EARNINGS / Crestar Q2 results, Part II
<< HIGHLIGHTS
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Three months ended Six months ended
June 30 June 30
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1998 1997 1998 1997
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FINANCIAL (millions of dollars, unless otherwise indicated)
Revenue 125.6 119.8 249.4 269.2
Net Income (loss) (14.3) 7.2 (30.6) 25.8
Per share (dollars)
Basic (0.25) 0.15 (0.54) 0.52
Fully diluted (0.25) 0.14 (0.54) 0.51
Cash flow from operations 50.0 57.9 98.6 136.1
Per share (dollars)
Basic 0.86 1.18 1.75 2.77
Fully diluted 0.83 1.13 1.68 2.67
Net capital expenditures 39.4 73.2 179.1 179.0
Long term debt at period end 741.1 410.1 741.1 410.1
Shareholders' equity 655.5 483.8 655.5 483.8
Shares outstanding (millions)
At period end 57.9 49.3 57.9 49.3
Weighted average 57.9 49.3 56.4 49.2
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OPERATING Net undeveloped land
(thousands of acres) 3,216 3,105 3,216 3,105
Drilling activity
(gross/net wells drilled) 77/56 122/105 211/166 246/214
Sales
Natural gas (mmcf/d) 414 320 419 324
Liquids(1) (mbbls/d) 48.6 40.1 50.6 40.0
Equivalence(2) (mBOE/d) 90.0 72.1 92.5 72.4
Average realization
Natural gas ($/mcf) 1.98 1.72 1.89 1.95
Liquids(1) ($/bbl) 11.53 19.08 11.60 21.34
Netback ($/BOE)
Product revenue 15.36 18.25 14.91 20.53
Royalties 2.55 3.28 2.45 4.03
Operating expense 4.30 4.20 4.25 4.22
General and adminstrative
expense 0.82 0.72 0.85 0.70
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Operating netback 7.69 10.05 7.36 11.58
(1) Liquids includes volumes of crude oil, natural gas liquids and
condensate
(2) Natural gas is converted to barrels of oil equivalent (BOE) at 10
thousand cubic feet (10 mcf) of gas per barrel
CONSOLIDATED STATEMENT
OF OPERATIONS AND RETAINED EARNINGS
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Three months ended Six months ended
June 30 June 30
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(million of dollars, except 1998 1997 1998 1997
per share data)
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REVENUES
Petroleum and natural gas 125.6 119.8 249.4 269.2
Less: Royalties 20.9 21.5 41.1 52.9
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104.7 98.3 208.3 216.3
Other 0.5 0.9 1.2 1.8
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105.2 99.2 209.5 218.1
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EXPENSES
Operating 35.1 27.6 71.0 55.3
General and administrative 6.7 4.7 14.2 9.2
Interest on long term debt 12.2 6.3 23.3 12.3
Foreign exchange 1.2 0.5 2.2 0.6
Capital taxes 1.0 0.8 2.0 1.6
Depletion and depreciation 66.9 47.1 135.8 94.2
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123.1 87.0 248.5 173.2
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Income (loss) before income taxes (17.9) 12.2 (39.0) 44.9
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INCOME TAXES
Current - 1.6 - 3.3
Deferred (3.6) 3.4 (8.4) 15.8
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(3.6) 5.0 (8.4) 19.1
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NET INCOME (LOSS) (14.3) 7.2 (30.6) 25.8
Retained earnings,
beginning of period 139.9 142.7 156.2 124.1
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RETAINED EARNINGS, END OF PERIOD 125.6 149.9 125.6 149.9
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NET INCOME (LOSS) PER SHARE
Basic (0.25) $0.15 $(0.54) $0.52
Fully diluted (0.25) $0.14 $(0.54) $0.51
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CONSOLIDATED BALANCE SHEET
June 30 December 31
(millions of dollars) 1998 1997
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ASSETS
Current assets 79.4 83.6
Property, plant and equipment 1,724.6 1,675.5
Other 29.6 18.8
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1,833.6 1,777.9
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities 93.1 111.9
Long term debt 741.1 746.4
Deferred income taxes 283.1 293.6
Deferred credits and other obligations 60.8 56.9
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1,178.1 1,208.8
Shareholders' equity
Share capital 529.9 412.9
Retained earnings 125.6 156.2
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655.5 569.1
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1,833.6 1,777.9
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FINANCIAL RATIOS
The following financial ratios are provided in connection with the
Company's continuous offering of medium term notes pursuant to the shelf
prospectus dated September 19, 1997.
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Interest coverage on long term debt (times)(1)
Net income(2) 0.7
Funds from operations(3) 6.6
Net tangible asset coverage on long term debt (times)(4) 2.3
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(1) The interest coverage ratios are calculated on a proforma basis for
the year ended June 30, 1998. Accordingly, the calculations are based
on Crestar's financial information and adjusted to include Grad &
Walker's historical financial information and the impact of the
acquisition as if it had occurred on July 1, 1997.
(2) Net income plus income taxes plus interest expense on long term debt,
divided by interest expense on long term debt.
(3) Funds from operations plus interest on long term debt, divided by
interest on long term debt.
(4) Total assets minus intangible assets and current and other
liabilities, divided by long term debt based on the consolidated
balance sheet of the Company as at June 30, 1998.
CONSOLIDATED STATEMENT OF CASH FLOW
Three months ended Six months ended
June 30 June 30
(millions of dollars,
except per share data) 1998 1997 1998 1997
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OPERATING ACTIVITIES
Net income (loss) (14.3) 7.2 (30.6) 25.8
Add (deduct) items not involving cash:
Depletion and depreciation 66.9 47.1 135.8 94.2
Deferred income taxes (3.6) 3.4 (8.4) 15.8
Other 1.0 0.2 1.8 0.3
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Cash flow from operations 50.0 57.9 98.6 136.1
Net changes in working capital,
excluding cash (24.0) (23.0) (18.1) 6.9
Deferred revenue drawdowns (0.1) (0.1) (0.2) (0.2)
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25.9 34.8 80.3 142.8
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FINANCING ACTIVITIES
Net repayment of long term debt 29.2 39.6 (18.6) 9.7
Issue of common shares 0.1 1.0 114.9 3.4
Increase (decrease) in other
liabilities 0.1 (0.1) - 1.4
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29.4 40.5 96.3 14.5
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Cash available for investing
activities 55.3 75.3 176.6 157.3
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INVESTING ACTIVITIES Expenditures on property, plant
and equipment 47.2 85.6 198.8 191.9
Proceeds from disposition of
property, plant and equipment (7.8) (12.4) (19.7) (12.9)
Expenditures on abandonment
and restoration 0.4 1.1 1.0 2.3
Increase (decrease) in other
assets - 0.7 (0.1) 1.3
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39.8 75.0 180.0 182.6
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INCREASE (DECREASE) IN CASH(1) 15.5 0.3 (3.4) (25.3)
Cash, beginning of period (19.5) (11.5) (0.6) 14.1
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CASH, END OF PERIOD (4.0) (11.2) (4.0) (11.2)
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Cash flow from operations, per share
Basic $0.86 $1.18 $1.75 $2.77
Fully diluted $0.83 $1.13 $1.68 $2.67
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(1) Cash is comprised of cash, short term investments and short term
bank indebtedness Caution to the Reader
The corporate information contained herein contains forward looking
(forecast) information. The reader is cautioned that assumptions used in the
preparation of such information, although considered reasonable by Crestar at
the time of preparation, may be proved to be incorrect. Actual results
achieved during the forecast period will vary from the information provided
herein and the variations may be material. There is no representation by
Crestar that actual results achieved during the forecast period will be the
same in whole or in part as those forecast.
CORPORATE INFORMATION
--------------------- DIRECTORS
Harry G. Schaefer (Chairman) Calgary, Alberta Alan A. Baker
Houston, Texas Anne L. Fraser Calgary, Alberta Richard F. Haskayne
Calgary, Alberta S. Barry Jackson Calgary, Alberta George J. McLeod
Calgary, Alberta Roland Priddle Victoria, British Columbia
Brian G. Taylorson Midland, Michigan Arthur H. Willms
Vancouver, British Columbia EXECUTIVE OFFICERS S. Barry Jackson
President and Chief Executive Officer R. Daniel Bailie
Vice President, Development Larry R. Bell Vice President, Operations
Earle L. Forgues Vice President, Marketing John F. Scott
Vice President, Law and Secretary James C. Smith
Vice President, Finance and Chief Financial Officer Ken E. West
Vice President, Exploration Barbara L. Williams Vice President,
Accounting and Administration SHARE INFORMATION
Stock Exchange Listings
Crestar Energy Inc. common shares are listed on The Toronto Stock
Exchange (TSE) and the Montreal Exchange (ME) and trade under the symbol CRS.
Crestar Energy is included in the TSE 100 Composite Index and the TSE 300
Composite Index. 1998 TRADING SUMMARY(1) High - $24.00 Low - $17.25
Close(2) - $17.45 Volume - 18.3 million shares
Trading Value - $373.1 million
(1) Statistics provided combine trading histories from the TSE and the ME
for the period ended June 30, 1998.
(2) Close is the closing price on the TSE on June 30, 1998.
TRANSFER AGENT Montreal Trust Company of Canada
Transfer locations in Calgary, Vancouver, Toronto and Montreal
UNSECURED DEBT RATINGS Canadian Bond Rating Service B++ (High)
Dominion Bond Rating Service BBB (high) HEAD OFFICE
Crestar Energy Inc. Suite 3000 333 Seventh Avenue S.W.
Calgary, Alberta T2P 2Z1 Tel. (403) 231-6700 Fax. (403) 231-3833
Mailing Address P.O. Box 888 Calgary, Alberta T2P 4M8
WEBSITE ADDRESS crestarenergy.com E-MAIL ADDRESS
ir(atcrestarenergy.com INVESTOR RELATIONS Tracy M. Lutz
Manager, Corporate Communications Tel. (403) 231-6846
Fax. (403) 231-3801 James C. Smith
Vice President, Finance and Chief Financial Officer Tel. (403) 231-
-30-
For further information: S. Barry Jackson, President and Chief
Executive Office, (403) 231-3808; James C. Smith, Vice President, Finance and
Chief Financial Officer, (403) 231-3880; or Tracy M. Lutz, Manager, Corporate
Communications, (403) 231-6846, Crestar Website: crestarenergy.com,
E-mail: ir@crestarenergy.com |
