Coho Energy reports improved second quarter 1996 results.DALLAS--(BUSINESS WIRE)--Aug. 14, 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 second quarter 1996 net income of $1,103,000 or $0.06 per share compared to a loss (after provision for preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) ) of $697,000 or $0.04 in the second quarter of 1995. Revenues rose 29% to $12.9 million from a restated $10.0 million in the same period of 1995. 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 during the quarter rose 62% to $5.9 million ($0.29 per share) from $3.7 million ($0.20 per share) last year. For the first half of 1996, Coho reported earnings of $2,138,000 or $0.11 per share versus a loss (after provision for preferred dividends) of $858,000 or $0.05 per share. Last year's results included earnings of $343,000 or $0.02 per share 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. . Revenues during this year's first half rose 30% to $25.3 million from $19.4 million (restated) last year. Cash flow rose 53% to $11.8 million ($0.58 per share) from $7.7 million ($0.42 per share) during the first half of 1995. The improvement in Coho's second quarter and first half financial performance is due to continued increases in crude oil production and higher prices for both crude oil and natural gas. Total net daily production during the second quarter rose 6.5% to 9,614 equivalent barrels of oil from 9,027 barrels in the same period of 1995. Crude oil production during the second quarter rose 15% to 6,615 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. from 5,767 barrels per day a year earlier, reflecting the continuing success of the company's exploitation program in 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 . Daily natural gas production declined to 18.0 million cubic feet during the second quarter from 19.6 million cubic feet the previous year, reflecting a temporary interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. in delivery at the long-lived long-lived adj. 1. Having a long life: a long-lived aunt. 2. Lasting a long time; persistent: a long-lived rumor. 3. 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 Field in 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. . Monroe production capacity remains close to 20 million cubic feet per day. Early in the third quarter, Coho's crude oil production has continued to increase, reflecting results from the company's capital program. At Martinville, Coho has implemented the waterflood Wa´ter`flood` n. 1. A flood of water; an inundation. project in the Rodessa East Fault block and is seeing a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. response. Two wells have been drilled and potential pay sands extensively tested for future development. The first well, a future take point for the Rodessa waterflood is currently producing from a Hosston reservoir. The second well, the testing of which has established development potential in a new Hosston reservoir, is producing from a new Sligo reservoir. Aggregate production from these two wells is currently 450 barrels of oil per day. Coho has also re-entered an old plugged and abandoned well, set casing and is currently testing the Hosston reservoir. A sidetrack from an existing well bore is the fourth well in the program and is currently being tested. A fifth well has been drilled to total depth in the Hosston formation, logged, and is currently being cased prior to testing. Two additional wells are currently drilling. Both of these wells will be drilled, testing different fault blocks, to the salt at approximately 15,000 feet. Coho anticipates testing the Cotton Valley and possibly the Smackover formations at these depths. The company expects to add substantial production from the three wells currently being completed but not on production and from the two drilling wells. This activity is a direct result of the 3D seismic program shot last year. Coho plans two other new wells during the remainder of the year. Recent results at the company's Brookhaven field have also been very encouraging. Two successful oil wells were drilled during the quarter and completed in the third quarter and an inactive in·ac·tive adj. 1. Not active or tending to be active. 2. a. Not functioning or operating; out of use: inactive machinery. b. waterflood project was reimplemented. Capital expenditures during the first half of 1996 were $21.3 million compared to $12.3 million during the first half of 1995. Second quarter 1996 capital expenditures were $13.4 million. Coho's primary emphasis during 1996 has been in the Martinville, Brookhaven, and Soso fields. In the second half, Coho plans to complete the 37 square mile 3D seismic program at 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. , drill ten additional wells including two in Martinville, four in Brookhaven and four in Summerland and Laurel. In April 1996, Coho completed the sale of its 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. gas pipeline and gas marketing segment for a total value of $23 million, including assumption of net financial liabilities. The sale was effective Jan. 1, 1996. In last year's results, these operations were restated as discontinued operations. Proceeds from the sale were used to reduce long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. , which declined to $96.0 million at June 30, 1996 from $107.4 million at the start of the year. On Aug. 8, 1996, the company amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility whereby the lenders have increased their commitments from $147.5 million to $250 million and increased the borrowing base from $110 million to $130 million with an additional $20 million immediately available to the company to provide bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. for acquisitions. Additionally, the repayment period has been extended two years from January 1998 to January 2000 and the maximum interest rate has been reduced by 0.5%. The board of directors has approved an $8 million increase in Coho's capital expenditures program for 1996 to $44 million. 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. For further information, please contact, Jeffrey Clarke, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. or Anne Marie O'Gorman, senior vice president at 214/774-8300. -0-
COHO ENERGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(In Thousands)
Dec. 31, June 30,
1995 1996
ASSETS Current Assets $ 24,259 $ 9,387 Property and Equipment 175,899 189,406 Other 2,401 1,898
$202,559 $200,691
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities $ 11,309 $ 15,455 Long Term Debt 107,403 95,959 Deferred Income Taxes 9,526 12,781
128,238 124,195
Shareholders' Equity 74,321 76,496
$202,559 $200,691
Common Shares Outstanding 20,165 20,172 -0-
COHO ENERGY INC.
SUMMARY OF FINANCIAL RESULTS
(In Thousands, Except Per Share Data)
Three Months Six Months
Ended Ended
June 30, June 30,
1995 1996 1995 1996
restated restated
Oil production (BBL/D) 5,767 6,615 5,692 6,612 Gas production (MCF/D) 19,559 17,992 19,869 17,938 Production (BOE/D) 9,027 9,614 9,003 9,602 Average sales price $/BBL 13.97 16.25 13.72 15.71 $/MCF 1.50 1.93 1.46 1.96
Operating revenues
Net oil and gas
production $10,000 $ 12,938 $19,402 $25,305
Operating expenses
Oil and gas production 2,614 2,711 5,218 5,541
Taxes on oil and gas
production 529 669 947 1,266
General and
administrative 1,685 1,840 3,029 3,299
Depletion and
depreciation 3,851 3,980 7,313 7,885
Total operating expenses 8,679 9,200 16,507 17,991 Interest expense 1,904 1,888 3,704 3,723 Income taxes (benefit) (222) 747 (308) 1,453 Income from discontinued operations 26 --- 343 --- Net earnings (loss) (335) 1,103 (158) 2,138 Dividends on preferred stock (362) --- (700) --- Net earnings (loss) applicable to common stock $ (697) $ 1,103 $ (858) $2,138 Earnings (loss) per common share $ (0.04) $ 0.06 $ (0.05) $ 0.11 Cash flow from operating activities $ 3,678 $ 5,959 $ 7,704 $11,793 Cash flow per common share $ 0.20 $ 0.29 $ 0.42 $ 0.58 Weighted average number of common share equivalents 16,783 20,418 16,783 20,337 -0- CONTACT: Coho Energy Inc., Dallas Jeffrey Clarke/Anne Marie O'Gorman 214/774-8300 |
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