SAMSON ENERGY CO. ANNOUNCES INCREASED
1991 THIRD QUARTER REVENUES
TULSA, Okla., Nov. 13 /PRNewswire/ -- Samson Energy Co. Limited Partnership (AMEX: SAM) announced today its financial results for the quarter and the nine months ended Sept. 30, 1991. Increased revenues for both the recent quarter and nine months reflect record levels of product sales and the receipt of certain contractual payments.
Three-Month Financial Results
Revenues for the three months ended Sept. 30, 1991, were $5,554,000, an increase of 18 percent compared to $4,706,000 for the three months ended Sept. 30, 1990. Cash flow from operating activities for the current quarter was $2,595,000, compared to $3,519,000 for the third quarter of 1990, a decline of 26 percent. Based on average units outstanding, cash flow from operating activities for the third quarter of 1991 was 58 cents per unit, compared to 79 cents per unit for the third quarter of 1990. Samson Energy's net loss for the quarter was $52,000 (1 cent loss per unit), compared to net income of $515,000 (12 cents per unit) for the third quarter of 1990.
Total gas volumes for the three months ended Sept. 30, 1991, increased by 38 percent compared to the similar period in 1990. Oil volumes increased by 17 percent. Natural gas prices for the current quarter decreased to an average of $1.20 per mcf from $1.77 for the three months ended Sept. 30, 1990. Oil prices decreased to an average of $19.63 compared to $22.41 in 1990.
Nine-Month Financial Results
Revenues for the nine months ended Sept. 30, 1991, were $20,372,000, an increase of 62 percent compared to $12,598,000 for the nine months ended Sept. 30, 1990. Cash flow from operating activities for the current nine months was $12,697,000 ($2.82 per unit), compared to $10,344,000 ($2.31 per unit) for the nine months ended Sept. 30, 1990. Revenues and net income for the nine months ended Sept. 30, 1991, include $6,779,000 in other income from contractual payments. This amount is also included in 1991 cash flow while 1990 cash flow includes certain payments in excess of gas sales. Net income for the current nine months was $3,020,000 (67 cents per unit), compared to a net loss of $144,000 (3 cents loss per unit) for the first nine months of 1990. The net loss in 1990 includes a $752,000 downward revision in connection with the settlement of a lawsuit.
"The amount of oil and natural gas produced by Samson Energy reached record levels in the recent three and nine month periods. This is the result of increased production from wells formerly dedicated under long-term gas contracts and the production attributable to newly acquired wells. As previously announced, Samson Energy, as of Aug. 1, 1991, acquired interests in 157 oil and gas properties. This increased the company's gas reserves by more than 30 percent and oil reserves by more than 18 percent," stated Dennis R. Neill, senior vice president and chief operating officer of Samson Properties Inc., the general partner.
"The benefits of increased production capability should become more apparent when natural gas prices improve. The natural gas industry has been dealing with the lowest spot market price since the 1970's. Cooler fall and winter weather could significantly improve our spot market price. We will continue to manage our oil and natural gas production to maximize the ultimate value of our reserves," said Neill.
Samson Energy Co. is a publicly traded master limited partnership whose principal business activities include the development and operation of oil and gas properties and the acquisition of additional producing properties. Depositary receipts evidencing units are traded on the American Stock Exchange under the symbol SAM.
Samson Energy Co. Limited Partnership
Statements of Operations
(In thousands, except per Unit data)
Nine Months Ended Three Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1991 1990 1991 1990
Oil & Gas Sales $13,593 $12,598 $ 4,536 $ 4,706
Other Income 6,779 - 1,018 -
Total Revenues $20,372 $12,598 $ 5,554 $ 4,706
Oil and gas
production 5,608 4,180 1,754 1,342
Settlement of a contract
pricing dispute - 752 - -
administrative 871 818 262 247
oil and gas
properties 10,209 6,398 3,421 2,403
and software costs 37 45 7 15
Interest 627 549 162 184
Total Expenses $17,352 $12,742 $ 5,606 $ 4,191
Net income (loss) $ 3,020 ($ 144) ($ 52) $ 515
Net income (loss)
Unit $ .67 ($ .03) ($ .01) $ .12
Cash Flows from Operating
Activities $12,697 $10,344 $ 2,595 $ 3,519
Units outstanding 4,411 4,381 4,420 4,388
/CONTACT: Dennis R. Neill of Samson Properties Inc., 918-583-1791/
(SAM) CO: Samson Properties, Inc. ST: Oklahoma IN: OIL SU: ERN DB -- SF009 -- 4125 11/13/91 17:03 EST