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PLAINS PETROLEUM REPORTS LOWER PROFITS

 LAKEWOOD, Colo., Oct. 26 /PRNewswire/ -- Plains Petroleum Company (NYSE: PLP) today reported a decrease in earnings for the third quarter due to lower oil prices, an unsuccessful exploration well and increased cash and noncash charges associated with a 33 percent increase in its oil volumes. Plains' earnings for the quarter were $1.7 million, or 18 cents per share, down 28 percent from last year's results of $2.5 million, or 25 cents per share.
 Gas production for the quarter was 5.7 billion cubic feet (Bcf), 4 percent less than 1992's third quarter, while the average price was up 21 cents per thousand cubic feet (Mcf) to $1.93. The oil price averaged $14.21 per barrel for the quarter, $5.61 less than a year ago, and production increased from 230,600 to 307,900 barrels. Total revenues increased 4 percent to $15.3 million, and cash flow of $6.5 million was comparable with the prior year.
 For the nine months, operating earnings were up 9 percent to $7 million, or 71 cents per share, from $6.4 million (65 cents per share) for last year. Revenues at $49 million were 21 percent higher and cash flow of $21.2 million increased by 25 percent. Reported net earnings for the first nine months of 1993 included nonrecurring items recorded in the first quarter relating to a one-time charge against certain oil properties and the effect of the two mandated accounting changes for deferred income taxes and accumulated retiree benefits. Reported net earnings after these three extraordinary items were $5.6 million or 57 cents per share.
 Plains produces, develops and explores for oil and gas in the Midcontinent, Permian Basin, Gulf Coast and Rocky Mountain regions of the United States. The company is Colorado-based with additional offices in Midland, Texas; Lakin, Kan.; and Gillette, Wyo.
 PLAINS PETROLEUM COMPANY
 Digest of Earnings
 Third Quarter ended Sept. 30 1993 1992
 Oil and gas revenues $15,331,000 $14,746,000
 Net earnings 1,731,000 2,477,000
 Earnings per share $.18 $.25
 Shares outstanding 9,801,000 9,799,000
 Nine months ended Sept. 30 1993 1992
 Oil and gas revenues $49,033,000 40,531,000
 Earnings before accounting changes 4,258,000(A) 6,409,000
 Accounting changes:
 Deferred income taxes (FAS109) 2,000,000 --
 Postretirement benefits (FAS106) (656,000) --
 Net credit 1,344,000 --
 Net earnings 5,602,000 6,409,000
 Earnings per share:
 Before accounting changes $.44(A) $.65
 Accounting changes .13 --
 Net earnings $.57 .65
 Shares outstanding 9,801,000 9,799,000
 (A) -- Includes an extraordinary one-time charge of $3.3 million (pretax) for impairment of properties. Before the impairment charge, operating earnings were $6,964,000, or 71 cents per share.
 -0- 10/26/93
 /CONTACT: Darrel Reed of Plains Petroleum, 303-969-9325, or Jim Fingeroth or Tracey Stearns of Kekst and Company, 212-593-2655/
 (PLP)


CO: Plains Petroleum Company ST: Colorado IN: OIL SU: ERN

LG-TS -- NY068 -- 6820 10/26/93 13:28 EDT
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Publication:PR Newswire
Date:Oct 26, 1993
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