EARNINGS / Northstar Announces First Quarter Financial Results
TSE, ME, ASE SYMBOL: NEN
APRIL 30, 1998
CALGARY, ALBERTA--Northstar Energy Corporation today announced the
company's financial and operating results for the three months
ended March 31, 1998. In the first quarter, cash flow was $27.1
million, or $0.40 per share, on revenues of $53.2 million. During
that same period, net earnings were $30.2 million, or $0.44 per
share, which included a $40.1 million pre-tax gain on the sale of
the company's West Windsor Power cogeneration facility.
Natural gas production for the first quarter averaged 204 million
cubic feet per day (mmcf/d), while oil and natural gas liquids
production averaged 21,900 barrels per day. John Hagg, chief
executive officer, noted that "natural gas production from the
Coleman field has been restricted by approximately 10 mmcf/d over
the past three months because the Coleman plant is undergoing
processing modifications to increase the throughput capacity."
The modifications are expected to be completed late in the second
quarter. The company recently announced that it had sold $75
million of non-core properties, representing approximately 3,800
barrels of oil equivalent of daily production.
During the first quarter, Northstar's natural gas price averaged
$1.78 per thousand cubic feet, while crude oil and natural gas
liquids prices averaged $15.73 per barrel. Mr. Hagg noted that
"the drop in oil price reflects both the declining world oil price
and higher crude oil differentials." Operating expenses for the
three months were $3.93 per barrel of oil equivalent, up $0.01
from the fourth quarter of 1997. In commenting on the results,
Mr. Hagg indicated that "operating expenses are above our expected
annual average, reflecting the normally higher operating expenses
experienced in the industry during the first quarter of the year."
General and administrative expenses for the three month period
were $0.80 per equivalent barrel.
Long-term debt at the end of the first quarter was $443 million,
up slightly from $435 at December 31, 1997, reflecting the
company's active winter drilling program. John Richels, chief
financial officer, noted that "with our ongoing non-core asset
divestiture program and less intensive capital expenditure program
during the remainder of the year, we expect long-term debt to be
approximately $350 million by year end."
/T/
FINANCIAL HIGHLIGHTS
for the periods ended March 31
1998 1997
Three months Three months
--------------------------------------------------------------
(millions, except per share amounts)
Revenue (net of royalties) 53.2 70.6
Cash flow from operations 27.1 47.8
Cash flow per share-basic 0.40 0.55
-fully diluted 0.38 0.53
Net earnings 30.2 37.9
Earnings per share-basic 0.44 0.44
-fully diluted 0.41 0.41
Capital expenditures 50.7 83.9
Long term debt (net of cash) 443.4 114.1
--------------------------------------------------------------
OPERATING HIGHLIGHTS
for the periods ended March 31
--------------------------------------------------------------
Natural gas production (mmcf/d) 204 181
Average price ($/mcf) 1.78 2.27
Wellhead netback ($/mcf) 1.11 1.57
Oil and liquid production (bbls/d) 21,900 22,800
Average price ($/bbl) 15.73 23.59
Wellhead netback ($/bbl) 8.93 13.56
Operating costs ($/boe) 3.93 3.33
Wells drilled (gross) 160 117
Natural gas 90 66
Oil 29 11
Dry and other 41 40
--------------------------------------------------------------
weighted average shares outstanding
for three month period 68.0 million (1997 - 87.0 million)
shares outstanding at
March 31, 1998 68.1 million (1997 - 87.4 million)
/T/
Northstar Energy Corporation is a Canadian company engaged in
petroleum and natural gas exploration and production. The
company's common shares are listed on the Toronto, Montreal and
Alberta stock exchanges under the trading symbol NEN.
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