FORT WORTH, Texas, Feb. 24 /PRNewswire/ -- Snyder Oil Corporation
(NYSE: SNY) today reported net income applicable to common of $26.6 million or
$.87 per share for the year ended December 31, 1997. This compares with net
income applicable to common of $56.7 million or $1.81 per share reported for
the year ended December 31, 1996. Cash flow available to common was
$150.2 million in 1997, compared to $175.5 million, in 1996. Both periods
include significant one-time gains from the sale of stock in the Company's
international investments.
Net income applicable to common for the fourth quarter of 1997 was
$4.6 million or $.14 per share, compared to $64.0 million or $2.06 per share
for the prior year period. During the fourth quarter of 1997 the Company sold
its interest in Patina Oil and Gas Corporation for a gain of $2.8 million, net
of tax. Last year's fourth quarter included an after-tax gain on
international investments of $57.2 million or $1.83 per share. Cash flow
available to common increased to $21.3 million, compared to $16.7 million last
year, excluding the above mentioned investment gains and Patina operations.
The Company's base operations improved in the fourth quarter 1997 compared
to the prior year excluding Patina and other nonrecurring items. Driving
improved fourth quarter results was a 16% increase in oil and gas revenues.
Gas production volumes increased 35% to 123,180 Mcf/d as acquisitions and
drilling activities more than offset the loss of production from the sale of
noncore properties. The Gulf of Mexico experienced an 84% increase and the
Rocky Mountains a 28% increase in gas production. Oil production declined
8% to 5,295 Bbl/d resulting from property dispositions. Oil prices decreased
$4.65 to $16.86 per Bbl while gas prices were up $.08 to $2.65 per Mcf.
Cash flow from base operations in the fourth quarter also benefited from a
19% decline in per unit lease operating costs. Lease operating costs declined
$.61 to $2.64 per BOE due to a higher proportion of offshore production and
the disposition of high cost properties. Exploration costs of $4.4 million
exceeded the prior year quarter of $1.4 million due to an increased investment
in seismic offshore and in north Louisiana.
Proved reserve additions totaled 18.6 million equivalent barrels of oil
(MMBOE) which replaced 208% of 1997 production of 8.9 MMBOE, excluding Patina.
The finding costs for adding reserves through drilling decreased 10% from last
year to $5.24 per BOE. Dispositions totaled 59.7 MMBOE of which 58.9 MMBOE
was held by Patina. The Company ended the year with 363 Bcf of natural gas
and 16.8 million barrels of crude oil, condensate and natural gas liquids, or
77.3 MMBOE. Approximately 15% of year-end 1997 reserves were classified as
proved undeveloped compared to 25% proved undeveloped at year-end 1996.
William G. Hargett, President and Chief Operating Officer, commented, "We
are excited with the success of our drilling program which, excluding Patina,
replaced over 200% of production in 1997. Total Company production, excluding
Patina, is expected to grow by 40% in 1998 as our new discoveries come on
stream. We are planning an active exploration program in the Gulf in 1998
utilizing the 2,250 square miles of additional seismic acquired in the fourth
quarter of 1997. The Rockies continue to provide steady growth with
production expected to increase 20% in 1998. One of our exploration plays in
north Louisiana, analogous to the east Texas pinnacle reef play, has
tremendous potential. We will begin a multi-year program of exploration
drilling in this project in the second quarter. Of our 800,000 net company-
wide acreage position, less than 10% has been fully developed. This leaves
90% of our acreage undeveloped and is the basis for continued growth. Only
1% of our undeveloped acreage is currently classified as proved.
Consequently, we believe that our drilling programs should add substantial
reserves to the Company for many years."
John C. Snyder, Chairman, noted, "1997 was one of the most significant
years in the history of the Company. Even though 1998 will be a year of
transition, the restructuring phase is complete. The sale of Patina completed
a strategic objective of simplifying our corporate structure and provided
capital to increase our exposure to more prolific basins. Now, with $200
million of cash and marketable securities, we have the financial capacity to
acquire $400 million or more of additional assets. During 1997, the Company
also eliminated potential dilution to our shareholders. Last year, on a fully
diluted basis, we had 42.0 million shares either outstanding or convertible
into common shares. Today, we have 33.3 million shares outstanding, a
reduction of over 8 million shares. The benefits of our future growth and
upside will now go 100% to our common shareholders."
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 Rockies and northern Louisiana. The Company also has
investments in two international exploration and production companies, SOCO
International plc and Cairn Energy plc.
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.
SNYDER OIL CORPORATION (EXCLUDING PATINA)
STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended, Year Ended,
December 31 December 31
% %
Change 1997 1996 Change 1997 1996
Revenues
Oil and gas sales 16% $38,224 $32,889 25% $133,851 $107,143
Gas transportation,
processing and
marketing 312 4,158 7,004 17,655
Gains on sales of
equity interests
in investees -- 65,224 32,800 69,343
Gains (losses) on
sales of properties 42 (2,323) 8,708 8,786
(61%) 38,578 99,948 (10%) 182,363 202,927
Expenses
Direct operating 8,872 8,218 35,016 35,118
Cost of gas and
transportation 321 3,933 6,692 15,020
Exploration 4,444 1,375 16,926 4,008
Gross margin (71%) 24,941 86,422 (17%) 123,729 148,781
General and administrative 4,373 4,344 16,566 10,993
Financing costs, net 2,381 2,082 10,556 8,619
Other expense (income) 3 (121) 1,613 (324)
(Gain) loss on sale of
subsidiary interest (5,437) -- (5,437) 15,481
Depletion, depreciation
and amortization 11,588 10,244 43,599 39,725
Property impairments 2,150 -- 7,275 2,753
Income before taxes,
minority interest and
extraordinary item(86%) 9,883 69,873 (31%) 49,557 71,534
Provision for income taxes
Current 475 -- 975 33
Deferred 3,494 3,996 16,881 4,707
3,969 3,996 17,856 4,740
Minority interest in
subsidiaries -- 4,227 616 4,866
Income before
extraordinary item(90%) 5,914 61,650 (50%) 31,085 61,928
Extraordinary item-
early extinguishment
of debt, net of
income tax benefit
of $1,533 -- -- 2,848 --
Net income (90%) 5,914 61,650 (54%) 28,237 61,928
Preferred dividends 1,330 1,552 5,978 6,210
Net income applicable
to common $4,584 $60,098 $22,259 $55,718
Net income per common
share before
extraordinary item $0.14 $1.93 $0.82 $1.78
Net income per common share $0.14 $1.93 $0.73 $1.78
Weighted average shares
outstanding 31,975 31,145 30,588 31,308
Cash flow available
to common (73%) $21,298 $79,940 (17%) $105,942 127,291
Cash flow per
common share (74%) $0.67 $2.57 (15%) $3.46 $4.07
Oil production
(Bbl/day) (8%) 5,295 5,728 (6%) 5,617 6,000
Gas production
(Mcf/day) 35% 123,180 91,043 30% 113,361 87,139
Equivalent barrels
(BOE/day) 24% 25,825 20,902 19% 24,510 20,525
Average oil price
(per Bbl) (22%) $16.86 $21.51 (10%) $18.24 $20.34
Average gas price
(per Mcf) 3% $2.65 $2.57 19% $2.33 $1.96
Average price per
BOE (6%) $16.09 $17.10 5% $14.96 $14.26
Note: The above excludes amounts attributable to Patina Oil and Gas
Corporation.
SNYDER OIL CORPORATION
STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
% %
Change 1997 1996 Change 1997 1996
Revenues
Oil and gas sales (39%) $38,224 $62,528 9% $207,216 $189,327
Gas transportation,
processing and
marketing 312 4,158 7,004 17,655
Gains on sales of
equity interests
in investees -- 65,224 32,800 69,343
Gains (losses) on
sales of properties 42 (2,323) 8,708 8,786
(70%) 38,578 129,587 (10%) 255,728 285,111
Expenses
Direct operating 8,872 13,175 48,523 49,638
Cost of gas and
transportation 321 3,933 6,692 15,020
Exploration 4,444 1,432 17,046 4,232
Gross margin (78%) 24,941 111,047 (15%) 183,467 216,221
General and
administrative 4,373 5,834 20,363 17,143
Financing costs, net 2,381 6,599 23,029 22,923
Other expense (income) 3 (463) 935 (1,327)
(Gain) loss on sale of
subsidiary interest (5,437) -- (5,437) 15,481
Depletion, depreciation
and amortization 11,588 23,111 79,862 84,547
Property impairments 2,150 -- 7,275 2,753
Income before taxes,
minority interest and
extraordinary item(87%) 9,883 75,966 (23%) 57,440 74,701
Provision for income taxes
Current 475 -- 975 33
Deferred 3,494 3,996 16,881 4,313
3,969 3,996 17,856 4,346
Minority interest in
subsidiaries -- 6,374 4,119 7,405
Income before
extraordinary item(91%) 5,914 65,596 (44%) 35,465 62,950
Extraordinary item
-early extinguishment
of debt, net of income
tax benefit of $1,533 -- -- 2,848 --
Net income (91%) 5,914 65,596 (48%) 32,617 62,950
Preferred dividends 1,330 1,552 5,978 6,210
Net income applicable
to common $4,584 $64,044 $26,639 $56,740
Net income per common
share before
extraordinary item $0.14 $2.06 $0.96 $1.81
Net income per
common share $0.14 $2.06 $0.87 $1.81
Weighted average
shares outstanding 31,975 31,145 30,588 31,308
Cash flow available
to common (78%) $21,298 $98,957 (14%) $150,208 $175,504
Cash flow per
common share (79%) $0.67 $3.18 (12%) $4.91 $5.61
Oil production
(Bbl/day) (52%) 5,295 11,012 (10%) 9,561 10,611
Gas production
(Mcf/day) (25%) 123,180 164,447 11% 168,873 152,570
Equivalent barrels
(BOE/day) (33%) 25,825 38,420 5% 37,707 36,040
Average oil price
(per Bbl) (24%) $16.86 $22.26
Average price per
BOE (9%) $16.09 $17.69 5% $15.06 $14.35
SOURCE Snyder Oil Corporation
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CONTACT:
Rodney L. Waller of Snyder Oil Corporation,
817-882-5937
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
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