Toreador Triumphs with Doubled Q2 Revenues

Toreador announced second quarter 2008 revenues almost doubled to approximately $19.9 million from $10.0 million in the same period last year primarily due to higher realized prices for oil and gas and increased natural gas production offshore Turkey. For the quarter ended June 30, 2008, Toreador reported earnings before interest, taxes, depreciation, amortization, and exploration expense (EBITDAX, a non-GAAP measure(a)) of $7.9 million compared to $4.4 million for the same period last year.

Toreador recorded an operating loss in the second quarter of 2008 of $63.7 million, compared to an operating loss of $10.2 million in the same period last year. The expenses largely contributing to the operating loss were an asset impairment charge of $53.5 million which is a result of entering into a letter of intent to sell 26.75% out of our 36.75% interest in the Turkish Black Sea assets. Management made the determination that the aggregate net book value of those assets was in excess of the fair value of those assets, based on the announced selling price of $80.25 million. Also contributing to the loss was the high depreciation, depletion and amortization (DD&A) expenses associated with Turkish natural gas production, as well as separation and legal expenses associated with the previously disclosed resignation of certain members of the exploration staff.

For the three months ended June 30, 2008, the company reported a loss available to common shares of $65.8 million, or $3.33 per share, compared to a loss available to common shares of $25.1 million in the second quarter of 2007, or $1.32 per share.

Diluted weighted average shares outstanding in the second quarter of 2008 were 19.7 million, compared to 19.0 million diluted weighted average shares outstanding in the second quarter of 2007.

For the six months ended June 30, 2008 Toreador recorded revenues of $33.8 million, more than doubling revenues of $16.8 million for the first six months of 2007. EBITDAX (a non-GAAP measure(a)) for the first half of 2008 improved to $14.0 million from $6.4 million in the same period last year.

Toreador recorded an operating loss of $66.2 million in the first half of 2008, primarily due to asset impairment charges and high DD&A expenses associated with Turkish natural gas production. A loss available to common shares of $70.2 million, or $3.56 a share, was recorded in the first half of 2008 compared to a loss of $33.9 million, or $1.93 a share, in the first half of 2007.

Diluted weighted average shares outstanding in the first half of 2008 were 19.7 million compared to 17.5 million in the first half of 2007.
 

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