Dry Holes Eat Away at Delta's Full-Year Gains
For the year ended December 31, 2007, Delta Petroleum reported total production of 17.8 billion cubic feet of natural gas equivalents (Bcfe). Production for the year ended increased 10% when compared to the prior year. Total revenue increased 12% to $164.2 million for the year ended December 31, 2007, compared with $146.7 million in the year ended December 31, 2006.The Company reported a net loss for the year ended December 31, 2007 of $149.3 million, or ($2.44) per diluted share, compared with net income of $435,000, or $0.01 per diluted share, for the year ended December 31, 2006.
Net loss increased significantly due to a $49.6 million increase in valuation allowance required to be recorded against the Company's deferred tax assets beginning in the second quarter of 2007, significant impairments and dry hole costs during 2007 which totaled $85.1 million and non-cash equity compensation of $15.9 million.
EBITDAX totaled $83.0 million for the year ended December 31, 2007, compared with $76.4 million for the year ended December 31, 2006. Discretionary cash flow increased 24% to $75.0 million, versus $60.5 million in the comparable 2006 quarter.