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Benton Oil and Gas Announces 2001 Financial Results; - Discretionary Cash Flow of $28.2 Million - Total Year End Proved Reserves of 113 Million Barrels - Repositioned Company to Be Called Harvest Natural Resources, Inc.

Article Excerpt
HOUSTON -- Benton Oil and Gas Company today announced unaudited net income of $8.2 million, or $0.24 per diluted share, and discretionary cash flow of $33.9 million, or $1.00 per diluted share for 2001, before the nonrecurring items described below. This compares with net income of $16.5 million, or $0.53 per diluted share, and discretionary cash flow of $47.0 million, or $1.53 per diluted share for 2000 before extraordinary items described below.

Net income for 2001 was $43.2 million, or $1.27 per diluted share, and discretionary cash flow of $28.2 million, or $0.83 per diluted share. This performance compared with 2000 net income of $20.5 million, or $0.66 per diluted share, and discretionary cash flow of $47.3 million, or $1.53 per diluted share. Discretionary cash flow was down in 2001 primarily due to lower oil prices and certain nonrecurring items, which affected both 2000 and 2001. Net income increased primarily due to the reversal of a $42.4 million deferred tax asset valuation allowance related to net operating loss carryforwards. The expected closing of the previously announced sale of the 68 percent interest in Arctic Gas Company should enable the Company to realize the carryforwards.

Benton had $11.4 million ($7.4 million after tax and minority interest) of previously announced nonrecurring charges in 2001 and extraordinary income of $4 million in 2000.

The Company will also record an increase of $11.0 million to stockholders' equity to reflect the utilization of net operating loss carryforwards on stock option exercises. As a result of the Company's earnings and this adjustment, stockholders' equity will increase $54.7 million to $67.6 million.

Benton Oil and Gas Company President and Chief Executive Officer, Dr. Peter J. Hill, said, "This year 2001 was critically important to re-establishing Benton's financial flexibility and operating profile. We initiated a number of actions to substantially reposition our company for the future. Early in the year, we laid out two strategic priorities: (1) to deleverage the balance sheet, thereby preserving shareholder value,...