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EQUITY OIL REPORTS 1992 THIRD QUARTER RESULTS; REPORTS ON DOMESTIC AND RUSSIAN EXPLORATION PROGRAMS

 EQUITY OIL REPORTS 1992 THIRD QUARTER RESULTS;
 REPORTS ON DOMESTIC AND RUSSIAN EXPLORATION PROGRAMS
 SALT LAKE CITY, Utah, Nov. 12 /PRNewswire/ -- Equity Oil Company (NASDAQ: EQTY) today reported that for the third quarter ended Sept. 30, 1992 net income was $107,723 or $0.01 per share on total revenues of $4,028,188. This compares to net income of $215,947 or $0.02 per share on total revenues of $3,841,255 for the comparable period in 1991. Net income for the first nine months of 1992 was $120,449 or $0.01 per share on total revenues of $11,502,979 compared to net income of $297,529 or $0.02 per share on total revenues of $11,676,271 in the same period of 1991.
 Fred H. Evans, president of Equity Oil Company, stated, "Although third quarter and year-to-date results were adversely impacted by significant decreases in interest income, cash flow from operations increased by over $1 million for the nine month period. Lower cash balances, coupled with lower interest rates in the money markets, decreased Equity's interest income by about 70 percent compared to last year's third quarter and nine month periods. However, Equity's overall financial strength is best indicated by our cashflow and our healthy balance sheet."
 Oil and Gas Pricing and Production
 The average posted price for crude at the Rangely Weber Sand Unit for the first nine months of 1992 was $20.27 per barrel, slightly lower than the $20.85 average during the same period of 1991. Gas prices were slightly higher, with the average price received for year-to-date gas sales at $1.40 per mcf, compared to $1.37 per mcf in 1991.
 For the 1992 nine month period, oil production increased by approximately 7 percent to 547,026 barrels from 512,022 barrels in 1991. This is primarily due to the company's acquisition of an additional 0.5 percent working interest at the Rangely Weber Sand Unit in late 1991. Year-to-date gas production was 815,690 mcf, a 6.5 percent decline from 873,211 mcf in the same period in 1991.
 Exploration and Development Programs
 During the first nine months of 1992, the company participated in the drilling of 17 wells, resulting in two producing oil wells, two wells that are still drilling or awaiting completion, two wells that have been temporarily abandoned and 11 dry holes.
 In addition to these prospects, the company plans to commence drilling operations on four other wells during the fourth quarter of 1992.
 Highlights of the company's year-to-date exploration and development program include:
 Smackover Program
 The second well of this five well program, the No. 1 Reed, was completed in the first quarter of 1992 as an oil well. Production of the well is awaiting completion of a gathering system that will enable the company to process gas along with the oil production. A stabilized initial production rate had not yet been obtained; however, the operator anticipates initial production in the range of 250-350 barrels of oil per day. The third well, the No. 1 McCreight, has been temporarily abandoned pending further evaluation. The fourth well, the No. 1 Tinney in Wood County, Texas, was plugged and abandoned. The fifth well will begin drilling in late 1992 or early 1993.
 Hatch Point Prospect
 The first well in this prospect, the No. 1 Hatch Point, has reached total depth and has been tested in three different zones. The well is currently shut-in, pending partner approval for work to remedy mechanical problems.
 Pegasus Prospect
 A horizontal test of the Bakken Shale located in Billings County, N.D., the No. 1-36 Pegasus well has been completed as an oil well. The well is currently producing at a rate of 200 barrels of oil per day. A second well is planned on the prospect in the fourth quarter of 1992. The company has a 15 percent working interest in the No. 1-36 well and will have a 21 percent working interest in the second and any subsequent wells.
 Symskaya Exploration
 As previously reported, Equity Oil formed Symskaya Exploration, Inc., an 80 percent-owned subsidiary, to explore, develop and produce oil and gas in the Krasnoyarsk region of the Russian Federation. Protocols entered into in November and December of 1991 set forth the rights that are to be reflected in a Production Sharing Contract. The original protocols included the right to select 10 percent of approximately 11 million acres (1.1 million acres net to Symskaya) on which Symskaya will have exclusive exploration, development and production rights.
 As of Sept. 30, 1992, Symskaya has selected the acreage to be included under the contract. That selection has been tentatively approved by Symskaya's Russian counterparts.
 Negotiations relating to the Production Sharing Contract are in process. Following the completion of the negotiations, the Contract will be submitted to appropriate Russian governmental authorities for registration, approval and the issuance of a License to explore, develop and produce. Full approval of the agreement and issuance of a License may require up to six months after signing.
 Mr. Evans, concluded, "Our conservative financial philosophy has allowed for the pursuit of exciting exploration opportunities here and abroad. While we will continue to pursue new opportunities, we will only do so at a level commensurate with our exploration spending objectives."
 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
 For the Three Months Ended Sept. 30, 1992 and 1991
 (Unaudited)
 Three months ended Sept. 30 1992 1991
 Revenues
 Oil and gas sales $3,900,373 $3,607,817
 Partnership income 75,300 73,374
 Interest income 47,019 166,067
 Other 5,496 (6,003)
 Total revenues 4,028,188 3,841,255
 Expenses
 Operating costs 1,587,974 1,724,952
 Depreciation, depletion and amortization 1,175,000 900,000
 Lease rentals 21,438 26,773
 Leasehold abandonments 20,354 --
 Exploration 701,909 481,198
 General and administrative 438,471 484,306
 Interest expense 31,819 --
 Total expenses 3,976,965 3,617,229
 Income before income taxes 51,223 224,026
 Provision for income taxes (56,500) 8,079
 Net income 107,723 215,947
 Weighted average shares of
 common stock outstanding 12,238,760 12,238,507
 Net income per weighted
 share outstanding 0.01 0.02
 Cash dividends declared per share 0.10 0.10
 EQUITY OIL COMPANY
 Statement of Operations
 For the Nine Months Ended Sept. 30, 1992 and 1991
 (Unaudited)
 Nine months ended Sept. 30 1992 1991
 Revenues
 Oil and gas sales $11,059,952 $10,741,243
 Partnership income 225,612 225,998
 Interest income 169,769 581,175
 Other 47,646 127,855
 Total revenues 11,502,979 11,676,271
 Expenses
 Operating costs 5,126,343 5,440,997
 Depreciation, depletion and
 amortization 3,100,000 2,700,000
 Lease rentals 53,337 80,719
 Leasehold abandonments 40,348 395,508
 Exploration 1,740,992 1,350,107
 General and administrative 1,319,615 1,240,663
 Interest expense 104,415 --
 Total expenses 11,485,050 11,207,994
 Income before income taxes 17,929 468,277
 Provision (benefit) for income taxes (102,520) 170,748
 Net income 120,449 297,529
 Weighted average shares of
 common stock outstanding 12,238,760 12,240,337
 Net income per weighted
 share outstanding 0.01 0.02
 Cash dividends declared per share 0.20 0.20
 EQUITY OIL COMPANY
 Balance Sheet
 9/30/92 12/31/91
 (Unaudited)
 Assets
 Current Assets:
 Cash $5,534,792 $5,637,779
 Notes receivable - ARCO -- 1,062,431
 Accounts & advances receivable 2,544,876 3,483,880
 Income taxes receivable 86,089 207,137
 Other current assets 306,233 329,759
 Total 8,571,990 10,720,986
 Property & equipment 88,480,551 85,391,074
 Less allowance for depletion,
 depreciation and amortization 43,349,825 40,363,416
 Total 45,130,726 4,027,658
 Other assets:
 Raven Ridge Pipeline Investment 973,638 1,083,818
 Total 973,638 1,083,818
 Total assets $54,676,354 $56,832,462
 Liabilities & Stockholders' Equity
 Current liabilities:
 Accounts payable $ 1,391,017 $ 1,863,972
 Accrued liabilities 632,380 208,958
 Dividend payable 1,223,380 --
 Accrued pension 120,517 138,165
 Income taxes payable -- --
 Current portion - note payable 460,000 460,000
 Current deferred income taxes 1,348,560 1,348,560
 Total 5,176,350 4,019,655
 Deferred income taxes 9,615,775 10,256,275
 Note payable 1,495,000 1,840,000
 Deferred compensation 33,333 33,333
 Total 11,144,108 12,129,608
 Stockholders' Equity:
 Capital stock 12,583,631 12,583,631
 Paid-in capital 2,401,351 2,401,352
 Retained earnings 24,452,911 26,780,213
 Less treasury stock (1,081,997) (1,081,997)
 Total 38,355,896 40,683,199
 Total liabilities and
 stockholders' equity $54,676,354 $56,832,462
 EQUITY OIL COMPANY
 Statement of Cash Flows
 (Unaudited)
 Nine months ended Sept. 30: 1992 1991
 Cash flow from operations:
 Net income $ 120,449 $ 297,529
 Adjustments
 Depreciation, depletion
 and amortization 3,100,000 2,700,000
 Partnership distribution in
 excess of income 110,180 103,078
 Property dispositions 72,892 509,364
 Decrease in deferred taxes (640,500) (273,750)
 Increase (decrease) from changes in:
 Receivable & operator advances 1,060,052 1,082,571
 Other assets 23,526 42,390
 Accounts payable & accrued
 liabilities (49,533) (1,513,727)
 Taxes payable -- (141,630)
 Plan contributions (17,648) (33,255)
 Net cash provided by operations 3,779,418 2,772,570
 Cash Flows from investing activities:
 Property & equipment additions (3,275,960) (3,043,503)
 Proceeds from sale of property -- 325,396
 Payment received on Arco note
 for sale of leases 1,062,431 1,015,873
 Net cash used in investing
 activities (2,213,529) (1,702,234)
 Cash flow from financing activities:
 Dividends paid (1,223,876) (1,224,346)
 Payment of long-term debt (345,000) --
 Purchase of treasury stock -- (27,542)
 Net cash used in financing
 activities (1,568,876) (1,251,888)
 Net increase (decrease) in cash (2,987) (181,552)
 Cash balance at beginning of period 5,637,779 10,065,556
 Cash balance at end of period 5,634,792 9,884,004
 Supplemental disclosure of cash
 flow information:
 Cash paid during period for:
 Income taxes 341,263 834,010
 Interest 104,415 --
 Supplemental schedule of non-cash and financing activities:
 On Aug. 12, 1992, the company declared a cash dividend of 10 cents per share, payable to shareholders of record as of Sept. 11, 1992. The total dividend of $1,223,876 was paid on Oct. 5, 1992.
 -0- 11/12/92
 /CONTACT: Fred H. Evans or Clay Newton of Equity Oil Company, 801-521-3515, or Marisa Heine or Jennifer Wall of D. F. King & Co., Inc., 212-269-5550, for Equity Oil Company/
 (EQTY) CO: Equity Oil Company ST: Utah IN: OIL SU: ERN


PS-OT -- NY037 -- 0178 11/12/92 12:35 EST
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