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Arkla Exploration Co.


Reports 26.7 Percent Earnings Increase

SHREVEPORT, La. -- Arkla Exploration Co. reported an increase in earnings for both the second quarter and the year-to-date period ending June 30.

The company had second-quarter consolidated net income of $1.4 million, 4 cents a share, a 26.7 percent increase over $1.1 million, 3 cents a share, for the second quarter of 1990.

For the six-month period, Arkla Exploration earned $4.7 million, 14 cents a share, a 14.3 percent increase over $4.1 million, 12 cents a share, for the first half of last year.

It was the third consecutive quarter Arkla Exploration has reported an increase over respective quarterly earnings for the previous year.

"We are gratified by this modest increase in earnings, particularly at a time when economic conditions are exerting extreme pressure on natural gas prices throughout the industry," said Carl S. Quinn, chairman and chief executive officer of Arkla Exploration.

Quinn attributed the increase primarily to a rise in petroleum liquids volumes and sales prices.

Operating revenues for the second quarter were $42.3 million, a 14.7 percent rise over $36.9 million in the second quarter of 1990.

For the year thus far, operating revenues were $89.4 million, a 9.4 percent increase over first-half revenues of $81.7 million last year.

Net cash flow from operations (before net changes in working capital) was down slightly to $18 million for the second quarter, compared with $18.3 million in 1990.

For the first six months of the year, cash flow was $43.8 million, compared with $39.7 million last year.

Arkla Exploration produced 15.4 billion cubic feet of gas in the second quarter, up from 15.2 BCF last year.

For the first six months, production was 32.4 BCF, up from 30 BCF in 1990.

The company also continued to increase its oil and liquids production, which was up 51.1 percent to 284,000 barrels for the quarter and increased 64.2 percent to 568,000 barrels for the first six months.

The company's total sales volumes increased slightly for the first half to 45.7 BCF and equivalent, compared with 45.2 last year, despite a narrow drop to 22 BCFE from 22.5 BCFE in the second quarter. The drop was due primarily to a decrease in gas purchased for resale.

The company's average sales price for gas was $1.77 per thousand cubic feet for the quarter, compared with $1.56 per MCF last year. For the first six months, the average sales price was $1.81 per MCF, compared with $1.74 per MCF for the same period in 1990.

Average liquids prices increased by $2.47 to $19.99 per barrel for the quarter, and rose $1.25 to $20.11 per barrel for the first six months of the year.

On July 25, the company's board of directors declared a quarterly dividend of 5 cents a share, payable on Sept. 13 to all shareholders of record as of Aug. 23.

Arkla Exploration is one of the nation's largest independent operators in terms of proven natural gas reserves. The company is active in the exploration, development, production and marketing of natural gas and oil in the mid-continent and Gulf Coast regions of the United States.

The company's stock is 82 percent owned by Arkla Inc.

Contact Elvis Thornton, Arkla Exploration Co., P.O. Box 21734, Shreveport, La., 71151-001, (318) 429-2909.
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Title Annotation:Public company coporate reports
Publication:Arkansas Business
Article Type:company profile
Date:Aug 12, 1991
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