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MITCHELL EARNINGS UP 20 PERCENT IN SECOND QUARTER

 MITCHELL EARNINGS UP 20 PERCENT IN SECOND QUARTER
 THE WOODLANDS, Texas, Sept. 3 /PRNewswire/ -- Mitchell Energy &


Development Corp. (NYSE: MNDA, MNDB) today reported its second-quarter net earnings rose 20 percent over those of the prior-year period to $9.5 million, or 20 cents per share. Revenues for the quarter, which ended July 31, amounted to $214.9 million.
 In the same period last year, the company earned $7.9 million, or 17 cents per share, on revenues of $197.9 million.
 Chairman and President George P. Mitchell attributed the second- quarter gains primarily to increased prices and production of oil and condensate, along with improved pipeline earnings. The higher pipeline earnings were principally from an East Central Texas gas gathering and processing joint venture in which the company increased its ownership during last year's fourth quarter.
 Mitchell noted that the company's energy operations did not receive full benefit in the second quarter of recent improvements in natural gas and natural gas liquids prices. If sustained, these gains, along with the contribution of recently acquired additional natural gas liquids production capacity, will be more apparent in subsequent periods, he said.
 Real estate operating earnings declined in the second quarter, primarily because of gains in last year's second quarter on sales of a large number of resort lots during the grand opening of a Galveston beachfront development, Mitchell said. A substantial commercial property sale in The Woodlands during the prior-year period also contributed to the decrease, he noted. The company's principal development project, The Woodlands, continues to lead the Houston metropolitan area in home sales by a wide margin, he added.
 As previously reported, the company posted a net loss of $15.7 million, or 33 cents per share, in the first quarter of the current year after restructuring and extraordinary charges which reduced net earnings by $21.l million. As a result, it experienced a six-months loss of $6.2 million, or 13 cents per share, on revenues of $401.2 million. In the comparable year- earlier period, earnings amounted to $17.1 million, or 37 cents per share, on revenues of $396 million.
 The first-quarter charges, which involved a downsizing of the company's Exploration and Production Division and the refinancing of long-term debt at improved rates, are expected to be recouped in approximately two years.
 Mitchell Energy & Development Corp. is a large independent energy producer and is a major real estate developer in the Houston region. Its shares are listed on the New York and Pacific stock exchanges.
 MITCHELL ENERGY & DEVELOPMENT CORP.
 Unaudited Highlights
 Three months ended July 31 1992 1991
 Revenues $214,911,000 $197,920,000
 Net earnings $9,484,000 $7,903,000
 Per share earnings 20 cents(A) 17 cents
 Average common shares outstanding 46,888,000(A) 46,833,000
 Six months ended July 31 1992 1991
 Revenues $401,232,000 $396,038,000
 Earnings before extraordinary item $1,071,000 $17,121,000
 Net earnings (loss) ($6,180,000) $17,121,000
 Per share earnings
 Before extraordinary item 2 cents(A) 37 cents
 Net earnings (loss) (13 cents)(A) 37 cents
 Average common shares outstanding 46,897,000(A) 46,830,000
 (A) Calculations include both Class A and Class B shares effective with reclassification of the company's common stock on June 24, 1992.
 MITCHELL ENERGY & DEVELOPMENT CORP.
 Supplemental Financial and Operational Data
 (In thousands - Unaudited)
 Periods ended Three Months Six Months
 July 31 1992 1991 1992 1991
 Segment Operating Earnings
 Oil and gas $ 9,707 $ 7,850 $16,150 $ 17,484
 Contract drilling (160) (576) (785) (1,014)
 Oil field supply (208) (56) (289) 42
 Total 9,339 7,218 15,076 16,512
 Restructuring charges -- -- (20,726) --
 Total Exploration and
 Production 9,339 7,218 (5,650) 16,512
 Gas processing 11,949 11,431 23,875 26,032
 Gas gathering and
 transmission 7,603 6,305 14,408 12,180
 Other 708 620 1,338 1,454
 Total Transmission and
 Processing 20,260 18,356 39,621 39,666
 Real Estate 6,442 7,352 11,415 12,905
 Total Segment Operating
 Earnings 36,041 32,926 45,386 69,083
 General and administrative
 expense 10,212 9,630 20,294 19,678
 Total Operating Earnings 25,829 23,296 25,092 49,405
 Other Expense
 Interest expense 18,045 20,490 37,587 40,717
 Capitalized interest (8,606) (10,029) (17,970) (19,818)
 Other, net 1,821 1,709 3,807 3,413
 Total 11,260 12,170 23,424 24,312
 Earnings Before Income Taxes
 and Extraordinary Item 14,569 11,126 1,668 25,093
 Income Taxes 5,085 3,223 597 7,972
 Earnings Before Extraordinary
 Item 9,484 7,903 1,071 17,121
 Extraordinary Item--Loss from
 Early Retirement of Debt -- -- (7,251) --
 Net Earnings (Loss) $ 9,484 $ 7,903 $(6,180) $17,121
 Energy Operating Statistics(A)
 Average Daily Volumes
 Natural gas sales (Mcf) 144,400 146,000 138,900 156,700
 Crude oil, condensate
 sales (Bbls) 5,900 5,200 5,900 5,400
 Natural gas liquids
 produced (Bbls) 41,100(B) 41,900 42,400(B) 43,000
 Pipeline throughput
 (Mcf) 563,000 604,000 573,000 577,000
 Average Sales Prices (dollars)
 Natural gas (per Mcf) $ 2.69 $ 2.71 $ 2.73 $ 2.68
 Crude oil, condensate
 (per Bbl) 19.57 18.39 18.50 18.53
 Natural gas liquids
 produced (per Bbl) 13.72 12.10 12.79 12.40
 (A) Amounts include proportional interests in equity partnerships.
 (B) The reported three-and six-month amounts exclude volumes processed at a third-party plant of 2,300 and 1,600 barrels per day, most of which would have been processed at company-owned plants absent product pipeline curtailments caused by an April 1992 explosion at an unaffiliated NGL storage facility.
 MITCHELL ENERGY & DEVELOPMENT CORP.
 Supplemental Financial and Operational Data
 (In thousands -- Unaudited)
 Periods ended Three Months Six Months
 July 31 1992 1991 1992 1991
 Cash Provided By Operating
 Activities
 Net earnings before
 extraordinary item $ 9,484 $ 7,903 $ 1,071 $17,121
 Adjustments to reconcile net
 earnings before extraordinary
 item to cash from operating
 activities
 Depreciation, depletion and
 amortization 30,829 31,364 70,313 62,751
 Deferred income taxes 566 511 225 2,932
 Cost of land sold 6,965 11,123 14,102 24,439
 Land development expenditures,
 net of reimbursements (1,530) (4,509) (1,998) (5,450)
 Undistributed partnership
 earnings (2,548) (3,394) (5,955) (5,940)
 Amortization of deferred
 contract restructuring
 proceeds (5,146) (5,979) (10,418) (12,034)
 Other 4,194 1,522 5,662 (1,199)
 Total 42,814 38,541 73,002 82,620
 Changes in operating assets and
 liabilities (9,222) (32,006) (5,142) (51,317)
 Total $33,592 $ 6,535 $67,860 $ 31,303
 Capital Additions (accrual basis)
 Exploration and Production $12,269 $28,666 $ 34,287 $ 46,879
 Transmission and Processing 17,919 10,348 39,119 25,137
 Real Estate 16,752 20,964 32,412 28,283
 Corporate 1,039 2,166 1,436 2,880
 Total $47,979 $62,144 $107,254 $103,179
 Depreciation, Depletion and Amortization
 Exploration and Production $22,613 $23,090 $ 44,931 $ 46,728
 Restructuring charges -- -- 8,713 --
 Transmission and Processing 5,688 5,830 11,762 11,122
 Real Estate 1,819 1,798 3,539 3,629
 Corporate 709 646 1,368 1,272
 Total $30,829 $31,364 $70,313 $ 62,751
 MITCHELL ENERGY & DEVELOPMENT CORP.
 Selected Balance Sheet Data at July 31, 1992
 Stockholders' equity $620,790
 Long-term debt 962,304
 -0- 9/3/92
 /CONTACT: Charles Simpson or Tony Lentini of Mitchell Energy & Development Corp., 713-377-5650/
 (MND) CO: Mitchell Energy & Development Corp. ST: Texas IN: OIL SU: ERN


SM -- NY064 -- 6450 09/03/92 13:08 EDT
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