-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GfQRWb1UxnkcEqrU/0Xp90UouIXs+P1K3z0PNpXS+l5SFWH2B9+KInZdHgRNqhAh qEMX4kkh+TpaLVPUHTajqg== 0001015402-02-002607.txt : 20020812 0001015402-02-002607.hdr.sgml : 20020812 20020812165519 ACCESSION NUMBER: 0001015402-02-002607 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020805 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020812 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRIGHAM EXPLORATION CO CENTRAL INDEX KEY: 0001034755 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 752692967 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-22433 FILM NUMBER: 02727333 BUSINESS ADDRESS: STREET 1: 6300 BRIDGE POINT PARKWAY STREET 2: BLDG 2 SUITE 500 CITY: AUSTIN STATE: TX ZIP: 78730 BUSINESS PHONE: 5124273300 MAIL ADDRESS: STREET 1: 6300 BRIDGE POINT PARKWAY STREET 2: BLDG 2 SUITE 500 CITY: AUSTIN STATE: TX ZIP: 78730 8-K 1 doc1.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 _______________ Date of Report (Date of earliest event reported): AUGUST 5, 2002 BRIGHAM EXPLORATION COMPANY (Exact name of registrant as specified in its charter) DELAWARE 000-22433 75-2692967 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 6300 BRIDGEPOINT PARKWAY BUILDING TWO, SUITE 500 AUSTIN, TEXAS 78730 (Address, including zip code, of principal executive offices) RegistrantSec.s telephone number, including area code: (512) 427-3300 ================================================================================ 1 ITEM 5. OTHER EVENTS. On August 5, 2002, the Registrant issued a press release announcing second quarter 2002 operational results. The full text of the press release, other than (a) the fifth sentence of the paragraph labeled Adjacent Fault Blocks under the heading "Gulf Coast Vicksburg Trend", which is set forth in Exhibit 99.1 hereto, is filed and incorporated in this Report as if fully set forth herein. On August 6, 2002, the Registrant issued a press release announcing second quarter 2002 financial results. The full text of the press release, other than (a) the three paragraphs under the heading "Third Quarter Guidance", which is set forth in Exhibit 99.2 hereto, is filed and incorporated in this Report as if fully set forth herein. ITEM 9. REGULATION FD DISCLOSURE In accordance with General Instruction B.2. of Form 8-K, the following information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended. In the August 5, 2002 press release announcing second quarter 2002 operational results, the fifth sentence of the paragraph labeled Adjacent Fault Blocks under the heading "Gulf Coast Vicksburg Trend", shall not be deemed "filed". In the August 6, 2002 press release announcing second quarter 2002 financial results, the three paragraphs under the heading "Third Quarter Guidance" shall not be deemed "filed". 1 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits Item Exhibit ---- ------- 99.1* Press Release dated August 5, 2002. 99.2* Press Release dated August 6, 2002. _______ * filed herewith. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BRIGHAM EXPLORATION COMPANY Date: August12, 2002 By: /s/ Eugene B. Shepherd, Jr ----------------------------- Eugene B. Shepherd, Jr. Chief Financial Officer 3 INDEX TO EXHIBITS Item Exhibit ---- ------- 99.1* Press Release dated August 5, 2002. 99.2* Press Release dated August 6, 2002. EX-99.1 3 doc2.txt EXHIBIT 99.1 [GRAPHIC OMITTED] BRIGHAM NEWS RELEASE EXPLORATION COMPANY FOR IMMEDIATE RELEASE BRIGHAM EXPLORATION PROVIDES ITS Q2 2002 OPERATIONAL UPDATE - -------------------------------------------------------------------------------- Austin, TX - August 5, 2002 -- Brigham Exploration Company (NASDAQ:BEXP) today provided an operational update for the second quarter 2002. GULF COAST FRIO TREND Providence Field - The Burkhart #1R, the confirmation well for the field, ---------------- began producing in the second week of July at approximately 8.7 MMcf of natural gas and 1,500 barrels of oil (17.7 MMcfe) per day, or 5.5 MMcfe net to Brigham's 31% revenue interest. Currently, the Burkhart #1R is producing approximately 10.5 MMcf of natural gas and 1,780 barrels of oil (21.2 MMcfe) per day, or 6.6 MMcfe per day net to Brigham's revenue interest. Upon payout of drilling and completion costs, which is expected to occur by year-end, Brigham's ownership reverts to a 22% revenue interest. The Staubach #1, the discovery well for the field, began producing during February 2002 and paid out its drilling and completion costs in May. To date the well has produced approximately .75 Bcf of natural gas and 322,000 barrels of oil (2.7 Bcfe). The Staubach #1 is currently producing approximately 5.0 MMcf of natural gas and 2,000 barrels of oil (17.0 MMcfe) per day, or approximately 4.4 MMcfe per day net to Brigham's 27% revenue interest. In early July, Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) began drilling the Huebner #1, the second offset to the Staubach #1, to test the northern end of the approximately 800 acre structure. During the first two weeks of drilling, stuck drill pipe necessitated a sidetrack operation. The well has been sidetracked and is currently drilling at a depth of approximately 6,500 feet. The Huebner #1 is expected to develop the currently producing Staubach and Burkhart pay intervals. In addition, plans include additional drilling to test deeper potential pay sands, with results expected by September. Brigham expects to drill the third and fourth development wells in the field prior to year-end, and anticipates drilling a total of at least five wells to fully develop the field. Also within the Frio trend, Brigham will operate and retain a 38% working interest in an exploratory Frio bright spot test that should commence drilling within the next two weeks. Results are expected by late September. GULF COAST VICKSBURG TREND Home Run & Triple Crown Fields - Brigham operates and retains a 34% working ------------------------------ interest in the Palmer #5R, its seventh well in its Home Run Field, which is currently drilling at a depth of approximately 11,300 feet. If successful, completion operations on the Palmer #5R should commence in late August. Also in Home Run, Brigham has commenced sidetracking operations on the previously drilled Palmer #3. The Company retains a 34% working interest in the Palmer #3ST, and expects results by early October. Brigham plans to drill its next development well in the Triple Crown Field in the fourth quarter of 2002 or in the first quarter of 2003. Adjacent Fault Blocks - Brigham plans to spud the Floyd #1 later this ----------------------- month. The Floyd #1 will test one of several fault blocks adjacent to its Home Run and Triple Crown Fields. The "Floyd" fault block lies between the Triple Crown and Home Run Fields, and the Floyd #1 should test Upper and Lower Vicksburg intervals that are now producing in those fields. Three Home Run Field wells penetrated the Floyd fault block in the Upper Vicksburg 9800' sand prior to crossing a fault and drilling into the Home Run Field reservoirs, and all three wells are productive in the Upper Vicksburg 9800' sand. The 5 EXHIBIT 99.1 Company will retain a 34% working and 25% net revenue interest in the test of the Floyd fault block, which has an estimated reserve potential of approximately 50 Bcfe. Results are expected by November. GULF COAST WILCOX TREND Dinn Ranch Field - As reported by EOG Resources, Inc. (NYSE:EOG) and EEX ------------------ Corporation (NYSE: EEX), the two operators are developing a potentially substantial field discovery in the deep Wilcox trend. As a result, two wells with reported production capacities in excess of 30 MMcf of natural gas per day per well have been producing to sales with additional production capacity anticipated in September. Further, three Dinn Ranch Field development wells were completing, with one well currently drilling. As per prior press releases, Brigham retains an overriding royalty interest, which converts into a 12.5% and 25% working interest at 100% and 200% payouts respectively, in one of the wells currently completing. That well, the EEX operated Lopez Mineral Trust #1, encountered approximately 300 feet of apparent pay. Although completion operations have been delayed, it is currently anticipated that production should commence in August or September. Brigham anticipates an additional development well to begin drilling during the third quarter, in which Brigham will retain the same reversionary working interests as the Lopez Mineral Trust #1. If successful, another development well could begin drilling late in the year, and Brigham would retain a 25% ground floor working interest in this well. ANADARKO BASIN HUNTON TREND Mills Ranch Field Development Well - On July 31st Brigham spud its first ------------------------------------- offset to the Mills Ranch #1. Brigham directionally drilled the Mills Ranch #1 to a total depth of over 25,000 feet in December 2000. The Mills Ranch #1 encountered approximately 1,200 feet of gross pay and 240 feet of calculated true vertical net pay in three Hunton intervals. From January 2001 to mid-year 2002 the Mills Ranch #1 produced approximately 2.6 Bcfe, and was producing approximately 4.0 MMcfe per day on June 30, 2002. Brigham operates and retains a 64% working interest in the Mills Ranch #2, and anticipates testing the Hunton pay intervals approximately 500 feet high to the discovery well. Brigham expects the Mills Ranch #2 to test an additional Hunton pay interval, the most prolific producing interval in the area. The Mills Ranch #2 should reach total depth near year-end 2002. If successful, at least one additional development well could be required to fully develop the field. FIRST HALF 2002 OPERATIONAL STATISTICS Brigham spud 14 wells during the first six months of 2002 in which it retained an average working interest of 34%. Ten of these wells have been completed and three are currently drilling. Brigham has achieved a gross completion rate of 91% and a net completion rate of 90% thus far in its 2002 drilling program. Production volumes averaged 27.3 MMcfe per day for the second quarter 2002, up 8% from 25.3 MMcfe per day in the first quarter 2002, despite no impact from the recent Burkhart #1R completion. MANAGEMENT COMMENTS Bud Brigham, the Company's Chairman, CEO and President, stated, "We're pleased with our drilling results thus far in 2002. Over the last several years, we've completed 33 wells in 36 recent attempts in our five focus plays. The big news currently is the very exciting activity at our Providence Field, which is a bad news/good news story. The bad news was a delay in initial production. We had originally expected the Burkhart #1R to begin producing mid second quarter rather than early in the third quarter. The good news is that it's producing at higher than anticipated rates, approximately 21.2 MMcfe per day, or 6.6 MMcfe per day net to our Company. However, due to the delays in completing the well, our second quarter daily production volumes averaged 27.3 MMcfe, instead of approximately 30 MMcfe." Mr. Brigham further stated, "The fundamentals of our growth in production volumes for the second half of 2002 are very strong. For example, the first two Providence Field wells on line are producing approximately 11 MMcfe per day for our Company, and we now expect to drill at least two additional wells there by year-end. We expect additional growth in production from the rest of our accelerated drilling program, including our Palmer #5 and Palmer #3ST development wells, our Floyd fault block test, our Springer wells currently completing and drilling, and our Frio and West Texas Horseshoe Atoll Trend exploration wells. Our Floyd fault block test, which should spud in the next 30 days, and our currently drilling Mills Ranch Hunton 6 EXHIBIT 99.1 development well in the Anadarko Basin, should provide exciting and potentially substantial reserve impact for our shareholders in 2002." ABOUT BRIGHAM EXPLORATION Brigham Exploration Company is a leading independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore domestic natural gas and oil provinces. For more information about Brigham Exploration, please visit our website at www.bexp3d.com or contact Investor Relations at 512-427-3444. FORWARD LOOKING STATEMENT DISCLOSURE Except for the historical information contained herein, the matters discussed in this news release are forward looking statements that are based upon current expectations. Important factors that could cause actual results to differ materially from those in the forward looking statements include risks inherent in exploratory drilling activities, the timing and extent of changes in commodity prices, unforeseen engineering and mechanical or technological difficulties in drilling wells, availability of drilling rigs, land issues, federal and state regulatory developments and other risks more fully described in the company's filings with the Securities and Exchange Commission. Contact: John Turner, Manager of Finance and Investor Relations (512) 427-3300 / investor@bexp3d.com 7 EX-99.2 4 doc3.txt EXHIBIT 99.2 [GRAPHIC OMITTED] BRIGHAM NEWS RELEASE EXPLORATION COMPANY FOR IMMEDIATE RELEASE BRIGHAM EXPLORATION REPORTS SEQUENTIAL QUARTERLY GROWTH IN PRODUCTION, REVENUE AND EBITDA & PROVIDES THIRD QUARTER GUIDANCE - -------------------------------------------------------------------------------- Austin, TX -- August 6, 2002 -- Brigham Exploration Company (NASDAQ:BEXP) today announced its financial results for the second quarter ended June 30, 2002. Highlights of Brigham's financial performance for the quarter include: - - Production volumes increased 8% over first quarter 2002 volumes to average ------------------------------- 27.3 MMcfe per day; - - 36% sequential quarterly growth in revenue due to increased production and ------------------------------------------ higher realized natural gas and oil prices ($3.57 vs. $2.83 per Mcfe); and - - 38% sequential quarterly increase in EBITDA to $5.9 million in the second --------------------------------------------- quarter 2002 versus $4.3 million in the first quarter 2002. SECOND QUARTER 2002 RESULTS Average net daily production for the second quarter 2002 was 27.3 MMcfe, compared to 25.3 MMcfe in the first quarter 2002 and 29.5 MMcfe in the second quarter last year. Production for the second quarter 2002 was 7% lower than the mid-point of the Company's second quarter guidance due to a delay in the start of production for the Burkhart #1R. Brigham estimates that the Burkhart #1R is currently producing approximately 6.6 MMcfe per day net to Brigham's revenue interest. Revenue from the sale of natural gas and oil was $8.8 million for the second quarter 2002 compared to $10.5 million in the second quarter of 2001. Approximately $1.1 million of the decline in the second quarter 2002 natural gas and oil sales was due to a 10% decrease in Brigham's average equivalent realized sales price for natural gas and oil and $600,000 was related to lower production volumes. Lease operating expenses for second quarter 2002 were $796,000 compared to $784,000 in the second quarter last year. Lower severance tax rates on certain wells, a 16% decrease in Brigham's average pre-hedge sales price and lower production resulted in a 20% decline in production taxes to $499,000 for the second quarter of 2002 compared to $622,000 in the second quarter of 2001. General and administrative expenses, excluding a non-cash charge for stock compensation expense, were $1.1 million for the second quarter 2002 compared to $960,000 in the second quarter 2001. Depletion expenses were $3.4 million and Brigham's depletion rate per unit increased 15% over the prior year second quarter to $1.38 per Mcfe. Lower interest rates on outstanding debt borrowings during the second quarter of 2002 resulted in lower interest expense of $1.6 million compared to $1.8 million in second quarter of 2001. Brigham's average effective interest rate on its total outstanding debt for the second quarter 2002 was 7.5% compared to 9.7% in the second quarter last year. Earnings before interest, taxes, depreciation, depletion, amortization and other non-cash charges (EBITDA) for the second quarter 2002 was $5.9 million compared to $7.2 million in the second quarter 2001. Operating cash flow, before changes in working capital, for the second quarter was $4.8 million versus $6.0 million for the second quarter 2001. Net income to common stockholders' for the second quarter of 2002 was $61,000 ($0.00 diluted earnings per share), compared to $8.3 million ($0.46 diluted earnings per share) in the second quarter last year. On a sequential quarterly basis, EBITDA increased 38%, operating cash flow improved 43% and net income to common stockholders' was $61,000 compared to a net loss of $1.3 million in the first quarter of 2002. Net capital expenditures for the second quarter 2002 totaled $6.4 million, and included $4.6 million in drilling, $500,000 in land and G&G activities and $1.3 million in capitalized interest, overhead expenses and other. Net capital expenditures have not been reduced by expected insurance reimbursements of approximately $2.0 million related to the loss of surface control and subsequent redrill of the Burkhart #1. Page 9 EXHIBIT 99.2 MANAGEMENT COMMENTS Gene Shepherd, Chief Financial Officer stated, "We are pleased with our growth in production volumes thus far in 2002. As stated in our last conference call, we expect to achieve sequential quarterly production volume growth during the course of 2002. The visibility of this growth has been enhanced by our recent drilling success at the Providence Field. In addition, compared to the first quarter 2002, lower lease operating expenses, improved commodity prices and an improved hedge position should contribute to expansion in our revenues and cash flows, giving us additional flexibility to fund drilling expenditures in the second half of 2002." THIRD QUARTER 2002 GUIDANCE The following forecasts and estimates of Brigham's third quarter 2002 results are forward looking statements subject to the risks and uncertainties identified in the "Forward Looking Statements Disclosure" at the end of this release. Brigham currently expects third quarter 2002 production volumes to average between 28 and 31 MMcfe per day, 56% of which consists of natural gas. For the third quarter 2002, lease operating expenses are projected to be $0.33 per Mcfe, production taxes are projected to be 5.5% of pre-hedge oil and gas revenues, and net general and administrative expenses are projected to be $1.0 million, or $0.36 to $0.40 per Mcfe. Based on these production and cost estimates, assumed average NYMEX prices of $3.00 per MMBtu for natural gas and $26.00 per barrel for oil, and taking into account current hedging contracts outstanding, Brigham forecasts revenue of between $8.7 and $9.7 million and EBITDA of between $6.5 and $7.3 million for the third quarter 2002. CONFERENCE CALL INFORMATION Brigham management will host a conference call to discuss the Company's second quarter 2002 operational and financial results with investors, analysts and other interested parties on Wednesday, August 7th, at 9:00 a.m. Central time. To participate in the call, please dial 800-360-9865 and ask for the Brigham Exploration conference call. A telephone recording of the conference call will be available to interested parties approximately two hours after the call is completed through 11:59 p.m. Central time on Wednesday, August 21st. To access the recording, domestic callers dial 800-428-6051 and international callers dial 973-709-2089. The passcode I.D. for the conference playback is 253088. In addition, a live and archived web cast of the conference call will be available over the Internet at either www.bexp3d.com or www.streetevents.com. ABOUT BRIGHAM EXPLORATION Brigham Exploration Company is an independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore domestic natural gas and oil provinces. For more information about Brigham Exploration, please visit our website at www.bexp3d.com or contact Investor Relations at 512-427-3444. FORWARD LOOKING STATEMENTS DISCLOSURE Except for the historical information contained herein, the matters discussed in this news release are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations. Important factors that could cause actual results to differ materially from those in the forward looking statements include risks inherent in exploratory drilling activities, the timing and extent of changes in commodity prices, unforeseen engineering and mechanical or technological difficulties in drilling wells, availability of drilling rigs, land issues, federal and state regulatory developments and other risks more fully described in the company's filings with the Securities and Exchange Commission. All forward looking statements contained in this release, including any forecasts and estimates, are based on management's outlook only as of the date of this release, and we undertake no obligation to update or revise these forward looking statements, whether as a result of subsequent developments or otherwise. Contact: John Turner, Manager - Finance & Investor Relations (512) 427-3300 / investor@bexp3d.com Page 10 EXHIBIT 99.2
BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, ---------------------------------- ---------------------------------- 2001 2002 2001 2002 ---------------- ---------------- ---------------- ---------------- Revenues: Natural gas and oil sales $ 10,467 $ 8,769 $ 17,372 $ 15,203 Other revenue 37 17 175 27 ---------------- ---------------- ---------------- ---------------- $ 10,504 $ 8,786 $ 17,547 $ 15,230 Costs and expenses: Lease operating 784 796 1,490 1,667 Production taxes 622 499 1,088 852 General and administrative, includes non-cash charge (a) 957 1,718 1,774 2,682 Depletion of natural gas and oil properties 3,182 3,394 5,659 6,531 Depreciation and amortization 83 101 235 204 5,628 6,508 10,246 11,936 ---------------- ---------------- ---------------- ---------------- Operating income $ 4,876 $ 2,278 $ 7,301 $ 3,294 ---------------- ---------------- ---------------- ---------------- Interest expense, net (1,779) (1,649) (3,585) (3,070) Interest income 105 74 167 93 Other income (expense) (b) 5,764 79 5,985 (169) Income (loss) before income taxes $ 8,966 $ 782 $ 9,868 $ 148 ---------------- ---------------- ---------------- ---------------- Income tax expense - - - - Net income (loss) $ 8,966 $ 782 $ 9,868 $ 148 ---------------- ---------------- ---------------- ---------------- Preferred stock dividend & accretion 639 721 1,117 1,419 Net income (loss) to common $ 8,327 $ 61 $ 8,751 ($1,271) ================ ================ ================ ================ Net income (loss) to common per share: Basic $ 0.52 $ 0.00 $ 0.55 ($0.08) Diluted 0.46 0.00 0.51 (0.08) Wt. avg. common shares outstanding: Basic 15,983 16,038 15,983 16,027 Diluted 18,835 17,655 19,734 16,027 (a) Includes non-cash charge related to stock compensation expense of: - ($596) - ($596) (b) Includes non-cash income (expenses) related to changes in the fair market value of certain hedging contracts of: $ 6,807 $ 635 $ 7,028 $ 384
Page 11 EXHIBIT 99.2
BRIGHAM EXPLORATION COMPANY PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA (unaudited) Three Months Ended June 30, Six Months Ended June 30, ------------------------------ ------------------------------ 2001 2002 2001 2002 -------------- -------------- -------------- -------------- Avg. net daily production: Natural gas (MMcf) 20.7 16.7 19.3 15.8 Oil (Bbls) 1,453 1,778 1,147 1,749 Equivalent natural gas (MMcfe) (6:1) 29.5 27.3 26.2 26.3 Total net production: Natural gas (MMcf) 1,867 1,499 3,477 2,844 Oil (MBbls) 131 160 206 315 Equivalent natural gas (MMcfe) (6:1) 2,652 2,460 4,716 4,733 % Natural gas 70% 61% 74% 60% Sales prices: Natural gas ($/Mcf) (a) $ 3.78 $ 3.30 $ 3.43 $ 2.92 Oil ($/Bbl) (a) 26.09 23.90 26.33 21.95 Equivalent natural gas ($/Mcfe) (6:1) 3.95 3.57 3.68 3.21 Other financial data: EBITDA ($000) (b) $ 7,203 $ 5,887 $ 12,319 $ 10,165 Operating cash flow before changes in working capital ($000) 5,970 4,807 9,698 8,177 (a) Includes the effects of hedging gains (losses) of: Natural gas ($/Mcf) ($0.77) ($0.21) ($2.30) $ 0.01 Oil ($/Bbl) (0.38) (1.69) (0.61) (1.02) (b) Net income (loss) plus interest expense, DD&A expenses, deferred income taxes and other non-cash items.
Page 12 EXHIBIT 99.2 SUMMARY CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) December 31, June 30, 2001 2002 ----------- -------- Assets: Current assets $ 16,968 $ 21,282 Natural gas and oil properties, at cost, net 151,891 158,314 Other property and equipment, at cost, net 1,331 1,344 Other non-current assets 3,218 3,321 ----------- -------- Total assets $ 173,408 $184,261 =========== ======== Liabilities and stockholders' equity: Current liabilities $ 15,266 $ 22,935 Notes payable 75,000 75,000 Senior subordinated notes 16,721 21,218 Other non-current liabilities 206 367 ----------- -------- Total liabilities $ 107,193 $119,520 Redeemable preferred stock 16,614 18,033 Stockholders' equity 49,601 46,708 ----------- -------- Total liabilities and stockholders' equity $ 173,408 $184,261 =========== ========
BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended June 30, Six Months Ended June 30, ------------------------------ ------------------------------ 2001 2002 2001 2002 -------------- -------------- -------------- -------------- Cash flows from operating activities: Net income (loss) $ 8,966 $ 782 $ 9,868 $ 148 Depletion, depreciation and amortization 3,265 3,495 5,894 6,735 Interest paid through issuance of add'l senior sub. notes 203 270 278 497 Amortization of deferred loan fees 343 299 686 585 Stock option compensation expense - 596 - 596 Market value adjustment for derivatives instruments (6,807) (635) (7,028) (384) -------------- -------------- -------------- -------------- Operating cash flow $ 5,970 $ 4,807 $ 9,698 $ 8,177 Changes in working capital and other items (703) 1,218 (3,179) 1,879 -------------- -------------- -------------- -------------- Cash flows provided (used) by operating activities $ 5,267 $ 6,025 $ 6,519 $ 10,056 Cash flows (used) provided by investing activities (9,045) (8,193) (17,963) (13,193) Cash flows (used) provided by financing activities (19) 48 18,839 3,725 -------------- -------------- -------------- -------------- Net increase (decrease) in cash and cash equivalents ($3,797) ($2,120) $ 7,395 $ 588
Page 13 EXHIBIT 99.2
SUMMARY PER MCFE DATA (unaudited) Three Months Ended June 30, Six Months Ended June 30, ---------------------------- ---------------------------- 2001 2002 2001 2002 ------------- ------------- ------------- ------------- Revenues: Natural gas and oil sales $ 3.95 $ 3.57 $ 3.68 $ 3.21 Other revenue 0.01 0.01 0.04 0.01 ------------- ------------- ------------- ------------- $ 3.96 $ 3.58 $ 3.72 $ 3.22 Costs and expenses: Lease operating 0.30 0.32 0.32 0.35 Production taxes 0.23 0.20 0.23 0.18 General and administrative (a) 0.36 0.46 0.38 0.44 Depletion of natural gas and oil properties 1.20 1.38 1.20 1.38 Depreciation and amortization 0.03 0.04 0.05 0.04 ------------- ------------- ------------- ------------- $ 2.12 $ 2.40 $ 2.18 $ 2.39 ------------- ------------- ------------- ------------- Operating income $ 1.84 $ 1.18 $ 1.54 $ 0.83
(a) Excludes non-cash charge for stock compensation expense of $0.24 per Mcfe for the three months ended June 30, 2002, and $0.12 per Mcfe for the six months ended June 30, 2002.
BRIGHAM EXPLORATION COMPANY SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF AUGUST 6, 2002 (unaudited) Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 -------- -------- -------- -------- -------- -------- Natural Gas Swaps: MMBtu/d 10,000 8,500 7,500 6,000 5,000 3,500 $/MMBtu $ 3.165 $ 3.246 $ 3.532 $ 3.281 $ 3.503 $ 3.731 Crude Oil Swaps: Bbls/d 500 575 550 450 500 450 $/Bbl $ 25.06 $ 25.00 $ 24.39 $ 23.86 $ 23.52 $ 23.21 Crude Oil Collars: Cap - Bbls/d 500 500 250 250 - - - - Cap - $/Bbl $ 22.46 $ 22.46 $ 22.56 $ 22.56 - - - - Floor - Bbls/d 500 500 250 250 - - - - Floor - $/Bbl $ 18.00 $ 18.00 $ 18.00 $ 18.00 - - - -
Note: Hedged volumes and prices reflected in this table represent average contract amounts for the quarterly periods presented; natural gas hedge prices and crude oil hedge contract prices are based on NYMEX pricing. 13 -----END PRIVACY-ENHANCED MESSAGE-----