EXHIBIT 99.1
(REMINGTON LOGO) PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: STEVEN J. CRAIG
SR. VICE PRESIDENT
(214) 210-2675
REMINGTON OIL AND GAS CORPORATION ANNOUNCES FINANCIAL
RESULTS FOR THE THIRD QUARTER OF 2003
Dallas, TX, October 29, 2003 - Remington Oil and Gas Corporation (NYSE: REM)
announced the following third quarter and year to date financial results:
<Table>
<Caption>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- -------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
(In thousands, except per share data)
-----------------------------------------------------
TOTAL REVENUES $ 46,965 $ 26,050 $ 135,306 $ 77,168
NET INCOME $ 10,068 $ 3,967 $ 34,020 $ 10,476
BASIC INCOME PER SHARE $ 0.38 $ 0.15 $ 1.28 $ 0.42
DILUTED INCOME PER SHARE $ 0.36 $ 0.14 $ 1.22 $ 0.39
NET CASH FLOW PROVIDED BY OPERATIONS $ 25,766 $ 23,184 $ 88,982 $ 52,844
PRODUCTION MCFE 9,534 6,994 25,126 21,538
</Table>
Net income for the third quarter of 2003 increased by $6.1 million, or 154%, to
$10.1 million, or $0.38 basic income per share and $0.36 diluted income per
share compared to third quarter of 2002. Net income for the first nine months of
2003 increased by $23.5 million, or 225%, to $34.0 million or $1.28 basic income
per share and $1.22 diluted income per share compared to the first nine 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 $2.6 million to $25.8 million
during the third quarter and by $36.1 million to $89.0 million for the first
nine months of 2003 compared to the same periods in the prior year.
Total production increased by 2.5 Bcfe, or 36%, to 9.5 Bcfe during the third
quarter of 2003. Total production for the nine months ended September 30, 2003
increased by 3.6 Bcfe, or 17%, to 25.1 Bcfe. The increase is primarily the
result of production from new properties in the Gulf of Mexico. Average oil
prices increased by 9% to $28.18 per barrel during the third quarter of 2003 and
increased by 24% to $29.45 per barrel during the first nine months of 2003.
Average gas prices increased by 53% to $5.00 per Mcf during the third quarter of
2003 and increased by 84% to $5.58 per Mcf during the first nine months of 2003.
-more-
Operating costs (which include direct operating expenses, transportation,
severance taxes, and delay rentals) for the three-month periods were $5.3
million ($0.56/Mcfe) during 2003 versus $4.5 million ($0.64/Mcfe) during 2002.
For the nine-month periods operating costs were $15.0 million ($0.60 per Mcfe)
during 2003 and $12.2 million ($0.57 per Mcfe) in 2002. Operating costs
increased primarily due to new operated properties.
Exploration expense increased by $5.0 million during the third quarter of 2003
and by $9.8 million during the first nine months of 2003 primarily because of
increased dry hole expense and impairment expense. Dry hole expense for 2003
includes 8 wells in the Gulf of Mexico, one well in Mississippi and one well in
South Texas for a total cost of $19.7 million compared to $9.8 million dry hole
expense in 2002. During the third quarter of 2003 dry hole expense totaled $7.4
million compared to $3.3 million during the third quarter of 2002.
Depreciation, depletion, and amortization expense increased from $9.4 million
($1.34 per Mcfe) during the third quarter of 2002 to $15.1 million ($1.58 per
Mcfe) during the third quarter of 2003 and from $29.2 million ($1.36 per Mcfe)
during the first nine months of 2002 to $38.6 million ($1.54 per Mcfe) during
the first nine 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 in total have increased slightly due to
employee related expense, but have decreased to $0.18 per Mcfe for the three
months ended September 30, 2003 compared to $0.24 per Mcfe in 2002 and to $0.22
per Mcfe for the nine months ended September 30, 2003 compared to $0.25 per Mcfe
in 2002. The decrease per Mcfe is primarily due to the 36% increase in
production during the third quarter of 2003 compared to 2002. Included in
general and administrative expenses is non-cash stock based compensation expense
which is $0.04 and $0.06 per Mcfe during the three months ended September 30,
2003 and 2002, respectively and $0.05 and $0.06 per Mcfe for the nine months
ended September 30, 2003 and 2002, respectively.
Interest and financing expenses increased slightly during the third quarter of
2003 compared to the third quarter of 2002, but decreased by 23% because of
lower average bank debt during the first nine months of 2003 compared to 2002.
On a per Mcfe basis interest and financing costs decreased by $0.01 per Mcfe
during the third quarter of 2003, and by $0.03 per Mcfe for the first nine
months of 2003 compared to the same periods in 2002.
James A. Watt, President and Chief Executive Officer said, "Third quarter
production volumes were at the highest levels the company has ever achieved. The
active fourth quarter drilling schedule exposes our shareholders to significant
new resource potential for 2004 and beyond."
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>
September 30, December 31,
2003 2002
------------- -------------
ASSETS
CURRENT ASSETS (Unaudited)
Cash and cash equivalents $ 14,573 $ 14,929
Accounts receivable 44,042 32,555
Prepaid expenses and other current assets 5,045 4,978
------------- -------------
TOTAL CURRENT ASSETS 63,660 52,462
------------- -------------
PROPERTIES
Oil and natural gas properties (successful-efforts method) 589,956 510,921
Other properties 3,341 3,182
Accumulated depreciation, depletion and amortization (313,896) (279,722)
------------- -------------
TOTAL PROPERTIES 279,401 234,381
------------- -------------
OTHER ASSETS 2,361 2,150
------------- -------------
TOTAL ASSETS $ 345,422 $ 288,993
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 35,784 $ 47,523
Short-term notes payable and current portion of other long-term payables 1,811 1,715
------------- -------------
TOTAL CURRENT LIABILITIES 37,595 49,238
------------- -------------
LONG-TERM LIABILITIES
Notes payable 37,400 37,400
Other long-term payables 168 1,503
Asset retirement obligation 14,631 --
Deferred income tax liability 24,085 7,192
------------- -------------
TOTAL LONG-TERM LIABILITIES 76,284 46,095
------------- -------------
TOTAL LIABILITIES 113,879 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,
26,880,758 shares issued and 26,846,399 shares outstanding in 2003,
26,327,195 shares issued and 26,236,459 shares outstanding in 2002 270 263
Additional paid-in capital 119,822 115,827
Restricted common stock 3,156 5,468
Unearned compensation (1,996) (3,192)
Retained earnings 110,291 76,271
Treasury stock -- (977)
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 231,543 193,660
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 345,422 $ 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 Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
REVENUES
Oil sales $ 12,287 $ 12,802 $ 38,524 $ 31,227
Gas sales 34,580 13,135 96,428 41,491
Gain on sale of assets -- -- -- 4,095
Other income 98 113 354 355
------------ ------------ ------------ ------------
TOTAL REVENUES 46,965 26,050 135,306 77,168
------------ ------------ ------------ ------------
COSTS AND EXPENSES
Operating 5,322 4,477 14,991 12,199
Exploration 8,961 3,976 22,425 12,598
Depreciation, depletion and amortization 15,050 9,384 38,599 29,201
General and administrative 1,710 1,697 5,634 5,347
Interest and financing 433 413 1,318 1,706
------------ ------------ ------------ ------------
TOTAL COSTS AND EXPENSES 31,476 19,947 82,967 61,051
------------ ------------ ------------ ------------
INCOME BEFORE TAXES 15,489 6,103 52,339 16,117
------------ ------------ ------------ ------------
Income tax expense 5,421 2,136 18,319 5,641
------------ ------------ ------------ ------------
NET INCOME $ 10,068 $ 3,967 $ 34,020 $ 10,476
============ ============ ============ ============
BASIC INCOME PER SHARE $ 0.38 $ 0.15 $ 1.28 $ 0.42
============ ============ ============ ============
DILUTED INCOME PER SHARE $ 0.36 $ 0.14 $ 1.22 $ 0.39
============ ============ ============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING (BASIC) 26,771 26,140 26,548 24,990
============ ============ ============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING (DILUTED) 28,046 27,775 27,953 26,887
============ ============ ============ ============
PRODUCTION
Oil (MBbls) 436 494 1,308 1,318
Gas (MMcf) 6,918 4,030 17,278 13,630
Total Production Mcfe 9,534 6,994 25,126 21,538
AVERAGE PRICES
Oil $ 28.18 $ 25.91 $ 29.45 $ 23.69
Gas $ 5.00 $ 3.26 $ 5.58 $ 3.04
</Table>
REMINGTON OIL AND GAS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
<Table>
<Caption>
Nine Months Ended
September 30,
------------------------------
2003 2002
------------- -------------
CASH FLOW PROVIDED BY OPERATIONS
NET INCOME $ 34,020 $ 10,476
Adjustments to reconcile net income
Depreciation, depletion and amortization 38,599 29,201
Deferred income taxes 18,244 5,641
Amortization of deferred charges 161 164
Dry hole and impairment costs 21,443 11,993
Cash paid for dismantlement costs (1,284) (86)
Stock based compensation 1,171 1,246
(Gain) on sale of properties -- (4,095)
Changes in working capital
(Increase) in accounts receivable (11,494) (3,674)
(Increase) in prepaid expenses and other current assets (139) (4,436)
(Decrease) increase in accounts payable and accrued liabilities (11,739) 6,414
------------- -------------
NET CASH FLOW PROVIDED BY OPERATIONS 88,982 52,844
------------- -------------
CASH FROM INVESTING ACTIVITIES
Payments for capital expenditures (89,147) (76,650)
Proceeds from property sales -- 7,738
------------- -------------
NET CASH (USED IN) INVESTING ACTIVITIES (89,147) (68,912)
------------- -------------
CASH FROM FINANCING ACTIVITIES
Proceeds from note payable -- 6,600
Loan origination costs (293) --
Payments on notes payable and other long-term payables (1,239) (53,997)
Common stock issued 2,150 54,379
Treasury stock acquired (809) (977)
------------- -------------
NET CASH PROVIDED BY FINANCING ACTIVITIES (191) 6,005
------------- -------------
NET (DECREASE) IN CASH AND CASH EQUIVALENTS (356) (10,063)
Cash and cash equivalents at beginning of period 14,929 19,377
------------- -------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 14,573 $ 9,314
============= =============
</Table>