DALLAS, Nov. 25 /PRNewswire-FirstCall/ -- National Energy Group, Inc.
(OTC Bulletin Board: NEGI) today announces results for the third quarter ended
September 30, 2003.
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 $7.2 million and
$1.8 million, respectively, for the quarter ended September 30, 2003 and
$22.7 million and $5.7 million, respectively, for the nine months ended
September 30, 2003.
For the Three Months Ended September 30, 2003
Net income of $2.6 million was recognized for the three months ended
September 30, 2003 compared with net income of $2.5 million for the comparable
2002 period.
Total revenues decreased $1.2 million (11.8%) to $9.0 million for the
third quarter of 2003 from $10.2 million for the third quarter of 2002.
For the Nine Months Ended September 30, 2003
Net income of $7.5 million was recognized for the nine months ended
September 30, 2003 compared with net income of $6.9 million for the comparable
2002 period.
Total revenue decreased $1.7 million (5.6%) to $28.4 million for the
nine months ended September 30, 2003 from $30.1 million for the comparable
2002 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.
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 Nine Months Ended
September 30, June 30,
2002 2003 2002 2003
Results of Operations Data:
Revenues:
Accretion of investment
in NEG Holding LLC $ 8,445 $ 7,223 $ 24,311 $ 22,673
Management fee 1,783 1,817 5,817 5,697
Total revenue 10,228 9,040 30,128 28,370
Costs and expenses:
General and administrative 1,631 1,591 5,315 5,179
Total costs and expenses 1,631 1,591 5,315 5,179
Operating income 8,597 7,449 24,813 23,191
Interest expense (4,742) (3,485) (14,241) (11,630)
Interest income and other,
net 4 8 17 26
Income before income taxes 3,859 3,972 10,589 11,587
Income tax expense (1,351) (1,390) (3,705) (4,055)
Net income to common
shareholders $ 2,508 $ 2,582 $ 6,884 $ 7,532
Cash Flow Data:
Cash flow from operations (A) $ (5,095) $ (3,762) $(15,251) $(12,617)
Per share data:
Net income per common share,
basic and diluted $ .22 $ .23 $ .62 $ .67
Cash flow from operations (A) $ (.46) $ (.34) $ (1.36) $ (1.13)
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,
2002 2003
Assets
Cash, cash equivalents
and marketable securities $ 3,477 $ 4,071
Other current assets 927 777
Investment in NEG Holding LLC 108,880 69,868
Deferred tax asset 25,522 21,466
Total assets $ 138,806 $ 96,182
Liabilities and Stockholders' Equity (Deficit):
Current liabilities $ 44,405 $ 6,719
Credit facility 10,940 ---
Senior notes 148,637 148,637
Deferred gain on senior note redemption 7,813 6,284
Stockholders' deficit (72,989) (65,458)
Total liabilities and
stockholders' equity $ 138,806 $ 96,182
(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, both of
National Energy Group, Inc., +1-214-692-9211, or fax,
+1-214-692-5055
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