Printer Friendly

DEVON ENERGY REPORTS SIGNIFICANT INCREASES IN PRODUCTION, REVENUES, EARNINGS FOR THIRD QUARTER, NINE MONTHS

 OKLAHOMA CITY, Nov. 16 ~PRNewswire~ -- Devon Energy Corporation (AMEX: DVN) today reported significant production increases, led by the acquisition of Hondo Oil & Gas Co.'s U.S. properties on July 1, 1992, and by increased production at Devon's Northeast Blanco Unit (NEBU) in the San Juan Basin. These production gains, along with stronger natural gas prices, brought major advances in revenues and earnings for the third quarter and nine months ended Sept. 30, 1992.
 Third Quarter: Earnings on 314 Percent Sales Gain Compared with Loss Net earnings for the quarter were $5.2 million, or 26 cents per common share, compared with net earnings of $147,000, or a loss of 5 cents per common share, for the comparable 1991 period. (Weighted average shares outstanding increased 105 percent between the two periods, the result of a common stock offering that helped finance the Hondo acquisition.) Revenues for the latest three months rose 314 percent to $25.8 million from $6.2 million.
 Nine months: 100 percent sales gain reverses year earlier loss.
 For the year-to-date, net earnings were $7.3 million, or 48 cents per common share, compared with last year's net loss of $16.0 million, or $2.05 per common share. The 1991 nine months were negatively affected by a non-cash $25 million pre-tax charge to reduce the carrying value of properties. (The per-share earnings gains would have been greater, but weighted average shares outstanding increased 35 percent between the two periods as a result of the above-mentioned offering.) Revenues for the 1992 nine months reached $43.4 million, double the $21.8 million seen for the same period last year. This included an 84 percent increase in other revenues, to $3.1 million.
 Gas production, prices rise.
 For the third quarter and nine months, the company continued its pattern of significantly increasing production. Total oil and gas production rose 196 percent to 12.2 EBcf (equivalent billion cubic feet) from 4.1 million EBcf for last year's three months. For the nine months, total production was up 87 percent to 24.7 EBcf from 13.2 EBcf in 1991.
 Natural gas production for the quarter increased to 8.6 Bcf, or 153 percent, compared with 3.4 Bcf. Production gains were enhanced by a 32 percent increase in gas prices. The combination resulted in a 232 percent rise in gas sales between third quarter 1992 and 1991. For the nine months, gas production increased 80 percent to 19.7 Bcf from 11.0 Bcf. Higher production, plus a 6 percent increase in gas prices, brought a 90 percent gain in gas sales for the 1992 year-to-date.
 Third quarter oil production rose 401 percent to .60 million barrels from .12 million last year. The production increase brought oil sales to $11.7 million, a 398 percent increase for the quarter. For the nine months, oil production was up 122 percent to .83 million barrels from last year's .37 million barrels. Oil sales increased 120 percent for the nine months, to $15.9 million.
 Operating costs rise with acquisition in third quarter; lower on a per-unit basis for nine months.
 As expected, the Hondo properties' production and operating expenses are generally higher, on an absolute and per-unit basis, than those for Devon's other properties. Of the $6.1 million of recurring operations and maintenance expenses incurred in the latest quarter, $4.1 million related to the Hondo properties. This represented 90 percent of the increase in operating and maintenance expenses for the quarter and year- to-date, and cost an average of 72 cents per EMcf (equivalent thousand cubic feet) for the Hondo properties. For Devon in total, per-unit production and maintenance expenses for the quarter rose 28 percent to 69 cents per EMcf.
 For the nine months, although total production and maintenance expenses rose 85 percent to $14.2 million, they actually declined on a per-unit basis: to 57 cents per EMcf from last year's 58 cents per EMcf. The decline was a result of the significant increase in NEBU production, which has very low operating expenses. For example, on a per-unit basis, NEBU's recurring costs were only 6 cents per EMcf for the first nine months.
 DD&A rate increases.
 The Hondo acquisition also increased depreciation, depletion and amortization (DD&A) expense. For the third quarter, the DD&A rate was 58 cents per EMcf, 32 percent higher than the 44 cents per EMcf for last year's third quarter. The higher rate, combined with the 196 percent production increase, resulted in DD&A expense of $7.4 million for the third quarter, up 308 percent compared with last year.
 For the nine months, 1992's DD&A rate was 50 cents per EMcf, up 25 percent over the 1991 rate of 40 cents per EMcf. The higher rate, plus the 87 percent rise in production, brought a 140 percent increase in DD&A, to $12.9 million.
 Acquisition enhances balance sheet strength.
 Although long-term debt increased 120 percent as a result of the acquisition, to $70.3 million, the company's financial flexibility is greater than before the acquisition. At Sept. 30, 1992, the company had nearly $50 million of additional borrowing capacity.
 Positive outlook for fourth quarter and 1992.
 In discussing the outlook for Devon's fourth quarter and year, H. Allen Turner, vice president corporate development, said, "We expect gas prices will continue to show a very favorable comparison over what we saw at this time last year. Combining this with increased production from the new Hondo properties and more wells producing at a higher capacity at NEBU, we expect fourth quarter and 1992 will show significant improvement over the company's performance last year."
 Devon Energy Corporation is an independent energy company engaged primarily in oil and gas property acquisitions, exploration and production, and natural gas remarketing. The company ranks in the top 25 percent of U.S. publicly held oil and gas firms, measured by oil and gas reserves. Devon's common shares trade on the American Stock Exchange under the symbol DVN.
 DEVON ENERGY CORPORATION
 Financial Table
 (in thousands except per share and percent change data)
 Period ended Three months Percent Nine months Percent
 Sept. 30, 1992 1991 Change 1992 1991 Change
 INCOME STATEMENT DATA
 Total revenues $25,790 6,229 314 43,448 21,767 100
 Gas $12,092 3,639 232 24,439 12,870 90
 Oil 11,751 2,361 398 15,927 7,226 120
 Other 1,947 229 750 3,082 1,671 84
 Cash expenses 11,074 4,176 164 20,380 13,351 53
 Reduction of carrying
 value of oil and
 gas properties -- -- NA -- 25,000 NA
 Net earnings (loss) 5,238 147 NA 7,309 (16,071) NA
 Preferred
 stock dividends 567 567 NA 1,702 1,702 NA
 Net income (loss) per
 common share .26 (.05) NA .48 (2.05) NA
 Weighted average shares
 outstanding 17,848 8,69 105 11,768 8,685 35
 PRODUCTION DATA
 Total production
 (in equivalent billion
 cubic feet) 12,163 4,108 196 24,722 13,207 87
 Gas (billion
 cubic feet) 8,573 3,391 153 19,753 10,966 80
 Oil (thousands
 of barrels) 598 119 401 828 373 122
 Average Price (per equivalent
 thousand cubic feet) $ 1.96 1.46 34 1.63 1.52 7
 Average gas price (per thousand
 cubic feet) $ 1.41 1.07 32 1.24 1.17 6
 Average oil price
 (per barrel) $19.64 19.76 -1 19.23 19.35 -1
 BALANCE SHEET DATA
 (in thousands, except percent change data)
 Sept. 30, Dec. 31, Percent
 1992 1991 Change
 Total assets $237,824 102,107 133
 Long-term debt 70,290 32,000 120
 Stockholders' equity 145,605 53,015 175
 Common shares outstanding
 at end of period 18,038 8,693 108
 Preferred shares outstg.
 at end of period 1,144 1,170 -2
 For further information on Devon Energy by FAX, Dial 1-800-PRO-INFO, ext. 047
 ~CONTACT: Marian J. Moon, manager corporate communications, 405-235-3611, of Devon Energy; Lynne Franklin, 312-266-7800, or Kathy Phelan, 212-661-8030 both of The Financial Relations Board for Devon Energy~
 (DVN)


CO: Devon Energy Corporation ST: Oklahoma IN: OIL SU: ERN

SH -- NY093 -- 1402 11~16~92 15:19 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 16, 1992
Words:1369
Previous Article:IMTEC, INC. ANNOUNCES RESULTS FOR FIRST QUARTER, AND FISCAL YEAR 1993
Next Article:LIVING CENTERS OF AMERICA ANNUAL RESULTS UP 44 PERCENT
Topics:


Related Articles
DEVON ENERGY REPORTS PRODUCTION INCREASES, EXPENSE DECREASE, BUT LOWER REVENUES AND EARNINGS FOR THIRD QUARTER
DEVON ENERGY REPORTS INCREASED PRODUCTION REVENUES; DECREASE EARNINGS FOR SECOND QUARTER
DEVON ENERGY CORP. ANNOUNCES RECORD FIRST QUARTER PRODUCTION, REVENUES AND EARNINGS
Devon Energy Continues 1997 Record Performance with Strong Third Quarter and First Nine Months
Devon Energy Announces 1997 Results; Another Record Year
Devon Energy Corporation Reports Record Production, But Lower Earnings, For 1998 Second Quarter and First Half
Devon Energy Reports Third Quarter 1998 Loss.
Energy Search, Inc. Reports 165% Increase in Revenue and 142% Leap in Net Income for Third Quarter 1998.
Devon Energy Reports Third Quarter 1999 Results: Record Production, Record Revenues and Higher Earnings.
Devon Energy's Third Quarter 2001 Results Reflect Record Oil and Gas Production.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters