Toreador Reports Says 3Q05 Income Up 7.9%

Toreador Resources (Nasdaq: TRGL) reports financial results for the third quarter of 2005. Highlights include:
  • EBITDAX (a non-GAAP financial measure reconciled below) of $5.3 million, up 80.3% from the third quarter of 2004
  • Operating income of $1.7 million, up 7.9% from the same period in 2004
  • Total revenues of $8.8 million, up 55.7% from the third quarter of 2004

For the third quarter of 2005, Toreador reported income available to common shares, excluding dry hole expense, of $2.5 million (a non-GAAP financial measure reconciled below). Dry hole expense of $1.5 million in the third quarter of 2005 was primarily due to the unsuccessful Boyabat-1 well in the Sinop permit onshore Turkey. Including dry hole expense, Income available to common shares in the third quarter of 2005 was $1.0 million, or $0.07 per diluted share, compared to $1.7 million in the third quarter of 2004, or $0.15 per diluted share. Diluted weighted average shares outstanding in the third quarter of 2005 were 15.6 million, compared to 13.4 million diluted weighted average shares outstanding in the third quarter of 2004.

In the third quarter of 2005, Toreador incurred a $1.2 million deferred tax adjustment in France due to the exhaustion of net operating loss carryovers. Excluding the deferred tax adjustment and dry hole costs, income available to common shares in the third quarter of 2005 would have been $3.8 million (a non-GAAP financial measure reconciled below). The combined dry hole expense and deferred tax adjustment resulted in a negative impact of $0.17 per diluted share (a non-GAAP financial measure reconciled below).

Operating income in the third quarter of 2005 was $1.7 million, compared to operating income of $1.6 million in the third quarter of 2004. Total revenues for the three months ended September 30, 2005 were $8.8 million, compared to $5.6 million for the same period in 2004. The increase was primarily due to significantly higher realized prices for both oil and natural gas in the third quarter of 2005, which was $55.39 per barrel of oil equivalent (BOE), compared to realized prices of $37.21 per BOE in the third quarter of 2004.

Earnings before interest, taxes, depreciation, amortization and exploration expense (EBITDAX, a non-GAAP financial measure reconciled below) was $5.3 million in the three months ended September 30, 2005 compared to $2.9 million for the three months ended September 30, 2004.

"The third quarter of 2005 produced another period of solid growth in EBITDAX and revenues as we continue to develop our international prospects," said G. Thomas Graves III, President and Chief Executive Officer of Toreador. "Our exploration and development activities in France, Romania, Hungary and Turkey should add significant production volumes of both oil and natural gas in the next few quarters, and we are continuing to advance towards our goal of realizing first production in the second half of next year from our South Akcakoca Sub-Basin natural gas project offshore Turkey."

In the third quarter of 2005, Toreador's oil and gas production was approximately 159,000 BOE compared to 169,000 BOE during the same period last year. The nominal decrease was primarily due to natural declines in production.

The average realized price of oil in the third quarter of 2005 was $56.42 per barrel compared to $38.24 per barrel in the third quarter of 2004, an increase of 47.5%. The average realized price of natural gas in the quarter ended September 30, 2005 was $8.20 per million cubic feet, compared to $5.24 per million cubic feet for the same period last year, an increase of 56.5%.

Nine Month Results

For the nine months ended September 30, 2005, Toreador reported income available to common shares, excluding dry hole expense of $1.5 million, of $5.4 million (a non-GAAP financial measure reconciled below). Including dry hole expense, Income available to common shares for the first nine months of 2005 was $3.9 million, or $0.27 per diluted share, compared to income available to common shares of $24.7 million, or $2.04 per diluted share, for the same period last year. In 2004 the sale of oil and gas properties resulted in income from discontinued operations of $18.4 million, or $1.48 per diluted share. Weighted average diluted shares for the nine months ended September 30, 2005 were 14.9 million, compared to 12.4 million for the same period last year.

Operating income for first nine months of 2005 was $4.6 million compared to $2.2 million for the first nine months of 2004. Total revenues for the nine months ended September 30, 2005 were $22.3 million compared to $14.6 million for the nine months ended September 30, 2004.

For the first nine months of 2005, Toreador's oil and gas production was approximately 462,000 BOE compared to approximately 470,000 BOE for the first nine months of 2004. The average realized price of oil for the nine months ended September 30, 2005 was $49.20 per barrel, compared to $33.44 per barrel for the same period in the prior year, an increase of 47.1%. The average realized price of natural gas for the first nine months of 2005 was $7.04 per million cubic feet compared to $5.58 per million cubic feet for the first nine months of 2004, an increase of 26.2%.

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