Crystal Oil Company Announces Year End Results and the Acquisition of Petal Gas Storage Company.SHREVEPORT, La.--(BUSINESS WIRE)--March 13, 1998--Crystal Oil Company (AMEX AMEX See: American Stock Exchange :COR cor (kor) [L.] heart. acute cor pulmonale acute overload of the right ventricle due to pulmonary hypertension, usually due to acute pulmonary embolism. ) today announced its results for the year ended December 31, 1997. For the year ended December 31, 1997, the Company reported revenues of $19.8 million and net income of $2.1 million, or $.78 per share, compared to revenues of $17.2 million and net income of $2.5 million, or $.93 per share, for the year ended December 31, 1996. Net income for 1997 included a nonrecurring pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern charge of $834 thousand for expenses associated with an unsuccessful acquisition. Revenues for 1997 increased as compared to 1996 primarily because of production from the DeSoto Parish oil and gas properties acquired in May of 1997. In addition, the Company today announced the closing of its previously announced acquisition of Petal Gas Storage Company ("Petal") on March 12, 1998. The acquisition of Petal will compliment Not to be confused with Complement. Compliment may be
Largely subsurface geologic structure that consists of a vertical cylinder of salt embedded in horizontal or inclined strata. In the broadest sense, the term includes both the core of salt and the strata that surround and are “domed” by the core. storage facility already owned by Hattiesburg Gas Storage Company, a subsidiary of Crystal, and which is located less than one mile from the Petal facility. With the acquisition of Petal, Crystal's subsidiaries will have over 6.7 billion cubic feet of natural gas storage working capacity with the ability to deliver in excess of 670 million cubic feet per day in this major corridor to the Northeastern natural gas markets. Joe Averett, President of the Company, stated, "This acquisition will make Crystal the largest independent provider of salt cavern natural gas storage in the U.S." The Company has completed the first five wells that have been drilled in the Bethany-Longstreet and Holly fields in DeSoto Parish, associated with its acquisition in May of 1997. In addition, the Company has two more wells in the process of completion and anticipates drilling additional wells in 1998. The production results from the completed wells have exceeded the Company's expectations. Mr. Averett further noted, "The Company was actively reviewing other acquisitions for the deployment of the Company's available cash as well as means for enhancing the value of its gas storage assets." Crystal Oil Company is an acquisition company that currently owns and operates through wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. two natural gas storage facilities near Hattiesburg, Miss., and holds various interests in oil and gas properties 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 and Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. . The Company
actively reviews acquisition with a focus on acquisitions that will
maximize the return on the Company's existing capital resources and
benefit from the Company's large net operating loss carryforwards Net operating loss carryforwardsApplication of losses to offset earnings in future years. and tax benefits. Statements in this release other than historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made in reliance upon the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. As such, the involved risks and uncertainties are subject to change at any time. The Company derives its forward-looking statements from its operating budgets Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. which are based on various assumptions, including matters regarding crude oil and natural gas production, prices, demand and supply, changes in the market for natural gas storage and transportation, the use of the Company's existing net operating tax loss carryforwards tax loss carryforward See carryforward. , regulatory uncertainties, legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. , and environmental matters. Although the Company believes its assumptions are reasonable, it is impossible to predict the impact of certain factors that could cause actual results to differ materially from those anticipated. -0-
The operating results and financial summary for the year ended
December 31, 1997 are as follows:
Three Months Ended Year Ended
December 31 December 31
------------------------------------------------
1997 1996 1997 1996
--------------------- ------------------------
Revenues $ 6,436,000 $ 4,416,000 $ 19,753,000 $ 17,206,000
Income from
operations before
provision for
income taxes $ 1,072,000 $ 926,000 $ 3,489,000 $ 4,063,000
Net income $ 608,000 $ 565,000 $ 2,080,000 $ 2,473,000
Income per
common share $ .23 $ .21 $ .78 $ .93
Income per common
share-
assuming full
dilution $ .22 $ .21 $ .76 $ .91
Weighted average
of common shares
outstanding 2,667,000 2,666,000 2,666,000 2,662,000
Weighted average
of common shares
outstanding -
assuming full
dilution 2,739,000 2,728,000 2,738,000 2,728,000
Year Ended December 31,
------------------------------
1997 1996
------------------------------
Current assets $ 71,241,000 $ 63,605,000
Marketable Securities 76,648,000 2,999,000
Property, plant & equipment 107,346,000 92,965,000
Other assets 38,327,000 10,024,000
-------------- --------------
Total assets $293,562,000 $169,593,000
============ ============
Current liabilities $ 3,883,000 $ 1,577,000
Long-term obligation 38,528,000 36,879,000
Deferred revenues 110,931,000 17,861,000
Stockholders' equity 140,220,000 113,276,000
------------- -------------
Total liabilities &
stockholders' equity $293,562,000 $ 169,593,000
============ =============
CONTACT: Crystal Oil Company, Shreveport Jeff Ballew, 318/222-7791 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion