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EQUITY OIL COMPANY REPORTS 133 PERCENT INCREASE IN 1992 NET INCOME FROM OPERATIONS; AND 1992 EPS OF $.07, INCLUDING EFFECT OF ACCOUNTING CHANGE

 SALT LAKE CITY, Jan. 20 /PRNewswire/ -- Equity Oil Company (NASDAQ-NMS: EQTY) today reported 1992 net income of $2,905,749 or $.24 per share on total revenues of $16,031,566. This compares to $314,444 or $.03 per share reported in 1991 on total revenues of $16,418,697. Included in 1992 income is a benefit of $2,104,309 or $.17 per share relating to the cumulative effect of a change in accounting for the company's share of purchased carbon dioxide associated with the enhanced oil recovery project at the Rangely Weber Sand Unit. Net income from operations in 1992 was $801,440 or $.07 per share, an increase of 133 percent over net income of $314,444 or $.03 per share reported in 1991. The accounting change increased 1992 net income from operations by $368,968 or $.03 per share.
 Regarding the change in accounting method, Fred H. Evans, president, said, "Equity previously expensed the CO2 purchase costs at the Rangely Weber Sand Unit, which produced a higher than industry-average lifting cost per barrel of oil. A survey of other companies involved with similar projects showed that the majority capitalize these costs. By changing our accounting method, we believe that, going forward, we will provide a more accurate comparison to our industry peers."
 Evans continued, "Also during this period, cash flow from operations increased by $2,354,000, with $1.2 million of the increase attributable to the accounting change. Equity continues to maintain a strong financial position, enabling it to participate in exciting exploration projects both here and abroad."
 Fourth quarter net income from operations was $371,521 or $.03 per share on total revenues of $4,528,587.
 Oil and Gas Production, Pricing and Reserves
 Equity recorded the highest yearly oil production total of the last ten years in 1992 of 738,000 barrels, an increase of 4 percent over 709,000 barrels in 1991. Gas production tailed off slightly, dropping from 1,255,000 Mcf in 1991 to 1,091,000 Mcf in 1992.
 Posted prices for Western Colorado crude oil, which accounts for 66 percent of the company's total oil production, averaged $20.28 in 1992, down slightly from $20.92 in 1992.
 Total proved developed reserves at Dec. 31, 1992, consisted of 8,889,000 barrels of oil and 13,062,000 Mcf of gas. This compares to year-end 1991 proved developed reserves of 9,125,000 barrels of oil and 14,091,000 Mcf of gas.
 Equity Oil Company, headquartered in Salt Lake City, is an independent oil and gas exploration and production company with operations in nine western states and Canada.
 EQUITY OIL COMPANY
 Statement of Operations
 Year ended Dec. 31 1992 1991
 Revenues:
 Sales $15,222,887 $15,286,707
 Interest and dividends:
 ARCO 4,235 54,825
 Investments 205,155 636,756
 Other 277,289 148,388
 Raven Ridge pipeline 322,000 292,021
 Total revenues 16,031,566 16,418,697
 Expenses:
 Lease operations 5,481,102 7,505,337
 Lease rentals 73,721 110,933
 Depreciation, depletion,
 amortization 4,868,084 4,108,950
 Abandonments 115,979 1,086,752
 Overhead 1,939,682 1,752,816
 Exploration 2,386,152 1,816,491
 Interest 134,487 7,188
 Total expenses 14,999,207 16,388,467
 Income before income taxes 1,032,359 30,230
 Provision (benefit) for
 income taxes 230,919 (284,214)
 Net income from operations
 before change in accounting method 801,440 314,444
 Cumulative effect of a change in
 accounting method (net of taxes) 2,104,309 --
 Net income $ 2,905,749 $ 314,444
 Net income per share from operations
 before change in accounting method $0.07 $0.03
 Net income per share from
 cumulative effect of a change
 in accounting method 0.17 0.00
 Net income per share $0.24 $0.03
 Weighted average shares outstanding 12,238,760 12,239,896
 EQUITY OIL COMPANY
 Balance Sheet
 12/31/92 12/31/91
 ASSETS
 Current assets:
 Cash $ 5,256,432 $ 5,637,779
 Notes receivable -- 1,062,431
 Accounts receivable 2,339,268 2,467,880
 Operator advances 769,000 1,016,000
 Federal, state and foreign
 income taxes receivable 38,288 207,137
 Deferred tax assets 149,735 --
 Other current assets 304,969 329,759
 Total current assets 8,857,692 10,720,986
 Property and equipment:
 Oil & gas leaseholds:
 Developed 6,208,251 5,987,386
 Undeveloped 3,777,079 2,964,482
 Intangible drilling costs 60,608,707 52,128,850
 Equipment 24,956,964 24,310,356
 Total 95,551,001 85,391,074
 Less accumulated depreciation,
 depletion and amortization 47,218,625 40,363,416
 Total 48,332,376 45,027,658
 Investment in Raven Ridge
 Pipeline Partnership 964,812 1,083,818
 Total other assets 964,812 1,083,818
 Total assets $58,154,880 $56,832,462
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 1,837,116 $ 1,863,972
 Accrued liabilities 701,141 208,958
 Accrued pension 161,316 138,165
 Federal, state and foreign
 income taxes payable 64,238 --
 Current portion - note payable 460,000 460,000
 Current portion of deferred
 income taxes -- 1,348,560
 Total current liabilities 3,223,811 4,019,655
 Noncurrent portion of deferred
 income taxes 12,409,873 10,256,275
 Note payable 1,380,000 1,840,000
 Deferred compensation payable -- 33,333
 Total 13,789,873 12,129,608
 Stockholders' equity:
 Common stock 12,583,631 12,583,631
 Paid-in capital 2,401,351 2,401,352
 Retained earnings 27,238,211 26,780,213
 Total 42,223,193 41,765,196
 Less cost of treasury stock (1,081,997) (1,081,997)
 Total 41,141,196 40,683,199
 Total liabilities and
 stockholders' equity $58,154,880 $56,832,462
 EQUITY OIL COMPANY
 Statement of Cash Flows
 Year ended Dec. 31 1992 1991
 Cash flows from operating activities:
 Net income $ 2,905,749 $ 314,444
 Adjustments to reconcile net income
 to net cash provided by operating
 activities:
 Cumulative effect of a change in
 accounting method (2,104,309)
 Depreciation, depletion, and
 amortization 4,868,084 4,108,950
 Loss on abandonment
 Property dispositions 314,658 1,095,616
 Change in partnership 119,006 146,747
 Change in deferred taxes (652,734) (1,029,878)
 Increase (decrease) from changes in:
 Accounts payable and accrued
 liabilities 465,327 (894,568)
 Taxes payable 64,238 (141,630)
 Plan contributions 23,151 1,453
 Receivables and operator advances 544,461 573,677
 Deferred compensation (33,333) --
 Other assets 24,790 10,297
 Net cash provided by operating
 activities 6,539,088 4,185,108
 Cash flows from investing activities:
 Payment received on Atlantic Richfield
 note 1,062,431 1,015,873
 Proceeds from sale of property 437,384 481,704
 Capital expenditures (5,512,498) (9,935,792)
 Net cash used in investing activities (4,012,683) (8,438,215)
 Cash flows from financing activities:
 Payment of dividends (2,447,752) (2,448,196)
 Payment of long-term debt (460,000) --
 Proceeds from loan 2,300,000
 Issue of Treasury stock 11,195
 Purchase of Treasury stock (37,669)
 Net cash used in financing activities (2,907,752) (174,670)
 Net increase in cash and cash equivalents (381,347) (4,427,777)
 Cash and cash equivalents at beginning of
 year 5,637,779 10,065,556
 Cash and cash equivalents at end of
 period $ 5,256,432 $ 5,637,779
 -0- 1/20/93
 /CONTACT: Fred H. Evans, president, or Paul M. Dougan of Equity, 801-521-3515; or Marisa A. Heine or Jennifer R. Wall of D. F. King & Co., in New York, 212-269-5550, for Equity/
 (EQTY)


CO: Equity Oil Company ST: Utah IN: OIL SU: ERN

GK-OS -- NY018 -- 6799 01/20/93 10:37 EST
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Date:Jan 20, 1993
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