DALLAS, Aug. 17 /PRNewswire-FirstCall/ -- National Energy Group, Inc.
(OTC Bulletin Board: NEGI) today announces results for the 2nd quarter ended
June 30, 2004.
Results of Operations
On September 12, 2001 as provided in the Company's Joint Plan of
Reorganization, 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 $8.2 million and
$2.9 million, respectively, for the quarter ended June 30, 2004.
For the Three Months Ended June 30, 2004
Net income of $3.2 million was recognized for the three months ended
June 30, 2004 compared with net income of $2.2 million for the comparable 2003
period.
Total revenues increased $2.4 million (27.6%) to $11.1 million for the
three months ended June 30, 2004 from $8.7 million for the comparable 2003
period.
For the Six Months Ended June 30, 2004
Net income of $6.2 million was recognized for the six months ended
June 30, 2004 compared with net income of $4.9 million for the comparable 2003
period.
Total revenues increased $2.3 million (11.9%) to $21.6 million for the six
months ended June 30, 2004 from $19.3 million for the comparable 2003 period.
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 Six Months Ended
June 30, June 30,
2003 2004 2003 2004
Results of Operations Data:
Revenues:
Accretion of Investment
in NEG Holding LLC $ 6,701 $ 8,219 $15,451 $16,124
Management fee 2,006 2,861 3,880 5,479
Total revenue 8,707 11,080 19,331 21,603
Costs and expenses:
General and
administrative 1,875 2,750 3,588 5,180
Total costs and
expenses 1,875 2,750 3,588 5,180
Operating income 6,832 8,330 15,743 16,423
Interest expense (3,485) (3,485) (8,145) (6,970)
Interest income and
other, net 8 8 17 13
Income before income
taxes 3,355 4,853 7,615 9,466
Income tax expense (1,174) (1,699) (2,665) (3,313)
Net income to common
shareholders $ 2,181 $ 3,154 $ 4,950 $ 6,153
Cash Flow Data:
Cash flow from
operations (A) $(3,855) $(4,023) $(8,855) $ (7,825)
Per share data:
Net income per common
share, basic and
diluted $ .19 $ .28 $ .44 $ .55
Cash flow from
operations (A) $ (.34) $ (.36) $ (.79) $ (.69)
Shares used in per share
computations :
Earnings per share,
basic and diluted 11,191 11,191 11,191 11,191
Cash flow per share,
basic and diluted 11,191 11,191 11,191 11,191
National Energy Group, Inc.
Condensed Balance Sheet
(In thousands)
December 31, June 30,
2003 2004
Assets
Cash, cash equivalents and marketable
securities $ 3,159 $ 3,512
Other current assets 1,229 1,097
Investment in NEG Holding LLC 69,347 77,481
Deferred tax asset 25,949 22,784
Total assets $ 99,684 $104,874
Liabilities and Stockholders' Equity (Deficit):
Current liabilities $ 2,690 $ 2,747
Senior notes 148,637 148,637
Deferred gain on senior note redemption 5,775 4,755
Stockholders' deficit (57,418) (51,265)
Total liabilities and stockholders' equity
(deficit) $ 99,684 $104,874
(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
|
