LAFAYETTE, La., May 4, 2015 /PRNewswire/ -- PetroQuest
Energy, Inc. (NYSE: PQ) today announced a net loss to common
stockholders for the quarter ended March 31, 2015 of
($122,240,000), or ($1.89) per share, compared to first quarter 2014
net income available to common stockholders of $10,043,000, or $0.15 per share. During the first quarter of
2015, the Company recorded a non-cash ceiling test write-down
of $108,911,000 as a result of
the impact of lower commodity prices on its net discounted cash
flows from its proved reserves.
Discretionary cash flow for the first quarter of 2015 was
$10,606,000, as compared to
$34,488,000 for the comparable 2014
period. See the attached schedule for a reconciliation of net
cash flow provided by operating activities to discretionary cash
flow.
Oil and gas sales during the first quarter of 2015 were
$33,451,000, as compared to
$59,966,000 in the first quarter of
2014. Production for the first quarter of 2015 was 10,375,330 Mcfe,
as compared to 9,769,110 Mcfe in the first quarter of 2014.
Stated on an Mcfe basis, unit prices received during the first
quarter of 2015 were 48% lower than the comparable 2014 period.
Lease operating expenses ("LOE") for the first quarter of 2015
totaled $10,902,000, as compared to
$12,258,000 in the first quarter of
2014. LOE per Mcfe was $1.05 in the
first quarter of 2015, as compared to $1.25 in the first quarter of 2014. The decrease
in total and per unit lease operating expenses is primarily the
result of increased production from the Company's onshore
properties which typically incur lower per unit lease operating
expenses as well as the divestment of our Eagle Ford properties
during September 2014.
Depreciation, depletion and amortization ("DD&A") on oil and
gas properties for the first quarter of 2015 was $1.96 per Mcfe as compared to $2.06 per Mcfe in the first quarter of 2014. The
decrease in the per unit DD&A rate is primarily the result
of the Company's successful drilling programs in its Carthage and
Oklahoma fields, which have a
lower cost per unit as compared to the overall amortization
base.
General and administrative expenses during the first quarter of
2015 totaled $5,339,000, as compared
to $6,242,000 during the 2014 period.
The decrease in general and administrative expenses is primarily
due to lower employee related costs including share based
compensation during the 2015 period. Included in first quarter 2015
and 2014 general and administrative expenses were share based
compensation costs of $1,519,000 and
$1,762,000, respectively.
Interest expense for the first quarter of 2015 increased to
$7,874,000, as compared to
$7,636,000 in the first quarter of
2014. The increase in interest expense was primarily the result of
increased borrowings under the Company's revolving credit
facility.
The following table sets forth certain information with respect
to our oil and gas operations for the periods noted. These
historical results are not necessarily indicative of results to be
expected in future periods.
|
Three Months Ended
March 31,
|
|
2015
|
2014
|
Production:
|
|
|
Oil (Bbls)
|
147,214
|
|
242,283
|
|
Gas (Mcf)
|
7,915,504
|
|
7,184,130
|
|
Ngl (Mcfe)
|
1,576,540
|
|
1,131,282
|
|
Total Production
(Mcfe)
|
10,375,330
|
|
9,769,110
|
|
Avg. Daily Production
(MMcfe/D)
|
115.3
|
|
108.5
|
|
Sales:
|
|
|
Total oil
sales
|
$
|
6,952,900
|
|
$
|
24,140,656
|
|
Total gas
sales
|
21,650,095
|
|
29,557,335
|
|
Total ngl
sales
|
4,848,046
|
|
6,268,406
|
|
Total oil and gas
sales
|
$
|
33,451,041
|
|
$
|
59,966,397
|
|
Average sales
prices:
|
|
|
Oil (per
Bbl)
|
$
|
47.23
|
|
$
|
99.64
|
|
Gas (per
Mcf)
|
2.74
|
|
4.11
|
|
Ngl (per
Mcfe)
|
3.08
|
|
5.54
|
|
Per Mcfe
|
3.22
|
|
6.14
|
|
The above sales and average sales prices include increases
(decreases) to revenue related to the settlement of gas hedges of
$2,324,000 and ($2,969,000), Ngl hedges of $21,000 and zero and oil hedges of $27,000 and ($434,000) for the three months ended
March 31, 2015 and 2014,
respectively.
The following initiates guidance for the second quarter of
2015:
|
Guidance
for
|
Description
|
2nd Quarter
2015
|
|
|
Production volumes
(MMcfe/d)
|
125 - 131
|
|
|
Percent
Gas
|
76%
|
Percent
Oil
|
8%
|
Percent
NGL
|
16%
|
|
|
Expenses:
|
|
Lease operating
expenses (per Mcfe)
|
$1.05 -
$1.15
|
Production taxes (per
Mcfe)
|
$0.08 -
$0.12
|
Depreciation,
depletion and amortization (per Mcfe)
|
$1.65 -
$1.75
|
General and
administrative (in millions)*
|
$5.0 -
$5.5
|
Interest expense (in
millions)
|
$7.6 -
$8.1
|
|
|
|
|
* Includes non-cash
stock compensation estimate of $1.6 million
|
Operations Update
In East Texas, the Company
recently completed its PQ #18 horizontal Cotton Valley well (NRI - 38%) and will begin
flowback this week. The Company's previously reported PQ #16
(NRI - 77%) and #17 wells (NRI - 77%), which achieved maximum
24-hour rates of 16.7 MMcfe/d and 14.2 MMcfe/d, respectively, have
realized 30 day average production rates of 16.0 MMcfe/d and 13.7
MMcfe/d, respectively. The initial and 30 day average rates
for the 2015 wells are 36% and 29% higher than the respective
average rates of the six wells drilled during 2014.
The Company's PQ #18 well is the last well scheduled in its 2015
Cotton Valley program. Based upon the success of the 2014 and 2015
drilling programs the Company will monitor commodity prices and
service costs to determine an optimal time to re-initiate its
Cotton Valley drilling
program.
In the Gulf Coast, the Company's Thunder Bayou facility project
is in the final stages of construction. Adverse weather has
slightly delayed the initiation of production and the Company now
expects production to commence in approximately two to three weeks
at a gross rate of approximately 38,000 Mcfe/d (NRI - 37%).
The Company's Pintail and Merganser prospects in its
Fleetwood joint venture have reached total depth and have been
determined to be non-commercial. The Company's total net cost for
these two wells was approximately $1.6
million. Based upon improving oil prices and a lower service
cost environment, the Company is evaluating its initial horizontal
Widgeon prospect test (WI - 50%), which will target the liquids
rich Cockfield tight sand formation, during the second half of
2015.
In the Woodford, the Company
recently established production on nine wells in its West Relay
field. These wells (average NRI – 15%) achieved an average
per well maximum 24-hour gross rate of approximately 2,000 Mcf of
gas and 360 barrels of natural gas liquids. The Company continues
to run one rig in the wet gas area and expects to complete eight
wells during the second quarter. In addition, the Company has
recently begun completing eight dry gas wells (NRI – 14%) in its
Hoss field, which should have first production in approximately
four weeks.
Management Statement
"Our second quarter daily production guidance represents the
highest production run rate in the Company's history," said
Charles T. Goodson, Chairman, Chief
Executive Officer and President. "This record production profile
coupled with a minimal capex program in the back half of 2015
should provide free cash flow generation later this year and allow
us to achieve our 2015 goals of growing production while
maintaining our liquidity position."
About the Company
PetroQuest Energy, Inc. is an independent energy company engaged
in the exploration, development, acquisition and production of oil
and natural gas reserves in the Arkoma Basin, Texas, Louisiana and the shallow waters of the Gulf
of Mexico. PetroQuest's common stock trades on the New York
Stock Exchange under the ticker PQ.
Forward-Looking Statements
This news release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of
historical fact included in this news release are forward-looking
statements. Although PetroQuest believes that the expectations
reflected in these forward-looking statements are reasonable, these
statements are based upon assumptions and anticipated results that
are subject to numerous uncertainties and risks. Actual results may
vary significantly from those anticipated due to many factors,
including the volatility of oil and natural gas prices and
significantly depressed oil prices since the end of 2014, our
estimate of the sufficiency of our existing capital sources,
including availability under our senior secured bank credit
facility and the result of any borrowing base redetermination, our
ability to raise additional capital to fund cash requirements for
future operations, the effects of a financial downturn or negative
credit market conditions on our liquidity, business and financial
condition, the declines in the values of our properties that have
resulted in and may in the future result in additional ceiling test
write-downs, our ability to replace reserves and sustain
production, our ability to find oil and natural gas reserves that
are economically recoverable, the uncertainties involved in
prospect development and property acquisitions or dispositions and
in projecting future rates of production or future reserves, our
ability to realize the anticipated benefits from our joint
ventures, the timing of development expenditures and drilling of
wells, hurricanes, tropical storms and other natural disasters,
changes in laws and regulations as they relate to our operations,
including our fracking operations or our operations in the
Gulf of Mexico, and the operating
hazards attendant to the oil and gas business. In particular,
careful consideration should be given to cautionary statements made
in the various reports PetroQuest has filed with the SEC.
PetroQuest undertakes no duty to update or revise these
forward-looking statements.
Click here for more information:
"http://www.petroquest.com/news.html?=BizID=1690&1=1"
PETROQUEST ENERGY,
INC.
|
Consolidated Balance
Sheets
|
(Amounts in
Thousands)
|
|
|
March 31,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
14,209
|
|
|
$
|
18,243
|
|
Revenue
receivable
|
13,691
|
|
|
16,485
|
|
Joint interest
billing receivable
|
32,202
|
|
|
46,778
|
|
Derivative
asset
|
11,121
|
|
|
8,631
|
|
Prepaid drilling
costs
|
1,033
|
|
|
847
|
|
Other current
assets
|
6,684
|
|
|
5,566
|
|
Total current
assets
|
78,940
|
|
|
96,550
|
|
Property and
equipment:
|
|
|
|
Oil and gas
properties:
|
|
|
|
Oil and gas
properties, full cost method
|
2,270,360
|
|
|
2,222,753
|
|
Unevaluated oil and
gas properties
|
88,762
|
|
|
109,119
|
|
Accumulated
depreciation, depletion and amortization
|
(1,777,246)
|
|
|
(1,648,060)
|
|
Oil and gas
properties, net
|
581,876
|
|
|
683,812
|
|
Other property and
equipment
|
15,033
|
|
|
14,953
|
|
Accumulated
depreciation of other property and equipment
|
(10,649)
|
|
|
(10,313)
|
|
Total property and
equipment
|
586,260
|
|
|
688,452
|
|
Derivative
asset
|
192
|
|
|
—
|
|
Other assets, net of
accumulated depreciation and amortization of $8,426 and $7,847,
respectively
|
5,563
|
|
|
5,893
|
|
Total
assets
|
$
|
670,955
|
|
|
$
|
790,895
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable to
vendors
|
$
|
88,057
|
|
|
$
|
102,954
|
|
Advances from
co-owners
|
35,001
|
|
|
12,819
|
|
Oil and gas revenue
payable
|
20,849
|
|
|
22,333
|
|
Accrued interest and
preferred stock dividend
|
4,113
|
|
|
12,764
|
|
Asset retirement
obligation
|
1,910
|
|
|
2,756
|
|
Derivative
liability
|
138
|
|
|
—
|
|
Accrued acquisition
costs
|
8,238
|
|
|
17,690
|
|
Other accrued
liabilities
|
5,990
|
|
|
5,394
|
|
Total current
liabilities
|
164,296
|
|
|
176,710
|
|
Bank debt
|
85,000
|
|
|
75,000
|
|
10% Senior
Notes
|
350,000
|
|
|
350,000
|
|
Asset retirement
obligation
|
53,448
|
|
|
52,214
|
|
Other long-term
liability
|
447
|
|
|
62
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock,
$.001 par value; authorized 5,000 shares; issued and outstanding
1,495 shares
|
1
|
|
|
1
|
|
Common stock, $.001
par value; authorized 150,000 shares; issued and outstanding 64,815
and 64,721 shares, respectively
|
65
|
|
|
65
|
|
Paid-in
capital
|
287,454
|
|
|
285,957
|
|
Accumulated other
comprehensive income
|
7,018
|
|
|
5,420
|
|
Accumulated
deficit
|
(276,774)
|
|
|
(154,534)
|
|
Total stockholders'
equity
|
17,764
|
|
|
136,909
|
|
Total liabilities and
stockholders' equity
|
$
|
670,955
|
|
|
$
|
790,895
|
|
PETROQUEST ENERGY,
INC.
|
Consolidated
Statements of Operations
|
(Amounts in
Thousands, Except Per Share Data)
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2015
|
|
2014
|
Revenues:
|
|
|
|
Oil and gas
sales
|
$
|
33,451
|
|
|
$
|
59,966
|
|
Expenses:
|
|
|
|
Lease operating
expenses
|
10,902
|
|
|
12,258
|
|
Production
taxes
|
956
|
|
|
1,477
|
|
Depreciation,
depletion and amortization
|
20,654
|
|
|
20,428
|
|
Ceiling test
write-down
|
108,911
|
|
|
—
|
|
General and
administrative
|
5,339
|
|
|
6,242
|
|
Accretion of asset
retirement obligation
|
859
|
|
|
791
|
|
Interest
expense
|
7,874
|
|
|
7,636
|
|
|
155,495
|
|
|
48,832
|
|
Other
income:
|
|
|
|
Other
income
|
157
|
|
|
189
|
|
Income (loss) from
operations
|
(121,887)
|
|
|
11,323
|
|
Income tax
benefit
|
(927)
|
|
|
—
|
|
Net income
(loss)
|
(120,960)
|
|
|
11,323
|
|
Preferred stock
dividend
|
1,280
|
|
|
1,280
|
|
Income (loss)
available to common stockholders
|
$
|
(122,240)
|
|
|
$
|
10,043
|
|
Earnings per common
share:
|
|
|
|
Basic
|
|
|
|
Net income (loss) per
share
|
$
|
(1.89)
|
|
|
$
|
0.15
|
|
Diluted
|
|
|
|
Net income (loss) per
share
|
$
|
(1.89)
|
|
|
$
|
0.15
|
|
Weighted average
number of common shares:
|
|
|
|
Basic
|
64,774
|
|
|
63,846
|
|
Diluted
|
64,774
|
|
|
63,902
|
|
PETROQUEST ENERGY,
INC.
|
Consolidated
Statements of Cash Flows
|
(Amounts in
Thousands)
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2015
|
|
2014
|
Cash flows from
operating activities:
|
|
|
|
Net income
(loss)
|
$
|
(120,960)
|
|
|
$
|
11,323
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Deferred tax
benefit
|
(927)
|
|
|
—
|
|
Depreciation,
depletion and amortization
|
20,654
|
|
|
20,428
|
|
Ceiling test
writedown
|
108,911
|
|
|
—
|
|
Accretion of asset
retirement obligation
|
859
|
|
|
791
|
|
Share-based
compensation expense
|
1,478
|
|
|
1,389
|
|
Amortization costs
and other
|
591
|
|
|
557
|
|
Payments to settle
asset retirement obligations
|
(894)
|
|
|
(718)
|
|
Changes in working
capital accounts:
|
|
|
|
Revenue
receivable
|
2,794
|
|
|
2,464
|
|
Prepaid drilling and
pipe costs
|
(186)
|
|
|
(43)
|
|
Joint interest
billing receivable
|
14,439
|
|
|
2,684
|
|
Accounts payable and
accrued liabilities
|
(24,561)
|
|
|
246
|
|
Advances from
co-owners
|
22,182
|
|
|
6,033
|
|
Other
|
(1,149)
|
|
|
135
|
|
Net cash provided by
operating activities
|
23,231
|
|
|
45,289
|
|
Cash flows used in
investing activities:
|
|
|
|
Investment in oil and
gas properties
|
(36,033)
|
|
|
(41,792)
|
|
Investment in other
property and equipment
|
(80)
|
|
|
(205)
|
|
Net cash used in
investing activities
|
(36,113)
|
|
|
(41,997)
|
|
Cash flows provided
by (used in) financing activities:
|
|
|
|
Net proceeds for
share based compensation
|
405
|
|
|
911
|
|
Deferred financing
costs
|
(273)
|
|
|
(81)
|
|
Payment of preferred
stock dividend
|
(1,284)
|
|
|
(1,284)
|
|
Proceeds from bank
borrowings
|
15,000
|
|
|
5,000
|
|
Repayment of bank
borrowings
|
(5,000)
|
|
|
(5,000)
|
|
Net cash provided by
(used in) financing activities
|
8,848
|
|
|
(454)
|
|
Net increase
(decrease) in cash and cash equivalents
|
(4,034)
|
|
|
2,838
|
|
Cash and cash
equivalents, beginning of period
|
18,243
|
|
|
9,153
|
|
Cash and cash
equivalents, end of period
|
$
|
14,209
|
|
|
$
|
11,991
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Cash paid during the
period for:
|
|
|
|
Interest
|
$
|
17,943
|
|
|
$
|
18,131
|
|
Income
taxes
|
$
|
20
|
|
|
$
|
—
|
|
PETROQUEST ENERGY,
INC.
|
Non-GAAP Disclosure
Reconciliation
|
(Amounts In
Thousands)
|
|
|
Three Months
Ended
|
|
March 31,
|
|
2015
|
|
2014
|
Net income
(loss)
|
$
|
(120,960)
|
|
|
$
|
11,323
|
|
Reconciling
items:
|
|
|
|
Deferred tax
benefit
|
(927)
|
|
|
—
|
|
Depreciation,
depletion and amortization
|
20,654
|
|
|
20,428
|
|
Ceiling test
writedown
|
108,911
|
|
|
—
|
|
Accretion of asset
retirement obligation
|
859
|
|
|
791
|
|
Non-cash share based
compensation expense
|
1,478
|
|
|
1,389
|
|
Amortization costs and
other
|
591
|
|
|
557
|
|
Discretionary cash
flow
|
10,606
|
|
|
34,488
|
|
Changes in working
capital accounts
|
13,519
|
|
|
11,519
|
|
Settlement of asset
retirement obligations
|
(894)
|
|
|
(718)
|
|
Net cash flow
provided by operating activities
|
$
|
23,231
|
|
|
$
|
45,289
|
|
|
|
Note:
|
Management believes
that discretionary cash flow is relevant and useful information,
which is commonly used by analysts, investors and other interested
parties in the oil and gas industry as a financial indicator of an
oil and gas company's ability to generate cash used to internally
fund exploration and development activities and to service
debt. Discretionary cash flow is not a measure of financial
performance prepared in accordance with generally accepted
accounting principles ("GAAP") and should not be considered in
isolation or as an alternative to net cash flow provided by
operating activities. In addition, since discretionary cash
flow is not a term defined by GAAP, it might not be comparable to
similarly titled measures used by other companies.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/petroquest-energy-announces-first-quarter-2015-results-and-provides-operations-update-300077004.html
SOURCE PetroQuest Energy, Inc.