STATE COLLEGE, Pa., March 6, 2009 (GLOBE NEWSWIRE) -- Rex Energy Corporation ("Rex Energy") (Nasdaq:REXX) today announced its 2008 results from continuing operations. Revenues, production, EBITDAX and cash flows from operations all grew to record highs during the year. Revenues grew to $68.0 million, up 31%. Production grew to 949,000 barrels of oil equivalent ("BOE"), up 5%. EBITDAX grew to $29.1 million, up 32%. Cash flows from operating activities grew to $32.4 million, up 85%. The company recorded a loss from continuing operations, consistent with generally accepted accounting principles ("GAAP"), for the year of $41.0 million. The loss adjusted to be comparable to analyst estimates, was $9.8 million, or $0.28 per share. (EBITDAX and adjusted loss comparable to analyst estimates are non-GAAP financial measures. Please see the accompanying definitions and tables for the reconciliation of each of these non-GAAP measures. The company has classified all 2008 and prior period amounts related to its operations in the Southwestern Region as discontinued operations due to its anticipated sale of these assets during the first quarter of 2009. Please see the accompanying tables for the reconciliation of the reported GAAP amounts to the amounts that would have been reported if Southwestern Region operations were included in continuing operations.)
Benjamin W. Hulburt, Rex Energy's President and CEO, commented, "2008 was a tremendous year of growth for the company. During 2008, we commenced chemical injection in our Lawrence Field ASP Flood Project, increased our Marcellus Shale acreage by 107% to approximately 62,000 net acres and successfully drilled at least one vertical test well in each of our core Marcellus Shale operational regions. In addition, we grew our revenues by 31%, our EBITDAX by 32%, and our production by 5% year-over-year. Also, we expanded our operations team throughout 2008 adding valuable personnel with significant years of experience in their respective fields."
Hulburt continued, "While the current economic climate is certainly challenging, Rex Energy is positioned to not only endure, but to continue to grow through 2009. At year-end we had only $15 million drawn on our line of credit with an $80 million borrowing base, $7 million of cash, and approximately 86% of our current production hedged through 2010 at average floor prices of $62.95 per barrel and $7.29 per Mcf. Additionally, we expect to receive approximately $17 million in net proceeds from the sale of our Southwestern Region assets during the first quarter of 2009, at which time we expect to be essentially debt free."
In a final comment, Hulburt stated, "Our primary focus in 2009 is to commence horizontal drilling on our Marcellus Shale prospective acreage and continue to build infrastructure to support our Marcellus well production. We remain very encouraged by our initial vertical well results, and are pleased to announce that our most recent vertical well in southwestern Pennsylvania tested at a peak rate of 1.8 million cubic feet per day with an average rate of 1.4 million cubic feet per day over a 24 hour period."
Production for the year totaled 949,000 BOE, of which approximately 82% was attributable to oil. Wellhead oil and natural gas prices, after adjustment for cash settled derivatives, were $75.52 per barrel and $8.90 per Mcf respectively in 2008. Production in the fourth quarter of 2008 totaled 246,928 BOE, an increase of approximately 4% over the previous quarter and 5% when compared to the fourth quarter of 2007. Wellhead oil and natural gas prices, after adjustment for cash settled derivatives, were $62.75 per barrel and $7.85 per Mcf respectively in the fourth quarter of 2008.
Revenues in 2008 were $68.0 million, representing a 31% increase from 2007 revenues of $52.0 million. Revenues for the fourth quarter of 2008 were $14.8 million, representing a 2% increase from revenues of $14.5 million in the fourth quarter of 2007.
Earnings from continuing operations for the year reflected a loss of $41.0 million in 2008 compared with a loss from continuing operations of $15.5 million in 2007. Adjusted earnings comparable to analyst estimates, a non-GAAP financial measure of net income which excludes deferred tax benefits, dry hole and impairment expenses, gains or losses on the sale of assets, unrealized gains or losses from financial derivatives and non-cash compensation expenses, reflected a loss of $9.8 million in 2008 as compared to a loss of $1.4 million in 2007. Earnings from continuing operations for the fourth quarter of 2008 reflected a loss of $32.6 million compared with a loss from continuing operations of $10.9 million in 2007. Adjusted earnings comparable to analyst estimates in the fourth quarter of 2008 reflected a loss of $18.1 million in 2008, a decrease from income of $449,000 in the fourth quarter of 2007.
EBITDAX from continuing operations, a non-GAAP financial measure, was $29.1 million in 2008, up from $22.1 million in 2007, which represented an increase of 32%. EBITDAX in the fourth quarter of 2008 was $5.7 million, representing a decrease of 10% compared to the fourth quarter of 2007.
As previously announced, the company's proved reserves, as of December 31, 2008 were 11.0 million barrels of oil equivalent ("MMboe"), of which 53% was attributable to oil and 47% was attributable to natural gas. Of the 11.0 MMboe of total proved reserves, 65% are categorized as proved developed and 35% are proved undeveloped. Proved reserves as of December 31, 2008 were based on year-end benchmark prices of $41.00 per barrel and $5.71 per Mcf. The present value of future cash flows before income taxes from continuing operations as of December 31, 2008, discounted at 10% (SEC PV10, a non-GAAP measure), totaled $84.0 million. Revisions to the SEC's oil and gas reporting disclosures, effective for registration statements filed on or after January 1, 2010 and annual reports on Form 10-K for fiscal years ending on or after December 31, 2009, will allow for the valuation of reserves using the year's average commodity price rather than the current practice of utilizing commodity pricing on December 31, 2008. Under the SEC rule change, Rex Energy's proved reserves at December 31 would have been approximately 16.9 MMboe, and the present value of future cash flows before income tax would have totaled approximately $415.6 million.
Capital expenditures in 2008 were $136.6 million, of which $49.6 million was spent on the acquisition and leasing of undeveloped properties; $29.4 million was spent for developmental activities; $23.5 million was spent on the Lawrence Field ASP Flood Project in the Illinois Basin; $15.2 million was spent for Marcellus Shale exploratory drilling in the Appalachian Basin; $9.4 million was spent on buildings, equipment, and vehicles; $5.0 million was spent on the acquisition of proved oil and gas properties; and $4.5 million was spent on drilling and recompletions in the Southwestern Region.
The company's capital budget in 2009 is currently $48.6 million. The company is continuing to prepare for its 2009 Marcellus Shale drilling program, which is expected to consist of six to eight net horizontal wells during the year. The company expects to commence drilling its first horizontal well in southwestern Pennsylvania during the first quarter of 2009. In the Illinois Basin, the company is continuing to work with its third party consultants to analyze the results of its two Alkali-Surfactant-Polymer ("ASP") pilots and design its first operational ASP development unit following the completion of the pilot analysis. This analysis is expected to be completed by the end of the first quarter of 2009. Upon completion of the pilot analysis, the company may update its 2009 capital budget to adjust for any changes in the size or scope of planned ASP related activity to be commenced during the year. Rex Energy will continue to monitor commodity prices and service costs throughout the year and remain flexible to adjust capital spending in order to continue to maintain a conservative balance sheet.
About Rex Energy Corporation
Rex Energy Corporation is an independent oil and gas company operating in the Illinois Basin and the Appalachian Basin of the United States. The company has pursued a balanced growth strategy of exploiting its sizable inventory of lower risk developmental drilling locations, pursuing its higher potential exploration drilling prospects and actively seeking to acquire complementary oil and natural gas properties.
The Rex Energy logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5489
Forward-Looking Statements
Except for historical information, statements made in this release, including those relating to significant potential, future earnings, cash flow, capital expenditures, production growth and planned number of wells, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the company's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the volatility of oil and gas prices, the costs and results of drilling and operations, the timing of production, mechanical and other inherent risks associated with oil and gas production, weather, the availability of drilling equipment, changes in interest rates, litigation, uncertainties about reserve estimates, environmental risks and the occurrence of any unanticipated acquisition opportunities. The company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in the company's filings with the Securities and Exchange Commission, which are incorporated by reference.
The company's internal estimates of reserves may be subject to revision and may be different from estimates by the company's external reservoir engineers at year end. Although the company believes the expectations and forecasts reflected in these and other forward-looking statements are reasonable, it can give no assurance they will prove to have been correct. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties.
REX ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
($ in Thousands)
December 31, December 31,
2008 2007
(unaudited) (audited)
------------ ------------
ASSETS
Current Assets
Cash and Cash Equivalents $ 7,046 $ 1,085
Accounts Receivable 5,840 8,805
Short-Term Derivative Instruments 8,153 20
Deferred Taxes -- 4,700
Inventory, Prepaid Expenses and Other 3,068 1,388
------------ ------------
Total Current Assets 24,107 15,998
Property and Equipment (Successful Efforts
Method)
Evaluated Oil and Gas Properties 196,118 171,095
Unevaluated Oil and Gas Properties 65,564 31,834
Other Property and Equipment 19,388 4,397
Wells and Facilities in Progress 29,629 10,457
Pipeline 3,457 2,193
------------ ------------
Total Property and Equipment 314,156 219,976
Less: Accumulated Depreciation, Depletion
and Amortization (64,298) (28,805)
------------ ------------
Net Property and Equipment 249,858 191,171
Assets Held for Sale 18,852 26,361
Intangible Assets and Other Assets- Net 1,628 2,034
Long-Term Derivative Instruments 7,561 --
Goodwill -- 32,700
------------ ------------
Total Assets $ 302,006 $ 268,264
============ ============
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable $ 7,180 $ 7,028
Accrued Expenses 7,388 2,662
Short-Term Derivative Instruments -- 10,893
Current Deferred Tax Liability 2,785 --
Current Portion of Long-Term Debt -- 29
------------ ------------
Total Current Liabilities 17,353 20,612
Senior Secured Line of Credit and
Long-Term Debt 15,000 27,207
Long-Term Derivative Instruments 1,476 18,843
Long-Term Deferred Tax Liability 11,995 30,300
Other Deposits and Liabilities 7,322 345
Liabilities Related to Assets Held for
Sale 1,838 1,223
Future Abandonment Cost 15,174 5,297
------------ ------------
Total Liabilities $ 70,158 $ 103,827
Commitments and Contingencies
Owners' Equity
Common Stock, $.001 par value per share,
100,000,000 shares authorized and
36,569,712 shares issued and outstanding
on December 31, 2008 and 30,794,702
shares issued and outstanding on
December 31, 2007 37 31
Additional Paid-In Capital 291,133 175,170
Accumulated Deficit (59,322) (10,640)
Other Comprehensive Income -- (124)
------------ ------------
Total Owners' Equity 231,848 164,437
------------ ------------
Total Liabilities, Minority Interests and
Owners' Equity $ 302,006 $ 268,264
============ ============
REX ENERGY CORPORATION
CONSOLIDATED AND COMBINED STATEMENT OF OPERATIONS
(Unaudited, $ and Shares in Thousands Except per Share Data)
Rex Energy
Corporation
Consolidated
Rex Energy Rex Energy Rex Energy and Combined
Corporation Corporation Corporation Predecessor
Consolidated Consolidated Consolidated Companies
Three Months Ended Years Ended
December 31, December 31,
-------------------------- --------------------------
2008 2007 2008 2007
------------ ------------ ------------ ------------
OPERATING
REVENUE
Oil and
Natural Gas
Sales $ 13,248 $ 18,721 $ 84,013 $ 58,133
Other Revenue 30 24 123 101
Realized Gain
(Loss) on
Derivatives 1,537 (4,223) (16,167) (6,198)
------------ ------------ ------------ ------------
TOTAL
OPERATING
REVENUE 14,815 14,522 67,969 52,036
OPERATING
EXPENSES
Production and
Lease
Operating
Expenses 6,095 5,441 26,511 22,361
General and
Administrative
Expense 4,303 2,946 15,185 7,793
Impairment
Expense 71,349 -- 71,349 --
(Gain) Loss on
Sale or
Disposal of
Oil and Gas
Properties 42 10 6,468 (12)
Exploration
Expense 866 1,238 3,261 1,238
Depreciation,
Depletion,
Amortization
and Accretion 23,543 5,552 37,904 17,804
------------ ------------ ------------ ------------
TOTAL
OPERATING
EXPENSES 106,198 15,187 160,678 49,184
------------ ------------ ------------ ------------
INCOME (LOSS)
FROM
OPERATIONS (91,383) (665) (92,709) 2,852
OTHER INCOME
(EXPENSE)
Interest
Income 8 12 328 15
Interest
Expense (316) (361) (1,342) (5,646)
Unrealized
Gain (Loss)
on Derivatives 55,858 (17,155) 43,746 (26,250)
Other Income
(Expense) (107) 3 (168) (18)
------------ ------------ ------------ ------------
TOTAL OTHER
INCOME
(EXPENSE) 55,443 (17,501) 42,564 (31,899)
NET LOSS FROM
CONTINUING
OPERATIONS
BEFORE MINORITY
INTEREST AND
INCOME TAXES (35,940) (18,166) (50,145) (29,047)
Minority Share
of Net Loss -- -- -- 6,152
------------ ------------ ------------ ------------
LOSS FROM
CONTINUING
OPERATIONS
BEFORE INCOME
TAX (35,940) (18,166) (50,145) (22,895)
Income Tax
Benefit 3,378 7,222 9,167 7,365
------------ ------------ ------------ ------------
NET LOSS FROM
CONTINUING
OPERATIONS (32,562) (10,944) (40,978) (15,530)
Income (Loss)
from
Discontinued
Operations,
Net of Income
Taxes (7,741) 373 (7,704) (681)
------------ ------------ ------------ ------------
NET LOSS $ (40,303) $ (10,571) $ (48,682) $ (16,211)
------------ ------------ ------------ ------------
Earnings per
common
share(1):
Basic and
Diluted - loss
from
continuing
operations $ (0.89) $ (0.36) $ (1.18) $ (0.37)
Basic and
Diluted - loss
from
discontinued
operations (0.21) 0.01 (0.22) 0.02
------------ ------------ ------------ ------------
Basic and
Diluted - net
loss $ (1.10) $ (0.35) $ (1.40) $ (0.35)
Basic and
Diluted -
weighted
average shares
of common stock
outstanding 36,570 30,795 34,582 30,795
(1) Earnings per common share for 2007 represents a loss from
continuing operations of $11,304 and a gain from discontinued
operations of $644 for the 5 month period ending December 31, 2007
REX ENERGY CORPORATION
CONSOLIDATED OPERATIONAL HIGHLIGHTS
(Unaudited)
Three Months Ended Years Ended
December 31, December 31,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Production:
Oil (Bbls) 201,495 196,490 776,185 769,911
Natural gas (Mcf) 272,598 228,640 1,036,891 786,095
Total (BOE)(a) 246,928 234,597 949,000 900,927
Average daily production:
Oil (Bbls) 2,190 2,136 2,121 2,109
Natural gas (Mcf) 2,963 2,485 2,833 2,154
Total (BOE)(a) 2,684 2,550 2,593 2,468
Average sales prices before
derivatives:
Oil (per Bbl) $ 55.65 $ 86.57 $ 95.63 $ 68.07
Natural gas (per Mcf) $ 7.47 $ 7.48 $ 9.43 $ 7.28
Total (per BOE)(a) $ 53.65 $ 79.80 $ 88.53 $ 64.53
Average NYMEX prices(b)
Oil (per Bbl) $ 58.51 $ 90.68 $ 99.74 $ 72.31
Natural gas (per Mcf) $ 6.38 $ 6.97 $ 8.89 $ 6.83
(a) Natural gas is converted at the rate of six Mcf to one BOE and
oil is converted at a rate of one Bbl to one BOE
(b) Based upon the average of bid week prompt month prices
REX ENERGY CORPORATION
REGIONAL OPERATIONAL HIGHLIGHTS
(Unaudited)
Production and Revenue by Basin
------------------------------------------
Three Months Ended Years Ended
December 31, December 31,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Appalachian
Revenues before
derivatives- Natural gas
($ in Thousands) $ 2,035 $ 1,710 $ 9,783 $ 5,725
Volumes (MCF) 272,598 228,640 1,036,891 786,095
Average price before
derivatives $ 7.47 $ 7.48 $ 9.43 $ 7.28
Illinois
Revenues before
derivatives- Oil ($ in
Thousands) $ 11,213 $ 17,011 $ 74,230 $ 52,408
Volumes (BBL) 201,495 196,490 776,185 769,911
Average price before
derivatives $ 55.65 $ 86.57 $ 95.63 $ 68.07
REX ENERGY CORPORATION
OIL AND GAS DERIVATIVES
(Unaudited)
% of Current
Year Volume Production Average Floor Average Ceiling
---- ---------- ------------ ------------- ---------------
Oil
---
2009 635 MBbls 85% $ 63.17 $ 74.77
2010 588 MBbls 82% $ 62.71 $ 79.31
Natural Gas
-----------
2009 950 Mmcf 95% $ 7.01 $ 8.91
2010 960 Mmcf 100% $ 7.56 $ 10.48
2011 720 Mmcf 78% $ 8.00 $ 14.75
Non-GAAP Financial Measures
EBITDAX
"EBITDAX", for any defined period, the sum of net income for such period plus the following expenses, charges or income to the extent deducted from or added to net income in such period: interest, income taxes, depreciation, depletion, amortization, accretion, unrealized losses from financial derivatives, exploration expenses, and other similar non-cash charges, minus all non-cash income, including but not limited to, income from unrealized financial derivatives, added to net income. EBITDAX, as defined above, is used as a financial measure by Rex Energy's management team and by other users of its financial statements, such as the company's commercial bank lenders, to analyze such things as:
* Rex Energy's operating performance and return on capital in comparison to those of other companies in its industry, without regard to financial or capital structure; * The financial performance of the company's assets and valuation of the entity, without regard to financing methods, capital structure or historical cost basis; * Rex Energy's ability to generate cash sufficient to pay interest costs, support its indebtedness and make cash distributions to its stockholders; and * The viability of acquisitions and capital expenditure projects and the overall rates or return on alternative investment opportunities
EBITDAX is not a calculation based on GAAP financial measures and should not be considered as an alternative to net income (loss) in measuring the company's performance, nor used as an exclusive measure of cash flow, because it does not consider the impact of working capital growth, capital expenditures, debt principal reductions, and other sources and uses of cash, which are disclosed in the company's statements of cash flows.
Rex Energy has reported EBITDAX because it is a financial measure used by its existing commercial lenders, and because this measure is commonly reported and widely used by investors as an indicator of a company's operating performance and ability to incur and service debt. You should carefully consider the specific items included in the company's computations of EBITDAX. While Rex Energy has disclosed its EBITDAX to permit a more complete comparative analysis of its operating performance and debt servicing ability relative to other companies, you are cautioned that EBITDAX as reported by the company may not be comparable in all instances to EBITDAX as reported by other companies. EBITDAX amounts may not by fully available for management's discretionary use, due to requirements to conserve funds for capital expenditures, debt service and other commitments.
Rex Energy believes that EBITDAX assists its lenders and investors in comparing a company's performance on a consistent basis without regard to certain expenses, which can vary significantly depending upon accounting methods. Because the company may borrow money to finance its operations, interest expense is a necessary element of its costs and ability to generate cash available for distribution. Because Rex Energy uses capital assets, depreciation and amortization are also necessary elements of its costs. Additionally, the company is required to pay federal and state taxes, which are necessary elements of its costs. Therefore, any measures that exclude these elements have material limitations.
To compensate for these limitations, Rex Energy believes it is important to consider both net income (loss) determined under GAAP and EBITDAX to evaluate its performance.
The following table presents a reconciliation of the company's net (loss) from continuing operations to its EBITDAX from continuing operations for each of the periods presented ($ in thousands):
Three Months Ended Years Ended
December 31, December 31,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Net Loss From Continuing
Operations $(32,562) $(10,944) $(40,978) $(15,530)
Add Back Depletion,
Depreciation, Amortization &
Accretion 23,543 5,552 37,904 17,804
Add Back Non-Cash
Compensation Expense 1,423 211 2,990 211
Add Back Interest Expense 316 361 1,342 5,646
Add Back Exploration and
Impairment Expenses 72,215 1,238 74,610 1,238
Less Interest Income (8) (12) (328) (15)
Add Back (Gains) Losses on
Disposal of Assets 42 10 6,468 (12)
Add Back Unrealized Losses
(Gains) from Financial
Derivatives (55,858) 17,155 (43,746) 26,250
Less Minority Interest Share
of Net Loss -- -- -- (6,152)
Less Income Tax Benefit (3,378) (7,222) (9,167) (7,365)
-------- -------- -------- --------
EBITDAX From Continuing
Operations $ 5,733 $ 6,349 $ 29,095 $ 22,075
Earnings Comparable with Analyst Estimates
"Earnings Comparable with Analyst Estimates" means, for any period, the sum of net income for such period plus the following expenses, charges or income to the extent deducted from or added to net income in such period: minority interest share of net income which were acquired as part of the company's reorganization on July 31, 2007, deferred income taxes, unrealized gains or losses from financial derivatives, minus gains from unrealized financial derivatives, minus deferred income tax benefits, added to net income. Earnings Comparable with Analyst Estimates, as defined above, is used as a financial measure by Rex Energy's management team and by other users of its financial statements, to analyze its financial performance without regard to minority interests which were all acquired as part of the company's reorganization on July 31, 2007, non-cash deferred taxes and non-cash unrealized losses or gains from oil and gas derivatives. Earnings Comparable with Analyst Estimates is not a calculation based on GAAP financial measures and should not be considered as an alternative to net income (loss) in measuring the company's performance.
Rex Energy has reported Earnings Comparable with Analyst Estimates because it believes that this measure is commonly reported and widely used by investors as an indicator of a company's operating performance. You should carefully consider the specific items included in the company's computation of this measure. You are cautioned that Earning Comparable with Analyst Estimates as report by Rex Energy may not be comparable in all instances to that reported by other companies.
To compensate for these limitations, the company believes it is important to consider both net income determined under GAAP and Earnings Comparable with Analyst Estimates.
The following table presents a reconciliation of Rex Energy's net (loss) from continuing operations to its Earnings Comparable with Analyst Estimates for each of the periods presented ($ in thousands):
Three Months Ended Years Ended
December 31, December 31,
--------------------------------------
2008 2007 2008 2007
-------- ------------------ --------
Net Loss From Continuing
Operations $(32,562) $(10,944) $(40,978) $(15,530)
Adjustment for certain
non-cash items
Minority Interest Share of
Loss -- -- -- (6,152)
Unrealized (Gain) Loss on
Derivatives (55,858) 17,155 (43,746) 26,250
Exploration and Impairment
Expense 72,215 1,238 74,610 1,238
Non-cash Compensation Expense 1,423 211 2,990 211
(Gain) Loss on Sale or
Disposal of Assets 42 10 6,468 (12)
Income Tax Benefit (3,378) (7,222) (9,167) (7,365)
-------- -------- -------- --------
Net Income (Loss) From
Continuing Operations Before
Income Taxes Comparable to
Analysts Estimates $(18,118) $ 448 $ (9,823) $ (1,360)
Discontinued Operations
On September 3, 2008, Rex Energy announced its plans to divest its operations in the Southwestern Region, which are located predominately in the Permian Basin. Pursuant to accounting rules for discontinued operations, the company has classified all 2008 and prior period amounts to its operations in the Southwestern Region as discontinued operations.
As of December 31, 2008, Rex Energy recorded an impairment charge of $8.7 million for the write-down of its Southwestern Region assets to the fair value associated with the sale. Summarized financial information for discontinued operations is set forth below ($ in thousands):
Three Months Ended Years Ended
December 31, December 31,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenues:
Oil and Gas Sales $ 10 $ 1,523 $ 6,051 $ 5,392
Other Revenue -- 84 304 350
-------- -------- -------- --------
Total Operating Revenue 10 1,607 6,355 5,742
-------- -------- -------- --------
Costs and Expenses:
Production and Lease Operating
Expense 30 703 1,799 2,116
General and Administrative
Expense 227 236 907 794
Exploration Expense of Oil and
Gas Properties 3 6 2,198 1,710
Impairment Expense of Oil and
Gas Properties 8,729 -- 8,729 --
Depreciation, Depletion,
Amortization and Accretion (35) 207 1,565 1,817
(Gain) Loss on Sale of Oil
and Gas Properties -- -- 41 (173)
Unrealized Loss from
Derivatives 558 -- 558 --
Other Income -- (168) (2) (189)
-------- -------- -------- --------
Total Costs and Expenses 9,512 984 15,795 6,075
-------- -------- -------- --------
Income (Loss) from Discontinued
Operations Before Income Taxes (9,502) 623 (9,440) (333)
Income Tax (Expense) Benefit 1,761 (250) 1,736 (348)
-------- -------- -------- --------
Income (Loss) From Discontinued
Operations, net of taxes $ (7,741) $ 373 $ (7,704) $ (681)
======== ======== ======== ========