MAXUS ENERGY REPORTS FOURTH-QUARTER AND YEAR-END RESULTS.DALLAS--(BUSINESS WIRE)--Feb. 3, 1995-- Maxus Maxus, an American band of Los Angeles session legends Michael Landau and Robbie Buchanan. - "Maxus" (1981). Highlights include "Keep A Light On" and "The Higher You Rise". Energy Corporation (NYSE NYSE See: New York Stock Exchange : MXS MXS Maintenance Squadron MXS Microsoft Exchange Server MXS Svg Matrix ) today reported a fourth-quarter 1994 net loss of $25.6 million or, after payment of preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) , a loss of 26 cents per common share. This compares to a fourth-quarter 1993 net loss of $30.7 million or, after payment of preferred dividends, a loss of 31 cents per common share. Maxus' fourth-quarter 1994 results reflect the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. outcome of a federal income tax suit, resulting in $24 million of income recognition with the cash expected in 1995. The fourth quarter also included a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $49 million to increase the reserve for future environmental liabilities in response to the Environmental Protection Agency's recently proposed chromium chromium (krō`mēəm) [Gr.,=color], metallic chemical element; symbol Cr; at. no. 24; at. wt. 51.996; m.p. about 1,857°C;; b.p. 2,672°C;; sp. gr. about 7.2 at 20°C;; valence +2, +3, +6. clean-up clean-up n → nettoyage m clean-up clean n to give sth a clean-up → etw gründlich sauber machen clean-up n standards. Excluding these two unusual items, the fourth-quarter 1994 loss per common share, after payment of preferred dividends, would have been 8 cents. For the full year, Maxus reported a net loss of $22.7 million or, after payment of preferred dividends, a loss of 49 cents per common share. This compares to a 1993 net loss of $49.4 million or, after payment of preferred dividends, a loss of 68 cents per common share. In announcing the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. results, Maxus Chairman Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by L. Blackburn Blackburn, city (1991 pop. 109,564) and district, Lancashire, NW England. It was formerly a great cotton-weaving center, noted especially for calicoes. Textiles are still important; other industries produce engineering equipment, electronic components, beer, felt, cited lower program spending, a decrease in overhead and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , debt reduction, and reduced capital exposure overseas as primary accomplishments. "Looking back over the past year, I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in encouraged by several significant achievements," says Blackburn. "The Northwest Java Java (jä`və), island (1990 pop. 107,525,520), c.51,000 sq mi (132,090 sq km), Indonesia, S of Borneo, from which it is separated by the Java Sea, and SE of Sumatra across Sunda Strait. Gas Project is complete and the development program in Ecuador Ecuador (ĕk`wədôr) [Span., = equator], officially Republic of Ecuador, republic (2005 est. pop. 13,364,000), 109,483 sq mi (283,561 sq km), W South America. is winding down. These items, along with the sale of the southern U.S. operations for $345 million, contributed to the lowest program spending since 1990." Blackburn said that program spending was cut to $196 million from $391 million in 1993, but Maxus was still able to replace 80% of production. Maxus' 1994 program spending consisted of $34 million for U.S. operations; $72 million for Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. ($43 million for Southeast Sumatra Sumatra (s  mä`trə), island (1990 pop. 36,471,731), c.183,000 sq mi (473,970 sq km), Indonesia, in the Indian Ocean along the equator, S and W of the Malay Peninsula (from which it and $29 million for Northwest Java); $76 million for South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , of
which $72 million was for Ecuador; and $11 million for international new
ventures."Our senior debt was reduced by $80 million. Plus the early redemption of $62.5 million worth of Prudential Prudential is the name of two different companies and buildings named after them: Companies:
Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , originally due in February February: see month. 1995, helped lower our interest expense and preferred dividend outlays Outlays Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons. by about $20 million annually. "We made considerable progress in lessening our financial exposure overseas by taking partners in three areas -- BHP BHP blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. is a 50% partner in Bolivia Bolivia (bōlĭv`ēə, Span. bōlē`vyä), officially Republic of Bolivia, republic (2005 est. pop. 8,858,000), 424,162 sq mi (1,098,581 sq km), W South America. , BP has 45% in Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. and Coastal has taken 40% of our interest in the East China Sea," says Blackburn. Fourth-Quarter Operational Highlights ------------------------------------- Sales and operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the fourth quarter were $157.3 million, compared to $197.4 million for the same period a year ago. Of the decrease, $21.1 million was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the loss of production resulting from the sale of Maxus' southern U.S. operations in the second quarter of 1994. Compared to the same period a year ago, the fourth quarter also was negatively affected $11.4 million by lower natural gas prices. Worldwide crude oil sales were 66,100 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. (B/D) in the fourth quarter of 1994, compared to 70,000 B/D in the fourth quarter of 1993. The decline in crude oil sales was attributable in part to the loss of 3,700 B/D of production resulting from the sale of Maxus' southern U.S. operations and to a decrease of 7,600 B/D from Northwest Java. This was largely offset by South American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of crude oil sales, which averaged 7,000 B/D. Maxus' average worldwide price per barrel was $15.57 in the fourth quarter of 1994, compared to $15.54 per barrel for the same period a year ago. Domestic natural gas sales totaled 217 million cubic feet per day (MMcf/D) in the fourth quarter of 1994, a decrease of 163 MMcf/D from the comparable period in 1993. The decrease was largely due to the loss of production resulting from the sale of Maxus' southern U.S. operations as well as lower sales of purchased gas, which was previously aggregated and sold with the southern U.S. production. For full-year 1994, however, natural gas production from Maxus' Mid-Continent Division averaged 128 MMcf/D, up 5% from 122 MMcf/D for all of 1993. The average price for domestic gas was $1.59 per thousand cubic feet (Mcf), down from $2.16 per Mcf in the fourth quarter of 1993. Total gas sales from Northwest Java averaged about 38 MMcf/D in the fourth quarter of 1994, compared to 25 MMcf/D for 1993. Fourth-quarter 1994 discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. was $19.4 million, compared to $45.0 million for the last quarter of 1993. For all of 1994, discretionary cash flow was $97.4 million, compared to $178.9 million for all of 1993. The lower discretionary cash flows for the quarter and the full year were due to the sale of Maxus' geothermal ge·o·ther·mal also ge·o·ther·mic adj. Of or relating to the internal heat of the earth. ge operations, lower production volumes in Indonesia, and loss of production resulting from the sale of southern U.S. operations. The discretionary cash flow is expected to increase in 1995 with added production from the Northwest Java Gas Project and Ecuador. 1994 Reserves ------------- As of year-end 1994, Maxus' reserves were 362 million barrels of oil equivalent (BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip ), compared to 421 million BOE at year-end 1993. Over the past five years Maxus' production replacement rate, excluding price effect, has averaged 161% at a finding, development and acquisition (FD&A) cost of $4.38 per BOE. For 1994, when the effect of increased oil prices is factored out, additions and revisions totaled 29 million BOE at an FD&A cost of $6.60 per BOE for a production replacement rate of 80%. Including price effect, 1994 total company reserve additions and revisions were 21 million BOE at a 57% production replacement rate and an FD&A cost of $9.18 per BOE. "The lower replacement rate and higher cost in 1994 result from our conscious effort to develop reserves already booked rather than to extend exploration into new areas," says Blackburn. "We made a strategic decision early last year to focus on the development of our core areas -- Mid-Continent, Indonesia and Ecuador. "At the same time," continues Blackburn, "we defined our emerging producing areas as Bolivia and Venezuela and limited new exploration to Tunisia Tunisia (t  nē`zhə, ty–), Fr. Tunisie, officially Republic of Tunisia, republic (2005 est. pop. , Bulgaria Bulgaria (bŭlgâr`ēə), Bulgarian Balgarija, officially Republic of Bulgaria, republic (2005 est. pop. 7,450,000), 42,823 sq mi (110,912 sq km), SE Europe, on the E Balkan Peninsula. and offshore China."1995 Program Spending --------------------- Blackburn announced a 1995 program spending budget of $208 million, of which Indonesia will receive nearly half ($97 million). The Mid-Continent Division is budgeted for $42 million. South America will receive $47 million, $32 million of that to Ecuador. The remaining $22 million will be allocated for domestic and overseas new ventures. "This allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as supports our strategy of emphasizing core areas," says Blackburn. "Of our total program spending budget, only 10% will be spent in new areas. About 90%, or $186 million, will go to core and emerging producing provinces." Dallas-based Maxus Energy Corporation is an independent oil and gas exploration and production company. -0- MAXUS ENERGY CORPORATION FINANCIAL SUMMARY (dollars in millions, except per share data)
Fourth Quarter Year To Date
---------------- ----------------
1994 1993 1994 1993
---------------- ----------------
REVENUES
Sales and operating
revenues $157.3 $197.4 $682.1 $786.7
Settlement of litigation - - 0.8 6.8
Other revenues, net 1.4 8.8 8.2 33.6
---------------- ----------------
158.7 206.2 691.1 827.1
COSTS AND EXPENSES
Operating expenses 56.5 68.9 232.7 253.9
Gas purchase costs 20.2 42.3 116.9 155.6
Exploration, including
exploratory dry holes 8.8 22.9 32.6 56.8
Depreciation, depletion
and amortization 33.8 40.5 140.2 153.6
General and
administrative
expenses 7.5 10.2 35.4 38.7
Taxes other than
income taxes 2.2 3.1 12.9 15.9
Interest and debt
expenses 24.4 22.3 96.7 88.4
Environmental
remediation accrual 49.0 9.5 60.5 17.9
Restructuring:
Gain on sale of assets - - (201.9) -
Restructuring costs - - 100.9 -
---------------- ----------------
202.4 219.7 626.9 780.8
---------------- ----------------
Income (loss) before
income taxes,
extraordinary item and
cumulative effect of
change in accounting
principle (43.7) (13.5) 64.2 46.3
Income tax (benefit) (18.1) 13.3 86.9 84.2
---------------- ----------------
Net (loss) before
extraordinary item and
cumulative effect of
change in accounting
principle (25.6) (26.8) (22.7) (37.9)
Extraordinary item - (3.9) - (7.1)
Cumulative effect of
change in accounting
principle - - - (4.4)
---------------- ----------------
Net (loss) (25.6) (30.7) (22.7) (49.4)
Dividend requirement on
preferred stock 9.6 10.4 43.6 41.7
---------------- ----------------
(Loss) applicable
to common shares ($35.2)($41.1) ($66.3)($91.1)
================ ================
(Loss) before
extraordinary item and
cumulative effect of
change in accounting
principle (0.26) (0.28) (0.49) (0.60)
Extraordinary item - (0.03) - (0.05)
Cumulative effect of
change in accounting
principle - - - (0.03)
---------------- ----------------
(Loss) per common
share ($0.26)($0.31) ($0.49)($0.68)
================ ================
Average common shares
outstanding (in millions) 135.5 134.1 134.9 133.9
Discretionary cash flow(1)
Net (loss) ($25.6)($30.7) ($22.7)($49.4)
Add:
Extraordinary item - 3.9 - 7.1
Cumulative effect of
change in accounting
principle - - - 4.4
DD&A 33.8 40.5 140.2 153.6
Non-cash income taxes (38.0) 6.8 (9.3) 22.3
Exploration expense --
excluding dry-hole
costs 7.1 17.3 29.8 51.1
Dry-hole costs 1.7 5.6 2.8 5.7
Gain on sale of assets (0.2) (1.8) (166.7) (13.8)
Environmental
remediation accrual 49.0 9.5 60.5 17.9
Restructuring costs - - 91.0 -
Other 1.2 4.3 15.4 21.7
Less:
Preferred dividends 9.6 10.4 43.6 41.7
---------------- ----------------
Discretionary cash flow $19.4 $45.0 $97.4 $178.9
================ ================
(1) Discretionary cash flow is net loss plus non-cash items and exploration expense, reduced by preferred dividends. -0-
MAXUS ENERGY CORPORATION OPERATING SUMMARY
Fourth Quarter Year to Date
---------------- ----------------
1994 1993 1994 1993
---------------- ----------------
Crude Oil Sales (mbpd)
United States 1.1 4.9 2.4 4.9
Southeast Sumatra 41.6 41.1 42.7 41.2
Northwest Java 16.4 24.0 16.6 21.2
Ecuador 6.4 - 2.9 -
Bolivia -(a) - 2.0 -
Venezuela 0.6 - 0.3 -
---------------- ----------------
Total Worldwide 66.1 70.0 66.9 67.3
Average Crude Oil Prices
(per barrel)
United States $15.54 $15.13 $13.89 $16.99
Southeast Sumatra 15.80 15.32 15.37 17.13
Northwest Java 16.41 16.04 16.22 17.66
Ecuador 12.23 - 12.10 -
Bolivia - - 13.81 -
Venezuela 11.50(b) - 9.30 -
---------------- ----------------
Average Worldwide $15.57 $15.54 $15.31 $17.28
United States Natural Gas
Sales (mmcfpd)
Maxus Produced 104 178 131 181
Maxus Purchased 113 202 144 184
---------------- ----------------
Total United States 217 380 275 365 Average U.S. Natural Gas Prices (per mcf) $1.59 $2.16 $1.95 $2.08 Northwest Java Gas Sales (mmcfpd) 38 25 44 13 Price (per mcf) $2.93(c)$1.94 $2.24 $1.30
United States Natural Gas
Liquids Sales (mbpd)
Maxus Produced 8.4 8.4 8.2 7.6
Maxus Purchased 9.4 9.7 9.7 9.8
---------------- ----------------
Total United States 17.8 18.1 17.9 17.4
Average U.S. Natural Gas
Liquids Prices (per barrel) $10.85 $9.48 $10.07 $11.14
Northwest Java Natural Gas Liquids Sales (mbpd) 1.8 1.0 2.1 1.5 Price (per barrel) $11.38 $9.12 $9.42 $10.57 Maxus United States Production Natural Gas (mmcfpd) 124 208 156 208 Gross Indonesian Production (mbpd) Southeast Sumatra 146 139 148 148 Northwest Java 105 108 111 122 Gross South American Production (mbpd) Ecuador 26 - 12 - Bolivia 3 - 3 - Venezuela 1 - 1 - -0- (a) Production continued during this quarter but sales will not be reported until a tanker is filled. (b) Reported price is the total of the operations fee and capital fee. The fourth quarter price includes certain adjustments which increased average quarterly realizations above normal level. (c) Northwest Java old gas was reclassified and repriced as new gas. The contract price on the new gas is $2.45/mmbtu. Price is reported on a $/mcf basis. -0- CONTACT: Tom Sullivan Tom Sullivan may refer to:
or David Miller David Miller could refer to any of the following:
both of Maxus Energy Corporation. |
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