TMBR/Sharp Drilling Reports Third-Quarter Earnings Vs. Loss
MIDLAND, Texas, Feb. 11 /PRNewswire/ --
TMBR/Sharp Drilling, Inc. (Nasdaq: TBDI) today reported net income of
$424,000, or 9 cents per basic share (8 cents diluted), for the fiscal third
quarter ended December 31, 1999, compared to a loss of $820,000, or 17 cents
per share, in the same three months of 1998. Revenues more than doubled to
$5.6 million from $2.2 million.
For the nine months ended December 31, 1999, TMBR/Sharp reported a loss of
$579,000, or 12 cents per share, vs. a year-earlier loss of $568,000, or
12 cents per share, on a slight decline in revenues to $12.0 million from
$12.8 million.
Rig utilization rates in the most recent quarter were 43%, compared to 17%
in the year-earlier period. For the nine months ended December 31, 1999, the
rig utilization rate was 30%, compared to 31% in the same period of 1998.
Thomas C. Brown, Chairman, commented that although the Company has seen an
increase in demand for rigs and drilling services during the six months ended
December 31, 1999, nine-month results were negatively affected by "dismal"
first quarter results, when rig utilization rates were only 16%.
Mr. Brown also noted that the Company's oil and gas revenues increased
approximately 127% and 53% for the three and nine months ended December 31,
1999, respectively, when compared to the same periods in 1998. The increase
can be attributed to higher oil and natural gas prices and the production from
recently completed wells. The Company is presently experiencing mechanical
problems in the completion of its Touchstone #1 well (50% working interest)
located in Reeves County, Texas. If the Company is not successful in
completing this well, then a dry hole charge of approximately $500,000 will be
recognized.
Higher product prices have stimulated demand for the Company's rigs and
has led to an increase in both drilling rates and utilization in the last
three months.
(In thousands, except per share amounts)
Three months ended Nine months ended
December 31: December 31:
1999 1998 1999 1998
Revenues $ 5,574 $ 2,214 $ 11,992 $ 12,781
Net income (loss) 424 (820) (579) (568)
Per share
Basic $ .09 $ (.17) $ (.12) $ (.12)
Diluted $ .08 $ (.17) $ (.12) $ (.12)
Weighted average
shares outstanding
Basic 4,872 4,711 4,729 4,711
Diluted 5,253 4,711 4,729 4,711
SOURCE TMBR/Sharp Drilling, Inc.
CO: TMBR/Sharp Drilling, Inc.
ST: Texas
IN: OIL
SU: ERN
02/11/2000 09:17 EST prnewswire.com |
