Coho Energy reports 143% increase in cash flow and profitable results in 1995.DALLAS--(BUSINESS WIRE)--March 21, 1996--Coho Energy Inc. (NASDAQ-NMS: COHO; TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : CEE cee n. The letter c. ) today reported that 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 1995 reached a record $19.2 million ($1.02 per share), a 143% increase over the $7.9 million ($0.55 per share) reported for the year in 1994. The company also reported earnings for the year were $1.8 million compared to a loss of $1.7 million in 1994. After provision for preferred share dividends, per share earnings were $0.05 in 1995 as compared with a loss of $0.12 in the previous year. The increase in 1995 cash flow was the result of higher crude oil and natural gas production, improved commodity prices and income from natural gas marketing and transportation. The increase in earnings is attributable to the higher income from operations and lower depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able rates resulting from an increase in oil and gas reserves. In the fourth quarter of 1995, cash flow from operating activities (before working capital adjustments) was $7.2 million ($0.36 per share) as compared with $0.9 million ($0.06 per share) in the same period last year. The fourth quarter of 1994 was impacted by a non-recurring restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $2.5 million. Earnings for the fourth quarter of 1995 were $2.0 million as compared with a loss of $1.6 million in the same quarter a year earlier. Earnings per share were $0.10 for the fourth quarter of 1995, versus a loss, after provision of preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) , of $0.12 in the fourth quarter of 1994. The natural gas marketing and transportation segment, which the company has reached an agreement to sell for a total consideration of $23 million, has been restated as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Closing of the transaction is expected by month end and 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). will be used to reduce bank debt to approximately $87 million. Total net daily production in 1995 averaged 9,205 barrels of oil equivalent (BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip ) compared with 5,722 in 1994. Net daily production was 5,966 barrels of oil and 19.4 million cubic feet of gas and 5,416 barrels of oil and 1.8 million cubic feet of natural gas during 1995 and 1994, respectively. Production in 1995 represented Coho's ninth consecutive year of increased oil output, reflecting the company's aggressive development efforts in the 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 Salt Basin, together with the acquisition of the Monroe Monroe. 1 Industrial city (1990 pop. 54,909), seat of Ouachita parish, SE La., on the Ouachita River; founded c.1785, inc. as a city 1900. The center of the great Monroe Natural Gas Field (discovered 1915), it has important chemical plants, as well as gas reserves in late 1994. During the year, Coho implemented five secondary recovery projects, drilled six new wells and recompleted numerous existing wells in the 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. , Summerland Summerland can refer to: Places
SOSO Stability Operations and Support Operations SOSO Spouse or Significant Other SOSO State Owned, State Operated and Martinville fields. In addition, the company acquired the nearby 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 and began an exploitation program designed to substantially increase production. As previously reported, capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. in 1995 totaled $33 million compared to $19.1 million in 1994. These efforts resulted in a 19% increase, after taking account of production, in year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1995 oil and gas reserves to a record level of 48.8 million barrels of oil equivalent, approximately 63% of which was oil. Coho plans a capital program of $35 million, including an aggressive development program in the Martinville Field. "We believe that our financial and operating results in 1995 reflect the high quality opportunities available to Coho in the Mississippi Salt Basin," stated Jeffrey Clarke, chairman and chief executive officer. The company's momentum and its project inventory continue to grow and we are excited about the prospects for 1996. Our secondary recovery projects have been highly successful and evaluation of our recent 3-D seismic survey continues to identify new drilling opportunities. At the same time, the pending sale of our natural gas transportation and marketing operations will allow us to reduce debt and improve our financial flexibility." Coho Energy Inc. is a Dallas 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 the Mississippi Salt Basin. -0-
COHO ENERGY INC.
SUMMARY OF FINANCIAL RESULTS
(In Thousands, Except Per Share Data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
1994 1995 1994 1995
restated restated
Oil production (BBL/D) 5,832 6,371 5,416 5,966 Gas production (MCF/D) 6,781 18,542 1,836 19,431 Production (BOE/D) 6,962 9,461 5,722 9,205 Average sales Price $/BBL 12.91 13.65 12.86 13.62 $/MCF 1.56 1.81 1.55 1.59
Operating revenues
Net oil and gas
production $ 7,906 $ 11,083 $ 26,464 $ 40,903
Operating expenses
Oil and gas production 2,214 2,535 7,840 10,514
Taxes on oil and gas
production 439 512 1,532 1,943
General and
administrative 1,016 1,076 3,435 5,400
Restructuring 973 --- 973 ---
Depletion and
depreciation 3,127 3,439 9,989 14,717
Total operating expenses 7,769 7,562 23,769 32,574 Interest expense 1,387 2,194 3,972 8,048 Income taxes (benefit) (317) 510 (303) 112 Income (loss) from discontinued operations (680) 1,155 (680) 1,611 Net earnings (loss) (1,613) 1,972 (1,654) 1,780 Dividends on preferred stock (86) --- (86) (944) Net earnings (loss) applicable to common stock $ (1,699) $ 1,972 $ (1,740) $ 836 Earnings (loss) per common share $ (0.12) $ 0.10 $ (0.12) $ 0.05 Cash flow from operating activities $ 938 $ 7,244 $ 7,928 $19,227 Cash flow per common share $ 0.06 $ 0.36 $ 0.55 $ 1.02 Weighted average number of common shares outstanding 14,701 20,165 14,190 17,932 -0-
COHO ENERGY, INC.
CONDENSED CONSOLIATED BALANCE SHEET
DECEMBER 31
(In Thousands)
1994 1995
ASSETS Current Assets $ 22,852 $ 24,259 Property and Equipment 171,524 175,899 Other 2,594 2,401
$196,970 $202,559
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities $ 25,231 $ 11,309 Long Term Debt 86,311 107,403 Deferred Income Taxes 12,887 9,526
124,429 128,238
Redeemable Preferred 16,125 ---- Shareholders' Equity 56,416 74,321
$196,970 $202,559
Common Shares Outstanding 16,783 20,165 CONTACT: Coho Energy Inc., Dallas Jeffrey Clarke/Anne Marie O'Gorman 214/774-8300 |
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