SNYDER OIL ANNOUNCES 1991 RESULTS
SNYDER OIL ANNOUNCES 1991 RESULTS FORT WORTH, Texas, Feb. 24 /PRNewswire/ -- Snyder Oil Corporation
(NYSE: SNY) ("SOCO") today announced its results for the year ended Dec. 31, 1991. Revenues increased 13 percent to $92.5 million, while operating income rose 34 percent to $53.4 million. Net cash flow jumped 40 percent to $36.6 million as net income rose to $8.8 million, an increase of 17 percent. Net income per share increased slightly to $.37 despite an 11 percent rise in average shares outstanding. In announcing its results, SOCO noted that 1991 was its sixth consecutive year of growth in revenues, cash flow and net income.
The company's record results were achieved primarily through rapid increases in production. Average daily production in 1991 rose to 4,074 barrels of oil and 50.4 million cubic feet of gas, increases of 42 percent and 44 percent, respectively. These increases resulted largely from SOCO's continuing development program in the Wattenberg Field of Colorado. At Dec. 31, 1991, SOCO's proved reserves totalled 66.6 million barrels of oil equivalents, a 3 percent increase over the prior year end. The reserve increase was due primarily to Wattenberg drilling, offset by depletion and reserve reductions triggered by a decline in oil prices from the extraordinary levels prevailing during the Iraqi occupation of Kuwait. The present value of the proved reserves at year end, using unescalated prices, was $243.6 million pretax and $210.9 million after-tax. This represented a significant reduction from the prior year end due primarily to energy price declines. The Wattenberg drilling program was initiated in February 1991. As of year end, 130 wells had been drilled with 109 on production and 18 in the process of drilling or completion. Three wells were dry. Daily production from these newly developed wells currently approximates 1,500 barrels of oil and 26 million cubic feet of gas net to SOCO's interest. Proved reserves associated with the development program totalled 23 million barrels of oil equivalents at year end. The company anticipates drilling 300-500 additional wells in the Wattenberg Field over the next three to five years. Despite focusing on Wattenberg, 1991 proved successful in a number of other respects. In June, a contract to supply up to 50 Bcf of gas over 13 years to a cogeneration facility was finalized. At least initially, the contract is priced at a substantial premium to market and helps to partially insulate SOCO from the recent rapid decline in gas prices. No significant acquisitions were closed during the year, but a total of $9.9 million of purchases greatly expanded the company's position in Permian Basin waterfloods. Exploration efforts were expanded to include an international effort beginning in mid year. To date, a 1.1 million acre exploratory concession in Tunisia has been obtained and a letter of intent covering a development joint venture in the Russian Republic has been finalized. Given the time lags involved in the company's current domestic and international exploration projects, no material developments are expected before the latter part of the year. SOCO is engaged in the production, development, acquisition and exploration of oil and gas properties and in natural gas processing and transportation. The company's common and convertible preferred shares are traded on the New York Stock Exchange under the symbols "SNY" and "SNY Pr." SNYDER OIL CORPORATION STATEMENTS OF OPERATIONS (In thousands, except per share data) Quarter Ended Year Ended Dec. 31 Dec. 31 Percent Percent Change 1991 1990 Change 1991 1990 Revenues: Oil and gas sales -- $19,217 $17,858 -- $65,344 $49,803 Gas processing and transportation -- 7,593 5,242 -- 21,459 29,442 Other 2,084 827 5,698 2,928 Total 21 28,894 23,927 13 92,501 82,173 Expenses: Direct operating -- 6,545 5,617 -- 24,882 18,088 Cost of gas and transportation -- 5,580 3,107 -- 14,202 24,103 Operating income 10 16,769 15,203 34 53,417 39,982 Gen. & admin. -- 1,767 1,961 -- 7,259 5,649 Interest & other-- 2,707 3,306 -- 9,327 7,125 Depletion, deprec. & amort. -- 7,300 5,573 -- 25,392 17,351 Income taxes -- 1,378 974 -- 2,628 2,342 Net income 7 $ 3,617 $ 3,389 17 $ 8,811 $ 7,515 Net income available to common -- $ 3,164 $ 3,389 -- $ 8,358 $ 7,515 Net income per share 0 $ .14 $ .14 3 $ .37 $ .36 Average shares outstanding (3) 22,848 23,463 11 22,839 20,620 -0- 2/24/92 /CONTACT: Patti J. Irwin, vice president of Snyder Oil, 817-882-5902/ (SNY) CO: Snyder Oil Corporation ST: Texas IN: OIL SU: ERN AH -- NY082 -- 2088 02/24/92 17:27 EST
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|Date:||Feb 24, 1992|
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