HOUSTON, Feb. 12 /PRNewswire-FirstCall/ -- Bois d'Arc Energy, Inc. ("Bois d'Arc" or the "Company") today reported financial and operating results for the quarter and year ended December 31, 2006. Bois d'Arc's net income for the three months ended December 31, 2006 was $11.9 million or $0.18 per diluted share as compared to 2005's fourth quarter net income of $10.4 million or $0.16 per diluted share. For the fourth quarter of 2006, Bois d'Arc's oil and gas sales increased by 36% to $66.3 million as compared to $48.8 million in the three months ended December 31, 2005. Production in the fourth quarter of 2006 set a new corporate record at 8.9 billion cubic feet equivalent of natural gas ("Bcfe"), an increase of 104% over production of 4.4 Bcfe for the same period in 2005. 2005's fourth quarter production was impacted by last year's hurricanes which caused the deferral of approximately 2.2 Bcfe of production in that quarter. Prices realized by the Company during the fourth quarter of 2006 averaged $6.78 per Mcf of natural gas and $57.77 per barrel of oil as compared to $11.67 per Mcf of natural gas and $59.29 per barrel of oil in 2005's fourth quarter. For the three months ended December 31, 2006, Bois d'Arc generated $45.0 million of operating cash flow (before changes in working capital accounts) an increase of 54% over the $29.2 million generated in the fourth quarter of 2005. EBITDAX or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses increased 45% to $50.1 million in the fourth quarter of 2006 as compared to $34.5 million in the fourth quarter of 2005.
For the year ended December 31, 2006, Bois d'Arc reported net income of $55.0 million or $0.84 per diluted share as compared to pro forma net income of $47.2 million ($0.79 per diluted share) for the year ended December 31, 2005. The pro forma earnings for the year of 2005 give effect to income taxes as if the Company has been taxed as a corporation prior to May 11, 2005 and exclude the one-time charge of $108.2 million to establish a deferred income tax liability on the date Bois d'Arc became taxable. Oil and gas sales for 2006 increased 38% to $254.7 million as compared to $184.4 million for the year ended December 31, 2005. Production in 2006 totaled 31.5 Bcfe, an increase of 44% over production of 21.8 Bcfe for 2005. Production of 3.6 Bcfe and 4.3 Bcfe was deferred during the years ended December 31, 2006 and 2005, respectively, due to the 2005 hurricanes. Prices realized by the Company during the year ended December 31, 2006 averaged $7.13 per Mcf of natural gas and $64.66 per barrel of oil as compared to $8.28 per Mcf of natural gas and $52.88 per barrel of oil in 2005. Bois d'Arc's operating cash flow (before changes in working capital accounts) for the year ended December 31, 2006, increased 47% to $181.2 million as compared to $123.2 million in the same period in 2005. EBITDAX increased 37% to $197.2 million in 2006 as compared to $143.9 million for 2005.
Bois d'Arc made capital expenditures of $244.6 million during 2006 for its acquisition, exploration and development activities and spent an additional $4.6 million on geological and geophysical costs primarily for 3-D seismic data acquisition. Bois d'Arc successfully replaced 166% of 2006's production primarily through its 2006 drilling program. Successful results from its 2006 exploration activities added approximately 87 Bcfe of new proved and probable oil and natural gas reserves. In 2006, Bois d'Arc drilled ten (8.7 net) successful wells out of a total of 13 (11.2 net) wells drilled with three (2.5 net) dry holes. The largest discoveries made in 2006 included a well drilled at South Pelto 22, which proved up the "Sockeye" prospect and a discovery at Ship Shoal block 111, which proved up the "Steelhead" prospect.
During the fourth quarter of 2006, Bois d'Arc drilled two successful exploratory wells. Bois d'Arc made a discovery at Ship Shoal block 166 with the OCS-G5549 #4 well which was drilled to a depth of 15,709 feet and encountered 72 net feet of pay sands in two commercial reservoirs. A third prospective target was not tested due to drilling problems encountered with the well. First production from this well is anticipated by the second quarter with the installation of a production facility. The second successful well was drilled at South Timbalier block 111.
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.
Bois d'Arc Energy is a growing independent exploration company engaged in the discovery and production of oil and natural gas in the Gulf of Mexico. The Company's stock is traded on the New York Stock Exchange under the symbol "BDE".
BOIS d'ARC ENERGY, INC.
OPERATING RESULTS
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2006 2005 2006 2005
Oil and gas sales $66,274 $48,841 $254,710 $184,436
Operating expenses:
Oil and gas operating 15,601 12,765 53,400 37,089
Exploration 2,390 6,278 18,708 16,794
Depreciation,
depletion and
amortization 24,971 8,953 77,591 42,854
Impairment 200 590 1,632 590
General and
administrative, net 2,462 3,062 11,374 9,331
Total operating
expenses 45,624 31,648 162,705 106,658
Income from operations 20,650 17,193 92,005 77,778
Other income (expenses):
Interest income 89 49 330 222
Other income 128 --- 597 ---
Interest expense (2,168) (689) (6,696) (3,775)
Loss on disposal of
assets --- --- --- (89)
Total other income
(expenses) (1,951) (640) (5,769) (3,642)
Income before income
taxes 18,699 16,553 86,236 74,136
Provision for income
taxes (6,823) (6,115) (31,212) (125,808)
Net income (loss) $11,876 $10,438 $55,024 $(51,672)
Net income (loss) per
share:
Basic $0.18 $0.17 $0.87 $(0.89)
Diluted $0.18 $0.16 $0.84 $(0.89)(A)
Weighted average common
and common stock
equivalent shares
outstanding:
Basic 65,128 62,429 63,391 57,909
Diluted 66,831 64,259 65,278 57,909(A)
Pro forma computation
related to conversion
to a corporation for
income tax purposes:
Income before income
taxes $74,136
Pro forma income tax
provision (26,914)
Pro forma net income $47,222
Pro forma net income
per share (unit):
Basic $0.82
Diluted $0.79
Weighted average common
and common stock
equivalent shares (units)
outstanding:
Basic 57,909
Diluted 59,655
(A) Basic and diluted are the same due to the net loss.
BOIS d'ARC ENERGY, INC.
OPERATING RESULTS
(In thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2006 2005 2006 2005
Cash flow from operations:
Net cash provided by
operating activities $40,438 $27,912 $178,409 $131,650
Increase in accounts
receivable 10,604 15,524 4,628 19,186
Increase (decrease) in
other current assets (1,875) (3,368) 1,300 2,769
Increase in accounts
payable and
accrued expenses (4,187) (10,821) (3,172) (30,360)
Cash flow from
operations $44,980 $29,247 $181,165 $123,245
EBITDAX:
Net income (loss) $11,876 $10,438 $55,024 $(51,672)
Interest expense 2,168 689 6,696 3,775
Income tax expense 6,823 6,115 31,212 125,808
Depreciation, depletion
and amortization 24,971 8,953 77,591 42,854
Exploration expense 2,390 6,278 18,708 16,794
Other non-cash items:
Loss on disposal of
assets, net --- --- --- 89
Impairment 200 590 1,632 590
Stock-based
compensation 1,693 1,469 6,377 5,634
EBITDAX $50,121 $34,532 $197,240 $143,872
As of December 31,
2006 2005
Balance Sheet Data:
Cash and cash equivalents $9,487 $12,043
Other current assets 47,307 38,129
Property and equipment, net 827,795 661,931
Other 912 799
Total assets $885,501 $712,902
Current liabilities $68,868 $66,406
Long-term debt 100,000 69,000
Deferred income taxes 151,959 123,256
Reserve for future abandonment
costs 48,064 35,034
Stockholders' equity 516,610 419,206
Total liabilities and
stockholders' equity $885,501 $712,902
BOIS d'ARC ENERGY, INC.
CONSOLIDATED OPERATING RESULTS
(In thousands, except per unit amounts)
For the Three Months Ended
December 31,
2006 2005
Oil production (thousand barrels) 350 199
Gas production (million cubic feet - Mmcf) 6,795 3,178
Total production (Mmcfe) 8,894 4,368
Oil sales $20,206 $11,770
Gas sales 46,068 37,071
Total oil and gas sales $66,274 $48,841
Average oil price (per barrel) $57.77 $59.29
Average gas price (per thousand cubic
feet - Mcf) $6.78 $11.67
Average price (per Mcf equivalent) $7.45 $11.18
Lifting cost(A) $15,601 $12,765
Lifting cost (per Mcf equivalent) $1.75 $2.92
Oil and gas capital expenditures:
Acquisition of producing properties $978 $---
Leasehold costs (137) 1,347
Exploration drilling 24,780 23,949
Development drilling 765 24,665
Other development costs 26,426 13,878
Total $52,812 $63,839
(A) Includes production taxes of $353 and $42 for the three months ended
December 31, 2006 and 2005, respectively.
For the Year Ended
December 31,
2006 2005
Oil production (thousand barrels) 1,383 1,155
Gas production (million cubic feet - Mmcf) 23,183 14,896
Total production (Mmcfe) 31,481 21,825
Oil sales $89,421 $61,064
Gas sales 165,289 123,372
Total oil and gas sales $254,710 $184,436
Average oil price (per barrel) $64.66 $52.88
Average gas price (per thousand cubic
feet - Mcf) $7.13 $8.28
Average price (per Mcf equivalent) $8.09 $8.45
Lifting cost(B) $53,400 $37,089
Lifting cost (per Mcf equivalent) $1.70 $1.70
Oil and gas capital expenditures:
Acquisition of producing properties $19,156 $---
Leasehold costs 1,971 5,260
Exploration drilling 128,983 63,018
Development drilling 23,360 77,601
Other development costs 71,140 41,683
Total $244,610 $187,562
(B) Includes production taxes of $1,577 and $1,612 for the year ended
December 31, 2006 and 2005, respectively.
