BDE

Black Diamond, Inc. (BDE)

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Bois d’Arc Energy Inc. (BDE)

Q1 2008 Earnings Call

May 6, 2008 10:00 am ET

Executives

Gary Blackie - President Chief Executive Officer

Roland Burns - Chief Financial Officer

Jay Allison - Chairman

Analysts

Wayne Andrews – Raymond James

Presentation

Operator

Ladies and gentleman and welcome to the first quarter 2008 Bois d’Arc Energy earnings results conference call. At this time, all participants are in listen-only mode. We will be facilitating a question-and-answer session towards the end of today’s conference. (Operator Instructions) As a reminder this conference is being recorded for replay purposes. I would now like to turn the presentation over to your host for today’s conference Mr. Gary Blackie, Chief Executive Officer; please proceed.

Gary Blackie

Thank you very much. Welcome to Bois d’Arc Energy’s 2008 first quarter conference call. Today marks our third year anniversary of being a publicly traded New York Stock Exchange company. We will discuss our first quarter 2008 financial and operating results on this call and you can view a slide presentation during or after this call by going to our website at www.bolsdarcenergy.com and clicking on presentations and there you will find the presentation entitled first quarter 2008 results.

I am Gary Blackie, President Chief Executive Officer of Bois d’Arc and with me today are Roland Burns our Chief Financial Officer and Mr. Jay Allison our Chairman. Our discussion today will include forward-looking statements within the meaning of security lows. While we believe the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.

We recorded record high financial results in the first quarter of 2008 driven mostly by strong oil and gas prices. Our production increased 6% in the quarter and was held back by two short ends at two platforms which if producing would have added another 6 million cubic for gas equivalent per day to the 115 million cubic foot equivalent per day reproduce in the first quarter. With the strong oil and gas prices our revenue soared to a $113 million and it regenerated EBITDA of $96 million and operating cash flow of $79 million.

We had the most profitable quarter in our history with net income of $38 million or $0.56 per share. In addition to the first quarter results we will also discuss on this call the proposed merger of the company with Stone Energy that was announced on April 30. In the Merger our stockholders will receive $13.65 in cash and 0.165 shares of Stone Energy for each share of Bois d’Arc that they own.

The combination of these two outstanding companies will create the premier Gulf of Mexico Shelf Company; the new company being well positioned for future growth with its long cash flow, large inventory of expiration projects both on the shelf and in deep water and a strong balance sheet.

I will now let our CFO Roland Burns go over to financial results in more detail.

Roland Burns

Thanks Gary. Our production averaged to 115 million cubic feet of natural gas equivalent per day in the first quarter as shown on slide three in the presentation. Production increased 6% of our production in the first quarter of 2007 and was down slightly from production in the fourth quarter of 116 million per day.

During the quarter we had production shut in on two of our platforms with a bar on the ship show, 118R platform on January 1 and then we had a ship explosion near our pavilion blocks 12 and 51 that caused the TGPO pipeline to be shut in while the accident is investigated, any repairs are made. As a result of these two properties being down during the quarter our production was $6.1 million per day lower than it would have been otherwise.

The ship shelf platform returned to service in late February and the remaining platforms are expected to be back on in late May. Despite the flush start we still expect production increase to 46 to 49 BCSC this year as compared to the 42.2 BCSC we produced in 2007. On slide four we cover our oil prices, our average oil price soared 73% in the first quarter of 2008 to $101.01 per barrel as compare to the $58.33 we realized in the first quarter of 2007.

We continued to have high price realizations as our oil price was a 103% of the average NYMEX WTR price in the quarter. Our average gas price was also strong this quarter as shown on slide five, our average natural gas price increase 25% in the first quarter to $8.85 per mcf as compare to $7.10 in the first quarter of 2007. Our realized gas price was 110% of the average and we have nymax price in the quarter reflecting the strong Gulf Coast Market for natural gas.

Our production growth combined with the strong oil and gas prices increased our oil and gas sales which are represented on slide six. Our oil and gas sales increase to 49% in the first quarter to $113 million as compare to $76 million in 2007’s first quarter. As shown on slide seven our earnings for interest taxes, depreciation, amortization and expiration expense and other non-cash expenses or EBITDAX increased 56% in the first quarter to $96 million as compare to $62 million in 2007’s first quarter.

Slide eight covers our operating cash flow; our cash flow increased 43% this quarter to $79 million as compared to cash flow of $55 million in 2007’s first quarter. As shown on slide nine we reported net income of $38.1 million or $0.56 per share for this quarter as compare to $11.9 million or $0.18 per share in the first quarter of 2007. The record net income was probably attributable to the improved oil and gas prices.

Read the rest of this transcript for free on seekingalpha.com