Greka Reports Record Operating Financials for 2000; EBIT Rises 157%, Finding/Reserve Costs $3.14/BOE

Apr 17, 2001, 01:00 ET from Greka Energy Corporation

    NEW YORK, April 17 /PRNewswire/ --
 Greka Energy Corporation (Nasdaq: GRKA), an international, profitable,
 vertically-integrated oil and gas producer, announced record operating
 financials for the one year period ending December 31, 2000, demonstrating
 strong growth in fundamental shareholder value and continued profitable
 growth.
     Comparing the years ending December 31, 1999 and 2000, significant changes
 in the Company's results of operations reflect, respectively, a 68% increase
 in revenue from $29m to $49m, a 111% increase in gross profit from $11m to
 $24m, a 157% increase in operating income from $5m to $13m, a 106% increase in
 EBITDA from $8m to $17m, and a 96% increase in cash flow from $6m to $12m.
 Additionally, the reserves increased 14% from 14mm BOE to 16mm BOE, while the
 PV-10 value increased 144% from $67m to $164m.
     On a basic per share basis, comparing the years ending December 31, 1999
 and 2000, the Company's results show, respectively, a 93% increase in EBITDA
 from $2.03 to $3.91, a 84% increase in cash flow from $1.55 to $2.85, and a
 24% increase in EPS from $0.84 to $1.05.
     The Company reported non-cash expenses and non-recurring charges of $4m
 that related to changes in accounting practices and book losses on asset
 sales.  GREKA reported the attached summary of its operations, in total and by
 segments, for the one year periods ended December 31, 1999 and 2000 and the
 variance between such periods.
     Mr. Randeep S. Grewal, Chairman, CEO & President, stated, "This strong
 operating performance confirms the continued organic growth of the Company
 resulting from the successful implementation of a profit-focused,
 niche-concentrated business strategy by a team of over one hundred employees.
 We established the infrastructure in 1999 and started capitalizing on those
 investments successfully in 2000.  In the years to come, the Company is poised
 to build on this strong foundation and achieve even higher levels of
 productivity and efficiency."
     "Looking back, 1999 was a challenging year for the Company in successfully
 concluding a complex acquisition.  Following that acquisition in March 1999,
 we focused on re-structuring operations and thereafter attained profitable
 results for seven consecutive quarters.  The various charges of $4m in the
 fiscal year 2000 conclude the post-acquisition clean-up," Mr. Grewal further
 stated.
     GREKA will be hosting a conference call on Tuesday, April 17, 2001 at
 4:00 p.m. (E.D.T.) to discuss the Company's 2000 results, current operations,
 and its 2001 outlook.  Interested persons may participate by dialing
 1-800-722-8946 in the U.S. or 1-785-749-9410 internationally.  Participants
 should call 10-15 minutes prior to start time and should use the password
 GR 417.
     Greka is an integrated company focused on exploiting E&P opportunities and
 penetrating new niche markets utilizing proprietary short radius horizontal
 drilling technology.  In addition to owning and operating an asphalt plant in
 California, the Company has oil and gas production, exploration and
 development activities in North America and the Far East, with primary areas
 of activity in California, Louisiana and China.
 
                            GREKA ENERGY CORPORATION
              (000's, except for shares outstanding and per share)
 
     Selected Operating Data                 2000          1999     Increase
     Revenues                              $49,067       $29,138       68%
     Expenses                              $25,200       $17,821       41%
     Gross Profit                          $23,868       $11,317      111%
     EBITDA (before special charges)       $16,673        $8,113      106%
     Cash Flow (before special charges)    $12,138        $6,192       96%
     EBIT (before special charges)         $13,080        $5,089      157%
     Net Income                             $4,457        $3,367       32%
     Net Income (before special charges
      Nonrecurring and non-cash expenses)   $8,184        $3,367      143%
 
     Weighted Avg. Basic Shares          4,262,843     4,002,917        6%
 
     Selected Per Basic Share Data
     Reserves (BOE)                           3.67          3.43        7%
     Reserves PV10                          $38.44        $16.78      129%
     EBITDA                                  $3.91         $2.03       93%
     Cash Flow                               $2.85         $1.55       84%
     EBIT                                    $3.07         $1.27      141%
     EPS (Basic)                             $1.05         $0.84       24%
 
 
      BUSINESS SEGMENTS:
      (000's, except for BOE and per BOE)
 
                                                      E&P
         Year Ended           Integrated     E&P    Interna- Corporate
      December 31, 2000       Operations  Americas   tional  and other   Total
 
     Total Oil and Gas Revenue  $10,229    $14,851   $422    $(9,915)   $15,588
     Refinery Revenue           $33,480        ---    ---        ---    $33,480
     Total Revenue              $43,709    $14,851   $423    $(9,916)   $49,067
     Production Costs            $2,065     $3,993    $84    $(2,065)    $4,077
     Refinery Costs             $28,985        ---    ---    $(7,862)   $21,123
     Gross Profit               $12,659    $10,858   $339        $11    $23,868
     Other Expenses              $1,896     $1,922   $104     $2,777     $6,699
     DD&A Expense                $1,814     $1,556    $77       $145     $3,592
     Net Profit Sharing Plan                                    $495       $495
     Non Cash Expenses                                        $1,882     $1,882
     Non recurring expense                                      $991       $991
     Loss Due to Accounting Change                              $853       $853
     EBITDA (before special
      charges)                  $10,764     $8,936   $235    $(3,261)   $16,673
     EBIT (before special
      charges)                   $8,950     $7,380   $157    $(3,406)   $13,080
     Interest                    $2,646       $320    $27     $1,542     $4,535
     Provision for taxes                                        $362       $362
     Net Income (loss)           $6,304     $7,060   $130    $(6,301)    $4,457
     Net Production (BOE)       517,781    587,729    ---        ---      1,106
     Finding / Reserve
      Replacement Costs ($/BOE)   $2.71      $3.41    ---        ---      $3.14
 
 
                            GREKA ENERGY CORPORATION
                              ($000's PV-10 Value)
 
      PRODUCTION for the
      Year Ended December 31, 2000:
 
                                             Proved Reserved
                               Avg. Daily       Data (Net)
                         Gross  Net MBOE   Oil     Gas                   PV-10
      SEGMENT            Wells Production (MBOE)  (MMCF)    MBOE  %Gas   Value
 
     California:
      Integrated Ops      328    1,376    5,638    2,769    6,142   8%  $37,546
      E&P                 136      679    3,687      964    3,862   5%  $26,623
     Total California     464    2,055    9,325    3,733   10,004  13%  $64,169
 
     Louisiana             28      693    2,000   14,140    4,571  56%  $86,966
     Other U.S.           212      219      687    2,201    1,087  37%  $12,742
 
     Total U.S.           704    2,967   12,012   20,074   15,662  23% $163,877
 
     RELATED PERCENTAGES
 
     California:
      Integrated Ops      47%      46%      47%      14%      39%          23%
      E&P                 19%      23%      31%       5%      25%          16%
     Total California     66%      69%      78%      19%      64%          39%
 
     Louisiana             4%      23%      17%      70%      29%          53%
     Other U.S.           30%       7%       6%      11%       7%           8%
 
 
                   Safe Harbor for Forward Looking Statements
     Except for historical information contained herein, the statements in this
 Release are forward-looking statements that are made pursuant to the safe
 harbor provision of the Private Securities Litigation Reform Act of 1995.
 Forward-looking statements involve known and unknown risks and uncertainties
 which may cause the Company's actual results in future periods to differ
 materially from results expressed or implied by forward-looking statements.
 These risks and uncertainties include, among other things, volatility of oil
 prices, product demand, market competition, risks inherent in the Company's
 international operations, imprecision of reserve estimates, the availability
 of additional oil and gas assets for acquisition on commercially reasonable
 terms, and the Company's ability to replace and exploit its existing oil and
 gas reserves.  These and other risks are described in the Company's Annual
 Report on Form 10-K and in the Company's other filings with the Securities and
 Exchange Commission.
 
      For more information, please contact:  Jim Blackman
                                             jhb@grekaenergy.com
                                             (713) 266-7993
 
 

SOURCE Greka Energy Corporation
    NEW YORK, April 17 /PRNewswire/ --
 Greka Energy Corporation (Nasdaq: GRKA), an international, profitable,
 vertically-integrated oil and gas producer, announced record operating
 financials for the one year period ending December 31, 2000, demonstrating
 strong growth in fundamental shareholder value and continued profitable
 growth.
     Comparing the years ending December 31, 1999 and 2000, significant changes
 in the Company's results of operations reflect, respectively, a 68% increase
 in revenue from $29m to $49m, a 111% increase in gross profit from $11m to
 $24m, a 157% increase in operating income from $5m to $13m, a 106% increase in
 EBITDA from $8m to $17m, and a 96% increase in cash flow from $6m to $12m.
 Additionally, the reserves increased 14% from 14mm BOE to 16mm BOE, while the
 PV-10 value increased 144% from $67m to $164m.
     On a basic per share basis, comparing the years ending December 31, 1999
 and 2000, the Company's results show, respectively, a 93% increase in EBITDA
 from $2.03 to $3.91, a 84% increase in cash flow from $1.55 to $2.85, and a
 24% increase in EPS from $0.84 to $1.05.
     The Company reported non-cash expenses and non-recurring charges of $4m
 that related to changes in accounting practices and book losses on asset
 sales.  GREKA reported the attached summary of its operations, in total and by
 segments, for the one year periods ended December 31, 1999 and 2000 and the
 variance between such periods.
     Mr. Randeep S. Grewal, Chairman, CEO & President, stated, "This strong
 operating performance confirms the continued organic growth of the Company
 resulting from the successful implementation of a profit-focused,
 niche-concentrated business strategy by a team of over one hundred employees.
 We established the infrastructure in 1999 and started capitalizing on those
 investments successfully in 2000.  In the years to come, the Company is poised
 to build on this strong foundation and achieve even higher levels of
 productivity and efficiency."
     "Looking back, 1999 was a challenging year for the Company in successfully
 concluding a complex acquisition.  Following that acquisition in March 1999,
 we focused on re-structuring operations and thereafter attained profitable
 results for seven consecutive quarters.  The various charges of $4m in the
 fiscal year 2000 conclude the post-acquisition clean-up," Mr. Grewal further
 stated.
     GREKA will be hosting a conference call on Tuesday, April 17, 2001 at
 4:00 p.m. (E.D.T.) to discuss the Company's 2000 results, current operations,
 and its 2001 outlook.  Interested persons may participate by dialing
 1-800-722-8946 in the U.S. or 1-785-749-9410 internationally.  Participants
 should call 10-15 minutes prior to start time and should use the password
 GR 417.
     Greka is an integrated company focused on exploiting E&P opportunities and
 penetrating new niche markets utilizing proprietary short radius horizontal
 drilling technology.  In addition to owning and operating an asphalt plant in
 California, the Company has oil and gas production, exploration and
 development activities in North America and the Far East, with primary areas
 of activity in California, Louisiana and China.
 
                            GREKA ENERGY CORPORATION
              (000's, except for shares outstanding and per share)
 
     Selected Operating Data                 2000          1999     Increase
     Revenues                              $49,067       $29,138       68%
     Expenses                              $25,200       $17,821       41%
     Gross Profit                          $23,868       $11,317      111%
     EBITDA (before special charges)       $16,673        $8,113      106%
     Cash Flow (before special charges)    $12,138        $6,192       96%
     EBIT (before special charges)         $13,080        $5,089      157%
     Net Income                             $4,457        $3,367       32%
     Net Income (before special charges
      Nonrecurring and non-cash expenses)   $8,184        $3,367      143%
 
     Weighted Avg. Basic Shares          4,262,843     4,002,917        6%
 
     Selected Per Basic Share Data
     Reserves (BOE)                           3.67          3.43        7%
     Reserves PV10                          $38.44        $16.78      129%
     EBITDA                                  $3.91         $2.03       93%
     Cash Flow                               $2.85         $1.55       84%
     EBIT                                    $3.07         $1.27      141%
     EPS (Basic)                             $1.05         $0.84       24%
 
 
      BUSINESS SEGMENTS:
      (000's, except for BOE and per BOE)
 
                                                      E&P
         Year Ended           Integrated     E&P    Interna- Corporate
      December 31, 2000       Operations  Americas   tional  and other   Total
 
     Total Oil and Gas Revenue  $10,229    $14,851   $422    $(9,915)   $15,588
     Refinery Revenue           $33,480        ---    ---        ---    $33,480
     Total Revenue              $43,709    $14,851   $423    $(9,916)   $49,067
     Production Costs            $2,065     $3,993    $84    $(2,065)    $4,077
     Refinery Costs             $28,985        ---    ---    $(7,862)   $21,123
     Gross Profit               $12,659    $10,858   $339        $11    $23,868
     Other Expenses              $1,896     $1,922   $104     $2,777     $6,699
     DD&A Expense                $1,814     $1,556    $77       $145     $3,592
     Net Profit Sharing Plan                                    $495       $495
     Non Cash Expenses                                        $1,882     $1,882
     Non recurring expense                                      $991       $991
     Loss Due to Accounting Change                              $853       $853
     EBITDA (before special
      charges)                  $10,764     $8,936   $235    $(3,261)   $16,673
     EBIT (before special
      charges)                   $8,950     $7,380   $157    $(3,406)   $13,080
     Interest                    $2,646       $320    $27     $1,542     $4,535
     Provision for taxes                                        $362       $362
     Net Income (loss)           $6,304     $7,060   $130    $(6,301)    $4,457
     Net Production (BOE)       517,781    587,729    ---        ---      1,106
     Finding / Reserve
      Replacement Costs ($/BOE)   $2.71      $3.41    ---        ---      $3.14
 
 
                            GREKA ENERGY CORPORATION
                              ($000's PV-10 Value)
 
      PRODUCTION for the
      Year Ended December 31, 2000:
 
                                             Proved Reserved
                               Avg. Daily       Data (Net)
                         Gross  Net MBOE   Oil     Gas                   PV-10
      SEGMENT            Wells Production (MBOE)  (MMCF)    MBOE  %Gas   Value
 
     California:
      Integrated Ops      328    1,376    5,638    2,769    6,142   8%  $37,546
      E&P                 136      679    3,687      964    3,862   5%  $26,623
     Total California     464    2,055    9,325    3,733   10,004  13%  $64,169
 
     Louisiana             28      693    2,000   14,140    4,571  56%  $86,966
     Other U.S.           212      219      687    2,201    1,087  37%  $12,742
 
     Total U.S.           704    2,967   12,012   20,074   15,662  23% $163,877
 
     RELATED PERCENTAGES
 
     California:
      Integrated Ops      47%      46%      47%      14%      39%          23%
      E&P                 19%      23%      31%       5%      25%          16%
     Total California     66%      69%      78%      19%      64%          39%
 
     Louisiana             4%      23%      17%      70%      29%          53%
     Other U.S.           30%       7%       6%      11%       7%           8%
 
 
                   Safe Harbor for Forward Looking Statements
     Except for historical information contained herein, the statements in this
 Release are forward-looking statements that are made pursuant to the safe
 harbor provision of the Private Securities Litigation Reform Act of 1995.
 Forward-looking statements involve known and unknown risks and uncertainties
 which may cause the Company's actual results in future periods to differ
 materially from results expressed or implied by forward-looking statements.
 These risks and uncertainties include, among other things, volatility of oil
 prices, product demand, market competition, risks inherent in the Company's
 international operations, imprecision of reserve estimates, the availability
 of additional oil and gas assets for acquisition on commercially reasonable
 terms, and the Company's ability to replace and exploit its existing oil and
 gas reserves.  These and other risks are described in the Company's Annual
 Report on Form 10-K and in the Company's other filings with the Securities and
 Exchange Commission.
 
      For more information, please contact:  Jim Blackman
                                             jhb@grekaenergy.com
                                             (713) 266-7993
 
 SOURCE  Greka Energy Corporation