BASIN REPORTS FIRST QUARTER EARNINGS; REVENUES UP 121 PERCENT FROM 1991
BASIN REPORTS FIRST QUARTER EARNINGS; REVENUES UP 121 PERCENT FROM 1991 DENVER, June 9 /PRNewswire/ -- Basin Exploration Inc. (NASDAQ-NMS: BSNX) today reported record net income and operating revenues for the first quarter ended March 31, 1992. The company reported net income of $768,000, or 18 cents per share, on operating revenues of $4.6 million. This compares to net income of $420,000, or 10 cents per share, on revenues of $2.1 million for the corresponding quarter a year ago. Cash flow from operations of $2.0 million in the first quarter of 1992 was 95 percent higher than the $1.0 million reported for the first quarter of 1991. The improved results were due primarily to increases in production attributable to the Spindle field, acquired in November 1991. Oil production averaged 1,393 barrels per day for the first quarter 1992, up from 433 barrels per day a year ago. Gas production increased to an average 16.7 million cubic feet (MMcf) per day from 9.1 MMcf per day during 1991's first quarter. Partially offsetting the higher revenues from increased production was an increase in interest expense attributable to the Spindle acquisition and a decrease in average product prices. Product prices of $20.08 per barrel of oil ($17.45 per barrel excluding hedge income) and $1.33 per thousand cubic feet (Mcf) of gas were reported for the quarter versus $20.96 per barrel of oil and $1.61 per Mcf in the first quarter of 1991. Michael Smith, president and chief executive officer of Basin, said, "Our first quarter revenues and cash flow before interest expense were roughly one-fourth of our 1991 pro forma results despite the fact that we did not drill any wells during the quarter. We attribute this to the low decline rates of our established production base and the continued increases in production from the Spindle field wells. Daily production from the field for the month of May increased 10 percent from the volumes reported in the first quarter." Smith went on to say, "We have recently initiated our 1992 drilling and recompletion program following our initial public offering completed last month. As a result, we do not consider first quarter results indicative of the entire year given the limited activity that occurred prior to the offering.
170 development wells and 100 recompletions planned for 1992. We anticipate this program to be fully underway during the third quarter."
On May 13, 1992, Basin completed its initial public offering of 2.8 million shares of common stock. Net proceeds from the offering were used principally to prepay indebtedness resulting in increased borrowing capacity which, together with cash flow from operations, will enable the company to fund its development program and exploitation activities. Basin Exploration is primarily engaged in the development, exploitation and acquisition of oil and gas properties in the Rocky Mountain region with a particular focus in the Denver-Julesburg Basin of Colorado. The company's securities are traded on the NASDAQ National Market System under the symbol BSNX. BASIN EXPLORATION INC. INCOME STATEMENT (Unaudited) (In thousands, except per share data) For the Quarter Ended March 31, 1992 1991 Operating revenues $ 4,572 $ 2,067 Operating costs and expenses: Production expense 1,484 542 DD&A 1,192 578 G&A, net 558 261 3,234 1,381 Operating income $ 1,338 $ 686 Other income (expense): Interest expense (600) (284) Other income 44 27 (556) (257) Net income before taxes 782 429 Deferred income tax provision (14) (9) Net income(1) $ 768 $ 420 Income per common share $ 0.18 $ 0.10 Weighted average shares of common stock outstanding 4,200 4,200 PRODUCTION AND PRICING DATA Oil production (barrels) 126,794 38,934 Average price per barrel $20.08 $20.96 Natural gas and liquids production (Mcf) 1,518,000 816,000 Average price per Mcf $1.33 $1.61 (1) Net income for both periods reflects the company's status as an S Corporation for federal income tax purposes. -0- 6/9/92 /CONTACT: Karen Mueller of Basin Exploration, 303-292-2322/ (BSNX) CO: Basin Exploration Inc. ST: Colorado IN: OIL SU: ERN
MC-BB -- DV007 -- 8360 06/09/92 12:14 EDT
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|Date:||Jun 9, 1992|
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