CORNERSTONE NATURAL GAS, INC. ANNOUNCES FIRST QUARTER 1996 FINANCIAL RESULTS.DALLAS--(BUSINESS WIRE)--May 9, 1996--Cornerstone Natural Gas, Inc. (AMEX AMEX See: American Stock Exchange - CGA (Color/Graphics Adapter) The first video display standard for the IBM PC. This low-resolution system was superseded by EGA and then VGA. CGA required a digital RGB Color Display monitor. See PC display modes. CGA - Color Graphics Adapter ) today reported financial results for the first quarter of 1996. The company recorded net earnings of $1.9 million ($0.13 per share) in the first quarter of 1996 compared to a net loss of $245,000 ($0.02 per share) in the first quarter of 1995. Earnings before taxes, interest and depreciation ("EBITD EBITD See: Earnings Before Interest, Taxes and Depreciation ") were $3.5 million in the first quarter of 1996 compared to $930,000 in the first quarter of 1995. The increased performance was primarily related to increased natural gas volumes and prices in both the processing and in the gathering and marketing segments. The company's natural gas processing Natural gas processing plants, or fractionators, are used to purify the raw natural gas extracted from underground gas fields and brought up to the surface by gas wells. The processed natural gas, used as fuel by residential, commercial and industial consumers, is almost pure operations provided 18 percent of total revenues and 62 percent of total gross margin in 1996 compared to 22 percent and 64 percent, respectively, in 1995. Revenues, gross margin and EBITD increased 104 percent, 95 percent, and 133 percent, respectively. This was primarily the result of (i) the Calhoun Cal·houn , John Caldwell 1782-1850. Vice President of the United States (1825-1832) under John Quincy Adams and Andrew Jackson. In his political philosophy he maintained that the states had the right to nullify federal legislation that they deemed plant expansion, (ii) increased drilling and subsequent volumes available for processing at the company's North Louisiana North Louisiana, also known as Sportsman's Paradise, is a region in the U.S. state of Louisiana. The region has two metropolitan areas: Monroe and Shreveport-Bossier City. facilities, (iii) increased natural gas prices and (iv) the reactivation reactivation to become active after a period of quiescence or, as in bacterial and viral infections, latency. cross reactivation of the company's Iola plant. The company's natural gas gathering and marketing operations provided 82 percent of total revenues and 38 percent of total gross margin in the first quarter of 1996 compared to 78 percent and 36 percent for the same period in 1995. Revenues, gross margin, and EBITD increased 160 percent, 109 percent, and 173 percent, respectively. This was primarily the result of (i) the acquisition of the Oletha system, (ii) increased volumes on other systems and (iii) increased third party marketing. The company made capital expenditures of $1.9 million in the first quarter of 1996. These expenditures were primarily for the purchase of the Hatcher hatch 1 n. 1. a. An opening, as in the deck of a ship, in the roof or floor of a building, or in an aircraft. b. The cover for such an opening. c. A hatchway. d. gas gathering system in Custer County, Oklahoma Custer County is a county located in the U.S. state of Oklahoma. As of 2000, the population was 26,142. Its county seat is Arapaho6. Geography According to the U.S. Census Bureau, the county has a total area of 2,595 km² (1,002 mi²). , and the connection of natural gas wells to the company's gathering systems. On April 22, 1996, El Paso El Paso (ĕl pă`sō), city (1990 pop. 515,342), seat of El Paso co., extreme W Tex., on the Rio Grande opposite Juárez, Mex.; inc. 1873. Energy Corporation ("EPG (Electronic Program Guide) An online listing of TV or other programs. Periodically, EPGs are downloaded into set-top boxes so that viewers can preview offerings by time or category and set reminders. ") and the company announced the execution of a definitive merger agreement which provides for the acquisition by EPG of all the outstanding shares of Cornerstone cornerstone Ceremonial building block, dated or otherwise inscribed, usually placed in an outer wall of a building to commemorate its dedication. Often the stone is hollowed out to contain newspapers, photographs, or other documents reflecting current customs, with a view to common stock and the merger of Cornerstone with a subsidiary of El Paso Field Services Company (EPFS EPFS Electronic Position Fixing System ), the natural gas gathering and processing arm of EPG. Pursuant to the agreement, a subsidiary of EPG has made a cash tender offer for all the shares of common stock of Cornerstone at $6.00 per share. The merger is expected to close in the second quarter of 1996. The company is engaged in the business of natural gas gathering, marketing, and processing. Natural gas gathering and marketing includes purchasing, gathering, transporting and marketing of natural gas. Natural gas processing includes recovering and marketing of natural gas liquids from natural gas and treating natural gas by removing noncommercial adj. 1. not connected with or engaged in commercial enterprises. Opposite of commercial nt>. Adj. 1. noncommercial - not connected with or engaged in commercial enterprises components. -0-
CORNERSTONE NATURAL GAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Month Period
Ended March 31,
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1996 1995
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Revenues $ 63,548,000 $ 25,645,000
Expenses:
Cost of sales 56,548,000 22,150,000
Operating expenses 1,944,000 1,277,000
Depreciation and amortization 939,000 777,000
General and administrative 1,574,000 1,288,000
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61,005,000 25,492,000
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Operating earnings 2,543,000 153,000
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Other income (expense):
Interest income 8,000 27,000
Interest expense (602,000) (443,000)
Equity in net losses of
unconsolidated subsidiaries (3,000) (1,000)
Other (4,000) 19,000
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(601,000) (398,000)
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Earnings (loss) before income taxes 1,942,000 (245,000)
Provision for current income taxes 42,000 --
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Net earnings (loss) $ 1,900,000 $ (245,000)
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Earnings (loss) per common and
common equivalent share $ .13 $ (.02)
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Weighted average common and
common equivalent shares outstanding 14,833,000 12,516,000
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Cash provided by operating activities $ 4,139,000 $ 570,000
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CONTACT: Cornerstone Natural Gas, Inc., Dallas Robert L. Cavnar, 214/691-5536 |
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