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ENRON OIL & GAS REPORTS NET INCOME INCREASE FOR 1993 THIRD QUARTER BEFORE NON-CASH CHARGE DUE TO CORPORATE TAX RATE CHANGE

 HOUSTON, Oct. 14 /PRNewswire/ -- Enron Oil & Gas Company (EOG) (NYSE: EOG) today reported a 108 percent increase in net income to $42.8 million for the third quarter of 1993, or $.53 per share, exclusive of a predominantly non-cash charge to income of $7.0 million, or $.09 per share, primarily to adjust EOG's accumulated deferred tax liability for the increase in the corporate federal income tax rate from 34 percent to 35 percent. Net income after the one-time charge was $35.8 million or $.45 per share. EOG reported net income in the third quarter of 1992 of $20.6 million, or $.27 per share.
 Net operating revenues were $141.1 million in the third quarter of 1993 compared to $111.9 million a year ago.
 EOG's wellhead natural gas volumes increased by 28 percent, averaging 703 million cubic feet per day (MMcf/d) in the third quarter of 1993, compared to 548 MMcf/d a year ago.
 "We continue to be very pleased with our performance in 1993 and are looking forward to another successful year in 1994," said Forrest E. Hoglund, chairman, president and CEO of EOG. "The company's very strong third quarter in 1993 reflects higher wellhead natural gas prices and volumes, a pretax gain of $11.5 million primarily associated with the sale of certain West Texas properties and increased realization of tight gas sand federal income tax credits."
 Wellhead natural gas prices increased 19 percent, averaging $1.92 per thousand cubic feet (Mcf) in the third quarter of 1993 compared to $1.61 per Mcf a year ago. Wellhead crude oil and condensate sales prices, however, were down 16 percent, averaging $15.94 per barrel during the third quarter of 1993 versus $19.02 per barrel in the third quarter of 1992.
 During the third quarter of 1993, EOG's net income continued to benefit from tight gas sand federal income tax credit utilization of $21.4 million versus $6.4 million in the third quarter of 1992. Tight gas sand production averaged approximately 290 MMcf/d and 230 MMcf/d during the third quarter of 1993 and 1992, respectively.
 Discretionary cash flow increased to $170.4 million in the third quarter of 1993 compared to $74.9 million a year ago. Discretionary cash flow in the third quarter of 1993 includes $50.2 million associated with a federal income tax refund related to the settlement of prior year tax returns. The refund had no effect on current quarter net income.
 For the first nine months of 1993, EOG reported an 85 percent net income increase to $106.5 million, or $1.33 per share, exclusive of the predominantly non-cash charge to income of $7.0 million, or $.09 per share, related to the increase in the federal income tax rate referenced earlier.
 Net income after the one-time charge was $99.5 million, or $1.24 per share. The amounts compare to net income of $57.5 million, or $.75 per share for the same period a year ago. Net operating revenues to date totaled $418.4 million compared to $310.9 million in 1992.
 Discretionary cash flow for the first nine months of 1993 totaled $380.0 million, including the tax refund benefit referenced earlier, versus $208.3 million in 1992.
 Enron Oil & Gas Company is one of the largest independent (non- integrated) oil and gas companies in the United States in terms of domestic proved reserves. The company's reserve base is 85 percent domestic and 94 percent natural gas. EOG is listed on the New York Stock Exchange and is traded under the ticker symbol, "EOG."
 -0- 10/14/93
 /CONTACT: Diane Bazelides of Enron Corp., 713-853-6285/
 (EOG)


CO: Enron Oil & Gas Company ST: Texas IN: OIL SU: ERN

SH -- NY011 -- 2021 10/14/93 08:36 EDT
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Publication:PR Newswire
Date:Oct 14, 1993
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