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DEVON ENERGY REPORTS INCREASED PRODUCTION REVENUES; DECREASE EARNINGS FOR SECOND QUARTER

 DEVON ENERGY REPORTS INCREASED PRODUCTION REVENUES;
 DECREASE EARNINGS FOR SECOND QUARTER
 OKLAHOMA CITY, Aug. 13 /PRNewswire/ -- Devon Energy Corp. (AMEX: DVN and DVN.Pr) today reported strong operational results and revenues but slightly weaker net income results for the second quarter ended June 30, 1992.
 Net earnings for the period were $1.3 million, or 8 cents per share, compared to $1.6 million, or 12 cents per share a year ago. The company realized a 42 percent gain in oil and gas revenue and only a modest 3 percent increase in cash expenses in the current quarter. This as somewhat offset by a higher rate for non-cash depreciation, depletion and amortization expense. In addition, the 1991 period benefited from a $0.6 million litigation settlement and a special income tax benefit that were not repeated in the second quarter of 1992.
 Six Months Earnings Compared with Loss
 For the first half of 1992, the company reported earnings of $2.1 million, or 11 cents per share, compared with a loss of $16.2 million, or $2.00 per share. The 1992 first half results were aided by increased oil and gas revenues and flat cash expenses. By comparison, the 1991 first half was affected by a non-cash $25 million pre-tax charge to reduce the carrying value of properties.
 Gas Production, Total Revenue Increase
 For both the second quarter and the first half of 1992, the company significantly increased gas production, primarily due to continued increases at its coal steam gas project in northwest New Mexico, the Northeast Blanco Unit (NEBU). Second quarter production rose by 59 percent to 6.1 billion cubic feet (BCF), 4.6 BCF of which was from NEBU. First half gas production rose 48 percent to 11.2 BCF, 8.1 of which was from NEBU. Production gains for the second quarter were aided by slightly higher gas prices, causing a 66 percent increase in gas revenues. For the first half, however, 10 percent lower gas prices somewhat offset the production increases, resulting in a 34 percent increase in gas revenues. Oil production and revenues were down slightly for the second quarter and first half of 1992, primarily due to production declines from normal depletion.
 Total revenue for the second quarter of 1991 included a $0.6 million litigation settlement that did not recur in 1992. However, an unrelated $0.6 million gas contract settlement in the first quarter of 1992 made non-oil and gas revenues for the first half of each year roughly comparable.
 Lifting Cost Rate, Interest Expense Decline; DD&A Rate Higher Cash expenses for the latest quarter were stable at $4.6 million. Although total production increased 49 percent, production and operating expenses rose only 8 percent. This resulted in a 28 percent decrease in production and operating expenses on a per-unit basis, to 41 cents per equivalent thousand cubic feet (EMCF) -- the ninth consecutive quarterly decrease in lifting costs per unit of production. The continued reduction is possible because of low operating costs at the NEBU project, which accounted for 68 percent of total second quarter production, and Devon's program of selling high-cost properties. General and administrative expenses were up only 3 percent to $1.3 million. Interest expense was down 20 percent to $455,000, due to lower interest rates during 1992. As a result, total cash expenses were flat quarter- to-quarter versus gains in both production and revenue.
 Depreciation, depletion and amortization (DD&A) expense rose 103 percent in the 1992 second quarter compared with the same three months last year. This increase was larger than the 40 percent increase in total production, due to an adjustment to the rate during the second quarter of 1991. The second quarter 1991 DD&A rate of 30 cents per EMCF was the result of a significant reserve increase at NEBU, which was recorded in the second quarter of 1991. Due to the timing of the revision, the entire effect of the lower DD&A rate for the first half of the year was reported in the second quarter of 1991. The rates for the first half of 1992 versus 1991 are roughly comparable, at 42 cents and 38 cents, respectively.
 Financial Condition Remains Strong
 During the first half of the year, long-term debt rose $1.0 million to $33.0 million. With $6.6 million in working capital, first half cash flow of $8.3 million, and $22.0 million of borrowing capacity at June 30, 1992, the company remained financially strong and liquid.
 Major Acquisition, Common Stock Offering Completed
 On July 1, Devon completed the acquisition of substantially all of the U.S. oil and gas properties of Hondo Oil & Gas Company for $126.6 million. The acquisition was purchased with $86.6 million of net proceeds from an offering of 9.2 million shares of Devon common stock and $40 million of bank debt. Immediately after the acquisition, the company's working capital rose to $12.7 million, available credit increased to $43 million, and second half cash flow estimates more than doubled. Since the acquisition was completed after the second quarter closed, it is not reflected in these results.
 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 Energy's common and preferred shares trade on the American Stock Exchange under the symbols 'DVN' and 'DVN.Pr,' respectively. For further information on Devon Energy by FAX, Dial 1- 800-PRO-INFO, ext. 047. Financial information follows.
 DEVON ENERGY CORP.
 INCOME STATEMENT DATA
 (In thousands except per share and percent change data)
 Quarter ended June 30,
 1992 1991 Change(pct.)
 Total revenue: 9,398 7,546 25
 Gas $6,918 4,163 66
 Oil $2,296 2,345 - 2
 Other $184 1,038 -82
 Cash expenses $4,580 4,447 3
 Reduction of carrying value
 of oil and gas properties -- --
 Net earnings (loss) $1,280 1,594 -20
 Preferred stock dividends $567 567 0
 Net income (loss) per common share $0.08 $0.12 -33
 Weighted average shares outstanding 8,696 8,685 0
 Six Months ended June 30,
 1992 1991 Change
 Total revenue: 17,659 15,538 14
 Gas $12,347 9,230 34
 Oil 4,176 4,866 -14
 Other 1,136 1,442 -21
 Cash expenses 9,307 9,175 1
 Reduction of carrying value
 of oil and gas properties -- 25,000
 Net earnings (loss) 2,071 (16,217) N/M
 Preferred stock dividends 1,135 1,135 0
 Net income (loss) per common share $0.11 ($2.00) N/M
 Weighted average shares outstanding 8,695 8,683 0
 PRODUCTION DATA
 Quarter ended June 30,
 1992 1991
 Change(pct.)
 Total production
 (in equivalent
 billion cubic feet) 6.808 4.584 49
 Gas (billion cubic feet) 6.097 3.843 59
 Oil (thousands of barrels) 118 124 ? - 4
 Average Price
 (per equivalent
 thousand cubic feet) $1.35 $1.42 - 5
 Average gas price
 (per thousands cubic feet) $1.13 $1.08 5
 Average oil price (per barrel) $19.37 $18.98 2
 Six Months ended June 30,
 1992 1991 Change(pct.)
 Total production
 (in equivalent
 billion cubic feet) 12.558 9.099 38
 Gas (billion cubic feet) 11.180 7.575 48
 Oil (thousands of barrels) 230 254 -10
 Average Price
 (per equivalent
 thousand cubic feet) $1.32 $1.55 -15
 Average gas pr?
 (per thousands cubic feet) $1.10 $1.22 -10
 Average oil price (per barrel) $18.17 $19.16 - 5
 BALANCE SHEET DATA
 (In thousands, except percent change data)
 June 30, Dec. 31,
 1992 1991 Change(pct.)
 Total Assets 102,174 102,107 0
 Long-term debt 33,000 32,000 3
 Stockholders' equity 53,968 53,015 - 2
 Common shares outstanding
 at end of period 8,697 8,693 0
 Preferred shares outstanding
 at end of period 1,670 1,670 0
 -0- 8/13/92 R
 /CONTACT: Marian J. Moon, Manager-Corporate Communication, Devon Energy Corp., 405-235-3611; or Lynne Franklin of FRB/Chicago, 312-266-7800; or Kathy Phelan of FRB/New York, 212-661-8030 both for Devon Energy/
 (DVN) CO: Devon Energy Corp. ST: Oklahoma IN: OIL SU: ERN


DC -- NY054 -- 9764 08/13/92 17:37 EDT
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Date:Aug 13, 1992
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