Barrett Resources Reports First Quarter Financial Results

Apr 30, 2001, 01:00 ET from Barrett Resources Corporation

    DENVER, April 30 /PRNewswire/ -- Barrett Resources Corporation (NYSE:   BRR)
 reported a 628 percent increase in net income to $57.0 million, or $1.67 per
 diluted share, for the first quarter ended March 31, 2001, as compared to
 $7.8 million, or 24 cents per diluted share, for the prior year first quarter.
 Excluding non-cash mark to market expense adjustments related to gas sales
 that do not qualify for hedge accounting treatment, the Company's recurring
 net income was $48.1 million or $1.41 per diluted share.  Cash flow before
 working capital changes totaled $101.3 million, or $2.96 per diluted share, as
 compared to $38.7 million, or $1.18 per diluted share, for the prior year
 first quarter.
     During first quarter 2001, the Company averaged 323 MMcf (million cubic
 feet) of gas production per day and 2,450 barrels of oil per day.  Total
 equivalent production averaged 338 MMcfe (million cubic feet of gas
 equivalent) per day, a five percent increase from the fourth quarter of 2000.
 Natural gas production accounted for 96 percent of total production on an
 energy equivalent basis.  The Piceance Basin, Powder River Basin Coal Bed
 Methane and Wind River Basin properties accounted for 35, 25, and 12 percent
 of total production, respectively.
     Oil and gas production revenue increased 140 percent to $161.4 million for
 the 2001 quarter from $67.2 million reported in the first quarter of 2000.
 The average gas price realized for the 2001 quarter was $5.38 per Mcf
 (thousand cubic feet), a 153 percent increase over the $2.13 Mcf received in
 the 2000 quarter.
     Peter A. Dea, Chairman and Chief Executive Officer commented, "Our strong
 earnings, cash flow and production revenue are once again a reflection of our
 Rocky Mountain natural gas focus and concentrated high quality assets.
 Production is squarely on track to attain double digit growth for the year.
 Additionally, the Company reduced bank debt by $108 million to $140 million at
 March 31, 2001 from $248 million reported at December 31, 2000."
 
     The following table sets out the Company's financial and production
 statistics:
 
 
                                                     3 Months Ended
                                           March 31,     March 31,
                                              2001          2000      Change
 
      Production revenue (millions)          $161.4        $67.2      140%
      Natural gas production (BCF)             29.1         28.8        1%
      Average gas sales price ($/Mcf)         $5.38        $2.13      153%
      Oil production (MBbls)                    221          231       (4%)
      Average oil sales price ($/Bbl)        $23.89       $25.16       (5%)
 
      Net income per share                    $1.67        $0.24      596%
      Recurring net income per share,
       excluding mark to market               $1.41        $0.26      442%
      Cash flow per share before
       working capital changes                $2.96        $1.18      151%
 
 
     At March 31, 2001, the Company had cash of $23 million, total assets of
 $1.2 billion, and total debt of $303 million.
     On January 1, 2001, the Company adopted SFAS 133 to account for derivative
 instruments and hedging activities.  As of March 31, 2001, the Company
 recorded a pre-tax, non-cash mark to market valuation of its cash flow hedges
 as a liability of $120.8 million, a reduction of $42.6 million from the
 valuation as of January 1, 2001.
 
     Barrett Resources is a Denver-based independent natural gas and oil
 exploration and production company that is also involved in gas gathering,
 marketing and trading activities.  Barrett's properties are focused primarily
 in the Rocky Mountain region of Colorado, Wyoming and Utah, the Mid-Continent
 area of Kansas, and Oklahoma and the Gulf of Mexico region of offshore Texas
 and Louisiana.  For additional information about Barrett, please visit our Web
 site at www.brr.com.
 
     Forward-Looking Statements
     This press release may contain projections and other forward-looking
 statements within the meaning of Section 21E of the Securities Exchange Act of
 1934, as amended.  Any such projections or statements include the Company's
 current views with respect to future events, financial performance, Board
 decisions with respect to modifying the process described herein, and
 expectations of responses by potential qualified parties.  No assurances can
 be given, however, that these events will occur or that such projections will
 be achieved and actual results could differ materially from those projected.
 A discussion of important factors that could cause actual results to differ
 materially from those projected is included in the Company's periodic reports
 filed with the Securities and Exchange Commission.
 
     IN RESPONSE TO THE AMENDED TENDER OFFER COMMENCED BY SHELL OIL COMPANY
 THROUGH ITS INDIRECT WHOLLY OWNED SUBSIDIARY SRM ACQUISITION COMPANY, BARRETT
 RE

SOURCES CORPORATION WILL FILE WITH THE SEC ITS RECOMMENDATION TO STOCKHOLDERS REGARDING THE TENDER OFFER. IN RESPONSE TO ANY CONSENT SOLICITATION THAT MAY BE COMMENCED BY SHELL AND SRM ACQUISITION, BARRETT WILL FILE WITH THE SEC A CONSENT REVOCATION STATEMENT AND ANY OTHER SOLICITATION MATERIALS THAT MAY BE PREPARED BY BARRETT IN RESPONSE TO SHELL'S CONSENT SOLICITATION. BARRETT HAS FILED WITH THE SEC A PRELIMINARY CONSENT REVOCATION STATEMENT AND OTHER SOLICITATION MATERIALS IN RESPONSE TO A PRELIMINARY CONSENT SOLICITATION STATEMENT FILED BY SHELL WITH THE SEC. INVESTORS ARE STRONGLY ADVISED TO READ ANY DEFINITIVE CONSENT REVOCATION STATEMENT, IF AND WHEN IT IS FILED AND BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. ANY DEFINITIVE CONSENT REVOCATION STATEMENT WOULD BE FILED BY BARRETT WITH THE SEC. STOCKHOLDERS AND INVESTORS WILL BE ABLE TO OBTAIN A FREE COPY OF ANY DEFINITIVE CONSENT REVOCATION STATEMENT (IF AND WHEN FILED AND AVAILABLE) AND OTHER RELEVANT DOCUMENTS ON THE SEC'S WEB SITE AT WWW.SEC.GOV. ANY DEFINITIVE CONSENT REVOCATION STATEMENT AND RELATED MATERIALS MAY ALSO BE OBTAINED FOR FREE BY DIRECTING A REQUEST TO BARRETT RE

SOURCES CORPORATION -- INVESTOR RELATIONS AT (303) 572-3900. CERTAIN INFORMATION REGARDING PERSONS WHO MAY BE DEEMED TO BE PARTICIPANTS IN ADDITION, THE IDENTITY OF PEOPLE WHO, UNDER SEC RULES, MAY BE CONSIDERED PARTICIPANTS IN THE SOLICITATION OF CONSENT REVOCATIONS FROM BARRETT STOCKHOLDERS AND SUCH PERSONS' HOLDINGS OF BARRETT COMMON STOCK ARE CONTAINED IN BARRETT'S PRELIMINARY CONSENT REVOCATION STATEMENT FILED WITH THE SEC UNDER REGULATION 14A. Encl.: A.) Income Statement B.) Balance Sheet C.) Statement of Cash Flows BARRETT RE

SOURCES CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited) Three Months Ended March 31, March 31, 2001 2000 Operating revenues: Oil and gas production $161,430 $67,204 Other income 3,553 1,907 164,983 69,111 Operating expenses: Lease operating expense 9,641 5,392 Transportation and gathering 10,572 6,503 Production tax 16,341 5,964 Depreciation, depletion and amortization 26,309 25,211 General and administrative 5,603 7,825 68,466 50,895 Operating income 96,517 18,216 Other income and (expense): Interest income 371 207 Interest expense (5,766) (6,097) Trading activities, net 3,440 297 Other (2,608) -- (4,563) (5,593) Income for the period before income tax 91,954 12,623 Provision for income taxes 34,942 4,797 Net income for the period $57,012 $7,826 Net income per share and common share equivalent - diluted $1.67 $0.24 Recurring net income per share and common share equivalent - diluted $1.41 $0.26 Weighted average number of shares of common stock and common stock equivalents - diluted 34,212 32,888 BARRETT RE

SOURCES CORPORATION CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands) ASSETS March 31, December 31, 2001 2000 (Unaudited) Current assets: Cash and cash equivalents $22,830 $25,454 Receivables, net 177,519 297,766 Gas inventory held for sale, at market 855 27,418 Deferred income tax asset 26,372 -- Other current assets 18,436 29,042 Total current assets 246,012 379,680 Property and equipment, net 907,494 869,606 Other assets, net 9,264 4,547 $1,162,770 $1,253,833 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $147,352 $234,739 Amounts payable to oil and gas property owners 13,144 18,672 Production taxes payable 44,039 39,229 Accrued and other liabilities 20,571 20,917 Unrealized losses on mark to market transactions - trading 12,393 47,745 Unrealized losses on mark to market transactions - SFAS 133 69,400 -- Total current liabilities 306,899 361,302 Long term debt 295,005 406,269 Unrealized losses on mark to market transactions - trading 36,340 31,446 Unrealized losses on mark to market transactions - SFAS 133 51,439 -- Other long-term liabilities 20,000 -- Deferred income taxes 52,560 39,003 Stockholders' equity: Preferred stock, $.001 par value: 1,000,000 shares authorized, none outstanding -- -- Common stock, $.01 par value: 45,000,000 shares authorized, 33,461,004 outstanding (33,394,063 at December 31, 2000) 335 334 Additional paid-in capital 298,534 296,043 Retained earnings 176,446 119,436 Accumulated other comprehensive loss (74,525) -- Treasury stock, at cost (263) -- Total stockholders' equity 400,527 415,813 $1,162,770 $1,253,833 BARRETT RE

SOURCES CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Three Months Ended March 31, March 31, 2001 2000 Cash flows from operations: Net income $57,011 $7,826 Adjustments needed to reconcile to net cash flow provided by operations: Depreciation, depletion and amortization 26,513 25,312 Deferred income taxes 33,104 4,545 Unrealized losses on mark to market transactions (14,375) 1,029 Other non-cash items (944) -- 101,309 38,712 Change in current assets and liabilities: Accounts receivable 120,247 (46,564) Other current assets 21,556 (2,183) Accounts payable (87,387) 36,736 Amounts due oil and gas owners (5,528) 3,743 Production taxes payable 4,810 3,121 Accrued and other liabilities (1,520) (2,508) Net cash flow provided by operations 153,487 31,057 Cash flows from investing activities: Proceeds from sale of oil and gas properties 249 16,377 Acquisition of property and equipment (64,522) (89,655) Net cash flow used in investing activities (64,273) (73,278) Cash flows from financing activities: Proceeds from issuance of common stock 1,926 403 Proceeds from long-term borrowing 64,000 58,000 Payment on long-term debt (172,843) (28,809) Other 15,079 -- Net cash flow (used in) provided by financing activities (91,838) 29,594 Decrease in cash and cash equivalents (2,624) (12,627) Cash and cash equivalents at beginning of period 25,454 20,634 Cash and cash equivalents at end of period $22,830 $8,007 MAKE YOUR OPINION COUNT - Click Here http://tbutton.prnewswire.com/prn/11690X42723961

SOURCE Barrett Resources Corporation
    DENVER, April 30 /PRNewswire/ -- Barrett Resources Corporation (NYSE:   BRR)
 reported a 628 percent increase in net income to $57.0 million, or $1.67 per
 diluted share, for the first quarter ended March 31, 2001, as compared to
 $7.8 million, or 24 cents per diluted share, for the prior year first quarter.
 Excluding non-cash mark to market expense adjustments related to gas sales
 that do not qualify for hedge accounting treatment, the Company's recurring
 net income was $48.1 million or $1.41 per diluted share.  Cash flow before
 working capital changes totaled $101.3 million, or $2.96 per diluted share, as
 compared to $38.7 million, or $1.18 per diluted share, for the prior year
 first quarter.
     During first quarter 2001, the Company averaged 323 MMcf (million cubic
 feet) of gas production per day and 2,450 barrels of oil per day.  Total
 equivalent production averaged 338 MMcfe (million cubic feet of gas
 equivalent) per day, a five percent increase from the fourth quarter of 2000.
 Natural gas production accounted for 96 percent of total production on an
 energy equivalent basis.  The Piceance Basin, Powder River Basin Coal Bed
 Methane and Wind River Basin properties accounted for 35, 25, and 12 percent
 of total production, respectively.
     Oil and gas production revenue increased 140 percent to $161.4 million for
 the 2001 quarter from $67.2 million reported in the first quarter of 2000.
 The average gas price realized for the 2001 quarter was $5.38 per Mcf
 (thousand cubic feet), a 153 percent increase over the $2.13 Mcf received in
 the 2000 quarter.
     Peter A. Dea, Chairman and Chief Executive Officer commented, "Our strong
 earnings, cash flow and production revenue are once again a reflection of our
 Rocky Mountain natural gas focus and concentrated high quality assets.
 Production is squarely on track to attain double digit growth for the year.
 Additionally, the Company reduced bank debt by $108 million to $140 million at
 March 31, 2001 from $248 million reported at December 31, 2000."
 
     The following table sets out the Company's financial and production
 statistics:
 
 
                                                     3 Months Ended
                                           March 31,     March 31,
                                              2001          2000      Change
 
      Production revenue (millions)          $161.4        $67.2      140%
      Natural gas production (BCF)             29.1         28.8        1%
      Average gas sales price ($/Mcf)         $5.38        $2.13      153%
      Oil production (MBbls)                    221          231       (4%)
      Average oil sales price ($/Bbl)        $23.89       $25.16       (5%)
 
      Net income per share                    $1.67        $0.24      596%
      Recurring net income per share,
       excluding mark to market               $1.41        $0.26      442%
      Cash flow per share before
       working capital changes                $2.96        $1.18      151%
 
 
     At March 31, 2001, the Company had cash of $23 million, total assets of
 $1.2 billion, and total debt of $303 million.
     On January 1, 2001, the Company adopted SFAS 133 to account for derivative
 instruments and hedging activities.  As of March 31, 2001, the Company
 recorded a pre-tax, non-cash mark to market valuation of its cash flow hedges
 as a liability of $120.8 million, a reduction of $42.6 million from the
 valuation as of January 1, 2001.
 
     Barrett Resources is a Denver-based independent natural gas and oil
 exploration and production company that is also involved in gas gathering,
 marketing and trading activities.  Barrett's properties are focused primarily
 in the Rocky Mountain region of Colorado, Wyoming and Utah, the Mid-Continent
 area of Kansas, and Oklahoma and the Gulf of Mexico region of offshore Texas
 and Louisiana.  For additional information about Barrett, please visit our Web
 site at www.brr.com.
 
     Forward-Looking Statements
     This press release may contain projections and other forward-looking
 statements within the meaning of Section 21E of the Securities Exchange Act of
 1934, as amended.  Any such projections or statements include the Company's
 current views with respect to future events, financial performance, Board
 decisions with respect to modifying the process described herein, and
 expectations of responses by potential qualified parties.  No assurances can
 be given, however, that these events will occur or that such projections will
 be achieved and actual results could differ materially from those projected.
 A discussion of important factors that could cause actual results to differ
 materially from those projected is included in the Company's periodic reports
 filed with the Securities and Exchange Commission.
 
     IN RESPONSE TO THE AMENDED TENDER OFFER COMMENCED BY SHELL OIL COMPANY
 THROUGH ITS INDIRECT WHOLLY OWNED SUBSIDIARY SRM ACQUISITION COMPANY, BARRETT
 RESOURCES CORPORATION WILL FILE WITH THE SEC ITS RECOMMENDATION TO
 STOCKHOLDERS REGARDING THE TENDER OFFER.
     IN RESPONSE TO ANY CONSENT SOLICITATION THAT MAY BE COMMENCED BY SHELL AND
 SRM ACQUISITION, BARRETT WILL FILE WITH THE SEC A CONSENT REVOCATION STATEMENT
 AND ANY OTHER SOLICITATION MATERIALS THAT MAY BE PREPARED BY BARRETT IN
 RESPONSE TO SHELL'S CONSENT SOLICITATION.  BARRETT HAS FILED WITH THE SEC A
 PRELIMINARY CONSENT REVOCATION STATEMENT AND OTHER SOLICITATION MATERIALS IN
 RESPONSE TO A PRELIMINARY CONSENT SOLICITATION STATEMENT FILED BY SHELL WITH
 THE SEC.  INVESTORS ARE STRONGLY ADVISED TO READ ANY DEFINITIVE CONSENT
 REVOCATION STATEMENT, IF AND WHEN IT IS FILED AND BECOMES AVAILABLE, BECAUSE
 IT WILL CONTAIN IMPORTANT INFORMATION.  ANY DEFINITIVE CONSENT REVOCATION
 STATEMENT WOULD BE FILED BY BARRETT WITH THE SEC.
     STOCKHOLDERS AND INVESTORS WILL BE ABLE TO OBTAIN A FREE COPY OF ANY
 DEFINITIVE CONSENT REVOCATION STATEMENT (IF AND WHEN FILED AND AVAILABLE) AND
 OTHER RELEVANT DOCUMENTS ON THE SEC'S WEB SITE AT WWW.SEC.GOV.  ANY DEFINITIVE
 CONSENT REVOCATION STATEMENT AND RELATED MATERIALS MAY ALSO BE OBTAINED FOR
 FREE BY DIRECTING A REQUEST TO BARRETT RESOURCES CORPORATION -- INVESTOR
 RELATIONS AT (303) 572-3900.
 
                     CERTAIN INFORMATION REGARDING PERSONS
                      WHO MAY BE DEEMED TO BE PARTICIPANTS
 
     IN ADDITION, THE IDENTITY OF PEOPLE WHO, UNDER SEC RULES, MAY BE
 CONSIDERED PARTICIPANTS IN THE SOLICITATION OF CONSENT REVOCATIONS FROM
 BARRETT STOCKHOLDERS AND SUCH PERSONS' HOLDINGS OF BARRETT COMMON STOCK ARE
 CONTAINED IN BARRETT'S PRELIMINARY CONSENT REVOCATION STATEMENT FILED WITH THE
 SEC UNDER REGULATION 14A.
 
     Encl.:  A.) Income Statement
             B.) Balance Sheet
             C.) Statement of Cash Flows
 
 
                           BARRETT RESOURCES CORPORATION
 
                    CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                       (in thousands, except per share data)
                                    (Unaudited)
 
                                                        Three Months Ended
                                                     March 31,      March 31,
                                                       2001            2000
     Operating revenues:
       Oil and gas production                        $161,430        $67,204
       Other income                                     3,553          1,907
                                                      164,983         69,111
     Operating expenses:
       Lease operating expense                          9,641          5,392
       Transportation and gathering                    10,572          6,503
       Production tax                                  16,341          5,964
       Depreciation, depletion and amortization        26,309         25,211
       General and administrative                       5,603          7,825
                                                       68,466         50,895
     Operating income                                  96,517         18,216
 
     Other income and (expense):
       Interest income                                    371            207
       Interest expense                                (5,766)        (6,097)
       Trading activities, net                          3,440            297
       Other                                           (2,608)            --
                                                       (4,563)        (5,593)
     Income for the period before income tax           91,954         12,623
 
     Provision for income taxes                        34,942          4,797
     Net income for the period                        $57,012         $7,826
     Net income per share and common
      share equivalent - diluted                        $1.67          $0.24
 
     Recurring net income per share
      and common share equivalent - diluted             $1.41          $0.26
 
     Weighted average number of shares of common
      stock and common stock equivalents - diluted     34,212         32,888
 
 
 
                           BARRETT RESOURCES CORPORATION
 
                       CONSOLIDATED CONDENSED BALANCE SHEETS
                                   (in thousands)
 
                      ASSETS
                                                     March 31,    December 31,
                                                       2001           2000
                                                   (Unaudited)
     Current assets:
       Cash and cash equivalents                      $22,830        $25,454
       Receivables, net                               177,519        297,766
       Gas inventory held for sale, at market             855         27,418
       Deferred income tax asset                       26,372             --
       Other current assets                            18,436         29,042
         Total current assets                         246,012        379,680
 
     Property and equipment, net                      907,494        869,606
 
     Other assets, net                                  9,264          4,547
                                                   $1,162,770     $1,253,833
 
            LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
       Accounts payable                              $147,352       $234,739
       Amounts payable to oil
        and gas property owners                        13,144         18,672
       Production taxes payable                        44,039         39,229
       Accrued and other liabilities                   20,571         20,917
       Unrealized losses on mark
        to market transactions - trading               12,393         47,745
       Unrealized losses on mark
        to market transactions - SFAS 133              69,400             --
         Total current liabilities                    306,899        361,302
 
     Long term debt                                   295,005        406,269
     Unrealized losses on mark
      to market transactions - trading                 36,340         31,446
     Unrealized losses on mark
      to market transactions - SFAS 133                51,439             --
     Other long-term liabilities                       20,000             --
     Deferred income taxes                             52,560         39,003
 
     Stockholders' equity:
       Preferred stock, $.001 par value:
        1,000,000 shares authorized,
        none outstanding                                   --             --
       Common stock, $.01 par value:
        45,000,000 shares authorized,
        33,461,004 outstanding
        (33,394,063 at December 31, 2000)                 335            334
       Additional paid-in capital                     298,534        296,043
       Retained earnings                              176,446        119,436
       Accumulated other comprehensive loss           (74,525)            --
       Treasury stock, at cost                           (263)            --
         Total stockholders' equity                   400,527        415,813
                                                   $1,162,770     $1,253,833
 
 
                           BARRETT RESOURCES CORPORATION
 
                  CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (in thousands)
                                    (Unaudited)
 
                                                        Three Months Ended
                                                     March 31,       March 31,
                                                        2001           2000
     Cash flows from operations:
       Net income                                     $57,011         $7,826
       Adjustments needed to reconcile to
        net cash flow provided by operations:
         Depreciation, depletion and amortization      26,513         25,312
         Deferred income taxes                         33,104          4,545
         Unrealized losses on mark
          to market transactions                      (14,375)         1,029
         Other non-cash items                            (944)            --
                                                      101,309         38,712
         Change in current assets and liabilities:
           Accounts receivable                        120,247        (46,564)
           Other current assets                        21,556         (2,183)
           Accounts payable                           (87,387)        36,736
           Amounts due oil and gas owners              (5,528)         3,743
           Production taxes payable                     4,810          3,121
           Accrued and other liabilities               (1,520)        (2,508)
     Net cash flow provided by operations             153,487         31,057
 
     Cash flows from investing activities:
       Proceeds from sale of oil
        and gas properties                                249         16,377
       Acquisition of property and equipment          (64,522)       (89,655)
     Net cash flow used in investing activities       (64,273)       (73,278)
 
     Cash flows from financing activities:
       Proceeds from issuance of common stock           1,926            403
       Proceeds from long-term borrowing               64,000         58,000
       Payment on long-term debt                     (172,843)       (28,809)
       Other                                           15,079             --
     Net cash flow (used in) provided
      by financing activities                         (91,838)        29,594
 
     Decrease in cash and cash equivalents             (2,624)       (12,627)
     Cash and cash equivalents
      at beginning of period                           25,454         20,634
     Cash and cash equivalents at end of period       $22,830         $8,007
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X42723961
 
 SOURCE  Barrett Resources Corporation