DENVER, CO -- April 12, 1996 -- Presidio Oil Co.
(PRS/A) today reported oil and gas revenues for the fourth quarter
ended December 31, 1995 of $7.6 million compared to $10.2 million
for the similar 1994 period, resulting in a net loss of $5.4 million
($0.20 per Class A and Class B share) compared to a net loss of $5.8
million ($0.21 per Class A and Class B share) for the 1994 fourth
quarter.
Oil production for the 1995 fourth quarter was 205,000 barrels
compared to 274,000 barrels in the similar 1994 period. Sales of
producing properties during 1995 accounted for the majority of such
decrease in oil production, with the remainder resulting from lower
production rates in several significant fields. Oil prices received
by the Company in the 1995 fourth quarter averaged $15.17 per barrel
compared to $14.52 per barrel received in the 1994 fourth quarter.
Gas production for the 1995 fourth quarter was 3.3 billion cubic
feet ("BCF") compared to 4.5 BCF in the 1994 fourth quarter, with
average prices of $1.38 and $1.37 per thousand cubic feet ("MCF"),
respectively.
Oil and gas revenues in 1995 were $31.3 million compared to
$40.6 million in 1994, resulting in a net loss of $29.6 million
($1.08 per Class A and Class B share) for 1995, compared to a net
loss from continuing operations of $24.6 million ($0.91 per Class A
and Class B share) for 1994.
Oil production for the 1995 was 866,000 barrels compared to
1,137,000 barrels in 1994, with average prices of $15.31 and $13.81
per barrel, respectively. Gas production in 1995 was 14.8 BCF
compared to 17.2 BCF in 1994, with average prices of $1.22 and $1.45
per MCF, respectively
Presidio's proved reserves at yearend 1995 were 11.8 million
barrels of oil ("MMBO") and 288 BCF of gas, or 59.8 million
equivalent barrels of oil ("MMBOE"), after production in 1995 of .9
million MMBO and 14.8 BCF, or 3.3 MMBOE, and the divestiture of .3
MMBO and 19.6 BCF, or 3.6 MMBOE, in such year. This resulted in an
11% decrease in the Company's 1995 reserves compared to its yearend
1994 reserves of 13.3 MMBO and 324 BCF, or 67.3 MMBOE.
Since late November of 1995, the Company and Tom Brown, Inc.
("Tom Brown"), which in June 1995 acquired approximately $56 million
in principal amount of the Company's Senior Gas Indexed Notes Due
2002, have been negotiating with each other and with certain of the
Company's creditors regarding a proposed transaction (the "Tom Brown
Transaction") pursuant to which Tom Brown would acquire the Company.
The negotiations with Tom Brown and certain of the Company's
creditors are continuing in an attempt to reach an informal
consensual agreement regarding the terms of the Tom Brown
Transaction, including the allocation of the proceeds thereof. In
so far as the Tom Brown Transaction does not contemplate full
payment of principal and accrued interest on the Company's public
debt, it is anticipated that such transaction will be implemented
through a plan of reorganization filed under the bankruptcy code.
The Company expects to enter into a definitive agreement relating to
the Tom Brown Transaction in the second quarter of 1996. There can
be no assurance, however, that such an agreement with Tom Brown will
be reached or, if such an agreement is entered into, that an
informal consensual agreement with the Company's bank lenders and
certain of the significant holders of the Company's public debt can
be agreed upon as to the amount or nature of the proceeds, if any,
that would be available for distribution to the Company's debt and
equity holders if the Tom Brown Transaction is consummated.
The Company further stated that the auditors' opinion as to its
1995 financial statements includes an explanatory paragraph stating
the auditors are unable to express an opinion in respect of such
1995 financial statements due to the substantial doubt as to the
Company's ability to continue as a going concern because of its
operating losses, working capital deficit and stockholders' capital
deficiency.
Presidio is an independent oil and gas company engaged in
onshore oil and gas exploration, development and production in the
continental United States.
PRESIDIO OIL COMPANY AND SUBSIDIARIES
Consolidated Statements of Operations
Fourth Quarter Year Ended
Ended Dec. 31, Dec. 31
1995 1994 1995 1994
(in thousands, except per share amounts)
Oil and gas revenues $ 7,590 $ 10,214 $ 31,298 $ 40,643
Less - direct costs:
Lease operating 2,567 3,179 11,342 12,483
Production taxes 429 596 1,775 2,373
Depletion,
depreciation
and amortization 3,267 4,468 14,405 17,655
1,327 1,971 3,776 8,132
General and
administrative expense 685 1,146 5,529 6,089
Other income (expense):
Interest expense (7,727) (7,194) (29,566) (28,130)
Other 1,666 542 1,731 1,525
(6,061) (6,652) (27,835) (26,605)
Net loss $ (5,419) $ (5,827) $(29,588) $(24,562)
Loss per share:
Class A Common Stock $ (.20) $ (.21) $ (1.08) $ (.91)
Class B Common Stock $ (.20) $ (.21) $ (1.08) $ (.91)
Weighted average common
shares outstanding 28,535 28,535 28,535 28,535
Less: weighted average
unallocated shares held
by the Company's
Employee Stock
Ownership Plan (1,141) (1,404) (1,240) (1,497)
27,394 27,131 27,295 27,038
PRESIDIO OIL COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
December 31,
1995 1994
(in thousands)
Assets:
Current Assets $ 15,167 $ 21,213
Property, Plant and
Equipment, net 216,865 228,675
Other Assets 9,914 9,684
$241,946 $259,572
Liabilities and Stockholders'
Deficit
Current Liabilities $280,816 $ 25,081
Long-term Debt, including
non-current liabilities 11,125 255,039
Stockholders' Deficit (49,995) (20,548)
$241,946 $259,572
WILMINGTON, Del., April 12, 1996 - href="chap11.columbia.html">The Columbia Gas
System, Inc., (NYSE: CG) today reported first quarter net
income of
$151.3 million, or $2.99 per share. This compares to reported net
income for the first quarter of 1995 of $128.8 million, or $2.55 per
share, and to $95.2 million, or $1.88 per share, after adjusting for
bankruptcy-related items and unrecorded interest expense.
Columbia System Chairman Oliver G. (Rick) Richard III pointed
out that each of Columbia's business segments posted improved
results in the current period due to higher rates for the
transmission and distribution companies and to colder temperatures
that resulted in higher average wellhead prices for natural gas
production, increased distribution segment throughput, and improved
propane sales.
Richard also cited several major developments during the
quarter: "We reached an agreement for the sale of Columbia Gas
Development Corporation, our southwest oil and gas company, to Hunt
Petroleum Corporation for approximately $200 million; our common
stock offering was oversubscribed generating $239.2 million in new
capital; our principal interstate pipeline subsidiary filed for a
$350 million expansion that will result in a 7 percent increase in
peak day capacity when completed in 1999; and we announced plans to
build a new corporate center in northern Virginia where we will
consolidate the corporate headquarters and other key corporate
functions in order to realize economies and efficiencies." The sale
of Columbia Development is expected to be completed April 30, 1996,
to be effective December 31, 1995.
Columbia had 55,015,505 shares of common stock outstanding on
March 31, 1996. However, earnings per share calculations are based
on the average number of shares outstanding during the two periods,
which were 50,662,440 shares in the current quarter and 50,563,335
shares in the first quarter of 1995.
Operating Results
First quarter operating income for the transmission segment was
$85.6 million, an increase of $9 million over the same period in
1995. This was principally due to higher rates Columbia Gas
Transmission Corp. began collecting, subject to refund, on February
1, permitting higher recovery of operating costs that have increased
since the company's last general rate increase in 1991. Partially
offsetting the rate increase was the effect of $5.3 million in
revenue, recorded in 1995, that resulted from exit fees paid to
Columbia Gulf Transmission Co.
Colder weather combined with higher rates now in effect in
Pennsylvania, Kentucky, Maryland and Virginia resulted in
distribution segment operating income of $168 million during the
current quarter, a $51.8 million increase over the first quarter of
1995. Temperatures were 13 percent colder than unseasonably mild
temperatures experienced last year and were the principal reason
distribution segment throughput increased 14.7 billion cubic feet to
224.6 billion cubic feet. Operating and maintenance expense is
essentially unchanged from last year as the distribution units are
benefiting from efficiency measures and the streamlining of
operations.
Operating income for the oil and gas segment was $10.8 million
in the current period, compared to a loss of $100,000 last year.
This reflects higher average prices of $3.14 per thousand cubic feet
for Appalachian gas production this year, a 38 percent ($0.87 per
thousand cubic feet) increase over 1995. The significant increase
in gas prices resulted primarily from colder weather in the eastern
United States.
Operating income for other energy operations was $16.7 million,
an $8.8 million increase over the same period in 1995. This was
primarily due to colder weather that increased propane sales and gas
marketing activities.
The Columbia Gas System, Inc., is one of the nation's largest
natural gas systems with assets in excess of $6 billion. Its
operating companies are engaged in all phases of the natural gas
business, provide marketing and fuel management services and
generate electric power. Columbia companies, directly or indirectly,
serve more than seven million gas users in 15 states and the
District of Columbia. Information about Columbia and its operating
units is available on the World Wide Web at
href="http://www.columbiaenergy.com" target=_new>http://www.columbiaenergy.com">http://www.columbiaenergy.com
THE COLUMBIA GAS SYSTEM, INC.
Summary of Financial Operating Data
Three Months
Ended March 31,
1996 1995
Income Statement Data
($ millions)
Total Operating Revenue 1,203.0 1,030.7
Net Income 151.3 128.8
Operating Income (Loss) by Segment:
Transmission 85.6 76.6
Distribution 168.0 116.2
Oil and Gas 10.8 (0.1)
Other Energy 16.7 7.9
Corporation (2.9) (0.7)
Total 278.2 199.9
Per Share Data:
Earnings on Common Stock $2.99 $2.55
Average Common Shares Outstanding (millions) 50.7 50.6
Capitalization as of March 31, (in millions)
March 31, December 31,
1996 1995
Common Stock Equity:
Common stock, par value $10 per share -
outstanding 55,015,505 and
50,563,335 shares, respectively 550.2 506.2
Additional paid in capital 735.2 595.8
Retained earnings 213.8 69.8
Less: Cost of treasury stock
(1,416,155 shares outstanding
as of December 31, 1995) --- (57.8)
Total Common Stock Equity 1,499.2 1,114.0
Preferred Stock --- 399.9
Long-Term Debt 2,004.2 2,004.5
Total Capitalization 3,503.4 3,518.4
Summary of Financial Operating Data
Three Months
Ended March 31,
1996 1995
Operating Data
Oil and Gas Volumes:
Gas Production (billion cubic feet):
Appalachian 8.5 9.1
Southwest --- 8.6
Total 8.5 17.7
Oil Production (000 barrels):
Appalachian 70 78
Southwest --- 664
Total 70 742
Transmission (billion cubic feet):
Transportation
Columbia Transmission
Market Area 429.5 401.2
Columbia Gulf
Main-line 170.2 154.9
Short-haul 69.3 50.7
Intrasegment Eliminations (166.5) (151.3)
Total Throughput 502.5 455.5
Distribution (billion cubic feet)
Gas Sales 153.0 133.1
Transportation 71.6 76.8
Total Throughput 224.6 209.9
Degree Days-Distribution Service Territory
Actual 3,102 2,758
Normal 2,979 2,947
% Colder (warmer) than normal 4 (6)
% Colder (warmer) than prior period 13 (12)
Bankruptcy-related and Unusual Items
After-tax effect on Net Income
Reported Net Income 151.3 128.8
Less:
Bankruptcy related items
Estimated interest costs not
recorded on prepetition debt
prior to emergence --- 40.4
Professional fees and related expenses --- (6.8)
Total adjustments --- 33.6
Net Income after adjusting
for bankruptcy and unusual items 151.3 95.2