EARNINGS / Spire Energy Q1
SPIRE ENERGY LTD. REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER
OF 1998
CALGARY, May 21 /CNW/ - Spire's 100% leverage toward natural gas allowed
the Company to record positive net earnings in the first quarter of 1998,
despite the general downturn in the performance of the energy industry as a
result of depressed oil prices. However, higher natural gas production
levels in the first quarter could not offset the impact of lower natural gas
prices and Spire recorded reduced funds flow and earnings compared to last
year.
THREE MONTHS ENDED MARCH 31
1998 1997
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FINANCIAL
Revenue, net of royalties $ 1,452,138 $ 1,477,626
Funds from operations 888,337 1,037,375
Per share 0.05 0.08
Net earnings 253,337 463,875
Per share 0.02 0.04
Capital expenditures 2,905,909 2,346,653
Total assets 20,321,746 12,090,212
Long term debt 3,195,319 4,709,099
Shareholders' equity $10,959,219 $ 4,590,218
Common shares outstanding
Weighted average 16,316,391 12,396,945
At period end 10,905,393 12,396,945
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OPERATIONAL
Production (before royalties)
Natural gas (MCFD) 11,065 10,308
Average wellhead price per MCF $ 1.70 $ 1.88
Operating netback per MCF $ 1.12 $ 1.33
All-in netback per MCF $ 0.89 $ 1.12
On April 21, 1998 the Company announced that it had engaged Griffiths
McBurney & Partners as financial advisors to review alternatives to maximize
shareholder value. Spire opened a data room in late April and is actively
soliciting proposals from interested parties. The Company has attracted a high
degree of interest to date and expects to complete the process in June, 1998,
and present a recommendation to shareholders as soon as possible thereafter.
Spire is well positioned to solicit an attractive proposal. The Company
has a low level of debt and production is expected to increase in May when
additional compression is installed at Oyen and Benton. Spire has a 100%
working interest in two natural gas processing plants and a 65% working
interest in a third plant and is the operator of all three facilities. Spire
is leveraged 100% toward natural gas and with less than 30% of its current
productive capacity contacted for the 1998/1999 gas contract year, Spire is
well positioned to capitalize on high Alberta spot prices.
-30-
For further information: Gerry R. Bartman, President, D.E. (Buster)
Moult, Vice Presdient, Finance, Spire Energy Ltd., (403) 269-9016, Fax: (403)
269-9017 |
