Patina Net Income Increases 143%

Apr 30, 2001, 01:00 ET from Patina Oil & Gas Corporation

    DENVER, April 30 /PRNewswire/ -- PATINA OIL & GAS CORPORATION (NYSE:   POG)
 today reported results for the first quarter of 2001.  Revenues rose to
 $64.5 million as cash flow jumped to $40.6 million, increases of more than
 100% from the prior year period.  Net income reached $22.4 million or
 $1.14 per share ($1.00 fully diluted), a 143% increase.  Cash flow per share
 jumped to $2.07 ($1.81 fully diluted).  On a trailing twelve months basis, net
 income totaled $3.42 per share ($2.88 fully diluted) and cash flow reached
 $6.80 per share ($5.65 fully diluted).  The exceptional results reflect
 continued increases in Wattenberg production, the benefits of the Elysium
 acquisition and strong oil and gas prices.
     Average daily production in the quarter rose to 152.7 MMcfe, a 29%
 increase from one year ago.  Production, which is over 70% natural gas on an
 Mcf equivalent basis, was comprised of 7,421 barrels of oil and 108.2 MMcf of
 gas per day.  Wellhead prices, after adjustments for hedging, averaged
 $27.44 per barrel and $4.65 per Mcf, increases of 27% and 70%, respectively,
 from the 2000 period.
     During the quarter, the Company incurred $23.2 million of capital
 expenditures and repurchased $16.7 million of common stock.  The shares were
 repurchased at an average price of $20.69 a share.  An option to repurchase an
 additional 758,000 shares at $20.50 a share was obtained as part of the
 initial purchase.  The option was exercised earlier today.  Development
 expenditures of $17.8 million included the drilling or deepening of 19 wells
 to the J-Sand, performing 99 Codell refracs and two Codell recompletions in
 the Wattenberg Field.  Also, approximately $5.4 million was spent acquiring
 acreage associated with three Rocky Mountain grass roots projects.  In late
 March, the sale of Elysium's Lake Washington properties in Louisiana realized
 $30.5 million, permitting the joint venture to repay all but $12.0 million of
 its loan from Patina.  At March 31, 2001, the Company's debt totaled
 $138.0 million, a $39.0 million reduction since year-end.  Debt fell due to
 strong internal cash flow and the sale of the Lake Washington properties.
 Debt should fall below $100.0 million by June 30th.  With free cash flow,
 defined as cash flow less capital expenditures, running at an $8.0 million a
 month rate, debt should continue to decline in the absence of acquisitions or
 sizeable equity repurchases.
     Announcing the results, Thomas J. Edelman, Patina's Chairman said, "First
 quarter results were by far the strongest in our history.  Our capital program
 continues to yield exceptional returns.  Given current prices and our large
 inventory of development projects, we expect to report outstanding results
 throughout the year.  Our Elysium joint venture should provide additional
 opportunities for growth beginning in the second half.  Our grass roots
 projects are coming together well and could begin to contribute in 2002.
 Finally, our sizable cash flow permits us to further reduce debt while
 repurchasing our stock.  It also positions us to make acquisitions or to take
 on large-scale development projects.  While our stock price has risen
 substantially over the past twelve months, it should continue to benefit from
 exceptional performance, strong commodity prices and renewed interest in the
 oil and gas sector."
     The Company plans to host a conference call on Tuesday, May 1, 2001
 beginning at 3:00 p.m. (EDT) to discuss first quarter results.  To
 participate, please dial (800) 289-0437.  A replay of the call will be
 available on Tuesday, May 1, 2001 after 5:00 p.m. (EDT) by dialing
 (888) 203-1112.  The access code for the replay is 700056.
     A simultaneous webcast of the discussion will also be available by
 accessing the Patina Oil & Gas Corporation website at www.patinaoil.com and
 clicking on "Live audio," which is located on the left side of the web page.
 
     This release contains certain forward-looking statements within the
 meaning of the Federal securities laws.  Such statements are based on
 management's current expectations, estimates and projections, which are
 subject to a wide range of uncertainties and business risks.  Factors that
 could cause actual results to differ from those anticipated are discussed in
 the Company's periodic filings with the Securities and Exchange Commission,
 including its Annual Report on Form 10-K for the year ended December 31, 2000.
 
     Patina is an independent oil company engaged in the acquisition,
 development, exploitation and production of oil and natural gas primarily in
 Colorado's Wattenberg Field.
 
 
                            PATINA OIL & GAS CORPORATION
 
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       (in thousands, except per share data)
 
 
                                            Three Months Ended March 31,
                                         %
                                      Change           2001          2000
     Revenues
      Oil and gas sales                              $63,566       $31,274
      Other                                              886           302
                                        104%          64,452        31,576
 
     Expenses
      Direct operating                                11,902         5,583
      Exploration                                        103            19
 
     Gross margin                       102%          52,447        25,974
 
      General and administrative                       2,566         1,639
      Interest and other                               3,050         2,561
      Depletion, depreciation and
       amortization                                   11,901        10,281
 
     Pre-tax income                     204%          34,930        11,493
 
     Provision for income taxes
      Current                                          6,287            --
      Deferred                                         6,288         2,299
                                                      12,575         2,299
 
     Net income                         143%          22,355         9,194
 
     Net income per share
      Basic                                            $1.14         $0.47
      Diluted                                          $1.00         $0.40
 
     Weighted average shares
      outstanding
      Basic                                           19,605        16,265
      Diluted                                         22,458        21,758
 
     Summary Balance Sheet
     Total assets                        25%        $409,025      $327,034
     Total debt                           3%        $138,000      $134,000
     Stockholders' equity                16%        $185,573      $159,979
 
     Summary Operational Data
     Oil production (MBbl)               59%             668           419
     Gas production (MMcf)               20%           9,736         8,145
     Total MMcfe                         29%          13,743        10,660
     Average oil price (per Bbl)         27%          $27.44        $21.53
     Average gas price (per Mcf)         70%           $4.65         $2.73
     Average price per Mcfe              58%           $4.63         $2.93
 
     Summary Cash Flow
     Net income                                      $22,355        $9,194
     Preferred dividends                                  --        (1,566)
     Depletion, depreciation and
      amortization                                    11,901        10,281
     Exploration and other                               103           165
     Deferred tax provision                            6,288         2,299
     Cash flow                          100%         $40,647       $20,373
 
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SOURCE Patina Oil & Gas Corporation
    DENVER, April 30 /PRNewswire/ -- PATINA OIL & GAS CORPORATION (NYSE:   POG)
 today reported results for the first quarter of 2001.  Revenues rose to
 $64.5 million as cash flow jumped to $40.6 million, increases of more than
 100% from the prior year period.  Net income reached $22.4 million or
 $1.14 per share ($1.00 fully diluted), a 143% increase.  Cash flow per share
 jumped to $2.07 ($1.81 fully diluted).  On a trailing twelve months basis, net
 income totaled $3.42 per share ($2.88 fully diluted) and cash flow reached
 $6.80 per share ($5.65 fully diluted).  The exceptional results reflect
 continued increases in Wattenberg production, the benefits of the Elysium
 acquisition and strong oil and gas prices.
     Average daily production in the quarter rose to 152.7 MMcfe, a 29%
 increase from one year ago.  Production, which is over 70% natural gas on an
 Mcf equivalent basis, was comprised of 7,421 barrels of oil and 108.2 MMcf of
 gas per day.  Wellhead prices, after adjustments for hedging, averaged
 $27.44 per barrel and $4.65 per Mcf, increases of 27% and 70%, respectively,
 from the 2000 period.
     During the quarter, the Company incurred $23.2 million of capital
 expenditures and repurchased $16.7 million of common stock.  The shares were
 repurchased at an average price of $20.69 a share.  An option to repurchase an
 additional 758,000 shares at $20.50 a share was obtained as part of the
 initial purchase.  The option was exercised earlier today.  Development
 expenditures of $17.8 million included the drilling or deepening of 19 wells
 to the J-Sand, performing 99 Codell refracs and two Codell recompletions in
 the Wattenberg Field.  Also, approximately $5.4 million was spent acquiring
 acreage associated with three Rocky Mountain grass roots projects.  In late
 March, the sale of Elysium's Lake Washington properties in Louisiana realized
 $30.5 million, permitting the joint venture to repay all but $12.0 million of
 its loan from Patina.  At March 31, 2001, the Company's debt totaled
 $138.0 million, a $39.0 million reduction since year-end.  Debt fell due to
 strong internal cash flow and the sale of the Lake Washington properties.
 Debt should fall below $100.0 million by June 30th.  With free cash flow,
 defined as cash flow less capital expenditures, running at an $8.0 million a
 month rate, debt should continue to decline in the absence of acquisitions or
 sizeable equity repurchases.
     Announcing the results, Thomas J. Edelman, Patina's Chairman said, "First
 quarter results were by far the strongest in our history.  Our capital program
 continues to yield exceptional returns.  Given current prices and our large
 inventory of development projects, we expect to report outstanding results
 throughout the year.  Our Elysium joint venture should provide additional
 opportunities for growth beginning in the second half.  Our grass roots
 projects are coming together well and could begin to contribute in 2002.
 Finally, our sizable cash flow permits us to further reduce debt while
 repurchasing our stock.  It also positions us to make acquisitions or to take
 on large-scale development projects.  While our stock price has risen
 substantially over the past twelve months, it should continue to benefit from
 exceptional performance, strong commodity prices and renewed interest in the
 oil and gas sector."
     The Company plans to host a conference call on Tuesday, May 1, 2001
 beginning at 3:00 p.m. (EDT) to discuss first quarter results.  To
 participate, please dial (800) 289-0437.  A replay of the call will be
 available on Tuesday, May 1, 2001 after 5:00 p.m. (EDT) by dialing
 (888) 203-1112.  The access code for the replay is 700056.
     A simultaneous webcast of the discussion will also be available by
 accessing the Patina Oil & Gas Corporation website at www.patinaoil.com and
 clicking on "Live audio," which is located on the left side of the web page.
 
     This release contains certain forward-looking statements within the
 meaning of the Federal securities laws.  Such statements are based on
 management's current expectations, estimates and projections, which are
 subject to a wide range of uncertainties and business risks.  Factors that
 could cause actual results to differ from those anticipated are discussed in
 the Company's periodic filings with the Securities and Exchange Commission,
 including its Annual Report on Form 10-K for the year ended December 31, 2000.
 
     Patina is an independent oil company engaged in the acquisition,
 development, exploitation and production of oil and natural gas primarily in
 Colorado's Wattenberg Field.
 
 
                            PATINA OIL & GAS CORPORATION
 
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                       (in thousands, except per share data)
 
 
                                            Three Months Ended March 31,
                                         %
                                      Change           2001          2000
     Revenues
      Oil and gas sales                              $63,566       $31,274
      Other                                              886           302
                                        104%          64,452        31,576
 
     Expenses
      Direct operating                                11,902         5,583
      Exploration                                        103            19
 
     Gross margin                       102%          52,447        25,974
 
      General and administrative                       2,566         1,639
      Interest and other                               3,050         2,561
      Depletion, depreciation and
       amortization                                   11,901        10,281
 
     Pre-tax income                     204%          34,930        11,493
 
     Provision for income taxes
      Current                                          6,287            --
      Deferred                                         6,288         2,299
                                                      12,575         2,299
 
     Net income                         143%          22,355         9,194
 
     Net income per share
      Basic                                            $1.14         $0.47
      Diluted                                          $1.00         $0.40
 
     Weighted average shares
      outstanding
      Basic                                           19,605        16,265
      Diluted                                         22,458        21,758
 
     Summary Balance Sheet
     Total assets                        25%        $409,025      $327,034
     Total debt                           3%        $138,000      $134,000
     Stockholders' equity                16%        $185,573      $159,979
 
     Summary Operational Data
     Oil production (MBbl)               59%             668           419
     Gas production (MMcf)               20%           9,736         8,145
     Total MMcfe                         29%          13,743        10,660
     Average oil price (per Bbl)         27%          $27.44        $21.53
     Average gas price (per Mcf)         70%           $4.65         $2.73
     Average price per Mcfe              58%           $4.63         $2.93
 
     Summary Cash Flow
     Net income                                      $22,355        $9,194
     Preferred dividends                                  --        (1,566)
     Depletion, depreciation and
      amortization                                    11,901        10,281
     Exploration and other                               103           165
     Deferred tax provision                            6,288         2,299
     Cash flow                          100%         $40,647       $20,373
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X16867533
 
 SOURCE  Patina Oil & Gas Corporation