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FORT WORTH, Texas, March 11 /PRNewswire/ -- Snyder Oil Corporation ("SOCO") today reported a net loss of $39.8 million for the year ended December 31, 1995. The loss largely resulted from $27.4 million of non- cash property impairment charges required primarily due to the adoption of FASB Statement 121, a $4.4 million litigation settlement, $1.5 million of costs incurred in reducing staff and $5.0 million to provide for losses on non-operating assets. Revenues and cash flow (net income (loss) plus exploration expense, DD&A, property impairments and deferred taxes) were $202.2 million and $70.6 million, decreases of 23% and 27% from the prior year, respectively. Cash flow per share declined to $2.13 from $3.61 one year earlier. The net loss per share of $1.53 compares to net income of $0.07 per share in 1994. Production increased 13% to an average of 36,024 barrels of oil equivalents per day. However, by year end production had fallen to 31,054 BOE per day. The Company's average net price per Mcf for gas decreased 19% to $1.35, while oil prices increased 15% to an average of $16.96 per barrel. On an equivalent barrel basis, prices declined 7% to $11.00.

Natural gas production during 1995 rose 21% to 53.2 Bcf and crude oil production decreased 2% to 4.3 million barrels. Proved reserves declined to 90.2 million BOE at year end 1995 from 120.2 million BOE one year earlier. The decrease in reserves, SOCO's first decline since 1988, was the result of 8.8 million BOE of property sales and 18.5 million BOE of downward revisions triggered primarily by low year end gas prices in the Rockies and a far more conservative assessment of future development plans. In 1995, SOCO drilled and completed 58 wells, primarily in the Rocky Mountain region. Capital expenditures in 1995 totaled $99.7 million, including $62.6 million for development drilling and recompletions, $13.7 million for acquisitions and $7.4 in acreage purchased. During the fourth-quarter, SOCO continued to expand its presence in the Gulf of Mexico through a roughly $12 million purchase of additional interests in the Main Pass area from one of DelMar's institutional partners. The acquisition was financed through the issuance of approximately 1 million shares of SOCO common stock to the seller. Due to continued unfavorable gas prices in the Rockies, SOCO currently expects its development drilling budget in 1996 to approximate $55 million.

During 1995, the Company responded to the lowest Rocky Mountain gas prices in its history by sharply curtailing drilling activity, particularly in the Wattenberg Field, reducing staff by more than 35% and cutting debt significantly. The debt reduction was made possible by the sale of the Wattenberg gas facilities along with various non- strategic oil and gas properties. Total proceeds from the dispositions exceeded $100 million, allowing senior debt to be reduced to $150 million at year end.

Commenting on the results, Thomas J. Edelman, SOCO's President said: "Our financial performance in 1995 was obviously a significant disappointment. The impact of low gas prices in the Rockies and what has proven in hindsight to have been a far too aggressive capital program in 1994 forced us to dramatically alter our strategic plans. Should low gas prices continue to prevail in our principal area of operations it will be difficult to return to profitability in the short run. Regardless, we feel we have taken the necessary steps to cope with the current environment and are well positioned to resume our historical growth pattern. We are excited about opportunities we see in the Gulf of Mexico, the increasing momentum building in several of our large international projects and the continued positioning of our Rocky Mountain gas projects for wider-scale development upon improvement in regional gas prices. Finally, we are optimistic about the proposed combination of our Wattenberg properties with the properties of Gerrity Oil & Gas ("GOG") into a new public company, Patina Oil & Gas Corporation. The new company, which will be 70% owned by SOCO, has the potential to be one of the lowest cost producers in the U.S. oil and gas industry. While there can be no assurance that the transaction will be completed, we currently anticipate that the special meeting of GOG shareholders required to approve the transaction will occur in April."

SOCO is engaged in the production, development, acquisition and exploration of domestic oil and gas properties and, to a minor extent, in natural gas processing and transportation. SOCO is also engaged in international exploration and production, directly as well as through its affiliates. The Company's common and convertible preferred shares are traded on The New York Stock Exchange under the symbols "SNY" and "SNY Pr A."
 (In thousands, except per share data)
 Quarter Ended December 31, Year Ended December 31,
 % %
 Change 1995 1994 Change 1995 1994

 Oil and gas sales (11%) $33,203 $37,483 5% $144,608 $137,858

Gas processing,

transportation and
 marketing 3,929 21,766 38,256 107,247

Gains on sales of
 properties 718 328 12,254 1,969
 Other 3,312 3,666 7,042 15,254
 (35%) 41,162 63,243 (23%) 202,160 262,328

 Direct operating 11,324 12,028 52,486 46,267

Cost of gas and
 transportation 3,238 18,443 29,374 94,177
 Exploration 671 1,796 8,033 6,505
 Gross margin (16%) 25,929 30,976 (3%) 112,267 115,379

General and
 administrative 3,739 3,272 17,680 12,853
 Interest and other 5,856 4,843 27,001 12,463
 Litigation settlement -- -- 4,400 --

Depletion, depreciation
 and amortization 16,505 19,156 76,378 70,770
 Property impairments 24,084 1,100 27,412 5,783

Income (loss) before

taxes and minority
 interest (24,255) 2,605 (40,604) 13,510

Provision for income taxes
 Current -- (75) 25 --
 Deferred 341 665 (1,370) 967
 341 590 (1,345) 967
 Minority interest (173) (145) (572) (171)
 Net income (loss) ($24,769) $1,870 ($39,831) $12,372

Net income (loss) per
 common share ($0.88) ($0.03) ($1.53) $0.07

Average common shares
 outstanding 30,335 24,468 30,186 23,704
 Cash flow (32%) $16,832 $24,587 (27%) $70,622 $96,397

Oil production
 (MBbl) (20%) 899 1,117 (2%) 4,278 4,366

Gas production
 (MMcf) (11%) 11,655 13,048 21% 53,227 43,809

Equivalent barrels
 (MBOE) (14%) 2,842 3,292 13% 13,149 11,668

Average oil price
 (per Bbl) 10% $16.85 $15.30 15% $16.96 $14.80

Average gas price
 (per Mcf) (1%) $1.55 $1.56 (19%) $1.35 $1.67

Average price per
 BOE 3% $11.69 $11.39 (7%) $11.00 $11.82
 -0- 3/11/96

/CONTACT: Phillip J. Ream of Snyder Oil, 212-371-1117/


CO: Snyder Oil Corp. ST: Texas IN: OIL SU: ERN

BB-SS -- LAM023 -- 0630 03/11/96 09:04 EST
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Date:Mar 11, 1996

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