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MITCHELL EARNINGS DOWN FROM GULF WAR PEAK BUT HIGHER FOR NINE MONTHS OF CURRENT FISCAL YEAR

 MITCHELL EARNINGS DOWN FROM GULF WAR PEAK BUT HIGHER FOR
 NINE MONTHS OF CURRENT FISCAL YEAR
 THE WOODLANDS, Texas, Dec. 4 /PRNewswire/ -- Mitchell Energy & Development Corp. (AMEX: MND) today reported that its earnings increased in the first nine months of the current fiscal year but declined in the third quarter from the year-earlier level. Chairman and President George P. Mitchell noted that the prior year's third-quarter earnings were inflated by unusually high prices for natural gas liquids and oil during the Persian Gulf crisis.
 Net earnings for the three months ended Oct. 31, 1991, amounted to $14.1 million, or 30 cents per share, on revenues of $222.2 million. That compared with earnings of $17.9 million, or 38 cents per share, on revenues of $217.4 million in the third quarter of the prior year.
 Nine-months earnings totaled $31.2 million, or 67 cents per share, on revenues of $618.2 million. In the same period a year earlier, the company earned $29.7 million, or 63 cents per share, on revenues of $545 million.
 Mitchell said strong markets and good prices for ethane, propane and other natural gas liquids, along with the company's substantially increased production of these products, are helping to offset the effects of soft spot-market prices for natural gas and lower year-to- year realizations on oil. Improved operating earnings from the gas pipeline and real estate operations also contributed to the nine-months gains.
 Mitchell said third-quarter natural gas liquids prices averaged $15.08 per barrel, compared with $12.40 in the first half of the current year, and that the higher gas liquids realizations were largely responsible for the substantial third-quarter increase in earnings over the 20 cents and 17 cents per share earned in the two earlier quarters of the current year. In November, he added, gas liquids prices averaged upwards of $16.00 per barrel.
 The company's effective tax rate rose in the third quarter because of changes in Texas' franchise tax regulations enacted in August, Mitchell said, but the impact was partially offset by previously unrecognized deferred federal income tax credits. The net result was a third-quarter tax provision that was $1.6 million higher than it otherwise would have been.
 Mitchell Energy & Development Corp. is a large independent energy producer and is a major real estate developer in the Houston-Galveston region. Its shares are listed on the American and Pacific exchanges.
 MITCHELL ENERGY & DEVELOPMENT CORP.
 Unaudited Highlights
 Three months ended Oct. 31 1991 1990
 Revenues $222,168,000 $217,351,000
 Net earnings $ 14,071,000 $ 17,937,000
 Per share earnings 30 cents 38 cents
 Average common shares outstanding 46,859,000 46,966,000
 Nine Months Ended Oct. 31 1991 1990
 Revenues $618,206,000 $545,006,000
 Net earnings $ 31,192,000 $ 29,697,000
 Per share earnings 67 cents 63 cents
 Average common shares outstanding. 46,840,000 46,951,000
 Supplemental Financial and Operational Data
 (Unaudited)
 (In thousands)
 Periods ended Three Months Nine Months
 Oct. 31 1991 1990 1991 1990
 Segment Operating Earnings
 Oil and gas $12,430 $15,344 $29,914 $41,663
 Contract drilling (547) (607) (1,561) (1,906)
 Oil field supply 20 22 62 126
 Total Exploration and
 Production 11,903 14,759 28,415 39,883
 Gas processing 20,107 27,980 46,139 42,032
 Gas gathering and transmission 5,846 4,845 18,026 14,113
 Other 734 967 2,188 2,344
 Total Transmission and
 Processing 26,687 33,792 66,353 58,489
 Real Estate
 Operations 7,007 6,162 19,912 14,724
 Asset write-downs -- (5,000) -- (5,000)
 Total 7,007 1,162 19,912 9,724
 Total Segment Operating Earnings 45,597 49,713 114,680 108,096
 General and administrative exp. 9,707 10,118 29,385 27,981
 Total Operating Earnings 35,890 39,595 85,295 80,115
 Other Expense
 Interest expense 20,922 22,575 61,639 66,080
 Capitalized interest (9,690) (11,545) (29,508) (33,890)
 Other, net 1,410 1,387 4,823 2,929
 Total 12,642 12,417 36,954 35,119
 Earnings Before Income Taxes 23,248 27,178 48,341 44,996
 Income Taxes 9,177 9,241 17,149 15,299
 Net Earnings $14,071 $17,937 $31,192 $29,697
 Energy Operating Statistics(A)
 Average Daily Volumes
 Natural gas sales (Mcf) 153,300 148,300 155,600 143,300
 Crude oil, condensate
 sales (Bbls) 5,300 5,200 5,300 5,200
 Natural gas liquids
 produced (Bbls) 43,800 37,500 43,200 36,600
 Pipeline throughput (Mcf) 595,000 462,000 583,000 444,000
 Average Sales Prices (dollars)
 Natural gas (per Mcf) $ 2.78 $ 2.93 $ 2.71 $ 2.88
 Crude oil, condensate
 (per Bbl) 20.67 29.88 19.25 21.86
 Natural gas liquids produced
 (per Bbl) 15.08 18.27 13.31 12.96
 Cash Provided by Operating
 Activities
 Net earnings $14,071 $17,937 $ 31,192 $ 29,697
 Adjustments to reconcile net
 earnings to cash from
 operating activities
 Depreciation, depletion and
 amortization 31,872 29,673 94,623 83,914
 Deferred income taxes 6,016 8,011 8,948 13,534
 Real estate asset write-downs -- 5,000 -- 5,000
 Cost of land sold 5,843 5,994 30,282 16,040
 Land development expenditures,
 net of reimbursements (6,743) (7,034) (12,193) (14,312)
 Undistributed partnership
 earnings (3,650) (4,801) (9,590) (10,670)
 Amortization of deferred
 contract restructuring
 proceeds (8,543) (6,115) (20,577) (19,278)
 Other 7 1,465 (1,192) 2,928
 Total 38,873 50,130 121,493 106,853
 Changes in operating assets
 assets and liabilities 15,320 (2,014) (35,997) (24,966)
 Total $54,193 $48,116 $ 85,496 $ 81,887
 Capital Additions (accrual basis)
 Exploration and Production $21,785 $24,186 $ 68,664 $ 68,063
 Transmission and Processing 12,629 9,614 37,766 14,518
 Real Estate 23,515 30,501 51,798 71,865
 Corporate 566 1,661 3,446 4,258
 Total $58,495 $65,962 $161,674 $158,704
 Depreciation, Depletion and
 Amortization
 Exploration and Production $24,359 $20,274 $71,087 $60,152
 Transmission and Processing 5,056 7,042 16,178 16,951
 Real Estate 1,811 1,702 5,440 5,065
 Corporate 646 655 1,918 1,746
 Total $31,872 $29,673 $94,623 $83,914
 Selected Balance Sheet Data at
 Oct. 31, 1991
 Stockholders' equity $628,432 -- -- --
 Long-term debt 935,752 -- -- --
 (A) -- Including proportional interests in equity partnerships.
 -0- 12/4/91
 /CONTACT: Charles Simpson or Tony Lentini of Mitchell Energy & Development, 713-377-5650/
 (MND) CO: Mitchell Energy & Development Corp. ST: Texas IN: OIL SU: ERN


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