<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, 1996 Commission file number 0-5426
-------------- ------
The Wiser Oil Company
---------------------
(Exact name of Registrant as Specified in its Charter)
Delaware 55-0522128
-------- ----------
(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
8115 Preston Road, Suite 400, Dallas, Texas 75225
-------------------------------------------------
(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code 214/265-0080
------------
NONE
----
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
----- -----
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, 1996
------------- -----------------------------
$3 par value 8,939,368
<PAGE>
THE WISER OIL COMPANY
---------------------
PART I
FINANCIAL INFORMATION
---------------------
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
<PAGE>
THE WISER OIL COMPANY
---------------------
CONSOLIDATED BALANCE SHEET
--------------------------
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
---------- -------------
Thousands of Dollars
<S> <C> <C>
ASSETS:
- -------
Current Assets:
Cash and cash equivalents $ 2,760 $ 1,397
Accounts receivable 11,168 10,426
Inventories 1,418 1,517
Prepaid expenses 936 833
--------- ---------
Total current assets 16,282 14,173
--------- ---------
Marketable Securities, at market value 17,671 19,592
--------- ---------
Property, Plant and Equipment, at cost:
Oil and gas properties
(successful efforts method) 273,736 265,692
Other properties 4,522 4,422
--------- ---------
278,258 270,114
--------- ---------
Accumulated depreciation, depletion,
and amortization
(105,941) (101,025)
--------- ---------
Net property, plant and equipment 172,317 169,089
--------- ---------
Other Assets 519 553
--------- ---------
$ 206,789 $ 203,407
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
THE WISER OIL COMPANY
---------------------
CONSOLIDATED BALANCE SHEET
--------------------------
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
---------- -------------
Thousands of Dollars
LIABILITIES AND
STOCKHOLDERS' EQUITY
- --------------------
<S> <C> <C>
Current Liabilities:
Accounts payable $ 10,545 $ 10,143
Accrued income taxes 1,248 1,527
Accrued liabilities 1,625 1,449
Current portion of debt 1 20
-------- --------
Total current liabilities 13,419 13,139
-------- --------
Long Term Debt 78,294 74,171
-------- --------
Deferred Benefit Cost 1,244 1,120
-------- --------
Deferred Income taxes 12,412 12,699
-------- --------
Other Long Term liabilities - 1,146
-------- --------
Total liabilities 105,369 102,275
-------- --------
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 62,273 61,030
Marketable securities valuation adjustment 10,676 11,684
Foreign currency translation 775 722
Treasury stock of 176,204 shares, at cost (2,729) (2,729)
-------- --------
Total Stockholders' Equity 101,420 101,132
-------- --------
$206,789 $203,407
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
THE WISER OIL COMPANY
---------------------
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
------------------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
----------------------------
March 31, March 31,
1996 1995
----------- -----------
Thousands of Dollars
(except per share amounts)
<S> <C> <C>
REVENUES:
Oil and gas sales $16,233 $13,495
Dividends and interest 212 334
Security sale gains 2,005 2,443
Other 117 (25)
------- -------
18,567 16,247
------- -------
COSTS AND EXPENSES:
Production and operating 5,623 4,809
Purchased natural gas 353 149
Depreciation, depletion and amortization 4,954 4,998
Exploration 1,266 1,134
General and administrative 2,795 1,966
Interest expense 1,360 1,340
------- -------
16,351 14,396
------- -------
INCOME BEFORE INCOME TAXES 2,216 1,851
PROVISION FOR INCOME TAXES 705 613
------- -------
NET INCOME 1,511 1,238
Retained earnings-beginning of period 61,030 62,414
Dividends paid (268) (894)
------- -------
RETAINED EARNINGS, END OF PERIOD $62,273 $62,758
======= =======
AVERAGE OUTSTANDING SHARES 8,939 8,939
======= =======
EARNINGS PER SHARE $.17 $.14
======= =======
CASH DIVIDENDS PER SHARE $.03 $.10
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
THE WISER OIL COMPANY
---------------------
CONSOLIDATED STATEMENT OF CASH FLOW
-----------------------------------
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
---------------------------
March 31, March 31,
1996 1995
---------- ----------
Thousands of Dollars
<S> <C> <C>
Cash Flow From Operating Activities:
Net Income $ 1,511 $ 1,238
Adjustments to reconcile net income
to operating cash flow-
Depreciation and depletion 4,954 4,998
Deferred income taxes 231 375
Security & property sale gains
(before current income tax expense effect
of $474 for 1996 and $238 for 1995) (2,044) (2,280)
Foreign currency translation (13) (9)
Dry hole cost, abandonments and lease
impairments 1,022 749
Other Changes:
Accounts receivable (742) 1,700
Inventories 100 (149)
Prepaid expenses (104) (558)
Other assets 34 5
Accounts payable 401 (1,168)
Income taxes, net (279) (762)
Accrued liabilities 176 301
Deferred benefits cost 124 96
------- -------
Operating Cash Flow 5,371 4,536
------- -------
Cash Flow From Investing Activities:
Additions to property, plant and equipment (8,443) (6,746)
Proceeds from sales of property,
plant and equipment 51 1,183
Proceeds from security sales 2,178 2,796
Dry hole cost (482) (420)
------- -------
Investing Cash Flow (6,697) (3,187)
------- -------
Cash Flow From Financing Activities:
Long term debt issued 10,123 1,000
Payment on long term debt (7,165) (2,017)
Dividends paid (268) (894)
------- -------
Financing Cash Flow 2,690 (1,911)
------- -------
Net Increase (Decrease) in Cash 1,364 (562)
Cash and cash equivalents at
beginning of period 1,397 2,714
------- -------
Cash and cash equivalents at end of
period $ 2,760 $ 2,152
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
THE WISER OIL COMPANY
---------------------
Notes to Financial Statements
1) See notes to financial statements included in the Company's 1995 Annual
Report on Form 10-k.
7
<PAGE>
THE WISER OIL COMPANY
---------------------
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 1996 were $18.6 million as compared to $16.2
million for 1995. Oil and condensate sales of $9.6 million were up $.8 million,
as U.S. operations recorded an increase of $.8 million over the prior period.
Oil and condensate prices improved this quarter increasing from $16.67 in 1995
to $17.63 in 1996, or 6%. Consolidated oil volumes rose 3% to 545,000 BBL.
Natural gas sales increased 33% in the first quarter of 1996 to $5.6 million, as
prices rose from $1.41 per MCF in the first quarter of 1995 to $1.67 per MCF in
the first quarter of 1996. Total volumes rose 359,000 MCF with U.S. operations
increasing 362,000 MCF. Natural gas liquids sales increased $598,000 in the
first quarter of 1996 from $462,000 in the first quarter of 1995. The increase
was primarily due to the Wellman Plant coming on stream during the third quarter
of 1995. Commodity hedging, which was done in order to mitigate some of the
rapid downward price swings, during the first quarter of 1996 reduced oil and
gas sales by $1.0 million. This compares to a $0.2 million increase in oil and
gas sales due to commodity hedging for the same period in 1995. Dividend and
interest income decreased $122 thousand as dividends from the stock portfolio
decreased due to the continued sale of securities. The Company currently plans
to liquidate the portfolio over 2 to 3 years using its Section 29 Tax Credits to
substantially reduce the taxes payable on the gains. Security sale gains were
$2.0 million in the first quarter of 1996 as compared to $2.4 in the first
quarter of 1995.
Production and operating expenses increased 17% for the first quarter of
1996 to $5.6 million. The increase was the result of the Wellman Plant coming on
stream and the acquisition of the Skelly Field during the third quarter of 1995.
Depletion, depreciation and amortization (DD & A) for the first quarter of 1996
decreased $54,000 or 1% from the first quarter of 1995. The DD & A rate went
from $4.65 per EOB in the first quarter of 1995 to $4.18 for the first quarter
of 1996 due to upward revisions in several major producing locations. For the
first quarter of 1996, exploration expenses increased to $1.3 million from $1.1
million in 1995. First quarter General and Administrative expense was $2.8
million in 1996 as compared to $2.0 million in 1995. The G&A expense increase is
mainly due to legal fees for defense of a law suit won by the Company in the
first quarter of 1996. Interest expense of $1.4 million has risen $20 thousand
due to the increase in long term debt resulting from the increased spending on
the Maljamar development project.
The Company realized net income of $1.5 million and earnings per share of
$.17 for the first quarter of 1996 as compared to $1.2 million and earnings per
share of $.14 in 1995. U.S. operations recorded $2.5 million in net income
versus $66 thousand in 1995,
8
<PAGE>
while Canadian operations accounted for a net loss of $700 thousand in the first
quarter of 1995.
During the first quarter of 1996 the Company incurred $9.1 million in
capital expenditures, which was a 22% increase from the $7.4 million incurred
for the same period in 1995. The increase in capital expenditures is due to the
Maljamar Area development project which began during the fourth quarter of 1995.
These expenditures accounted for 60% or $5.5 million of the $9.1 million
incurred. The total Maljamar Area development project is expected to cost $55.0
million of which $37.0 million is projected to be spent during 1996.
THE WISER OIL COMPANY
9
<PAGE>
PART II - OTHER INFORMATION
Items 1 through 6 under Part II are not applicable to the quarter ended
March 31, 1996.
SIGNATURES
----------
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
-------------------------------
(Registrant)
Date May 12, 1996 /s/ ANDREW J. SHOUP, JR. (SIGNED)
- ------------------ --------------------------------------
Andrew J. SHOUP, Jr.
President and
Chief Executive Officer
Date May 12, 1996 /s/ LAWRENCE J. FINN (SIGNED)
- ------------------ --------------------------------------
Lawrence J. Finn
Vice President, Finance and
Chief Financial Officer
THE WISER OIL COMPANY
---------------------
Part II - OTHER INFORMATION
---------------------------
10
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 2,760
<SECURITIES> 17,671
<RECEIVABLES> 11,168
<ALLOWANCES> 0
<INVENTORY> 1,418
<CURRENT-ASSETS> 16,282
<PP&E> 278,258
<DEPRECIATION> 105,941
<TOTAL-ASSETS> 206,789
<CURRENT-LIABILITIES> 13,419
<BONDS> 78,294
0
0
<COMMON> 27,347
<OTHER-SE> 74,073
<TOTAL-LIABILITY-AND-EQUITY> 206,789
<SALES> 18,355
<TOTAL-REVENUES> 18,567
<CGS> 5,976
<TOTAL-COSTS> 9,015
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,360
<INCOME-PRETAX> 2,216
<INCOME-TAX> 705
<INCOME-CONTINUING> 1,511
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,511
<EPS-PRIMARY> .17
<EPS-DILUTED> .17
</TABLE>
