Printer Friendly

PATRICK PETROLEUM COMPANY REPORTS SECOND-QUARTER RESULTS

 PATRICK PETROLEUM COMPANY REPORTS SECOND-QUARTER RESULTS
 JACKSON, Mich., Aug. 12 /PRNewswire/ -- Patrick Petroleum Company


(NYSE: PPC) today reported second-quarter results and that it is offering its ownership in Penske Corporation for sale.
 In announcing second-quarter results, U.E. Patrick, president, noted that continuing low gas prices impacted oil and gas revenues. At the same time, production increases from exploration activities are expected to have a material impact beginning in 1993, later than the company had previously anticipated.
 Revenue for the quarter amounted to $2,729,006 vs. $2,981,928 in the year-ago quarter. Expenses during the same period were $3,536,513 compared to $3,753,605 in the 1991 period.
 The net loss amounted to $844,536, or 7 cents a share, in the quarter compared with a net loss of $771,677, or 6 cents a share, in the year-ago quarter. There were 12,453,175 weighted average shares outstanding in this year's quarter vs. 12,201,187 last year.
 Production of natural gas increased 4 percent in the quarter to 761,200 Mcf (thousand cubic feet) from 733,900 Mcf a year ago while oil production declined 9 percent to 63,968 barrels from 70,438 barrels in 1991. The average prices received during the current quarter were $19.81 per barrel and $1.63 per Mcf compared to $19.95 and $1.60, respectively, in 1991.
 The six-month net loss was $812,758, or 7 cents a share, on total revenues of $5,937,849. This compares with year-ago net loss of $667,449, or 5 cents a share on total revenues of $6,169,991. Net cash flow used in operating activities was $833,948 for the six months ended June 30, 1992, compared to net cash flow provided by operating activities of $953,364 during the 1991 period.
 Six-month gas production rose 4 percent to 1,594,418 Mcf from 1,526,216 Mcf a year ago while oil production declined 14 percent to 120,525 barrels from 141,056 barrels in 1991. The average prices received during the current six-month period were $18.84 per barrel and $1.55 per Mcf, compared to $19.98 and $1.70, respectively, in 1991.
 The company also reported that is has a 22-percent working interest in the recently completed Federal No. 2-1 well located in Divide County, N.D. This infill development well was completed in the Rival formation with an initial production rate of 120 barrels of oil and 150 Mcf of gas per day.
 The company noted two events expected to have an offsetting effect on reserve levels this year. The State Garfield No. 1-7 in Kalkaska County, Mich., in which Patrick Petroleum owns an 85-percent working interest, was recently declared dry and plugged this month. The company's year-end 1991 reserve report included this well as a proved undeveloped location with net proved reserves of 8.6 billion cubic feet. This quantity of reserves will be eliminated in future appraisals.
 As earlier reported, Patrick owns about a 1-percent working interest in the Marathon-operated No. 1-32 Huff well located in the Boundary Prospect, Kalkaska County. The No. 1-32 Huff has tested 2.77 million cubic feet of gas and 250 barrels of condensate per day from a lower Prairie du Chien interval. The company owns an 84-percent working interest in the direct north offset development location. The year-end 1991 reserve report does not include any reserves for this proved undeveloped location, which the company believes will offset the reserve reduction from the State Garfield No. 1-7 dry hole.
 Patrick also reported that is has retained an investment banking firm to sell its ownership in Penske Corporation and Penske Transportation, Inc., in a private placement.
 "Proceeds from the sale will be used to repay the company's subordinated collateralized notes which are secured by the Penske investments and to reduce bank debt," Mr. Patrick stated. "If the Penske stock is sold as anticipated, the company will save $2.2 million annually in interest expense on the subordinated notes alone," he said.
 "With abundant opportunities in oil and gas today, it makes sense for us to monetize this investment and put the proceeds back into our primary oil and gas businesses," Mr. Patrick stated. "The pay down of debt will give Patrick added financial flexibility to continue to build our oil and gas assets."
 Penske Corporation is a privately owned diversified transportation entity with interests in truck leasing and rental, heavy-duty diesel engine manufacturing, automotive retailing and racing.
 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 528 oil and gas wells located primarily in Michigan, North Dakota, Texas, Oklahoma and Louisiana.
 PATRICK PETROLEUM COMPANY AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF NET EARNINGS
 (Unaudited)
 Six Months Ended Three Months Ended
 June 30, June 30,
 1992 1991 1992 1991
 REVENUES:
 Oil and gas sales $5,287,611 $5,547,111 $2,615,606 $2,654,373
 Interest and
 dividend income 548,887 569,147 42,420 302,572
 Gain (loss) on sale
 of investments (5,470) 499 (7,055) (96)
 Other income 106,821 53,234 78,035 25,079
 $5,937,849 $6,169,991 $2,729,006 $2,981,928
 EXPENSES:
 Production taxes $339,789 $422,204 $186,559 $224,097
 Lease operating costs 934,208 747,146 499,884 421,536
 Depletion, depreciation
 and amortization 2,786,236 2,871,524 1,487,011 1,629,385
 General and
 administrative 1,089,005 1,129,414 596,330 633,694
 Interest 1,523,222 1,667,152 766,729 844,893
 $6,672,460 $6,837,440 $3,536,513 $3,753,605
 LOSS BEFORE EQUITY IN
 LOSS OF AFFILIATE ($734,611) ($667,449) ($807,507) ($771,677)
 Equity in loss of
 affiliate (78,147) --- (37,029) ---
 NET LOSS ($812,758) ($667,449) ($844,536) ($771,677)
 NET LOSS PER
 COMMON SHARE ($.07) ($.05) ($.07) ($.06)
 WEIGHTED AVERAGE
 SHARES OUTSTANDING 12,330,186 12,201,187 12,453,175 12,201,187
 -0- 8/12/92
 /CONTACT: Phillip J. McAndrews of Patrick Petroleum, 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


KR -- DE020 -- 6341 08/12/92 16:18 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 12, 1992
Words:1068
Previous Article:EDISTO ANNOUNCES DECISION NOT TO MAKE INTEREST PAYMENT ON 13-7/8 PERCENT SENIOR NOTES OF ITS NRM ENERGY SUBSIDIARY
Next Article:YUBA WESTGOLD SAYS PRINCIPAL SHAREHOLDER HAS TERMINATED FURTHER FUNDING OF YUBA'S CASH REQUIREMENTS
Topics:


Related Articles
PATRICK PETROLEUM REPORTS THIRD-QUARTER, NINE-MONTHS RESULTS
PATRICK PETROLEUM COMPANY REPORTS FINANCIAL RESULTS FOR 1991; HAD A GOOD EXPLORATION YEAR
PATRICK PETROLEUM COMPANY ANNOUNCES FIRST-QUARTER RESULTS; REPORTS SUCCESSFUL WELL IN TEXAS
PATRICK PETROLEUM REPORTS THIRD-QUARTER RESULTS
PATRICK PETROLEUM REPORTS SECOND-QUARTER RESULTS; ANPC MERGER TO BOOST THIRD QUARTER
PATRICK PETROLEUM REPORTS SECOND QUARTER RESULTS
PATRICK PETROLEUM REPORTS FIRST QUARTER RESULTS
PATRICK PETROLEUM REPORTS SECOND QUARTER RESULTS
/C O R R E C T I O N -- GOODRICH PETROLEUM CORPORATION/
Goodrich Petroleum Announces Second Quarter 1996 Results, Comments on Drilling Program

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters