-----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, Qe0f8SQpXx2AiISfA5DkvmGIpfD3eYJzBJY6yVZ1NhlzfukXCbdJqW4LCBA1THQV erCrDaCQle2OBevs9UKJRA== 0000950129-03-003819.txt : 20030730 0000950129-03-003819.hdr.sgml : 20030730 20030730083046 ACCESSION NUMBER: 0000950129-03-003819 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030730 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PETROQUEST ENERGY INC CENTRAL INDEX KEY: 0000872248 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 721440714 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19020 FILM NUMBER: 03810020 BUSINESS ADDRESS: STREET 1: 400 E KALISTE SALOOM RD SUITE 6000 CITY: LAFAYETTE STATE: LA ZIP: 70508 BUSINESS PHONE: 3372327028 MAIL ADDRESS: STREET 1: 400 E KALISTE SALOOM RD SUITE 6000 CITY: LAFAYETTE STATE: LA ZIP: 70508 FORMER COMPANY: FORMER CONFORMED NAME: OPTIMA PETROLEUM CORP DATE OF NAME CHANGE: 19950726 8-K 1 h07780e8vk.txt PETROQUEST ENERGY, INC.- JULY 30, 2003 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): July 30, 2003 (July 30, 2003) PETROQUEST ENERGY, INC. (Exact name of registrant as specified in its charter) Delaware (State of incorporation) 1-9020 76-1440714 (Commission File Number) (IRS Employer Identification No.) 400 E. Kaliste Saloom Road, Suite 6000, Lafayette, Louisiana 70508 (Address of Registrant's principal executive offices) Registrant's telephone number, including area code (337) 232-7028 Not Applicable (Former name or former address, if changed since last report) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS a. Financial Statement of Business Acquired None. b. Pro Forma Financial Information None. c. Exhibits 99.1 Press Release ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On July 30, 2003, PetroQuest Energy, Inc. (the "Company") issued a press release announcing financial results for its second fiscal quarter ended June 30, 2003. A copy of the press release announcing the results is filed as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference. 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 hereunto duly authorized. Date: July 30, 2003 PETROQUEST ENERGY, INC. By: /s/ Daniel G. Fournerat ------------------------------------ Daniel G. Fournerat Senior Vice President, General Counsel and Secretary 2 INDEX TO EXHIBIT EXHIBIT NUMBER DESCRIPTION - -------------- ----------- 99.1 PRESS RELEASE EX-99.1 3 h07780exv99w1.txt PRESS RELEASE - ANNOUNCING FINANCIAL RESULTS EXHIBIT 99.1 [PETROQUEST ENERGY, INC. LOGO] NEWS RELEASE For further information, contact: Robert R. Brooksher, Vice President - Corporate Communications (337) 232-7028 PETROQUEST ENERGY ANNOUNCES SECOND QUARTER RESULTS Lafayette, Louisiana - July 30, 2003 - PetroQuest Energy, Inc. (NASDAQ: PQUE) announced today a net loss for the quarter ended June 30, 2003 of $1,698,000 or $(0.04) per share, compared to second quarter 2002 net income of $255,000 or $0.01 per share. Net cash flow provided by operating activities for the second quarter of 2003 was $6,363,000 as compared to $10,101,000 for the comparable 2002 period. Net cash flow provided by operating activities before working capital changes for the second quarter of 2003 was $5,046,000, as compared to $7,390,000 for the comparable 2002 period. For the first six months of 2003, the Company reported net income of $1,295,000 or $0.03 per share. Net income for the first six months of 2003 includes an after tax gain of $849,000 for the cumulative effect of a change in accounting principle related to the adoption of Statement of Accounting Standards No. 143, "Accounting for Asset Retirement Obligations." The Company reported a net loss of $109,000 or $0.00 per share for the first six months of 2002. For the first six months of 2003, net cash flow provided by operating activities was $13,051,000 and net cash flow provided by operating activities before working capital changes was $17,048,000. Net cash flow provided by operating activities and net cash flow provided by operating activities before working capital changes for the first six months of 2002 were $14,168,000 and $14,135,000, respectively. See the attached schedule for a reconciliation of net cash flow provided by operating activities to net cash flow provided by operating activities before working capital changes. Oil and gas sales during the second quarter of 2003 decreased 20% to $9,060,000 as compared to $11,357,000 in the second quarter of 2002. For the first six months of 2003, sales increased 15% to $25,214,000 from $21,866,000 in the first six months of 2002. Stated on an Mcfe basis, unit prices received during the second quarter and first six months of 2003 were 32% and 63% higher, respectively, than the prices received during the comparable 2002 periods. The following table sets forth certain information with respect to the oil and gas operations of the Company for the three and six-month periods ended June 30, 2003 and 2002:
Three Months Ended Six Months Ended June 30, June 30, ------------------------- --------------------------- 2003 2002 2003 2002 ---------- ---------- ----------- ----------- Production: Oil (Bbls) 183,034 217,126 417,864 451,634 Gas (Mcf) 845,931 1,916,825 2,452,248 4,301,791 Total Production (Mcfe) 1,944,135 3,219,581 4,959,432 7,011,595 Sales: Total oil sales $5,013,976 $5,539,229 $12,249,095 $10,392,670 Total gas sales $4,046,220 $5,817,365 $12,964,789 $11,472,862 Average sales prices: Oil (per Bbl) $27.39 $25.51 $29.31 $23.01 Gas (per Mcf) $4.78 $3.03 $5.29 $2.67 Per Mcfe $4.66 $3.53 $5.08 $3.12
The following initiates guidance for the third quarter of 2003:
Guidance for Description 3rd Quarter 2003 - ----------- ---------------- Production volumes (MMcfe/d) 19.5-21.5 Percent gas 50% Expenses: Lease operating expenses (per Mcfe) $1.25-$1.35 Production taxes (per Mcfe) $0.12-$0.13 Depreciation, depletion and amortization (per Mcfe) $2.95-$3.05 General and administrative (in millions) $1.10-$1.30 Interest expense (in millions) $.075-$1.00 Effective tax rate (all deferred) 35%
PetroQuest Energy Inc. is an independent energy company engaged in the exploration, development, acquisition and production of oil and natural gas reserves in the Gulf Coast Basin, both onshore and in shallow waters offshore. This press release contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our estimate of the sufficiency of our existing capital sources, our ability to raise additional capital to fund cash requirements for future operations, the uncertainties involved in estimating quantities of proved oil and natural gas reserves, in prospect development and property acquisitions and in projecting future rates of production, the timing of development expenditures and drilling of wells, and the operating hazards attendant to the oil and gas business. In particular, careful consideration should be given to cautionary statements made in the various reports PetroQuest has filed with the Securities and Exchange Commission. PetroQuest undertakes no duty to update or revise these forward-looking statements. PETROQUEST ENERGY, INC. Consolidate Statements of Operations (unaudited) (Amounts In Thousands, Except Per Share Data)
Three Months Ended Ended Six Months Ended June 30, June 30, -------------------------- ------------------------- 2003 2002 2003 2002 -------- ------- ------- -------- Revenues: Oil and gas sales $ 9,060 $11,357 $25,214 $ 21,866 Interest and other income 41 15 52 36 -------- ------- ------- -------- 9,101 11,372 25,266 21,902 -------- ------- ------- -------- Expenses: Lease operating expenses 2,504 2,404 5,266 4,752 Production taxes 125 120 335 322 Depreciation, depletion and amortization 5,878 6,627 14,351 13,722 General and administrative 1,126 1,542 2,348 2,743 Accretion of asset retirement obligation 136 -- 276 -- Interest expense 230 17 254 227 Derivative effects 1,714 270 1,749 304 -------- ------- ------- -------- 11,713 10,980 24,579 22,070 -------- ------- ------- -------- Income (loss) from operations (2,612) 392 687 (168) Income tax expense (benefit) (914) 137 241 (59) -------- ------- ------- -------- Income (loss) before cumulative effect of change in accounting principle $ (1,698) $ 255 $ 446 $ (109) Cumulative effect of change in accounting principle -- -- 849 -- Net income (loss) $ (1,698) $ 255 $ 1,295 $ (109) ======== ======= ======= ======== Earnings (loss) per common share: Basic Income (loss) before cumulative effect of change in accounting principle $ (0.04) $ 0.01 $ 0.01 $ -- Cumulative effect of change in accounting principle -- -- 0.02 -- Net income (loss) $ (0.04) $ 0.01 $ 0.03 $ -- -------- ------- ------- -------- Diluted Income (loss) before cumulative effect of change in accounting principle $ (0.04) $ 0.01 $ 0.01 $ -- Cumulative effect of change in accounting principle -- -- 0.02 -- Net income (loss) $ (0.04) $ 0.01 $ 0.03 $ -- Weighted average number of common shares: Basic 42,895 37,883 42,874 36,287 ======== ======= ======= ======== Diluted 42,895 40,188 43,880 36,287 ======== ======= ======= ========
PETROQUEST ENERGY, INC. Non-GAAP Disclosure Reconciliation (Amounts In Thousands)
Three Months Ended Six Months Ended June 30, June 30, ------------------- -------------------- 2003 2002 2003 2002 ------- -------- ------- -------- Net cash flow provided by operating activities $ 6,363 $ 10,101 $13,051 $ 14,168 Changes in working capital accounts (1,317) (2,711) 3,997 (33) ------- -------- ------- -------- Net cash flow provided by operations before working capital changes $ 5,046 $ 7,390 $17,048 $ 14,135 ======= ======== ======= ========
Note: Management believes that net cash flow provided by operating activities before working capital changes is relevant and useful information, which is commonly used by analysts, investors and other interested parties in the oil and gas industry as a financial indicator of an oil and gas company's ability to generate cash used to internally fund exploration and development activities and to service debt. Net cash flow provided by operating activities before working capital changes is not a measure of financial performance prepared in accordance with generally accepted accounting principles ("GAAP") and should not be considered in isolation or as an alternative to net cash flow provided by operating activities. In addition, since net cash flow provided by operating activities before working capital changes is not a term defined by GAAP, it might not be comparable to similarly titled measures used by other companies. -----END PRIVACY-ENHANCED MESSAGE-----