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PATRICK PETROLEUM ANNOUNCES PROFITABLE THIRD QUARTER

 JACKSON, Mich., Nov. 15 /PRNewswire/ -- Patrick Petroleum Company (NYSE: PPC) today reported net earnings for the third quarter and nine months ended
Sept. 30, 1993. Gains from the partial sale of the company's investment in Marcum Natural Gas Services, Inc. led to profitability during the period. The results include the combined operations of Patrick and two months of American National Petroleum Company (ANPC) from July 29, 1993, the effective date of the merger transaction.
 Patrick reported net income for the third quarter of $4,524,137, or $.23 a common share, on total revenues of $8,583,392. This compares to a net loss of $945,216, or $.08 a share, on revenues of $2,598,671 for the same ped? of 1992. The 1993 results include a gain of $4,841,355 from the sale of stock in Marcum Natural Gas Services, Inc. There were 19.8 million weighted average shares outstanding in the current quarter vs. 12.5 million shares outstanding a year ago. The increased number of shares outstanding resulted from the merger transaction with ANPC.
 For the nine months, net income was $1,712,021, or $.11 a share, on total revenues of $12,966,771. This compares to a net loss of $1,757,974, or $.14 a share, on revenues of $8,536,520 for the 1992 period. The 1993 results include the gain from the sale of Marcum stock previously discussed. There were 15.2 million weighted average shares outstanding for the first nine months of 1993 compared to 12.4 million in the prior year period.
 Revenues from oil and gas sales were $2,349,053 in the 1993 quarter compared to $2,473,693 a year ago. Higher average natural gas prices were more than offset by lower crude oil prices and slight production declines.
 Interest and dividend income increased by $273,802, to $300,000 in the current quarter due to the receipt of $300,000 in dividends from the company's investment in Penske Corporation. Other income increased by $602,657 to $701,437 in the current quarter primarily the result of the company waiving its right of first refusal on 300,000 shares of Marcum stock for which it received 50,000 additional shares of Marcum valued at $450,000.
 Total expenses for the 1993 quarter were $3,911,525 compared to $3,431,795 a year ago representing a higher level of activity resulting from the merger with American National Petroleum Company.
 "The fourth quarter will be the first to fully reflect the benefits of the merger with ANPC," President U.E. Patrick stated. "The merger has reversed a trend of natural production declines associated with the company's existing wells. The properties acquired from ANPC are forecast to produce 30,000 barrels of oil and 367,000 Mcf (thousand cubic feet) of natural gas in the fourth quarter. This is in addition to 35,000 barrels of oil and 460,000 Mcf the company expects to produce from its existing wells."
 Third quarter oil production was 55,090 barrels compared to 58,193 barrels in the 1992 period. The average wellhead price of oil was $16.21 per barrel vs. $20.53 per barrel last year. Natural gas production during the current quarter was 659,269 Mcf compared to 680,038 Mcf in 1992. The average price increased to $2.09 per Mcf from $1.60 per Mcf in 1992.
 Nine month oil production was 157,088 barrels vs. 178,718 barrels produced in 1992. The nine month average wellhead price was $17.42 per barrel compared to $19.39 per barrel last year. Natural gas production was 1,770,767 Mcf in 1993 vs. 2,274,456 Mcf a year ago. The average nine month gas price was $2.09 per Mcf for 1993 compared to $1.60 last year.
 Discretionary cash flow (cash flow from operating activities before changes in working capital) was $117,499 for the first nine months of 1993 compared to $1,947,734 during the 1992 period. At Sept. 30, 1993, the company had working capital of $4.0 million, a current ratio of 1.44 to 1.0 and stockholders' equity of $41,725,642.
 Penske Corporation recently completed its initial public offering of 4.75 million common shares of Detroit Diesel Corporation (NYSE: DDC). Penske Transportation, Inc. (PTI), a unit of Penske Corporation, owns 11,900,000 shares of Detroit Diesel stock. Patrick Petroleum owns approximately 1.7 percent of PTI and 9.4 perco?f Penske Corporation which in turn owns about 72 percent of PTI. Patrick is currently evaluating various alternatives regarding its holdings in the Penske entities in light of Patrick's previously announced plans to monetize this investment.
 Patrick Petroleum Company is an independent exploration and production company listed on the New York Stock Exchange since 1976. The company has interests in producing properties and undeveloped acreage in 14 states, including various interests in approximately 1,015 oil and gas wells located primarily in Michigan, North Dakot, Texas, Oklahoma and Louisiana.
 PATRICK PETROLEUM COMPANY AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF NET EARNINGS
 (Unaudited)
 Nine Months Ended
 Sept. 30,
 REVENUES: 1993 1992
 Oil and gas sales $6,619,719 $7,761,304
 Interest and dividend income 341,812 575,085
 Gain on sale of investments 5,219,519 (5,470)
 Other income 785,721 205,601
 $12,966,771 $8,536,520
 EXPENSES:
 Production taxes $428,951 507,027
 Lease operating costs 1,743,885 1,458,425
 Depletion, depreciation and amortization 3,987,303 4,042,087
 General and administrative 1,886,049 1,770,938
 Interest 2,238,868 2,325,778
 Writedown of oil and gas properties 550,000 ---
 $10,835,056 $10,104,255
 EARNINGS (LOSS) BEFORE EQUITY IN LOSS OF
 AFFILIATE AND TAXES ON INCOME $2,131,715 ($1,567,735)
 Equity in loss of affiliate (419,694) (190,239)
 NET EARNINGS (LOSS) BEFORE TAXES ON INCOME $1,712,021 $1,757,974
 Taxes on income:
 Current tax expense $582,000 ---
 Deferred tax (benefit) utilization of
 net operating loss carryforwards (582,000) ---
 0 ---
 NET EARNINGS (LOSS) $1,712,021 ($1,757,974)
 NET EARNINGS (LOSS) PER SHARE $.11 ($.14)
 Weighted average shares outstanding 15,216,773 12,401,408
 Three Months Ended
 Sept. 30,
 REVENUES: 1993 1992
 Oil and gas sales $2,349,053 $2,473,693
 Interest and dividend income 300,000 26,198
 Gain on sale of investments 5,232,902 ---
 Other income 701,437 98,780
 $8,583,392 $2,598,671
 EXPENSES:
 Production taxes $168,549 $167,238
 Lease operating costs 775,166 524,217
 Depletion, depreciation and amortization 1,350,146 1,255,851
 General and administrative 821,706 681,933
 Interest 795,958 802,556
 Writedown of oil and gas properties --- ---
 $3,911,525 $3,431,795
 EARNINGS (LOSS) BEFORE EQUITY IN LOSS OF
 AFFILIATE AND TAXES ON INCOME $4,671,867 ($833,124)
 Equity in loss of affiliate (147,730) (112,092)
 NET EARNINGS (LOSS) BEFORE TAXES ON INCOME $4,524,137 ($945,216)
 Taxes on income:
 Current tax expense $1,538,000 ---
 Deferred tax (benefit) utilization of
 net operating loss carryforwards (1,538,000) ---
 0 ---
 NET EARNINGS (LOSS) $4,524,137 ($945,216)
 NET EARNINGS (LOSS) PER SHARE $.23 ($.08)
 Weighted average shares outstanding 19,766,573 12,501,853
 -0- 11/15/93
 /CONTACT: Phillip J. McAndrews of Patrick Petroleum Company, 517-787-6633; or Woody Wallace of the Investor Relations Company, 708-564-5610, for Patrick Petroleum/
 (PPC)


CO: Patrick Petroleum Company ST: Michigan IN: OIL SU: ERN

KE-SM -- DE017 -- 4373 11/15/93 11:40 EST
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Date:Nov 15, 1993
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