FORT WORTH, Texas, April 30 /PRNewswire/ -- Snyder Oil Corporation
(NYSE: SNY) today reported that a ten percent production increase from current
core operating areas in the first quarter 1999 was offset by a sharp decline
in oil and natural gas prices and dry hole cost related to the Company's North
Louisiana exploration program.
For the first quarter of 1999, the Company reported a net loss of
$8.2 million (24 cents per share) compared to net income of $1.8 million
(six cents per share) for the first quarter of 1998. The decline reflects the
previously announced $9.6 million dry hole expense related to the Bozeman
No. 1 in northern Louisiana and the negative impact of a 20 percent decline in
oil and natural gas prices realized at the wellhead compared with first
quarter of 1998.
Increases in production were offset by price decreases driving first
quarter 1999 revenues to $30.0 million compared with $32.8 million in the same
prior-year period. Discretionary cash flow decreased $4.9 million to
$12.9 million compared to the prior year quarter due primarily to a
$4.8 million decrease in prices between periods.
Production for first quarter 1999 increased six percent from the prior
year quarter despite the sale of the Company's interest in the Southeast
Piceance Project, which occurred during first quarter 1999. Production from
the current core areas increased ten percent to an average 28.9 MBOE (thousand
barrel oil equivalent) per day from 26.2 MBOE per day in the first quarter
1998, excluding the Southeast Piceance Project.
Average oil prices fell 17 percent to $10.80 per barrel in first quarter
1999 from $13.07 in the prior-year first quarter. The average wellhead price
for natural gas in the first quarter 1999 dropped to $1.59 per mcf, or
20 percent, compared with an average $1.99 per mcf a year earlier. A 31 cent
per mcf hedging gain during the first quarter 1999, compared to a 20 cent per
mcf in the comparable quarter, softened the overall impact of lower gas
prices, resulting in a realized gas price decrease of only 13 percent.
The Company's pending merger with Santa Fe Energy Resources (NYSE: SFR)
creating Santa Fe Snyder Corporation is expected to be voted on by
shareholders at a special meeting on May 5, 1999.
John C. Snyder, Chairman of the Company, commented, "Declines in commodity
prices during the first quarter are continuing to have an adverse impact on
the industry. Although we have seen some increases in prices recently, we
believe that further consolidation within our industry will occur. The
proposed merger with Santa Fe will position the Company as a strong competitor
during this consolidation cycle with a lower cost structure, greater financial
flexibility and built in production growth."
Snyder Oil Corporation is engaged in the production, development,
acquisition and exploration of domestic oil and gas properties, primarily in
the Gulf of Mexico, the Rocky Mountains and northern Louisiana. The Company
also has investments in two international exploration and production
companies, Cairn Energy plc and SOCO International plc. The Company's shares
are traded on the New York Stock Exchange under the symbol "SNY." The
Company's news releases and other information can be found on the Internet at
http://www.snyderoil.com .
This release contains certain forward looking statements which are based
on assumptions which the Company believes are reasonable, but which are
subject to a wide range of uncertainties and business risks. Factors that
could cause actual results to differ materially from those anticipated are
discussed in the Company's periodic filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended
December 31, 1998.
SNYDER OIL CORPORATION
(In thousands, except per share and price data)
Three Months Ended March 31,
1999 1998
SUMMARY STATEMENT OF OPERATIONS
Oil and gas sales $30,037 $32,822
Cash expenses
Direct operating 9,023 8,448
General and administrative 4,265 4,150
Financing costs, net 4,212 2,751
Other (income) expense (390) (329)
Discretionary cash flow 12,927 17,802
Depletion, depreciation and amortization 13,899 11,762
Exploration 11,925 3,213
(12,897) 2,827
Deferred income tax expense (benefit) (4,514) 990
Net income (loss) before special items (8,383) 1,837
Special items (net of deferred taxes)
Gains on sales of properties 230 1
Net income (loss) applicable to common $(8,153) $1,838
Net income (loss) per common share $(.24) $.06
Discretionary cash flow per common share $.39 $.53
Weighted average shares outstanding 33,369 33,372
SUMMARY OPERATIONS DATA
Oil production (Bbl/day) 5,117 5,095
Gas production (Mcf/day) 146,311 136,041
Equivalent barrels (BOE/day) 29,502 27,768
Equivalent cubic feet (Mcfe/day) 177,013 166,608
Average oil price (per Bbl) $10.80 $13.07
Average gas price (per Mcf) $1.90 $2.19
Average price per BOE $11.31 $13.13
SNYDER OIL CORPORATION
(In thousands, except per share and price data)
March 31, December 31,
1999 1998
SUMMARY BALANCE SHEET DATA
Current assets $29,484 $35,555
Investments 26,318 23,983
Oil & gas properties and
other long-term assets 350,396 374,399
$406,198 $433,937
Current liabilities $64,282 $73,268
Long-term debt 206,824 212,788
Other noncurrent liabilities 18,757 19,427
Stockholders' equity 116,335 128,454
$406,198 $433,937
SOURCE Snyder Oil Corporation
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Related links:
http://www.snyderoil.com
Company News On-Call:
http://www.prnewswire.com/comp/118962.html or fax,
800-758-5804, ext. 118962
CONTACT:
Rodney L. Waller of Snyder Oil Corporation,
817-882-5937
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