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 SAN FRANCISCO, Aug. 11 /PRNewswire/ -- HS Resources, Inc. (NASDAQ-NMS: HSRS) today reported its results for the second quarter of 1993 and all measures of financial performance have increased significantly.
 Net earnings nearly tripled to $2,940,843 compared to $1,013,739 in the prior year period. Oil and gas revenues increased 83 percent to $12,391,140 from $6,773,965. Earnings per share increased 80 percent to $.28 in 1993 from $.16 for the same period last year and reflects an increase of 65 percent in the weighted average number of shares outstanding as a result of the company's initial public offering of 3,600,000 shares of common stock in November 1992. Cash flow from operations more than doubled to $8,616,862 versus $4,185,095 for the prior year period. Cash flow per share increased to $.81 in the 1993 period from $.65 in the prior year period, after giving effect to the larger number of shares outstanding in 1993.
 During the quarter HSRS maintained its Wattenberg Development Project on schedule. Drilling operations commenced on 49 new wells, bringing the total for 1993 to 123, without a dry hole. Also, during the second quarter 69 wells were brought on line. According to HSRS's Vice-President of Operations, Ron Jacobs, "Not only were we able to meet the aggressive drilling schedule laid out in our annual engineering, but we are actually a little bit ahead of schedule." As a result, production volumes increased 63 percent on a BOE basis compared to the prior year quarter. Net daily production during the quarter averaged 2,638 barrels of oil and 42,132 Mcf of gas, or 9,660 BOE per day. Reflecting the company's operating efficiencies and strong cash flow from its production, HSRS has realized operating cash flow of $10.32 per BOE in 1993.
 While the company's primary focus, the Wattenberg Development Project, proceeded as planned, the company also made significant progress in implementing its intermediate and long-term objectives. The acquisition of Energy Minerals, Inc. helps meet the company's intermediate objective of expanding its activities in the Denver- Julesberg Basin by adding more than 6,500,000 barrels of oil equivalent to the company's reserves base as well as 38,000 net undeveloped acres strategically located near the company's existing operations. Looking to the longer-term, HSRS has assembled large acreage blocks in two areas outside the Denver-Julesberg Basin. Leasing activities are ongoing, seismic surveys will be conducted in both areas during the third quarter, and initial wells will be drilled prior to the end of the year. Total capital expenditures in establishing the two positions has been approximately $2 million.
 During the second quarter HSRS restructured its credit facility with The Chase Manhattan Bank, N.A. The $50 million facility was increased to $75 million, and Wells Fargo Bank, N.A., Midland Bank plc and Bank of Montreal were added to the bank syndicate group.
 HS Resources, Inc., based in San Francisco, is one of the most active independent oil and gas operators in the Wattenberg Field area of the Denver-Julesberg Basin in Colorado. At June 30, 1993, the company owned interests in more than 600 producing wells, the majority of which were operated by the company. Its common stock is traded on the NASDAQ National Market System under the symbol HSRS.
 Income Statement
 (Unaudited -- In thousands, except per share data)
 Periods Ended Quarter Six Months
 June 30 1993 1992 1993 1992
 Oil and gas revenues $12,391 $6,774 $22,505 $11,084
 Operating costs & expenses:
 Production taxes 1,193 559 2,040 920
 Production expenses 1,163 601 2,183 1,201
 Depreciation, depletion & amort. 3,866 2,547 6,820 4,255
 General & administrative, net 799 434 1,304 982
 Total 7,021 4,141 12,347 7,358
 Operating income 5,370 2,633 10,158 3,726
 Other income (expense):
 Interest expense (635) (1,028) (1,051) (1,938)
 Other income 16 32 39 92
 Total (619) (996) (1,012) (1,846)
 Net income before taxes 4,751 1,637 9,146 1,880
 Income tax provision (1,810) (623) (3,484) (716)
 Net income 2,941 1,014 5,662 1,164
 Operating cash flow 8,617 4,184 15,966 6,135
 Net income per fully diluted
 common share $.28 $.16 $.53 $.18
 Operating cash flow per fully
 diluted common share $.81 $.65 $1.50 $.95
 Weighted average fully diluted
 common shares outstanding 10,647 6,439 10,654 6,439
 Production and pricing data
 Oil production (Mbarrels) 240 150 411 248
 Average price per barrel $17.30 $19.55 $17.63 $18.95
 Natural gas production (MMcf) 3,834 2,342 6,817 3,926
 Average price per Mcf $2.03 $1.62 $2.06 $1.62
 -0- 8/11/93R
 /CONTACT: James E. Duffy of HS Resources, Inc., 415-433-5795/

CO: HS Resources, Inc. ST: California IN: OIL SU: ERN

LG-PS -- NY011R -- 1672 08/11/93 12:06 EDT
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Publication:PR Newswire
Date:Aug 11, 1993

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