HONDO REPORTS THIRD QUARTER RESULTS
HONDO REPORTS THIRD QUARTER RESULTS ROSWELL, N.M., Aug. 13 /PRNewswire/ -- Hondo Oil & Gas Co.
(AMEX: HOG) today reported net income from continuing and discontinued operations of $14,035,000, or $1.08 per share, for the quarter ended June 30, 1992. This compares with a net loss of $19,055,000, or $1.47 per share, for the third quarter of fiscal 1991.
For the nine month period, a net loss was reported from continuing and discontinued operations of $35,168,000, or $2.70 per share, compared with a net loss of $22,426,000, or $1.73 per share, for the year-earlier nine months. The quarterly and nine month results include a $23,079,000 gain on substantially all of the company's U.S. oil and gas exploration and production assets. The nine-month results include a previously announced loss of $44,000,000 recorded on the valuation of the company's discontinued refining and marketing assets. The contract for the previously announced sale of the company's refining and marketing assets expired on July 31, 1992, following an extended investigation by the Federal Trade Commission in response to the parties' filings under the Hart-Scott-Rodino Antitrust Improvements Acts of 1976. The refinery is operating under a processing agreement with a third party, and the company expects to continue processing arrangements with third parties while seeking another sale. The company and BT Securities Corp., the company's financial advisor, have entered into preliminary discussions with prospective purchasers. Hondo Magdalena Oil & Gas Ltd., a wholly owned subsidiary, is proceeding with operations in Colombia, South America. The company is moving in equipment in preparation for a 10,000-foot test to the La Paz formation. The Lillia No. 9, a Mugrosa well, has been temporarily suspended while three prior Mugrosa wells, the Lillia Nos. 5, 6 and 7, are given extensive testing. Discussions are continuing with several interested parties for the joint development of the Opon Association Contract area. HONDO OIL & GAS CO. AND SUBSIDIARIES Financial Highlights (in thousands, except per share data) Three Months Ended Nine Months Ended June 30, June 30, 1992 1991 1992 1991 Revenues $36,810 $17,785 $69,171 $65,953 Costs and expenses 23,337 25,011 60,901 67,356 Income (loss) before income taxes 13,473 (7,226) 8,270 (1,403) Income tax expense (benefit) (562) (915) (562) 460 Income (loss) from continuing operations 14,035 (6,311) 8,832 (1,863) Loss from discontinued operations --- (12,744) (44,000) (20,563) Net income (loss) $14,035 ($19,055) ($35,168) ($22,426) Earnings (loss) per share: Continuing operations $1.08 ($0.48) $0.68 ($0.14) Discontinued operations --- (0.99) (3.38) (1.59) Net income (loss) $1.08 ($1.47) ($2.70) ($1.73) -0- 8/13/92 /CONTACT: C.B. McDaniel of Hondo Oil & Gas Co., 505-625-8700/ (HOG) CO: Hondo Oil & Gas Co. ST: New Mexico IN: OIL SU: ERN
TS-KJ -- LA009 -- 9465 08/13/92 08:45 EDT
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|Date:||Aug 13, 1992|
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