HOUSTON, Oct. 25 /PRNewswire/ -- Ocean Energy, Inc. (NYSE: OEI) today
announced its best quarterly financial performance ever with third quarter
2000 net income of $57 million or $0.33 per diluted share on revenues of
$261 million. This compares to net income of $28 million or $0.16 per diluted
share on revenues of $214 million for the third quarter of 1999.
"The higher earnings are attributable to strong commodity prices and to
increased production over second quarter 2000 results," said James T. Hackett,
Chairman of the Board, President and Chief Executive Officer. "We also
continue to make substantial progress from both an operational and financial
perspective. Through the first nine months of the year, we have more than
replaced our forecasted 2000 production with new reserves. This positions us
to achieve in excess of 175 percent year-end reserve replacement at $6 or less
per barrel of oil equivalent finding and development cost. In addition, we
continued to strengthen our balance sheet by substantially reducing our long-
term debt during the third quarter through a series of financial initiatives
and a commitment to disciplined spending."
Discretionary cash flow for the first nine months of the year was
$489 million, compared to $243 million for the same period last year. The
increase in cash flow was primarily attributable to higher realized oil and
gas prices and decreased interest expense. Cash flow beyond planned capital
expenditures for the nine months has been used primarily to improve the
balance sheet. At the end of the quarter, debt-to-total capitalization was
49 percent, the lowest level in three years.
Average daily production for the third quarter was 409 million cubic feet
of gas (MMCF) and 63,285 barrels of oil, for an average of approximately
131,500 barrels of oil equivalent (BOE), a three percent improvement over
second quarter 2000. Continued increases in production are expected during
the fourth quarter from on-going development drilling in the Zafiro field in
Equatorial Guinea, and exploitation programs in the Gulf of Mexico and in
Egypt.
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 Cote d'Ivoire,
Equatorial Guinea and Angola, where it is the only U.S. independent with
acreage and working interests. The company also conducts operations in the
republics of Egypt, Tatarstan, Pakistan, Yemen and Indonesia.
Financial statement information is attached. A conference call will be
conducted on October 25, 2000 at 10:00 a.m. CDT. The call will be broadcast
live via Internet web cast and may be accessed through Ocean's website at
http://www.oceanenergy.com.
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 Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Revenues $261,089 $214,393 $743,586 $516,293
Costs of Operations:
Operating expenses 57,330 54,672 172,040 165,278
Depreciation, depletion
and amortization 76,886 85,615 229,918 233,732
Impairment of oil
and gas properties --- --- --- 28,500
General and administrative 6,231 4,955 21,303 18,038
140,447 145,242 423,261 445,548
Operating Profit 120,642 69,151 320,325 70,745
Other (Income) Expense:
Interest expense 19,756 30,410 57,850 86,601
Merger and integration costs --- 3,176 3,273 43,828
Interest income and other (915) (269) (1,747) (383)
18,841 33,317 59,376 130,046
Income (Loss) Before
Income Taxes 101,801 35,834 260,949 (59,301)
Income Tax Expense (Benefit) 43,932 6,404 114,609 (9,269)
Income (Loss) from
Continuing Operations 57,869 29,430 146,340 (50,032)
Loss from Discontinued
Operations, net of
income taxes --- (625) --- (78)
Net Income (Loss) 57,869 28,805 146,340 (50,110)
Preferred Stock Dividend 813 819 2,438 2,456
Net Income (Loss) Available
to Common Shareholders $57,056 $27,986 $143,902 $(52,566)
Basic Earnings (Loss) Per Common Share:
Income (Loss) from
Continuing Operations $0.34 $0.17 $0.86 $(0.36)
Discontinued Operations --- --- --- ---
Net Income (Loss) to
Common Shareholders $0.34 $0.17 $0.86 $(0.36)
Diluted Earnings (Loss) Per Common Share:
Income (Loss) from
Continuing Operations $0.33 $0.16 $0.83 $(0.36)
Discontinued Operations --- --- --- ---
Net Income (Loss) to
Common Shareholders $0.33 $0.16 $0.83 $(0.36)
Weighted Average Number of
Common Shares Outstanding:
Basic 167,125 166,680 167,061 145,670
Diluted 177,035 170,629 176,448 145,670
Ocean Energy, Inc.
Condensed Consolidated Balance Sheets
(Amounts in Thousands)
(Unaudited)
September 30, December 31,
2000 1999
Assets:
Current Assets $289,425 $289,950
Property, Plant and Equipment, net 2,299,182 2,203,010
Other Assets 224,122 290,183
Total Assets $2,812,729 $2,783,143
Liabilities And Shareholders' Equity:
Total Current Liabilities $335,072 $381,941
Long-Term Debt 1,073,104 1,333,410
Other Noncurrent Liabilities 309,561 120,097
Shareholders' Equity 1,094,992 947,695
Total Liabilities and
Shareholders' Equity $2,812,729 $2,783,143
Ocean Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(Amounts in Thousands)
(Unaudited)
Nine Months Ended
September 30,
2000 1999
Operating Activities:
Net income (loss) $146,340 $(50,110)
Adjustments to reconcile net
income (loss) to net cash provided
by operating activities:
Depreciation, depletion and
amortization 229,918 233,732
Impairment of oil and gas properties --- 28,500
Deferred income taxes 99,833 (24,702)
Noncash merger and integration costs --- 21,047
Other 9,678 11,674
Changes in operating assets and
liabilities, net of acquisitions (85,621) (13,211)
Net Cash Provided By
Operating Activities 400,148 206,930
Investing Activities:
Capital expenditures of
continuing operations (413,349) (231,976)
Capital expenditures of
discontinued operations --- (5,040)
Acquisition costs, net of cash acquired (3,036) (2,345)
Proceeds from sales of property,
plant and equipment 86,125 390,479
Other (2,327) ---
Net Cash Provided By (Used In)
Investing Activities (332,587) 151,118
Financing Activities:
Net proceeds from (payments on)
borrowings (247,912) (410,824)
Proceeds from sales of common stock 20,600 2,572
Purchase of treasury stock (23,401) ---
Increase in deferred revenue 74,947 100,000
Proceeds from conveyances of
Section 29 credit properties 69,644 ---
Deferred financing costs --- (6,406)
Other (413) (219)
Net Cash Used In
Financing Activities (106,535) (314,877)
Increase (Decrease) in Cash
and Cash Equivalents (38,974) 43,171
Cash and Cash Equivalents at
Beginning of Period 64,889 10,706
Cash and Cash Equivalents at
End of Period $25,915 $53,877
Ocean Energy, Inc.
Operational Information
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Financial Data (Dollars in Thousands):
Operating Profit (Loss):
Oil and Gas Operations $128,533 $76,398 $346,453 $94,892
Corporate (7,891) (7,247) (26,128) (24,147)
Depreciation, Depletion and Amortization:
Oil and Gas Operations 75,226 83,323 225,093 227,623
Corporate 1,660 2,292 4,825 6,109
Operations Data:
Wells Drilled:
Gross 99 103 234 206
Net 64 70 133 125
Success Rate 79% 74% 79% 78%
Net Daily Natural Gas Production (MMcf):
Domestic 386 428 368 382
Cote d'Ivoire 14 34 25 3
Other International 9 8 10 19
Total 409 470 403 431
Average Natural Gas Prices ($ per Mcf) (A):
Domestic $4.09 $2.38 $3.30 $2.03
Cote d'Ivoire $2.02 $1.77 $2.19 $1.73
Other International $3.92 $2.44 $3.62 $1.74
Weighted Average $4.01 $2.34 $3.24 $2.00
Average Natural Gas
Prices including Hedging
Activities ($ per Mcf) $3.65 $2.36 $3.06 $2.01
Net Daily Oil and NGL Production (Bbl):
Domestic 25,206 36,522 27,737 38,340
Equatorial Guinea 21,053 20,774 21,277 19,902
Cote d'Ivoire 3,433 5,046 4,001 4,839
Egypt 8,837 10,729 9,099 7,447
Other International 4,756 4,603 4,773 3,437
Total 63,285 77,674 66,887 73,965
Average Oil and NGL Prices ($ per Bbl) (A):
Domestic $26.05 $18.99 $25.42 $15.07
Equatorial Guinea $25.75 $21.69 $26.46 $16.11
Cote d'Ivoire $28.53 $20.24 $25.23 $16.56
Egypt $27.60 $20.06 $26.97 $17.70
Other International $22.68 $12.92 $19.19 $9.88
Weighted Average $26.05 $19.58 $25.51 $15.47
Average Oil and NGL Prices
including Hedging
Activities ($ per Bbl) $21.24 $15.74 $22.16 $13.84
(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:
financial, Bruce Busmire, 713-265-6161, or
media, Janice Aston White, 713-265-6164, both of Ocean Energy,
Inc.
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