Exhibit 99.1
For Information
Mark A. Hellerstein
Robert T. Hanley
ST. MARY REPORTS EARNINGS FOR FIRST QUARTER 2002
-------------------------------------------------
DENVER, May 8, 2002- St. Mary Land & Exploration Company (Nasdaq: MARY)
today announced its earnings for first quarter 2002 of $2.3 million or 8 cents
per basic share, which reflects lower oil and gas prices as compared to the
first quarter 2001. First quarter 2001 earnings were $20.4 million or 72 cents
per basic share. Revenues for the first quarter of 2002 were $42.8 million
compared to $68.3 million for the first quarter of 2001. First quarter
Discretionary Cash Flow, which is net income plus depreciation, depletion,
amortization, impairments, deferred taxes, exploration expense and unrealized
derivative loss, decreased from $47.3 million in the first quarter of 2001 to
$24.3 million in the first quarter of 2002.
Daily oil and gas production during the first quarter 2002 averaged 153.2
million cubic feet of gas equivalent (MMCFE), up from 147.3 MMCFE in the
comparable 2001 period. Average prices realized during the quarter were $2.58
per MCF and $23.37 per barrel, 53% and 8% lower, respectively, than the realized
prices in the first quarter of 2001.
The Company's forecasts for the second quarter and the full year 2002 are as
follows:
2nd Quarter Year
Oil and Gas Production 13.5-14.5 BCFE 57 - 59 BCFE
Lease operating expenses,
including production taxes and
transportation $.95-$1.05/MCFE $.95-$1.05/MCFE
General & administrative expense $.20-$.24/MCFE $.20-$.24/MCFE
Depreciation, depletion & amort. $.95-$1.05/MCFE $.95-$1.05/MCFE
Current taxes payable is expected to be 5%-10% of total taxes.
An operational update for the first quarter 2002 was provided in the Company's
April 19, 2002 press release.
As previously announced, the St. Mary first quarter earnings teleconference call
is scheduled for May 9 at 8:00 am (MDT). The call participation number is
888-424-5231. A digital recording of the conference call will be available two
hours after the completion of the call, 24 hours per day until May 19 at
800-642-1687, conference number 4001670. International participants can dial
706-634-6088 to take part in the conference call, and can access a replay of the
call at 706-645-9291, conference number 4001670. In addition the call will be
broadcast live online at www.stmaryland.com. An audio recording of the
conference call will be available at that site through May 19.
This release contains forward looking statements within the meaning of
securities laws, including forecasts and projections for future periods. The
words "will," "believe," "anticipate," "intend," "estimate," and "expect" and
similar expressions are intended to identify forward looking statements. These
statements involve known and unknown risks, which may cause St. Mary's actual
results to differ materially from results expressed or implied by the forward
looking statements. These risks include such factors as the volatility and level
of oil and natural gas prices, production rates and reserve replacement, reserve
estimates, drilling and operating service availability and uncertainties in cash
flow, the financial strength of hedge contract counterparties, the availability
of attractive exploration and development and property acquisition opportunities
and any necessary financing, expected acquisition benefits, competition,
litigation, environmental matters, the potential impact of government
regulations, and other such matters discussed in the "Risk Factors" section of
St. Mary's 2001 Annual Report on Form 10-K filed with the SEC. Although St. Mary
may from time to time voluntarily update its prior forward looking statements,
it disclaims any commitment to do so except as required by securities laws.
PR-02-09
###
Financial Highlights Follow
ST. MARY LAND & EXPLORATION COMPANY
FINANCIAL HIGHLIGHTS
Three Months Ended
March 31,
----------------------- %
2002 2001 Change
-----------------------
(Unaudited in thousands, except per share)
Revenues:
Oil and gas production $41,093 $67,915
Other 1,680 432
----------------------
42,773 68,347
----------------------
Operating Expenses:
Oil and gas production costs 14,030 12,057
Depletion, depreciation & amortization 13,054 11,288
Exploration 6,916 8,362
Impairment and abandonment 697 637
General and administrative 3,141 4,021
Unrealized derivative loss 352 -
Minority interest and other 801 261
---------------------
38,991 36,626
---------------------
Income from operations 3,782 31,721
Interest income 110 188
Interest expense (452) (35
---------------------
Income before income tax expense 3,440 31,874
Income tax expense - current 197 4,814
Income tax expense - deferred 925 6,667
---------------------
Net income $2,318 $20,393
=====================
Basic weighted average
shares outstanding 27,786 28,236
=====================
Basic earnings per common share: $0.08 $0.72
=====================
Diluted weighted average
shares outstanding 28,294 28,932
=====================
Diluted earnings per common share: $0.08 $0.71
=====================
Average price:
Oil $23.37 $25.54 -8%
Gas $2.58 $5.45 -53%
Margin analysis per MCFE:
Net realized price $2.98 $5.12 -42%
Oil and gas production costs $1.02 $0.91 12%
General and administrative costs $0.23 $0.30 -25%
---------------------
Operating margin $1.74 $3.91 -56%
---------------------
Depletion, depreciation & amortization $0.95 $0.85 11%
Production (in thousands):
Oil (Bbls) 705 608 16%
Gas (MCF) 9,555 9,609 -1%
MCFE (6:1) 13,785 13,257 4%
Mar 31, Dec 31,
BALANCE SHEET 2002 2001
----------------------
Working Capital $76,600 $34,000
Long-term debt 119,530 64,000
Stockholders' equity 289,006 286,117
Shares outstanding 27,808 27,770
Dec 31,
PROVEN RESERVES (in thousands): 2001
-----------
Domestic:
Oil (Bbls) 23,669
Gas (MCF) 241,231
-----------
-----------
MCFE (6:1) 383,247
===========