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EDISTO REPORTS FIRST QUARTER RESULTS

 EDISTO REPORTS FIRST QUARTER RESULTS
 DALLAS, May 19 /PRNewswire/ -- Edisto Resources Corporation


(AMEX: EDS) today reported operating revenues of $88.7 million for the three months ended March 31, 1992, compared with $96.8 million for the same period of the previous year. Net loss was $17.2 million, or a $0.86 per share loss after preferred dividends, compared with a loss of $3.9 million, or a $0.28 per share loss after preferred dividends, for the prior year three-month period. Net cash provided by operating activities for the three months ended March 31, 1992, was $6.3 million, versus net cash provided by operations in the same period of the previous year of $11.1 million. Net cash provided by operations before changes in operating assets and liabilities totaled $4.6 million for the three months ended March 31, 1992, versus $6.8 million for the same period of 1991.
 Oil and gas production revenue decreased by approximately $2.3 million (12%) in the three months ended March 31, 1992, as compared to the same period in 1991. This decrease is primarily attributable to: (i) a sharp decline of approximately 23% in the average gas sales price from $1.77/Mcf in the first quarter of 1991 to $1.36/Mcf in the first quarter of 1992, (ii) a decline of approximately 14 percent in the average oil price, from $20.27/Bbl in the first quarter of 1991 to $17.49/Bbl in the first quarter of 1992, and (iii) a decline in Edisto's gas production attributable to the sale of the Appalachian Basin properties in the second quarter of 1991. The decrease in oil and gas revenue was partially offset, however, by a 54 percent increase in oil production, primarily attributable to increased production on two offshore Gulf Coast properties, and a 7 percent increase in gas production (excluding amounts attributable to the Appalachian Basin properties) primarily attributable to increased production on certain Gulf Coast properties. In addition, Edisto recognized a non cash loss of approximately $5.4 million in connection with the anticipated sale of its 80 percent owned subsidiary, Multiflex International, Inc.
 Marketing and transmission activities are conducted through ESCO Energy, Inc., a wholly owned subsidiary acquired in August 1990. Gas marketing revenue recognized during the three months ended March 31, 1992 decreased by approximately $5.6 million, while associated gas purchases decreased by approximately $5.8 million, each as compared to the same period in 1991.
 Volumes sold during 1992 increased, in part as a result of certain geographical expansions of ESCO's gas marketing operations, including the expansion into the Gulf Coast area. The margin on gas sold (average per Mcf per day) remained constant at approximately $.05 per Mcf. The gas marketing operations experienced a gross profit margin of approximately 3 percent on revenues for each of the periods ended March 31, 1992 and 1991. Gas transmission revenue decreased during the three months ended March 31, 1992, as compared to the same period in 1991, by approximately $.1 million. During the first quarter of 1992, approximately 46.7 MMcf per day were transported through ESCO's gas pipeline facilities, as compared to approximately 49.6 MMcf per day transported through such facilities during the first quarter of 1991. Although ESCO's gas pipeline facilities had been expanded from March 1991 to March 1992, the daily volumes transported through ESCO's gas pipeline facilities decreased (by approximately 2.9 MMcf per day), primarily as a result of unseasonably warm winter months in the first quarter of 1992.
 Volumes of gas were transported on the pipeline facility at an average fee of approximately $.23 per Mcf and on the gas gathering systems at an average rate of $.15 per Mcf during the three months ended March 31, 1992 and 1991.
 Edisto Resources Corporation's consolidated activities include the production, exploration and development of oil and gas reserves and natural gas marketing and transportation operations.
 EDISTO RESOURCES CORPORATION
 Condensed Statements of Operations
 (unaudited, in thousands except per share data)
 Three Months Ended March 31,
 1992 1991
 Revenues $ 88,663 $ 96,752
 Operating loss $ ( 7,548) $ (2,757)
 Net loss $ (17,216) $ (3,949)
 Net loss attributable to common $ (17,351) $ (4,625)
 Net loss per share
 attributable to common $ (.86) $ (0.28)
 Weighted average common
 shares outstanding 20,093 16,336
 Condensed Balance Sheets
 (in thousands)
 March 31, 1992 December 31, 1991
 (Unaudited) (Audited)
 Current assets $ 102,572 $ 120,982
 Property and equipment - net 189,209 202,821
 Investments and other assets 33,248 35,719
 Total assets $ 325,029 $ 359,522
 Current liabilities $ 103,552 $ 114,665
 Long-term debt 154,027 163,865
 Other noncurrent liabilities 10,360 6,612
 Preferred stock 4,161 8,323
 Stockholders' equity 52,929 66,057
 Total liabilities and stockholders'
 equity $ 325,029 $ 359,522
 Three Months Ended
 March 31,
 1992 1991
 Operating Data:
 Exploration and Production:
 Revenue (in thousands)
 Oil $ 5,351 $ 4,033
 Gas 11,420 15,057
 Total $ 16,771 $ 19,090
 Production
 Oil (MBbls) 306 199
 Gas (MMcf) 8,387 8,495
 Average sales price
 Oil (per Bbl) $ 17.49 $ 20.27
 Gas (per Mcf) $ 1.36 $ 1.77
 Average expenses per
 equivalent Bbl
 Production costs $ 2.72 $ 3.14
 Depreciation and depletion $ 8.41 $ 7.38
 Gas marketing:
 Sales margin (in thousands)
 Gas revenue $ 70,667 $ 76,296
 Gas purchases 68,432 74,251
 Gross margin $ 2,235 $ 2,045
 Volume sold (MMcf) 47,364 46,093
 Average prices ($ per Mcf)
 Sales price $ 1.49 $ 1.66
 Purchase price 1.44 1.61
 Margin $ .05 $ .05
 Gas Transmission:
 Revenue (in thousands) $ 1,255 $ 1,366
 Average daily volumes (MMcf)
 Gas pipeline 46.7 49.6
 Gas gathering systems 28.3 29.4
 Pipeline throughput (MMcf)
 Third parties 542 765
 Affiliated companies 3,703 3,751
 Total 4,245 4,516
 -0- 5/19/92
 /CONTACT: Gary L. Pittman, vice president, financial services, of Edisto Resources, 214-880-0243/
 (EDS) CO: Edisto Resources Corporation ST: Texas IN: OIL SU: ERN


KD -- NY059 -- 1814 05/19/92 12:15 EDT
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