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Petroleum

Financial Results of Independent Oil and Gas Companies in 2Q and 1H 1994

Strategic Insights

— 2 min read

Financial results of independent oil and gas companies in the second quarter and first half of 1994 reveal the impact of lower oil and natural gas prices. Despite higher oil and gas production, net income figures for many companies were distorted by special charges. Among companies surveyed, Oryx Energy Co. reported the worst earnings of the quarter and half year, suffering a net loss of $41 million in the second quarter and a massive net loss of $181 million for the first six months of 1994.

Key Takeaways:

  • Oryx Energy Co. reported the worst earnings of the quarter and half year, suffering a net loss of $41 million in the second quarter and a net loss of $181 million for the first six months of 1994.
  • Maxus Energy Corp. reported the highest net earnings of the group, but its earnings boost was largely due to special charges, including a $101 million pretax benefit from restructuring activities and $201 million of income from the sale of oil and gas properties.
  • Triton Energy Corp. showed marked improvement with a net loss of $13.2 million in its fourth quarter, compared with a net loss of $23.7 million a year earlier.
  • Apache Corp.'s second-quarter profits amounted to $10.2 million, an 11% decline from last year's second quarter, and for the first six months of 1994, earnings dropped 15% to $19.6 million.
  • Salomon Brothers Inc. recently reiterated a "buy" recommendation on Maxus Energy Corp., while NatWest Securities recommended Apache as a "buy" and Louisiana Land & Exploration Co. as a "buy".

Statistics:

  • Oryx Energy Co.'s net loss for the second quarter was $41 million.
  • Maxus Energy Corp.'s special charges contributed to net earnings of $30.1 million.
  • Maxus Energy Corp.'s sale of oil and gas properties generated $201 million of income.
  • Triton Energy Corp.'s capital budget is $110 million, with $85 million allocated for the development of the Cusiana oil field in Colombia.
  • Apache Corp.'s second-quarter profits declined 11% from last year's second quarter.
  • Louisiana Land & Exploration Co.'s crude and condensate production was up 18% from 1993's second quarter.

Sources:

  • "Independents Squeak By in Second Quarter" - an article published in the Washington Post, the exact date is not provided.
  • Salomon Brothers Inc.'s research report on Maxus Energy Corp., no specific date is provided.
  • NatWest Securities' research report on Apache Corp. and Louisiana Land & Exploration Co., no specific date is provided.

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