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PATRICK PETROLEUM COMPANY REPORTS FINANCIAL RESULTS FOR 1991; HAD A GOOD EXPLORATION YEAR

 PATRICK PETROLEUM COMPANY REPORTS FINANCIAL RESULTS FOR 1991;
 HAD A GOOD EXPLORATION YEAR
 JACKSON, Mich., March 30 /PRNewswire/ -- Patrick Petroleum Company (NYSE: PPC) today reported that sharply lower oil and gas prices and a non-cash writedown of its oil and gas properties resulted in a net loss for the fourth quarter and for the year ended Dec. 31, 1991. President U.E. (Pat) Patrick also reported that due to successful drilling and acquisitions in 1991, the company added proved reserves equivalent to 183 percent of its annual production last year, resulting in the highest level of proved reserves since 1983.
 The company reported a net loss of $6.5 million, or $.53 a share, after a $3 million writedown of oil and gas properties caused by lower prices, on approximately 12.2 million shares. This compares with a year-ago net loss of $12.4 million, or $1.02 a share, on approximately 12.2 million shares. The 1990 net loss was due to a $12.8 million reduction in the carrying value of undeveloped leases and producing properties.
 Commenting on the writedown, Mr. Patrick stated, "The company reduced the carrying value of its oil and gas properties in accordance with the full cost ceiling limitation prescribed by the Securities and Exchange Commission. Had prices remained at the previous year's level, we would not have taken the charge to earnings."
 Total revenues for the year were $11.4 million compared to $15.0 million in 1990. Oil and gas revenues were $10.6 million compared to $13.3 million in 1990. This reflects a decrease of $855,300 as a direct result of lower prices and $1.8 million due to production declines resulting from property sales, production curtailments and workover activities. Other income decreased to $115,923 from $889,868 due primarily to the collection of previously written-off accounts in 1990. Net cash flow provided by operating activities was $3.3 million ($.27 a share) and $2.8 million ($.23 a share) in 1991 and 1990, respectively.
 Total expenses before the writedown of oil and gas properties were $14.9 million vs. $14.6 million a year ago. Depletion, depreciation and amortization expense increased to $6.2 million from $5.4 million in 1990. The depletion expense increased as a result of lower prices, a downward revision in the proved reserve estimates of several properties, and additions to the full cost pool. Lease operating costs decreased more than $430,000 to $2,033,372 reflecting the sale of non-strategic properties in 1991 and the settlement of disputed lease operating costs recorded last year.
 The fourth-quarter net loss was $5.2 million, or $.43 a share, on revenues of $2.7 million. This compares with a year-ago net loss of $12.8 million, or $1.05 a share, on revenues of $4.7 million. The results of both 1991 and 1990 fourth quarters reflect the writedowns.
 The company added proved reserves equivalent to almost double its annual production in 1991 primarily through exploration in Michigan and North Dakota. The company also completed two small acquisitions of producing properties, adding approximately 1.5 billion cubic feet (Bcf) of natural gas and 113,000 barrels of oil for a total purchase price of $1.83 million. At year-end 1991, the company reported its highest reserve levels since 1983. Total proved reserves were 1.1 million barrels of oil and 30.4 Bcf of natural gas, or 6.2 million equivalent barrels using a conversion ratio of six Mcf of gas to one barrel of oil. This represents an 11.5-percent increase compared to 5.5 million equivalent barrels at Dec. 31, 1990.
 "Last year we adjusted the mix and focus of our exploration program," said Mr. Patrick, "which has already generated positive results as indicated by the amount of reserves we replaced during the year. While our exploration program continues to gain momentum, the anticipated higher production levels have not yet impacted our financial statements. We expect 1992 revenue and cash flow to increase substantially as a result of these exploration and acquisition activities, with higher levels anticipated in 1993 when an even greater impact is reflected."
 "Our energy-related investments in Penske Corporation and Marcum Natural Gas Services, Inc. have both made positive contributions already in 1992. In March 1992, Patrick received a $478,000 dividend from our equity investments in Penske which will be included in the first-quarter results. Marcum completed its initial public offering in February 1992, and Patrick now owns 26 percent of its NASDAQ-traded shares. We believe these investments will provide significant returns in the form of cash dividends and capital appreciation," Mr. Patrick stated.
 The company's average wellhead gas price declined 8 percent to $1.67 per Mcf in 1991 from $1.82 per Mcf in 1990. Its average oil price fell 7 percent to $20.44 per barrel in 1991 from $22 per barrel the previous year. "Last year natural gas represented approximately 67 percent of our annual production," Mr. Patrick stated. "Consequently, we were affected by low gas prices more than many other companies. Looking ahead, I do not believe gas prices will improve much this year. However, low gas prices should not prevent us from reporting significant growth in revenues and cash flow in 1992 and beyond as we begin to realize the impact of our exploration successes."
 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 13 states, including various interests in approximately 444 oil and gas wells located primarily in Michigan, North Dakota, Texas, Oklahoma and Louisiana.
 PATRICK PETROLEUM COMPANY AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Year Ended Dec. 31,
 1991 1990
 Revenues:
 Oil and gas sales $10,549,959 $13,266,868
 Interest and dividend income 773,086 972,399
 Gain (loss) on sale of assets (717) (113,333)
 Other income 115,923 889,868
 $11,438,251 $15,015,802
 Expenses:
 Production taxes $807,644 $922,675
 Lease operating costs 2,033,372 2,463,822
 Depletion, depreciation and amortization 6,193,734 5,414,399
 General and administrative 2,410,511 2,359,738
 Interest 3,352,403 3,479,687
 Writedown of oil and gas properties 3,000,000 12,800,000
 Equity in loss of affiliate 126,604 ---
 $17,924,268 $27,440,321
 Net earnings (loss) ($6,486,017) ($12,424,519)
 Net earnings (loss) per common share ($.53) ($1.02)
 Weighted average shares outstanding 12,201,187 12,199,770
 -0- 3/30/92
 /CONTACT: Phillip J. McAndrews of Patrick Petroleum Company, 517-787-6633; or Woody Wallace of Investor Relations Company, 708-564-5610, for Patrick Petroleum Company/
 (PPC) CO: Patrick Petroleum Company ST: Michigan IN: OIL SU: ERN


JG-SM -- DE017 -- 3027 03/30/92 16:04 EST
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Date:Mar 30, 1992
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