Exhibit 99.1
TOREADOR ANNOUNCES THIRD QUARTER AND FIRST NINE MONTHS OF 2008 FINANCIAL RESULTS AND PROVIDES OPERATIONAL UPDATE
| • | Third quarter revenue improved approximately 43% from a year ago |
| • | Quarterly EBITDAX increased to approximately $12.9 million |
| • | Operating income of $1.6 million in third quarter compared to operating loss last year |
Third quarter 2008 operating results
DALLAS, TEXAS – (November 7, 2008) – Toreador Resources Corporation (NASDAQ: TRGL) today reported that revenues for the quarter ended September 30, 2008 improved approximately 43% to approximately $17.7 million from $12.4 million in the same period last year primarily due to higher realized prices for oil and gas. An operating gain was recorded in the third quarter of 2008 of $1.6 million, compared to an operating loss of $10.9 million in the same period last year. Decreases in exploration expenses, dry hole expenses, and general and administrative expenses were partially offset by increases in lease operating expenses and depreciation, depletion and amortization expenses, resulting in an overall decrease in these operating expenses of $4.6 million. Additionally, a gain on an oil derivative contract in France contributed $2.4 million to operating income, compared to a loss of $207 thousand for the same period last year.
In the third quarter of 2008 the company reported earnings before interest, taxes, depreciation, amortization, and exploration expense (EBITDAX, a non-GAAP measure*) of $12.9 million compared to $4.9 million for the same period last year.
Toreador Q3 2008 Financial Results, November 7, 2008 | Page 2 of 9 |
For the three months ended September 30, 2008, the company reported a gain available to common shares of $70 thousand, compared to a loss available to common shares of $20.8 million in the third quarter of 2007, or $1.09 per share.
During the quarter the company repurchased approximately $5.5 million face value of its 5% convertible senior notes due 2025 for approximately $4.9 million plus accrued interest of approximately $106 thousand. Approximately $223 thousand of prepaid loan fees were expensed that were attributable to the repurchased notes, which resulted in a gain of approximately $368 thousand on the early extinguishment of debt. In July, as previously announced, Toreador’s board of directors authorized a program to repurchase up to $10 million face value of the convertible notes. Approximately $4.5 million remains under that authorization.
Diluted weighted average shares outstanding in the third quarter of 2008 were 19.9 million, compared to 19.2 million diluted weighted average shares outstanding in the third quarter of 2007.
| For the Three Months Ended September 30, | | For the Three Months Ended September 30, |
| 2008 | 2007 | | 2008 | 2007 |
Production: | | | Average Price: | | |
Oil (MBbls): | | | Oil ($/Bbl): | | |
France | 89 | 94 | France | $ 108.00 | $ 71.23 |
Turkey | 14 | 17 | Turkey | 111.33 | 60.96 |
Romania | 1 | 2 | Romania | 68.80 | 47.64 |
Total | 104 | 113 | Total | $ 108.22 | $ 69.26 |
| | | | | |
Gas (MMcf): | | | Gas ($/Mcf): | | |
France | — | — | France | $ — | $ — |
Turkey | 471 | 423 | Turkey | 12.34 | 8.50 |
Romania | 106 | 168 | Romania | 5.99 | 5.28 |
Total | 577 | 591 | Total | $ 11.17 | $ 7.58 |
| | | | | |
MBOE: | | | $/BOE: | | |
France | 89 | 94 | France | $ 108.00 | $ 71.23 |
Turkey | 93 | 87 | Turkey | 79.73 | 52.94 |
Romania | 18 | 30 | Romania | 37.06 | 32.78 |
Total | 200 | 211 | Total | $ 88.42 | $ 58.21 |
Toreador Q3 2008 Financial Results, November 7, 2008 | Page 3 of 9 |
First nine months of 2008 operating results
For the nine months ended September 30, 2008 Toreador recorded revenues of $51.5 million, an increase of 77% over the revenues of $29.2 million for the first nine months of 2007. EBITDAX (a non-GAAP measure*) for the first nine of 2008 improved to $27.0 million from $10.2 million in the same period last year.
Toreador recorded an operating loss of $64.6 million in the first nine months of 2008, primarily due to asset impairment charges and high DD&A expenses associated with Turkish natural gas production. A loss available to common shares of $70.1 million, or $3.55 a share, was recorded in the first nine months of 2008 compared to a loss of $54.7 million, or $3.03 a share, in the first nine months of 2007.
Diluted weighted average shares outstanding in the first nine months of 2008 were 19.8 million compared to 18.1 million in the first nine months of 2007.
| For the Nine Months Ended September 30, | | For the Nine Months Ended September 30, |
| 2008 | 2007 | | 2008 | 2007 |
Production: | | | Average Price: | | |
Oil (MBbls): | | | Oil ($/Bbl): | | |
France | 278 | 288 | France | $ 105.81 | $ 62.54 |
Turkey | 42 | 51 | Turkey | 105.14 | 54.88 |
Romania | 2 | 8 | Romania | 67.36 | 54.58 |
Total | 322 | 347 | Total | $ 105.43 | $ 61.24 |
| | | | | |
Gas (MMcf): | | | Gas ($/Mcf): | | |
France | — | — | France | $ — | $ — |
Turkey | 1,448 | 625 | Turkey | 10.75 | 8.39 |
Romania | 337 | 543 | Romania | 5.63 | 4.79 |
Total | 1,785 | 1,168 | Total | $ 9.78 | $ 6.72 |
| | | | | |
MBOE: | | | $/BOE: | | |
France | 278 | 288 | France | $ 105.81 | $ 62.54 |
Turkey | 284 | 155 | Turkey | 70.54 | 51.84 |
Romania | 58 | 98 | Romania | 35.14 | 30.81 |
Total | 620 | 541 | Total | $ 83.02 | $ 53.71 |
Toreador Q3 2008 Financial Results, November 7, 2008 | Page 4 of 9 |
OPERATIONAL UPDATE
Sale of Turkish Black Sea asset still on track
Approval of the assignment of a 26.75% interest in Toreador’s Western Black Sea permits (which includes the South Akcakoca Sub-basin project) to Petrol Ofisi is proceeding as planned and closing is expected to occur in the latter part of November.
Development well expected to spud in Cendere Field early in first quarter of 2009
A drilling location is being prepared for a development well in the Cendere Field in southeast Turkey, and the well is expected to spud in the first quarter of 2009. Toreador has a 19.6% working interest in the field, which is operated by TPAO, the Turkish national oil company. The field currently produces approximately 200 barrels of oil per day net to Toreador’s interest.
Seismic survey in Sea of Marmara permits completed and in processing
A 1,000-kilometer 2D seismic survey has been completed in the shallow waters of Toreador’s Sea of Marmara permits offshore Turkey and is currently being processed. Toreador has a 50% working interest in the permits and is the operator. Thrace Basin Natural Gas Turkiye Corporation and Pinnacle Turkey Inc. each have a 25% working interest in the joint venture.
Posted natural gas prices increased by 23% effective November 1st in Turkey
BOTAS, the Turkish national pipeline operator, declared an increase November 1, 2008, of approximately 23% in the Turkish Lira price charged to industrial end users. This is the third price increase this year and in dollar terms sets the price for uninterruptible industrial supply at approximately $14.66 per thousand cubic feet (MCF). The posted price increase results in a wellhead price of approximately $13.57 per MCF for the gas produced in the South Akcakoca Sub-basin project starting November 1. In September the gross production from the project averaged approximately 14.5 million cubic feet per day.
Wellsite being prepared for Tompa deep gas well
In Hungary, the drilling pad for the previously announced deep gas well in the Kiskunhalas trough is being prepared for a mid-December spud date. The well, which is being funded by a joint venture partner, is being drilled to test a high-pressure, high-temperature unconventional deep gas play first discovered in the 1980s. The well is expected to take 70 to 90 days to drill. Toreador has a 25% working interest and is being carried through the drilling, completion and testing of the well. Delta Hydrocarbons, a private European energy fund, is
Toreador Q3 2008 Financial Results, November 7, 2008 | Page 5 of 9 |
earning a 75% working interest in any unconventional gas resources in Toreador’s Tompa exploration block by funding the first well.
CONFERENCE CALL
A conference call will be held today at 10:00 am Central, 11:00 am Eastern, to discuss financial results and current operations.
Active participants who wish to ask questions during the conference call should dial toll free 800-218-0204 (international dial 1-303-262-2131) approximately 10 minutes before the scheduled call time to access the call.
Those who wish only to listen to the live audio webcast may access the webcast via Toreador’s internet home page at www.toreador.net by selecting the “Investor Relations” link on the home page and then selecting the “Conference Calls” link.
Those unable to participate in the live call may hear a rebroadcast for up to twelve months after the conference call at www.toreador.net by selecting the “Investor Relations” link on the home page and then selecting the “Conference Calls” link or may dial toll-free 800-405-2236 (international dial 1-303-590-3000), passcode 11120600#, to listen to a replay of the call. Phone replays will be available for 14 days after the call.
ABOUT TOREADOR
Toreador Resources Corporation is an independent international energy company engaged in the acquisition, development, exploration and production of natural gas, crude oil and other income-producing minerals. The company holds interests in developed and undeveloped oil and gas properties in France, Hungary, Romania and Turkey. More information about Toreador may be found at the company's web site, www.toreador.net.
*Explanation and Reconciliation of Non-GAAP Financial Measures
EBITDAX represents earnings before interest, income taxes, depreciation, depletion and amortization, impairment expenses and exploration expenses, including foreign currency remeasurement and exchange gain, gain (loss) from the sale of properties and other assets, equity in earnings (loss) of unconsolidated affiliates, reduction in force and impairment of oil and natural gas properties. The Company has reported EBITDAX because the Company believes EBITDAX is a measure commonly reported by oil and gas exploration and development companies and widely used by investors as an indicator of a company's available cash flow, operating performance and ability to incur and service debt. The Company believes EBITDAX
Toreador Q3 2008 Financial Results, November 7, 2008 | Page 6 of 9 |
assists investors in comparing a company’s performance on a consistent basis without regard to depreciation, depletion and amortization, impairment of natural gas and oil properties and exploration expenses, which can vary significantly depending upon accounting methods. EBITDAX is not a measure of performance under accounting principles generally accepted in the United States of America and should not be considered in isolation or construed as a substitute for net income or other operations data or cash flow data prepared in accordance with accounting principles generally accepted in the United States for purposes of analyzing the Company’s profitability or liquidity, because it does not consider the impact of working capital growth, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the Company’s statements of cash flows. Investors should carefully consider the specific items included in the Company’s computation of EBITDAX. While the Company has disclosed its EBITDAX to permit a more complete comparative analysis of its operating performance and debt servicing ability relative to other companies, investors should be cautioned that EBITDAX as reported by the Company may not be comparable in all instances to EBITDAX as reported by other companies. EBITDAX amounts may not be fully available for management’s discretionary use, due to requirements to conserve funds for capital expenditures, debt service, preferred stock dividends and other commitments.
Table 1: Reconciliation of EBITDAX to Net income (loss) from continuing operations for the three months ended September 30,
Toreador Q3 2008 Financial Results, November 7, 2008 | Page 7 of 9 |
Table 2: Reconciliation of EBITDAX to Net loss from continuing operations for the nine months ended September 30,
Safe-Harbor Statement – Except for the historical information contained herein, the matters set forth in this news release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Toreador intends that all such statements be subject to the "safe-harbor" provisions of those Acts. Many important risks, factors and conditions may cause Toreador's actual results to differ materially from those discussed in any such forward-looking statement. These risks include, but are not limited to, estimates of reserves, estimates of production, future commodity prices, exchange rates, interest rates, geological and political risks, drilling risks, product demand, transportation restrictions, actual recoveries of insurance proceeds, the ability of Toreador to obtain additional capital, whether the transaction to sell a 26.75% interest in the South Akcakoca Sub-basin is completed on the terms contemplated, and other risks and uncertainties described in the company's filings with the Securities and Exchange Commission. The historical results achieved by Toreador are not necessarily indicative of its future prospects. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
# # #
CONTACT:
Stewart P. Yee, VP Investor Relations |
214-559-3933 or 800-966-2141
syee@toreador.net
Toreador Q3 2008 Financial Results, November 7, 2008 | Page 8 of 9 |
TOREADOR RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
| Three Months Ended September 30, |
| 2008 | 2007 |
| (Unaudited) |
| (In thousands, except |
| per share data) |
Oil and natural gas sales | $ 17,695 | $ 12,400 |
Operating costs and expenses: | | |
Lease operating | 4,818 | 2,943 |
Exploration expense | 926 | 4,812 |
Depreciation, depletion and amortization | 9,984 | 6,098 |
Dry hole expense | — | 4,250 |
General and administrative | 2,787 | 5,013 |
(Gain) loss on oil and gas derivative contracts | (2,405) | 207 |
Total operating costs and expenses | 16,110 | 23,323 |
Operating income (loss) | 1,585 | (10,923) |
Other income (expense): | | |
Foreign currency exchange gain (loss) | 1,591 | (13,576) |
Gain on the early extinguishment of debt.......................................................... | 368 | — |
Interest and other income | 457 | 283 |
Interest expense, net of interest capitalized | (2,139) | (1,600) |
Total other (expense) income....................................................................... | 277 | (14,893) |
Income (loss) before taxes | 1,862 | (25,816) |
Income tax provision | (1,806) | (945) |
Income (loss) from continuing operations | 56 | (26,761) |
Income from discontinued operations | 14 | 6,021 |
Net income (loss) | 70 | (20,740) |
Preferred dividends | — | (40) |
Income (loss) available to common shares | $ 70 | $ (20,780) |
Basic income (loss) available to common shares per share: | | |
From continuing operations | $ — | $ (1.40) |
From discontinued operations | — | 0.31 |
| $ — | $ (1.09) |
| | |
Diluted income (loss) available to common shares per share: | | |
From continuing operations | $ — | $ (1.40) |
From discontinued operations | — | 0.31 |
| $ — | $ (1.09) |
| | |
Weighted average shares outstanding: | | |
Basic | 19,929 | 19,170 |
Diluted | 19,930 | 19,170 |
Toreador Q3 2008 Financial Results, November 7, 2008 | Page 9 of 9 |
TOREADOR RESOURCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
| Nine Months Ended September 30, |
| 2008 | 2007 |
| (Unaudited) |
| (In thousands, except |
| per share data) |
Oil and natural gas sales | $ 51,540 | $ 29,183 |
Operating costs and expenses: | | |
Lease operating | 13,132 | 8,337 |
Exploration expense | 2,875 | 9,544 |
Depreciation, depletion and amortization | 29,953 | 13,525 |
Dry hole expense | — | 21,357 |
General and administrative | 12,619 | 14,248 |
Loss on oil and gas derivative contracts | 1,806 | 813 |
Impairment on investments | 300 | — |
Impairment on oil and gas properties | 55,461 | — |
Gain on sale of properties and other assets | — | (3,584) |
Total operating costs and expenses | 116,146 | 64,240 |
Operating loss | (64,606) | (35,057) |
Other income (expense): | | |
Equity in earnings of unconsolidated investments | — | 22 |
Foreign currency exchange gain (loss) | 2,930 | (29,347) |
Gain on the early extinguishment of debt......................................................... | 368 | — |
Interest and other income | 994 | 865 |
Interest expense, net of interest capitalized | (6,389) | (2,510) |
Total other income (expense) | 2,097 | (30,970) |
Loss before taxes | (66,703) | (66,027) |
Income tax benefit (provision) | (3,399) | 4,534 |
Loss from continuing operations | (70,102) | (61,493) |
Income (loss) from discontinued operations | (22) | 6,931 |
Net loss | (70,124) | (54,562) |
Preferred dividends | — | (122) |
Loss available to common shares | $ (70,124) | $ (54,684) |
Basic income (loss) available to common shares per share: | | |
From continuing operations | $ (3.55) | $ (3.41) |
From discontinued operations | — | 0.38 |
| $ (3.55) | $ (3.03) |
| | |
Diluted income (loss) available to common shares per share | | |
From continuing operations | $ (3.55) | $ (3.41) |
From discontinued operations | — | 0.38 |
| $ (3.55) | $ (3.03) |
| | |
Weighted average shares outstanding: | | |
Basic | 19,776 | 18,092 |
Diluted | 19,776 | 18,092 |
