Exhibit 99.1
PRESS RELEASE
(REMINGTON OIL AND GAS CORPORATION LOGO)
FOR IMMEDIATE RELEASE
CONTACT: STEVEN J. CRAIG
SR. VICE PRESIDENT
(214) 210-2675
REMINGTON OIL AND GAS CORPORATION ANNOUNCES FINANCIAL
RESULTS FOR THE SECOND QUARTER OF 2003
Dallas, TX, July 31, 2003 - Remington Oil and Gas Corporation (NYSE: REM)
announced the following second quarter and year to date total revenues and
earnings:
<Table>
<Caption>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ---------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
(In thousands, except per share data)
-------------------------------------------------------------
TOTAL REVENUES 46,003 31,700 88,340 51,117
NET INCOME 12,264 6,252 23,951 6,509
BASIC INCOME PER SHARE 0.46 0.24 0.91 0.27
DILUTED INCOME PER SHARE 0.44 0.22 0.86 0.25
NET CASH FLOW PROVIDED BY OPERATIONS 38,212 26,663 63,216 29,660
PRODUCTION MCFE 8,537 7,574 15,592 14,537
</Table>
Net income for the second quarter of 2003 increased by $6.0 million, or 96%, to
$12.3 million, or $0.46 basic income per share and $0.44 diluted income per
share compared to second quarter of 2002. Net income for the first six months of
2003 increased by $17.4 million, or 268%, to $24.0 million or $0.91 basic income
per share and $0.86 diluted income per share compared to the first six months of
2002. Net income in 2003 increased primarily due to increased production and
commodity prices partially offset by higher exploration expenses and higher
operating costs due to new producing properties.
Net cash flow provided by operations increased by $11.5 million to $38.2 million
during the second quarter and by $33.6 million to $63.2 million for the first
half of 2003 compared to the same periods in the prior year. Net cash flow
provided by operations before changes in working capital for the second quarter
of 2003 increased by $16.8 million, or 80%, compared to the second quarter of
2002. Net cash flow provided by operations before changes in working capital for
the first six months of 2003 increased by $38.5 million, or 110%, compared to
the first six months of 2002. The following table reconciles net cash flow
provided by operations to net cash flow provided by operations before changes in
working capital accounts.
-more-
<Table>
<Caption>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------------- ---------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
(IN THOUSANDS)
---------------------------------------------------------------
Net cash flow provided by operations 38,212 26,663 63,216 29,660
Net changes in working capital accounts * (430) (5,692) 10,235 5,268
---------- ---------- ---------- ----------
Net cash flow provided by operations
before changes in working capital accounts 37,782 20,971 73,451 34,928
========== ========== ========== ==========
</Table>
* Includes the increases or decreases in accounts receivable, prepaid expenses
and other current assets, and accounts payable and accrued liabilities.
Total production increased by 1.0 Bcfe, or 13%, to 8.5 Bcfe during the second
quarter of 2003. Total production for the first half of 2003 increased by 1.1
Bcfe, or 7%, to 15.6 Bcfe. The increase is primarily the result of production
from new properties in the Gulf of Mexico. Average oil prices increased by 13%
to $28.15 per barrel during the second quarter of 2003 and increased by 35% to
$30.09 per barrel during the first six months of 2003. Average gas prices
increased by 71% to $5.67 per Mcf during the second quarter of 2003 and
increased by 102% to $5.97 per Mcf during the first six months of 2003.
Operating costs (which include direct operating expenses, transportation,
severance taxes, and delay rentals) for the three-month periods were $5.3
million ($0.62/Mcfe) during 2003 versus $4.5 million ($0.59/Mcfe) during 2002.
For the six-month periods operating costs were $9.7 million ($0.62 per Mcfe)
during 2003 and $7.7 million ($0.53 per Mcfe) in 2002. Operating costs increased
primarily due to new operated properties. In addition, increases in delay rental
expense for unproved properties, insurance rates, and repairs expense on
existing properties increased operating costs and expenses.
Exploration expense increased by $1.4 million during the second quarter of 2003
and by $4.8 million during the first six months of 2003 primarily because of
increased dry hole expense. Dry hole expense for 2003 includes 6 wells in the
Gulf of Mexico, one well in Mississippi and one well in South Texas for a total
cost of $12.3 million compared to $8.3 million dry hole expense in 2002. During
the second quarter of 2003 dry hole expense totaled $5.8 million compared to
$4.3 million during the second quarter of 2002.
Depreciation, depletion, and amortization expense increased from $10.3 million
($1.35 per Mcfe) during the second quarter of 2002 to $12.8 million ($1.50 per
Mcfe) during the second quarter of 2003 and from $19.8 million ($1.36 per Mcfe)
during the first six months of 2002 to $23.5 million ($1.51 per Mcfe) during the
first six months of 2003. The increase in the rate is the result of the increase
in production from properties with higher property costs per Mcfe.
General and administrative expenses have increased slightly due to employee
related expense, but have remained at $0.26 per Mcfe for the three months ended
June 30, 2003 and 2002 and at $0.25 per Mcfe for the six months ended June 30,
2003 and 2002. Included in general and administrative expenses is non-cash stock
based compensation expense which is $0.04 and $0.05 per Mcfe during the three
months ended June 30, 2003 and 2002, respectively and $0.05 and $0.06 per Mcfe
for the six months ended June 30, 2003 and 2002, respectively.
-more-
Interest and financing expenses increased slightly during the second quarter of
2003 compared to the
second quarter of 2002, but decreased by 31% because of lower average bank debt
during the first six months of 2003 compared to 2002. On a per Mcfe basis
interest and financing costs are unchanged at $0.06 per Mcfe during the second
quarters of 2003 and 2002, and are 36% lower in the first six months of 2003
compared to the same period in 2002.
In this report we have combined into one line item of general and administrative
expense what we previously reported separately as stock based compensation and
other general and administrative expenses. Further, in previous reports,
production taxes were treated as a reduction in revenue. In this report
production taxes have been reclassified to operating expenses for all periods
presented.
James A. Watt, President and Chief Executive Officer said, "Our excellent
financial results for the quarter were driven by increased production volumes
and higher commodity prices. On a Mcfe basis our costs were within guidance
provided to the marketplace. We intend to maintain our high activity level for
the remainder of the year investing our cash flow in new opportunities for our
shareholders."
Remington Oil and Gas Corporation is an independent oil and gas exploration and
production company headquartered in Dallas, Texas, with operations concentrating
in the onshore and offshore regions of the Gulf Coast.
Statements concerning future revenues and expenses, results of exploration,
exploitation, development and acquisition expenditures, and reserve levels are
forward-looking statements. These statements are based on assumptions concerning
commodity prices, drilling results and production, administrative and interest
costs that management believes are reasonable based on currently available
information; however, management's assumptions and the Company's future
performance are subject to a wide range of business risks and there is no
assurance that these goals and projections can or will be met. Further
information is available in the Company's filings with the Securities and
Exchange Commission, which are incorporated by this reference.
# # #
REMINGTON OIL AND GAS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
<Table>
<Caption>
June 30, December 31,
ASSETS 2003 2002
------------ ------------
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 14,829 $ 14,929
Accounts receivable 38,773 32,555
Prepaid expenses and other current assets 7,644 4,978
------------ ------------
TOTAL CURRENT ASSETS 61,246 52,462
------------ ------------
PROPERTIES
Oil and natural gas properties (successful-efforts method) 571,918 510,921
Other properties 3,253 3,182
Accumulated depreciation, depletion and amortization (299,339) (279,722)
------------ ------------
TOTAL PROPERTIES 275,832 234,381
------------ ------------
OTHER ASSETS 2,405 2,150
------------ ------------
TOTAL ASSETS $ 339,483 $ 288,993
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 46,250 $ 47,523
Short-term notes payable and current portion of other long-term payables 2,332 1,715
------------ ------------
TOTAL CURRENT LIABILITIES 48,582 49,238
------------ ------------
LONG-TERM LIABILITIES
Notes payable 37,400 37,400
Other long-term payables 765 1,503
Asset retirement obligation 13,127 --
Deferred income tax liability 18,992 7,192
------------ ------------
TOTAL LONG-TERM LIABILITIES 70,284 46,095
------------ ------------
TOTAL LIABILITIES 118,866 95,333
------------ ------------
Commitments and contingencies
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value, 25,000,000 shares authorized, no shares
outstanding -- --
Common stock, $.01 par value, 100,000,000 shares authorized,
26,868,417 shares issued and 26,742,672 shares outstanding in 2003,
26,327,195 shares issued and 26,236,459 shares outstanding in 2002 268 263
Additional paid-in capital 120,576 115,827
Restricted common stock 3,505 5,468
Unearned compensation (2,323) (3,192)
Retained earnings 100,222 76,271
Treasury stock (1,631) (977)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 220,617 193,660
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 339,483 $ 288,993
============ ============
</Table>
REMINGTON OIL AND GAS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share amounts)
<Table>
<Caption>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------- -------------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
REVENUES
Oil sales $ 12,584 $ 11,356 $ 26,237 $ 18,423
Gas sales 33,196 16,050 61,847 28,357
Gain on sale of assets -- 4,087 -- 4,087
Other income 223 207 256 250
------------ ------------ ------------ ------------
TOTAL REVENUES 46,003 31,700 88,340 51,117
------------ ------------ ------------ ------------
COSTS AND EXPENSES
Operating 5,277 4,465 9,669 7,720
Exploration 6,366 4,958 13,464 8,622
Depreciation, depletion and amortization 12,792 10,250 23,549 19,818
General and administrative 2,214 1,945 3,924 3,650
Interest and financing 485 464 885 1,293
------------ ------------ ------------ ------------
TOTAL COSTS AND EXPENSES 27,134 22,082 51,491 41,103
------------ ------------ ------------ ------------
INCOME BEFORE TAXES 18,869 9,618 36,849 10,014
------------ ------------ ------------ ------------
Income tax expense 6,605 3,366 12,898 3,505
------------ ------------ ------------ ------------
NET INCOME $ 12,264 $ 6,252 $ 23,951 $ 6,509
============ ============ ============ ============
BASIC INCOME PER SHARE $ 0.46 $ 0.24 $ 0.91 $ 0.27
============ ============ ============ ============
DILUTED INCOME PER SHARE $ 0.44 $ 0.22 $ 0.86 $ 0.25
============ ============ ============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING (BASIC) 26,533 25,953 26,436 24,424
============ ============ ============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING (DILUTED) 27,844 27,889 27,910 26,316
============ ============ ============ ============
PRODUCTION
Oil (MBbls) 447 457 872 825
Gas (MMcf) 5,855 4,832 10,360 9,587
Total Production Mcfe 8,537 7,574 15,592 14,537
AVERAGE PRICES
Oil $ 28.15 $ 24.85 $ 30.09 $ 22.33
Gas $ 5.67 $ 3.32 $ 5.97 $ 2.96
</Table>
REMINGTON OIL AND GAS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
<Table>
<Caption>
Six Months Ended
June 30,
--------------------------------
2003 2002
------------ ------------
CASH FLOW PROVIDED BY OPERATIONS
NET INCOME $ 23,951 $ 6,509
Adjustments to reconcile net income
Depreciation, depletion and amortization 23,549 19,818
Deferred income taxes 12,898 3,505
Amortization of deferred charges 116 94
Dry hole and impairment costs 12,759 8,278
Cash paid for dismantlement costs (614) (42)
Stock based compensation 792 853
(Gain) on sale of properties -- (4,087)
Changes in working capital
(Increase) in accounts receivable (6,223) (10,274)
(Increase) in prepaid expenses and other current assets (2,739) (1,314)
(Decrease) increase in accounts payable and accrued liabilities (1,273) 6,320
------------ ------------
NET CASH FLOW PROVIDED BY OPERATIONS 63,216 29,660
------------ ------------
CASH FROM INVESTING ACTIVITIES
Payments for capital expenditures (63,460) (49,704)
Proceeds from property sales -- 7,669
------------ ------------
NET CASH (USED IN) INVESTING ACTIVITIES (63,460) (42,035)
------------ ------------
CASH FROM FINANCING ACTIVITIES
Proceeds from note payable -- 6,600
Loan origination costs (293) --
Payments on notes payable and other long-term payables (679) (52,046)
Common stock issued 1,770 53,925
Treasury stock acquired (654) (977)
------------ ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 144 7,502
------------ ------------
NET (DECREASE) IN CASH AND CASH EQUIVALENTS (100) (4,873)
Cash and cash equivalents at beginning of period 14,929 19,377
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 14,829 $ 14,504
============ ============
</Table>