Clayton Williams Energy Announces 1996 Results and 1997 Drilling Plans
MIDLAND, Texas, March 18 /PRNewswire/ -- Clayton Williams Energy Inc reported
today net income for 1996 of $13.7 million, or $1.77 per share, on revenues
of $64.9 million, compared to a net loss of $8.1 million, or $1.31 per share,
on revenues of $49.3 million for 1995. Cash flow from operating activities
increased to $40.3 million in 1996 from $24.2 million in 1995.
For the quarter ended December 31, 1996, the Company reported net income
of $6.4 million, or $0.77 per share, on revenues of $19.8 million, compared
to a net loss of $10.8 million, or $1.46 per share, on revenues of $11.6
million for 1995.
The Company also reported proved oil and gas reserves at December 31, 1996 of
8.5 million barrels of oil and 35.8 Bcf of natural gas, as estimated by
independent engineers. Discounted future net revenues at December 31, 1996,
computed in accordance with Securities and Exchange Commission guidelines,
were $160.7 million.
During 1997, the Company will continue the development of its 117,000 net acres
in the North Giddings Block in East Central Texas by drilling up to 36 wells.
The Company continues to evaluate drilling results in the southern portion
of its North Giddings Block, and is modifying its completion technique
with respect to wells drilling in this area.
To expand its Cretaceous Trend drilling opportunities, the Company has
entered into two farm-in agreements covering up to approximately 50,000
net acres located primarily in Robertson County, Texas. The Company anticipates
commencing drilling activities by May, 1997 with the primary targets of the
Buda and Georgetown formations.
The Company also anticipates expanding its 1997 exploration to include
newly acquired areas in East and South Texas, Louisiana and Mississippi,
all of which will be outside of the Trend. The Company estimates spending
approximately $8 million on these projects, a substantial portion of which will
be for seismic and leasing activities.
The Company has been able to expand the acreage covered by its Cotton Valley 3-D
seismic survey from approximately 20,000 to 50,000 net acres while increasing
the estimated cost of the survey only $900,000 from $3.1 million to
approximately
$4.0 million. The Company will continue to evaluate opportunities to expand
the area covered by the survey, which could increase the cost of the survey.
Due to the additional acreage included in the survey, the Company expects
completion during the third quarter of 1997, with any drilling resulting
from the survey beginning in the fourth quarter of 1997.
Clayton Williams Energy, Inc. is an independent energy company located
in Midland, Texas.
Certain statements contained herein constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995
(the "Reform Act"). Such forward-looking statements involve known and unknown
risks, uncertainties, and other factors which may cause the actual results,
performance, or achievements of the Company to be materially different
from any future results, performance, or achievements expressed or implied
by such forward-looking statements. Such factors include, among others,
the following: the volatility of oil and gas prices, the Company's drilling
results, the Company's ability to replace short-lived reserves, the availability
of capital resources, the reliance upon estimates of proved reserves, operating
hazards and uninsured risks, competition, government regulation, the ability of
the Company to implement its business strategy, and other factors referenced
in the Company's public filings with the Securities and Exchange Commission.
CLAYTON WILLIAMS ENERGY, INC.
SELECTED FINANCIAL AND OPERATING DATA
(Dollars in thousands, except per unit data)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
(Unaudited)
STATEMENT OF OPERATIONS:
REVENUES
Oil and gas sales $18,474 $10,750 $60,610 $43,883
Natural gas services 1,367 894 4,281 5,388
Total revenues 19,841 11,644 64,891 49,271
COSTS AND EXPENSES
Lease operations 3,968 3,302 14,776 13,533
Exploration 1,118 692 1,633 1,555
Natural gas services 1,074 676 3,437 3,714
Depreciation, depletion
and amortization 6,015 5,099 23,758 25,110
Impairment of property
and equipment --- 10,259 1,186 10,259
General and administrative 867 969 3,266 3,708
Total costs and expenses 13,042 20,997 48,056 57,879
Operating income (loss) 6,799 (9,353) 16,835 (8,608)
OTHER INCOME (EXPENSE)
Interest expense (657) (1,269) (3,440) (5,493)
Other 275 (176) 335 6,022
Total other income (expense) (382) (1,445) (3,105) 529
INCOME (LOSS) BEFORE INCOME
TAXES 6,417 (10,798) 13,730 (8,079)
INCOME TAX EXPENSE --- --- --- ---
NET INCOME (LOSS) $ 6,417 $(10,798) $13,730 $(8,079)
Net income (loss) per
common share $ .77 $ (1.46) $ 1.77 $ (1.31)
Weighted average common
shares outstanding
(in thousands) 8,322 7,395 7,775 6,165
OTHER OPERATING DATA:
Net cash provided by
operating activities:
Total $10,259 $ 4,515 $40,306 $24,203
Per common share $ 1.23 $ .61 $ 5.18 $ 3.93
Net production:
Oil (MBbls) 602 455 2,203 1,831
Gas (MMcf) 1,401 1,469 5,584 6,845
MBOE 836 700 3,134 2,972
Average sales price:
Oil ($/Bbl) $ 23.81 $ 17.19 $ 20.85 $ 17.35
Gas ($/Mcf) $ 3.16 $ 2.03 $ 2.65 $ 1.77
December 31,
1996 1995
CONDENSED BALANCE SHEET:
Current assets $15,962 $10,910
Property and equipment, net 87,561 82,146
Other assets 75 105
Total assets $103,598 $ 93,161
Current liabilities $ 19,384 $ 24,627
Long-term debt 18,000 33,538
Stockholders' equity 66,214 34,996
Total liabilities and
stockholders' equity $103,598 $ 93,161
SOURCE Clayton Williams Energy, Inc. |
