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 OKLAHOMA CITY, Nov. 3 /PRNewswire/ -- Hadson Energy Resources Corporation (AMEX: HDX) today reported net earnings of $827,000 for the third quarter of 1993, or 13 cents per share, on total revenue of $9.6 million. This compares with net earnings of $659,000, or 11 cents per share, on total revenue of $10.8 million for the third quarter of 1992. Cash flows provided by operating activities (before change in non-cash working capital) improved to $5.6 million (90 cents per share) from the $5.4 million (89 cents per share) reported for the same quarter of 1992. The modest improvement in earnings and cash flows reported for the quarter was due, in part, to a special charge made in the prior year period associated with a management restructuring and overhead reduction plan which served to decrease earnings and cash flow results for that period.
 For the nine-month period ended Sept. 30, 1993, the company reported a net loss of $971,000, or 16 cents per share, on total revenue of $29.1 million. This compares with net earnings of $2.5 million, or 41 cents per share, on total revenue of $31 million for the first nine months of 1992. Cash flows from operating activities for the nine-month period of 1993 decreased to $12.8 million from the $16.4 million reported for the comparable period of 1992. The lower results for the current year-to-date period were principally attributable to a $3.0 million accrual for severance and transaction costs relating to the proposed business combination with Apache Corporation. Operating results were further reduced by a non-cash charge of $3.7 million associated with the company's election to abandon the Bunyu Production Sharing Contract in Indonesia.
 Lower Total Production
 For the quarter, the company produced approximately 646,000 barrels of oil equivalent, a modest decrease in relation to the 653,000 barrels of oil equivalent produced during the comparable period of 1992. Australian oil and liquids production from the company's offshore oil and gas fields decreased 24 percent to 219,000 barrels compared to 288,000 barrels for the third quarter of 1992. This decrease is principally the result of an anticipated decline in Harriet Field production and, to a lesser degree, a short-term limitation on produced water-handling capacity. In late July 1992, the company recorded the first international gas sales from its offshore gas gathering facility. The company's share of this new gas production for the third quarter of 1993 was 737 million cubic feet which compares to 363 million cubic feet for the prior year quarter. This increase is attributable to a full quarter of production in 1993 vs. 1992, and to an increase in takes by the State Energy Commission of Western Australia (SECWA) as it makes up volumes previously curtailed during the second quarter of 1993. SECWA has indicated that it intends to make up the balance of the curtailed volumes during the fourth quarter of 1993.
 Domestically, the company produced 98,000 barrels of oil compared to 109,000 barrels for the third quarter of 1992, a decline of 10 percent. Gas production for the quarter, however, improved to 1.24 billion cubic feet of gas from the 1.17 billion cubic feet produced during the third quarter of 1992, an increase of 6 percent.
 Improved Domestic Gas Prices - Significantly Lower Oil Prices
 In the United States, the company continued to see price improvement for its domestic gas production. For the third quarter, the average price realized was $2.02 per thousand cubic feet, a 9 percent increase over the 1992 average price of $1.85 per thousand cubic feet. For the company's Australian gas production, the U.S. equivalent of the average gas price received was $1.80 per thousand cubic feet compared to $1.94 for the third quarter of 1992. This lower price is attributable to the devaluation of the Australian dollar between the two periods.
 U.S. and Australian oil prices experienced significant declines during the current period. In the United States, the company realized an average price of $15.53 per barrel compared to $19.47 for the third quarter of 1992, a decrease of 20 percent. The average price for the company's Australian oil production, which benefited from price hedges, declined to $19.66 per barrel compared to $20.43 for the comparable period of 1992, a decrease of 4 percent.
 Proposed Merger Transaction/Tender Offer
 A special meeting of the company's stockholders has been set for Nov. 12, 1993, to vote on whether Apache Corporation (Apache) will acquire the company by merging it with a wholly owned subsidiary of Apache. If the merger is consummated, the company's stockholders (other than Apache) will receive $15 per share in exchange for their common stock. Each stockholder may elect to receive payment in cash or common stock of Apache. In addition to voting on the merger, the company's stockholders are offered the opportunity to tender their common stock for purchase by Apache for $15 per share if the merger is not approved or is otherwise not consummated. Apache's obligation to accept tendered shares of common stock for payment is subject to the terms and conditions set forth in the associated Prospectus/Proxy Statement/Offer to Purchase, dated Oct. 8, 1993. The terms of the merger and the offer to purchase are intended to allow the company's stockholders the opportunity to receive the same price for their shares of common stock that Apache agreed to pay to Hadson Corporation, the company's former 49 percent stockholder.
 Hadson Energy Resources Corporation is an energy company engaged in domestic and international crude oil and natural gas acquisition, exploration, development and production.
 Selected financial and operating statistics for the three-month and nine-month periods ended Sept. 30, 1993 and 1992 are presented below:
 For the periods ended Three Months Nine Months
 Sept. 30, 1993 1992 1993 1992
 Financial Results
 Revenue ($M) $ 9,636 $10,791 $29,052 $31,025
 Net earnings (loss)($M) 827 659 (971) 2,483
 Net earnings (loss) per
 share .13 .11 (.16) .41
 Cash flows from operations
 ($M) $ 5,604 5,449 12,824 16,431
 Weighted average shares
 outstanding (M) 6,233 6,128 6,165 6,128
 Operating Statistics
 USA oil (MBbls) 98 109 300 334
 USA gas (MMcf) 1,242 1,169 3,581 3,472
 Australia oil (MBbls) 219 288 689 861
 Australia gas (MMcf) 737 363 1,606 363
 Average Prices:
 USA oil (per Bbl) $ 15.53 $ 19.47 $ 17.11 $ 18.85
 USA gas (per Mcf) $ 2.02 $ 1.85 $ 1.98 $ 1.63
 Australia oil (per Bbl) $ 19.66 $ 20.43 $ 20.26 $ 21.13
 Australia gas (per Mcf) $ 1.80 $ 1.94 $ 1.82 $ 1.94
 -0- 11/3/93
 /CONTACT: Mark A. Jackson, vice president and controller of Apache Corporation, 713-296-6000/

CO: Hadson Energy Resources Corporation ST: Oklahoma IN: OIL SU: ERN

TW -- NY054 -- 0117 11/03/93 11:44 EST
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Publication:PR Newswire
Date:Nov 3, 1993

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