-----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, R/9CEJnU0UVFVYocxKxVt5oPfleD8t8gSvbqyGhvt0gdkG4zbI1TNr+LpsTjaKp7 D9SY2GrSC71otguO1OkQYg== 0000930661-96-001576.txt : 19961115 0000930661-96-001576.hdr.sgml : 19961115 ACCESSION NUMBER: 0000930661-96-001576 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961113 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: 96661636 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 September 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 September 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)
September 30, December 31, 1996 1995 ---- ---- Thousands of Dollars ASSETS: Current Assets: Cash and cash equivalents $ 1,775 $ 1,397 Accounts receivable 11,208 10,426 Inventories 1,468 1,517 Prepaid expenses 603 833 --------- --------- Total current assets 15,054 14,173 Marketable Securities, at market value 12,030 19,592 --------- --------- Property, Plant and Equipment, at cost: Oil and gas properties (successful efforts method) 293,728 265,692 Other properties 4,696 4,422 --------- --------- 298,424 270,114 Accumulated depreciation, depletion, and amortization (127,169) (101,025) --------- --------- Net property, plant and equipment 171,255 169,089 Other Assets 111 553 --------- --------- $ 198,450 $ 203,407 ========= =========
The accompanying notes are an integral part of these financial statements. 3 THE WISER OIL COMPANY --------------------- CONSOLIDATED BALANCE SHEET -------------------------- (Unaudited)
September 30, December 31, 1996 1995 ---- ---- Thousands of Dollars LIABILITIES AND STOCKHOLDERS' EQUITY - -------------------- Current Liabilities: Accounts payable $ 11,527 $ 10,143 Accrued income taxes 974 1,527 Accrued liabilities 1,504 1,449 Current portion of debt - 20 -------- -------- Total current liabilities 14,005 13,139 -------- -------- Long Term Debt 78,171 74,171 Deferred Benefit Cost 1,372 1,120 Deferred Income taxes 10,277 12,699 Other Long Term liabilities - 1,146 -------- -------- Total liabilities 103,825 102,275 Stockholders' Equity Common Stock - $3 par value; 20,000,000 shares authorized issued 27,347 27,347 Paid-in Capital 3,078 3,078 Retained Earnings 58,814 61,030 Marketable securities valuation adjustment 7,264 11,684 Foreign currency translation 851 722 Treasury stock of 176,204 shares, at cost (2,729) (2,729) -------- -------- Total Stockholders' Equity 94,625 101,132 -------- -------- $198,450 $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 Nine Months Ended ------------------ ----------------- September 30, September 30, ------------- ------------- 1996 1995 1996 1995 ---- ---- ---- ---- Thousands of Dollars (Except per share amounts) REVENUES Oil and gas sales $17,713 $13,222 $50,186 $39,695 Dividends and interest 157 319 555 973 Security sale gains 805 4,296 7,637 6,740 Other 793 428 1,020 1,688 ------- ------- ------- ------- 19,468 18,265 59,398 49,096 COSTS AND EXPENSES: Production and operating 6,607 5,336 18,097 15,309 Purchased natural gas 272 192 914 511 Depreciation, depletion and 4,922 4,714 14,772 14,684 amortization Impairment - - 12,112 - Exploration 806 1,394 3,001 4,018 General and administrative 1,898 1,905 6,840 6,016 Interest Expense 1,392 1,446 4,119 4,203 -------- ------- ------- ------- 15,897 14,987 59,855 44,741 INCOME BEFORE INCOME TAXES 3,571 3,278 (457) 4,355 PROVISION FOR INCOME TAXES 1,127 1,424 954 1,983 ------- ------- ------- ------- NET INCOME (LOSS) 2,444 1,854 (1,411) 2,372 Retained earnings-beginning of period 56,638 61,144 61,030 62,414 Dividends paid (268) (894) (805) (2,682) ------- ------- ------- ------- RETAINED EARNINGS, END OF PERIOD $58,814 $62,104 $58,814 $62,104 ======= ======= ======= ======= AVERAGE OUTSTANDING SHARES 8,939 8,939 8,939 8,939 EARNINGS PER SHARE $ 0.27 $ 0.21 $ (0.16) $ 0.27 ======= ======= ======= ======= CASH DIVIDENDS PER SHARE $ 0.03 $ 0.10 $ 0.09 $ 0.30 ======= ======= ======= =======
The accompanying notes are an integral part of these financial statements. 5 THE WISER OIL COMPANY --------------------- CONSOLIDATED STATEMENT OF CASH FLOW ----------------------------------- (Unaudited)
For the Nine Months Ended September 30, September 30, 1996 1995 ---- ---- Thousands of Dollars Cash Flow From Operating Activities: Net Income (Loss) $ (1,411) $ 2,372 Adjustments to reconcile net income (Loss) to operating cash flow- Depreciation and depletion 14,772 14,684 Deferred income taxes (150) 1,107 Security & property sale gains (before current income tax expense effect of $1,104 for 1996 and $786 for 1995) (7,752) (7,177) Foreign currency translation (4) (43) Dry hole cost, abandonments and lease impairments 14,350 3,068 Other Changes: Accounts receivable (782) 3,523 Inventories 48 (607) Prepaid expenses 230 (318) Other assets 441 (18) Accounts payable 1,384 (3,060) Income taxes, net (553) (607) Accrued liabilities 56 (59) Deferred benefits cost 252 534 -------- -------- Operating Cash Flow 20,881 13,399 -------- -------- Cash Flow From Investing Activities: Additions to property, plant and equipment (29,954) (18,791) Proceeds from sales of property, plant and equipment 264 1,142 Proceeds from security sales 8,284 7,503 Dry hole cost (1,121) (2,012) -------- -------- Investing Cash Flow (22,527) (12,158) Cash Flow From Financing Activities: Long term debt issued 19,000 8,000 Payments on long term debt (16,171) (8,041) Dividends paid (805) (2,682) -------- -------- Financing Cash Flow 2,024 (2,723) Net Increase (Decrease) in Cash 378 (1,482) Cash and cash equivalents at beginning of period 1,397 2,714 -------- -------- Cash and cash equivalents at end of period $ 1,775 $ 1,232 ======== ========
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 September 30, 1996 were $19.5 million as compared to $18.3 million for the same period of 1995. Hedging had an unfavorable impact of $1.9 million compared to a favorable impact of $.2 million for the same time period last year. U.S. oil hedging had a negative impact of $1.0 million compared to a positive impact of $.1 million for last year. The impact on 1996 revenues from Canadian oil hedging was a negative $.3 million compared to a positive impact of $.1 million in 1995. Oil and condensate revenues of $12.2 million in 1996 rose $3.4 million from $8.9 million in 1995 or 38%. U. S. operations increased its oil and condensate revenue $2.6 million while Canadian operations recorded a $.8 million increase for the same time period. Oil and condensate prices rose $2.40 per barrel (BBL) in the U.S. and $1.27 per barrel (BBL) in Canada as volumes also increased 88,000 and 32,000 barrels, respectively. Hedging on natural gas contracts for the three months ending September 30, 1996 had a negative impact of $.6 million. No hedging on gas contracts occurred in the Canadian operations during 1996 or for the same time period last year. Natural gas sales increased this quarter by $.8 million or 24% over the same three month period of the previous year. Pricing was the most affected variable in the equation with an increase of $.34 per MCF in the U.S. and $.21 per MCF in Canada while volumes reported a slight decrease of 4,000 MCF's. For the three month period ending September 30, 1996, natural gas liquids (NGL) increased $.3 million from $.9 million in 1995. NGL volumes as compared to the same period of 1995, remained flat during the third quarter of 1996. 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 of those transactions. Security sale gains were $.8 million for this quarter as compared to $4.3 million during the same period of last year. For the three months ended September 30, 1996 costs and expenses were $15.9 million with $15.0 million being reported for the same period one year ago. Production and operating expenses were $6.6 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 supply and the cost per MCF. Depletion, depreciation and amortization (DD&A) for the three month period ending September 30, 1996 realized an increase of $208,000 or 4%. The DD&A rate per barrel of oil equivalent (BOE) for the current period was $4.08 versus $4.28 for the third quarter of 1995. The primary reason for this decrease was that the rate of increased production versus the increased rate of DD&A was significantly higher. Exploration expense declined $.6 million this quarter or 42% resulting from increased development drilling. General and Administrative (G&A) expense was flat at $1.9 million with the previous year. Interest expense of $1.4 million for the current quarter was $54,000 lower in 1996 than in the same period of 1995. The Company realized a net income of $2.4 million in 1996 compared to a net income of $1.9 million for the three month period ending September 30, 1995. Dividends paid per share for the period were $.03 and $.10 for 1996 and 1995, respectively. 7 THE WISER OIL COMPANY --------------------- NINE MONTHS ENDED SEPTEMBER 30, 1996 COMPARED WITH THE SAME PERIOD IN THE PREVIOUS YEAR. Revenues for the nine months ended September 30, 1996 were $59.4 million, an increase of 21%. Oil and condensate sales increased 22% to $32.4 million in 1996 as the Maljamar area units more than doubled its revenue compared to the previous year while still in development stages. Hedging on oil and gas contracts had an unfavorable impact of $4.5 million as compared to a positive $.1 million for 1995. Hedging on U.S. and Canadian oil contracts had a negative impact of $2.0 million and $.7 million, respectively, compared to an overall favorable impact of $.1 million in 1995. Oil and condensate revenues also increased 10% at the Company's 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 nine months ending September 30, 1996 were 1.8 million barrels compared to 1.6 million barrels in 1995, an increase of 13%. Crude oil pricing was very volatile for the first nine months of 1996 as compared with the same period one year ago, resulting in an increase of $1.38 per barrel or 8%. Hedging on U.S. gas contracts had an unfavorable impact of $1.8 million on revenue while having virtually no effect in 1995. Natural gas revenues were $14.6 million for 1996 and $11.6 million for 1995, comparatively. The Company received a full nine months of revenue on properties purchased during the first nine months of 1995 in West Virginia, and therefore, increased revenues for the current period by $.6 million. Also, Kentucky gas operations increased its revenues by $1.2 million, up from $2.8 million in 1995, an increase of 43%. The affected variable in Kentucky was a 56% increase in pricing, or $.98 per MCF, offset somewhat by a volume decrease of 138,000 MCF's. NGL revenues increased $1.6 million for the period ending September 30, 1996 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 $7.6 million in 1996 compared to $6.7 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. Other income of $1.0 million is down $.7 million primarily due to marginal property sales in 1995. Costs and Expenses for the nine months ending September 30, 1996 of $59.9 million increased $15.0 million or 34%. Production and operating expenses of $18.1 million for the first nine months of 1996 increased from $15.3 million in 1995 or 18%. Increased operating and production expenses of $1.5 million were associated with increased activity on the Maljamar properties coupled with increased expenses on the Wellman property of $.7 million, which was partially offset by reduced operating expenses of $.5 million in Kentucky and $.2 million on other Texas properties. Purchased natural gas increased $.4 million during the first nine months of 1996 with pricing being the main contributing factor as spot markets kept prices high. Depreciation, depletion and amortization expense was $14.8 million as compared to $14.7 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 its June 30, 1996 earnings. The majority of the impairment, $7.3 million, was related to certain properties in Michigan whose economic life was much shorter than previously 8 estimated. The Company's Canadian subsidiary, which was acquired in September 1994, also recognized a non-cash charge of $4.8 million as pricing mixed with midyear reserve revisions are the main cause of the impairment. Exploration expenses for the period ending September 30, 1996 were $3.0 million as compared to $4.0 million for 1995, a reduction of 25%. General and administrative expenses for the first nine months of 1996 were $6.8 million while for the same period of 1995 they were $6.0 million, an increase of 14%. This increase is mainly due to increased payroll expenses paid in 1996. Interest expense held flat this nine month period at $4.1 million. The Company realized a net loss of $1.4 million or $.16 per share for the first nine months of 1996 as compared to net profit of $2.4 million for the same period of 1995. U.S. operations recorded $4.8 million of net income while Canadian operations reported a net loss of $6.2 million for the period ending September 30, 1996. Cash flow from operations increased to $20.9 million for the nine months ending September 30, 1996 which was in sharp contrast to $13.4 million for the previous year. The increase is primarily due to increased volumes and pricing 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 September 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 November 13, 1996 /s/ ANDREW J. SHOUP, JR. --------------------- ---------------------------------------- Andrew J. Shoup, Jr. President and Chief Executive Officer Date November 13, 1996 /s/ LAWRENCE J. FINN --------------------- ------------------------------------------ Lawrence J. Finn Vice President, Finance and Chief Financial Officer 11 EX-27 2 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1996 SEP-30-1996 1,775 12,030 11,208 0 1,468 15,054 298,424 127,169 198,450 14,005 78,171 0 0 27,347 67,278 198,450 58,843 59,398 19,011 44,742 0 0 4,119 (457) (954) (1,411) 0 0 0 (1,411) (.16) (.16)
-----END PRIVACY-ENHANCED MESSAGE-----