Printer Friendly

ALAMCO ANNOUNCES IMPROVED SECOND QUARTER 1992 RESULTS AND COURT APPROVAL OF $11,000,000 CLAIM AGAINST PIPELINE

 ALAMCO ANNOUNCES IMPROVED SECOND QUARTER 1992 RESULTS
 AND COURT APPROVAL OF $11,000,000 CLAIM AGAINST PIPELINE
 CLARKSBURG, W.Va., Aug. 4 /PRNewswire/ -- Alamco, Inc., (AMEX: AXO) today announced substantially improved second quarter 1992 operating results.
 Higher gas sales volumes and prices contributed significantly to improved cash flow from operations, earnings and operating income.
 Cash flow from operations for the second quarter 1992 totaled $722,000 or $0.28 per share, a $237,000 or 49 percent increase over cash flow from operations of $485,000 or $0.19 per share last year. Net income for the quarter was $117,000 or $0.05 per share (including an extraordinary tax benefit of $11,000 or $0.01 per share) compared to $56,000 or $0.02 per share (including an extraordinary tax benefit and gain on debt extinguishment totaling $181,000 or $0.07 per share) for the second quarter 1991.
 Income from operations totaled $123,000 in the second quarter 1992 as compared to a loss of $183,000 in second quarter last year, an improvement of $306,000 due to significantly higher gas and oil revenues. Revenues totaled $2,719,000, an increase of $587,000 or 28 percent compared to $2,132,000 in the second quarter 1991. Increased gas sales volumes, due primarily to production from wells acquired in October 1991, and higher gas prices contributed $516,000 and $106,000, respectively, to the revenue increase and were partially offset by lower oil volumes and prices. Expenses for the second quarter 1992 totaled $2,596,000 and were $281,000 or only 12 percent higher than second quarter 1991. The October 1991 property acquisition contributed to the increase in expenses during the quarter including higher interest expense because of debt incurred in connection with the acquisition, higher depreciation, depletion and amortization expense and somewhat higher operating expenses.
 Income from operations for the first six months of 1992 totaled $392,000 as compared to a loss of $103,000 last year. Revenues increased $626,000 or 13 percent to $5,350,000 compared to $4,724,000 last year due principally to higher gas sales volumes. Expenses in the first half of 1992 increased $131,000 or 3 percent to $4,958,000 as compared to first half of 1991 primarily due to the operation of wells purchased last year. General and administrative expenses were lower by $313,000 or 21 percent due to, among other things, lower salary and other related employee expenses and the absence of expenses incurred in establishing the company's revolving credit facility in the first quarter of 1991.
 Cash flow from operations totaled $2,136,000 or $0.84 per share for the first half of 1992 compared to $1,137,000 or $0.44 per share for the first half of 1991.
 Net income for the first six months of 1992 was $329,000 or $0.13 per share (including an extraordinary tax benefit of $32,000 or $0.01 per share) compared to $701,000 or $0.27 per share (including an extraordinary tax benefit and gain on debt extinguishment totaling $731,000 or $0.28 per share) for the first half of 1991.
 During the first half of 1992 approximately $830,000 was invested in gas and oil capital projects including the successful recompletion of eight wells and the acquisition of outside owners interest in 204 gross wells (35.38 net wells) operated by the company. For the remainder of the year, the company anticipates drilling a minimum of three wells and recompleting an additional six wells. Also, the company will actively pursue the addition of reserves that incrementally enhance the company's revenue base without significant increases to the company's overhead cost. In this regard, the company in the third quarter 1992 committed to purchase an Oriskany well located in a field in which the company has significant operations for $170,000 and the purchase of outside working interests ownership in 23 company operated wells (11.3 net wells) for $90,000. The company anticipates a 1992 capital investment program exceeding $2 million.
 The company also announced that the bankruptcy court supervising the Columbia Gas Transmission Corporation's bankruptcy proceedings has approved the previously announced settlement agreement between Columbia and the company. Under the approval, the company will have an allowed claim against Columbia in the amount of $11,000,000, without security or priority, in connection with various long-term gas purchase contract claims by the company against Columbia. Alamco's share of the claim is estimated to be approximately 50 percent with the balance held by other interest owners in the wells subject to the Columbia contracts. The timing and actual amount to be paid to the company and other interest owners by Columbia, however, will be affected by the terms of Columbia's bankruptcy reorganization plan and the amount of assets ultimately available in Columbia's bankruptcy proceedings to satisfy Columbia's unsecured creditors. Because of the uncertainty as to the actual amount which may be received, the company's financial statements do not include any benefit of the settlement.
 Alamco, headquartered in Clarksburg, W.Va., is an independent producer of gas and oil in the Appalachian Basin with a major operating concentration in West Virginia gas fields. The company's stock is traded on the American Stock Exchange under the symbol AXO.
 ALAMCO, INC. AND SUBSIDIARY
 Condensed Consolidated Statement of Operations
 (Unaudited)
 (In thousands, except per share data)
 Period Three Months Six Months
 Ended June 30 1992 1991 1992 1991
 Revenues $2,719 $2,132 $5,350 $4,724
 Operating expenses 958 905 1,892 1,784
 General & admin.
 expenses 656 595 1,184 1,497
 Depreciation,
 depletion & amort. 769 672 1,477 1,358
 Interest expense 193 143 385 188
 Loss on asset sale 20 -- 20 --
 Total expenses 2,596 2,315 4,958 4,827
 Income (loss) from
 operations 123 (183) 392 (103)
 Other nonoperating
 income, net 53 102 93 165
 Income (loss) before
 taxes & extraordinary
 items 176 (81) 485 62
 Income tax provision 70 44 188 92
 Income (loss) before
 extraordinary items 106 (125) 297 (30)
 Extraordinary items:
 Gain on debt
 extinguishment -- 162 -- 712
 Income tax benefit 11 19 32 19
 Net income 117 56 329 701
 Earnings per share:
 Income (loss) before
 extraordinary items $0.04 $(0.05) $0.12 $(0.01)
 Extraordinary items $0.01 $0.07 $0.01 $0.28
 Net income per share $0.05 $0.02 $0.13 $0.27
 Weighted avg.
 number of shares
 outstanding 2,555,423 2,590,290 2,549,694 2,590,141
 Other Selected Financial Data
 Cash flow from
 operations 722 485 2,136 1,137
 Per share: $0.28 $0.19 $0.84 $0.44
 -0- 8/4/92
 /CONTACT: Jane Merandi of Alamco, 304-623-6671/
 (AXO) CO: Alamco, Inc. ST: West Virginia IN: OIL SU: ERN


JT-PT -- PG003 -- 6468 08/04/92 07:56 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 4, 1992
Words:1147
Previous Article:SMITH'S FOOD & DRUG CENTERS APPROVES STOCK REPURCHASE PLAN
Next Article:THIOKOL ANNUAL INCOME INCREASES 18 PERCENT
Topics:


Related Articles
ALAMCO, INC., ANNOUNCES EARNINGS
ALAMCO, INC., REPORTS FIRST QUARTER 1992 RESULTS
ALAMCO ANNOUNCES SIGNIFICANTLY IMPROVED THIRD QUARTER 1992 RESULTS
ALAMCO, INC. REPORTS SUBSTANTIALLY IMPROVED 1992 OPERATING RESULTS, SIGNIFICANT INCREASES IN PROVED OIL AND GAS RESERVES
ALAMCO REPORTS NET INCOME DOUBLES IN FIRST QUARTER 1993; ALAMCO ANTICIPATES COMMON STOCK OFFERING
ALAMCO REPORTS HIGHER SECOND QUARTER 1993 EARNINGS, REPAYMENT OF REVOLVING CREDIT FACILITY, INCREASES TO 1993 CAPITAL INVESTMENT PROGRAM
ALAMCO ANNOUNCES HIGHER GAS SALES VOLUMES AND THIRD QUARTER INCOME
ALAMCO ANNOUNCES SIGNIFICANTLY IMPROVED 1993 OPERATING RESULTS
ALAMCO ANNOUNCES THIRD QUARTER 1995 RESULTS
ALAMCO, INC. ANNOUNCES RECORD FIRST QUARTER 1996 RESULTS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters