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FORM 10-Q FOR QUARTER ENDED SEPTEMBER 30, 2004PDF VersionUNITED STATES
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| TEXAS | 74-2073055 |
| (State of Incorporation) | (I.R.S. Employer Identification No.) |
|
|
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| 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 | 28,030,317 Shares |
| ($.01 Par Value) | (Outstanding at October 31, 2004) |
| (Class of Stock) |
September 30, 2004 December 31, 2003
ASSETS Current Assets: Cash and cash equivalents $ 4,281,527 $ 1,066,280 Accounts receivable -- Oil and gas sales 29,388,512 26,082,650 Joint interest owners 1,493,098 1,350,707 Other current assets 6,922,297 5,610,420 ---------------------- ---------------------- Total Current Assets 42,085,434 34,110,057 ---------------------- ---------------------- Property and Equipment: Oil and gas, using full-cost accounting Proved properties being amortized 1,408,446,400 1,305,110,582 Unproved properties not being amortized 73,368,548 67,557,969 ---------------------- ---------------------- 1,481,814,948 1,372,668,551 Furniture, fixtures and other equipment 11,603,507 10,602,786 ---------------------- ---------------------- 1,493,418,455 1,383,271,337 Less--Accumulated depreciation, depletion, and amortization (625,468,058) (567,464,334) ---------------------- ---------------------- 867,950,397 815,807,003 ---------------------- ---------------------- Other Assets: Deferred income taxes 2,762,588 1,905,909 Debt issuance costs 9,404,282 8,015,575 ---------------------- ---------------------- 12,166,870 9,921,484 ---------------------- ---------------------- $922,202,701 $859,838,544 =========== ===========
Liabilities and Stockholders' EquitySee accompanying notes to condensed consolidated financial statements.
| September 30, 2004 | December 31, 2003 | ||
|---|---|---|---|
| Liabilities and Stockholders' Equity | |||
| Current Liabilities: | |||
| Accounts payable and accrued liabilities | $ 21,104,321 | $ 26,247,477 | |
| Accrued capital costs | 14,216,880 | 29,417,542 | |
| Accrued interest | 11,053,499 | 8,748,656 | |
| Undistributed oil and gas revenues | 6,423,277 | 4,939,667 | |
| ---------------------- | ---------------------- | ||
| Total Current Liabilities | 52,797,977 | 69,353,342 | |
| ---------------------- | ---------------------- | ||
| Long-Term Debt | 356,200,000 |
340,254,783 |
|
| Deferred Income Taxes | 59,682,338 |
43,498,682 |
|
| Asset Retirement Obligation | 8,680,547 | 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, | |||
| 28,467,891 and 28,011,109 shares issued, and 27,987,023 | |||
| and 27,484,091 shares outstanding, respectively | 284,679 |
280,111 |
|
| Additional paid-in capital | 339,812,135 |
334,865,204 |
|
| Treasury stock held, at cost, 480,868 and 527,018 shares, respectively | (6,896,245) |
(7,558,093) |
|
| Retained earnings | 111,689,882 | 70,073,384 | |
| Other comprehensive loss, net of taxes | (48,612) | (269,342) | |
| -------------- | ---------------------- | ||
| 444,841,839 | 397,391,264 | ||
| -------------- | ---------------------- | ||
| $922,202,701 | $859,838,544 | ||
| ========== | ========== |
See accompanying notes to condensed consolidated financial statements.
Three Months Ended Nine Months Ended 09/30/04
09/30/03
09/30/04
09/30/03
Revenues:
Oil and gas sales
$74,653,106
$
52,087,321$
212,431,665$157,846,870
Price-risk management and other, net 289,645 (534,799) (1,089,449) (2,076,826) --------------------- --------------------- --------------------- --------------------- 74,942,751
51,552,522
211,342,216
155,770,044
--------------------- --------------------- --------------------- --------------------- Costs and Expenses:
General and administrative, net
4,390,432
3,670,416
12,595,665
10,564,959
Depreciation, depletion and amortization
19,845,167
16,042,377
57,649,907
46,630,689
Accretion of asset retirement obligation
168,135
206,475
498,870
623,761
Lease operating costs
9,848,949
8,664,259
29,910,742
25,149,050
Severance and other taxes
7,077,994
5,066,208
20,251,822
14,243,481
Interest expense, net
7,317,002
6,749,419
21,361,566
20,107,188
Debt retirement cost
6,822,476
---
9,513,719
---
--------------------- --------------------- --------------------- --------------------- 55,470,155
40,399,154
151,782,291
117,319,128
--------------------- --------------------- --------------------- --------------------- Income Before Income Taxes and Cumulative
Effect of Change in Accounting Principle
19,472,596
11,153,368
59,559,925
38,450,916
Provision for Income Taxes
5,341,879
4,090,743
17,943,427
13,681,928
--------------------- ---------------- --------------------- --------------------- Income Before Cumulative Effect of Change
in Accounting Principle
14,130,717
7,062,625
41,616,498
24,768,988
Cumulative Effect of Change in Accounting
Principle (net of taxes)
---
---
---
4,376,852
--------------------- --------------------- --------------------- --------------------- Net Income
$14,130,717
$7,062,625
$41,616,498
$20,392,136
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Per share amounts
Basic:
Income Before Cumulative Effect of
Change in Accounting Principle
$0.51
$0.26
$1.50
$ 0.91
Cumulative Effect of Change in
Accounting Principle
---
---
---
(0.16)
--------------------- --------------------- --------------------- --------------------- Net Income
$0.51
$0.26
$1.50
$ 0.75
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Diluted:
Income Before Cumulative Effect of
Change in Accounting Principle
$0.50
$0.26
$1.47
$ 0.90
Cumulative Effect of Change in
Accounting Principle
---
---
---
(0.16)
--------------------- --------------------- --------------------- --------------------- Net Income
$0.50
$0.26
$1.47
$ 0.74
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Weighted Average Shares Outstanding
27,948,095
27,424,195
27,747,789
27,326,169
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 (406,364 shares) 4,064 4,278,536 -- -- -- 4,282,600 Employee stock purchase plan (50,418 shares) 504 502,097 -- -- -- 502,601 Comprehensive income: Net income -- -- -- 41,616,498 -- 41,616,498 Change in fair value of cash flow hedges, net of income tax -- -- -- -- 220,730 220,730 --------------- Total comprehensive income -- -- -- -- -- 41,837,228 ------------- --------------- ------------ ----------------- ----------------- --------------- Balance, September 30, 2004 $284,679 $339,812,135 $(6,896,245) $111,689,882 $(48,612) $444,841,839 ========= =========== ========= ========== <