Middle Bay Oil Company Inc. Reports Second Quarter Results.HOUSTON--(BUSINESS WIRE)--Aug. 17, 1999-- Middle Bay Oil Company Inc. (Nasdaq:MBOC) announced today financial and operating results for the quarter and six months ended June June: see month. 30, 1999. Second Quarter 1999 Results The Company reported net loss and cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses before changes in working capital for the second quarter of $383,000 ($.04 per share) and $607,000 ($.07 per share), respectively. For the quarter ending June 30, 1998, MBOC reported net loss and cash flow from operations before changes in working capital of $667,000 ($.08 per share) and $611,000 ($.07 per share), respectively. During the second quarter of 1999, the Company produced 106,000 barrels of oil and 865 MMCF MMCF Million Cubic Feet MMCF Multimedia Communications Forum MMCF Mint Mocha Chip Frappuccino MMCF Multi Media Communication Forum of gas. These volumes represent a decrease of 38% and 25%, respectively, over the comparable period. The decreases were primarily due to property sales in the second half of 1998 and normal production declines. The price received on gas sold in the second quarter of 1999 of $2.07 per MCF MCF malignant catarrhal fever. was equal to the price received in the comparable period. Oil prices in 1999 of $16.32 per barrel barrel: see English units of measurement. were 44% higher than the $11.34 per barrel received in the second quarter of 1998. The primary reasons for the reduced net loss were higher oil prices, lower operating costs operating costs npl → gastos mpl operacionales and lower depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able , depreciation and amortization expense. Six Months Ended June 30, 1999 Results MBOC reported a net loss and cash flow from operations before changes in working capital for the six months ended June 30, 1999 of $1,431,000 ($.17 per share) and $667,000 ($.08 per share), respectively. During the comparable period of 1998, the Company incurred net loss of $2,149,000 ($.28 per share) and cash flow from operations before changes in working capital of $89,000 ($.01 per share), respectively. The Company produced 251,000 barrels of oil and 1,795 MMCF of gas, a decrease of 5% in oil production and an increase of 7% in gas production over the first half of 1998. Production increases from the Enex Resources and Service Drilling acquisitions were offset by property sales in the second half of 1998 and normal production declines. Oil prices for the first six months of 1999 averaged $12.61 per barrel, 3% higher than the $12.26 received in the comparable period. The price received for gas sold in the first half of 1999 of $1.83 per MCF was 14% lower than the $2.13 per MCF received in 1998. The primary reasons for the reduced net loss were lower geological/geophysical and operating costs and lower depletion, depreciation and amortization expense. Middle Bay Oil Company Inc. is an independent oil and gas exploration and production company, headquartered in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , with operations in the Gulf Coast and Mid-Continent regions. The information contained in this press release may contain projections, estimates and other 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 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, environmental risks, drilling, producing and operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. , risks related to exploration and development, uncertainties about the estimates of reserves, government regulation, competition and the ability of the Company to meet its stated business goals.
Middle Bay Oil Company Inc.
Summary Consolidated Statements of Operations
(in thousands, except per share data)
Unaudited
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
------ ------ ------ ------
Revenues
Oil and gas sales
and plant income 3,600 4,485 6,673 7,117
Gain on sale of
properties 233 9 307 9
Delay rental and
lease bonus income 0 197 3 197
Other 122 117 222 242
------------------ ----------------
Total Revenues 3,955 4,808 7,205 7,565
------------------ ----------------
Costs and Expenses
Lease operating,
production taxes
and plant costs 1,556 2,421 3,017 3,605
Geological and
geophysical 72 42 142 788
Dryhole 1 (161) 64 307
Depletion,
depreciation and
amortization 1,231 1,907 2,581 3,025
Interest 510 557 1,021 813
Stock compensation 0 34 0 68
General and
administrative 820 1,149 1,936 2,232
Other 206 18 209 28
------------------ ----------------
Total Costs and
Expenses 4,396 5,967 8,970 10,866
------------------ ----------------
Loss Before Income
Tax Benefit and
Minority Interest (441) (1,159) (1,765) (3,301)
Minority Interest (54) (149) (64) (149)
Income Tax Benefit (147) (343) (556) (1,071)
------------------ ----------------
Net Loss (240) (667) (1,145) (2,081)
------------------ ----------------
Dividends to
Preferred Stockholders (143) 0 (286) (68)
------------------ ----------------
Net Loss Available
to Common Stockholders (383) (667) (1,431) (2,149)
================== ================
Net Loss Per Common
Share - Basic (0.04) (0.08) (0.17) (0.28)
Net Loss Per Common
Share - Diluted (0.04) (0.08) (0.17) (0.28)
Weighted Average
Common Shares
Outstanding
Basic 8,532 8,531 8,531 7,625
Diluted 8,532 8,531 8,531 7,625
Middle Bay Oil Company Inc.
Summary Consolidated Balance Sheets
(dollars in thousands)
Unaudited
June 30, Dec. 31,
1999 1998
---------- ----------
Assets
Current Assets 4,198 4,939
Property, Plant and
Equipment, Net 50,284 52,571
Other Assets 415 431
-------------------
Total Assets 54,897 57,941
-------------------
Liabilities and
Stockholders' Equity
Current Liabilities 4,453 4,800
Long Term Debt 26,950 27,455
Deferred Income
Taxes 1,172 1,733
Other Liabilities 350 438
Minority Interest 894 957
Stockholders'
Equity 21,078 22,558
-------------------
Total Liabilities and
Stockholders' Equity 54,897 57,941
-------------------
Selected Operating Data For the Three Months For the Six Months
Ended June 30, Ended June 30,
1999 1998 1999 1998
------ ------ ------ ------
Oil Production (Mbbls) 106 171 251 264
Gas Production (Mmcf) 865 1,160 1,795 1,681
Oil Equivalents (Mboe) 250 364 550 544
Average Oil Price
Per Barrel 16.32 11.34 12.61 12.26
Average Gas Price
Per Barrel 2.07 2.07 1.83 2.13
Cash Flow From
Operations Before
Working Capital
Changes - M$ 607 611 667 89
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