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FORM 10-Q FOR QUARTER ENDED June 30, 2006PDF VersionUNITED STATES
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| TEXAS | 20-3940661 |
| (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, and (2) has been subject to such filing requirements for the past 90 days.
Yes √ No___
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.
Large accelerated filer √ Accelerated filer___ Non-accelerated filer___
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes___ No √
Indicate the number of shares outstanding of each of the
Issuer's
classes
| Common Stock | 29,240,768 Shares |
| ($.01 Par Value) | (Outstanding at July 31, 2006) |
| (Class of Stock) |
June 30, 2006 December 31, 2005
ASSETS Current Assets: Cash and cash equivalents $
72,073,575$53,004,562
Accounts receivable -- Oil and gas sales 54,316,805 45,518,260
Joint interest owners 1,375,144 1,082,187
Other receivables 11,626,451 3,795,080
Deferred tax asset 10,091,251 ---
Other current assets 17,980,159 11,655,046
---------------------- ---------------------- Total Current Assets 167,463,385 115,055,135 ---------------------- ---------------------- Property and Equipment: Oil and gas, using full-cost accounting Proved properties 1,881,432,276 1,731,866,298
Unproved properties 96,489,581 87,553,220
---------------------- ---------------------- 1,977,921,857
1,819,419,518
Furniture, fixtures and other equipment 24,580,227 15,313,277
---------------------- ---------------------- 2,002,502,084
1,834,732,795
Less--Accumulated depreciation, depletion, and amortization (830,555,121) (755,699,056) ---------------------- ---------------------- 1,171,946,963
1,079,033,739
---------------------- ---------------------- Other Assets: Debt issuance costs 7,434,390 8,026,780
Restricted assets 2,221,507 2,296,968
---------------------- ---------------------- 9,655,897
10,323,748
---------------------- ---------------------- $1,349,066,245 $1,204,412,622 =========== ===========
Liabilities and Stockholders' EquitySee accompanying notes to condensed consolidated financial statements.
| June 30, 2006 | December 31, 2005 | |
|---|---|---|
| Liabilities and Stockholders' Equity | ||
| Current Liabilities: | ||
| Accounts payable and accrued liabilities |
$ 45,818,560 |
$51,973,004 |
| Accrued capital costs | 42,054,613 |
30,073,728 |
| Accrued interest | 8,506,805 |
8,508,196 |
| Undistributed oil and gas revenues | 9,400,634 |
7,866,086 |
| ---------------------- | ---------------------- | |
| Total Current Liabilities | 105,780,612 |
98,421,014 |
| ---------------------- | ---------------------- | |
| Long-Term Debt |
350,000,000 |
350,000,000 |
| Deferred Income Taxes | 178,888,868 |
129,306,891 |
| Asset Retirement Obligation | 19,811,717 |
19,095,368 |
| Lease Incentive Obligation | 1,847,490 |
271,182 |
| 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, | ||
| 29,649,138 and 29,458,974 shares issued, and 29,222,052 | ||
| and 29,009,530 shares outstanding, respectively | 296,491 |
294,590 |
| Additional paid-in capital | 369,191,727 |
365,085,695 |
| Treasury stock held, at cost, 427,086 and 449,444 shares, respectively | (6,124,944) |
(6,445,586) |
| Unearned Compensation |
--- |
(5,849,820) |
| Retained earnings |
329,785,711 |
254,302,757 |
| Accumulated other comprehensive loss, net of income tax | (411,427) |
(69,469) |
| -------------- | ---------------------- | |
|
692,737,558 |
607,318,167 |
|
| -------------- | ---------------------- | |
| $1,349,066,245 | $1,204,412,622 | |
| ========== | ========== |
See accompanying notes to condensed consolidated financial statements.
|
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
06/30/06 |
06/30/05 |
06/30/06 |
06/30/05 |
|||||||||||||
| Revenues: | ||||||||||||||||
| Oil and gas sales |
$144,993,977 |
$104,922,400 |
$279,946,970 |
$200,443,733 |
||||||||||||
| Price-risk management and other, net |
2,183,269 |
(622,475) |
3,399,207 |
(523,124) |
||||||||||||
| --------------- | --------------- | --------------- | --------------- | |||||||||||||
|
147,177,246 |
104,299,925 |
283,346,177 |
199,920,609 |
|||||||||||||
| --------------- | --------------- | --------------- | --------------- | |||||||||||||
| Costs and Expenses: | ||||||||||||||||
| General and administrative, net |
7,618,054 |
4,995,887 |
15,304,963 |
9,870,195 |
||||||||||||
| Depreciation, depletion and amortization |
38,877,234 |
28,777,631 |
74,283,731 |
52,983,009 |
||||||||||||
| Accretion of asset retirement obligation |
202,752 |
187,495 |
494,267 |
374,002 |
||||||||||||
| Lease operating costs |
18,523,049 |
11,565,223 |
32,917,538 |
22,614,005 |
||||||||||||
| Severance and other taxes |
15,967,270 |
10,708,754 |
30,720,876 |
19,911,835 |
||||||||||||
| Interest expense, net |
5,799,187 |
6,286,894 |
11,660,106 |
12,630,903 |
||||||||||||
| --------------- | --------------- | --------------- | --------------- | |||||||||||||
|
86,987,546 |
62,521,884 |
165,381,481 |
118,383,949 |
|||||||||||||
| --------------- | --------------- | --------------- | --------------- | |||||||||||||
| Income Before Income Taxes |
60,189,700 |
41,778,041 |
117,964,696 |
81,536,660 |
||||||||||||
| Provision for Income Taxes |
22,021,252 |
13,896,383 |
42,481,742 |
27,965,850 |
||||||||||||
| --------------- | --------------- | --------------- | --------------- | |||||||||||||
| Net Income |
$38,168,448 |
$27,881,658 |
$75,482,954 |
$53,570,810 |
||||||||||||
| ========= | ========= | ========= | ========= | |||||||||||||
| Per Share Amounts | ||||||||||||||||
| Basic: Net Income |
$1.31 |
$0.98 |
$2.59 |
$1.90 |
||||||||||||
| ========= | ========= | ========= | ========= | |||||||||||||
| Diluted: Net Income |
$1.27 |
$0.96 |
$2.52 |
$1.86 |
||||||||||||
| ========= | ========= | ========= | ========= | |||||||||||||
| Weighted Average Shares Outstanding |
29,160,123 |
28,376,518 |
29,115,944 |
28,268,733 |
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| ========= | ========= | ========= | ========= | |||||||||||||
See accompanying notes to condensed consolidated financial statements.
Additional Other Common Paid-In Treasury Unearned Retained Comprehensive Stock(1) Capital Stock Compensation Earnings Income (Loss) Total Balance, December 31, 2004
$285,706
$343,536,298
$(6,896,245)
$(1,728,585)
$138,524,301
$450,665
$474,172,140
Stock issued for benefit plans
(31,424 shares) --- 435,134 450,659 --- --- --- 885,793 Stock options exercised
(840,847 shares)
8,409
9,804,555
---
---
---
---
9,812,964
Tax benefits from exercise of stock options
---
4,366,236
---
---
---
---
4,366,236
Employee stock purchase plan
(32,495 shares)
325
642,354
---
---
---
---
642,679
Issuance of restricted stock
(15,000 shares)
150
---
---
---
---
---
150
Grants of restricted stock
(158,500 shares)
---
6,668,608
---
(6,072,008)
---
---
596,600
Forfeitures of restricted stock
---
(367,490)
---
367,490
---
---
---
Amortization of restricted stock compensation
---
---
---
1,583,283
---
---
1,583,283
Comprehensive Income:
Net income
---
---
---
---
115,778,456
---
115,778,456
Other Comprehensive Income
---
---
---
---
---
(520,134)
(520,134)
Total Comprehensive Income
---
---
---
---
---
---
115,258,322
----------- ----------- ----------- ----------- ----------- ----------- ----------- Balance, December 31, 2005
$294,590
$365,085,695
$(6,445,586)
$(5,849,820)
$254,302,757
$(69,469)
$607,318,167
======= ======= ======= ======= ======= ======= ======= Stock issued for benefit plans
(22,358 shares)
---
714,049
320,642
---
---
---
1,034,691
Stock options exercised
(147,360 shares)
1,473
2,407,940
---
---
---
---
2,409,413
Adoption of SFAS No. 123R
---
(5,875,280)
---
5,849,820
---
---
(25,460)
Excess tax benefits from stock-based awards
---
1,407,367
---
---
---
---
1,407,367
Employee stock purchase plan
(22,028 shares)
220
671,110
---
---
---
---
671,330
Issuance of restricted stock
(20,776 shares)
208
(208)
---
---
---
---
---
Amortization of stock compensation
---
4,781,054
---
---
---
---
4,781,054
Comprehensive Income:
Net income
---
---
---
---
75,482,954
---
75,482,954
Other Comprehensive Income
---
---
---
---
---
(341,958)
(341,958)
Total Comprehensive Income
---
---
---
---
---
---
75,140,996
----------- ----------- ----------- ----------- ----------- ----------- ----------- Balance, June 30, 2006
$296,491
$369,191,727
$(6,124,944)
$---
$329,785,711
$(411,427)