OKLAHOMA CITY, Nov. 12 /PRNewswire-FirstCall/ -- Quest Resource Corporation (NASDAQ:QRCP), the largest operating company in the Cherokee Basin, provided today an update on its financial results for the quarter ended September 30, 2007. Net sales volumes for the quarter ended September 30, 2007 were 4,554 MMcfe, up 37% from the year ago period. The Company provided selected financial and operating data below in a comparative format for the quarters ended September 30, 2006 and 2007.
SELECT FINANCIAL AND OPERATING DATA
For The Quarters Ended September 30, 2006 and 2007
(Dollars in thousands, except per share data) Quarters Ended
September 30
2006 2007
(unaudited)
Total Revenue $ 16,705 $ 30,277
Net Income (Loss) Before Minority Interest (10,073) 2,549
Minority Interest -- (576)
Net Income (Loss) (10,073) 1,973
Net Income (Loss) Per Share Basic (0.46) 0.09
Net Income (Loss) Per Share Diluted (0.46) 0.09
Operating Income (Loss) (2,785) 5,064 EBITDA(1) 5,090 14,340 Weighted Average Shares Outstanding Basic 22,123,514 22,296,179
Weighted Average Shares Outstanding Diluted 22,123,514 22,308,139 Net Sales Volumes (MMcfe) 3,331 4,554
Average Price Received per Mcfe $5.67 $6.24
Wells Drilled 149 192
Wells Recompleted 39 13
Wells Connected 194 199
Pipeline Miles Constructed 106 107
Well Completion % 99% 99%
Total Expenditures(2) $44,608 $49,181 (1) - A reconciliation of Net Income to EBITDA follows this news release. (2) - Capital expenditures represent cash transactions Management Comments Jerry Cash, Chief Executive Officer of Quest Resource said, "We have continued with our development program and connection of our wells through Quest Midstream in the third quarter, and the successful execution of this development program drove a 37% increase in our net sales volumes from the year ago quarter to 4,554 MMcfe from 3,331 MMcfe". This is an average of 49.5 MMcfe per day for the third quarter of 2007 as compared to 36.2 MMcfe per day for the third quarter of 2006. We expect to continue our active drilling and completion program for the remainder of the year and are on track to achieve our goal of 558 well connections for the year." Conference Call Quest will host a conference call to discuss 2007 third quarter operating and financial results on Tuesday, November 13, 2007 at 4:00 p.m. Eastern time. There will be a question and answer period following the presentation.
Call: 866-322-9730 (US/Canada) and 706-679-6054 (International)
Passcode 23471372 Internet: Live and rebroadcast over the Internet: simply log on to
http://www.qrcp.net/ Replay: Available through November 15, 2007 at 800-642-1687 (US/Canada)
and 706-645-9291 (International) using passcode 23471372 and at
http://www.qrcp.net/
About Quest Resource Corporation
Quest Resource is the largest producer of natural gas in the Cherokee Basin, which is located in southeast Kansas and northeast Oklahoma. The Company is a fully integrated E&P company, operating more than 1,900 producing wells which produce into its controlled 1,800+ mile gathering pipeline system, and utilizes its own fleet of completion equipment to meet its drilling and completion program. Quest currently has more than 2,200 locations in its drilling inventory. For more information, visit the Quest Resource website at http://www.qrcp.net/.
Forward-Looking Statements Opinions, forecasts, projections or statements other than statements of historical fact, are forward-looking statements that involve risks and uncertainties. Forward-looking statements in this announcement are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Although Quest believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Actual results may differ materially due to a variety of factors, including without limitation: the uncertainty involved in exploring for and developing new natural gas reserves, the sale prices of natural gas and oil, labor and raw material costs, the availability of sufficient capital resources to carry out the Company's anticipated level of new well development and construction of related pipelines, environmental issues, weather conditions, competition, general market conditions, and other risks detailed in Quest's filings with the Securities and Exchange Commission. You can find Quest's filings with the Securities and Exchange Commission at http://www.qrcp.net/ or at http://www.sec.gov/. By making these forward-looking statements, Quest undertakes no obligation to update these statements for revisions or changes after the date of this release.
Reconciliation of Net Income to EBITDA EBITDA, which is Earnings before interest, income taxes and depreciation, depletion and amortization expense, is presented because it is used by us for, among other things, determining compliance with certain bank covenants, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of GAAP results, to compare the performance of companies. EBITDA is not a measurement of financial performance under generally accepted accounting principles and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with generally accepted accounting principles.
Reconciliation of Net Income to EBITDA
For the Quarters Ended September 30, 2006 and 2007
(in thousands) Quarters Ended September 30,
2006 2007
(unaudited)
Net Income (Loss) $(10,073) $1,973
Minority Interest -- 576
Interest Expense, Net 6,956 8,054
Income Tax Expense -- --
Depreciation, Depletion & Amortization Expense 7,875 9,276
Change in Derivative Fair Value 332 (5,539)
EBITDA $5,090 $14,340
DATASOURCE: Quest Resource Corporation CONTACT: Jerry D. Cash, Chairman and Chief Executive Officer, or David E. Grose, Chief Financial Officer, +1-405-600-7704, both of Quest Resource Corporation Web site: http://www.qrcp.net/
|