EARNINGS / Chieftain International reports 1st 3 months Results
EDMONTON, April 9 /CNW/ - Chieftain International, Inc. (TSE & AMEX: CID)
today reported cash flow from operations of US$11,964,000 (C$16,948,000) or
US$0.88 (C$1.24) per share for the three month period ended March 31, 1998.
Net income after preferred dividends of US$1,235,000 (C$1,750,000) was
US$556,000 (C$787,000) or US$0.04 (C$0.06) per share.
Four events coincided to dramatically weaken energy prices during the
first quarter of 1998, reducing average prices obtained by Chieftain for oil
by 36%, for U.S. gas by 26% and for U.K. gas by 19%, from the first quarter of
1997. These factors were El Nino, which brought an extremely mild winter to
North America and Western Europe, the Asian financial crisis, the decision by
OPEC in late 1997 to increase its production quota and the United Nations
decision to allow increased oil production from Iraq.
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Financial and Operating Results
(in thousands except per share amounts and volumes)
U.S. dollars Canadian dollars
--------------- ----------------
Three Months ended March 31 1998 1997 1998 1997
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Gross revenue $18,718(x) $22,563 $26,516(x) $31,233
Cash flow before dividends
on preferred shares of a
subsidiary $13,199 $17,907 $18,698 $24,789
Cash flow from operations $11,964 $16,672 $16,948 $23,079
Per common share
- basic $ 0.88 $ 1.23 $ 1.24 $ 1.70
- fully diluted $ 0.74 $ 1.01 $ 1.05 $ 1.40
Depletion and amortization $10,327 $ 9,497 $14,630 $13,147
Income before dividends on
preferred shares of a
subsidiary $ 1,791 $ 5,159 $ 2,537 $ 7,141
Preferred share dividends $ 1,235 $ 1,235 $ 1,750 $ 1,710
Net income applicable to
common shares $ 556 $ 3,924 $ 787 $ 5,431
Per common share
- basic $ 0.04 $ 0.29 $ 0.06 $ 0.40
- fully diluted $ 0.04 $ 0.28 $ 0.06 $ 0.38
Working capital at March 31 $ 9,225 $47,691 $13,068 $66,019
Average gas equivalent
production, (converted at
1b = 6 mcf), mmcfde 103 99
Average gas production, mmcfd 83 84
Average oil & ngls
production, bd 3,269 2,528
Average net oil price $ 13.84 $ 21.73 $ 19.61 $ 30.08
Average net price, all
gas sales $ 2.12 $ 2.82 $ 3.00 $ 3.90
Average net price, U.S.
gas sales $ 2.24 $ 3.02 $ 3.17 $ 4.18
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(x) Includes a US$1.6 (C$2.3) million successful claim for recovery of
past years' excess transportation charges.
Chieftain has no debt. The Company reports financial information in U.S.
dollars. For convenience, Canadian dollar equivalents are provided using
exchange rates as at March 31, 1998 and 1997. |
