HOUSTON, Aug. 4 /PRNewswire-FirstCall/ -- Bois d'Arc Energy, Inc. ('Bois
d'Arc' or the 'Company') (NYSE: BDE) today reported financial and operating
results for the quarter and six months ended June 30, 2008.
Second Quarter and Six Months 2008 Financial Results
Bois d'Arc reported net income of $39.8 million, or 59? per diluted share,
for the three months ended June 30, 2008 as compared to 2007's second quarter
net income of $17.4 million, or 26? per diluted share. The increase in
profits in the quarter was driven primarily by strong oil and gas prices.
Bois d'Arc's average realized oil price in 2008's second quarter of $124.62
per barrel increased 88% over 2007's second quarter average oil price of
$66.28 per barrel. The Company's average realized natural gas price of $11.52
per Mcf in 2008's second quarter was 49% higher than the $7.74 per Mcf
realized in 2007's second quarter. Production during the second quarter of
2008 of 10.5 billion cubic feet equivalent of natural gas ('Bcfe') was
comparable to 10.7 Bcfe produced in the second quarter of 2007. The strong
oil and gas prices increased Bois d'Arc's second quarter oil and gas sales by
63% to $148.0 million from $91.0 million in 2007's second quarter. The higher
revenues also drove cash flow higher in the quarter. Operating cash flow
(before changes in working capital accounts) of $109.0 million in the second
quarter was 49% higher than 2007's second quarter cash flow of $72.9 million.
EBITDAX, or earnings before interest, taxes, depreciation, depletion,
amortization, exploration expense and other noncash expenses increased 60% to
$124.6 million over 2007's second quarter EBITDAX of $77.9 million.
For the six months ended June 30, 2008, Bois d'Arc reported net income of
$77.9 million or $1.15 per diluted share as compared to net income of
$29.3 million ($0.44 per diluted share) for the six months ended June 30,
2007. Oil and gas sales for the first six months of 2008 were $261.3 million
as compared to $167.2 million for the six months ended June 30, 2007.
Production in the first six months of 2008 totaled 20.9 Bcfe, as compared to
the 20.6 Bcfe produced during the same period in 2007. Prices realized by the
Company for its production during the six months ended June 30, 2008 averaged
$10.15 per Mcf of natural gas and $113.72 per barrel of oil as compared to
$7.43 per Mcf of natural gas and $62.55 per barrel of oil in the same period
in 2007. Operating cash flow (before changes in working capital accounts) for
the six months ended June 30, 2008, was $187.7 million as compared to
$128.0 million in the same period in 2007. EBITDAX totaled $220.9 million in
the first six months of 2008 as compared to $139.5 million in the first six
months of 2007.
The financial results for the three months and six months end June 30,
2008 include $1.9 million of costs related to the pending merger with Stone
Energy Corporation ('Stone'), which are included in general and administrative
expenses. Under the terms of the merger agreement, the Bois d'Arc Energy
shareholders will receive $13.65 in cash and 0.165 shares of Stone common
stock for each share of Bois d'Arc Energy. Completion of the transaction is
subject to approval by the Bois d'Arc Energy and Stone stockholders. Bois
d'Arc has scheduled a special meeting of its stockholders on August 27, 2008,
at 11:00 a.m. Houston time, to consider and vote on the proposal to approve
the proposed merger with Stone.
2008 Year to Date Drilling Results
Bois d'Arc has drilled six (5.6 net) successful wells out of a total of
nine (8.3 net) drilled so far in 2008. Three of the successful wells were
reported on earlier and include the OCS-G 24922 #1 at Ship Shoal block 97, the
OCS-G 24926 #1 at Ship Shoal block 120 which tested the 'Perch' prospect, and
the OCS-G 24977 #1 at South Pelto block 21 which tested the 'Chinook'
prospect. The Ship Shoal block 97 well began producing in February at a rate
of 10.3 MMcfe per day. The 'Perch' well was put on production in February at
a rate of 0.4 MMcfe per day out of its lowest zone. The 'Chinook' well is
being completed and expected to begin producing in late August. Bois d'Arc's
OCS-G27155 #1 at South Timbalier block 81 which was drilled last year to test
the ultra deep 'Butch Cassidy' prospect was recently placed on production at a
rate of 13.9 MMcfe per day with flowing tubing pressure of 11,400 pounds per
square inch.
The other successful wells drilled in 2008 include the SL 4708 #1 and the
SL 4708 #2 wells at Main Pass block 21 which are currently in the process of
being tied into existing field production facilities. First production from
the Main Pass wells is expected in late August. Bois d'Arc also drilled the
OCS-G 00063 #W3 at Ship Shoal block 112 to test its 'Stump knocker' prospect.
This exploratory well was drilled to a depth of 13,420 feet and encountered
185 feet of pay in multiple objectives. First production for the well is
expected in late November. Bois d'Arc has a 100% working interest in this
well.
The unsuccessful wells in 2008 include a 16,500 foot exploratory well
drilled to test the 'Kelsie' prospect at Ship Shoal block 95. This well
encountered significant drilling problems and the initial well and a sidetrack
attempt were ultimately abandoned before the target sand was reached. The
other two unsuccessful wells include a 16,655 foot exploratory well drilled to
test a prospect at Ship Shoal block 116 and an unsuccessful sidetrack well at
Ship Shoal block 98.
This press release may contain 'forward-looking statements' as that term
is defined in the Private Securities Litigation Reform Act of 1995. Such
statements are based on management's current expectations and are subject to a
number of factors and uncertainties which could cause actual results to differ
materially from those described herein. Although the Company believes the
expectations in such statements to be reasonable, there can be no assurance
that such expectations will prove to be correct.
Bois d'Arc Energy is a growing independent exploration company engaged in
the discovery and production of oil and natural gas in the Gulf of Mexico.
The Company's stock is traded on the New York Stock Exchange under the symbol
'BDE'.
BOIS d'ARC ENERGY, INC.
CONSOLIDATED OPERATING RESULTS
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Oil and gas sales $ 147,990 $ 91,046 $ 261,256 $ 167,228
Operating expenses:
Oil and gas operating 20,241 12,556 35,679 25,584
Exploration 33,885 17,988 40,302 28,723
Depreciation, depletion
and amortization 27,537 28,779 55,905 57,294
General and
administrative, net 4,667 2,574 7,842 6,026
Total operating
expenses 86,330 61,897 139,728 117,627
Income from operations 61,660 29,149 121,528 49,601
Other income (expenses):
Interest income 75 138 158 243
Other income 115 182 250 274
Interest expense (935) (2,431) (2,298) (4,595)
Total other expenses (745) (2,111) (1,890) (4,078)
Income before income
taxes 60,915 27,038 119,638 45,523
Provision for income
taxes (21,147) (9,607) (41,721) (16,219)
Net income $ 39,768 $ 17,431 $ 77,917 $ 29,304
Net income per share:
Basic $ 0.60 $ 0.27 $ 1.18 $ 0.45
Diluted $ 0.59 $ 0.26 $ 1.15 $ 0.44
Weighted average common
and common stock
equivalent shares
outstanding:
Basic 65,825 65,151 65,805 65,139
Diluted 67,762 67,091 67,675 66,955
BOIS d'ARC ENERGY, INC.
CONSOLIDATED OPERATING RESULTS
(In thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
Cash flow from operations:
Net cash provided by
operating activities $ 112,676 $ 78,978 $ 185,488 $ 110,435
Excess tax benefit from
stock-based compensation 420 49 1,188 49
Decrease in accounts
receivable 8,152 4,155 14,608 4,566
Increase (decrease) in
prepaid expenses (2,995) 467 (1,761) 2,621
Decrease (increase) in
accounts payable and
accrued expenses (9,303) (10,719) (11,835) 10,305
Cash flow from operations $ 108,950 $ 72,930 $ 187,688 $ 127,976
EBITDAX:
Net income $ 39,768 $ 17,431 $ 77,917 $ 29,304
Interest expense 935 2,431 2,298 4,595
Income tax expense 21,147 9,607 41,721 16,219
Depreciation, depletion and
amortization 27,537 28,779 55,905 57,294
Stock-based compensation 1,376 1,712 2,750 3,370
Exploration expense 33,885 17,988 40,302 28,723
EBITDAX $ 124,648 $ 77,948 $ 220,893 $ 139,505
As of June 30,
2008 2007
Balance Sheet Data:
Cash and cash equivalents $ 25,374 $ 21,715
Other current assets 57,720 59,008
Property and equipment, net 922,672 869,468
Other 574 662
Total assets $ 1,006,340 $ 950,853
Current liabilities $ 78,971 $ 61,847
Long-term debt - 125,000
Deferred income taxes 198,034 164,233
Reserve for future abandonment costs 46,112 50,131
Stockholders' equity 683,223 549,642
Total liabilities and stockholders'
equity $ 1,006,340 $ 950,853
BOIS d'ARC ENERGY, INC.
CONSOLIDATED OPERATING RESULTS
(In thousands, except per unit amounts)
Three Months Ended
June 30,
2008 2007
Oil production (thousand barrels) 497 417
Gas production (million cubic feet - Mmcf) 7,467 8,194
Total production (Mmcfe) 10,451 10,696
Oil sales $ 61,974 $ 27,638
Gas sales 86,016 63,408
Total oil and gas sales $ 147,990 $ 91,046
Average oil price (per barrel) $ 124.62 $ 66.28
Average gas price (per thousand cubic
feet - Mcf) $ 11.52 $ 7.74
Average price (per Mcf equivalent) $ 14.16 $ 8.51
Lifting cost(1) $ 20,241 $ 12,556
Lifting cost (per Mcf equivalent) $ 1.94 $ 1.17
Oil and gas capital expenditures:
Leasehold costs $ 7,155 $ (413)
Exploration drilling 30,071 35,342
Development drilling 7,903 14,069
Other development costs 17,879 10,413
Total $ 63,008 $ 59,411
(1) Includes production taxes of $866 and $594 for the three months
ended June 30, 2008 and 2007, respectively.
Six Months Ended
June 30,
2008 2007
Oil production (thousand barrels) 924 785
Gas production (million cubic feet - Mmcf) 15,394 15,895
Total production (Mmcfe) 20,937 20,605
Oil sales $ 105,065 $ 49,106
Gas sales 156,191 118,122
Total oil and gas sales $ 261,256 $ 167,228
Average oil price (per barrel) $ 113.72 $ 62.55
Average gas price (per thousand cubic
feet - Mcf) $ 10.15 $ 7.43
Average price (per Mcf equivalent) $ 12.48 $ 8.12
Lifting cost(2) $ 35,679 $ 25,584
Lifting cost (per Mcf equivalent) $ 1.70 $ 1.24
Oil and gas capital expenditures:
Leasehold costs $ 15,773 $ 350
Exploration drilling 57,170 65,379
Development drilling 17,109 22,360
Other development costs 31,271 34,075
Total $ 121,323 $ 122,164
(2) Includes production taxes of $1,690 and $1,050 for the six months
ended June 30, 2008 and 2007, respectively.
SOURCE Bois d'Arc Energy, Inc.
