Coho Energy Reports First Quarter 1998 Results.DALLAS--(BUSINESS WIRE)--May 13, 1998--Coho Energy, Inc. (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 :COHO) today reported a 33% increase in revenues in the first quarter 1998 to $21.1 million as compared with $15.5 million in the first quarter of 1997. Crude oil and natural gas production increased 89%, to 18,805 barrels of oil equivalent (boepd), compared to the first quarter 1997 production of 9,974 boepd. The production increase reflected the ongoing activity in Coho's Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by operations and the addition of the Company's Oklahoma Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). properties which were acquired in December December: see month. 1997. However, the financial benefits of an increased production base were negatively impacted by a 33% year to year decrease in its realized crude oil price per barrel and a 14% decrease in the realized gas price per thousand cubic feet. The sharp decline in commodity prices, higher interest expense and a $32 million non-cash ceiling test provision in the carrying costs Carrying costs Costs that increase with increases in the level of investment in current assets. of its oil and gas properties resulted in the Company reporting a net loss of $22.3 million or $0.87 per share as compared with net income of $2.1 million ($0.10 per share) in the prior period. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses (before working capital adjustments) in the first three months of 1998 was $4.0 million ($0.16 per share) as compared with $8.2 million ($0.40 per share) for the same period in 1997. Capital expenditures for the first quarter were $22.6 million and included the drilling and completion of nine oil wells in Mississippi. In addition at March 31, 1998, five wells in Mississippi were in various stages of drilling and completion. Highlights of the first quarter activity in Mississippi included the Brookhaven Brookhaven. 1 City (1990 pop. 10,243), seat of Lincoln co., SW Miss.; inc. 1859. It is situated in a dairy, timber, and farm area. Oil and gas fields are nearby. The city's manufactures include wood products, apparel, lumber, wire cloth, and asphalt. field, where average net production was 1,485 boepd, a 25% increase over the fourth quarter 1997, and drilling activities in the Company's Laurel Laurel, cities, United States Laurel. 1 Town (1990 pop. 19,438), Prince Georges co., central Md., about halfway between Washington, D.C., and Baltimore; patented in the late 1600s, inc. 1870. , Martinville and Summerland Summerland can refer to: Places
In Oklahoma, the first quarter capital program was minimal, as Coho proceeded with its effort to purchase additional working interests from other parties in the Company's major fields prior to any major development activity. For the remainder of the year, Coho expects to increase its activity level significantly in Oklahoma, where a large inventory of projects have been developed since Coho acquired the properties in December 1997. In response to continuing low oil prices, capital expenditures during the second quarter will be curtailed to approximately $12 million. Commenting on the first quarter 1998 results, Jeffrey Clarke Clarke , Arthur Charles Born 1917. British writer, scientist, and underwater explorer noted for his stories of space exploration. His works include 2001: A Space Odyssey (1968). , Coho's Chairman and Chief Executive Officer, said, "Because of the steep decline in crude oil prices, the quarter was difficult for Coho. The ceiling test writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. , which was required by accounting rules, reflects current low prices and not a fundamental erosion in the real long term value of our properties. The Company remains optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that a rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective of prices will occur and that Coho's substantial asset base, 80% of which is oil, will continue to expand." Coho Energy, Inc., is a Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. based independent oil and gas producer focusing on exploitation of underdeveloped un·der·de·vel·oped adj. Not adequately or normally developed; immature. oil properties and exploration in Oklahoma and Mississippi. -0-
COHO ENERGY, INC.
SUMMARY OF FINANCIAL RESULTS
(In Thousands, Except Per Share Data)
Three Months
Ended
March 31,
1998 1997
---- ----
OIL PRODUCTION (BBL/D) 14,667 6,724
GAS PRODUCTION (MCF/D) 24,824 19,499
PRODUCTION (BOE/D) 18,805 9,974
Average Sales Price
$/BBL $12.33 $18.35
$/MCF $2.17 $2.53
OPERATING REVENUES
Net Oil and Gas Production $21,143 $15,536
------- -------
OPERATING EXPENSES
Oil and Gas Production 6,413 3,080
Taxes on Oil and Gas Production 1,002 540
General and Administrative 2,140 1,776
Depletion and Depreciation 7,794 4,536
Writedown of crude oil and natural
gas properties 32,000 --
------- -------
TOTAL OPERATING EXPENSES 49,349 9,932
------- -------
NET INTEREST EXPENSE (7,763) (2,098)
INCOME TAXES (13,668) 1,402
NET EARNINGS $(22,301) $2,104
------- -------
------- -------
BASIC EARNINGS PER COMMON SHARE $(0.87) $0.10
CASH FLOW FROM OPERATING ACTIVITIES
(before working capital adjustments) $4,012 $8,155
CASH FLOW PER COMMON SHARE - BASIC $0.16 $0.40
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES - BASIC 25,604 20,373
COHO ENERGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In Thousands)
March 31, December 31,
1998 1997
---- ----
ASSETS
Current Assets 15,390 17,074
Property and Equipment 514,254 531,409
Other 6,491 6,645
-------- --------
$536,135 $555,128
-------- --------
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities 25,598 19,095
Long Term Debt 380,941 369,924
Deferred Income Taxes 6,094 20,306
-------- --------
412,633 409,325
-------- --------
Commitments and Contingencies 3,700 3,700
Shareholders' Equity 119,802 142,103
-------- --------
$536,135 $555,128
-------- --------
-------- --------
Common Shares Outstanding - Basic 25,604 20,373
CONTACT: Coho Energy, Inc. Jeffrey Clarke or Anne Anne, British princess Anne (Anne Elizabeth Alice Louise), 1950–, British princess, only daughter of Queen Elizabeth II and Prince Philip, duke of Edinburgh. She was educated at Benenden School. Marie O'Gorman O'Gorman is a surname and may refer to: People
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