Exhibit 99.1
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600 Travis Street Suite 5200 Houston, Texas 77002 Contact: Roland O. Burns Chief Financial Officer (972) 668-8811 Web site: www.boisdarcenergy.com |
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NEWS RELEASE
For Immediate Release
BOIS d'ARC ENERGY, INC. REPORTS
FOURTH QUARTER AND ANNUAL 2007
FINANCIAL AND OPERATING RESULTS
HOUSTON, TEXAS, February 11, 2008– Bois d'Arc Energy, Inc. ("Bois d'Arc" or the "Company") (NYSE: BDE) today reported financial and operating results for the quarter and year ended December 31, 2007.
Fourth Quarter and Annual 2007 Financial Results
Bois d'Arc reported net income of $28.1 million, or 42¢ per diluted share, for the three months ended December 31, 2007 as compared to 2006's fourth quarter net income of $11.9 million, or 18¢ per diluted share. The strong growth in profits in the quarter was driven primarily by production growth and improved oil and gas prices. Bois d'Arc's production in the fourth quarter of 2007 increased to 10.7 billion cubic feet equivalent of natural gas ("Bcfe"), 20% higher than production of 8.9 Bcfe in the fourth quarter of 2006. Bois d'Arc's average realized oil price in 2007's fourth quarter of $91.51 per barrel increased 58% over 2006's fourth quarter average oil price of $57.77 per barrel. The Company's average realized natural gas price of $7.48 per Mcf in 2007's fourth quarter was 10% higher than the $6.78 per Mcf realized in 2006's fourth quarter. The growth in production combined with stronger oil and gas prices resulted in a 51% increase in Bois d'Arc's fourth quarter oil and gas sales to $100.2 million from $66.3 million in 2006's fourth quarter. The higher revenues also drove cash flow higher in the quarter. Operating cash flow (before changes in working capital accounts) of $70.7 million in the fourth quarter was 57% higher than 2006's fourth quarter cash flow of $45.0 million. EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses increased 63% to $81.8 million over 2006's fourth quarter EBITDAX of $50.1 million.
For the year ended December 31, 2007, Bois d'Arc reported net income of $78.7 million or $1.17 per diluted share as compared to net income of $55.0 million (84¢ per diluted share) for the year ended December 31, 2006. Oil and gas sales for 2007 increased 40% to $355.5 million as compared to $254.7 million for 2006. Production in 2007 of 42.2 Bcfe increased 34% over 2006 production of 31.5 Bcfe. Prices realized by the Company during 2007 averaged $7.19 per Mcf of natural gas and $74.15 per barrel of oil as compared to $7.13 per Mcf of natural gas and $64.66 per barrel of oil in 2006. Operating cash flow (before changes in working capital accounts) in 2007 was $261.8 million as compared to $181.2 million in 2006. EBITDAX totaled $291.2 million in 2007 as compared to $197.2 million in 2006.
2007 Drilling Results
Bois d'Arc made capital expenditures of $206.9 million during 2007 for its exploration and development activities and spent an additional $7.0 million on geological and geophysical costs primarily for 3-D seismic data acquisition. Bois d'Arc successfully replaced 228% of 2007's production primarily through its 2007 drilling program and improved recovery resulting from the successful M-8 sand water flood project at the Ship Shoal 113 unit. In 2007, Bois d'Arc drilled seven (6.6 net) successful wells out of a total of 15 (12.0 net) wells drilled with eight (5.4 net) dry holes. The largest discoveries made in 2007 included a well drilled at Ship Shoal block 93, which proved up the "Walleye" prospect, a second well drilled at South Timbalier block 75 which extended its "Doc Holliday" discovery made in 2005, and the ultra deep well drilled at South Timbalier block 81 which proved up the "Butch Cassidy" prospect. Bois d'Arc also drilled three successful wells as part of its M-8 sand water flood project in the Ship Shoal 113 unit. During the fourth quarter of 2007, Bois d'Arc drilled a successful development well at Ship Shoal block 119 with the OCS-G 69 #25 well which was drilled to a depth of 10,108 feet and encountered 89 net feet of pay sands in three commercial reservoirs.
Bois d'Arc's 2008 drilling program is off to a strong start with two successful development wells. The OCS-G 24922 #1 at Ship Shoal block 97 was drilled to a depth of 12,983 feet and encountered 71 net feet of pay in two high quality sands. First production for the well is expected in February. Bois d'Arc has a 78% working interest in this well. The second successful development well was drilled to test the "Perch" prospect at Ship Shoal block 120. The OCS-G 24926 #1 was drilled to a depth of 5,000 feet to develop multiple previously proven undeveloped shallow gas reservoirs within the Ship Shoal block 113 field area. The well encountered 109 feet of pay in eight objective sands. First production for the well is expected in the second quarter. Bois d'Arc has a 100% working interest in this well. Bois d'Arc is currently drilling an 18,500 foot exploratory well to test its "Chinook" prospect at South Pelto block 21.
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 December 31, | | | Year Ended December 31, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
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| Oil and gas sales | | $ | 100,245 | | | $ | 66,274 | | | $ | 355,460 | | | $ | 254,710 | |
| Operating expenses: | | | | | | | | | | | | | | | | |
| Oil and gas operating | | | 16,282 | | | | 15,601 | | | | 58,841 | | | | 53,400 | |
| Exploration | | | 2,982 | | | | 2,390 | | | | 36,040 | | | | 18,708 | |
| Depreciation, depletion and amortization | | | 29,712 | | | | 24,971 | | | | 115,285 | | | | 77,591 | |
| Impairment | | | — | | | | 200 | | | | 344 | | | | 1,632 | |
| General and administrative, net | | | 5,830 | | | | 2,462 | | | | 14,869 | | | | 11,374 | |
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| Total operating expenses | | | 54,806 | | | | 45,624 | | | | 225,379 | | | | 162,705 | |
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| Income from operations | | | 45,439 | | | | 20,650 | | | | 130,081 | | | | 92,005 | |
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| Other income (expenses): | | | | | | | | | | | | | | | | |
| Interest income | | | 115 | | | | 89 | | | | 512 | | | | 330 | |
| Other income | | | 152 | | | | 128 | | | | 541 | | | | 597 | |
| Interest expense | | | (1,985 | ) | | | (2,168 | ) | | | (9,033 | ) | | | (6,696 | ) |
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| Total other expenses | | | (1,718 | ) | | | (1,951 | ) | | | (7,980 | ) | | | (5,769 | ) |
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| Income before income taxes | | | 43,721 | | | | 18,699 | | | | 122,101 | | | | 86,236 | |
| Provision for income taxes | | | (15,584 | ) | | | (6,823 | ) | | | (43,431 | ) | | | (31,212 | ) |
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| Net income | | $ | 28,137 | | | $ | 11,876 | | | $ | 78,670 | | | $ | 55,024 | |
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| Net income per share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.43 | | | $ | 0.18 | | | $ | 1.20 | | | $ | 0.87 | |
| Diluted | | $ | 0.42 | | | $ | 0.18 | | | $ | 1.17 | | | $ | 0.84 | |
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Weighted average common and common stock
equivalent shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 65,676 | | | | 65,128 | | | | 65,392 | | | | 63,391 | |
| Diluted | | | 67,574 | | | | 66,831 | | | | 67,224 | | | | 65,278 | |
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BOIS d'ARC ENERGY, INC.
CONSOLIDATED OPERATING RESULTS
(In thousands)
| | | Three Months Ended December 31, | | | Year Ended December 31, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
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| Cash flow from operations: | | | | | | | | | | | | | | | | |
| Net cash provided by operating activities | | $ | 68,670 | | | $ | 40,438 | | | $ | 244,673 | | | $ | 178,409 | |
Excess tax benefit from stock-based compensation | | | 71 | | | | | | | | 94 | | | | 29 | |
| Increase in accounts receivable | | | 8,012 | | | | 10,604 | | | | 3,498 | | | | 4,628 | |
| Increase (decrease) in prepaid expenses | | | (2,513 | ) | | | (1,875 | ) | | | (2,682 | ) | | | 1,300 | |
Decrease (increase) in accounts payable and accrued
expenses | | | (3,512 | ) | | | (4,187 | ) | | | 16,204 | | | | (3,172 | ) |
Cash flow from operations | | $ | 70,728 | | | $ | 44,980 | | | $ | 261,787 | | | $ | 181,194 | |
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| EBITDAX: | | | | | | | | | | | | | | | | |
Net income | | $ | 28,137 | | | $ | 11,876 | | | $ | 78,670 | | | $ | 55,024 | |
Interest expense | | | 1,985 | | | | 2,168 | | | | 9,033 | | | | 6,696 | |
Income tax expense | | | 15,584 | | | | 6,823 | | | | 43,431 | | | | 31,212 | |
| Depreciation, depletion and amortization | | | 29,712 | | | | 24,971 | | | | 115,285 | | | | 77,591 | |
Impairment | | | — | | | | 200 | | | | 344 | | | | 1,632 | |
Stock-based compensation | | | 3,368 | | | | 1,665 | | | | 8,373 | | | | 6,377 | |
Exploration expense | | | 2,982 | | | | 2,390 | | | | 36,040 | | | | 18,708 | |
EBITDAX | | $ | 81,768 | | | $ | 50,093 | | | $ | 291,176 | | | $ | 197,240 | |
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| | | As of December 31, | |
| | | 2007 | | | 2006 | |
| Balance Sheet Data: | | | | | | | | |
| Cash and cash equivalents | | $ | 18,841 | | | $ | 9,487 | |
| Other current assets | | | 47,461 | | | | 47,307 | |
| Property and equipment, net | | | 887,270 | | | | 827,795 | |
| Other | | | 3,064 | | | | 912 | |
| Total assets | | $ | 956,636 | | | $ | 885,501 | |
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| Current liabilities | | $ | 47,377 | | | $ | 68,868 | |
| Long-term debt | | | 80,000 | | | | 100,000 | |
| Deferred income taxes | | | 181,667 | | | | 151,959 | |
| Reserve for future abandonment costs | | | 45,094 | | | | 48,064 | |
| Stockholders' equity | | | 602,498 | | | | 516,610 | |
| Total liabilities and stockholders' equity | | $ | 956,636 | | | $ | 885,501 | |
BOIS d'ARC ENERGY, INC.
CONSOLIDATED OPERATING RESULTS
(In thousands, except per unit amounts)
| | | Three Months Ended December 31, | |
| | | 2007 | | | 2006 | |
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| Oil production (thousand barrels) | | | 438 | | | | 350 | |
| Gas production (million cubic feet – Mmcf) | | | 8,050 | | | | 6,795 | |
| Total production (Mmcfe) | | | 10,676 | | | | 8,894 | |
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| Oil sales | | $ | 40,051 | | | $ | 20,206 | |
| Gas sales | | | 60,194 | | | | 46,068 | |
| Total oil and gas sales | | $ | 100,245 | | | $ | 66,274 | |
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| Average oil price (per barrel) | | $ | 91.51 | | | $ | 57.77 | |
| Average gas price (per thousand cubic feet – Mcf) | | $ | 7.48 | | | $ | 6.78 | |
| Average price (per Mcf equivalent) | | $ | 9.39 | | | $ | 7.45 | |
Lifting cost(1) | | $ | 16,282 | | | $ | 15,601 | |
| Lifting cost (per Mcf equivalent) | | $ | 1.53 | | | $ | 1.75 | |
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| Oil and gas capital expenditures: | | | | | | | | |
| Acquisition of producing properties | | $ | — | | | $ | 978 | |
| Leasehold costs | | | 7,186 | | | | (137 | ) |
| Exploration drilling | | | 6,957 | | | | 24,780 | |
| Development drilling | | | 5,212 | | | | 765 | |
| Other development costs | | | 20,439 | | | | 26,426 | |
| Total | | $ | 39,794 | | | $ | 52,812 | |
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(1) Includes production taxes of $775and $353 for the three months ended December 31,2007 and 2006, respectively. | |
| | | Year Ended December 31, | |
| | | 2007 | | | 2006 | |
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| Oil production (thousand barrels) | | | 1,671 | | | | 1,383 | |
| Gas production (million cubic feet – Mmcf) | | | 32,186 | | | | 23,183 | |
| Total production (Mmcfe) | | | 42,211 | | | | 31,481 | |
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| Oil sales | | $ | 123,895 | | | $ | 89,421 | |
| Gas sales | | | 231,565 | | | | 165,289 | |
| Total oil and gas sales | | $ | 355,460 | | | $ | 254,710 | |
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| Average oil price (per barrel) | | $ | 74.15 | | | $ | 64.66 | |
| Average gas price (per thousand cubic feet – Mcf) | | $ | 7.19 | | | $ | 7.13 | |
| Average price (per Mcf equivalent) | | $ | 8.42 | | | $ | 8.09 | |
Lifting cost(2) | | $ | 58,841 | | | $ | 53,400 | |
| Lifting cost (per Mcf equivalent) | | $ | 1.39 | | | $ | 1.70 | |
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| Oil and gas capital expenditures: | | | | | | | | |
| Acquisition of producing properties | | $ | — | | | $ | 19,156 | |
| Leasehold costs | | | 8,913 | | | | 1,971 | |
| Exploration drilling | | | 89,232 | | | | 128,983 | |
| Development drilling | | | 46,480 | | | | 23,360 | |
| Other development costs | | | 62,238 | | | | 71,140 | |
| Total | | $ | 206,863 | | | $ | 244,610 | |
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(2) Includes production taxes of $2,495and $1,577 for the year ended December 31,2007 and 2006, respectively. | |
