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[PETROQUEST ENERGY, INC. LOGO]
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 FIRST QUARTER RESULTS
Lafayette, Louisiana - May 8, 2003 - PetroQuest Energy, Inc. (NASDAQ: PQUE)
announced today net income for the quarter ended March 31, 2003 of $2,993,000 or
$0.07 per share, as compared to first quarter 2002 net loss of $364,000 or
$(0.01) per share. First quarter 2003 net income includes an after-tax gain of
$849,000 for the cumulative effect of a change in accounting principle related
to the adoption of Statement of Accounting Standards No. 143, "Accounting For
Asset Retirement Obligations." Net cash flow provided by operating activities
for the first quarter of 2003 was $6,688,000, as compared to $4,067,000 for the
comparable 2002 period. Net cash flow provided by operating activities before
working capital changes for the first quarter of 2003 was $12,002,000, as
compared to $6,745,000 for the comparable 2002 period. See the attached schedule
for a reconciliation of net cash flow provided by operating activities to net
cash flow provided by operating activities before working capital changes.
Oil and gas sales during the first quarter of 2003 increased 54% to $16,154,000
as compared to the first quarter of 2002. This increase is the result of higher
product prices. Stated on a Mcfe basis, unit prices received during the first
quarter of 2003 were 94% higher than the prices received during the comparable
2002 period.
The following table sets forth certain information with respect to the oil and
gas operations of the Company for the three-month periods ended March 31, 2003
and 2002:
Three Months Ended
March 31,
2003 2002
---------- ----------
Production:
Oil (Bbls) 234,830 234,508
Gas (Mcf) 1,606,318 2,384,964
Total Production (Mcfe) 3,015,298 3,792,012
Sales:
Total Oil Sales $7,235,119 $4,853,441
Total Gas Sales $8,918,569 $5,655,498
Average sales prices:
Oil (per Bbl) $30.81 $20.70
Gas (per Mcf) $5.55 $2.37
Per Mcfe $5.36 $2.77
The following initiates guidance for the second quarter of 2003:
Guidance for
Description 2nd Quarter 2003
- ----------- ----------------
Production volumes (MMcfe/d) 21 - 23
Percent gas 50%
Expenses:
Lease operating expenses (per Mcfe) $1.20 - $1.30
Production taxes (per Mcfe) $0.06 - $0.08
Depreciation, depletion and amortization (per Mcfe) $2.80 - $2.90
General and administrative (in millions) $1.2 - $1.4
Interest expense (in millions) $.100 - $.125
Effective tax rate (all deferred) 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 Data)
Three Months Ended
March 31,
2003 2002
-------- --------
Revenues:
Oil and gas sales $ 16,154 $ 10,509
Interest and other income (24) (12)
-------- --------
16,130 10,497
-------- --------
Expenses:
Lease operating expenses 2,762 2,349
Production taxes 210 202
Depreciation, depletion and amortization 8,473 7,094
General and administrative 1,223 1,200
Accretion of asset retirement obligation 140 -
Interest expense 23 211
-------- --------
12,831 11,056
-------- --------
Income from operations 3,299 (559)
Income tax expense 1,155 (195)
-------- --------
Income (loss) before cumulative effect of
change in accounting principle $ 2,144 $ (364)
Cumulative effect of change in accounting principle 849 -
-------- --------
Net income (loss) $ 2,993 $ (364)
======== ========
Earnings (loss) per common share:
Basic
Income (loss) before cumulative effect of
change in accounting principle $ 0.05 $ (0.01)
Cumulative effect of change in accounting principle 0.02 -
-------- --------
Net income (loss) $ 0.07 $ (0.01)
======== ========
Diluted
Income (loss) before cumulative effect of
change in accounting principle $ 0.05 $ (0.01)
Cumulative effect of change in accounting principle 0.02 -
-------- --------
Net income (loss) $ 0.07 $ (0.01)
======== ========
Weighted average number of common shares:
Basic 42,852 34,724
======== ========
Diluted 44,168 34,724
======== ========
PETROQUEST ENERGY, INC.
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)
Three Months Ended
March 31,
2003 2002
-------- --------
Net cash provided by operating activities $ 6,688 $ 4,067
Changes in working capital accounts 5,314 2,678
-------- --------
Net cash flow provided by operations before working capital changes $ 12,002 $ 6,745
======== ========
Note: Management believes that net cash flow provided by operating activities
before working capital changes is relevant and useful information, which
is commonly used by analysts, investors and other interested parties in
the oil and gas industry as a financial indicator of an oil and gas
company's ability to generate cash used to internally fund exploration and
development activities and to service debt. Net cash flow provided by
operating activities before working capital changes is not a measure of
financial performance prepared in accordance with generally accepted
accounting principles ("GAAP") and should not be considered in isolation
or as an alternative to net cash flow provided by operating activities. In
addition, since net cash flow provided by operating activities before
working capital changes is not a term defined by GAAP, it might not be
comparable to similarly titled measures used by other companies.