<PAGE>
Washington, D. C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter ended March 31, 1995 Commission file number 0-5426
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The Wiser Oil Company
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(Exact name of Registrant as Specified in its Charter)
Delaware 55-0522128
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(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
8115 Preston Road, Suite 400, Dallas, Texas 75225
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(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code 214/265-0080
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NONE
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Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.
x
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Yes No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.
Class Outstanding at March 31, 1995
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$3 par value 8,939,368
<PAGE>
THE WISER OIL COMPANY
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PART I
FINANCIAL INFORMATION
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Item 1. Financial Statements
The consolidated condensed financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. The financial statements reflect all
adjustments which are, in the opinion of management, necessary to fairly present
such information. Although the Company believes that the disclosures are
adequate to make the information presented not misleading, certain information
and footnote disclosures, including significant accounting policies, normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations. It is suggested that these condensed financial statements be read
in conjunction with the financial statements and the notes thereto included in
the Company's latest annual report on Form 10-K.
2
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THE WISER OIL COMPANY
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CONSOLIDATED BALANCE SHEET
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(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
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Thousands of Dollars
<S> <C> <C>
ASSETS
- - - - ------
Current Assets:
Cash and cash equivalents $ 2,152 $ 2,714
Accounts receivable 9,200 10,900
Inventories 1,293 1,144
Prepaid expenses 1,410 852
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Total current assets 14,055 15,610
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Marketable Securities,
at market value 26,819 27,337
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Property, Plant and
Equipment, at cost:
Oil and gas properties
(successful efforts method) 251,627 250,156
Other properties 5,261 5,443
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256,888 255,559
Accumulated depreciation,
depletion, and amortization (89,302) (88,228)
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Net property, plant
and equipment 167,586 167,371
-------- --------
Other Assets 468 473
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$208,928 $210,791
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
THE WISER OIL COMPANY
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CONSOLIDATED BALANCE SHEET
--------------------------
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
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Thousands of Dollars
<S> <C> <C>
LIABILITIES AND
STOCKHOLDERS' EQUITY
- - - - --------------------
Current Liabilities:
Accounts payable $ 8,394 $ 9,562
Accrued income taxes 756 1,518
Accrued liabilities 2,440 2,139
Current portion of debt 78 78
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Total current liabilities 11,668 13,297
Long Term Debt 76,996 78,013
Deferred Benefit Cost 1,148 1,052
Deferred Income Taxes 13,316 13,002
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Total liabilities 103,128 105,364
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Stockholders' Equity:
Common Stock - $3 par value;
20,000,000 shares authorized;
9,115,572 shares issued 27,347 27,347
Paid-in capital 3,078 3,078
Retained earnings 62,758 62,414
Marketable securities
valuation adjustment 15,889 16,013
Foreign currency translation (543) (696)
Treasury stock of
176,204 shares, at cost (2,729) (2,729)
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Total Stockholders' Equity 105,800 105,427
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$208,928 $210,791
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</TABLE>
The accompanying notes are an integral part of these financial statements.
4
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THE WISER OIL COMPANY
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CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
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(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
--------------------------
March 31, March 31,
1995 1994
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Thousands of Dollars
(except per share amounts)
<S> <C> <C>
REVENUES:
Oil and condensate $ 9,305 $ 6,412
Natural gas 4,190 5,391
Dividend and interest 334 389
Security sale gains 2,443 -
Other (25) 391
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16,247 12,583
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COSTS AND EXPENSES:
Production and operating 4,809 5,394
Purchased natural gas 149 205
Depreciation, depletion and
amortization 4,998 4,274
Abandonments - 89
Exploration 1,134 361
General and administrative 1,966 1,659
Interest expense 1,340 517
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14,396 12,499
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INCOME BEFORE INCOME TAXES 1,851 84
PROVISION FOR INCOME TAXES 613 18
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NET INCOME 1,238 66
Retained earnings -
beginning of period 62,414 57,002
Dividends paid (894) (894)
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RETAINED EARNINGS, END OF PERIOD $ 62,758 $ 56,174
======== ========
AVERAGE OUTSTANDING SHARES 8,939 8,939
======== ========
EARNINGS PER SHARE $ .14 $ .01
======== ========
CASH DIVIDENDS PER SHARE $ .10 $ .10
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
THE WISER OIL COMPANY
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CONSOLIDATED STATEMENT OF CASH FLOW
-----------------------------------
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
--------------------------
March 31, March 31,
1995 1994
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Thousands of Dollars
<S> <C> <C>
Cash Flow From Operating Activities:
Net Income $ 1,238 $ 66
Adjustments to reconcile net income
to operating cash flow -
Depreciation and depletion 4,998 4,274
Deferred income taxes 375 (260)
Security & property sale gains
(before current income tax
expense effect of $238) (2,280) -
Foreign currency translation (9) -
Dry hole cost, abandonments and
lease impairments 749 289
Other Changes:
Accounts receivable 1,700 2,019
Inventories (149) (35)
Prepaid expenses (558) (129)
Other assets 5 3
Accounts payable (1,168) (2,008)
Income taxes, net (762) 263
Accrued liabilities 301 242
Deferred benefit cost 96 103
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Operating Cash Flow 4,536 4,827
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Cash Flow From Investing Activities:
Additions to property, plant
and equipment (6,746) (4,464)
Proceeds from sales of property,
plant and equipment 1,183 -
Proceeds from security sales 2,796 -
Dry hole cost (420) 9
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Investing Cash Flow (3,187) (4,455)
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Cash Flow From Financing Activities:
Long term debt issued 1,000 -
Payment on long term debt (2,017) (515)
Dividends paid (894) (894)
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Financing Cash Flow (1,911) (1,409)
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Net Decrease in Cash (562) (1,037)
Cash and cash equivalents at the
beginning of the period 2,714 3,499
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Cash and cash equivalents at the
end of the period $ 2,152 $ 2,462
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
THE WISER OIL COMPANY
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Notes to Financial Statements
1) On June 24, 1994, the Company acquired certain oil and gas properties
from Eagle Resources Ltd. for approximately $53 million (U.S.). The
purchase was funded with proceeds from the Company's revolving credit
agreement, and with existing cash and cash equivalents. The purchase method
of accounting has been followed with respect to the acquisition. Results of
the Eagle properties' operations have been included in the Company's
results of operations as of March 31, 1994. For additional information see
the Form 8-K issued on July 11, 1994.
Unaudited pro forma results of operations, as if the acquisition took
place at the beginning of 1994 are as follows (000's):
<TABLE>
<CAPTION>
Three Months Ended
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March 31, 1994
------------------
<S> <C>
Revenues $19,219
Expenses 17,554
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Net Income $ 1,052
=======
Earnings per share $ .12
=======
</TABLE>
2) On January 1, 1995 The Wiser Oil Company adopted Statement of
Financial Accounting (SFAS) No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of". Management
anticipates that the adoption of SFAS No. 121 will not have a material
effect on the results of operations.
7
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THE WISER OIL COMPANY
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Item 2. Management's Discussion and Analysis of Financial Conditions and Results
of Operations
CURRENT QUARTER COMPARED WITH THE SAME QUARTER OF THE PREVIOUS YEAR
First quarter revenues for 1995 were $16.2 million as compared to $12.6
million for 1994. Oil and condensate sales of $9.3 million were up $2.9 million,
as U.S. operations recorded an increase of $131 thousand over the prior period
and Canadian operations added $2.7 million as a new subsidiary. Oil and
condensate prices improved substantially this quarter increasing from $12.79 in
1994 to $16.10 in 1995, or 25%. Canadian operations added volumes of 181,000
BBLS; however, those additional volumes were offset by lower U.S. volumes of
119,000 BBLS. The disposition of marginal domestic properties during 1994 was
the major factor contributing to the volume decline in U.S. operations. Natural
gas sales declined $1.2 million, as prices continued downward from $1.94 per MCF
in the first quarter of 1994 to $1.41 per MCF in the first quarter of 1995.
Total volumes rose 192,000 MCF with U.S. operations declining 558,000 MCF, while
Canadian operations added volumes of 751,000 MCF. The lower volumes for U.S.
operations reflected the Company's decision to divest itself of marginal
properties in non-strategic locations during 1994. Dividend and interest income
decreased $55 thousand as dividends from the stock portfolio decreased due to
the sale of securities. The Company currently plans to liquidate the portfolio
over 3 to 5 years using its Section 29 Tax Credits to substantially reduce the
taxes payable on the gains. Security sale gains were $2.4 million in the first
quarter of 1995. The Company did not elect to sell any securities during the
first quarter of 1994.
Production and operating expenses for the first quarter of 1994 declined
$600 thousand. U.S. operations reported a decline of production and operating
expenses of $1.4 million while Canadian operations added $800 thousand. The
disposition of marginal properties was a significant contributing factor to the
lower U.S. production and operating expenses in the first quarter of 1995. U.S.
operations lease operating expense (LOE) declined from $4.91 per BBL in 1994 to
$4.27 per BBL for the first quarter of 1995. Purchased gas of 149,000 MCF in
1995 decreased from 205,000 MCF in 1994 as pricing influenced market conditions.
Depletion, depreciation and amortization (D D & A) increased $700,000 with the
domestic operations showing a $1.4 million decline and Canadian operations
adding $2.1 million. Consistent with production and operating expenses, the sale
of marginal properties led to the decline in D D & A for the U.S as the rate
went from $4.35 per BBL in the first quarter of 1994 to $3.71 for the first
quarter of 1995. For the first quarter of 1995 exploration expenses increased
$700 thousand to $1.1 million from $400 thousand in 1994 as U.S.
8
<PAGE>
operations increased $300 thousand and Canadian operations added $400 thousand.
General and Administrative expense was $2.0 million in 1995 as compared to $1.7
million in 1994. U.S. operations reported general and administrative expense
which was relatively flat at $1.6 million for both years with Canada adding $300
thousand of the increase. Interest expense of $1.3 million has risen $800
thousand due to the increase in long term debt resulting from the Canadian
acquisition.
The Company realized net income of $1.8 million and earnings per share of
$.14 for the first quarter of 1995 as compared to $84 thousand and earnings per
share of $.01 in 1994. U.S. operations recorded $2.5 million in net income
versus $66 thousand in 1994, while Canadian operations accounted for a net loss
of $700 thousand in the first quarter of 1995.
9
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THE WISER OIL COMPANY
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PART II - OTHER INFORMATION
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Items 1 through 6 under Part II are not applicable to the quarter ended March
31, 1995.
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE WISER OIL COMPANY
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(Registrant)
Date May 12, 1995 ANDREW J. SHOUP, JR. (SIGNED)
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Andrew J. Shoup, Jr.
President and
Chief Executive Officer
Date May 12, 1995 LAWRENCE J. FINN (SIGNED)
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Lawrence J. Finn
Vice President Finance and
Chief Financial Officer
10
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 2,152
<SECURITIES> 26,819
<RECEIVABLES> 9,200
<ALLOWANCES> 0
<INVENTORY> 1,293
<CURRENT-ASSETS> 14,055
<PP&E> 256,888
<DEPRECIATION> 89,302
<TOTAL-ASSETS> 208,928
<CURRENT-LIABILITIES> 11,668
<BONDS> 76,996
<COMMON> 27,347
0
0
<OTHER-SE> 3,078
<TOTAL-LIABILITY-AND-EQUITY> 208,928
<SALES> 8,537
<TOTAL-REVENUES> 16,247
<CGS> 8,999
<TOTAL-COSTS> 11,090
<OTHER-EXPENSES> 3,306
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,851
<INCOME-TAX> 613
<INCOME-CONTINUING> 1,238
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,238
<EPS-PRIMARY> .14
<EPS-DILUTED> .14
</TABLE>
