Bois d'Arc's net income for the three months ended December 31, 2006, was $11.9 million or $0.18 per diluted share as compared to 2005's fourth quarter net income of $10.4 million or $0.16 per diluted share. For the fourth quarter of 2006, Bois d'Arc's oil and gas sales increased by 36% to $66.3 million as compared to $48.8 million in the three months ended December 31, 2005.
Production in the fourth quarter of 2006 set a new corporate record at 8.9 billion cubic feet equivalent of natural gas ("Bcfe"), an increase of 104% over production of 4.4 Bcfe for the same period in 2005. 2005's fourth quarter production was impacted by last year's hurricanes which caused the deferral of approximately 2.2 Bcfe of production in that quarter. Prices realized by the Company during the fourth quarter of 2006 averaged $6.78 per Mcf of natural gas and $57.77 per barrel of oil as compared to $11.67 per Mcf of natural gas and $59.29 per barrel of oil in 2005's fourth quarter.
For the three months ended December 31, 2006, Bois d'Arc generated $45.0 million of operating cash flow (before changes in working capital accounts) an increase of 54% over the $29.2 million generated in the fourth quarter of 2005. EBITDAX or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses increased 45% to $50.1 million in the fourth quarter of 2006 as compared to $34.5 million in the fourth quarter of 2005.
For the year ended December 31, 2006, Bois d'Arc reported net income of $55.0 million or $0.84 per diluted share as compared to pro forma net income of $47.2 million ($0.79 per diluted share) for the year ended December 31, 2005. The pro forma earnings for the year of 2005 give effect to income taxes as if the Company has been taxed as a corporation prior to May 11, 2005 and exclude the one-time charge of $108.2 million to establish a deferred income tax liability on the date Bois d'Arc became taxable. Oil and gas sales for 2006 increased 38% to $254.7 million as compared to $184.4 million for the year ended December 31, 2005. Production in 2006 totaled 31.5 Bcfe, an increase of 44% over production of 21.8 Bcfe for 2005. Production of 3.6 Bcfe and 4.3 Bcfe was deferred during the years ended December 31, 2006 and 2005, respectively, due to the 2005 hurricanes. Prices realized by the Company during the year ended December 31, 2006 averaged $7.13 per Mcf of natural gas and $64.66 per barrel of oil as compared to $8.28 per Mcf of natural gas and $52.88 per barrel of oil in 2005. Bois d'Arc's operating cash flow (before changes in working capital accounts) for the year ended December 31, 2006, increased 47% to $181.2 million as compared to $123.2 million in the same period in 2005. EBITDAX increased 37% to $197.2 million in 2006 as compared to $143.9 million for 2005.
Bois d'Arc made capital expenditures of $244.6 million during 2006 for its acquisition, exploration and development activities and spent an additional $4.6 million on geological and geophysical costs primarily for 3-D seismic data acquisition. Bois d'Arc successfully replaced 166% of 2006's production primarily through its 2006 drilling program. Successful results from its 2006 exploration activities added approximately 87 Bcfe of new proved and probable oil and natural gas reserves. In 2006, Bois d'Arc drilled ten (8.7 net) successful wells out of a total of 13 (11.2 net) wells drilled with three (2.5 net) dry holes. The largest discoveries made in 2006 included a well drilled at South Pelto 22, which proved up the "Sockeye" prospect and a discovery at Ship Shoal block 111, which proved up the "Steelhead" prospect.
During the fourth quarter of 2006, Bois d'Arc drilled two successful exploratory wells. Bois d'Arc made a discovery at Ship Shoal block 166 with the OCS-G5549 #4 well which was drilled to a depth of 15,709 feet and encountered 72 net feet of pay sands in two commercial reservoirs. A third prospective target was not tested due to drilling problems encountered with the well. First production from this well is anticipated by the second quarter with the installation of a production facility. The second successful well was drilled at South Timbalier block 111.
Bois d'Arc Energy is a growing independent exploration company engaged in the discovery and production of oil and natural gas in the Gulf of Mexico.
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