My Cash Cow ?
HEC....
Harken Energy Reports 2005 Net Income of $42.4 Million
2005 Revenues Increase 35%, Operating Margin Increases 26%
February 28, 2006 4:24 PM ET
DALLAS, TX, Feb 28, 2006 (MARKET WIRE via COMTEX) -- Harken Energy Corporation (HEC) reported Net Income of $42.4 million, or $0.19 per share, $0.18 per share on a fully diluted basis, for its year ended December 31, 2005. Total revenues in 2005 increased to $40.1 million, an increase of 35% over 2004, due primarily to a continued increase in international production and higher oil and gas prices. Non-GAAP Operating Margin increased to approximately $16 million in 2005, representing 26% growth over the prior year.
Year Ended December 31, ---------------------------- 2004 2005 ------------ ------------Total revenues and other: 29,742,000 40,134,000Oil and gas operating expenses 7,964,000 10,663,000General and administrative expenses, net 9,222,000 13,702,000 ------------ ------------ Operating Margin (Non-GAAP; see reconciliation below) 12,556,000 15,769,000Depreciation and amortization 10,713,000 11,369,000Share-based compensation expense * 5,866,000 6,406,000Increase in Global warrant liability 14,207,000 13,297,000Accretion expense 388,000 384,000Interest expense and other, net 414,000 1,489,000Gain on exercise of Global warrants - (28,341,000)Gains from extinguishments of debt (155,000) -Gain on sale of subsidiary shares - (32,452,000)Gain on sale of investment (990,000) -Income tax expense 579,000 733,000Minority interest of subsidiary (572,000) (96,000) ------------ ------------Net income/(loss) $(17,894,000) $ 42,980,000 ============ ============Accrual of dividends related to preferred stock (2,884,000) (914,000)Exchange of preferred stock (1,123,000) -Payment of preferred stock dividends 3,492,000 327,000 ------------ ------------Net income / (loss) attributed to common stock $(18,409,000) $ 42,393,000 ============ ============Basic net income / (loss) per common share $ (0.09) $ 0.19Basic weighted average common shares outstanding 201,702,235 219,369,798Diluted net income/(loss) per common share $ (0.09) $ 0.18Diluted weighted average common shares outstanding 201,702,235 243,634,909* For reporting in our Annual Report on Form 10-K for the year ended December 31, 2005, Share-Based Compensation Expense is included with General and Administrative Expenses, net
Balance Sheet Summary
As the ratios below show, Harken has improved its Working Capital by over 107% since year-end 2004 to approximately $45.1 million at December 31, 2005. During 2005, Harken simplified its capital structure while seeking to increase the value of its investments in oil and gas assets. During the year ended December 31, 2005, Harken retired preferred stock with a liquidation value of $15 million.
December 31, December 31, 2004 2005 ------------ ------------ * *Current ratio (1) 2.54 to 1 4.13 to 1Total debt to equity 0.17 to 1 0.14 to 1Working capital (2) $ 21,845,000 $ 45,163,000Cash and investments $ 28,632,000 $ 46,235,000Total debt $ 8,578,000 $ 12,500,000Total cash and investments less debt $ 20,054,000 $ 33,735,000Stockholders' equity $ 51,102,000 $ 92,162,000 (1) Current ratio is calculated as current assets divided by current liabilities (2) Working capital is the difference between current assets and current liabilities * Derived from audited financial statements
(Voluntary Disclosure: ST Rating- Buy; LT Rating- Buy)
