DALLAS, Aug. 2 /PRNewswire-FirstCall/ -- Remington Oil and Gas
Corporation (NYSE:REM) announced the following financial results
for the three and six months ended June 30, 2005: Three Months
Ended Six Months Ended June 30, June 30, 2005 2004 2005 2004 (In
thousands, except per share data) Revenues $ 77,778 $ 58,384
$137,564 $104,545 Net income $ 24,924 $ 14,988 $ 40,958 $ 25,987
Cash flow provided by operations $ 63,839 $ 48,133 $109,194 $
77,595 Basic net income per share $ 0.87 $ 0.55 $ 1.45 $ 0.96
Diluted income per share $ 0.83 $ 0.53 $ 1.39 $ 0.92 Production
Bcfe 10.4 9.4 19.0 17.5 Average gas price $ 7.13 $ 6.22 $ 6.85 $
6.00 Average oil price $ 48.02 $ 36.34 $ 47.65 $ 35.07 Total
revenues for the three months ended June 30, 2005, grew by $19.4
million, or 33.2%, compared to the same period of 2004. Total
revenues for the six months ended June 30, 2005, increased $33.0
million, or 31.6%, compared to the same period of 2004. The revenue
gains for the three and six months ended June 30, 2005, were due to
increases in average equivalent oil and gas prices of 20.4% and
20.6%, respectively and Mcfe production gains of 10.2% and 8.6% per
period. Net income for the three months ended June 30, 2005,
increased $9.9 million, or 66.3%, compared to the same period of
2004. Net income for the six months ended June 30, 2005, increased
$15.0 million, or 57.6%, compared to the same period of 2004. Cash
flow from operations increased $15.7 million, or 32.6%, and $31.6
million, or 40.7%, for the three and six months ended June 30,
2005, compared to the same periods in 2004, respectively. Income
taxes for the three months ended June 30, 2005 were $13.5 million
compared to $8.2 million in the comparable period of 2004 and $22.3
million for the six months ended June 30, 2005 compared to $14.3
million for the comparable period in 2004. Current taxes accounted
for $4.2 million of this total, all of which arose in the second
quarter of 2005. The increase in taxes is primarily attributable to
the increase in income before taxes. The following table reflects
2005 cost guidance per Mcfe produced versus our year-to-date
results: 2005 2005 Actual Annual Guidance $/Mcfe Year-to-Date
$/Mcfe Operating Costs (LOE) $0.65 - $0.75 $0.65 General and
Administrative (G&A) $0.21 - $0.28 $0.30 Interest and Financing
$0.01 - $0.02 $0.02 Depreciation, Depletion and Amortization
(DD&A) $2.00 - $2.15 $1.85 LOE and Interest and Financing Costs
on a Mcfe basis were in line with guidance provided. DD&A was
below guidance primarily due to increased production from new lower
cost properties in the Gulf of Mexico. G&A costs were greater
than guidance largely as a result of $0.11/Mcfe associated with the
amortization of stock based compensation incurred during the
quarter. Annual dry hole expense is estimated between $25 and $30
million. Dry hole expense for the first six months of 2005 totaled
$17.0 million, of which $8.0 is attributable to the second quarter.
Of this latter amount, $2.8 million represents carry-over expenses
associated with two wells classified as dry holes in the first
quarter plus $3.8 million at East Cameron 315; and $1.3 million at
West Cameron 256. We utilize the successful efforts method of
accounting which requires dry holes to be reported as an expense in
the quarter they are determined to be dry. It is very difficult to
predict when dry holes will occur, and thus dry hole expense may
dramatically fluctuate from quarter to quarter. 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. Remington Oil and Gas
Corporation Condensed Consolidated Balance Sheets (In thousands,
except share data) June 30, Dec. 31, 2005 2004 Assets (Unaudited)
Current assets Cash and cash equivalents $ 65,566 $ 58,659 Accounts
receivable 60,557 49,582 Prepaid expenses and other current assets
7,211 5,199 Total current assets 133,334 113,440 Properties Oil and
gas properties (successful- efforts method) 837,767 744,215 Other
properties 3,468 3,145 Accumulated depreciation, depletion and
amortization (444,275) (409,591) Total properties 396,960 337,769
Other assets 2,005 1,905 Total assets $532,299 $453,114 Liabilities
and stockholders' equity Current liabilities Accounts payable and
accrued expenses $ 75,944 $ 69,339 Total current liabilities 75,944
69,339 Long-term liabilities Asset retirement obligation 18,740
16,030 Deferred income taxes 68,941 53,785 Total long-term
liabilities 87,681 69,815 Total liabilities 163,625 139,154
Commitments and contingencies Stockholders' equity Preferred stock,
$0.01 par value, 25,000,000 shares authorized Shares issued - none
Common stock, $.01 par value, 100,000,000 shares authorized,
28,621,118 shares issued and 28,586,759 shares outstanding in 2005,
27,883,698 shares issued and 27,849,339 shares outstanding in 2004
286 279 Additional paid-in capital 145,107 132,334 Restricted
common stock 24,453 6,749 Unearned compensation (22,321) (5,593)
Retained earnings 221,149 180,191 Total stockholders' equity
368,674 313,960 Total liabilities and stockholders' equity $532,299
$453,114 Remington Oil and Gas Corporation Condensed Consolidated
Statements of Income (Unaudited) (In thousands, except per share
amounts and prices) Three Months Ended Six Months Ended June 30,
June 30, 2005 2004 2005 2004 Revenues Gas sales $ 48,737 $ 42,713 $
89,127 $ 74,826 Oil sales 28,524 15,552 47,605 29,494 Gain on sale
of assets and other income 517 119 832 225 Total revenues 77,778
58,384 137,564 104,545 Costs and expenses Operating costs and
expenses 6,472 5,689 12,384 11,450 Exploration expenses 9,585 5,217
19,970 11,032 Depreciation, depletion and amortization 19,232
17,617 35,243 32,763 Impairment of oil and gas properties 357 4,750
654 4,986 General and administrative 3,545 1,625 5,667 3,547
Interest and financing expense 148 250 346 478 Total costs and
expenses 39,339 35,148 74,264 64,256 Income before taxes 38,439
23,236 63,300 40,289 Income tax expense 13,515 8,248 22,342 14,302
Net income $ 24,924 $ 14,988 $ 40,958 $ 25,987 Basic income per
share $ 0.87 $ 0.55 $ 1.45 $ 0.96 Diluted income per share $ 0.83 $
0.53 $ 1.39 $ 0.92 Average shares outstanding Basic 28,518 27,287
28,281 27,131 Diluted 29,927 28,218 29,382 28,190 Production Oil
(MBbls) 594 428 999 841 Gas (MMcf) 6,837 6,869 13,013 12,461 Mcfe
(1 barrel of oil is equivalent to 6 Mcf of gas) 10,401 9,437 19,007
17,507 Average prices Oil $ 48.02 $ 36.34 $ 47.65 $ 35.07 Gas $
7.13 $ 6.22 $ 6.85 $ 6.00 Remington Oil and Gas Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited) (In
thousands) Six Months Ended June 30, 2005 2004 Cash flow provided
by operations Net income $ 40,958 $ 25,987 Adjustments to reconcile
net income Depreciation, depletion and amortization 35,243 32,763
Deferred income taxes 15,156 14,152 Amortization of deferred
charges 91 91 Dry hole costs 17,023 6,753 Impairment costs 654
4,986 Cash paid for dismantlement costs (52) (377) Stock based
compensation 2,050 732 Tax benefit from exercise of stock options
3,516 --- Changes in working capital (Increase) in accounts
receivable (10,304) (10,630) Decrease (increase) in prepaid
expenses and other current assets (1,746) 575 Increase in accounts
payable and accrued liabilities 6,605 2,563 Net cash flow provided
by operations 109,194 77,595 Cash from investing activities
Payments for capital expenditures (110,477) (65,711) Net cash (used
in) investing activities (110,477) (65,711) Cash from financing
activities Payments on notes payable and other long-term payables
--- (8,000) Common stock issued 8,565 3,404 Treasury stock acquired
and retired (375) (645) Net cash (used in) provided by financing
activities 8,190 (5,241) Net increase in cash and cash equivalents
6,907 6,643 Cash and cash equivalents at beginning of period 58,659
31,408 Cash and cash equivalents at end of period $ 65,566 $ 38,051
DATASOURCE: Remington Oil and Gas Corporation CONTACT: Steven J.
Craig, Sr. Vice President of Remington Oil and Gas Corporation,
+1-214-210-2675
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