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Bois D'Arc Energy, Inc. Reports Second Quarter 2008 Financial and Operating Results

Posted on: Monday, 4 August 2008, 18:00 CDT

HOUSTON, Aug. 4 /PRNewswire-FirstCall/ -- Bois d'Arc Energy, Inc. ("Bois d'Arc" or the "Company") today reported financial and operating results for the quarter and six months ended June 30, 2008.

Second Quarter and Six Months 2008 Financial Results

Bois d'Arc reported net income of $39.8 million, or 59¢ per diluted share, for the three months ended June 30, 2008 as compared to 2007's second quarter net income of $17.4 million, or 26¢ per diluted share. The increase in profits in the quarter was driven primarily by strong oil and gas prices. Bois d'Arc's average realized oil price in 2008's second quarter of $124.62 per barrel increased 88% over 2007's second quarter average oil price of $66.28 per barrel. The Company's average realized natural gas price of $11.52 per Mcf in 2008's second quarter was 49% higher than the $7.74 per Mcf realized in 2007's second quarter. Production during the second quarter of 2008 of 10.5 billion cubic feet equivalent of natural gas ("Bcfe") was comparable to 10.7 Bcfe produced in the second quarter of 2007. The strong oil and gas prices increased Bois d'Arc's second quarter oil and gas sales by 63% to $148.0 million from $91.0 million in 2007's second quarter. The higher revenues also drove cash flow higher in the quarter. Operating cash flow (before changes in working capital accounts) of $109.0 million in the second quarter was 49% higher than 2007's second quarter cash flow of $72.9 million. EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses increased 60% to $124.6 million over 2007's second quarter EBITDAX of $77.9 million.

For the six months ended June 30, 2008, Bois d'Arc reported net income of $77.9 million or $1.15 per diluted share as compared to net income of $29.3 million ($0.44 per diluted share) for the six months ended June 30, 2007. Oil and gas sales for the first six months of 2008 were $261.3 million as compared to $167.2 million for the six months ended June 30, 2007. Production in the first six months of 2008 totaled 20.9 Bcfe, as compared to the 20.6 Bcfe produced during the same period in 2007. Prices realized by the Company for its production during the six months ended June 30, 2008 averaged $10.15 per Mcf of natural gas and $113.72 per barrel of oil as compared to $7.43 per Mcf of natural gas and $62.55 per barrel of oil in the same period in 2007. Operating cash flow (before changes in working capital accounts) for the six months ended June 30, 2008, was $187.7 million as compared to $128.0 million in the same period in 2007. EBITDAX totaled $220.9 million in the first six months of 2008 as compared to $139.5 million in the first six months of 2007.

The financial results for the three months and six months end June 30, 2008 include $1.9 million of costs related to the pending merger with Stone Energy Corporation ("Stone"), which are included in general and administrative expenses. Under the terms of the merger agreement, the Bois d'Arc Energy shareholders will receive $13.65 in cash and 0.165 shares of Stone common stock for each share of Bois d'Arc Energy. Completion of the transaction is subject to approval by the Bois d'Arc Energy and Stone stockholders. Bois d'Arc has scheduled a special meeting of its stockholders on August 27, 2008, at 11:00 a.m. Houston time, to consider and vote on the proposal to approve the proposed merger with Stone.

2008 Year to Date Drilling Results

Bois d'Arc has drilled six (5.6 net) successful wells out of a total of nine (8.3 net) drilled so far in 2008. Three of the successful wells were reported on earlier and include the OCS-G 24922 #1 at Ship Shoal block 97, the OCS-G 24926 #1 at Ship Shoal block 120 which tested the "Perch" prospect, and the OCS-G 24977 #1 at South Pelto block 21 which tested the "Chinook" prospect. The Ship Shoal block 97 well began producing in February at a rate of 10.3 MMcfe per day. The "Perch" well was put on production in February at a rate of 0.4 MMcfe per day out of its lowest zone. The "Chinook" well is being completed and expected to begin producing in late August. Bois d'Arc's OCS-G27155 #1 at South Timbalier block 81 which was drilled last year to test the ultra deep "Butch Cassidy" prospect was recently placed on production at a rate of 13.9 MMcfe per day with flowing tubing pressure of 11,400 pounds per square inch.

The other successful wells drilled in 2008 include the SL 4708 #1 and the SL 4708 #2 wells at Main Pass block 21 which are currently in the process of being tied into existing field production facilities. First production from the Main Pass wells is expected in late August. Bois d'Arc also drilled the OCS-G 00063 #W3 at Ship Shoal block 112 to test its "Stump knocker" prospect. This exploratory well was drilled to a depth of 13,420 feet and encountered 185 feet of pay in multiple objectives. First production for the well is expected in late November. Bois d'Arc has a 100% working interest in this well.

The unsuccessful wells in 2008 include a 16,500 foot exploratory well drilled to test the "Kelsie" prospect at Ship Shoal block 95. This well encountered significant drilling problems and the initial well and a sidetrack attempt were ultimately abandoned before the target sand was reached. The other two unsuccessful wells include a 16,655 foot exploratory well drilled to test a prospect at Ship Shoal block 116 and an unsuccessful sidetrack well at Ship Shoal block 98.

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.

Bois d'Arc Energy is a growing independent exploration company engaged in the discovery and production of oil and natural gas in the Gulf of Mexico. The Company's stock is traded on the New York Stock Exchange under the symbol "BDE".

BOIS d'ARC ENERGY, INC. CONSOLIDATED OPERATING RESULTS (In thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Oil and gas sales $ 147,990 $ 91,046 $ 261,256 $ 167,228 Operating expenses: Oil and gas operating 20,241 12,556 35,679 25,584 Exploration 33,885 17,988 40,302 28,723 Depreciation, depletion and amortization 27,537 28,779 55,905 57,294 General and administrative, net 4,667 2,574 7,842 6,026 Total operating expenses 86,330 61,897 139,728 117,627 Income from operations 61,660 29,149 121,528 49,601 Other income (expenses): Interest income 75 138 158 243 Other income 115 182 250 274 Interest expense (935) (2,431) (2,298) (4,595) Total other expenses (745) (2,111) (1,890) (4,078) Income before income taxes 60,915 27,038 119,638 45,523 Provision for income taxes (21,147) (9,607) (41,721) (16,219) Net income $ 39,768 $ 17,431 $ 77,917 $ 29,304 Net income per share: Basic $ 0.60 $ 0.27 $ 1.18 $ 0.45 Diluted $ 0.59 $ 0.26 $ 1.15 $ 0.44 Weighted average common and common stock equivalent shares outstanding: Basic 65,825 65,151 65,805 65,139 Diluted 67,762 67,091 67,675 66,955 BOIS d'ARC ENERGY, INC. CONSOLIDATED OPERATING RESULTS (In thousands) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Cash flow from operations: Net cash provided by operating activities $ 112,676 $ 78,978 $ 185,488 $ 110,435 Excess tax benefit from stock-based compensation 420 49 1,188 49 Decrease in accounts receivable 8,152 4,155 14,608 4,566 Increase (decrease) in prepaid expenses (2,995) 467 (1,761) 2,621 Decrease (increase) in accounts payable and accrued expenses (9,303) (10,719) (11,835) 10,305 Cash flow from operations $ 108,950 $ 72,930 $ 187,688 $ 127,976 EBITDAX: Net income $ 39,768 $ 17,431 $ 77,917 $ 29,304 Interest expense 935 2,431 2,298 4,595 Income tax expense 21,147 9,607 41,721 16,219 Depreciation, depletion and amortization 27,537 28,779 55,905 57,294 Stock-based compensation 1,376 1,712 2,750 3,370 Exploration expense 33,885 17,988 40,302 28,723 EBITDAX $ 124,648 $ 77,948 $ 220,893 $ 139,505 As of June 30, 2008 2007 Balance Sheet Data: Cash and cash equivalents $ 25,374 $ 21,715 Other current assets 57,720 59,008 Property and equipment, net 922,672 869,468 Other 574 662 Total assets $ 1,006,340 $ 950,853 Current liabilities $ 78,971 $ 61,847 Long-term debt - 125,000 Deferred income taxes 198,034 164,233 Reserve for future abandonment costs 46,112 50,131 Stockholders' equity 683,223 549,642 Total liabilities and stockholders' equity $ 1,006,340 $ 950,853 BOIS d'ARC ENERGY, INC. CONSOLIDATED OPERATING RESULTS (In thousands, except per unit amounts) Three Months Ended June 30, 2008 2007 Oil production (thousand barrels) 497 417 Gas production (million cubic feet - Mmcf) 7,467 8,194 Total production (Mmcfe) 10,451 10,696 Oil sales $ 61,974 $ 27,638 Gas sales 86,016 63,408 Total oil and gas sales $ 147,990 $ 91,046 Average oil price (per barrel) $ 124.62 $ 66.28 Average gas price (per thousand cubic feet - Mcf) $ 11.52 $ 7.74 Average price (per Mcf equivalent) $ 14.16 $ 8.51 Lifting cost(1) $ 20,241 $ 12,556 Lifting cost (per Mcf equivalent) $ 1.94 $ 1.17 Oil and gas capital expenditures: Leasehold costs $ 7,155 $ (413) Exploration drilling 30,071 35,342 Development drilling 7,903 14,069 Other development costs 17,879 10,413 Total $ 63,008 $ 59,411 (1) Includes production taxes of $866 and $594 for the three months ended June 30, 2008 and 2007, respectively. Six Months Ended June 30, 2008 2007 Oil production (thousand barrels) 924 785 Gas production (million cubic feet - Mmcf) 15,394 15,895 Total production (Mmcfe) 20,937 20,605 Oil sales $ 105,065 $ 49,106 Gas sales 156,191 118,122 Total oil and gas sales $ 261,256 $ 167,228 Average oil price (per barrel) $ 113.72 $ 62.55 Average gas price (per thousand cubic feet - Mcf) $ 10.15 $ 7.43 Average price (per Mcf equivalent) $ 12.48 $ 8.12 Lifting cost(2) $ 35,679 $ 25,584 Lifting cost (per Mcf equivalent) $ 1.70 $ 1.24 Oil and gas capital expenditures: Leasehold costs $ 15,773 $ 350 Exploration drilling 57,170 65,379 Development drilling 17,109 22,360 Other development costs 31,271 34,075 Total $ 121,323 $ 122,164 (2) Includes production taxes of $1,690 and $1,050 for the six months ended June 30, 2008 and 2007, respectively.

Bois d'Arc Energy, Inc.

CONTACT: Roland O. Burns, Chief Financial Officer of Bois d'Arc Energy,Inc., +1-972-668-8811

Web site: http://www.boisdarcenergy.com/

Source: PRNewswire-FirstCall

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