Brigham Exploration Company (BEXP, Financial) filed Quarterly Report for the period ended 2009-09-30.
Brigham Exploration Co. is an independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore oil and natural gas provinces in the United States. The company focuses its activity inprovinces where it believes 3-D technology may be effectively applied to generate relatively large potential reserve volumes per well and per fieldhigh potential production rates and multiple producing objectives. Brigham Exploration Company has a market cap of $843.54 million; its shares were traded at around $10.18 with and P/S ratio of 6.6. Brigham Exploration Company had an annual average earning growth of 11.7% over the past 5 years.
Our third quarter 2009 oil and natural gas revenues, including hedge settlements but excluding unrealized hedging gains and losses, were down $10.6 million, or 36%, compared to that in the third quarter 2008. Oil revenues in the third quarter 2009, including hedge settlements but excluding unrealized hedging gains and losses, increased $0.1 million from that in the third quarter 2008. Higher production volumes and hedge settlements increased oil revenues by $12.0 million and $0.5 million, respectively, while lower oil prices decreased oil revenues by $12.4 million. Natural gas revenues in the third quarter 2009, including hedge settlements but excluding unrealized hedging gains and losses, decreased $10.7 million
compared to that in the third quarter 2008. Lower natural gas prices and reduced production volumes decreased natural gas revenues $9.4 million and $3.2 million, respectively, while higher hedge settlements increased revenues by $1.9 million.
As of September 30, 2009, we had $74.7 million in cash, cash equivalents and investments and $418.8 million in total assets.
In October 2009, we completed a public offering of common stock pursuant to our universal shelf registration statement. We sold 16,000,000 shares at a price of $10.50 per share and received net proceeds of $159.9 million, after underwriting fees and offering expenses. We intend to use the proceeds from this offering to fund a portion of our initial 2010 exploration and development budget, which consists primarily of our drilling programs in the Williston Basin that target both the Bakken and Three Forks objectives. Pending use of the net proceeds to fund our exploration and development budget, we used a portion of the net proceeds to repay the outstanding indebtedness under our Senior Credit Facility. We intend to re-borrow under our Senior Credit Facility in 2010 to fund exploration and development costs as they are incurred.
Subsequent to our October equity offering, our 2009 budget is anticipated to remain roughly in line with the budget announced in May 2009, as our lower working interest in wells as a result of our Rough Rider drilling participation agreement offsets the increased number of wells we will drill during the remainder of 2009. We anticipate setting our initial 2010 exploration and development budget at $175.8 million, which would include $169.4 million in drilling and $6.4 million in land capital. The increase in our drilling capital would be used to fund the drilling of 24 net horizontal wells in the Williston Basin. We currently anticipate the 24 net wells would be comprised of 21 net operated wells and three net non-operated wells. The majority of our drilling activity in 2010 would occur in our core developmental acreage positions in our Rough Rider and Ross project areas in Williams, McKenzie and Mountrail Counties, North Dakota. We also anticipate drilling a horizontal Bakken well in our Ghost Rider project area in Roosevelt County, Montana. Finally, our initial 2010 budget currently includes two net wells in our South Texas Vicksburg play in Brooks County, Texas.
Read the The complete ReportBEXP is in the portfolios of George Soros of Soros Fund Management LLC.
Brigham Exploration Co. is an independent exploration and production company that applies 3-D seismic imaging and other advanced technologies to systematically explore and develop onshore oil and natural gas provinces in the United States. The company focuses its activity inprovinces where it believes 3-D technology may be effectively applied to generate relatively large potential reserve volumes per well and per fieldhigh potential production rates and multiple producing objectives. Brigham Exploration Company has a market cap of $843.54 million; its shares were traded at around $10.18 with and P/S ratio of 6.6. Brigham Exploration Company had an annual average earning growth of 11.7% over the past 5 years.
Highlight of Business Operations:
Third quarter 2009 oil and natural gas prices, excluding realized and unrealized derivative hedging results, decreased 47% and 66%, respectively, from that in the third quarter 2008. In the third quarter 2009, the average sales price that we received for oil, excluding realized and unrealized derivative hedging results, was $59.74 per barrel, which represents a $52.86 per barrel decrease from that in the third quarter 2008. In the third quarter 2009, the average sales price that we received for natural gas, excluding realized and unrealized derivative hedging results, was $3.38 per Mcf, which represents a $6.70 per Mcf decrease from that in the third quarter 2008.Our third quarter 2009 oil and natural gas revenues, including hedge settlements but excluding unrealized hedging gains and losses, were down $10.6 million, or 36%, compared to that in the third quarter 2008. Oil revenues in the third quarter 2009, including hedge settlements but excluding unrealized hedging gains and losses, increased $0.1 million from that in the third quarter 2008. Higher production volumes and hedge settlements increased oil revenues by $12.0 million and $0.5 million, respectively, while lower oil prices decreased oil revenues by $12.4 million. Natural gas revenues in the third quarter 2009, including hedge settlements but excluding unrealized hedging gains and losses, decreased $10.7 million
compared to that in the third quarter 2008. Lower natural gas prices and reduced production volumes decreased natural gas revenues $9.4 million and $3.2 million, respectively, while higher hedge settlements increased revenues by $1.9 million.
As of September 30, 2009, we had $74.7 million in cash, cash equivalents and investments and $418.8 million in total assets.
In October 2009, we completed a public offering of common stock pursuant to our universal shelf registration statement. We sold 16,000,000 shares at a price of $10.50 per share and received net proceeds of $159.9 million, after underwriting fees and offering expenses. We intend to use the proceeds from this offering to fund a portion of our initial 2010 exploration and development budget, which consists primarily of our drilling programs in the Williston Basin that target both the Bakken and Three Forks objectives. Pending use of the net proceeds to fund our exploration and development budget, we used a portion of the net proceeds to repay the outstanding indebtedness under our Senior Credit Facility. We intend to re-borrow under our Senior Credit Facility in 2010 to fund exploration and development costs as they are incurred.
Subsequent to our October equity offering, our 2009 budget is anticipated to remain roughly in line with the budget announced in May 2009, as our lower working interest in wells as a result of our Rough Rider drilling participation agreement offsets the increased number of wells we will drill during the remainder of 2009. We anticipate setting our initial 2010 exploration and development budget at $175.8 million, which would include $169.4 million in drilling and $6.4 million in land capital. The increase in our drilling capital would be used to fund the drilling of 24 net horizontal wells in the Williston Basin. We currently anticipate the 24 net wells would be comprised of 21 net operated wells and three net non-operated wells. The majority of our drilling activity in 2010 would occur in our core developmental acreage positions in our Rough Rider and Ross project areas in Williams, McKenzie and Mountrail Counties, North Dakota. We also anticipate drilling a horizontal Bakken well in our Ghost Rider project area in Roosevelt County, Montana. Finally, our initial 2010 budget currently includes two net wells in our South Texas Vicksburg play in Brooks County, Texas.
Read the The complete ReportBEXP is in the portfolios of George Soros of Soros Fund Management LLC.
