Delphi Energy Corp.
TSX: DEE
May 5, 2010
Delphi Energy Reports Strong Financial and Operational Results for First Quarter 2010
CALGARY, ALBERTA - Delphi Energy Corp. ("Delphi" or the "Company is pleased to announce its financial and operational results for the quarter ended March 31, 2010.
First Quarter 2010 Highlights
- achieved record quarterly production in the first quarter of 2010 with average daily volumes of 7,645 barrels of oil equivalent per day (boe/d), an increase of 13 percent compared to the first quarter of 2009 and up 11 percent from the fourth quarter of 2009;
- generated funds from operations (cash flow) of $15.2 million, an increase of 51 percent from the comparative quarter of 2009;
- generated net earnings of $3.3 million compared to a net loss of $3.3 million in first quarter of 2009, partly due to a 17 percent decrease in the depletion and depreciation rate to $19.85 per boe resulting from capital efficient proved reserve additions;
- increased oil production by 57 percent, changing the production mix to approximately 16 percent crude oil and natural gas liquids in the first quarter of 2010, contributing to a cash netback of $22.04 per boe, 34 percent greater than the first quarter of 2009;
- reduced operating costs by 15 percent to approximately $8.71 per boe in the first quarter of 2010 from $10.19 per boe in the first quarter of 2009;
- realized $2.9 million in hedging gains on commodity contracts compared to $4.0 million in hedging gains in the first quarter of 2009, providing stability to cash flow and the ability to pursue the Company's planned capital program;
- drilled 16 (10.7 net) wells with an overall success rate of 94 percent; and
- increased the Company's total undeveloped land holdings by 24 percent to 213,000 net acres as compared to December 31, 2009.
Operational Highlights
Three Months Ended March 31
Production 2010 2009 % Change
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Natural gas (mcf/d) 38,349 34,813 10
Crude oil (bbl/d) 745 475 57
Natural gas liquids (bbl/d) 508 485 5
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Total (boe/d) 7,645 6,762 13
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Financial Highlights ($ thousands except per unit amounts)
Three Months Ended March 31
2010 2009 % Change
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Petroleum and natural gas sales 29,519 24,205 22
Per boe 42.91 39.77 8
Funds from operations 15,157 10,017 51
Per boe 22.04 16.47 34
Per share - Basic 0.15 0.13 15
Per share - Diluted 0.15 0.13 15
Net earnings (loss) 3,260 (3,320) -
Per boe 4.75 (5.45) -
Per share - Basic 0.03 (0.04) -
Per share - Diluted 0.03 (0.04) -
Capital invested 35,504 14,092 152
Disposition of properties - (151) (100)
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Net capital invested 35,504 13,941 155
Acquisition of properties 692 - 100
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Total capital invested 36,196 13,941 160
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March 31, December 31,
2010 2009 % Change
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Debt plus working capital
deficiency (1) 113,239 92,538 22
Total assets 396,444 361,968 10
Shares outstanding (000's)
Basic 101,455 101,166 -
Diluted 108,704 108,594 -
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(1) excludes risk management asset/liability and the related current future income taxes.
For the full release, please visit www.delphienergy.ca
CONFERENCE CALL
A conference call is scheduled for 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) on Thursday, May 6, 2010. The conference call number is 1-800-952-4972 or 416-695-7848. A brief presentation by David Reid, President and CEO and Brian Kohlhammer, VP Finance & CFO will be followed by a question and answer period.
If you are unable to participate in the conference call, a taped broadcast will be available until May 13, 2010. To access the replay, dial 1-800-408-3053 or 416-695-5800. The passcode is 8458868. Delphi's first quarter 2010 financial statements and management's discussion and analysis are available on Delphi's website at www.delphienergy.ca and will be available on SEDAR at www.sedar.com within 24 hours.
Delphi Energy is a Calgary-based company that explores, develops and produces oil and natural gas in Western Canada. The Company is managed by a proven technical team. Delphi trades on the Toronto Stock Exchange under the symbol DEE.
For more information, please contact:
Delphi Energy Corp.
David J. Reid
President & CEO
(403) 265-6171
or
Delphi Energy Corp.
Brian Kohlhammer
V.P. Finance & CFO
(403) 265-6171
Delphi Energy Corp.
300, 500 - 4 Avenue S.W
Calgary, Alberta
T2P 2V6
Fax: (403) 265-6207
Email: info@delphienergy.ca
Website: www.delphienergy.ca
Forward-Looking Statements. This management discussion and analysis contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", may", "will", "should", believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.
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