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 HOUSTON, Nov. 2 /PRNewswire/ -- United Meridian Corp. (UMC) (NYSE: UMC) today reported a third quarter net loss of $1.3 million, or 8 cents per share, compared to net income of $2.2 million, or 14 cents per share, for the third quarter of 1992. Discretionary cash flow (before working capital changes) for the quarter increased 19 percent to $10.2 million from last year's $8.6 million.
 For the first nine months of 1993, UMC's net loss totaled $2.3 million, or 21 cents per share, versus a net loss of $2 million, or 86 cents per share, in the first nine months of 1992. Discretionary cash flow of $25.9 million was 42 percent greater than that reported for the comparable period a year ago.
 The company's performance during the third quarter and the first nine months of the year was significantly impacted by its acquisitions of Norfolk Holdings Inc. and KPX Inc., but only from the dates of closing in April and June, respectively, and by the successful initial public offering completed in late July. Approximately $70 million of the offering proceeds were used by the company to significantly reduce debt in late July, which will have a beneficial earnings effect in future periods. Per share results were affected as the average number of common equivalent shares outstanding climbed from 13.3 million in the third quarter 1992 to 21.5 million in 1993.
 Reflecting the strong impact of the two earlier acquisitions, third quarter natural gas revenues jumped 31 percent to $16.7 million. Average daily gas production during the quarter increased 55 percent year-over-year to 85.2 million cubic feet (MMcf) despite significant downtime on the Montana gas purchaser's compression facilities. UMC realized an average price of $2.13 per thousand cubic feet (Mcf) versus $2 per Mcf reported in the comparable period last year. The company's improved overall gas price was tempered by the inclusion of its Canadian gas production, which typically sells at a discount to United States spot market gas production.
 Oil revenues of $6.4 million were 39 percent higher than those in the prior year period. Oil production averaged 4,500 barrels per day compared to daily production of 2,700 barrels a year ago. UMC's oil price fell to $15.50 per barrel from last year's third quarter average of $19.48, reflecting the recent softening in world oil markets and the greater proportion of Canadian oil in the company's production mix.
 UMC President and Chief Executive Officer John B. Brock explained, "After securing two significant acquisitions this spring and greatly improving the company's financial position through the successful public offering in July, UMC is focused on enhancing returns from our increased asset base. With the restoration of full production volumes in Montana and new production coming on stream, particularly from the Galveston 273/283 area offshore Texas, we are well on track to achieve our year- end production volume goals. Our capital commitment to aggressive development and focused exploration drilling is complemented by our commitment to lower costs and to improving the profitability of our operations."
 UMC is a Houston-based independent energy company engaged in the acquisition, exploration and development of natural gas and crude oil properties in the United States and Canada. The company also has exploration activities in Western Africa. The company's common stock is traded on the New York Stock Exchange (symbol UMC).
 Consolidated Statement of Income
 (in thousands)
 For the Three Months For the Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1993 1992 1993 1992
 Gas sales $16,694 $12,750 $41,948 $31,118
 Oil sales 6,355 4,636 15,710 13,286
 Gain on sale of assets 51 374 1,490 1,085
 23,100 17,760 59,148 45,489
 Costs and expenses:
 Production costs 8,733 5,701 20,949 16,120
 General and administrative 1,869 1,619 5,707 5,442
 Exploration, including dry
 holes and impairments 1,821 1,009 3,083 2,876
 Depreciation, depletion and
 amortization 9,898 6,118 25,332 18,822
 Interest expense and other 1,679 1,350 5,201 5,088
 24,000 15,797 60,272 48,348
 Net income (loss) before
 income taxes and cumulative
 effect of change in
 accounting principle (900) 1,963 (1,124) (2,859)
 Income tax benefit (provision) (407) 269 (1,134) 1,245
 Cumulative effect of change
 in accounting principle --- --- --- (368)
 Net income (loss) $(1,307) $2,232 $(2,258) $(1,982)
 Net income (loss) per
 common share $(0.08) $0.14 $(0.21) $(0.86)
 Weighted average number of
 common shares outstanding 21,482 13,329 17,605 2,832
 Cash flows from operations
 before changes in working
 capital $10,186 $8,616 $25,869 $18,236
 Average price:
 Gas (per MCF) $2.13 $2.00 $2.10 $1.85
 Oil (per BBL) $15.50 $19.48 $16.64 $18.46
 Total production:
 Gas (MMCF) 7,840 5,095 19,967 15,393
 Oil (MBBL) 410 265 944 735
 Average daily production:
 Gas (MMCF) 85 55 73 56
 Oil (MBBL) 5 3 4 3
 (In thousands, except percentages)
 Actual Actual
 Dec. 31, Sept. 30,
 1992 1993
 Current assets $21,902 $28,107
 Property and equipment
 Net of accumulated depreciation,
 depletion and amortization 167,885 296,345
 Other assets 7,420 12,829
 Total assets $197,207 $337,281
 Current liabilities $19,415 $28,088
 Long-term debt 67,920 84,880
 Other liabilities 18,887 26,080
 Equity 90,985 198,233
 Total liabilities & equity $197,207 $337,281
 Ratio of total debt to
 total capitalization 43pct. 30pct.
 -0- 11/2/93
 /CONTACT: Jeanne Buchanan of UMC, 713-653-5095/

CO: United Meridian Corp. ST: Texas IN: OIL SU: ERN

BB -- DV015 -- 9660 11/02/93 12:39 EST
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Publication:PR Newswire
Date:Nov 2, 1993

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