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EQUITY OIL REPORTS 1991 FOURTH QUARTER AND YEAR-END RESULTS

 EQUITY OIL REPORTS 1991 FOURTH QUARTER AND YEAR-END RESULTS
 SALT LAKE CITY, Utah, Feb. 4 /PRNewswire/ -- Equity Oil Company (NASDAQ: EQTY) today reported fourth quarter net income of $16,915 (less than a penny per share) on total revenues of $4,742,426, compared to net income of $1,532,864 or $.13 per share on total revenues of $6,592,656 in the fourth quarter of 1990.
 For the year ended Dec. 31, 1991, net income was $314,444 or $.03 per share on total revenues of $16,418,697, compared to net income of $2,151,434 or $.18 per share on total revenues of $19,587,467 in the same period in 1990.
 Fred H. Evens, president of Equity Oil, commenting on the results stated, "The lower net income and revenues for the fourth quarter and full year 1991 were due to sharply lower oil and gas prices resulting from the dramatic changes in worldwide political and economic affairs. Despite this, we are pleased that we have maintained our focus of expanding our reserve and production base through exploration, development and the acquisition of proved reserves. This is evidenced by our completion of five oil wells and four gas wells, our purchase of an additional 0.5 percent working interest in the Rangely Weber Sand Unit and our formation of a joint venture to explore for oil and gas in Eastern Siberia."
 Oil and Gas Reserves, Production and Pricing
 Evans further commented, "The 1991 purchase of an additional 0.5 percent working interest in the Rangely Weber Sand Unit in Colorado, coupled with exploration and development activities, resulted in the addition of proved oil reserve of 1,024,000 barrels, equal to 144 percent of the oil we produced during the year, and a 2 percent increase in oil production to 708,660 barrels. We consider the purchase of the Rangely interest to be an outstanding opportunity to purchase high quality, long life oil reserves at a very favorable price. Unfortunately, gas production dropped by 12 percent to 1.26 billion cubic feet due in part to the inability of wells in the company's Cemetery Ridge Prospect to match their initial high production rates of the first quarter of 1990."
 The average price for oil was $19.15 per barrel in 1991, 17 percent lower than the average price of $23.04 per barrel in 1990. The average posted price for Western Colorado crude oil, which accounts for 67 percent of Equity's production, averaged $24.15 in 1990, compared to 1991's average of $20.92. Moreover, gas prices declined by 15 percent to $1.37 per MCF in 1991 from $1.61 per MCF in 1990.
 Exploration and Development Activities
 In 1991, Equity dramatically increased both the scope and funding of its exploration and development programs. During the year, the company participated in the drilling of 25 wells, of which five were completed as oil wells, four as gas wells, 15 were dry holes and one is undergoing further evaluation.
 Highlights of the company's 1991 exploration program include:
 Vaughn Petroleum/Smackover Program:
 The first two of five Smackover trend prospects, operated by Vaughn Petroleum, Inc., of Dallas have been completed. The first prospect, the No. 1 Harris was completed in an interval of 13,264 to 13,320 feet and was tested at an initial daily rate of 2.1 million cubic feet of gas and 259 barrels of condensate per day. The second prospect, the No. 1 Reed was completed after year-end 1991 and is awaiting testing. Equity has a 12.5 percent working interest in each well.
 Coastline Exploration/Cemetery Ridge:
 Equity participated with Coastline Exploration, Inc. of Houston in the drilling and completion of two additional gas producing wells in the Cemetery Ridge prospect in Goliad County, Texas. The wells, the No. 1 Rau and the No. 1 Jacob Wagner are both on production from the Recklaw formation at a daily rate of 1.1 and 0.4 million cubic feet and 16 and 3 barrels of condensate per day, respectively. Equity has a 12.5 percent interest in each well.
 Coastline Exploration/Frio Sand:
 Equity also participated with Coastline in the drilling and completion of the No. 2 Heffelfinger well in Matagorda County, Texas. The well, a 9,530 foot Frio Sand completion is on production at a daily rate of 1.1 million cubic feet and 8 barrels of condensate per day. Equity has a 43.75 percent working interest in the well.
 Formation of Symskaya Exploration, Inc.
 In a major departure from the company's focus on domestic and Canadian exploration, Equity and coastline have formed Symskaya Exploration, Inc., for the purpose of exploring for oil and gas in the Krasnoyarsk region of Eastern Siberia in the Russian Republic. Equity will own 80 percent of the stock of the company and Coastline will own the remaining 20 percent.
 Outlook
 "We enter 1992 with seven significant exploration prospects in the United States and one in Canada. We are confident that our expanding exploration program will continue to add reserves and production and that our opportunity in Russia exposes us to potential reserves of major proportions. We have every intention to aggressively pursue this opportunity but will do so within a financial framework that will not impair our domestic activity nor the fundamental financial strength of the company," Evans stated.
 Equity Oil, headquartered in Salt Lake City, is an independent oil and gas exploration and development company with operations in nine western states and Canada.
 EQUITY OIL COMPANY
 Statement of Operations
 Years ended Dec. 31 1991 1990
 Income:
 Sales $15,286,707 $18,378,305
 Interest and dividends
 ARCO 54,825 103,008
 Investments 636,756 756,219
 Other 148,388 45,985
 Ravenridge Pipeline 292,021 303,950
 Total 16,418,697 19,587,467
 Expenses:
 Lease operations 7,505,337 7,544,964
 Lease rentals 110,933 104,550
 Depreciation-Depletion-Amortization 4,108,950 3,450,533
 Loss on property abandonment 0 1,960,000
 Abandonments 1,086,752 437,019
 Exploration 1,816,491 2,367,737
 Overhead 1,752,816 1,415,687
 Interest 7,188 3,125
 Total 16,388,467 17,283,615
 Income before taxes 30,230 2,303,852
 Provision (benefit) for income taxes (284,214) 152,418
 Net income 314,444 2,151,434
 Net income per common share $.03 $.18
 Weighted average shares outstanding 12,239,896 12,243,247
 Balance Sheet
 At Dec. 31 1991 1990
 Assets:
 Current assets:
 Cash $5,637,779 $10,065,556
 Notes receivable 1,062,431 1,086,317
 Accounts receivable 2,467,880 2,919,250
 Operator advances 1,016,000 954,000
 Federal, state and foreign
 income taxes receivable 207,137 367,558
 Other current assets 329,759 340,056
 Total current assets 10,720,986 15,732,737
 Property and equipment:
 Oil and gas leaseholds:
 Developed 5,987,386 1,185,363
 Undeveloped 2,964,482 2,503,845
 Intangible drilling cost 52,128,850 50,685,589
 Equipment 24,310,356 23,240,505
 Total 85,391,074 77,615,302
 Less accumulated depreciation, depletion
 and amortization 40,363,416 36,837,167
 Total 45,027,658 40,778,135
 Notes receivable, ARCO 0 1,015,873
 Investment in Raven Ridge Pipeline
 Partnership 1,083,818 1,230,565
 Total other assets 1,083,818 2,246,438
 Total assets 56,832,462 58,757,310
 Liabilities and stockholders' equity:
 Current liabilities:
 Accounts payable 1,863,972 2,211,519
 Accrued liabilities 201,770 755,978
 Accrued pension 138,165 136,712
 Federal, state and foreign income taxes
 payable 0 141,630
 Note payable - current portion 467,188 ---
 Current portion of deferred income taxes 1,348,560 1,085,221
 Total current liabilities 4,019,655 4,331,060
 Noncurrent portion of deferred inc. taxes 10,256,275 11,549,492
 Note payable -- long-term portion 1,840,000 ---
 Deferred compensation payable 33,333 33,333
 Total 12,129,608 11,582,825
 Stockholders' equity:
 Common stock 12,583,631 12,583,631
 Paid in capital 2,401,351 2,407,944
 Retained earnings 26,780,213 28,913,965
 Total 41,765,195 43,905,540
 Less cost of treasury stock (1,081,996) (1,062,115)
 Total 40,683,199 42,843,425
 Total liabilities & stockholders' equity 56,832,462 58,757,310
 Statement of Cash Flows
 Increase (Decrease) in Cash
 Years ended Dec. 31 1991 1990
 Cash flows from operating activities:
 Net income $314,444 $2,151,434
 Adjustments to reconcile net income to net
 cash provided by operating activities:
 Depreciation, depletion and amortization 4,108,950 3,450,533
 Loss on abandonment --- 1,960,000
 Property dispositions 1,095,616 503,927
 Change in partnership 146,747 139,294
 Decrease in deferred taxes (1,029,878) (631,839)
 Increase (decrease) from changes in:
 Accounts payable & accrued liabilities (894,567) 1,482,286
 Taxes payable (141,630) 141,630
 Plan contributions 1,453 11,055
 Receivables and operator advances 573,677 (901,134)
 Other assets 10,297 (15,757)
 Net cash provided by operating activities 4,185,109 8,291,429
 Cash flows from investing activities:
 Payment received on Atlantic
 Richfield note 1,015,873 967,498
 Proceeds from sale of property 481,704 0
 Capital expenditures (9,935,792) (5,645,633)
 Net cash used in investing activities (8,438,215) (4,678,135)
 Cash flows from financing activities:
 Payment of dividends (2,448,197) (1,224,325)
 Proceeds from long-term loan 2,300,000 0
 Purchase of treasury stock 11,195 ---
 Issue of treasury stock (37,669) 874
 Net cash used in financing activities (174,671) (1,223,451)
 Net increase in cash and cash equivalents (4,427,777) 2,389,843
 Cash and cash equivalents at beginning
 of year 10,065,556 7,675,713
 Cash and cash equivalents at end of period 5,637,779 10,065,556
 -0- 2/4/92
 /CONTACT: Fred H. Evans or Paul Dougan of Equity Oil, 801-521-3515, or Marisa Heine or Jennifer Wall of D.F. King & Co., 212-269-5550, for Equity Oil/
 (EQTY) CO: Equity Oil Company ST: Utah IN: OIL SU: ERN


SM-KD -- NY039 -- 6678 02/04/92 12:13 EST
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