DENVER, March 3 /PRNewswire-FirstCall/ -- Double Eagle Petroleum Co. (Nasdaq: DBLE) today announced it has signed a new credit agreement with its lenders providing an increase in the credit facility of 50% from $50 million to $75 million and an increase in the borrowing base of 28% from $35 million to $45 million. The credit agreement consists of a $40 million revolving credit line and a $5 million term loan. The $40 million revolving credit line matures on July 31, 2010 and the $5 million term loan will mature on July 31, 2009. Bank of Oklahoma serves as the lead bank.
"The bank group's continued support of our growth during this period of economic, commodity price and financial market challenges underscores the quality of our asset portfolio," said Richard Dole, Double Eagle's Chairman, President and Chief Executive Officer.
About Double Eagle
Double Eagle Petroleum Co. explores for, develops, and sells natural gas and crude oil, with natural gas constituting more than 95% of its production and reserves. The Company's current major development activities are in its Atlantic Rim coal bed methane play and in the Pinedale Anticline in Wyoming.
This release contains forward-looking statements regarding Double Eagle's future plans and expected performance based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of exploration efforts and the timeliness of development activities, fluctuations in oil and gas prices, and other risk factors described from time to time in the Company's reports filed with the SEC. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. Double Eagle undertakes no obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.
Company Contact:
John Campbell, IR
(303) 794-8445
www.dble.us
LONDON, March 3 /PRNewswire/ -- The need for real-time data, workforce mobility, easy installation, and commissioning are the key drivers for wireless adoption across discrete industries such as automobile, food & beverages, and plastics. Despite the sizeable potential, concerns related to reliability, security, and interoperability are hindering uptake levels. Wireless vendors should take effective steps to spread awareness about wireless technology to end-users, thus promoting market expansion.
New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), Wireless Devices Market in Factory Automation, finds that markets in Germany, France, Italy, Spain, and the United Kingdom, earned revenues of over $75.2 million in 2008 and estimates this to reach $132.8 million in 2012. End user segments covered in the research include: automobile, food & beverages, plastics, semiconductor, and fabricated metal.
"The need to continually track the production process is important in discrete industries as wireless devices constantly monitor the process flow by providing real-time data in less time with minimal effort," says Frost & Sullivan Research Analyst Khadambari Shanbagaraman. "Wireless devices function on a 'plug and play' basis, inherently assuring flexibility and convenience compared to traditional wired networks."
Concerns about reliability, security and interoperability are restraining wireless adoption across various end user industries. Despite the many benefits of wireless devices, end-users are not convinced about the robustness of wireless transmission and are unwilling to take a risk investing in it.
Technical issues such as signal mismatch, data loss, electromagnetic induction, and disturbances from existing networks are concerns for wireless reliability. Besides, the conservative mindset of the food and beverages and plastics industries is also hindering the uptake of wireless devices.
"Vendors should undertake effective initiatives to spread awareness about wireless technology and educate end-users on the range of wireless applications and their benefits," concludes Khadambari. "Technical problems need to be solved so that end users will realise their investments in wireless devices due to the long term gains they offer."
If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.
Wireless Devices Market in Factory Automation is part of the Industrial Automation & Process Control Growth Partnership Service programme, which also includes research in the following markets: Wireless Devices Market in Factory Automation (ME Research), Food and Beverages Industries Go Wire free (Market Insight), and Will Impacts of recession hamper Wireless Adoption in the Automotive Industry? (Market Insight). All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.
GIL 2009: Europe
Frost & Sullivan has expanded its flagship Global Congress on Corporate Growth - GIL Global - into several major cities around the world including London. For the first time ever in Europe, Frost & Sullivan will be hosting the Growth, Innovation and Leadership Congress 'GIL 2009: Europe' on 19-20 May, at the Sofitel St James in London. GIL Global is the industry's only event designed to support senior executives in their efforts to achieve sustainable, top-line growth. To register, obtain a programme agenda, explore sponsorship opportunities, or attend as a member of the media for GIL 2009: Europe, please contact Joanna Lewandowska, Corporate Communications for Frost & Sullivan in Europe, at Joanna.lewandowska@frost.com. One-on-One interviews with Frost & Sullivan senior growth consultants are also being scheduled. For more information you can also visit www.frost.com/gilglobal.
DENVER, March 2 /PRNewswire-FirstCall/ -- Petroleum Development Corporation (Nasdaq: PETD) today reported net income for the year ended December 31, 2008 of $113.3 million, or $7.63 per diluted share, compared with December 31, 2007 net income of $33.2 million, or $2.24 per diluted share. Fourth quarter 2008 net income was $41.1 million, or $2.78 per diluted share, while net income for the same period ending December 31, 2007 was $8.2 million, or $0.55 per diluted share. Adjusted cash flow from operations (defined as cash flow from operations before changes in assets and liabilities, a non-GAAP measure) increased to $200.1 million for the year ended 2008 compared to $95.6 million in 2007, an increase of 109%. Adjusted cash flow from operations for the fourth quarter 2008 was $41.4 million, compared to the same period 2007 of $27.4 million, an increase of 51%.
Oil and natural gas sales from the Company's producing properties for 2008 were up 83.7% to $321.9 million, an increase of $146.7 million over the prior year's $175.2 million. Additionally, for the year ending December 31, 2008, the Company recognized a $127.8 million oil and gas price risk management gain versus a $2.8 million gain for the year ending December 31, 2007. For the fourth quarter 2008, oil and natural gas sales from the Company's producing properties were $56.3 million. This compares to $57.5 million for the same period of 2007. Oil and gas price risk management gain in the fourth quarter 2008 was $102.5 million, compared to a $1.7 million loss in the same period of 2007. The increase in the gain for oil and gas price risk management for the year and quarter, ended December 31, 2007, was due to the decline in oil and gas commodities' future prices during the latter portion of the year.
Total 2008 annual production increased 38% to 38.7 Bcfe, compared to 28.0 Bcfe in 2007. Growth in 2008 was 100% organic from development of our existing core operating areas. Fourth quarter 2008 production increased 11% to 11.3 Bcfe compared to third quarter 2008 production of 10.2 Bcfe. During 2008 the Company drilled 333 total net wells compared to 276 total net wells drilled in 2007. The 2008 total was comprised of 312 development wells drilled and 21 exploratory wells drilled. Eight of the development wells and ten of the exploratory wells were dry holes. Five remaining exploratory wells are pending final determination. The 2008 drilling program increased proved reserves 10% to 753 Bcfe at December 31, 2008, compared to 686 Bcfe at December 31, 2007. For the year ended December 31, 2008, reserve growth provided by the drill bit was 139.3 Bcfe, reduced by 38.7 Bcfe of production and downward revisions to previous estimates of 34.4 Bcfe. The revision was due primarily to the decrease in commodity prices at year-end 2008 compared to hedges in place.
Comparative Results Three Months Ended Year Ended
(In thousands, except per share December 31, December 31,
amounts)
2008 2007 2008 2007
Revenues $195,406 $95,103 $609,360 $305,235
Net income $41,053 $8,198 $113,309 $33,209
Basic earnings per common share $2.78 $0.56 $7.69 $2.25
Diluted earnings per common share $2.78 $0.55 $7.63 $2.24
Richard W. McCullough, Chairman and Chief Executive Officer stated, "The company posted solid gains in operating income, production and cash flow metrics. While we hope to see a recovery in the current depressed financial market and commodity price environment, we believe the company is poised to weather the current difficult operating conditions."
Financial Results
Full Year 2008 Results:
Net income for the year ended December 31, 2008 increased considerably to $113.3 million compared to $33.2 million for the respective 2007 period. This increase was due primarily to record production for the year, favorable commodity prices for the first half of 2008, and gains from oil and gas price risk management activities during the second half of 2008. Revenue for 2008 includes a $140.3 million contribution from sales from natural gas marketing activities versus $103.6 million for 2007, and a net gain of $127.8 million from oil and gas price risk management activities versus $2.8 million for 2007. The increase in the oil and gas price risk management gain was due to an increase in the mark-to-market value of the hedging contracts in place at December 31, 2008. EBITDA (defined as net income, plus interest (net), income taxes and DD&A, a non-GAAP measure) increased from $131.7 million in 2007 to $306.9 million in 2008, due primarily to record production for the year, favorable commodity prices for the first half of 2008, and gains from oil and gas price risk management activities during the second half of 2008.
The Company's exploratory expense increased from $23.6 million in 2007 to $45.1 million in 2008 as a result of impairments of both proved and unproved exploratory properties, due in part to lower prices. Depreciation, depletion and amortization expense for the year increased to $104.6 million from $70.8 million in 2007 due to increased production. General and administrative expense increased to $37.7 million in 2008 from $31.0 million in the previous year, due to increased payroll and payroll related expenses which included $4.7 million related to agreements with former executive officers. Interest expense increased to $28.1 million from $9.3 million in 2007 as a result of higher outstanding balances on our credit facility and the issuance of our 12% senior notes, offset by lower average interest rates on our bank credit facility.
Fourth Quarter 2008 Results:
Net income for the fourth quarter 2008 was $41.1 million compared to the respective fourth quarter 2007 results of $8.2 million. This increase is primarily due to increased production and gains from oil and gas price risk management activities during the quarter. The fourth quarter 2008 gain from oil and gas price risk management activities was $102.5 million versus a loss of $1.7 million in the fourth quarter of 2007. The increase in the oil and gas price risk management gain was due to an increase in the mark-to-market value of the hedging contracts in place at December 31, 2008. EBITDA increased 185% for the fourth quarter to $106.9 million in 2008 from $37.5 million in 2007, primarily due to increased production and gains from oil and gas price risk management activities during the quarter.
The Company's exploratory expense increased from $8.8 million in the fourth quarter 2007 to $27.1 million in the fourth quarter 2008 as a result of impairments of both proved and unproved properties. Depreciation, depletion and amortization expense for the 2008 fourth quarter increased to $32.7 million, from $20.0 million in the respective quarter 2007, due to increased production. General and administrative expense increased to $10.6 million in the fourth quarter 2008 from $9.1 million in the same period of 2007 due to increased payroll and payroll related expenses. Interest expense increased to $9.0 million in the fourth quarter 2008, from $4.5 million in the same period of 2007, as a result of higher outstanding balances on our credit facility, and the issuance of our 12% senior notes offset by lower average interest rates on our bank credit facility.
The following tables show the calculation of adjusted cash flow from operations and EBITDA for the fourth quarters and the years ended 2008 and 2007:
Reconciliation of Net Cash Provided by Operating Activities to
Adjusted Cash Flow
From Operations - a non-GAAP measure
(See explanation of non-GAAP measure.)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Net Cash provided by Operating
Activities $35,309 $93,104 $139,101 $60,304
Changes in Assets and Liabilities
Related to Operations 6,087 (65,739) 60,998 35,322
Adjusted Cash Flow from
Operations $41,396 $27,365 $200,099 $95,626
Weighted average diluted shares
outstanding 14,791 14,859 14,848 14,841
Adjusted cash flow from
operations, per diluted share $2.80 $1.84 $13.48 $6.44
Reconciliation of Net Income to EBITDA - a non-GAAP measure
(See explanation of non-GAAP measure.)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Net Income $41,053 $8,198 $113,309 $33,209
Interest, net 8,895 3,851 27,541 6,617
Income Taxes 24,237 5,470 61,459 20,981
Depreciation 32,694 19,987 104,575 70,844
EBITDA $106,879 $37,506 $306,884 $131,651
Weighted average diluted shares
outstanding 14,791 14,859 14,848 14,841
EBITDA per share (fully diluted) $7.23 $2.52 $20.67 $8.87
Operations
The 2008 operations were focused in our three primary geographic regions:
Rocky Mountain Region: The Rocky Mountain Region includes our Colorado, Kansas, North Dakota, and Wyoming operations. The region is divided into four operating areas; (1) Wattenberg Field, (2) Grand Valley Field, (3) NECO area, and (4) North Dakota. The Rocky Mountain Region includes approximately 320,000 gross acres of leasehold and approximately 2,408 gross oil and natural gas wells in which we own an interest (approximately 95% are operated by the Company).
Wattenberg Field, DJ Basin, Weld and Adams Counties, Colorado. We currently own an interest in 1,390 gross, 875.2 net, oil and natural gas wells. Our leasehold position encompasses approximately 75,900 gross acres with approximately 24,000 net undeveloped acres remaining as of December 31, 2008. We drilled 149 gross, 122.7 net wells in the area in 2008 and produced approximately 15.4 Bcfe net to our interests. Wells drilled in the area range from approximately 7,000 to 8,000 feet in depth and generally target oil and gas reserves in the Niobrara, Codell and J Sand reservoirs. Well spacing ranges from 20 to 40 acres per well. Operations in the area, in addition to the drilling of new development wells, includes the refrac of Codell and Niobrara reservoirs in existing wellbores whereby the Codell sandstone reservoir is fraced a second time and/or initial completion attempts are made in the slightly shallower Niobrara carbonate reservoir.
Grand Valley Field, Piceance Basin, Garfield County, Colorado. We currently own an interest in 285 gross, 158.3 net, oil and natural gas wells. Our leasehold position encompasses approximately 7,900 gross acres with approximately 5,200 net undeveloped acres remaining for development as of December 31, 2008. We drilled 62 gross, 54.4 net wells in the area in 2008 and produced approximately 12.5 Bcfe net to our interests. Development wells drilled in the area range from 7,000 to 9,500 feet in depth and the majority of wells are drilled directionally from multi-well pads ranging from two to eight or more wells per drilling pad. The primary target in the area is gas reserves developed from multiple sandstone reservoirs in the Mesaverde Williams Fork formation. Well spacing is approximately ten acres per well.
NECO area - DJ Basin, Yuma County Colorado and Cheyenne County, Kansas. We currently own an interest in 717 gross, 504.0 net, natural gas wells. Our leasehold position encompasses approximately 141,600 gross acres with approximately 93,200 net undeveloped acres remaining for development as of December 31, 2008. We drilled 98 gross, 88.1 net wells in the area in 2008 and produced approximately 5 Bcfe net to our interests. Wells drilled in the area range from approximately 1,500 to 3,000 feet in depth and target gas reserves in the shallow Niobrara reservoir. Well spacing is approximately 40 acres per well. New drilling operations range from exploratory wells to test undrilled, seismically defined, structural features at the Niobrara horizon, to development wells targeting known reserves in existing identified features.
North Dakota, Burke County. We currently own an interest in 13 gross, 3.7 net oil and natural gas wells. Our leasehold encompasses two project areas in Burke County of approximately 75,100 gross acres with approximately 46,300 net undeveloped acres remaining for development as of December 31, 2008. The eastern area acreage is prospective for development of oil and gas reserves in the Nesson Formation. Nesson development wells are approximately 6,000 feet in depth with single or multiple horizontal legs to 4,000 feet or more in length for a measured length of 10,000 feet or more per leg. The westernmost acreage block is undeveloped and includes approximately 23,600 gross, 16,200 net acres. The western project targets exploratory horizontal drilling to the Midale/Nesson/Bakken Formation at depths of approximately 6,800 feet with a lateral leg component of up to 6,100 feet. In 2009, pursuant to a third party arrangement, we plan to drill up to four exploratory Bakken wells on our acreage with minimal capital obligation on our part in exchange for an interest in the acreage position.
Appalachian Basin: The Appalachian Basin includes our West Virginia, Pennsylvania, New York and Tennessee operations, in which we own an interest in approximately 2,090 gross, 1,566.4 net oil and natural gas wells. Our leasehold position encompasses approximately 140,300 gross acres with approximately 19,400 net undeveloped acres remaining for development as of December 31, 2008. We drilled 63 gross/net wells in the area in 2008 and produced approximately 3.9 Bcfe net to our interests. The majority of our Appalachian leasehold is Devonian and Mississippian aged tight sandstone reservoirs. We are currently evaluating the potential of the Marcellus Formation in West Virginia and Pennsylvania and have drilled three tests to date in West Virginia.
Michigan Basin: We own an interest in approximately 210 gross, 146.5 net oil and natural gas wells that produced 1.6 Bcfe net to our interest in 2008. Wells in the area range from 1,000 to 2,500 feet in depth and produce gas from the Antrim Shale. We drilled 2 gross and 1.6 net exploratory dry hole wells in 2008.
Other - Texas and Wyoming: In addition to the operating areas above, we have an interest in approximately 12,500 gross, 9,100 net undeveloped acres in Ft. Worth Basin, northeastern Erath County, Texas. The leasehold acreage is prospective for the development of oil and natural gas reserves in the Barnett Shale formation at depths of approximately 5,000 feet. Development is typically with a horizontal component of approximately 3,000 feet or more, resulting in an approximate measured length of up to 8,000 feet or more in this area. In 2008 we commenced drilling operations and drilled three exploratory Barnett wells. These wells generated less than 1% of our 2008 production. Based on these results, we recorded impairments of both proved and unproved properties in this area in 2008. We are currently evaluating our future plans in this area and currently have no drilling activity planned in 2009.
Drilling Activity
The Company drilled 379 gross wells during 2008 representing an increase of 8.6% over the prior year. The Company's drilling activities continued to be focused in its Rocky Mountain Region. In addition to the drilling of the new wells, the Company recompleted (including refracs) 125 wells in 2008 compared to 181 in 2007.
Wells Drilled
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Gross Net Gross Net Gross Net Gross Net
Appalachian Basin 27 27 4 4.0 63 63.0 8 8.0
Michigan 0 0.0 1 1.2 2 1.6 3 3.0
Rocky Mountain Region:
Wattenberg 33 31.4 49 26.6 149 122.7 158 106.1
Piceance 12 12.0 12 5.1 62 54.4 53 41.7
NECO 10 9.9 17 17.1 98 88.1 123 115.0
North Dakota 0 0.1 1 0.9 2 0.6 3 1.5
Total Rocky Mountain
Region 55 53.4 79 49.7 311 265.8 337 264.3
Fort Worth Basin 0 0.0 1 1.0 3 3.0 1 1.0
Total Wells Drilled 82 80.4 85 55.9 379 333.4 349 276.3
Average Costs Related to Oil and Gas Drilling (per Mcfe)
Three Months Ended Year Ended
December 31 December 31
2008 2007 2008 2007
Average lifting costs $1.09 $0.94 $1.07 $0.90
Exploration expense (less
impairment) $0.40 $0.79 $0.50 $0.72
Depreciation, depletion and
amortization (oil and gas
properties only) $2.73 $2.10 $2.51 $2.37
Oil and Gas Sales and Production
Production for the year ended December 31, 2008 increased 38% above volumes for the same period in 2007. Oil and natural gas sales from the Company's producing properties for 2008 were up 83.7% to $321.9 million compared to $175.2 million for the prior year, an increase of $146.7 million. The revenue increase was related to the Company's record 2008 production based on success with drilling and recompletions in our core operating areas, combined with derivative positions set in place which helped protect the Company from the overall decline in market prices.
The following table summarizes production by area of operation, as well as the average sales price for the years 2008 and 2007, excluding both realized and unrealized derivative gains or losses.
Three Months Ended Year Ended
December 31, December 31,
2008 2007 Percent 2008 2007 Percent
Natural Gas (Mcf)
Appalachian
Basin 1,006,684 820,147 22.7% 3,902,183 2,711,300 43.9%
Michigan Basin 452,325 414,969 9.0% 1,609,984 1,678,155 -4.1%
Rocky Mountains 7,857,772 5,789,002 35.7% 26,247,625 18,123,851 44.8%
Total 9,316,781 7,024,118 32.6% 31,759,792 22,513,306 41.1%
Average Sales
Price $4.21 $5.62 -25.1% $6.98 $5.33 31.0%
Oil (Bbls)
Appalachian Basin 1,518 1,674 -9.3% 6,623 5,490 20.6%
Michigan Basin 694 1,316 -47.3% 3,469 4,301 -19.3%
Rocky Mountains 324,013 240,310 34.8% 1,150,316 900,261 27.8%
Total 326,225 243,300 34.1% 1,160,408 910,052 27.5%
Average Sales
Price $52.14 $74.00 -29.5% $89.77 $60.65 48.0%
Natural Gas
Equivalents (Mcfe)*
Appalachian
Basin 1,015,792 830,191 22.4% 3,941,921 2,744,240 43.6%
Michigan Basin 456,489 422,865 8.0% 1,630,798 1,703,961 -4.3%
Rocky Mountains 9,801,850 7,230,862 35.6% 33,149,521 23,525,417 40.9%
Total 11,274,131 8,483,918 32.9% 38,722,240 27,973,618 38.4%
Average Sales
Price $4.99 $6.78 -26.4% $8.42 $6.26 48.0%
* One barrel of oil is equal to the energy equivalent of six Mcf of
natural gas.
Oil and Gas Derivative Activities
We use various derivative instruments to manage fluctuations in oil and natural gas prices. We have in place a series of collars, fixed price swaps and basis swaps on a portion of our oil and natural gas production. Under the collar arrangements, if the applicable index rises above the ceiling price or swap, we pay the counterparty; however, if the index drops below the floor or swap, the counterparty pays us. Our production volumes for the quarter ended December 31, 2008, were 326,000 Bbls of oil and 9.3 Bcf of natural gas. Our hedging counterparties are all current or past members of our bank group for our revolver. A complete listing of the Company's derivative positions is included in the Company's Form 10-K, available at the Company's website at www.petd.com.
Non-GAAP Financial Measures
This release refers to "Adjusted cash flow from operations" and "EBITDA" both of which are non-GAAP financial measures. Adjusted cash flow from operations is the cash flow earned or incurred from operating activities without regard to the collection or payment of associated receivables or payables. The Company believes it is important to consider Adjusted cash flow from operations separately, as the Company believes it can often be a better way to discuss changes in operating trends in its business caused by changes in production, prices, operating costs, and related operational factors, without regard to whether the earned or incurred item was collected or paid during that year. The Company also uses this measure because the collection of its receivables or payment of its obligations has not been a significant issue for the Company's business, but merely a timing issue from one period to the next, with fluctuations generally caused by significant changes in commodity prices. EBITDA is a non-GAAP measure calculated by adding net income, interest (net), income taxes, and depreciation, depletion and amortization for the period. Management believes EBITDA is relevant because it is a measure of cash available to fund the Company's capital expenditures and service its debt and is a widely used industry metric which allows comparability of our results with our peers. Adjusted cash flow from operations and EBITDA are not measures of financial performance under GAAP and should be considered in addition to, not as a substitute for, cash flows from operations, investing, or financing activities, nor as a liquidity measure or indicator of cash flows reported in accordance with U.S. GAAP.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
(in thousands, except per share data)
Revenues:
Oil and gas sales $56,260 $57,488 $321,877 $175,187
Sales from natural gas
marketing activities 32,625 31,779 140,263 103,624
Oil and gas well drilling
operations 413 4,812 7,615 12,154
Well operations and pipeline
income 3,328 2,660 11,474 9,342
Oil and gas price risk
management gain (loss), net 102,544 (1,686) 127,838 2,756
Other income 236 50 293 2,172
Total revenues 195,406 95,103 609,360 305,235
Costs and expenses:
Oil and gas production and well
operations costs 17,089 15,956 78,209 49,264
Cost of natural gas marketing
activities 32,624 30,482 139,234 100,584
Cost of oil and gas well
drilling operations 1,116 949 2,213 2,508
Exploration expense 27,143 8,756 45,105 23,551
General and administrative
expense 10,555 9,145 37,715 30,968
Depreciation, depletion and
amortization 32,694 19,987 104,575 70,844
Total costs and expenses 121,221 85,275 407,051 277,719
Gain on sale of leaseholds - 7,691 - 33,291
Income from operations 74,185 17,519 202,309 60,807
Interest income 94 603 591 2,662
Interest expense (8,989) (4,454) (28,132) (9,279)
Income before income taxes 65,290 13,668 174,768 54,190
Provision for income taxes 24,237 5,470 61,459 20,981
Net income $41,053 $8,198 $113,309 $33,209
Basic earnings per common share $2.78 $0.56 $7.69 $2.25
Diluted earnings per common share $2.78 $0.55 $7.63 $2.24
Fourth Quarter and Year-End 2008 Earnings Conference Call
The Company will host a conference call with investors to discuss fourth quarter and year-end 2008 results. The Company invites you to join Richard W. McCullough, Chairman and CEO, Gysle R. Shellum, Chief Financial Officer, and Barton R. Brookman, Senior Vice President - Exploration and Production, for a conference call on Tuesday, March 3, 2009, for a discussion of the results.
What: Petroleum Development Corporation 2008 Earnings Conference Call
When: Tuesday, March 3, 2009, at 11:00 a.m. Eastern Standard Time
How: Log on to the web site at www.petd.com, or dial-in:
Domestic (toll free) at 877.407.8031
International at 201.689.8031
Replay Numbers:
Domestic (toll free) at 877.660.6853
International at 201.612.7415
Account #: 286, Conference ID #: 313436
A replay of the call will be available through Friday, March 13, 2009.
Petroleum Development Corporation (www.petd.com) is an independent energy company engaged in the development, production and marketing of natural gas and oil. Its operations are focused in the Rocky Mountains with additional operations in the Appalachian Basin and Michigan. PDC is included in the S&P SmallCap 600 Index and the Russell 3000 Index of Companies.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding our business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements herein, which include statements of estimated oil and natural gas production and reserves, drilling plans, future cash flows, anticipated liquidity, anticipated capital expenditures and our management's strategies, plans and objectives. However, these are not the exclusive means of identifying forward-looking statements herein. Although forward-looking statements contained in this report reflect our good faith judgment, such statements can only be based on facts and factors currently known to us. Consequently, forward-looking statements are inherently subject to risks and uncertainties, including risks and uncertainties incidental to the exploration for, and the acquisition, development, production and marketing of, natural gas and oil, and actual outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Important factors that could cause actual results to differ materially from the forward looking statements include, but are not limited to:
Further deepening of the current global economic crisis;
changes in production volumes, worldwide demand, and commodity prices for oil and natural gas;
the timing and extent of our success in discovering, acquiring, developing and producing natural gas and oil reserves;
our ability to acquire leases, drilling rigs, supplies and services at reasonable prices;
the availability and cost of capital to us;
risks incident to the drilling and operation of natural gas and oil wells;
future production and development costs;
the availability of sufficient pipeline and other transportation facilities to carry our production and the impact of these facilities on price;
the effect of existing and future laws, governmental regulations and the political and economic climate of the United States of America ("U.S.");
the effect of natural gas and oil derivatives activities;
conditions in the capital markets; and
losses possible from pending or future litigation.
Further, we urge you to carefully review and consider the disclosures made in our Form 10-K, including the risks and uncertainties that may affect our business as described under Item 1A, Risk Factors, and our other filings with the Securities and Exchange Commission. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this report. We undertake no obligation to update any forward-looking statements in order to reflect any event or circumstance occurring after the date of this report or currently unknown facts or conditions or the occurrence of unanticipated events.
Centex Energy Advantage homes up to 40% more efficient than typical 10-year-old home
CHESTERFIELD, Mo., March 2 /PRNewswire-FirstCall/ -- Centex Corporation today announced that construction is under way on Centex Energy Advantage homes across the St. Louis area. Collectively, Centex Energy Advantage homes now in progress are projected to avoid thousands of tons of carbon emissions over time, preventing more than 26 metric tons of carbon dioxide emissions in just the first year of occupancy.
Centex Energy Advantage is now available in all to-be-built homes ordered from Centex in 16 neighborhoods around the St. Louis metropolitan area. The area's first Centex Energy Advantage home, located in the Providence neighborhood near Herculaneum, Mo., is scheduled for delivery in May. Please visit any Centex neighborhood sales office for more information or see centex.com/energyadvantage.asp for details and centex.com/stlouis/ for details about homes and prices.(1)
"With these homes, you can experience measurable energy efficiency every day for the life of your home," says Mike VanPamel, division president for Centex Homes in St. Louis. "Our customers are usually surprised to learn that these features are standard in every Centex home, while other builders treat many of these components as upgrades."
Centex Energy Advantage homes are up to 22 percent more efficient than comparable new homes built to the most widely used energy efficiency code (the 2006 International Energy Conservation Code), according to a study commissioned with the NAHB Research Center. When compared to a typical 10-year-old home (as defined by the U.S. Department of Energy's Building America Program), the Centex Energy Advantage homes in the study were shown to be up to 40 percent more energy efficient.(2)
According to the NAHB Research Center, each Centex Energy Advantage home avoids 1.78 fewer metric tons of carbon dioxide per year than a comparable new home. That's roughly the same as the greenhouse gas emissions from the family automobile over four months or the CO2 emissions from about 183 gallons of gasoline consumed.(3)
Features of the Centex Energy Advantage standard package in the St. Louis area include: (4)
Energy monitor: homeowners who use energy monitors to actively manage their consumption of electricity can reduce their electricity use by 4-15 percent; (5) Centex is the first national homebuilder to announce the installation of an energy monitor in every home it builds
Whirlpool brand ENERGY STAR(R) qualified appliances
Lennox high-efficiency HVAC system(6)
Programmable thermostat(s)
Low-emissivity windows
R-49 insulation in the attic (with radiant-barrier roof decking available as an optional upgrade)
Compact fluorescent lights in high-traffic areas
Information for maximizing energy efficiency and minimizing the impact of home operation on the environment
About Centex
Dallas-based Centex (NYSE: CTX), founded in 1950, is one of the nation's leading home building companies. Its leading brands include Centex Homes, Fox & Jacobs Homes and CityHomes. In addition to its home building operations, Centex also offers mortgage and title services. Centex has ranked among the top three builders on FORTUNE magazine's list of "America's Most Admired Companies" for 10 straight years and is a leader in quality and customer satisfaction.
Editors' notes:
Homes, prices, features and availability are subject to change. Inventory homes are subject to prior sale.
This study evaluated the energy efficiency gains attributable to the Centex Energy Advantage features in a variety of single-family floor plans typical of the Centex product line in the climate zones where the Company currently operates. Not all floor plans, building materials or construction techniques were evaluated in the study. Efficiency gains will vary for other plan types, building materials, construction techniques and change of climate zone.
Calculations are based on NAHB Research Center estimated efficiency of 1.78 metric tons of CO2 per home equipped with Centex Energy Advantage features, as determined by the U.S. Environmental Protection Agency's "Greenhouse Gas Equivalencies Calculator" (see www.epa.gov).
The Centex Energy Advantage will be supplemented or otherwise adjusted as required by state and local codes. In several markets, Centex is currently building homes with components that exceed the combined efficiencies provided by the Centex Energy Advantage.
Based upon published studies reviewed by the NAHB Research Center.
14-SEER air conditioning or 90-percent AFUE furnace, depending upon climate zone. SEER is "seasonal energy efficiency ratio," a measure of seasonal or annual efficiency of a central air conditioner or air-conditioning heat pump that is the average BTUs of cooling delivered for every watt-hour of electricity used by the heat pump over a cooling season. AFUE is "annual fuel utilization efficiency," a measure of average combustion efficiency in a furnace or heating unit.
NANJING, China, March 2 /PRNewswire-Asia/ -- China Sunergy Co., Ltd.
(Nasdaq: CSUN), a specialized solar cell manufacturer based in Nanjing, China,
today announced that it has entered into a solar cell sales agreement with
asola Advanced and Automotive Solar System GmbH ("asola"), a German solar
module manufacturing company. Under the terms of the contract, China Sunergy
will supply a total volume of between 10MW and 30MW of solar cells to asola
from February to December of 2009.
Pricing and quantity are fixed for the first half of 2009, while the
transaction details for the second half are subject to further negotiations.
"We are delighted to be signing another solar cell sales agreement with
asola, and believe that this relationship will only strengthen in the coming
years," remarked Dr. Ruennsheng Allen Wang, Director and CEO of China Sunergy.
"We will continue to actively build strategic partnerships with our existing
customers, while pursuing new sales opportunities for our advanced solar cell
products."
Reinahrd Wecker, CEO of asola, added, "We are pleased to continue our
relationship with China Sunergy as we expand our business into important solar
markets, including Italy and the U.S."
About China Sunergy Co. Ltd
China Sunergy Co., Ltd. (Nasdaq: CSUN) is a specialized manufacturer of
solar cell products in China. China Sunergy manufactures solar cells from
silicon wafers utilizing crystalline silicon solar cell technology to convert
sunlight directly into electricity through a process known as the photovoltaic
effect. China Sunergy sells solar cell products to Chinese and overseas module
manufacturers and system integrators, who assemble solar cells into solar
modules and solar power systems for use in various markets. For more
information please visit http://www.chinasunergy.com .
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact in this
announcement are forward-looking statements. These forward-looking statements
and are based on current expectations, assumptions, estimates and projections
about the company and the industry, and involve known and unknown risks and
uncertainties, including but not limited to, the company's ability to raise
additional capital to finance the company's activities; the effectiveness,
profitability, and the marketability of its products; the economic slowdown in
China and elsewhere and its impact on the company's operations; demand for the
company's products; the future trading of the common stock of the company; the
ability of the company to operate as a public company; the period of time for
which its current liquidity will enable the company to fund its operations;
the company's ability to protect its proprietary information; general economic
and business conditions; the volatility of the company's operating results and
financial condition; the company's ability to attract or retain qualified
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The company undertakes no obligation to update forward-looking statements to
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that the expectations expressed in these forward looking statements are
reasonable, they cannot assure you that their expectations will turn out to be
correct, and investors are cautioned that actual results may differ materially
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For further information contact:
FD
Peter Schmidt
Tel: +86-10-8591-1953
Email: peter.schmidt@fd.com
HOUSTON, March 2 /PRNewswire-FirstCall/ -- Quanta Services, Inc. (NYSE: PWR) announced today that certain of its executive officers will submit Form 4 filings by tomorrow pursuant to Section 16 of the Securities Exchange Act of 1934.
Under Quanta's 2001 Stock Incentive Plan and 2007 Stock Incentive Plan, certain of its employees, including certain executive officers, previously received restricted stock awards, a portion of which vested on February 28, 2009. These awards for Quanta's executive officers were previously reported on Form 4 filings. Pursuant to the Plans, employees may elect to satisfy their tax withholding obligations upon vesting by having Quanta make the tax payments and withhold a number of vested shares having a value on the date of vesting equal to the employee's tax withholding obligation. As a result of employee elections, Quanta withheld shares of stock from certain of its executive officers to satisfy their tax obligations. The Form 4 filings will report as "dispositions" the number of shares withheld by Quanta and will reflect that the dispositions are exempt transactions in accordance with Rule 16b-3 under the Exchange Act.
Quanta Services is a leading specialized contracting services company, delivering infrastructure network solutions for the electric power, natural gas, telecommunications and cable television industries. The company's comprehensive services include designing, installing, repairing and maintaining network infrastructure nationwide. Additionally, Quanta provides dark fiber construction and leasing in select markets and offers related design, procurement, construction and maintenance services. With operations throughout North America, Quanta has the manpower, resources and expertise to complete projects that are local, regional, national or international in scope.
Contacts: James Haddox, CFO Ken Dennard / ksdennard@drg-e.com
Reba Reid Kip Rupp / krupp@drg-e.com
Quanta Services, Inc. DRG&E
713-629-7600 713-529-6600
Company Announces Expanded Environment, Health and Safety (EHS) Application; Aggressive Carbon Footprint Reduction Target; and New Sustainability Organization Led by Its First Chief Sustainability Officer
WALLDORF, Germany, March 2 /PRNewswire-FirstCall/ -- SAP AG (NYSE: SAP) today announced a long-term strategic focus on sustainability, covering both its own operations and customer solutions for more sustainable business practices. First, to help its customers with their sustainability efforts, SAP, together with TechniData AG, unveiled expanded solutions for environment, health and safety (EHS) management. In addition, to demonstrate its commitment to sustainable operations internally, SAP announced it will reduce its greenhouse gas emissions down to its year-2000 levels by the year 2020. And, moving forward, SAP announced that its sustainability efforts will be led by a newly formed cross-functional sustainability organization headed by SAP's first chief sustainability officer.
Organizations throughout the world are facing increasing local, regional and global regulation; a challenging economic situation; increased consumer awareness to social and environmental issues; resource scarcity; and highly networked business operations. These factors put brands, market share and even market cap at significant risk, but also represent new business opportunities. Sustainability is about increasing the profitability of businesses by holistically managing economic, social and environmental risks and opportunities. SAP understands that its long-term success is directly related to both appropriately addressing sustainability internally and to enabling its customers to meet the same challenges.
"SAP is in a unique, dual position when it comes to sustainability," said Leo Apotheker, co-CEO, SAP AG. "We have a moral obligation to start with ourselves and ensure that our business operates in a transparent and accountable manner, leaves a minimal environmental footprint and reaches out to improve the social situation of others. As the leader in business software, we also deliver solutions that help other businesses achieve clarity across their operations and better manage their sustainability performance. This is why we are making a strategic, long-term commitment to operate our company in a sustainable way and to help businesses address social, environmental and governance challenges on a global scale."
Addressing the growing need for EHS management solutions, SAP and TechniData AG, the leading providers of EHS solutions, announced an agreement to expand their existing relationship. As a result, SAP will own and sell a full line of co-created EHS applications to be offered under a single name, SAP(R) Environment, Health, and Safety Management (SAP EHS Management).
SAP already helps customers better manage risk and compliance for environmental, financial and supply chain concerns with its SAP(R) BusinessObjects(TM) governance, risk, and compliance (GRC) solutions. Additionally, SAP(R) Business Suite software provides business process efficiency, flexibility and insight, representing a sound foundation for an organization's sustainability endeavors.
The SAP EHS Management application helps customers ensure that EHS requirements and corporate sustainability policies are met proactively and automatically across business operations. SAP EHS Management is open to work with non-SAP solutions yet is integrated into SAP Business Suite, a next-generation software suite that helps businesses optimize their performance and reduce IT cost, helping eliminate data inaccuracies and providing companies with the ability to manage business processes across multiple departments.
SAP and TechniData have worked closely since 1995 on the research and development of solutions designed to meet EHS compliance. They continue to co-innovate solutions to help companies around the world manage landmark regulation laws, including European REACH regulations for chemical use, as well as health and safety mandates to ensure the well-being of workers.
"The SAP solutions we employ at Dow Corning allow us to provide our customers with clear, easy and rapid access to vitally important safety information about our products and how they should be handled," said Dr. Peter Cartwright, executive director of environment, health and safety, Dow Corning. "We believe sustainability is essential to our future success as a company. It is so important to us, we've made it a corporate value. SAP solutions are fundamental to our ability to operate to our industry principles of Responsible Care and give our customers peace of mind."
In addition to delivering sustainable business processes through, for example, its SAP EHS Management application, SAP is helping its customers practice "Green IT" by enabling them to reduce the energy footprint of SAP solutions in their data centers through consolidation, virtualization and other landscape optimization services.
Carbon Footprint Reduction Targets
In spite of the fact that SAP's carbon footprint is usually smaller than that of organizations in other industries with similar revenue, the company is striving for significant reductions. After analyzing its global environmental footprint, SAP announced its commitment to a 51-percent reduction of its total greenhouse gas (GHG) emissions from its year-2007 published baseline levels of 513,000t CO2 by year 2020. This will return SAP to its approximate year-2000 emissions level of 250,000t CO2. SAP initiated its first global GHG inventory in 2008 and will report performance and progress towards the target in its annual sustainability report.
Using its own software solutions to monitor and manage its sustainability targets, SAP will achieve this reduction through significant abatement across all scopes of the Greenhouse Gas Protocol, the most widely used international carbon accounting tool. The target will apply not only to SAP's own direct emissions, but also to indirect emissions such as business travel, which was 42 percent of SAP's total footprint in 2007. The company's reduction plans are based on aggressive abatement targets across direct and indirect emissions (scopes 1, 2 and 3 as defined by the Greenhouse Gas Protocol, the most widely used international carbon accounting tool), allowing offsets to be applied only to major indirect emissions sources that are out of the company's direct control. SAP will focus on abatement over offsets and will pioneer and use new technologies that accelerate the abatement of carbon. It therefore does not plan to offset direct emissions or emissions related to energy consumption.
New Sustainability Organization and Chief Sustainability Officer
SAP has formed a new cross-functional sustainability organization to drive and coordinate all aspects of its sustainability efforts. It is led by Peter Graf, SAP's first chief sustainability officer and executive vice president of Sustainability Solutions, who will report directly to SAP Executive Board member Jim Hagemann Snabe. Graf, a 13-year SAP veteran, leads a global team that oversees all sustainability-related initiatives, from the creation of solutions that enable sustainable business processes for customers to SAP's own sustainability operations, including key social, economic and environmental programs.
SAP Co-CEO to Speak on Sustainability at CeBIT
On Tuesday, March 3, 2009, SAP co-CEO Leo Apotheker will give a keynote address at CeBIT, the world's largest annual trade show for information and telecommunications technology. Apotheker will address sustainability and related issues in the context of information technology. More details are available on the CeBIT Web site.
For more information on sustainability at SAP, read a comprehensive fact sheet about SAP's increased focus on sustainable business.
About SAP
SAP is the world's leading provider of business software(*), offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With more than 82,000 customers in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol "SAP." For more information, visit www.sap.com.
(*) SAP defines business software as comprising enterprise resource planning and related applications.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
Copyright (C) 2009 SAP AG. All rights reserved.
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