EXHIBIT 99.1
[PETROQUEST ENERGY, INC. LETTERHEAD]
NEWS RELEASE
FOR IMMEDIATE RELEASE
For further information, contact: Robert R. Brooksher, Vice President -
Corporate Communications
(337) 232-7028
PETROQUEST ENERGY, INC. ANNOUNCES THIRD QUARTER 2002 RESULTS
Lafayette, Louisiana - November 6, 2002 - PetroQuest Energy, Inc. (NASDAQ: PQUE)
announced today net income for the quarter ended September 30, 2002 of $950,000
or $0.02 per share, compared to third quarter 2001 net income of $2,508,000 or
$0.07 per share. Net cash flow from operations before working capital changes
for the third quarter of 2002 was $7,694,000 or $0.19 per share as compared to
$12,015,000 or $0.34 per share for the comparable 2001 period. For the first
nine months of 2002, net income was $841,000 or $0.02 per share and net cash
flow from operations before working capital changes totaled $21,829,000 or $0.57
per share. Net income and net cash flow from operations before working capital
changes for the first nine months of 2001 were $10,503,000 or $0.31 per share,
and $33,633,000 or $1.00 per share, respectively.
Oil and gas sales during the third quarter of 2002 were $11,220,000 as compared
to $15,611,000 in the third quarter of 2001. For the first nine months of 2001
and 2002, sales were $33,085,000 and $42,546,000, respectively. Stated on a Mcfe
basis, unit prices received during the third quarter of 2002 were 6% higher and
unit prices received during the first nine months of 2002 were 25% lower than
the prices received during the comparable 2001 periods.
"Our recent equity offering will better position us to exploit our extensive
prospect inventory. We sold 5,000,000 shares of common stock at $4.25 per share
and granted the underwriters an over-allotment option to purchase another
750,000 shares," said Charles Goodson, PetroQuest Chairman and Chief Executive
Officer. "In the next seven to ten days, we plan to begin drilling our Redfish
and Berry Lake #2 Prospects with results expected by the end of the year. Our
drilling program for the first six months of 2003 includes plans for six wells
exposing us to approximately 160 Bcfe of net unrisked reserves."
The following table sets forth certain information with respect to the oil and
gas operations of the Company for the three and nine-month periods ended
September 30, 2002 and 2001.
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- ----------------------------
2002 2001 2002 2001
---------- ---------- ----------- -----------
Production:
Oil (Bbls) 234,167 235,531 688,801 600,073
Gas (Mcf) 1,461,924 2,830,053 5,716,417 5,875,142
Total Production (Mcfe) 2,884,926 4,243,239 9,849,223 9,475,580
Sales:
Total oil sales $6,339,813 $6,113,127 $16,732,483 $16,073,126
Total gas sales $4,879,750 $9,497,928 $16,352,614 $26,472,954
Average sales prices:
Oil (per Bbl) $26.73 $25.95 $24.29 $26.79
Gas (per Mcf) $3.34 $3.36 $2.86 $4.51
Per Mcfe $3.89 $3.68 $3.36 $4.49
EXHIBIT 99.1
Total production deferred in the third quarter due to the effects of Tropical
Storm Isidore was approximately 100 MMcfe or approximately 3% of third quarter
production.
The Company will hold its 2002 third quarter earnings conference call on
Wednesday, November 6, 2002 at 9:00 a.m. Central Standard Time. To listen to the
live webcast, please log on to the Company's website at www.petroquest.com and
follow the webcast links.
The following updates guidance for the fourth quarter of 2002:
Guidance for
Description 4th Quarter 2002
- ----------- ----------------
Production volumes (MMcfe/d) 37 - 39
Percent gas 55%
Costs:
Lease operating costs (per Mcfe) $.65 - $.70
Production taxes (per Mcfe) $.06 - $.08
Depreciation, depletion and amortization (per Mcfe) $1.95 - $2.05
General and administrative (in millions) $1.30 - $1.50
Interest expense (in millions) $.150 - $.175
Effective tax rate (all deferred) 35%
Total production deferred in the fourth quarter due to the effects of Hurricane
Lili was approximately 500 MMcfe. Operations have been restored with current
total production at approximately 48 MMcfe/d net to PetroQuest.
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.
EXHIBIT 99.1
PETROQUEST ENERGY, INC.
Consolidated Statements of Operations
(unaudited)
(Amounts In Thousands, Except Per Share Data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- --------------------------
2002 2001 2002 2001
--------- --------- --------- ---------
Revenues:
Oil and gas sales $ 11,220 $ 15,611 $ 33,085 $ 42,546
Interest and other income (196) (143) (462) 363
--------- --------- --------- ---------
11,024 15,468 32,623 42,909
--------- --------- --------- ---------
Expenses:
Lease operating expenses 2,487 1,984 7,240 5,140
Production taxes 119 317 441 822
Depreciation, depletion and amortization 5,916 7,223 19,638 15,413
General and administrative 1,016 1,264 3,758 3,179
Interest expense 25 699 252 1,682
--------- --------- --------- ---------
9,563 11,487 31,329 26,236
--------- --------- --------- ---------
Income from operations 1,461 3,981 1,294 16,673
Income tax expense 511 1,473 453 6,170
--------- --------- --------- ---------
Net income $ 950 $ 2,508 $ 841 $ 10,503
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Earnings per common share:
Basic $ 0.03 $ 0.08 $ 0.02 $ 0.33
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Diluted $ 0.02 $ 0.07 $ 0.02 $ 0.31
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Weighted average number of common shares:
Basic 37,852 32,471 36,815 31,579
========= ========= ========= =========
Diluted 39,820 34,875 38,575 33,602
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