<<In the beginning there was talk of possibly being acquired at then end of the summer, and the source was not macker, it was from a member of MTEI. However, face to face confrontation proved otherwise. Fundamentals have changed, unless they are in a quiet period.>>
A lot of soul searching going on here today, but would anyone like to comment on this press release? (...swap... for the remaining 50% of shares for MTEI):
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Friday July 24, 12:24 pm Eastern Time
Company Press Release
Northstar Cash Flow Hits $62 Million in First Six Months
CALGARY, Alberta--(BUSINESS WIRE)--July 24, 1998--Northstar Energy
Corporation (TSE: NEN - news; ME: NEN - news; Alberta Stock Exchange:
NEN - news) today announced its financial and operating results for the
six months ended June 30, 1998.
For the six month period, cash flow was $62.3 million, or $0.91 per
share. In the second quarter, cash flow from operations was $35.2
million, or $0.51 per share, on revenues of $61.3 million. Earnings for
the first six months were $32.7 million, or $0.48 per share, which
included $2.5 million, or $0.04 per share, in the second quarter.
Natural gas production for the second quarter averaged 202 million cubic
feet per day, while oil and natural gas liquids production averaged
18,000 barrels per day. John Hagg, chief executive officer, stated that
''during the second quarter, our natural gas production was constrained
by modifications to the Coleman gas plant and scheduled maintenance at
some of the company's other production facilities. In addition, warmer
than expected weather in the late winter resulted in a number of new gas
discoveries not being tied in prior to spring break-up. With the
completion of the Coleman plant modifications at the end of July, we
expect natural gas production volumes to increase during the third
quarter.'' Mr. Hagg went on to say that ''crude oil and natural gas li
quids volumes are down from the first quarter reflecting the sale, in
March, of 3,300 barrels per day of non-core oil production.'' The
company is scheduled to close the previously announced swap of its 25
percent interest in Morrison Middlefield Resources Limited for the
remaining 50 per cent of the shares of Mountain Energy Inc. [OTC BB:MTEI
- news] in the third quarter which will increase oil and liquids
production from the effective date of June 30, 1998.
Northstar's average natural gas price in the second quarter was $2.19
per thousand cubic feet, reflecting higher spot prices in Alberta and
the restructuring of a long term contract. Crude oil and natural gas
liquids prices averaged $15.76 per barrel. Mr. Hagg noted that ''the
price realized by the company for oil and natural gas liquids reflects
continuing low world oil prices and high crude oil quality
differentials, through the period.'' Operating costs for the three
months ended June 30, 1998 were $4.08 per barrel of oil equivalent, up
$0.15 from the first quarter, primarily as a result of major maintenance
activities. In commenting on the operating costs, Mr. Hagg indicated
that ''while operating costs are slightly above the company's historic
average, we expect those costs to decline throughout the remainder of
1998.''
Long-term debt was steady quarter-over-quarter, at $443 million. John
Richels, chief financial officer noted that ''since most of the
company's 1998 capital expenditures occurred during the first and second
quarters, we expect long-term debt to decrease significantly by
year-end.''
FINANCIAL HIGHLIGHTS
for the periods ended June 30
Three months Six months
1998 1997 1998 1997
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(millions, except per share amounts)
Revenue (net of royalties) $61.3 $58.7 $114.5 $129.3
Cash flow from operations 35.2 38.3 62.3 86.1
Cash flow per share - basic 0.51 0.54 0.91 1.09
- fully diluted 0.49 0.51 0.87 1.04
Net earnings 2.5 3.1 32.7 41.0
Earnings per share - basic 0.04 0.08 0.48 0.52
- fully diluted 0.05 0.08 0.46 0.50
Capital expenditures (net) (5.4) 38.9 45.3 122.8
Long term debt 443.4 432.2 443.4 432.2
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OPERATING HIGHLIGHTS
for the periods ended June 30 Three months Six months
1998 1997 1998 1997
--------------------------------------------------------------
Natural gas production (mmcf/d) 202 208 203 195
Average price ($/mcf) 2.19 1.62 1.98 1.92
Wellhead netback ($/mcf) 1.58 1.14 1.34 1.34
Oil and liquid production
(bbls/d) 18,000 21,600 19,900 22,200
Average price ($/bbl) 15.76 20.90 15.74 22.28
Wellhead netback ($/bbl) 8.79 11.81 8.86 12.71
Operating costs ($/boe) 4.08 3.19 4.00 3.26
Wells drilled (gross) 20 33 180 150
Natural gas 5 2 95 68
Oil 7 17 36 28
Dry and other 8 14 49 54
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weighted average shares outstanding
for six month period 68.2 million (1997 - 79.2 million)
shares outstanding at
June 30, 1998 68.3 million (1997 - 67.9 million)
Northstar Energy Corporation is engaged in petroleum and natural gas
exploration and production in Canada. On June 29, 1998 the company
announced it had agreed to merge with Oklahoma-based Devon Energy
Corporation [AMEX:DVN - news]. Northstar shareholders will receive 0.227
fractional Devon common equivalent shares for each existing Northstar
share subject to approval by the shareholders of both companies.
Northstar's common shares are listed on the Toronto, Montreal and
Alberta stock exchanges under the trading symbol NEN.
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Contact:
Northstar Energy Corporation
John A. Hagg, 403/213-8000
403/ 213-8100 (fax)
or
Northstar Energy Corporation
John Richels, 403/213-8000
403/213-8100 (fax)
or
Northstar Energy Corporation
Gretchen Thompson, 403/213-8000
403/213-8100 (fax)
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