 15,565,882 8,830,854
DIRECT EXPENSES
Contract drilling 10,104,648 3,395,165
Oil and gas production 277,708 316,014
Gas transmission and
compression 399,866 108,189
Total direct expenses 10,782,222 3,819,368
GROSS PROFIT 4,783,660 5,011,486
OTHER INCOME (EXPENSES)
Selling, general and
administrative (3,185,518) (2,692,215)
Compensation from options
and warrants (30,074)
(153,600)
Depreciation, depletion
and amortization (253,129) (179,080)
Interest expense (89,168) (82,453)
Interest income 86,862 28,828
Other, net 7,746 (3,754)
Total other income
(expenses) (3,463,281) (3,082,274)
INCOME BEFORE INCOME TAXES 1,320,379 1,929,212
INCOME TAX EXPENSE
Current 110,416 256,235
Future 442,722 475,865
Benefit realized on
loss carried forward -- (732,100)
553,138 --
NET INCOME 767,241 1,929,212
DEFICIT, beginning of period (17,223,284) (20,883,424)
DEFICIT, end of period $(16,456,043) $(18,954,212)
NET INCOME PER SHARE
Basic $0.06 $0.33
Diluted $0.05 $0.24
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic 12,052,183 5,862,502
Diluted 15,633,855 8,295,832
SOURCE Daugherty Resources, Inc.
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Related links:
http://www.ngas.com
CONTACT:
Media, Teresa Barnes for Daugherty Resources,
Inc., +1-859-263-3948, or Cell, +1-303-521-4080; or Investor
Relations, Michael P. Windisch, CFO of Daugherty Resources, Inc.,
+1-859-263-3948, or Fax, +1-859-263-4228, or E-mail,
ngas@ngas.com
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