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Gas industry

Questa Oil & Gas Co. Reports Second Quarter Earnings

Strategic Insights

— 2 min read

Questa Oil & Gas Co. reported earnings of $77,000, or 8 cents per share, on revenues of $662,000, for the second quarter ended June 30, 1995. This marked a decline from the same quarter in 1994, where the company reported a profit of $159,000, or 15 cents per share, on revenues of $718,000. President Warren Meeks attributed the decrease in earnings to lower oil and gas revenues caused by a decline in the price of natural gas. Despite a 10 percent increase in overall sales, the average price decreased from $2.15 per MCF of gas in 1994 to $1.71 this year, a 20 percent drop.

Key Takeaways:

  • Questa Oil & Gas Co. reported a decline in earnings for the second quarter of 1995, attributing the decrease to lower oil and gas revenues caused by a decline in the price of natural gas.
  • The company's average price per MCF of gas decreased by 20 percent from $2.15 in 1994 to $1.71 in 1995.
  • Despite a 10 percent increase in overall sales, Questa's revenue decreased from $718,000 in 1994 to $662,000 in 1995.
  • The company's earnings per share decreased from 15 cents in 1994 to 8 cents in 1995.
  • Questa participated in the drilling of five wells in the first half of 1995, with four completed as gas wells and one abandoned as a dry hole.
  • The company has acquired producing properties, including a 100 percent working interest in three producing properties and varying interests in three other properties.

Statistics:

  • Revenue for the second quarter of 1995: $662,000
  • Compare to revenue for the second quarter of 1994: $718,000
  • Average price per MCF of gas in 1994: $2.15
  • Average price per MCF of gas in 1995: $1.71
  • Percentage decrease in average price: 20%
  • Revenue for the first six months of 1995: $1.3 million
  • Compare to revenue for the first six months of 1994: $1.4 million
  • Earnings per share for the second quarter of 1995: 8 cents
  • Earnings per share for the second quarter of 1994: 15 cents
  • Percentage decrease in earnings per share: 46.7%
  • Number of wells drilled in the first half of 1995: 5
  • Number of completed gas wells: 4
  • Number of abandoned dry holes: 1

Sources:

  • "Questa Oil & Gas Co. Reports Second Quarter Earnings," Business Wire, August 15, 1995.
  • "Questa Oil & Gas Co.," NASDAQ, [no date].
  • "Small Cap Market issues," Wall Street Journal, [no date].

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