EX-99.1 3 d05354exv99w1.txt PRESS RELEASE EXHIBIT 99.1 PRESS RELEASE [REMINGTON LOGO] FOR IMMEDIATE RELEASE CONTACT: STEVEN J. CRAIG SR. VICE PRESIDENT (214) 210-2675 REMINGTON OIL AND GAS CORPORATION ANNOUNCES FIRST QUARTER 2003 EARNINGS Dallas, TX, April 30, 2003, - Remington Oil and Gas Corporation (NYSE: REM) announced the following first quarter financial and production information:
Three Months Ended March 31, ---------------------------------------------- 2003 2002 -------------------- ---------------------- (In thousands, except per share, price and production data) Revenues $ 42,201 $ 19,307 Net income $ 11,687 $ 258 Cash flow provided by operations before changes in working capital $ 35,669 $ 13,957 Weighted average diluted shares 27,970 24,997 Diluted income per share $ 0.42 $ 0.01 Production Bcfe 7.1 7.0 Average gas price $ 6.35 $ 2.57 Average oil price $ 31.87 $ 19.15
Total revenues, net income and cash flow from operations before changes in working capital increased during the first quarter of 2003 primarily because of higher average oil and gas prices. Production was 7.1 Bcfe, a 2% increase over the first quarter of 2002, and a sequential 13% increase over the fourth quarter of 2002. Gas sales revenue increased by $16.4 million, or 134%, and oil sales revenue increased by $6.5 million, or 93%. Net income increased by $11.4 million and cash flow provided by operations before changes in working capital increased by $21.7 million. Average gas prices increased from $2.57 per Mcf in 2002 to $6.35 per Mcf in 2003. Average oil prices increased from $19.15 per barrel to $31.87 per barrel. No hedges or forward sales were in place in the first quarter. Total oil production increased by 16% primarily from new properties in the Gulf of Mexico, and total gas production decreased by 5% because of property sales in South Texas in 2002 partially offset by increased production from the Gulf of Mexico. Operating costs and expenses were $0.60 per Mcfe compared to $0.45 per Mcfe in 2002 partially due to a higher proportion of more costly oil production. Depreciation, depletion, and amortization increased from $1.38 per Mcfe to $1.52 per Mcfe in 2003 reflecting an increase in our rate due to increased production from new higher cost properties. General and administrative expenses did not change at $0.18 per Mcfe for each of the quarters ending March 31, 2003 and 2002. Interest and financing costs decreased to $0.06 per Mcfe from $0.12 per Mcfe, or by 52%, due to lower average rates and a decrease in the average debt outstanding. - more - Deferred income tax expense increased by $6.2 million because of higher income before taxes in the first quarter of 2003 compared to the first quarter of 2002. Exploration expenses increased to $7.1 MM from $3.7 MM primarily because of dry hole costs for wells drilled in the Gulf of Mexico, reflecting a much more active drilling program in the first quarter of 2003. The adoption of Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations," had no material effect on our first quarter net income. Our prior estimates of abandonment liabilities were in line with the estimation methodology required under FASB 143. James A. Watt, President and Chief Executive Officer said, "First quarter operating margins were excellent. We expect DD&A, LOE, G&A and interest costs to be within guidance provided to the marketplace allowing for continued excellent margins, even in a somewhat lower commodity price environment. Production is on track for 35-37 Bcfe for the year providing cash flow to continue growing our reserve base primarily through exploration drilling." Remington Oil and Gas Corporation is an independent oil and gas exploration and production company headquartered in Dallas, Texas, with operations concentrating in the onshore and offshore regions of the Gulf Coast. Statements concerning future revenues and expenses, results of exploration, exploitation, development and acquisition expenditures, and reserve levels are forward-looking statements. These statements are based on assumptions concerning commodity prices, drilling results and production, administrative and interest costs that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business risks and there is no assurance that these goals and projections can or will be met. Further information is available in the Company's filings with the Securities and Exchange Commission, which are incorporated by this reference. 2 REMINGTON OIL AND GAS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
March 31, December 31, 2003 2002 ------------ ------------ (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 14,814 $ 14,929 Accounts receivable 47,288 32,555 Prepaid drilling costs 5,775 3,115 Prepaid expenses and other current assets 1,688 1,863 ------------ ------------ TOTAL CURRENT ASSETS 69,565 52,462 ------------ ------------ PROPERTIES Oil and gas properties (successful-efforts method) 537,974 510,921 Other properties 3,247 3,182 Accumulated depreciation, depletion and amortization (287,027) (279,722) ------------ ------------ TOTAL PROPERTIES 254,194 234,381 ------------ ------------ OTHER ASSETS 2,150 2,150 ------------ ------------ TOTAL ASSETS $ 325,909 $ 288,993 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 54,140 $ 47,523 Short-term notes payable and current portion of other long-term payables 2,285 1,715 ------------ ------------ TOTAL CURRENT LIABILITIES 56,425 49,238 ------------ ------------ LONG-TERM LIABILITIES Notes payable 37,400 37,400 Other long-term payables 1,224 1,503 Asset retirement obligation 11,847 -- Deferred income taxes 13,261 7,192 ------------ ------------ TOTAL LONG-TERM LIABILITIES 63,732 46,095 ------------ ------------ TOTAL LIABILITIES 120,157 95,333 ------------ ------------ Commitments and contingencies STOCKHOLDERS' EQUITY Preferred stock, $.01 par value, 25,000,000 shares authorized, no shares Outstanding -- -- Common stock, $.01 par value, 100,000,000 shares authorized, 26,495,553 shares issued and 26,388,801 shares outstanding in 2003, 26,327,195 shares issued and 26,236,459 shares outstanding in 2002 265 263 Additional paid-in capital 117,144 115,827 Restricted common stock 4,508 5,468 Unearned compensation (2,845) (3,192) Treasury stock, 72,393 shares in 2003 and 56,377 shares in 2002 (1,278) (977) Retained earnings 87,958 76,271 ------------ ------------ TOTAL STOCKHOLDERS' EQUITY 205,752 193,660 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 325,909 $ 288,993 ============ ============
REMINGTON OIL AND GAS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts)
Three Months Ended March 31, ---------------------------- 2003 2002 ---------- ---------- REVENUES Oil sales $ 13,575 $ 7,030 Gas sales 28,593 12,234 Other income 33 43 ---------- ---------- TOTAL REVENUES 42,201 19,307 ---------- ---------- COSTS AND EXPENSES Operating 4,256 3,146 Exploration 7,098 3,664 Depreciation, depletion and amortization 10,757 9,568 General and administrative 1,291 1,246 Stock based compensation 419 457 Interest and financing 400 829 ---------- ---------- TOTAL COSTS AND EXPENSES 24,221 18,910 ---------- ---------- INCOME BEFORE INCOME TAXES 17,980 397 Income tax expense 6,293 139 ---------- ---------- NET INCOME $ 11,687 $ 258 ========== ========== BASIC INCOME PER SHARE $ 0.44 $ 0.01 ========== ========== DILUTED INCOME PER SHARE $ 0.42 $ 0.01 ========== ========== WEIGHTED AVERAGE SHARES OUTSTANDING (BASIC) 26,340 22,878 WEIGHTED AVERAGE SHARES OUTSTANDING (DILUTED) 27,970 24,997 PRODUCTION Oil (MBbls) 426 367 Gas (MMcf) 4,505 4,755 AVERAGE PRICES Oil $ 31.87 $ 19.15 Gas $ 6.35 $ 2.57
REMINGTON OIL AND GAS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
Three Months Ended March 31, ----------------------------- 2003 2002 ---------- ---------- CASH FLOW PROVIDED BY OPERATIONS NET INCOME $ 11,687 $ 258 Adjustments to reconcile net income Depreciation, depletion and amortization 10,757 9,568 Deferred income taxes 6,293 139 Amortization of deferred charges 64 47 Dry hole and impairment costs 6,745 3,492 Cash paid for dismantlement (296) (4) Stock based compensation 419 457 CASH FLOW PROVIDED BY OPERATIONS BEFORE CHANGES IN WORKING ---------- ---------- CAPITAL 35,669 13,957 ---------- ---------- CHANGES IN WORKING CAPITAL (Increase) in accounts receivable (14,733) (1,932) (Increase) in prepaid expenses and other current assets (2,549) (1,714) Increase (decrease) in accounts payable and accrued expenses 6,617 (7,314) ---------- ---------- NET CASH FLOW PROVIDED BY OPERATIONS 25,004 2,997 ---------- ---------- CASH FROM INVESTING ACTIVITIES Capital expenditures (24,614) (20,387) ---------- ---------- NET CASH (USED IN) INVESTING ACTIVITIES (24,614) (20,387) ---------- ---------- CASH FROM FINANCING ACTIVITIES Payments on notes payable and other long-term payables (267) (44,652) Common stock issued 63 53,313 Purchase of treasury stock (301) (255) ---------- ---------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (505) 8,406 ---------- ---------- NET (DECREASE) IN CASH AND CASH EQUIVALENTS (115) (8,984) Cash and cash equivalents at beginning of period 14,929 19,377 ---------- ---------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 14,814 $ 10,393 ========== ==========
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