EXHIBIT 99.1
[PetroQuest Energy, Inc. Letterhead]
NEWS RELEASE
FOR IMMEDIATE RELEASE
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For further information, contact: Robert R. Brooksher, Vice President - Corporate Communications
(337) 232-7028
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PETROQUEST ENERGY, INC. ANNOUNCES 2001 YEAR-END AND FOURTH QUARTER RESULTS
Lafayette, Louisiana - February 27, 2002 - PetroQuest Energy, Inc. (NASDAQ:
PQUE) announced today net income for the quarter ended December 31, 2001 of
$1,142,000 or $0.03 per share, as compared to fourth quarter 2000 net income of
$5,239,000 or $0.17 per share. Included in net income for the quarter ended
December 31, 2001 is a tax benefit of $759,000 primarily attributable to a
revision in the Company's estimated effective income tax rate. Net cash flow
from operations before working capital changes for the fourth quarter of 2001
increased 26% to $8,684,000 or $0.25 per share as compared to $6,914,000 or
$0.22 per share for the comparable 2000 period. For the year ended December 31,
2001, net income was $11,645,000 or $0.34 per share and net cash flow from
operations before working capital changes totaled $42,317,000 or $1.23 per
share. Net income and net cash flow from operations before working capital
changes for the year ended December 31, 2000 were $9,924,000 or $0.35 per share,
and $15,702,000 or $0.56 per share, respectively.
On a thousand cubic feet equivalent (Mcfe) basis, fourth quarter 2001 production
volumes equaled 4,298,000 Mcfe, a 172% increase over fourth quarter 2000
production volumes. For the year ended December 31, 2001, production volumes
increased from 4,948,000 Mcfe in 2000 to 13,774,000 Mcfe or 178%. This is the
result of the Company's successful drilling program, which had a 77% success
rate completing 10 of 13 wells drilled in 2001.
Oil and gas sales during the fourth quarter of 2001 increased 33% to $12,420,000
as compared to the fourth quarter of 2000. For the year ended December 31, 2001,
sales increased 147% to $54,967,000 from $22,267,000 for the year ended December
31, 2000. This increase in sales is the result of the significant production
increases discussed above partially offset by lower product prices. Stated on a
Mcfe basis, unit prices received during the fourth quarter and year ended
December 31, 2001 were 51% and 11% lower, respectively, than the prices received
during the comparable 2000 periods.
All-inclusive cash costs (lease operating expenses, production taxes, general
and administrative expense and cash interest expense) for the fourth quarter of
2001 decreased to $.87 per Mcfe from $1.67 per Mcfe in the comparable period of
2000. For the year ended December 31, 2001, all-inclusive cash costs were $.94
per Mcfe representing a 34% decrease from the $1.43 per Mcfe for the previous
year.
"2001 was a significant growth year for PetroQuest. Production, revenue, cash
flow and net income all had considerable increases," said Charles Goodson,
PetroQuest's Chairman and Chief Executive Officer. "Our budget for capital
expenditures for 2002 is in the $45-$50 million range to be funded from cash
flow, our credit facility and our recently completed equity offering. This
budget will expose the Company to between 250 and 300 Bcfe in net unrisked
reserve potential. We expect this aggressive drilling program to allow continued
growth in 2002."
The following table sets forth certain information with respect to the oil and
gas operations of the Company for the three-month periods and years ended
December 31, 2001 and 2000.
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
Production:
Oil (Bbls) 191,332 50,016 791,405 160,631
Gas (Mcf) 3,150,098 1,279,731 9,025,240 3,984,461
Total Production (Mcfe) 4,298,090 1,579,826 13,773,670 4,948,246
Sales:
Total oil sales $ 4,098,533 $ 1,507,486 $20,171,659 $ 4,809,382
Total gas sales $ 8,321,954 $ 7,822,169 $34,794,876 $17,457,307
Average sales prices:
Oil (per Bbl) $21.42 $30.14 $25.49 $29.94
Gas (per Mcf) $2.64 $6.11 $3.86 $4.38
Per Mcfe $2.89 $5.91 $3.99 $4.50
The following updates guidance for the first quarter and full year of 2002:
Guidance for Guidance for
Description 1st Quarter 2002 2002
- ----------- ---------------- ----
Production volumes (MMcfe/d) 44.0-45.0 48.0 - 52.0
Percent gas 70% 70%
Expenses:
Lease operating expenses (per Mcfe) $.55 - $.60 $.55 - $.60
Production taxes (per Mcfe) $.07 - $.10 $.07 - $.10
Depreciation, depletion and amortization (per Mcfe) $1.65 - $1.75 $1.65 - $1.75
General and administrative (in millions) $1.3 - $1.5 $6.0 - $6.5
Interest expense (in millions) $.325 - $.375 $.900 - $1.100
Effective tax rate (all deferred) 35% 35%
PetroQuest Energy Inc. is an independent energy company engaged in the
exploration, development, acquisition and production of oil and natural gas
reserves in the Gulf Coast Basin, both onshore and in shallow waters offshore.
This press release contains "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. These forward-looking statements
are subject to certain risks, trends and uncertainties that could cause actual
results to differ materially from those projected. Among those risks, trends and
uncertainties are our estimate of the sufficiency of our existing capital
sources, our ability to raise additional capital to fund cash requirements for
future operations, the uncertainties involved in estimating quantities of proved
oil and natural gas reserves, in prospect development and property acquisitions
and in projecting future rates of production, the timing of development
expenditures and drilling of wells, and the operating hazards attendant to the
oil and gas business. In particular, careful consideration should be given to
cautionary statements made in the various reports PetroQuest has filed with the
Securities and Exchange Commission. PetroQuest undertakes no duty to update or
revise these forward-looking statements.
PETROQUEST ENERGY, INC.
Consolidated Statements of Operations
(amounts in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
(unaudited)
Revenues:
Oil and gas sales $ 12,420 $ 9,330 $ 54,967 $ 22,267
Interest and other income (48) 90 314 294
-------- ------- -------- --------
12,372 9,420 55,281 22,561
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Expenses:
Lease operating expenses 2,032 994 7,172 2,831
Production taxes 274 318 1,096 944
Depreciation, depletion and amortization 7,681 2,399 23,094 6,386
General and administrative 1,573 1,255 4,752 3,248
Interest expense 429 65 2,111 78
-------- ------- -------- --------
11,989 5,031 38,225 13,487
-------- ------- -------- --------
Income from operations 383 4,389 17,056 9,074
Income tax expense (benefit) (759) (850) 5,411 (850)
-------- ------- -------- --------
Net income (loss) $ 1,142 $ 5,239 $ 11,645 $ 9,924
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Earnings (loss) per common share:
Basic $ 0.04 $ 0.17 $ 0.37 $ 0.37
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Diluted $ 0.03 $ 0.17 $ 0.34 $ 0.35
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Weighted average number of common shares:
Basic 32,526 30,126 31,818 26,919
Diluted 34,935 31,498 34,271 28,249