BEARD OIL REPORTS THIRD QUARTER AND NINE MONTHS RESULTS
BEARD OIL REPORTS THIRD QUARTER AND NINE MONTHS RESULTS OKLAHOMA CITY, Nov. 14 /PRNewswire/ -- Beard Oil Company (AMEX: BOC)
today reported a 16 percent increase in revenues for the third quarter of 1991, to $16.04 million vs. revenues of $13.87 million for the same period of 1990. Revenues for the first nine months of 1991 reflect a 63 percent increase to $49.62 million from $30.41 million last year.
The current quarter produced a net loss of $6.48 million, or $1.11 per share, compared to a net loss of $3.74 million, or 64 cents per share, for the same period in 1990. The nine months' loss for 1991 totaled $12.92 million, or $2.21 per share, vs. a net loss of $8.89 million, or $1.52 per share, a year ago. Results for the third quarter and nine months of 1991 were heavily impacted by an impairment provision of $3.6 million, or 62 cents per share, in connection with one of the company's waterflood units in Seminole County, Okla., which has thus far failed to respond to water injection. The negative interest spread on the shared appreciation debentures, which totaled $2.36 million for the third quarter of 1991, vs. $2.00 million for the same quarter in 1990, continued to adversely affect the company's operating results. Such negative interest spread -- interest expense in excess of interest income -- totaled $8.27 million for the nine months ended Sept. 30, 1991, compared to $5.27 million for the year earlier period. In addition, the company's oilfield service and supply segment experienced a $694,000 operating loss for the third quarter of 1991 vs. a $71,000 operating loss for the third quarter of 1990 on revenues of $6.68 million and $5.29 million, respectively. Herb Mee Jr., president, stated, "We thought that the second quarter would be the earnings bottom for the company, but obviously we were a quarter early. We anticipate slow but steady improvement from our waterflood operations. As a result of the extremely poor performance of our oilfield service and supply operations we are in the process of downsizing our oilfield supply operations, which have generated most of the losses. Three stores, three sales offices and a significant amount of overhead have been eliminated and meaningful reductions in inventory are being made. We are hopeful that following these reductions our supply company will become profitable. "On the positive side," Mee added, "we are continuing to see a healthy increase in oil production now that several of our newer waterfloods are starting to respond. August oil production of 3,025 barrels of oil per day (BOPD) exceeded the company's previous high of 2,994 BOPD recorded in October of 1990. September posted another new high of 3,072 BOPD." Beard Oil Company is a diversified natural resource company headquartered in Oklahoma City. Its principal business is oil and gas exploration and production, with an emphasis on secondary recovery operations. The company is the third largest manufacturer of dry ice and one of the leading independent producers of carbon dioxide (CO2) in the country. BEARD OIL COMPANY Statements of Operations (Unaudited) Periods ended Three Months Nine Months Sept. 30 1991 1990 1991 1990 Revenues $16,037,000 $13,865,000 $ 49,622,000 $30,405,000 Expenses 20,267,000 15,688,000 55,894,000 33,681,000 Total (4,230,000) (1,823,000) (6,272,000) (3,276,000) Other income (expense) (2,246,000) (1,915,000) (6,645,000) (5,609,000) Loss before income taxes (6,476,000) (3,738,000) (12,917,000) (8,885,000) Income taxes -- -- -- -- Net loss $(6,476,000) $(3,738,000) $(12,917,000) $(8,885,000) Net loss per common share $(1.11) $(.64) $(2.21) $(1.52) Working capital provided by operations 544,000 2,633,000 586,000 3,866,000 Weighted average number of shares outstanding 5,838,000 5,779,000 5,838,000 5,830,000 -0- 11/14/91 /CONTACT: Herb Mee Jr., president of Beard Oil, 405-842-2333; or Cheryl M. Hudak of Cheryl Mayfield Hudak Communications, 405-848-3520, for Beard Oil/ (BOC) CO: Beard Oil Company ST: Oklahoma IN: OIL SU: ERN GK -- NY081 -- 1173 11/14/91 14:46 EST
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|Date:||Nov 14, 1991|
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