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DEVON ENERGY REPORTS BEST YEAR IN COMPANY'S HISTORY; REVENUES, EARNINGS, TOTAL ASSETS, OIL AND GAS RESERVES REACH NEW RECORDS

 OKLAHOMA CITY, March 2 /PRNewswire/ -- Devon Energy Corp. (AMEX: DVN), an independent oil and gas exploration and production firm, today announced that 1992 was the best in the company's 20-plus-year history. Revenues of $71.6 million, earnings of $14.6 million, and total assets of $226.0 million set new records. Earnings per common share of 94 cents also was a new record.
 The results were driven by two major factors. First, on July 1, 1992, the company completed the $126.0 million acquisition of most of the U.S. oil and gas properties of Hondo Oil & Gas Company. Second, production from the company's largest property, the Northeast Blanco Unit (NEBU) in northwest New Mexico, doubled. These factors translated to record oil and gas production of 37.7 equivalent billion cubic feet (EBcf) and oil and gas reserves of 367.8 EBcf.
 Revenues Double, Pre-tax Expenses Remain Flat
 Total revenues for the 12 months ended Dec. 31, 1992, were $71.6 million, up 136 percent from last year's $30.3 million. Gas sales rose 109 percent to $40.0 million on an 84 percent production gain to 28.4 billion cubic feet (Bcf). Production from NEBU doubled to 17.6 Bcf and was the biggest contributor to the gas production increase. The acquisition of the Hondo properties added another 4.9 Bcf during the second half of the year. A 14 percent gain in average sales price also helped gas revenues.
 Oil sales rose 190 percent to $27.3 million on a 202 percent production gain to 1.45 million barrels. The increase in production came almost exclusively from the Hondo properties. Average oil prices declined by a modest 3 percent to $18.89 per barrel.
 Sales of natural gas liquids jumped to $1.4 million from a nominal figure last year. Almost all of the production came from the Hondo properties.
 Total pre-tax expenses rose only 1 percent to $52.1 million. The non-cash portion of pre-tax expenses dropped 39 percent, from $32.8 million to $19.9 million in 1992. In 1991, these expenses included not only normal depreciation, depletion, and amortization, but also a "full cost adjustment" of $25 million.
 The cash portion of pre-tax expenses jumped 73 percent to $32.2 million. Production and operating expenses provided almost all of the gain, as general and administrative expenses and interest expenses were only marginally higher.
 Pre-tax and Net Earnings Reach New Highs
 With revenues up and pre-tax expenses flat, pre-tax earnings reached $19.5 million compared to a loss of $21.1 million last year. Taxes for the year ended Dec. 31, 1992, were $4.9 million, of which $3.6 million was deferred. Net earnings were $14.6 million compared to a loss of $15.0 million last year.


Even though the average weighted common shares outstanding rose 59 percent to 13.8 million for 1992, earnings per common share still set a new record: 94 cents versus a $1.99 loss for 1991.
 Balance Sheet Stronger: Total Assets Double, Liquidity Enhanced
 Total assets at year-end 1992 were $226.0 million, a 121 percent gain over the $102.1 million of year-end 1991. Most of the gain resulted from the Hondo acquisition. The record earnings also contributed to the gain.
 Long-term debt rose 70 percent to $54.5 million. This rise was proportionately smaller than those for total assets or stockholders' equity. Consequently, Devon's already strong balance sheet became stronger.
 The company's liquidity improved dramatically. Working capital was up 202 percent to $12.6 million, and unused credit lines soared 183 percent to $65 million.
 Stockholders' equity jumped 189 percent to $153.3 million. This gain resulted from the record earnings and from the issuance of new common stock in 1992. A total of 9.2 million additional common shares were issued at a net price of $9.42 per share to help finance the Hondo acquisition.
 In November 1992, Devon called all 1,169,800 shares of its outstanding convertible preferred stock. The call effectively forced conversion of the preferred shares into 2.72 million shares of common. Consequently, all $153.3 million of shareholders' equity at year-end 1992 was common equity.
 Gas Production Could Rise 25 Percent in 1993
 "Clearly, 1992 was a banner year for us," remarked J. Larry Nichols, president and chief executive officer. "We enjoyed dramatic gains in virtually every category, including assets, oil and gas reserves, revenues and earnings. Most importantly, these gains were reflected in the per-share results, particularly earnings, cash flow and reserves per share. We even reduced our already low net debt per share from $2.55 to $2.09 at year-end 1992. We think our shareholders enjoyed a substantial increase in net value per share.
 "Although it is much too early to project 1993 financial results, we are comfortable Devon can achieve substantial oil and gas production gains. We expect 1993 gas production to rise some 25 percent to 32 to 37 Bcf. Oil and liquids production could jump 50 percent to 2.2 to 2.6 million barrels," Nichols concluded.
 Devon Energy Corp. is an independent energy company engaged primarily in oil and gas property acquisitions, exploration and production, and oil and natural gas remarketing. The company ranks in the top 25 percent of U.S. publicly held oil and gas firms, measured by oil and gas reserves. Devon's common shares trade on the American Stock Exchange under the symbol DVN.
 For further information on Devon Energy by FAX, Dial 1-800-PRO-INFO, ext. 047.
 DEVON ENERGY CORP.
 Income Statement
 (In thousands, except per share and percent change data)
 Year Fourth Quarter
 Periods ended
 Dec. 31, 1992 1991 Percent 1992 1991 Percent
 change change
 Total revenues $71,564 $30,342 136 $28,116 $8,575 228
 Oil sales 27,329 9,436 190 11,402 2,210 416
 Gas sales 39,973 19,091 109 15,534 6,221 150
 Liquid sales 1,370 N/A N/A 633 N/A N/A
 Other 2,892 1,815 59 547 144 280
 Total Expenses 52,078 51,486 1 18,773 7,528 149
 Production and
 operating 23,030 10,601 117 8,875 2,964 199
 Depreciation,
 depletion and
 amortization 19,894 7,844 154 6,969 2,238 211
 General and administrative
 and other 6,510 5,832 12 2,157 1,830 18
 Interest 2,644 2,209 20 772 496 56
 Reduction of
 carrying value
 of oil & gas
 properties -- 25,000 -100 -- 0 0
 Pretax income
 (loss) 19,486 (21,144) 192 9,343 1,047 792
 Net earnings
 (loss) 14,615 (15,024) 197 7,306 1,047 598
 Preferred
 dividends 1,703 2,269 -25 1 567 -100
 Net earnings (loss)
 to common
 shareholders 12,912 (17,293) 175 7,305 480 1,422
 Net earnings (loss) per
 common share/
 no dilution $.94 $(1.99) 147 $ .37 $ .06 -517
 Net earnings (loss) per
 common share/
 fully diluted $.90 $(1.99) 145 $ .35 $ .06 -483
 Weighted average
 common shares
 outstanding 13,802 8,687 59 19,859 8,693 128
 Cash flow
 accrued(1) 38,176 11,636 228 15,170 3,241 368
 Cash flow per share
 accrued(1) $2.64 $ 1.08 144 $ .76 $ .31 145
 Operating cash
 flow(2) 30,499 9,320 227 11,023 4,595 140
 Operating cash flow
 per share(2) $2.09 $.81 158 $ .56 $ .46 22
 BALANCE SHEET
 Working capital 12,630 4,174 202
 Total assets 225,972 102,107 121
 Long-term debt 54,450 32,000 70
 Stockholders'
 equity 153,267 53,015 189
 Common shares
 outstanding 20,733 8,693 139
 Preferred shares
 outstanding 0 1,170 -100
 PRODUCTION DATA
 Total Production
 (EBcf) 37.7 18.3 106 12.6 5.0 152
 Oil (MMBbls) 1.45 .48 202 .62 .10 520
 Gas (Bcf) 28.4 15.4 84 8.6 4.4 95
 Liquids (MMBbls) .1 N/A N/A .05 N/A N/A
 Average oil
 price/Bbl $18.89 $19.89 -3 $18.44 $19.98 -8
 Average gas
 price/Mcf $1.42 $1.24 14 $1.80 $1.40 29
 Average liquids
 price/Bbl $12.28 N/A N/A $12.22 N/A N/A
 (1) Before balance sheet changes
 (2) After balance sheet changes
 For further information: Devon Energy Corporation, 1500 Mid-America Tower 20 North Broadway, Oklahoma City, Okla. 73102, 405-235-3611
 -0- 3/2/93
 /CONTACT: Marian J. Moon, manager-corporate communications of Devon Energy, 405-235-3611; or Lynne Franklin, in Chicago, 312-266-7800 or Kathy Phelan, in New York, 212-661-8030, both of The Financial Relations Board/
 (DVN)


CO: e?von Energy Corp. ST: Oklahoma IN: OIL SU: ERN

WB -- NY071 -- 1970 03/02/93 12:53 EST
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