Harvest Natural Resources Inc. (HNR, Financial) filed Amended Quarterly Report for the period ended 2008-06-30.
Harvest Natural Resources Inc. is an independent oil and gas exploration and development company with principal operations in Venezuela and Russia. Harvest Natural Resources Inc. has a market cap of $107 million; its shares were traded at around $3.25 with a P/E ratio of 16.3.
At June 30, 2008, we had current assets of $175.5 million and current liabilities of $31.4 million, resulting in working capital of $144.1 million and a current ratio of 5.6:1. This compares with a working capital of $111.5 million and a current ratio of 3.6:1 at December 31, 2007. The increase in working capital of $32.6 million was primarily due to the receipt of a $72.5 million dividend net to HNR Finance ($58 million net to us) from our unconsolidated equity affiliate and payment of advances by PDVSA offset by payments of accounts payable trade and accrued expenses.
Cash Flow from Operating Activities. During the six months ended June 30, 2008, net cash provided by operating activities was $64.3 million. During the six months ended June 30, 2007, net cash used in operating activities was approximately $12.0 million. The $76.3 million increase was primarily due to the receipt of a $72.5 million dividend net to HNR Finance ($58.0 million net to us) from our unconsolidated equity affiliate and payment of advances by PDVSA offset by payments of accounts payable trade and accrued expenses.
Cash Flow from Investing Activities. During the six months ended June 30, 2008, we had capital expenditures of approximately $11.2 million related to lease acquisition for our domestic exploration program. During the six months ended June 30, 2007, we had limited production-related expenditures due to the pending formation of Petrodelta. In January 2007, we purchased a 45 percent interest in Fusion for $4.6 million. During the six months ended June 30, 2008 and 2007, we had $3.2 million and $13.6 million of restricted cash returned to us. We incurred $1.1 million of investigatory costs related to various international and domestic exploration studies during the six months ended June 30, 2008.
We reported net loss of $0.6 million, or $0.02 diluted earnings per share, for the three months ended June 30, 2008 compared with a net loss of $6.9 million, or $0.18 diluted loss per share, for the three months ended June 30, 2007. Net loss for the three months ended June 30, 2008 includes our 40 percent share of Petrodeltas net earnings of $9.5 million for the same period. Petrodelta was formed in October 2007, and we recorded our share of the earnings of Petrodelta from April 1, 2006 to December 31, 2007 in the three months ended December 31, 2007 consolidated statements of operations. The three months ended March 31, 2008 was the first period that we reported the earnings of Petrodelta on a current basis.
We reported net income of $0.6 million, or $0.02 diluted earnings per share, for the six months ended June 30, 2008 compared with a net loss of $13.4 million, or $0.36 diluted loss per share, for the six months ended June 30, 2007. Net income for the six months ended June 30, 2008 includes our 40 percent share of Petrodeltas net earnings of $18.3 million for the same period. Petrodelta was formed in October 2007, and we recorded our share of the earnings of Petrodelta from April 1, 2006 to December 31, 2007 in the three months ended December 31, 2007 consolidated statement of operations. The six months ended June 30, 2008 is the first period that we reported the earnings of Petrodelta on a current basis.
Read the The complete ReportHNR is in the portfolios of Mohnish Pabrai of Pabrai Mohnish.
Harvest Natural Resources Inc. is an independent oil and gas exploration and development company with principal operations in Venezuela and Russia. Harvest Natural Resources Inc. has a market cap of $107 million; its shares were traded at around $3.25 with a P/E ratio of 16.3.
Highlight of Business Operations:
Crude oil delivered from the Petrodelta fields to PDVSA is priced with reference to Merey 16 published prices, weighted for different markets and adjusted for variations in gravity and sulphur content, commercialization costs and distortions that may occur given the reference price and prevailing market conditions. Market prices for crude oil of the type produced in the fields operated by Petrodelta averaged approximately $100.20 and $89.57 a barrel, $83.12 and $81.09 net of the impact of the Law of Special Contribution to Extraordinary Prices at the Hydrocarbons International Market (Windfall Profits Tax) implemented by the Venezuelan government, for the three and six months ended June 30, 2008. Market prices averaged approximately $54.30 and $49.08 a barrel for the three and six months ended June 30, 2007. The activity from April 1, 2006 to December 31, 2007 was recorded in the three months ended December 31, 2007. The price for natural gas per the sales contract is $1.54 per thousand cubic feet.At June 30, 2008, we had current assets of $175.5 million and current liabilities of $31.4 million, resulting in working capital of $144.1 million and a current ratio of 5.6:1. This compares with a working capital of $111.5 million and a current ratio of 3.6:1 at December 31, 2007. The increase in working capital of $32.6 million was primarily due to the receipt of a $72.5 million dividend net to HNR Finance ($58 million net to us) from our unconsolidated equity affiliate and payment of advances by PDVSA offset by payments of accounts payable trade and accrued expenses.
Cash Flow from Operating Activities. During the six months ended June 30, 2008, net cash provided by operating activities was $64.3 million. During the six months ended June 30, 2007, net cash used in operating activities was approximately $12.0 million. The $76.3 million increase was primarily due to the receipt of a $72.5 million dividend net to HNR Finance ($58.0 million net to us) from our unconsolidated equity affiliate and payment of advances by PDVSA offset by payments of accounts payable trade and accrued expenses.
Cash Flow from Investing Activities. During the six months ended June 30, 2008, we had capital expenditures of approximately $11.2 million related to lease acquisition for our domestic exploration program. During the six months ended June 30, 2007, we had limited production-related expenditures due to the pending formation of Petrodelta. In January 2007, we purchased a 45 percent interest in Fusion for $4.6 million. During the six months ended June 30, 2008 and 2007, we had $3.2 million and $13.6 million of restricted cash returned to us. We incurred $1.1 million of investigatory costs related to various international and domestic exploration studies during the six months ended June 30, 2008.
We reported net loss of $0.6 million, or $0.02 diluted earnings per share, for the three months ended June 30, 2008 compared with a net loss of $6.9 million, or $0.18 diluted loss per share, for the three months ended June 30, 2007. Net loss for the three months ended June 30, 2008 includes our 40 percent share of Petrodeltas net earnings of $9.5 million for the same period. Petrodelta was formed in October 2007, and we recorded our share of the earnings of Petrodelta from April 1, 2006 to December 31, 2007 in the three months ended December 31, 2007 consolidated statements of operations. The three months ended March 31, 2008 was the first period that we reported the earnings of Petrodelta on a current basis.
We reported net income of $0.6 million, or $0.02 diluted earnings per share, for the six months ended June 30, 2008 compared with a net loss of $13.4 million, or $0.36 diluted loss per share, for the six months ended June 30, 2007. Net income for the six months ended June 30, 2008 includes our 40 percent share of Petrodeltas net earnings of $18.3 million for the same period. Petrodelta was formed in October 2007, and we recorded our share of the earnings of Petrodelta from April 1, 2006 to December 31, 2007 in the three months ended December 31, 2007 consolidated statement of operations. The six months ended June 30, 2008 is the first period that we reported the earnings of Petrodelta on a current basis.
Read the The complete ReportHNR is in the portfolios of Mohnish Pabrai of Pabrai Mohnish.
