Remington Oil and Gas Corporation Announces First Quarter 2005 Earnings DALLAS, April 28 /PRNewswire-FirstCall/ -- Remington Oil and Gas Corporation (NYSE:REM) announced the following first quarter financial information: Three Months Ended March 31, 2005 2004 (In thousands, except per share data) Revenues $59,786 $46,163 Net income $16,035 $11,001 Cash flow provided by operations $45,355 $29,462 Primary income per share $0.57 $0.41 Diluted income per share $0.56 $0.39 Production Bcfe 8.6 8.1 Average gas price $6.54 $ 5.74 Average oil price $47.11 $33.76 Total revenues increased by $13.6 million to $59.8 million primarily the result of a 6% production volume increase and a 21% increase in average equivalent prices received compared with the 1st quarter of 2004. Net Income increased $5.0 million to $16.0 million or 46% above the same quarter in 2004. This resulted in diluted income per share of $0.56, 44% above the same quarter in 2004. Cash flow from operations increased by $15.9 million to $45.4 million over the 1st quarter of 2004. Production volumes were 8.6 Bcfe for the quarter compared with 8.1 Bcfe in the 1st quarter of 2004. This was 6% above the first quarter of 2004 but 17% below the 4th quarter of 2004. This sequential decrease is due to weather delays in new installations and weather shut downs of unmanned platforms during the quarter. This sequential and seasonal decrease in production volumes is typical for our Gulf of Mexico operations. Total income taxes from the first quarter of 2005 were $8.8 million versus $6.1 million in the first quarter of 2004. Substantially all of the first quarter 2005 taxes will be classified as deferred with no cash taxes payable for the period. The following table reflects 2005 guidance for our estimates of our primary costs per Mcfe produced versus first quarter results. 2005 2005 Actual Annual Guidance $/Mcfe 1st Quarter/Mcfe Operating Costs (LOE) $0.65 - $0.75 $0.69 General and Administrative (G&A) $0.21 - $0.28 $0.25 Interest and Financing $0.01 - $0.02 $0.02 Depreciation, depletion and Amortization (DD&A) $2.00 - $2.15 $1.86 LOE, G&A, and Interest and Financing Costs on a Mcfe basis were in line with guidance provided. G&A costs included $0.06/Mcfe of stock based compensation. DD&A was below guidance primarily due to lower production from certain higher cost properties. For the remainder of the year, it is anticipated that the costs per Mcfe produced will remain within the guidance provided. Annual dry hole expense is estimated at between $25 and $30 million. Dry hole expense for the 1st quarter was $9.0 million. The most significant contributors to this amount were $1.9 million at Eugene Island 154, $1.8 million for the unsuccessful portion of East Cameron 346 A-12 ST1, and $4.5 million at West Cameron 147. Approximately $2.1 million of additional dry hole costs will be expensed in the 2nd quarter associated with the West Cameron 147 dry hole. We utilize the successful efforts method of accounting, which requires dry holes to be reported as an expense in the quarter they are determined to be dry. It is very difficult to predict when dry holes will occur and thus dry hole expense is subject to dramatic fluctuation each quarter. Remington Oil and Gas Corporation is an independent oil and gas exploration and production company headquartered in Dallas, Texas, with operations concentrating in the onshore and offshore regions of the Gulf Coast. Statements concerning future revenues and expenses, results of exploration, exploitation, development and acquisition expenditures, and reserve levels are forward-looking statements. These statements are based on assumptions concerning commodity prices, drilling results and production, administrative and interest costs that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business risks and there is no assurance that these goals and projections can or will be met. Further information is available in the Company's filings with the Securities and Exchange Commission, which are incorporated by this reference. Remington Oil and Gas Corporation Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share data) March 31, December 31, Assets 2005 2004 Current assets Cash and cash equivalents $62,911 $58,659 Accounts receivable 55,899 49,582 Prepaid expenses and other current assets 5,575 5,199 Total current assets 124,385 113,440 Properties Oil and gas properties (successful- efforts method) 782,663 744,215 Other properties 3,408 3,145 Accumulated depreciation, depletion and amortization (425,330) (409,591) Total properties 360,741 337,769 Other assets 1,891 1,905 Total assets $487,017 $453,114 Liabilities and stockholders' equity Current liabilities Accounts payable and accrued liabilities $69,757 $69,339 Total current liabilities 69,757 69,339 Long-term liabilities Asset retirement obligation 17,644 16,030 Deferred income taxes 59,236 53,785 Total long-term liabilities 76,880 69,815 Total liabilities 146,637 139,154 Commitments and contingencies Stockholders' equity Preferred stock, $.01 par value, 25,000,000 shares authorized, no shares Outstanding --- --- Common stock, $.01 par value, 100,000,000 shares authorized, 28,509,597 shares issued and 28,475,238 shares outstanding in 2005, 27,883,698 shares issued and 27,849,339 shares outstanding in 2004 285 279 Additional paid-in capital 143,071 132,334 Restricted common stock 5,963 6,749 Unearned compensation (5,165) (5,593) Retained earnings 196,226 180,191 Total stockholders' equity 340,380 313,960 Total liabilities and stockholders' equity $487,017 $453,114 Remington Oil and Gas Corporation Consolidated Statements of Income (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2005 2004 Revenues Gas sales $40,390 $32,114 Oil sales 19,081 13,943 Other income 315 106 Total revenues 59,786 46,163 Costs and expenses Operating 5,912 6,048 Exploration 10,385 5,528 Depreciation, depletion and amortization 16,011 15,146 Impairment expense 297 236 General and administrative 2,121 1,922 Interest and financing 198 228 Total costs and expenses 34,924 29,108 Income before income taxes 24,862 17,055 Income tax expense 8,827 6,054 Net income $16,035 $11,001 Basic income per share $0.57 $0.41 Diluted income per share $0.56 $0.39 Weighted average shares outstanding (Basic) 28,045 26,975 Weighted average shares outstanding (Diluted) 28,838 28,161 Production Oil (MBbls) 405 413 Gas (MMcf) 6,176 5,592 Mcfe 8,606 8,070 Average Prices Oil $47.11 $33.76 Gas $6.54 $5.74 Per Mcfe $6.91 $5.71 Remington Oil and Gas Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended March 31, 2005 2004 Cash flow provided by operations Net income $16,035 $11,001 Adjustments to reconcile net income Depreciation, depletion and amortization 16,011 15,146 Deferred income taxes 5,451 6,054 Amortization of deferred charges 46 46 Dry hole costs 9,049 5,619 Impairment costs 297 236 Cash paid for dismantlement (243) (22) Stock based compensation 512 362 Tax benefit from exercise of stock options 3,376 --- Changes in working capital (Increase) in accounts receivable (5,646) (6,754) Decrease (increase) in prepaid expenses and other current assets 49 (387) Increase (decrease) in accounts payable and accrued expenses 418 (1,839) Net cash flow provided by operations 45,355 29,462 Cash from investing activities Capital expenditures (47,600) (30,727) Net cash (used in) investing activities (47,600) (30,727) Cash from financing activities Payments on notes payable and other long-term payables --- (8,000) Common stock issued 6,833 162 Purchase of treasury stock (336) (236) Net cash provided by (used in) financing activities 6,497 (8,074) Net (decrease) in cash and cash equivalents 4,252 (9,339) Cash and cash equivalents at beginning of period 58,659 31,408 Cash and cash equivalents at end of period $62,911 $22,069 DATASOURCE: Remington Oil and Gas Corporation CONTACT: Steven J. Craig, Sr. Vice President of Remington Oil and Gas Corporation, +1-214-210-2675

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