Louis Dreyfus Natural Gas Corp. Tuesday announced record financial results for the second quarter 2001, with net income of $47.8 million, or $1.07 per share, on revenues of $157.4 million. This compares to net income of $9.1 million, or $0.22 per share, on revenues of $88.0 million for the second quarter of 2000. Net income excluding the non- cash impact of SFAS 133 derivative accounting was $47.9 million, or $1.07 per share, for the second quarter of 2001 and $16.5 million, or $0.39 per share, for the second quarter of 2000.

Cash flows from operating activities (before working capital changes) for the second quarter of 2001 grew 72% to $111.9 million compared to $64.9 million for the second quarter of 2000. Higher prices and production was responsible for the company’s record performance in the second quarter.

Total average daily production for the second quarter of 2001 increased 5% to 376 MMcfe compared to 357 MMcfe for the prior year quarter. Natural gas production for the second quarter of 2001 increased 4% to 325 MMcf/d, compared to 312 MMcf/d for the second quarter of 2000. Natural gas production represented 87% of total oil and gas production for both periods.

Second quarter 2001 natural gas prices averaged $4.62/Mcf, an increase of 58% compared to $2.92/Mcf for the prior year second quarter. Oil prices for the company’s second quarter production averaged $25.80 per barrel, a 9% increase compared to $23.67 for the second quarter of 2000. These prices include the results of the company’s realized hedging activities.

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