Date: Wed, 19 Nov 1997 23:50:55 GMT Server: NCSA/1.5.2 Last-modified: Wed, 19 Nov 1997 16:53:43 GMT Content-type: text/html Content-length: 46394 Meridian Resource News

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Texas Meridian Resources Corporation Announces Record Results For 1996

Net Income up 231%, Cash Flow up 162%, Reserve Replacement 346%

Houston, Texas - February 26, 1997- Texas Meridian Resources Corporation (AMEX: TMR) announced today record results in all significant financial and operating categories. Net income for the fiscal year ended December 31, 1996 increased 231% to $7,134,000 on total revenues of $26,387,000 from net income of $2,153,000 on total revenues of $12,267,000 for the prior year. Net income per share was $0.45, up 181% from $0.16 in 1995. Cash flow for 1996 increased 162% to $19,528,000, or $1.24 per share, compared to $7,452,000, or $0.55 per share, in the year earlier period.

Improved results for the year were attributable to increases in production volumes and prices. Oil production was 118% higher than the previous year, while gas production increased 33% over 1995 levels. The substantial gains in oil production were primarily the result of new wells at the Company's East Cameron and Southwest Holmwood fields. In addition to higher volumes, increases in revenues, net income and cash flow were partly attributable to higher oil and natural gas prices. Oil prices averaged $22.19 per barrel during 1996, which was 24% higher than 1995 oil prices, and natural gas prices were 49% higher, averaging $2.60 per thousand cubic feet (Mcf) during 1996.

The Company replaced 346% of its production during 1996, as new discoveries contributed to a 65% increase in oil and gas reserves, after production of 8.4 Bcf of gas equivalents (Bcfe) for the year. Reserves at year end 1996 were 52.5 Bcfe compared to 31.8 Bcfe at the prior year end, with a consequent finding cost of $0.87 per Mcfe, excluding capital expenditures made during the year for properties which have not yet been evaluated.

The Company continues to have one of the lowest per unit operating expenses, and accordingly, one of the highest per unit operating margins of its peer companies as a result of the high average deliverability of its wells. Lease operating expenses averaged only $0.12 per Mcfe for both 1995 and 1996, while severance taxes were $0.20 per Mcfe in 1996 and $0.17 in 1995. Total per unit cash expenses for the company during 1996 were $0.82 per Mcfe, leaving an operating margin of $2.16 per Mcfe produced, or $12.96 on a per barrel equivalency.

Fourth Quarter Results:

Net income for the fourth quarter of 1996 was $2,457,000, which was 103%
higher than the $1,208,000 reported in the same quarter of 1995. Total
revenues were 97% higher in the fourth quarter of 1996, at $8,824,000
compared to $4,486,000 in the year earlier quarter, due to higher production and commodity prices. Cash flow for the last quarter of 1996 was $6,385,000, or 98% higher than cash flow of $3,220,000 for the comparable quarter of 1995.

Oil production in the fourth quarter of 1996 was 74% higher than for the same period in 1995, while natural gas production increased 35%. Prices for oil and natural gas during the 1996 fourth quarter were $24.53 per barrel and $2.97 per Mcf compared to 1995 fourth quarter prices of $17.91 per barrel and $1.99 per Mcf, representing increases of 37% for oil and 49% for natural gas.

Texas Meridian Resources Corporation is an independent oil and natural
gas company engaged in the exploration for and development of oil and
natural gas properties utilizing 3D seismic technology, primarily in south Louisiana and southeast Texas. The Company's office is located in Houston, Texas and its shares are traded on the American Stock Exchange under the symbol "TMR."

TEXAS MERIDIAN RESOURCES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)

Dec 31, 1996
Dec 31, 1995
ASSETS:
Current Assets
Property & Equipment, net
Other Assets
$25,345
77,502
415
$39,125
47,224
377
$103,262
$86,726

LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities
Deferred Income Taxes
Other Long-term Liabilities
Stockholders' Equity
$21,507
3,380
­­­
78,375
$15,187
­­­
­­­
71,539
$103,262
$86,726

 

Texas Meridian Resources Corporation
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)

Three Months Ended December 31,
1996
1995
Change
Revenues:
Oil
$3,875
$1,630
Natural gas
4,753
2,358
Interest and other
196
498
8,824
4,486
+97%

Year Ended
December 31,
1996
1995
Change
Revenues:
Oil
$10,608
$3,913
Natural gas
14,499
7,311
Interest and other
1,280
1,043
26,387
12,267
+115%

 

Three Months Ended December 31,
1996
1995
Change
Costs and Expenses:
Lease operating
362
229
Sev. and ad valorem taxes
619
343
Depl., depr. & amortization
2,606
1,712
General & administrative
1,454
683
Other
0
300
Interest
4
7
5,045
3,274
+54%

Year Ended
December 31,
1996
1995
Change
Costs and Expenses:
Lease operating
981
683
Sev. and ad valorem taxes
1,661
917
Depl., depr. & amortization
9,014
4,999
General & administrative
4,223
3,135
Other
0
300
Interest
20
50
15,899
10,084
+58%


Three Months Ended December 31,
1996
1995
Change

Income before Income Taxes:
3,779
1,212
+212%

Income Tax Expense:
Current
0
4
Deferred
1,322
0
1,322
4

Year Ended
December 31,
1996
1995
Change

Income before Income Taxes:
10,488
2,183
+380%

Income Tax Expense:
Current
(26)
30
Deferred
3,380
0
3,354
30


Three Months Ended
December 31,
1996
1995
Change

Net Income
2,457
1,208
+103%
Per share
0.15
0.09

Cash Flow
6,385
3,220
+98%
0.40
0.21

Year Ended
December 31,
1996
1995
Change

Net Income
7,134
2,153
+231%
Per share
0.45
0.16

Cash Flow
19,528
7,452
+162%
1.24
0.55

 

Texas Meridian Resources Corporation
OPERATIONAL DATA
(unaudited)

Three Months Ended Dec 31,
Year Ended
Dec. 31,
1996
1995
Change
1996
1995
Change
Production:
Oil (MBbls)
158
91
+74%
478
219
+118%
Natural gas (Mmcf)
1,600
1,187
+35%
5,567
4,195
+33%
Gas equivalents (Mmcfe)
2,548
1,733
+47%
8,435
5,509
+53%

 

Three Months Ended Dec 31,
Year Ended
Dec. 31,
Avg. Daily
1996
1995
Change
1996
1995
Change
Production:
Oil (Bbls)
1,717
989
+74%
1,310
600
+118%
Natural gas (Mcf)
17,391
12,902
+35%
15,252
11,493
+33%
Gas equivalents (Mcfe)
27,696
18,837
+47%
23,110
15,093
+53%

 

Three Months Ended Dec 31,
Year Ended
Dec. 31,
1996
1995
Change
1996
1995
Change
Average Prices:
Oil ($/Bbls)
24.53
17.91
+37%
22.19
17.87
+24%
Natural gas ($/Mcf)
2.97
1.99
+49%
2.60
1.74
+49%
Gas equivalents ($/Mcfe)
3.39
2.30
+47%
2.98
2.04
+46%

 

Three Months Ended Dec 31,
Year Ended
Dec. 31,
Operating
1996
1995
Change
1996
1995
Change
Information:
LOE($/Mcfe)
0.14
0.13
+8%
0.12
0.12
----
Severance Tax ($/Mcfe)
0.24
0.20
+20%
0.20
0.17
+18%
DD&A ($/Mcfe)
1.02
0.99
+3%
1.07
0.91
+18%
G&A Expense ($/Mcfe)
0.57
0.39
+46%
0.50
0.57
-12%

 

Year Ended
December 31,
1996
1995
Change
Reserves:
Oil (MBbls)
4,524
1,280
+253%
Natural gas (Mmcf)
25,368
24,090
+5%
Interest and other (Mmcfe)
52,513
31,773
+65%

 



FOR MORE INFORMATION CONTACT:
W. MATT RALLS,
JOSEPH A. REEVES, JR.
or
MICHAEL J. MAYELL
(713) 558-8080