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ALAMCO ANNOUNCES SIGNIFICANTLY IMPROVED THIRD QUARTER 1992 RESULTS

 ALAMCO ANNOUNCES SIGNIFICANTLY IMPROVED THIRD QUARTER 1992 RESULTS
 CLARKSBURG, W.Va., Nov. 5 /PRNewswire/ -- Alamco, Inc. (AMEX: AXO) today announced significantly higher third quarter 1992 net income and income from operations. Higher revenues, due to increased gas sales volumes and higher gas prices, and lower total expenses contributed to the improved operating results.
 Net income for the third quarter 1992 was $267,000 or $0.10 per share (including an extraordinary tax benefit of $10,000) compared to a loss of $383,000 or $0.15 per share for the third quarter 1991. Cash flow from operations for the quarter totaled $880,000, a $658,000 increase over cash flow from operations of $222,000 for the third quarter of 1991.
 Income from operations was $241,000 in the third quarter 1992 as compared to a loss of $396,000 in the third quarter last year due primarily to higher gas and oil revenues. Revenues totaled $2,707,000, an increase of $589,000 or 28 percent, compared to $2,118,000 in the third quarter 1991. Increased gas sales volumes, due principally to production from wells acquired in October 1991 and the acquisition of additional interests in company operated wells, and higher gas prices contributed $457,000 and $125,000 respectively, to the revenue increase. Expenses for the third quarter 1992 totaled $2,466,000 and were $48,000 or 2 percent lower than third quarter 1991 expenses of $2,514,000. General and administrative expenses of $569,000 for the third quarter were $301,000 or 35 percent lower than third quarter 1991 expenses. Lower litigation expenses in the third quarter 1992 and the effect of one-time events recorded in the third quarter 1991, including certain employee related settlements and expenses, contributed to the reduction in expenses. Lower general and administrative expenses were partially offset by increased expenses relative to wells acquired in October 1991, including higher interest expense because of debt incurred in connection with the acquisition, higher depreciation, depletion and amortization expense and higher operating expenses.
 Net income for the first nine months of 1992 was $596,000 or $0.23 per share (including an extraordinary tax benefit of $42,000 or $0.01 per share) compared to $318,000 or $0.12 per share (including an extraordinary tax benefit and gain on debt extinguishments totaling $731,000 or $0.28 per share) for the first nine months last year.
 Income from operations for the first nine months of 1992 totaled $633,000 as compared to a loss of $499,000 in the same period last year. Revenues increased $1,215,000 or 18 percent to $8,057,000 compared to $6,842,000 last year due to higher gas volumes and prices. Expenses for the first nine months of 1992 were essentially unchanged from last year. Lower general and administrative expenses, due to the absence of certain one-time events recorded in 1991 and lower litigation expense were offset by expenses incurred relative to the wells acquired in October 1991.
 Cash flow from operations for the first nine months of 1992 totaled $3,016,000 as compared to $1,359,000 last year.
 Commenting on third quarter 1992 results, John L. Schwager, president and chief executive officer, noted that, while higher gas prices contributed to the revenue increase, higher gas volumes accounted for over 75 percent of the $589,000 increase in third quarter 1992 revenues over the same period last year. Schwager was pleased to note that the company's stated strategy of enhancing profitability through acquisitions while containing costs has begun to be realized.
 For the first nine months of 1992, gas sales volumes have increased 28 percent while total expenses increased only 1 percent.
 The company also announced today that it has increased its 1992 gas and oil investment capital budget by $1.0 million or 45 percent to $3.2 million. The company has invested $1.6 million on such activities during the first nine months of 1992. The additional funds will be used primarily to accelerate the company's well recompletion program, acquire additional interests in Alamco-operated wells, and for additional development of the 26,000 acres acquired with certain West Virginia producing properties in October 1991. The company has successfully drilled and completed one deep Oriskany well and two shallow wells in the field since the 1991 acquisition. The total amount of the company's 1992 capital expenditures will depend on the actual timing of such planned capital projects. The company will use cash flows from operating activities and, if necessary, withdrawals from its credit facility to fund the additional capital expenditures.
 Alamco, headquartered in Clarksburg, is an independent producer of gas and oil in the Appalachian Basin with a major operating concentration in West Virginia gas fields. The company's stock is traded on the American Stock Exchange under the symbol AXO.
 ALAMCO, INC. AND SUBSIDIARY
 Condensed Consolidated Statement of Operations
 (Unaudited)
 (In thousands, except share data)
 Period Ended Three Months Nine Months
 Sept. 30 1992 1991 1992 1991
 Revenues $2,707 $2,118 $8,057 $6,842
 Operating expenses 970 848 2,862 2,632
 General and admin.
 expenses 569 870 1,753 2,367
 Depreciation, depletion
 and amortization 746 658 2,223 2,016
 Interest expense 181 138 566 326
 Loss on asset sale -- -- 20 --
 Total expenses 2,466 2,514 7,424 7,341
 Income (loss) from
 operations 241 (396) 633 (499)
 Other nonoperating
 income, net 52 5 145 170
 Income (loss) before
 income taxes and
 extraordinary items 293 (391) 778 (329)
 Income tax (provision)
 benefit (36) 8 (224) (84)
 Income (loss) before
 extraordinary items 257 (383) 554 (413)
 Extraordinary items:
 Gain on debt
 extinguishment -- -- -- 712
 Income tax benefit 10 -- 42 19
 Net income (loss) 267 (383) 596 318
 Earnings per share:
 Income (loss) before
 extraordinary items $0.10 ($0.15) $0.22 ($0.16)
 Extraordinary items $0.00 $0.00 $0.01 $0.28
 Net income (loss)
 per share $0.10 ($0.15) $0.23 $0.12
 Weighted average
 number of shares
 outstanding 2,562,043 2,579,833 2,553,841 2,586,667
 OTHER SELECTED FINANCIAL DATA
 Cash flow from
 operations $880 $222 $3,016 $1,359
 -0- 11/5/92
 /CONTACT: Jane Merandi of Alamco, 304-623-6671/
 (AXO) CO: Alamco, Inc. ST: West Virginia IN: OIL SU: ERN


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Date:Nov 5, 1992
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