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12.08.05
Arena Resources Announces Rig Purchase and Acceleration
of 2006 CAPEX Budget |
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11.17.05
Arena Resources Increases
2005 Capital Expenditure
to $24 Million
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11.01.05
Arena Resources, Inc. Announces Record Third Quarter and
Nine Month 2005 Financial
and Operating Results |
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10.19.05
Arena Resources, Inc. Provides
Third Quarter 2005
Operations Update |
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08.25.05
Arena Resources, Inc. Announces Redemption of Public Warrants |
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08.02.05
Arena Resources, Inc. Announces Completion of Texas
Properties Acquisition |
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07.29.05
Arena Resources Announces
Second Quarter and Six
Month 2005 Financial
and Operating Results |
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07.14.05
Arena Resources, Inc. Provides Second Quarter 2005 Operations Update; Increases Capital Expenditure Budgets |
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07.13.05
Arena Resources, Inc. Announces Receipt of $10 Million in Private Investment Funds |
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05.25.05
Arena Resources, Inc.
Announces Letter of Intent
on Texas Properties |
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05.11.05
Arena Resources Announces First Quarter 2005 Financial and Operating Results |
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04.13.05
Arena Resources, Inc. Provides
First Quarter 2005
Operations Update |
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03.29.05
Arena Resources, Inc. to Host Meetings at Howard Weil Energy Conference |
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03.24.05
Arena Resources, Inc.
Announces Acquisition of
17,500 Acres in Kansas |
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03.18.05
Arena Resources Announces
Record Financial and Operational Results for Fourth Quarter
and Year End 2004 |
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03.04.05
Arena Resources, Inc. Announces 2004 Year End Production
and Reserves |
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02.22.05
Arena Resources, Inc. Receives
$5 Million from Warrant Exercise |
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02.01.05
Arena Resources, Inc. Provides
Fourth Quarter 2004 Operations Update and Announces 2005
Capital Budget of $15 Million |
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Arena Resources Announces Record Financial and Operational Results
for Fourth Quarter and Year End 2004
Tulsa, Oklahoma — March 18, 2005 — Arena Resources, Inc. (AMEX: ARD, ARD.WS) ("Arena") ("Company") announced today financial results for the fourth quarter and year ended December 31, 2004. Arena had net income of $891,778, a 348% increase, on oil and gas revenues of $2,972,346, a 178% increase, for the fourth quarter compared to net income of $198,886 on revenues of $1,067,890 for the fourth quarter ended December 31, 2003. For the year ended December 31, 2004, Arena had net income of $2,580,017, a 219% increase, on revenues of $8,482,130, a 131% increase, as compared to net income of $809,498 on revenues of $3,665,447 for the year ended December 31, 2003. Income attributable to common shares for the fourth quarter was $0.10 per diluted share compared to $0.02 for the fourth quarter ended December 31, 2003. For the year ended December 31, 2004, income attributable to common shares was $0.30 per diluted share compared to $0.11 per diluted share for the year ended December 31, 2003. The increase in revenue is attributed to an increase in production, primarily due to acquisitions made in 2004, and an increase in commodity prices. Cash provided by operating activities increased to $5,995,684 for the year ended December 31, 2004 from $1,652,950 for the year ended December 31, 2003. Earnings before interest, taxes, depletion and other non-cash items ("Adjusted EBITDA") was $5,244,868, or $0.60 per diluted share in 2004, as compared to $1,764,242, or $0.24 per diluted share in 2003. (See attached schedule for a reconciliation of net income to adjusted EBITDA)
Proved reserves totaled approximately 21.2 million barrels of oil equivalents (BOE), a 179% increase over the 7.6 million BOE for the previous year. Future net revenues, discounted 10%, based on $39.00 per barrel of oil and $5.19 per Mcf, were $302.4 million at year-end 2004. This compares to $66.6 million, using average prices of $29.25 for oil and $3.46 per Mcf, for year-end 2003.
"2004 proved to be a tremendous year for us," said Tim Rochford, President and Chief Executive Officer. "We continued to make strategic acquisitions, improve profit margins and began our development program ahead of schedule by drilling nine wells in the last quarter. The fourth quarter's revenue alone represented over 80% of our total revenue in 2003. We will continue our development program in 2005 with a planned thirty-three well drilling program beginning in April when we move a rig on our Fuhrman-Mascho property in the Permian Basin."
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ARENA RESOURCES, INC. STATEMENTS OF OPERATIONS |
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Three Months Ended |
Twelve Months Ended |
Dec. 31, 2004 |
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Dec. 31, 2004 |
Dec. 31, 2003 |
Oil and Gas Revenues
Costs and Operating Expenses
Oil and gas production costs
Oil and gas production taxes
Depreciation, depletion & amortization
General and administrative expense
Total Costs and Operating Expenses
Other Income (Expense)
Gain from change in fair value of put options
Accretion expense
Interest expense
Net Other Income (Expense)
Income Before Provision for
Income Taxes and Cumulative Effect
of Change in Accounting Principle
Provision for Deferred Income Taxes
Income Before Cumulative Effect of Change in Accounting Principle
Cumulative Effect of Change in Accounting Principle
Net Income
Basic Income Per Common Share
Before cumulative effect of change in accounting principle
Net Income
Diluted Income Per Common Share
Before cumulative effect of change in accounting principle
Net Income
Basic Weighted-Average
Common Shares Outstanding
Diluted Weighted-Average
Common Shares Outstanding
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$ 2,972,346
691,082
225,435
458,564
196,934
1,572,015
65,346
(15,657)
(27,529)
22,160
1,422,491
(530,713)
891,778
—
$ 891,778
$ 0.10
$ 0.10
$ 0.10
$ 0.10
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$ 1,067,890
336,603
87,656
163,273
154,680
742,212
7,533
(10,214)
(9,325)
(12,006)
313,672
(114,786)
198,886
—
$ 198,886
$ ( 0.03)
$ ( 0.03)
$ ( 0.02)
$ ( 0.02)
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$ 8,482,130
1,975,835
629,703
1,011,602
670,325
4,287,465
68,251
(53,729)
(155,936)
(141,414)
4,053,251
(1,473,234)
2,580,017
—
$2,580,017
$ 0.33
$ 0.33
$ 0.30
$ 0.30
Dec. 31, 2004
7,873,213
8,694,178
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$ 3,665,477
1,149,136
269,563
360,282
557,576
2,336,557
47,699
(32,212)
(38,798)
(23,311)
1,305,609
(484,298)
821,311
11,813
$ 809,498
$ ( 0.12)
$ ( 0.12)
$ 0.11
$ 0.11
Dec. 31, 2004
6,759,858
7,241,676
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OTHER FINANCIAL INFORMATION |
Cash Flow provided
by operating activities |
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$ 5,995,684 |
$ 1,652,950 |
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CONSOLIDATED BALANCE SHEET |
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Dec. 31, 2004 |
Dec. 31, 2003 |
ASSETS
Current Assets
Cash
Account receivable
Joint interest billing receivable
Short-term investments
Prepaid expenses
Total Current Assets
Property and Equipment, Using Full Cost Accounting
Oil and Gas properties subject to amortization
Drilling advances
Equipment
Office equipment
Total Property and Equipment
Less: Accumulated depreciation and amortization
Net Property and Equipment
Deferred Offering Costs
Total Assets |
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$ 1,253,969
1,149,513
61,805
—
33,136
2,498,423
34,421,920
900,000
26,687
60,401
35,409,008
(1,565,124)
33,843,884
—
$ 36,342,307 |
$ 1,076,676
388,910
—
25,234
28,935
1,519,755
8,463,400
351,000
48,480
18,978
8,881,858
(559,229)
8,322,629
130,872
$9,973,256 |
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LIABILITIES STOCKHOLDERS' EQUITY |
Current Liabilities
Accounts payable
Accrued liabilities
Put option
Total Current Liabilities
Long-Term Liabilities
Notes payable
Notes payable to related parties
Put option
Asset retirement liability
Deferred income taxes
Total Long-Term Liabilities
Stockholders' Equity
Preferred stock - $0.001 par value; 10,000,000 shares authorized
No shares issued or outstanding
Common stock - $0.001 par value; 10,000,000 shares authorized
9,132,910 shares and 7,152,097 shares outstanding respectively
Additional paid-in capital
Options and warrants outstanding
Retained earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity |
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$ 1,805,865
34,800
—
1,840,665
$ 10,000,000
400,000
95,033
1,267,993
2,129,993
13,893,019
—
9,133
15,233,135
2,553,159
2,823,196
20,608,623
$36,342,307
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$ 229,522
18,440
2,905
250,867
—
400,000
—
607,200
656,759
1,663,959
—
7,162
6,994,925
813,164
243,179
8,058,430
$9.973,256
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Dec. 31, 2004 |
Dec. 31, 2003 |
Cash Flows From Operating Equities
Net income
Adjustments to reconcile net income to net cash
Provided by operating activities:
Shares issued for services
Depreciation, depletion and amortization
Gain from change in fair value of put option
Cumulative effect of change in accounting principle
Loss on sale of discounted liabilities
Accretion of discounted liabilities
Changes in assets and liabilities:
Accounts receivable
Pre-paid expenses
Accounts payable and accrued liabilities
Deferred income taxes
Net Cash Provided by Operating Activities
Cash Flows From Investing Activities
Proceeds from sale of equipment
Cash payments on purchase of East Hobbs
Cash payments on purchase of Furhman-Mascho
Purchase and development of oil and gas properties
Purchase of property, plant & equipment
Maturity of long-term investment
Purchase of office equipment
Net Cash Provided by Operating Activities
Cash Flows From Financing Activities
Proceeds from issuance of common stock and warrants,
net of offering costs
Proceeds from exercise of warrants
Issuance of note payable
Payment of notes payable
Collection of common stock subscription receivable
Payment of accrued dividends to preferred stockholders
Net Cash Provided by (Used in) Financing Activities
Net Increase in Cash
Cash at Beginning of Period
Cash at End of Period |
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$ 2,580,017
—
1,011,602
(68,251)
—
5,586
83,730
(656,864)
(4,201)
1,570,831
1,473,234
5,995,684
10,500
(1,028,000)
(711,802)
(4,802,141)
—
25,234
(41,423)
(6,547,632)
8,383,557
354,124
2,000,000
(10,008,440)
—
—
729,241
177,293
1,076,676
$1,253,969
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$ 809,498
75,040
360,282
(47,699)
11,813
—
32,212
(119,474)
(27,807)
74,787
484,298
1,652,950
—
—
—
(3,050,558)
(26,686)
51,268
(4,306)
(3,030,282)
1,580,328
33,950
—
—
157,500
(114,685)
1,657,093
279,781
796,915
$1.076,676
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NON-GAAP DISCLOSURE RECONCILIATION |
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Dec. 31, 2004 |
Dec. 31, 2003 |
NET INCOME
Interest expense
Income tax expense
Depreciation, depletion and amortization
Accretion of discounted liabilities
Shared issued for services
Gain fromchange in fair value of put option
Cumulative effect of change in accounting principle
Loss on sale of equipment
ADJUSTED EBITDA |
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$2,580,017
158,950
1,473,234
1,011,602
83,730
—
(68,251)
—
5,586
$5,244,868
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$809,498
38,798
484,298
360,282
32,212
75,040
(47,699)
11,813
—
$1,764,242
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About Arena Resources, Inc.
Arena Resources, Inc. is an oil and gas exploration, development and production company with current operations in Texas, Oklahoma, Kansas and New Mexico. |
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This release contains forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 that involve a wide variety of risks and uncertainties, including, without limitations, statements with respect to the Company's strategy and prospects. Readers and investors are cautioned that the Company's actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company's ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, and the conduct of business by the Company, and other factors that may be more fully described in additional documents set forth by the Company.
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For further information contact:
K M Financial, Inc.
Bill Parsons 480-947-1589
k-m-financial@msn.com |
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