-----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, ERyaocyRMG/mdSVsIioRn1fo7Y6ED3lTCSqDAkFV5Kokw3tyDGFGqwaOxKSbnE9F qB1a/+d9NWbVqHEPk00LHw== 0001015402-02-003565.txt : 20021108 0001015402-02-003565.hdr.sgml : 20021108 20021107183912 ACCESSION NUMBER: 0001015402-02-003565 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20021106 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20021108 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: 02813168 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): NOVEMBER 6, 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) Registrant's telephone number, including area code: (512) 427-3300 ITEM 5. OTHER EVENTS On November 4, 2002, the Registrant issued a press release announcing the operational results for the third quarter 2002. The full text of the press release other than (a) the last sentence of each paragraph under the heading "Gulf Coast Frio Trend", (b) the last sentence of each paragraph under the heading "Gulf Coast Vicksburg Trend", and (c) the last sentence of the paragraph under the heading "Anadarko Basin Hunton Trend", which is set forth in Exhibit 99.1 hereto, is filed and incorporated in this Report as if fully set forth herein. On November 5, 2002, the Registrant issued a press release announcing financial results for the third quarter 2002. The full text of the press release other than the three paragraphs under the heading "Fourth 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 November 4, 2002 press release announcing third quarter 2002 operational results, the last sentence of each paragraph under the heading "Gulf Coast Frio Trend", shall not be deemed "filed". In the November 4, 2002 press release announcing third quarter 2002 operational results, the last sentence of each paragraph under the heading "Gulf Coast Vicksburg Trend", shall not be deemed "filed". In the November 4, 2002 press release announcing third quarter 2002 operational results, the last sentence of the paragraph under the heading "Anadarko Basin Hunton Trend", shall not be deemed "filed". In the November 5, 2002, the Registrant announcing third quarter 2002 financial results, the three paragraphs of the press release under "Fourth Quarter Guidance", shall not be deemed "filed". 1 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits Item Exhibit ---- ------- 99.1* Press Release dated November 4, 2002. 99.2* Press Release dated November 5, 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: November 7, 2002 By: /s/ Eugene B. Shepherd, Jr -------------------------- Eugene B. Shepherd, Jr. Chief Financial Officer 3 INDEX TO EXHIBITS Item Number Exhibit ----------- ------- 99.1* Press Release dated November 4, 2002. 99.2* Press Release dated November 5, 2002. EX-99.1 3 doc2.txt EXHIBIT 99.1 [GRAPHIC OMITTED] NEWS RELEASE FOR IMMEDIATE RELEASE BRIGHAM EXPLORATION COMPANY BRIGHAM EXPLORATION PROVIDES OPERATIONAL UPDATE FOR THE THIRD QUARTER 2002 - -------------------------------------------------------------------------------- Austin, TX - November 4, 2002 -- Brigham Exploration Company (NASDAQ:BEXP) today provided an operational update for the third quarter 2002. GULF COAST FRIO TREND Providence Field - Brigham has begun building location, and expects to ----------------- commence drilling later this week on the Matthes-Huebner #1, its fourth well in the field. The Matthes-Huebner #1 is an offset to the discovery well for the field, the Staubach #1, and is also expected to test an analogous seismic bright spot in the shallower sand interval that was found productive in the recently completed Huebner #1. Brigham operates and retains a 38% working interest in the Matthes-Huebner #1 and results are expected by year-end. As previously announced, Brigham retained a 34% working interest in the Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) operated Huebner #1, which was successfully completed in the Lower Frio at a rate of approximately 6.1 MMcf of natural gas and 2,230 barrels of oil (19.5 MMcfe) per day, or 4.9 MMcfed net to Brigham's 25% revenue interest. Production to sales is expected to begin by November 15th. The Providence Field is currently producing approximately 14 MMcf of natural gas and 3,500 barrels of oil (35.0 MMcfe) per day from the Staubach #1 and Burkhart #1R wells. In addition to the Matthes-Huebner #1, Brigham expects to spud its fifth well in the Field by year-end. Frio Exploration Discovery - As part of its ongoing Frio exploration ---------------------------- program, Brigham recently completed the Carr #1, a Frio bright spot exploration discovery in Brazoria County. Brigham operated and retained a 37% working interest in the Carr #1, which tested at an initial rate of approximately 1.7 MMcf of natural gas and 50 barrels of oil (2.0 MMcfe) per day, or approximately 0.6 MMcfed net to Brigham's 30% revenue interest. Brigham expects to begin producing the well to sales within the next ten days. GULF COAST VICKSBURG TREND Home Run & Triple Crown Fields - Brigham operates and retained a 34% ------------------------------ working interest in the Palmer #3ST, a successful sidetracking operation to complete several pay intervals that were not effectively produced in the previously drilled Palmer #3. The Palmer #3ST was commingled and began producing to sales in mid-October at an initial rate of approximately 5.0 MMcf of natural gas and 240 barrels of oil per day (6.4 MMcfed), or 1.9 MMcfed net to Brigham's 29% revenue interest. As previously announced, Brigham successfully completed the Palmer #5R, its seventh successful Home Run Field well. The Palmer #5R began producing to sales at a rate of approximately 9.0 MMcf of natural gas and 520 barrels of oil per day (12.1 MMcfed), or approximately 3.2 MMcfed net to Brigham's 26% revenue interest. Brigham plans to commence drilling an additional Home Run Field well by year-end. Adjacent "Floyd" Fault Block Test - The D.J. Sullivan #8 recently began --------------------------------- drilling potential Vicksburg pay intervals below the intermediate casing at a depth of approximately 10,800 feet. The well subsequently encountered encouraging drilling shows, and is currently drilling at a depth of approximately 11,350 feet with a targeted total depth of approximately 13,200 feet. The D.J. Sullivan #8 is a test of one of several fault blocks intermediate to the Home Run and Triple Crown Fields. Brigham retains a 34% working interest in this well, which could prove up significant reserve potential in both the Upper and Lower Vicksburg intervals. The D.J. Sullivan #8 should reach its total depth within a week, with potential test results expected later this month. EXHIBIT 99.1 ANADARKO BASIN HUNTON TREND Mills Ranch Field Development Well - Brigham's first development well in ------------------------------------- its Mills Ranch Field is currently drilling at a depth of approximately 18,400 feet, and recently encountered encouraging drilling shows in the Granite Wash section. The company operates and retains a 63% working interest in the well, which should reach its projected total depth of 23,500 feet in the Hunton formation by year-end. If successful, at least one additional development well could be required to fully develop the field. FIRST NINE MONTHS 2002 OPERATIONAL STATISTICS Brigham spud 19 wells during the first nine months of 2002 in which it retained an average working interest of 33%. Fifteen of these wells have been completed, two are currently drilling, and one additional well commenced since the end of the third quarter. Brigham has achieved a gross completion rate of 88% and a net completion rate of 82% thus far in its 2002 drilling program. Production volumes averaged 28.9 MMcfe per day for the third quarter 2002, up 6% from 27.3 MMcfe per day in the second quarter 2002, despite no material production impact from the recent Huebner #1, Palmer #5R, Palmer #3ST and Carr #1 completions. MANAGEMENT COMMENTS Bud Brigham, the Company's Chairman, CEO and President, stated, "Our drilling program continues to generate strong results, over the last several years, we've completed 36 wells in 41 recent attempts in our five focus plays. Although the drilling activity at our Providence Field is slower than we would like, these wells are providing low finding costs with rapid payouts and remarkable rates of return. With two wells producing to sales, and hopefully three more on line by the first quarter, this field is just beginning to impact our production volumes and cash flow." Mr. Brigham further stated, "Given that our 2002 drilling program started slowly, but was recently accelerated, only approximately 30% of our estimated $20 million in 2002 drilling expenditures impacted our third quarter production volumes. Therefore, we've achieved sequential quarterly growth in production volumes thus far in 2002 with the majority of our program still in front of us. Our recent completions, the Palmer #5R, Palmer #3ST, Carr #1 and Huebner #1, will at least partially impact our fourth quarter, contributing to what should be another record year for production volumes and cash flow in 2002. Combining the wells currently completing with the wells we're currently drilling or will soon be drilling, including two additional Providence Field Frio wells, our Floyd fault block test in the Vicksburg, and our Mills Ranch Hunton development well, provides our shareholders with an even more exciting outlook for the first quarter of 2003." 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 EX-99.2 4 doc3.txt EXHIBIT 99.2 [GRAPHIC OMITTED] NEWS RELEASE FOR IMMEDIATE RELEASE BRIGHAM EXPLORATION COMPANY BRIGHAM EXPLORATION REPORTS SEQUENTIAL QUARTERLY GROWTH IN PRODUCTION, REVENUE & EBITDA AND PROVIDES FOURTH QUARTER GUIDANCE - -------------------------------------------------------------------------------- Austin, TX -- November 5, 2002 -- Brigham Exploration Company (NASDAQ:BEXP) today announced its financial results for the third quarter ended September 30, 2002. Highlights of Brigham's financial performance for the quarter include: - - 21% sequential quarterly increase in EBITDA to $7.1 million in the third ---------------------------------------------- quarter 2002 versus $5.9 million in the second quarter 2002; - - 6% sequential quarterly increase in daily production to 28.9 MMcfe in the ------------------------------------------------------ third quarter 2002 versus 27.3 MMcfe in the second quarter 2002. This represents the third consecutive sequential quarterly increase in daily production for Brigham; and, - - 27% sequential quarterly growth in operating cash flow before changes in --------------------------------------------------------------------------- working capital to a record $6.1 million in the third quarter 2002 versus ---------------- $4.8 million in the second quarter 2002. THIRD QUARTER 2002 RESULTS Average net daily production for the third quarter 2002 was 28.9 MMcfe, compared to 27.3 MMcfe in the second quarter 2002 and 28.8 MMcfe in the third quarter last year. Revenues from the sale of oil and natural gas were $9.4 million for the third quarter 2002 compared to $8.8 million in the third quarter of 2001. Approximately 67% of the increase in third quarter 2002 revenue was due to increased production and 33% was due to a 6% increase in Brigham's average equivalent realized sales price for oil and natural gas. Lease operating expenses for third quarter 2002 were $761,000, a 10% decline from lease operating expenses for the third quarter last year. On a per unit basis, lease operating expense declined by 9% from $0.32 per Mcfe in the third quarter of 2001 to $0.29 per Mcfe in the third quarter of 2002. Production taxes for the third quarter 2002 increased 14% due to a 12% increase in Brigham's average third quarter 2002 pre-hedge sales price. General and administrative expenses were $1.1 million for the third quarter 2002 compared to $934,000 in the third quarter 2001. The increase in general and administrative expense is primarily related to an increase in employee payroll and benefit expense. Depletion expenses were $3.6 million and Brigham's depletion rate per unit increased 10% over the prior year third quarter to $1.38 per Mcfe. Interest expense on total outstanding debt for the third quarter 2002 was $1.6 million and was flat compared to the third quarter 2001. Brigham's average effective interest rate on its total outstanding debt for the third quarter 2002 was 7.4% compared to 9.0% in the third quarter last year. Net income to common stockholders for the third quarter 2002 was $989,000 ($0.06 diluted earnings per share), compared to $2.9 million ($0.17 diluted earnings per share) in the third quarter last year. Net income to common stockholders included non-cash gains/(losses) arising from our hedge accounting of $106,000 non-cash loss in 2002 and a $2.2 million non-cash gain in 2001. Excluding these non-cash gains/(losses), Brigham generated net income to common stockholders of $1.1 million ($0.06 diluted earnings per share) for the third quarter 2002 and $758,000 ($0.04 diluted earnings per share) for the third quarter 2001. Earnings before interest, taxes, depreciation, depletion, amortization and other non-cash charges (EBITDA) for the third quarter 2002 was $7.1 million compared to $6.4 million in the third quarter 2001. Operating cash flow, before EXHIBIT 99.2 changes in working capital, for the third quarter was a record $6.1 million versus $5.4 million for the third quarter 2001. On a sequential quarterly basis, EBITDA increased 21%, operating cash flow improved 27% and net income to common stockholders was $989,000 compared to $61,000 in the second quarter of 2002. Net capital expenditures for the third quarter 2002 totaled $4.3 million and included $2.3 million for drilling, $588,000 for land and G&G activities and $1.4 million in capitalized interest, overhead expenses and other. Net capital expenditures were partially offset by approximately $1.9 million in insurance reimbursements related to the loss of surface control and subsequent redrill of the Burkhart #1. MANAGEMENT COMMENTS Gene Shepherd, Chief Financial Officer stated, "As we had projected early in the year, we've achieved sequential quarterly growth in our production volumes during the first three quarters of 2002. Although the timing of bringing our new wells on line has been slower than we anticipated, we've had the drilling success we hoped for, and it is beginning to positively impact our financial results, as evidenced by our record operating cash flow in the third quarter. Given current commodity prices, we expect these results to generate record fourth quarter revenues, EBITDA, and operating cash flow. For the full year, we also expect to achieve record production volumes, revenues, EBITDA and operating cash flow. Even more importantly, our accelerated and thus back end loaded 2002 drilling program, provides our shareholders with a very exciting outlook for the year end, and particularly for the first quarter of 2003." FOURTH QUARTER 2002 GUIDANCE The following forecasts and estimates of Brigham's fourth 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 fourth quarter 2002 daily production volumes to average between 29 and 31 MMcfe, 57 % of which consists of natural gas. For the fourth 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 $0.38 per Mcfe. Based on these production and cost estimates, assumed average NYMEX prices of $3.60 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 $9.5 and $10.2 million and EBITDA of between $7.1 and $7.7 million for the fourth quarter 2002. CONFERENCE CALL INFORMATION Brigham management will host a conference call to discuss its third quarter 2002 operational and financial results with investors, analysts and other interested parties on Wednesday, November 6th, at 9:00 a.m. Central time. To participate in the call, please dial 800-388-8975 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, November 27th. To access the recording, domestic callers can dial 800-428-6051 and international callers can dial 973-709-2089. The passcode I.D. for the conference playback is 263887. 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 EXHIBIT 99.2 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
EXHIBIT 99.2 BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, ---------------------------------- ---------------------------------- 2001 2002 2001 2002 ---------------- ---------------- ---------------- ---------------- Revenues: Oil and natural gas sales $ 8,848 $ 9,434 $ 26,220 $ 24,637 Other 23 15 198 42 ---------------- ---------------- ---------------- ---------------- $ 8,871 $ 9,449 $ 26,418 $ 24,679 Costs and expenses: Lease operating 842 761 2,332 2,428 Production taxes 415 475 1,503 1,327 General and administrative, includes 1,099 non-cash charge (a) 934 2,708 3,781 Depletion of natural gas and oil properties 3,244 3,587 8,903 10,118 Depreciation and amortization 140 103 375 307 ---------------- ---------------- ---------------- ---------------- $ 5,575 $ 6,025 $ 15,821 $ 17,961 ---------------- ---------------- ---------------- ---------------- Operating income $ 3,296 $ 3,424 $ 10,597 $ 6,718 Interest expense, net (1,595) (1,614) (5,180) (4,684) Interest income 63 12 230 105 Other income (expense) (b) 1,842 (87) 7,827 (256) ---------------- ---------------- ---------------- ---------------- Income (loss) before income taxes $ 3,606 $ 1,735 $ 13,474 $ 1,883 Income tax expense - - - - ---------------- ---------------- ---------------- ---------------- Net income (loss) $ 3,606 $ 1,735 $ 13,474 $ 1,883 Preferred stock dividend & accretion 659 746 1,776 2,165 ---------------- ---------------- ---------------- ---------------- Net income (loss) to common $ 2,947 $ 989 $ 11,698 ($282) Net income (loss) to common per share: Basic $ 0.18 $ 0.06 $ 0.73 ($0.02) Diluted 0.17 0.06 0.67 (0.02) Wt. avg. common shares outstanding: Basic 15,984 16,057 15,983 16,037 Diluted 17,036 17,337 17,469 16,037 (a) Includes non-cash charge related to - - - ($596) stock compensation expense of: (b) Includes non-cash gains/(losses) $ 2,189 ($106) $ 9,217 $ 278 arising from hedge accounting for certain of Brigham's oil and natural gas hedges of:
EXHIBIT 99.2 BRIGHAM EXPLORATION COMPANY PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA (unaudited) Three Months Ended September 30, Nine Months Ended September 30, ------------------------------ ------------------------------- 2001 2002 2001 2002 -------------- -------------- -------------- --------------- Avg. net daily production: Natural gas (MMcf) 19.9 16.3 19.5 16.0 Oil (Bbls) 1,493 2,104 1,262 1,867 Equivalent natural gas (MMcfe) (6:1) 28.8 28.9 27.1 27.2 Total net production: Natural gas (MMcf) 1,790 1,463 5,266 4,307 Oil (MBbls) 134 189 341 504 Equivalent natural gas (MMcfe) (6:1) 2,596 2,599 7,311 7,332 % Natural gas 69% 56% 72% 59% Sales prices: Natural gas ($/Mcf) (a) $ 3.05 $ 3.23 $ 3.30 $ 3.02 Oil ($/Bbl) (a) 25.26 24.85 25.91 23.04 Equivalent natural gas ($/Mcfe) (6:1) 3.41 3.63 3.59 3.36 Other financial data: EBITDA ($000) (b) $ 6,396 $ 7,126 $ 18,715 $ 17,289 Operating cash flow before changes in working capital ($000) 5,364 6,122 15,062 14,299 (a) Includes the effects of hedging gains (losses) of: Natural gas ($/Mcf) $ 0.00 ($0.06) ($1.52) ($0.02) Oil ($/Bbl) (0.21) (2.18) (0.45) (1.46) (b) Net income (loss) plus interest expense, DD&A expenses, deferred income taxes and other non-cash items.
SUMMARY CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) December September 31, 30, 2001 2002 --------- ---------- Assets: Current assets $ 16,968 $ 28,577 Natural gas and oil properties, net (full cost method) 151,891 158,958 Other property and equipment, net 1,331 1,300 Other non-current assets 3,218 2,950 --------- ---------- Total assets $ 173,408 $ 191,785 Liabilities and stockholders' equity: Current liabilities $ 15,266 $ 29,677 Notes payable 75,000 75,000 Senior subordinated notes 16,721 21,506 Other non-current liabilities 206 353 --------- ---------- Total liabilities $ 107,193 $ 126,536 Redeemable preferred stock 16,614 18,778 Stockholders' equity 49,601 46,471 --------- ---------- Total liabilities and stockholders' equity $ 173,408 $ 191,785 ========= ==========
EXHIBIT 99.2 BRIGHAM EXPLORATION COMPANY SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 2001 2002 2001 2002 -------------- -------------- -------------- -------------- Cash flows from operating activities: Net income (loss) $ 3,606 $ 1,735 $ 13,474 $ 1,883 Depletion, depreciation and amortization 3,384 3,690 9,278 10,425 Interest paid through issuance of add'l senior sub. 220 288 498 785 Notes Amortization of deferred loan fees 343 303 1,029 888 Stock option compensation expense - - - 596 Market value and other adjustments for derivatives instruments (2,189) 106 (9,217) (278) -------------- -------------- -------------- -------------- Operating cash flow $ 5,364 $ 6,122 $ 15,062 $ 14,299 Changes in working capital and other items 1,982 6,017 (1,197) 7,896 -------------- -------------- -------------- -------------- Cash flows provided (used) by operating $ 7,346 $ 12,139 $ 13,865 $ 22,195 activities Cash flows (used) provided by investing activities (8,355) (5,657) (26,318) (18,850) Cash flows (used) provided by financing activities 93 - 18,932 3,725 -------------- -------------- -------------- -------------- Net increase (decrease) in cash and cash ($916) $ 6,482 $ 6,479 $ 7,070 equivalents ============== ============== ============== ==============
SUMMARY PER MCFE DATA (unaudited) Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- -------------------------------- 2001 2002 2001 2002 --------------- --------------- --------------- --------------- Revenues: Natural gas and oil sales $ 3.41 $ 3.63 $ 3.59 $ 3.36 Other revenue 0.01 0.01 0.03 0.01 --------------- --------------- --------------- --------------- $ 3.42 $ 3.64 $ 3.62 $ 3.37 Costs and expenses: Lease operating 0.32 0.29 0.32 0.33 Production taxes 0.16 0.18 0.21 0.18 General and administrative (a) 0.36 0.42 0.37 0.43 Depletion of natural gas and oil properties 1.25 1.38 1.22 1.38 Depreciation and amortization 0.05 0.04 0.05 0.04 --------------- --------------- --------------- --------------- $ 2.14 $ 2.31 $ 2.17 $ 2.36 --------------- --------------- --------------- --------------- Operating income $ 1.28 $ 1.33 $ 1.45 $ 1.01 Interest expense, net (b) (0.59) (0.62) (0.68) (0.62) Other income (expense) (c) (0.13) 0.01 (0.19) (0.07) --------------- --------------- --------------- --------------- Adjusted net income before dividend & accretion $ 0.56 $ 0.72 $ 0.58 $ 0.32 =============== =============== =============== =============== (a) Excludes non-cash charge for stock compensation expense of $0.08 per Mcfe for the nine months ended September 30, 2002. (b) Net of interest income. (c) Excludes non-cash gains/(losses) arising from hedge accounting for certain of Brigham's oil and natural gas hedges.
EXHIBIT 99.2 BRIGHAM EXPLORATION COMPANY SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF NOVEMBER 5, 2002 (unaudited) Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 -------- -------- -------- -------- -------- Natural Gas Swaps: MMBtu/d 11,750 9,250 6,500 5,000 3,500 $/MMBtu $ 3.394 $ 3.632 $ 3.320 $ 3.503 $ 3.731 Crude Oil Swaps: Bbls/d 875 750 550 600 450 $/Bbl $ 26.47 $ 25.29 $ 24.28 $ 23.77 $ 23.21 Crude Oil Collars: Cap - Bbls/d 500 250 250 - - - - Cap - $/Bbl $ 22.46 $ 22.56 $ 22.56 - - - - Floor - Bbls/d 500 250 250 - - - - Floor - $/Bbl $ 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. -----END PRIVACY-ENHANCED MESSAGE-----