-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, BKsA6OLTCESW9mJcQPpNPjFl6k0CVt6WuNJv3exYVKW2oWAqN/6VF257PsTjJL2P v5Ob/sjO+tyjNIkiZ7EKqw== 0000930661-95-000262.txt : 19950814 0000930661-95-000262.hdr.sgml : 19950814 ACCESSION NUMBER: 0000930661-95-000262 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950811 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: WISER OIL CO CENTRAL INDEX KEY: 0000107874 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 550522128 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-12640 FILM NUMBER: 95561603 BUSINESS ADDRESS: STREET 1: 8115 PRESTON RD STE 400 CITY: DALLAS STATE: TX ZIP: 75225 BUSINESS PHONE: 2142650080 MAIL ADDRESS: STREET 1: 8115 PRESTON ROAD STREET 2: SUITE 400 CITY: DALLAS STATE: TX ZIP: 75225 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 Form 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter ended June 30, 1995 Commission file number 0-5426 ------------- ------ The Wiser Oil Company --------------------- (Exact name of Registrant as Specified in its Charter) Delaware 55-0522128 -------- ---------- (State or other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 8115 Preston Road, Suite 400, Dallas, Texas 75225 ------------------------------------------------- (Address of Principal Executive Offices)(Zip Code) Registrant's telephone number, including area code 214/265-0080 ------------ NONE ---- Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months, and (2) has been subject to such filing requirements for the past 90 days. x ----- ---- Yes No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report. Class Outstanding at June 30, 1995 ------------ ---------------------------- $3 par value 8,939,368 THE WISER OIL COMPANY --------------------- PART I FINANCIAL INFORMATION --------------------- Item 1. Financial Statements The consolidated condensed financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The financial statements reflect all adjustments which are, in the opinion of management, necessary to fairly present such information. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including significant accounting policies, normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto, included in the Company's latest annual report on Form 10-K. 2 THE WISER OIL COMPANY --------------------- CONSOLIDATED BALANCE SHEET -------------------------- (Unaudited)
June 30, December 31, 1995 1994 -------- ------------ Thousands of Dollars ASSETS - ------ Current Assets: Cash and cash equivalents $ 433 $ 2,714 Accounts receivable 7,832 10,900 Inventories 1,423 1,144 Prepaid expenses 1,305 852 -------- -------- Total current assets 10,993 15,610 -------- -------- Marketable Securities, at market value 27,824 27,337 -------- -------- Property, Plant and Equipment, at cost: Oil and gas properties (successful efforts method) 262,643 250,156 Other properties 4,532 5,443 -------- -------- 267,175 255,599 Accumulated depreciation, depletion, and amortization (96,058) (88,228) -------- -------- Net property, plant, and equipment 171,117 167,371 -------- -------- Other Assets 465 473 -------- -------- $210,399 $210,791 ======== ========
The accompanying note is an integral part of these financial statements. 3 THE WISER OIL COMPANY --------------------- CONSOLIDATED BALANCE SHEET -------------------------- (Unaudited) June 30, December 31, 1995 1994 -------- ------------ Thousands of Dollars LIABILITIES AND STOCKHOLDERS' EQUITY - -------------------- Current Liabilities: Accounts payable $ 7,997 $ 9,562 Accrued income taxes 448 1,518 Accrued liabilities 1,965 2,139 Current portion of debt 78 78 -------- -------- Total current liabilities 10,488 13,297 Long Term Debt 78,978 78,013 Deferred Benefit Cost 1,566 1,052 Deferred Income Taxes 13,569 13,002 -------- -------- Total liabilities 104,601 105,364 -------- -------- Stockholders' Equity: Common Stock - $3 par value; 20,000,000 shares authorized; 9,115,572 shares issued 27,347 27,347 Paid-in capital 3,078 3,078 Retained earnings 61,144 62,414 Marketable securities valuation adjustment 16,546 16,013 Foreign currency translation 412 (696) Treasury stock of 176,204 shares, at cost (2,729) (2,729) -------- -------- Total Stockholders' Equity 105,798 105,427 -------- -------- $210,399 $210,791 ======== ========
The accompanying note is an integral part of these financial statements. 4 THE WISER OIL COMPANY --------------------- CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS ------------------------------------------------------ (Unaudited)
For the For the Three Months Ended Six Months Ended June 30, June 30, ------------------ ----------------- 1995 1994 1995 1994 -------- ------- -------- ------- Thousands of Dollars (except per share amounts) REVENUES: Oil and condensate $ 9,059 $ 8,199 $18,364 $14,611 Natural gas 3,919 4,637 8,109 10,028 Dividend and interest 320 398 654 787 Security sale gains - - 2,443 - Other 1,285 273 1,262 664 ------- ------- ------- ------- 14,583 13,507 30,832 26,090 ------- ------- ------- ------- COSTS AND EXPENSES: Production and operating 5,167 5,476 9,970 10,871 Purchased natural gas 171 207 320 412 Depreciation, depletion, and amortization 4,973 4,104 9,971 8,378 Abandonments - 101 - 190 Exploration 1,491 577 2,625 937 General and administrative 2,138 1,547 4,112 3,206 Interest expense 1,417 654 2,757 1,171 ------- ------- ------- ------- 15,357 12,666 29,755 25,165 ------- ------- ------- ------- INCOME (LOSS) BEFORE INCOME TAXES (774) 841 1,077 925 PROVISION (BENEFIT) FOR INCOME TAXES (54) 2 559 20 ------- ------- ------- ------- NET INCOME (LOSS) (720) 839 518 905 Retained earnings - beginning of period 62,758 56,174 62,414 57,002 Dividends paid (894) (894) (1,788) (1,788) ------- ------- ------- ------- RETAINED EARNINGS END OF PERIOD $61,144 $56,119 $61,144 $56,119 ======= ======= ======= ======= AVERAGE OUTSTANDING SHARES 8,939 8,939 8,939 8,939 ======= ======= ======= ======= EARNINGS (LOSS) PER SHARE $ (.08) $ .09 $ .06 $ .10 ======= ======= ======= ======= CASH DIVIDENDS PER SHARE $ .10 $ .10 $ .20 $ .20 ======= ======= ======= =======
The accompanying note is an integral part of these financial statements. 5 THE WISER OIL COMPANY --------------------- CONSOLIDATED STATEMENT OF CASH FLOW ----------------------------------- (Unaudited)
For the Six Months Ended ------------------------ June 30, June 30, 1995 1994 ---------- --------- Thousands of Dollars Cash Flow From Operating Activities: Net income $ 518 $ 905 Adjustments to reconcile net income to operating cash flow - Depreciation and depletion 9,971 8,378 Deferred income taxes 290 (700) Security & property sale gains (before current income tax expense effect of $267) (2,880) - Foreign currency translation (31) - Dry hole cost, abandonments and lease impairments 1,964 729 -------- -------- Other Changes: Accounts receivable 3,068 440 Inventories (279) (57) Prepaid expenses (453) (421) Other assets 8 3 Accounts payable (1,565) (1,105) Income taxes, net (1,070) 679 Accrued liabilities (174) 441 Deferred benefit cost 514 54 -------- -------- Operating Cash Flow 9,881 9,346 -------- -------- Cash Flow From Investing Activities: Additions to property, plant and equipment (13,972) (59,000) Proceeds from sales of property, plant, and equipment 1,142 1,854 Proceeds from security sales 2,796 - Dry hole cost (1,305) (39) -------- -------- Investing Cash Flow (11,339) (57,185) -------- -------- Cash Flow From Financing Activities: Long term debt issued 4,000 52,000 Payment on long term debt (3,035) (2,231) Dividends paid (1,788) (1,788) -------- -------- Financing Cash Flow (823) 47,981 -------- -------- Net Increase (Decrease) in Cash (2,281) 142 Cash and Cash Equivalents at the beginning of the period 2,714 3,499 -------- -------- Cash and Cash Equivalents at the end of the period $ 433 $ 3,641 ======== ========
The accompanying note is an integral part of these financial statements. 6 THE WISER OIL COMPANY --------------------- Notes to Financial Statements 1) Certain reclassifications have been made to the 1994 financial statements to conform with current year presentation. 2) On June 24, 1994, the Company acquired certain oil and gas properties from Eagle Resources Ltd. for approximately $53 million (U.S.). The purchase was funded with proceeds from the Company's revolving credit agreement, and with existing cash and cash equivalents. The purchase method of accounting has been followed with respect to the acquisition. Results of the Eagle properties' operations have been included in the Company's results of operations as of June 30, 1994. For additional information see the Form 8-K issued on July 11, 1994. Unaudited pro forma results of operations, as if the acquisition took place at the beginning of 1994 are as follows (000's):
Six Months Ended ---------------- June 30, 1994 ---------------- Revenues $36,776 Expenses 36,630 ------- Net Income $ 146 ======= Earnings per share $ .02 =======
3) On January 1, 1995 The Wiser Oil Company adopted Statement of Financial Accounting (SFAS) No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of". The adoption of SFAS No. 121 did not have a material effect on the results of operations. 7 THE WISER OIL COMPANY --------------------- Item 2. Management's Discussion and Analysis of Financial Conditions and Results of Operations CURRENT QUARTER COMPARED WITH THE SAME QUARTER OF THE PREVIOUS YEAR Second quarter revenues for 1995 were $14.6 million as compared to $13.5 million in 1994, an increase of 8%. Oil and condensate sales of $9.1 million in 1995 rose slightly from $8.2 million in 1994. U.S. operations decreased $1.9 million and our Canadian operations, which had no impact during the second quarter of 1994, added $2.8 million in 1995. Oil and condensate volumes increased only 3% in 1995 comparatively; however, pricing increased 7% or $1.19 per barrel. Canadian operations added 172,000 barrels while U.S. operations declined 150,000 barrels, due to property sales during the fourth quarter of 1994. Natural gas sales of $3.9 million in the second quarter of 1995 were down from $4.6 million in 1994 or 15% for the quarter. Natural gas volumes increased 20% to 3,034,000 MCF for the period, but were offset by a significant drop in spot market pricing of 30% or $0.55 per MCF during the second quarter of 1995. Canadian operations added 671,000 MCF while U.S. operations declined 156,000 MCF; which was due mainly to property sales during the fourth quarter of 1994. Dividends and interest income reflected a decline of 20% as the Company has liquidated some of its stock portfolio. The Company did not sell any securities during the second quarter of 1995. Other income of $1.3 million in the second quarter of 1995 increased $1.0 million over the second quarter of 1994. The increase is due to an increase of lease bonus income and gains recognized from properties sold during the period. Costs and expenses of $15.4 million compared to $12.7 million in the same quarter of 1994 have increased $2.7 million or 18%. U.S. operations costs and expenses declined $2.1 million or 17%. The Canadian subsidiary accounted for additional costs and expenses of $4.8 million. Production and operating expenses of $5.2 million in the second quarter of 1995 declined $0.3 million from $5.5 million in 1994, as the Company is realizing the efforts of the disposal of high-operating expense, marginal U.S. properties. Canadian operations added $0.7 million in production and operating expenses, while U.S. operations declined by $1.0 million. Purchased gas expense declined 17% during the period as demand for volumes complimented by falling natural gas prices also dropped. Depreciation, depletion and amortization (DD&A) was $5.0 million in 1995 as compared to $4.1 million in 1994. DD&A for U.S. operations actually declined 33% for the period; however, the decline was offset by additional DD&A from our Canadian operations for 1995. Exploration expenses increased $0.9 million in 1995 as dry hole expense in the U.S. operations rose $0.4 million and the Canadian operations increased $0.5 million. General and administrative (G&A) expenses of $2.1 million have increased from $1.5 million or 28%. The increase in costs were due to increased staffing for Wiser's Canadian subsidiary. Interest expense rose $0.7 million in 1995 as Wiser increased its long term debt in order to fund its Canadian acquisition. 8 The Company realized a net loss of $0.7 million for the second quarter of 1995 as compared to net income of $0.8 million for 1994. Our U.S. operations recorded a net profit of $0.7 million for the period, but was negatively impacted by a net loss from our Canadian subsidiary of $1.4 million. Results in Canada reflect three primary factors: substantial interest expenses associated with the 100% financing of the acquired assets, high initial depreciation, depletion, and amortization charges that include amortization of acquisition costs associated with items such as probable reserves that can not yet be recorded as assets, as well as tax and other benefits which will be realized in the future. 9 THE WISER OIL COMPANY --------------------- SIX MONTHS ENDED JUNE 30, 1995 COMPARED WITH THE SAME PERIOD IN THE PREVIOUS YEAR Revenues for six months ended June 30, 1995 were $30.8 million, an increase of 16%. Revenues from U.S. operations declined 9% as the full effect of the property sales are being realized. Our Canadian subsidiary accounted for an additional $7.2 million in revenue for the same period, as its revenues had no impact for six months ended June 30, 1994. Oil and condensate sales of $18.4 million were on the rise from $14.6 million a year ago. The U.S. operations realized a 12% reduction in oil and condensate revenue while the Canadian subsidiary contributed an additional $5.6 million. Canadian operations added 354,000 barrels, while U.S. operations declined 278,000 barrels, due to property sales during the fourth quarter of 1994. Natural gas sales fell in 1995 to $8.1 million from $10.0 million in 1994. U.S. natural gas operations fell 35% while our Canadian subsidiary added another $1.6 million. Canadian operations added 1,422,000 MCF, while U.S. operations declined 714,000 MCF, which was due mainly to property sales during the fourth quarter of 1994. Dividend and interest income decreased $0.2 million as the Company continues its long range plans to liquidate its stock portfolio. Security sale gains were $2.4 million in 1995. Other income rose $0.6 million from $0.7 million in 1994.An increase of $0.4 million in U.S. lease bonus income accounted for the majority of this increase. Cost and expenses for the six months ending June 30, 1995 rose to $29.8 million as compared to $25.2 million in 1994. Production and operating expenses declined $0.9 million from 1994 as U.S. operating expenses declined $2.4 million or 21% and Canada added $1.5 million. Purchased natural gas declined 22% for the time period as demand and pricing fell. Depreciation, depletion and amortization (DD&A) of $10.0 million increased 19% or $1.6 million over the previous year. U.S. operations recorded a 31% drop in DD&A during the first six months of 1995 while our Canadian operations contributed an additional $4.2 million. Significant increase in exploration expense of $1.7 million was due to increased dry hole expenses in the U.S. and Canada of $0.6 million each. General and administrative expenses rose $0.9 million. The increase in costs were due to increased staffing for Wiser's Canadian subsidiary. The Company's $1.6 million rise in interest expense is mainly due to the additional funds borrowed for the Canadian purchase. Net income of $0.5 million for the first six months of 1995 fell $0.4 million as compared to 1994. U.S. operations recorded a $2.7 million profit for the period while our Canadian subsidiary recorded a $2.2 million loss. Results in Canada reflect three primary factors: substantial interest expenses associated with the 100% financing of the acquired assets, high initial depreciation, depletion, and amortization charges that include amortization of acquisition costs associated with items such as probable reserves that can not yet be recorded as assets, as well as tax and other benefits which will be realized in the future. 10 THE WISER OIL COMPANY --------------------- PART II - OTHER INFORMATION --------------------------- Items 1 through 6 under Part II are not applicable to the quarter ended June 30, 1995. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned. THE WISER OIL COMPANY ------------------------------------------- (Registrant) Date August 11, 1995 ANDREW J. SHOUP, JR. (SIGNED) ------------------- ------------------------------------------- Andrew J. Shoup, Jr. President and Chief Executive Officer Date August 11, 1995 LAWRENCE J. FINN (SIGNED) ------------------- ------------------------------------------- Lawrence J. Finn Vice President Finance and Chief Financial Officer 11 EX-27 2 FDS
5 1,000 6-MOS DEC-31-1995 JAN-01-1995 JUN-30-1995 433 27,824 7,832 0 1,423 10,993 267,175 96,058 210,399 10,488 78,978 27,347 0 0 3,078 210,399 16,183 30,832 10,290 22,886 6,869 0 0 1,077 559 518 0 0 0 518 .06 .06
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