ENERGY TRUSTS / Reserve Royalty Announces Financial Results
TSE SYMBOL: ROI
APRIL 27, 1998
CALGARY, ALBERTA--Reserve Royalty Corporation (TSE:ROI) announced
its financial results for the year ended December 31, 1997. The
Corporation continued to demonstrate growth in funds from
operations and earnings through the creation of gross overriding
royalties in the oil & gas industry.
Revenue for the period was $14,560,000 compared with $8,740,000
reported for the same period in 1996. This 67 percent increase
reflected the impact of royalty interests created in 1997 and the
acquisition of Jordan Petroleum Ltd. on December 19, 1997.
Funds from operations for the period increased 99.7 percent to
$11,074,000 versus $5,545,000 for the comparable period in 1996.
On a per share basis, this represented $0.21 for 1997 compared
with $0.13 for 1996.
The Corporation's reported earnings are $5,730,000 for the year.
This represented a 90.7 percent increase in earnings compared with
the $3,005,000 reported for 1996. Earnings per share were $0.11
versus $0.07 for 1996.
Debt on December 31, 1997 was $113 million as a result of the
acquisition of Jordan Petroleum Ltd.
/T/
CONSOLIDATED BALANCE SHEETS
At December 31
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(thousands) 1997 1996
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Assets
Current
Cash and short-term deposits $ 12 $ 12,591
Marketable securities, at cost 2,986 643
(market $5,196; 1996 - $1,116)
Accounts receivable 14,302 2,378
Inventory, prepaid expenses
and deposits 5,724 93
Notes receivable 2,200 100
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25,224 15,805
Petroleum and natural gas properties 360,707 34,547
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$ 385,931 $ 50,352
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Liabilities and Shareholders' Equity
Current
Accounts payable and
accrued liabilities $ 27,755 $ 2,452
Long-term debt 113,300 764
Hedging contracts
assumed on acquisition 2,327 -
Future site restoration provision 2,504 -
Deferred income taxes 18,615 -
---------------------------
164,501 3,216
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Shareholders's equity
Share capital 212,728 44,164
Retained earnings 8,702 2,972
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221,430 47,136
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$ 385,931 $ 50,352
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CONSOLIDATED STATEMENTS OF EARNINGS & RETAINED EARNINGS
Years Ended December 31
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(thousands, except per share amounts) 1997 1996
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Resource revenue $ 11,907 $ 8,360
Investment and other income 2,653 380
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14,560 8,740
Expenses:
Administration (1,288) (1,315)
Interest (228) (217)
Production (1,350) (1,014)
Royalties (510) (603)
Depletion, depreciation
and amortization (4,824) (2,540)
------------------------
Earnings before income taxes 6,360 3,051
Provision for income taxes (630) (46)
------------------------
Earnings for the period 5,730 3,005
Retained earnings (deficit),
beginning of year 2,972 (8,121)
Reduction of capital stock to
eliminate deficit - 8,121
Dividend on redemption of
preferred shares - (33)
------------------------
Retained earnings, end of year $ 8,702 $ 2,972
------------------------
Earnings per common share:
Basic $ .011 $ 0.07
Fully diluted $ 0.09 $ 0.07
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CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
Years Ended December 31
--------------------------------------------------------------
(thousands, except per share amounts) 1997 1996
------------------------
Net inflow (outflow) of cash
related to these activities:
Operations
Earnings $ 5,730 $ 3,005
Depletion, depreciation
and amortization 4,824 2,540
Deferred tax 520 -
------------------------
Funds from operations 11,074 5,545
Net change in non-cash working
capital items (4,257) 172
------------------------
Cash provided by operating activities 6,817 5,717
------------------------
Financing
Issue of common shares,
net of issue costs 2,074 2,442
Issue of special warrants,
net of issue costs 162,832 21,109
Long-term debt 112,536 (2,559)
Redemption of preferred shares - (163)
------------------------
Cash provided by financing activities 277,442 20,829
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Investments
Petroleum and natural gas properties (7,684) (12,663)
Proceeds on disposal of petroleum
and natural gas properties 6,596 8,525
Purchase of subsidiary (293,650) (11,576)
Notes receivable (2,100) 879
------------------------
Cash used in investing activities (296,838) (14,835)
------------------------
Increase (decrease) in cash
during the year (12,579) 11,711
Cash and short term deposits,
beginning of year 12,591 880
-----------------------
Cash and short term deposits,
end of year $ 12 $ 12,591
-----------------------
Funds from operations per common share:
Basic $ 0.21 $ 0.13
Fully diluted $ 0.18 $ 0.13
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/T/
Reserve Royalty Corporation is an innovative financial company
which creates gross overriding royalties in the oil & gas industry
through off balance sheet financing for industry partners and by
the redeployment of oil & gas assets acquired by the Corporation. |
