TEXOIL, INC.

NEWS RELEASE

FOR IMMEDIATE

RELEASE

 

 

 

COMPANY CONTACT

 

110 Cypress Station Drive

Frank A. Lodzinski

Suite No. 220

President

Houston, Texas

 

(281) 537-9920

 

(281) 537-8324 - Fax

 

www.texoil.com

 

 

TEXOIL REPORTS RESULTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2000

 

HOUSTON, TEXAS, August 9, 2000 - Texoil, Inc., (NASDAQ, Small Cap: "TXLI", Boston Stock Exchange "TXL") today announced financial and operating results for the second quarter and six month period ended June 30, 2000.  Oil and gas and related revenues increased 148% for the six months ended June 30, 2000, over the comparable period in 1999, to $22.7 million.  The Company reported net income available for common shareholders (after preferred stock dividends) of $5,236,000 for the year-to-date period, or $.79 per share, as compared to $870,000, or $.13 per share in 1999.  Earnings before interest, taxes, DD&A and preferred stock dividends (“EBITDA”) increased 204% for the six months ended June 30, 2000, to $13.9 million, or $2.10 per share, as compared to $4.6 million, or $.70 per share for the same period in 1999.

 

Second Quarter 2000

In the second quarter of 2000, Texoil achieved record revenues of $11,707,000, up 130% over the second quarter of 1999.  Texoil realized net income available for common shareholders of $2,826,000 compared to  $697,000, an increase of 305%.  During the second quarter of 2000, the Company produced 517,000 barrels of oil equivalent (BOE), up 48% from the second quarter of 1999.  Gas production increased to 1,325 MMcf, up 26% from the second quarter of 1999.  Oil production totaled 296,000 Bbls, up 69% from the second quarter of 1999.  The Company’s average oil price was 46% higher, averaging $23.06, compared to $15.80 in the same period of 1999, while the average gas price was up 48% over the prior year to $3.40.  EBITDA in the second quarter of 2000 from operating activities increased to $7.3 million from $2.7 million in the second quarter of 1999.

 

Six Months Ended June 30, 2000

Texoil’s net income available for common shareholders for the six months ended June 30, 2000, was $5,236,000 on revenues of $22,724,000.  For the comparable period of 1999, Texoil reported a net income of $870,000 on revenues of $9.2 million.  EBITDA for the six month period increased to $13,911,000 million in 2000 from $4,575,000 million 1999.  The Company’s production increased 55% to 1,041,000 BOE, compared to 670,000 BOE for the first six months of 1999.  Gas production increased to 2,665 MMcf, up 36% from 1999.  Oil production increased to 597,000 Bbls, up 74% from 1999.  The Company’s average oil price for the six months ended June 2000 increased 74% to $23.43 per Bbl, compared to $13.43 per Bbl in 1999.  Average gas prices increased 44% in 2000 to $2.99 per Mcf compared to $2.07 per Mcf in 1999.

 

Management Comments

Mr. Frank A. Lodzinski, Texoil’s President, stated “Texoil continues to achieve significant increases in substantially all performance measures, including production, revenues, cash flows and profitability.  Strong product prices continue to be a favorable factor, but production increases over the prior year are also a major contributor.  During the second quarter, Texoil closed the acquisition of the Ben Bolt field, conducted certain development activities, and also reduced debt by $3.0 million.  See news release dated August 8, 2000, for operational highlights.  The company has out-performed many of its peers, both in terms of financial performance and reserve and production growth.”

 

Texoil, Inc. (www.texoil.com), an independent energy company, acquires and develops oil and gas reserves through an active and diversified program that includes purchases of reserves, re-engineering, development and exploration activities, which are currently focused in Texas, South Louisiana and the Texas Gulf Coast.   

 

Forward-Looking Information

 

This release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 23E of the Securities Exchange Act of 1934, as amended.  All statements included in this release regarding the impact of recent acquisition of production properties on the Company are forward-looking statements and are based on management’s best projections.  Although the Company believes the expectations and beliefs reflected in forward-looking statements included in this release are reasonable, it can give

no assurance that such expectations will prove to have been correct.  Forward-looking statements are not guarantees of future performance and actual results, developments and business decisions may differ from those envisioned by such forward-looking statements.

 

SEE FINANCIAL SUMMARY ATTACHED

P:nr2000080900


TEXOIL, INC.

Summary Financial Data

(Thousands)

 

 

Three Months Ended

Six Months Ended

June 30,

June 30,

 

2000

1999

2000

1999

Revenues

 

 

 

 

 

Oil and gas

 $     11,334

 $       4,845

 $     21,948

 $       8,672

 

Other

             373

             245

             776

             491

 

Total

        11,707

          5,090

        22,724

          9,163

Expenses

 

 

 

 

 

Lease operating/workover

          2,779

          1,578

          5,490

          3,080

 

Production taxes

          1,094

             338

          2,193

             612

 

General and administrative

             583

             449

          1,130

             896

 

Total

          4,456

          2,365

          8,813

          4,588

EBITDA

          7,251

          2,725

        13,911

          4,575

 

Depreciation, depletion & amortization

          1,646

          1,069

          3,441

          2,094

 

Interest and debt expense

             327

             535

             709

          1,082

Income before income taxes

          5,278

          1,121

          9,761

          1,399

Provision for income taxes

         (1,768)

           (424)

         (3,270)

           (529)

Net Income

          3,510

             697

          6,491

             870

Preferred stock dividends

            (684)

 - 

         (1,255)

 -

Net income available for common

          2,826

             697

          5,236

             870

Per Common Share

 

 

 

 

 

Net income per share-basic

 $         0.42

 $         0.11

 $         0.79

 $         0.13

 

Net income per share-diluted

 $         0.27

 $         0.10

 $         0.49

 $         0.13

 

Weighted average shares outstanding-basic

          6,656

          6,555

          6,639

          6,555

 

Weighted average shares outstanding-diluted

        13,191

          6,722

        13,289

          6,790

EBITDA

          7,251

          2,725

        13,911

          4,575

 

EBITDA per share – basic

 $         1.09

 $         0.42

 $         2.10

 $         0.70

 

EBITDA per share – diluted

 $         0.55

 $         0.41

 $         1.05

 $         0.67

Cash Flow (EBITDA Less Interest)

          6,924

          2,190

        13,202

          3,493

 

Cash flow per share – basic

 $         1.04

 $         0.33

 $         1.99

 $         0.53

 

Cash flow per share – diluted

 $         0.52

 $         0.33

 $         0.99

 $         0.51

Production and Prices

 

 

 

 

 

Natural gas, MMcf

          1,325

          1,051

          2,665

          1,961

 

Price per Mcf

 $         3.40

 $         2.30

 $         2.99

 $         2.07

 

Crude oil and condensate, MBbls

             296

             175

             597

             343

 

Price per barrel

 $       23.06

 $       15.80

 $       23.43

 $       13.43

 

Barrel of oil equivalent (MBOE)

             517

             350

          1,041

             670

Current Assets

 

 

        10,015

          4,618

Property, plant and equipment-net

 

 

        61,985

        44,923

Deferred tax asset

 

 

 -

             260

Other assets

 

 

             175

             715

 

Total assets

 

 

        72,175

        50,516

Current liabilities

 

 

          8,224

          3,842

Long-term debt

 

 

        19,000

        24,500

Subordinated convertible debt

 

 

 -

        10,000

Deferred income taxes

 

 

          3,696

 -

Shareholders’ equity

 

 

        41,255

        12,174

Total liabilities and shareholders’ equity

 

 

        72,175

        50,516