WAINOCO REPORTS 1991 RESULTS
WAINOCO REPORTS 1991 RESULTS HOUSTON, Feb. 20 /PRNewswire/ -- Wainoco Oil Corporation (NYSE: WOL)
today announced the results of its operations for the full year and the fourth quarter of 1991. Revenues of $130.4 million for the year ended Dec. 31, 1991 were 166 percent above those of the previous year. The large increase was due to a $78 million fourth quarter addition to revenues from the company's wholly-owned refining subsidiary acquired Oct. 7, 1991. The year's declining prices for oil and gas as well as for refined products, which dropped sharply at year-end, resulted in a loss of $18.3 million. The majority of the loss was incurred from a $13 million noncash write-down of U.S. oil and gas properties and a $1.4 million charge to the refinery's crude oil and product inventory. Net cash provided by operating activities of $17.5 million was slightly below that of $17.7 million in the prior year.
Record oil production of 1.1 million barrels rose 35 percent over that in 1990 and was 76 percent higher than 1989 production. This achievement reflects the company's strategy to increase production and sale of oil in the face of low natural gas prices. The company's growing oil production was greatly enhanced by the August 1991 acquisition of a 18 percent interest in the Conroe oil field north of Houston. The year's average price of $18.67/bbl for oil was 15 percent less than that of $22.02/bbl received in 1990. Natural gas production of 19 bcf declined 10 percent from that of the prior year following curtailments, property sales and voluntary cutbacks as prices retreated. The average price for the year's natural gas sales was $1.22/mcf, the lowest received since 1977. Fourth quarter revenues of $91.6 million were 450 percent above those of the previous year's similar period as a result of the refinery's purchase. The company experienced a net loss of $7.4 million for the quarter compared with that of $12.7 million in the final period of 1990. Noncash write-downs of $3 million in U.S. oil and gas properties and $1.4 million in refinery charges to inventory were the primary cause of the loss. "The acquisition of oil production in the Conroe field and purchase of the unique Frontier Refinery in Cheyenne, Wyo. in the year's latter half were major steps taken to offset the effect of weak natural gas markets," said J.B. Ashmun, the company's chairman. He further stated, "A full year's ownership of these assets will have a considerable future impact on oil production, revenues and cash flow." Wainoco Oil Corporation is a publicly held oil and gas exploration and production company with operations in the U.S. and Canada, and it has recently acquired an oil refinery in Cheyenne, Wyoming. Wainoco's common shares are listed on the New York and Alberta Stock Exchanges under the symbol "WOL". WAINOCO OIL CORPORATION Summary of Results For the Year Ended Dec. 31, 1991 1990 FINANCIAL (In thousands except per share) Revenues $130,422 $49,053 Additional DD&A for write-down of U.S. property 13,000 21,200 Net loss (18,291) (18,573) Loss per share (.90) (.94) Average shares outstanding 20,366 19,847 Net cash provided by operating activities 17,513 17,691 Long-term debt, net of current maturities 154,417 81,301 Shareholders' equity 53,987 61,774 PRODUCTION Oil (bbls) 1,120,000 829,000 Gas (mmcf) 19,001 21,158 Average oil price ($/bbl) 18.67 22.02 Average gas price ($/mcf) 1.22 1.30 REFINING (bpd) Total charge 36,153 -- Gasoline sales 19,088 -- Distillate sales 12,447 -- Total sales 36,400 -- RESERVES Oil (mbbls) 6,032 7,263 Gas (bcf) 214.5 220.2 Equivalent oil (mbbls)(A) 41,777 43,960 Pretax future net inc. at constant prices, discounted at 10 percent $142,554 $189,565 For the Three Months Ended Dec. 31, 1991 1990 FINANCIAL (In thousands except per share) Revenues $91,575 $16,644 Additional DD&A for write-down of U.S. property 3,000 14,000 Net loss (7,380) (12,654) Loss per share (.35) (.64) Average shares outstanding 21,919 19,852 Net cash provided by operating activities 3,130 5,677 PRODUCTION Oil (bbls) 301,000 258,000 Gas (mmcf) 5,486 6,198 Average oil price ($/bbl) 19.18 29.67 Average gas price ($/mcf) 1.21 1.27 REFINING (bpd) Total charge 36,153 -- Gasoline sales 19,088 -- Distillate sales 12,447 -- Total sales 36,400 -- (A) Using the net equivalent gas to oil at the BTU ratio of six mcf to one bbl. -0- 2/20/92 /CONTACT: Carolyn Rogan Wainoco Oil, 713-658-9900/ (WOL) CO: Wainoco Oil Corporation ST: Texas IN: OIL SU: ERN SH -- NY058 -- 0975 02/20/92 13:30 EST
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|Date:||Feb 20, 1992|
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