Great Earnings from CWEI - Record Earnings - At breakout point:
CWEI : CLAYTON WILLIAMS ENERGY (NASDAQ)
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Clayton Williams Energy Announces Record Profits for First Quarter and Update On Pinnacle Reef Wells
MIDLAND, Texas, May 9 /PRNewswire/ -- Clayton Williams Energy, Inc. (Nasdaq: CWEI) reported today record net income for the first quarter of 2000 of $6.4 million, or $.69 per diluted share, on revenues of $20.2 million, compared to a net loss of $185,000, or $.02 per share, on revenues of $8.3 million for the first quarter of 1999. Net income for the current quarter was the highest in the Company's history, as adjusted for non-recurring gains on sales of property and equipment.
The Company also reported near-record oil and gas revenues of $19.1 million for the quarter, an increase of 155% over the same period in 1999. The Company cited an unprecedented turnaround in oil and gas prices as the primary factor in the improvement. The Company's average oil price increased 146% from $11.42 per barrel during the 1999 quarter to $28.11 per barrel during the current quarter, while its average gas price increased 72% from $1.57 per Mcf to $2.70 per Mcf. Higher oil and gas production also contributed to the dramatic increase in oil and gas revenues. Oil production during the current quarter increased 16% due primarily to added production from the Company's horizontal drilling and water frac programs in the Trend. Gas production for the same period increased 14% from 1999 levels due primarily to production from the Cotton Valley Pinnacle Reef area in Robertson County, Texas, offset in part by the loss of production from the sale of a large gas property in the second quarter of 1999.
The Company also updated the status of its Cotton Valley Pinnacle Reef exploration and production activities. The Company currently has two wells on production in this area, the J. C. Fazzino Unit #1, the Company's initial discovery well, and the J. C. Fazzino Unit #2, a well drilled in the same reef under a vendor financing arrangement. Due to limited plant capacity, combined gas production from these wells during the first quarter of 2000 was restricted to 15 MMcf per day. The Company completed construction on a new 70 MMcf per day plant in early April. Although the Fazzino #2 has additional productive capacity, the Company has produced the well since the completion of the new plant at an average rate of 27.3 MMcf per day (10.9 MMcf to the Company's interest, net of royalties and amounts payable to the vendor finance group), and has produced the Fazzino #1 at an average rate of 5.4 MMcf per day (4.4 MMcf to the Company's interest, net of royalties).
Completion operations are also continuing on the Varisco Estate #1, a 16,400 foot test of a second reef anomaly, and the Company is presently drilling at a depth of 13,500 feet on the McGrew #1, a 17,000 foot test of a third reef anomaly. In addition, the Company plans to conduct an additional frac job on the Fazzino #1.
"While we are very encouraged by the production rates we have seen so far from the Fazzino wells and the gas shows we have experienced in our completion attempts on the Varisco Estate well, it is still very early in the program. We have a lot of work to do before we can properly evaluate this play," stated Clayton W. Williams, Chairman, President and CEO of the Company. "The level of future drilling and completion activities will be affected by these evaluations and the results of the Varisco Estate and McGrew wells."
Clayton Williams Energy, Inc. is an independent energy company based 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.
TABLES FOLLOW ...
A conference call is scheduled for 1:30 p.m. CDT and will be available live on the Internet. The new link to the conference call is posted on the Company's 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
March 31,
2000 1999
STATEMENT OF OPERATIONS: (Unaudited)
REVENUES
Oil and gas sales $ 19,102 $ 7,521
Natural gas services 1,119 805
Total revenues 20,221 8,326
COSTS AND EXPENSES
Lease operations 3,700 2,704
Exploration:
Abandonments and impairments 1,783 255
Seismic and other 976 357
Natural gas services 869 661
Depreciation, depletion and amortization 5,057 5,292
General and administrative 851 738
Total costs and expenses 13,236 10,007
Operating income (loss) 6,985 (1,681)
OTHER INCOME (EXPENSE)
Interest expense (611) (802)
Gains on sales of property and equipment 4 2,211
Other 46 87
Total other income (expense) (561) 1,496
INCOME (LOSS) BEFORE INCOME TAXES 6,424 (185)
INCOME TAX EXPENSE --- ---
NET INCOME (LOSS) $ 6,424 $ (185)
Net income (loss) per common share:
Basic $ .70 $ (.02)
Diluted $ .69 $ (.02)
Weighted average common shares outstanding:
Basic 9,172 8,954
Diluted 9,373 8,954
OTHER OPERATING DATA:
Cash flow provided by operating activities $ 14,107 $ 5,228
EBITDAX $ 14,801 $ 4,223
Net production:
Oil (MBbls) 549 473
Gas (MMcf) 1,263 1,110
MBOE 760 658
Average sales price
(including hedging gains/losses):
Oil ($/Bbl) $ 28.11 $ 11.42
Gas ($/Mcf) $ 2.70 $ 1.57
March 31, December 31,
2000 1999
CONDENSED BALANCE SHEET: (Unaudited)
Current assets $ 18,261 $ 15,900
Property and equipment, net 102,150 93,006
Other assets 256 260
Total assets $120,667 $109,166
Current liabilities $ 26,050 $ 22,549
Long-term debt 32,000 30,500
Stockholders' equity 62,617 56,117
Total liabilities and stockholders' equity $120,667 $109,166
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SOURCE: Clayton Williams Energy, Inc.
CONTACT: Lajuanda Holder, Director of Investor Relations, 915-688-3419, or Mel G. Riggs, Chief Financial Officer, 915-688-3431, both of Clayton Williams Energy, Inc., or email, cwei@claytonwilliams.com
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