PATRICK PETROLEUM REPORTS THIRD-QUARTER, NINE-MONTHS RESULTS
JACKSON, Mich., Nov. 12 /PRNewswire/ -- Patrick Petroleum Company (NYSE: PPC) today reported a net loss for the third quarter ended Sept. 30, 1991, of $637,807, or 5 cents per share, on total revenues of $2,603,208. This compared with net income of $109,866, or 1 cent per share, on total revenues of $3,176,662 for the third quarter of 1990. The results for the third quarter and nine months of 1991 include a net loss of $48,519 from the company's equity investment in Marcum Natural Gas Services, Inc.
At Sept. 30, 1991, the company reported approximately $4.3 million in cash, short-term and long-term marketable securities. Working capital was $4.4 million and the current ratio was 2.9 to 1.0. Stockholders' equity declined slightly to $41.3 million, or $3.39 per share, based upon 12,201,187 shares outstanding as of Sept. 30, 1991.
Oil and gas revenues for the third quarter of 1991 decreased $435,912 to $2,419,812 primarily reflecting the sharp declines in oil and gas pricing, and to a lesser degree, declines in oil production during the period. Investment income decreased $96,445 to $155,800 in the current period primarily due to sales of marketable securities during 1991. Total expenses increased $125,700 to $3,192,496 during the third quarter of 1991 compared to the same period of 1990. The increase was primarily due to higher depletion, depreciation and amortization expense which increased $229,271 to $1,051,034 in the current quarter. Interest expense decreased $126,579 to $839,169 as a result of lower interest rates.
For the nine months ended Sept. 30, 1991, the company reported a net loss of $1,305,256, or 11 cents per share, on revenues of $8,773,199, compared to net income of $372,635, or 3 cents per share, on revenues of $10,306,165, for the comparable 1990 period.
Revenues from the sale of oil and gas for the nine months decreased $1,499,046 to $7,966,923 and the other components of revenues decreased $33,920. Of the decrease in oil and gas revenues, approximately $1,059,000 was the result of production declines and $440,000 resulted from price declines compared to the year-ago period. Expenses increased to $10,029,936 during the nine months compared to $9,933,530 for the same period of 1990. The primary cause of increased expenses was higher depletion, depreciation and amortization which increased $235,728. Production taxes and lease operating costs decreased $182,262 in the 1991 period compared to 1990.
Third-quarter oil production was 60,333 barrels compared to 64,863 barrels a year ago. The average wellhead price of oil during the quarter was $20.71 per barrel, 9 percent less than $22.74 per barrel in the same period of 1990. Natural gas production during the third quarter increased slightly to 816,418 Mcf, vs. 801,623 Mcf a year ago. The average price received declined 17 percent to $1.37 per Mcf from $1.65 per Mcf in 1990.
Nine-month oil production was 201,389 barrels, representing a 9-percent decline from 220,877 barrels produced in the first nine months of 1990. The nine-month average wellhead price increased slightly to $20.20 per barrel compared to $19.99 per barrel in 1990. Natural gas production for the nine-month period was 2,342,634 Mcf, a 14-percent decline from 2,712,473 Mcf produced a year ago. Nine-month natural gas prices averaged $1.58 per Mcf, a 12-percent drop from the $1.79 per Mcf received last year.
Commenting on the third-quarter results, company President U.E. (Pat) Patrick stated, "Depressed natural gas prices continue to adversely affect revenues as reflected in our third-quarter results. Total oil and gas revenues were down $435,912 compared to last year of which $356,126, or 82 percent, was the direct result of lower gas and oil prices. The third-quarter average natural gas price of $1.37 per Mcf was the lowest average price we have received in over 12 years. We are hopeful fourth-quarter revenues will show considerable improvement as prices thus far have averaged better than $1.90 per Mcf and oil prices continue to average more than $20 per barrel.
"Also encouraging is our investment in Marcum Natural Gas Services, Inc. despite their reported losses in the third quarter. DVCO, Inc., a subsidiary of Marcum Natural Gas Services, Inc., has recently sold their first compressed natural gas dispensing units and has a contract with a large public transportation authority for the installation of three more units at their new state-of-the-art CNG refueling center. We anticipate that the selection of DVCO, Inc. to provide this equipment will create new market opportunities as other companies view this as a model for future CNG refueling installations," Mr. Patrick concluded.
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 518 oil and gas wells located primarily in Michigan, North Dakota, Texas, Oklahoma and Louisiana.
PATRICK PETROLEUM COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months Ended Three Months Ended
9-30-91 9-30-90 9-30-91 9-30-90
Oil and gas sales $7,966,923 $9,465,969 $2,419,812 $2,855,724
Investment income 724,947 762,726 155,800 252,245
Gain (loss) on
sale of assets (7,116) (94,065) (7,615) ---
Other income 88,445 171,535 35,211 68,693
Total $8,773,199 $10,306,165 $2,603,208 $3,176,662
Lease operating $1,274,570 $1,516,474 $527,424 $616,273
Production taxes 615,356 555,714 193,152 159,099
and amortization 3,922,558 3,686,830 1,051,034 821,763
administrative 1,711,131 1,618,545 581,717 503,913
Interest 2,506,321 2,555,967 839,169 965,748
Total $10,029,936 $9,933,530 $3,192,496 $3,066,796
Net earnings (loss)
before share of
affiliate (loss) ($1,256,737) $372,635 ($589,288) $109,866
Equity in (loss)
of affiliate (48,519) --- (48,519) ---
(loss) ($1,305,256) $372,635 ($637,807) $109,866
Net earnings (loss)
per common share ($0.11) $0.03 ($0.05) $0.01
Weighted avg. shares
outstanding 12,201,187 12,582,794 12,201,187 12,522,772
/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 Company/
(PPC) CO: Patrick Petroleum Company ST: Michigan IN: OIL SU: ERN ML-JG -- DE013 -- 3474 11/12/91 12:43 EST