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PATRICK PETROLEUM REPORTS SECOND-QUARTER RESULTS; ANPC MERGER TO BOOST THIRD QUARTER

 JACKSON, Mich., Aug. 12 /PRNewswire/ -- Patrick Petroleum Company (NYSE: PPC) today reported a net loss for the second quarter ended June 30, 1993, of $1.6 million, or 13 cents a common share, on total revenues of $2.1 million, compared to a net loss of $844,536, or 7 cents a common share, on total revenues of $2.7 million in the second quarter of 1992. These numbers do not include the results of American National Petroleum Company (ANPC) which recorded second-quarter net income of $1.4 million on total revenues of $3.2 million. ANPC became a wholly owned subsidiary of Patrick effective July 29, 1993. Patrick's third- quarter results will include the combined operations of both companies.
 The second-quarter 1993 results include a $550,000 writedown of oil and gas properties caused by a drop of over $1.50 per barrel in oil prices and a net loss of $40,308 from the company's equity investment in Marcum Natural Gas Services, Inc. (NASDAQ: MGAS) vs. a net loss of $37,029 from Marcum in the 1992 period. There were 12.5 million weighted average shares outstanding for both quarters.
 Revenues from oil and gas sales were $2.1 million in the current quarter compared to $2.6 million the prior year. Higher average natural gas prices were more than offset by lower crude oil prices and production declines.
 "We expect a big jump in third-quarter production as a result of the ANPC merger," President U.E. Patrick said. "Since signing the letter of intent in January, ANPC has participated in 17 wells which are forecasted to produce more than 175 barrels of oil and 1,300 Mcf of gas per day net to the company. These wells are expected to add over $200,000 of revenue per month in addition to existing production," Mr. Patrick stated. "The most significant well is the Binger 'AKU' No. 1 located in New Mexico. ANPC has an 18.3-percent working interest in this well which is currently being tested at the rate of 1,377 barrels of oil and 1,725 Mcf of gas per day. Additional wells will be drilled on this prospect," Mr. Patrick said.
 For the six months, Patrick's net loss was $2.8 million, or 22 cents a common share, on total revenues of $4.4 million. In the comparable 1992 period, the net loss was $812,758, or 7 cents a common share, on total revenues of $5.9 million. The six-month numbers include a net loss from the company's equity investment in Marcum of $227,885 and $78,147 in the 1993 and 1992 periods, respectively. There were 12.5 million weighted average shares outstanding in the first half of 1993 compared to 12.3 million in the prior-year period.
 Net cash flow provided by operating activities was $361,387 for the current six months compared to net cash flow used in operating activities of $833,948 for the same period of 1992. At June 30, 1993, the company had working capital of $2.4 million, a current ratio of 1.8 to 1.0 and stockholders' equity of $22.1 million.
 During second-quarter 1993, the company produced 49,464 barrels of oil and 463,906 Mcf of natural gas at an average price of $18.12 per barrel and $2.41 per Mcf. This compares to 63,968 barrels of oil and 761,200 Mcf of natural gas produced last year at an average price of $19.81 per barrel and $1.63 per Mcf.
 Current six-month production was 101,998 barrels and 1,111,498 Mcf at an average price of $18.24 per barrel and $2.09 per Mcf vs. 120,525 barrels and 1,594,418 Mcf produced in the 1992 period at an average price of $18.84 per barrel and $1.55 per Mcf. Oil and gas production has declined in 1993 due primarily to increased water production from two fields in Louisiana and a sharp drop in production from a field in Michigan.
 Penske Corporation recently announced its plans to sell 4.75 million common shares of Detroit Diesel Corporation in a public offering. Detroit Diesel Corporation is currently owned 80 percent by Penske Transportation, Inc., a unit of Penske Corp., and 20 percent by General
Motors. Patrick owns approximately 9.4 percent of Penske Corp., and


1.7 percent of Penske Transportation, Inc. "It is currently unclear what effect, if any, this sale will have upon Patrick, however, it could help to establish a market value on this portion of our Penske investment," Mr. Patrick said.
 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 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,
 1993 1992 1993 1992
 Revenues:
 Oil and gas sales $4,270,666 $5,287,611 $2,090,126 $2,615,606
 Interest and dividend
 income 41,812 548,887 21,447 42,420
 Other income 84,284 106,821 33,065 78,035
 $4,396,762 $5,943,319 $2,144,638 $2,736,061
 Expenses:
 Production taxes $260,402 $339,789 $120,587 $186,559
 Lease operating costs 968,719 934,208 474,592 499,884
 Depletion, depreciation
 and amortization 2,637,157 2,786,236 1,382,702 1,487,011
 General and
 administrative 1,064,343 1,089,005 471,807 596,330
 Interest 1,442,910 1,523,222 738,107 766,729
 Loss on sale of
 investments 13,383 5,470 13,383 7,055
 Writedown of oil and
 gas properties 550,000 --- 550,000 ---
 $6,936,914 $6,677,930 $3,751,178 $3,543,568
 Loss before equity in
 loss of affiliate ($2,540,152) ($734,611)($1,606,540) ($807,507)
 Equity in loss of
 affiliate ($227,885) ($78,147) ($40,308) ($37,029)
 Net loss ($2,768,037) ($812,758)($1,646,848) ($844,536)
 Net loss per
 common share ($.22) ($.07) ($.13) ($.07)
 Weighted average shares
 outstanding 12,502,187 12,330,186 12,502,187 12,453,175
 -0- 8/12/93
 /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

SB-ME -- DE008 -- 2085 08/12/93 11:22 EDT
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Date:Aug 12, 1993
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