Re: Small E&P companies.
Has anyone looked at Texoil (TXLID)? The company just reported $.042 cash flow per share and sells at $3.00/share. With sustained or higher product prices the cash flow should increase and the stock is seemingly cheap. i don't own it yet, but am looking. Anyone have any insight?
Ron Clark
Texoil Reports Increased Revenues, Cash Flows, Profits and Proved Reserves
HOUSTON, Aug. 5 /PRNewswire/ -- Texoil, Inc., (Nasdaq: TXLID; BSE: TXL)
today announced financial and operating results for the second quarter 1999
and the six month period ended June 30, 1999. Oil and gas and related
revenues increased 91% for the six months ended June 30, 1999, over the
comparable period for 1998, to $9.2 million. Cash flow (EBITDA) increased
209% for the six months ended June 30, 1999, over the prior year period, to
$4.6 million. The Company reported net income for the six month period of
$870,000.
Second Quarter 1999
In the second quarter of 1999, Texoil, Inc., realized net income of
$697,000 on revenues of $5.1 million compared to a net loss of $876,000 for
the second quarter of 1998. During the second quarter of 1999, the Company
produced 350,000 barrels of oil equivalent (BOE), up 97% from the second
quarter of 1998. Gas production increased to 1,051 MMcf, up more than 270%
from the second quarter of 1998. Oil production totaled 175,000 Bbls, up 34%
from the second quarter of 1998. The Company's average oil price was 29%
higher, averaging $15.80, compared to $12.24 in the same period of 1998, while
the average gas price was slightly less than the prior year.
Cash flow in the second quarter of 1998 increased to $2.7 million from
$695,000 in the second quarter of 1998.
Six Months Ended June 30, 1999
Texoil's net income for the six months ended June 30, 1999, was $870,000
on revenues of $9.2 million. For the comparable period of 1998, Texoil
reported a net loss of $724,000 on revenues of $4.8 million. Cash flow for
the six month period increased to $4.6 million in 1999, from $1.5 million in
1998. The Company's production increased 110% to 670,000 BOE in 1999,
compared to 319,000 BOE for the first six months of 1998. Gas production
increased to 1,961 MMcf, up 276% from 1998. Oil production increased to
343,000 Bbls, up about 48% from 1998. The Company's average oil price for the
six months ended June 1999 increased 4% to $13.43 per Bbl, compared to $12.88
per Bbl in 1997. Average gas prices decreased 8% in 1999, to $2.07 per Mcf
compared to $2.26 per Mcf in 1998.
Reserves
Based on NYMEX prices as of June 30, 1999, adjusted for actual Company
transportation and quality differentials, the Company's estimated proved
reserves totaled 11.3 million Bbls and 48.4 Bcf, with a discounted present
value (SEC PV 10%) of $95.3 million, including the recent acquisition of
certain properties located in South Texas in July 1999.
Management Comments
Mr. Frank A. Lodzinski, Texoil's Chief Executive Officer, stated "Texoil
has achieved significant increases in production, revenues, cash flows and
profitability. Management is pleased with the operating results realized in
the second quarter and year-to-date periods and currently forecasts continued
profits. The majority of the increased revenues is a direct result of
production increases from our acquisition and development programs. The
recent recovery in oil prices certainly helped, but production increases and
continued reductions in per unit operating and administrative costs were the
major contributors to greater cash flows and profits. The Company has emerged
the commodity price downturn and is well positioned to continue its growth.
The average year-to-date oil price was only $13.43, and the average for the
second quarter was $15.80. Further realized price recovery will have a direct
impact on earnings. In addition, the recent acquisition of South Texas proved
properties, along with development activities is expected to further improve
production, cash flows and earnings."
Mr. Lodzinski also stated, "The Company is presently estimating revenues
and cash flow for the year-ended December 31, 1999, of more than $19.5 million
and $9.4 million, respectively, an increase of 88% and 196%, respectively,
over results of operation for 1998, exclusive of additional acquisitions or
development activities."
Other Matters
Texoil recently concluded the acquisition of a 100% working interest in
the Hagist Ranch field, located in Duval and McMullen Counties, Texas.
Shareholders and interested parties referred to a separate news release dated
July 22, 1999, for this acquisition. In addition, the Company has recently
increased its ownership to 70% and assumed operating responsibilities for its
Greens Lake prospect. Texoil expects to farm-in the remaining 30% and is
currently negotiating with an industry partner to cause the prospect to be
drilled by the first quarter of 2000. Lastly, Texoil tested Marg-Tex
objectives in its Great Scott prospect and failed to encounter commercial
quantities of hydrocarbons.
The Company and its partners are considering alternatives, including
possible sidetrack operations or a farm-out of exploratory rights.
Shareholders and interested parties are referred to "Management's
Discussion and Analysis of Financial Condition and Results of Operations" in
the Company's SEC filings for a discussion of industry conditions, the
Company's business strategy and management goals. As outlined therein,
management's intent is to continue the Company's growth through profitable
acquisitions, development and exploration activities and through effective
financial management.
Texoil, Inc., is an independent energy company engaged in the acquisition
and development of oil and gas reserves through an active and diversified
program which includes purchases of reserves, re-engineering, development and
exploration activities, currently focused in Texas, South Louisiana and the
Texas Gulf Coast. On December 31, 1997, the Company acquired Cliffwood Oil &
Gas Corp., in a reverse merger, which resulted in a comprehensive change of
management and business strategy.
Forward Looking Information
This release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 23E of the
Securities Exchange Act of 1934, as amended. All statements other than
statements of historical facts included in this report, are forward-looking
statements regarding the Company's business strategy, plans, objectives and
beliefs of management for future operations. All statements included in this
release regarding the impact of recent acquisitions of producing properties on
the Company are forward-looking statements and are based on management's best
projections. Although the Company believes the expectations and beliefs
reflected in forward-looking statements included in this release are
reasonable, it can give no assurance that such expectations will prove to have
been correct. Forward-looking statements are not guarantees of future
performance and actual results, developments and business decisions may differ
from those envisioned by such forward-looking statements.
TEXOIL, INC.
Summary Financial Data
(Thousands, Except Per Share and Other Indicated Data)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues
Oil and gas $4,845 $2,366 $8,672 $4,232
Other 245 242 491 554
Total 5,090 2,608 9,163 4,786
Expenses
Lease operating 1,534 1,372 3,034 2,142
Workover 44 29 46 109
Production taxes 338 123 612 226
General
and administrative 449 389 896 827
Total 2,365 1,913 4,588 3,304
Operating Income 2,725 695 4,575 1,482
Depreciation, depletion
amortization 1,069 500 2,094 934
Interest and debt
expense 535 170 1,082 279
Write-down of oil
and gas properties --- 1,208 --- 1,208
Income (loss) before
income taxes 1,121 (1,183) 1,399 (939)
Provision for
deferred income taxes (424) 307 (529) 215
Net Income (Loss) 697 (876) 870 (724)
Per Common Share
Net income (loss)
per share-basic $.11 $(.14) $.13 $(.12)
Net income (loss)
per share-diluted $.10 $(.14) $.13 $(.12)
Weighted average shares
outstanding-basic 6,555 6,388 6,555 6,252
Weighted average shares
outstanding -diluted 6,722 6,388 6,790 6,252
Cash Flow from Operations
Net income (loss) 697 (876) 870 (724)
Depreciation, depletion
and amortization 1,069 500 2,094 934
Interest 535 170 1,082 279
Write-down of oil
and gas properties --- 1,208 --- 1,208
Deferred income taxes 424 (307) 529 (215)
Total 2,725 695 4,575 1,482
Cash Flow per Common Share
Cash flow per
share-basic $.42 $ .11 $.70 $.24
Cash flow per
share - diluted $.41 $ .11 $.67 $.24
Production and Prices
Natural gas, MMcf 1,051 283 1,961 521
Price per Mcf $2.30 $2.33 $2.07 $2.26
Crude oil and
condensate, Mbbls 175 131 343 232
Price per barrel $15.80 12.24 $13.43 12.88
Barrel of oil
equivalent (MBOE) 350 178 670 319
Productions costs
(per BOE) $3.83 $6.60 $3.88 5.55
Current Assets 4,618 2,474
Property, plant and equipment-net 44,923 26,485
Deferred Tax Asset 260 ---
Other assets, net 715 669
Total assets 50,516 29,628
Current liabilities 3,842 3,116
Long-term debt 24,500 5,055
Subordinated convertible debt 10,000 10,000
Shareholders' equity 12,174 11,457
Total liabilities and shareholders' equity 50,516 29,628
SOURCE Texoil, Inc.
CO: Texoil, Inc.
ST: Texas
IN: OIL
SU: ERN
08/05/99 17:29 EDT prnewswire.com |
