Evergreen boosts gas production in fourth quarter

Allen Baker

Evergreen Resources Inc. had fourth quarter earnings of $5.3 million, down 29 percent from the $7.5 million the coalbed methane producer earned in the same quarter a year ago.

Full-year profits were a record $38.5 million, more than double 2000’s figure of $14.1 million.

Revenues were down 13 percent to $24.1 million for the fourth quarter despite a production increase of 25 percent. Revenues for the year rose 103 percent to $119.7 million.

Net gas sales were 94.5 million cubic feet daily in the quarter, up from 75.5 million in the same quarter of 2000. The Denver-based company had 681 net wells at the end of 2001, compared with 491 a year earlier.

Average gas price in the fourth quarter was $2.77 per thousand cubic feet, a 31 percent drop from $3.99 in the last quarter of 2000.

Evergreen plans to drill 152 new wells in its Raton Basin field in Colorado, and has completed 36 of them already. The company plans $106 million in capital spending this year, $87 million in the Raton Basin, $10 million in the United Kingdom and Ireland, and $8.7 million on other domestic projects.

Alaska was not mentioned specifically.

In the earnings report, the company said it was looking at reducing the capital budget due to current gas prices and estimated debt levels.

In 2001, the company replaced 672 percent of production at a cost of 51 cents per thousand cubic feet.