Printer Friendly

GENERAL ATLANTIC RESOURCES REPORTS STRONG SECOND QUARTER RESULTS AND CONCLUSION OF INITIAL PUBLIC OFFERING

 DENVER, Aug. 23 /PRNewswire/ -- General Atlantic Resources Inc. (GARI) (NASDAQ: GARI) today reported strong increases in financial and operating results for the quarter and six months ended June 30, 1993. This is the company's first earnings release since completion of an initial public offering of common stock in July 1993.
 Second quarter 1993 net income rose sixfold to $1,266,000 on revenues of $9,093,000, compared to $179,000 on revenues of $5,106,000 for the 1992 quarter. Cash flow from operations in the second quarter of 1993 more than doubled to $4,783,000, compared to $2,133,000 in the prior year period.
 Pro forma earnings per share for the quarter ended June 30, 1993 were 15 cents, based on pro forma weighted average common and common equivalent shares outstanding of 8,330,000. The pro forma weighted average shares amount gives effect to 1,538,000 of the shares issued in the initial public offering, the proceeds of which were used to repay $18.6 million of notes payable to shareholders that had been distributed as a dividend.
 GARI's second quarter oil and gas production increased 81 percent over the prior year second quarter on a BOE basis. Oil production was up 29 percent to 246,000 barrels and gas production was up 132 percent to 2.75 bcf for the quarter, as the result of approximately $35 million of property acquisitions closed during the last three fiscal quarters, and two Gulf of Mexico exploratory discoveries brought on production in late 1992 and early 1993, respectively.
 The company's average gas price increased to $1.68 per Mcf in the 1993 quarter compared to $1 in last year's quarter. Gas price hedging had a 22 cent per Mcf negative impact on the company's average sales price for the 1993 second quarter and a 9 cent per Mcf negative impact for the 1992 period. The average oil price realized in the second quarter of 1993 was $16.66 per barrel versus $19.36 for the prior year's quarter. The decline was due to lower market prices for crude oil in the 1993 period, and hedging gains of 42 cents per barrel in the second quarter of 1992.
 For the first six months of 1993, oil and gas sales rose 62 percent over the comparable 1992 period to $16,024,000. Net income for the half was $2,675,000, compared to $346,000 for the like period in the prior year before inclusion in 1992 of a one-time credit in the amount of $1,726,000 for the cumulative effect of a change in accounting principle related to income taxes. Cash flow from operations for the first half of 1993 was $9,066,000, a 130 percent increase compared to $3,934,000 for the first six months of 1992. Pro forma earnings per share for the first half of 1993 were 33 cents, on pro forma weighted average common and common equivalent shares outstanding of 8,206,000, inclusive of 1,538,000 shares issued after the period end as noted above.
 General Atlantic's initial public offering, which was managed by Lehman Brothers and Petrie Parkman & Co., was priced on July 15, 1993 at $13 per share. The offering was comprised of 3,350,000 primary shares and an overallotment option of 500,000 secondary shares. Net proceeds of $40.5 million from the primary offering were used to reduce bank debt and to repay $18.6 million of notes payable to shareholders. Following the offering, the company's outstanding shares of common stock totaled 10.0 million. The company's stock, which trades on NASDAQ under the symbol "GARI," closed Aug. 20, 1993 at $16.375 per share.
 GARI is an independent oil and gas operating company that acquires, develops and exploits producing oil and gas properties, and explores for oil and gas reserves. The company's oil and gas properties and prospects are located in major producing basins in the western United States, offshore in the Gulf of Mexico and in western Canada. The company conducts substantially all of its oil and gas activities in conjunction with a select group of institutional and corporate investors that participate in the company's acquisition, development and exploration programs, providing the company with certain carried interests and management fees.
 According to Don Wolf, chairman and chief executive officer, "GARI has performed well for its shareholders and institutional partners during a difficult decade for the oil and gas industry by pursuing a well-conceived strategy, controlling costs and paying attention to execution. As a result of our recent public offering, we have further increased the company's financial strength, positioning us to continue our growth of reserves and earnings."
 GENERAL ATLANTIC RESOURCES INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)
 (Unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenues
 Oil and gas sales $8,735 $4,901 $16,024 $9,899
 Interest and other 358 205 534 494
 9,093 5,106 16,558 10,393
 Costs and expenses
 Production taxes 610 375 1,101 713
 Lease operating 2,066 1,283 3,424 2,831
 Depreciation, depletion
 and amortization 2,967 1,887 5,337 3,677
 General and
 administrative 718 792 1,311 1,665
 Loss on foreign
 currency exchanges 29 25 8 112
 Interest and other 725 498 1,183 902
 7,115 4,860 12,364 9,900
 Income before income
 taxes and cumulative
 effect of change in
 accounting principle 1,978 246 4,194 493
 Provision for income
 taxes (712) (67) (1,519) (147)
 Income before cumulative
 effect of change in
 accounting principle 1,266 179 2,675 346
 Cumulative effect of
 change in accounting
 principle --- --- --- 1,726
 Net income $1,266 $179 $2,675 $2,072
 Pro forma net income
 per common and common
 equivalent share $.15 --- $.33 ---
 Pro forma weighted average
 common and common
 equivalent shares
 outstanding 8,330 --- 8,206 ---
 OPERATIONAL DATA
 Average price
 Oil (per Bbl) $16.66 $19.36 $16.68 $18.18
 Gas (per Mcf) $1.68 $1.00 $1.70 $1.15
 Production
 Oil (MBbls) 246 192 458 373
 Gas (MMcf) 2,754 1,188 4,928 2,708
 Selected expenses
 (per Bbl of oil equiv.)
 Lease operating $2.93 $3.29 $2.68 $3.43
 Depreciation, depletion
 and amortization $4.21 $4.84 $4.17 $4.46
 General and
 administrative $1.02 $2.03 $1.02 $2.02
 -0- 8/23/93
 /CONTACT: Michael P. Dowling, Neil L. Stenbuck or Wayne W. Williamson, 303-573-5100, all of General Atlantic Resources/
 (GARI)


CO: General Atlantic Resources Inc. ST: Colorado IN: OIL SU: ERN

MC -- DV001 -- 4930 08/23/93 09:02 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 23, 1993
Words:1120
Previous Article:DR. ASAD M. MADNI NAMED PRESIDENT OF BEI MOTION SYSTEMS COMPANY, A SUBSIDIARY OF BEI ELECTRONICS, INC.
Next Article:WESTERN WATER CO. REPORTS FIRST QUARTER RESULTS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters