Sign in Subscribe
Petroleum

Meridian Resource Corporation Reports First Quarter 1998 Earnings

Strategic Insights

— 1 min read

Meridian Resource Corporation, a leading oil and gas company, announced its first quarter 1998 earnings on May 18, 1998. The company reported a net loss of $40.9 million, or $1.22 per share, due to decreased revenues and a non-cash write-down of its oil and natural gas properties. Despite the disappointing results, Meridian's chairman and CEO, Joseph A. Reeves Jr., expressed optimism about the company's future, citing its exploration opportunities and the potential for future reserve growth.

Key Takeaways:

  • Meridian's first quarter 1998 earnings decreased to a net loss of $40.9 million, or $1.22 per share, due to a non-cash write-down of its oil and natural gas properties.
  • Revenues decreased by $4.7 million to $11.8 million, primarily due to lower average commodity prices.
  • Natural gas prices decreased by 26% to $2.29 per MCF, while oil prices decreased by 39% to $13.65 per BBL.
  • The company's oil and natural gas production increased by 2% to 5,118 MMCFE, despite curtailed production from the East Cameron Block 349 platform.
  • Cash costs per MCFE remained constant at $0.78, while total operating expenses increased by $0.4 million to $1.5 million.
  • The company negotiated a new $250 million credit facility to finance ongoing development activities and the Shell transaction.
  • The Shell transaction is expected to close in the third quarter of 1998, pending a shareholder vote and the execution of an interim operating agreement.

Statistics:

  • Net loss: $40.9 million
  • Net loss per share: $1.22
  • Revenue: $11.8 million
  • Natural gas prices: $2.29 per MCF
  • Oil prices: $13.65 per BBL
  • Production volume: 5,118 MMCFE
  • Cash costs per MCFE: $0.78
  • Total operating expenses: $1.5 million
  • Credit facility: $250 million

Sources:

  • "Meridian Resource Corporation Reports First Quarter 1998 Earnings" (Business Wire, May 18, 1998)
  • "Meridian Resource Corporation Quarterly Report (Form 10-Q) (March 31, 1998"
  • "Meridian Resource Corporation 1997 Annual Report (Form 10-K)"

Read more