Exhibit 99
For Immediate Release | Contact Information |
Monday, March 12, 2007 | Investors: Roberto R. Thomae |
| | (210) 496-5300 ext. 214, bthomae@txco.com |
| | Media: Paul Hart |
| | (210) 496-5300 ext. 264, pdhart@txco.com |
The Exploration Company Reports Record
Revenues and Reserves for 2006
SAN ANTONIO - March 12, 2007 - The Exploration Company (Nasdaq:TXCO) today reported results for its year and quarter ended Dec. 31, 2006. The Company set records in 2006 for:
| | l | Operating income and cash flow |
For the year, total revenues rose to a record $72.4 million, an 8 percent increase from $67.0 million in 2005. The Company's net income was $7.2 million, or $0.22 per share, compared with $13.7 million, or $0.48 per share, in the prior year, which included the benefit of a $24.5 million pre-tax gain from an asset sale to EnCana Oil & Gas (USA) Inc. of certain Maverick Basin assets. All per-share amounts are on a diluted basis.
Operating income rose to a record $10.5 million, a 44 percent increase from $7.3 million in the prior year. Net cash provided by operating activities also set a record, $24.7 million, a nearly 300 percent increase from $6.3 million recorded in the prior year. Ebitda - earnings before income taxes, interest expense, depreciation, depletion, amortization, impairment and abandonment expense - was a record $37.3 million or $1.17 per share, up 75 percent from $21.3 million, or $0.74 per share in 2005. Ebitdax - Ebitda plus exploration expense - also set a record at $40.3 million, $1.26 per share, a 64 percent increase from $24.6 million, or $0.85 per share, a year earlier. See the Company's Web site at www.txco.com for a reconciliation of non-GAAP financial measures.
Total assets at year end stood at $143.8 million, a 31 percent increase from $109.5 million at Dec. 31, 2005. Stockholder equity in TXCO was $123.6 million versus $83.3 million at year-end 2005, a 48 percent increase.
TXCO's oil and gas sales increased 47 percent from the prior year to a record $56.5 million, partially offset by a decline in gas gathering revenues to $15.9 million as gas volumes declined. The Company's average commodity price for crude oil rose to $62.56 per barrel while the average price for natural gas declined to $7.18 per thousand cubic feet, compared with 2005.
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Fourth Quarter Results
TXCO's revenues for the three months ended Dec. 31, 2006, were $15.3 million, compared to $19.8 million for fourth-quarter 2005. The Company incurred a quarterly net loss of $4.4 million, $0.13 per share, compared to net income of $2.8 million, $0.09 per share, in the year-earlier period. The loss primarily resulted from higher depletion rates due to engineering adjustments on six Glen Rose Porosity wells placed on production in quarters three and four, which did not perform as originally projected. These wells have been evaluated and are scheduled for re-entry in 2007.
Oil and gas sales rose to $12.1 million, compared to $11.0 million in the year-earlier quarter. Oil and gas volumes increased to 1.5 Bcfe, compared with 1.1 Bcfe in fourth-quarter 2005.
All 2006 and fourth-quarter financial results do not reflect the impact of TXCO's proposed acquisition of Output Exploration LLC, announced Feb. 21, 2007. Closing is expected on or about April 2. Acquisition of the privately held oil and gas producer is expected to double TXCO's proved reserves and increase daily production by two-thirds.
Continuing Growth in Reserves
TXCO continued its long-term trend of year-over-year increases in proved reserves. Net proved reserves at the end of 2006 rose to 41.4 billion cubic feet equivalent of natural gas, up 5 percent from 39.4 Bcfe at year-end 2005. Combined with 2006 production of 5.9 Bcfe, gross reserve additions were 7.9 Bcfe. TXCO had a 134.5 percent all-source reserve replacement rate for the year. The standardized measure value of the estimated, discounted future net cash flows related to proved reserves at year end were $102.0 million, based on adjusted commodity prices of $57.75 per barrel for crude oil and $5.40 per million Btu for gas, compared with $98.0 million in 2005.
The Company's reserve life index stood at seven years, compared with 8.6 years at the end of 2005. TXCO's reserve mix at year end consisted of 81 percent oil and 19 percent gas, of which approximately 48 percent was proved developed. In the last five years, the Company's proved reserves have increased 325 percent. All reserve estimates were prepared by the independent engineering firms of DeGolyer and MacNaughton and William M. Cobb & Associates Inc. in accordance with Securities and Exchange Commission and Financial Accounting Standards Board requirements.
Management's Perspective
"The mostly positive results TXCO had in 2006, coupled with our proposed acquisition of Output Exploration, places the Company in an excellent position going forward," said Chairman, President and CEO James E. Sigmon. "Although disappointed with fourth-quarter Glen Rose Porosity results, we begin 2007 on a high note with higher capital availability, a large inventory of attractive drilling targets and three growth catalysts that offer us high-impact potential - the San Miguel oil sands project and Pearsall gas resource play in our core Maverick Basin area, plus the Marfa Basin shale play in West Texas.
"In addition, Output's assets in East Texas, along the Gulf Coast and in the Anadarko Basin offer us the opportunity to leverage our strength and knowledge of the Glen Rose formation and create additional value for our shareholders," Sigmon added.
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About The Exploration Company
The Exploration Company is an independent oil and gas enterprise with interests primarily in the Maverick Basin of Southwest Texas and the Marfa Basin in West Texas. The Company has a consistent record of long-term growth in its proved oil and gas reserves, leasehold acreage position, production and cash flow through its established exploration and development programs. Its business strategy is to build shareholder value by acquiring undeveloped mineral interests and internally developing a multi-year drilling inventory through the use of advanced technologies, such as 3-D seismic and horizontal drilling. The Company accounts for its oil and gas operations under the successful efforts method of accounting and trades its common stock on Nasdaq's Global Select Market under the symbol "TXCO."
Forward-Looking Statements
Statements in this press release that are 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 oil and gas prices, capital expenditures, production levels, drilling plans, including the timing, number and cost of wells to be drilled, projects and expected response, and establishment of reserves. It is important to note 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 affecting the drilling of oil and natural gas wells, as well as general market conditions, competition and pricing. More information about potential 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 Dec. 31, 2005, and its Form 10-Q for the quarter ended Sept. 30, 2006. This and all previously filed documents are on file at the Securities and Exchange Commission and can be viewed on TXCO's Web site at www.txco.com. Copies are available without charge, upon request from the Company.
(Financial Information and Selected Operational Tables Follow)
THE EXPLORATION COMPANY
(Unaudited)
| | | | |
| | | December 31 | |
(in thousands) | | 2006 | | 2005 | |
Assets | | | | | |
| | | | | | |
Current Assets | | | | | |
| Cash and equivalents | | $ | 3,882 | | $ | 6,083 | |
| Accounts receivable: | | | | | | | |
| Joint interest owners | | | 3,321 | | | 2,834 | |
| Oil and gas sales | | | 5,811 | | | 6,510 | |
| Federal income tax | | | 4,468 | | | - | |
| Prepaid expenses and other | | | 887 | | | 1,620 | |
| Total Current Assets | | | 18,369 | | | 17,047 | |
| | | | | | | | |
Property and Equipment, net - successful efforts method of accounting for oil and gas properties | | | 119,574 | | | 84,467 | |
| | | | | | | | |
Other Assets | | | | | | | |
| Deferred tax asset | | | 5,310 | | | 7,242 | |
| Other assets | | | 548 | | | 780 | |
| Total Other Assets | | | 5,858 | | | 8,022 | |
| | | | | | | | |
Total Assets | | $ | 143,801 | | $ | 109,536 | |
THE EXPLORATION COMPANY
Condensed Consolidated Balance Sheets
(Unaudited)
| | | | |
| | | December 31 | |
(in thousands) | | 2006 | | 2005 | |
Liabilities And Stockholders' Equity | | | | | |
| | | | | | |
Current Liabilities | | | | | |
| Accounts payable, trade | | $ | 7,969 | | $ | 10,003 | |
| Undistributed revenue | | | 1,035 | | | 2,479 | |
| Current income taxes payable | | | - | | | 4,952 | |
| Notes payable | | | 267 | | | 262 | |
| Derivative settlements payable | | | 70 | | | 151 | |
| Accrued derivative obligation - short-term | | | 321 | | | 2,084 | |
| Other payables and accrued liabilities | | | 6,433 | | | 4,297 | |
| Total Current Liabilities | | | 16,095 | | | 24,228 | |
| | | | | | | | |
Long-Term Liabilities | | | | | | | |
| Long-term debt | | | 2,351 | | | 1 | |
| Accrued derivative obligation - long-term | | | - | | | 461 | |
| Asset retirement obligation | | | 1,703 | | | 1,565 | |
| Total Long-Term Liabilities | | | 4,054 | | | 2,027 | |
| | | | | | | | |
Commitments and Contingencies | | | - | | | - | |
| | | | | | | | |
Stockholders' Equity | | | | | | | |
Preferred stock; authorized 10,000,000 shares, Series A, -0- shares issued and outstanding Series B, -0- shares issued and outstanding | | | - | | | - | |
Common stock, par value $0.01 per share; authorized 50,000,000 shares, issued 33,290,698 and 29,479,697 shares, and outstanding 33,190,898 and 29,379,897 | | | 333 | | | 295 | |
| Additional paid-in capital | | | 122,108 | | | 89,680 | |
| Retained earnings (accumulated deficit) | | | 2,619 | | | (4,622 | ) |
| Accumulated other comprehensive loss, net of tax | | | (1,162 | ) | | (1,826 | ) |
| Less treasury stock, at cost, 99,800 shares | | | (246 | ) | | (246 | ) |
| Total Stockholders' Equity | | | 123,652 | | | 83,281 | |
| | | | | | | | |
Total Liabilities and Stockholders' Equity | | $ | 143,801 | | $ | 109,536 | |
THE EXPLORATION COMPANY
Condensed Consolidated Statements of Operations
(Unaudited)
| | | |
| | | Years Ended December 31 |
(in thousands, except earnings per share data) | | 2006 | | 2005 | 2004 |
Revenues | | | | | | | | |
| Oil and gas sales | | $ | 56,520 | | $ | 38,533 | $ | 30,181 |
| Gas gathering operations | | | 15,853 | | | 28,430 | | 27,536 |
| Other operating income | | | 45 | | | 37 | | 18 |
| Total Revenues | | | 72,418 | | | 67,000 | | 57,735 |
| | | | | | | | | |
Costs and Expenses | | | | | | | | |
| Lease operations | | | 7,248 | | | 6,470 | | 5,460 |
| Production taxes | | | 2,551 | | | 2,180 | | 1,588 |
| Exploration expenses | | | 2,968 | | | 3,266 | | 2,449 |
| Impairment and abandonments | | | 1,722 | | | 1,406 | | 2,355 |
| Gas gathering operations | | | 16,255 | | | 28,312 | | 25,292 |
| Depreciation, depletion and amortization | | | 23,840 | | | 12,597 | | 9,851 |
| General and administrative | | | 7,298 | | | 5,439 | | 4,853 |
| Total Costs and Expenses | | | 61,882 | | | 59,670 | | 51,848 |
| | | | | | | | | |
Income from Operations | | | 10,536 | | | 7,330 | | 5,887 |
| | | | | | | | | |
Other Income (Expense) | | | | | | | | |
| Interest income | | | 550 | | | 89 | | 32 |
| Interest expense | | | (269 | ) | | (2,920 | | (2,909 |
| Loan fee amortization | | | (216 | ) | | (132 | | (83 |
| Derivative mark-to-market gain (loss) | | | 1,995 | | | (2,128 | | (19 |
| Derivative settlements loss | | | (2,686 | ) | | (9,115 | | - |
| (Loss) gain on sale of assets | | | (8 | ) | | 24,540 | | - |
| Total Other Income (Expense) | | | (634 | ) | | 10,334 | | (2,979 |
| | | | | | | | | |
| Income before income taxes and minority interest | | | 9,902 | | | 17,664 | | 2,908 |
| Minority interest in income of subsidiaries | | | - | | | - | | 35 |
| | | | | | | | | |
| Income before income taxes | | | 9,902 | | | 17,664 | | 2,943 |
| Income tax (benefit) expense -- | current | | | 1,232 | | | 4,851 | | 146 |
| | deferred | | | 1,429 | | | (928 | | - |
| | | | | | | | | |
Net Income | | $ | 7,241 | | $ | 13,741 | $ | 2,797 |
| | | | | | | | | |
Earnings Per Share: | | | | | | | | |
| Basic Earnings Per Share | | $ | 0.23 | | $ | 0.48 | $ | 0.11 |
| Diluted Earnings Per Share | | $ | 0.22 | | $ | 0.48 | $ | 0.10 |
| | | | | | | | | |
| Weighted average number of common shares outstanding: | | | | |
| Basic | | | 31,916 | | | 28,444 | | 26,066 |
| Diluted | | | 33,247 | | | 28,885 | | 26,971 |
THE EXPLORATION COMPANY
(Unaudited)
| | | | | | | | | | | | |
| | | | | Retained | | Accumulated | | | | | |
| | | | | Additional | | Earnings | | Other | | | | | |
| | | Common Stock | | Paid-in | | (Accumulated | | Comprehen- | | Treasury | | | |
(in thousands) | | Shares | | Amount | | Capital | | Deficit) | | sive Loss | | Stock | | Total | |
Balance at December 31, 2003 | | | 22,243 | | $ | 222 | | $ | 63,976 | | | | | $ | (21,160 | ) | | | | | - | | $ | (246 | ) | $ | 42,792 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Issuance of common stock - net of expenses of $1,237 | | | 5,867 | | | 59 | | | 19,797 | | | | | | - | | | | | | - | | | - | | | 19,856 | |
| Non-cash compensation | | | - | | | - | | | 237 | | | | | | - | | | | | | - | | | - | | | 237 | |
| Net income for the year | | | - | | | - | | | - | | | | | | 2,797 | | | | | | - | | | - | | | 2,797 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at December 31, 2004 | | | 28,110 | | | 281 | | | 84,010 | | | | | | (18,363 | ) | | | | | - | | | (246 | ) | | 65,682 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock options & warrants exercised | | | 912 | | | 9 | | | 2,907 | | | | | | - | | | | | | - | | | - | | | 2,916 | |
Issuance of common stock - net of expenses of $-0- | | | 458 | | | 5 | | | 2,763 | | | | | | - | | | | | | - | | | - | | | 2,768 | |
| Comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income for the year | | | - | | | - | | | - | | | | | | 13,741 | | | | | | - | | | - | | | 13,741 | |
| Deferred hedge losses - net of $1,055 in income taxes | | | - | | | - | | | - | | | | | | - | | | | | | (1,826 | ) | | - | | | (1,826 | ) |
| Total comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | | | | 11,915 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at December 31, 2005 | | | 29,480 | | | 295 | | | 89,680 | | | | | | (4,622 | ) | | | | | (1,826 | ) | | (246 | ) | | 83,281 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Stock grants | | | 331 | | | 3 | | | - | | | | | | - | | | | | | - | | | - | | | 3 | |
Common stock options & warrants exercised | | | 419 | | | 4 | | | 793 | | | | | | - | | | | | | - | | | - | | | 797 | |
Issuance of common stock - net of expenses of $1,735 | | | 3,061 | | | 31 | | | 30,428 | | | | | | - | | | | | | - | | | - | | | 30,459 | |
| Non-cash compensation | | | - | | | - | | | 1,207 | | | | | | - | | | | | | - | | | - | | | 1,207 | |
| Comprehensive income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income for the year | | | - | | | - | | | - | | | | | | 7,241 | | | | | | - | | | - | | | 7,241 | |
| Deferred hedge gain - net of $372 in income taxes | | | - | | | - | | | - | | | | | | - | | | | | | 664 | | | - | | | 664 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,905 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at December 31, 2006 | | | 33,291 | | $ | 333 | | $ | 122,108 | | | | | $ | 2,619 | | | | | $ | (1,162 | ) | $ | (246 | ) | $ | 123,652 | |
THE EXPLORATION COMPANY
(Unaudited)
| | | | |
| | | Years Ended December 31 | |
(in thousands) | | 2006 | | 2005 | | 2004 | |
| Operating Activities | | | | | | | |
| Net income | | $ | 7,241 | | $ | 13,741 | | $ | 2,797 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | |
| Depreciation, depletion and amortization | | | 24,056 | | | 12,597 | | | 9,851 | |
| Impairments and abandonments | | | 1,722 | | | 1,406 | | | 2,354 | |
| Minority interest in income of subsidiaries | | | - | | | - | | | (35 | ) |
| Loss (gain) on sale of assets | | | 8 | | | (24,540 | ) | | - | |
| Deferred tax expense (benefit) | | | 1,560 | | | (928 | ) | | - | |
Non-cash interest expense and accretion of liability - redeemable preferred stock | | | - | | | 684 | | | 1,016 | |
| Non-cash stock compensation expense | | | 1,207 | | | - | | | 237 | |
| Non-cash derivative mark-to-market (gain) loss | | | (1,995 | ) | | 2,128 | | | (134 | ) |
| Non-cash change in components of OCI | | | 806 | | | - | | | - | |
| Payment to terminate cash flow hedge | | | - | | | (2,356 | ) | | - | |
| Changes in operating assets and liabilities: | | | | | | | | | | |
| Receivables | | | 213 | | | (984 | ) | | (4,147 | ) |
| Prepaid expenses and other | | | 747 | | | (469 | ) | | (81 | ) |
| Accounts payable and accrued expenses | | | (2,342 | ) | | 44 | | | 4,636 | |
| Current income taxes (receivable) payable | | | (8,499 | ) | | 4,937 | | | (47 | ) |
| Net cash provided by operating activities | | | 24,724 | | | 6,260 | | | 16,447 | |
| Investing Activities | | | | | | | | | | |
| Development and purchases of oil and gas properties | | | (52,927 | ) | | (49,672 | ) | | (39,335 | ) |
| Purchase of other equipment | | | (6,941 | ) | | (37 | ) | | (224 | ) |
| Proceeds from sale of oil and gas assets | | | 23 | | | 78,002 | | | - | |
| Changes in minority interests | | | - | | | - | | | (159 | ) |
| Net cash provided (used) by investing activities | | | (59,845 | ) | | 28,293 | | | (39,718 | ) |
| Financing Activities | | | | | | | | | | |
| Proceeds from bank credit facility | | | 13,450 | | | 15,001 | | | 19,099 | |
| Payments on bank credit facility | | | (11,100 | ) | | (32,099 | ) | | (17,295 | ) |
| Payments on installment and other obligations | | | (489 | ) | | (1,761 | ) | | (593 | ) |
| Proceeds from installment and other obligations | | | 494 | | | 356 | | | 377 | |
| Redemption of preferred stock | | | - | | | (16,000 | ) | | - | |
| Proceeds from common stock transactions, net of expenses | | | 30,565 | | | 2,915 | | | 18,620 | |
| Net cash provided (used) by financing activities | | | 32,920 | | | (31,588 | ) | | 20,208 | |
| Change in Cash and Equivalents | | | (2,201 | ) | | 2,965 | | | (3,063 | ) |
| Cash and Equivalents at Beginning of Year | | | 6,083 | | | 3,118 | | | 6,181 | |
| | | | | | | | | | | |
| Cash and Equivalents at End of Year | | $ | 3,882 | | $ | 6,083 | | $ | 3,118 | |
| | | | | | | | | | | |
| Supplemental Disclosures | | | | | | | | | | |
| Cash paid for interest | | $ | 213 | | $ | 3,224 | | $ | 3,011 | |
| Cash paid for income taxes | | | 4,881 | | | 158 | | | - | |
THE EXPLORATION COMPANY |
SELECTED QUARTERLY FINANCIAL INFORMATION |
SELECTED FINANCIAL INFORMATION - BALANCE SHEET |
| | | | | | |
| | | 2006 | | 2005 | |
| | | 4TH | | 4TH | |
(in thousands) | | QUARTER | | QUARTER | |
| | | | | | |
| Current Assets | | $ | 18,369 | | $ | 17,047 | |
| | | | | | | | |
| Property and Equipment - Net | | | 119,574 | | | 84,467 | |
| | | | | | | | |
| Other Assets | | | 5,858 | | | 8,022 | |
| | | | | | | | |
| Total Assets | | $ | 143,801 | | $ | 109,536 | |
| | | | | | | | |
| Current Liabilities | | $ | 16,095 | | $ | 24,228 | |
| | | | | | | | |
| Long-Term Liabilities | | | 4,054 | | | 2,027 | |
| Stockholders' Equity | | | 123,652 | | | 83,281 | |
| | | | | | | | |
| Total Liabilities and Stockholders' Equity | | $ | 143,801 | | $ | 109,536 | |
THE EXPLORATION COMPANY |
SELECTED QUARTERLY FINANCIAL INFORMATION |
SELECTED FINANCIAL INFORMATION - INCOME STATEMENT |
| | | | | | |
| | | 2006 | | 2005 | |
| | 4TH | | 4TH | |
| (in thousands, except per share data) | | QUARTER | | QUARTER | |
| | | | | | |
| Revenues | | | | | |
| Oil and gas sales | | $ | 12,131 | | $ | 11,022 | |
| Gas gathering operations | | | 3,123 | | | 8,747 | |
| Other | | | 6 | | | 7 | |
| Total Revenues | | | 15,260 | | | 19,776 | |
| | | | | | | | |
| Costs and Expenses | | | | | | | |
| Lease operations | | | 1,920 | | | 1,449 | |
| Production taxes | | | 381 | | | 581 | |
| Exploration expenses | | | 2,008 | | | 1,439 | |
| Impairment and abandonments | | | 628 | | | (529 | ) |
| Gas gathering operations | | | 3,326 | | | 9,235 | |
| Depreciation, depletion and amortization | | | 12,948 | | | 2,118 | |
| General and administrative | | | 1,632 | | | 1,313 | |
| Total Costs and Expenses | | | 22,843 | | | 15,606 | |
| | | | | | | | |
| Income (loss) from Operations | | | (7,583 | ) | | 4,170 | |
| | | | | | | | |
| Other Income (Expense) | | | | | | | |
| Interest income | | | 79 | | | 54 | |
| Interest expense | | | (60 | ) | | (42 | ) |
| Loan fee amortization | | | (42 | ) | | (65 | ) |
| Derivative mark-to-market gain / (loss) | | | 208 | | | 8,704 | |
| Derivative settlements gain / (loss) | | | (146 | ) | | (8,115 | ) |
| Gain on sale of assets | | | 3 | | | - | |
| Total Other Income (Expense) | | | 42 | | | 536 | |
| | | | | | | | |
| Income (loss) before income tax | | | (7,541 | ) | | 4,706 | |
| Income tax (benefit) expense | | | (3,138 | ) | | 1,933 | |
| | | | | | | | |
| Net Income (Loss) Reported | | $ | (4,403 | ) | $ | 2,773 | |
THE EXPLORATION COMPANY |
SELECTED QUARTERLY FINANCIAL INFORMATION |
SELECTED FINANCIAL INFORMATION - INCOME STATEMENT (continued) |
| | | | | | |
| | | 2006 | | 2005 | |
| | | 4TH | | 4TH | |
| | QUARTER | | QUARTER | |
| | | | | | |
| EBITDA | | $ | 6,227 | | $ | 5,759 | |
| | | | | | | | |
| EBITDAX | | $ | 8,235 | | $ | 7,198 | |
| | | | | | | | |
| Earnings per share - Reported | | | | | | | |
| Basic | | $ | (0.14 | ) | $ | 0.10 | |
| Diluted | | $ | (0.13 | ) | $ | 0.09 | |
| | | | | | | | |
| EBITDA per share | | | | | | | |
| Basic | | $ | 0.19 | | $ | 0.20 | |
| Diluted | | $ | 0.18 | | $ | 0.19 | |
| | | | | | | | |
| EBITDAX per share | | | | | | | |
| Basic | | $ | 0.25 | | $ | 0.25 | |
| Diluted | | $ | 0.24 | | $ | 0.24 | |
| | | | | | | | |
| Weighted average number of common shares outstanding | | | | | | | |
| Basic | | | 32,816 | | | 28,860 | |
| Diluted | | | 33,908 | | | 30,002 | |
| | | | | | | | |
| Sales volumes - Oil and Gas | | | | | | | |
| Gas (MMcf) | | | 240 | | | 320 | |
| Oil (MBbl) | | | 204 | | | 131 | |
| Equivalent (MMcfe) | | | 1,464 | | | 1,106 | |
THE EXPLORATION COMPANY |
SELECTED QUARTERLY FINANCIAL INFORMATION |
SELECTED FINANCIAL INFORMATION - CASH FLOWS |
| | | | | | |
| | | 2006 | | 2005 | |
| | | 4TH | | 4TH | |
| (in thousands) | | QUARTER | | QUARTER | |
| | | | | | |
| Net income (loss) | | $ | (4,403 | ) | $ | 2,773 | |
| | | | | | | | |
| Adjustments to reconcile net income to | | | | | | | |
| net cash provided by operating activities | | | | | | | |
| Depreciation, depletion and amortization | | | 12,990 | | | 2,118 | |
| Impairments and abandonments | | | 628 | | | (529 | ) |
| Gain on sale of assets | | | (3 | ) | | - | |
| Deferred tax expense | | | 3,079 | | | 270 | |
| Non-cash change in components of other comprehensive income | | | 806 | | | - | |
| Non-cash compensation expense | | | 233 | | | - | |
| Non-cash derivative mark-to-market (gain) loss | | | (208 | ) | | (8,704 | ) |
| Payment to terminate cash flow hedge | | | - | | | (2,356 | ) |
| Changes in operating assets and liabilities | | | (2,348 | ) | | 364 | |
| | | | | | | | |
| Net cash provided by operating activities | | $ | 10,774 | | $ | (6,064 | ) |
| | | | | | | | |
| Capital Expenditures | | $ | 15,711 | | $ | 18,144 | |
THE EXPLORATION COMPANY SELECTED OPERATING DATA |
| | | | |
| | | Year Ended December 31, | |
| ($'s in thousands, except average prices) | | 2006 | | 2005 | |
| | | | | | |
| Net cash provided in operating activities | | $ | 24,724 | | $ | 6,260 | |
| | | | | | | | |
| Ebitdax * | | | 40,273 | | | 24,599 | |
| | | | | | | | |
| Ebitda * | | | 37,305 | | | 21,333 | |
| | | | | | | | |
| Debt to asset ratio | | | 1.8 | % | | 0.2 | % |
| | | | | | | | |
| Sales | | | | | | | |
| | | | | | | | |
| Oil: | | | | | | | |
| Sales, in mBbl | | | 791 | | | 397 | |
| Average realized sales price per barrel, excluding hedging impact | | $ | 62.56 | | $ | 54.21 | |
| | | | | | | | |
| Natural Gas: | | | | | | | |
| Sales, in mmcf ** | | | 1,104 | | | 2,222 | |
| Average realized sales price per mcf, excluding hedging impact | | $ | 7.18 | | $ | 7.65 | |
| | | | | | | | |
| Equivalent Basis: | | | | | | | |
| Sales in mBOE | | | 975 | | | 768 | |
| Average realized sales price per BOE, excluding hedging impact | | $ | 58.88 | | $ | 50.20 | |
| | | | | | | | |
| Sales in mmcfe ** | | | 5,852 | | | 4,605 | |
| Average realized sales price per mcfe, excluding hedging impact | | $ | 9.81 | | $ | 8.37 | |
| | | | | | | | |
| Other Operating Data | | | | | | | |
| Total lifting costs | | $ | 9,800 | | $ | 8,650 | |
| Lifting costs per mcfe | | $ | 1.67 | | $ | 1.88 | |
| | | | | | | | |
| Sales volume - oil properties - mBbl | | | 785 | | | 375 | |
| Oil prop. lifting costs-oil (Incl Prod & Sev Tax) | | $ | 7,813 | | $ | 4,803 | |
| Oil prop. lifting costs per barrel | | $ | 9.95 | | $ | 12.82 | |
| | | | | | | | |
| Glen Rose Porosity sales volume - mBbl | | | 683 | | | 229 | |
| Glen Rose Porosity lifting costs per barrel | | $ | 6.37 | | $ | 4.92 | |
| | | | | | | | |
| Sales volume - gas properties - mcf ** | | | 1,023 | | | 2,080 | |
| Gas prop. lifting costs-gas (Incl Prod & Sev Tax) | | $ | 1,958 | | $ | 3,847 | |
| Gas prop. lifting costs per mcf | | $ | 1.91 | | $ | 1.85 | |
| | | | | | | | |
| Total depletion cost per BOE | | $ | 24.26 | | $ | 16.14 | |
| Total depletion cost per mcfe | | $ | 4.04 | | $ | 2.69 | |
| | | | | | | | |
| | | | | | | | |
| * Please see TXCO's Web site at www.txco.com for a reconciliation of these non-GAAP financial measures. |
| ** Quantities reflect impact of gas production sold to EnCana Oil & Gas (USA) Inc., effective Sept. 1, 2005. |
