Louis Dreyfus Announces Second Quarter Results



Louis Dreyfus Natural Gas Corp. announced record financial results for the quarter ended June 30, 2001. The Company reported net income of $47.8 million, or $1.07 per share, on revenues of $157.4 million for the second quarter of 2001. This compares to net income of $9.1 million, or $.22 per share, on revenues of $88.0 million for the second quarter of 2000. Net income excluding the non-cash impact of SFAS 133 derivative accounting was $47.9 million, or $1.07 per share, for the second quarter of 2001 and $16.5 million, or $.39 per share, for the second quarter of 2000.

Cash flows from operating activities (before working capital changes) for the second quarter of 2001 grew 72% to $111.9 million compared to $64.9 million for the second quarter of 2000. EBITDAX for the quarter ended June 30, 2001 improved 66% to $124.6 million compared to EBITDAX of $74.9 million for the prior year quarter.

The improvement in earnings and operating cash flows for the second quarter of 2001, which was record performance relative to any previous second quarter in the Company's history, was primarily the result of higher natural gas and crude oil prices and higher production compared to the second quarter of 2000.

Total average daily production for the second quarter of 2001 increased 5% to 376 MMcfe compared to 357 MMcfe for the prior year quarter. Natural gas production for the second quarter of 2001 increased 4% to 325 MMcf per day, compared to 312 MMcf per day for the second quarter of 2000. Natural gas production represented 87% of total oil and gas production for both periods. Daily oil production for the second quarter of 2001 was 8,378 barrels, an increase of 10% compared to 7,582 barrels for the second quarter of 2000.

Second quarter 2001 natural gas prices averaged $4.62 per Mcf, an increase of 58% compared to $2.92 per Mcf for the prior year second quarter. Oil prices for the Company's second quarter production averaged $25.80 per barrel, a 9% increase compared to $23.67 per barrel for the second quarter of 2000. These prices include the results of the Company's realized hedging activities.

For the six months ended June 30, 2001, Louis Dreyfus Natural Gas reported net income of $121.2 million, or $2.71 per share, on revenues of $369.4 million. This compares to net income of $17.9 million, or $.43 per share, on revenues of $168.5 million for the first six months of 2000. Net income excluding the non-cash impact of SFAS 133 derivative accounting was $119.3 million, or $2.67 per share, for the six months ended June 30, 2001, and $30.4 million, or $.73 per share, for the six months ended June 30, 2000.

Cash flows from operating activities (before working capital changes) for the first six months of 2001 grew 109% to $250.3 million compared to $120.0 million for the first six months of 2000. EBITDAX for the first six months of 2001 improved 111% to $296.2 million, compared to EBITDAX of $140.3 million for the prior year quarter.