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FORM 10-Q FOR QUARTER ENDED JUNE 30, 2004PDF VersionUNITED STATES
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| TEXAS | 74-2073055 |
| (State of Incorporation) | (I.R.S. Employer Identification No.) |
|
|
|
| 16825 Northchase Dr., Suite 400 | |
| Houston, Texas | 77060 |
| (Address of principal executive offices) | (Zip Code) |
(281) 874-2700
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
Yes X No
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock,
as of the latest practicable date.
| Common Stock | 27,947,350 Shares |
| ($.01 Par Value) | (Outstanding at July 31, 2004) |
| (Class of Stock) |
June 30, 2004 December 31, 2003
ASSETS Current Assets: Cash and cash equivalents $ 86,879,237 $ 1,066,280 Accounts receivable -- Oil and gas sales 28,715,142 26,082,650 Joint interest owners 1,280,003 1,350,707 Other current assets 8,271,903 4,957,647 ---------------------- ---------------------- Total Current Assets 125,146,285 33,457,284 ---------------------- ---------------------- Property and Equipment: Oil and gas, using full-cost accounting Proved properties being amortized 1,371,533,116 1,305,763,355 Unproved properties not being amortized 68,570,079 67,557,969 ---------------------- ---------------------- 1,440,103,195 1,373,321,324 Furniture, fixtures and other equipment 11,303,233 10,602,786 ---------------------- ---------------------- 1,451,406,428 1,383,924,110 Less--Accumulated depreciation, depletion, and amortization (605,343,453) (567,464,334) ---------------------- ---------------------- 846,062,975 816,459,776 ---------------------- ---------------------- Other Assets: Deferred income taxes 2,805,904 1,905,909 Debt issuance costs 11,304,599 8,015,575 ---------------------- ---------------------- 14,110,503 9,921,484 ---------------------- ---------------------- $985,319,763 $859,838,544 =========== ===========
Liabilities and Stockholders' EquitySee accompanying notes to condensed consolidated financial statements.
| June 30, 2004 | December 31, 2003 | ||
|---|---|---|---|
| Liabilities and Stockholders' Equity | |||
| Current Liabilities: | |||
| Accounts payable and accrued liabilities | $ 19,988,733 | $ 26,247,477 | |
| Accrued capital costs | 15,737,355 | 29,417,542 | |
| Accrued interest | 7,448,478 | 8,748,656 | |
| Current portion of long-term debt | 92,477,213 | --- | |
| Undistributed oil and gas revenues | 6,387,622 | 4,939,667 | |
| ---------------------- | ---------------------- | ||
| Total Current Liabilities | 142,039,401 | 69,353,342 | |
| ---------------------- | ---------------------- | ||
| Long-Term Debt | 350,000,000 |
340,254,783 |
|
| Deferred Income Taxes | 54,697,197 |
43,498,682 |
|
| Asset Retirement Obligation | 8,957,941 | 9,340,473 | |
| Commitments and Contingencies | |||
| Stockholders' Equity: | |||
| Preferred stock $.01 par value, 5,000,000 shares authorized, | |||
| none outstanding | --- | --- | |
| Common stock, $.01 par value, 85,000,000 shares authorized, | |||
| 28,392,853 and 28,011,109 shares issued, and 27,911,985 | |||
| and 27,484,091 shares outstanding, respectively | 283,929 |
280,111 |
|
| Additional paid-in capital | 338,816,308 |
334,865,204 |
|
| Treasury stock held, at cost, 480,868 and 527,018 shares, respectively | (6,896,245) |
(7,558,093) |
|
| Retained earnings | 97,559,165 | 70,073,384 | |
| Other comprehensive loss, net of taxes | (137,933) | (269,342) | |
| -------------- | ---------------------- | ||
| 429,625,224 | 397,391,264 | ||
| -------------- | ---------------------- | ||
| $985,319,763 | $859,838,544 | ||
| ========== | ========== |
See accompanying notes to condensed consolidated financial statements.
Three Months Ended Six Months Ended 06/30/04
06/30/03
06/30/04
06/30/03
Revenues:
Oil and gas sales
$71,824,789
$50,909,250
$137,778,559
$105,759,549
Price-risk management and other, net (781,054) (191,721) (1,379,094) (1,542,027) --------------------- --------------------- --------------------- --------------------- 71,043,735
50,717,529
136,399,465
104,217,522
--------------------- --------------------- --------------------- --------------------- Costs and Expenses:
General and administrative, net
4,175,559
3,337,995
8,205,233
6,894,543
Depreciation, depletion and amortization
19,509,056
15,676,549
37,804,740
30,588,312
Accretion of asset retirement obligation
160,259
201,903
330,735
417,286
Lease operating costs
10,435,813
9,171,687
20,061,793
16,484,791
Severance and other taxes
6,927,269
4,582,724
13,173,828
9,177,273
Interest expense, net
7,143,389
6,672,867
14,044,564
13,357,769
Debt retirement cost
2,691,243
---
2,691,243
---
--------------------- --------------------- --------------------- --------------------- 51,042,588
39,643,725
96,312,136
76,919,974
--------------------- --------------------- --------------------- --------------------- Income Before Income Taxes and Cumulative
Effect of Change in Accounting Principle
20,001,147
11,073,804
40,087,329
27,297,548
Provision for Income Taxes
7,103,220
3,852,378
12,601,548
9,591,185
--------------------- --------------------- --------------------- --------------------- Income Before Cumulative Effect of Change
in Accounting Principle
12,897,927
7,221,426
27,485,781
17,706,363
Cumulative Effect of Change in Accounting
Principle (net of taxes)
---
---
---
4,376,852
--------------------- --------------------- --------------------- --------------------- Net Income
$12,897,927
$7,221,426
$27,485,781
$13,329,511
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Per share amounts
Basic:
Income Before Cumulative Effect of
Change in Accounting Principle
$0.46
$0.26
$0.99
$ 0.65
Cumulative Effect of Change in
Accounting Principle
---
---
---
(0.16)
--------------------- --------------------- --------------------- --------------------- Net Income
$0.46
$0.26
$0.99
$ 0.49
===========
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===========
===========
Diluted:
Income Before Cumulative Effect of
Change in Accounting Principle
$0.46
$0.26
$0.98
$ 0.65
Cumulative Effect of Change in
Accounting Principle
---
---
---
(0.16)
--------------------- --------------------- --------------------- --------------------- Net Income
$0.46
$0.26
$0.98
$ 0.49
===========
===========
===========
===========
Weighted Average Shares Outstanding
27,742,444
27,311,170
27,647,636
27,277,156
See accompanying notes to condensed consolidated financial statements.
Accumu- lated Additional Other Com- Common Paid-In Treasury Retained prehensive Stock (1) Capital Stock Earnings Loss Total ------------- --------------- ------------ ----------------- ----------------- --------------- Balance, December 31, 2002 $ 278,116 $ 333,543,471 $(8,749,922) $40,179,572 $(178,053) $ 365,073,184 Stock issued for benefit plans (83,201 shares) 1 (408,178) 1,191,829 -- -- 783,652 Stock options exercised (142,807 shares) 1,428 1,315,964 -- -- -- 1,317,392 Employee stock purchase plan (56,574 shares) 566 413,947 -- -- -- 414,513 Comprehensive income: Net income -- -- -- 29,893,812 -- 29,893,812 Change in fair value of cash flow hedges, net of income tax -- -- -- -- (91,289) (91,289) --------------- Total comprehensive income -- -- -- -- -- 29,802,523 ------------- --------------- ------------ ----------------- ----------------- --------------- Balance, December 31, 2003 $280,111 $334,865,204 $(7,558,093) $70,073,384 $(269,342) $397,391,264 ========= ========= ========= ========== ========== ========= Stock issued for benefit plans (46,150 shares) -- 166,298 661,848 -- -- 828,146 Stock options exercised (331,999 shares) 3,321 3,289,406 -- -- -- 3,292,727 Employee stock purchase plan (49,745 shares) 497 495,400 -- -- -- 495,897 Comprehensive income: Net income -- -- -- 27,485,781 -- 27,485,781 Change in fair value of cash flow hedges, net of income tax -- -- -- -- 131,409 131,409 --------------- Total comprehensive income -- -- -- -- -- 27,617,190 ------------- --------------- ------------ ----------------- ----------------- --------------- Balance, June 30, 2004 $283,929 $338,816,308 $(6,896,245) $97,559,165 $(137,933) $429,625,224 ========= =========== =========