DALLAS, Nov. 19 /PRNewswire-FirstCall/ -- National Energy Group, Inc.
(OTC Bulletin Board: NEGI) today announces results for the 3rd quarter ended
September 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 $8.9 million and
$2.6 million, respectively, for the quarter ended September 30, 2004.
For the Three Months Ended September 30, 2004
Net income of $3.7 million was recognized for the three months ended
September 30, 2004 compared with net income of $2.6 million for the comparable
2003 period.
Total revenues increased $2.6 million (28.9%) to $11.6 million for the
three months ended September 30, 2004 from $9.0 million for the comparable
2003 period.
For the Nine Months Ended September 30, 2004
Net income of $9.8 million was recognized for the nine months ended
September 30, 2004 compared with net income of $7.5 million for the comparable
2003 period.
Total revenues increased $4.8 million (16.9%) to $33.2 million for the
nine months ended September 30, 2004 from $28.4 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. Effective
November 16, 2004 the Company will manage the assets of Panaco, Inc. pursuant
to a management agreement.
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 Nine Months
Ended Ended
September 30, September 30,
2003 2004 2003 2004
Results of Operations Data:
Revenues:
Accretion of Investment in
NEG Holding LLC $7,223 $8,932 $22,673 $25,056
Management fees from
affiliates 1,817 2,641 5,697 8,120
Total revenue 9,040 11,573 28,370 33,176
Costs and expenses:
General and administrative 1,591 2,458 5,179 7,639
Total costs and expenses 1,591 2,458 5,179 7,639
Operating income 7,449 9,115 23,191 25,537
Interest expense (3,485) (3,485) (11,630) (10,455)
Interest income and other,
net 8 15 26 28
Income before income taxes 3,972 5,645 11,587 15,110
Income tax expense (1,390) (1,976) (4,055) (5,289)
Net income to common
shareholders $2,582 $3,669 $7,532 $9,821
Cash Flow Data:
Cash flow from operations (A) $(3,762) $(3,797)$(12,617) $(11,622)
Per share data:
Net income per common share,
basic and diluted $.23 $.33 $.67 $.88
Cash flow from operations (A) $(.34) $(.34) $(1.13) $(1.03)
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, September 30,
2003 2004
Assets
Cash, cash equivalents and marketable
securities $3,159 $3,860
Other current assets 1,229 1,031
Investment in NEG Holding LLC 69,347 86,413
Deferred tax asset 25,949 20,808
Total assets $99,684 $112,112
Liabilities and Stockholders' Equity
(Deficit):
Current liabilities $2,690 $6,826
Senior notes due to affiliate 148,637 148,637
Deferred gain on senior note redemption 5,775 4,246
Stockholders' deficit (57,418) (47,597)
Total liabilities and
stockholders' equity (deficit) $99,684 $112,112
(A) Cash flow from operations is shown before changes in working capital
accounts.
SOURCE National Energy Group, Inc.
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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
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