GREAT EARNINGS FROM CWEI - News On Wells
Tuesday August 1, 5:47 pm Eastern Time
Press Release
SOURCE: Clayton Williams Energy, Inc.
Clayton Williams Energy Announces Record Profits For Second Quarter and Update On Pinnacle Reef Wells
MIDLAND, Texas, Aug. 1 /PRNewswire/ -- Clayton Williams Energy, Inc. (Nasdaq: CWEI - news) reported today record net income for the second quarter of 2000 of $10.9 million, or $1.15 per diluted share, on revenues of $26.7 million, compared to net income of $7.9 million, or $.87 per share, on revenues of $10.8 million for the second quarter of 1999. The 1999 quarter held the Company's previous record for reported earnings, but included an $8.3 million gain on the sale of its interests in the Jalmat Field in Lea County, New Mexico.
For the six months ended June 30, 2000, the Company reported net income of $17.3 million, or $1.84 per diluted share, on revenues of $46.9 million, compared to net income of $7.8 million, or $.86 per diluted share, on revenues of $19.1 million for the six-month period in 1999.
The Company cited high oil and gas prices as the primary factor in this record-setting achievement, but also noted that increases in its net oil and gas production contributed significantly to the overall increase in oil and gas revenues. Gas production was up 126% as compared to the 1999 quarter due primarily to an increase in the Company's production capacity resulting from the completion of a new gas treatment facility in the Cotton Valley Pinnacle Reef area in Robertson County, Texas. Oil production also increased 32% due primarily to the Company's horizontal drilling and water frac programs in the Trend.
To date, the Company has successfully drilled four Pinnacle Reef wells. Three of these wells, the J. C. Fazzino Unit #1, the J.C. Fazzino Unit #2 and the Varisco Estate #1, are currently producing at a combined rate of 41 MMcf per day (20.5 MMcf to the Company's interest, net of royalties and amounts payable under a vendor financing arrangement), while the fourth well, the McGrew #1, is expected to be completed by early September.
The Company is currently drilling the Muse #1, the Company's fifth Pinnacle Reef well, at a depth of about 10,000 feet. The Company owns a 100% working interest in the Muse #1, but is drilling the well pursuant to vendor financing arrangements.
The Company owns a 14% working interest in a test well to be operated by Anadarko Petroleum Corporation (formerly UPRC), the Grey Reef #1, which is expected to spud in late August. It is four miles southwest of the Fazzino #2 and is on the same deep Jurassic feature.
Clayton W. Williams, Jr., President and CEO said, ``We are very excited about the potential of this well. The Grey Reef #1 will be drilled on the same geological feature that immediately underlies the Fazzino #1 and #2 and the other two reef wells. These wells all encountered very significant porosity zones below their gas/water contact. Seismic indicates the Grey Reef #1 will be 800 to 900 feet high to all of these wells and because it is on the same feature there is a good chance of finding these porosity zones gas filled. Since this well offsets our 100% acreage, if successful, it will be very significant to the Company.''
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.
Certain statements contained herein constitute ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995 (the ``Reform Act''). Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: the volatility of oil and gas prices, the Company's drilling results, the Company's ability to replace short-lived reserves, the availability of capital resources, the reliance upon estimates of proved reserves, operating hazards and uninsured risks, competition, government regulation, the ability of the Company to implement its business strategy, and other factors referenced in the Company's public filings with the Securities and Exchange Commission.
The financial information contained herein and in the accompanying tables should be read in conjunction with the notes to consolidated financial statements included in the Company's Form 10-Q for the quarter ended June 30, 2000.
A conference call is scheduled for 10:30 a.m. CDT August 2, 2000, and will be available live on the Internet. The new link to the conference call is posted on our web page at claytonwilliams.com or at vcall.com. The call will remain posted for replay for up to 90 days afterward.
CLAYTON WILLIAMS ENERGY, INC.
SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per unit data)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
STATEMENT OF OPERATIONS: (Unaudited) (Unaudited)
REVENUES
Oil and gas sales $25,447 $9,909 $44,549 $17,430
Natural gas services 1,240 871 2,359 1,676
Total revenues 26,687 10,780 46,908 19,106
COSTS AND EXPENSES
Lease operations 4,469 2,684 8,169 5,388
Exploration:
Abandonments and impairments 1,484 639 3,267 894
Seismic and other 1,067 20 2,043 377
Natural gas services 1,158 795 2,027 1,456
Depreciation, depletion and
amortization 6,892 5,548 11,949 10,840
General and administrative 1,102 1,133 1,953 1,871
Total costs and expenses 16,172 10,819 29,408 20,826
Operating income (loss) 10,515 (39) 17,500 (1,720)
OTHER INCOME (EXPENSE)
Interest expense (644) (675) (1,255) (1,477)
Gain on sales of property
and equipment 1,014 8,382 1,018 10,593
Other 19 280 65 367
Total other income (expense) 389 7,987 (172) 9,483
INCOME BEFORE INCOME TAXES 10,904 7,948 17,328 7,763
INCOME TAX EXPENSE --- --- --- ---
NET INCOME $10,904 $7,948 $17,328 $7,763
Net income per common share:
Basic $1.19 $.89 $1.89 $.87
Diluted $1.15 .87 $1.84 $.86
Weighted average common
shares outstanding:
Basic 9,190 8,973 9,181 8,964
Diluted 9,492 9,107 9,431 9,063
OTHER OPERATING DATA:
Cash flow provided by
operating activities $16,673 $2,233 $30,780 $7,461
EBITDAX $19,958 $6,168 $34,759 $10,391
Net production:
Oil (MBbls) 627 476 1,176 949
Gas (MMcf) 2,259 1,000 3,522 2,110
MBOE 1,004 643 1,763 1,301
Average sales price
(including hedging
gains/losses):
Oil ($/Bbl) $28.08 $15.77 $28.09 $13.51
Gas ($/Mcf) $3.30 $2.55 $3.08 $2.03
June 30, December 31,
2000 1999
CONDENSED BALANCE SHEET: (Unaudited)
Current assets $25,143 $15,900
Property and equipment, net 106,832 93,006
Other assets 255 260
Total assets $132,230 $109,166
Current liabilities $27,584 $22,549
Long-term debt 31,000 30,500
Stockholders' equity 73,646 56,117
Total liabilities and stockholders' equity $132,230 $109,166
SOURCE: Clayton Williams Energy, Inc.
DC |
