Quest Resource Announces First Quarter 2006 Results
14 Mai 2006 - 9:26PM
PR Newswire (US)
OKLAHOMA CITY, May 14 /PRNewswire-FirstCall/ -- Quest Resource
Corporation (NASDAQ:QRCP), the largest operating company in the
Cherokee Basin, provided today an update on its financial results
for the quarter-ended March 31, 2006. The Company provided selected
financial and operating data below in a comparative format for the
quarters ended March 31, 2006 and 2005. SELECT FINANCIAL AND
OPERATING DATA For The Quarters Ended March 31, 2006 and 2005
(Dollars in thousands, except per share data) Quarters Ended March
31 2006 2005 (unaudited) Total Revenue $ 12,120 $ 12,051 Net Income
(Loss) 8,717 (1,098) Net Income (Loss) Per Share Basic 0.39 (0.19)
Net Income (Loss) Per Share Diluted 0.39 (0.19) Operating Income
(Loss) (2,098) 3,647 Operating Income (Loss) Per Share Diluted
(0.09) 0.64 EBITDA1 3,801 7,001 EBITDA Per Share Diluted(1) $0.17
$1.23 Weighted Average Shares Outstanding Basic 22,072,383
5,699,878 Weighted Average Shares Outstanding Diluted 22,140,654
5,699,878 Net Sales Volumes (MMcfe) 2,498 2,181 Average Price
Received per Mcfe (including hedges) $4.20 $5.22 Wells Drilled 183
25 Wells Recompleted 39 56 Wells Connected 151 151 Pipeline Miles
121 68 Well Completion % 98% 98% Total Expenditures(2) $49,888
$14,158 (1) - A reconciliation of Net Income to EBITDA follows this
news release. (2) - Capital expenditures represent cash
transactions Management Comments David Grose, chief financial
officer of Quest Resource said, "We've been very active drilling,
recompleting and connecting wells in the first quarter and that is
reflected in our results. Our net sales volumes for the first
quarter of 2006 increased 15% to 2,498 MMcfe as compared to 2,181
MMcfe for the first quarter of 2005. This is an average of 27.8
MMcfe per day for the first quarter of 2006 as compared to 24.2
MMcfe per day for the first quarter of 2005. We are continuing this
momentum into the second quarter and our net sales volumes for the
first 40 days of the second quarter have averaged 31.0 MMcfe per
day. Although our financial results have been somewhat hampered by
our existing hedge positions, the impact of those contracts will
diminish as they expire and our production base grows. We expect to
continue our active drilling program for the remainder of the year
and we believe the combination of growing production and higher
realized prices will yield improved financial results in the coming
quarters Conference Call Quest will host a conference call to
discuss 2006 first quarter operating and financial results on
Monday, May 15, 2006 at 9:00 a.m. Eastern time. There will be a
question and answer period following the presentation. Call:
866-322-9730 (US/Canada) and 706-679-6054 (International) Passcode
8601001 Internet: Live and rebroadcast over the Internet: simply
log on to http://www.qrcp.net/ Replay: Available through May 17,
2006 at 800-642-1687 (US/Canada) and 706-645-9291 (International)
using passcode 8601001 and at http://www.qrcp.net/ About Quest
Resource Corporation Quest Resource is the largest producer of
natural gas in the Cherokee Basin, which is located in southeast
Kansas and northeast Oklahoma. The Company is a fully integrated
E&P company, operating more than 1,100 producing wells which
produce into its own 1,200+ mile gathering and transportation
pipeline system, and using its own fleet of completion equipment to
meet its rapidly expanding drilling program. Quest currently has
approximately 1,700 locations in its drilling inventory. For more
information, visit the Quest Resource website at
http://www.qrcp.net/. Forward-Looking Statements Opinions,
forecasts, projections or statements other than statements of
historical fact, are forward-looking statements that involve risks
and uncertainties. Forward-looking statements in this announcement
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Although Quest believes
that the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that such expectations
will prove to be correct. Actual results may differ materially due
to a variety of factors, including without limitation: the
uncertainty involved in exploring for and developing new natural
gas reserves, the sale prices of natural gas and oil, labor and raw
material costs, the availability of sufficient capital resources to
carryout the Company's anticipated level of new well development
and construction of related pipelines, environmental issues,
weather conditions, competition, general market conditions, and
other risks detailed in Quest's filings with the Securities and
Exchange Commission. You can find Quest's filings with the
Securities and Exchange Commission at http://www.qrcp.net/ or at
http://www.sec.gov/. By making these forward-looking statements,
Quest undertakes no obligation to update these statements for
revisions or changes after the date of this release. Reconciliation
of Net Income to EBITDA EBITDA, which is Earnings before interest,
income taxes and depreciation, depletion and amortization expense,
is presented because it is used by us for, among other things,
determining compliance with certain bank covenants, and we believe
it is frequently used by securities analysts, investors and other
interested parties, in addition to and not in lieu of GAAP results,
to compare the performance of companies. EBITDA is not a
measurement of financial performance under generally accepted
accounting principles and should not be considered as an
alternative to cash flow from operating activities or as a measure
of liquidity or an alternative to net income as indicators of our
operating performance or any other measures of performance derived
in accordance with generally accepted accounting principles.
Reconciliation of Net Income to EBITDA For the Quarters Ended March
31, 2006 and 2005 (in thousands) Quarters Ended March 31, 2006 2005
(unaudited) Net Income (Loss) 8,717 (1,098) Interest Expense, Net
3,666 5,189 Income Tax Expense - - Depreciation, Depletion &
Amortization Expense 5,899 3,354 Change in Derivative Fair Value
(14,481) (444) EBITDA 3,801 7,001 Company Contact: Jerry D. Cash,
Chairman and Chief Executive Officer David E. Grose, Chief
Financial Officer Phone: (405) 488-1304 Website:
http://www.qrcp.net/ DATASOURCE: Quest Resource Corporation
CONTACT: Jerry D. Cash, Chairman and Chief Executive Officer, or
David E. Grose, Chief Financial Officer, +1-405-488-1304 Web site:
http://www.qrcp.net/
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