EASTEX REPORTS THIRD QUARTER 1992 EARNINGS
EASTEX REPORTS THIRD QUARTER 1992 EARNINGS HOUSTON, Oct. 28 /PRNewswire/ -- Eastex Energy Inc.
(NASDAQ-NMS: ETEX) ("Eastex") today reported unaudited net income of $533,000 or $0.11 per common share on revenues of $45.5 million for the quarter ended Sept. 30, 1992 as compared to unaudited net income of $447,000 or $0.10 per common share on revenues of $28.2 million for the quarter ended Sept. 30, 1991. For the nine months ended Sept. 30, 1992, the company earned unaudited net income of $1,245,000 or $0.26 per common share on revenues of $113.8 million as compared to unaudited net income of $761,000 or $0.18 per common share on revenues of $96.1 million for the same period last year. Commenting on these results, Robert G. Phillips, president and chief executive officer, stated, "Despite natural gas supply disruptions and price volatility caused by Hurricane Andrew, Eastex posted a 19 percent increase in net income and a 20 percent increase in sales volumes during the recent quarter as compared to the same quarter last year. Additionally, we have increased the number of firm/term supply and sales contracts and have hedged profit margins in the futures market through the winter of 1992/93."
Natural gas prices rose dramatically during the third quarter, due in part to a shortfall in seasonal storage inventories and supply curtailments from Hurricane Andrew. Eastex's average sales price during the third quarter of 1992 was $1.79 per Mmbtu as compared to $1.32 per Mmbtu in the same period last year, while sales volumes increased to 25.5 Bcf (277 Mmcf/d) in the recent quarter from 21.3 Bcf (232 Mmcf/d) in the third quarter of 1991. Gross profits contributed by the company's firm/term contract sales and storage activities were 65 percent of total gross profits for the three months ended Sept. 30, 1992. Phillips further stated, "In the third quarter of 1992, market factors such as increased demand, historically low rig activity, lower than expected storage inventory levels, supply interruptions in the Gulf of Mexico and anticipation of pipeline restructuring filings under Order 636 pushed natural gas prices to new highs and caused extreme volatility. Eastex protected its sales margins through the use of futures contracts and its own storage gas. During the quarter, the company announced its Energy Services Management Strategy for wholesale customer services in the post Order 636 environment and increased its bank credit facility to $7.5 million." EASTEX ENERGY INC. Selected Financial and Operating Information (000's omitted, except per share amounts) Sept. 30, Dec. 31, 1992 1991 (unaudited) Balance Sheet Data: Total assets $50,514 $42,661 Property and equipment, net 14,908 15,152 Long-term debt, less current maturities 5,496 5,740 Stockholders' equity 14,900 13,940 Three Months Ended Nine Months Ended Sept. 30, Sept. 30, 1992 1991 1992 1991 (unaudited) (unaudited) Income Statement Data: Operating revenues $45,522 $28,161 $113,811 $96,061 Gross profit 2,133 2,126 5,560 4,779 Net income 533 447 1,245 761 Primary earnings per share 0.11 0.10 0.26 0.18 Primary average common stock and common stock equivalents outstanding 4,812 4,344 4,724 4,338 Net throughput (Mmcf) 25,500 21,300 70,900 66,900 Eastex Energy Inc., through its subsidiaries, is involved in the marketing, storage, gathering and transportation of natural gas. -0- 10/28/92 /CONTACT: Robert G. Phillips, president and CEO of Eastex Energy Inc., 713-650-6255/ (ETEX) CO: Eastex Energy Inc. ST: Texas IN: OIL SU: ERN
AH -- NY071 -- 5991 10/28/92 12:25 EST
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|Date:||Oct 28, 1992|
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