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BPZ Energy Provides First Quarter 2013 Financial Results and Announces Loan Amendments



BPZ Energy Provides First Quarter 2013 Financial Results and Announces Loan
Amendments

HOUSTON, May 9, 2013 (GLOBE NEWSWIRE) -- BPZ Energy, (NYSE:BPZ) (BVL:BPZ), an
independent oil and gas exploration and production company, today provided
first quarter 2013 financial results and announced amendments to the Company's
bank facilities.

On May 9, 2013, the Company repaid the remaining outstanding principal of
$30.5 million on the original $75.0 million secured debt facility. In
addition, the Company amended and restated the $40.0 million secured debt
facility by increasing the facility size and borrowing $14.5 million, as well
as amending the covenant and principal repayment amounts related to this
facility.

For the quarter ended March 31, 2013, the Company reported an operating loss
of $7.2 million and a net loss of $12.8 million, or $0.11 per share, compared
with an operating loss of $18.9 million and a net loss of $27.3 million, or
$0.24 per share, for the same period last year.

Improved first quarter 2013 operating results were primarily due to lower
geological, geophysical and engineering expenses, partially offset by the
impact on operating income from the sale of a 49% participating interest in
the Z-1 license contract to Pacific Rubiales.

Earnings before interest, income taxes, depletion, depreciation and
amortization, exploration expense and non-recurring charges (EBITDAX), was a
negative $346,000 for the first quarter of 2013 compared to a positive $17.7
million for the same period last year. EBITDAX is a non-GAAP measure. Please
also see the reconciliation to net income in Table 3 included at end of the
press release.

Production and Revenue

Net oil production for the three months ended March 31, 2013 was 134 MBbls
barrels, or 1,491 bopd, compared to a pro forma net 180 MBbls, or 1,978 bopd,
for the same period in 2012. The decrease in oil production is due to natural
declines in oil production at both the Corvina and Albacora fields.

                             Production Volumes                       
                             Three Months Ended        Three Months Ended
                             March 31,                 March 31, 
                             2013        2012          2013          2012
                             Actual      Pro forma     Pro forma     Actual
                             Net         Net (1)       Gross (2)     Gross
Production volume (MBbls)    134         180           263           353
Average Daily Production     1,491       1,978         2,924         3,879
volume (Bopd)
                                                                      
Presented on a Net and Gross basis for comparison purposes 
MBbls - thousands of barrels of oil; Bopd - barrels of oil per day
                                                                      
(1) Pro forma Net amounts assume the sale of the 49% participating interest in
Block Z-1 closed on Jan. 1, 2012
(2) Pro forma Gross amounts assume 100% working interest in Block Z-1 

For the three months ended March 31, 2013, oil revenue after royalty payments
decreased by $23.2 million to $13.3 million from $36.5 million for the same
period in 2012. The decrease in 2013 net oil revenue is due to a decrease in
the amount of oil sold of 205 MBbls to 129 MBbls due to the sale of a 49%
interest in Block Z-1, along with lower net oil production. In addition, there
was a decrease of $5.88 in the average per barrel sales price received from
$109.15 to $103.27 per barrel.

Expenses

Lease Operating Expense

For the three months ended March 31, 2013, lease operating expense (LOE)
decreased by $4.7 million to $6.7 million ($51.89 per Bbl) from $11.4 million
($34.02 per Bbl) for the same period in 2012. 

Reduced LOE expenses are primarily due to the sale of a 49% interest in Block
Z-1 of $5.6 million.

Excluding the impact of the sale, LOE increased by $0.9 million as workover
expenses increased by a net $2.0 million due to Block Z-1 workover
activity. This was partially offset by lower net repairs and maintenance
expenses, crude oil transportation expense, contract services expense, and
other LOE.

General and Administrative Expense

For the three months ended March 31, 2013, general and administrative (G&A)
expenses decreased by $0.7 million, or 11%, to $5.5 million from $6.2 million
for the same period in 2012. Stock-based compensation expense, a subset of G&A
expenses, was $0.7 million for the three months ended March 31, 2012 and for
the same period in 2013.

G&A expenses, excluding stock-based compensation, decreased $0.7 million to
$4.8 million from $5.5 million for the same period in 2012, mainly due to
lower legal costs.

Geological, Geophysical and Engineering (GG&E)

For the three months ended March 31, 2013, GG&E expenses decreased $24.8
million to $0.4 million compared to $25.2 million for the same period in
2012. Seismic acquisition expenses at Block Z-1 during 2012 were for the
Company's account, and in 2013 funding of seismic expenses in Block Z-1 was
for the account of its joint venture partner, Pacific Rubiales Energy
Corp. The 3D seismic acquisition on Block Z-1 was substantially completed
during first quarter 2013, while processing and interpretation continues.

Depreciation, Depletion and Amortization Expense

For the three months ended March 31, 2013, depreciation, depletion and
amortization expense decreased $4.6 million to $6.9 million from $11.5 million
for the same period in 2012. 

For the three months ended March 31, 2013, depletion expense decreased $3.5
million to $4.6 million from $8.1 million during the same period in 2012
primarily due to the sale of a 49% participating interest in the Block Z-1
license contract.

Standby Costs

For the three months ended March 31, 2013, the Company's share of standby
costs was $1.1 million including the CX-11 workover rig and the CX-15 drilling
rig. For the three months ending March 31, 2012, the Company incurred $1.2
million of standby rig costs. 

Other Expense

For the three months ended March 31, 2013, other expense decreased $7.5
million to $5.2 million compared to $12.7 million for the same period in
2012. The decrease is primarily due to $1.9 million of lower net interest
expense resulting from lower interest bearing debt outstanding between the two
periods, and a $5.9 million decrease in losses on derivatives due to lower
crude oil prices during the 2013 quarter.

Income Taxes

For the three months ended March 31, 2013, the Company recognized income tax
expense of $0.3 million on a loss before income taxes of $12.5 million.  For
the comparable 2012 period, the Company recognized an income tax benefit of
$4.3 million on a loss before income taxes of $31.6 million.  The decrease in
the loss before income taxes is mainly a result of the lower GG&E expenses,
partially offset by the impact on operating income from the sale of a 49%
participating interest in the Z -1 license contract to Pacific Rubiales.

Liquidity, Capital Expenditures and Capital Resources

Liquidity

At March 31, 2013, the Company had cash and cash equivalents of $63.0 million
and restricted cash of $66.5 million, an accounts receivable balance of $45.6
million and working capital of $54.1 million. 

Capital and Exploratory Expenditures

The Company's non-Block Z-1 total capital and exploratory expenditures for the
first quarter ended March 31, 2013 were $0.6 million, excluding capitalized
interest of $2.6 million. 

For Block Z-1, Pacific Rubiales provided 100% funding for capital and
exploratory expenditures of $22.8 million for the three months ended March 31,
2013.  This includes approximately $7.2 million related to costs incurred in
the design, fabrication, installation and pipeline connections related to the
CX-15 platform, approximately $6.2 million related to the CX-15 platform
development drilling program and $7.8 million related to the 3D seismic
program. At March 31, 2013, the Company's remaining carry amount from Pacific
Rubiales was $114.7 million.

Capital Resources

At March 31, 2013, outstanding long-term debt and short-term debt consisted of
the 2015 Convertible Notes with a par value of $170.9 million, a $33.0 million
secured loan, and a $29.1 million secured loan. At March 31, 2013, the current
and long-term portions of debt were $24.6 million and $192.8 million,
respectively.

Subsequent Events

On May 6, 2013, the Company obtained a waiver to the $75.0 million secured
debt facility with Credit Suisse in respect of the Company's date for first
production from the CX-15 platform.  

On May 9, 2013 The Company repaid the remaining outstanding principal of $30.5
million on the original $75.0 million secured debt facility. 

In addition, the Company amended and restated the $40.0 million secured debt
facility by increasing the facility size and borrowing an additional $14.5
million, as well as amending the covenant and principal repayment amounts
related to this facility which matures in January 2015.

Conference Call Information

The Company has scheduled a conference call and webcast to discuss first
quarter 2013 results on Friday, May 10, 2013, at 10:00 a.m. CT (11:00 a.m.
ET.) 

The live conference call may be accessed via the Investor Relations section of
the Company's website at http://www.bpzenergy.com or by accessing the
following dial-in numbers:

US and Canada Dial-In:  (877) 293-5457
International Dial-In:  (707) 287-9344
Conference Code:        58851427

A replay of the conference call will be available at the Investor Relations
section of the Company's website. 

ABOUT BPZ ENERGY

BPZ Energy is an independent oil and gas exploration and production company
with license contracts covering 1.9 million net acres in four blocks located
in northwest Peru. Current operations in these blocks range from early-stage
exploration to production.  The Company holds a 51% working interest in the
offshore Block Z-1, which is producing crude oil from the Corvina and Albacora
fields. Onshore, the focus has been seismic data acquisition at Blocks XIX,
XXII and XXIII to lay the groundwork for future exploration drilling.  As part
of the overall gas marketing strategy, we are also evaluating a gas-to-power
plant project in Peru. In southwest Ecuador, we own a non-operating net
profits interest in a producing property.  BPZ Energy trades as BPZ Resources,
Inc. on both the New York Stock Exchange and the Bolsa de Valores in Lima
under the ticker "BPZ".  Please visit our website at www.bpzenergy.com for
more information.

FORWARD LOOKING STATEMENT

This Press Release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
 These forward looking statements are based on our current expectations about
our company, our properties, our estimates of required capital expenditures
and our industry.  You can identify these forward-looking statements when you
see us using words such as "will," "expected," "estimated," and "prospective,"
and other similar expressions. These forward-looking statements involve risks
and uncertainties.

Our actual results could differ materially from those anticipated in these
forward looking statements. Such uncertainties include successful operation of
our new platform in Corvina, the success of our project financing efforts,
accuracy of well test results, results of seismic testing, well refurbishment
efforts, successful production of indicated reserves, satisfaction of well
test period requirements, successful installation of required permanent
processing facilities, receipt of all required permits, the successful
management of our capital expenditures, and other normal business risks. We
undertake no obligation to publicly update any forward-looking statements for
any reason, even if new information becomes available or other events occur in
the future.

CAUTIONARY STATEMENT REGARDING CERTAIN INFORMATION RELEASES

The U.S. Securities and Exchange Commission (SEC) permits oil and gas
companies, in their filings with the SEC, to disclose only "reserves" that a
company anticipates to be economically producible by application of
development projects to known accumulations, and there exists or is a
reasonable expectation there will exist, the legal right to produce, or a
revenue interest in the production, installed means of delivering oil and gas
or related substances to market, and all permits and financing required to
implement the project. We are prohibited from disclosing estimates of oil and
gas resources that do not constitute "reserves" in our SEC filings. With
respect to "probable" and "possible" reserves, we are required to disclose the
relative uncertainty of such classifications of reserves when they are
included in our SEC filings. Further, the reserves estimates contained in this
press release are not designed to be, nor are they intended to represent, an
estimate of the fair market value of the reserves.

The Company is aware that certain information concerning its operations and
production is available from time to time from Perupetro, an instrumentality
of the Peruvian government, and the Ministry of Energy and Mines ("MEM"), a
ministry of the government of Peru. This information is available from the
websites of Perupetro and MEM and may be available from other official sources
of which the Company is unaware. This information is published by Perupetro
and MEM outside the control of the Company and may be published in a format
different from the format used by the Company to disclose such information, in
compliance with SEC and other U.S. regulatory requirements.

Additionally, the Company's joint venture partner in Block Z-1, Pacific
Rubiales Energy Corp. ("PRE"), is a Canadian public company that is not listed
on a U.S. stock exchange, but is listed on the Toronto (TSX), Bolsa de Valores
de Colombia (BVC) and BOVESPA stock exchanges. As such PRE may be subject to
different information disclosure requirements than the Company. While PRE is
subject to various confidentiality requirements regarding us, information
concerning the Company, such as information concerning energy reserves, may be
released by PRE outside of our control and may be released in a format
different from the format the Company uses to disclose such information,
incompliance with SEC and other U.S. regulatory requirements.

The Company provides such information in the format required, and at the times
required, by the SEC and as determined to be both material and relevant by
management of the Company. The Company urges interested investors and third
parties to consider closely the disclosure in our SEC filings, available from
us at 580 Westlake Park Blvd., Suite 525, Houston, Texas 77079; Telephone:
(281) 556-6200. These filings can also be obtained from the SEC via the
internet at www.sec.gov.

BPZ Resources, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
                                                                
                                                   Three Months
                                                   Ended March 31,
                                                   2013        2012
Net revenue:                                                    
Oil revenue, net                                    $ 13,281    $ 36,475
Other revenue                                       31          78
                                                                
Total net revenue                                   13,312      36,553
                                                                
Operating and administrative expenses:                          
Lease operating expense                             6,673       11,368
General and administrative expense                  5,475       6,200
Geological, geophysical and engineering expense     358         25,221
Depreciation, depletion and amortization expense    6,904       11,506
Standby costs                                       1,143       1,190
                                                                
Total operating and administrative expenses         20,553      55,485
                                                                
Operating income (loss)                             (7,241)     (18,932)
                                                                
Other income (expense):                                         
Interest expense, net                               (4,298)     (6,210)
Loss on derivatives                                 (548)       (6,368)
Interest income                                     9           3
Other expense                                       (329)       (47)
                                                                
Total other expense, net                            (5,213)     (12,669)
                                                                
Loss before income taxes                            (12,454)    (31,601)
                                                                
Income tax expense (benefit)                        330         (4,310)
                                                                
Net loss                                            $ (12,784)  $ (27,291)
                                                                
Basic net loss per share                            $ (0.11)    $ (0.24)
Diluted net loss per share                          $ (0.11)    $ (0.24)
                                                                
Basic weighted average common shares outstanding   115,788     115,513
Diluted weighted average common shares outstanding 115,788     115,513

 
BPZ Resources, Inc. and Subsidiaries
Consolidated Balance Sheets 
(In thousands)
                                                                   
                                                    March 31,     December 31,
                                                    2013          2012
                                                     (Unaudited)   
ASSETS                                                             
                                                                   
Current assets:                                                    
Cash and cash equivalents                            $ 63,026      $ 83,540
Short-term investments                               1,000         -- 
Accounts receivable                                  45,635        24,523
Value-added tax receivable                           16,683        20,569
Inventory                                            18,463        19,851
Restricted cash                                      24,860        25,129
Prepaid and other current assets                     8,027         5,734
                                                                   
Total current assets                                 177,694       179,346
                                                                   
Property, equipment and construction in progress,    232,665       238,557
net 
Restricted cash                                      41,655        47,670
Other non-current assets                             5,297         5,983
Investment in Ecuador property, net                  585           632
Deferred tax asset                                   56,289        55,242
                                                                   
Total assets                                         $ 514,185     $ 527,430
                                                                   
LIABILITIES AND STOCKHOLDERS' EQUITY                               
                                                                   
Current liabilities:                                               
Accounts payable                                     $ 28,796      $ 21,978
Accrued liabilities                                  34,915        34,013
Other liabilities                                    21,315        21,792
Current income taxes payable                         9,823         10,460
Accrued interest payable                             2,112         5,234
Derivative financial instruments                     2,132         2,984
Current maturity of long-term debt                   24,546        24,046
                                                                   
Total current liabilities                            123,639       120,507
                                                                   
Asset retirement obligation                          2,765         2,708
Other non-current liabilities                        20,755        20,755
Long-term debt, net                                  192,815       197,160
                                                                   
Total long-term liabilities                          216,335       220,623
                                                                   
Commitments and contingencies                                      
                                                                   
Stockholders' equity:                                              
Preferred stock, no par value, 25,000 authorized;    --            -- 
none issued and outstanding 
Common stock, no par value, 250,000 authorized;
117,806 and 116,932
 shares issued and outstanding at March 31, 2013     560,870       560,175
and December 31, 2012,
 respectively 
Accumulated deficit                                  (386,659)     (373,875)
                                                                   
Total stockholders' equity                           174,211       186,300
                                                                   
 Total liabilities and stockholders' equity          $ 514,185     $ 527,430

                      Reconciliation of non-GAAP measure

The table below represents a reconciliation of EBITDAX to the Company's net
income (loss), which is the most directly comparable financial measure
calculated in accordance with generally accepted accounting principles in the
United States of America.

                                                 Three Months
                                                 Ended March 31,
                                                 2013        2012
                                                  (in thousands)          
Net loss                                          $ (12,784)  $ (27,291)
Interest expense                                  4,298       6,210
Income tax expense (benefit)                      330         (4,310)
Depreciation, depletion and amortization expense  6,904       11,506
Geological, geophysical and engineering expense   358         25,221
Loss on derivatives                               548         6,368
EBITDAX (a)                                       $ (346)     $ 17,704

(a) Earnings before interest, income taxes, depletion, depreciation and
amortization, exploration expense and certain non-cash charges ("EBITDAX") is
a non-GAAP financial measure, as it excludes amounts or is subject to
adjustments that effectively exclude amounts, included in the most directly
comparable measure calculated and presented in accordance with GAAP in
financial statements. "GAAP" refers to generally accepted accounting
principles in the United States of America. Non-GAAP financial measures
disclosed by management are provided as additional information to investors in
order to provide them with an alternative method for assessing the Company's
financial condition and operating results. These measures are not in
accordance with, or a substitute for, GAAP, and may be different from or
inconsistent with non-GAAP financial measures used by other companies.
Pursuant to the requirements of Regulation G, whenever the Company refers to a
non-GAAP financial measure, it also presents the most directly comparable
financial measure presented in accordance with GAAP, along with a
reconciliation of the differences between the non-GAAP financial measure and
such comparable GAAP financial measure. Management believes that EBITDAX may
provide additional helpful information with respect to the Company's
performance or ability to meet its debt service and working capital
requirements.

CONTACT: Investor and Media Contact:
         A. Pierre Dubois
         Investor Relations & Corporate Communications
         BPZ Energy
         (281) 752-1240
         pierre_dubois@bpzenergy.com
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