Remington Oil and Gas Corporation Announces Third Quarter 1998 Financial Results.DALLAS--(BUSINESS WIRE)--Nov. 12, 1998--Remington Oil and Gas Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NMS See NetWare Management System. : ROILB and ROILA, and PCX (1) A bitmapped graphics file format that handles monochrome, 2-bit, 4-bit, 8-bit and 24-bit color and uses RLE to achieve compression ratios of approximately 1.1:1 to 1.5:1. Images with large blocks of solid colors compress best under the RLE method. See PC Paintbrush. symbol: REMA REMA Regional Employment Medical Adviser (UK) REMA Reflective Memory Area REMA Radio Electronics Manufacturers Association .P and REMB REMB Radio Electronics in Medicine and Biology REMB Read-Out Motherboard .P) today announced a net income of $24.8 million or $1.22 per share for the quarter ended September September: see month. 30, 1998 on revenue of $56.5 million. This compares to a net loss for the third quarter of 1997 of $7.6 million or $0.37 per share on revenue of $13.5 million. For the nine months ended September 30, 1998, the company recorded a net income of $21.7 million or $1.06 per share on revenues of $81.1 million, compared to a net loss for the nine months ended September 30, 1997 of $6.2 million or $0.30 per share on revenues of $47.7 million. The third quarter had three significant events dramatically affecting the overall results of the company. Termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. gas contract at South Pass 89 with TETCO TETCO Texas Eastern Transmission Corporation TETCO Thermal Energy Transfer Corporation resulted in the payment of $49.8 million to the company and a reduction of third quarter sales by $2.1 million for gas sold at South Pass 89. Associated with this payment was a resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of the South Pass 89 platform of $2.5 million. The Phillips Phil·lips A trademark used for a screw with a head having two intersecting perpendicular slots and for a screwdriver with a tip shaped to fit into these slots. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. was ruled upon by the Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. court resulting in a judgment against Remington Rem·ing·ton , Eliphalet 1793-1861.American firearms manufacturer whose company was a major munitions supplier to the U.S. government and under his son Philo (1816-1889) an important manufacturer of sewing machines and typewriters. of $10.9 million, which with estimated interest resulted, in a $18.0 million charge in the third quarter. During the month of September offshore production was shut in four times resulting in production for the quarter significantly lower than anticipated. Oil production for the quarter was 270 MBO MBO See: Management buyout or 2,935 BOPD BOPD Barrels of Oil Per Day BOPD Bataan Ocean Petroleum Depot while gas production for the quarter was 1.3 BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter or 13.7 MMCFD. For the first nine months of the year, oil production was 964 MBO or 3,531 BOPD while gas production was 5.0 BCF or 18.4 MMCFD. On a 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 basis, production was 1.80 MBOE MBOE Thousands of Barrels of Oil Equivalent MBOE Milford Board of Education for the first nine months of 1998 compared with 1.78 MBOE for the first nine months of 1997. Production shut downs for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 17 days in September due to the hurricanes in the gulf, resulted in a reduction of 70.5 MBOE for the quarter or 17%. For the first nine months of the year, revenue from oil and gas sales was $28.7 million compared to $44.3 million in 1997 or a 35% decline on essentially the same volumes as 1997. Oil prices averaged $11.52 per barrel barrel: see English units of measurement. in the first nine months of 1998, contrasted with $18.22 per barrel in the same period in 1997 or a 37% decrease. Gas prices averaged $3.50 per MCF MCF malignant catarrhal fever. for the first nine months of 1998, contrasted with $5.21 per MCF in the same period in 1997 or a 33% decrease. Spot gas prices for the first nine months of 1998 averaged $2.36 per MCF, as opposed op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. to $2.60 per MCF for the same period for 1997. Thus, essentially all of the decrease in average gas price was associated with the termination of the TETCO gas contract. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. A. Watt, President and Chief Executive Officer of the company, commented, "During the third quarter several major events combined making comparisons to prior years difficult. The company today is much more understandable to the investor with costs and pricing similar to our peers and litigation costs quantified. Once the merger with S-Sixteen Holding Company is completed, hopefully before 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. , we will have one class of stock with each shareholder having a vote. Our focus, henceforth From this time forward. The term henceforth, when used in a legal document, statute, or other legal instrument, indicates that something will commence from the present time to the future, to the exclusion of the past. can be totally dedicated to building shareholder value through economic reserve growth." Although the company has offered to settle all matters with Phillips as per the court orders, Phillips has filed a notice to appeal. Remington will also appeal the adverse judgments and has posted a bond with the Louisiana court in the amount of $11.0 million for the appeal. This process will, in all probability prob·a·bil·i·ty n. pl. prob·a·bil·i·ties 1. The quality or condition of being probable; likelihood. 2. A probable situation, condition, or event: Her election is a clear probability. , take twelve months to two years to resolve. Remington is very confident of its position on appeal. The merger with S-Sixteen Holding Company has been submitted to the Securities and Exchange Commission for review. As soon as the registration statement is deemed effective, a shareholders meeting will be scheduled to vote on the merger. It is anticipated to be accomplished prior to year-end. This merger will result in a change of control under the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. the company's 8 1/4% subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes, and thus the company will be obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. to offer to purchase the notes at par, plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . This offering will take place once the merger is completed. Between Remington's bank line of credit and cash on hand, the company believes it can purchase all of the bonds tendered under the offering. Assuming the merger is concluded prior to year-end, the offering for the notes will be concluded in the first quarter of 1999. Remington Oil and Gas Corporation is an independent oil and gas exploration and production company headquartered in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. . Statements concerning results of future exploration, exploitation Exploitation See also Opportunism. Barnum, P. T. (1810–1891) circus impressario famous for his saying, “Never give a sucker an even break.” [Am. Hist. , development and acquisition expenditures, and expense and reserve levels are 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. . These statements are based on assumptions concerning commodity prices, drilling results and production, administrative and interest costs that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks and there is no assurance that these goals and projections can or will be met. Further information is available in the Company's filings with the Securities and Exchange Commission, which are incorporated by this reference as though fully set forth herein. -0-
Remington Oil and Gas Corporation
Balance Sheets
(In thousands, except share data)
September 30, December 31,
Assets 1998 1997
---------------- ----------------
Current assets (Unaudited)
Cash and cash equivalents $ 48,139 $ 4,552
Accounts receivable - oil
and natural gas 2,116 5,725
Accounts receivable - other 190 268
Note receivable - S-Sixteen
Holding Company 4,939 6,192
Prepaid expenses and other
current assets 3,312 2,118
---------------- --------------
Total current assets 58,696 18,855
---------------- --------------
Properties
Oil and natural gas properties
(successful-efforts method) 241,096 220,481
Other properties 2,259 2,800
Accumulated depreciation,
depletion and amortization (162,159) (144,548)
---------------- --------------
Total properties 81,196 78,733
---------------- --------------
Other assets
Deferred charges (net of
accumulated amortization) 844 927
---------------- --------------
Total other assets 844 927
---------------- --------------
Total assets $ 140,736 $ 98,515
================ ==============
Liabilities and
stockholders' equity
Liabilities
Current liabilities
Accounts payable $ 6,707 $ 8,694
Accrued interest payable 1,128 264
Accrued transportation
payable - related party 135 305
Net Profits expense payable 349 594
Judgment - Phillips Petroleum 17,950 -
Short-term portion of
note payable 2,200 6,000
--------------- ---------------
Total current liabilities 28,469 15,857
Long-term liabilities
Note payable 7,500 -
Convertible subordinated
notes payable 38,371 38,371
---------------- --------------
Total long-term liabilities 45,871 38,371
---------------- --------------
Total Liabilities 74,340 54,228
---------------- --------------
Commitments and
contingencies (Note 7)
Stockholders' equity
Common stock, $1.00 par value
Class A (Voting) - 15,000,000
shares authorized, 3,250,110
shares issued 3,250 3,250
Class B (Non-Voting) - 30,000,000
shares authorized, 17,579,569
shares issued 17,580 17,553
Additional paid-in capital 25,310 25,197
Treasury stock, at cost,
28,600 shares Class A, and
424,272 shares Class B (3,161) (3,465)
Retained earnings 23,417 1,752
---------------- --------------
Total stockholders' equity 66,396 44,287
---------------- --------------
Total liabilities and
stockholders' equity $ 140,736 $ 98,515
================ ==============
Remington Oil and Gas Corporation
Statements of Income
(Unaudited)
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
----------- ------------ ----------- ------------
Revenues
Oil sales $ 2,795 $ 5,011 $11,103 $15,544
Gas sales 2,871 7,436 17,626 28,842
Other income 50,861 1,028 52,361 3,283
----------- ------------ ----------- ------------
Total revenues 56,527 13,475 81,090 47,669
----------- ------------ ----------- ------------
Costs and expenses
Operating costs and
expenses 1,312 1,032 4,295 2,750
Transportation expense 560 673 2,071 2,081
Net Profits interest
expense 358 1,883 3,401 6,588
Exploration expenses 2,222 2,617 5,852 6,523
Depreciation, depletion
and amortization 4,196 5,587 15,608 17,741
Impairment of oil and
gas properties 2,541 - 3,063 -
Phillips Petroleum
judgment 17,950 - 17,950 -
General and
administrative 935 1,603 3,317 5,030
Legal expense 208 558 378 2,275
Reorganization
expense - 6,434 - 7,072
Interest and
financing expense 1,068 1,394 3,129 3,845
----------- ------------ ----------- ------------
Total costs and
expenses 31,350 21,781 59,064 53,905
----------- ------------ ----------- ------------
Income (loss)
before taxes 25,177 (8,306) 22,026 (6,236)
----------- ------------ ----------- ------------
Income tax
expense
(benefit) 361 (725) 361 -
----------- ------------ ----------- ------------
Net income (loss) $ 24,816 $ (7,581) $ 21,665 $(6,236)
=========== ============ =========== ============
Basic income per
share $ 1.22 $ (0.37) $ 1.06 $ (0.30)
=========== ============ =========== ============
Diluted income per
share $ 1.06 $ (0.37) $ 0.97 $ (0.30)
=========== ============ =========== ============
Weighted average
shares outstanding 20,369 20,307 20,359 20,579
=========== ============ =========== ============
Diluted weighted
average shares
outstanding 23,857 20,307 23,847 20,579
=========== ============ =========== ============
Production
Oil (MBbls) 270 296 964 853
Gas (MMcf) 1,262 1,597 5,029 5,535
Prices
Oil (per Bbl) $ 10.36 $ 16.90 $ 11.52 $ 18.22
Gas (per Mcf) $ 2.28 $ 4.65 $ 3.50 $ 5.21
Remington Oil and Gas Corporation
Statements of Cash Flow
(Unaudited)
(In thousands)
Nine Months Ended
September 30,
1998 1997
-------------- --------------
Cash flow provided by
operations
Net income (loss) $ 21,665 $ (6,236)
Depreciation, depletion
and amortization 15,608 17,741
Impairment of oil and
gas properties 3,063
Amortization of deferred
charges 193 196
Amortization of premium
on marketable securities - 29
Dry hole costs 1,929 3,823
Decrease in accounts receivable 3,687 2,497
(Increase) decrease in prepaid
expenses and other current assets (1,194) 495
(Increase) in deferred charges (104) -
Increase in accounts payable and
accrued expenses 16,412 3,719
(Gain) loss on sale of properties (107) 68
-------------- ---------------
Net cash flow provided by operations 61,152 22,332
-------------- ---------------
Cash from investing activities
Payments for capital expenditures (23,207) (27,275)
Sales and maturities of marketable
securities - 10,216
Investment in marketable securities - (597)
Notes receivable - S-Sixteen
Holding Company - (7,250)
Principal repayments - S-Sixteen
Holding Company 1,253 485
Proceeds from property sales 245 289
-------------- ---------------
Net cash used in investing
activities (21,709) (24,132)
-------------- ---------------
Cash from financing activities
Proceeds from notes payable 3,800 7,000
Payments on notes payable (100) (1,000)
Common stock issued 444 -
Repurchase common stock (3,465)
-------------- ---------------
Net cash provided by financing
activities 4,144 2,535
-------------- ---------------
Net increase (decrease) in cash
and cash equivalents 43,587 735
Cash and cash equivalents at
beginning of period 4,552 2,997
-------------- ---------------
Cash and cash equivalents at
end of period $ 48,139 $ 3,732
============== ===============
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