DELTA PETROLEUM CORPORATION
Aleron H. Larson, Jr., Chairman
Roger A. Parker, President and CEO
Kevin K. Nanke, CFO
475 17th Street, Suite 1400
Denver, Colorado 80202
COMPANY ANNOUNCES NEW $50 MILLION BANK FACILITY
DENVER, Colorado (February 4, 2004) -- Delta Petroleum Corporation (NASDAQ: DPTR); (FRANKFURT STOCK EXCHANGE: DPE), an independent energy exploration and development company, today reported its operating results for the second quarter and first half of fiscal 2004. The Company also announced the December 30, 2003 signing of a new bank credit facility, which depending on its available base, will allow the Company to borrow up to $50 million.
For the three months ended December 31, 2003, total revenue increased 48% to $8.0 million, compared with $5.4 million in the second quarter of the previous fiscal year. The Company reported net income of $652,000, or $0.03 per share, in the most recent quarter, for a gain of 52% when compared with net income of $428,000, or $0.02 per share, in the prior-year period. EBITDAX (defined in a note at the end of this release) improved 78% to $3,7 million in the second quarter of fiscal 2004, compared with $2.1 million in the quarter ended December 31, 2002. Increases in revenues, earnings and EBITDAX primarily reflect contributions from acquisitions completed during fiscal 2003 and 2004, along with higher oil and gas prices. The increase in revenues also benefited from higher production resulting from the Company’s drilling activities.
The average price realized for oil in the second quarter of fiscal 2004 approximated $29.91 per barrel (Bbl) onshore and $19.94 per Bbl offshore, versus $27.56 per Bbl onshore and $19.23 per Bbl offshore in the year-earlier quarter. The average price realized for natural gas approximated $4.60 per Mcf in the most recent quarter, compared with $4.38 per Mcf in the quarter ended December 31, 2002.
For the six months ended December 31, 2003, total revenues increased 43% to $15.2 million, compared with $10.6 million in the first half of fiscal 2003. Net income increased 270% to $2.0 million, or $0.08 per share, during the first half of fiscal 2004, compared with net income of $545,000, or $0.02 per share, in the corresponding period of the previous fiscal year. Ebitdax increased 68% to $7.4 million in the first six months of fiscal 2004, versus $4.4 million in the six months ended December 31, 2002.
The average price realized for oil in the first half of fiscal 2004 approximated $29.54 per Bbl onshore and $19.98 per Bbl offshore, versus $26.66 per Bbl onshore and $19.66 per Bbl offshore in the prior year period. The average price realized for natural gas approximated $4.72 per Mcf in the six months ended December 31, 2003, compared with $3.77 per Mcf in the first half of fiscal 2003.
“The Company significantly accelerated its drilling activities in a number of geographic areas during the second quarter of Fiscal 2004,” stated Roger A. Parker, President and Chief Executive Officer of Delta Petroleum Corporation. “We are very pleased with the overall results of such drilling activities, and the impact of new wells upon our revenues, earnings and EBITDAX should be more apparent in the third and fourth quarters of our fiscal year.” A more detailed review of the Company’s recent drilling activities will be provided in an 8-K to be filed with the U.S. Securities and Exchange Commission.
In addition, on December 30, 2003 Delta entered into a new $50 million credit facility. The banking group has been expanded to include the Bank of Oklahoma, US Bank National Association and Hibernia National Bank. “We are very pleased with our new banking group, which was chosen in anticipation of continued growth,” continued Parker. “The lending capability of each bank will allow us to increase drilling and acquisition activity.” The maximum amount available under the new facility is $50 million, with a current borrowing base of $32.85 million.
Delta Petroleum Corporation is an oil and gas exploration and development company based in Denver, Colorado. The Company has producing properties in 15 states and interests in one producing federal unit and four undeveloped units located in federal waters offshore California near Santa Barbara. Its common stock is traded on NASDAQ under the symbol ``DPTR'' and on the Frankfurt Stock Exchange under the symbol ``DPE.''
Forward-looking statements in this announcement are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that all
forward-looking statements involve risks and uncertainty, including without
limitation, the costs of exploring and developing new oil and natural gas
reserves, the price for which such reserves can be sold, environmental concerns
effecting the drilling of oil and natural gas wells, as well as general market
conditions, competition and pricing. Please refer to the Company’s
Securities and Exchange Commission filings for additional information.
For further information contact the Company at (303) 293-9133 or via email at info@deltapetro.com
OR
RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or via email at info@rjfalkner.com
SOURCE:
Delta Petroleum Corporation
(Financial Highlights Follow)
DELTA PETROLEUM
CORPORATION
AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
June 30,
2003
2003
------------------
-----------
ASSETS
(Unaudited)
Current
Assets:
Cash and cash
equivalents
$
711,000 $ 2,271,000
Marketable securities
available for
sale
768,000
662,000
Trade accounts receivable, net of
allowance for doubtful accounts of
$50,000 at
December 31, 2003 and June 30,
20034,629,000
4,410,000
Prepaid
assets
1,438,000
764,000
Other current
assets
475,000
560,000
----------------- ---------------
Total current
assets
8,021,000
8,667,000
----------------- ---------------
Property and Equipment:
Oil and gas properties, at cost (using
the successful efforts method
of
accounting):
112,605,000
90,487,000
Less accumulated depreciation
and
depletion
(16,226,000)
(12,669,000)
-----------------
---------------
Net property and
equipment
96,379,000
77,818,000
-----------------
---------------
Long term assets:
Investment in LNG
project
1,015,000
-
Deferred financing
costs
141,000
117,000
Partnership net
assets
198,000
245,000
----------------- ---------------
Total long term
assets
1,354,000
362,000
----------------- ---------------
$105,754,000
$86,847,000
========== =========
LIABILITIES
AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long‑term
debt
$
7,945,000 $10,039,000
Accounts
payable
6,428,000
3,604,000
Derivative
instruments
143,000
468,000
Current foreign tax
payable
703,000
703,000
Other accrued
liabilities
546,000
1,087,000
-----------------
---------------
Total current liabilities
15,765,000
15,901,000
-----------------
---------------
Long-term Liabilities:
Asset retirement
obligation
1,060,000
868,000
Long-term debt,
net
28,000,000
22,175,000
----------------
---------------
Total long-term
liabilities
29,060,000
23,043,000
Stockholders' Equity:
Preferred stock, $.10 par value;
authorized 3,000,000 shares, none
issued
Common stock, $.01 par
value;
-
-
authorized 300,000,000 shares,
issued
25,412,000 shares at December
31, 2003
and
23,286,000 at June 30,
2003
254,000
233,000
Additional paid‑in
capital
86,200,000
75,642,000
Accumulated other
comprehensive loss
55,000
(376,000)
Accumulated
deficit
(25,580,000)
(27,596,000)
----------------
---------------
Total stockholders' equity
60,929,000
47,903,000
----------------
---------------
$105,754,000
$86,847,000
=========
=========
Commitments
DELTA PETROLEUM
CORPORATION
AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
Three Months Ended
December 31, December 31,
2003
2002
-----------------
-----------------
Revenue:
Oil and gas
sales
$8,074,000
$ 5,808,000
Realized loss on derivative instruments, net
(68,000)
(387,000)
--------------
--------------
Total
revenue
8,006,000
5,421,000
Operating expenses:
Lease operating
expenses
2,341,000
2,303,000
Depreciation and
depletion
2,306,000
1,101,000
Exploration
expenses
138,000
40,000
Dry hole
costs
177,000
43,000
Professional
fees
308,000
142,000
General and administrative (includes stock
option expense of $3,000 and $35,000 for the three months ended
December 31, 2003 and 2002, respectively.)
1,528,000
871,000
--------------
----------------
Total operating expense
6,798,000
4,500,000
Income
from
operations
1,208,000
921,000
Other income and
(expense):
Other
income
15,000
10,000
Interest and financing
costs
(576,000)
(432,000)
--------------
----------------
Total other
expense
(561,000)
(422,000)
--------------
----------------
Income before discontinued
operations
647,000
499,000
Discontinued operations:
Income (loss) from operations of properties sold,
net
33,000
(71,000)
Loss on sale of
properties
(28,000)
-
-------------
---------------
Net
income
$
652,000
$ 428,000
========
=========
Basic income per common
share:
Income before discontinued operations
$ .03
$ .02
Discontinued
operations
-*
-*
========
=========
Net
income
$
.03
$ .02
========
=========
Diluted
income per common share:
Income before discontinued operations
$ .03
$ .02
Discontinued
operations
-*
-*
========
=========
Net
income
$
.03
$
.02
========
=========
* less than
$.01 per share
DELTA PETROLEUM
CORPORATION
AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
Six Months Ended
December
31, December 31,
2003
2002
-----------------
-----------------
Revenue:
Oil and gas
sales
$
15,572,000 $
11,062,000
Realized loss on derivative instruments, net
(380,000)
(420,000)
----------------
---------------
Total
revenue
15,192,000
10,642,000
Operating expenses:
Lease operating
expenses
4,550,000
4,273,000
Depreciation and depletion 3,948,000 2,706,000