EX-99.1 3 h05400exv99w1.txt PRESS RELEASE [PLAINS RESOURCES LETTERHEAD] NEWS RELEASE CONTACT: Stephen A. Thorington Executive Vice President and Chief Financial Officer (713) 739-6700 or (800) 934-6083 FOR IMMEDIATE RELEASE PLAINS RESOURCES REPORTS FIRST QUARTER EARNINGS OF $0.28 PER DILUTED SHARE Houston, Texas - May 2, 2003 - Plains Resources Inc. (NYSE:PLX) today reported net income of $7.3 million, or $0.28 per diluted share for the first quarter of 2003 compared to net income of $6.6 million, or $0.26 per diluted share for the first quarter of 2002. Net income for the first quarter of 2003 includes a $3.2 million after-tax noncash gain related to the equity offering of Plains All American Pipeline, L.P. (NYSE: PAA) completed in March 2003. Results for Plains Exploration & Production Company (NYSE: PXP), which the Company distributed to its stockholders in a tax-free spin-off on December 18, 2002, are reflected as discontinued operations in the accompanying financial statements. The Company reported equity in earnings from its investment in PAA of $6.3 million compared to $4.4 million in the first quarter of 2002. The Company's cash distribution from PAA was $7.5 million in the first quarter of 2003, an 8% increase from the first quarter 2002 distribution of $7.0 million. Oil production volumes from the Company's Florida properties were 2,578 barrels per day in the first quarter of 2003 compared to 2,744 barrels per day in the prior year quarter. In accordance with SEC Staff Accounting Bulletin 101, the Company's results reflect revenue from oil production in the period it is sold as opposed to when it is produced. The Company reported sales of 3,067 barrels of oil per day in the first quarter of 2003 compared to 2,400 barrels per day in the first quarter of 2002. Unit gross margin was $10.36 per barrel in the first quarter of 2003 as compared to $7.50 in the comparable period of 2002. The Company's average wellhead oil price, which is net of quality differentials, hedging and derivative cash settlements, was $22.60 per barrel in the first quarter of 2003 as compared to $18.78 per barrel in last year's first quarter. The Company continues to be active in its treasury share program and since December 18, 2002 has repurchased a total of 542,700 shares at an average price of $10.41 per share. "The Company once again delivered a very solid set of results highly consistent with 8-K guidance. Additionally, during the quarter, the Company made considerable progress on its annual objective for the treasury share program. As we have said before, the active program is expected to be large in scale and enduring in nature as we currently expect to dedicate all available resources to the ongoing program" stated Mr. John T. Raymond, Chief Executive Officer and President. -MORE- CONFERENCE CALL/WEBCAST INSTRUCTIONS: The Company will host a conference call to discuss the results and other forward-looking items on Friday, May 2, 2003. The call will begin at 10:00 a.m. (central time). The dial-in conference number is: 800-223-9488 or international: 785-832-1077. Reference Conference I.D.#: Plains. The replay will be available for 2 weeks at 800-934-8450 or international at 402-220-6997. To access the Internet webcast, please go to the Company's website at www.plainsresources.com (http://www.plainsresources.com), under investor relations section choose "conference calls." Following the live webcast, the call will be archived for a period of sixty (60) days on the Company's website. Plains Resources is an independent energy company engaged in the acquisition, development and exploitation of crude oil and natural gas. Through its ownership in Plains All American Pipeline, L.P., Plains Resources has interests in the midstream activities of marketing, gathering, transportation, terminaling and storage of crude oil. Plains Resources is headquartered in Houston, Texas. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among other things, economic conditions, oil and gas price volatility, uncertainties inherent in the exploration for and development and production of oil and gas and in estimating reserves, regulatory changes and other factors discussed in Plains Resources' filings with the Securities and Exchange Commission. -MORE-
PLAINS RESOURCES INC. CONSOLIDATED STATEMENTS OF INCOME (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) THREE MONTHS ENDED MARCH 31, -------------------- REVENUES 2003 2002 -------- -------- Oil sales $ 7,277 $ 4,179 Hedging (307) (123) -------- -------- 6,970 4,056 -------- -------- COSTS AND EXPENSES Production expenses 1,858 1,393 Production and ad valorem taxes 404 103 Oil transportation expenses 1,118 939 General and administrative 1,812 1,667 Depreciation, depletion and amortization 1,405 1,159 Accretion of asset retirement obligation 56 -- -------- -------- 6,653 5,261 -------- -------- OTHER INCOME (EXPENSE) Equity in earnings of Plains All American Pipeline, L.P. 6,325 4,350 Gain on Plains All American Pipeline, L.P. unit offering 6,108 -- Gain (loss) on derivatives Change in fair value 666 -- Cash settlements (732) -- Interest expense (501) (1,687) Interest and other income 75 19 -------- -------- 11,941 2,682 -------- -------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 12,258 1,477 Income tax benefit (expense) Current (2,391) 2,768 Deferred (3,476) (3,513) -------- -------- INCOME FROM CONTINUING OPERATIONS 6,391 732 Income from discontinued operations, net of tax -- 5,864 -------- -------- INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 6,391 6,596 Cumulative effect of accounting change, net of tax 933 -- -------- -------- NET INCOME 7,324 6,596 Preferred dividends (350) (350) -------- -------- INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 6,974 $ 6,246 ======== ======== EARNINGS PER SHARE (IN DOLLARS) Basic Income from continuing operations $ 0.25 $ 0.02 Discontinued operations -- 0.24 Change in accounting policy 0.04 -- -------- -------- $ 0.29 $ 0.26 ======== ======== Diluted Income from continuing operations $ 0.24 $ 0.02 Discontinued operations -- 0.24 Change in accounting policy 0.04 -- -------- -------- $ 0.28 $ 0.26 ======== ======== Weighted average shares outstanding Basic 23,981 23,635 Diluted 26,050 24,160
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PLAINS RESOURCES INC. FINANCIAL AND OPERATING DATA THREE MONTHS ENDED MARCH 31, ---------------------------- 2003 2002 --------- --------- DISTRIBUTIONS FROM PAA (THOUSANDS OF DOLLARS) General partner interest $ 682 $ 437 Limited partner units 6,822 6,521 --------- --------- $ 7,504 $ 6,958 ========= ========= PRODUCTION AND SALES VOLUMES Production volumes (MBbls) 232 247 Daily average production volumes (Bbls) 2,578 2,744 Sales volumes (MBbls) 276 216 Daily average sales volumes (Bbls) 3,067 2,400 UNIT ECONOMICS ($/Bbl) Average oil sales price Average NYMEX $ 33.80 $ 21.63 Hedging and derivative cash settlements (3.76) (0.57) Differential (7.44) (2.28) --------- --------- Net realized price 22.60 18.78 Production expenses (6.73) (6.45) Production and ad valorem taxes (1.46) (0.48) Oil transportation expenses (4.05) (4.35) --------- --------- Gross margin $ 10.36 $ 7.50 ========= =========
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PLAINS RESOURCES INC. CONSOLIDATED BALANCE SHEETS (IN THOUSANDS OF DOLLARS) MARCH 31, DECEMBER 31, 2003 2002 --------- ------------ ASSETS CURRENT ASSETS Cash and cash equivalents $ 8,111 $ 8,807 Accounts receivable and other current assets 3,870 3,104 Inventories 1,785 2,305 --------- --------- 13,766 14,216 --------- --------- PROPERTY AND EQUIPMENT, AT COST Oil and gas properties - full cost method 351,152 349,517 Other property and equipment 27 27 --------- --------- 351,179 349,544 Less allowance for depreciation, depletion and amortization (297,443) (299,214) --------- --------- 53,736 50,330 --------- --------- INVESTMENT IN PLAINS ALL-AMERICAN PIPELINE, L.P. 80,632 70,042 --------- --------- OTHER ASSETS Deferred income taxes 11,464 16,957 Other 9,864 9,867 --------- --------- 21,328 26,824 --------- --------- $ 169,462 $ 161,412 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and other current liabilities $ 9,685 $ 8,187 Current maturities of long-term debt 18,000 18,000 --------- --------- 27,685 26,187 --------- --------- LONG-TERM BANK DEBT 22,500 27,000 --------- --------- ASSET RETIREMENT OBLIGATION 1,900 -- --------- --------- OTHER LONG-TERM LIABILITIES 2,846 2,716 --------- --------- STOCKHOLDERS' EQUITY Series D cumulative convertible preferred stock 23,300 23,300 Common stock 2,828 2,806 Additional paid-in capital 274,351 273,162 Retained earnings (deficit) (96,908) (103,882) Accumulated other comprehensive income (376) (2,862) Treasury stock, at cost (88,664) (87,015) --------- --------- 114,531 105,509 --------- --------- $ 169,462 $ 161,412 ========= =========
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