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LOMAK EARNINGS INCREASE

 FORT WORTH, Texas, Nov. 2 /PRNewswire/ -- Lomak Petroleum, Inc. (NASDAQ: LOMK) today announced sharply higher results for the quarter ended Sept. 30, 1993. Revenues totaled $5 million, an increase of 35 percent over the prior year period. Cash flow from operations rose 48 percent to $1.6 million. The company reported net income of $397,000, a 108 percent increase over 1992 results. Net income per share rose 83 percent to $.05. These results were achieved despite a 20 percent decrease in oil prices. Total assets at September 30th reached $41.3 million, an increase of 46 percent since year end.
 The quarter's results reflected a 62 percent increase in production volumes. Production rose to 90,000 barrels of oil and 714,000 Mcf of gas. This equates to 2,300 barrels of oil equivalents ("BOE") per day. Production increases were partially offset by lower product prices. The average price of oil was $15.52 per barrel versus $19.48 in 1992, a 20 percent decrease. Gas prices fell 3 percent to $2.22 per Mcf. On a BOE basis, the price declined 10 percent to $14.25. General and administration expenses as a percentage of revenues was reduced to less than 10 percent compared to over 13 percent for the prior year period which contributed to higher earnings.
 The company's acquisition and development activities continue to expand. During the first nine months of 1993, nearly $12 million of acquisitions were completed. Additionally, the $26 million purchase of Mark Resources Corporation is proceeding toward a closing scheduled for early December. Terms are also being negotiated regarding the potential purchase of two properties in Texas for a total consideration of $8 million. The company's development activities continue to be encouraging. Via recompletions and infill drilling, production from the two largest Texas fields has increased from less than 300 BOE per day to over 800 BOE per day. The Rose Run gas drilling in Ohio has shown considerable promise. To date in 1993, the company has participated in eleven wells of which seven were productive, three were dry and one is awaiting completion. Development expenditures are estimated to total $3 million in 1993 and expand to $10 - $12 million in 1994.
 Lomak Petroleum, Inc. is engaged in the acquisition, development and exploitation of oil and gas properties and provides field services ancillary to the oil industry.
 LOMAK PETROLEUM, INC.
 SUMMARY FINANCIAL INFORMATION
 (In thousands, except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Revenues $5,014 $3,724 $13,785 $9,928
 Operating expenses (2,683) (1,899) (7,329) (4,908)
 Gross margin 2,331 1,825 6,456 5,020
 General and administrative
 expenses (500) (490) (1,540) (1,405)
 Interest (250) (236) (786) (734)
 Minority interest --- 3 (3) 18
 Income before DD&A and
 taxes 1,581 1,102 4,127 2,899
 Depletion, depreciation and
 amortization (1,158) (858) (3,072) (2,276)
 Income before taxes 423 244 1,055 623
 Income taxes (26) (53) (72) (140)
 Net income $ 397 $ 191 $ 983 $ 483
 Net income to common shares $ 302 $ 125 $ 748 $ 256
 Earnings per common share $ .05 $ .03 $ .14 $ .05
 Weighted average shares
 outstanding 6,270 4,734 5,595 4,707
 -0- 11/2/93
 /CONTACT: C. R. Michaels, vice chairman, 216-877-6747, or John H. Pinkerton, president, 817-870-2601, both of Lomak Petroleum, Inc./
 (LOMK)


CO: Lomak Petroleum, Inc. ST: Texas, Ohio IN: OIL SU: ERN

BM-AR -- CL012 -- 9627 11/02/93 11:56 EST
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Publication:PR Newswire
Date:Nov 2, 1993
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