Exhibit (a)(2)(ix)
BARRETT RESOURCES CORPORATION
NEWS RELEASE
FOR IMMEDIATE RELEASE
- ---------------------
CONTACT:
Frank Keller/Robert Howard Paul Verbinnen/David Reno/Jonathan Gasthalter
Barrett Resources Citigate Sard Verbinnen
303-572-3900 212-687-8080
BARRETT RESOURCES REPORTS
FIRST QUARTER FINANCIAL RESULTS
Denver, Colo., April 30, 2001 -- Barrett Resources Corporation (NYSE: BRR)
reported a 628 percent increase in net income to $57.0 million, or $1.67 per
diluted share, for the first quarter ended March 31, 2001, as compared to $7.8
million, or 24 cents per diluted share, for the prior year first quarter.
Excluding non-cash mark to market expense adjustments related to gas sales that
do not qualify for hedge accounting treatment, the Company's recurring net
income was $48.1 million or $1.41 per diluted share. Cash flow before working
capital changes totaled $101.3 million, or $2.96 per diluted share, as compared
to $38.7 million, or $1.18 per diluted share, for the prior year first quarter.
During first quarter 2001, the Company averaged 323 MMcf (million cubic feet) of
gas production per day and 2,450 barrels of oil per day. Total equivalent
production averaged 338 MMcfe (million cubic feet of gas equivalent) per day, a
five percent increase from the fourth quarter of 2000. Natural gas production
accounted for 96 percent of total production on an energy equivalent basis. The
Piceance Basin, Powder River Basin Coal Bed Methane and Wind River Basin
properties accounted for 35, 25, and 12 percent of total production,
respectively.
Oil and gas production revenue increased 140 percent to $161.4 million for the
2001 quarter from $67.2 million reported in the first quarter of 2000. The
average gas price realized for the 2001 quarter was $5.38 per Mcf (thousand
cubic feet), a 153 percent increase over the $2.13 Mcf received in the 2000
quarter.
Peter A. Dea, Chairman and Chief Executive Officer commented, "Our strong
earnings, cash flow and production revenue are once again a reflection of our
Rocky Mountain natural gas focus and concentrated
high quality assets. Production is squarely on track to attain double digit
growth for the year. Additionally, the Company reduced bank debt by $108 million
to $140 million at March 31, 2001 from $248 million reported at December 31,
2000."
The following table sets out the Company's financial and production statistics:
3 Months Ended
-----------------------------------------------
March 31, March 31,
2001 2000 Change
-------------- ------------- ----------
Production revenue (millions) $161.4 $ 67.2 140%
Natural gas production (BCF) 29.1 28.8 1%
Average gas sales price ($/Mcf) $ 5.38 $ 2.13 153%
Oil production (MBbls) 221 231 (4%)
Average oil sales price ($/Bbl) $23.89 $25.16 (5%)
Net income per share $ 1.67 $ 0.24 596%
Recurring net income per share, excluding mark to market $ 1.41 $ 0.26 442%
Cash flow per share before working capital changes $ 2.96 $ 1.18 151%
March 31, 2001, the Company had cash of $23 million, total assets of $1.2
billion, and total debt of $303 million.
On January 1, 2001, the Company adopted SFAS 133 to account for derivative
instruments and hedging activities. As of March 31, 2001, the Company recorded a
pre-tax, non-cash mark to market valuation of its cash flow hedges as a
liability of $120.8 million, a reduction of $42.6 million from the valuation as
of January 1, 2001.
Barrett Resources is a Denver-based independent natural gas and oil exploration
and production company that is also involved in gas gathering, marketing and
trading activities. Barrett's properties are focused primarily in the Rocky
Mountain region of Colorado, Wyoming and Utah, the Mid-Continent area of Kansas,
and Oklahoma and the Gulf of Mexico region of offshore Texas and Louisiana. For
additional information about Barrett, please visit our Web site at www.brr.com.
Forward-Looking Statements
This press release may contain projections and other forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. Any such projections or statements include the Company's current views
with respect to future events, financial performance, Board decisions with
respect to modifying the process described herein, and expectations of responses
by potential qualified parties. No assurances can be given, however, that these
events will occur or that such projections will be achieved and actual results
could differ
materially from those projected. A discussion of important factors that could
cause actual results to differ materially from those projected is included in
the Company's periodic reports filed with the Securities and Exchange
Commission.
IN RESPONSE TO THE AMENDED TENDER OFFER COMMENCED BY SHELL OIL COMPANY THROUGH
ITS INDIRECT WHOLLY OWNED SUBSIDIARY SRM ACQUISITION COMPANY, BARRETT RESOURCES
CORPORATION WILL FILE WITH THE SEC ITS RECOMMENDATION TO STOCKHOLDERS REGARDING
THE TENDER OFFER.
IN RESPONSE TO ANY CONSENT SOLICITATION THAT MAY BE COMMENCED BY SHELL AND SRM
ACQUISITION, BARRETT WILL FILE WITH THE SEC A CONSENT REVOCATION STATEMENT AND
ANY OTHER SOLICITATION MATERIALS THAT MAY BE PREPARED BY BARRETT IN RESPONSE TO
SHELL'S CONSENT SOLICITATION. BARRETT HAS FILED WITH THE SEC A PRELIMINARY
CONSENT REVOCATION STATEMENT AND OTHER SOLICITATION MATERIALS IN RESPONSE TO A
PRELIMINARY CONSENT SOLICITATION STATEMENT FILED BY SHELL WITH THE SEC.
INVESTORS ARE STRONGLY ADVISED TO READ ANY DEFINITIVE CONSENT REVOCATION
STATEMENT, IF AND WHEN IT IS FILED AND BECOMES AVAILABLE, BECAUSE IT WILL
CONTAIN IMPORTANT INFORMATION. ANY DEFINITIVE CONSENT REVOCATION STATEMENT WOULD
BE FILED BY BARRETT WITH THE SEC.
STOCKHOLDERS AND INVESTORS WILL BE ABLE TO OBTAIN A FREE COPY OF ANY DEFINITIVE
CONSENT REVOCATION STATEMENT (IF AND WHEN FILED AND AVAILABLE) AND OTHER
RELEVANT DOCUMENTS ON THE SEC'S WEB SITE AT WWW.SEC.GOV. ANY DEFINITIVE CONSENT
REVOCATION STATEMENT AND RELATED MATERIALS MAY ALSO BE OBTAINED FOR FREE BY
DIRECTING A REQUEST TO BARRETT RESOURCES CORPORATION--INVESTOR RELATIONS AT
(303) 572-3900.
CERTAIN INFORMATION REGARDING PERSONS
WHO MAY BE DEEMED TO BE PARTICIPANTS
IN ADDITION, THE IDENTITY OF PEOPLE WHO, UNDER SEC RULES, MAY BE CONSIDERED
PARTICIPANTS IN THE SOLICITATION OF CONSENT REVOCATIONS FROM BARRETT
STOCKHOLDERS AND SUCH PERSONS' HOLDINGS OF BARRETT COMMON STOCK ARE CONTAINED IN
BARRETT'S PRELIMINARY CONSENT REVOCATION STATEMENT FILED WITH THE SEC UNDER
REGULATION 14A.
###
Encl.: A.) Income Statement
B.) Balance Sheet
C.) Statement of Cash Flows
BARRETT RESOURCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited)
Three Months Ended
---------------------
March 31, March 31,
2001 2000
--------- ---------
Operating revenues:
Oil and gas production $161,430 $67,204
Other income 3,553 1,907
-------- -------
164,983 69,111
Operating expenses:
Lease operating expense 9,641 5,392
Transportation and gathering 10,572 6,503
Production tax 16,341 5,964
Depreciation, depletion and amortization 26,309 25,211
General and administrative 5,603 7,825
-------- -------
68,466 50,895
-------- -------
Operating income 96,517 18,216
Other income and (expense):
Interest income 371 207
Interest expense (5,766) (6,097)
Trading activities, net 3,440 297
Other (2,608) -
-------- -------
(4,563) (5,593)
-------- -------
Income for the period before income tax 91,954 12,623
Provision for income taxes 34,942 4,797
-------- -------
Net income for the period $ 57,012 $ 7,826
======== =======
Net income per share and common
share equivalent - diluted $ 1.67 $ 0.24
======== =======
Recurring net income per share and common
share equivalent - diluted $ 1.41 $ 0.26
======== =======
Weighted average number of shares of common stock
and common stock equivalents - diluted 34,212 32,888
======== =======
A
BARRETT RESOURCES CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
ASSETS
March 31, December 31,
2001 2000
----------- ------------
(Unaudited)
Current assets:
Cash and cash equivalents $ 22,830 $ 25,454
Receivables, net 177,519 297,766
Gas inventory held for sale, at market 855 27,418
Deferred income tax asset 26,372 -
Other current assets 18,436 29,042
---------- ----------
Total current assets 246,012 379,680
Property and equipment, net 907,494 869,606
Other assets, net 9,264 4,547
---------- ----------
$1,162,770 $1,253,833
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 147,352 $ 234,739
Amounts payable to oil and gas property 13,144 18,672
owners
Production taxes payable 44,039 39,229
Accrued and other liabilities 20,571 20,917
Unrealized losses on mark to market 12,393 47,745
transactions - trading
Unrealized losses on mark to market
transactions - SFAS 133 69,400 -
---------- ----------
Total current liabilities 306,899 361,302
Long term debt 295,005 406,269
Unrealized losses on mark to market
transactions - trading 36,340 31,446
Unrealized losses on mark to market
transactions - SFAS 133 51,439 -
Other long-term liabilities 20,000 -
Deferred income taxes 52,560 39,003
Stockholders' equity:
Preferred stock, $.001 par value: 1,000,000
shares authorized, none outstanding - -
Common stock, $.01 par value: 45,000,000
shares authorized, 33,461,004 outstanding
(33,394,063 at December 31, 2000) 335 334
Additional paid-in capital 298,534 296,043
Retained earnings 176,446 119,436
Accumulated other comprehensive loss (74,525) -
Treasury stock, at cost (263) -
---------- ----------
Total stockholders' equity 400,527 415,813
---------- ----------
$1,162,770 $1,253,833
========== ==========
B
BARRETT RESOURCES CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
Three Months Ended
-------------------------
March 31, March 31,
2001 2000
--------- ---------
Cash flows from operations:
Net income $ 57,011 $ 7,826
Adjustments needed to reconcile to
net cash flow provided by operations:
Depreciation, depletion and amortization 26,513 25,312
Deferred income taxes 33,104 4,545
Unrealized losses on mark to market transactions (14,375) 1,029
Other non-cash items (944) -
--------- --------
101,309 38,712
Change in current assets and liabilities:
Accounts receivable 120,247 (46,564)
Other current assets 21,556 (2,183)
Accounts payable (87,387) 36,736
Amounts due oil and gas owners (5,528) 3,743
Production taxes payable 4,810 3,121
Accrued and other liabilities (1,520) (2,508)
--------- --------
Net cash flow provided by operations 153,487 31,057
--------- --------
Cash flows from investing activities:
Proceeds from sale of oil and gas properties 249 16,377
Acquisition of property and equipment (64,522) (89,655)
--------- --------
Net cash flow used in investing activities (64,273) (73,278)
--------- --------
Cash flows from financing activities:
Proceeds from issuance of common stock 1,926 403
Proceeds from long-term borrowing 64,000 58,000
Payment on long-term debt (172,843) (28,809)
Other 15,079 -
--------- --------
Net cash flow (used in) provided by financing activities (91,838) 29,594
--------- --------
Decrease in cash and cash equivalents (2,624) (12,627)
Cash and cash equivalents at beginning of period 25,454 20,634
--------- --------
Cash and cash equivalents at end of period $ 22,830 $ 8,007
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C