FORT WORTH, Texas, May 7 /PRNewswire/ -- Snyder Oil Corporation
(NYSE: SNY) today reported first quarter 1998 net income of $1.8 million
(six cents per share), down from the $18.4 million (59 cents per share)
reported in the first quarter of 1997. Net income from the previous year
quarter included $9.5 million of one time gains on the sale of the Company's
international investments and property sales and $4.1 million of net income
applicable to the Company's subsidiary, Patina Oil & Gas Corporation
("Patina"), which was sold at the end of the third quarter of 1997. Excluding
these nonrecurring items, the comparable first quarter 1997 amount would be
$4.8 million (15 cents per share). The decrease is primarily due to lower
commodity prices, partially offset by higher gas volumes.
Discretionary cash flow, excluding these non-recurring items, was
$17.8 million (53 cents per share) in the current quarter compared to
$20.6 million (66 cents per share) for the first quarter of 1997. The
following discussion compares the first quarter results with the prior year
quarter, excluding Patina.
During the first quarter of 1998, the Company produced 136 million cubic
feet per day (MMcf/d) an increase of 25 percent over the same period in 1997.
Gas production was up 27 percent in the Gulf and 21 percent in the Rockies
comparing the first quarter of 1998 to the first quarter of 1997. The
Company's average gas price in the first quarter of 1998 was $2.19 per
thousand cubic feet (Mcf), down 22 percent from $2.81 per Mcf in the first
quarter of 1997.
The Company's average price for crude oil dropped nearly 40 percent to
$13.07 per barrel in the first quarter of 1998 from $20.84 in the prior year
quarter. Crude oil and condensate volumes declined 12 percent to 5,095
barrels per day. The decrease in oil and condensate volumes is primarily due
to focusing the capital program on gas projects and the curtailment of
production due to lower oil prices. Oil production comprised only 18 percent
of total equivalent production in the first quarter, compared to 24 percent
last year.
First quarter 1998 cash costs which include direct operating, general and
administrative and financing costs, net, declined 14 percent on an equivalent
barrel of oil basis from the first quarter of 1997, and also declined seven
percent from the fourth quarter of last year.
William G. Hargett, President and Chief Operating Officer, commented,
"Significant declines in commodity prices mask continuing improvement in our
operating performance. Production increased from an average of 24 MBOE per
day in the fourth quarter of 1997 to 28 MBOE per day in the first quarter of
1998. We expect the second quarter to exceed 30 MBOE per day and expect
continual increases in the second half of the year when the Transco pipeline
is operational. We are still on track to achieve our 40 percent growth in
production for the year from base operations. We also expect to achieve
another substantial increase in production in 1999. These expectations are
based upon the success of our drilling program so any significant acquisition
would expand production even further."
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 North Louisiana. The Company also
has investments in two international exploration and production companies,
SOCO International plc and Cairn Energy 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, 1997.
SNYDER OIL CORPORATION
(In thousands, except per share and price data)
(Unaudited)
Three Months Ended March 31,
Excluding As
Patina Reported
1998 1997 1997
Oil and gas sales $ 32,822 $38,408 $67,848
Cash expenses
Direct operating 8,448 9,046 14,021
General and administrative 4,150 4,165 5,492
Financing costs, net 2,751 2,138 6,579
Other (income) expense (329) 901 855
Preferred dividends --- 1,550 1,550
Discretionary cash flow 17,802 20,608 39,351
Depletion, depreciation and
amortization expense 11,762 10,780 23,208
Exploration expense 3,213 1,641 1,700
2,827 8,187 14,443
Deferred income tax expense 990 3,408 3,408
Net income before special items 1,837 4,779 11,035
Special items (net of deferred taxes)
Gains on sales of equity
interests in investees --- 8,449 8,449
Gains on sales of properties 1 1,695 1,695
Minority interest in subsidiaries --- (688) (2,803)
Net income to common $1,838 $14,235 $18,376
Net income per common share $.06 $.46 $.59
Discretionary cash flow
per common share $.53 $.66 $1.27
Weighted average shares
outstanding 33,372 31,030 31,030
SUMMARY OPERATIONS DATA
Oil production (Bbl/day) (12%) 5,095 5,816 11,137
Gas production (Mcf/day) 25% 136,041 108,910 183,027
Equivalent barrels (BOE/day) 16% 27,768 23,968 41,641
Equivalent cubic feet
(MCFE/day) 16% 166,608 143,808 249,846
Average oil price (per Bbl) (37%) $13.07 $20.84 $ 21.18
Average gas price (per Mcf) (22%) $2.19 $2.81 $2.83
Average price per BOE (26%) $13.13 $17.81 $ 18.10
March 31, December 31,
1998 1997
SUMMARY BALANCE SHEET DATA
Cash and equivalents $ 72,391 $ 89,443
Other current assets 22,902 24,432
Investments 118,408 143,066
Oil & gas properties and
other long-term assets 302,093 289,147
$515,794 $546,088
Current liabilities $ 50,788 $57,549
Long-term debt 173,663 173,636
Other noncurrent liabilities 43,259 51,147
Stockholders' equity 248,084 263,756
$515,794 $546,088
SOURCE Snyder Oil Corporation
 back to top
Related links:
http://www.snyderoil.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 118962
CONTACT:
Rodney L. Waller of Snyder Oil Corporation,
817-882-5937
|
