Parallel Petroleum Corporation is headquartered in Midland, Texas and is an independent energy company primarily engaged in the acquisition, development, exploration and production of oil and gas using enhanced oil recovery techniques and 3-D seismic technology.

Parallel Petroleum Announces Second Quarter 2007 Financial Results
MIDLAND, Texas--(BUSINESS WIRE)--Aug. 8, 2007--Parallel Petroleum Corporation (NASDAQ:PLLL) today announced its financial results for the second quarter ended June 30, 2007, compared to the results for the same period in 2006. In a separate press release issued today, Parallel announced its operations update.
Second Quarter Financial Results
For the three months ended June 30, 2007, Parallel reported net income of $3.5 million, or $0.09 per diluted share. Included in net income was a $2.2 million pre-tax loss on derivatives, which included settlements of $3.4 million. Parallel had no derivatives classified as hedges during the second quarter of 2007. For the three months ended June 30, 2006, Parallel recorded net income of $2.5 million, or $0.07 per diluted share. Included in net income for the three months ended June 30, 2006 was a $5.4 million pre-tax loss on derivatives, which included settlements of $1.1 million and a gain on ineffective portion of hedges of $0.05 million.
For the second quarter of 2007, Parallel's oil and natural gas sales were 270 MBbls of oil and 1,679 MMcf of natural gas, or 550 MBOE. During this period, the average prices the Company received for its oil and natural gas on an unhedged basis were $59.24 per barrel and $6.79 per Mcf, or $49.81 per BOE. For the same period of 2006, oil sales were 298 MBbls at an average unhedged price of $63.17 per barrel and natural gas sales were 1,726 MMcf at an average unhedged price of $6.25 per Mcf, or 586 MBOE at an average unhedged price of $50.56 per BOE ($45.01 per BOE, net of the effect of hedges).
When comparing the second quarter of 2007 to the second quarter of 2006, oil and gas revenues increased approximately 4% to $27.4 million and total costs and expenses increased approximately 10% to $15.3 million, which reduced operating income by approximately 3% to $12.1 million. Total costs and expenses increased primarily due to increases in lease operating expense, general and administrative expense, and depreciation, depletion and amortization costs. Interest expense increased approximately 37% to $4.3 million.

Parallel Petroleum Announces Fourth Quarter and Year-End 2006 Financial Results 
MIDLAND, Texas--(BUSINESS WIRE)--Feb. 28, 2007--Parallel Petroleum Corporation (NASDAQ:PLLL) today announced its financial results for the fourth quarter and year ended December 31, 2006, compared to the results for the same period in 2005. In a separate press release issued today, Parallel announced its fourth quarter 2006 production, 2007 capital investment budget and operations update.
Fourth Quarter Financial Results
For the three months ended December 31, 2006, Parallel reported net income of $11.1 million, or $0.29 per diluted share. Included in net income was a $9.0 million pre-tax gain on the sale of the Company's West Fork pipeline assets during the fourth quarter of 2006. Also included in net income was a $2.8 million pre-tax, non-cash gain related to the change in fair market value of derivative instruments and ineffective portion of hedges. For the three months ended December 31, 2005, Parallel recorded net income of $8.4 million, or $0.24 per diluted share. Included in net income for the three months ended December 31, 2005 was a $1.7 million pre-tax, non-cash gain related to the change in fair market value of derivative instruments and ineffective portion of hedges.
For the fourth quarter of 2006, Parallel's oil and natural gas sales were 289 MBbls of oil and 1,645 MMcf of natural gas, or 563 MBOE, a 26% increase when compared to the fourth quarter of 2005. During this period, the average prices the Company received for its oil and natural gas on an unhedged basis were $53.93 per barrel and $6.43 per Mcf, or $46.46 per BOE ($42.47 per BOE, hedged). For the same period of 2005, oil sales were 251 MBbls at an average unhedged price of $54.23 per barrel and natural gas sales were 1,181 MMcf at an average unhedged price of $9.64 per Mcf, or 448 MBOE at an average unhedged price of $55.81 per BOE ($48.27 per BOE, hedged).
Year End Results
For the twelve months ended December 31, 2006, Parallel reported net income of $26.2 million, or $0.71 per diluted share. Included in net income was a $9.0 million pre-tax gain on the sale of the Company's West Fork pipeline assets during the fourth quarter of 2006. Also included in net income was a $3.4 million pre-tax, non-cash gain related to the change in fair market value of derivative instruments and ineffective portion of hedges. For the twelve months ended December 31, 2005, Parallel recorded a net loss of $1.6 million, or a loss of $0.06 per diluted share. Included in the net loss for the twelve months ended December 31, 2005 was a $31.8 million pre-tax, non-cash loss related to the change in fair market value of derivative instruments and ineffective portion of hedges.
For the twelve months ended December 31, 2006, Parallel's oil and natural gas sales were 1,137 MBbls of oil and 6,539 MMcf of natural gas, or 2,227 MBOE, a 46% increase when compared to the twelve months ended December 31, 2005. The average prices the Company received for its oil and natural gas on an unhedged basis were $59.86 per barrel and $6.19 per Mcf, or $48.73 per BOE ($43.56 per BOE, hedged). For the same period of 2005, oil sales were 923 MBbls at an average unhedged price of $51.78 per barrel and natural gas sales were 3,592 MMcf at an average price of $8.54 per Mcf, or 1,522 MBOE at $51.57 per BOE ($43.46 per BOE, hedged).
Net cash provided by operating activities for the twelve months ended December 31, 2006, was $74.2 million, compared to $37.1 million for the same period of 2005. The 100% increase was primarily related to increased oil and gas production volumes, increased oil prices, the sale of the Company's West Fork pipeline assets, and an increase in current liabilities offset by an increase in current assets, primarily related to vendor payables and joint interest receivables associated with the Company's increased drilling activities.
Balance Sheet Review
At December 31, 2006, current assets were $42.3 million, which included $5.9 million of cash and cash equivalents. Current liabilities were $51.0 million, including current derivative obligations of $14.1 million. Long-term liabilities were $208.1 million, including $165.0 million of debt and $14.4 million of derivative obligations. The Company's revolving credit facility had a borrowing base of $167.0 million as of December 31, 2006, and outstanding borrowings under the revolving credit facility as of that same date were $115.0 million. In addition, the Company had $50.0 million outstanding under its second lien term loan facility. As of December 31, 2006, the Company's net capitalized costs associated with its oil and gas properties and other equipment were $388.5 million. Stockholders' equity was $183.8 million, which included net proceeds of $60.3 million from 2.5 million shares of common stock sold for $25.25 per share on August 16, 2006. Accumulated other comprehensive loss of $6.4 million in 2005 was reduced to zero in 2006 due to the settlement of cash flow hedges.
Oil & Gas Derivatives
Parallel announced on July 12, 2006 that it had hedged approximately 1.17 million barrels of oil through West Texas Intermediate (WTI) costless collars with $65.00 floors and caps ranging from $92.00 to $79.60 per barrel for the period starting October 1, 2006 through October 31, 2010. Please refer to the last table in this press release for information pertaining to the Company's derivatives as of December 31, 2006.
In February 2007, Parallel hedged 2,196,000 MMBTU of natural gas through a WAHA costless collar with a floor of $6.50 per MMBTU and a cap of $9.50 per MMBTU for the period starting April 1, 2007 through March 31, 2008