Chesapeake Energy 1993 Annual Report Download - page 15

RESULTS OF OPERATIONS
Results .f OperatIons
Gefleral For the fiscal yeir ended June 30, 1993, the Company realized a net loss of $365,000, or $20
per common share, on total revenUes of $18.0 million. This compares with net income of $'1.4 million, or $45
per share, on total revenues of $18.7 million in fiscal 1992 and net income of $462,000, or $.15 per share,
on total revenues of $6.4 million in fiscal 1991. The loss infiscal 1993 was largely a result of a $1.3 million'
charge for legal expense and provision for litigation settlements.. The higher earnings i.n fiscal 1992 as
compared,to fiscal 1991 reflect the Company's growth during the last half of fiscal 1992;
Oil and Gas Sales. During fiscal 1993, oil and gas sales increased apprbximately 10.3% to $11.6 million
versus $10.5 million for fiscal 1992 and 168% from the fiscal 1991 amount of $4.3 million Likewise,
production volumes increased to 4,333 MMcfe in fiscal 1993, a 24% increase over fiscal 1992's production
of 3,496 MMcfe and a 167% increase Over fiscal 1991's production of 1,624 MMcfe. The increases in.
production volumes reflect the Company's ongoing development and exploitation of its undeveloped oil and
gas properties. The change in the mix between oil and gas production, as a percentage of totaiproduction
during the three year period, reflects declines in fiscal 1993 in oil production through normal depletion from
the Company's wells in the First Shot and Pearsall fields in Texas and significant additional gas production
from the Company's wells in the Giddings, Golden Trend, East lola, and NW: Arapaho fields. The average gas.
price receiyed for fiscal year. 1993 was $2.25 per Mcf, approximately 19.7% greater than the $1.88 received
during fiscal 1992 and 42% greater than the $1.59 per Mcf received during fiscal 1991. Gas prices have
continued to be subject to volatile swings over the three-year period; however, the cOntinued improvement
in the average price received for natural gas produced by the Company appears to be the result of favorable
shifts in the demand/supply fundamentals for natural gas. Oil production sold by the Company during fiscal
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Revenues:
Quarter Ended
September 30,
1992 December 31,
1992 March 31, 1993 June 30,
1993.
(in thousands, except per shart data)
Oil and gas sales $2,681 $3,216 $3,250 $2,455
Oil and gas service operations 1,100 1,113 1517 1,796
Interest and other 24 64 206 586
Total revenues 3,805 4,393 4,973 4,837
Costs and expenses:
Production expenses and taxes 699 714 656 521
Oil and gas set-vice operations 737 754 1,043 1,119
Depreciation, depletion and amortization
of oil and gas properties 1,139 944 1,088 1,013
Depreciation and amortization of other assets 126 226 159. 46
General and administrative; net .............. 660 1,062 1,012 1,186
Provision for legal and other settlements -1,286
Interest and other. .758 793 582 149
Total costs and expenses 4119 .4,493 4,540 5,320
Income (loss) before income taxes .(314) (100) 433 (483)
Income tax expense (benefit) (89) (31) 135 (115)
Net income (loss) ($ 225) ($ 69) $. 298 ($ 368)
Dividends on preferred stock $$50 $166 $169
Net income (loss) per common share ($ .07) (5 .04) $.03 ($ .11)
Weighted average common shares outstanding .. 2,808. 2,808 4,473 5,108