Belden & Blake Corporation announces third quarter and nine-month earnings; income from continuing operations increases 50 percent.Blake Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : BELD BELD Braintree Electric Light Department (Massachusetts) BELD Battlefield Environment Laser Designator ) today reported earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $1.8 million, or $.18 per common share, for the third quarter of 1995, compared to net income from continuing operations of $1.2 million or $.16 per share for the comparable period of 1994. There was a weighted average of 9.7 million shares outstanding in the third quarter of 1995, compared to a weighted average of 7.1 million shares outstanding for the same period of 1994. The increase in average shares outstanding is primarily the result of the Company's sale of 4 million common shares in August of 1995. Net loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for the third quarter of 1995 totaled $678,102, or $.07 per share. This compares to a net loss from discontinued operations of $75,085, or $.01 per share for the 1994 period. Revenues for the third quarter ended September September: see month. 30, 1995 increased 46 percent to $30.0 million compared to revenues of $20.6 million for the third quarter of 1994. Discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. , defined as net income plus exploration expense and non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. , increased 69 percent in the third quarter of 1995 to $9.1 million compared with $5.4 million for the comparable period in 1994. The company identified various factors that impacted earnings for the 1995 third quarter: Acquisitions and Drilling Increase Production During the third quarter of 1995, natural gas sales volumes increased to 4.9 Bcf (billion cubic feet), a 95 percent increase over the same period in 1994. Oil volumes increased 44,924 barrels (37 percent) to 165,215 barrels in the third quarter of 1995. These volume increases were primarily due to the Company's 1995 acquisitions and production from wells drilled in 1994 and 1995. The volume increases were partially offset by the company's voluntary curtailment Curtailment The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations. of gas production during the 1995 period due to low spot market gas prices and curtailments due to interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. pipeline repairs and construction. Lower volumes as a result of these curtailments reduced gas A reduced gas is a gas with a low oxidation number (or high reduction), and is usually hydrogen-rich. Strongly reduced gases include methane, ammonia, and hydrogen sulfide. Such gases are strongly associated with the origin of life. revenue in the third quarter of 1995 by approximately $1.5 million. The average price paid for the Company's natural gas decreased $.30 per Mcf (thousand cubic feet) to $2.11 per Mcf in the third quarter of 1995 compared to the third quarter of 1994. This decreased gas sales in the third quarter of 1995 by approximately $1.4 million. The decrease in the average gas price was largely the result of lower gas prices received on the Company's recently acquired Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). production and production from properties acquired from Quaker State Quaker State may refer to:
Growth in Exploration Activities Exploration expense, at $1.6 million for the 1995 period, was more than double the $732,366 spent in the third quarter of 1994 -- primarily due to increases in the size of the technical staff and higher levels of seismic activity. The 1995 drilling budget is more than double the Company's drilling expenditures in 1994 and the increase in exploration expense reflects this growth. Sale of EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Subsidiary The Company has decided to sell its Engine Power Systems, Inc. (EPS) subsidiary. The loss, net of tax effects of treating EPS as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. was approximately $678,102 in the third quarter of 1995. EPS did not perform to the Company's expectations and the Company determined that it was not prudent to commit additional capital to its operations. Columbia Columbia, cities, United States Columbia (kəlŭm`bēə). 1 City (1990 pop. 75,883), Howard co., central Md., between Washington, D.C., and Baltimore. Gas Contract Claim Earnings in the third quarter of 1995 include the recognition of $1.3 million of anticipated proceeds from contract claims that have been filed in the bankruptcy proceedings bankruptcy proceedings n. the bankruptcy procedure is: a) filing a petition (voluntary or involuntary) to declare a debtor person or business bankrupt, or, under Chapter 11 or 13, to allow reorganization or refinancing under a plan to meet the debts of the party of Columbia Gas Transmission Columbia Gas Transmission is a natural gas pipeline that gathers gas in the Gulf of Mexico and brings it to New York. It is owned by NiSource. Its FERC code is 21.[1] External links
n. 1. The act or an instance of paying out. 2. A percentage of corporate earnings that is paid as dividends to shareholders. amount in excess of $1.3 million for claims filed by the Company. Nine-Month Results Net income from continuing operations for the nine months ended September 30, 1995, was $3.8 million, or $.45 per share, on revenues of $73.4 million, compared to net income of $3.1 million, or $.41 per share on revenues of $60.2 million for the first nine months of 1994. Net loss from discontinued operations in the first nine months of 1995 was approximately $1 million, or $.12 per share, compared to a loss of $81,069, or $.01 per share for the 1994 period. Discretionary cash flow was $20.6 million during the 1995 nine-month period, compared with $15.3 million during the same period in 1994. Natural gas volumes for the first nine months of 1995 rose 54 percent to 11.1 Bcf while gas prices decreased $.34 per Mcf to $2.26 per Mcf compared to the same period in 1994. Oil volumes were up 34,950 barrels, or 9 percent, during the nine-month period in 1995. The average price paid for the company's oil production was up $.98 to $16.83 per barrel. Balance Sheet Data At September 30, 1995, working capital totaled $26 million and total assets were $289 million compared to $14 million and $148 million, respectively, at September 30, 1994. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at September 30, 1995 increased to $140 million from $81 million at September 30, 1994. In August 1995, the Company sold 4 million shares of Common Stock at $14.75 per share. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $55 million from the offering were used to purchase producing oil and gas properties and related assets from Quaker State Corporation, and to reduce the outstanding balance under the Company's revolving credit agreement Revolving credit agreement A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. . Belden Belden may refer to:
BELDEN & BLAKE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
1995 1994
(Unaudited)
ASSETS
Current assets $ 56,135,318 $ 26,092,344
Property and equipment, net 224,242,959 119,175,080
Other assets 8,433,733 2,905,371
$ 288,812,010 $ 148,172,795
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 29,980,737 $ 12,481,383
Long-term liabilities 110775486 47858158
Deferred income taxes 7,937,565 6,691,408
Shareholders' equity 140,118,222 81,141,846
$ 288,812,010 $ 148,172,795
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended September 30,
1995 1994
Cash flows from operating activities:
Net income $ 2,809,662 $ 2,992,104
Adjustments to reconcile net
income to net cash
provided by operating activities 12,089,569 9,508,800
Net cash provided by operating
activities 14,899,231 12,500,904
Net cash used in investing activities (105,032,908) (29,652,891) Net cash provided by financing activities 104,455,406 1,325,650 Net increase (decrease) in cash and cash equivalents 14,321,729 (15,826,337) Cash and cash equivalents at beginning of period 3,649,005 22,244,231 Cash and cash equivalents at end of the period $ 17,970,734 $ 6,417,894
BELDEN & BLAKE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months Nine months
ended September 30, ended September 30,
1995 1994 1995 1994
Revenues
Oil and gas
sales $ 12,949,105 $ 8,069,062 $ 31,923,560 $ 24,616,133
Gas marketing
and gathering 9,211,521 8,397,772 26,916,529 26,123,864
Oilfield sales
and service 6,200,276 3,897,631 12,455,363 9,014,437
Contract claim
income 1,342,900 -- 1,342,900 --
Interest and
other 330,710 269,591 744,681 400,903
30,034,512 20,634,056 73,383,033 60,155,337
Expenses
Production exp. 4,384,069 2,379,177 9,694,939 6,946,510
Cost of gas and
gathering exp. 7,506,660 7,191,187 22,759,257 22,875,597
Oilfield sales
and service 5,587,079 3,628,555 11,654,140 8,618,137
Exploration
expense 1,578,620 732,366 3,392,272 1,995,031
General and
admin. exp. 1,052,576 1,008,679 3,066,402 3,164,317
Interest exp. 1,560,761 876,343 4,013,240 2,659,522
DD&A 5,468,878 3,018,151 12,844,420 9,001,245
27,138,643 18,834,458 67,424,670 55,260,359
Income from continuing operations before
income taxes 2,895,869 1,799,598 5,958,363 4,894,978
Income taxes 1,062,825 644,576 2,194,547 1,821,805
Net income from continuing
operations 1,833,044 1,155,022 3,763,816 3,073,173
Net loss from discontinued operations (678,102) (75,085) (954,154) (81,069) Net income $ 1,154,942 $ 1,079,937 $ 2,809,662 $ 2,992,104
Net income per common share
Continuing op. $ 0.18 $ 0.16 $ 0.45 $ 0.41
Discontinued op. (0.07) (0.01) (0.12) (0.01)
$ 0.11 $ 0.15 $ 0.33 $ 0.40
Weighted average common shares outstanding 9,741,156 7,084,737 7,992,704 7,078,707 OPERATIONAL SUMMARY Sales volumes Gas (Mcf) 4,861,019 2,491,248 11,087,837 7,205,244 Oil (Bbls) 165,215 120,291 407,048 372,098 Average Selling Price Gas (per Mcf) $ 2.11 $ 2.41 $ 2.26 $ 2.60 Oil (per Bbl) 16.27 17.26 16.83 15.85 CONTACT: Belden & Blake Corp., North Canton North Canton, city (1990 pop. 14,748), Stark co., NE Ohio, a suburb of Canton; settled c.1815, inc. as a city 1961. Vacuum cleaners and industrial die castings are among the city's manufactures. Charles P. Faber, 216/499-1660 |
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