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HADSON ENERGY RESOURCES CORPORATION ANNOUNCES SECOND QUARTER AND YEAR-TO-DATE EARNINGS AND CASH FLOWS

 HADSON ENERGY RESOURCES CORPORATION ANNOUNCES SECOND QUARTER AND
 YEAR-TO-DATE EARNINGS AND CASH FLOWS
 OKLAHOMA CITY, Aug. 10 /PRNewswire/ -- Hadson Energy Resources Corporation (NASDAQ: HERC) today announced earnings for the second quarter of 1992 of $949,000, or $.15 per share, on total revenue of $10.2 million. This compares to net earnings of $916,000, or $.15 per share, on total revenue of $9.6 million reported for the second quarter of 1991. Cash flows provided by operating activities (before change in non-cash working capital) were $5.4 million ($.89 per share) for the current quarter as compared with $6.3 million ($1.02 per share) for the same quarter of 1991, a decrease of 13 percent. The higher cash flows reported for the prior year were largely attributable to a $1 million current tax benefit recorded in the second quarter of 1991.
 For the six months ended June 30, 1992, the company reported earnings of $1.8 million, or $.30 per share, on total revenue of $20.2 million. This compares with reported earnings of $2.7 million, or $.44 per share, on total revenue of $20.4 million for the first six months of 1991. Cash flows provided by operating activities, as defined, were $11 million ($1.79 per share) for the current six month period as compared to $12.8 million ($2.09 per share) for the corresponding period of 1991. The higher cash flows realized in the prior year period are largely due to the current tax benefit discussed above.
 Higher Australian Oil Production; Modest Declines In U.S. Production
 The company continued to report growth in overall oil production in relation to the prior year. Australian oil production for the current quarter increased by six percent to approximately 287,000 barrels as compared to 271,000 barrels for the second quarter of 1991. This increase is largely attributable to oil production from the company's Tanami-1 discovery. In the United States, the company experienced modest production declines in both oil and gas production. Domestic oil production was 108,000 barrels for the current quarter as compared to 111,000 for the comparable period of 1991. Domestic gas production was 1.1 billion cubic feet of gas, 12 percent less than the prior year's level of 1.3 billion cubic feet. This decline is principally the result of pipeline curtailment (in the case of gas production) and normal reservoir depletion.
 Mixed Oil Prices; Higher Domestic Gas Prices
 The price realized by the company for its Australian oil production during the second quarter improved to $21.93 per barrel in relation to $19.80 per barrel for the second quarter of 1991, an increase of 11 percent. Domestic oil price realizations, however, declined to $19.21 per barrel compared to $21.18 for the prior year period, a decrease of nine percent. In contrast, domestic gas prices improved in relation to the prior year, increasing 11 percent to $1.54 per thousand cubic feet as compared to $1.39 for 1991.
 Managements Comment
 William C. Rankin, senior vice president and chief financial officer, stated, "Management is pleased to report another quarter of favorable financial results. The company is running ahead of its plan for the first half of 1992 and we expect to exceed it for the full year. Additionally, the commencement of Australian gas sales from the Harriet Gas Gathering Project in July of this year represents the attainment of a significant operational goal. The combination of these gas sales, relatively stable oil prices and an improved domestic gas price forecast should result in improved earnings and cash flows for the remainder of 1992."
 Merger Proposal
 With respect to the merger proposal extended by The Wiser Oil Company, the company has engaged Merrill Lynch, Pierce, Fenner & Smith Incorporated to assist the board of directors in the evaluation of the offer. The evaluation process should be substantially complete in approximately two to three weeks. Since the announcement of Wiser's proposal, introductory expressions of interest regarding possible business combinations have been received from other companies, but no competing offers have been received at this time. Hadson Corporation has not made a statement with reference to the Wiser offer nor its immediate plans for its ownership in HERC's stock. Additionally, HERC's board of directors has not yet made a determination whether a sale of the company best serves the interests of its shareholders.
 Hadson Energy Resources Corporation is an energy company engaged in international and domestic crude oil and natural gas exploration, development and production.
 Selected financial and operating statistics for the quarters and the six month periods ended June 30, 1992 and 1991 are presented below:
 HADSON ENERGY RESOURCES CORPORATION
 Periods ended Quarter Six months
 June 30 1992 1991 1992 1991
 Financial Results
 (In millions, except
 per share figures)
 Revenue $10,206 $ 9,613 $20,234 $20,376
 Net earnings 949 916 1,824 2,680
 Net earnings per share $.15 $.15 $.30 $.44
 Cash flows from operations 5,440 6,258 10,982 12,791
 Weighted average
 shares outstanding 6,128 6,127 6,128 6,127
 Operating Statistics
 Production:
 Domestic oil (MBbls) 108 111 225 225
 Domestic gas (MMcf) 1,126 1,282 2,303 2,368
 International oil (MBbls) 287 271 573 550
 Prices:
 Domestic oil (per Bbl) $ 19.21 $ 21.18 $ 18.55 $ 21.32
 Domestic gas (per Mcf) $ 1.54 $ 1.39 $ 1.52 $ 1.40
 International oil
 (per Bbl) $ 21.93 $ 19.80 $ 21.49 $ 21.60
 -0- 8/10/92
 /CONTACT: William C. Rankin, senior vice president and chief financial officer of Hadson Energy Resources, 405-235-9531; or Warren M. Shimmerlik of Shimmerlik Corporate Communications, 212-247-5200, for Hadson Energy Resources/
 (HERC) CO: Hadson Energy Resources Corporation ST: Oklahoma IN: OIL SU: ERN


TS -- NY018 -- 8416 08/10/92 10:16 EDT
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Publication:PR Newswire
Date:Aug 10, 1992
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