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EDISTO RESOURCES REPORTS SECOND QUARTER RESULTS

    DALLAS, Aug. 13 /PRNewswire/ -- Edisto Resources Corporation (AMEX: EDS) today announced a net loss of $64.7 million, or a $45.80 per share loss on revenues of $103.4 million for the second quarter of 1993, versus a net loss of $10.9 million, or a $10.06 per share on revenues of $85.6 million for the same quarter of the previous year.  Edisto's $64.7 million loss for the six months ended June 30, 1993 is primarily due to reorganization items of $68 million.  The reorganization items, primarily non-cash charges, are due to the revaluation of the Company's assets pursuant to fresh start reporting upon emergence from bankruptcy and the expenses associated with the restructuring.  Net cash provided by operations for the three months ended June 30, 1993 was $11 million, versus net cash provided by operations of $6.6 million for the second quarter of the previous year.
    Net loss for the six months ended June 30, 1993 was $66.2 million, or a $49.09 per share loss on revenues of $212.3 million, compared with a net loss of $28.3 million, or a $27.06 per share loss after preferred dividends, on revenues of $174.2 million for the six months ended June 30, 1992.  Edisto's $66.2 million loss for the six months ended June 30, 1993 is primarily due to reorganization items of $69.9 million.  The reorganization items, primarily non-cash charges, are due to the revaluation of the Company's assets pursuant to fresh start reporting upon emergence from bankruptcy and the expenses associated with the restructuring.  Net cash provided by operations was $27.7 million for the six months ended June 30, 1993 versus $12.9 million for the same period of the prior year.
    Oil and gas production revenue increased approximately $1.6 million or 9 percent for the quarter ended June 30, 1993 compared to the same period in 1992.  Average gas prices were 30 percent higher at $2.13 per Mcf during the second quarter of 1993, compared to $1.64 per Mcf in 1992.  Average oil prices decreased 9 percent from $19.58 per Bbl in 1992 to $17.86 per Bbl in 1993.  Gas production remained relatively constant.
    Oil and gas production revenue increased approximately $1.1 million or 3 percent for the six months ended June 30, 1993 compared to the same period in 1992.  Average gas prices were 36 percent higher at $2.02 per Mcf in 1993, compared to $1.49 per Mcf in 1992.  Average oil prices decreased 4 percent from $18.43 per Bbl in 1992 to $17.67 per Bbl in 1993.  Gas production decreased 15 percent for the 1993 period as compared to 1992.
    Gas marketing revenue increased during the second quarter of 1993 by $15.5 million (23.1 percent) while associated gas purchases increased by $15.1 million (23.1 percent).  Gross gas marketing income increased slightly during the second quarter of 1993 compared to the same period in 1992.  The margin on gas sold, computed on an average Mcf per day increased from $.03 to $.05.
    Gas marketing revenue increased during the first six months of 1993 by $35.1 million (25.6 percent) while associated gas purchases increased by $34.7 million (26 percent).  Gross gas marketing income increased slightly during the first six months of 1993 compared to the same period in 1992.  The margin on gas sold computed on an average Mcf per day increased $.01 per Mcf to $.05 per Mcf.
    Gas transmission revenue increased during the second quarter of 1993 as compared to the same period in 1992 by approximately $.8 million (61.7 percent), while daily average volumes transported remained relatively constant.  The increased revenues reflect income from the management of the natural gas distribution system at Fort Leonard Wood. Approximately 13.7 MMcf per day was transported through the gas gathering systems during the second quarter of 1993, compared to 25.4 MMcf per day in the second quarter of 1992.  The 46 percent decline in gas gathering volumes is due primarily to the depletion of the properties served by the systems.
    Gas transmission revenue increased during the first six months of 1993 as compared to the same period in 1992 by approximately $1.8 million (73 percent).  During 1993, approximately 55.1 MMcf per day was transported through ESCO's pipeline facilities, compared to approximately 45.8 MMcf per day in 1992.  The increases in transmission revenue and volumes are primarily due to the completion of the 124 mile pipeline expansion into southwest Missouri during the last quarter of 1992 and the associated conversion of the facilities at Fort Leonard Wood.  Approximately 15.4 MMcf per day was transported through the gas gathering systems during the first six months of 1993, compared to 26.8 MMcf per day in the first six months of 1992.  The 43 percent decline in gas gathering volumes is due primarily to the depletion of the properties served by the systems.
    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             Six Months
    Periods ended June 30      1993        1992       1993       1992
    Revenues                 $103,412   $ 85,578    $212,282   $174,242
    Operating income (loss)  $  3,626   $ (3,894)   $  5,386   $(11,440)
    Loss from continuing
     operations              $(69,642)  $(10,949)   $(71,188)  $(22,788)
    Loss from discontinued
     operations              $ (6,537)  $    --     $ (6,537)  $ (5,377)
    Extraordinary item -
     Gain on extinguishment
     of debt                 $ 11,508   $    --     $ 11,508   $    --
    Net loss                 $(64,671)  $(10,949)   $(62,217)  $(28,165)
    Net loss attributable
     to common               $(64,671)  $(10,949)   $(62,217)  $(28,300)
    Net loss per share
     attributable to common  $ (45.80)  $ (10.06)   $ (49.09)  $ (27.06)
    Average common
     shares outstanding         1,412      1,088       1,349      1,046
    Condensed Balance Sheets
   (Unaudited, in thousands)
                                       6/30/93        12/31/92
    Current assets                  $   78,650        $104,911
    Net assets of discontinued
     operations                          4,618          10,641
    Property and equipment - net       133,456         183,996
    Investments and other assets        13,263          26,221
    Total assets                    $  229,987      $  325,769
    Current liabilities               $108,081        $117,429
    Long-term debt                      45,858          42,339
    Other noncurrent liabilities        15,558          14,743
    Prepetition liabilities subject to
     compromise                             --         112,726
    Prepetition liabilities not subject
     to compromise                          --          13,046
    Stockholders' equity                60,490          25,486
    Total liabilities and
     stockholders' equity            $ 229,987      $  325,769
                      EDISTO RESOURCES CORPORATION
                             Operating Data
                       (Unaudited, in thousands)
                                 Three Months            Six Months
    Periods ended June 30       1993       1992        1993       1992
    Exploration and Production:
     Revenue (in thousands)
    Oil                       $ 3,626    $ 4,896      $ 7,775    $10,247
    Gas                        15,508     12,669       27,644     24,089
    Total                     $19,134    $17,565      $35,419    $34,336
    Production
    Oil (MBbls)                   203        250          440        556
    Gas (MMcf)                  7,294      7,746       13,708     16,133
    Average sales price
    Oil (per Bbl)              $17.86     $19.58       $17.67     $18.43
    Gas (per Mcf)              $ 2.13     $ 1.64       $ 2.02     $ 1.49
    Average expenses per
     equivalent Bbl
    Production costs            $ .61     $  .43       $  .56     $  .44
    Depreciation and depletion  $ .78     $ 1.29       $  .85     $ 1.36
    Gas marketing:
    Sales margin (in thousands)
    Gas revenue               $82,195    $66,724     $172,514   $137,391
    Gas purchases              80,444     65,337      168,519    133,769
    Gross margin              $ 1,751    $ 1,387     $  3,995   $  3,622
    Volume sold (MMcf)         35,963     44,759       80,453     92,123
    Average prices
     ($ per Mcf)
    Sales price               $  2.29     $ 1.49       $ 2.14    $ 1.49
    Purchase price               2.24       1.46         2.09      1.45
    Margin                    $   .05     $  .03       $  .05    $  .04
    Gas Transmission:
     Revenue (in thousands)   $ 2,084     $1,289       $4,349    $2,515
    Average daily volumes
     (MMcf)
    Gas pipeline                 44.6       44.9         55.1      45.8
    Gas gathering systems        13.7       25.4         15.4      26.8
    Pipeline throughput
     (MMcf)
    Third parties                  16        462          192     1,004
    Affiliated companies        3,978      3,631        9,774     7,334
    Total                       3,994      4,093        9,966     8,338
    -0-             08/13/93
    CONTACT:  Gary L. Pittman, vice president - financial services of Edisto Resources Corporation, 214-880-0243
    (EDS) CO:  EDISTO RESOURCES CORPORATION IN:  OIL SU:  ERN ST:  TX


-- NY036 -- X613 08/13/93
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Date:Aug 13, 1993
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