DELTA PETROLEUM CORPORATION
Roger A. Parker, President and CEO
Aleron H. Larson, Jr., Chairman
Kevin K. Nanke, CFO
475 17th Street, Suite 1400
Denver, Colorado 80202
FIRST QUARTER FISCAL 2005 RESULTS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004
DENVER, Colorado (November 8, 2004) -- Delta Petroleum Corporation (NASDAQ: DPTR); (FRANKFURT STOCK EXCHANGE: DPE), an independent energy exploration and development company, today reported its operating results for the quarter ended September 30, 2004.
For the quarter ended September 30, 2004, total revenue from continuing operations increased 186% to $19.3 million, compared with $6.8 million in the same period a year earlier. Net income rose 189% to $3.9 million or $0.09 per diluted share, versus net income of $1.4 million, or $0.05 per diluted share for the same period a year earlier. EBITDAX (see reconciliation table at the end of this release) increased 252% to $12.8 million for the quarter ended September 30, 2004, compared with $3.6 million for the same period a year earlier.
The increases in revenue and net income were primarily due to an 81% increase in production and higher oil and natural gas prices. Total production for the quarter ended September 30, 2004 reached 3.33 Bcfe (billion cubic feet equivalent). This compared with total production of 1.84 Bcfe for the same period a year earlier. The production increase can primarily be attributed to the Alpine acquisition which we completed on June 29, 2004.
The average price realized for oil for the quarter ended September 30, 2004 approximated $42.27 per barrel (Bbl) onshore and $30.90 per Bbl offshore, compared with $27.26 per Bbl onshore and $20.13 per Bbl offshore for the same period a year earlier. The average price realized for natural gas approximated $5.45 per thousand cubic feet (Mcf) for the quarter ended September 30, 2004, versus $4.19 per Mcf for the same period a year earlier.
Production costs were approximately $1.34 per Mcf equivalent and depletion, depreciation and amortization (“DDA”) were $1.49 per Mcf equivalent. As expected production costs per Mcf equivalent went down and DDA per Mcf equivalent went up from year end results, both of which are directly related to Gulf Coast type production acquired in the Alpine Resources transaction completed on June 29, 2004.
On November 5, 2004, we entered into a new $200 million credit facility, with JP Morgan/Bank One, NA as the new agent bank, our other banks, Bank of Oklahoma, N.A.; U.S. Bank National Association and Hibernia National Bank will continue as participating banks. The borrowing base associated with this facility is, $75 million, of which $70 million is currently outstanding.
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
DELTA PETROLEUM CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, June 30,
2004 2004
(In thousands)
ASSETS
Current Assets:
Cash and cash equivalents $ 225 $ 2,078
Marketable securities available for sale 960 912 Trade accounts receivable, net 10,036 9,092
Prepaid assets 1,449 1,136
Inventory 2,869 1,350
Other current assets 357 385
Total current assets 15,896 14,953
Property and Equipment:
Oil and gas properties, successful efforts method of accounting 282,045 272,892
Drilling and trucking equipment 5,110 3,965
Other 1,308 1,147
Total property and equipment 288,463 278,004
Less accumulated depreciation and depletion (26,556) (21,665)
Net property and equipment 261,907 256,339
Long term assets:
Investment in LNG project 1,022 1,022
Deferred financing costs 90 131
Partnership net assets 218 259
Total long term assets 1,330 1,412
$ 279,133 $ 272,704
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of long-term debt $ 125 $ 109
Accounts payable 13,364 12,326
Other accrued liabilities 1,101 1,855
Derivative liabilities 587 -
Total current liabilities 15,177 14,290
Long-term Liabilities:
Bank debt, net 60,491 69,375
Asset retirement obligation 2,371 2,542
Other debt, net 268 255
Total long-term liabilities 63,130 72,172
Minority Interest 315 245
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 39,337,000 shares at September 30, 2004 and 38,447,000
at June 30, 2004 393 384
Additional paid-in capital 218,911 207,811
Accumulated other comprehensive income (loss) (197) 342
Accumulated deficit (18,596) (22,540)
Total stockholders' equity 200,511 185,997
Commitments $ 279,133 $ 272,704
DELTA PETROLEUM CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
September 30,
2004 2003
(In thousands except per share data)
Revenue:
Oil and gas sales $ 19,219 $ 7,067
Drilling and trucking 119 -
Realized loss on derivative instruments, net - (312)
Total revenue 19,338 6,755
Operating expenses:
Production costs 4,212 2,123
Depreciation and depletion 4,981 1,551
Exploration expense 536 76
Dry hole costs 2,254 -
Drilling and trucking operations 436 -
Professional fees 346 304
General and administrative 2,590 1,167
Total operating expenses 15,355 5,221
Income from continuing operations 3,983 1,534
Other income and (expense):
Other income 34 20
Minority interest 81 -
Interest and financing costs (883) (509)
Total other expense (768) (489)
Income before discontinued operations 3,215 1,045
Discontinued operations:
Income (loss) from operations of properties sold, net 729 319
Gain on sale of properties - -
Net income $ 3,944 $ 1,364
Basic income per common share:
Income before discontinued operations $ .08 $ .05
Discontinued operations .02 .01
Net income $ .10 $ .06
Diluted income per common share:
Income before discontinued operations $ .07 $ .04
Discontinued operations .02 .01
Net income $ .09 $ .05
Delta Petroleum Corporation
Unaudited Reconciliation of Net Cash Provided by
Operating Activities to “EBITDAX”
Three Months Ended
September 30,
2004 2003
(In thousands)
EBITDAX
Net cash provided by operating activities $ 3,333 $ 4,952
Adjustments:
Changes in other assets and liabilities 6,886 (1,664)
Stock option expense - (105)
Interest net of financing amortization 806 382
Exploration expense 536 76
Dry hole costs, net 1,165 -
Minority interest 81 -
EBITDAX $ 12,807 $ 3,641
Note: “EBITDAX” is a non-GAAP financial measure equal to net cash provided by operating activities, the most directly comparable GAAP financial measure, adjusted for changes in other assets and liabilities, stock option expense, interest net of financing amortization, exploration costs and minority interest. This reconciliation is provided in accordance with applicable rules adopted by the Securities and Exchange Commission. “EBITDAX” is not a measure of performance under accounting principles generally accepted in the United States of America and should not be considered in isolation or construed as a substitute for net income or other operations data or cash flow data prepared in accordance with accounting principles generally accepted in the United States for purposes of analyzing our profitability or liquidity. In addition, not all funds depicted by “EBITDAX” are available for management’s discretionary use but are subject to contractual restrictions and functional requirements to pay debt service, fund necessary capital expenditures and meet other commitments as described in more detail in the Company’s Form 10-Q for the year ended September 30, 2004 as filed with the Securities and Exchange Commission. “EBITDAX” as calculated above may not be comparable to similarly titled measures reported by other companies.