Exhibit 99.1
Brigham Exploration Reports Third Quarter Results &
Provides Fourth Quarter Forecast
AUSTIN, Texas, Nov. 11 /PRNewswire-FirstCall/ -- Brigham Exploration
Company (Nasdaq: BEXP) today announced its financial results for the quarter
ended September 30, 2003. Highlights of Brigham's financial performance for
the quarter include:
-- 40% growth in revenue over revenue in the third quarter 2002 to
$13.2 million from $9.4 million;
-- 63% increase in operating income over operating income in the third
quarter 2002 to $5.6 million from $3.4 million; and
-- 238% increase in net income to common over net income to common in
the third quarter 2002 to $3.3 million from $1.0 million.
THIRD QUARTER 2003 RESULTS
Average net daily production for the third quarter 2003 was 29.0 MMcfe/d,
compared to 28.9 MMcfe/d for the third quarter last year. Year to date,
Brigham's net daily production has averaged 29.7 MMcfe/d, relative to
27.2 MMcfe/d in 2002.
Revenue from the sale of oil and natural gas during the third quarter 2003
was $13.2 million. This represents a 40% increase over revenue from the sale
of oil and natural gas during last year's third quarter. This increase was
due to an increase in Brigham's average realized sales price for oil and
natural gas.
Production costs, which include lease operating expenses, ad valorem taxes
and production taxes, for the third quarter 2003 were $2.3 million, up 90%
when compared to last year's third quarter production costs. An increase in
lease operating expenses, due principally to an increase in workover activity
and to a lesser extent other routine operating expenses represented
approximately 84% of the increase. Higher ad valorem taxes, due to higher
property valuations, represented 9% of the increase and higher production
taxes, due to an increase in Brigham's realized pre-hedge sales price for oil
and natural gas, represented approximately 7% of this increase.
General and administrative expenses for the third quarter 2003 were
$1.1 million compared to $1.1 million in the third quarter last year.
Depletion expenses for the third quarter 2003 were $4.0 million compared to
$3.6 million in the third quarter last year. Approximately 97% of the
increase in depletion expenses was due to a 10% increase in Brigham's
depletion rate, with the remainder due to increased production volumes.
Operating income was $5.6 million, an increase of 63% from that of the prior
year's quarter.
Lower average outstanding debt balances for the quarter combined with a
decrease in Brigham's weighted average interest rate on its outstanding debt
resulted in a 31% decrease in Brigham's interest expense for the third quarter
2003. Interest expense for the third quarter 2003 was $1.1 million compared
to $1.6 million during last year's third quarter. Brigham's weighted average
interest rate on its outstanding borrowings for the third quarter 2003 was
5.8% and its weighted average outstanding debt balance was $71.7 million.
Net income to common stockholders for the third quarter 2003 was
$3.3 million ($0.13 diluted earnings per share) compared to $1.0 million
($0.06 diluted earnings per share) in the third quarter last year.
Net capital expenditures for oil and natural gas activities for the third
quarter 2003 were $10.3 million. This included $8.0 million for drilling,
$1.7 million for land and geological and geophysical activities, and
$1.4 million in capitalized interest and overhead expenses. Brigham also
received $831,000 in reimbursements and proceeds from participants in Brigham
generated projects during the third quarter 2003.
FOURTH QUARTER 2003 FORECAST
The following forecasts and estimates of Brigham's fourth quarter 2003
results are forward looking statements subject to the risks and uncertainties
identified in the "Forward Looking Statements Disclosure" at the end of this
release.
Brigham currently expects fourth quarter 2003 production volumes to
average between 30 and 34 MMcfe/d, 65% of which consists of natural gas. For
the fourth quarter 2003, lease-operating expenses, including ad valorem taxes,
are projected to be $0.42 per Mcfe. Production taxes are projected to be 5.5%
of pre-hedge oil and natural gas revenues, net general and administrative
expenses are projected to be $1.1 million ($0.36 to $0.41 per Mcfe), depletion
expenses are projected to be $1.54 per Mcfe, depreciation and amortization
expenses are projected to be $192,000 and accretion of asset retirement
obligation is expected to be $39,000.
Based on these production and cost estimates and an assumed average NYMEX
prices of $4.57 per MMBtu for natural gas and $29.29 per barrel for oil, and
taking into account current hedging contracts outstanding, Brigham forecasts
revenue of between $12.1 and $13.8 million and operating income of between
$4.8 and $5.8 million for the fourth quarter 2003.
CONFERENCE CALL INFORMATION
Brigham management will host a conference call to discuss the Company's
third quarter 2003 operational and financial results with investors, analysts
and other interested parties on Wednesday, November 12th, at 9:00 a.m. Central
time. To participate in the call, participants within the U.S. please dial
800-901-5231 and participants outside the U.S. please dial 617-876-2961. The
participant passcode for the call is 70285976. A telephone recording of the
conference call will be available to interested parties approximately two
hours after the call is completed through 11:59 p.m. Central time on
Wednesday, November 26th. To access the recording, domestic callers dial
888-286-8010 and international callers dial 617-801-6888. The passcode for
the conference call playback is 88266264. In addition, a live and archived
web cast of the conference call will be available over the Internet at either
www.bexp3d.com or www.streetevents.com .
A copy of this press release and other financial and statistical
information about the periods covered by this press release and by the
conference call that will take place on November 12, 2003, will be available
on Brigham's website. To access the press release go to www.bexp3d.com click
on News Releases. The file with a copy of the press release is named Brigham
Exploration Reports Third Quarter Results & Provides Fourth Quarter Forecast
and is dated November 11, 2003. To access the other financial and statistical
information that will be covered by the conference call that will take place
on November 12, 2003, go to www.bexp3d.com and click on Corporate
Presentation. The file with the other financial and statistical information
is named Financial and Statistical Information for the Third Quarter 2003
Conference Call and is dated November 11, 2003.
ABOUT BRIGHAM EXPLORATION
Brigham Exploration Company is an independent exploration and production
company that applies 3-D seismic imaging and other advanced technologies to
systematically explore and develop onshore domestic natural gas and oil
provinces. For more information about Brigham Exploration, please visit our
website at www.bexp3d.com or contact Investor Relations at 512-427-3444.
FORWARD LOOKING STATEMENTS DISCLOSURE
Except for the historical information contained herein, the matters
discussed in this news release are forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that are based
upon current expectations. Important factors that could cause actual results
to differ materially from those in the forward looking statements include
risks inherent in exploratory drilling activities, the timing and extent of
changes in commodity prices, unforeseen engineering and mechanical or
technological difficulties in drilling wells, availability of drilling rigs,
land issues, federal and state regulatory developments and other risks more
fully described in the company's filings with the Securities and Exchange
Commission. All forward looking statements contained in this release,
including any forecasts and estimates, are based on management's outlook only
as of the date of this release, and we undertake no obligation to update or
revise these forward looking statements, whether as a result of subsequent
developments or otherwise.
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) (unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2003 2002 2003
Revenues:
Oil and natural gas sales $9,434 $13,181 $24,637 $39,947
Other revenue 15 32 42 113
$9,449 $13,213 $24,679 $40,060
Costs and expenses:
Lease operating 761 1,793 2,428 4,037
Production taxes 475 553 1,327 2,297
General and administrative 1,099 1,094 3,781 3,420
Depletion of oil and natural
gas properties 3,587 3,952 10,118 11,853
Depreciation and amortization 103 192 307 449
Accretion of asset retirement
obligation --- 39 --- 110
$6,025 $7,623 $17,961 $22,166
Operating income $3,424 $5,590 $6,718 $17,894
Interest expense (1,614) (1,110) (4,684) (3,616)
Interest income 12 8 105 36
Other income (expense) (a) (87) (80) (256) (250)
Income before income taxes and
cumulative effect of change
in accounting principle $1,735 $4,408 $1,883 $14,064
Income tax expense --- --- --- ---
Income before cumulative effect
of change in accounting
principle $1,735 $4,408 $1,883 $14,064
Cumulative effect of
accounting change --- --- --- 268
Net income $1,735 $4,408 $1,883 $14,332
Preferred stock dividend &
accretion 746 1,065 2,165 3,088
Net income (loss) to common $989 $3,343 $(282) $11,244
Net income (loss) to common
per share:
Basic $0.06 $0.16 $(0.02) $0.55
Diluted 0.06 0.13 (0.02) 0.43
Wt. Avg. common shares
outstanding:
Basic 16,057 21,210 16,037 20,340
Diluted 19,866 30,751 16,037 32,406
(a) Includes the following:
Non-cash gains (losses) due to
the change in the fair market
value of derivative contracts
that did not qualify as hedges
of: $--- $--- $384 $---
Non-cash gains (losses) for
ineffective portion of hedging
contracts of: (106) (80) (106) (250)
BRIGHAM EXPLORATION COMPANY
PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2003 2002 2003
Average net daily production:
Natural gas (MMcf) 16.3 18.3 16.0 17.2
Oil (Bbls) 2,104 1,777 1,867 2,081
Equivalent natural gas
(MMcfe) (6:1) 28.9 29.0 27.2 29.7
Total net production:
Natural gas (MMcf) 1,463 1,648 4,307 4,648
Oil (MBbls) 189 160 504 562
Equivalent natural gas
(MMcfe) (6:1) 2,599 2,608 7,332 8,019
% Natural gas 56% 63% 59% 58%
Sales prices:
Natural gas ($/Mcf) (a) $3.23 $5.27 $3.02 $5.17
Oil ($/Bbl) (a) 24.85 28.08 23.04 28.31
Weighted average
($/Mcfe) (6:1) 3.63 5.05 3.36 4.98
(a) Includes the effects of
hedging gains (losses) of:
Natural gas ($/Mcf) $(0.06) $(0.45) $(0.02) $(0.99)
Oil ($/Bbl) (2.19) (2.23) (1.46) (2.77)
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands) (unaudited)
12/31/2002 09/30/2003
Assets:
Current assets $33,322 $31,521
Oil and gas properties, at cost, net 164,980 183,745
Other property and equipment,
at cost, net 1,234 1,210
Other non-current assets 2,523 2,697
Total assets $202,059 $219,173
Liabilities and stockholders' equity:
Current liabilities $34,010 $37,588
Notes payable 60,000 13,000
Senior subordinated notes 21,797 22,685
Other non-current liabilities 186 2,470
Total liabilities $115,993 $75,743
Series A Preferred Stock,
mandatorily redeemable 19,540 21,989
Series B Preferred Stock,
mandatorily redeemable 4,777 5,416
Stockholders' equity 61,749 116,025
Total liabilities and
stockholders' equity $202,059 $219,173
BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2003 2002 2003
Cash flows from operating
activities:
Net income $1,735 $4,408 $1,883 $14,332
Depletion, depreciation
and amortization 3,690 4,144 10,425 12,302
Accretion of asset
retirement obligation --- 39 --- 110
Interest paid through
issuance of add'l senior
sub. notes 288 303 785 888
Amortization of deferred
loan fees 303 272 888 809
Non-cash compensation expense --- --- 596 ---
Cumulative effect of adoption
of accounting principle --- --- --- (268)
Market value adjustment for
derivatives instruments 106 80 (278) 250
Changes in operating assets
and liabilities 6,017 (339) 7,896 4,002
Net cash provided by
operating activities $12,139 $8,907 $22,195 $32,425
Cash flows used by investing
activities (5,657) (10,188) (18,850) (29,402)
Cash flows (used) provided
by financing activities --- 66 3,725 (7,325)
Net increase (decrease)
in cash and cash equivalents $6,482 $(1,215) $7,070 $(4,302)
SUMMARY PER MCFE DATA
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2003 2002 2003
Revenues:
Oil and natural gas sales $3.63 $5.05 $3.36 $4.98
Other revenue 0.01 0.01 0.01 0.01
$3.64 $5.06 $3.37 $4.99
Costs and expenses:
Lease operating 0.29 0.69 0.33 0.50
Production taxes 0.18 0.21 0.18 0.29
General and administrative 0.42 0.42 0.52 0.43
Depletion of natural gas and
oil properties 1.38 1.52 1.38 1.48
Depreciation and amortization 0.04 0.07 0.04 0.06
Accretion of asset retirement
obligation --- 0.01 --- 0.01
$2.31 $2.92 $2.45 $2.77
Operating income $1.33 $2.14 $0.92 $2.22
BRIGHAM EXPLORATION COMPANY
SUMMARY OF COMMODITY PRICE HEDGES OUTSTANDING AS OF NOVEMBER 11, 2003
(unaudited)
Q4 Q1 Q2 Q3 Q4 Q1 Q2
2003 2004 2004 2004 2004 2005 2005
Natural
Gas
Swaps: MMBtu/d 4,500 3,250 2,500 1,500 1,000 --- ---
$/MMBtu $4.039 $4.963 $4.252 $4.180 $4.360 $--- $---
Natural
Gas
Collars: MMBtu/d --- 6,000 4,500 3,250 2,500 2,250 1,500
Floor -
$/MMbtu $--- $4.125 $4.139 $4.135 $4.150 $4.139 $4.083
Ceiling -
$/MMbtu $--- $8.433 $5.389 $5.350 $5.662 $6.633 $5.107
Natural
Gas
Floors: MMBtu/d 5,000 --- --- --- --- --- ---
$/MMBtu $4.500 $--- $--- $--- $--- $--- $---
Crude
Oil
Swaps: Bbls/d 450 325 225 150 100 --- ---
$/Bbl $23.21 $25.35 $24.52 $23.91 $23.80 $--- $---
Crude
Oil
Collars: Bbls/d --- 500 350 200 175 175 75
Floor -
$/Bbl $--- $23.00 $23.00 $23.00 $23.00 $23.00 $23.00
Ceiling -
$/Bbl $--- $30.43 $28.92 $27.00 $26.21 $25.85 $26.45
Note: Hedged volumes and prices reflected in this table represent average
contract amounts for the quarterly periods presented; natural gas
hedge prices and crude oil hedge contract prices are based on NYMEX
pricing.
Contact: John Turner, Manager - Finance & Investor Relations
(512) 427-3300
SOURCE Brigham Exploration Company
-0- 11/11/2003
/CONTACT: John Turner, Manager - Finance & Investor Relations of Brigham
Exploration Company, +1-512-427-3300/
/Web site: http://www.streetevents.com /
/Web site: http://www.bexp3d.com /
(BEXP)
CO: Brigham Exploration Company
ST: Texas
IN: OIL
SU: ERN CCA MAV ERP