EXHIBIT 99.1
[PETROQUEST ENERGY, INC. LOGO]
NEWS RELEASE
For further information, contact: Robert R. Brooksher, Vice President -
Corporate Communications
(337) 232-7028
PETROQUEST ENERGY ANNOUNCES SECOND QUARTER RESULTS
Lafayette, Louisiana - July 30, 2003 - PetroQuest Energy, Inc. (NASDAQ: PQUE)
announced today a net loss for the quarter ended June 30, 2003 of $1,698,000 or
$(0.04) per share, compared to second quarter 2002 net income of $255,000 or
$0.01 per share. Net cash flow provided by operating activities for the second
quarter of 2003 was $6,363,000 as compared to $10,101,000 for the comparable
2002 period. Net cash flow provided by operating activities before working
capital changes for the second quarter of 2003 was $5,046,000, as compared to
$7,390,000 for the comparable 2002 period. For the first six months of 2003, the
Company reported net income of $1,295,000 or $0.03 per share. Net income for the
first six months of 2003 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." The Company reported a net loss of $109,000 or $0.00 per share for
the first six months of 2002. For the first six months of 2003, net cash flow
provided by operating activities was $13,051,000 and net cash flow provided by
operating activities before working capital changes was $17,048,000. Net cash
flow provided by operating activities and net cash flow provided by operating
activities before working capital changes for the first six months of 2002 were
$14,168,000 and $14,135,000, respectively. 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 second quarter of 2003 decreased 20% to $9,060,000
as compared to $11,357,000 in the second quarter of 2002. For the first six
months of 2003, sales increased 15% to $25,214,000 from $21,866,000 in the first
six months of 2002. Stated on an Mcfe basis, unit prices received during the
second quarter and first six months of 2003 were 32% and 63% higher,
respectively, than the prices received during the comparable 2002 periods.
The following table sets forth certain information with respect to the oil and
gas operations of the Company for the three and six-month periods ended June 30,
2003 and 2002:
Three Months Ended Six Months Ended
June 30, June 30,
------------------------- ---------------------------
2003 2002 2003 2002
---------- ---------- ----------- -----------
Production:
Oil (Bbls) 183,034 217,126 417,864 451,634
Gas (Mcf) 845,931 1,916,825 2,452,248 4,301,791
Total Production (Mcfe) 1,944,135 3,219,581 4,959,432 7,011,595
Sales:
Total oil sales $5,013,976 $5,539,229 $12,249,095 $10,392,670
Total gas sales $4,046,220 $5,817,365 $12,964,789 $11,472,862
Average sales prices:
Oil (per Bbl) $27.39 $25.51 $29.31 $23.01
Gas (per Mcf) $4.78 $3.03 $5.29 $2.67
Per Mcfe $4.66 $3.53 $5.08 $3.12
The following initiates guidance for the third quarter of 2003:
Guidance for
Description 3rd Quarter 2003
- ----------- ----------------
Production volumes (MMcfe/d) 19.5-21.5
Percent gas 50%
Expenses:
Lease operating expenses (per Mcfe) $1.25-$1.35
Production taxes (per Mcfe) $0.12-$0.13
Depreciation, depletion and amortization (per Mcfe) $2.95-$3.05
General and administrative (in millions) $1.10-$1.30
Interest expense (in millions) $.075-$1.00
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.
Consolidate Statements of Operations
(unaudited)
(Amounts In Thousands, Except Per Share Data)
Three Months Ended Ended Six Months Ended
June 30, June 30,
-------------------------- -------------------------
2003 2002 2003 2002
-------- ------- ------- --------
Revenues:
Oil and gas sales $ 9,060 $11,357 $25,214 $ 21,866
Interest and other income 41 15 52 36
-------- ------- ------- --------
9,101 11,372 25,266 21,902
-------- ------- ------- --------
Expenses:
Lease operating expenses 2,504 2,404 5,266 4,752
Production taxes 125 120 335 322
Depreciation, depletion and amortization 5,878 6,627 14,351 13,722
General and administrative 1,126 1,542 2,348 2,743
Accretion of asset retirement obligation 136 -- 276 --
Interest expense 230 17 254 227
Derivative effects 1,714 270 1,749 304
-------- ------- ------- --------
11,713 10,980 24,579 22,070
-------- ------- ------- --------
Income (loss) from operations (2,612) 392 687 (168)
Income tax expense (benefit) (914) 137 241 (59)
-------- ------- ------- --------
Income (loss) before cumulative effect of
change in accounting principle $ (1,698) $ 255 $ 446 $ (109)
Cumulative effect of change in accounting
principle -- -- 849 --
Net income (loss) $ (1,698) $ 255 $ 1,295 $ (109)
======== ======= ======= ========
Earnings (loss) per common share:
Basic
Income (loss) before cumulative effect of
change in accounting principle $ (0.04) $ 0.01 $ 0.01 $ --
Cumulative effect of change in
accounting principle -- -- 0.02 --
Net income (loss) $ (0.04) $ 0.01 $ 0.03 $ --
-------- ------- ------- --------
Diluted
Income (loss) before cumulative effect of
change in accounting principle $ (0.04) $ 0.01 $ 0.01 $ --
Cumulative effect of change in
accounting principle -- -- 0.02 --
Net income (loss) $ (0.04) $ 0.01 $ 0.03 $ --
Weighted average number of common shares:
Basic 42,895 37,883 42,874 36,287
======== ======= ======= ========
Diluted 42,895 40,188 43,880 36,287
======== ======= ======= ========
PETROQUEST ENERGY, INC.
Non-GAAP Disclosure Reconciliation
(Amounts In Thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- --------------------
2003 2002 2003 2002
------- -------- ------- --------
Net cash flow provided by operating activities $ 6,363 $ 10,101 $13,051 $ 14,168
Changes in working capital accounts (1,317) (2,711) 3,997 (33)
------- -------- ------- --------
Net cash flow provided by operations before
working capital changes $ 5,046 $ 7,390 $17,048 $ 14,135
======= ======== ======= ========
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.