Exhibit 99.2
For Further Information Contact
Robert E. Phaneuf
For Immediate Release Vice President - Corporate Development
Wednesday, August 9, 2000 (918) 592-0101
VINTAGE PETROLEUM ANNOUNCES PRELIMINARY
2001 CAPITAL BUDGET AND TARGETS
Tulsa, Oklahoma - Vintage Petroleum, Inc. today announced that its initial
non-acquisition capital budget for 2001 has been set at $225 million, a 31
percent increase over the revised 2000 non-acquisition capital budget of $172
million. Approximately $155 million, or 69 percent, is allocated for
exploitation activities with the remaining 31 percent, or $70 million,
designated for exploration.
The budget is allocated approximately evenly between the $116 million for
domestic projects and $109 million for international projects. Within the
domestic allocation, $66 million is targeted for exploitation and $50 million is
allocated for exploration. Internationally, $88 million is targeted for
exploitation with the majority of that allocated to continuation of the
Argentina drilling program and a smaller amount to exploitation drilling in
Ecuador. Exploitation work in Argentina calls for the continuance of a two-rig
drilling program, additional waterflood and gas projects and seismic work on the
El Huemul acreage. Up to four development wells are planned in Ecuador in 2001.
Approximately $21 million is targeted for international exploration with the
continued program in Yemen accounting for approximately one-half of the
expenditures.
Preliminary Targets Set for 2001
Based on a preliminary 2001 non-acquisition capital budget of $225 million
and excluding the impact of any future acquisitions, the company has established
a production target of 31.7 million BOE for the year, representing a 10 percent
increase over the revised 2000 target of 28.9 million BOE. The
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accompanying table sets forth the company's targeted production and costs per
BOE assumed in the preliminary targets for 2001. Based on production and cost
targets, per BOE lease operating costs and general and administrative costs are
targeted to average a combined level of under $6.00 per BOE for the year.
Additionally, based on assumed NYMEX commodity price levels of $25.00 per barrel
for oil and $3.50 per MMBtu for gas, as well as other expectations, the
preliminary target for 2001 cash flow is $328 million. "Based on our
preliminary outlook for next year, we expect to be able to not only meaningfully
grow the company from internally generated exploitation and exploration
prospects but also to generate over $100 million in free cash flow which could
be applied toward an acquisition or other corporate purposes. Overall the
company's goal is to continue to increase production and cash flow at an average
annual rate of 30 percent to be achieved through rapid internal growth as well
as an aggressive acquisition program," said S. Craig George, CEO.
Forward-Looking Statements
This release includes certain statements that may be deemed to be "forward-
looking statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements in this release, other than statements of
historical facts, that address operating and financial targets, estimates of
capital expenditures, future production, costs and cash flow, NYMEX reference
prices, realized prices, exploration drilling, exploitation activities and
events or developments that the company expects are forward-looking statements.
Although Vintage believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors that could
cause actual results to differ materially from those in forward-looking
statements include oil and gas prices, exploitation and exploration successes,
continued
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availability of capital and financing, and general economic, market or business
conditions.
Vintage Petroleum is an independent energy company engaged in the
acquisition, exploitation, exploration and development of oil and gas properties
and the marketing of natural gas and crude oil. Company headquarters are in
Tulsa, Oklahoma, and its common shares are traded on the New York Stock Exchange
under the symbol VPI.
-Table follows-
VINTAGE PETROLEUM, INC.
TARGETS FOR 2001
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Preliminary
Oil production (MMBbls): 2001
Target
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U.S. 9.1
Argentina 10.7
Other 2.0
Total 21.8
Gas production (Bcf):
U.S. 40.7
Argentina 8.5
Bolivia 9.9
Total 59.1
Total MMBOE 31.7
Net realized price as a percent
of NYMEX - Total Company:
(before impact of hedging)
Oil 86%
Gas 75%
DD&A per BOE (oil and gas only) $3.30
LOE per BOE $4.65
G&A per BOE $1.30
Non-Acquisition Capital Spending Budget ($ in millions) $ 225
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Cash Flow (before working capital changes): ($ in millions)
2001 Assumed NYMEX - $25.00 oil and $3.50 gas $328
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NYMEX:
Oil - Average of the daily settlement price for the near-month contract for
light crude oil as quoted on the New York Mercantile Exchange.
Gas - Average of the settlement price per MMBtu for the last 3 trading days
for the applicable contract month for natural gas as quoted on the New
York Mercantile Exchange.
Targets do not reflect any year 2001 acquisitions.
See "Preliminary Targets Set for 2001" and "Forward-Looking Statements"
elsewhere in the release.
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