Clayton Williams Energy Announces Record First Quarter Revenues and Cash Flow

Apr 26, 2001, 01:00 ET from Clayton Williams Energy, Inc.

    MIDLAND, Texas, April 26 /PRNewswire/ --
 Clayton Williams Energy, Inc.  (Nasdaq: CWEI) reported today net income for
 the first quarter of 2001 of $2.3 million, or $.24 per share, on record
 revenues of $35.9 million, compared to net income of $6.4 million, or $.69 per
 share, on revenues of $20.2 million for the first quarter of 2000.  Earnings
 before interest, income taxes, exploration costs, non-cash charges and other
 income/expense (EBITDAX) for the 2001 period totaled $27.3 million, or
 $2.86 per share, compared to $14.9 million, or $1.59 per share, for the first
 quarter of 2000.  All per share amounts presented are based on diluted shares.
     The Company's reported EBITDAX for the first quarter of 2001 was the
 highest in the Company's history.  The Company also reported record oil and
 gas sales of $33.1 million for the quarter ended March 31, 2001, 73% higher
 than the $19.1 million reported in the first quarter of 2000.  The Company
 credited increased gas production and continued strong product prices for this
 significant achievement.  Gas production for the first quarter of 2001 totaled
 2.2 Bcf, or 24.5 MMcf per day, compared to 1.2 Bcf, or 13.2 MMcf per day, in
 2000.  Oil production for the current quarter totaled 548,000 barrels, or
 6,089 barrels per day, compared to 549,000 barrels, or 6,033 barrels per day
 in 2000.  Natural gas liquids production averaged 578 barrels per day in the
 first quarter of 2001, compared to 495 barrels per day in 2000.
     The Company's average realized gas price increased 259% from $2.06 per Mcf
 in 2000 to $7.38 per Mcf in 2001.  Oil prices remained relatively constant at
 $28.38 per barrel in the 2001 quarter, compared to $28.11 per barrel in 2000.
 Very little of the Company's future oil and gas production is subject to
 fixed-price derivative contracts.
     Despite the high levels of oil and gas sales and cash flow, net income was
 adversely affected by an increase in non-cash exploration costs consisting
 primarily of seismic costs and exploratory dry hole costs.  Exploration costs
 for the first quarter of 2001 totaled $14.8 million, compared to $2.8 million
 for the corresponding quarter in 2000, and included:
 
     -- $8.5 million of seismic costs, of which $7.5 million relates to the
        one-time purchase of up to 3,400 square miles of 3-D seismic data in
        South Louisiana; and
 
     -- $5.9 million in dry hole costs, of which $2.8 million relates to the
        Big Red #1, a Cotton Valley Pinnacle Reef well, and $2.7 million
        relates to 2 gross (1.2 net) wells in the Sweetlake area and 1 gross
        (1.0 net) well in Plaquemines Parish in connection with the Company's
        emerging exploration program in South Louisiana.
 
     The Company plans to host a conference call in May to review the first
 quarter results, discuss the status of the Company's exploration activities,
 and provide financial guidance for the second quarter and year 2001.
 Specifics concerning the date and time of the conference call will be provided
 when available.
     Clayton Williams Energy, Inc. is an independent energy company located in
 Midland, Texas.
     Certain statements contained herein constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995 (the "Reform Act").  Such forward-looking statements involve known and
 unknown risks, uncertainties, and other factors that may cause the actual
 results, performance, or achievements of the Company to be materially
 different from any future results, performance, or achievements expressed or
 implied by such forward-looking statements.  Such factors include, among
 others, the following:  the volatility of oil and gas prices, the Company's
 drilling results, the Company's ability to replace short-lived reserves, the
 availability of capital resources, the reliance upon estimates of proved
 reserves, operating hazards and uninsured risks, competition, government
 regulation, the ability of the Company to implement its business strategy, and
 other factors referenced in the Company's public filings with the Securities
 and Exchange Commission.
 
                         CLAYTON WILLIAMS ENERGY, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                        (In thousands, except per share)
                                  (Unaudited)
 
                                                   Three Months Ended
                                                        March 31,
                                                 2001              2000
     REVENUES
          Oil and gas sales                    $33,096           $19,102
          Natural gas services                   2,851             1,119
               Total revenues                   35,947            20,221
 
     COSTS AND EXPENSES
          Lease operations                       4,984             3,700
          Exploration:
               Abandonments and impairments      6,335             1,783
               Seismic and other                 8,508               976
          Natural gas services                   2,656               869
          Depreciation, depletion and
           amortization                          8,213             5,057
          General and administrative               960               851
          Change in fair value of fixed-
           price contracts                         190                 -
               Total costs and expenses         31,846            13,236
               Operating income                  4,101             6,985
 
     OTHER INCOME (EXPENSE)
          Interest expense                        (554)             (611)
          Gain on sales of property and
           equipment                                13                 4
          Other                                     53                46
               Total other income (expense)       (488)             (561)
 
     Income before income taxes and
      cumulative effect of accounting change     3,613             6,424
 
     Income tax expense                          1,191                 -
 
     Income before cumulative effect of
      accounting change                          2,422             6,424
 
     Cumulative effect of accounting
      change, net of tax (A)                      (164)              ---
 
     Net income                                 $2,258            $6,424
 
     Net income per common share:
     Basic:
          Before cumulative effect of
           accounting change                     $0.26             $0.70
          Cumulative effect of accounting
           change                                (0.02)              -
          Net income                             $0.24             $0.70
 
     Diluted:
          Before cumulative effect of
           accounting change                     $0.26             $0.69
          Cumulative effect of accounting
           change                                (0.02)              -
          Net income                             $0.24             $0.69
 
     Weighted average common shares outstanding:
          Basic                                  9,261             9,172
          Diluted                                9,516             9,373
 
     Total comprehensive income                 $2,266            $6,424
 
       (A)  Related to adoption of SFAS No. 133 "Accounting for Derivative
            Instruments and Hedging Activities".
 
 
                         CLAYTON WILLIAMS ENERGY, INC.
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
                                  (Unaudited)
 
                                      ASSETS
                                               March 31,        December 31,
                                                 2001              2000
 
     CURRENT ASSETS
         Cash and cash equivalents              $1,441            $2,384
         Accounts receivable:
             Oil and gas sales                  14,503            15,534
             Joint interest and other, net       5,851             4,102
             Affiliates                             87               179
         Inventory                               3,506             3,226
         Deferred income taxes                     566               601
         Prepaids and other                        322             2,246
                                                26,276            28,272
     PROPERTY AND EQUIPMENT
         Oil and gas properties,
          successful efforts method            533,344           501,542
         Natural gas gathering and
          processing systems                    13,533            13,302
         Other                                  10,934            10,572
                                               557,811           525,416
         Less accumulated depreciation,
          depletion and amortization          (397,243)         (389,072)
             Property and equipment, net       160,568           136,344
     OTHER ASSETS                                  428               248
                                              $187,272          $164,864
 
                      LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES
         Accounts payable:
             Trade                             $40,109           $33,622
             Oil and gas sales                  11,098             9,201
             Affiliates                          2,858             2,642
         Accrued liabilities and other           1,234             1,463
         Fair value of fixed-price
          contracts                                384               ---
                                                55,683            46,928
 
     LONG-TERM DEBT                             40,100            30,000
 
     NON-CURRENT LIABILITIES
         Deferred income taxes                   3,202             2,159
         Fair value of fixed-price
          contracts                                 46               ---
                                                 3,248             2,159
 
     STOCKHOLDERS' EQUITY:
         Preferred stock, par value $.10 per
          share                                    ---               ---
         Common stock, par value $.10 per
          share                                    926               925
         Additional paid-in capital             72,726            72,529
         Retained earnings                      14,581            12,323
         Accumulated other comprehensive
          income                                     8               ---
                                                88,241            85,777
                                              $187,272          $164,864
 
 
                         CLAYTON WILLIAMS ENERGY, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                  (Unaudited)
 
                                                   Three Months Ended
                                                        March 31,
                                                 2001              2000
 
 
     CASH FLOWS FROM OPERATING ACTIVITIES
         Net income                             $2,258            $6,424
         Adjustments to reconcile net
          income to cash provided by
          operating activities:
              Depreciation, depletion and
               amortization                      8,213             5,057
              Exploration costs                  6,335             1,783
              Gain on sales of property
               and equipment                       (13)               (4)
              Deferred income taxes              1,191               ---
              Stock-based employee
               compensation                       (199)              ---
              Change in fair value of
               fixed-price contracts               190               ---
              Cumulative effect of
               accounting change, net of tax       164               ---
              Other                                111                59
                                                18,250            13,319
 
         Changes in operating working capital:
              Accounts receivable                 (626)           (2,292)
              Accounts payable                   4,815             3,231
              Other                              1,638              (151)
                Net cash provided by
                 operating activities           24,077            14,107
 
     CASH FLOWS FROM INVESTING ACTIVITIES
            Additions to property and
             equipment                         (35,003)          (15,602)
            Proceeds from sales of property
             and equipment                          29                10
            Other                                 (179)                2
               Net cash used in investing
                activities                     (35,153)          (15,590)
 
     CASH FLOWS FROM FINANCING ACTIVITIES
            Proceeds from long-term debt        10,100             1,500
            Proceeds from sale of common
             stock                                  33                17
               Net cash provided by
                financing activities            10,133             1,517
 
     NET INCREASE (DECREASE) IN CASH
      AND CASH EQUIVALENTS                        (943)               34
 
     CASH AND CASH EQUIVALENTS
            Beginning of period                  2,384             1,634
 
            End of period                       $1,441            $1,668
 
 
                         CLAYTON WILLIAMS ENERGY, INC.
 
                       SUMMARY PRODUCTION AND PRICE DATA
                                  (Unaudited)
 
 
                                                    Three Months Ended
                                                         March 31,
                                                  2001               2000
 
      Average Daily Production:
           Oil (Bbls):
                 Austin Chalk (Trend)            5,060              5,682
                 Louisiana                         123                 53
                 New Mexico / West Texas           834                221
                 East / South Texas                 48                 53
                 Other                              24                 24
                       Total                     6,089              6,033
 
           Natural gas liquids (Bbls):
                 Austin Chalk (Trend)              417                457
                 New Mexico / West Texas           125                 19
                 East / South Texas                 36                 19
                       Total                       578                495
 
           Natural Gas (Mcf):
                 Austin Chalk (Trend)            4,566              4,084
                 Cotton Valley Reefs / Sands    13,842              6,175
                 Louisiana                         793                308
                 New Mexico / West Texas         1,852                993
                 East / South Texas              3,436              1,589
                 Other                              11                 51
                       Total                    24,500             13,200
 
 
      Total Production:
           Oil (MBbls)                             548                549
           Natural gas liquids (MBbls)              52                 45
           Natural Gas (MMcf)                    2,205              1,201
           Oil Equivalents (MBoe)                  968                794
 
 
      Average Realized Prices:
           Oil ($/Bbl):
                 Before hedging                 $28.06             $28.11
                 Hedging gain                     0.32                ---
                       Combined                 $28.38             $28.11
 
 
           Natural gas liquids ($/Bbl):         $22.85             $20.98
 
           Gas ($/Mcf):
                 Before hedging                  $6.67              $2.30
                 Hedging gain (loss)              0.71              (0.24)
                       Combined                  $7.38              $2.06
 
 
                         CLAYTON WILLIAMS ENERGY, INC.
 
                            SUPPLEMENTAL INFORMATION
                                  (Unaudited)
 
     Discretionary cash flow and EBITDAX (as defined below) are presented
 herein because of their wide acceptance as financial indicators of a company's
 ability to internally fund exploration and development activities and to
 service or incur debt.  These financial measures should not be considered in
 isolation, or as a substitute for net income, cash flow provided by operating
 activities or other income or cash flow data prepared in accordance with
 generally accepted accounting principles, or as a sole measure of a company's
 profitability or liquidity.
 
 
                                                  Three Months Ended
                                                       March 31,
                                                2001               2000
                                            (In thousands, except per share)
 
            EBITDAX (A):
               Net income                     $2,258             $6,424
               Interest expense                  554                611
               Income taxes                    1,191                ---
               Exploration costs:
                   Abandonments and
                    impairments                6,335              1,783
                   Seismic and other           8,508                976
               Depreciation, depletion
                and amortization               8,213              5,057
               Stock-based employee
                compensation                    (199)               ---
               Change in fair value of
                fixed-price contracts            190                ---
               Cumulative effect of
                accounting change,
                net of tax                       164                ---
               Other non-cash expenses           111                 59
               Gain on sale of property          (13)                (4)
               Other expense (income)            (53)               (46)
                                             $27,259            $14,860
 
               Per common share - diluted      $2.86              $1.59
 
            Discretionary Cash Flow (B):
               Net cash provided by
                operating activities
                (before changes in
                working capital)             $18,250            $13,319
                   Seismic and other           8,508                976
                                             $26,758            $14,295
 
               Per common share - diluted      $2.81              $1.53
 
      (A) EBITDAX represents earnings before interest, income taxes,
          exploration costs, depreciation, depletion and amortization,
          impairment of property and equipment, other non-cash charges and
          other income/expense.
 
      (B) Discretionary cash flow equals cash flows from operating activities,
          before changes in working capital, plus seismic and other exploration
          costs.
 
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SOURCE Clayton Williams Energy, Inc.
    MIDLAND, Texas, April 26 /PRNewswire/ --
 Clayton Williams Energy, Inc.  (Nasdaq: CWEI) reported today net income for
 the first quarter of 2001 of $2.3 million, or $.24 per share, on record
 revenues of $35.9 million, compared to net income of $6.4 million, or $.69 per
 share, on revenues of $20.2 million for the first quarter of 2000.  Earnings
 before interest, income taxes, exploration costs, non-cash charges and other
 income/expense (EBITDAX) for the 2001 period totaled $27.3 million, or
 $2.86 per share, compared to $14.9 million, or $1.59 per share, for the first
 quarter of 2000.  All per share amounts presented are based on diluted shares.
     The Company's reported EBITDAX for the first quarter of 2001 was the
 highest in the Company's history.  The Company also reported record oil and
 gas sales of $33.1 million for the quarter ended March 31, 2001, 73% higher
 than the $19.1 million reported in the first quarter of 2000.  The Company
 credited increased gas production and continued strong product prices for this
 significant achievement.  Gas production for the first quarter of 2001 totaled
 2.2 Bcf, or 24.5 MMcf per day, compared to 1.2 Bcf, or 13.2 MMcf per day, in
 2000.  Oil production for the current quarter totaled 548,000 barrels, or
 6,089 barrels per day, compared to 549,000 barrels, or 6,033 barrels per day
 in 2000.  Natural gas liquids production averaged 578 barrels per day in the
 first quarter of 2001, compared to 495 barrels per day in 2000.
     The Company's average realized gas price increased 259% from $2.06 per Mcf
 in 2000 to $7.38 per Mcf in 2001.  Oil prices remained relatively constant at
 $28.38 per barrel in the 2001 quarter, compared to $28.11 per barrel in 2000.
 Very little of the Company's future oil and gas production is subject to
 fixed-price derivative contracts.
     Despite the high levels of oil and gas sales and cash flow, net income was
 adversely affected by an increase in non-cash exploration costs consisting
 primarily of seismic costs and exploratory dry hole costs.  Exploration costs
 for the first quarter of 2001 totaled $14.8 million, compared to $2.8 million
 for the corresponding quarter in 2000, and included:
 
     -- $8.5 million of seismic costs, of which $7.5 million relates to the
        one-time purchase of up to 3,400 square miles of 3-D seismic data in
        South Louisiana; and
 
     -- $5.9 million in dry hole costs, of which $2.8 million relates to the
        Big Red #1, a Cotton Valley Pinnacle Reef well, and $2.7 million
        relates to 2 gross (1.2 net) wells in the Sweetlake area and 1 gross
        (1.0 net) well in Plaquemines Parish in connection with the Company's
        emerging exploration program in South Louisiana.
 
     The Company plans to host a conference call in May to review the first
 quarter results, discuss the status of the Company's exploration activities,
 and provide financial guidance for the second quarter and year 2001.
 Specifics concerning the date and time of the conference call will be provided
 when available.
     Clayton Williams Energy, Inc. is an independent energy company located in
 Midland, Texas.
     Certain statements contained herein constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995 (the "Reform Act").  Such forward-looking statements involve known and
 unknown risks, uncertainties, and other factors that may cause the actual
 results, performance, or achievements of the Company to be materially
 different from any future results, performance, or achievements expressed or
 implied by such forward-looking statements.  Such factors include, among
 others, the following:  the volatility of oil and gas prices, the Company's
 drilling results, the Company's ability to replace short-lived reserves, the
 availability of capital resources, the reliance upon estimates of proved
 reserves, operating hazards and uninsured risks, competition, government
 regulation, the ability of the Company to implement its business strategy, and
 other factors referenced in the Company's public filings with the Securities
 and Exchange Commission.
 
                         CLAYTON WILLIAMS ENERGY, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                        (In thousands, except per share)
                                  (Unaudited)
 
                                                   Three Months Ended
                                                        March 31,
                                                 2001              2000
     REVENUES
          Oil and gas sales                    $33,096           $19,102
          Natural gas services                   2,851             1,119
               Total revenues                   35,947            20,221
 
     COSTS AND EXPENSES
          Lease operations                       4,984             3,700
          Exploration:
               Abandonments and impairments      6,335             1,783
               Seismic and other                 8,508               976
          Natural gas services                   2,656               869
          Depreciation, depletion and
           amortization                          8,213             5,057
          General and administrative               960               851
          Change in fair value of fixed-
           price contracts                         190                 -
               Total costs and expenses         31,846            13,236
               Operating income                  4,101             6,985
 
     OTHER INCOME (EXPENSE)
          Interest expense                        (554)             (611)
          Gain on sales of property and
           equipment                                13                 4
          Other                                     53                46
               Total other income (expense)       (488)             (561)
 
     Income before income taxes and
      cumulative effect of accounting change     3,613             6,424
 
     Income tax expense                          1,191                 -
 
     Income before cumulative effect of
      accounting change                          2,422             6,424
 
     Cumulative effect of accounting
      change, net of tax (A)                      (164)              ---
 
     Net income                                 $2,258            $6,424
 
     Net income per common share:
     Basic:
          Before cumulative effect of
           accounting change                     $0.26             $0.70
          Cumulative effect of accounting
           change                                (0.02)              -
          Net income                             $0.24             $0.70
 
     Diluted:
          Before cumulative effect of
           accounting change                     $0.26             $0.69
          Cumulative effect of accounting
           change                                (0.02)              -
          Net income                             $0.24             $0.69
 
     Weighted average common shares outstanding:
          Basic                                  9,261             9,172
          Diluted                                9,516             9,373
 
     Total comprehensive income                 $2,266            $6,424
 
       (A)  Related to adoption of SFAS No. 133 "Accounting for Derivative
            Instruments and Hedging Activities".
 
 
                         CLAYTON WILLIAMS ENERGY, INC.
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
                                  (Unaudited)
 
                                      ASSETS
                                               March 31,        December 31,
                                                 2001              2000
 
     CURRENT ASSETS
         Cash and cash equivalents              $1,441            $2,384
         Accounts receivable:
             Oil and gas sales                  14,503            15,534
             Joint interest and other, net       5,851             4,102
             Affiliates                             87               179
         Inventory                               3,506             3,226
         Deferred income taxes                     566               601
         Prepaids and other                        322             2,246
                                                26,276            28,272
     PROPERTY AND EQUIPMENT
         Oil and gas properties,
          successful efforts method            533,344           501,542
         Natural gas gathering and
          processing systems                    13,533            13,302
         Other                                  10,934            10,572
                                               557,811           525,416
         Less accumulated depreciation,
          depletion and amortization          (397,243)         (389,072)
             Property and equipment, net       160,568           136,344
     OTHER ASSETS                                  428               248
                                              $187,272          $164,864
 
                      LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES
         Accounts payable:
             Trade                             $40,109           $33,622
             Oil and gas sales                  11,098             9,201
             Affiliates                          2,858             2,642
         Accrued liabilities and other           1,234             1,463
         Fair value of fixed-price
          contracts                                384               ---
                                                55,683            46,928
 
     LONG-TERM DEBT                             40,100            30,000
 
     NON-CURRENT LIABILITIES
         Deferred income taxes                   3,202             2,159
         Fair value of fixed-price
          contracts                                 46               ---
                                                 3,248             2,159
 
     STOCKHOLDERS' EQUITY:
         Preferred stock, par value $.10 per
          share                                    ---               ---
         Common stock, par value $.10 per
          share                                    926               925
         Additional paid-in capital             72,726            72,529
         Retained earnings                      14,581            12,323
         Accumulated other comprehensive
          income                                     8               ---
                                                88,241            85,777
                                              $187,272          $164,864
 
 
                         CLAYTON WILLIAMS ENERGY, INC.
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (In thousands)
                                  (Unaudited)
 
                                                   Three Months Ended
                                                        March 31,
                                                 2001              2000
 
 
     CASH FLOWS FROM OPERATING ACTIVITIES
         Net income                             $2,258            $6,424
         Adjustments to reconcile net
          income to cash provided by
          operating activities:
              Depreciation, depletion and
               amortization                      8,213             5,057
              Exploration costs                  6,335             1,783
              Gain on sales of property
               and equipment                       (13)               (4)
              Deferred income taxes              1,191               ---
              Stock-based employee
               compensation                       (199)              ---
              Change in fair value of
               fixed-price contracts               190               ---
              Cumulative effect of
               accounting change, net of tax       164               ---
              Other                                111                59
                                                18,250            13,319
 
         Changes in operating working capital:
              Accounts receivable                 (626)           (2,292)
              Accounts payable                   4,815             3,231
              Other                              1,638              (151)
                Net cash provided by
                 operating activities           24,077            14,107
 
     CASH FLOWS FROM INVESTING ACTIVITIES
            Additions to property and
             equipment                         (35,003)          (15,602)
            Proceeds from sales of property
             and equipment                          29                10
            Other                                 (179)                2
               Net cash used in investing
                activities                     (35,153)          (15,590)
 
     CASH FLOWS FROM FINANCING ACTIVITIES
            Proceeds from long-term debt        10,100             1,500
            Proceeds from sale of common
             stock                                  33                17
               Net cash provided by
                financing activities            10,133             1,517
 
     NET INCREASE (DECREASE) IN CASH
      AND CASH EQUIVALENTS                        (943)               34
 
     CASH AND CASH EQUIVALENTS
            Beginning of period                  2,384             1,634
 
            End of period                       $1,441            $1,668
 
 
                         CLAYTON WILLIAMS ENERGY, INC.
 
                       SUMMARY PRODUCTION AND PRICE DATA
                                  (Unaudited)
 
 
                                                    Three Months Ended
                                                         March 31,
                                                  2001               2000
 
      Average Daily Production:
           Oil (Bbls):
                 Austin Chalk (Trend)            5,060              5,682
                 Louisiana                         123                 53
                 New Mexico / West Texas           834                221
                 East / South Texas                 48                 53
                 Other                              24                 24
                       Total                     6,089              6,033
 
           Natural gas liquids (Bbls):
                 Austin Chalk (Trend)              417                457
                 New Mexico / West Texas           125                 19
                 East / South Texas                 36                 19
                       Total                       578                495
 
           Natural Gas (Mcf):
                 Austin Chalk (Trend)            4,566              4,084
                 Cotton Valley Reefs / Sands    13,842              6,175
                 Louisiana                         793                308
                 New Mexico / West Texas         1,852                993
                 East / South Texas              3,436              1,589
                 Other                              11                 51
                       Total                    24,500             13,200
 
 
      Total Production:
           Oil (MBbls)                             548                549
           Natural gas liquids (MBbls)              52                 45
           Natural Gas (MMcf)                    2,205              1,201
           Oil Equivalents (MBoe)                  968                794
 
 
      Average Realized Prices:
           Oil ($/Bbl):
                 Before hedging                 $28.06             $28.11
                 Hedging gain                     0.32                ---
                       Combined                 $28.38             $28.11
 
 
           Natural gas liquids ($/Bbl):         $22.85             $20.98
 
           Gas ($/Mcf):
                 Before hedging                  $6.67              $2.30
                 Hedging gain (loss)              0.71              (0.24)
                       Combined                  $7.38              $2.06
 
 
                         CLAYTON WILLIAMS ENERGY, INC.
 
                            SUPPLEMENTAL INFORMATION
                                  (Unaudited)
 
     Discretionary cash flow and EBITDAX (as defined below) are presented
 herein because of their wide acceptance as financial indicators of a company's
 ability to internally fund exploration and development activities and to
 service or incur debt.  These financial measures should not be considered in
 isolation, or as a substitute for net income, cash flow provided by operating
 activities or other income or cash flow data prepared in accordance with
 generally accepted accounting principles, or as a sole measure of a company's
 profitability or liquidity.
 
 
                                                  Three Months Ended
                                                       March 31,
                                                2001               2000
                                            (In thousands, except per share)
 
            EBITDAX (A):
               Net income                     $2,258             $6,424
               Interest expense                  554                611
               Income taxes                    1,191                ---
               Exploration costs:
                   Abandonments and
                    impairments                6,335              1,783
                   Seismic and other           8,508                976
               Depreciation, depletion
                and amortization               8,213              5,057
               Stock-based employee
                compensation                    (199)               ---
               Change in fair value of
                fixed-price contracts            190                ---
               Cumulative effect of
                accounting change,
                net of tax                       164                ---
               Other non-cash expenses           111                 59
               Gain on sale of property          (13)                (4)
               Other expense (income)            (53)               (46)
                                             $27,259            $14,860
 
               Per common share - diluted      $2.86              $1.59
 
            Discretionary Cash Flow (B):
               Net cash provided by
                operating activities
                (before changes in
                working capital)             $18,250            $13,319
                   Seismic and other           8,508                976
                                             $26,758            $14,295
 
               Per common share - diluted      $2.81              $1.53
 
      (A) EBITDAX represents earnings before interest, income taxes,
          exploration costs, depreciation, depletion and amortization,
          impairment of property and equipment, other non-cash charges and
          other income/expense.
 
      (B) Discretionary cash flow equals cash flows from operating activities,
          before changes in working capital, plus seismic and other exploration
          costs.
 
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 SOURCE  Clayton Williams Energy, Inc.

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