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WESTERN GAS RESOURCES ANNOUNCES OPERATING RESULTS FOR FOURTH-QUARTER AND YEAR-END DEC. 31, 1992

 DENVER, Feb. 5 /PRNewswire/ -- Western Gas Resources Inc. (NYSE: WGR) today announced to holders of its common and preferred stock that 1992 was the fourth consecutive record year for the company, setting all-time highs for revenues, earnings and operating cash flows. The company recorded earnings of $39.7 million on revenues of $600.1 million, compared with 1991 earnings of $20.9 million on revenues of $358.2 million. Earnings per common share for 1992 were a record of $1.43 per share, 52 percent higher than the $.94 per share reported for 1991. Additionally, operating cash flow increased 69 percent to $76.0 million, compared to $44.8 million in 1991.
 The fourth quarter 1992 results also set new records for revenues, earnings and operating cash flows. Earnings were $13.2 million on revenues of $200.2 million, compared with fourth quarter 1991 earnings of $7.4 million on revenues of $133.9 million. Earnings per common share were $.47, 57 percent higher than the $.30 per share reported in the fourth quarter of 1991. Operating cash flow increased 76 percent to $23.9 million, compared to $13.6 million in 1991.
 Fourth quarter results included a $2.9 million after-tax gain, or $.11 per share, from the $22 million sale of a 20 percent interest in the company's Midkiff and Benedum facilities in the Spraberry Trend of the Permian Basin to an affiliate of Parker & Parsley Petroleum Co. effective Oct. 1, 1992. The sale was made anticipating that the reduction in interest to 80 percent in the facilities would result in temporarily reduced cash flows and net income. The related reduction in fourth quarter net income was approximately $.02 per share. However, the transaction was consummated for the long-term benefits to the company since an additional 165 Bcf of dedicated gas reserves will be added to the facilities partially through the extension of existing contracts but largely related to Parker & Parsley's three- year, 600-well drilling program that is progressing on schedule. At current rates of drilling, the company's 80 percent share of dedicated production should approximate the company's 100 percent level of production prior to negotiation of the transaction by the second half of 1993.
 Successful consolidation of new assets within WGR's operating areas and aggressive well connect activity helped achieve record sales volumes in 1992. The company acquired several small gathering and transportation systems in Oklahoma and reached record gas inlet volumes at Giddings and Midkiff facilities as a result of new producer contracts that added approximately 260 new wells and approximately 23 MMcf/D of additional throughput. Moreover, 1992 reflects Western's first full year of operating the UTP properties acquired in November 1991. Average gas sales increased 43 percent over 1991 to 442 MMcf/D, and average liquid sales increased 119 percent over 1991 to 2,400 MGal/D. Prices were somewhat volatile throughout 1992, resulting in an increase in average gas prices of 8 percent to $1.72/Mcf. However, average liquids prices decreased 11 percent to $.32/Gal. Although liquids prices declined over the year, they have made a modest recovery since year-end because of the colder weather, and management believes that fundamentals for the future of the liquids industry remain strong.
 The company completed several other transactions in 1992 to better position itself to take advantage of opportunities in the GTM industry:
 -- Obtained permits and began construction on the Katy Hub and Gas Storage Facility. Katy is expected to be operational for the third quarter 1993. Approximately $24.6 million has been expended on the project through December 1992.
 -- Raised $33.4 million through a public offering of 1.4 million shares of $2.28 cumulative preferred stock.
 -- Renegotiated outstanding lines of credit, significantly raising the maximum available credit while amending certain financial covenants to provide greater flexibility for future financing plans.
 -- Successfully placed $50 million of fixed rate long-term debt.
 "We are very pleased with our accomplishments in 1992," said Bill Sanderson, president and chief operating officer. "Our record results and consistent operating performance confirm our long-term commitment to building value for our stockholders. Additionally, our preferred stock offering and financing activities in 1992 resulted in a year-end debt/total capitalization ratio of 36 percent which places us in an excellent position to finance future growth opportunities and to complete the Katy facility."
 Western owns and operates natural gas gathering and processing facilities and markets and transports natural gas and natural gas liquids (NGLs). The company is actively pursuing new investment opportunities through both acquisitions and new construction to expand its area of operations and related markets towards its goal of increasing stockholder value.
 WESTERN GAS RESOURCES
 Financial Statistics
 (000s except share and per share amounts)
 Quarter Year
 Ended Dec. 31, Ended Dec. 31,
 1992 1991 Pct. 1992 1991 Pct.
 Change Change
 Revenues $200,170 $133,944 49 $600,116 $358,242 68
 Net income 13,182 7,381 79 39,681 20,850 90
 Earnings per
 common share .47 .30 57 1.43 .94 52
 Cash flow from
 operations 23,894 13,613 76 75,976 44,830 69
 Weighted average
 common shares
 outstand-
 ing 25,502,310 23,211,605 10 25,453,029 21,669,688 17
 WESTERN GAS RESOURCES
 Operating Statistics
 Average gas sales
 (MMcf/D) 549 409 34 442 310 43
 Average NGL sales
 (MGal/D) 2,689 1,625 65 2,400 1,097 119
 Average gas prices
 ($/Mcf) $2.14 $1.78 20 $1.72 $1.59 8
 Average NGL prices
 ($/Gal) $.32 $.38 (16) $.32 $.36 (11)
 -0- 2/5/93
 /CONTACT: Ron Wirth of Western Gas Resources, 800-933-5603/
 (WGR)


CO: Western Gas Resources Inc. ST: Colorado IN: OIL SU: ERN

LS-JB -- LA012 -- 3315 02/05/93 07:31 EST
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