Contango Oil & Gas Company reported net income attributable to common stock for the year ended June 30, 2005 of $12.0 million, or $0.92 per basic and diluted share, compared to net income attributable to common stock for the year ended June 30, 2004 of $7.1 million, or $0.68 per basic and diluted share. Natural gas and oil sales from continuing and discontinued operations for the year ended June 30, 2005 were $16.3 million, down from $27.6 million for the year ended June 30, 2004. The decrease in revenue was primarily the result of the sale of the company’s south Texas natural gas and oil interests for $50 million, completed in December 2004.
EBITDAX was $28.5 million for the year ended June 30, 2005, down from EBITDAX for the year ended June 30, 2004 of $29.0 million.
For the three months ended June 30, 2005 Contango had a net loss attributable to common stock of $1.4 million, or $0.16 per basic and diluted share, compared to a net loss attributable to common stock for the three months ended June 30, 2004 of $1.1 million, or $0.09 per basic and diluted share. Natural gas and oil sales from continuing and discontinued operations for the three months ended June 30, 2005 were $1.3 million, down from $6.8 million for the three months ended June 30, 2004.
Kenneth R. Peak, Contango’s Chairman and Chief Executive Officer, said, “Fiscal-year 2005 was a productive year for us. We sold the majority of our south Texas natural gas and oil properties in December, paid-off all of our bank debt, greatly increased our liquidity, and positioned ourselves strategically by making substantial capital commitments to our Fayetteville Shale prospect area and our two offshore exploration prospects, Eugene Island 10 (“Dutch”) and Grand Isle 72 (“Liberty”). We currently have production of approximately 1,860 Mcfe/d and approximately $29 million in cash, cash equivalents, and short-term investments.”
Mr. Peak continued, “Since its inception in 1999, Contango has primarily been a company focused on south Texas exploration and the generation of offshore prospects that were subsequently sold on a promoted basis to the industry. In the future, we will be a company focused on developing our Fayetteville Shale play in Arkansas, operating certain of our offshore prospects, maintaining our 10% limited partnership interest in our Freeport LNG project, and maturing our investments in alternative energy.”
