Regulatory News:
Toreador Resources Corporation (NASDAQ: TRGL / NYSE Euronext
Paris: TOR) today announced first quarter 2011 financial
results.
- First Quarter 2011 Revenue of $9.2
million (resulting from $7.9M in oil sales and $1.3M of Other
Operating Income) compared to $5.5 million in the first quarter
2010.
- Production for the three months ended
March 31, 2011 of 78,121 barrels.
- For the three months ended March 31,
2011, cash and cash equivalents balance of $16.0 million.
- Concessions representing 93% of our
reserves as of 31 December, 2010 renewed to January 1, 2036.
Mr. Craig McKenzie, President and CEO of Toreador, said, “Our
first quarter 2011 results reflect the strength and reliability of
our base oil business."
McKenzie continued, "As the oil industry in France looks to
adapt to modern resource development and technological change, the
French legislature is considering a number of new bills of law to
provide additional oversight to the industry. Toreador continues to
actively work for stakeholder alignment and as developments unfold,
we will update shareholders."
McKenzie concluded, “As we move forward in 2011, we will
continue to prepare for our drilling operations and look for
further ways to create shareholder value.”
FIRST QUARTER 2011 FINANCIAL
RESULTS
(Unaudited)
Three Months Ended
March 31, Change Change ($ millions,
except where noted)
2011 2010 (units)
(%) Revenue and other income $ 9.2 $ 5.5 $ 3.7 67 % Sale and
other operating revenue $ 7.9 $ 5.5 $ 2.4 43 % Other income $ 1.3 $
- $ 1.3 Operating loss $ (2.2 ) $ (1.8 ) $ (0.4 ) 22 % Loss from
discontinued operations $ (0.2 ) $ (0.6 ) $ 0.4 -72 % Loss
available to common shares $ (5.3 ) $ (7.5 ) $ 2.2 -30 % Basic loss
per share ($/share) - Cont. Ops $ (0.20 ) $ (0.30 ) $ 0.10 -34 %
Diluted loss per share ($/share) - Cont. Ops $ (0.20 ) $ (0.30 ) $
0.10 -34 % Capital expenditures $ 0.08 $ 0.11 $ (0.03 ) -31 %
Production (MBbl) 78.12 78.57 (0.45 ) -1 % Average realized price
($/Bbl) $ 103.8 $ 70.5 $ 33.3 47 %
For the first quarter 2011, consolidated
revenue was up 67% to $9.2 million. Revenue increased due to
a 43% increase in sales and other operating revenue as well as an
increase in other income.
Sales and other operating revenue
for the three months ended March 31, 2011 was $7.9 million, as
compared to sales and other operating revenue of $5.5 million for
the comparable period in 2010. This increase is primarily due to
the global increase in oil price. The increase in the average
realized price for oil from $70.5 per barrel in the first quarter
of 2010 to $103.8 per barrel for the comparable period in 2011
resulted in an increase of revenue of $ 2.6 million. Production
remained relatively stable, decreasing from 79 MBbls in 2010 to 78
MBbls in 2011.
Other income for the three months
ended March 31, 2011 was $1.3 million as compared to zero for last
year, which represented $1.3 million invoiced to Hess for all
personal general and administrative expenses associated with our
activities as operator of the exploration permits in the Paris
Basin under the partnership agreement entered into with Hess on May
10, 2010.
Lease operating expense was $2.6
million, or $32.70 per Bbl produced, for the three months ended
March 31, 2011, as compared to $1.2 million, or $15.79 per Bbl
produced, for the comparable period in 2010. This increase is
mainly due to the reclassification of certain costs associated with
particular properties as lease operating expenses which in the same
period last year were classified as general and administrative
expenses, but following the strategic partnership with Hess are now
mainly incurred in connection with our existing oil production and
conventional reservoirs development and therefore have been
reclassified as lease operating expenses. Lease operating expense
for the first quarter 2011 also includes inventory turnover
variation for an amount of $75,000.
Exploration expense for the three
months ended March 31, 2011 was $0.63 million, as compared to $0.02
million for the comparable period in 2010. This increase is
primarily due to expenses associated with geological and technical
studies the Company conducted and commissioned in connection with
conventional prospects in the Paris Basin.
Depreciation, depletion and amortization
expense for the three months ended March 31, 2011, was $1.4
million, or $18.42 per BOE produced, as compared to $1.0 million,
or $12.78 per BOE produced for the three months ended March 31,
2010. This increase is primarily due to a change in our UOP
accounting method and estimated life of wells.
General and administrative expense
(including stock compensation expense) was $4.6 million for the
three months ended March 31, 2011, as compared to $5.0 million for
the comparable period of 2010.
Excluding stock compensation expense, general and administrative
expense was $3.5 million for the three months ended March 31, 2011,
compared with $3.9 million for the comparable period of 2010. This
decrease is primarily due to the ongoing effort to reduce general
and administrative expense as well as to a reclassification of
certain oil production related expenses from general and
administrative expenses to lease operating expenses. Stock
compensation expense was $1.2 million for the three months ended
March 31, 2011 compared with $1.1 million for the comparable period
of 2010.
We recorded a loss on our oil derivative
contract for the three months ended March 31, 2011 of $2.3
million as compared to a gain of $31,000 in the three months ended
March 31, 2010 representing the unrealized loss on the commodity
derivative contracts with Vitol Trading.
We recorded a loss on foreign currency
exchange of $0.7 million for the three months ended March
31, 2011 compared with a gain of $0.2 million for the same period
last year. This increase is mainly due to the weakening of the U.S.
dollar compared to the Euro over the same period.
Interest expense was $1.4 million
for the first quarter ended March 31, 2011, as compared to $0.7
million for the comparable period of 2010. The increase is mainly
due to the additional interest payments relating to the New
Convertible Senior Notes issued in February 2010 and
amortization of loan fees associated to the New Convertible Senior
Notes, as well as a payment of $713,000 under the commodity
derivative contract with Vitol trading (the Dated Brent price being
higher than the selling price of $91.00 per barrel under the
derivative contract).
We recorded a loss of $0.2 million on discontinued operations for the three months ended
March 31, 2011 mainly due to various legal costs and partially
offset by royalties received.
As a result of the above, for the three months ended March 31,
2011, the Company reported a loss available to common shares of
$5.3 million, or $0.20 per diluted share, compared to a loss
available to common shares of $7.5 million for the first quarter
ended 2010, or $0.30 per diluted share.
Production, Production Prices and Costs
The following table summarizes our oil production, net of
royalties, for the periods indicated for France. It also summarizes
calculations of our total average unit sales prices and unit
costs.
For the Three Months EndedMarch
31,
2011 2010 Production Oil (Bbls) 78,121
78,573 Daily average (Bbls/Day) 868 873
Unit prices Average
oil price ($/Bbl) $ 103.82 $ 70.50
Unit costs ($/BOE) Lease
operating $ 32.70 $ 15.79 Exploration and acquisition* 8.09 0.23
Depreciation, depletion and amortization 18.42 12.78 Dry hole costs
- - General and administrative 59.47 63.70 Total $ 118.68 $ 92.50
* Exploration and acquisition expense are net of personal,
general and administrative cost of Toreador Energy France as
operator and invoiced to Hess under the Hess Investment
Agreement.
Our proved reserves at December 31, 2010 were 5.5 Mbbls. All of
our proved reserves are located in the Paris Basin, France. The
Neocomian Complex, one of our two producing assets, accounted for
93.32% of our proved reserves. The decrease of our proved reserves
from 5.8 Mbbls in 2009, to 5.5 Mbbs in 2010, can be explained
entirely by our production for the year.
OTHER UPDATES
CONFERENCE CALL
A conference call to discuss first quarter 2011 and fiscal year
2010 results and current operational activities will be held today
at 11:00 am EDT.
Mr. Craig M. McKenzie, President and Chief Executive Officer of
the Company, will lead the conference call.
Approximately 10 minutes before the conference call,
participants who wish to ask questions during the call should dial
1-800-299-9630 from within the U.S. or 001-617-786-2904 from
outside the U.S. and provide the conference ID# 47510402 to access
the call.
Those who wish only to listen to the live audio webcast may
access the webcast via Toreador’s internet home page at
www.toreador.net by selecting the “Investor Relations” link on the
home page and then selecting the “Conference Call” link, or click
on this link to access the call
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=68298&eventID=3973654
Those unable to participate in the live call may hear the
rebroadcast for up to twelve months after the conference call at
www.toreador.net by selecting the “Investor Relations” link on the
home page and then selecting the “Conference Call” link. Phone
replays of the call also will be available for 14 days after the
call by dialing 1-888-286-8010 within the U.S. or 001-617- 801-6888
from outside the U.S., Passcode 99395612.
Safe-Harbor Statement – Except for the historical
information contained herein, the matters set forth in this news
release are "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. Toreador
intends that all such statements be subject to the "safe-harbor"
provisions of those Acts. Many important risks, factors and
conditions may cause Toreador's actual results to differ materially
from those discussed in any such forward-looking statement. These
risks include, but are not limited to, estimates of reserves,
estimates of production, future commodity prices, exchange rates,
interest rates, geological and political risks, drilling risks,
product demand, transportation restrictions, the ability of
Toreador to obtain additional capital, and other risks and
uncertainties described in the company's filings with the
Securities and Exchange Commission. The historical results achieved
by Toreador are not necessarily indicative of its future prospects.
The company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
Cautionary Note to Investors – The Securities and
Exchange Commission (“SEC”) permits oil and gas companies, in their
filings with the SEC, to disclose only proved reserves that a
company has demonstrated by actual production or conclusive
formation tests to be economically and legally producible under
existing economic and operating conditions. We use certain terms in
this release, such a probable reserves and possible reserves, that
the SEC’s guidelines strictly prohibit us from including in filings
with the SEC. Investors are urged to also consider closely the
disclosure in our most recent Form 10-K, available from use by
calling (214) 559-3933. You can also obtain this form from the SEC
at www.sec.gov.
ABOUT TOREADOR
Toreador Resources Corporation is an independent international
energy company engaged in the acquisition, development, exploration
and production of crude oil. The company holds interests in
developed and undeveloped oil properties in France. More
information about Toreador may be found at the company's web site,
http://www.toreador.net.
APPENDIX 1: CONSOLIDATED BALANCE
SHEETS
March 31, December 31,
2011 2010 (Unaudited) (In
thousands) ASSETS Current assets: Cash and cash
equivalents $ 16,009 $ 21,616 Restricted cash 2,810 - Accounts
receivable 6,047 4,427 Income tax receivable - - Other 3,451
2,959 Total current assets 28,317 29,002 Oil
properties Oil properties, gross 116,043 108,979 Accumulated
depletion, depreciation and amortization (47,644 ) (43,201 ) Oil
properties, net 68,399 65,778 Investments 200 200 Goodwill
3,918 3,685 Other assets 1,502 1,634 Total
assets $ 102,336 $ 100,299
LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and
accrued liabilities $ 9,549 $ 11,890 Deferred lease payable —
current portion 115 113 Derivatives 3,587 1,330 Income taxes
payable 7,754 6,341 Total current liabilities 21,005
19,674 Long-term accrued liabilities 354 348 Deferred lease
payable, net of current portion 300 329 Asset retirement
obligations 7,446 6,866 Deferred income tax 15,276 14,618 Long-term
debt 34,150 34,394 Total liabilities 78,531 76,229
Stockholders' equity: Common stock, $0.15625 par value, 50,000,000
shares authorized; 25,957,705 and 25,849,705 shares issued at March
31, 2011 and December 31, 2010, respectively 4,056 4,039 Additional
paid-in capital 201,401 200,230 Accumulated deficit (191,327 )
(186,068 ) Accumulated other comprehensive income 12,209 8,403
Treasury stock at cost, 721,027 shares for 2010 and 2011 (2,534 )
(2,534 ) Total stockholders' equity 23,805 24,070 Total
liabilities and stockholders' equity $ 102,336 $ 100,299
The accompanying notes are an integral part of these
financial statements.
APPENDIX 2: CONSOLIDATED STATEMENT OF
OPERATIONS AND COMPREHENSIVE INCOME
Three Months Ended March 31,
2011 2010 (Unaudited) (In
thousands, except per share data) Revenues and other income:
Sales and other operating revenue $ 7,855 $ 5,511 Other income
1,340 - Total revenues and other income 9,195 5,511
Operating costs and expenses: Lease operating expense 2,555 1,240
Exploration expense 632 18 Depreciation, depletion and amortization
1,439 1,004 Accretion on discounted assets and liabilities (112 )
57 General and administrative 4,646 5,005 Loss (gain) on oil
derivative contracts 2,257 (31 ) Total operating costs and
expenses 11,416 7,294 Operating loss (2,221 ) (1,783 ) Other
(expense) income: Foreign currency exchange gain (loss) (698 ) 205
Loss on the early extinguishment of debt - (4,256 ) Interest
expense, net of interest capitalized (1,423 ) (740 ) Total other
income (expense) (2,121 ) (4,791 ) Loss before taxes from
continuing operations (4,343 ) (6,574 ) Income tax provision 753
330 Loss from continuing operations, net of income
taxes (5,095 ) (6,904 ) Loss from discontinued operations, net of
income taxes (163 ) (575 ) Net loss available to common shares $
(5,259 ) $ (7,479 ) Basic loss available to common shares
per share: From continuing operations, net of income taxes $ (0.20
) $ (0.30 ) From discontinued operations, net of income taxes (0.01
) (0.02 ) $ (0.21 ) $ (0.32 ) Diluted loss available to
common shares per share: From continuing operations, net of income
taxes $ (0.20 ) $ (0.30 ) From discontinued operations, net of
income taxes (0.01 ) (0.02 ) $ (0.21 ) $ (0.32 ) Weighted
average shares outstanding: Basic 25,930 23,002
Diluted 25,930 23,002 The accompanying notes
are an integral part of these financial statements.
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