Remington Oil and Gas Announces Financial Results for the Three and Nine Months Ended September 30, 2004 DALLAS, Oct. 27 /PRNewswire-FirstCall/ -- Remington Oil and Gas Corporation (NYSE:REM) announced financial results for the three and nine months ended September 30, 2004. Three Months Nine Months Ended Ended September 30, September 30, 2004 2003 2004 2003 Total revenues $ 60,096 $ 46,965 $ 164,641 $ 135,306 Net income $ 15,639 $ 10,068 $ 41,626 $ 34,020 Basic net income per share $ 0.57 $ 0.38 $ 1.53 $ 1.28 Diluted income per share $ 0.55 $ 0.36 $ 1.47 $ 1.22 Production (BCFE) 10.2 9.5 27.7 25.1 Oil and natural gas production for the three months ended September 30, 2004, increased 7.3% to 10.2 Bcfe compared to 9.5 Bcfe for the same three months of 2003. This represents the highest production volume ever achieved by the Company in spite of significant downtime due to Hurricane Ivan. For the nine months, oil and natural gas production increased by 10.4% to 27.7 Bcfe in 2004 compared to 25.1 Bcfe in 2003. Net income for the three months ended September 30, 2004, increased by $5.6 million to $15.6 million, or $0.55 diluted income per share, and net income for the nine months ended September 30, 2004, increased by $7.6 million to $41.6 million, or $1.47 diluted income per share. Cash flow from operations increased by $39.5 million to $128.5 million, or 44.4%, for the nine months ended September 30, 2004, compared to the same period in 2003. Production increases and higher commodity prices combined to raise total revenues 28% to $60.1 million for the third quarter and 21.7% to $164.6 million for the first nine months of 2004. Natural gas revenues climbed 23.6% to $42.7 million and oil revenues grew 39.8% to $17.2 million for the third quarter, respectively. For the nine month period, natural gas revenues increased 21.9% to $117.6 million and oil revenues grew 21.2% to $46.7 million. Impairment expense during the third quarter of 2004 equaled $3.4 million due largely to a $3.1 million charge associated with High Island Block 441. For the first nine months of 2004, impairment expense amounted to $8.4 million. Results versus Guidance The Company estimates total production for 2004 to be approximately 40 Bcfe, or 15% above the 34.8 Bcfe produced in 2003. Achieving our targeted production goal for the year is dependent on both weather conditions and timely availability of offshore installation equipment and personnel for several new projects scheduled for installation during the fourth quarter 2004. Third quarter DD&A was $18.5 million or $1.81 per Mcfe produced. For the first nine months of 2004 DD&A was $51.3 million or $1.85 per Mcfe produced. DD&A was forecast to be between $1.80 and $1.95 per Mcfe produced for the year. Lease operating expenses (LOE) were $6.8 million or $0.66 per Mcfe produced for the third quarter of 2004. For the first nine months LOE was $18.9 million or $0.68 per Mcfe produced. Annual guidance is for LOE to be between $0.60 and $0.70 per Mcfe produced. G&A expense was $1.3 million or $0.12 per Mcfe produced for the third quarter. For the first nine months, G&A was $4.8 million or $0.17 per Mcfe produced. Guidance was for annual G&A expense to be between $0.21 and $0.28 per Mcfe produced. Included in the G&A is $939,000 of stock-based compensation for the nine month period and $207,000 for the third quarter. Interest and financing costs were $305,000 for the quarter and $783,000 for the first nine months or $0.03 per Mcfe produced. Guidance was for interest costs to be between $0.03 and $0.05 per Mcfe produced for the year. Exploration costs, reflecting geological and geophysical costs and dry hole costs, were $5.5 million in the third quarter. Geological and geophysical costs were approximately $3.0 million, reflecting $1.0 million for this quarter's license fees for deeper water 3-D seismic data and $1.9 million in costs associated with prior seismic agreements. Dry hole costs were $2.5 million for the third quarter and $9.2 million for the first nine months. Annualized guidance for dry hole expense is between $20 million and $24 million. 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, production volumes, results of exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of prospects or wells are forward-looking statements. Prospect size and reserve levels are often referred to as "potential" or "un-risked" reserves and are based on the Company's internal estimates from the volumetric calculations or analogous production. Other forward-looking statements are based on assumptions concerning commodity prices, drilling results, recovery factors for wells, production rates, and operating, 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, mechanical, political, environmental, and geologic risks. There is no assurance that these goals, projections, costs, expenses, reserve levels, and production volumes can or will be met. Further information is available in the Company's filings with the Securities and Exchange Commission, which are herein incorporated by this reference. Information in this document should be reviewed in combination with the Company's filings with the Securities and Exchange Commission and information available on the Company's website at http://www.remoil.net/ . Remington Oil and Gas Corporation Condensed Consolidated Balance Sheets (In thousands, except share data) September 30, December 31, Assets 2004 2003 Current assets (Unaudited) Cash and cash equivalents $ 36,812 $ 31,408 Accounts receivable 52,039 43,004 Prepaid expenses and other current assets 5,364 2,846 Total current assets 94,215 77,258 Properties Oil and natural gas properties (successful-efforts method) 713,604 609,599 Other properties 3,123 3,450 Accumulated depreciation, depletion and amortization (386,178) (333,011) Total properties 330,549 280,038 Other assets 1,402 2,089 Total assets $426,166 $359,385 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued liabilities $ 64,617 $ 58,266 Short-term notes payable 45 45 Total current liabilities 64,662 58,311 Long-term liabilities Notes payable 5,000 18,000 Asset retirement obligation 16,585 12,446 Deferred income tax liability 48,138 28,751 Total long-term liabilities 69,723 59,197 Total liabilities 134,385 117,508 Commitments and contingencies (Note 6) 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, 27,743,639 shares issued and 27,709,280 shares outstanding in 2004, 26,946,768 shares issued and 26,912,409 shares outstanding in 2003 277 269 Additional paid-in capital 129,954 120,925 Restricted common stock 1,573 3,156 Unearned compensation (844) (1,668) Retained earnings 160,821 119,195 Total stockholders' equity 291,781 241,877 Total liabilities and stockholders' equity $426,166 $359,385 Remington Oil and Gas Corporation Condensed Consolidated Statements of Income (Unaudited) (In thousands, except per-share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 Revenues Gas sales $ 42,724 $ 34,580 $117,550 $ 96,428 Oil sales 17,180 12,287 46,674 38,524 Other income 192 98 417 354 Total revenues 60,096 46,965 164,641 135,306 Costs and expenses Operating 6,784 5,322 18,860 14,991 Exploration 5,562 7,654 15,968 20,671 Depreciation, depletion and amortization 18,504 15,050 51,267 38,599 Impairment 3,422 1,307 8,408 1,754 General and administrative 1,271 1,710 4,818 5,634 Interest and financing 305 433 783 1,318 Total costs and expenses 35,848 31,476 100,104 82,967 Income before taxes 24,248 15,489 64,537 52,339 Income tax expense 8,609 5,421 22,911 18,319 Net income $ 15,639 $ 10,068 $ 41,626 $ 34,020 Basic income per share $ 0.57 $ 0.38 $ 1.53 $ 1.28 Diluted income per share $ 0.55 $ 0.36 $ 1.47 $ 1.22 Weighted average shares outstanding (Basic) 27,596 26,771 27,286 26,548 Weighted average shares outstanding (Diluted) 28,503 28,046 28,294 27,953 Production Gas (Mmcf) 7,728 6,918 20,189 17,278 Oil (Mbbls) 416 436 1,258 1,308 Mmcfe (1 barrel of oil is equivalent to 6 Mcf of gas) 10,224 9,534 27,737 25,126 Average prices Gas ($ per Mcf) $ 5.53 $ 5.00 $ 5.82 $ 5.58 Oil ($ per Bbls) $ 41.30 $ 28.18 $ 37.10 $ 29.45 $ per Mcfe $ 5.86 $ 4.92 $ 5.92 $ 5.37 Remington Oil and Gas Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Nine Months Ended September 30, 2004 2003 Cash flow provided by operations Net income $ 41,626 $ 34,020 Adjustments to reconcile net income Depreciation, depletion and amortization 51,267 38,599 Deferred income taxes 22,601 18,244 Amortization of deferred charges 137 161 Dry hole costs 9,229 19,689 Impairment costs 8,408 1,754 Cash paid for dismantlement costs (1,064) (1,284) Stock based compensation 939 1,171 Changes in working capital (Increase) in accounts receivable (9,028) (11,494) (Increase) in prepaid expenses and other current assets (1,975) (139) Increase (decrease) in accounts payable and accrued liabilities 6,351 (11,739) Net cash flow provided by operations 128,491 88,982 Cash from investing activities Payments for capital expenditures (114,212) (89,147) Net cash (used in) investing activities (114,212) (89,147) Cash from financing activities Loan origination costs --- (293) Payments on notes payable and other long-term payables (13,000) (1,239) Common stock issued 4,770 2,150 Treasury stock acquired and retired (645) (809) Net cash (used in) financing activities (8,875) (191) Net increase (decrease) in cash and cash equivalents 5,404 (356) Cash and cash equivalents at beginning of period 31,408 14,929 Cash and cash equivalents at end of period $ 36,812 $ 14,573 DATASOURCE: Remington Oil and Gas Corporation CONTACT: Steven J. Craig, Sr. Vice President of Remington Oil and Gas Corporation, +1-214-210-2675 Web site: http://www.remoil.net/

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