Petroleum Development Corporation (Nasdaq: PETD - News) today reported net income of $2.5 million for the first quarter of 2007, compared to $11.6 million for the same period of 2006. Increased revenue from record oil and gas production in the period was offset primarily by lower oil and gas prices and unrealized losses on oil and gas price risk management (derivative) activities. Other factors impacting quarterly results are increased depreciation, depletion and amortization (DD&A), and increased general and administrative (G&A) expense. The following table summarizes key results:
Three Months Ended
First Quarter Comparative Results March 31,
(unaudited)
(in thousands, except per share amounts) 2007 2006
Revenues $ 57,912 $ 82,770
Net income $ 2,501 $ 11,645
Basic earnings per common share $0.17 $0.72
Diluted earnings per common share $0.17 $0.72
Adjusted Cash Flow was $18.8 million and $16.3 million for the first quarters of 2007 and 2006, respectively. The increase in Adjusted Cash Flow was achieved with an oil and gas sales price that was $1.32 per Mcfe lower than the earlier period. The Company's management believes Adjusted Cash Flow is relevant because it is a measure of cash available to fund the Company's capital expenditures and to service its debt. Management also believes Adjusted Cash Flow is a useful measure for estimating the value of the Company's operations. The following table provides a reconciliation of Adjusted Cash Flow to GAAP net income (in thousands).
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