KEY REPORTS SECOND QUARTER EARNINGS
KEY REPORTS SECOND QUARTER EARNINGS HOUSTON, July 21 /PRNewswire/ -- Key Production Co. Inc.
(NASDAQ: KPCI) today announced second quarter net income of $44,000 compared to $346,000 during the like period last year. Earnings per share broke even versus 3 cents during the second quarter of 1991. Cash from operations totaled $2.1 million compared to $2.6 million a year ago. The 1992 second quarter results were impacted by lower gas production and a 12 percent decrease in Key's average oil price from last year's corresponding quarter.
For the first six months of 1992, Key reported a loss of $129,000, or 1 cent per share, compared to last year's earnings of $1.8 million, or 15 cents per share. Cash from operations totaled $3.7 million in the first half versus $6.8 million in the 1991 period. Key applied its cash flow and working capital to fund the semi-annual dividend of $1.6 million, repurchase 369,000 shares of its common stock for $1.2 million, and reduce debt by $1.2 million to $4.6 million at the close of the quarter. Due to natural depletion, gas production for the second quarter of 1992 fell to 1.8 billion cubic feet (Bcf) and oil production was at 94,718 barrels, versus 2.3 Bcf and 99,250 barrels during last year's quarter. Key's average gas price of $1.64 per thousand cubic feet (Mcf), versus 1991's second quarter price of $1.53 per Mcf, reflected a significant improvement from the historically low spot market prices witnessed earlier in the year. The price of oil dropped to $17.07 per barrel from the previous year's $19.37 which benefitted from hedging positions taken during the Persian Gulf War. Key Production is an independent natural gas and oil production company. Common stock shares of Key trade on the NASDAQ system (symbol KPCI). KEY PRODUCTION CO. INC. SUMMARY FINANCIAL INFORMATION (In thousands, except per share data) For the Quarter For the Six Months Ended June 30, Ended June 30, FINANCIAL DATA 1992 1991 1992 1991 Revenues $ 4,517 $ 5,566 $ 8,642 $ 12,930 Net Income $ 44 $ 346 $ (129) $ 1,781 Income per Common Share .00 $ .03 $ (.01) $ .15 Weighted Average Shares of Common Stock Outstanding 10,437 11,427 10,605 11,528 PRODUCTION AND PRICING DATA Natural Gas Production - (MMcf) 1,752 2,299 3,407 4,652 Average Price per Mcf $ 1.64 $ 1.53 $ 1.62 $ 1.60 Oil and Condensate Production - (thousand barrels) 95 99 185 204 Average Price per Barrel $ 17.07 $ 19.37 $ 16.19 $ 19.74 -0- 7/21/92 /CONTACT: Jeanne Buchanan of Key Production, 713-296-6156/ (KPCI) CO: Key Production Co. Inc. ST: Texas IN: OIL SU: ERN
MC -- DV007 -- 1541 07/21/92 17:01 EDT
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|Date:||Jul 21, 1992|
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