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PLAINS RESOURCES REPORTS NET INCOME FOR SECOND STRAIGHT QUARTER

 HOUSTON, Nov. 4 /PRNewswire/ -- Plains Resources (AMEX: PLX) today reported net income for the third quarter of 1993 of $428,000, or $.03 per share, on total revenue of $48.4 million.
 This compares to net income for the third quarter of 1992 of $1.1 million, or $.09 per share, on total revenue of $32.7 million. The company noted that, while on a comparative quarter basis net income was down in the current year period due to increased interest costs, earnings before interest and taxes ("EBIT") was up sharply.
 EBIT for the third quarter of 1993 increased 44 percent to $2.6 million as compared to the $1.8 million recorded in the same period of 1992. Moreover, earnings before interest, taxes, depreciation, depletion and amortization ("EBITDA") increased $1.4 million during the current year period to $6.8 million vs. $5.4 million a year ago. Cash flow from operations was relatively constant between the periods at approximately $4.7 million.
 On a consecutive quarter basis, the current quarter's results represent a 38 percent increase in net income from the $310,000, or $.02 per share, recorded in the second quarter of 1993. The company noted that this improvement comes despite a near 15 percent decline in posted oil prices during the third quarter. Greg L. Armstrong, the company's president and chief executive officer, cited the continued rise in production volumes and an increased contribution from the company's downstream activities as the principal reasons for the increase. Armstrong also stated that the company is partially insulated from declines in crude oil prices and as a result the company's average crude oil price declined only 4 percent in the quarter. A large percentage of Plains' oil production is protected through mid-1995 by fixed price contracts and financial hedging arrangements that were entered into when West Texas Intermediate crude oil was above $20 per barrel.
 During the quarter, the company produced approximately 1,135,000 barrels of oil equivalent, an increase of 37 percent over the levels reported for the third quarter of 1992. On a consecutive quarter basis, third quarter production increased 8 percent over the 1,049,000 quivalent barrels produced in the second quarter of 1993. "This marks the sixth consecutive quarter of increased production," the company said. The company attributed the continued increase in production to its ongoing development and exploitation activities.
 Downstream activities contributed a gross operating profit of $1.1 million during the quarter. Marketing gross profit totalled $619,000, representing the largest quarterly contribution to date from this business segment. Although only partially operational during the quarter, the company's new crude oil storage and terminalling facility in Cushing, Okla., generated a gross profit of $434,000. This facility is expected to be completed in late November. Armstrong said that while this facility will not be fully operational until December, he expects gross profit from storage and terminalling activities for the last quarter of 1993 to increase by over 60 percent of the third quarter amount.
 The company's operating performance for the nine months ended Sept. 30, 1993, showed significant improvement over the 1992 period as the company reported a 54 percent increase in cash flow to $12.5 million as compared to the $8.1 million reported for the first nine months of 1992. EBIT during the current year period increased to $6.2 million, a 244 percent improvement over the $1.8 million reported for the 1992 comparative period, while EBITDA was up 92 percent, increasing to $18.8 million from $9.8 million in 1992. The company reported a net loss of $107,000, or $.01 per share, as compared with net income of $128,000, or $.01 per share, for the nine month period in 1992.
 "We are optimistic about the company's prospects for future growth in cash flow, production and oil and gas reserves," said Armstrong. "We believe that the company's two recent acquisitions have meaningful upside potential and will compliment its already large inventory of low risk development and exploitation projects. In addition, we expect an increased contribution from our downstream activities as we commence full scale operations at our new crude oil storage and terminalling facility and continue to expand our marketing activities."
 Plains Resources is an independent energy company engaged in the exploration, acquisition, development and exploitation of crude oil and natural gas and the downstream activities of marketing, transportation and storage of crude oil. The company is headquartered in Houston, Texas.
 PLAINS RESOURCES INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS,
 FINANCIAL AND PRODUCTION DATA
 (unaudited)
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (in thousands, except per share data)
 Periods ended Three Months Nine Months
 Sept. 30 1993 1992 1993 1992
 REVENUE
 Oil and natural gas sales $15,188 $12,279 $43,384 $24,980
 Marketing, transportation
 and storage 33,176 20,354 96,955 61,088
 Interest and other income 29 114 276 169
 Total 48,393 32,747 140,615 86,237
 EXPENSES
 Production expenses 7,601 5,768 21,687 11,918
 Purchases and transportation 32,123 19,922 94,656 59,875
 General and administrative 1,861 1,699 5,492 4,661
 Depreciation, depletion and
 amortization 4,233 3,585 12,625 8,003
 Interest 2,147 703 6,262 1,652
 Total 47,965 31,677 140,722 86,109
 NET INCOME (LOSS) $428 $1,070 $(107) $128
 Net income (loss) per
 common and common
 equivalent share $.03 $.09 $(.01) $.01
 Weighted average number
 of common and common
 equivalent shares 11,985 11,591 11,395 11,130
 FINANCIAL DATA (in thousands)
 Earnings before interest,
 taxes, depreciation,
 depletion and
 amortization ("EBITDA") $6,808 $5,358 $18,780 $9,783
 Cash flow from operations
 (earnings before
 depreciation, depletion
 and amortization) $4,661 $4,655 $12,518 $8,131
 PRODUCTION DATA
 Three Months Percentage Nine Months Percentage
 Ended Increase Ended Increase
 Sept. 30, (Decrease) Sept. 30, (Decrease)
 1993 1992 1993 1992


Average Daily Volumes:
 MBBLS/Oil 10.5 7.5 40.0 9.7 4.7 106.4
 MMCF/Natural Gas 11.0 9.3 18.3 11.6 9.6 20.8


MBBLS/Oil
 Equivalent 12.3 9.0 36.7 11.7 6.3 85.7
Total Volumes: MBBLS/Oil 965 688 40.3 2,655 1,291
 105.7 MMCF/Natural
 Gas 1,017 855 19.0 3,154 2,638 19.6 MBBLS/Oil
 Equivalent 1,135 831 36.6 3,181 1,731 83.8


Average Price:
 BBL/Oil $14.14 $15.64 (9.6) $14.45 $15.96 (9.5)
 MCF/Natural Gas $ 1.51 $ 1.77 (14.7) $ 1.59 $ 1.66 (4.2)


BBL/Oil
 Equivalent $13.39 $14.78 (9.4) $13.64 $14.44 (5.5)
 -0- 11/4/93
 /CONTACT: Phillip D. Kramer, vice president and chief financial officer, Plains Resources, 713-654-1414/ CO: ST: IN: SU:


MP -- PH006 -- 0573 11/04/93 09:34 EST
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