EXHIBIT 99.2
(MERIDIAN RESOURCE CORPORATION LOGO) NEWS
THE MERIDIAN RESOURCE CORPORATION PROVIDES FINANCIAL
UPDATE FOR SECOND QUARTER 2004
Houston, Texas - July 21, 2004 - The Meridian Resource Corporation (NYSE: TMR)
(the "Company") today provided preliminary operating and financial guidance for
the second quarter of 2004. The Company expects production for the second
quarter of 2004 to total between 8.7 and 9.0 billion cubic feet of gas
equivalent, or 95 to 100 million cubic feet of gas equivalent per day. The
Company expects earnings per share to total $0.08 to $0.11 per fully diluted
share outstanding, in line with current consensus estimates. Discretionary cash
flow for the second quarter of 2004 is expected to total $36.5 million to $39.0
million(1).
Since March 31, 2004, the Company has paid an aggregate of $8 million toward its
senior secured credit agreement and its subordinated debt, bringing the balances
due under each to $114 million and $5 million, respectively. The Company
continues to strive to reduce debt and develop additional liquidity in its
balance sheet as part of its overall business plan to focus on growth through
its exploration program in south Louisiana.
This financial update is being provided to investors generally pursuant to
Regulation FD in connection with a previously announced offering of shares of
common stock by Meridian and information provided in connection with such
offering.
The Meridian Resource Corporation is an independent oil and natural gas company
engaged in the exploration, exploitation and development of oil and natural gas
onshore in south Louisiana and the Texas Gulf Coast, and offshore in the Gulf of
Mexico. Meridian has access to an extensive inventory of seismic data for its
targeted areas and owns rights to mineral leases in its existing project areas,
including 175,000 net acres of leases and options relating to its Biloxi
Marshlands project in south Louisiana. Meridian is headquartered in Houston,
Texas, and has a field office in Weeks Island, Louisiana.
(1) Expected discretionary cash flow is reconciled as follows (in millions):
<Table>
<Caption>
Minimum Maximum
------- -------
Discretionary cash flow ..........................................$36.5 $39.0
Adjustments:
Changes in working capital .................................... (3.4) (3.4)
----- -----
Net cash provided by operating activities ........................$33.1 $33.1
===== =====
</Table>
We refer to a non-GAAP financial measure we call "discretionary cash flow."
Management believes this measure is a financial indicator of our ability to
internally fund capital expenditures and service outstanding debt. Management
also believes this non-GAAP financial measure of cash flow is useful information
to investors because it is widely used by professional research analysts in the
valuation, comparison, rating and investment recommendations of companies within
the oil and gas exploration and production industry. Discretionary cash flow
should not be considered an alternative to net cash provided by operating
activities or net income, as defined by GAAP.
SAFE HARBOR STATEMENT AND DISCLAIMER
Statements identified by the words "expects," "projects," "plans," and certain
of the other foregoing statements may be deemed "forward-looking statements."
Although Meridian believes that the expectations reflected in such
forward-looking statements are reasonable, these statements involve risks and
uncertainties that may cause actual future activities and results to be
materially different from those suggested or described in this press release.
These include risks inherent in the drilling of oil and natural gas wells,
including risks of fire, explosion, blowout, pipe failure, casing collapse,
unusual or unexpected formation pressures, environmental hazards, and other
operating and production risks inherent in oil and natural gas drilling and
production activities, which may temporarily or permanently reduce production or
cause initial production or test results to not be indicative of future well
performance or delay the timing of sales or completion of drilling operations;
risks with respect to oil and natural gas prices, a material decline in which
could cause the Company to delay or suspend planned drilling operations or
reduce production levels; and risks relating to the availability of capital to
fund drilling operations that can be adversely affected by adverse drilling
results, production declines and declines in oil and gas prices.
These and other risks are described in the Company's filings with the Securities
and Exchange Commission, including its reports on Form 10-K and Form 10-Q.
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FOR MORE INFORMATION CONTACT:
John Collins at (281)-597-7000
Meridian Resource Corporation Website: www.tmrc.com
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1401 Enclave Parkway, Suite 300 o Houston, Texas 77077
(281) 597-7000 o Fax (281) 558-5744 o www.tmrc.com
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