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| Costilla Energy Reports 3rd-Qtr EPS 1c Before Charge vs. 27c Loss |
-- Revenues Climb 25%
-- Cash Flow Up 71%
-- Oil And Gas Production Increases 44%
-- Daily Production For October Averages 14,000 BOE
MIDLAND, Texas, Nov. 4 /PRNewswire/ -- Costilla Energy, Inc.
(Nasdaq: COSE), citing significant increases in production, revenues and cash
flow, today reported third-quarter net income before extraordinary items was
$152,000, or 1 cent per share, compared with a loss of $1.4 million, or 27
cents per share, a year earlier. For the quarter ended September 30, 1997,
revenues increased 25 percent to $19.3 million from $15.4 million, and cash
flow rose 71 percent to $7.5 million, or 73 cents per share, from $4.4
million, or 84 cents per share, in the prior year. Weighted average shares
outstanding were 10.3 million compared with 5.2 million a year ago. Including
extraordinary items of $219,000, reported results were a loss of $67,000, or
one cent per share.
Nine-Month Results Up Sharply
For the nine months ended September 30, 1997, net income before
extraordinary losses was $18,000, or nil per share, compared with a loss of
$3.7 million, or 70 cents per share. Revenues increased 56 percent to $55.1
million from $35.0 million. Cash flow more than doubled to $21.0 million, or
$2.02 per share, from $8.8 million, or $1.69 per share. Including
extraordinary losses in both years, results were a loss of $201,000, or 2
cents per share, in 1997 compared with a loss of $5.3 million, or $1.02 per
share, a year earlier.
For the third quarter, adjusted EBITDA was $10.3 million, or 3.2 times
interest expense, compared to $7.8 million, or 2.3 times interest expense in
1996. Nine-month adjusted EBITDA was $28.5 million, or 3.4 times interest
expense, compared with $16.3 million, or 2.2 times interest expense, in 1996.
Significant Production Increases
During the third quarter, Costilla drilled 29 wells, of which 26 were
productive, continuing a greater than 80 percent drilling success rate. For
the nine-month period, Costilla drilled 100 wells, with 82 successfully
completed. Costilla's average working interest in these wells is in excess of
50 percent. The company has budgeted $6.2 million for capital expenditures in
the fourth quarter.
Oil and gas production during the third quarter totaled nearly 1.4
million barrels of oil equivalent, a 44 percent increase over the 952,000 BOE
produced a year earlier. Daily production in October averaged approximately
14,000 BOE.
New Field Discoveries
During the third quarter, Costilla made two new field discoveries,
demonstrating the Company's continued success in growing by the drill bit.
For the year, this brings to seven the number of new Costilla field
discoveries, and provides in excess of 300 drilling locations.
In anticipation of taking maximum advantage of these opportunities, the
Company currently anticipates capital expenditures of approximately $70
million for 1998. This estimate does not include possible acquisition
projects which may be synergystic to Costilla's growth plans.
Solid Outlook
"I am very pleased with the results of this quarter, which clearly
demonstrate Costilla's ability to grow," said Mike Grella, President and CEO.
"It should be noted that our performance includes only one month of production
gained through the Ballard acquisition. With the addition of a full year of
Ballard production, coupled with anticipated continued success in drilling,
Costilla is well positioned for a very solid fourth quarter and an impressive
1998."
Costilla Energy, Inc. is an independent energy company engaged in the
exploration, acquisition and development of oil and gas properties with
operations primarily in the Permian Basin of Texas and New Mexico, the Gulf
Coast, and the Rocky Mountain regions. The Company and its predecessors have
been in business since 1988.
Certain statements in this news release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual results,
performance, or achievements of Costilla Energy, Inc. to be materially
different from any future results; performance, or achievements expressed or
implied by such forward-looking statements. Such factors include, among
others, the following; the volatility of oil and gas prices, the Company's
ability to replace its oil and gas reserves, the availability of capital
resources; the reliance upon estimates of proved reserves, operating hazards
and uninsured risks, competition, government regulation and the ability of the
Company to implement its business strategy. These factors are discussed in
more detail in the Company's prospectus for its initial public offering of
common stock.
COSTILLA ENERGY, INC.
SUMMARY FINANCIAL AND OTHER DATA
(in thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
1997 1996 1997 1996
Production
Oil (MBBLS) 565 502 1,601 1,211
Gas (MMCF) 4,824 2,698 11,545 6,202
MBOE 1,369 952 3,525 2,245
Average Net Sales Price
Oil (per BBL) $16.91 $20.02 $18.08 $18.92
Gas (per MCF) $2.03 $1.96 $2.19 $1.92
Revenues
Oil $9,552 $10,041 $28,951 $22,907
Gas $9,788 $5,302 $25,280 $11,880
Net income (loss) $(67) $(1,419) $(201) $(5,300)
Per share $(0.01) $(0.27) $(0.02) $(1.02)
Cash Flow (a) $7,509 $4,393 $21,028 $8,777
Per share $0.73 $0.84 $2.02 $1.69
Adjusted EBITDA (b) $10,254 $7,848 $28,532 $16,286
Adjusted EBITDA/Interest 3.2x 2.3x 3.4x 2.2x
Weighted average shares 10,340 5,200 10,425 5,200
(a) Net income (loss) plus deferred taxes, depreciation, depletion and
amortization, exploration and abandonments and extraordinary items.
(b) Net income (loss) plus income taxes, interest, depreciation,
depletion and amortization, exploration and abandonments and extraordinary
items.
COSTILLA ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
1997 1996 1997 1996
Revenues:
Oil and gas sales $19,339 $15,343 $54,231 $34,787
Other (38) 89 882 169
19,301 15,432 55,113 34,956
Expenses:
Oil and gas production 6,875 6,452 21,038 14,729
General and administrative 2,172 1,132 5,543 3,941
Exploration and abandonments 634 697 3,748 1,006
Depreciation, depletion and
amortization 6,038 3,454 15,758 8,073
Interest 3,340 4,274 8,856 8,430
19,059 16,009 54,943 36,179
Income (loss) before
federal income taxes 242 (577) 170 (1,223)
Provision for federal income taxes
Current -- 17 62 17
Deferred 90 -- 90 --
Income (loss) before
extraordinary item 152 (594) 18 (1,240)
Extraordinary loss resulting
from early extinguishment
of debt, net of deferred
tax benefit of $129 (219) -- (219) (1,640)
Net income (loss) $(67) $(594) $(201) $(2,880)
Preferred return and accretion of
redeemable members' capital -- $(825) -- $(2,420)
Income (loss) before extraordinary
item applicable to common equity -- $(1,419) -- $(3,660)
Net income (loss) applicable to
common equity -- $(1,419) -- $(5,300)
Income (loss) per share:
Income (loss) before
extraordinary item $0.01 $(0.27) -- $(0.70)
Extraordinary loss resulting
from early extinguishment
of debt, net of deferred
tax benefit of $129 $(0.02) -- $(0.02) $(0.32)
Net income (loss) $(0.01) $(0.27) $(0.02) $(1.02)
Weighted average shares
outstanding 10,340 5,200 10,425 5,200
COSTILLA ENERGY, INC.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands)
September 30, December 31,
1997 1996
(unaudited)
ASSETS
Current assets $24,443 $30,409
Net property, plant and equipment, at cost 205,245 126,944
Other assets 7,826 5,437
Total $237,514 $162,790
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $37,076 $20,089
Long-term debt, less current maturities 162,506 100,262
Other noncurrent liabilities -- 1,870
Stockholders' equity 37,932 40,569
Total Liabilities and Stockholders' Equity $237,514 $162,790
SOURCE Costilla Energy, Inc.
back to topCONTACT:
Mike Grella, President & Chief Executive
Officer of Costilla Energy, Inc., 915-683-3092; Karl Plath,
General, 312-640-6738, or Lisa Ferguson, Analysts, 312-640-6788,
both of The Financial Relations Board
