Nuevo Energy Co. Reports Record Net Income for Q2 1995

Strategic Insights -

Nuevo Energy Co., a Houston-based independent oil and gas company, reported a record net income for the second quarter of 1995, exceeding analyst expectations. The company's net income for the quarter reached $2.5 million, or 19 cents per share, a significant increase from $1.7 million, or 12 cents per share, in the same period last year. This growth can be attributed to a 22% increase in total revenues, reaching a record $36.2 million, as well as a 25% surge in operating cash flow to $14.4 million.

Key Takeaways:

  • Nuevo Energy Co.'s net income for Q2 1995 reached $2.5 million, a 46% increase from the same period last year.
  • The company's total revenues for Q2 1995 reached a record $36.2 million, up 22% from the same period in 1994.
  • Operating cash flow for Q2 1995 was $14.4 million, a 25% increase from the same period last year.
  • Oil and gas production averaged 11,088 barrels of oil per day (Bopd) and 83.5 million cubic feet of gas per day (MMcfpd) in Q2 1995, up 79% and 37% respectively from last year's second quarter.
  • Nuevo Energy Co.'s SEC PV10 value increased approximately $100 million as of June 30, 1995, resulting in a mid-year value of $282 million.
  • Michael Watford, CEO of Nuevo Energy Co., attributed the company's success to its ability to expand its oil and gas resource base, establish record production levels, and achieve record earnings and cash flow.

Statistics:

  • Net income for Q2 1995: $2.5 million
  • Net income for Q2 1994: $1.7 million
  • Increase in net income: 46%
  • Total revenues for Q2 1995: $36.2 million
  • Total revenues for Q2 1994: $29.7 million
  • Increase in total revenues: 22%
  • Operating cash flow for Q2 1995: $14.4 million
  • Operating cash flow for Q2 1994: $11.5 million
  • Increase in operating cash flow: 25%
  • Oil and gas production for Q2 1995: 11,088 Bopd and 83.5 MMcfpd
  • Oil and gas production for Q2 1994: 6,190 Bopd and 61.2 MMcfpd
  • Increase in oil and gas production: 79% and 37% respectively
  • SEC PV10 value as of June 30, 1995: $282 million
  • Increase in SEC PV10 value: $100 million

Sources:

  • "Nuevo Energy Co. Reports Record Net Income for Q2 1995" - PRNewswire
  • "Nuevo Energy Co. Announces Second Quarter 1995 Earnings" - Nuevo Energy Co. (form 10-Q)