Exhibit 99.2 | |||||||||||
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TXCO's Presentation Outline for | |||||||||||
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Slide 1 - Multi-Play, Multi-Pay in the Maverick Basin | |||||||||||
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Slide 2 - Corporate Information | |||||||||||
- Headquarters: The Exploration Company; 500 North Loop 1604 East, Suite 250; | |||||||||||
- Contact: Bob Thomae, Vice President-Capital Markets, | |||||||||||
- TXCO - NASDAQ Listed | |||||||||||
- Forward-Looking Information - Information presented herein which is not historical, including | |||||||||||
statements regarding TXCO's or management's intentions, hopes, beliefs, expectations, representations, projections, estimations, plans or predictions of the future, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include those relating to estimated financial results, or expected prices, production volumes, reserve levels and number of drilling locations. It is important to note that actual results may differ materially from the results predicted in any such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the costs of exploring and developing new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns effecting the drilling of oil and natural gas wells, as well as general market conditions, competition and pricing. More information about p otential factors that could affect the company's operating and financial results is included in TXCO's annual report on Form 10-K for the year ended December 31, 2002, and its Form 10-Q for the quarter and year-to-date period ended Sept. 30, 2003. These reports and TXCO's previously filed documents are on file at the Securities and Exchange Commission and can be viewed on TXCO's website at www.txco.com, copies of which are available from the Company without charge. | |||||||||||
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Slide 3 - TXCO Snapshot | |||||||||||
- Founded - 1979 | |||||||||||
- Headquarters - San Antonio | |||||||||||
- Nasdaq Smallcap - TXCO | |||||||||||
- Trading Statistics | |||||||||||
- Current 3-month average daily volume - 117,000 shares | |||||||||||
- 21.2 million shares traded in 2003 | |||||||||||
- 2003 High - $6.75, Low - $2.62, YE close - $6.10, up 105% for the year | |||||||||||
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Slide 4 - 3-Year Comparative Stock Performance | |||||||||||
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Slide 5 - TXCO Capitalization | |||||||||||
- $159 million enterprise value at 12/31/03 | |||||||||||
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Slide 6 - TXCO Profile | |||||||||||
- 25th anniversary in 2004 | |||||||||||
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Slide 7 - TXCO Growth Strategy | |||||||||||
Shareholder Value Growth Principles: | |||||||||||
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Slide 8 - Reserves and Production Rising | |||||||||||
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Slide 9 - TXCO Maverick Basin Focus Area | |||||||||||
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Slide 10 - TXCO's Pipeline Synergy | |||||||||||
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Slide 11 - TXCO Capital Expenditures | |||||||||||
Slide contains three charts: 1) 2003 Drilling/Development CAPEX by Year for 2003; | |||||||||||
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Slide 12 - 2004 Initial CAPEX Budget | |||||||||||
Pie chart showing percentages and number of wells for five focus areas, as follows (in descending order): | |||||||||||
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Slide 13 - Current Reserve Exposure Risk Mix | |||||||||||
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Slide 14 - 3-Year Performance Comparisons | |||||||||||
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Slide 15 - Rolling 3-Year Production Replacement | |||||||||||
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Slide 16 - Drilling Activity Remains Brisk | |||||||||||
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Slide 17 - TXCO Operational Snapshot | |||||||||||
- Leasehold: 572,000 Gross Acres | |||||||||||
- Maverick Basin - 480,000 acres (420,300 net) | |||||||||||
- Largest Maverick Basin Mineral Leaseholder | |||||||||||
- Williston Basin - 92,000 acres (87,300 net) | |||||||||||
- Reserve Make Up at June 30 | |||||||||||
- 24.7 Bcfe - 59% Proved Developed | |||||||||||
- 59% Gas - 14.5 Bcf | |||||||||||
- 41% Oil - 1,700 MBbls | |||||||||||
- PV-10 - $51.4 million | |||||||||||
- Net Daily Production - Exit Rate 2003 | |||||||||||
- 16 MMcfe - Up 15% from YE 2002 | |||||||||||
- 97% from Maverick Basin | |||||||||||
- 44% Oil - 1,197 BOPD | |||||||||||
- 56% Gas - 8.9 MMcfd | |||||||||||
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Slide 18 - Maverick Basin Acreage Growth | |||||||||||
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Slide 19 - Maverick Basin: Prospect Rich | |||||||||||
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Slide 20 - Glen Rose: Three Plays in One | |||||||||||
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Slide 21 - The Glen Rose Plays | |||||||||||
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Slide 22 - Georgetown Fault: 'Looks Like Broken Glass' | |||||||||||
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Slide 23 - Georgetown: Model Fault Pattern | |||||||||||
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Slide 24 - Pena Creek Infill Drilling Under Way | |||||||||||
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Slide 25 - Olmos/CBM Play: Coalbed Distribution in Maverick Basin | |||||||||||
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Slide 26 - Maverick Basin's Jurassic Play | |||||||||||
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Slide 27 - EBITDA and Cash Flows Growing | |||||||||||
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Slide 28 - Conservative Debt/Asset Ratio | |||||||||||
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Slide 29 - Why Own TXCO? | |||||||||||
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Slide 30 - Reconciliation of Non-GAAP Financial Measure | |||||||||||
Fiscal | Fiscal | 6 Months | 9 Months | ||||||||
($ in thousands) | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2003 | ||||
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Net cash provided by |
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Current taxes | - | - | (5,142) | 75 | (75) | 50 | 50 | ||||
Interest, net | 343 | 567 | (41) | (60) | 241 | 262 | 659 | ||||
Changes in assets and liabilities | (5,785) | (598) | 2,944 | (5,412) | (1,199) | (6,078) | (3,754) | ||||
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EBITDA* | (6,627) | 3,827 | 4,291 | 3,167 | 6,356 | 5,540 | 8,211 | ||||
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Less: | |||||||||||
Interest, net | 343 | 567 | (41) | (60) | 241 | 262 | 659 | ||||
Income taxes | - | - | (5,142) | 75 | (75) | 50 | 50 | ||||
DD&A | 1,447 | 2,328 | 2,712 | 3,202 | 6,501 | 4,494 | 6,709 | ||||
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Net Income | (8,417) | 932 | 6,762 | (50) | (311) | 734 | 793 | ||||
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*EBITDA represents net income before income taxes, interest expense, depreciation, depletion and amortization expense. We believe Ebitda provides a more complete analysis of TXCO's operating performance and debt servicing ability relative to other companies, and of our ability to fund capital expenditure and working capital requirements. This measure is widely used by investors and rating agencies. Ebitda, with certain negotiated adjustments, is referenced in TXCO's financial covenants and required in reporting under our credit facility. Ebitda is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for net income, income from operations, or cash flow provided by operating activities prepared in accordance with GAAP. | |||||||||||
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Slide 31 - Multi-Play, Multi-Pay in the Maverick Basin |
- TXCOQ Dashboard
- Filings
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8-K Filing
Txco Resources (TXCOQ) Inactive 8-KThe Exploration Company to Present At Friedland Capital's Oil, Gas & Energy Conference in Houston
Filed: 6 Feb 04, 12:00am