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WESTERN GAS RESOURCES ANNOUNCES THIRD QUARTER RESULTS

 DENVER, Nov. 8 /PRNewswire/ -- Western Gas Resources Inc. (NYSE: WGR) today announced that for the third quarter ended Sept. 30, 1993, revenues increased 84 percent over third quarter 1992 to $273.4 million and cash flow from operations increased 26 percent over the like period in 1992 to $26.2 million. Net income for the third quarter 1993 decreased 17 percent from the like period in 1992 to $9.7 million, or 32 cents per common share.
 For the first nine months of 1993, revenues increased 60 percent over the like period in 1992 to $640.7 million while cash flow from operations increased 22 percent over the first nine months of 1992 to $63.7 million. Western's net income increased 7 percent over the first nine months of 1992 to $28.3 million, or 93 cents per common share.
 Average gas sales volumes increased 143 percent over the third quarter 1992 to 924 MMcf/D. Natural gas prices increased 21 percent over third quarter 1992 to $2.03/Mcf. Average gas sales volumes and average gas prices for the first nine months of 1993 were 646 MMcf/D and $2.00/Mcf, respectively.
 Average natural gas liquids (NGL) sales volumes increased 19 percent over third quarter 1992 to 2,930 MGal/D. Average NGL prices declined 14 percent from third quarter 1992 to $.30/Gal. Average NGL sales volumes and average NGL prices for the first nine months of 1993 were 2,794 MGal/D and $.32/Gal, respectively.
 Net income for the third quarter of 1993 and the first nine months of 1993 is reduced by a $2.1 million, or 8 cents per common share, charge to deferred income taxes resulting from the recent increase in corporate tax rates.
 Third quarter 1993 net income was also affected by declining NGL prices and smaller profit margins on third party gas sales when compared to the like period in 1992. Margins on third party gas sales during the third quarter of 1992 were higher than usual as a result of the abrupt increase in gas prices due to Hurricane Andrew. The lower NGL prices in the third quarter of 1993 were somewhat offset by higher gas and NGL production volumes primarily due to the acquisitions of Mountain Gas Resources Inc. and the Black Lake properties. The two transactions added three processing plants, 430 MMcf/D of processing capacity and production volumes of 229 MMcf/D of residue gas and 306 MGal/D of NGLs to the company's operations based on average monthly volumes for September 1993. Third party gas sales volumes also increased as a result of the Citizens National Gas Co. acquisition in the third quarter of 1993.
 Western owns and operates natural gas gathering, processing and storage facilities and markets and transports natural gas and NGLs.
 WESTERN GAS RESOURCES INC.
 1993 THIRD QUARTER EARNINGS
 Quarter Nine Months
 Ended Sept. 30, Ended Sept. 30,
 Percent Percent
 1993 1992 Change 1993 1992 Change
 Financial Statistics:
 (000's except share and
 per share amounts)
 Revenues $273,359 $148,535 84 $640,683 $399,946 60
 Net Income 9,734 11,696(a) (17) 28,314 26,506(a) 7
 Earnings per
 Common Share .32 .43(a) (26) .93 .96(a) (3)
 Cash Flow
 from Operations 26,184 20,762(a) 26 63,683 52,082(a) 22
 Weighted
 Average Common
 Shares
 Outstanding 25,623,242 25,446,229 25,597,812 25,436,603
 Operating Statistics:
 Average Gas
 Sales (MMcf/D) 924 381 143 646 406 59
 Average NGL
 Sales (MGal/D) 2,930 2,458 19 2,794 2,302 21
 Average Gas
 Prices ($/Mcf) $ 2.03 $ 1.68 21 $ 2.00 $ 1.53 31
 Average NGL
 Prices ($/Gal) $ .30 $ .35 (14) $ .32 $ .32 -
 (a) The nine months ended Sept. 30, 1993 and the third quarter 1993 net income, earnings per share and cash flow from operations have been restated to account for SFAS No. 109, "Accounting for Income Taxes" which the company adopted in the fourth quarter 1992 retroactive to Jan. 1, 1992. The overall impact of this restatement was immaterial to the company's results of operations.
 -0- 11/8/93
 /CONTACT: Ron Wirth of Western Gas Resources, 800-933-5603/
 (WGR)


CO: Western Gas Resources Inc. ST: Colorado IN: OIL SU: ERN

MC -- DV005 -- 1756 11/08/93 12:06 EST
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Publication:PR Newswire
Date:Nov 8, 1993
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