Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: SofaSpud who wrote (10803)	5/21/1998 3:06:00 AM
From: Kerm Yerman	Respond to of 15196

SERVICE SECTOR / Ensign Resource Service Group Inc. 1st Quarter Results ENSIGN GROUP REPORTS FIRST QUARTER FINANCIAL RESULTS CALGARY, May 20 /CNW/ - Ensign Resource Service Group Inc. announces quarterly results for the three months ended March 31, 1998. The Company achieved record income levels in the first quarter of 1998 due to an expanded rig fleet and a strong winter drilling season in both Canada and the United States. The Ensign Group generated revenues of $161.6 million for the three months ended March 31, 1998, a 28% increase from revenue levels of $126.1 million recorded during the corresponding period in 1997. Net income increased 64% to $25.0 million ($1.20 per share) for the quarter ended March 31, 1998, compared to net income of $15.2 million ($0.74 per share) in the first quarter of the prior year. Cash flow for the Company was $30.9 million ($1.49 per share) in the first three months of 1998, an improvement of 51% over the $20.5 million ($1.00 per share) generated in the three months ended March 31, 1997. The Company's rig fleet consisted of 149 drilling rigs and 96 well servicing rigs at March 31, 1998, compared to 139 drilling rigs and 86 well servicing rigs at March 31, 1997. A larger rig fleet, combined with continued high levels of activity in Canada and higher activity levels in the United States in the first quarter of 1998 enabled the Ensign Group to generate record income levels for the quarter. Cash flow generated by the Ensign Group has been utilized to pay dividends of $4.7 million ($0.225 per common share) and partially finance the recent acquisition of Artisan Corporation. As previously reported, the acquisition of Artisan Corporation adds 33 drilling rigs, 19 well service rigs, 11 coiled tubing service rigs and a manufacturing and production services division to the Ensign Group. The addition of Artisan will help offset the impact of the weakness expected in the oil and natural gas industry in the second and third quarters of 1998. Current week oil prices have negatively affected the cash flows of oil and natural gas companies, Ensign Group's customers. It is expected that lower cash flows will reduce capital expenditure plans for the oil and natural gas companies and, consequently, activity for the Company will be somewhat reduced. On the positive side, natural gas prices have remained strong and the Company believes that industry fundamentals in the long-term are very good. Ensign Resource Service Group Inc. is an oilfield contractor involved in oil and natural gas contract drilling in Canada through Artisan Drilling, Champion Drilling, Ensign Drilling and Tri-City Drilling, and well servicing in Canada through Rockwell Servicing, Leyen Oilwell Servicing and Continuous Tubing/Pretec Energy Services. The Company provides contract drilling services in the Rocky Mountain region of the United States through its Caza Drilling Inc. division. The Ensign Group also provides manufacturing and production services to the Canadian oil and natural gas industry through its Opsco '92 Industries division. FINANCIAL HIGHLIGHTS -------------------- ($000s, except per share data) 3 Months Ended March 31 1998 1997 Change -------------------------------------------------------------------- Revenue 161,640 126,055 28% Income 25,039 15,224 64% Income Per Share -Basic $1.20 $0.74 62% -Fully Diluted $1.18 $0.73 62% Cash Flow 30,937 20,511 51% Cash Flow Per Share -Basic $1.49 $1.00 49% -Fully Diluted $1.45 $0.97 49% --------------------------------------------------------------------