Ebitda

Western Gas Resources reported third quarter net income of $14.8 million, or $0.36 per diluted share compared to $14.5 million or $0.36 per share in 3Q2000. For the third quarter of 2001, EBITDA was $46.7 million, cash flow from operations was $17.7 million and revenues were $670.9 million. For the first nine months of the year, the company had $84.8 million in net income compared to $38 million during the same period last year. Earnings from midstream operations were down 25% to $37.6 million for the third quarter. Net gas production increased 27% to 98 MMcf/d in the third quarter. Company-wide gas sales volumes averaged 2.1 Bcf/d, an increase of 8%, which was a result of an increase in the sale of residue gas purchased from third parties and increased sales of coal-bed methane from the Powder River Basin. Average sales prices decreased 32% to $2.77/Mcf. Natural gas liquids sales volumes fell 26% to 2,335 MGal/d. In the third quarter, the company’s equity-hedging positions increased operating income by $10.6 million as compared to a reduction in operating income of $10.6 million in the third quarter of 2000. For the fourth quarter, the company has hedged 82,000 MMBtu/d, or 68% of its estimated equity gas volumes, at a weighted average Nymex-equivalent price of $4.32/MMBtu. For 2002, Western has hedged 80,000 MMBtu/d, or 57% of its projected 2002 equity gas volumes, with collar structures providing for an average minimum price of $3.81/MMBtu and an average maximum price of $5.87/MMBtu.