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PATRICK PETROLEUM REPORTS RESULTS FOR 1992

 JACKSON, Mich., March 31 /PRNewswire/ -- Patrick Petroleum Company (NYSE: PPC) today reported net losses for its fourth quarter and year ended Dec. 31, 1992, due primarily to non-cash writedowns of oil and gas properties.
 Net cash flow provided by operating activities was $845,000 for 1992 compared to $3.1 million the previous year. The company reported a net loss of $21.9 million, or $1.79 per common share, after non-cash charges consisting primarily of a $15.6 million writedown of oil and gas properties and a $1.3 million writedown for the decline in value of real estate and other long-term investments. The net operating loss from oil and gas operations exclusive of the writedowns was $4.5 million. A year ago, the company reported a net loss of $6.5 million, or $0.53 a share, after a $3 million writedown of oil and gas properties.
 Total revenues for 1992 were $10.6 million, down 8 percent from $11.4 million in 1991. Oil and gas sales decreased 9 percent to $9.6 million from $10.5 million the previous year due primarily to production declines.
 "Although our core oil and gas business recorded a major loss for 1992, it is important to balance a view of the company with its present and prospective assets," President U.E. Patrick stated. "The company holds a large equity position in two companies with potential to improve our cash position and balance sheet. Last year we announced that our interest in Penske Corporation was for sale. There are several investors interested in Penske and the transaction is progressing as anticipated. Patrick also owns 1,349,600 equivalent shares of common stock in Marcum Natural Gas Services, Inc. (NASDAQ: MGAS) and warrants to purchase another 1,260,000 shares. Although Patrick included a net loss of $407,620 in 1992 from its equity investment in Marcum versus a loss of $126,604 in 1991, Marcum's management is optimistic and expects to report a reduced loss in fiscal 1993. Marcum's stock price has increased considerably since our original investment and we may sell a portion of our shares at a profit this year."
 "These transactions along with the pending merger of American National Petroleum Company (NASDAQ: ANPC) will create a much stronger Patrick Petroleum Company," Mr. Patrick noted.
 The 1992 writedown includes a $15.6 million reduction in the carrying value of oil and gas properties in accordance with the full cost ceiling limitations prescribed by the Securities and Exchange Commission. Of the $15.6 million, almost $11.0 million is associated with leasehold acquisition and prospect evaluation costs of undeveloped prospects in the Williston Basin and Michigan. The remaining $4.7 million is a result of reduced reserves and lower oil pricing.
 Commenting on the writedown, Mr. Patrick stated, "At the end of last year, we evaluated all of our undeveloped prospects to establish our 1993 drilling program and budget. The majority of our 1993 exploration and development activities will be in West Texas. We do not anticipate drilling any wells in the Williston Basin this year and may drill only a couple of wells in Michigan, subject to capital availability and improved prices. Therefore, we have included in the writedown costs associated with prospects due to expire in 1993 or which will not be drilled under current economic conditions."
 The company's investment income decreased $23,891 to $749,195 for the year, reflecting a decline due to the sale of investments over the past year of $456,406 which was partially offset by an increase in dividends from Penske of $432,515. Other income increased $122,445 to $238,368 in 1992, resulting primarily from the collection of previously written off accounts.
 Total expenses before the writedown of oil and gas properties and other long-term investments were $15.0 million in 1992, an increase of 1.7 percent from $14.8 million last year. Production taxes, depletion, depreciation and amortization decreased $750,978, primarily the result of reduced production levels. Lease operating costs increased $269,466, primarily due to production maintenance and workover costs. Interest expense decreased by $335,034, primarily from lower interest rates. General and administrative costs increased by $1,016,145, primarily representing settlements of franchise tax audits, estimated contingencies and increased legal fees.
 The company's fourth-quarter net loss was $20.1 million, or $1.62 a share, on revenues of $2.0 million. This compares with a year-ago net loss of $5.2 million, or $0.43 a share, on revenues of $2.7 million. The 1992 fourth-quarter revenues were adversely affected by losses resulting from hedging activities and production declines. The results of both years include the writedowns of oil and gas properties and other long-term investments discussed above.
 At Dec. 31, 1992, the company had working capital of $1.6 million and a current ratio of 1.4 to 1.0. Stockholders' equity was $25.4 million versus $36.2 million the prior year.
 During 1992, Patrick produced 230,700 barrels of oil and 2.8 Bcf (billion cubic feet) of natural gas. The weighted average price was $19.82 per barrel and $1.72 per Mcf (thousand cubic feet). This compares to 1991 production of 254,884 barrels and 3.1 Bcf with an average price of $20.44 per barrel and $1.67 per Mcf. At Dec. 31, 1992, the company recorded total proved reserves of 1,449,600 barrels and 22.9 Bcf, compared to 1,092,308 barrels and 30.4 Bcf a year ago.
 Patrick Petroleum Company is an independent exploration and production company listed on the New York Stock Exchange since 1976. The company has interests in producing properties and undeveloped acreage in 13 states, including various interests in approximately 528 oil and gas wells located primarily in Michigan, North Dakota, Texas, Oklahoma, Louisiana and Mississippi.
 PATRICK PETROLEUM COMPANY AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Year Ended Dec. 31,
 1992 1991 1990
 Revenues:
 Oil and gas sales $9,561,068 $10,549,959 $13,266,868
 Interest and dividend income 749,195 773,086 972,399
 Gain (loss) on sale of assets 2,460 (717) (113,333)
 Other income 238,368 115,923 889,868
 $10,551,091 $11,438,251 $15,015,802
 Expenses:
 Production taxes $683,515 $807,644 $922,675
 Lease operating costs 2,302,838 2,033,372 2,463,822
 Depletion, depreciation and
 amortization 5,566,885 6,193,734 5,414,399
 General and administrative 3,480,124 2,410,511 2,359,738
 Interest 3,017,369 3,352,403 3,479,687
 Writedown of other
 investments 1,347,859 --- ---
 Writedown of oil and gas
 properties 15,640,000 3,000,000 12,800,000
 $32,038,590 $17,797,664 $27,440,321
 Earnings (loss) before equity
 in loss of affiliate (21,487,499) (6,359,413) (12,424,519)
 Equity in loss of affiliate (407,620) (126,604) ---
 Net loss ($21,895,119) ($6,486,017) ($12,424,519)
 Net loss per common share ($1.79) ($.53) ($1.02)
 Weighted average shares
 outstanding 12,401,604 12,201,187 12,199,770
 CONDENSED CONSOLIDATED BALANCE SHEETS
 Year Ended Dec. 31,
 1992 1991
 Assets:
 Current assets $5,221,364 $5,424,555
 Other assets 12,155,672 13,235,314
 Property and equipment 43,712,754 54,511,183
 $61,089,790 $73,171,052
 Liabilities and Stockholders' Equity
 Current liabilities $3,640,420 $3,012,859
 Long-term debt 32,073,917 34,000,000
 Stockholders' equity 25,375,453 36,158,193
 $61,089,790 $73,171,052
 -0- 3/31/93
 /CONTACT: Phillip J. McAndrews of Patrick Petroleum Company, 517-787-6633; or Woody Wallace of the Investor Relations Company, 708-564-5610, for Patrick Petroleum Company/
 (PPC)


CO: Patrick Petroleum Company ST: Michigan IN: OIL SU: ERN

DH-JG -- DE005 -- 1417 03/31/93 10:25 EST
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