Remington Oil and Gas Announces Financial Results for the Fourth Quarter and Full Year 2004 DALLAS, March 7 /PRNewswire-FirstCall/ -- Remington Oil and Gas Corporation (NYSE:REM) announced record financial results for the fourth quarter and year ended December 31, 2004. Three Months Ended Years Ended December 31, December 31, ($ in thousands, except income per share) 2004 2003 2004 2003 Total revenues $69,488 $47,746 $234,129 $183,052 Net income $19,370 $8,904 $60,996 $42,924 Basic net income per share $0.70 $0.33 $2.23 $1.61 Diluted income per share $0.67 $0.32 $2.14 $1.53 Cash flow provided by operations $60,091 $64,233 $188,582 $153,215 Production (Bcfe) 10.4 9.7 38.1 34.8 Revenues for the three months ended December 31, 2004, increased by $21.7 million to $69.5 million and for the full year revenues increased by $51.1 million to $234.1 million. Net income for the three months ended December 31, 2004, increased by $10.5 million to $19.4 million, or $0.67 diluted income per share, and net income for the year ended December 31, 2004, increased by $18.1 million to $60.1 million, or $2.14 diluted income per share. Cash flow from operations was $60.1 million and $188.6 million for the three months and full year ended December 31, 2004, respectively. The increases in net income and cash flow from operations year-over-year reflects the higher revenues principally from a 9.5% increase in production volumes, and a combination of a 34% increase in average oil prices to $39.37/Bbl and a 11% increase in average gas prices to $5.97/Mcfe. Oil and gas production for the three months ended December 31, 2004, increased by 7.2% to 10.4 Bcfe compared to 9.7 Bcfe for the same three months of 2003. For the full year 2004, oil and gas production increased by 9.5% to 38.1 Bcfe in 2004 compared to 34.8 Bcfe in 2003. Production for both the fourth quarter and the full year represent the highest volumes ever achieved for the given periods in the company's history. The following table reflects our primary costs per Mcfe produced: Three Months Ended Years Ended December 31, December 31, 2004 2003 2004 2003 Lease operating expense (LOE) $0.59 $0.61 $0.66 $0.60 General and administrative (G&A) $0.31 $0.29 $0.21 $0.24 Interest and financing $0.01 $0.03 $0.02 $0.05 Depreciation, depletion and amortization (DD&A) $2.08 $1.77 $1.91 $1.60 Lease operating expenses (LOE) were $0.59/mcfe produced for the quarter and $0.66 for the full year or 10% above full year 2003 levels. General and administrative expenses (G&A) were $0.31 per /Mcfe produced for the 4th quarter and $0.21 for the full year or 12.5% below full year 2003 levels. Interest and financing costs were $0.02 per Mcfe for the year or $0.03 below 2003 levels reflecting repayment of all the company's bank debt during 2004. Depletion, depreciation and amortization (DD&A) for the quarter was $2.08 per Mcfe produced versus $1.77 for the same quarter of 2003. For the year DD&A was $1.91 versus $1.60 for all of 2003. These increases reflect higher finding and development costs in the Gulf of Mexico. On an Mcfe basis commodity prices received in 2004 averaged $6.13 versus $5.25 in 2003. Dry hole costs for 2004 were $12.8 million versus $24.0 million in 2003. Property impairment increased from $4.4 million in 2003 to $10.9 million in 2004. Included in the 2004 impairment is $1.1 million for unproved properties and $9.8 million on proved properties. As part of successful-efforts accounting, properties are evaluated individually for impairment. Impairment occurs when properties deplete sooner than predicted or capital costs exceed the future value of the properties. Year-End 2004 Proved Reserves Year-end 2004 proved reserves, as audited by Netherland, Sewell & Associates, Inc., were 16.9 million barrels of oil and 150.7 billion cubic feet of gas or 252.1 billion cubic feet of gas equivalents. This compares with 212.1 billion cubic feet of gas equivalents at year-end 2003. Proved developed reserves at year-end 2004 were 51.8% of the total reserves compared to 56% year-end 2003. As of March 4, 2005, our proved developed reserves were 60% of the total proved reserves. Gas accounted for 60% of these reserves and oil 40% at year-end 2004 compared to 67% gas and 33% oil year-end 2003. The following table reflects the capital invested and Proved reserve additions for the year ended December 31, 2004: (Bcfe) Beginning Reserves 212.1 Production (38.1) Reserve Additions 79.7 Reserve Revisions (1.6) Ending Reserves 252.1 Capital Costs (MM$) 158.5 Financial and Operational Guidance for 2005 The following table reflects 2005 guidance for our estimates of our primary costs per Mcfe produced. Changes in this guidance may occur with operating results during the year. $/Mcfe LOE 0.65 - 0.75 G&A 0.21 - 0.28 Financing 0.01 - 0.02 DD&A 2.00 - 2.15 Dry hole expense for 2005 is anticipated to be between $25 and $30 million. Production guidance for the first six months of 2005 is 19.0-21.0 Bcfe. Based on historical winter weather patterns during the late 4th and 1st quarters, production volumes for the 1st quarter 2005 are anticipated to be seasonally lower than 4th quarter 2004, while the 2nd quarter volumes are expected to increase as new production is brought on line from new discoveries made in 2004. The Company's objective for 2005 is to increase production and reserves approximately 15% over 2004 levels from its ongoing exploration and development program at economically attractive finding and development costs. Remington Oil and Gas Corporation is an independent oil and gas exploration and production company headquartered in Dallas, Texas, with operations concentrating in the onshore and offshore regions of the Gulf Coast. Statements concerning future revenues and expenses, production volumes, results of exploration, exploitation, development, acquisition and operations expenditures, and prospective reserve levels of prospects or wells are forward-looking statements. Prospect size and reserve levels are often referred to as "potential" or "un-risked" reserves and are based on the Company's internal estimates from the volumetric calculations or analogous production. Other forward-looking statements are based on assumptions concerning commodity prices, drilling results, recovery factors for wells, production rates, and operating, administrative and interest costs that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business, mechanical, political, environmental, and geologic risks. There is no assurance that these goals, projections, costs, expenses, reserve levels, and production volumes can or will be met. Further information is available in the Company's filings with the Securities and Exchange Commission, which are herein incorporated by this reference. Information in this document should be reviewed in combination with the Company's filings with the Securities and Exchange Commission and information available on the Company's website at http://www.remoil.net/. REMINGTON OIL AND GAS CORPORATION CONSOLIDATED BALANCE SHEETS (In thousands, except share data) At December 31, 2004 2003 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 58,659 $ 31,408 Accounts receivable 49,582 43,004 Prepaid expenses and other current assets 5,350 2,846 Total current assets 113,591 77,258 Properties Oil and gas properties (successful-efforts method) 744,215 609,599 Other properties 3,145 3,450 Accumulated depreciation, depletion and amortization (409,591) (333,011) Total properties 337,769 280,038 Other assets Other assets 1,754 2,089 Total other assets 1,754 2,089 Total assets $ 453,114 $ 359,385 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable and accrued expenses $ 69,339 $ 58,311 Total current liabilities 69,339 58,311 Long-term liabilities Notes payable - 18,000 Asset retirement obligations 16,030 12,446 Deferred income taxes 53,785 28,751 Total long-term liabilities 69,815 59,197 Total liabilities 139,154 117,508 Commitments and contingencies Stockholders' equity Preferred stock, $0.01 par value, 25,000,000 shares authorized Shares issued - none Common stock, $.01 par value, 100,000,000 shares authorized, 27,883,698 shares issued and 27,849,339 shares outstanding in 2004, 26,946,768 shares issued and 26,912,409 shares outstanding in 2003 279 269 Additional paid-in capital 132,334 120,925 Restricted common stock 6,749 3,156 Unearned compensation (5,593) (1,668) Retained earnings 180,191 119,195 Total stockholders' equity 313,960 241,877 Total liabilities and stockholders' equity $ 453,114 $ 359,385 REMINGTON OIL AND GAS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per-share amounts and prices) Three Months Ended Years Ended December 31, December 31, 2004 2003 2004 2003 (Unaudited) (Unaudited) (Unaudited) Revenues Gas sales $50,014 $33,918 $167,564 $ 130,346 Oil sales 19,267 13,709 65,941 52,233 Interest income 150 46 349 161 Gain on sale of assets and other income 57 73 275 312 Total revenues 69,488 47,746 234,129 183,052 Costs and expenses Operating costs and expenses 6,153 5,919 25,013 20,910 Exploration expenses 6,583 4,745 22,551 25,416 Depreciation, depletion and amortization 21,543 17,095 72,810 55,694 Impairment of oil and gas properties 2,468 2,693 10,876 4,447 General and administrative 3,235 2,774 8,053 8,408 Interest and financing expense 111 317 894 1,635 Total costs and expenses 40,093 33,543 140,197 116,510 Income before taxes 29,395 14,203 93,932 66,542 Income tax expense 10,025 5,299 32,936 23,618 Net income $19,370 $8,904 $60,996 $42,924 Basic income per share $0.70 $0.33 $2.23 $1.61 Diluted income per share $0.67 $0.32 $2.14 $1.53 Average shares outstanding Basic 27,773 26,868 27,408 26,628 Diluted 28,882 28,088 28,441 27,987 Production Gas (MMcf) 7,868 6,871 28,057 24,149 Oil (MBbls) 417 467 1,675 1,775 Mcfe (1 barrel of oil is equivalent to 6 Mcf of gas) 10,370 9,673 38,107 34,799 Average prices Gas $6.36 $4.94 $5.97 $5.40 Oil $46.20 $29.36 $39.37 $29.43 REMINGTON OIL AND GAS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Years Ended December 31, 2004 2003 (Unaudited) Cash flow provided by operations Net income $60,996 $42,924 Adjustments to reconcile net income Depreciation, depletion, and amortization 72,810 55,694 Deferred income tax expense 25,034 23,443 Amortization of deferred finance charges 183 207 Impairment of oil and gas properties 10,876 4,447 Dry hole costs 12,787 23,993 Cash paid for dismantlement and restoration liability (1,712) (1,631) Stock based compensation 1,427 1,565 Tax benefit from exercise of employee stock options 4,083 - Changes in working capital (Increase) in accounts receivable (6,570) (10,483) Decrease (increase) in prepaid expenses and other current assets (2,360) 2,313 Increase in accounts payable and accrued expenses 11,028 10,743 Net cash flow provided by operations 188,582 153,215 Cash from investing activities Payments for capital expenditures (148,908) (115,714) Net cash (used in) investing activities (148,908) (115,714) Cash from financing activities Payments on notes payable and other long-term payables (18,000) (22,573) Purchase common stock (645) (809) Commitment fee on line of credit - (293) Common stock issued 6,222 2,653 Net cash (used in) financing activities (12,423) (21,022) Net increase in cash and cash equivalents 27,251 16,479 Cash and cash equivalents at beginning of period 31,408 14,929 Cash and cash equivalents at end of period $ 58,659 $31,408 Cash paid for interest $948 $1,702 Cash paid for taxes $580 $175 DATASOURCE: Remington Oil and Gas Corporation CONTACT: Steven J. Craig, Sr. Vice President, +1-214-210-2675, for Remington Oil and Gas Corporation Web site: http://www.remoil.net/

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