HOUSTON, July 26 /PRNewswire/ -- Ocean Energy, Inc. (NYSE: OEI) today
announced second quarter 2000 net income of $45 million or $0.26 per diluted
share on revenues of $236 million. This compares to net income of $2 million
or $0.01 per diluted share on revenues of $196 million for the second quarter
of 1999.
"Along with our strong financial performance, we are on track to meet
year-end production rates and long-term reserve replacement goals and to lower
our debt-to-equity ratio through increased cash flow and disciplined
spending," said James T. Hackett, Chairman of the Board, President and Chief
Executive Officer. "The second half of the year will be a period of
increasing exploratory and production activity. We are especially pleased
with our strategic position and drilling opportunities in West Africa where
Ocean is the leading U.S. independent in terms of acreage and production."
Discretionary cash flow for the first half of 2000 was $301 million,
compared to $116 million for the same period in 1999. The increase in cash
flow was primarily attributable to higher realized oil and gas prices and
decreased operating costs and interest expense. Capital expenditures for the
first half of the year were $251 million, divided almost evenly between
Ocean's three geographic business units, U.S. Onshore, Gulf of Mexico, and
International.
Average daily production for the second quarter was 382.4 million cubic
feet of gas (MMCF) and 64,429 barrels of oil, for an average of approximately
128,200 barrels of oil equivalent (BOE).
For the second quarter of 2000, average realized oil prices increased to
$22.14 per barrel, compared to $15.03 per barrel in the same period of 1999.
Natural gas prices averaged $3.06 per thousand cubic feet of natural gas (MCF)
during the quarter, compared to $1.90 per MCF of gas in the same three months
last year.
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 activities in Cote d'Ivoire, Equatorial
Guinea and Angola, where it is the only U.S. independent with acreage and
working interest. The company also explores for and produces oil and gas in
the republics of Egypt, Tatarstan, Pakistan, Yemen 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, 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 Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues $ 236,429 $ 196,206 $ 482,497 $ 301,900
Costs of Operations:
Operations and maintenance 57,890 65,446 114,710 110,606
Depreciation, depletion
and amortization 72,952 89,509 153,032 148,117
Impairment of oil and
gas properties -- -- -- 28,500
General and administrative 5,950 8,507 15,072 13,083
136,792 163,462 282,814 300,306
Operating Profit 99,637 32,744 199,683 1,594
Other (Income) Expense:
Interest expense 18,866 31,021 38,094 56,191
Merger and integration
costs -- -- 3,273 40,652
Interest income and other (93) 369 (832) (114)
18,773 31,390 40,535 96,729
Income (Loss) Before
Income Taxes 80,864 1,354 159,148 (95,135)
Income Tax Expense (Benefit) 35,371 (235) 70,677 (15,673)
Income (Loss) from
Continuing Operations 45,493 1,589 88,471 (79,462)
Income from Discontinued
Operations, net of
income taxes -- 547 -- 547
Net Income (Loss) 45,493 2,136 88,471 (78,915)
Preferred Stock Dividend 812 836 1,625 1,637
Net Income (Loss) Available
to Common Shareholders $ 44,681 $ 1,300 $ 86,846 $ (80,552)
Basic Earnings (Loss) Per Common Share:
Income (Loss) from
Continuing Operations $ 0.27 $ 0.01 $ 0.52 $ (0.60)
Discontinued Operations -- -- -- --
Net Income (Loss)
to Common Shareholders $ 0.27 $ 0.01 $ 0.52 $ (0.60)
Diluted Earnings (Loss) Per Common Share:
Income (Loss) from
Continuing Operations $ 0.26 $ 0.01 $ 0.50 $ (0.60)
Discontinued Operations -- -- -- --
Net Income (Loss)
to Common Shareholders $ 0.26 $ 0.01 $ 0.50 $ (0.60)
Weighted Average Number of Common Shares Outstanding:
Basic 167,217 166,441 167,022 134,991
Diluted 177,484 168,371 176,057 134,991
Ocean Energy, Inc.
Condensed Consolidated Balance Sheets
(Amounts in Thousands)
(Unaudited)
June 30, December 31,
2000 1999
Assets:
Current Assets $ 336,540 $ 289,950
Property, Plant and Equipment, net 2,208,984 2,203,010
Other Assets 231,518 290,183
Total Assets $2,777,042 $2,783,143
Liabilities And Shareholders' Equity:
Current Liabilities $ 342,468 $ 368,290
Current Maturities of Long-Term Debt 8,023 13,651
Total Current Liabilities 350,491 381,941
Long-Term Debt 1,257,268 1,333,410
Other Noncurrent Liabilities 138,683 120,097
Shareholders' Equity 1,030,600 947,695
Total Liabilities and
Shareholders' Equity $2,777,042 $2,783,143
Ocean Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands)
(Unaudited)
Six Months Ended
June 30,
2000 1999
Operating Activities:
Net income (loss) $ 88,471 $ (78,915)
Adjustments to reconcile net income
(loss) to net cash provided
by operating activities:
Depreciation, depletion and amortization 153,032 148,117
Impairment of oil and gas assets -- 28,500
Deferred income taxes 56,003 (25,727)
Non-cash merger and integration costs -- 21,047
Other 3,453 6,659
Changes in operating assets
and liabilities, net of acquisitions (87,982) 5,713
Net Cash Provided By Operating Activities 212,977 105,394
Investing Activities:
Capital expenditures (251,348) (144,082)
Capital expenditures
of discontinued operations -- (2,171)
Acquisition costs, net of cash acquired (309) (2,327)
Proceeds from sales of property, plant
and equipment 92,655 109,442
Net Cash Used In Investing Activities (159,002) (39,138)
Financing Activities:
Net proceeds from (payments on) borrowings (25,957) (123,742)
Proceeds from sales of common stock 11,518 311
Purchase of treasury stock (19,173) --
Proceeds from deferred revenue -- 100,000
Deferred financing costs -- (6,406)
Other (413) (759)
Net Cash Used In Financing Activities (34,025) (30,596)
Increase in Cash and Cash Equivalents 19,950 35,660
Cash and Cash Equivalents at Beginning
of Period 64,889 10,706
Cash and Cash Equivalents at End
of Period $ 84,839 $ 46,366
Ocean Energy, Inc.
Operational Information
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Financial Data (Dollars in Thousands):
Operating Profit (Loss):
Oil and Gas Operations $ 107,170 $ 43,631 $ 217,920 $ 18,494
Corporate (7,533) (10,887) (18,237) (16,900)
Depreciation, Depletion and Amortization:
Oil and Gas Operations 71,369 87,129 149,867 144,300
Corporate 1,583 2,380 3,165 3,817
Operations Data:
Net Daily Natural Gas Production (MMcf):
Domestic 344.2 465.0 359.2 358.9
Cote d'Ivoire 28.8 32.1 30.7 27.8
Other International 9.4 12.9 9.7 24.3
Total 382.4 510.0 399.6 411.0
Average Natural Gas Prices ($ per Mcf) (a):
Domestic $ 3.36 $ 1.92 $ 2.88 $ 1.82
Cote d'Ivoire $ 2.47 $ 1.63 $ 2.23 $ 1.71
Other International $ 3.44 $ 1.81 $ 3.45 $ 1.61
Weighted Average $ 3.30 $ 1.90 $ 2.84 $ 1.80
Average Natural Gas Prices
including Hedging
Activities ($ per Mcf) $ 3.06 $ 1.90 $ 2.75 $ 1.81
Net Daily Oil and NGL Production (Bbl):
Domestic 25,220 38,722 29,016 39,263
Equatorial Guinea 21,484 19,516 21,390 19,458
Cote d'Ivoire 4,011 4,975 4,286 4,734
Egypt 9,022 11,495 9,231 5,779
Other International 4,692 4,437 4,780 2,844
Total 64,429 79,145 68,703 72,078
Average Oil and NGL Prices ($ per Bbl) (a):
Domestic $ 26.81 $ 15.44 $ 27.39 $ 13.22
Equatorial Guinea $ 27.27 $ 14.84 $ 26.81 $ 13.07
Cote d'Ivoire $ 24.07 $ 18.75 $ 23.91 $ 14.57
Egypt $ 27.20 $ 15.48 $ 26.67 $ 15.48
Other International $ 16.49 $ 6.38 $ 17.46 $ 7.41
Weighted Average $ 26.09 $ 15.00 $ 26.20 $ 13.22
Average Oil and NGL Prices
including Hedging
Activities ($ per Bbl) $ 22.14 $ 15.03 $ 22.59 $ 12.79
(a) 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:
Bruce Busmire, financial, 713-265-6161, or
Janice Aston White, media, 713-265-6164, both of Ocean Energy
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