Exhibit 99 (a)
PetroCorp Reports Third Quarter and Nine Months
TULSA, Okla.--(BUSINESS WIRE)--Nov. 13, 2003--PetroCorp
Incorporated (AMEX:PEX) reported today the results of its operations
for the third quarter and first nine months of the year 2003.
Third Quarter Highlights
PetroCorp reported third quarter 2003 net income from continuing
operations of $1.7 million or $0.13 per share. This represents a 96%
increase over the $0.9 million or $0.07 per share for the third
quarter 2002.
Total revenues from continuing operations increased 20% to $8.7
million for the third quarter 2003 compared to $7.3 million in the
third quarter 2002. The revenue increase resulted from higher oil and
gas prices received, partially offset by volume decreases due to the
October 2002 sale of PetroCorp's Alabama properties and normal
production declines.
The Company's natural gas production was 1,108 MMcf for the third
quarter 2003 compared to 1,184 MMcf in the third quarter 2002 and oil
production decreased to 99 MBbls from 121 MBbls, resulting in the
Company's overall equivalent production decreasing to 1,702 MMcfe from
1,910 MMcfe. Slightly more than 50% of the production decrease is
attributed to the sale of Alabama properties in the second half of
2002.
Average natural gas price received during the third quarter 2003
was $5.11 per thousand cubic feet (Mcf) compared to $3.31 per Mcf for
the third quarter 2002. The average crude oil price received was
$29.47 per barrel for the third quarter 2003 compared to $26.55 per
barrel for the third quarter 2002.
In addition, the Company reported a decrease to the estimated gain
from the sale of its Canadian subsidiaries of $337,000 ($0.02 per
share), net of tax, which is included in discontinued operations.
Nine Months Highlights
Net income from continuing operations was $9.6 million, or $0.75
per share, for the first nine months 2003 compared to $2.6 million, or
$0.21 per share, for 2002.
Average natural gas prices for continuing operations increased 88%
to $5.57 per Mcf for the first nine months 2003 from $2.96 per Mcf for
2002. Oil prices increased 29% to $30.23 per barrel in 2003 from
$23.47 per barrel in 2002 and oil volumes decreased to 315 MBbls from
367 MBbls. Gas volumes decreased to 3,231 MMcf from 3,970 MMcf. Total
revenues from continuing operations increased to $27.9 million for the
first nine months 2003 compared to $20.6 million for 2002.
PetroCorp closed the previously announced sale of its Canadian
subsidiaries on March 5, 2003 generating approximately $109 million of
proceeds, net of tax. This transaction allowed the Company to retire
all its existing debt and resulted in a gain of $33.3 million.
Additionally, PetroCorp reported net income from these subsidiaries
(Discontinued Operations) from January 1, 2003 to March 5, 2003 of
$2.1 million.
In addition to the $35.4 million associated with the Discontinued
Operations, PetroCorp recorded a charge of $3.0 million for the
cumulative effect of an accounting change resulting from the adoption
of Financial Accounting Standard Number 143. All amounts are net of
related tax effects.
Company Sale Update
On August 14, 2003, the Company announced that it had entered into
a definitive agreement to be acquired by Unit Corporation. The
agreement is subject to approval by the Company's shareholders and
other customary closing conditions and is expected to close in the
fourth quarter of 2003 or early in 2004. If the merger is completed,
the Company's shareholders will be entitled to receive, for each share
owned, a minimum of $13.37 in cash at the closing, plus up to $0.50
per share in the form of cash distributions from an escrow account set
up to settle or satisfy certain of the Company's contingent tax and
litigation liabilities.
PetroCorp Incorporated is a Tulsa, Okla.-based publicly traded
energy company engaged in the exploration, production, acquisition and
enhancement of oil and natural gas reserves in the Mid-Continent and
Gulf Coast regions in the United States. For more information on
PetroCorp, go to www.petrocorp.com.
Except for the historical information contained herein, the
matters discussed in this press release are forward-looking statements
that involve risks and uncertainties, and actual results could differ
materially from these expectations. Among the factors that could cause
actual results to differ materially are the timing and success of the
company's drilling activities, the volatility of the prices and supply
and demand for oil and gas, the numerous uncertainties inherent in
estimating quantities of oil and gas reserves and actual future
production rates and associated costs, the usual hazards associated
with the oil and gas industry (including blowouts, cratering, pipe
failure, spills, explosions and other unforseen hazards), and
increases in regulatory requirements, as well as other risks described
from time to time in the company's periodic reports filed with the
Securities and Exchange Commission.
Exhibit 99 (b)
PETROCORP INCORPORATED
----------------------
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
(in thousands, except share amounts)
(Unaudited)
For the three For the nine
months months
ended ended
September 30, September 30,
--------------- ----------------
2003 2002 2003 2002
------- ------- ------- --------
Revenues:
Oil and gas $8,577 $7,126 $27,528 $20,369
Other 135 129 351 234
------- ------- ------- --------
8,712 7,255 27,879 20,603
------- ------- ------- --------
Expenses:
Production costs 2,913 2,787 7,908 7,878
Depreciation, depletion and
amortization 1,887 1,803 5,180 6,253
General and administrative 719 506 1,999 1,244
Other operating expenses 29 11 84 75
------- ------- ------- --------
5,548 5,107 15,171 15,450
------- ------- ------- --------
Income from operations 3,164 2,148 12,708 5,153
------- ------- ------- --------
Other income (expenses):
Investment income 238 9 468 115
Interest expense (74) (376) (490) (1,226)
Other income (expenses) (773) (247) 2,361 8
------- ------- ------- --------
(609) (614) 2,339 (1,103)
------- ------- ------- --------
Income from continuing operations
before income taxes and
accounting change 2,555 1,534 15,047 4,050
------- ------- ------- --------
Income tax provision:
Current 653 14 2,304 (13)
Deferred 215 661 3,125 1,425
------- ------- ------- --------
868 675 5,429 1,412
------- ------- ------- --------
Income from continuing operations
before accounting change 1,687 859 9,618 2,638
Discontinued operations:
Income from discontinued
Canadian operations (net
of applicable taxes of nil,
$780, $1,530 and $2,028) -- 1,314 2,113 2,961
Gain on sale of Canadian
subsidiaries (net of taxes
(benefit) of ($198) and
$19,573) (337) -- 33,327 --
------- ------- ------- --------
Income before cumulative effect of a
change in accounting principle 1,350 2,173 45,058 5,599
Cumulative effect on prior years of
accounting change, less applicable
income taxes of $1,743 -- -- (2,969) --
------- ------- ------- --------
Net income $1,350 $2,173 $42,089 $5,599
======= ======= ======== ========
Net income per common share - basic
Income from continuing
operations $0.13 $0.07 $0.75 $0.21
Income from discontinued
operations (0.02) 0.10 2.80 0.24
Cumulative effect of change in
accounting principle -- -- (0.23) --
------- ------- ------- --------
Net income $0.11 $0.17 $3.32 $0.45
======= ======= ======== ========
Net income per common share - diluted
Income from continuing
operations $0.13 $0.07 $0.75 $0.21
Income from discontinued
operations (0.02) 0.10 2.77 0.23
Cumulative effect of change in
accounting principle -- -- (0.23) --
------- ------- ------- --------
Net income $0.11 $0.17 $3.29 $0.44
======= ======= ======== ========
Weighted average number of common
shares - basic 12,684 12,570 12,661 12,563
======= ======= ======= ========
Weighted average number of common
shares - diluted 12,847 12,653 12,796 12,670
======= ======= ======= ========
CONTACT: PetroCorp Incorporated, Tulsa
Steven R. Berlin/Gary R. Christopher, 918-491-4500