Exhibit 99.2
[Logo]
THE BEARD COMPANY News Release
Enterprise Plaza, Suite 320
5600 North May Avenue Herb Mee, Jr., President
Oklahoma City, Oklahoma 73112
(405) 842-2333 OTCBB: BRCO
THE BEARD COMPANY
ANNOUNCES RESULTS FOR 2004 FIRST QUARTER;
COMMENCES $1,200,000 NOTE AND WARRANT OFFERING
FOR IMMEDIATE RELEASE: Monday, May 17, 2004
Oklahoma City, Oklahoma --- The Beard Company (OTCBB:BRCO) today announced
that earnings for the first quarter of 2004 totaled $2,303,000, or $0.91 per
share, on revenues of $188,000, compared with a net loss of $498,000, or $0.27
per share, on revenues of $194,000 in the 2003 first quarter. Diluted earnings
per share were $0.86 in the 2004 first quarter versus a net loss of $0.27 per
share in the comparable 2003 quarter.
Herb Mee, Jr., President, stated: "As previously announced, we received the
second installment of the McElmo Dome Settlement, totaling $2,826,000, on March
26th. This amount was reflected in other income for the first quarter of 2004,
and more than accounted for the earnings during such period."
"As a result of the recent increase in natural gas prices, the spot price
for coal in the East has risen considerably since Labor Day 2003 and has
recently been in the $45 to $55 per ton level. Converting natural gas to coal on
an equivalent btu basis a ton of coal contains 22 times the btu of an mcf
(thousand cubic feet) of natural gas. With natural gas at $6.00 per mcf, coal on
an equivalent btu basis should be selling at $132.00 per ton, ignoring
environmental factors. As a result, the demand for coal has increased sharply in
recent months and interest in our coal reclamation services has increased
correspondingly."
"The Company is currently pursuing six different coal reclamation projects
which collectively involve the recovery of five ponds and the operation of a
fine coal preparation circuit. We hope to bring several of these projects to
fruition in the near future. In order to position ourselves to do that the
Company has arranged for an investment banking firm to sell $1,200,000 of 10%
participating notes with 240,000 attached warrants to accredited investors in a
private placement on a best efforts basis. Some of the notes and warrants will
also be sold by the Company. Meanwhile, we are separately pursuing financing for
the projects in the event they materialize," Mee concluded.
Neither the 10% participating notes nor the warrants have been registered
under the Securities Act of 1933, as amended and may not be offered or sold in
the United States absent registration or an applicable exemption from
registration requirements.
(Continued on back)
Fax Number (405) 842-9901 Email: hmee@beardco.com
THE BEARD COMPANY AND SUBSIDIARIES
Results of Operations
(Unaudited)
For the Three Months
---------------------------
Ended March 31,
---------------------------
2004 2003
----------- ------------
Revenues ........................................................ $ 188,000 $ 194,000
Expenses ........................................................ 561,000 627,000
----------- -----------
Operating loss................................................... (373,000) (433,000)
Other income (expense) .......................................... 2,770,000 (85,000)
----------- -----------
Earnings (loss) from continuing operations
before income taxes ....................................... 2,397,000 (518,000)
Income taxes .................................................... (97,000) -
----------- -----------
Earnings (loss) from continuing operations ...................... 2,300,000 (518,000)
Earnings from discontinued operations ........................... 3,000 20,000
----------- -----------
Net earnings (loss) ............................................. $ 2,303,000 $ (498,000)
=========== ===========
Net earnings (loss) per average common share outstanding: Basic<F2>:
Earnings (loss) from continuing operations ................ $ 0.91 $ (0.28)
Earnings from discontinued operations ..................... 0.00 0.01
----------- -----------
Net earnings (loss) ....................................... $ 0.91 $ (0.27)
=========== ===========
Diluted<F2>:
Earnings (loss) from continuing operations ................ $ 0.86 $ (0.28)
Earnings from discontinued operations ..................... 0.00 0.01
----------- -----------
Net earnings (loss) ....................................... $ 0.86 $ (0.27)
=========== ===========
Weighted average common shares outstanding:
Basic ....................................................... 2,543,000 1,829,000
=========== ===========
Diluted ..................................................... 2,676,000 1,829,000
=========== ===========
- ---------------
<FN>
<F1>
Statements regarding future profitability and operations, including the timing of those
activities, are "forward looking statements" within the meaning of the Private Securities
Litigation Reform Act. The statements involve risks that could significantly impact The
Beard Company. These risks include, but are not limited to, adverse general economic
conditions, unexpected costs or delays or other unexpected events, as well as other risks
discussed in detail in The Beard Company's filings with the Securities and Exchange
Commission.
<F2>
Basic earnings (loss) per share are computed by dividing earnings (loss) attributable to
common shareholders by the weighted average number of common shares outstanding for the
period. Diluted earnings (loss) per common share reflect the potential dilution that could
occur if the Company's outstanding stock options and warrants were exercised (calculated
using the treasury stock method) and if the Company's preferred stock were converted to
common stock. Diluted loss per share from continuing operations exclude potential common
shares issuable upon conversion of convertible preferred stock as the effect would be
anti-dilutive. Diluted earnings (loss) per share exclude potential common shares issuable
upon exercise of stock options and warrants, as the effect would be anti-dilutive.
Weighted average shares of 2,676,000 for the diluted earnings per share calculation for
the three months ended March 31, 2004 are composed of basic common shares of 2,543,000 and
133,000 shares of preferred stock converted to common shares.
</FN>
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FOR FURTHER INFORMATION CONTACT: Herb Mee, Jr.