GeoResources, Inc. Reports 1st Quarter 2004 Earnings and Provides an Operations Update
20 Maio 2004 - 6:20PM
PR Newswire (US)
GeoResources, Inc. Reports 1st Quarter 2004 Earnings and Provides
an Operations Update WILLISTON, N.D., May 20 /PRNewswire-FirstCall/
-- GeoResources, Inc. today reported first quarter 2004 net income
of $84,000 or $0.02 per share on revenue of $1,152,000 compared to
a 2003 first quarter net income of $162,000 or $0.04 per share on
revenue of $1,135,000. Net income declined primarily due to
increased maintenance expense in Western Star Drilling and
increased income tax expense. Earnings before interest, taxes,
depreciation, depletion and amortization (EBITDA) for the year was
$265,000, a 21% decrease from the prior year. (1) GeoResources sold
29,000 BOE or 322 BOE per day during the first quarter 2004
compared to 32,000 BOE or 359 BOE per day in the first quarter
2003. The reduced production sold was attributable to normal
production declines that were not offset by new production and
approximately 1,000 extra barrels that remained in tanks at the end
of the quarter due to delayed pickups from some of our lease tank
batteries because of later winter weather conditions. Very early in
the second quarter the Company drilled the Grann et al 28-33 well
in the Landa Field, Bottineau County, ND. The well provided
essential technical information to make an application for a new
secondary recovery unit in the Landa Field. On May 18, 2004 the
Company petitioned the North Dakota Industrial Commission for the
unitized management, operation and development of a portion of the
field. Our proposed name of the new unit is the Northwest Landa
Madison Unit (NWLMU) and GeoResources would be the Unit Operator
with an approximate 90% working interest. As proposed, the NWLMU
would have a total of nine wells, one of which would be converted
to water injection. We believe the unitization and water injection
program would increase both reserves and production from the field
at minimal incremental cost. During the first quarter 2004 sales
from our leonardite operations increased 21% over the same period
in 2003. Although our leonardite operations barely missed a
positive gross margin during the quarter, we believe sales will
continue to increase with sustained higher oil prices resulting in
a positive gross margin in the near future. Our Western Star
Drilling subsidiary did not drill any wells for others or us during
the first quarter a seasonally slow period due to weather
conditions in the region. The rig was moved and maintenance was
completed during the quarter allowing the rig to commence drilling
our Landa Field well on April 1. After completion of our Landa
Field well the rig was contracted to another operator and is
currently drilling for that operator. Company President J. P.
Vickers said, "Our first quarter 2004 earnings were not quite the
level we had hoped, but operationally we believe our fundamental
measures are strong and we see 2004 as being both a very busy and
profitable year." (1) EBITDA is defined as earnings before
interest, income taxes, depreciation and amortization, EBITDA
should not be considered as an alternative to net income (as an
indicator of operating performance) or as an alternative to cash
flow (as a measure of liquidity or ability to service debt
obligations) and is not in accordance with, nor superior to,
generally accepted accounting principles, but provides additional
information for evaluating us. Our measure of EBITDA may not be the
same as similar measures described by other companies. EBITDA is
calculated as follows: Quarter Ended Quarter Ended March 31, 2004
March 31, 2003 Net Income (loss) $84,000 $185,000 (Net income
before cumulative effect of changes in accounting principles.) Add
back: Interest expense 18,000 22,000 Income tax 6,000 (33,000)
Depreciation and amortization 157,000 160,000 EBITDA $265,000
$334,000 Information herein contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, which can be identified by words such as "may," "will,"
"expect," "anticipate," "estimate" or "continue," or comparable
words. In addition, all statements other than statements of
historical facts that address activities that the Company expects
or anticipates will or may occur in the future are forward-looking
statements. Readers are encouraged to read the SEC reports of the
Company, particularly its Form 10-KSB for the Fiscal Year Ended
December 31, 2003, for meaningful cautionary language disclosure.
GEORESOURCES, INC., AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) Three Months Ended March 31, 2004 2003
OPERATING REVENUES: Oil and gas sales $896,325 $920,574 Leonardite
sales 255,236 214,333 Drilling revenue -- -- 1,151,561 1,134,907
OPERATING COSTS AND EXPENSES: Oil and gas production 460,484
445,112 Cost of leonardite sold 258,134 227,089 Drilling costs
48,155 -- Depreciation and depletion 156,858 160,189 Selling,
general and administrative 124,988 133,872 1,048,619 966,262
Operating income 102,942 168,645 OTHER INCOME (EXPENSE): Interest
expense (18,395) (22,130) Interest income 306 177 Other income, net
4,950 5,400 (13,139) (16,553) Income before income taxes 89,803
152,092 Income tax (expense) benefit (6,000) 33,000 Income before
cumulative effect of change in accounting principle 83,803 185,092
Cumulative effect on prior years accounting change, net of tax --
(23,000) Net income $83,803 $162,092 EARNINGS PER SHARE: Income
before cumulative effect of accounting change $.02 $.05 Cumulative
effect of accounting change -- (.01) Net income, basic and diluted
$.02 $.04 PRO FORMA AMOUNTS, assuming retroactive application of
new accounting method: Net income $83,803 $185,092 Net income per
share, basic and diluted $.02 $.05 DATASOURCE: GeoResources, Inc.
CONTACT: Cathy Kruse of GeoResources, Inc., +1-701-572-2020, or Web
site: http://www.georesources.net/
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