ARD Announces Record Second Quarter Production, Revenues, Net Income, and EPS
Revenues Up 217%, Net Income Up275%, Earnings per Share up 193% and Production up 126.5% Year Over Year
The company 10Q was posted promptly at 4:12pm on Friday afternoon. Arena Resources had the best quarter in the history of the company with Q2'06 results. The Q2 Conference Call is scheduled for Monday, August 7, 2006 - 10:00 AM Central
Some of the highlights are as follows:
*Revenues up 217% YoY
*Revenues up 41.5% QoQ
*Net Income up 275% YoY
*Net Income up 79.8% QoQ
*EPS up 193% YoY
*EPS up 76% QoQ
*Production up 126.5% YoY
*Production up 26.3% QoQ
*Net operating margin 69.9%.
* Net operating margin was up from 62.8% in Q1'06 and 60.8% in Q2'05.
*Net profit margin 43.8%
*Net profit margin was up from 34.5% in Q1'06 and 37% in Q2'05
*Trailing twelve month earnings increase 32% from $0.88 to $1.17
*P/E ttm drops from 42.3 to 31.9 (based on Friday's close of $37.38.)
*Cost per BOE produced is $18.49
*Cost per BOE produced is down from Q1'06 amount of $24.60 but up only slightly from Q2'05 amount of $17.82
*EBIT per BOE produced is $42.43
*EBIT per BOE produced is up from Q1'06 amount of $29.80 and up from Q2'05 amount of $25.67
*Oil production accounted for 86.2% of total production
*Oil average realized price was $64.37
*Gas average realized price was $6.57
*Crude oil production up in all states (TX, NM, OK.)
*Gas production up in TX, NM, OK with the exception of KS.
*Oil production growth driven primarily by Fuhrman-Mascho Field
*Gas production growth driven primarily by Yates Gas Formation in TX.
*ARD topped both the consensus EPS estimate of $0.37 and the high estimate of $0.40 by reporting $0.44
In a July 25, 2006 blogpost I stated, "Also I'd like to say that I"m a bit suspicious of the production figures of 240,000 BOE and $14.5 million in revenue. If ARD really did produce 240,000 BOE then I would have expected something higher than $14.5 given my projection of about 87% production in oil. Unless the Yates Gas formation on the F-M was adding significant amounts of increased incremental BOE then I would have expected the revenue number to be higher. Wouldn't it be a treat if we read the Q2 Earnings to find that revenues were actually closer to $15 million???"
Sure enough, revenues came in at $14.69 million or $190,000 more than estimated. While the revenue number was indeed closer to $14.5 million than $15 million it is interesting to note that the production in the Yates Gas Formation was nearly DOUBLE the previous quarter.
This quarter was absolutely fantastic. ARD is maturing every quarter from a small cap pip-squeak to a soon to be midcap powerhouse. The shares will continue to appreciate in value towards my target price of $60 by year end. Expect analyst upgrades soon. ARD is the best investment out there poised to capitalize on Peak Oil. Fundamentally ARD is second to none. On a valuation basis the company is currently extremely undervalued. Taken together this company will provide shareholders the investment opportunity of a lifetime. The big money will be made by those who hold longterm. Q2'06 was nothing short of an "out of the park home run."
Revenues Up 217%, Net Income Up275%, Earnings per Share up 193% and Production up 126.5% Year Over Year
The company 10Q was posted promptly at 4:12pm on Friday afternoon. Arena Resources had the best quarter in the history of the company with Q2'06 results. The Q2 Conference Call is scheduled for Monday, August 7, 2006 - 10:00 AM Central
Some of the highlights are as follows:
*Revenues up 217% YoY
*Revenues up 41.5% QoQ
*Net Income up 275% YoY
*Net Income up 79.8% QoQ
*EPS up 193% YoY
*EPS up 76% QoQ
*Production up 126.5% YoY
*Production up 26.3% QoQ
*Net operating margin 69.9%.
* Net operating margin was up from 62.8% in Q1'06 and 60.8% in Q2'05.
*Net profit margin 43.8%
*Net profit margin was up from 34.5% in Q1'06 and 37% in Q2'05
*Trailing twelve month earnings increase 32% from $0.88 to $1.17
*P/E ttm drops from 42.3 to 31.9 (based on Friday's close of $37.38.)
*Cost per BOE produced is $18.49
*Cost per BOE produced is down from Q1'06 amount of $24.60 but up only slightly from Q2'05 amount of $17.82
*EBIT per BOE produced is $42.43
*EBIT per BOE produced is up from Q1'06 amount of $29.80 and up from Q2'05 amount of $25.67
*Oil production accounted for 86.2% of total production
*Oil average realized price was $64.37
*Gas average realized price was $6.57
*Crude oil production up in all states (TX, NM, OK.)
*Gas production up in TX, NM, OK with the exception of KS.
*Oil production growth driven primarily by Fuhrman-Mascho Field
*Gas production growth driven primarily by Yates Gas Formation in TX.
*ARD topped both the consensus EPS estimate of $0.37 and the high estimate of $0.40 by reporting $0.44
In a July 25, 2006 blogpost I stated, "Also I'd like to say that I"m a bit suspicious of the production figures of 240,000 BOE and $14.5 million in revenue. If ARD really did produce 240,000 BOE then I would have expected something higher than $14.5 given my projection of about 87% production in oil. Unless the Yates Gas formation on the F-M was adding significant amounts of increased incremental BOE then I would have expected the revenue number to be higher. Wouldn't it be a treat if we read the Q2 Earnings to find that revenues were actually closer to $15 million???"
Sure enough, revenues came in at $14.69 million or $190,000 more than estimated. While the revenue number was indeed closer to $14.5 million than $15 million it is interesting to note that the production in the Yates Gas Formation was nearly DOUBLE the previous quarter.
This quarter was absolutely fantastic. ARD is maturing every quarter from a small cap pip-squeak to a soon to be midcap powerhouse. The shares will continue to appreciate in value towards my target price of $60 by year end. Expect analyst upgrades soon. ARD is the best investment out there poised to capitalize on Peak Oil. Fundamentally ARD is second to none. On a valuation basis the company is currently extremely undervalued. Taken together this company will provide shareholders the investment opportunity of a lifetime. The big money will be made by those who hold longterm. Q2'06 was nothing short of an "out of the park home run."
posted by -Aztec- at 10:52 PM
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