DALLAS, May 19 /PRNewswire-FirstCall/ -- National Energy Group, Inc.
(OTC Bulletin Board: NEGI) today announces results for the first quarter ended
March 31, 2004.
Results of Operations
On September 12, 2001, the Company contributed all its operating assets
and oil and gas properties excluding cash of $4.3 million to NEG Holding LLC
in exchange for an initial 50% membership interest (the "LLC Contribution").
Following the LLC Contribution, the Company no longer directly owns oil and
gas properties and will only recognize income from accretion of the preferred
investment and fees attributable to the management and operation of NEG
Holding LLC's oil and gas properties. The income from accretion of the
preferred investment and management fees amounted to $7.9 million and
$2.6 million, respectively, for the quarter ended March 31, 2004.
For the Three Months Ended March 31, 2004
Net income of $3.0 million was recognized for the three months ended
March 31, 2004 compared with net income of $2.8 million for the comparable
2003 period.
Total revenues decreased $.1 million (.9%) to $10.5 million for the first
quarter of 2004 from $10.6 million for the first quarter of 2003.
Oil and Gas Operations
NEG Holding LLC conducts its oil and gas operations through its affiliate,
NEG Operating LLC. The Company manages all of these oil and gas operations
pursuant to a management agreement with NEG Operating LLC. The Company also
manages the assets of TransTexas Gas Corporation for a monthly fee.
National Energy Group, Inc. is a Dallas, Texas based company.
This press release may contain projections and other forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. Any such projections or statements reflect the Company's
current views with respect to future events and financial performance. No
assurances can be given, however, that these events will occur or that such
projections will be achieved and actual results could differ materially from
those projected. A discussion of important factors that could cause actual
results to differ materially from those projected is included in the Company's
periodic reports filed with the Securities and Exchange Commission.
National Energy Group, Inc.
Summary Financial Results
(In thousands, except per share data)
Three months
ended
March 31,
2003 2004
Results of Operations Data:
Revenues:
Accretion of Investment in NEG Holding LLC $8,750 $7,904
Management fee 1,873 2,619
Total revenue 10,623 10,523
Costs and expenses:
General and administrative 1,712 2,431
Total costs and expenses 1,712 2,431
Operating income 8,911 8,092
Interest expense (4,660) (3,485)
Interest income and other, net 8 5
Income before income taxes 4,259 4,612
Income tax benefit (expense) (1,491) (1,615)
Net income to common shareholders $2,768 $2,997
Cash Flow Data:
Cash flow from operations (A) $(5,000) $(3,802)
Per share data:
Net income per common share, basic and diluted $.25 $.27
Cash flow from operations (A) $(.45) $(.34)
Shares used in per share computations :
Earnings per share, basic and diluted 11,191 11,191
Cash flow per share, basic and diluted 11,191 11,191
National Energy Group, Inc.
Condensed Balance Sheet
(In thousands)
December 31, March 31,
2003 2004
Assets
Cash, cash equivalents and marketable
securities $3,159 $3,422
Other current assets 1,229 1,227
Investment in NEG Holding LLC 69,347 77,251
Deferred tax asset 25,949 24,334
Total assets $99,684 $106,234
Liabilities and Stockholders' Equity
(Deficit):
Current liabilities $2,690 $6,752
Senior notes 148,637 148,637
Deferred gain on senior note redemption 5,775 5,265
Stockholders' deficit (57,418) (54,420)
Total liabilities and
stockholders' equity $99,684 $106,234
(A) Cash flow from operations is shown before changes in working capital
accounts.
SOURCE National Energy Group, Inc.
 back to top
Related links:
http://www.negx.com
Company News On-Call:
http://www.prnewswire.com/comp/122192.html
CONTACT:
Bob G. Alexander, or Philip D. Devlin, or
Randall D. Cooley, all of National Energy Group, Inc.,
+1-214-692-9211, or fax, +1-214-692-5055
|
