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MITCHELL ENERGY REPORTS 16 PERCENT THIRD-QUARTER EARNINGS GAIN

 THE WOODLANDS, Texas, Nov. 30 ~PRNewswire~ -- Mitchell Energy & Development Corp.'s (NYSE: MND) third-quarter earnings rose 16 percent over those of the same period last year to $16.3 million, or 35 cents per share, the company reported today. Revenues for the quarter, which ended Oct. 31, amounted to $250.7 million.
 In the comparable period a year ago, the company earned $14.1 million, or 30 cents per share, on revenues of $222.2 million.
 George P. Mitchell, chairman and president, attributed the third- quarter gains primarily to improved operating earnings from the Exploration and Production Division and to reduced charges for interest and state income taxes. The division's operating earnings benefited from higher gas sales volumes and spot-market prices, and from operating cost reductions achieved as a result of its first-quarter restructuring.
 Transmission and Processing Division operating earnings were about flat with those of the prior-year period, Mitchell said. The division largely offset increased natural gas liquids production costs and lower average prices with higher volumes and improved results from its gas gathering and transmission segment. The gas liquids volume gains resulted from the acquisition, with Conoco, of interests in 13 gas processing plants from Oryx Energy. Despite the gains, Mitchell noted, the company's gas liquids production continues to be constrained by inadequate product pipeline capacity in certain areas, and additional volumes are anticipated when the pipeline capacity problems are alleviated.
 Real Estate Division operating earnings were lower in the third quarter mainly because of last year's sale of a half interest in several apartment properties, Mitchell said. Residential lot sales at The Woodlands, the company's principal development, were ahead both in units and average price through the nine-month period, he added, and the community continues to lead the Houston region in new home sales and starts.
 As previously reported, the charges associated with the Exploration and Production Division restructuring, together with an extraordinary charge related to the refinancing of $250 million of debt, decreased after-tax first-quarter earnings by $21.1 million. While the company expects to recoup these charges within two years, their current-year impact reduced nine-months earnings to $10.1 million, or 22 cents per share, on revenues of $651.9 million. Earnings in the first nine months of the prior year amounted to $31.2 million, or 67 cents per share, on revenues of $618.2 million.
 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 New York and Pacific stock exchanges under the symbols MNDA and MNDB.
 MITCHELL ENERGY & DEVELOPMENT CORP.
 (Unaudited)
 Three months ended Oct. 31 1992 1991
 Revenues $250,712,000 $222,168,000
 Net earnings 16,326,000 14,071,000
 Per share earnings $.35 $.30
 Average common shares outstanding 46,835,000 46,859,000
 Nine months ended Oct. 31 1992 1991
 Revenues $651,944,000 $618,206,000
 Earnings before extraordinary item 17,397,000 31,192,000
 Net earnings 10,146,000 31,192,000
 Per share earnings:
 Before extraordinary item $.37 $.67
 Net earnings .22 .67
 Average common shares outstanding 46,876,000 46,840,000
 Supplemental Financial and Operational Data
 (Unaudited; in thousands)
 Periods ended Oct. 31 Three Months Nine Months
 1992 1991 1992 1991
 Segment Operating
 Earnings:
 Oil and gas $14,354 $12,430 $30,504 $29,914
 Contract drilling (189) (547) (974) (1,561)
 Oil field supply -- 20 (289) 62
 Total 14,165 11,903 29,241 28,415
 Restructuring charges -- -- (20,726) --
 Total exploration
 and production 14,165 11,903 8,515 28,415
 Gas processing 19,526 20,107 43,401 46,139
 Gas gathering
 and transmission 6,222 5,846 20,630 18,026
 Other 408 734 1,746 2,188
 Total transmission
 and processing 26,156 26,687 65,777 66,353
 Real estate 5,026 7,007 16,441 19,912
 Total Segment
 Operating earnings 45,347 45,597 90,733 114,680
 General and
 admin. expense 9,914 9,707 30,208 29,385
 Total oper. earnings 35,433 35,890 60,525 85,295
 Other expense:
 interest expense 18,838 20,922 56,425 61,639
 Capitalized interest (9,318) (9,690) (27,288) (29,508)
 Other, net 1,827 1,410 5,634 4,823
 Total 11,347 12,642 34,771 36,954
 Earnings before
 income taxes
 and extraord. item 24,086 23,248 25,754 48,341
 Income taxes 7,760 9,177 8,357 17,149
 Earnings before
 extraordinary item 16,326 14,071 17,397 31,192
 Extraordinary item --
 loss from early
 retirement of debt -- -- (7,251) --
 Net earnings $16,326 $14,071 $10,146 $31,192
 Energy Operating
 Statistics(A)
 Average Daily Volumes:
 Natural gas
 sales (Mcf) 158,500 153,300 145,500 155,600
 Crude oil, condensate
 sales (Bbls) 5,400 5,300 5,700 5,300
 Natural gas liquids
 produced (Bbls) 51,300 43,800 45,400 43,200
 Pipeline throughput
 (Mcf) 589,000 595,000 578,000 583,000
 Average Sales Prices
 (dollars):
 Natural gas (per Mcf) $2.92 $2.78 $2.80 $2.71
 Crude oil, condensate
 (per Bbl) 19.76 20.67 18.90 19.25
 Natural gas liquids
 produced (per Bbl) 14.58 15.08 13.47 13.31
 Cash Provided By
 Operating Activities:
 Net earnings before
 extraordinary item $16,326 $14,071 $17,397 $31,192
 Adjustments to reconcile
 net earnings before
 extraordinary item
 to cash from operating
 activities:
 Depreciation,
 depletion and
 amortization 30,829 31,872 101,142 94,623
 Deferred inc. taxes 916 6,016 1,141 8,948
 Cost of land sold 6,541 5,843 20,643 30,282
 Land development
 expenditures, net of
 reimbursements (9,705) (6,743) (11,703) (12,193)
 Undistributed
 partnership
 earnings (4,371) (3,650) (10,326) (9,590)
 Amortization of
 deferred contract
 restructuring
 proceeds (5,171) (8,543) (15,589) (20,577)
 Other (1,333) 7 4,329 (1,192)
 Total 34,032 38,873 107,034 121,493
 Changes in operating
 assets & liabilities 6,247 15,320 1,105 (35,997)
 Total $40,279 $54,193 $108,139 $ 85,496
 Capital Additions
 (accrual basis):
 Exploration and
 Production $20,382 $21,785 $ 54,669 $ 68,664
 Transmission and
 Processing 21,243 12,629 60,362 37,766
 Real Estate 25,471 23,515 57,883 51,798
 Corporate 913 566 2,349 3,446
 Total $68,009 $58,495 $175,263 $161,674
 Depreciation, Depletion
 and Amortization:
 Exploration and
 Production $22,762 $24,359 $ 67,693 $ 71,087
 Restructuring charges -- -- 8,713 --
 Transmission and
 Processing 5,581 5,056 17,343 16,178
 Real Estate 1,806 1,811 5,345 5,440
 Corporate 680 646 2,048 1,918
 Total $30,829 $31,872 $101,142 $ 94,623
 Selected Balance Sheet
 Data at Oct. 31, 1992
 Stockholders' equity $632,493
 Long-term debt 970,392
 (A) -- Amounts include proportional interests in equity partnerships.
 -0- 11~30~92
 ~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

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Date:Nov 30, 1992
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