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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
|
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Other |
0
|
300
|
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Interest |
4
|
7
|
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|
5,045
|
3,274
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+54%
|
|
Year Ended
December 31,
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|
|
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
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General & administrative |
4,223
|
3,135
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Other |
0
|
300
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Interest |
20
|
50
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15,899
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10,084
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+58%
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|
Three Months Ended December 31,
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1996
|
1995
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Change
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Income before Income Taxes: |
3,779
|
1,212
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+212%
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Income Tax Expense: |
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Current |
0
|
4
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Deferred |
1,322
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0
|
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1,322
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4
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Year Ended
December 31,
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|
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1996
|
1995
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Change
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Income before Income Taxes: |
10,488
|
2,183
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+380%
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Income Tax Expense: |
|
|
|
Current |
(26)
|
30
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Deferred |
3,380
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0
|
|
|
3,354
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30
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Three Months Ended
December 31,
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|
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1996
|
1995
|
Change
|
Net Income |
2,457
|
1,208
|
+103%
|
Per share |
0.15
|
0.09
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Cash Flow |
6,385
|
3,220
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+98%
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|
0.40
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0.21
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Year Ended
December 31,
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1996
|
1995
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Change
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Net Income |
7,134
|
2,153
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+231%
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Per share |
0.45
|
0.16
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Cash Flow |
19,528
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7,452
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+162%
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1.24
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0.55
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Texas Meridian Resources Corporation
OPERATIONAL DATA
(unaudited)
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Three Months Ended Dec 31,
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Year Ended
Dec. 31,
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|
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1996
|
1995
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Change
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1996
|
1995
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Change
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Production: |
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|
|
|
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Oil (MBbls) |
158
|
91
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+74%
|
478
|
219
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+118%
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Natural gas (Mmcf) |
1,600
|
1,187
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+35%
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5,567
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4,195
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+33%
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Gas equivalents (Mmcfe) |
2,548
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1,733
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+47%
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8,435
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5,509
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+53%
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Three Months Ended Dec 31,
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Year Ended
Dec. 31,
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Avg. Daily |
1996
|
1995
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Change
|
1996
|
1995
|
Change
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Production: |
|
|
|
|
|
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Oil (Bbls) |
1,717
|
989
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+74%
|
1,310
|
600
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+118%
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Natural gas (Mcf) |
17,391
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12,902
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+35%
|
15,252
|
11,493
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+33%
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Gas equivalents (Mcfe) |
27,696
|
18,837
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+47%
|
23,110
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15,093
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+53%
|
|
Three Months Ended Dec 31,
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Year Ended
Dec. 31,
|
|
|
1996
|
1995
|
Change
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1996
|
1995
|
Change
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Average Prices: |
|
|
|
|
|
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Oil ($/Bbls) |
24.53
|
17.91
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+37%
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22.19
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17.87
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+24%
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Natural gas ($/Mcf) |
2.97
|
1.99
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+49%
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2.60
|
1.74
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+49%
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Gas equivalents ($/Mcfe) |
3.39
|
2.30
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+47%
|
2.98
|
2.04
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+46%
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Three Months Ended Dec 31,
|
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Year Ended
Dec. 31,
|
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Operating |
1996
|
1995
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Change
|
1996
|
1995
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Change
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Information: |
|
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LOE($/Mcfe) |
0.14
|
0.13
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+8%
|
0.12
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0.12
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----
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Severance Tax ($/Mcfe) |
0.24
|
0.20
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+20%
|
0.20
|
0.17
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+18%
|
DD&A ($/Mcfe) |
1.02
|
0.99
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+3%
|
1.07
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0.91
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+18%
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G&A Expense ($/Mcfe) |
0.57
|
0.39
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+46%
|
0.50
|
0.57
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-12%
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Year Ended
December 31,
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1996
|
1995
|
Change
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Reserves: |
|
|
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Oil (MBbls) |
4,524
|
1,280
|
+253%
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Natural gas (Mmcf) |
25,368
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24,090
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+5%
|
Interest and other (Mmcfe) |
52,513
|
31,773
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+65%
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FOR MORE INFORMATION CONTACT:
W. MATT RALLS,
JOSEPH A. REEVES, JR.
or
MICHAEL J. MAYELL
(713) 558-8080
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