WILMINGTON, Del., Nov. 8, 1995 -- href="chap11.columbia.html">The Columbia Gas System,
Inc., (NYSE: CG) today reported third quarter net income of $19.3
million, or 38 cents per share. This compares to a net loss of $15
million, or 30 cents per share, for the same period in 1994, which
was principally due to the recording of a $35.4 million reserve for
producer claims.
After adjusting both periods for unusual items and bankruptcy-
related costs, the Corporation had a net loss of $15.1 million in
the current quarter, compared to a net loss of $3.9 million last
year. This decline was primarily the result of higher operating
costs and the combined effect of lower prices for and the reduced
production of oil and gas.
Included in the adjustments for both periods is the impact of
estimated unrecorded interest costs on prepetition debt obligations
that, on an after-tax basis, amounted to $42.9 million in the
current quarter and $35.4 million in the third quarter of 1994. The
increase reflects the impact of higher short-term interest rates and
the increasing impact of interest on interest that the company
proposes to pay under terms of its filed Chapter 11 reorganization
plan. Bankruptcy professional fees and related expenses were
essentially unchanged at $8.5 million after-tax. The current period
benefited from an after-tax increase of $7.4 million over the same
period last year in interest income on cash accumulated during
bankruptcy.
Based on the methodology outlined in the Corporation's Chapter
11 reorganization plan, the total pre-tax estimated effect of not
accruing interest expense through the third quarter on prepetition
debt obligations is approximately $930 million.
Confirmation hearings on the reorganization plans of The
Columbia Gas System, Inc., and Columbia Gas Transmission Corp., its
principal pipeline subsidiary, are scheduled to begin November 13 in
the U.S. Bankruptcy Court for the District of Delaware. The
companies continue to expect to complete the bankruptcy
reorganization process before the end of 1995.
SEGMENT OPERATING RESULTS
Transmission segment operating income was $41.3 million in the
current quarter, compared to $42.9 million in 1994. This $1.6
million reduction was principally due to higher operating costs that
were largely offset by recording revenues of $6.8 million that other
pipelines will pay Columbia Gulf Transmission Company to reduce or
terminate their service agreements. Columbia Gas Transmission
Corporation's pending general rate filing, which will go into effect
subject to refund early in 1996, provides the opportunity to recover
current operating costs.
The distribution segment had an operating loss of $25.5 million
in the current quarter, a slight improvement over the previous year
when a loss of $26.9 million was reported. Increased revenue
resulting from higher rates and strong industrial and commercial
demand for transportation services more than offset increased
operating costs. Higher property taxes, depreciation and computer
applications designed to improve long-term productivity were the
primary reasons for higher operating expenses.
The oil and gas segment had an operating loss of $400,000
during
the current quarter principally due to reduced oil and gas
production and lower prices. This compares with net income of $4.2
million last year. Oil production was down about 20 percent to
737,000 barrels and the average price for oil was $15.37 per barrel
compared to $15.93 last year. Gas production amounted to 15.9
billion cubic feet in the current quarter, three percent lower than
in 1994 and the average price was $1.85 per Mcf, as compared to
$2.04 per Mcf last year. In October, the Corporation announced its
intention to sell its southwest U.S. oil and gas exploration and
production subsidiary.
NINE MONTH RESULTS
Net income for the first nine months of 1995 was $179 million,
or $3.54 per share, as compared to net income of $167.4 million, or
$3.31 per share, for the same period in 1994. After adjusting both
periods for unusual and bankruptcy-related items, net income was
$75.8 million this year and $94.9 million in 1994.
Net income in the current period was improved by an estimated
$126.3 million from not accruing interest expense on prepetition
debt obligations as compared to a similar improvement of $101
million last year. The $35.4 million after-tax effect of a reserve
addition for producer claims that was recorded in 1994 was partially
offset by a $13.6 million improvement for the reversal of a reserve
for carrying charges on exchange gas and a $10.3 million reduction
in after-tax interest costs for a settlement with the Internal
Revenue Service. The current period also benefited from $22 million
after-tax of additional interest income on cash accumulated during
bankruptcy.
The transmission segment's operating income for the first nine
months of 1995 was $153.8 million, a decline of $18.1 million. This
was due largely to the allowed recovery in 1994 of $20.3 million of
gas costs incurred during an earlier period. Higher operating costs
during the current period were largely mitigated by $12.2 million of
revenues Columbia Gulf recorded to reflect payments that will be
made by other pipelines for reducing or terminating services.
The distribution segment had operating income of $82.8 million
for the first nine months, as compared to $72 million during the
same period in 1994. Higher rates in most of the distribution
subsidiaries' service areas and increased transportation volumes
improved results and tempered the impact of warmer weather and
increased operating expenses. The higher costs were due in part to
ongoing marketing and customer service studies that are expected to
result in broadened business opportunities and expanded customer
choices.
Lower natural gas prices, reduced oil production and higher
depletion expense reflecting the lower gas prices resulted in a
$700,000 operating loss for the oil and gas segment during the
current period, as compared to operating income of $27.4 million
last year. Natural gas production during the period was unchanged,
but prices averaged $1.92 per Mcf during the period, 30 cents per
Mcf lower than last year. Oil production in 1995 amounted to 2.175
million barrels, about 22 percent below 1994. Average oil prices in
the current period were $16.13 per barrel, an increase of $1.21 per
barrel over last year.
THE COLUMBIA GAS SYSTEM, INC.
Summary of Financial and Operating Data
Three Months Nine Months
Ended September 30 Ended September 30
1995 1994 1995 1994
Income Statement Data
($ millions):
Total Operating Revenue 389.0 392.9 1,924.0 2,083.1
Income (Loss) Before
Accounting Change 19.3 (15.0) 179.0 173.0
Net Income (Loss) 19.3 (15.0) 179.0 167.4(A)
Operating Income (Loss)
By Segment:
Transmission 41.3 42.9 153.8 171.9
Distribution (25.5) (26.9) 82.8 72.0
Oil and Gas (0.4) 4.2 (0.7) 27.4
Other Energy 2.8 2.9 12.4 17.5
Corporate (3.9) (2.3) (7.2) (6.2)
Total 14.3 20.8 241.1 282.6
Per Share Data:
Earnings (Loss) Before
Accounting Change ($) 0.38 (0.30) 3.54 3.42
Earnings (Loss) on Common
Stock ($) 0.38 (0.30) 3.54 3.31(A)
Average Common Shares
Outstanding (millions) 50.6 50.6 50.6 50.6
(A) The amount includes the adoption of SFAS No. 112, "Employers
Accounting for Postemployment Benefits", which required the accrual
of postemployment benefits previously expensed when paid.
THE COLUMBIA GAS SYSTEM, INC.
Summary of Financial and Operating Data (Continued)
Three Months Nine Months
Ended September 30 Ended September 30
1995 1994 1995 1994
Operating Data
Oil and Gas Volumes:
Gas Production
(billion cubic feet) 15.9 16.4 49.8 49.8
Oil Production
(000 barrels) 737 920 2,175 2,788
Transmission (billion
cubic feet):
Transportation
Columbia Transmission
Market Area 171.8 150.5 767.7 750.2
Columbia Gulf
Main-line 143.3 136.4 450.0 475.7
Short-haul 55.5 68.6 159.9 201.9
Intrasegment
Eliminations (141.8) (127.2) (443.8) (445.2)
Total Throughput 228.8 228.3 933.8 982.6
Distribution (billion
cubic feet):
Gas Sales 20.3 17.5 190.9 204.7
Transportation 55.1 52.5 190.6 168.0
Total Throughput 75.4 70.0 381.5 372.7
Degree Days-Distribution
Service Territory
Actual 102 98 3,484 3,859
Normal 41 41 3,568 3,568
% Colder (warmer) than
normal 149 139 (2) 8
% Colder (warmer) than
prior period 4 (18) (10) 7
NORTH CANTON, Ohio--Nov. 8, 1995--Belden &
Blake Corporation (NASDAQ: BELD) today reported earnings from
continuing operations of $1.8 million, or $.18 per common share, for
the third quarter of 1995, compared to net income from continuing
operations of $1.2 million or $.16 per share for the comparable
period of 1994. There was a weighted average of 9.7 million shares
outstanding in the third quarter of 1995, compared to a weighted
average of 7.1 million shares outstanding for the same period of
1994. The increase in average shares outstanding is primarily the
result of the Company's sale of 4 million common shares in August of
1995.
Net loss from discontinued operations for the third quarter of
1995 totaled $678,102, or $.07 per share. This compares to a net
loss from discontinued operations of $75,085, or $.01 per share for
the 1994 period.
Revenues for the third quarter ended September 30, 1995
increased 46 percent to $30.0 million compared to revenues of $20.6
million for the third quarter of 1994. Discretionary cash flow,
defined as net income plus exploration expense and non-cash charges,
increased 69 percent in the third quarter of 1995 to $9.1 million
compared with $5.4 million for the comparable period in 1994.
The company identified various factors that impacted earnings
for the 1995 third quarter:
Acquisitions and Drilling Increase Production
During the third quarter of 1995, natural gas sales volumes
increased to 4.9 Bcf (billion cubic feet), a 95 percent increase
over the same period in 1994. Oil volumes increased 44,924 barrels
(37 percent) to 165,215 barrels in the third quarter of 1995. These
volume increases were primarily due to the Company's 1995
acquisitions and production from wells drilled in 1994 and 1995.
The volume increases were partially offset by the company's
voluntary curtailment of gas production during the 1995 period due
to low spot market gas prices and curtailments due to interstate
pipeline repairs and construction. Lower volumes as a result of
these curtailments reduced gas revenue in the third quarter of 1995
by approximately $1.5 million.
The average price paid for the Company's natural gas decreased
$.30 per Mcf (thousand cubic feet) to $2.11 per Mcf in the third
quarter of 1995 compared to the third quarter of 1994. This
decreased gas sales in the third quarter of 1995 by approximately
$1.4 million. The decrease in the average gas price was largely the
result of lower gas prices received on the Company's recently
acquired Michigan production and production from properties acquired
from Quaker State Corporation in July 1995. Average crude oil
prices decreased $.99 per barrel, to $16.27 per barrel compared to
the third quarter of 1994.
Growth in Exploration Activities
Exploration expense, at $1.6 million for the 1995 period, was
more than double the $732,366 spent in the third quarter of 1994
-- primarily due to increases in the size of the technical staff and
higher levels of seismic activity. The 1995 drilling budget is more
than double the Company's drilling expenditures in 1994 and the
increase in exploration expense reflects this growth.
Sale of EPS Subsidiary
The Company has decided to sell its Engine Power Systems, Inc.
(EPS) subsidiary. The loss, net of tax effects of treating EPS as a
discontinued operation was approximately $678,102 in the third
quarter of 1995. EPS did not perform to the Company's expectations
and the Company determined that it was not prudent to commit
additional capital to its operations.
Columbia Gas Contract Claim
Earnings in the third quarter of 1995 include the recognition of
$1.3 million of anticipated proceeds from contract claims that have
been filed in the bankruptcy proceedings of href="chap11.columbia.html">Columbia Gas
Transmission Corporation. Although the company has not
reached any
settlement agreement with Columbia on the contract claims, Columbia
has included in its plan of reorganization a payout amount in excess
of $1.3 million for claims filed by the Company.
Nine-Month Results
Net income from continuing operations for the nine months ended
September 30, 1995, was $3.8 million, or $.45 per share, on revenues
of $73.4 million, compared to net income of $3.1 million, or $.41
per share on revenues of $60.2 million for the first nine months of
1994. Net loss from discontinued operations in the first nine months
of 1995 was approximately $1 million, or $.12 per share, compared to
a loss of $81,069, or $.01 per share for the 1994 period.
Discretionary cash flow was $20.6 million during the 1995 nine-month
period, compared with $15.3 million during the same period in 1994.
Natural gas volumes for the first nine months of 1995 rose 54
percent to 11.1 Bcf while gas prices decreased $.34 per Mcf to $2.26
per Mcf compared to the same period in 1994. Oil volumes were up
34,950 barrels, or 9 percent, during the nine-month period in 1995.
The average price paid for the company's oil production was up $.98
to $16.83 per barrel.
Balance Sheet Data
At September 30, 1995, working capital totaled $26 million and
total assets were $289 million compared to $14 million and $148
million, respectively, at September 30, 1994. Shareholders' equity
at September 30, 1995 increased to $140 million from $81 million at
September 30, 1994. In August 1995, the Company sold 4 million
shares of Common Stock at $14.75 per share. Net proceeds of
approximately $55 million from the offering were used to purchase
producing oil and gas properties and related assets from Quaker
State Corporation, and to reduce the outstanding balance under the
Company's revolving credit agreement.
Belden & Blake Corporation is actively engaged in producing oil
and natural gas, acquiring producing oil and gas properties,
exploratory and development drilling and gas gathering and marketing
in the Appalachian and Michigan Basins.
BELDEN & BLAKE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31,
1995 1994
(Unaudited)
ASSETS
Current assets $ 56,135,318 $
26,092,344
Property and equipment, net 224,242,959
119,175,080
Other assets 8,433,733
2,905,371
$ 288,812,010 $ 148,172,795
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 29,980,737 $
12,481,383
Long-term liabilities 110775486
47858158
Deferred income taxes 7,937,565
6,691,408
Shareholders' equity 140,118,222
81,141,846
$ 288,812,010 $ 148,172,795
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended September 30,
1995 1994
Cash flows from operating activities:
Net income $ 2,809,662 $
2,992,104
Adjustments to reconcile net
income to net cash
provided by operating activities 12,089,569 9,508,800
Net cash provided by operating
activities 14,899,231
12,500,904
Net cash used in investing activities (105,032,908)
(29,652,891)
Net cash provided by financing
activities 104,455,406
1,325,650
Net increase (decrease) in cash
and cash equivalents 14,321,729
(15,826,337)
Cash and cash equivalents at
beginning of period 3,649,005
22,244,231
Cash and cash equivalents at
end of the period $ 17,970,734 $
6,417,894
BELDEN & BLAKE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months Nine months
ended September 30, ended September 30,
1995 1994 1995 1994
Revenues
Oil and gas
sales $ 12,949,105 $ 8,069,062 $ 31,923,560 $
24,616,133
Gas marketing
and gathering 9,211,521 8,397,772 26,916,529
26,123,864
Oilfield sales
and service 6,200,276 3,897,631 12,455,363
9,014,437
Contract claim
income 1,342,900 -- 1,342,900
--
Interest and
other 330,710 269,591 744,681
400,903
30,034,512 20,634,056 73,383,033 60,155,337
Expenses
Production exp. 4,384,069 2,379,177 9,694,939
6,946,510
Cost of gas and
gathering exp. 7,506,660 7,191,187 22,759,257
22,875,597
Oilfield sales
and service 5,587,079 3,628,555 11,654,140
8,618,137
Exploration
expense 1,578,620 732,366 3,392,272
1,995,031
General and
admin. exp. 1,052,576 1,008,679 3,066,402
3,164,317
Interest exp. 1,560,761 876,343 4,013,240
2,659,522
DD&A 5,468,878 3,018,151 12,844,420
9,001,245
27,138,643 18,834,458 67,424,670 55,260,359
Income from continuing operations before
income taxes 2,895,869 1,799,598 5,958,363
4,894,978
Income taxes 1,062,825 644,576 2,194,547
1,821,805
Net income from continuing
operations 1,833,044 1,155,022 3,763,816
3,073,173
Net loss from discontinued
operations (678,102) (75,085) (954,154)
(81,069)
Net income $ 1,154,942 $ 1,079,937 $ 2,809,662 $
2,992,104
Net income per common share
Continuing op. $ 0.18 $ 0.16 $ 0.45 $
0.41
Discontinued op. (0.07) (0.01) (0.12)
(0.01)
$ 0.11 $ 0.15 $ 0.33 $ 0.40
Weighted average common shares
outstanding 9,741,156 7,084,737 7,992,704
7,078,707
OPERATIONAL SUMMARY
Sales volumes
Gas (Mcf) 4,861,019 2,491,248 11,087,837
7,205,244
Oil (Bbls) 165,215 120,291 407,048
372,098
Average Selling Price
Gas (per Mcf) $ 2.11 $ 2.41 $ 2.26 $
2.60
Oil (per Bbl) 16.27 17.26 16.83
15.85
BEDFORD, Mass.--Nov. 8, 1995--href="chap11.thinking.html">Thinking Machines
Corp., with the support of its creditors' and equity holders
committees, today announced that it has filed a plan to emerge from
its Chapter 11 reorganization as a recapitalized company focussed on
software, networking, and applications for multiprocessor computing.
The plan, which is a subject to Bankruptcy Court approval, calls
for the recapitalization of the company by a $10 million infusion of
working capital from private investors.
Since filing for Chapter 11 protection in August 1994, Thinking
Machines has cut costs and begun transforming operations to market
its parallel software to add value and new levels of performance to
mainstream computing systems. Thinking Machines' software extends
the power and flexibility of these systems by allowing users to
solve many small problems as well as big complex problems, including
the mining of very large databases. The company has had four
consecutive profitable quarters since Oct. 1, 1994.
"The market spoke loud and clear, and told this company that
building some of the world's fastest computers was not, by itself,
enough to sustain growth," said Robert L. Doretti, Thinking
Machines' president and CEO. "We took a hard look at our core
competencies and quickly realized that we had substantial expertise
in the software that harnesses the power of multiprocessor
computers. We believe there's a huge untapped market for this
capability, and this is our strategic focus going forward."
"Thinking Machines' core competencies position the company to
capitalize on two powerful industry trends - the market demand for
scalable architectures, and the migration of high-performance
technologies into commercial environments. The company's skill set
answers the industry's call for expertise in providing solutions for
data-intensive problems," said Debra Goldfarb, director,
Workstations and High-Performance Systems, International Data Corp.
On behalf of the company's creditors and current equity holders,
the proposed plan also provides for the creation of a separate
business entity to realize its patent rights. Thinking Machines
owns patents to a variety of technologies, some of which have become
standards in the computer industry.
Founded in 1983, Thinking Machines is a pioneer in the
supercomputer field know as massively parallel processing, and has
created some of the world's most powerful computers. Today, the
company's supercomputers are employed in a wide variety of fields,
from seismic processing and molecular biology, to operations
research and database mining. Thinking Machines will continue to
develop enhancements to its Connection Machine family of systems.
"Thinking Machines owes a great deal of gratitude to its loyal
employees and customers for their support during this difficult
period," said Doretti. "As we move forward an implementing our new
strategy, I am greatly encouraged by the renewed sense of confidence
in the company and the positive reception to our new business
directions by the marketplace."
In early October, the 180-employee company completed a move of
its corporate headquarters from Cambridge to Bedford, Mass.
CONTACT: Thinking Machines Corp.,
Martha Keeley, 617/276-0400 x5502;
Internet: href="mailto:martha@think.com">martha@think.com
OR
Mullen Public Relations,
Erika Schutz, 508/468-1155 x119;
Internet: eschutz@mullen.com