ARKLA EXPLORATION REPORTS THIRD QUARTER RESULTS
ARKLA EXPLORATION REPORTS THIRD QUARTER RESULTS SHREVEPORT, La., Nov. 5 /PRNewswire/ -- Arkla Exploration Company
(NYSE: ARK) today reported financial results for the third quarter and year-to-date ending Sept. 30, 1991.
The company posted third quarter consolidated net income of $642,000, or 2 cents per share, compared to $1.21 million, or 4 cents per share reported in the third quarter of 1990. For the nine month period, however, the company earned $5.31 million, or 16 cents per share, up marginally from the $5.29 million earned in the corresponding period last year. In addition, Arkla Exploration reported an increase in third quarter and year-to-date operating revenues and operating income, and in cash flow for the year-to-date. According to Carl S. Quinn, chairman and chief executive officer of Arkla Exploration, the positive results posted by the company could be attributed largely due to the company's sixth consecutive quarter-to- quarter increase in crude oil and liquids sales volumes. However, Quinn said the results were also affected in the third quarter by the lingering effect of lower summer spot market prices for gas; reduced sales volumes resulting from the subsequent shut-in of some wells due to the softness in gas markets; tighter margins and lower volumes on gas purchased for resale; and a relative drop in third quarter oil prices compared to the unusual spike in oil prices following the Kuwaiti invasion of August 1990. In addition, the decision to suspend the accrual of tight sands tax credits, as well as higher depletion and depreciation costs, also impacted third quarter earnings. Nevertheless, Quinn noted that Arkla Exploration was still able to post a rise in both operating revenues and operating income for the third quarter and the year-to-date. Operating revenues for the third quarter of 1991 were $38.49 million, a 5.9 percent rise over $36.35 million in the third quarter of 1990. For the year-to-date, operating revenues were $127.88 million, a 8.3 percent increase over nine month revenues of $118.07 million last year. Operating income was also up 5.4 percent, to $4.81 million, for the third quarter of this year, and it increased 23.8 percent, to $18.19 million, for the first nine months of this year. Net cash flow from operations (before net changes in working capital) was $15.67 million for the third quarter of this year, compared to $18.06 million in 1990. However, cash flow for the year-to-date was still up 2.9 percent, to $59.44 million, from $57.73 million last year. Operationally, the company sold 17.9 billion cubic feet (Bcf) of natural gas in the third quarter, compared to 20.1 Bcf last year; and for the year, sales equalled 60.2 Bcf of gas, compared to 63.2 Bcf. Nevertheless, oil and liquids production was up 38.9 percent to 264,000 barrels for the quarter, and up 55.2 percent to 832,000 barrels for the year-to-date 1991. Arkla Exploration's average sales price for natural gas was $1.83 per thousand cubic feet (Mcf) for the third quarter of 1991, up from $1.55 per Mcf at this time last year. And for the nine-month period, gas prices averaged $1.82 per Mcf, up from $1.67 per Mcf in 1990. Average liquids prices, on the other hand, were down to $19.90 for the quarter and $20.04 for the year-to-date, off 13.3 percent and 1.3 percent, respectively, in comparison to last year. Meanwhile, Quinn reported that the company is continuing to make steady progress on its major two-year East Texas Development Drilling Program. Six separate drilling rigs -- under contract to Arkla Exploration -- are currently up and working in the Carthage, Tatum and Waskom Fields of Harrison and Panola Counties, Texas. To date, the company has drilled a total of 31 wells which are in various stages of completion. All told, a total of approximately 50 well locations (or more than half of the two-year program) have been staked, which means that the company is on schedule to complete the entire program prior to year-end 1992. Finally, Quinn also reported that, at their regularly scheduled meeting of October 24, Arkla Exploration's board of directors declared a quarterly dividend of $0.05 per share payable on Dec. 13, 1991, to all shareholders of record as of Nov. 22, 1991. Arkla Exploration is one of the nation's largest independent operators in terms of proved natural gas reserves, production and drilling activity. Arkla Exploration's stock is 82 percent owned by Arkla, Inc. (NYSE: ALG). ARKLA EXPLORATION COMPANY & SUBSIDIARIES Financial Summary (Unaudited, in thousands except per share amounts) Periods ended: Three months Nine months Sept. 30: 1991 1990 1991 1990 Operating revenues $38,492 $36,345 $127,883 $118,071 Operating income 4,810 4,563 18,187 14,688 Net income 642 1,213 5,309 5,297 Earnings per common share $0.02 $0.04 $0.16 $0.16 Weighted average common shares outstanding 33,330 33,000 33,126 33,000 Cash flow from operations (before net changes in working capital) $15,671 $18,061 $59,437 $57,734 Statistical Summary (Unaudited) Periods ended: Three months Nine months Sept. 30: 1991 1990 1991 1990 Sales Volumes: Natural gas (MMCF): 17,919 20,067 60,201 63,172 Oil & liquids (MBBL) 264 190 832 536 Total equivalent volumes (MMCFE) 19,499 21,201 65,193 66,382 Average Sales Prices ($): Natural gas 1.83 1.55 1.82 1.67 Oil & liquids 19.90 22.94 20.04 20.30 Average equivalent price ($/MCFE) 1.95 1.67 1.93 1.76 Production costs ($/MCFE) 0.46 0.33 0.39 0.34 General & administrative ($/MCFE) 0.14 0.17 0.16 0.18 Depletion & depreciation ($000's) 16,696 15,962 56,221 48,563 -0- 11/5/91 /CONTACT: R. Elvis Thornton, 318-429-2909, or Louis J. Resweber, 713-623-5033, both of Arkla Exploration/ (ARK) CO: Arkla Exploration Company ST: Louisiana IN: OIL SU: ERN TS -- NY039 -- 1213 11/05/91 11:33 EST
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|Date:||Nov 5, 1991|
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