Exhibit No. 99.1
For Immediate Release Contact: John E. Brewster, Jr.
Vice President
(713) 658-4084
HOWELL CORPORATION ANNOUNCES 10% STOCK DIVIDEND
AND DECLARES REGULAR CASH DIVIDENDS
ON COMMON AND PREFERRED STOCK
Details of 2001 Annual Shareholders' Meeting Also Announced
HOUSTON, TEXAS, JANUARY 30, 2001 -- HOWELL CORPORATION (HWL: NYSE;HWLLP:NASDAQ)
today declared a 10% stock dividend for common shareholders of record on March
8, 2001. This dividend will be paid on March 22, 2001, with fractional shares
paid in cash. Additionally, the Company announced a $0.04 per share cash
dividend on common stock payable February 28, 2001, to shareholders of record on
February 14, 2001, and a cash dividend of $0.875 per share on Howell Corporation
$3.50 Convertible Preferred Stock, payable March 30, 2001, to shareholders of
record on March 9, 2001.
Richard K. Hebert, Howell's President and CEO, commented, "Howell has built a
commendable record of positive and improving financial performance. We will
announce fourth quarter and year-end 2000 results on February 26th. Earnings for
the fourth quarter will exceed $0.80 per share which is greater than the current
First Call estimate. Based upon these strong results and the expectation that
our positive performance will continue, a stock dividend is an effective way to
reward our shareholders. It will help increase float and liquidity in our common
stock, and may enhance shareholder value over time."
Howell announced that its Annual Meeting of Shareholders will be held at 10:00
a.m. in the tenth floor meeting room of the Howell Building at 1111 Fannin,
Houston, Texas, on Wednesday, April 25, 2001. Howell Corporation common
shareholders of record at the close of business on February 28, 2001, will be
entitled to vote at the Annual Meeting.
At its meeting today, the Board of Directors approved a capital budget of $26.5
million for 2001 which is a 36% increase on capital expenditures during 2000.
This budget anticipates that cash flow will be sufficient to fund planned
expenditures that will largely involve exploitation of existing properties in
the Company's Wyoming core area.
Additionally, the Board of Directors authorized the expenditure of up to $1
million to repurchase shares of Howell common stock. No time limit was placed on
the authorization. The Company anticipates that such purchases, if any, may be
made in open market or block transactions, or in privately negotiated
transactions. The repurchased shares will be available for general corporate
purposes.
Oil and Gas Hedges
During the 4th quarter of 2000, Howell purchased a put contract for
approximately 90% of its expected natural gas production for the period March 1
through December 31, 2001. This provides a $3.50 floor price should the current
market prices for natural gas retreat significantly after the peak winter demand
season. By purchasing a put, Howell retained all of the upside benefit above
$3.50. Howell does not currently have any hedge in place on its oil production.
2000 Reserve Report
The Company reported the results of its annual internal estimate of estimated
proved oil and gas reserves. Ryder Scott Company Petroleum Engineers, and H. J.
Gruy and Associates, Inc. audited Howell's reserve base effective December 31,
2000. Total proved reserves at year-end were 41.3 MMBoe compared to 41.0 MMBoe
at year-end 1999. The following table summarizes the information set forth in
the Company's reserve report at December 31, 1999 and 2000. Oil and gas prices
used to calculate the SEC PV-10 value, in accordance with the rules and
regulations of the Securities and Exchange Commission, were $26.09 for oil and
$2.42 for gas in 1999, and $26.80 for oil and $9.78 for gas in 2000.
All quantities are estimates: as of 12/31/99 as of 12/31/00
Proved oil (MBbls) 34,594 34,812
Proved gas (Mmcf) 38,605 39,063
Total proved reserves (MBOE) 41,029 41,323
Proved developed reserves (MBOE) 37,512 38,047
SEC PV-10 Value - Before Tax ($MM) 284 401
Howell produced 2,835 MBbls of liquids and 2,831 Mmcf of gas during 2000. Oil
and gas capital expenditures of $18.5 million during 2000 resulted in replacing
123% of production for the year. Total reserve additions from drilling and
acquisition were 4,072 MBOE, for a cost-to-add of $4.54 per barrel. At year-end,
Howell's reserve to production ratio was 12.5 years.
Howell Corporation, based in Houston, Texas, is an independent energy company
engaged in the acquisition, exploitation, and exploration of producing oil and
gas properties.
This press release includes forward-looking statements within the meaning of
Section 27 A of the Securities Exchange Act of 1934. Although Howell believes
that its expectations are based upon reasonable assumptions, it can give no
assurance that its goals will be achieved. Important factors that could cause
actual results to differ materially from those in the forward looking statements
herein include the timing and extent of changes in commodity prices for oil and
gas, the need to develop and replace reserves, uninsured risks, environmental
risks, drilling and operating risks, risks related to exploration and
development, the availability of capital resources, uncertainties about the
estimates of reserves, competition, and government regulation.