-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Epk2z0N4Clb7Zn49YgulnE8n9b25DJRNVt9lmPYjU+ieYKxHj9CSRm71TY24AHcI 5RonkDZe/dVRKZI8DXzHQA== 0000930661-96-001033.txt : 19960814 0000930661-96-001033.hdr.sgml : 19960814 ACCESSION NUMBER: 0000930661-96-001033 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 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: 96610878 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 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, 1996 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, 1996 - ------------ ---------------------------- $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, 1996 1995 --------- ------------ Thousands of Dollars ASSETS: - ------- Current Assets: Cash and cash equivalents $ 2,180 $ 1,397 Accounts receivable 10,012 10,426 Inventories 1,426 1,517 Prepaid expenses 753 833 --------- --------- Total current assets 14,371 14,173 Marketable Securities, at market value 13,053 19,592 --------- --------- Property, Plant and Equipment, at cost: Oil and gas properties (successful efforts method) 282,934 265,692 Other properties 4,579 4,422 --------- --------- 287,513 270,114 Accumulated depreciation, depletion, and amortization (122,356) (101,025) --------- --------- Net property, plant and equipment 165,157 169,089 Other Assets 521 553 --------- --------- $ 193,102 $ 203,407 ========= =========
The accompanying notes are an integral part of these financial statements. 3 THE WISER OIL COMPANY --------------------- CONSOLIDATED BALANCE SHEET -------------------------- (Unaudited)
June 30, December 31, 1996 1995 -------- ------------ Thousands of Dollars LIABILITIES AND STOCKHOLDERS' EQUITY - -------------------- Current Liabilities: Accounts payable $ 10,475 $ 10,143 Accrued income taxes 1,134 1,527 Accrued liabilities 1,703 1,449 Current portion of debt - 20 -------- -------- Total current liabilities 13,312 13,139 Long Term Debt 75,625 74,171 Deferred Benefit Cost 1,357 1,120 Deferred Income taxes 9,721 12,699 Other Long Term liabilities - 1,146 -------- -------- Total liabilities 100,015 102,275 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 56,638 61,030 Marketable securities valuation adjustment 7,897 11,684 Foreign currency translation 856 722 Treasury stock of 176,204 shares, at cost (2,729) (2,729) -------- -------- Total Stockholders' Equity 93,087 101,132 -------- -------- $193,102 $203,407 ======== ========
The accompanying notes are 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, ---------------------- ---------------------- 1996 1995 1996 1995 ---------- ---------- ---------- ---------- Thousands of Dollars (except per share amounts) REVENUES Oil and gas sales $16,239 $12,978 $32,473 $26,473 Dividends and interest 186 320 398 654 Security sale gains 4,827 - 6,832 2,443 Other 111 1,286 227 1,262 ------- ------- ------- ------- 21,363 14,584 39,930 30,832 COSTS AND EXPENSES: Production and operating 5,868 5,274 11,491 9,970 Purchased natural gas 289 170 642 320 Depreciation, depletion and amortization 4,896 4,866 9,850 9,971 Impairments 12,112 - 12,112 - Exploration 929 1,491 2,196 2,625 General and administrative 2,147 2,140 4,940 4,112 Interest expense 1,368 1,417 2,728 2,757 ------- ------- ------- ------- 27,609 15,358 43,959 29,755 INCOME BEFORE INCOME (LOSS) TAXES (6,246) (774) (4,029) 1,077 PROVISION FOR INCOME TAXES (878) (54) (173) 559 ------- ------- ------- ------- NET INCOME (LOSS) (5,368) (720) (3,856) 518 Retained earnings-beginning of period 62,274 62,758 61,030 62,414 Dividends paid (268) (894) (536) (1,788) ------- ------- ------- ------- RETAINED EARNINGS, END OF PERIOD $56,638 $61,144 $56,638 $61,144 ======= ======= ======= ======= AVERAGE OUTSTANDING SHARES 8,939 8,939 8,939 8,939 ======= ======= ======= ======= EARNINGS PER SHARE $( .60) $( .08) $( .43) $ .06 ======= ======= ======= ======= CASH DIVIDENDS PER SHARE $.03 $.10 $.06 $.20 ======= ======= ======= =======
The accompanying notes are 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, 1996 1995 ---------- ---------- Thousands of Dollars Cash Flow From Operating Activities: Net Income (Loss) $ (3,856) $ 518 Adjustments to reconcile net income (Loss) to operating cash flow- Depreciation and depletion 9,850 9,971 Deferred income taxes (1,031) 290 Security & property sale gains (before current income tax expense effect of $858 for 1996 and $269 for 1995) (6,871) (2,880) Foreign currency translation (14) (31) Dry hole cost, abandonments and lease impairments 13,808 1,964 Other Changes: Accounts receivable 414 3,068 Inventories 91 (279) Prepaid expenses 80 (453) Other assets 32 8 Accounts payable 330 (1,565) Income taxes, net (393) (1,070) Accrued liabilities 255 (174) Deferred benefits cost 237 514 -------- -------- Operating Cash Flow 12,932 9,881 Cash Flow From Investing Activities: Additions to property, plant and equipment (18,626) (13,972) Proceeds from sales of property, plant and equipment 172 1,142 Proceeds from security sales 7,416 2,796 Dry hole cost (857) (1,305) -------- -------- Investing Cash Flow (11,895) (11,339) Cash Flow From Financing Activities: Long term debt proceeds 14,454 4,000 Payments on long term debt (14,172) (3,035) Dividends paid (536) (1,788) -------- -------- Financing Cash Flow (254) (823) Net Increase (Decrease) in Cash 783 (2,281) Cash and cash equivalents at beginning of period 1,397 2,714 -------- -------- Cash and cash equivalents at end of period $ 2,180 $ 433 ======== ========
The accompanying notes are an integral part of these financial statements. 6 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 Revenues for the three month period ending June 30, 1996 were $21.4 million as compared to $14.6 million for the same period of 1995. Oil and condensate revenues of $10.6 million in 1996 rose $1.7 million from $8.9 million in 1995 or 20%. U. S. operations increased its oil and condensate revenue $1.1 million while Canadian operations recorded a $.6 million increase for the same time period. Oil and condensate prices rose $0.81 per barrel (BBL) in the U.S. and $1.39 in Canada as volumes also increased 48,000 and 20,000 barrels, respectively. Natural gas sales increased this quarter $.8 million or 20% over the three month period of the previous year. Pricing was the most affected variable in the equation with an increase of $.30 in the U.S. and $.14 in Canada while volumes reported a slight increase of 22,000 (MCF) thousand cubic feet of gas. For the three month period ending June 30, 1996, natural gas liquids (NGL) increased $.7 million from $.2 million in 1995. Increased natural gas liquids of 55,000 BBLs during the current quarter was due to the Company's Wellman Plant in Terry County, Texas which came on-line during the third quarter of 1995. Dividend and interest income for the current period was $.2 million as compared to $.3 million for the same period of 1995. The Company continues to sell its stock portfolio while taking advantage of its Sections 29 credits to reduce the tax liability on the gains from those transactions. Security sale gains were $4.8 million for 1996 as the Company did not sell any of its stock during the same period of last year. For the three months ended June 30, 1996 costs and expenses were $27.6 million with $15.4 million being reported for the same period one year ago. Production and operating expenses were $5.9 million in 1996 compared to $5.3 million in 1995. This increase was mainly due to increased production activity in the Maljamar area in Lea County, New Mexico. Purchased gas expense of $.3 million increased $.1 million as improved pricing increased demand and the cost per MCF. Depletion, depreciation and amortization (DD&A) for the three month period ending June 30, 1996 realized only a small increase of $30,000 or 1%. The DD&A rate for the current period was $4.16 versus and $4.69 for the second quarter of 1995. In December 1995, Wiser adopted Statement of Financial Accounting Standards No 121, "Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets to be disposed of" (SFAS 121). As a result of reserve revisions the Company recognized a non-cash charge of $12.1 million against June 30, 1996 earnings, in both the U.S. and Canadian operations. Exploration expense declined $.6 million this quarter or 38% resulting from increased development drilling. General and Administrative (G&A) expense was flat at $2.1 million for both periods. Interest expense of $1.4 million for the current quarter was $49,000 lower in 1996 than in the same period of 1995. The Company realized a net loss of $5.4 million 1996 compared to a net loss of $.7 million for the three month period ending June 30, 1995. Dividends paid for the period were $.03 and $.10 for 1996 and 1995, respectively. 7 THE WISER OIL COMPANY --------------------- SIX MONTHS ENDED JUNE 30, 1996 COMPARED WITH THE SAME PERIOD IN THE PREVIOUS YEAR. Revenues for the six months ended June 30, 1996 were $39.9 million, an increase of 30%. Oil and condensate sales increased 10% to $20.2 million in 1996 as the Maljamar area units, while still in developement stages, doubled its revenue compared to the previous year. The Company also realized increases of 13% in oil and condensate revenues at its Wellman property. These increases were offset slightly by reductions in revenues at secondary recovery projects in Michigan, as well as reduction in revenues in the Brahaney field due to a shut- in salt water disposal well. Oil volumes for the six months ending June 30, 1996 were 1.1 million barrels compared to 1.0 million barrels in 1995, an increase of 8%. Pricing was volatile for the first half of 1996 as compared with the same period one year ago resulting in an increase of $1.00 per barrel or 6%. Natural gas revenues were $10.3 million for 1996 and $8.1 million for 1995, comparatively. The Company received a full six months of revenue on properties purchased during the second quarter of 1995 in West Virginia, and therefore, increased revenues for the current period to $.4 million. Also, Kentucky gas operations increased its revenue input by $1.2 million, up from $1.7 million in 1995 an increase of 70%. The affected variable in Kentucky was a 65% increase in pricing, or $1.18 per MCF, as well as volume increases of 23,000 MCF. Natural gas liquids revenues increased $1.3 million for the period ending June 30, 1996 which was a direct result of the Wellman Plant in Terry County, Texas coming on-line during the third quarter of 1995. Dividend and interest income declined this period over last as the Company continues its long range plans to liquidate its stock portfolio. Security sale gains were $6.8 million in 1996 compared to $2.4 million in 1995. The Company currently plans to completely liquidate the portfolio in 1997 while using its Section 29 Credits to substantially reduce the taxes payable on the gains. Costs and Expenses for the six months ending June 30, 1996 of $44.0 million increased $14.2 million or 48%. Production and operating expenses of $11.5 million for the first half of 1996 increased from $10.0 million in 1995 or 15%. Increased operating and production expenses of $1.0 million were due to increased activity on the Maljamar properties coupled with increased expenses on the Wellman property of $.4 million and slightly offset by reduced operating expenses in Kentucky. Purchased natural gas increased $.3 million during the first half of 1996 with pricing the main contributing factor as spot markets kept prices high. Depreciation, depletion and amortization expense was $9.9 million as compared to $10.0 million for the previous year. In December 1995 the Company implemented Statement of Financial Accounting Standards No 121,"Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets to be disposed of" (SFAS 121). As a result of this statement the Company recognized a non-cash charge of $12.1 million against June 30, 1996 earnings. The majority of the impairment, $7.3 million, is related to certain properties in Michigan whose economic life is much shorter than previously estimated. The Company's Canadian subsidiary, which was acquired in June 1994, is also recognizing a non-cash charge of $4.8 million as pricing mixed with mid-year reserve revisions are the main cause of the impairment. Exploration expenses for the period ending June 30, 1996 were $2.2 million as compared to $2.6 million for 1995, a reduction of 16%. General and administrative expenses for the first half of 1996 were $4.9 million while for the same period of 1995 they were $4.1 million, an increase of 20%. This increase is mainly due to legal fees for defense of a lawsuit that resulted in a favorable judgement for the Company in the first quarter of this year. Interest expense held flat this six month period at $2.8 million. 8 The Company realized a net loss of $3.9 million or $.43 per share this for the first half of 1996 as compared to net income of $518,000 for the same period of 1995. U.S. operations recorded $2.0 million of net income while Canadian operations reported a net loss of $5.9 million for the period ending June 30, 1996. Cash flow from operations increased to $12.9 million for the six months ending June 30, 1996 which was in sharp contrast to $9.9 million for the previous year. The increase is primarily due to increased volumes coupled with increased pricing which was offset by slightly increased production and operating costs. 9 THE WISER OIL COMPANY --------------------- Notes to Financial Statements 1) See notes to financial statements included in the Company's 1995 Annual Report on Form 10-K. 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, 1996. 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 thereunto duly authorized. THE WISER OIL COMPANY ---------------------------------------- (Registrant) Date August 9, 1996 ANDREW J. SHOUP, JR. (SIGNED) -------------- ---------------------------------------- Andrew J. SHOUP, Jr. President and Chief Executive Officer Date August 9, 1996 LAWRENCE J. FINN (SIGNED) -------------- ---------------------------------------- Lawrence J. Finn Vice President, Finance and Chief Financial Officer 11 EX-27 2 ARTICLE 5 FINANCIAL DATA SCHEDULE
5 3-MOS DEC-31-1996 MAR-01-1996 JUN-30-1996 2,180 13,053 10,012 0 1,426 14,371 287,513 122,356 193,102 13,312 75,625 0 0 27,347 65,740 193,102 39,532 39,930 12,133 29,098 0 0 2,728 (4,029) (173) (3,856) 0 0 0 (3,856) (.43) (.43)
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