Kelley 1998 First Quarter Results Impacted by Increased Production and Lower Prices.HOUSTON--(BUSINESS WIRE)--May 6, 1998--KELLEY OIL & GAS CORPORATION (Nasdaq NM:KOGC KOGC Kimberley Oaks Golf Course (St. Charles, Michigan) ) (the "Company") today reported its 1998 first quarter results were impacted by increased production and lower prices. Production for the first quarter of 1998 totaled 10.2 billion cubic feet ("Bcf") of gas and 102,000 barrels of oil and condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. , or a total of 10.8 Bcf on an equivalent basis ("Bcfe"), compared to 7.4 Bcfe for the same period in 1997, an increase of 46%. The benefits from the production increase were somewhat offset by a 14% decrease in the average sales price received. The average sales price received for production in the 1998 first quarter was $2.13 per thousand cubic feet of natural gas equivalent ("Mcfe") compared to $2.49 per Mcfe in the 1997 first quarter. The Company's consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: operations during the first quarter of 1998 resulted in total revenues of $23.1 million and a net loss of $4.8 million ($0.05 per share of common stock) compared to 1997 first quarter total revenues of $19.1 million and net income of $1.7 million ($0.01 per share of common stock). Consolidated cash flows from operating activities (before net change in operating assets Operating Assets Another term for working capital. and liabilities) were $9.6 million for the first quarter of 1998 as compared to $9.8 million for the same period in 1997. For the first three months of 1998, the Company participated in drilling 15 gross (7.9 net) wells, of which 12 gross (6.6 net) wells were completed and found to be productive. As of the end of the first quarter, the Company was participating in the drilling or completing of 8 gross (3.3 net) wells. Kelley Kelley may refer to any of the following: People
The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. . -0- Kelley Oil & Gas Corporation common stock and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. are traded on the NASDAQ National Market under the symbols KOGC and KOGCP. Company information is available on the World Wide Web at http://www.kelleyoil.com. Cautionary Statement as to Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Information Statements made herein (as well as information included in oral or other written statements made or to be made by the Company or its representatives) that are forward-looking in nature are intended to be "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc matters such as anticipated operating and financial performance, business prospects, developments and results of the Company. Actual performance, prospects, developments and results may differ materially from any or all anticipated results due to economic conditions and other risks, uncertainties and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or partly or totally outside the control of the Company, including rates of inflation, natural gas prices, uncertainty of reserve estimates, rates and timing of future production of oil and gas, exploratory and development activities, acquisition risks, changes in the level and timing of future costs and expenses related to drilling and operating activities and those risk factors described on pages 11 and 12 of the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December December: see month. 31, 1997. Words such as "anticipated," "expect," "estimate," "project" and similar expressions are intended to identify forward-looking statements. Forward-looking statements include the risk factors described in the Company's Form 10-K mentioned above. -0-
KELLEY OIL & GAS CORPORATION
Condensed Income Statements
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31,
1998 1997
------- -------
Oil and gas revenues $23,047 $18,947
Interest and other income 24 163
Total revenues 23,071 19,110
Production expenses 4,898 2,370
Exploration expenses 2,051 1,049
General and administrative expenses 1,909 2,180
Interest and other debt expenses 8,092 5,828
Depreciation, depletion and amortization 10,944 5,980
Net income (loss) (4,823) 1,703
Cumulative preferred stock dividends (1,145) (1,145)
Net income (loss) applicable to
common stock (5,968) 558
Net income (loss) per common share (.05) .01
Average common shares outstanding 125,710 100,162
KELLEY OIL & GAS CORPORATION
Condensed Balance Sheets
(In thousands)
March 31, December 31,
1998 1997
---------- ----------
(Unaudited)
Assets:
Current assets $ 26,060 $ 26,858
Property and equipment, net 293,499 293,613
Other assets 1,718 2,131
---------- ----------
Total assets $ 321,277 $ 322,602
========== ==========
Liabilities and Stockholders' Deficit:
Current liabilities $ 41,451 $ 42,040
Long term debt 290,269 286,183
Stockholders' deficit (10,443) (5,621)
---------- ----------
Total Liabilities and
Stockholders' Deficit $321,277 $322,602
========== ==========
KELLEY OIL & GAS CORPORATION
Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended March 31,
1998 1997
-------- --------
Operating Activities:
Net income (loss) $(4,823) $1,703
Adjustments to reconcile net
income (loss) to net cash
provided by operating activities:
Depreciation, depletion
and amortization 10,944 5,980
Exploration expenses 2,051 1,049
Accretion and amortization of
debt expenses 1,394 1,064
------- -------
Cash flow from operations before changes in
operating assets and liabilities 9,566 9,796
Net changes in operating assets
and liabilities 120 8,312
Net cash provided by
operating activities 9,686 18,108
Investing Activities:
Capital expenditures (12,881) (12,108)
------- -------
Net cash used in investing activities (12,881) (12,108)
Financing Activities:
Net proceeds from (payments on)
long term borrowings 3,300 (9,500)
Proceeds from sale of
common stock, net 1 3
Redemption of subordinated notes (228) -
------- ------
Net cash provided by (used in)
financing activities 3,073 (9,497)
------- ------
Decrease in cash and cash equivalents (122) (3,497)
Cash and cash equivalents,
beginning of period 162 4,070
------- ------
Cash and cash equivalents,
end of period $ 40 $ 573
======= =======
KELLEY OIL & GAS CORPORATION
Summary Production Information
Three Months Ended March 31,
1998 1997
------- -------
Average Sales Price per Unit:
Oil and other liquid
hydrocarbons (per Bbl) $14.26 $21.25
Natural gas (per Mcf) 2.12 2.45
Natural gas equivalent (per Mcfe) 2.13 2.49
Average Daily Production:
Oil and other liquid
hydrocarbons (Mbbls) 1.1 .5
Natural gas (Mmcf) 112.9 78.6
Natural gas equivalent (Mmcfe) 119.7 81.8
Net Production Data:
Oil and other liquid hydrocarbons (Mbbls) 102 47
Natural gas (Mmcf) 10,165 7,076
Natural gas equivalent (Mmcfe) 10,777 7,358
Cost per Mcfe:
Lifting costs $.34 $.22
Severance and ad valorem taxes .12 .11
General and administrative expenses .18 .30
Depreciation, depletion and amortization
(oil and gas activities) 1.00 .80
Interest expense, excluding accretion
and amortization .62 .65
CONTACT: David C. Baggett, Kelley Oil & Gas, Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; Senior Vice President and Chief Financial Officer Telephone: (713) 652-5200 |
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