EXHIBIT 99.1
[GRAPHIC OMITTED] NEWS RELEASE
BRIGHAM FOR IMMEDIATE RELEASE
Exploration Company
BRIGHAM EXPLORATION ANNOUNCES YEAR-END 2000 PROVED RESERVES, FINDING COSTS AND
FINANCIAL RESULTS
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Austin, TX -- (Business Wire) - March 6, 2001 -- Brigham Exploration
Company (NASDAQ:BEXP) today disclosed its year-end 2000 proved reserves and
finding costs, and also announced its financial results for the quarter and
fiscal year ended December 31, 2000.
YEAR-END 2000 PROVED RESERVES AND FINDING COSTS
Brigham's estimated net proved reserve volumes at December 31, 2000 totaled
95 Bcfe, which represents a 14% increase from its 84 net Bcfe at year-end 1999.
During 2000, Brigham added 18.4 Bcfe primarily through drilling activities in
its Anadarko Basin and Texas Gulf Coast 3-D seismic projects. Brigham's 2000
drilling program generated net proved reserve additions that replaced 279% of
its 6.6 Bcfe of net volumes produced during the year. Approximately 82% of
Brigham's year-end 2000 reserve volumes are natural gas and 53% are proved
developed.
The present value of Brigham's estimated proved reserves, calculated in
accordance with SEC guidelines ("PV10% Value"), increased 333% to $498 million
at year-end 2000 from $115 million at year-end 1999. The PV10% Value at year-end
2000 was calculated based on a Henry Hub natural gas price of $10.42 per MMBtu
and a West Texas Intermediate Sweet price of $26.83 per barrel. The PV10% Value
of these same reserve quantities at lower prices of $5.00 per MMBtu and $25.00
per barrel is approximately $246 million.
Net capital expenditures incurred in exploration and development operations
during 2000 totaled $25.3 million (including capitalized G&A and interest),
approximately 73% of which related to drilling activities. As a result,
Brigham's average finding costs for reserves added in 2000 (including revisions
to prior estimates) were $1.00 per Mcfe based only on drilling expenditures and
$1.38 per Mcfe based on total net capital expenditures.
FOURTH QUARTER 2000 RESULTS
Average net daily production volumes for the fourth quarter 2000 were 18.4
MMcfe, an increase of 12% from the fourth quarter 1999. Several significant
drilling discoveries made by Brigham late in 2000 did not materially contribute
to fourth quarter volumes, but are expected to impact the first quarter of 2001.
As a result, production volumes for the month of January 2001 are expected to
average 24 MMcfe, 30% greater than average volumes for the fourth quarter of
2000.
Natural gas and oil sales for the fourth quarter 2000 were $4.6 million, or
a 13% increase from the same period last year. Brigham's average realized
equivalent natural gas and oil sales price increased 1% in the fourth quarter
2000 as compared to the prior year quarter primarily due to 30% higher realized
prices for crude oil. Cash settlements on natural gas hedging transactions of
$4.3 million, or $3.63 per Mcf, negatively impacted Brigham's net realized
natural gas sales price and revenues during the fourth quarter 2000, while
natural gas hedging settlements of $485,000, or $0.48 per Mcf, reduced its
average realized natural gas sales price and revenues during the prior year
period.
Lease operating expenses for the fourth quarter 2000 were $637,000, a 10%
increase from the fourth quarter 1999 primarily due to higher production
volumes. Net general and administrative expenses were $934,000, a 21% increase
from the fourth quarter 1999 principally due to higher payroll expenses.
Depletion expenses were $2.1 million ($1.28 per Mcfe), or 7% higher than the
prior year quarter due to increased production volumes that were partially
offset by a lower depletion rate per unit. Interest expense decreased 70% to
$809,000 in the fourth quarter 2000 from $2.7 million in the prior year period
as a result of reduced borrowings, lower effective interest rates and the
cancellation of certain interest obligations as a result of the refinancing of
Brigham's senior subordinated notes.
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Earnings before interest, taxes, depreciation, depletion and amortization
(EBITDA) decreased 23% to $2.5 million in the fourth quarter 2000 from $3.3
million in the fourth quarter 1999, while operating cash flow for the fourth
quarter 2000 was $2.0 million ($0.13 per diluted share), a decrease from $2.8
million ($0.19 per diluted share) for the same period in 1999. Brigham reported
net income of $28.2 million ($1.74 per diluted share) for the fourth quarter
2000 compared to a net loss of $2.2 million ($0.15 per diluted share) for the
prior year period. Net income for the fourth quarter of 2000 included a $32.3
million extraordinary gain on the refinancing of debt and $3.2 million in
non-cash expenses related to changes in the fair market value of certain hedging
contracts. Excluding extraordinary items and the non-cash change in fair market
value of certain hedging contracts, the fourth quarter 2000 net loss would have
been $857,000 ($0.05 per diluted share) as compared to a loss for the same
period in 1999 of $2.3 million ($0.16 per diluted share).
Capital costs incurred during the fourth quarter 2000 totaled $8.5 million,
which included $4.5 million related to drilling, $2.2 million for land and G&G
activities and $1.8 million for capitalized interest and overhead expenses.
Additionally, Brigham realized $4.0 million in proceeds from the sale of
ownership in certain proprietary 3-D seismic data, which resulted in net capital
costs of $4.5 million for the fourth quarter.
YEAR-END 2000 RESULTS
Net equivalent production volumes totaled 6.6 Bcfe (67% natural gas) for
the full year 2000 compared with 6.3 net Bcfe produced in 1999, resulting in
year-over-year production volume growth of 5%. Excluding volumes associated with
properties sold effective June 30, 1999, Brigham's comparable net production
volumes increased by 16% in 2000. Natural gas and oil sales for 2000 totaled
$19.1 million compared to $15 million last year, an increase of 28% despite
Brigham's natural gas hedge position that resulted in net cash settlements of
$9.4 million ($2.12 per Mcf) for the year. Brigham's average realized natural
gas and oil equivalent sales price increased 21% to $2.90 per Mcfe in 2000 from
$2.39 per Mcfe in the prior year. Average realized sales prices during 2000 were
$1.94 per Mcf for natural gas and $29.17 per barrel for oil as compared with
average realized sales prices during 1999 of $2.11 per Mcf and $17.79 per
barrel, respectively.
EBITDA for 2000 increased 26% to $12 million from $9.5 million last year.
Operating cash flow also improved in 2000 to $8.6 million ($0.53 per diluted
share), an increase of 14% from $7.5 million ($0.53 per diluted share) in 1999.
Brigham reported net income of $16.3 million ($1.01 per diluted share) for 2000,
which included a $32.3 million extraordinary gain on the refinancing of debt in
the fourth quarter and $8.9 million in non-cash expenses related to changes in
the fair market value of certain hedging contracts, as compared to a net loss of
$21.6 million ($1.53 per diluted share) for 1999, which included a $12.2 million
non-cash loss on the sale of oil and gas properties and $115,000 in non-cash
expenses related to changes in the fair market value of certain hedging
contracts. Excluding these non-cash items, Brigham's net loss for 2000 would
have been $7.0 million ($0.43 per diluted share), as compared to a net loss of
$9.3 million ($0.66 per diluted share) for 1999.
For the year, Brigham incurred capital costs of $25.3 million, which
consisted of $18.5 million for drilling, $583,000 on land and G&G activities
(net of proceeds from project sales), and $6.3 million for capitalized interest
and overhead expenses.
MANAGEMENT COMMENT
Bud Brigham, the Company's Chairman, CEO and President, stated, "Our
drilling program in 2000 generated some exciting results, particularly our two
significant field discoveries in the Anadarko Basin. These two discoveries,
combined with our late 1999 Home Run Field discovery in the Texas Gulf Coast,
provides our company with a growing portfolio of low risk, yet high return
development drilling. We are also pleased with our average drilling cost of
$0.62 per Mcfe over the past two years. This operational metric is particularly
attractive considering that a significant percentage of our capital was spent on
drilling previously booked proved undeveloped locations. Another indication of
our recent drilling success is that every $1 we invested in drilling in 2000
generated over $4.50 in proved developed PV10% reserve value, using recent strip
pricing."
Mr. Brigham further stated, "Recent production additions did not materially
impact the fourth quarter 2000. In addition, debt levels and our hedge position
significantly limited our cash flow expansion in 2000. However, our cost
structure is significantly improved in 2001, in part due to $20 million in debt
reduction. Realized natural gas prices should increase as our average hedge
price improves and the percentage of our production that is hedged declines. As
a result, we expect a substantial improvement in our operating margins in 2001,
beginning with record levels for production and cash flow in the first quarter
of 2001."
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CONFERENCE CALL INFORMATION
Brigham management will host a conference call to discuss the Company's
year-end 2000 financial and operational results with investors, analysts and
other interested parties on Wednesday, March 7th, at 9:00 a.m. Central time. To
participate in the call, please dial 888-882-0119 and ask for the Brigham
Exploration conference call (conference identification number 18091206). A
recording of the conference call will be available to interested parties
approximately one hour after the call is completed through 11:00 a.m. Central
time on Friday, March 9th. To access the recording, please dial 800-633-8284 and
enter 18091206 as the conference playback identification number.
ABOUT BRIGHAM EXPLORATION
Brigham Exploration Company is an independent exploration and production
company that applies 3-D seismic imaging and other advanced technologies to
systematically explore and develop onshore domestic natural gas and oil
provinces. For more information about Brigham Exploration, please visit our
website at www.bexp3d.com or contact Investor Relations at 512-427-3444.
FORWARD LOOKING STATEMENTS DISCLOSURE
Except for the historical information contained herein, the matters
discussed in this news release are forward looking statements that are based
upon current expectations. Important factors that could cause actual results to
differ materially from those in the forward looking statements include risks
inherent in exploratory drilling activities, the timing and extent of changes in
commodity prices, unforeseen engineering and mechanical or technological
difficulties in drilling wells, availability of drilling rigs, land issues,
federal and state regulatory developments and other risks more fully described
in the company's filings with the Securities and Exchange Commission.
Contact: Christopher A. Phelps, Vice President - Finance & Strategic Planning
(512) 427-3300 / investor@bexp3d.com
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BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data) (unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
------------------- --------------------
1999 2000 1999 2000
-------- --------- --------- ---------
Revenues:
Natural gas and oil sales $ 4,096 $ 4,641 $ 14,992 $ 19,143
Workstation revenue 38 1 285 53
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4,134 4,642 15,277 19,196
Costs and expenses:
Lease operating 580 637 2,259 2,139
Production taxes 283 533 968 1,786
General and administrative 771 934 3,481 3,100
Depletion of natural gas and oil properties 1,982 2,129 7,792 7,920
Depreciation and amortization 127 133 525 507
Amortization of stock compensation 11 57 1 113
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3,754 4,423 15,026 15,565
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Operating income (loss) 380 219 251 3,631
Interest expense (2,727) (809) (9,697) (9,906)
Interest income 42 28 176 108
Other income (expense) (a) 111 (3,222) (163) (9,488)
Loss on sale of natural gas and oil properties - - (12,195) -
-------- --------- --------- ---------
Net loss before income taxes (2,194) (3,784) (21,628) (15,655)
Income tax expense - - - -
-------- --------- --------- ---------
Net loss before extraordinary item (2,194) (3,784) (21,628) (15,655)
Extraordinary gain on refinancing of debt - 32,267 - 32,267
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Net income (loss) (2,194) 28,483 (21,628) 16,612
Preferred stock dividend expense - 275 - 275
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Net income (loss) to common $(2,194) $ 28,208 $(21,628) $ 16,337
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Net income (loss) to common per share - basic/diluted:
Before extraordinary gain $ (0.15) $ (0.25) $ (1.53) $ (0.98)
After extraordinary gain $ (0.15) $ 1.74 $ (1.53) $ 1.01
Wt. avg. common shares outstanding - basic/diluted 14,518 16,252 14,152 16,241
(a) Includes non-cash income (expenses) related to
changes in the fair market value of certain
hedging contracts of: $ 119 ($3,202) ($115) ($8,885)
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BRIGHAM EXPLORATION COMPANY
PRODUCTION, SALES PRICES AND OTHER FINANCIAL DATA
(unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
------------------ ------------------
1999 2000 1999 2000
-------- -------- -------- --------
Avg. net daily production:
Natural gas (MMcf) 11.1 13.0 11.7 12.3
Oil (Bbls) 887 900 960 1,004
Equivalent natural gas (MMcfe) (6:1) 16.5 18.4 17.4 18.3
Total net production:
Natural gas (MMcf) 1,003 1,174 4,197 4,431
Oil (MBbls) 80 81 346 362
Equivalent natural gas (MMcfe) (6:1) 1,482 1,660 6,270 6,600
% Natural gas 68% 71% 67% 67%
Sales prices:
Natural gas ($/Mcf) (a) $ 2.22 $ 1.85 $ 2.11 $ 1.94
Oil ($/Bbl) $ 23.38 $ 30.48 $ 17.79 $ 29.17
Equivalent natural gas ($/Mcfe) (6:1) $ 2.76 $ 2.80 $ 2.39 $ 2.90
Other financial data:
EBITDA ($000) (b) $ 3,293 $ 2,546 $ 9,456 $11,956
Operating cash flow ($000) (c) $ 2,757 $ 2,033 $ 7,532 $ 8,581
Operating cash flow per diluted share (c) $ 0.19 $ 0.13 $ 0.53 $ 0.53
<FN>
(a) Includes the effects of hedging gains (losses) of:
Natural gas ($/Mcf) ($0.48) ($3.63) ($0.12) ($2.12)
Oil ($/Bbl) $ 0.00 ($0.83) $ 0.00 ($0.30)
(b) Net income (loss) plus interest expense, DD&A expenses, deferred income taxes and other
non-cash items.
(c) Net income (loss) plus DD&A expenses, deferred income taxes and other non-cash items.
SUMMARY CONSOLIDATED BALANCE SHEETS
(in thousands) (unaudited)
December December
31, 1999 31, 2000
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Assets:
Current assets $ 8,264 $ 10,673
Natural gas and oil properties, at cost, net 112,066 129,490
Other property and equipment, at cost, net 1,686 1,341
Other non-current assets 3,667 5,407
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Total assets $ 125,683 $ 146,911
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Liabilities and stockholders' equity:
Current liabilities $ 17,744 $ 17,899
Notes payable 56,000 75,000
Senior subordinated notes, net 41,341 7,000
Other non-current liabilities 1,600 3,697
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Total liabilities 116,685 103,596
Redeemable preferred stock - 8,558
Stockholders' equity 8,998 34,757
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Total liabilities and stockholders' equity $ 125,683 $ 146,911
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BRIGHAM EXPLORATION COMPANY
SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
-----------------------------------------
1999 2000 1999 2000
-------- --------- --------- ---------
Cash flows from operating activities:
Net loss $(2,194) $ 28,483 $(21,628) $ 16,612
Depletion, depreciation and amortization 2,109 2,262 8,317 8,427
Interest paid through issuance of add'l sr. sub. notes 1,431 - 5,459 4,575
Amortization of deferred stock compensation 11 57 1 113
Amortization of deferred loan fees 579 296 1,739 1,283
Amortization of discount on senior sub notes 181 - 575 673
Amortization of deferred loss on derivatives 759 - 759 280
Market value adjustment for derivatives instruments (119) 3,202 115 8,885
Loss on sale of natural gas and oil properties - - 12,195 -
Extraordinary gain on refinancing of debt - (32,267) - (32,267)
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Operating cash flow 2,757 2,033 7,532 8,581
Changes in working capital and other items 240 (4,534) (4,954) (13,216)
-------- --------- --------- ---------
Cash flows (used) provided by operating activities 2,997 (2,501) 2,578 (4,635)
Cash flows (used) provided by investing activities (4,468) (6,983) 1,644 (26,071)
Cash flows (used) provided by financing activities 832 10,261 (4,049) 28,801
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Net increase (decrease) in cash and cash equivalents $ (639) $ 777 $ 173 $ (1,905)
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SUMMARY PER MCFE DATA
(unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
-----------------------------------------
1999 2000 1999 2000
--------- -------- --------- ---------
Revenues:
Natural gas and oil sales $ 2.76 $ 2.80 $ 2.39 $ 2.90
Workstation revenue 0.03 0.00 0.05 0.01
--------- -------- --------- ---------
2.79 2.80 2.44 2.91
Costs and expenses:
Lease operating 0.39 0.38 0.36 0.32
Production taxes 0.19 0.32 0.15 0.27
General and administrative 0.52 0.56 0.56 0.47
Depletion of natural gas and oil properties 1.34 1.28 1.24 1.20
Depreciation and amortization 0.09 0.08 0.08 0.08
Amortization of stock compensation 0.01 0.03 0.00 0.02
--------- -------- --------- ---------
2.54 2.65 2.39 2.36
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Operating income $ 0.25 $ 0.15 $ 0.05 $ 0.55
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